With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

The developments of the Red Sea Project will be powered by renewable energy. The company seeks to provide ultra-luxury facilities without disturbing the surrounding nature or the ecosystem of the area. (Photo/Supplied)
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Updated 07 June 2022
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With 12 luxury brands, The Red Sea leads the way in promoting sustainable tourism

  • The company believes in safeguarding, developing landscape and shores of the Red Sea

RIYADH: The traditional concept of tourism is now radically changing as many countries are gradually and earnestly promoting and investing in sustainable travel.

But what is sustainable tourism, and why is there such a big hype among countries eager to attract tourists to their natural and untouched habitats?

According to the UN Environment Program and UN World Tourism Organization, sustainable tourism is defined as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.”

To underline the importance of sustainable tourism, the UNWTO is holding its 116th session in Jeddah from June 7-8. The main theme naturally is sustainable tourism. 

Proudly sharing TRSDC experience 

The host country Saudi Arabia will surely highlight its achievement in enhancing and promoting sustainable tourism with special emphasis on the Kingdom’s pride — The Red Sea Development Co.

TRSDC plans to open three hotels this year and add 13 more by the end of 2023. The ambitious projects aim to create 120,000 jobs and add SR30 billion to the Kingdom’s gross domestic product, according to the company. Brands already on board include St Regis, Six Senses and more ultra-luxury hotel concepts focusing on sustainability.

The company has achieved an overall score of 91 out of 100 in last year’s environmental, social, and governance assessment by the Global Real Estate Sustainability Benchmark, beating the score of 84 it accomplished in its first-ever assessment in 2020.

In November 2021, the company was given the ESG Initiative of the Year award at The Chartered Governance Institute UK & Ireland’s 2021 Awards.

This followed TRSDC’s launch of its Good Governance Toolkit to guide other organizations in Saudi Arabia on best governance practices.

The company’s top executives realize that safeguarding and developing the landscape and shores of Saudi Arabia’s Red Sea is essential to attract tourists who appreciate the earth’s hidden natural treasure.

Not surprisingly, all hotels and sea resorts, both inland and on the islands, must comply with the strict environmental rules and conditions set by TRSDC. 




John Pagano, CEO of TRSDC

“Sustainability will set us apart… The Red Sea concept is all about building and working with nature,” said John Pagano, CEO of TRSDC, in an interview with Arab News. “Coral reef systems are there. For us, the goal is how to deliver what we need without impacting the environment. My visitors will get to truly immerse themselves in nature.”

AMAALA, under TRSDC’s directive, will also open eco-friendly resorts with an added focus on wellness. The project’s first phase, which includes nine resorts, aims to be complete by the end of 2024. 




Ahmad Ghazi Darwish, chief administrative officer at TRSDC, AMAALA

It is a total focus on protecting the environment, Ahmad Ghazi Darwish, the chief administrative officer at TRSDC and AMAALA, commented.

TRSDC’s drive to meet sustainable tourism criteria  

In its efforts to achieve environmental excellence, TRSDC developed an Environmental Management System, producing an EMS Manual in January 2021. The EMS was rolled out companywide by midyear 2021, supporting the company’s bid for The Red Sea Project to achieve ISO14001:2015 certification.

“TRSDC’s EMS is aimed at guiding and managing TRSDC’s activities with respect to the environment throughout the design, construction, and operational stages. The implementation of the EMS allows TRSDC to identify areas in need of improvement and actively work toward bettering them,” according to the company.

In 2021, the organization became one of the first companies in the Middle East to achieve the ISO 9001:2015 certification for quality management for the design and construction of assets.

TRSDC has also signed a memorandum of understanding with social investment company Ethmar and private foundation Ghoroos that will support TRSP’s social development objectives in numerous ways, including studying and implementing agricultural development opportunities in the project area and helping to strengthen community service and volunteer work initiative.

TRSDC partners with Red Sea Farms 

The company has also partnered with Red Sea Farms, a Saudi Arabian ag-tech business, to develop a sustainable food supply for The Red Sea’s flagship destination using sunlight and saltwater.

Red Sea Farms will build and operate the indoor farm, growing crops to sustainably feed guests and residents at The Red Sea Project. It will become the main supplier to the luxury destination’s resorts and restaurants.

The innovative technology uses sunlight and saltwater to cool greenhouses and grows crops instead of relying on rainfall, fresh groundwater, or desalinated water. This saves up to 300 liters of fresh water per kilogram of produce — a 95 percent saving compared with other ag-tech systems. In addition, the technology has been designed and developed in the Kingdom for use in often challenging environmental conditions.

“This means a reduced impact on the environment and a significant cost saving for growers. It also results in more nutritious crops while also providing a richer taste, flavor and texture,” according to TRSDC.

Partnering with Blue Planet Ecosystem

The company’s endeavor to protect the Kingdom’s ecology was also climaxed by another MoU with Blue Planet Ecosystems in October 2021.

“The Land-based Automated Recirculating Aquaculture system works by replicating natural aquatic ecosystems in a modular and automated system. LARA converts carbon dioxide directly into chemical-free seafood using phyto and zooplankton as transitional stages. It is constructed of a tower of three horizontal units. The top unit uses the sun’s energy to grow microalgae which powers the entire system. The microalgae are then moved to the next unit, where it nourishes zooplankton. The zooplankton is then transported to the bottom unit, where it’s eaten by fish,” TRSDC explained.

It added that the project’s first phase would be implemented as a 3.500m2 pilot to assess whether conditions at TRSP are suitable for the solution to work effectively and efficiently. This will be the first LARA pilot in the Middle East to undergo a commercial trial.

Investing in renewable energy

Last year, TRSDC made great strides in its mission to build the world’s largest tourism spot powered by renewable energy on Saudi Arabia’s west coast.

In December 2021, a Saudi ACWA Power-led consortium secured $1.33 billion of financing to operate the renewable power-based multi-utilities infrastructure that will serve the site.

The multibillion-dollar project, based between Umluj and Al Wajh, covers 28,000 sq. km — an area the size of Belgium — which includes over 90 untouched islands, miles of desert dunes and mountain landscapes.


Saudi energy minister lauds growing economic ties with Uzbekistan

Updated 02 May 2024
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Saudi energy minister lauds growing economic ties with Uzbekistan

RIYADH: Saudi Arabia and Uzbekistan’s economic cooperation models reflect mutual commitment to prosperity through shared goals in the two countries’ 2030 plans, said the Saudi energy minister.

During the main dialogue session of the third Tashkent International Investment Forum, Prince Abdulaziz bin Salman emphasized the distinguished relations between the two nations and the commitment of their leaderships to enhance and develop cooperation in all fields, particularly in the energy sector.

Uzbekistan President Shavkat Mirziyoyev also attended the meeting.

The Saudi minister pointed out that economic cooperation between the two countries serves as a model, especially in light of the “Uzbekistan 2030” strategy and the Kingdom’s Vision 2030, with their similar goals aimed at economic growth, diversification, and sustainable development, reflecting a mutual commitment to building a prosperous future for both nations, according to the Saudi Press Agency.

“The bilateral relations saw a notable advancement subsequent to a meeting between Crown Prince Mohammed bin Salman and President Mirziyoyev in Riyadh in 2022,” he said.

Prince Abdulaziz stressed the significance of the energy sector in the growing relations between the two nations, particularly in renewable energy, highlighting the substantial involvement of Saudi companies in Uzbekistan, exemplified by ACWA Power.

He elaborated on the investment flowing between the two countries in this domain, eclipsing $14 billion, with the aim of producing over 11 gigawatts of renewable energy electricity, affirming that Uzbekistan has demonstrated a serious commitment to achieving a fair and equitable energy transition, aligning with the Kingdom’s aspirations.

The energy minister further underscored the rational stances jointly embraced by both nations, placing significant emphasis on the critical aspects of energy security, development, and conservation.

He also underscored the two countries’ collaborative roles in addressing climate change through collective endeavors.

Recently, ACWA Power signed a power purchase agreement with the National Electric Grid of Uzbekistan for the Aral five-gigawatt wind power project worth SR18.2 billion ($4.85 billion).

Two weeks ago, ACWA Power announced it had secured an $80 million equity bridge loan from the Bank of China for its projects in Uzbekistan.

The Saudi entity said the fund will boost its Tashkent 200 megawatts solar photovoltaic power plant and 500 MW per hour battery energy storage system project in Uzbekistan.

“This transaction culminated the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker,” the company said in a statement.


Alvarez & Marsal opens regional headquarters in Riyadh 

Updated 02 May 2024
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Alvarez & Marsal opens regional headquarters in Riyadh 

RIYADH: Underscoring international confidence in the Saudi economy, global consulting firm Alvarez & Marsal has become yet another company to have opened its regional headquarters in Riyadh.

In a press statement, the US firm stated that the inauguration of the new regional headquarters underscores its commitment to contributing to the country’s transformation agenda. 

“As the company continues to deepen its roots in the country, with expertise across various sectors — from banking and tax to healthcare and disputes and investigations — this strategic move aims to leverage local insights in the Kingdom to drive sustainable growth and innovation.” the company said. 

Additionally, A&M announced that it has included 13 skilled Saudi graduates in the inaugural batch of its Bidayah Graduate Program. 

The company stated that these candidates were selected from a competitive pool of applicants, describing the chosen individuals as representing the bright future of the Kingdom and reflecting the potential that A&M sees in local talent. 

James Dervin, managing director of A&M in the Middle East and co-head in the region, stated that the program is designed to develop the next generation of execution-focused leaders in management consulting. It is guided by the A&M principles of leadership, action, and results. 

“Over the course of 12 months, participants will undergo rigorous training, engage in live project work, and receive mentorship from seasoned industry experts,” he said. 

Dervin added: “Coupled with the incorporation of our regional headquarters in Saudi Arabia, the program underscores A&M’s commitment to investing in the professional development of Saudi nationals and aligning with the Kingdom’s ambitious Vision 2030,” 

He further noted that the new graduates will have a significant, positive impact on his firm and the clients it serves. 

Commenting on the close alignment of A&M’s global brand with the local market dynamic in Saudi Arabia, Bryan Marsal, A&M’s CEO and co-founder, said: “The all-encompassing nature of the Saudi Arabian transformation is driving significant demand for A&M’s distinctive ‘get-stuff-done’ brand of services — for our ability to fix problems, our ‘skin in the game’, and our freedom from audit conflicts.” 

With over 9,000-strong workforce across six continents, A&M generates tangible results for corporations, boards, private equity firms, law firms, and government agencies grappling with intricate challenges, according to its website. 

More than 180 major global companies and organizations have already established regional headquarters in the Saudi capital. These include Apple, Microsoft and Alibaba, as well as the IMF, IBM, and Google.  

Other notable entities on the list include German consultancy firm TUV Rheinland, PwC Middle East, Aramex and Amazon. 


UAE banks’ aggregate capital, reserves exceed $136bn

Updated 02 May 2024
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UAE banks’ aggregate capital, reserves exceed $136bn

RIYADH: UAE-based banks’ aggregate capital and reserves reached 501.5 billion dirhams ($136 billion) at the end of February, up 14.4 percent year-on-year, according to new data. 

The latest statistics from the Central Bank of the UAE showed that on a monthly basis, the total capital and reserves grew 0.95 percent, reflecting an increase of approximately 4.7 billion dirhams, according to the Emirates News Agency, also known as WAM. 

This rise in figures falls in line with the central bank’s goal of enhancing monetary and financial stability in the country. 

Moreover, the data indicated that national banks accounted for around 86.5 percent of the aggregate capital and reserves of banks operating in the UAE. At the end of February, they recorded a total of 433.7 billion dirhams, an annual rise of 14.6 percent.

On the other hand, the share of foreign banks settled at 13.5 percent, hitting 67.8 billion dirhams at the end of the same month, reflecting a 13.2 percent surge compared to the same period a year earlier.  

Furthermore, at the end of February, the total capital and reserves of banks operating in Dubai alone stood at 246.4 billion dirhams, logging a year-on-year growth of 15.1 percent. 

Additionally, banks operating in Abu Dhabi recorded around 217 billion dirhams, up 13 percent from the corresponding period in 2023.  

Meanwhile, the cumulative capital and reserves of banks operating in other emirates combined reached an estimated 38.1 billion, reflecting a 15.5 percent climb in comparison to the same period a year prior. 

In March, a top executive at Roland Berger said that UAE bank branches were witnessing the highest revenues in the region, amounting to $18.6 million per branch.

This was driven by the nation’s digital transformation, which enabled financial institutions in the Gulf Cooperation Council to reduce the number of banking branches by 328 within three years, Saumitra Sehgal, the global consulting firm’s head of financial services in the Middle East, told WAM, at the time.  

Sehgal also pointed out at the time that the number of bank branches across GCC nations decreased from 4,067 at the end of 2019 to 3,739 by December 2022.   

He further noted that banks in the UAE saw the highest number of outlets merge and reduce with the support of digital transformation between 2019 and 2022.


Saudi financial robo-advisory firm Abyan Capital secures $18m in funding  

Updated 02 May 2024
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Saudi financial robo-advisory firm Abyan Capital secures $18m in funding  

RIYADH: Financial robo-advisory firm Abyan Capital has secured $18 million in funding in further evidence of the growing confidence in the Kingdom’s artificial intelligence sector.

Led by STV, the funding round also saw participation from Aramco’s Wa’ed Ventures and RZM Investment. 

Robo-advisors are digital platforms that utilize AI and machine learning algorithms to automate and optimize investment processes.  

Founded in 2022 by Abdullah Al-Jeraiwi, Omar Al-Mania and Saleh Al-Aqeel, Abyan Capital is a financial services company that provides an automated solution and portfolio management for long-term investments.  

“Abyan Capital stands out by unlocking the SR300 billion ($80 billion) investment management and wealth advisory sector for investors from all backgrounds in Saudi Arabia, through its mobile-first, robo-advisory model,” Yazeed Al-Turki, principal at STV, said in a statement.  

In a short period of time, he said Abyan has enabled a large base of first-time investors to access multiple wealth management solutions, underscoring the team’s commitment to innovation and inclusivity.  

“We are delighted to partner with Abdullah, Saleh and the team on their journey to redefine the wealth management ecosystem in the Kingdom,” Al-Turki added.  

The company aims to utilize its newly secured funds to further enhance its platform, expand its suite of financial products, and accelerate its market penetration across the investment solution value chain.

“Today, we are proud that in a very short amount of time, Abyan has exceeded deposits of over SR1.4 billion and more than 100,000 portfolios invested. And we will be launching new diversified products soon with a goal to make Abyan the digital retail investment house,” said Al-Jeraiwi, the CEO. 


Closing Bell: TASI ends the week in green at 12,352

Updated 02 May 2024
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Closing Bell: TASI ends the week in green at 12,352

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week by gaining 6.68 points, or 0.05 percent, to close at 12,352.33 on Thursday.

The total trading turnover of the benchmark index was SR6.55 billion ($1.74 billion) as 120 stocks advanced, while 103 retreated.   

The parallel market, Nomu, also gained 95.60 points, or 0.36 percent, to close the trading session at 26,457.81. This comes as 29 stocks advanced, while as many as 27 retreated.

On the other hand, the MSCI Tadawul Index slipped by 2.37 points, or 0.15 percent, to close at 1,547.20.

The best-performing stock on the benchmark index was Al-Baha Investment and Development Co., as its share price surged by 7.69 percent.

Other top performers included Raydan Food Co. and the Company for Cooperative Insurance, whose share prices soared by 7.29 percent and 6.63 percent, to stand at SR30.90 and SR160.80 respectively.

Electrical Industries Co. and the Mediterranean and Gulf Insurance and Reinsurance Co. also fared well during the last trading session of the week.

The worst performer was Saudi Chemical Co., whose share price dropped by 5.36 percent to SR7.77.

Power and Water Utility Co. for Jubail and Yanbu as well as the National Company for Glass Industries, underperformed as their share prices dropped by 5.22 percent and 4.82 percent to stand at SR63.50 and SR42.45, respectively.

On the announcements, Bank AlJazira announced its interim financial results for the period ending March 31 with net profit amounting to SR300.4 million compared to SR279.3 million in the previous quarter.

In an official statement on Tadawul, the bank attributed the increase in the net income to a decrease in total operating expenses by 6 percent. 

“The decrease in total operating expenses is mainly due a decrease in net impairment charge for financing and other financial assets, other general and administrative expenses, salaries and employee-related expenses and other operating expenses against an increase in depreciation and amortization expenses,” the statement said.

Conversely, there has been a slight decrease of 0.2 percent in total operating income, primarily attributed to a reduction in net financing and investment gains. Additionally, the rise in net income was partially tempered by increased zakat charges over the period.