Al-Qasabi calls for Saudi-UK partnership to future-proof skills, jobs

RIYADH: Investor confidence in Saudi Arabia’s hospitality sector is being reinforced by tangible progress on Vision 2030 goals, including accelerating international interest and a surge in hotel signings, a major gathering has heard. 

On the second day of the Future Hospitality Summit in Riyadh, global and local executives cited a powerful combination of leadership, domestic demand, and delivery momentum as key factors driving investment decisions.  

Vision 2030 is an initiative designed to diversify the Saudi economy away from oil, with ambitious reforms aimed at boosting tourism, entertainment, and non-oil industries. 

In a panel discussion, Christophe Beauvilain, managing partner at Pygmalion Capital, said Saudi Arabia presents a compelling opportunity for investors, describing Vision 2030 as “extremely ambitious and exciting.”  

He highlighted the rapid achievement of tourism milestones as a key performance signal, saying: “When the Vision was first launched, the goal was to attract 100 million tourists by 2030. That target was reached by 2023, so it was revised upward to 150 million by 2030 — and I wouldn’t be surprised if that figure is raised again.”  

Hotel signings, Beauvilain added, are a critical metric for institutional investors.  

“There has certainly been a flurry of activity, particularly among international brands signing new projects,” he said.  

While macroeconomic and geopolitical risks remain a consideration, Beauvilain noted the decreasing reliance on oil revenues as a positive structural shift.  

“The oil sector’s contribution to gross domestic product is declining rapidly, which is a very positive and encouraging sign,” he said.  

Amin Ismail, managing director of travel and tourism-focused private equity firm Certares, emphasized the changing global perception of Saudi Arabia. 

“The leadership has done a pretty good job marketing the destination and raising global awareness,” he said.  

“On a personal note, I was in Miami a couple of months ago, and someone I never expected mentioned they were interested in visiting Riyadh. They even referenced Diriyah by name,” Ismail said.  

The managing director believes the country’s cultural depth is emerging as a differentiating factor.  

“Saudi Arabia’s strength lies in its culture and heritage. The hospitality, the people, and the unique cultural experience are what really draw visitors,” he said.  

Noting the rising interest among global travelers — including his own family — he added, “Today, it’s at the top of their (his family’s) travel bucket list — with Japan coming second.”  

On the domestic front, Saudi Arabia’s hospitality development is being backed by robust local demand and substantial government support.  

In a separate panel, Naif Al-Madi, chief business officer of the Tourism Development Fund, said: “Saudi Arabia has a unique advantage in that we have a large domestic market,” adding that it accounts for approximately 70 percent of the tourism sector, compared to 30 percent from international tourism. 

He added that while global economic fluctuations may affect other markets, “we believe Saudi Arabia will feel only minimal shock.”  

The fund has already supported over 2,400 tourism-related projects, and is expected to deliver more than 9,000 rooms. 

Luc Delafosse, vice president of Hospitality Management at Al Khozama Investment Co., said the pace and consistency of project execution are setting Saudi Arabia apart.  

“What I was very pleased to hear this morning is that 90 percent of the projects within the Kingdom are actually being delivered,” he said.  

“Another key figure that stood out was that 50 percent of the development currently underway in Saudi Arabia is being produced and delivered by non-oil sectors.”  

Delafosse, who has been in the Kingdom since 2019, noted the transformation firsthand.  

“It’s not just about the number of projects, but also the overall evolution of the sector,” he said.  

“The Kingdom has truly led the way in hospitality — not just in the region, but globally,” he added. 

LONDON/SHANGHAI: Stocks and the dollar rallied on Monday after the US and China said they had agreed on a 90-day pause on tariffs and reciprocal duties would drop sharply, giving investors some confidence that a full-scale trade war may have been averted.

US Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, told reporters the two sides had reached the deal that was outlined in a joint statement and that reciprocal rates would drop by 115 percentage points.

This weekend’s Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since US President Donald Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.

Market reaction

• Futures on the S&P 500 ESc1 and Nasdaq NQc1 jumped to trade up 2.8 percent and 3.6 percent, respectively, from gains of 1.5 percent to 2 percent previously, while in Europe, the STOXX 600 .STOXX rose 1 percent in early trading.
• The dollar extended gains, with the euro down 0.8 percent at $1.1164, having traded down 0.2 percent on the day earlier, while the yen  weakened, leaving the US currency up 1.1 percent at 146.945, from a 0.5 percent gain earlier.
•  Benchmark 10-year US Treasury yields edged up 6 basis points on the day to 4.435 percent, having traded up 5 bps before the joint statement.

Analyst comments

Kenneth Broux, senior strategist FX and rates, at Societe Generale in London, said: “There is a de-escalation between China and US resulting in a reduction of tariff on Chinese goods to 30 percent and Chinese tariffs on US goods to 10 percent. It’s a clear vote by the market in favor of riskier assets. It’s a step in the right direction and a positive of US assets and US economy.”

He added: “The dollar was lagging other markets in the recovery from the April lows. We had equities up back to April 2nd levels, we had bond yields up to those levels and the dollar was actually lagging that move. Now the conditions are falling into place for a deeper adjustment and a bigger recovery of the dollar to catch up with equities and bond yields.”

Zhiwei Zhang, chief economist at Pinpoint Assets Management in Hong Kong said: “This is better than I expected. I thought tariffs would be cut to somewhere around 50 percent and this is much lower.

“Obviously, this is very positive news for economies in both countries and for the global economy, and makes investors much less concerned about the damage to global supply chains in the short term.

“But we also need to keep in mind this is only a three-month temporary reduction of tariffs. So this is the beginning of a long process. The two sides will spend months probably, to come up with a resolution, or reach a final trade deal, but this is a very good starting point.”

Arne Petimezas, director research at AFS Group, in Amsterdam said: “Such a sharp U-turn by the US on tariffs on a Monday morning is quite the surprise. It seems that tariffs on China will fall to manageable levels, albeit temporary. Markets should rally on this. How can Trump credibly raise tariffs when the 90-day pause ends? He has toned down his tariffs faster than anyone thought he could, and April 2 will soon be forgotten. Granted, he told you to buy the dip.”

William Xin, chairman of hedge fund Spring Mountain Pu Jiang Investment Management, in Shanghai, said: “The result far exceeds market expectations. Previously, the hope was just that the two sides can sit down to talk, and the market had been very fragile. Now, there’s more certainty. Both China stocks and the yuan will be in an upswing for a while.”