Diriyah Company, the developer turning the historic Saudi city into a tourism giga-project, is considering an initial public offering on the Tadawul stock exchange by early 2027, as the kingdom seeks to develop non-oil sectors and attract international tourists.
The company is already generating revenue of 50 million Saudi riyals ($13.3 million), which it expects to "at least double" in 2024, after it opened substantial assets in 2022 and attracted more than one million visitors to the historic site of Al Turaif District, said Jerry Inzerillo, group chief executive of Diriyah Company.
Diriyah Company, which is a subsidiary of the Public Investment Fund, would list 100 per cent of its shares if it proceeds with the offering.
"We've hired lawyers and bankers ... we're putting the preliminary structure in place to evaluate what we have to do over the next short period of time to build up to an IPO that could be listed on the Saudi stock exchange," he said on the sidelines of the World Travel and Tourism Council's global summit, in Rwanda.
“We hope that within 36 months we’ll have a realistic window.”
In January, Saudi Arabia’s sovereign wealth fund designated Diriyah as its fifth giga-project after the Neom, Red Sea, Qiddiya and Roshn developments.
The $63.2 billion project at Diriyah is set to transform the site into a major tourism destination.
Diriyah, the kingdom’s first seat of power, was built from mud bricks along the banks of Wadi Hanifa, north-west of Riyadh.
Diriyah, home to the Unesco World Heritage Site of At-Turaif, is the birthplace of the kingdom and the ancestral home of Al Saud royal family. On this site, the First Saudi State was established in 1727. The settlement of Diriyah, which dates back to 1446, was home to generations of leaders.
By 2030, the mixed-use destination will span 14 square kilometres and is set to house 42 hotels, more than 100 restaurants, nine museums and about 30,000 homes.
It is also expected to create 178,000 direct jobs and contribute 70 billion riyals directly to the national gross domestic product by the end of the decade, according to the PIF.
As part of its Vision 2030 strategy to diversify its economy away from oil, Saudi Arabia is seeking to attract more international tourists and become a global travel destination.
It aims to increase the contribution of the tourism sector to the kingdom's economy to 10 per cent by 2030, up from 3 per cent in 2019.
The kingdom expects to attract about 100 million domestic and international visitors this year, with the tourism sector contributing almost 6 per cent to its GDP in 2023, Tourism Minister Ahmed Al Khateeb said in October.
The country is also aims to attract 70 million overseas visitors a year by 2030, with the government investing billions of dollars in new tourist attractions, resorts, entertainment, new carrier Riyadh Air and the new King Salman International Airport in Riyadh.
“We have several projects now that are not only on time and on budget, but are showing great promise," Mr Inzerillo said.
"At some particular point it’s going to be a big return. The PIF is a fund so we’re fortunate because it’s very rare in the world that natural and cultural heritage projects have good ROI [return on investment] like us."
He said the sales pitch to investors was entry into a G20 market with robust demand, a population of more than 30 million and the introduction at Diriyah of a "desirable commercial product".
Saudi Arabia is the sole bidder to host the 2034 Fifa World Cup and is also bidding to brings the World Expo 2030 to Riyadh.
"You’ve got these gigantic events that will infuse $1 trillion of capital from the public and private sector into Riyadh alone," Mr Inzerillo said.
The hospitality industry veteran dismissed any effect on the Diriyah project's future plans from global supply chain bottlenecks and labour shortages.
"We feel things are going extremely well," he said.
"Right now in November of 2023, remarkably, we're slightly ahead of schedule. If you do a snapshot of what I promised the King and the Crown Prince, we're six months ahead of schedule."
The project hired 27,000 construction workers, which will increase to 31,000 by the end of the year, and 2,000 staff. About 85 per cent of its workforce are Saudi citizens, 38 per cent are Saudi women and 14 per cent are from Diriyah.
Asked about the effect of the Israel-Gaza war on project progress and visitor numbers, Mr Inzerillo said: "We know the Crown Prince [Mohammed bin Salman] is working unbelievably hard on trying to find a peaceful solution to the region ... but our instructions are: 'We'll handle the diplomatic side of what's happening in the region, you focus on the goals of Vision 2030 and take care of what you're mandated to do.' So we have our marching orders."
The Diriyah Company will "open, ground-break and announce projects" In December every year until 2030, he said.
Next month, it will undertake a soft opening of its first hotel of 141 rooms.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Sholto Byrnes on Myanmar politics
COMPANY%20PROFILE
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Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
What is safeguarding?
“Safeguarding, not just in sport, but in all walks of life, is making sure that policies are put in place that make sure your child is safe; when they attend a football club, a tennis club, that there are welfare officers at clubs who are qualified to a standard to make sure your child is safe in that environment,” Derek Bell explains.
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Gully Boy
Director: Zoya Akhtar
Producer: Excel Entertainment & Tiger Baby
Cast: Ranveer Singh, Alia Bhatt, Kalki Koechlin, Siddhant Chaturvedi
Rating: 4/5 stars
Gender equality in the workplace still 200 years away
It will take centuries to achieve gender parity in workplaces around the globe, according to a December report from the World Economic Forum.
The WEF study said there had been some improvements in wage equality in 2018 compared to 2017, when the global gender gap widened for the first time in a decade.
But it warned that these were offset by declining representation of women in politics, coupled with greater inequality in their access to health and education.
At current rates, the global gender gap across a range of areas will not close for another 108 years, while it is expected to take 202 years to close the workplace gap, WEF found.
The Geneva-based organisation's annual report tracked disparities between the sexes in 149 countries across four areas: education, health, economic opportunity and political empowerment.
After years of advances in education, health and political representation, women registered setbacks in all three areas this year, WEF said.
Only in the area of economic opportunity did the gender gap narrow somewhat, although there is not much to celebrate, with the global wage gap narrowing to nearly 51 per cent.
And the number of women in leadership roles has risen to 34 per cent globally, WEF said.
At the same time, the report showed there are now proportionately fewer women than men participating in the workforce, suggesting that automation is having a disproportionate impact on jobs traditionally performed by women.
And women are significantly under-represented in growing areas of employment that require science, technology, engineering and mathematics skills, WEF said.
* Agence France Presse
Du Plessis plans his retirement
South Africa captain Faf du Plessis said on Friday the Twenty20 World Cup in Australia in two years' time will be his last.
Du Plessis, 34, who has led his country in two World T20 campaigns, in 2014 and 2016, is keen to play a third but will then step aside.
"The T20 World Cup in 2020 is something I'm really looking forward to. I think right now that will probably be the last tournament for me," he said in Brisbane ahead of a one-off T20 against Australia on Saturday.
![“[Our] main objective is to study the historical landscape, to better understand the foundation of [the Kingdom of Saudi Arabia’s] social and economic development,” heritage management senior director for DGDA, Paola Pesaresi tells The National](https://www.thenationalnews.com/resizer/v2/WKTDTA3V75GJBPFCXI3CVNBVYE.jpg?smart=true&auth=cac7bc51a9c261099db89f9c424d5b617cd24955183b2d4603a5a86184f191e0&width=400&height=225)
![Natural heritage, cultural heritage and community are the three keys to understanding life in the area. We go through the proper value assessment, with the support of the [local] communities, in order to have them at the centre of any decision making," Pesaresi adds](https://www.thenationalnews.com/resizer/v2/WAE4APNZMBH6TF23RFSIF6YIFU.jpg?smart=true&auth=75c81f994d54920c95201878b63a5f39fe0de45f112d68c67a1ee9756c5b838f&width=400&height=225)
![“[Our] main objective is to study the historical landscape, to better understand the foundation of [the Kingdom of Saudi Arabia’s] social and economic development,” heritage management senior director for DGDA, Paola Pesaresi tells The National](https://www.thenationalnews.com/resizer/v2/WKTDTA3V75GJBPFCXI3CVNBVYE.jpg?smart=true&auth=cac7bc51a9c261099db89f9c424d5b617cd24955183b2d4603a5a86184f191e0&width=800&height=450)
![Natural heritage, cultural heritage and community are the three keys to understanding life in the area. We go through the proper value assessment, with the support of the [local] communities, in order to have them at the centre of any decision making," Pesaresi adds](https://www.thenationalnews.com/resizer/v2/WAE4APNZMBH6TF23RFSIF6YIFU.jpg?smart=true&auth=75c81f994d54920c95201878b63a5f39fe0de45f112d68c67a1ee9756c5b838f&width=800&height=450)
