Saudi Arabia takes over Ras Al Zour power project JEDDAH - The Saudi Arabian government is to take control of the oil fired Ras Al Zour power and desalination plant away from private developers, instead appointing a government entity to implement the project. The proposed Ras Al Zour project has faced problems since Malaysia's Malakoff International pulled out of the preferred bidder consortium led by Sumitomo. No replacement has been found. It is as yet unclear which government entity will take over the project. The plant will have a capacity of 850 to 1100 MW of power and 1m cubic meters of desalinated water per day. Saudi's Water and Electricity Company's original plan was to make Ras Al Zour the world's largest independent water and power project, with a capacity of 3000 MW using gas as fuel. A royal decree issued in 2006, however, stated that the power plant would use crude oil as feedstock and hence will have a lower capacity. – Agencies Accor Hotel Group to expand in Middle East JEDDAH - The French hospitality group Accor is currently planning a massive expansion of budget and moderately priced hotel accommodation in the Middle East. The group has been sadly hit by the business downturn of the recession and is suffering from a decline in demand for its high end and mid-income hotel accommodation. However, the group is responding positively with its current plans to target the lower end of the market along with middle income sectors. Accor has announced a 9.6 percent decline in sales for January to March this year. Philippe Bertaud, director of development for the Middle East, said while at a property conference in the United Arab Emirates that Accor is planning to expand its hotels to 24 by 2011 in the Middle East and to 65 from its present figure of 19. Baretaud also said that the Accor group would concentrate on Abu Dhabi, Saudi Arabia and Qatar but was also looking at possibilities in Jordan, Oman and Syria. “We are developing hotel chains in every country of the Middle East. There's going to be a focus on upscale, mid-scale and budget developments in Saudi for the next coming years. We see Syria being of interest because they are pursuing opening up of the country and they have been (safe) against the global negative liquidity crisis.” According to Baretaud the hotel group are to build the first Ibis hotel in Jordan by the end of 2009 and are currently finalizing a deal to build a new luxury hotel in Damascus by 2010. – SG Almojil's Q1 profit sinks RIYADH - Eastern Province-based Mohammad Al-Mojil Group (MMG), a contractor specializing in oil and gas projects, said net profit fell 96 percent in the first-quarter as several projects hit delays amid depressed energy demand . MMG made SR5.4 million in ($1.4 million) in the three months to March 31, down from 143 million riyals a year earlier, it said in a statement posted on the Saudi bourse's website. “The decline ... is due to the delay in receiving requirements of projects, which has affected the pace ... of these projects,” MMG said. “This has resulted in an increase in costs and provisions and a decrease in profit margins, in addition to the implications of the economic changes in general,” it added. Earnings per share fell to SR0.05 from SR1.43, although revenues rose 18 percent to SR800.7 million. MMG had SR3 billion worth of projects by the end of March, it said. - Reuters. Credit Suisse's new appointee DUBAI - Credit Suisse announced the appointment of Jamal Al-Naif as head of Asset Management Distribution for the Middle East and North Africa (MENA) region, effective immediately. The new position underscores the bank's continued commitment to its clients in the region. Based in Dubai, Al-Naif will be responsible for institutional client coverage. He reports functionally to Mark Bourgeois, Global head of Asset Management Distribution, and regionally to Bassam Yammine, co
