Saudi Arabia is experiencing a period of significant transformation. Vision 2030, the country’s ambitious development plan, is driving diversification across various sectors, and tourism is a key area of focus. In this interview, we speak with Ahmed Alajmi, Chairman & Founder of Takara Hospitality Group, a company at the forefront of this exciting hospitality revolution. Mr. Alajmi shares his insights on Saudi Arabia’s unique tourism offerings, Takara’s innovative approach to staff development, and his perspective on the country’s economic growth and global image. 

Luxury Lifestyle Awards: Can you elaborate on the unique selling points of Saudi Arabia’s hospitality industry? How is Saudi Arabia leveraging its cultural heritage to attract tourists? 

Ahmed Alajmi: From a cultural perspective, Saudi Arabia holds significance as the birthplace of Islam, a religion practiced by approximately 1.5 billion people worldwide (22% of the global population). Many undertake pilgrimages to Mecca, professing love and peace at least once in their lives. 

Moreover, the government’s investment of 550 billion dollars in new destinations by 2030, including NEOM’s five stages and the Red Sea project in the north, adds to the country’s allure. In the capital, Riyadh, significant developments have taken place around the birth city of the Kingdom, At-Turaif (often referred to as Bujairi in Diriyah, which continues to expand), as well as the New Murabba and The Edge of the World in Jebel Fihrayn. 

In the east, landmarks such as Al-Qara Hill and Al Uqayr, along with the picturesque Fanateer Beaches in Jubail and the Khobar coastline, offer splendid attractions. The western city of Jeddah boasts magnificence and artistic richness, while AlUla in Medina concludes the country’s splendorous offerings. 

Rest assured, there is much to see and experience in Saudi Arabia! 

LLA: Saudi Arabia’s Food & Beverages scene is rapidly evolving. What exciting trends do you see emerging in the Saudi Arabian restaurant industry, and how is Takara Hospitality Group innovating to stay ahead of the curve? 

AA: The General Authority of Statistics reports that the Kingdom has approximately 32.2 million inhabitants, with 42% being foreigners. However, only 1% of these foreigners are Westerners. Many well-known Western food and beverage brands have entered the Kingdom without considering local tastes, and as a result, they failed. 

At THG, we prioritize catering to our customers’ preferences. For instance, our Japanese restaurant, TAKARA, respects traditional Japanese cuisine while incorporating local ingredients such as Labneh, Kunafa, Zereshk, and Saffron to appeal to the local audience. We utilize 90% locally sourced ingredients to honor our customers’ affinity for their homeland. This approach has significantly contributed to maintaining high levels of customer satisfaction and consistently full venues. 

LLA: What specific developments under Vision 2030 are most impactful for the Food & Beverages sector in Saudi Arabia? And how is Takara Hospitality Group positioned to contribute to the ambitious tourism development goals outlined in Vision 2030? 

AA: I believe I addressed this question partially in my previous responses. However, I can highlight three additional major projects in the Kingdom. 

The first is ROSHN, a giga-project aimed at increasing the homeownership rate in Saudi Arabia to 70% by the end of this decade. It is a technology-driven initiative encompassing over 200 million square meters of land. 

The second project is Qiddiya, situated southwest of Riyadh. This giga-project aims to create a cultural, sports, and entertainment destination to enhance the quality of life for the Kingdom’s residents. 

Last but not least is the Jeddah Tower, expected to become the world’s tallest building, surpassing the Burj Khalifa, with an estimated height of one kilometer. It’s also worth mentioning Dhahran’s innovative project, the Rig, a world-first amusement park to be constructed on an offshore platform in the Arabian Gulf. 

At THG, we maintain constant communication with all the key stakeholders involved in these projects. We are proud to say that the interest is mutual and ongoing; they consider us their partners. Additionally, we are in the process of finalizing franchise agreements for two major brands to expand our portfolio. Furthermore, we are introducing a new Saudi-made brand with multiple locations, along with two online brands. 

LLA: Your company emphasizes hiring for potential and fostering a collaborative environment. Can you share some specific examples of how this approach has benefited Takara Hospitality Group? 

AA: At THG, we firmly believe in the power of collaborative learning, valuing this approach over individual achievements. 

From the beginning, we recognized that many companies hire professionals based solely on their experiences and attempt to fit them into existing organizational structures. However, we adopt a different approach. We prefer to recruit individuals who possess a passion for learning and a willingness to share their knowledge with others. 

Our hiring process focuses on selecting candidates who demonstrate enthusiasm, positivity, and a keen desire to learn. Upon joining our team, we cultivate an environment where everyone is encouraged to share their knowledge, ideas, and experiences. 

We believe that this approach enables us to position our employees in roles where they can continuously grow and develop their skills, ultimately benefiting our company as a whole. 

LLA: With an impressive staff retention rate, what are some key aspects of your company culture that contribute to this success? 

AA: We are built upon three core principles: honesty, respect, and family. And I don’t simply say this for the sake of it. We extend support not only to our employees but also to their families in every possible way, including providing opportunities for higher education. At THG, our management operates with an open-door policy for all our employees and partners. We closely monitor their progress and offer financial advice to help them invest wisely for their future, while also encouraging them to save. We celebrate successes together and, in the face of failure, we motivate them to learn from it and continue moving forward with us. 

Within our Group, we don’t adhere to a hierarchical boss-employee structure; rather, we consider everyone as leaders, contributing their insights for the benefit of the company. This is perhaps why our staff retention rate exceeds 90%. Regular internal hiring practices, conducted monthly if not weekly, demonstrate our commitment to nurturing and retaining our talent. We highly value our existing team members, understanding that retaining them is crucial for the company’s growth. 

LLA: Beyond tourism, what other sectors are key to Saudi Arabia’s strategy for economic diversification away from oil dependence? 

AA: It is a well-known fact that Saudi Arabia’s economy has historically been heavily reliant on oil. However, in the last two decades, there has been a noticeable increase in the contribution of the non-oil private sector to the country’s economy. This growth can be attributed to rising oil prices, prompting the government to promote private-sector activity through increased spending. 

In 2021, a new directive was announced requiring companies wishing to contract with Saudi Arabia to establish their regional headquarters within the country, preferably in Riyadh, by 2024. Companies that comply with this directive will be eligible for tax exemptions and other incentives. 

The Saudi Public Investment Fund (PIF), ranked as the world’s fifth-largest private investment fund, has recently made several investments in companies such as Facebook, Starbucks, Disney, Boeing, Citigroup, Live Nation, Marriott, several European energy companies, as well as Retail Ventures Limited (RRVL) and Hambro Perks Ltd.’s Oryx fund. 

The Vision 2030 initiative aims to diversify non-oil exports and increase the share of non-oil GDP to 50% by 2030. Key sectors that will help achieve this goal include finance, insurance, transportation, communications, non-oil manufacturing, and agriculture. 

Lastly, there are over 1,500 companies, including THG, and more than 250,000 products that have received the “Saudi Made” recognition. 

LLA: With Vision 2030, driving significant growth in Saudi Arabia’s hospitality sector, what are Takara Hospitality Group’s plans for expansion in the coming years? Are there specific regions or types of establishments you’re targeting for future development? 

AA: We are closely monitoring the market and have plans to expand our already successful brands while also opening new ones in major cities across the Middle East over the next 30 months. Our objective is to establish at least 11 new locations by September 2026, ensuring that our expansion is conducted in a structured and financially prudent manner. 

Additionally, we are exploring opportunities in food manufacturing within the Jeddah industrial zone, as we believe this will play a significant role in enhancing the region’s future food security. 

Conclusion: 

Ahmed Alajmi’s vision for Takara Hospitality Group reflects the wider transformation underway in Saudi Arabia. By embracing cultural heritage, fostering a collaborative work environment, and prioritizing sustainable growth, Takara is not only setting a new standard for hospitality within the region but also contributing to the country’s emergence as a major tourism destination. As Saudi Arabia continues on its ambitious development journey, Takara Hospitality Group serves as an inspiring example of innovation and success.