Telecoms STC approves PIF purchase of telecom company Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion). Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […] July 26, 2024
Real Estate Interest in Saudi commercial space may be peaking Weakening demand in Saudi Arabia’s commercial sector suggests the market could be reaching a plateau, a new survey indicates. The Global Commercial Property Monitor report by the UK’s Royal Institution of Chartered Surveyors (Rics) found that demand for space rose by 20 percent in the second quarter of 2024, compared with a 53 percent rise […] July 25, 2024
Banking & Finance PIF appoints investment chief as it shifts focus to local projects Saudi Arabia’s Public Investment Fund has appointed a head of investments as it seeks to manage funding challenges for the giga-projects at the centre of the country’s economic transformation programme. Fahad AlSaif will be responsible for “guiding the development of PIF’s overarching investment strategy” and helping the fund’s leadership in its decisions, a statement said. […] July 24, 2024
Giga-projects Full steam ahead on ‘largest urban park in the world’ Saudi Arabia is forging ahead with construction of what it calls the “largest urban park in the world”, publishing videos of its first buildings under construction after a tunnel opened earlier this year. King Salman Park in Riyadh is owned by the Public Investment Fund and was recently valued by real estate consultancy Knight Frank […] July 19, 2024
Aviation Saudia to buy 50 air taxis from Germany’s Lilium Saudi national carrier Saudia has agreed to buy at least 50 pilotless electric flying vehicles from Germany’s Lilium in the region’s biggest “air taxi” deal so far. The deal for what the industry calls electric vertical take-off and landing (eVTOL) aircraft is Saudia’s second major order this year. In May Saudia ordered 105 Airbus aircraft, […] July 18, 2024
Analysis Aviation Damascus resumes Saudi flights but sanctions stifle trade Syria has resumed weekly flights from Damascus to Saudi Arabia as commercial relations warm up further after diplomatic ties were restored last year. But Syrian integration into regional economies is still moving slowly, because of US sanctions. Syrianair began the once-weekly flights to Riyadh on July 10, adding its list of Gulf destinations including Dubai, […] July 17, 2024
Economy Slowing Chinese economy no threat to Saudi oil exports – yet Slower economic growth in China in the second quarter of this year has raised concerns about Saudi Arabia’s ability to maintain funding lines from its main trading partner. The Chinese economy grew at a year-on-year rate of 4.7 percent, down from 5.3 percent in the previous quarter. In the retail sector, the pace of growth […] July 17, 2024
Economy Non-oil discounting brings Saudi inflation down Saudi Arabia’s year-on-year consumer inflation rate fell to a low of 1.5 percent as non-oil businesses competed over prices but the wholesale price index remained at a high of 3.2 percent, reflecting high prices globally. The consumer price index was down from 2.7 percent in June 2023. The CPI was also down from the 1.6 […] July 16, 2024
Aviation Saudi air passengers up 17% in first half of 2024 Saudi Arabia had a 17 percent increase in the total number of air passengers in the first half of the year, rising to 62 million. This was based on a 12 percent rise in total flights to 446,000, the General Authority of Civil Aviation (GACA) said. Air freight was also up, showing an increase of […] July 15, 2024
Retail Saudi shoppers heavily favour local produce Saudi shoppers heavily favour local produce over imported foodstuffs and have a high interest in the use of artificial intelligence in food shopping, a new survey has found. It also described the Saudi supermarket sector as a huge opportunity for discount retailers. The Customer Perception Map by global consultancy Oliver Wyman, which included Saudi Arabia […] July 15, 2024
Tourism Saudia reports big rise in international passengers Saudi Arabia’s national carrier Saudia reported a 24 percent increase in international passengers to 9.1 million in the first half of 2024. There was also a 13 percent rise in the number of flights. The Hajj pilgrimage in June played a large part in the growth. The number of passengers flying on domestic routes rose […] July 12, 2024
Giga-projects AlUla plans Nabataean resort carved into Saudi mountains Saudi Arabia is spending around $15 billion on the ancient site of AlUla, including a resort for the super-rich chiselled into the face of its rock formations and mountains. AlUla is the site of the pre-Islamic Nabataean kingdom that was based in Jordan’s Petra. The resort, called Sharaan, will include 38 suites “carved into sandstone […] July 11, 2024
Real Estate Sports and entertainment to push up Riyadh retail rents The sports and entertainment sectors will be key drivers in Riyadh retail rents rising by 28 percent by 2026, according to new research, with rates already up 3 percent in the past year. “The total existing retail supply in Riyadh stands at 3.6 million square metres, with around 27,050 square metres of retail space entering […] July 11, 2024
Artificial Intelligence Google to fund AI research at Saudi university Kaust Google is providing research grants into artificial intelligence at Saudi Arabia’s King Abdullah University of Science and Technology (Kaust). The $100,000 grants will boost recognised Kaust researchers doing work in multilingual and multimodal machine learning, and the development of large language models. The academic staff will be associated with its new Centre of Excellence on Generative […] July 9, 2024
Transport Saudi-backed Lucid EV makes more cars but lags target Saudi-backed US electric vehicle maker Lucid has increased Q2 production by 22 percent but still looks likely to miss its annual targets. Some 2,110 vehicles were produced, compared to 1,728 in the previous quarter. However, the company’s annual target is 9,000 units. The company also received a setback when the US National Highway Traffic Safety […] July 9, 2024
Artificial Intelligence Saudi companies form AI cloud services partnership The Saudi IT company Al Moammar Information Systems, an investor in the US artificial intelligence (AI) research company OpenAI, has formed a partnership with the investment banker Saudi Fransi Capital to look into launching cloud services for the kingdom’s AI market. Al Moammar will “recommend an optimal business model considering demand, regulations, and technology, assess […] July 8, 2024
Infrastructure Saudi telco STC ends talks to buy Altice Portugal Saudi telecom group STC has ended talks with French-Israeli tycoon Patrick Drahi to buy Altice Portugal after a disagreement over the price. The Public Investment Fund-owned company, which is listed on the Saudi stock market, had offered 8 billion euros ($8.67 billion) for Altice Portugal, the European country’s largest telecommunications player, Portuguese online business site […] July 8, 2024
Giga-projects Saudi university working to improve ‘green concrete’ Saudi Arabia’s King Abdullah University of Science and Technology (Kaust) is developing direct carbon capture for buildings with the “green concrete” construction company Partanna. The Bahamas-based startup has already begun supplying a number of Saudi giga-projects with its concrete that absorbs carbon dioxide. These include housing company Roshn, tourist resort operator Red Sea Global and […] July 5, 2024
Finance Saudi CMA fines two for manipulating stocks Saudi Arabia’s Capital Markets Authority (CMA) has fined two Saudi men SAR11.1 million ($3 million) for manipulating the price of 17 stocks through posts on the social media platform X . Mohammed bin Nawaf bin Mohammed Alharbi and Nawaf bin Mohammed bin Jam’an Alsukhaiber Alharbi used X, formerly known as Twitter, to encourage investors into […] July 5, 2024
Business of Sport Fourteen Saudi football clubs for sale in new FDI drive Fourteen Saudi football clubs are up for sale, including four from the country’s top Pro League, as the country tries to monetise the sport and attract much-needed foreign investment. Six teams, including three in the Pro League – Al-Okhdood, Al-Orouba and Al-Kholoud – will be offered from August. The other eight will follow at a […] July 4, 2024
Agriculture Bids open for Saudi ‘coffee city’ in production drive Saudi Arabia has opened bids for coffee producers to acquire lots in an area of the southwestern Al-Baha region that is intended to be the country’s first “coffee city”. The country aims to become a major coffee producer alongside the likes of Brazil. The area set aside for coffee bush planting is in the mountainous […] July 4, 2024
Giga-projects Consolidating giga-projects pushes PIF into profit Saudi Arabia’s Public Investment Fund (PIF) swung into profit in 2023, with revenues doubling to $88.3 billion. According to an audited financial statement the sovereign wealth fund has consolidated five schemes as it manages giga-project costs. PIF owns the development projects at the heart of Saudi Arabia’s economic reform plan but is now facing funding […] July 3, 2024
