Banking and Finance PIF-backed real estate refinance firm to acquire $133m portfolio Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund, has signed an agreement with Riyad Bank to acquire SAR500 million ($133.13 million) worth of real estate financing portfolio. The agreement is the second largest mortgage refinancing deal in the kingdom, the company said in a statement. Fabrice Susini, CEO of SRC, […] August 19, 2022
Economy From chicken to weddings, Saudi prices continue to soar From meat and vegetables to the cost of events such as weddings, consumer prices in Saudi Arabia continue to rise, as inflation reached 2.7 percent year-on-year in July. The biggest increase was in the food and beverage segment, which rose 3.9 percent, mainly on the back of meat prices increasing 5.1 percent, the General Authority […] August 18, 2022
Exclusive Construction Dar Al Arkan predicts 20% climb in construction costs Construction costs in Saudi Arabia are expected to soar by nearly 20 percent and drive down industry margins. Gigaproject developments are at the heart of the kingdom’s economic vision to diversify away from its dependence on hydrocarbons. Saudi Arabia is currently the largest driver of construction activity in the Middle East region accounting for around […] August 18, 2022
Economy Saudi Arabia and Uzbekistan sign investment deals worth $12bn Saudi Arabia and Uzbekistan have signed around 10 investment agreements worth over SAR45 billion ($12 billion), local media reported. “Over 10 agreements were signed between the Kingdom and Uzbekistan in several sectors, with a value exceeding SAR45 billion,” Arab News reported, citing Saudi Minister of Investment Khalid Al-Falih. The signed agreements aim to explore investment […] August 18, 2022
Economy IMF urges Saudi to explore new taxes to boost non-oil revenues Saudi Arabia should investigate new taxes, including on income and property, as it aims to boost its non-oil revenues. While significant change has already been undertaken by the kingdom, with a tripling of VAT to 15 percent during the coronavirus pandemic, more can be done, said Amine Mati, assistant director and mission chief for Saudi […] August 17, 2022
Analysis Energy Oil firms ride high but sector braces for more ‘realistic’ prices The Middle East’s oil and gas sector will remain buoyant into 2023, even as global oil prices become more “realistic” after surpassing a 15-year high of $123 per barrel in March, according to analysts. Oil prices hovered just below $90 per barrel on Tuesday, having gradually come down from $100/barrel at the end of July […] August 16, 2022
Banking and Finance Saudi invests $7bn in US giants from Microsoft to Starbucks Saudi Arabia’s sovereign wealth fund continued its massive investment in US equities in the second quarter of 2022 despite global recession fears. At a time when the kingdom’s income from oil almost doubled, it snapped up $7.6 billion of stocks in technology, e-commerce, retail and finance companies – from Microsoft and Amazon to Costco, Starbucks […] August 16, 2022
Tourism PIF and Cain invest $900m in hotelier Aman Group Saud Arabia’s Public Investment Fund (PIF) and London-based real estate investment firm Cain International said on Monday they had invested $900 million in luxury hotel group Aman, which Cain said valued Aman at $3 billion. The PIF and Cain said, in separate announcements, the investment would support Aman Group’s “global expansion of ultra-luxury hotels and […] August 16, 2022
Manufacturing Manufacturing and mining help Saudi industrial output rise 20.8% Industrial production in Saudi Arabia increased by 20.8 percent year-on-year in June, with the mining and manufacturing sectors the main catalysts for growth. The Saudi General Authority for Statistics (GASTAT) found that in June the Industrial Production Index (IPI) rose 20.8 percent year-on-year. A dive into the figures of their report showed that manufacturing activity […] August 16, 2022
Energy Aramco posts record earnings and predicts robust oil demand to 2030 The Saudi Arabian Oil Company, better known as Aramco, has set a new quarterly earnings record since its initial public offering in 2019, primarily driven by higher crude oil prices and volumes sold and higher refining margins. The energy giant posted a 90 percent year-on-year increase in net income and declared a dividend of $18.8 […] August 15, 2022
Energy Saudi Arabia’s Kingdom Holding invests in Russian energy firms Saudi Arabia’s Kingdom Holding invested in Russian energy groups Gazprom, Rosneft and Lukoil between February 22 and March 22, it said on Twitter on Sunday. Many Western nations have imposed sanctions on Russian energy firms and their executives following Russia’s invasion of Ukraine on February 24. The Kingdom Holding investments fall within the company’s 12.8 […] August 15, 2022
Exclusive Construction Saudi allows worldwide Muslims to buy properties in holy cities A new ruling allowing Muslims from around the world to buy property in Islam’s holiest cities could be a “game changer” for Saudi Arabia’s real estate market, according to insiders. Ziad El Chaar, vice chairman of Dar Al Arkan Real Estate Development, Saudi Arabia’s largest listed developer, told AGBI: “One of the main developments we’re […] August 15, 2022
Banking and Finance Saudi Arabia plans to renew $3bn deposit to Pakistan Saudi Arabia is planning to renew its $3 billion (656 billion Pakistani rupee) deposit with the State Bank of Pakistan, Bloomberg reported, citing people familiar with the matter. The kingdom also plans to provide $100 million a month for 10 months in petroleum products that will be granted as additional support, the news agency reported, expecting the […] August 15, 2022
Energy Saudi Aramco Q2 profit soars 90% on higher oil prices Saudi Arabian state oil producer Aramco reported a 90 percent rise in second-quarter profit on Sunday, beating analyst expectations, boosted by higher oil prices, volumes sold and refining margins. The company expects “oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts,” Aramco chief executive […] August 14, 2022
Markets Saudi Tadawul Group reports Q2 profit drop on mounting costs Saudi Tadawul Group, the bourse’s owner and operator, on Sunday reported an almost 24 percent decline in second-quarter profit as expenses, including salaries, rose. Net profit in the quarter ended June 30 fell to SAR 137.7 million ($36.68 million) from a SAR 181.1 million in the year-earlier period. The group said operating expenditures increased 16.6 percent […] August 14, 2022
LONG READ Business of Sport Saudi Arabia’s next goal: women’s sport Likely Saudi investment in an overseas women’s football team Kingdom may fund other sports such as athletics Sector’s contribution to Saudi GDP is $7bn Just five years ago, Saudi women were banned from watching football at stadiums. Fast forward to 2022 and Saudi Arabia has officially announced its intention to bid for the 2026 AFC […] August 13, 2022
Tourism Israeli airline El Al expects nod for Saudi-Oman corridor in days Permission for El Al Israel Airlines to fly over Oman is expected in “a matter of days”, chief executive Dina Ben-Tal said on Thursday, a move that would be a big boost for the flag carrier’s Asian routes. Ben-Tal, speaking to reporters after El Al issued second-quarter results, said the airline had already received approval […] August 12, 2022
Banking and Finance Saudi Arabia’s Maaden’s Q2 profit triples to $1.1bn Saudi Arabian Mining Co. (Maaden) reported Q2 2022 net profit more than tripled to SAR 4.03 billion ($1.07 billion) from SAR 1.10 billion in the year-earlier period on higher sales prices and increased production. Sales revenue stood at SAR 11.87 billion in Q2 2022 compared to SAR 6.10 billion in the prior period, the mining […] August 12, 2022
Economy China unclear on report that President Xi is to visit Saudi Arabia A Chinese foreign ministry spokesperson told Reuters on Thursday that he had no information to offer at the moment when asked to comment on a media report that President Xi Jinping will visit Saudi Arabia next week. The Guardian in the UK reported on Thursday that plans are underway in Saudi Arabia for a gala […] August 11, 2022
Media & Advertising Former Twitter employee is convicted in Saudi spy case A former Twitter Inc manager accused of spying for Saudi Arabia was convicted on Tuesday on six criminal counts, including acting as an agent for the country and trying to disguise a payment from an official tied to Saudi’s royal family. Ahmad Abouammo, a dual US-Lebanese citizen who at Twitter helped oversee relationships with journalists […] August 10, 2022
