Markets Saudi perfume maker to list 30% stake Al Majed for Oud Company, a $200 million perfume and oud products manufacturer, intends to float 30 percent of its capital, or 7.5 million shares, on the Saudi stock exchange. The final IPO price will be determined after the book-building process, which will run from August 25 to 29. The retail offering will be for one day on September 15, comprising […] August 19, 2024
Infrastructure Riyadh’s road network gets a $3.5bn upgrade The first phase of plans to upgrade Riyadh’s road infrastructure has begun. The Royal Commission for Riyadh City (RCRC) has awarded four contracts worth SAR13 billion ($3.5 billion) to develop the road network in the Saudi capital, the state-run Saudi Press Agency reported. The projects are part of the plan announced in 2020 by Crown […] August 19, 2024
Markets Saudi forex assets fall but US Treasury holdings rise Saudi Arabia’s net foreign assets fell by $15.2 billion month on month in July, but the kingdom’s US Treasuries holdings shot up by another $4 billion in June, new data showed this week. The Saudi central bank’s net foreign assets decreased from SAR1.67 trillion ($445.3 bn) in June to SAR1.613 trillion in July, preliminary data […] August 16, 2024
Transport Driverless cars for Saudi officials by next year Saudi Arabia has launched a project for driverless cars which could result in government agencies using them as early as next year. The government is installing smart communication devices along roadways that interact with autonomous vehicles, the official Saudi Press Agency said, announcing a new Saudi Road Code. “These devices provide real-time road condition data, […] August 16, 2024
Finance Saudi capex expected to shift focus to renewables Saudi Arabia is predicted to drastically scale back its capital expenditure in fossil fuels, allocating less than a quarter of its $1 trillion planned investment to oil. Goldman Sachs Research expects capex in the oil sector to decline by $40 billion between 2024 and 2028, as the kingdom pivots towards renewable energy and economic diversification. […] August 16, 2024
Business of Sport Saudi Arabia adds soccer in North America to sports portfolio Saudi Arabia has added the Confederation of North, Central America and Caribbean Association Football (Concacaf) to its squad of sporting investments. The kingdom’s sovereign wealth fund has partnered with the regional governing body for soccer “to support the growth of the sport at all levels”. The Public Investment Fund will sponsor football development initiatives, with […] August 16, 2024
Renewable Energy China wins $972m contract for new Saudi solar plant A Chinese state-backed consortium has won a $972 million engineering, procurement and construction (EPC) contract to build a two-gigawatt (GW) solar project near Mecca in Saudi Arabia. The Saudi PIF phase IV Haden photovoltaic project is being developed by Buraiq Renewable Energy Company, a joint venture between Acwa Power, the Public Investment Fund and Saudi […] August 16, 2024
Finance PIF cuts down on Starbucks and goes for chips in US rejig Saudi Arabia’s Public Investment Fund has adjusted its US equities portfolio, including trimming its call options on Starbucks. The global coffee chain has faced boycott calls over its perceived pro-Israel stance in the ongoing Gaza conflict, a claim it denies. In its latest Securities and Exchange Commission filing, PIF decreased its Starbucks call options by […] August 15, 2024
Tourism Tourist spending in Saudi Arabia hit new high in 2023 Around 27 million international tourists spent SAR141 billion riyals ($37.6 billion) in Saudi Arabia in 2023, the highest figure yet. The international spending, published on X by the ministry of tourism, was a 44 percent rise on 2022 and compares to the previous high of SAR103.4 billion spent by 17.5 million inbound tourists in 2019, […] August 15, 2024
Banking and Finance More mergers likely in GCC Islamic insurance market More consolidation is likely among small and medium-sized Islamic insurers in the UAE and Saudi Arabia for the rest of the year, as they continue to struggle with weak earnings, according to analysts. One in five Islamic insurers in Saudi Arabia and one in three of those in the UAE merged in recent years, in […] August 15, 2024
Renewable Energy Acwa Power signs deal on Indonesian solar project Saudi Arabia’s Acwa Power has signed a power purchase agreement (PPA) with Indonesia’s state-owned electricity utility PT Perusahaan Listrik Negara (Persero) for the 60 megawatt (MW) Saguling floating solar PV project. The Saudi-listed renewable major has a 49 percent stake in the project, with the rest being held by Indonesia Power, a subsidiary of PT […] August 15, 2024
Analysis Banking and Finance Riyadh’s investment law reforms tipped to win over sceptics Saudi Arabia’s investment law reforms are poised to release a backlog of pent-up deals – and are a tacit admission that procedures have often been cumbersome, analysts have told AGBI. Under the overhaul announced on Sunday, elements of Vision 2030 and the National Investment Strategy will be combined in a single framework that aims to […] August 13, 2024
Aviation Riyadh Air awards $400m ground handling contract Riyadh Air, Saudi Arabia’s new national carrier, has awarded a SAR1.5 billion ($400 million) ground handling services contract in the kingdom as it gears up to launch operations next year. The 4.5-year contract, with an option for a two-year extension, was awarded to Saudi Ground Services Company, which trades on the Saudi stock exchange. Under […] August 13, 2024
Analysis Markets Saudi blue-chips help Gulf dividends dwarf global average Saudi companies form the bulk of Gulf businesses that have announced second quarter dividends, but it is the Commercial Bank of Kuwait that provided the highest dividend yield. Saudi Aramco, Bahrain’s Batelco and Dubai’s Tecom Group are other standouts by this metric. Of the listed Gulf companies with a market capitalisation of more than $1 […] August 13, 2024
Banking and Finance Riyadh revamps investment law as it seeks giga-project cash Saudi Arabia has updated its investment laws as it looks to attract more private sector funding for giga-projects. The update, announced on Sunday, pulls together Vision 2030 reforms and the National Investment Strategy under one framework. It aims to provide investors with “greater transparency, flexibility and confidence”, according to a government statement. Saudi Arabia has […] August 12, 2024
Sustainability Saudi Aramco and Kaust to invest $100m in R&D Saudi Aramco, the world’s largest oil producer, and King Abdullah University of Science and Technology (Kaust) are to invest $100 million in research and development projects. The 10-year investment will support projects focused on energy transition, sustainability, materials innovation, upstream technologies and digital solutions, aiming for both environmental and commercial benefits. NewsletterGet the Best of […] August 12, 2024
Industry Maaden profit up three-fold on higher commodity prices Maaden, Saudi Arabia’s largest miner, reported a three-fold surge in net profits supported by higher commodity prices and lower raw material costs. The second-quarter 2024 earnings rose to SAR1.02 billion ($260 million) from SAR351 million in the year-earlier period. In addition, an insurance claim of SAR270 million and a one-off severance charge of SAR192 million […] August 12, 2024
Oil & Gas Sipchem to build new $189m Saudi petchem facility Saudi International Petrochemical Company (Sipchem) has awarded a $189 million contract to a South Korean contractor to build a new petrochemicals facility in Saudi Arabia. The project was won by SGC Engineering & Construction, an engineering, procurement and construction contractor, The Korean Economic Daily, a financial news outlet, reported. The deal involves the construction of […] August 12, 2024
Energy Saudi Arabia signs IAEA protocol as nuclear plans advance Saudi Arabia has inched closer to obtaining US help to develop a nuclear energy programme by signing a protocol that ensures the International Atomic Energy Agency (IAEA) has legal rights to operate inside the kingdom. However an agreement to the inspection of nuclear facilities by the Vienna-based supervisory body, including a protocol that would allow […] August 9, 2024
Tourism ‘Space balloon’ to launch from Saudi Arabia Spain’s Halo Space said this week that Saudi Arabia will be one of the regular launch sites for its commercial near-space balloon project, giving a boost to ambitious Saudi tourism plans. An unmanned test flight will take place in the second half of September from a location in the Al-Aflaj oasis 330km south of Riyadh, […] August 9, 2024
