Transport Saudi trials unmanned air taxis for Hajj pilgrims Saudi Arabia has completed the first unmanned air taxi trial in Mecca as part of its plan to move pilgrims faster between key locations during the Hajj pilgrimage. Saudi-owned Front End conducted the air taxi trial using Chinese drone maker EHang’s EH216-S, a pilotless electric vertical takeoff and landing (eVTOL) vehicle. Held in a low-risk […] June 14, 2024
Banking and Finance Tax on foreigners may be axed to boost Saudi bond market The tax on foreign investment in Saudi corporate bonds may be scrapped in an effort to boost the market. Saudi Arabia’s Capital Markets Authority has issued a report describing the 5 percent withholding tax on interest payments to corporate bondholders as “unattractive and discouraging for foreign institutional investors”. It called for “easing tax requirements for […] June 13, 2024
Finance Saudi Arabia’s PIF to invest $15bn to drive Brazil’s growth The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is planning to invest $15 billion in Brazil, according to a media report. The investments will be made in green hydrogen, infrastructure and renewable energy sectors, Reuters reported, quoting Brazil’s minister for energy, Alexandre Silveira. NewsletterGet the Best of AGBI delivered straight to your inbox […] June 13, 2024
Transport Mecca expands public transport as Eid al-Adha nears Authorities in Mecca are expanding the public transport system to accommodate more pilgrims from abroad as the Hajj season reaches its climax next week with Eid al-Adha. The Royal Commission for Mecca City and the Holy Sites said this week it was providing 400 buses operating from four main stations around the city to manage […] June 13, 2024
Analysis Renewable Energy Saudi summons energy to unearth geothermal potential A Saudi Arabian university has completed drilling a research well as the kingdom steps up efforts to harness its geothermal potential – which industry experts estimate could free up to 1 million barrels of oil a day for export. The 400m deep observation well was drilled by a team from King Abdullah University of Science […] June 13, 2024
Giga-projects Adventure giga-project The Rig ‘definitely happening’ One of Saudi Arabia’s most headline-grabbing giga-projects is moving ahead with plans for two floating entertainment centres on offshore platforms off the kingdom’s east coast. Many thought the exotic adventure tourism project known as The Rig would be canned as the Public Investment Fund (PIF) reviews its $1.25 trillion portfolio of giga-projects. Insiders remain confident […] June 12, 2024
Tech Saudi gaming company courts giants of Japan and South Korea Japanese and South Korean gaming companies such as Nintendo and Kakao are being targeted by Saudi Arabia’s Savvy Games Group, which wants them to set up in the kingdom to make products aimed at local consumers. Brian Ward, CEO of Savvy, told AGBI: “If locally made Arabic games tap into the ancient lore and history […] June 12, 2024
Business of Sport Saudi wealth fund in talks to create new boxing league Saudi Arabia’s sovereign wealth fund is in talks with boxing promotion companies to create a new boxing league, as the kingdom expands its investments into the sporting sector, according to a media report. The Public Investment Fund is negotiating with promoters such as the UK’s Matchroom Boxing and Golden Boy Promotions from the US to […] June 12, 2024
Tech Ceer signs $2.2bn deal with Hyundai to power its EVs Ceer, Saudi Arabia’s first electric vehicle brand, will use technology from South Korea’s Hyundai to power its cars, as the kingdom continues to ramp up its presence in the EV market. The Saudi EV maker has signed a SAR8.2 billion ($2.2 billion) contract with Hyundai Transys to supply EV drive systems (EDS). The integrated EDS […] June 12, 2024
Finance Aramco raises $11.2bn from secondary share offering Saudi Aramco closed its secondary share offering on Tuesday, securing SAR42.1 billion ($11.2 billion) for the government exchequer. The proceeds from the offering will rise to SAR46.31 billion if the over-allotment option is exercised in full. The offering was the largest secondary offering in Europe, Middle East and Africa since 2000 and the largest equity […] June 12, 2024
Renewable Energy Acwa Power to raise $2bn in rights issue Saudi Arabia’s green energy developer, Acwa Power, plans to raise SAR7 billion ($1.9 billion) in new capital through a rights issue to help treble its assets under management by 2030. The company, which is owned by the government’s Public Investment Fund, said the new shares issued to current shareholders would allow Acwa to “anchor its […] June 11, 2024
Development Saudi Arabia seeks private investment for 113 water projects The Saudi government-backed National Water Company (NWC) is seeking private investment in projects to upgrade 113 existing water and sewage treatment plants this year. These plants will have a total capacity of 2.4 million cubic metres per day. No estimate was given on the expected private sector investment. NewsletterGet the Best of AGBI delivered straight […] June 11, 2024
Economy Saudi Arabia GDP contracts but non-oil growth rises Saudi Arabia’s economy contracted by 1.7 percent year on year in the first quarter of 2024 due to ongoing oil production cuts, but non-oil growth was up 3.4 percent in the same period, according to adjusted figures released this week. Last week Opec+ agreed to extend its existing crude output cuts into 2025 in a […] June 10, 2024
Giga-projects Saudi startup signed up to develop aquapark projects Saudi Arabia’s Ministry of Investment has signed an agreement with startup Nowaar Entertainment to develop a series of aquaparks. The first aquapark will be operational in Riyadh in 2025, the ministry said on X, formerly Twitter. Nowaar will “develop a number of entertainment and water cities in the kingdom”, in cooperation with the General Entertainment […] June 10, 2024
Analysis Health Wearable tech shoppers track price as well as health Gulf consumers who are interested in wearable tech – smart watches, rings, glasses and implants – are opting for mid-range gadgets rather than premium devices, industry experts have told AGBI. Dubai retailer Jumbo Electronics reported 50 percent year-on-year growth in the AED600-1,000 (about $163-$272) price segment in the first four months of 2024. The AED1,000-1,500 […] June 10, 2024
Aviation Airports consider ‘transit hotels’ for 6-hour stays Saudi Arabia’s aviation expansion could stretch to transit hotels inside airport terminals where customers can pay for stays of less than the standard 24 hours. A Hong Kong-based company is developing the concept in the Gulf, with hotels offering six and 12-hour stays already established in Jeddah and Abu Dhabi, and a Muscat hotel that […] June 9, 2024
Finance Aramco retail investors to get a minimum of 10 shares The retail tranche of Saudi Aramco’s secondary share offering has been fully subscribed. The retail offering received a total of 1.33 million subscribers at the final offer price of SAR27.25 ($7.27). A minimum of 10 shares will be allocated to each subscriber, with the remaining shares to be allocated on a pro-rata basis with an average […] June 9, 2024
Real Estate ‘Affordable’ new suburb to be built in Mecca A fifth residential suburb in the holy city of Mecca, aimed at affordability for ordinary citizens, is to be built by Saudi Arabia’s National Housing Company. Mecca has seen a plethora of real estate developments aimed at affluent Saudis and Muslims from around the world, but the government is trying to balance this as part […] June 7, 2024
Oil & Gas Aramco awards Sinopec $1.4bn gas pipeline contract Saudi Aramco has awarded a SAR5.2 billion ($1.38 billion) contract to Chinese state energy major Sinopec to expand its domestic natural gas pipeline. Sinopec International Petroleum Services Corporation, a wholly-owned subsidiary of Sinopec Oilfield Service Corporation, won the engineering, procurement and construction (EPC) contract for the third phase of Aramco’s master gas system, one of the […] June 7, 2024
Analysis Construction Gulf construction sector rethinks contract terms as costs rise The Gulf’s construction industry is rethinking the developer-contractor relationship, and procurement and supply chain management, to stay ahead of rising prices of materials and transport bottlenecks as a result of geopolitical volatility. “We are in a part of the world that is very conducive to finding alternatives,” Imad Itani, head of innovation at the Dubai […] June 7, 2024
