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Saudi Arabia household spending reaches a record high

Last updated: Tuesday, January 07, 2014 12:39PM

Household spending in June and July is expected to reach a record SAR 724 billion, Saudi Arabian Monetary Agency (SAMA) reports. The Kingdom experienced a surge in spending as the holy month coincided with the shopping season and school holidays.




Electronic transactions have been on the rise; SAMA reports that 1.3 billion transactions were carried out in 2013 through the Saudi Payments Network, EPOS and credit card payments.

Compared to last year, electronic payments are expected to increase by 10 percent, and the use of Electronic Points of Sale (EPOS) is expected to increase to 24 percent.

Electronic payments are becoming more and more popular among Saudi youth, with the Kingdom also having one of the highest number of internet and smartphone users in the MENA region.

Saudi banks are encouraging customers to switch to electronic payment methods – however, cash still remains a popular choice. In 2013 ATM withdrawals totalled SAR 658 billion.

[Also Read: More credit cards means ecommerce on rise in Saudi Arabia / How your credit card protects your purchases]

Spending in Saudi Arabia reaches record high | Souqalmal.com

Saudi Gazette
 
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Jubail port records 20% increase in cargo transport

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TRADE HUB: The total tonnage of liquid bulk cargo exports and imports from Jubail Commercial Port amounted to 1,693,001 tons in the first six months.
JUBAIL: SULTAN AL-SUGHAIR

Published — Friday 11 July 2014

Last update 11 July 2014 12:06 am

Jubail Commercial Port has seen a 20 percent increase in the total weight of cargo transported via its port during the first half of 2014 with 5,075,054 tons compared to 4,244,648 tons during the same period in question.
Captain Fahd bin Ahmed Al-Amer, director general of Jubail Commercial Port, said that the total tonnage of liquid bulk cargo exports and imports amounted to 1,693,001 tons in the first six months since the beginning of the year compared to the same period last year when it was 1,132,343 tons, a 50 percent increase.
Meanwhile, the general cargo exports and imports declined by 38 percent where it scored 579,738 tons by the end of June this year compared to 927,645 tons in the first half of 2013, he noted.
Al-Amer said the number of containers (TEU) saw an increase of 26 percent for the first half of 2014 when it stood at 190,156 TEUs compared to 150,411 TEUs for the same period last in 2013.
According to him, a total number of 393 ships have docked at Jubail Commercial Port during the first half of 2014 compared to 322 ships for the first half of 2013, with 22 percent increase.
Al-Amer predicted that the increase will continue steadily during the current year due to the efforts of the port’s management in marketing and promoting the port to the private sector and via encouraging them to import and export via the port as well as the continuous development of the port’s services that are offered for customers in addition to improving the mechanisms of operation, which boosted the customers’ confidence in the port’s system.
“These achievements come as a result of the support given by the government of Custodian of the Two Holy Mosques King Abdullah to the ports’ sector and the direct and ongoing follow-up of Abdulaziz bin Muhammad Al-Tuwaijri, president of Saudi Ports Authority, to enhance the performance of the Saudi ports and develop them to compete with international ports,” he added.

Jubail port records 20% increase in cargo transport | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
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Saudi Arabian power utility agrees $13bn interest-free loan

By Reuters Friday
20 June 2014 9:36 AM

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(Getty Images - for illustrative purposes only)
State-owned power utility Saudi Electricity Co (SEC) has agreed terms and signed an interest-free loan of SR49.4 billion ($13.17 billion) with the kingdom's Ministry of Finance, the company said in a statement.

The loan has a lifespan of 15 years but there is a grace period of ten years before repayments begin, the statement to Riyadh's bourse said.

SEC in March said a royal decree had granted it the soft loan to help fund power generation projects, subject to the completion of talks with the ministry.

The company plans to spend SR622 billion to 2023, adding 40,000 megawatts of installed generating capacity and expanding transmission and distribution networks, SEC chief executive Ziyad Alshiha said at the time.

He added that power usage in Saudi Arabia had risen by around 7 to 8 percent a year over the last decade and would continue to rise.

Saudi power utility agrees $13bn interest-free loan - Banking & Finance - ArabianBusiness.com
 
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Cold comfort: Sheikh Muhammad Al Rahbani

By Ed Attwood
Friday, 11 July 2014 1:53 AM

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If you were under the impression that the air conditioning market isn’t vital to Saudi Arabia’s future, think again. As a rapidly growing population — with a propensity for more modern comforts, including larger homes and vast shopping malls — builds up in the kingdom, demand for power is skyrocketing. In the heat of the Gulf summer, air conditioning takes a particularly heavy toll on Saudi Arabia’s grid.

And as demand for electricity and water increases, by around 8 percent every year according to local estimates, Saudi Arabia has to siphon off more of the crude it would ordinarily export, and use it instead to fuel power and desalination plants at subsidised rates. The cost to the Saudi economy runs to not far $100bn a year, with Citigroup warning in 2012 that the kingdom could become a net oil importer by the end of this decade.

So where does Sheikh Mohammed Al Rahbani fit into all of this? As the chairman of Saudi Finn Ducting Company Ltd (SAFID), and one of the Middle East’s richest men, he owns perhaps Saudi Arabia’s largest manufacturer of air distribution products.

“Saudi Arabia is our heartland, and we have a very successful track record in the kingdom,” says Sheikh Mohammed during a recent interview in Dubai. “In fact, if you take the road from Riyadh’s airport to our headquarters in the city’s industrial area, many of the buildings that you will pass contain our systems.”


As power demand rises, the heating, ventilation and air conditioning (HVAC) market in the Gulf is similarly hotting up. According to industry analyst TechNavio, the sector is set to grow annually by an average of 7.4 percent between 2012 and 2016, with local vendors like SAFID posing a huge challenge to the established international players. Saudi Arabia is by far the biggest market, largely due to its fast-growing 28-million-strong population. Another analyst, TechSci Research says that the sectors’ compound annual growth rate between 2013 to 2018 will hit 10 percent.

All this, of course, is good news for SAFID. Founded in 1979 as a joint venture between the Rahbani Group and Finnish tech giant Nokia, with just 60 people making a single type of duct, the firm has quickly grown to become one of the largest providers of air distribution products in the kingdom. As a private company, SAFID keeps its numbers close to its chest, but Sheikh Mohammed says that turnover grew by roughly 10 percent in 2013, while he expects to see “low double-digit growth” for this year. The firm’s performance is also being driven by the kingdom’s colossal infrastructure spending plans, which involve billions of dollars being spent yearly on new houses, new schools and new hospitals.

Right now, SAFID is currently working on at least 35 projects in Saudi Arabia. These aren’t just any projects either; included in the roster is work on the King Abdullah Financial District in Riyadh, King Abdulaziz Airport in Jeddah and last, but not least, the expansion of the Masjid Al Haram (Grand Mosque) in Makkah. In fact, you would be hard pressed to find a major Saudi ministry or developer that doesn’t rely heavily on SAFID’s products for its projects.

“We have a very strong pipeline of projects and our current order book is also looking very healthy,” says Sheikh Mohammed. “We are confident that 2014 will be a landmark year in our history. Construction in Saudi Arabia continues apace, and SAFID is well-placed to capitalise on that growth in the wider economy.”


The firm is working hard to build the kind of products that will help keep the use of electricity demand to a minimum, thus also helping to reduce Saudi Arabia’s carbon emissions, which are some of the highest, per capita, in the world. To that end, SAFID has developed its own research and development facilities, including a state-of-the-art acoustic laboratory.

“One example of innovation is the development of cylindrical ducts as opposed to rectangular ducts,” says Sheikh Mohammed. “Not only does this prevent stale air from being trapped within the system, it also allows a more efficient flow of air. While, of course, we don’t control the energy usage in buildings, it is up to us to ensure the most efficient delivery systems possible.”

The chairman says that, for the time being at least, SAFID has no plans to diversify into other industries, although he does point out that in his personal capacity, he does invest in other areas that can complement the portfolio of companies in which he has an interest.

One of those investments is United Iron and Steel Company, a joint venture between SAFID (the majority shareholder) and the Dubai-based AJ Group, which was set up last year. The joint venture’s first step has been to start building a plant in Abu Dhabi that will provide 250,000 tonnes per year of galvanised steel when complete. The factory will make use of cheaper feedstock to make its product, and the plan is to export the steel to markets as far away as Europe and Africa, as well as catering to high demand at home in the Middle East.

“Currently, 70 percent of the GCC’s galvanised steel is imported, but when complete United Iron and Steel Company will be able to service GCC-based customers, including SAFID,” Sheikh Mohammed says. “The project is due to be completed by September 2015, with production commencing in 2016.”

The plant, which will cost $138m to build, will be based in Abu Dhabi’s KIZAD industrial zone, and about 20 percent of its product will be used by SAFID to build its products back in Saudi Arabia.


The outlook for SAFID looks strong, but Sheikh Mohammed says he has no plans to take the firm public in the near future.

“Right now, our priority is focusing on delivering the best possible products and services to our clients,” he says. “I have seen too many regional companies be very vocal about holding an IPO, only for it to be pulled or cancelled. In the event that SAFID was to go public, it would be following a rigorous exercise to determine whether it would be in the best interests of the business, our people, and our customers.”

As well as ownership of SAFID, and the investment into United Iron and Steel Company and other private-held firms, Sheikh Mohammed has also invested in Pathway Genomics, a San Diego-based company that aims to develop cheaper ways to test for diseases like cancer. He’s hoping at some point to bring the firm’s technical expertise to Saudi Arabia, to enable the country’s population to have diseases diagnosed quicker and cheaper than they are currently.

But how is all this being funded? Much of it is due to the foresight of the chairman’s father.


“My family is very fortunate because my father, Sheikh Haleem, took a very long-term view as an investor and built up significant landholdings in Saudi Arabia, Kuwait, the UAE and elsewhere,” Sheikh Mohammed says. “The majority of this land is currently undeveloped and it is my objective to enhance the value of the land through selective development. My real estate ream is working on a strategy to identify which areas we should develop first.”

Included in this landbank is a 200 sq km slice of Kuwait, bought by Sheikh Haleem in the 1950s, as well as prime land in Makkah, Jeddah, Rabigh and Riyadh. The family also has land on the coast in the Eastern Province, where some development is already taking place. For the time being, however, it seems the chairman’s central focus will remain on meeting the demand for SAFID’s products.

Cold comfort: Sheikh Mohammed Al Rahbani - Interviews - ArabianBusiness.com
 
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Saudi Arabia's Ma'aden posts nine-fold rise in Q2 net profit

By Reuters
Tuesday, 15 July 2014 7:12 PM

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(Photo for illustrative purposes only)
Saudi Arabian Mining Co (Ma'aden) posted a higher-than-expected nine-fold rise in net profit in the second quarter, recovering from last year's poor performance as sales increased and aluminium prices rose.

The miner made a net SR370.8 million ($98.9 million) in the three months to June 30, compared with SR40.98 million in the year-earlier period, it said in a bourse filing on Tuesday.

Earnings were expected to improve because of a slump which Ma'aden suffered in the second quarter of 2013, due to a plant shutdown and lower gold prices. But its performance exceeded the expectations of all four analysts polled by Reuters, who had on average forecast SR183.8 million.

Ma'aden is seen as a key driver of Saudi Arabia's economic diversification away from oil exports, with its $9 billion Waad al-Shimal project expected to produce up to 16 million tonnes a year of numerous phosphate products when it comes on line in late 2016.

The company cited increased sales across its product range as well as higher aluminium prices for the profit increase, which helped offset lower prices for ammonia and one of its fertiliser products.

Ma'aden gave no further detail. Saudi companies usually issue brief earnings statements early in the reporting period before publishing more information later.

The profit increase reverses a broadly negative earnings run for the company, which had reported declining profits in four of the previous five quarters - with the outlying quarter positive largely due to a one-off gain on a joint venture.

The company signed $5 billion of loan financing for the Waad al-Shimal scheme last month and is set to use much of the proceeds of a $1.5 billion rights issue, plans for which were announced in May, to fund the project.


Saudi's Ma'aden posts nine-fold rise in Q2 net profit - Industries - ArabianBusiness.com
 
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Savola net profit jumps 32.4% in Q2
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Abdulraouf Mannaa
REUTERS

Published — Thursday 17 July 2014

Last update 16 July 2014 6:54 pm

DUBAI: Saudi food producer Savola Group reported a higher than expected 32.4 percent jump in second-quarter net profit on Wednesday, beating analyst forecasts as it benefited from higher sales especially in its retail business.
The company, a producer of cooking oil, sugar and other foodstuffs, made a net profit in the three months to June 30 of SR513.3 million ($136.9 million), compared with SR387.8 million in the same period a year earlier, according to a bourse filing.
Six analysts polled by Reuters had forecast, on average, that Savola would record a net profit for the quarter of SR435 million.
The Kingdom's largest food products firm said higher revenue growth in the second quarter, especially in its retail sector, as well as an increase in its share of net income and dividend income from some of its associates, boosted its earnings and helped offset rising finance costs.
Abdulraouf Mannaa, chief executive, said in a statement he expected net income of 460 million riyals before capital gains in the third quarter - in line with 457.4 million a year ago.
Mannaa also said the company was on course to achieve its target for full-year net income before capital gains of SR1.8 billion.
Savola also said it would pay a cash dividend of SR0.5 per share for the second quarter, matching the payout in the same period of 2013.

Savola net profit jumps 32.4% in Q2 | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
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Skytrax boost: Saudia aims at fleet of 286 aircraft by 2025

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Abdul Aziz Al-Hazmi, center, Abdul Mohsen Junaid, CEO Commercial, right, and Rashid Al-Ajami, general manager sales and passenger services in Europe, holding Skytrax awards during a ceremony in London. (AN photo)
JEDDAH: P.K. ABDUL GHAFOUR | ARAB NEWS STAFF

Published — Friday 18 July 2014

Last update 18 July 2014 2:57 am

Skytrax, a UK-based international aviation industry consultancy that runs an airline and airport review, has raised the ranking of Saudi Arabian Airlines (Saudia) from three-star to four-star considering the remarkable improvement of the national flag carrier’s passenger services.
Saudia also won three international awards from Skytrax for the best economy (guest) class seat, best first class comfort amenities and the best airline to improve its services, products and performance in a year. The awards were announced during a ceremony in London recently.Abdul Aziz Al-Hazmi, acting director general of Saudia who received the three awards from Skytrax CEO Edward Plaisted, said his company has a plan to double its fleet strength from 131 to 286 aircraft by 2025.
“We’ll present this proposal to the board of directors for approval,” he said.
After receiving approval from the board, the airline would decide on the type, size and seat capacity of the aircraft it wanted to purchase, he said.
“The number of passengers rose 8 percent in the first quarter of 2014 and revenues increased 10 percent,” he pointed out.
Skytrax said it selected the airlines for its awards after an independent review of their services and performance and considering the opinion of passengers.
More than 19 million passengers participated in the selection of award winners as they voted through the group’s website.
They belonged to 105 nationalities and the review covered 245 airlines.

Al-Hazmi congratulated Prince Fahd bin Abdullah, president of the General Authority of Civil Aviation (GACA) and chairman of Saudia, for the awards and said it was the result of the development programs implemented by the airline over the past years under Prince Fahd’s leadership.
Speaking to reporters, he said Saudia has no plan to increase its domestic fares.
“Passengers who book their seats 10 days before the departure of flights will be able to get tickets at lower rates,” he pointed out.
“We are doing our best to improve our services to win customer satisfaction and only sky is the limit of our ambitions,” the acting Saudia chief said.
Saudia has increased seat capacity in the domestic sector by one million since the beginning of 2014 after receiving newly ordered Airbus and Boeing aircraft.
“There is tremendous increase in the number of domestic passengers,” Al-Hazmi said, adding that the airline operates flights to 28 cities within the Kingdom in addition to serving international destinations.
Al-Hazmi is optimistic about the good future of Saudia.
“Opportunities are growing as a result of airport expansions and opening of new airports,” he said, adding that the newly expanded King Abdulaziz International Airport would be opened in the middle of next year.

Skytrax boost: Saudia aims at fleet of 286 aircraft by 2025 | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
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Kingdom joins key G20 talks in Sydney

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Tawfiq Al-Rabiah

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PORT OF CALL: Commerce and Industry Minister Dr. Tawfiq Al-Rabiah arrives in Sydney on Wednesday to attend a G20 meeting. (SPA)

RIYADH: MD RASOOLDEEN | ARAB NEWS STAFF

Published — Friday 18 July 2014

Last update 17 July 2014 11:44 pm

Saudi Arabia will be represented at the meeting of the G20 trade ministers opening in Sydney on Friday.
Commerce and Industry Minister Dr. Tawfiq Al-Rabiah, who arrived in Sydney on Wednesday, will lead the Saudi team at the two-day meeting.
On arrival, the minister was received at the Sydney International Airport by Dr. Hassan bin Mohammed Al-Ansari, acting charge d’ affaires of the Saudi Embassy in Australia, Dr. Abdulaziz bin Taleb, Saudi cultural attache, and a number of Australian officials.
The meeting is being held in preparation for the Group of Twenty (G20) Leaders Summit, which will take place in Brisbane in November.
It is the principal forum for international economic cooperation and decision-making.
The event, planned at the Brisbane Convention and Exhibition Center on November 15 and 16, is expected to attract more than 4,000 officials and 3,000 media representatives from around the world.
The G20’s permanent membership comprises 19 of the world’s most powerful countries plus the European Union.
Guest countries including Singapore and New Zealand, and international organizations are also taking part.
As an annual event, the G20 gives world leaders the chance to share ideas and outline visions regarding key international issues.
G20 is the most significant international event held in Brisbane since the 1982 Commonwealth Games and Expo 88.
It will showcase Brisbane as a world-class destination for business, tourism, education and events
Australia, the current chair of the G20, wants western countries to continue cooperating with Russia within the G20 framework, according to Prime Minister Tony Abbott .
“The G20 is an economic forum, but not a forum on security issues. Therefore the opportunities for cooperation in the field of economy remain stable regardless of what one country can think of other countries or their actions on the geopolitical arena,” Euronews quoted Abbott as saying in a recent speech.
“And I intend to encourage the economic cooperation within the G20,” the premier said.
Saudi Arabia is a prominent member of the G20 and the leading state in the Middle East and North Africa.
It is also the 11th among the 181 countries in the world, in terms of ease of business practicing, according to the “Business Practice Performance” report for 2010, issued by the IFC, an affilliate of the World Bank.
The Kingdom is the largest free economic market in the Middle East.
It holds 25 percent of the total Arab GDP. Saudi Arabia has the largest oil reserves in the world (25 percent) and it provides energy for investment projects, with its resolute commitment to moderate prices, it kept being the ideal destination for energy projects, as well as promising mining.
Saudi market also has a high purchasing power as the local market is witnessing rapid and fast accelerating and continuous expansion.
The Kingdom is one of the fastest growing economies in the world. The per capita income is expected to increase to $33,500 by the year 2020 from $20,700 in 2007.
The Saudi Riyal is considered to be among the most stable currencies in the world.

Russia hosted the G20 summit last and the presidency will pass to Turkey in 2015.

Kingdom joins key G20 talks in Sydney | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 
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Value of Saudi Arabia’s Islamic banking assets reaches $285bn

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Hamad Buamim​

RIYADH: ARAB NEWS

Published — Monday 21 July 2014

Last update 20 July 2014 11:57 pm

The Dubai Chamber of Commerce and Industry based on a recent study by Ernst and Young stated that global Islamic banking assets have registered cumulative annual growth rate of about 16 percent during 2008-2012, reflecting the radical shift from conventional financial system in favour of Islamic finance.
The statement was made in the framework of the preparation for the 10th World Islamic Economic Forum (WIEF), which is being organized in Dubai from Oct. 28-30.
As the emphasis on low risk product alternatives kept the sector insulated from the financial meltdown, Islamic banking products and services have consistently gained market share in recent times, growing up to 50 percent faster than the traditional banking sector in some markets.
The 10th WIEF, organised by Dubai Chamber and the WIEF Foundation, is set to give a new direction to the Islamic finance industry, and help consolidate efforts, share knowledge and experiences to leverage the emerging opportunities in the changing dynamics of the global economy.
The Dubai Chamber report states that there are 38 million Islamic banking customers around the world with two-thirds of them in Qatar, Indonesia, Saudi Arabia, Malaysia, the UAE and Turkey (QISMUT).Among these six prominent Islamic finance countries, Saudi Arabia is the biggest market in terms of Islamic banking assets with estimated value of $285 billion in 2013 compared to $245 billion in 2012. The research note shows that Saudi Arabia represents about 43 percent of the total Islamic banking assets in all the six countries. It also accounts for about 53 percent of Saudi Arabia’s total domestic banking assets.
Notably, Saudi Arabia also figures prominently in the World Islamic Banking Competitiveness Report 2013-14, which shows that while one-fifth of the banking system assets across QISMUT have transitioned to Islamic banking, in Saudi Arabia supply push has seen share of Islamic banking cross 50 percent of system assets.

In the region, the UAE is emerging as another serious player in this sector with total Islamic banking assets growing to about $ 95 billion in 2013 compared to $ 83 billion in 2012. The Dubai Chamber report adds that the compound annual growth rate (CAGR) for Islamic banking assets in the UAE is expected to be about 17 percent over the period 2013-2018.
According to the Dubai Chamber report, the group of QISMUT was the fastest growing markets for Islamic banking in 2012, with total Islamic banking assets commanded by the QISMUT reaching about $ 567 billion and registering CAGR of about 16.4 per cent over the period 2008-2012.
The Dubai Chamber research also shows that globally Islamic banking profit pool is projected to reach $ 30.5 billion by 2018 driven mainly by higher retail focus.
“The report by Dubai Chamber shows that the prospects of Islamic banking are very promising as indicated by the significantly high growth rates of Islamic banking total assets,” said Hamad Buamim, president and CEO of Dubai Chamber.“
“Dubai has the potential to shape the course of the massive Islamic economy, and this is reflected in the choice of Dubai as the venue for the 10th World Islamic Economic Forum (WIEF),” added Buamim.
In 2012, QISMUT Islamic banking profit pool was estimated at $9.4 billion and it is expected to reach $26.4 billion by 2018.
Commenting on the findings, PwC Global Islamic Finance Leader Ashruff Jamal said: “A fundamental part of the global Islamic economy is the Islamic finance sector, which is witnessing rapid growth as Islamic financial institutions look to deploy their liquidity into regional and international expansion such as the acquisition of retail portfolio of Barclay's by Abu Dhabi Islamic Bank, and Dubai Islamic Bank's acquisition of a 25 percent stake in Indonesian Islamic lender Bank Panin Syariah.”
He added: “Another notable instance is the recent announcement of an Islamic Exim (export-import) bank, which will be the only institution of its kind in the world with three unique features; it will be Shariah-compliant, trade-based and run largely by the private sector.”
The Dubai Chamber report, however, points out that many Islamic retail banks suffer from lower profitability than the conventional banks, mainly due to higher expenses attributed to complex products, lengthy process steps and more interfaces.
It is estimated that on average leading Islamic banks posted 19 percent lower return on equity (ROE) than comparable conventional peers.
The average ROE for the top 20 leading Islamic banks is about 12.6 percent compared to an average of 15 percent of comparable conventional banks, it states.
The Dubai Chamber research note supports recent indications that Islamic finance is extending reach, particularly in the Middle East and North Africa (MENA) region.
According to Kuwait Finance House 2013 estimates, the MENA, excluding the Gulf Cooperation Council (GCC) states, remains the focal market for Islamic finance, with $599.4 billion in total assets, followed by GCC with $536.9 billion assets. Interestingly, Islamic finance is also gaining ground in North America and Europe with banking assets worth $59.8 billion and total assets reaching $71.6 billion in 2013, reflecting the industry success in transcending barriers to gain greater market share in new areas.

Value of Saudi Arabia’s Islamic banking assets reaches $285bn | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
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Al-Dakheel sets standards in KSA finance sector


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Kholoud Al-Dakheel​

ABHA: NADIA AL-FAWAZ

Published — Monday 21 July 2014

Last update 21 July 2014 12:28 am

Kholoud Al-Dakheel, businesswoman, has a special imprint on the business world, which started when she joined the administrative team in Al-Dhakheel group as the company’s vice president.
In an interview with Arab News, Al-Dakheel said her company specializes in offering financial consultations, and putting up families’ companies for public share holding, in addition to merger and takeover bids, and loan restructuring and other financial services.
“After graduation from Georgetown University in Washington, I started my professional life in the World Bank in the United States as an assistant analyst for one year. I studied for my MA in business administration in the American University in Washington, I specialized in financial administration, and then I studied for the Chartered Financial Analyst in 2003,” she said.
She added that she has started her professional experience in Saudi banks by assuming many positions, such as credit analyst for corporate loans. She also worked as director of relations for corporate in risk management department, and financial analyst in the securities department.
“Even though these tasks are different but I worked in financial institutions that serve the corporate sector. Since 2006 I joined the management of Al-Dakheel Financial Group as vice president, with particular emphasis on the tasks of the consultative position for funding and investment,” Al-Dakheel said, adding that the company offers various financial and consultative services, such as putting up family businesses for share holding, offering consultations on mergers and takeovers, and consultations on loan restructuring and other services for securities.
Al-Dakheel believes that the field of financial consultations and securities is a tough one because it requires professional and accurate knowledge of financial matters. It also demands experience, which could be hard to acquire. Outside financial institutions, such as banks, the presence of women is virtually non-existent. The field of consultative services demands standing on other’s experience before offering consultations.
She highlighted that the Saudi woman still faces many challenges and difficulties in the business world; this is because of the weak educational, regulatory and social structure that supports her work.
“The King supported women’s work and established many laws to this end, but officials in the government or private sector don’t give women sufficient weight. For instance, how can a company like SABIC, which is a symbol of the Kingdom’s economy, be void of female cadre? There are many companies, in which the government has a say in the decision making process, but they still employ women in simple and pro forma jobs, like the telecommunication company,” she said.
Explaining about the obstacles that had faced her in her endeavour in the financial business sector, Al-Dakheel said in the beginning it was difficult, when she started in 1997 in a bank’s management, the experiment of employing females was relatively new, and the employment of women wasn’t completely accepted.
“For me work is a basic element in life, because it is the mechanism that allows me to meet my family’s and community’s needs. Based on this I plan my experience and how to continue in it. I have depended upon two principles since the start of my work; I work hard and don’t feel any difference between male employees and myself whether I was an employee or an owner,” she said.
Because Saudi women face many obstacles while they are looking for a job or a promotion, Al-Dakheel explained that they should work harder and develop their own skills, even if they weren’t employed adding that many businessmen don’t believe in women’s seriousness about work, not to mention other basic obstacles, such as difficulty in transportation or not being able to drive which confines them to office work.
Some women find it difficult to find baby sitters for their newborn babies, she said, however, despite all difficulties hard work is the only guarantor for women’s success.
“Keeping up a balance between home, work and society, is a difficult equation, but not impossible. Focus is kept on the output and not quantity is the most important. The aim is to give each element in human’s life its dues. The important thing is people’s belief in their work. I am not different from other people my family always comes first; hard work and community service follows,” said Al-Dakheel.
Urging women to embark on investment projects, Al-Dakheel advised women to adopt investment thought, develop themselves and know how to invest, whether in securities, which are traded internally and externally, or in companies’ capitals after studying the feasibility of these companies.
Praising the state’s support for the women sector, Al-Dakheel said the public and the private sectors have launched a number of programs to support women, but they are still not enough, adding that women still suffer from basic obstacles that prevent them for managing their investments directly.

Al-Dakheel sets standards in KSA finance sector | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Way to go girl!:yay:
 
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Rolta bags multi-million dollar order in Saudi Arabia - The Economic Times on Mobile

"Comprised of 26 world scale manufacturing units, the Sadara complex will possess flexible cracking capabilities and will produce over three million metric tons of high value-added chemicals and performance plastics products."

@al-Hasani, what is being done in the KSA to expand the downstream petrochemical industry and convert this essential raw material (especially the high-value-added type) into the 4000+ everyday product before exporting it?
 
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Saudi Arabian economy set to grow by 4.6% in 2014, says IMF
By Reuters
Monday, 21 July 2014 8:32 PM


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Saudi Arabia's economy is likely to grow 4.6 percent this year, more than previously estimated, helped by a robust performance of the private sector, the International Monetary Fund said on Monday.

"Private sector growth is expected to remain strong, and oil production is expected to be little changed from 2013," the IMF said after concluding its annual consultations with the country.

"Large scale infrastructure projects and spending on housing will continue to support non-oil sector growth," it said. The oil sector's output accounts for almost half of the $748 billion Saudi economy.

In an April update of its regional projections, the IMF had forecast gross domestic product growth in the OPEC member at 4.1 percent for 2014, when adjusted for inflation. The kingdom's economy expanded by 4.0 percent in 2013.


Labour market reforms took their toll on Saudi GDP growth in the first quarter when the annual rate slowed to 4.7 percent, data showed this month. This followed growth of 5.0 percent in the October-December quarter of 2013, the fastest pace since the third quarter of 2012.

Around a million foreign workers left Saudi Arabia last year after a crackdown on visa irregularities as a part of the labour reforms aimed at putting more Saudi nationals into jobs.

Company results this month showed how these changes have hit the corporate sector.

For example, major Saudi construction firm Abdullah Abdul Mohsin Al Khodari Sons Co reported a 68.8 percent slump in second-quarter net profit on Sunday, falling well below analysts' forecasts as manpower costs surged.

The IMF said inflation in the country should remain subdued this year despite higher growth expectations. It forecast inflation at 2.9 percent, slightly lower than 3.0 percent it estimated in April.

The Fund expects the country's fiscal surplus to more than halve to 2.5 percent of GDP in 2014, the smallest since 2010, from 5.8 percent last year. But it also said that Riyadh's fiscal position was still strong.

In April, the IMF had forecast Saudi Arabia's 2014 fiscal surplus at 7.1 percent of GDP.

"They (IMF directors) generally saw merit in slowing, over time, the pace of government spending and increasing non-oil revenues so as to preserve fiscal buffers," the Fund said.

The kingdom has already taken steps to rein in big increases in government spending. In the 2014 budget,Riyadh projected a modest 4.3 percent expenditure rise from the previous plan, the slowest rate in a decade.

In April, the IMF had forecast that Saudi Arabia's public finances could shift into a deficit of 1.3 percent of GDP by 2018. The IMF did not provide details of any update on this forecast on Monday.

The Fund said the current monetary policy stance in Saudi Arabia, which pegs its riyal to the U.S. dollar, was appropriate. But it called for careful monitoring of rising equity prices and a rapid increase in mortgage lending. It also saw scope for refining liquidity management in the banking sector.

Saudi economy set to grow by 4.6% in 2014, says IMF - Politics & Economics - ArabianBusiness.com

Excellent news.

@ebray

Rolta bags multi-million dollar order in Saudi Arabia - The Economic Times on Mobile

"Comprised of 26 world scale manufacturing units, the Sadara complex will possess flexible cracking capabilities and will produce over three million metric tons of high value-added chemicals and performance plastics products."

@al-Hasani, what is being done in the KSA to expand the downstream petrochemical industry and convert this essential raw material (especially the high-value-added type) into the 4000+ everyday product before exporting it?

http://www.us-sabc.org/files/public/petrochemicals_brochure.pdf

Saudi Arabian General Investment Authority: Petrochemicals

Industrial Development in Saudi Arabia

Saudi Arabia’s petrochem majors to expand capacity | Modern Plastics & Polymers

The last link is the most short link but also deals with your question although not in great detail.

I hope that those links can help answer your question.
 
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MSCI could add Saudi Arabia as emerging market next year

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Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. (Reuters)

REUTERS

Published — Tuesday 22 July 2014

Last update 22 July 2014 3:19 pm

LONDON: Index compiler MSCI will consult with investors about adding Saudi Arabia to its broader stock indices and could make a decision to include it as an emerging market in June 2015, an MSCI official said.
Saudi Arabia plans to open its stock market to direct investment by foreign financial institutions in the first half of next year, the market regulator said.
Sebastien Lieblich, executive director in the index research team at MSCI, said MSCI would wait for the changes to be implemented before consulting investors, with a decision as to whether to include it as emerging market unlikely to be made before June 2015.
“We need to be convinced that everything is at emerging market standards,” he said.
If Saudi Arabia only partially opens up to foreign investors, in the same way as the Chinese domestic “A” share market, it would likely be a standalone index, Lieblich added.

MSCI could add Saudi Arabia as emerging market next year | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.


Saudi Arabia to open $530 billion bourse to foreigners in early 2015

BY ANGUS MCDOWALL AND ANDREW TORCHIA

RIYADH/DUBAI Tue Jul 22, 2014 9:18am EDT


(Reuters) - Saudi Arabia plans to open its stock market, the Arab world's biggest, to direct investment by foreign financial institutions in the first half of next year, the market regulator said on Tuesday.

The opening of the Saudi market, capitalized at about $530 billion, is one of the most keenly awaited economic reforms in the largest oil exporting nation. The bourse would be one of the world's last major exchanges to begin welcoming foreign money.

"The market will be open to eligible foreign financial institutions to invest in listed shares during the first half of 2015, with God's permission," the Capital Market Authority said in a statement.

Saudi authorities want to open the stock market to create jobs, diversify the economy beyond oil and expose local firms to more market discipline. They have been preparing the reform for years and have completed most technical preparations.

But the government has delayed implementing the reform, apparently concerned about causing volatility in the market as well as the political sensitivity of allowing foreigners to build large stakes in top Saudi companies.

Currently, foreigners other than citizens of nearby Gulf states are limited to buying Saudi stocks via swaps involving international banks and through a small number of exchange-traded funds, which are expensive and inconvenient options.

Foreigners are at present believed to own no more than about 5 percent of the Saudi market, and to account for a smaller fraction of stock trading turnover.

Potential foreign interest in Saudi stocks is huge, because of the country's strong economy - the International Monetary Fund on Monday raised its forecast for Saudi growth this year to 4.6 percent - and the presence of some of the region's top blue-chip firms.

These include Saudi Basic Industries Corp (SABIC) 2010.SE, one of the world's largest petrochemicals groups, and National Commercial Bank IPO-NACO.SE, the kingdom's biggest lender, which plans an initial public offer of shares later this year that could be worth $4 billion to $5 billion.

"This is a massive move for Saudi and for the region," said Rami Sidani, head of Middle East investments at Schroders, a top European fund manager, which already has about $250 million invested in Saudi Arabia through indirect means.

He added that the country "will definitely attract massive inflows".

The Saudi market index .TASI jumped 2.8 percent to a six-year high on Tuesday in response to the news, bringing its gains so far this year to 17 percent. SABIC rocketed 6.9 percent.

Foreign investors are estimated to own about 15 percent of other, much smaller stock markets in the Gulf such as Dubai. If foreigners raise their ownership of Saudi Arabia to that level, it could mean an inflow of some $50 billion into the country.

REGULATIONS

In practice, Saudi authorities are expected to use a tight regulatory framework to ensure that inflows are slow. The CMA said it would publish next month draft regulations for the reform; there would then be a 90-day public consultation period.

Proposals circulated by Saudi authorities to the financial industry in the past have indicated Saudi Arabia will follow a model similar to China, Taiwan and some other major emergingmarkets in opening its bourse.

Qualified foreign investors, awarded licenses based on factors such as the amount of their assets under management, would be given quotas for their investment in the market, while there would be ceilings for foreign ownership of companies.

Under one set of proposals, foreign institutions would need to have at least $5 billion of assets under management globally to obtain licenses; each institution could own no more than 5 percent of a Saudi firm, and all foreigners combined could own no more than 20 percent.

A senior Saudi banker, declining to be named because of the sensitivity of the issue, said he expected only a "handful" - perhaps 10 - investment licenses to be awarded initially, and that authorities would then grant more licenses gradually as they monitored the impact on the market.

Most cash-rich Saudi companies do not need foreign money; the main benefit to them, authorities believe, is that they would gain activist foreign shareholders who could provide management guidance and help to internationalize the firms.

Because it is closed to direct foreign investment, the Saudi market has been excluded from major international equity indexes compiled by companies such as MSCI, even as Qatar and the United Arab Emirates were upgraded earlier this year.

Opening the Saudi bourse would be expected to lead eventually to its inclusion in such indexes, helping to make the Gulf a mainstream destination for international investors. Sidani estimated Saudi Arabia could ultimately account for around 3 to 5 percent of MSCI's emerging market index.

"This is a potential game changer for the region – a very important milestone that people have been waiting for," said Salah Shamma, co-head of regional equities at U.S. fund management giant Franklin Templeton.

MSCI said on Tuesday that it might make a decision as early as June 2015 on whether to add Saudi Arabia to its emerging market stock index. The pace of past index changes suggests actual inclusion might then take place in 2016.

Following regulatory reforms in the past couple of years, the Saudi market is one of the most stable and tightly regulated in the Middle East, fund managers say. It has avoided the wild swings seen in recent months in markets such as Dubai.

(Additional reporting by Nadia Saleem, David French an Yara Bayoumy in Dubai andCarolyn Cohn in London; Editing by William Maclean and Anna Willard)

Saudi Arabia to open $530 billion bourse to foreigners in early 2015| Reuters

@Arabian Legend @JUBA @Yzd Khalifa @Full Moon @Hadbani @BLACKEAGLE @ebray @Halimi @Wahhab2701 etc.

THIS IS NEWS OF GREAT AND POTENTIALLY HUGE SIGNIFICANCE!



Get in!:lol:
 
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Mobily’s revenues rise 6% in H1 2014
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Abdulaziz Alsaghyir
JEDDAH: ARAB NEWS

Published — Tuesday 22 July 2014

Last update 22 July 2014 2:44 am

Etihad Etisalat Co. (Mobily) has posted a 6 percent increase in its revenues as it announced the interim financial results for the period ending on June 30, 2014.
The revenues of the first six months totaled SR12.227 billion, compared to SR11.553 billion for the same period of last year.
The gross profit of the second quarter totaled SR3.088 billion compared to SR2.975 billion for the same period of last year, with an increase of 4 percent.
The gross profit margin of the second quarter has increased to 52 percent compared to 50 percent for the same period of last year.
This increase comes as a result of the improved revenue mix, said a Mobily press release.
The EBITDA margin for the second quarter registered 35 percent compared to 39 percent for the same period of last year, and 36 percent compared to the previous quarter.
The net profit for the second quarter is SR1.312 billion, compared to SR1.611 billion for the same period of last year, with a decrease of 19 percent, and compared to SR1.400 billion for the previous quarter with a decrease of 6 percent.
The reason of this decrease came as a result of writing off SR338.7 million of the net profit for the second quarter that had been recognized in net profit for the first quarter.
Earnings per share for the first six months reached SR3.52 in comparison to SR3.83 for the same period of last year.
Abdulaziz Alsaghyir, chairman of the board of directors, said that the company is currently considering the available options after the cessation of negotiations with Atheeb (GO) in respect of the acquisition, and that the company continues in its Transformation program which started in 2013.
Alsaghyir also said that the company has signed a contract with the Canadian export credit agency — Export Development Canada (EDC), to obtain a long term vendor financing for $200 million with no corporate guarantee.
The purpose of the Shariah-compliant financing is to acquire telecommunications equipment from Alcatel-Lucent to upgrade/enhance the network.
Alsaghyir said the board of directors, at its meeting convened on July 21, has decided to distribute preliminary dividends amounting to SR962.5 million for the second quarter of 2014, equivalent to SR1.25 per share, and representing 12.5 percent of the nominal value of the share.
Eligibility will be for the shareholders registered in the records of the company by the end of the trading day on July 24.
The payment of dividends will be effective from August 11 and shall be transferred it directly to the bank accounts linked to shareholders investment portfolios via Al-Rajhi Bank.
According to the Mobily press release, the increase of revenues in the first six months came as a result of increase in data revenues, both fixed and mobile, through the sales of distributors and operators through wholesale contracts and capital leases both medium to long term.
This has contributed to higher receivables for the company, and achieving non-recurring revenues.
The company shall continue to seek to increase sales of distributors and operators.
The company put in its strategy to accelerate the pace of spreading broadband services that carry high profit margins, by not relying totally on traditional methods in selling and providing these services, which will have a positive impact on the future revenues and profits of the company, especially with the growing demand for broadband services that have created new investment opportunities.
The company has innovated new products that are sold in wholesale featuring recurring revenues which fall under the medium-term contracts, while the long-term contracts do not carry recurring revenues, given the importance of accelerating the return on investment (payback period), and drawing the attention to the risks of wholesale sales contracts and capital leases.
The company has prepared a mitigation plan to limit these risks.
This comes in line with the aim of accelerating the deployment of broadband services in various regions of the Kingdom.
It should be noted that data revenues totaled 39 percent of the total revenue of the company for the first six months, compared to 27 percent for the same period of the previous year.
The number of homes covered through the fiber-optic network (FTTH) reached 850 thousand homes distributed over 18 cities in the Kingdom.
Fiber-optic sales increased by 89 percent for the first six months compared with the same period of the previous year.
The launch of interactive TV services accompanied with 2014 World Cup TV channels packages contributed to this growth. The revenues of business sector services including ICT services increased for the first six months compared with the same period of the previous year.
The company strategy focuses on information and communications technology (ICT) and on broadband, both fixed and mobile, and on creativity and innovation.
The company began its strategic transformation in order to become an integrated telecom company in the field of telecommunications and (ICT), and accordingly concluded strategic partnerships with international companies such as IBM, Accenture, Cisco, Virtue Stream and other companies to provide business solutions. In addition to accelerating the building of data centers where the company provides today advanced cloud services.


Savola CEO to resign for personal reasons

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Abdulraouf Mannaa
REUTERS

Published — Wednesday 23 July 2014

Last update 22 July 2014 11:14 pm

JEDDAH: Saudi Arabian food company Savola Group said its CEO Abdulraouf Mannaa is to step down for personal reasons.
Mannaa would be replaced by Abdullah Mohammed Noor Rehaimi, currently a board member at Savola, who will take up the role on January 1, 2015. Savola, a producer of cooking oil, sugar and other foodstuffs, added that Mannaa — who took up the CEO role in July 2010 — would remain in charge of the firm until the end of the year.

Savola CEO to resign for personal reasons | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

@Armstrong

So when are you going to invest?:D
 
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Saudi fertilizer industry set for diversification era

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Abdulwahab Al-Sadoun


RIYADH: ARAB NEWS

Published — Thursday 24 July 2014

Last update 24 July 2014 12:16 am

The Saudi fertilizer industry leads regional production and is set to usher in a period of strong growth and diversification, according to Abdulwahab Al-Sadoun, secretary general of the Gulf Petrochemicals & Chemicals Association (GPCA).
“Fertilizer production from the Kingdom accounts for 40 percent of total capacity in the GCC region,” said Al-Sadoun. “Saudi Arabia has built up this industry from the ground over the last four decades, transforming it into a multi-billion dollar sector that not only earns valuable revenues, but also employs thousands of people.”
With a capacity of 17.1 million tons, Saudi Arabia dominates the GCC fertilizer industry, according to the GPCA’s 2013 GCC Fertilizer Industry Indicators. In 2013, fertilizer capacity in the Gulf reached 42.7 million tons, a 4 percent increase from the previous year. The global fertilizer industry, meanwhile, grew by just 1.7 percent in the same period.
According to the report, nitrogen based fertilizers like ammonia and urea dominate production capacity. However, infrastructural developments in the Kingdom are geared toward product diversification.
Projects like the $7 billion Maaden’s Waad Al-Shamal city, expected to begin production at the end of 2016, will tap into Saudi Arabia’s large phosphate rock reserves to produce up to 2.3 million tons of diammonium phosphate (DAP) fertilizers.
As the region’s fertilizer industry is export oriented, with nearly half of all products destined for overseas markets, diversification will prove advantageous.
“The emergence of locally produced DAP fertilizers represents an opportunity to enter new markets in Asia for Saudi fertilizer producers, which have a high demand for this nutrient,” Al-Sadoun added.
The 2013 GCC Fertilizer Industry Indicators, a statistical report prepared by GPCA will be released at the GPCA’s Fertilizer Convention in Dubai from Sept. 16-18.
Now in its fifth edition, the annual conference will provide delegates with an in-depth supply and demand analysis from major markets around the globe, thought leadership from industry experts, and project case studies from the Gulf region and beyond.

Saudi fertilizer industry set for diversification era | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

@ebray
 
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