What's new

KSA Economy News & Discussions

i dont know why or if the project is halted i am sure it is just a matter of time until we see it started

Let us hope so 7abibi. The problem is the environment and sea life as the Red Sea is very rich when it comes to that as you already now. It is also unsure how it will impact the coral reefs in that region of the Gulf of Aqaba or the busy sea trade. You should know that 25% of the world's sea trade is going through the Suez Channel and thus the Red Sea too. Also I believe that they might as well connect Hijaz with "mainland" Egypt instead of Sinai while they are at it. The distances are not that big either way.

Wait a second. It is in fact much easier to make a bridge/causeway from Northern Hijaz into Sinai and the distance is not that short I see. It's actually 32 km (Strait of Tiran) which is quite a lot.

Saudi investors express desire to fund bridge between Egypt and Saudi Arabia - Daily News Egypt

I found a 3 year old article that says that Israel and Jordan might object to the project?

Crossing the Red Sea: Egypt Approves Massive Bridge to Saudi Arabia - SPIEGEL ONLINE
 
Let us hope so 7abibi. The problem is the environment and sea life as the Red Sea is very rich when it comes to that as you already now. It is also unsure how it will impact the coral reefs in that region of the Gulf of Aqaba or the busy sea trade. You should know that 25% of the world's sea trade is going through the Suez Channel and thus the Red Sea too. Also I believe that they might as well connect Hijaz with "mainland" Egypt instead of Sinai while they are at it. The distances are not that big either way.

Wait a second. It is in fact much easier to make a bridge/causeway from Northern Hijaz into Sinai and the distance is not that short I see. It's actually 32 km (Strait of Tiran) which is quite a lot.

Saudi investors express desire to fund bridge between Egypt and Saudi Arabia - Daily News Egypt

I found a 3 year old article that says that Israel and Jordan might object to the project?

Crossing the Red Sea: Egypt Approves Massive Bridge to Saudi Arabia - SPIEGEL ONLINE
jordan and isreal can object but in the end as long as we work inside our land we are free to do as we want
 
What's Saudi Arabia's GDP growth target for the 2014-2015 financial year?

Take a look a few pages back in this very thread.

Tadawul offers ‘fantastic opportunities for growth’

1408737876760483600.jpg

A Saudi trader monitors stock prices on computer screen.


JEDDAH: KHALIL HANWARE | ARAB NEWS STAFF

Published — Saturday 23 August 2014

Last update 23 August 2014 9:45 pm

Saudi Arabia is adopting a tried-and-tested approach in opening its markets for foreign ownership, economists and analysts said on Friday.
“I believe the foreign ownership rules were announced in a timely and steadfast manner, offering transparency and commitment to opening the market,” said John Sfakianakis, a Riyadh-based investment strategist.
He was commenting on draft rules unveiled by the Capital Market Authority on Thursday for opening the $580 billion market to direct investment by foreign institutions, including a 10 percent cap on foreign ownership of the market's value.
Sfakianakis added: “I don't believe these measures will be well-received by local and foreigners alike given that the Saudi market offers fantastic opportunities for upward growth.”
He said: “The economy is growing at more than 4 percent, earnings over the next few years could reach 15 percent-20 percent, and dividends could surpass 3.5 percent over the next year.”

Sfakianakis says he expects more than $45 billion to enter the market from foreign investors which is well within the $58 billion mark provided by the 10 percent cap.
“A lot of foreign smart money will want to enter the Saudi market given that other markets might be reaching their upper limits going forward,” said Sfakianakis. “There are a plenty of local growth stories that is reminiscent of some EM markets of the 1990s,” he pointed out.
Commenting on the proposals, Basil Al-Ghalayini, CEO of BMG Financial Group, said: “These rules will definitely filter through the serious financial players who are long term investors, as well as, allowing only credible names from major financial markets.” He added: “These rules will help preventing short term speculators causing the market unwanted volatility.”
Al-Ghalayini said: “Furthermore, considering the size of the Saudi market, being the biggest in the region, the trading limits listed in these rules are still realistic and within the investment allocation strategies of global emerging funds managers.” The capital market reforms are attracting massive foreign interest.
The Tadawul All-Share Index continued its surge on Thursday and closed at 10,734.76 points.
The index has surged 25.76 percent so far this year after closing at 8,535.60 points on Dec. 31, 2013.
Reacting to the draft rules, a regional analyst said: “This is a tried-and-tested approach applied by other countries in connection with opening their markets for foreign ownership. The preference given to sizable, experienced institutional investors makes sense from the overall market development perspective but is particularly important in terms of boosting the presence of institutions in a hitherto retail-investor-dominated market.”
He added: “In general, the experience of markets embracing a gradual approach to opening up has been positive and had a significant positive impact on market development.”

Tadawul offers ‘fantastic opportunities for growth’ | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
Flourishing Saudi Arabian economy driving Tadawul performance

Stock-exchange.jpg

JEDDAH: ARAB NEWS

Published — Saturday 30 August 2014

Last update 29 August 2014 10:23 pm


It is important to highlight that the surge in optimism fueling the current rise of Tadawul All-Share Index (TASI) is not based wholly on speculative gain or positive sentiment, it is also due to a flourishing Saudi economy, which is underpinned by strong economic fundamentals, according to Jadwa Investment.

The Saudi stock exchange’s trading activity is dominated by local retail investors, says Jadwa’s report titled ‘Opening the Tadawul up to foreign investors’.

The announcement in late July 2014 by the Council of Ministers that foreign investors would be allowed to invest directly in the Tadawul came as no surprise, it said.

The Saudi Arabian index is the region’s most diverse capital market due to its size and maturity, and has been gearing up to welcome foreign investors for some time now.

Although foreign investors have been able to access the Tadawul through indirect routes, via swaps and exchange-traded funds, allowing direct foreign ownership will be a key milestone for the development of Saudi Arabian capital markets and indeed the wider economy.

Jadwa Investment says it views the opening up of the Tadawul as an overall positive but we believe a cautious and considered path to reform is the best way forward, much like the Chinese example.

According to the draft proposals released by the Capital Markets Authority (CMA) any Qualified Foreign Investor (QFI) wanting to participate in the Saudi stock exchange will have to have at least $5 billion assets under management (AUM) (possibly reduced to $3 billion) and have been operational for a minimum of 5 years. Other limitations apply, including:

* Each QFI (including affiliates) can only hold a maximum of 5 percent of issued shares of any one listed company.

* All foreign investors (including resident and non-resident, swaps and QFI’s) have a combined ceiling of 49 percent ownership of issued shares, in any one listed company.

* QFI’s together can only own a maximum of 20 percent of issued shares of any one listed company.

* Swaps and QFI’s can only own up to a maximum of 10 percent of aggregate stock market value of all listed companies.

The opening and eventual inclusion of the Tadawul into MSCI raises the risks of over pricing of stocks in the short to medium term.

With the greater dominance of retail investors and their higher risk appetite, there is a strong possibility that the Tadawul could move beyond fair value levels.

With the Saudi stock exchange expected to be included into the MSCI Emerging Markets Index by 2017, a similar pattern of events could occur to what was seen in Qatar and the UAE.

Both countries stock markets rose before the inclusion of the respective indices, in early June 2014, into the MSCI Emerging Markets Index, and then dipped immediately after.

Qatar’s benchmark QE Index advanced to five year highs in early June 2014 and then dropped, whilst shares on the Dubai Financial Market General Index dropped by 22 percent by the end of June 2014.

According to the Jadwa report, there are already signs that the Tadawul All Share Index is moving toward being over heated, having risen over 10 percent since the announcement on July 21.
Furthermore, current price/earnings (PE) valuations are trending above the long term average, with PE at 20.4 in early August, although it still below previous peaks of 27.4, in mid-2006.

Flourishing Saudi economy driving Tadawul performance | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Thanks.

You are welcome.
 
SR1.5 trillion: KSA bank deposits hit all-time high


Charts.jpg

JEDDAH: ARAB NEWS

Published — Tuesday 2 September 2014

Last update 1 September 2014 10:58 pm

Total bank deposits in the Kingdom hit a new all-time high above SR1.5 trillion for the first time in July, says a report.
Bank deposits climbed by 1.7 percent in July to cross the SR1.5 trillion mark. This lifts the year-on-year growth rate to 14.5 percent, the fastest in the last 12 months, according to the latest Saudi chart book from Jadwa Investment.
The prospect of higher interest rates in the US has boosted the annual growth of time and savings deposits to its highest level since December 2008.
The increase in deposits in July reflects a steady rise in private sector deposits as well as a seasonal spike in public sector deposits, said the Jadwa chart book for September 2014.
It says that banks remain highly liquid, with deposits at the Saudi Arabian Monetary Agency (SAMA) beyond the statutory requirement rising to a four-month high of SR78.4 billion at end-July.
With claims on the public and private sectors slowing and deposit growth accelerating, bank excess reserves at SAMA hit a four-month high. This also pulled the loan-to-deposit ratio down to 79.8 percent, indicating that banks still have plenty of ability to further step up lending.
With deposits rising and loans slowing, the private sector loan-to-deposit ratio fell to 79.8 percent.
Banks have recorded all- time high monthly profits in five of the last seven months, including July, according to the report.
“This confirms our view that banks are on track to break last year’s record high profits of SR35.7 billion,” said the Jadwa researchers.
The report says that bank lending to the private sector rose by 0.5 percent in July, the slowest monthly increase since December last year, pulling the year-on-year rate down to 11.8 percent.
According to the chart book, there was a large fall in debt outstanding for less than a year and a jump in debt outstanding at longer maturities. In part, this could reflect the refinancing of short-term loans at longer-term maturities. In addition, long-term lending may have been boosted by demand for real estate loans.
There was a second consecutive fall in bank holding of SAMA bills in July, suggesting a moderation of concerns about domestic inflation.
The chart book stated that economic data for July was strong with the nonoil PMI expanding at the fastest rate since September 2012.
Consumer spending also remained robust, with cash withdrawals from ATMs hitting a new high. The overall nonoil Markit/HSBC PMI registered 60.1 in July, the fastest rate of expansion since September 2012, according to the report.
The value of cash withdrawals from ATMs was at an all-time high in July and 8.3 percent greater than July 2013.
Cement production and sales declined on the back of seasonal trends, but also due to changes in labor market, added the report.
Cement production and sales dipped further in July following regular seasonal trends. Year-to-July production and sales were 6.8 and 7.5 percent below the same period of last year, respectively.
The report said that year-on-year inflation inched down in July, continuing the flat trend in the previous three months, although this trend hides some sharp movements.
While the lack of external inflationary pressures pulled food prices down, inflation for most other components of the cost of living index rose.
The chart book said year-on-year inflation inched down to 2.6 percent in July from 2.7 percent in the previous three months. Whilst food price inflation slowed, in line with global trends, other domestically-driven sources of inflation are not abating.
According to the report, nonoil exports rebounded in July owing to greater production of petrochemicals and plastics. In contrast, imports fell for the second consecutive month in June, in both absolute and year-on-year terms. Data on letters of credit issued for imports suggests further declines are likely in the months ahead.
New letters of credit opened by the private sector at commercial banks point to further declines in imports over the coming months, said the report.
In July, Saudi production edged over 10m bpd for the first time, since September last year, on the back of rising seasonal domestic consumption. Latest available data shows Saudi crude exports in June dropped to their lowest level in three years as oil use in the power sector and in refinery processing increased.
The report added that the Tadawul All-Share Index (TASI) increased by 8.8 percent, month-on-month in August as the prospect of opening the stock continued to buoy investors’ confidence.
The favorable domestic macro-economic climate and recent positive economic data from the US added to the overall positive sentiment, helping push the TASI over 11,000 mark.
The TASI leaped above the 11,000 for first time since December 2007 with the largest month-on- month increase since February 2012 outperforming most major indices.
Average daily turnover jumped by 45.6 percent in August, the largest rise in more than two years, said the report. Banks and petchem sectors dominated daily turnover but turnover was more prominent among the smaller sectors, when considering market capitalization. Average daily turnover in August increased by 45.6 percent to SR9.9 billion.
In August, the TASI’s price-to-earnings (PE) valuations increased to 21.3, moving further away from the two year average of 16.5, although it still below previous peaks of 27.4 back in mid 2006. PE was higher than comparable indices, such as Dubai, but dividend yield was at the lower end, at 2.59.
In August, banks performed much better than other sectors as expected near term US interest rate rises fueled positive sentiment in the sector. Building and construction was boosted by developments in a major national projects, but seasonality negatively affected hotels.
Announcements of a date to begin work on eleven stadiums helped the building and construction sector gains.

SR1.5 trillion: KSA bank deposits hit all-time high | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
Last edited:
US delegation discusses SAGIA’s role in promoting Saudi investment opportunities

1409595949494144600.jpg

Prince Saud bin Khalid Al-Faisal, deputy governor for Investment Affairs of SAGIA, with the US delegation at the SAGIA headquarters in Riyadh.​


RIYADH: MD RASOOLDEEN | ARAB NEWS STAFF

Published — Tuesday 2 September 2014

Last update 1 September 2014 10:58 pm

Saudi Arabian Investment Authority’s (SAGIA) value proposition for investors and the changes that have been made over the years to the registration process for international firms were highlighted at a presentation held here before a US visiting delegation on Monday.
Prince Saud bin Khalid Al-Faisal, deputy governor for investment affairs, and Ghadah Al-Subaie, executive general manager of operations, received the guests on behalf of SAGIA on arrival.
The US delegation included Aleksander Vey, legislative director of US Rep. Chuck Fleichmann; Ansley Rhyne, representative of Mark Meadows of the House Committees of Foreign Affairs; Elaine Wilson, senior legislative assistant for Congressman Tom Cotton; and several other representatives from Congress.
The delegation was at the headquarters of SAGIA to discuss the authority’s role in promoting the Kingdom’s vast investment opportunities.
The purpose of the US visit was to support the business development goals of US companies with a view to establishing a firm platform for future businesses in the Kingdom.
The visiting team focused on encouraging US businesses to increase interest in various sectors such as health care, infrastructure, transportation, and information and communication technology (ICT) to further enhance economic and investment ties with the Kingdom.

During the briefing on SAGIA's promotional activities, the delegates were told about its priority sectors currently focusing on attracting value adding investments that enable job creation and contribute to the transfer of technology and knowledge.
Saudi Arabia is the 9th largest trading partner of the United States with bilateral trade of $ 74 billion in 2012 and has exhibited a 31 percent increase in the number of exports from the United States to the Kingdom in the 2011-2012 period.
The US is the largest trading partner for Saudi Arabia, being the first export partner to generate an export value to the Kingdom of SR208 billion, constituting 14.3 percent of total Saudi exports in 2012.

SAGIA is making a series of efforts to attract value-added investments into the Kingdom, which will eventually contribute to the national economic development. Necessary amendments have been made upon the approval of the board of directors of SAGIA to remove paragraph 3 of Article VIII to pave the way for investors to benefit from more incentives.
The new amendments will provide more benefits to investors while further improving the investment climate in the Kingdom. The new regulation will come into effect as soon as the amendments are published in the official government gazette Ummul Qura.
With excellent access to Saudi Arabia and other MENA markets, as well as the advanced and emerging economies of nearby Europe and Asia, market exposure for Saudi-based projects is not only vast but also highly diversified. Being one of the world’s Top 20 most competitive economies makes Saudi Arabia the perfect investment destination.


US delegation discusses SAGIA’s role in promoting Saudi investment opportunities | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
SAGIA plays effective role in boosting Saudi-French trade

1409670118220378300.jpg

INVESTMENT PITCH: Abdullatif Al-Othman, governor of Saudi Arabian General Investment Authority, addressing the 34th meeting of the Saudi-French Business Council in Paris.
RIYADH: MD RASOOLDEEN | ARAB NEWS STAFF

Published — Wednesday 3 September 2014

Last update 2 September 2014 11:04 pm

Saudi Arabia is one of the top countries in the region witnessing a “revolutionary era” in the advancement, transparency, and efficiency of its e-government services, said Saudi Arabian General Investment Authority (SAGIA) Gov. Abdullatif Al-Othman on Tuesday.
Al-Othman was addressing the 34th meeting of the Saudi-French Business Council held in Paris to coincide with the visit of Crown Prince Salman, deputy premier and minister of defense, to France.
“SAGIA is constantly working on the improvement of our value proposition to investors. The average transaction duration for new licenses at SAGIA is 16 days and 1 day for renewals — and through our fast track it is 5 days with only three required documents,” Al-Othman said.
“Moreover, the average time for industrial land handover ranges between one month to two months, and we are continually improving the visa process, which now avails business visitor visas within 48 hours. And yet we are still working together as governmental entities on utterly abolishing time and inefficiency as barriers for businesses,” he added.
Commending the services of the French Embassy in Riyadh, the Saudi Embassy in Paris, MEDF and Saudi-French Business Council, Al-Othman said they have been playing an effective role in advancing the mutual investments between the two countries. Therefore, he added that France counts as our 10th importer, and the 11th in our exports, and the first in investment in Europe third in investment internationally.
“This visit is even a more special one; it perfectly coincides with the official visit of our Crown Prince Salman who is not only honoring the invitation of President Francois Hollande, but also arrived carrying his keen interest to further advance the relationships between the two countries,” he added.
The Saudi economy enjoys a unique and a remarkable standing in both the regional and international scenes, for it has been witnessing its longest sustained growth and tangible development on all levels during the past years.

The Kingdom is globally recognized for its continuous success in implementing sound policies and regulations that led to its sustained economic growth as it is G20’s third fastest growing economy. Over the past decade, the Saudi economy saw a growth rate in the average of 6.5 percent annually.
Total investment is 21 percent of GDP, 52 percent of which is by the private sector. The average annual capital expenditure in the Kingdom is approximately $67 billion, while the Saudi GDP (gross domestic product), which tripled over a decade only, is $745 billion. This led to the Saudi economy being ranked as the 19th internationally according to World Bank, as well as to its improved standing in the international rankings.
“Our country is considered to be among the most robust economies offering unique investment opportunities for those who have the strategic insight and the long-term view in mind. Besides the fact that the Kingdom enjoys a prime location in the Middle East for it provides access to 300 million consumers, it has been witnessing a number of multi-billion projects in various fields that are aimed at rapidly developing the infrastructure,” he added.
“On an average, there is about $60-$70 billion of capital expenditure annually, and announced projects today are about $440 billion projects — something that is important to be taken into account when the topic is the development of Saudi Arabia,” Al-Othman said.
The Saudi government, he said, is currently encouraging a broader participation from all sectors toward its main goal; a sustainable economic development. The far-sighted leadership of the Kingdom is pursuing intensive reforms to position it as one of the world’s most competitive economies; certainly, this vision has paved the way for further economic diversification, and the expansion of an active private sector.

Only in a short period of time, the economic landscape of the Kingdom has seen a significant transformation that is ongoing; during the last ten years, the average rate of growth of the nonoil sector grew by an annual average of 7.8 percent that is around four times higher than the average recorded in the past two decades.
“The government and the private sector have both worked together, hand in hand, to make available many investment opportunities in different sectors. Saudi Arabia is, as a matter of fact, growing in all sectors; the classic energy and service sector, the downstream chemical and other sectors that are deemed of high significance in the Kingdom nowadays, such as health care and life science sector, information technology, transportation and logistics, as well as building materials and engineering and consulting markets. All are witnessing significant growth,” Al-Othman added.
Addressing the French businessmen, he said: “French investors are always welcome to grow and succeed in their second home, Saudi Arabia. France has always been a friend of Saudi Arabia, and we believe friendship is the bond that leads to better understanding that can only lead to better business. In Saudi Arabia, we have been traditionally open to look abroad for inspiration, trade, and collaboration; therefore, we are always aspiring to enter into new frontiers of joint cooperation with France.

SAGIA plays effective role in boosting Saudi-French trade | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

:yay:

@Gabriel92
 
Last edited:
Time to kickstart this thread again.

Kingdom’s tourism and hospitality sector to draw huge investments

28aff25bdae9ed04dc934542dc605ad2.jpg

RIYADH: ABDUL HANNAN TAGO

Published — Tuesday 7 October 2014

Last update 6 October 2014 11:41 pm

Forecasts indicate the possibility of a dramatic growth in investments worth over SR95 billion in the Saudi tourism sector, hotels and apartments during the next 10 years.
While Saudi nationals spend billions abroad during holidays, incoming foreign tourists, including pilgrims, contribute heavily to the growth of commercial business in the Kingdom.
Amid continuous improvement in the hospitality and related sectors in Saudi Arabia that also excelled in providing first class services to its guests in term of health services, security and some other relevant hospitality services the travel industry look very promising, according to a an economist.
He said that the volume of investments in the Saudi Tourism and Travel Market (STTM) during the current year stood at SR150 billion, of which SR50 billion will be generated from domestic tourism, and SR100 billion from inbound tourism including pilgrims.
Domestic tourism alone has seen remarkable growth recently, where volume of spending has surged from SR59 billion in 2010 to SR103 billion in 2014.
The sector plays the role of a catalyst for economic growth and is one of the most prominent sustainable investment opportunities.
Haj and Umrah are also two of the most important sources of revenue for the Kingdom’s economy.
The number of pilgrims since the start of umrah season this year until Ramadan has already reached seven million.
This rapid growth came as a result of world-class infrastructure, which has created the largest investment opportunities for growth in the services sector for pilgrims and business visitors.
The same source says that by the year 2025 the number of pilgrims is expected to reach 5.2 million while in 2013 it had already touched two million.
This increase depends on the growing infrastructure works of Jeddah airport, which is expected to reach 80 million people by 2035.
The ongoing expansion of the Grand Mosque toward the north-west and north-east will increase its capacity to 2.5 million people, while the expansion of the Prophet's Mosque in Al-Madinah will boost its capacity from 600,000 to 1.6 million people upon completion in 2040.

Kingdom’s tourism and hospitality sector to draw huge investments | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.



Saudi-French trade ties set for sharp growth

3c58a952860ae09eb3107d951b36c8b4.jpg

RIYADH: ABDUL HANNAN TAGO | ARAB NEWS STAFF

Published — Monday 6 October 2014

Last update 5 October 2014 10:54 pm

Samir Kabbani, chairman of the board at Irrigation and Energy Solutions Company (IES), predicts that the volume of cooperation between the business sectors of Saudi Arabia and France is likely to grow in the coming years.
His remarks follow the recent state visit of Crown Prince Salman, deputy premier and minister of defense to France, during which he addressed the high-profile meeting of the Saudi French Business Council (SFBC) in Paris.
Kabbani is also a member of the council.
According to Kabbani, the Crown Prince’s visit has given a new momentum to 300 business participants from both sides, representing various sectors.
Prince Salman encouraged the businessmen by promoting more cooperation between the two sides.
Kabbani also said that France is a leader in Europe in the field of food and agriculture. It is also the fifth wheat producer and the third largest exporter in the world.
It is the largest European state that produces 35 million tons of wheat in a year from which 50 percent is being exported.

Saudi Arabia imported French wheat this year for the first time, he said.
The country is also known for its bakery products worldwide. Its tradition of excellence goes back to hundreds of years.
He says France applies the latest methods in the management of farm land to grow agricultural crops which are famous for their high quality.
Various cooperation agreements were also finalized during the state visit.
IES, represented by its chairman Kabbani, signed a memorandum of understanding (MoU) with a French business group, which comprises 230 companies involved in the fields of of agriculture, food irrigation and fisheries.

Both sides are looking to enhance cooperation between the two sides and to take advantage of technical expertise, Kabbani said.
He was hopeful the measures would help boost the presence of Saudi dates and other agricultural products in the French market.

Saudi-French trade ties set for sharp growth | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
Saudi Arabian firms to boost Korean trade
RIYADH: RASHID HASSAN

Published — Sunday 12 October 2014

Last update 11 October 2014 10:26 pm

Seoul will host the next Saudi-South Korea business forum from Oct. 29 to 31, which aims to further enhance economic cooperation between the two countries.
Announcing this in Riyadh on Saturday, South Korean Ambassador Kim Jin-soo, said bilateral investment would top the agenda during the three-day long business forum in the South Korean capital.
He added that the high-profile business meet will be attended by Minister of Commerce and Industry Tawfiq Al-Rabiah, Minister of Economy and Planning Muhammad Al-Jasser, Saudi Arabian General Investment Authority (SAGIA) Gov. Abdullatif A. Al-Othman and Yoon Sang-Jick, minister of trade, industry and energy for South Korea, to discuss formidable collaborations in order to bolster bilateral ties.
He stated that 51 Saudi companies have confirmed their participation for the significant business forum, which seeks comprehensive cooperation between the Kingdom and South Korea. The final agenda of the forum, which is spread over nine sessions, is yet to be finalized. However, sources said, energy will be a key issue to be discussed comprehensively.
Notably Hashim Abdullah Yamani, president of King Abdullah City for Atomic and Renewable Energy (KACARE), will also participate in the forum, which is expected to have the huge presence of the Saudi-South Korean business community.
KACARE is a dream project aiming to build a sustainable future for the Kingdom by developing a substantial alternative energy capacity fully supported by world-class local industries.
Apart from the B2B sessions, the forum will host an accompanying exhibition during the same period, from Oct. 29 to 31, to exhibit the products of mutual interest as the forum aims at promoting closer cooperation between the two countries.
Saudi Arabia and South Korea have expanded the scope of cooperation across the sectors by carrying out joint investment projects in vital sectors, economy and planning, and the two friendly countries are now the fourth largest trade partners, with the volume of trade reaching $46.5 billion in 2013.
According to organizers, the forum is expected to change the direction of economic ties from reliance on trade to trade plus investment.

Saudi firms to boost Korean trade | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Man, I was not aware of such a big trade volume with South Korea. I must admit that. Pleasantly surprised.
 
Tadawul takes a sharp positive turn

JEDDAH: ARAB NEWS

Published — Tuesday 14 October 2014

Last update 13 October 2014 10:58 pm

Saudi Arabia’s benchmark stock index (TASI) rebounded on Monday and dug in at 10,377.94, recovering 2.29 percent from the biggest dip of Sunday.
The index performed in a high range of 271 points, showing a positive change of 232 points. Sectoral performance was tremendous, as all sectors closed in green and accumulated an aggregate of nearly 3,328 points.
Transport, Insurance and Energy sectors were major gainers, which marginally increased by 3.83 percent, 3.62 percent and 3.2 percent respectively.
There were 139 net advancing issues, a largely strong market breadth.
AXA Insurance and Aldrees Petroleum Co. showed the best performance among all Saudi stocks, moving up 9.66 percent and 9.47 percent respectively.
Alinma Bank remained prominent among most active stocks, gaining roughly four percent and liquidating over 34 million shares. The value of these shares total SR771.6 million, a relative market share of 9.8 percent.
United Cooperative Assurance Co. volume went 3.3 times high over its 50-day average, adding 7.77 percent for the session. The company share price climbed to a fresh two-year high before closing at SR31.9.
Market activity was ten percent low as compared to previous day. More than 237 million shares worth SR 7.9 billion changed hands on the Saudi stock market.
Furthermore, Saudi Electricity Co., Saudi British Bank and market leader SABIC (Saudi Basic Industries Corp.) remained at top among big players, surging by 4.19 percent, 3.71 percent and 2.15 percent respectively.
SABB volume increased more than 50 percent as compared to previous day.

Tadawul takes a sharp positive turn | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
Saudi Arabia’s ACWA Power shifts toward renewable energy

Acwa-Power.jpg

REUTERS

Published — Thursday 23 October 2014

Last update 22 October 2014 10:43 pm


ALKHOBAR: Saudi Arabia-based power and water project developer ACWA Power is seeking to secure or arranging finance for $15 billion worth of projects, nearly half of which are in renewable energy, its CEO said.
The company, which plans to list its shares on the Saudi stock market, has projects operating or under construction in countries including Saudi Arabia, Jordan, Oman, Turkey, Morocco and some African and southeast Asian states.
“This network of countries is starting to move toward renewables fast,” Paddy Padmanathan said in an interview at the Reuters Middle East Investment Summit.
“Morocco is clearly leading, while South Africa is embracing a huge program and is deploying it...Jordan is starting to employ renewables.”
ACWA Power’s plans illustrate a huge business opportunity emerging in the Middle East and North Africa: solar and wind power projects. Countries with big external deficits such as Morocco are pushing them to cut their energy import bills.
Meanwhile, some of the Gulf oil exporters are beginning to turn to them to meet rapidly rising domestic demand for electricity, since oil-fired power stations threaten to eat up a growing share of their oil available for export.
Padmanathan said ACWA Power’s bids under preparation or already submitted, plus projects which had been awarded but were still in the financing stage, totalled $15 billion. Of this, $7.4 billion were in renewable energy.
The company also has $20 billion worth of projects already operating while $4.5 billion are under construction.
In Saudi Arabia, ACWA Power is bidding for a 100 megawatt solar power plant in Makkah and has proposed the lowest electricity tariff, though an award has not yet been made, Padmanathan said.
In 2012 the kingdom, which is the world’s largest oil exporter, announced plans to diversify its energy mix by investing in renewable energy. Little progress has been made so far, but projects such as the Makkah plant may indicate momentum is building.
Roughly 40 percent of Saudi Arabia’s electricity could be provided economically using renewable energy, Padmanathan said.
“There will be renewable energy deployed, no question...I am confident that we will start to see plants starting to be built in 2015, maybe toward the end of 2015.”
He added that the government had decided in principle that no more new oil would be made available for power generation in Saudi Arabia.
Another Gulf country pushing renewables is Oman, which has much more limited oil reserves than its wealthy neighbors and is keen to conserve them. This month Oman announced plans to build what it described as the first major wind farm in the Gulf Cooperation Council, at a cost of $125 million.

GEOGRAPHY

ACWA Power has about 18 gigawatts of power capacity worldwide and produces 2.4 million cubic meters per day of desalinated water. It aims for 39 GW and 5 million cubic meters by 2017-2018.
Padmanathan said these targets could be achieved merely by operating in the company’s current markets.
ìIn terms of our future plans, in terms of geography we donít see any reason for us to step much beyond that...This geography will keep us very much occupied for the next three to five years, simply because our demand is growing across this geography at about 7 or 8 percent.”
The next independent power project in Saudi Arabia will be the Fadhili gas-fired power plant owned by Saudi Aramco and Saudi Electricity Co. Padmanathan said his company was waiting for a request for proposals, and would start working on a bid this year.
In Morocco, it recently proposed the lowest tariff to build the Noor II and Noor III projects, Padmanathan said. Noor II is a 200 MW concentrated solar power plant and Noor III is a 100 MW solar tower project.
The company is also preparing to bid for an 850 MW wind project in Morocco, which it says will be the largest in the world.
In Oman, it bid for a desalinated water project in Qurayyat, which is now under evaluation and expected to begin construction next year. It is preparing to bid with Japan’s Mitsui for Oman’s Salalah II power plant.
Outside the Middle East, ACWA is developing a 1,200 MW coal-fired power plant in Vietnam and looking to start bidding for projects in Indonesia in early 2015. In Mozambique, it is developing a $1 billion coal-fired power plant with a capacity of 300 MW.
ACWA has chosen Banque Saudi Fransi 1050.SE to arrange its flotation on the kingdom’s stock exchange. Padmanathan declined to say when the company aimed to list its shares; he said it currently had enough resources to finance its projects, but would look in the future to tap debt markets, including the Islamic bond market.
The company is owned by two Saudi government bodies — the Public Investment Fund’s Sanabil Direct Investment, and the Public Pension Agency — as well as eight Saudi conglomerates.

Saudi Arabia’s ACWA Power shifts toward renewable energy | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
Investment opportunities in Al-Qassim highlighted

1413994996150178000.jpg

Participants at the Al-Qassim industrial forum.

JEDDAH: ARAB NEWS

Published — Thursday 23 October 2014

Last update 22 October 2014 10:28 pm

The Gulf Organization for Industrial Consulting (GOIC) is taking part in the industrial investment forum in Al-Qassim.
The forum, being held with the support of Al-Qassim Gov. Prince Faisal bin Bandar, was organized by GOIC in collaboration with the Unaizah Province Chamber of Commerce and Industry, and MISC Group of Advisory Services and Development Projects.
The forum opened on Tuesday (Oct. 21) at King Fahd Cultural Center in Unaizah and concludes on Thursday (Oct. 23).
GOIC Secretary-General Abdulaziz bin Hamad Al-Ageel stated: “GOIC co-organized this forum as part of its efforts to support industrial development projects in member states, develop GCC databases, prepare several studies on industrial sectors, suggest investment opportunities for targeted industrial sectors and offer technical consulting services to the public and private sectors.”
He added: “During this forum, GOIC presented investment opportunities valued at SR813 million in the areas of pharmaceuticals, food and agriculture. These opportunities would provide employment for nearly 561 workers.”
Al-Ageel added: “According to the analytical studies carried out by GOIC, there are several promising opportunities in Al-Qassim, capable of boosting the region’s economic performance. These opportunities are based on the region’s abundant natural resources and agricultural crops and its geographic location close to the Kingdom and neighboring countries’ markets. Thus, there is a big potential to expand pharmaceutical and food industries in addition to setting up further recycling industries that serve the local community and protect the environment.”
The GOIC secretary general explained that GOIC has presented a working paper about the current status of industries in Saudi Arabia with emphasis on Al-Qassim region, in addition to the development and trends leading to industrial sectors’ progress. The paper included an analysis of Al-Qassim cities’ industrial facilities and their distribution according to industrial sectors and foreign investments. It also tackled the competitive advantage of the region’s industries and the challenges and difficulties that foreign investors are facing in that particular region.
Al-Ageel stated: “GOIC suggested 10 investment opportunities aiming at developing and diversifying industrial activities in Al-Qassim. The value of these opportunities is estimated at nearly SR813 million and they are to provide job opportunities for approximately 561 workers. These investment opportunities are in line with the general vision of the forum, hence promoting clean industries.
In the pharmaceutical sector, GOIC offered three investment opportunities that use advanced biotechnology to manufacture insulin and screening and diagnosis medicines. As to food industries, the organization offered three more investment opportunities for the production of SPC (Soy Protein Concentrates), date liquid sugar and frozen potato chips.”
Furthermore, GOIC suggested two investment opportunities in the area of recycling industries: the generation of electricity from household wastes and agricultural residues, notably palm trees and rubber recycling, especially car tires. A third investment opportunity, the production of structural insulated panels (SIPs) with reinforced cement boards, was also suggested.
The industrial investment opportunities forum in Al-Qassim was entitled "Toward clean industries." During this forum, GOIC suggested a number of industrial investment opportunities in the area of food, agricultural and pharmaceutical industries. This forum aims at organizing B2B meetings between technology suppliers and investors wishing to implement these opportunities. It also aims at setting B2B meetings between investors and consumers as a result of the coordination between GOIC, Unaizah Chamber of Commerce and Industry and MISC GROUP of Advisory Services and Development Projects. The ultimate objective of this forum is to provide a platform for dialogue between industrialists and decision-makers to reach applicable recommendations for establishing industries that attract Saudi labor force and contribute to the prosper and welfare of the Kingdom and the region of Al-Qassim in particular.

Investment opportunities in Al-Qassim highlighted | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 
Islamic finance grows faster than conventional banking


Mohammed Mahfoodh Al Ardhi


MUSCAT — “Islamic finance is growing at twice the rate of the traditional banking industry in its core markets, which include Malaysia, Indonesia, Turkey and the GCC countries. The industry currently boasts $1.6 trillion in banking system assets,” said Mohammed Mahfoodh Al Ardhi, Chairman of the National Bank of Oman.

He added: “The GCC countries have committed to actively strengthening their positions in the Islamic finance market, with Saudi Arabia currently in the lead. We, at the National Bank of Oman, have been doing significant work in the Islamic finance domain and achieved considerable success as part of the broader plans to diversify Oman’s economy. Bahrain and Dubai are also emerging as notable offshore centers.”

Al Ardhi’s comments were made during a speech and interactive session at London Business School, where he shared his expertise with the faculty, students and alumni.

Highlighting the practical implications of Islamic finance, current industry scenario, as well as opportunities, challenges and criticisms the sector faces, Al Ardhi drew out the distinctions between conventional and Islamic economic models.

“Islamic finance is based upon the fact that money is not a source of potential capital or a commodity in itself but rather a medium, a facilitator, for trade and investment. Islamic finance is consequently built around the principles of risk sharing and shared investment, outlawing speculative activity and behaviors while discouraging debt to ensure the sanctity of contractual undertakings,” he explained.

He elaborated that the Islamic finance system is emerging as the more prudent, non-risky and ethical alternative to its conventional counterpart.

Professor Sir Andrew Likierman, Dean, London Business School, said: "London Business School, through its Executive MBA in Dubai and its close links with leading companies in Oman, Qatar, Kuwait and Saudi Arabia is committed to working with organizations in partnership to ensure world class leadership and enhance the prosperity of the region. We are delighted that our links with the National Bank of Oman are so strong and appreciate Mr Al Ardhi coming to London to talk to our students here." — SG

Islamic finance grows faster than conventional banking | Economy | Saudi Gazette

Middle East key player in global ethylene production



Sheikh Ahmed bin Mohammed Al Khalifa (left), Finance Minister in Bahrain and Ziad Al-Labban, CEO of Sadara receive a citation

Last updated: Saturday, October 25, 2014 11:46 PM
RIYADH — Sadara Chemical Company (Sadara), now building the largest chemical complex in the world ever constructed in a single phase, recently headlined the Gulf region’s first forum focused on ethylene: the Ethylene Middle East Technology 2014 (EMET) Forum. The forum, held in Manama recently under the patronage of Sheikh Ahmed bin Mohammed Al Khalifa, Finance Minister and Minister in Charge of Oil and Gas Affairs in Bahrain, brought together more than 450 ethylene players from around the region and the world, providing an ideal platform for sharing knowledge, best practices and experience in one of the most growth-oriented industries in the region.

A number of Sadara experts participated as speakers at the forum, sharing their views on the industry and efforts to maintain its continued growth, as well as highlighting the progress Sadara has made in the construction of its facilities in Jubail. The speakers included: Ziad Al-Labban in his capacity both as CEO of Sadara and Chairman of the EMET 2014 Advisory Committee; David Bronikowski, Process Engineering Supervisor - Hydrocarbons and Energy; and Vishal Karate, Process Engineer, Mix Feed Cracker - Hydrocarbons and Energy.

Commenting on the event, Ziad said “the Middle East today accounts for almost 20 percent of global ethylene capacity compared to 12 percent a mere five years ago and is the world’s 3rd largest region for ethylene production. And it continues to grow. By capitalizing on the abundance of natural resources, cost effective feedstock pricing, strong regulatory and industrial infrastructure and close proximity to markets with growing demand for our products, we see plenty of opportunity to not only further develop the chemicals industry, but to specifically diversify Saudi Arabia’s role in it.”

Ziad engaged four panelists in discussing the future of the industry in topics ranging from specific technical aspects of equipment being used, to operational reliability and future market trends.

He said “the Middle East, and specifically the GCC region, has many unique attributes that combine to make it the perfect hub of the global petrochemical industry. This conference has provided the petrochemical industry players including producers, service providers and customers with the perfect opportunity to meet, learn and collaborate to create future value in the ethylene industry.”

Sadara is a joint venture between the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company with a total investment of about $20 billion. — SG

Middle East key player in global ethylene production | Economy | Saudi Gazette

Masdar first large-scale wind farm in the GCC set



Dr. Ahmad Belhoul (CEO, Masdar) and Eng Hamad bin Salim Al Maghdari (CEO of RAECO) during the signing ceremony, in the presence of Dr. Sultan Ahmed Al Jaber, UAE minister of state and chairman of Masdar) and Mohammed Abdullah Al Mahrouqi, chairman of RAECO.

Last updated: Saturday, October 25, 2014 11:48 PM
ABU DHABI — Masdar, Abu Dhabi’s renewable energy company, signed on Oct. 22 a joint development agreement with the Rural Areas Electricity Company (RAECO) to build the first large-scale wind farm in the Gulf Cooperation Council (GCC). The $125 million, 50-megawatt wind farm in the Sultanate of Oman will be constructed in the country’s Dhofar Governorate.

The project is estimated to generate enough clean electricity to power 16,000 homes and mitigate 110,000 tons of CO2 per year. The project will consist of up to 25 wind turbines and construction begins the final quarter of 2015.

The first-of-its-kind wind project is a result of strong bilateral ties between the United Arab Emirates (UAE) and Oman. The project also reflects the increasing trend by GCC nations to invest in renewables as a means to diversify the energy mix and address long-term resource security.

In fact, the accumulated opportunity for clean energy, including solar, wind and peaceful nuclear energy, is $100 billion over the next five years.

“The region is rapidly adopting renewable energy as a viable solution to meet growing electricity demands and to address long-term resource security,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar. “The Oman wind project is a prime example of how clean energy can deliver reliable power supplies and improve energy security, while also supporting a transition to a low-carbon future. The United Arab Emirates is a first mover.”

“The country is extending its global energy leadership through the deployment of wind and solar power domestically and internationally. Through Masdar, the UAE is proving that renewables are both competitive commercially and essential to diversifying the global energy mix,” he added.

The Dhofar wind-power project supports Oman’s broader strategy to meet the country’s growing energy demand, which is rising due to population and economic growth. Upon completion, wind energy will represent 7 percent of total installed power generation capacity in the Dhofar region.

“This project will deliver significant economic benefits,” said Eng Hamed al Magdheri, CEO of RAECO. “When completed, wind power will meet half of the Dhofar region’s energy needs during the winter. It will also reduce our reliance on traditional forms of energy, such as gas, which can be redirected toward more valuable industrial uses, while also extending the life of our hydrocarbon reserves.”

Masdar has a strong track record of delivering large-scale renewable energy projects in the region and across the globe. In the wind sector, Masdar delivered London Array – the largest offshore wind farm in the world – and is currently part of a consortium working to complete the Dudgeon wind farm, a 402-megawatt project in the United Kingdom. In the Middle East, Masdar is also working to deliver the 117-megawatt Tafila onshore wind farm in the Hashemite Kingdom of Jordan. — SG​


facts.jpg

Masdar first large-scale wind farm in the GCC set | Economy | Saudi Gazette

@Arabian Legend @JUBA @Bubblegum Crisis @Yzd Khalifa @Mosamania @BLACKEAGLE @Ahmed Jo @Rakan.SA @Full Moon etc.
 
Saudi-South Korea council seeks science cooperation

61758f75f8af174f322825387d7d1f1a.jpg

Saudi-South Korean officials pose for a group photo after concluding the three-day business forum in Seoul. (SPA)

SEOUL: ARAB NEWS

Published — Sunday 2 November 2014

Last update 2 November 2014 1:43 am

Members of the Saudi-South Korean Business Forum in Seoul plan to cooperate more closely on science and technology.
The council met here for a three-day event that began on Wednesday.
During the main session of the forum, which focused on joint investments, Governor of the Saudi Arabian General Investment Authority (SAGIA) Abdul Latif Al-Othman spoke about the transformation of the Kingdom over the past four decades into one of the most important global economies, and the largest in the region, Saudi Press Agency reported.
Al-Othman said the Kingdom wanted to consolidate its relations with partners in South Korea through investment. Saudi Arabia plans to diversify sources of income in the country, to encourage domestic and foreign investment.
The SAGIA governor said the Saudi economy has SR2 trillion worth of construction projects underway, and is spending SR400 billion a year on new ones.
In his address, Minister of Commerce and Industry Tawfiq Al-Rabiah had outlined how the Kingdom had developed its economy.
Other speakers at the forum included Korean Deputy Minister of Trade, Industry and Energy Moon Jae-do, head of King Abdullah City for Atomic and Renewable Energy Hashim Yamani, and Korean Senate Member Hi Kook Kim.

Saudi-South Korea council seeks science cooperation | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.


S. Korea seeks role in possible Saudi nuclear reactor project

b3a0c7cb0f9bf42451b1daf9cb6ebcc5.jpg



TRADE BOOST: Minister of Commerce and Industry Tawfiq Al-Rabiah and Minister of Economy and Planning Mohamed Al-Jasser hold talks with South Korean officials.
AGENCIES

Published — Saturday 1 November 2014

Last update 31 October 2014 11:21 pm

SEOUL: Mohamed Al-Jasser, minister of economy and planning, said South Korea will be one of the countries to be invited to the Kingdom if Saudi Arabia pursues a project to build nuclear reactors, according to South Korea’s presidential office.
Al-Jasser made the comment in a meeting with South Korean President Park Geun-hye, Park’s office said in a report published by Yonhap news agency.
Park called for support from Saudi Arabia so that South Korea can participate in a project to build nuclear reactors, citing South Korea’s technological prowess and an ongoing project in the UAE.
South Korea is building four nuclear reactors in the UAE under a $40 billion contract signed in 2009. The deal marked South Korea’s first and, so far, only export of its nuclear reactors.
Al-Jasser came to South Korea along with two other top economic officials to attend a joint business forum.
Park is set to meet with Crown Prince Salman, deputy premier and minister of defense, at the upcoming summit of the Group of 20 advanced economies in Brisbane, Australia, on Nov. 15-16.
Park said she is also planning a visit to the Kingdom next year.
During the talks, Park also called for expanding economic ties with Saudi Arabia, saying the two countries should seek exchanges in new areas such as health, ICT and renewable energy.
“Until now, our countries have cooperated closely in the energy and construction sectors, but I hope (the two countries) will seek ways to further expand cooperation in various areas, such as health and medical services, ICT, human resources development and especially in renewable energy, including nuclear power,” Park said, according to her office.
Park also expressed hope that the two countries would open a “new horizon” for bilateral cooperation through various exchanges.
The Saudi minister praised South Korea for its achievements, saying the country has set an example that many would like to follow.

S. Korea seeks role in possible Saudi nuclear reactor project | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.
 

Latest posts

Pakistan Affairs Latest Posts

Back
Top Bottom