China becomes top greenfield investor in Saudi Arabia with $16.8bn
Updated 04 April 2024
April 04, 2024 16:29
China becomes top greenfield investor in Saudi Arabia with $16.8bn
Updated 04 April 2024
Arab News
April 04, 2024 16:29
RIYADH: China has become the top greenfield foreign direct investor in Saudi Arabia with investments amounting to $16.8 billion in 2023, a 1,020 percent rise from the previous year.
According to Emirates NBD, China was followed by the US and the UAE, with greenfield FDI amounting to $2.7 billion and $2.67 billion, respectively.
Kuwait came in fourth with $937 million, while Hong Kong garnered the fifth spot at $796 million.
Greenfield FDI is a form of investment where a parent company starts a new venture in a foreign country by constructing operational facilities.
Saudi Arabia is targeting over $100 billion in FDI by 2030, as the Kingdom is steadily diversifying its economy by reducing its dependency on oil.
According to the report, $5.6 billion of the Chinese capital flowed into the automotive original equipment manufacturing sector, completely backed by a deal signed by Human Horizons and the Kingdom’s Ministry of Investment in June 2023 during the Arab-China business conference.
Under the deal, the Chinese company is setting up an automotive research, development, manufacturing, and sales facility in Saudi Arabia.
The Asian giant also invested $5.26 billion and 4.26 billion in the metals and semiconductor sectors, respectively.
The report revealed that the inflow of total greenfield FDI in Saudi Arabia also soared by 110 percent year-on-year to $28.78 billion.
The inflows in 2023 have surpassed the 2018 high of $17.57 billion but remained shy of the 2008 record of $34.26 billion.
Riyadh captured the largest share of the total greenfield FDI, receiving $8.18 billion, followed by Ras Al-Khair and Dammam, with $4.23 billion and $772 million, respectively.
The report highlighted that the tourism sector in the Kingdom received $227 million in investments.
A major acquisition in the tourism sector was completed by US-based Radisson Hospitality, which opened a 223-room hotel in Riyadh Convention and Exhibition Center at an estimated cost of $112 million.
Additionally, Liechtenstein-based Olayan Investment Co. Establishment has invested an estimated $112 million to build The Mondrian Riyadh Al-Malga Hotel and Residences. The 200-room inn is expected to open in 2026 and will be operated by UK-based hospitality developer and operator Ennismore.
stc pay obtains SAMA approval for transition to STC Bank
Updated 04 April 2024
April 04, 2024 16:17
stc pay obtains SAMA approval for transition to STC Bank
Updated 04 April 2024
Arab News
April 04, 2024 16:17
RIYADH: The Kingdom’s leading mobile wallet, stc pay, has received approval from the Saudi Central Bank to proceed with its transformation into STC Bank.
This beta launch will enable selected users to upgrade their accounts from an stc pay digital wallet into an STC Bank account. They will also be provided an International Bank Account Number and additional banking services, according to a statement.
With the upgrade, the subsidiary of stc Group will provide Shariah-compliant banking services and financial solutions while ensuring the utmost security and customer protection through cutting-edge financial technologies.
This move aligns with the Kingdom’s broader fintech strategy and the goal of establishing the country as a global hub for financial technology and innovation.
The digital wallet’s transition into STC Bank will be a significant addition to the Saudi banking sector.
The statement said that this beta launch is limited to preselected customers and is a preparation for a full public launch later this year.
According to official data released earlier this month, the share of retail consumer electronic payments in Saudi Arabia surged to 70 percent of total transactions in 2023, up from 62 percent in the previous year.
According to a statement released by the central bank, also known as SAMA, this increase is attributed to the substantial growth of transactions processed through national payment systems in 2023, totaling 10.8 billion deals compared to 8.7 billion in the previous year.
This aligns with the objectives of the Financial Sector Development Program, as retail consumer e-payments serve as a significant key performance indicator within the plan.
The program, one of the main initiatives of the Saudi Vision 2030, aims to create a diversified and efficient financial services sector to support the development of the national economy.
Closing Bell: TASI ends week in green, reaches 12,705 points
Updated 04 April 2024
April 04, 2024 16:01
Closing Bell: TASI ends week in green, reaches 12,705 points
Updated 04 April 2024
Arab News
April 04, 2024 16:01
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 83.20 points, or 0.66 percent, to close at 12,705.42.
The total trading turnover of the benchmark index was SR7.96 billion ($2.12 billion) as 126 stocks advanced, while 96 retreated.
Similarly, the MSCI Tadawul Index increased by 16.27 points, or 1.01 percent, to close at 1,631.03.
Nomu, the Kingdom’s parallel market, also gained 190.09 points, or 0.73 percent, to close at 26,252.77. This comes as 45 stocks advanced, while as many as 24 retreated.
The best-performing stock of the day was Saudi Real Estate Co., whose share price surged by 7.28 percent to SR22.70.
Other top performers include Alkhaleej Training and Education Co. and Arabian Contracting Services Co., whose share prices soared by 6.67 percent and 5.99 percent, to stand at SR32 and SR223 respectively.
National Company for Learning and Education and the National Company for Glass Industries also performed well.
The worst performer was Sinad Holding Co., whose share price dropped by 6.06 percent to SR12.10.
Other worst performers were Ades Holding Co. as well as Arabian Drilling Co., whose share prices dropped by 5.32 percent and 4.49 percent to stand at SR18.88 and SR161.80, respectively.
Saudi Electricity Co., announced in a statement on Tadawul, full redemption of its international sukuk maturing on April 8.
“These sukuk are listed on the Irish Stock Exchange (Euronext Dublin) and has been issued by SEC on 08-04-2014,” the statement said.
The company noted that the value of the redeemed sukuk amounted to $1.5 billion. The financial impact of this sukuk redemption will take effect in SEC financial statements for the second quarter of 2024.
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Saudi Aramco reviewing its production operational plans
Updated 04 April 2024
April 04, 2024 14:07
Saudi Aramco reviewing its production operational plans
Updated 04 April 2024
Arab News
April 04, 2024 14:07
RIYADH: Energy firm Saudi Aramco is potentially reviewing operational strategies as the oil giant engages in discussions with drilling companies to suspend its offshore processes for one year.
In a statement to Tadawul, Arabian Drilling, a leading national contractor in the Kingdom, announced ongoing discussions with Aramco regarding the pausing of contracts for three of its offshore rigs.
The company also indicated that the cessations could extend up to 12 months. It noted that the affected rigs and the timing of the suspensions have not been confirmed yet, promising to issue a market update once the discussions conclude.
Furthermore, ADES Holding Co., a global leader in oil and gas drilling services, disclosed that it has reached a mutual agreement with its client in Saudi Arabia to temporarily halt operations on five of its 33 offshore jack-ups operating in the Kingdom for a similar period.
Commenting on the update, Mohamed Farouk, CEO of ADES Holding, said: “We remain in active and healthy discussions with our major client in Saudi Arabia following the latest developments in the Saudi market as we continue to demonstrate agility with a client-centric approach — aligning with our client’s strategic needs and objectives — and while preserving the remaining backlog of the temporary suspended contracts.”
ADES also stated that one of the halted rigs will be utilized for the group’s newly acquired project in Thailand, scheduled to begin operations in the latter half of 2024. Additionally, a second installation is positioned for an upcoming opportunity in the region.
The temporary suspensions, ADES noted, will take effect seven days from the signing date of the mutually agreed break notice or upon completion of ongoing work and release of the drilling unit, whichever occurs later.
Although the drilling firm did not name the client in its release, it added in its statement: “The suspension mechanism offers enough flexibility for the suspended rigs to complete the firm and optional terms of new deployments before resuming work in Saudi Arabia post suspension. The original term of the suspended contracts will automatically be extended for a period equal to the suspension for each rig, preserving the remaining backlog for the respective contracts.”
On March 10, the energy and petrochemical giant announced its 2023 financial results, reporting a net income of $121.3 billion, marking the second-highest in its history. The company stated that the results reflect its continued commitment to creating value for its shareholders.
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Saudi Arabia witnessing unprecedented growth in asset management industry: CMA official
Updated 04 April 2024
April 04, 2024 13:49
Saudi Arabia witnessing unprecedented growth in asset management industry: CMA official
Updated 04 April 2024
Arab News
April 04, 2024 13:49
RIYADH: Asset management activity revenues of capital market institutions in Saudi Arabia reached SR4.2 billion ($1.12 billion) in 2023, representing a rise of 58.6 percent in four years.
According to Abdullah bin Ghannam, deputy for listed companies and investment products at Saudi Arabia’s Capital Market Authority, the Kingdom has been witnessing unprecedented growth in this industry.
He highlighted that the sector is one of the most important sources of institutional investments, as it contributes to providing diversified products and professional management of client resources, the Saudi Press Agency reported.
Bin Ghannam said the CMA is looking to develop the regulatory requirements for investors, and is working to establish new funds with more flexible structures.
He added: “To measure the performance of the strategic directions, the Authority will monitor the volume of managed assets, the number of participants in public and private investment funds, and the ratio of the volume of funds collected for alternative asset funds to the total public financing, to ensure that all development steps are moving in the right direction, and that we are proceeding to achieve our strategic objectives in a manner that is appropriate.”
The official went on to say: “This will ensure that all development steps are moving in the right direction and that we are moving to achieve our strategic goals in line with the objectives of the Kingdom’s Vision 2030.”
Bin Ghannam revealed that investment funds in the Kingdom, one of the prominent performance indicators of the asset management industry, reached 1,285 by the end of 2023, signifying a surge of 11.7 percent compared to 2019.
Similarly, the number of subscribers to investment pools jumped to a historic high of more than 1.17 million by the end of 2023, compared to 334,200 in 2019.
Bin Ghannam pointed out that the values of locally managed assets increased from SR500 billion in 2019 to SR871 billion in 2023, representing a rise of 74.2 percent.
According to the official, CMA has identified various initiatives that could catalyze the growth of the asset management industry in the Kingdom.
He added that CMA is dedicated to developing various components that will make Saudi Arabia an investment-friendly destination, which will increase the efficiency of the Kingdom’s capital market and enhance its competitiveness regionally and internationally.
In February, Mohammed El-Kuwaiz, chairman of CMA, said that Saudi Arabia is achieving success and achievements, particularly in the economic and financial sectors, in accordance with the economic diversification initiative Vision 2030.
Speaking at the third Saudi Capital Market Forum held in Riyadh, he recognized the Kingdom’s digital journey, with the fintech sector claiming the largest share of venture capital.
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