UAE’s economy set to grow by 5.2% in 2025: central bank 

Updated 4 sec ago

Arab News

April 01, 2024 17:02

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded in green on Monday, gaining 21.45 points, or 0.17 percent, to close at 12,423.01. 

The total trading turnover of the benchmark index was SR7 billion ($1.8 billion) as 104 stocks advanced while 109 retreated.   

The Kingdom’s parallel market, Nomu, also grew by 151 points, or 0.58 percent, to close at 26,181.03. This comes as 30 stocks advanced while as many as 34 retreated. 

Conversely, the MSCI Tadawul Index dropped 4.92 points, or 0.31 percent, to close at 1,576.49. 

The best-performing stock of the day was Middle East Paper Co. The company’s share price surged 9.96 percent to SR44.7. 

Other top performers included National Co. for Learning and Education and ACWA Power Co., whose share prices soared by 9.89 percent and 7.03 percent to stand at SR144.40 and SR350, respectively. 

The worst performer was Middle East Healthcare Co., whose share price dropped by 10 percent to SR89.10.   

Other poor performers included Saudi Industrial Development Co. and Lumi Rental Co. 

On Nomu, Marble Design Co. was among the top performers with its stock growing by 8.11 percent to close at SR81.40. 

Shatirah House Restaurant Co. and Intelligent Oud Company for Trading followed suit, with their stocks growing by 6.95 percent and 6.77 percent to close at SR11.40 and SR51.50, respectively. 

On the announcement front, Dr. Soliman Abdul Kader Fakeeh Hospital Co. is gearing up for a significant move in the market.  

The Capital Market Authority has officially approved the organization’s application for the registration and offering of 49,800,000 shares, which represent 21.47 percent of the company’s share capital, according to a bourse filing.

This strategic development is marked with a nod from the CMA board, as indicated in their resolution dated March 27.  

Updated 26 min 59 sec ago

Arab News

April 01, 2024 15:17

RIYADH: Custom duty exemptions for a range of manufacturing products coming into Saudi Arabia are now in effect, as the Kingdom seeks to stimulate its industrial sector.

Raw materials, semi-processed goods and packaging materials, as well as machinery, equipment, and spare parts, are among the items which are now levy-free.

In March, the Ministry of Industry and Mineral Resources enacted a decision aimed at alleviating the financial strain and reducing costs for businesses holding valid import licenses.

This measure, effective April 1, will facilitate the importation of specific products, which will enhance the competitiveness of these firms and bolster profitability.

This initiative will additionally enable businesses to allocate more funds toward their operations and expand production capabilities, thereby fostering growth and development within the Kingdom’s industrial sector, as reported by the Saudi Press Agency.

The ministry clarified that the extension of customs exemption also encompasses fully manufactured products as well as materials and items essential for production processes, the SPA report said.

However, the ministry added that certain items manufactured domestically, either as final products or imported as necessary materials, supported by valid justifications for exemption from customs duties, could be considered for inclusion on the list of domestic industrial capacities. 

According to the source, expanding the scope of industrial customs exemption aligns with the Kingdom’s dedication to bolstering the sector and enhancing manufacturing proficiencies. 

Additionally, this initiative resonates with the objectives outlined in Saudi Vision 2030 and the National Industrial Strategy, reaffirming the ministry’s pivotal role in stimulating, empowering, and accelerating growth within the Kingdom. 

According to the Ministry of Industry and Mineral Resources, the number of industrial units in the Kingdom experienced a 10 percent year-on-year increase in 2023, reaching a total of 11,549.

In February, Jarrah Al-Jarrah, a ministry spokesman, disclosed that these new initiatives were established with an investment of SR1.54 trillion ($48.4 billion).

This rise in the number of factories corresponds with Saudi Arabia’s overarching plan to enhance industrialization, aiming to achieve a target of 36,000 plants by 2035. Moreover, in 2023, the number of new licenses issued amounted to 1,379, with investments totaling more than SR81 billion.

The sustained growth experienced by the Kingdom’s industrial sector is underscored by the cumulative manufacturing assets reaching $132 billion since the initiation of the economic diversification strategy, Vision 2030, in 2016.

Updated 01 April 2024

Arab News

April 01, 2024 13:52

RIYADH: UAE energy giant ADNOC Gas plans to invest $13 billion in domestic and international growth opportunities over the next five years, according to a statement. 

This will help the company increase its earnings before interest, taxes, depreciation, and amortization by 40 percent during this period. 

The company said that it made investments amounting to $4.9 billion in contracts last year, which is expected to drive the firm’s future growth, with a focus on decarbonization, digital transformation, and artificial intelligence-driven technological innovation. 

Sultan Ahmed Al-Jaber, the chairman of ADNOC Gas, said: “Between 2024 and 2029, we plan to invest over $13 billion in domestic and international growth opportunities, with our predictable margin business expected to increase our EBITDA by up to 40 percent by 2029.” 

He added that the company plans to increase its liquefied natural gas export volumes in the coming years. 

“Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028,” he added. 

ADNOC Gas delivered strong financial results in 2023, reporting revenues of $22.7 billion and a net income of $4.7 billion. 

The statement noted that the company’s shareholders have approved the board’s proposal to distribute a full-year 2023 dividend of $3.25 billion. 

Additionally, an inaugural interim cash dividend of $1.625 billion was paid in December 2023, with a further $1.625 billion scheduled for distribution in the second quarter of 2024. 

“ADNOC Gas recorded robust financial and operational results in 2023, has delivered on its dividend promise to shareholders, and is progressing several significant projects that will accelerate its future growth,” said Al-Jaber. 

The statement added that the company expects to increase dividends progressively by 5 percent annually over the next four years, underscoring the strength and visibility of its future revenues. 

“We aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.

In January, a report released by the International Energy Agency said that global fuel demand is expected to increase by 2.5 percent year-on-year in 2024.

Updated 01 April 2024

ARAB NEWS 

April 01, 2024 14:15

RIYADH: Saudi Exchange has welcomed its 400th listing across all securities, underlining the growing prominence of the bourse in the capital market. 

As of March 27, the exchange has 216 securities listed on the Tadawul All Share Index, with the parallel market Nomu featuring 83 listings. 

Additionally, there are 71 sukuk and bonds, followed by 19 real estate investment trusts, nine exchange-traded funds, and two closed-end funds. 

In a press statement, Tadawul highlighted that this achievement underscores the exchange’s pivotal role in bolstering the Kingdom’s economy, supported by strong international investor interest. 

Nasser Al-Ajaji, chief of listing at Saudi Exchange, said: “The 400th listed security on the Saudi Exchange marks a significant milestone and is a clear testament to the Kingdom’s dynamic capital market and its growing appeal to investors globally.”   

He said that Tadawul has quickly grown to become one of the top ten largest exchanges in the world and the largest in the Middle East and North Africa region since its establishment 16 years ago. 

Al-Ajaji added: “These achievements are more than just a number; they are symbolic of the economic diversity and growth spurred by Saudi Arabia’s Vision 2030, the Financial Sector Development Program, and the support of the CMA (Capital Market Authority) to accelerate the IPO (initial public offering) pipeline. All of this reflects the potential we are poised to realize.”  

According to the statement, Tadawul consistently ranks in the top 10 exchanges globally for IPO proceeds.  

Moreover, it accounted for over 70 percent of IPOs in the Gulf Cooperation Council region in 2023, with 35 out of the 46 offerings happening in the Kingdom.  

Last year, Saudi Arabia’s parallel market Nomu witnessed 27 IPOs in 2023, while TASI saw 8 deals.  

“With a substantial SR11.9 billion raised through IPOs on the main market in 2023, the Saudi Exchange has firmly established itself as a significant contributor to the global IPO landscape, a key driver of its continued growth in scope and scale,” said Tadawul.  

It added: “In 2023, furthermore, the Tadawul All Share Index grew by 14.2 percent, outpacing the 9.8 percent growth of the benchmark MSCI Emerging Market Index.” 

Updated 01 April 2024

Arab News

April 01, 2024 14:03

RIYADH: Saudi Arabia’s Riyadh Air is set to build a data analytics platform and develop artificial intelligence solutions, thanks to a strategic partnership with global consultancy firm Artefact.

By implementing these new instruments, the airline can achieve hyper-personalization and enhance its guest experience and service using intelligent channels.

Furthermore, it can optimize flight and ground operations through real-time data insights and predictions.

This collaboration aims to revolutionize the Kingdom’s aviation industry through AI applications.

“This partnership with Artefact builds upon our recent collaborations with leaders in the aviation industry. Through AI integration, we aim to redefine travel standards, offering personalized, seamless digital-first experience to our guests ahead of our maiden flight in 2025,” Abe Dev, vice president of Digital and Innovation at Riyadh Air, said.

Commenting on the partnership, CEO and Managing Partner of Artefact Middle East and North Africa, Rahul Arya, said: “Our partnership with Riyadh Air marks a significant milestone in our commitment to pioneering AI solutions tailored to the unique needs of the aviation industry.”

He added: “By combining Riyadh Air’s forward-thinking approach with Artefact’s expertise in data and AI solutions, we’re poised to set new standards for innovation in the airline sector.”

Scheduled to embark on its inaugural flight in 2025, Riyadh Air is positioned to connect the Kingdom to over 100 destinations worldwide.

This initiative supports the ambitions of both the National Aviation Strategy and National Tourism Strategy, which aim to bring 330 million annual visitors to the Kingdom by 2030.

In February, Riyadh Air signed an agreement with Texas-based Sabre Corp. to enhance the airline’s operational efficiency.

Under this deal, the software and technology provider will help the carrier drive incremental revenue gains through end-to-end network planning and optimization solutions.

The airline has chosen several of Sabre’s software solutions, including schedule manager, slot manager, and profit manager, as well as market intelligence, according to a press statement.

Sabre’s schedule manager will help Riyadh Air organize the development process from planning to distribution, thereby increasing revenue potential.

The slot manager is a suite that efficiently handles an airline’s critical slot portfolio with improved asset utilization.

Similarly, the profit manager will help to accurately forecast demand and profitability with an average increase of up to 2 percent in revenues.

It is expected to empower Riyadh Air to design enhanced network plans and create an optimal hub structure.