Closing Bell – TASI grows 40 points; ADES Holding begins retail subscription 

Closing Bell – TASI grows 40 points; ADES Holding begins retail subscription 
Some 93 stocks rose and 126 retreated on the stock market. Shutterstock.
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Updated 26 September 2023
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Closing Bell – TASI grows 40 points; ADES Holding begins retail subscription 

Closing Bell – TASI grows 40 points; ADES Holding begins retail subscription 

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded its trading on Tuesday at 10,918.24 points, rising 0.37 percent. 

Parallel market Nomu closed at 22,406.83, gaining 169.84 points, or 0.76 percent.   

MSCI Tadawul 30 Index edged up 2.83 points, or 0.2 percent, to 1,402.31.   

The primary index’s total turnover touched SR6.2 billion ($1.6 billion), as 93 stocks rose and 126 retreated. Conversely, Nomu recorded a trading turnover of SR86 million. 

Al Sagr Cooperative Insurance Co. was the topmost performer in TASI, soaring 7.86 percent to SR23.60.  

Additionally, Saudi Automotive Services Co. soared 7.77 percent to SR62.40. 

Another notable performer, Saudi Arabian Amiantit Co., jumped 6.27 percent to SR51.70.  

Abdulmohsen Alhokair Group for Tourism and Development and Aldrees Petroleum and Transport Services Co. climbed 5.56 percent and 5.27 percent to SR2.28 and SR139.80, respectively. 

On the flip side, Al-Baha Investment and Development Co. experienced the most significant drop, plunging 6.25 percent to SR0.15.  

Shares of Thimar Development Holding Co. and Saudi Real Estate Co. dipped 5.14 percent and 3.13 percent to SR26.75 and SR13.62, respectively. 

Sumou Real Estate Co. and First Milling Co. both slumped about 2.7 percent to finish at SR1.30 and SR2, respectively. 

On the announcement front, ADES Holding opened its doors for public subscription of 33.87 million shares, priced at SR13.50 each.   

This valuation pegged at a nominal value of SR1 per share was ascertained through a structured order book-building process. 

The subscription window, initiated by the company, will span three days, concluding on Sept. 28.   

This move follows the green light from the Financial Market Authority on June 21, granting the drilling services company permission to register and make available 338.72 million shares from its total capital pool. 


ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's

ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's
Updated 25 sec ago
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ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's

ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's
  • Growth attributed to ongoing decarbonization efforts in Islamic countries and guidance from the International Capital Market Association
  • GCC economies accounted for 82% of sustainable sukuk issuance in the first half of 2024

RIYADH: Global issuance of environmental, social, and governance sukuk surged 21 percent year-on-year in the first half of the year, reaching $6.8 billion, according to an analysis by Moody’s. 

The growth is attributed to ongoing decarbonization efforts in Islamic countries and guidance from the International Capital Market Association. 

Green sukuk, which are Shariah-compliant investments in renewable energy and environmental assets, have gained traction as markets shift toward sustainable financing. 

“Sustainable sukuk issuance is rising from a low base as such we expect issuance in 2024 to top the $10.6 billion that it logged in 2023 — itself a big jump from $6.3 billion in 2022 — driven by the growing push toward decarbonization, expanding policy efforts and robust investor demand,” said Abdulla Al-Hammadi, assistant vice president and analyst at Moody’s Ratings. 

Gulf Cooperation Council economies accounted for 82 percent of sustainable sukuk issuance in the first half of 2024, with Saudi Arabia and the UAE contributing 42 percent and 33 percent of the total, respectively. 

The report indicates that the growth of these sustainable Islamic bonds will accelerate amid global efforts to reduce carbon emissions. 

“As most countries with active sukuk markets, such as in the Middle East and Southeast Asia, have rolled out energy transition plans, with renewable energy targets, financing through sustainable sukuk will be a key lever for them to meet their decarbonization goals,” added Moody’s. 

While conventional sustainable bond issuance declined by 8 percent in the same period, sustainable sukuk are appealing to Islamic and conventional investors looking to implement sustainable investment strategies. 

“A key appeal is that the instrument (green sukuk) provides transparency in its use of proceeds. About 74 percent of sustainable sukuk have been issued in non-local currencies, indicating strong international demand. As such, we expect that growth in sustainable sukuk will accelerate, garnering a larger share of the sukuk market,” said Moody’s. 

In July, Fitch Ratings reported that ESG sukuk issuance in key Islamic finance markets — such as the GCC, Malaysia, Indonesia, Turkiye, and Pakistan — increased by 13 percent year on year, reaching $6.3 billion in the first half of 2024. 

Looking ahead, Moody’s expects the governments of Saudi Arabia and Oman to issue their first sustainable sukuk, following the introduction of sustainable finance frameworks. 

Additionally, more private companies are anticipated to enter the market for green Islamic bonds in the coming months, with established sukuk issuers likely considering sustainable instruments to attract a broader investor base. 


Closing Bell: Tasi gains 139 points to close at 12,268

Closing Bell: Tasi gains 139 points to close at 12,268
Updated 33 min 50 sec ago
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Closing Bell: Tasi gains 139 points to close at 12,268

Closing Bell: Tasi gains 139 points to close at 12,268

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 138.80 points, or 1.14 percent, to close at 12,268.42.

The total trading turnover of the benchmark index was SR7.47 billion ($1.99 billion), with 117 of the listed stocks advancing and 100 declining. 

The Kingdom’s parallel market, however, shed 62.60 points or 0.24 percent to close at 25,684.37. 

The MSCI Tadawul Index gained 22.93 points or 1.52 percent to 1,535.78. 

The best-performing stock on the main market was Red Sea International Co. The firm’s share price surged by 9.95 percent to SR68.50.

Other top performers were Saudi Fisheries Co. and ACWA Power Co., whose share prices soared by 9.85 percent and 6.57 percent, respectively. 

The worst performer of the day was Maharah Human Resources Co., as its share price slipped by 5.37 percent to SR7.22. 

In Nomu, the best performers were Mayar Holding Co. and Banan Real Estate Co., whose share prices increased by 9.71 percent and 9.26 percent, respectively. 

On the announcements front, Riyad Bank said it is planning to issue an additional dollar-denominated Tier 1 capital sukuk to improve the financial institution’s capital and utilize it for general banking purposes. 

In a Tadawul statement, Riyad Bank said that the issuance is expected to be through a special purpose vehicle and will be available for domestic and international investors. 

The bank has appointed HSBC Bank, Kamco Investment Co., Merrill Lynch International, and Mizuho International as joint lead managers and bookrunners for the issuance. 

Other joint lead managers and bookrunners are Morgan Stanley & Co., Riyad Capital, and SMBC Nikko Capital Markets, as well as Limited, Standard Chartered Bank, and Warba Bank. 

Al Moammar Information Systems Co. said it signed a letter of intent with Saudi Fransi Capital on behalf of Saudi Data Center Fund 1 to expand the data centers’ capacity by 64 megawatts. 

In a Tadawul statement, the company said that the capacity expansion of the data centers will have an estimated value of SR1.9 billion to SR2.5 billion. 

According to the statement, the letter of intent is valid for 90 days from the day of signing until both parties reach a final agreement. 


FII to host summits on Africa, women empowerment ahead of 8th edition

FII to host summits on Africa, women empowerment ahead of 8th edition
Updated 24 September 2024
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FII to host summits on Africa, women empowerment ahead of 8th edition

FII to host summits on Africa, women empowerment ahead of 8th edition

JEDDAH: Saudi Arabia’s Future Investment Initiative has announced that it will host two summits prior to its eighth edition, set to take place in Riyadh from Oct 29 to 31.

Both being held for the first time, one gathering will center on Africa, while the second, titled the “Horizon Summit,” occurring on Oct. 28, will focus on women empowerment and will be chaired by Princess Reema bint Bandar bin Sultan, the Saudi ambassador to the US.

Richard Attias, CEO and board member of the FII, said that the future of jobs and health care will also be in the spotlight at the event, which will be hosted at the King Abdulaziz International Conference Center, as per the Saudi Press Agency.

Under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” this edition of the forum will facilitate discussions on how investments can drive a thriving and sustainable future, pushing the boundaries of what is possible for humanity.

This aligns with FII’s mission to create a purposeful present and a promising future, as well as its vision to bring together the brightest minds and most promising solutions to serve humanity. 

Attias highlighted the significance of these summits during a recent media briefing in New York on the sidelines of the UN General Assembly, where he emphasized that the events are designed to foster dialogue and collaboration on critical issues affecting global investment and development.

In a statement to SPA, Attias said: “We invited all international media outlets to take a closer look and learn more about the prepared program, speakers, and initiatives. We also explained what FII will offer in its eighth edition in Riyadh, based on indicators collected through a global survey of people’s priorities around the world.”

He added that FII’s eighth conference, with about 450 registered international media outlets and more than 40 media networks as partners, is expected to witness engaging dialogues.

He also said that more than 520 speakers, including global CEOs, have confirmed attending the event.

Attias further said that, for the first time, the Future of Jobs Index and the Healthcare Index were introduced, all under the umbrella of the FII, aiming to support humanity in the fields of health, sustainable development, and education, as well as in artificial intelligence and robotics.


Saudi, US investor relations to flourish in mining, industrial sectors following official visit

Saudi, US investor relations to flourish in mining, industrial sectors following official visit
Updated 51 min 44 sec ago
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Saudi, US investor relations to flourish in mining, industrial sectors following official visit

Saudi, US investor relations to flourish in mining, industrial sectors following official visit
  • Minister of industry and mineral resources will visit New York, Nevada, and California
  • Bandar Alkhorayef also visited the New York Stock Exchange

RIYADH: A rise in US investments in Saudi Arabia is anticipated after the Kingdom’s minister of industry and mineral resources met with several business leaders and officials during his tour of the country. 

Throughout his US stay, from Sept. 23 - 28, the minister will visit New York, Nevada, and California. 

Bandar Alkhorayef and prominent US heads have commenced discussions on promising investment opportunities in Saudi Arabia’s mining and industrial sectors. 

The minister highlighted the growing influence of Vision 2030 on the Kingdom, making it an attractive investment environment with rich natural resources and vast human capital potential, Alkhorayef shared via an official post on the X platform. 

Alkhorayef also visited the New York Stock Exchange, the largest stock exchange in the world with a market value exceeding $28 trillion. 

“I reviewed during my visit to the New York Stock Exchange, NYSE, the vital global financial center, the latest advanced electronic systems that it uses to evaluate companies and various sectors, in addition to recognizing the best global practices followed in enhancing efficiency and raising competitiveness,” the minister said in a post on X. 

Vision 2030 aims to position Saudi Arabia as a global investment hub, focusing on diversifying the economy beyond oil. 

The mining sector aims to increase its contribution to the gross domestic product from $17 billion in 2015 to $64 billion by 2030, leveraging the country’s vast gold, phosphate, and bauxite reserves. 

The plan also targets 90,000 additional jobs and $150 billion in investments. In the industrial sector, Vision 2030 aims to localize 50 percent of military spending and increase the contribution of non-oil sectors to GDP by promoting industries like petrochemicals, automotive, and manufacturing to attract foreign and domestic investments. 

Alkhorayef is set to engage with industry ministers and leaders at a UN Industrial Development Organization event in New York, seeking support for the 21st UNIDO General Conference in Riyadh in 2025 and the Multilateral Industrial Policy Forum in October. 

The minister will also visit Columbia University and participate in MINExpo in Las Vegas, where he will meet with top mining companies to explore advanced technologies. A roundtable in Los Angeles with major US companies is also planned to discuss the National Industrial Strategy and incentives for foreign investors.

The minister will hold meetings with private sector leaders, visit advanced industrial companies like JetZero and SpaceX, and meet Saudi students in the US. 


Ajman’s exports to Saudi Arabia up 29%, latest figures show

Ajman’s exports to Saudi Arabia up 29%, latest figures show
Updated 24 September 2024
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Ajman’s exports to Saudi Arabia up 29%, latest figures show

Ajman’s exports to Saudi Arabia up 29%, latest figures show

RIYADH: Ajman’s exports to Saudi Arabia reached 859.8 million dirhams ($234 million) in 2023, marking a 29 percent year-on-year increase, according to newly released figures. 

A report from the emirates’s Department of Economic Development, in collaboration with the Ajman Chamber of Commerce and Industry, revealed that the Kingdom was the top destination for shipments, accounting for 14 percent of the total value of export certificates. 

The strong trade momentum continued into 2024, with exports to the Kingdom reaching 397.6 million dirhams in the first half of the year, reflecting significant developments in commercial relations that have enhanced economic partnerships and driven trade exchange between the two sides. 

This comes as trade volume between the UAE and Saudi Arabia reached $17.53 billion in the first half of 2024, reflecting a growth rate of 22.5 percent compared to the same period in 2023, according to data from the Kingdom’s General Authority for Statistics.

Salem Al-Suwaidi, director general of the Ajman Chamber of Commerce and Industry, said: “The shared history and unified visions have led Saudi Arabia and the UAE to spearhead economic developments, regional stability, and the launch of major developmental initiatives and projects, thus increasing foreign investment attraction.”  

As of September, the number of Saudi investors in Ajman reached 685 across various sectors, marking a 13 percent increase in the growth rate of investors in the first half of 2024 compared to the same period last year.

Abdullah Ahmed Al-Hamrani, director general of the Department of Economic Development in Ajman, noted a significant rise in new licenses issued to Saudi investors, which surged by 114 percent in the first half of 2024 compared to the same period last year.  

This reflects an increase in the volume and diversity of investments across various economic activities. 

He highlighted that Saudi investments are notably concentrated in the construction and contracting sector, along with hospitality and restaurants, general trade, retail trade, and real estate.  

Saudi investors commended the Ajman government for fostering an attractive investment environment through supportive legislative and regulatory frameworks, which contribute to business success, according to a press release.  

They also appreciated the incentives and facilities provided through the electronic services portal, which have facilitated their growth and success in various projects.