Saudi Arabia, Canada agree to re-exchange trade delegations
Updated 12 January 2024
Arab News
RIYADH: Saudi Arabia and Canada have agreed to re-exchange trade delegations after it was suspended for five years.
The Federation of Saudi Chambers of Commerce said it signed a memorandum of understanding with the Canadian side to form a joint Saudi-Canadian Business Council.
The move came amid Riyadh and Ottawa resumed full diplomatic ties last year.
Hassan Al-Huwaizi, president of Saudi Chambers of Commerce, said the setting up a joint council is a positive step and it will help elevate trade and business ties between the two countries.
Al-Huwaizi, on Thursday, also met with Jean-Philippe Linteau, Canada’s ambassador to Saudi Arabia, and discussed ways to improve economic relations and increase trade and investment volume between the two sides.
He further noted that the business council will provide a platform for businessmen in both countries to promote their activities and engage in partnerships.
It is also expected to facilitate continuous interaction between business leaders among the two countries, along with exchanging information about opportunities and markets.
Saudi Arabia was the biggest export market for Canada in the region in 2021. Canadian exports amounted to $1.65 billion at that time.
Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG
Updated 40 sec ago
Nour El-Shaeri
RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group.
The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility.
The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028.
These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028.
“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.
“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added.
Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.
While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry.
Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years.
The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028.
North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent.
In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments.
As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation.
Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success.
“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.
“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained.
“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added.
Saudi Arabia to develop local talent for container shipping industry
Supply Chain and Logistics Conference brought together leading figures from the maritime and logistics sectors
It explored the Kingdom’s opportunities as a global trade gateway
Updated 58 min 6 sec ago
NADIN HASSAN
RIYADH: Saudi Arabia must cultivate local talent in the container shipping industry to fully achieve its Vision 2030 ambitions and solidify its position as a global logistics hub, said a senior executive.
Speaking at a panel discussion during the sixth edition of the Supply Chain and Logistics Conference in Riyadh, Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime, highlighted the need for specialized expertise in the container sector.
“We have a strong focus on not just diversification, but also on Saudi talent. These are some of the things that we have had to hire experts from outside the Kingdom, but eventually, we hope to replace them with qualified young people from within Saudi Arabia,” Hestbaek said.
Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime. Screenshot
He continued: “If the day comes when I have to retire and I am replaced by a Saudi, that would make me really, really happy. So, I think talent is something we will be working on.”
Hestbaek also highlighted the crucial role of collaboration in developing the Kingdom’s maritime industry, saying, “You cannot pull this off alone. It’s clear you depend on collaboration.”
He added, “Whether it is partnering with Maersk, King Abdullah Port, or others, the better experts you bring, the better product you can offer.”
An exhibition that thrives and shines with its partners and pioneers under the theme 'Heritage Looking Towards the Future.'
A glimpse… pic.twitter.com/BIFugtk32Z
— مؤتمر سلاسل الإمداد Supply Chain Conference (@scmksa) December 16, 2024
The session brought together leading figures from the maritime and logistics sectors, who explored the Kingdom’s opportunities as a global trade gateway.
Jay New, the CEO of King Abdullah Port, emphasized Saudi Arabia’s unique geographical advantages and infrastructure and said “30 percent of all containers sail past the Red Sea every day.
“The expansion opportunities for King Abdullah Port northbound along the Red Sea are limitless. You could build a port as big as you would ever want globally,” New said.
Jay New, the CEO of King Abdullah Port. Screenshot
He added that King Abdullah Port was designed to accommodate future growth, with deep-water berths, linear quays, and cutting-edge automation.
“In 2021, the World Bank recognized King Abdullah Port as the world’s most efficient port,” New said.
He added, “King Abdullah Port will remain a consistently high-performing port for the future. This should last for decades, and this allows King Abdullah Port, on behalf of Saudi Arabia in many ways, to attract the main shipping lines into the port.”
He further said: “This provides Saudi Arabia, Saudi cargo owners, cargo exporters, and cargo importers with access to the biggest ships in the world that serve the main trade routes from Asia to Saudi Arabia, and from Europe and America to Saudi Arabia.”
Mohammad Shihab, managing director of Maersk Saudi Arabia. Screenshot
During the panel discussion, Mohammad Shihab, managing director of Maersk Saudi Arabia, stressed the dramatic improvements in customs clearance processes over the past decade.
“Nine years ago, clearing cargo could take more than a week — sometimes up to 14 days. Today, many shipments are cleared in hours, with an average of one day for a large percentage of imports,” he said.
Shihab added that these advancements make Saudi Arabia increasingly competitive as a transshipment hub.
“The focus on infrastructure development and digital solutions has significantly enhanced the Kingdom’s position on global trade routes. The ability to clear cargo quickly benefits importers, exporters, and the local economy,” Shihab said.
Turki Alkhorayef, general manager of Ports and Maritime Services at ELM. Screenshot
Technology was another key focus of the discussion. Turki Alkhorayef, general manager of Ports and Maritime Services at ELM, outlined how digital transformation is boosting efficiency in the logistics sector.
“We are leveraging artificial intelligence, the Internet of Things, and real-time tracking to provide live updates on vessel arrivals, cargo movements, and port activities,” Alkhorayef said.
The panel concluded with a consensus that investing in local talent, infrastructure, and advanced technology will be critical to achieving Vision 2030 goals.
By fostering collaboration and ensuring Saudi nationals are trained to lead the industry, the Kingdom is poised to emerge as a dominant player in the global maritime and logistics sectors.
JLL secures contract to support AlUla’s transformation into global tourism hub
JLL will provide project and cost management and strategic consulting
Deal to support planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings
Updated 55 min 47 sec ago
Miguel Hadchity
RIYADH: US-based real estate firm JLL has secured a program management contract with AlUla Development Co. to support the Saudi city’s transformation into a global tourism hub.
Under the agreement, JLL will provide project and cost management and strategic consulting to support the planning, development, and delivery of AlUla’s hospitality, residential, and retail offerings.
This will include feasibility studies, project planning, construction management, and final handover of completed projects, according to a press release.
The contract with the Public Investment Fund’s subsidiary was signed during a ceremony held at AlUla Development Co.’s office in Riyadh.
Speaking at the event, Maroun Deeb, JLL’s head of project and development services for Saudi Arabia and Bahrain, expressed his pride in contributing to AlUla’s ambitious vision.
“We are honored to have been chosen to support the AlUla Development Co. on such a significant project. This appointment reinforces our reputation as one of the leading project and program management consultancies in the region,” Deeb said.
He added: “By leveraging our expertise in large-scale projects, construction data insights, leading technology, and sustainable practices, we will ensure better client outcomes.”
Saud Al-Sulaimani, country head of Saudi Arabia at JLL, emphasized the company’s in-depth involvement in AlUla’s development journey.
He said: “JLL has been at the forefront of AlUla’s transformation from the very beginning, being one of the first companies to work on this iconic destination. Our deep-rooted expertise in supporting the Kingdom’s vision of economic diversification and sustainable growth positions us uniquely for this appointment.”
Al-Sulaimani added: “We are committed to delivering exceptional value and impactful results as we continue to build upon our legacy in Saudi Arabia and drive forward AlUla’s ambitious development agenda.”
AlUla, a region rich in history, is a cornerstone of Saudi Arabia’s Vision 2030 strategy to diversify the economy and establish the country as a global tourism hub. The area’s development focuses on balancing heritage preservation with innovative urban growth.
JLL’s appointment builds on the company’s significant portfolio in the Kingdom. According to the press release, the project and development services team is currently managing projects with a combined capital value of $30 billion.
The US firm’s services include overseeing development, project and program management, and cost consultancy, as well as engineering design, workplace fit-out, health and safety advisory, digital solutions, and sustainability consulting.
Closing Bell: Saudi main index ends in the green at 12,097
Parallel market Nomu dropped 28.63 points to close at 31,144.44
MSCI Tadawul Index rose 4.13 points, or 0.27%, to finish at 1,517.67
Updated 16 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Monday, gaining 37.20 points, or 0.31 percent, to close at 12,096.73.
The benchmark index saw a total trading turnover of SR4.74 billion ($1.26 billion), with 71 stocks advancing, while 154 declined.
Meanwhile, Nomu dropped 28.63 points to close at 31,144.44. The MSCI Tadawul Index also posted a modest gain, rising 4.13 points, or 0.27 percent, to finish at 1,517.67.
Saudi Industrial Development Co. led the main market, with its share price surging 4.27 percent to SR28.10. Other notable gainers included Riyadh Cables Group Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co., whose shares increased by 4.14 percent and 4.12 percent, closing at SR151 and SR70.80, respectively.
On the downside, Saudi Chemical Co. saw its share price dip by 3.59 percent to SR9.93.
Balsm Alofoq Medical Co., which debuted on the Nomu market on Monday, was the top performer on the parallel market, with its share price soaring 30 percent to SR78.
Additionally, Neft Alsharq Co. for Chemical Industries saw a notable increase, with its share price rising 13.27 percent to SR5.55.
On the announcements front, Saudi-based online beauty brand Nice One has set its final offer price at SR35 for its upcoming initial public offering, positioning the company for a market capitalization of over SR4 billion upon listing.
The company revealed that institutional book-building orders exceeded SR169 billion, reflecting a subscription coverage of 139.4 times.
The retail subscription period for the IPO is scheduled from Dec. 24 to 25. If all formalities are completed by the Capital Market Authority and Saudi Exchange, the offered shares will be listed on the main market.
Meanwhile, Obeikan Glass Co. announced the commencement of trial operations at its new aluminum casting facility, the Saudi Aluminum Casting Foundry, on Dec. 16. The commercial operations of the plant, located in Al-Madina Al-Munawwara Industrial City, are expected to begin in Q1 2025, with a focus on manufacturing and casting aluminum products.
Arcius Energy is 51% owned by BP and 49% owned by XRG
ADNOC announced last week the newly-created XRG’s board members
Updated 16 December 2024
Reuters
DUBAI: BP and Abu Dhabi National Oil Company’s international investments arm XRG said on Monday they have closed a deal for a new natural gas joint venture in Egypt, as ADNOC expands its efforts to grow abroad.
The joint venture, Arcius Energy, is 51 percent owned by BP and 49 percent owned by XRG. It will operate in Egypt initially.
Naser Saif Al-Yafei, an ADNOC veteran, was hired as Arcius’ chief executive. He most recently led strategy, sustainability and transformation at subsidiary ADNOC Gas. Katerina Papalexandri, vice president of gas and low carbon energy growth at BP, was appointed chief financial officer.
We’re building on more than 50 years’, strategic partnership with @ADNOCGroup and their new international investment company XRG, to launch Arcius Energy – a new platform for regional gas, starting in Egypt. https://t.co/vZVMfKP6Pg
“Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region,” BP Chief Executive Murray Auchincloss said in the statement, adding that Egypt was “a hub for new opportunities to build out a highly competitive gas portfolio in the region.”
Sultan Al-Jaber, XRG executive chairman and ADNOC CEO, said the JV “fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand.”
Arcius’ concessions in Egypt comprise a 10 percent interest in Shorouk, which contains the giant Zohr field operated by Eni and 100 percent of North Damietta, which contains the producing Atoll field operated by the Pharaonic Petroleum Company.
XRG is ADNOC's new global energy investment company, tasked with the mission to accelerate the transformation of energy systems and supercharge lower-carbon growth.
It also has exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
ADNOC announced last week that the newly-created XRG’s board members include Blackstone’s Jon Gray and former BP boss Bernard Looney, who was dismissed by BP’s board last December after the oil major said he had knowingly misled the board by failing to disclose past relationships.
The appointment of big names from the world of finance and energy to XRG’s board signals its grand ambitions, as ADNOC pursues its aggressive growth strategy.
XRG, which ADNOC said is valued at more than $80 billion, will focus on overseas investments in low-carbon energy, including gas, chemicals and renewables.
