You are here

  • Home
  • Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

The Saudi Export and Import Bank signed an agreement with Saudi Basic Industries Corporation. (SPA)
The Saudi Export and Import Bank signed an agreement with Saudi Basic Industries Corporation. (SPA)
Short Url

https://arab.news/22zd2

Updated 17 January 2024
Arab News
Follow

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Saudi EXIM Bank and SABIC sign letter of credit insurance policy
Updated 17 January 2024
Arab News
Follow

 

RIYADH: The Saudi Export and Import Bank has signed an agreement to insure Saudi Basic Industries Corporation’s sales on a letter of credit basis across 40 countries against non-payment risks posed by the issuing banks, the bank said in a statement on Tuesday.

It is considered to be the largest policy ever issued in the Middle East and the first of its kind to be offered directly to exporters to insure unconfirmed LCs from issuing banks.

It also significantly amplifies the prospects for growth and penetration into new regional and international markets and enhances the competitiveness of Saudi petrochemical exports.

CEO of Saudi EXIM Bank Saad Al-Khalab, and Salah Al-Hareky, SABIC’s executive vice president of corporate finance, signed the agreement.

Al-Khalab said: “This milestone agreement with SABIC aligns with the bank’s ongoing commitment to bolster the Saudi non-oil economy and enhance its contribution to the gross domestic product.

“The bank focuses on encouraging companies to broaden their export operations and venture into new international markets.

“The letter of credit insurance policy is the newest addition to our product offerings provided to Saudi exporters, which was designed to enable SABIC (to) realize its vision of becoming a world leader in petrochemicals and achieve more stability of cover and pricing in very critical export markets with (a) high degree of geopolitical and economic challenges.”

SABIC’s CEO Abdulrahman Al-Fageeh said: “We expect the letter of credit insurance policy provided by the Saudi EXIM Bank to play a key role in driving our export expansions as it strengthens our ambitions toward realizing our strategic objectives and multiplying our investments, considering the growth in new global markets for our products.

“We are committed to contributing to the objectives of Saudi Vision 2030, which focuses on augmenting the share of non-oil products in the Kingdom’s gross domestic product and promoting the Made in Saudi initiative.”

The Saudi EXIM Bank plays a significant role in strengthening the Kingdom’s non-oil economy on the global stage and focuses on bridging credit gaps and mitigating the risks faced by exporters. This approach aligns with the Kingdom’s Vision 2030 objectives, which aim to elevate the share of non-oil exports in GDP.

Topics: Saudi Arabia Saudi Export-Import Bank Saudi Basic Industries Corporation (SABIC)

Related

Saudi commerce minister speaks of shift in trade focus at World Economic Forum 
Business & Economy
Saudi commerce minister speaks of shift in trade focus at World Economic Forum 
Saudi investment minister: Energy, stability key to future Gulf prosperity
Saudi Arabia
Saudi investment minister: Energy, stability key to future Gulf prosperity

Oil Updates — prices edge higher on hopes for more China stimulus 

Oil Updates — prices edge higher on hopes for more China stimulus 
Updated 26 December 2024
REUTERS 
Follow

Oil Updates — prices edge higher on hopes for more China stimulus 

Oil Updates — prices edge higher on hopes for more China stimulus 
Updated 26 December 2024
REUTERS 

TOKYO: Oil prices edged higher on Thursday in thin holiday trading, driven by hopes for additional fiscal stimulus in China, the world’s biggest oil importer, while an anticipated decline in US crude inventories also provided support, according to Reuters. 

Brent crude futures rose 22 cents, or 0.3 percent, to $73.80 a barrel by 07:50 a.m. Saudi time. US West Texas Intermediate crude was at $70.34 a barrel, up 24 cents, or 0.3 percent, from Tuesday’s pre-Christmas settlement. 

China plans to boost fiscal support for consumption next year by increasing pensions and medical insurance subsidies for residents and expanding trade-ins for consumer goods, according to a finance ministry announcement on Tuesday. 

Meanwhile, Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive a faltering economy. 

“Crude oil prices have risen this week, driven by news that Chinese authorities are implementing a record-breaking 3 trillion yuan fiscal stimulus to boost their struggling economy,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. 

“Additionally, a decrease in US crude oil inventories, which indicates healthy demand, has also supported prices.” 

Satoru Yoshida, a commodity analyst at Rakuten Securities, said expectations of increasing fossil fuel production and demand after US President-elect Donald Trump takes office next month are also bolstering oil prices. 

An extended Reuters poll showed on Tuesday that crude inventories are expected to have fallen by about 1.9 million barrels in the week to Dec. 20. Gasoline and distillate inventories are seen falling by 1.1 million barrels and 0.3 million barrels, respectively.  

US crude oil and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.  

The latest data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 9:00 p.m. Saudi time on Friday. 

On the supply side, Libya's National Oil Corp (NOC) said on Wednesday that the country's average crude production in 2024 exceeded its target of around 1.4 million barrels per day. 

Topics: Oil OPEC energy

Related

Oil Updates — prices rise in thin pre-Christmas trade
Business & Economy
Oil Updates — prices rise in thin pre-Christmas trade
Oil Updates — prices stable as data offsets surplus concerns
Business & Economy
Oil Updates — prices stable as data offsets surplus concerns

Closing Bell: Saudi main index slips to close at 11,892

Closing Bell: Saudi main index slips to close at 11,892
Updated 25 December 2024
REEM WALID 
Follow

Closing Bell: Saudi main index slips to close at 11,892

Closing Bell: Saudi main index slips to close at 11,892
  • Parallel market Nomu gained 86.66 points, or 0.28%, to close at 31,007.06
  • MSCI Tadawul Index lost 3.16 points, or 0.21%, to close at 1,493.74
Updated 25 December 2024
REEM WALID 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, losing 21.63 points, or 0.18 percent, to close at 11,892.32.

The total trading turnover of the benchmark index was SR2.79 billion ($746 million), as 132 of the stocks advanced and 86 retreated. 

The Kingdom’s parallel market Nomu gained 86.66 points, or 0.28 percent, to close at 31,007.06. This comes as 49 of the listed stocks advanced, while 29 retreated. 

The MSCI Tadawul Index lost 3.16 points, or 0.21 percent, to close at 1,493.74. 

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 8.33 percent to SR0.52. 

Other top performers included Red Sea International Co., whose share price rose 6.32 percent to SR60.60 and Saudi Industrial Development Co., whose share price surged 5.07 percent to SR30.05.

MBC Group Co. recorded the biggest drop, falling 3.31 percent to SR52.50.

Bawan Co. also saw its stock prices fall 3.05 percent to SR54.10.

Savola Group saw its stock prices drop 2.97 percent to SR35.90.

On the announcements front, Saudi Arabian Mining Co., also known as Ma’aden, has announced ‎acquiring a full stake of Mosaic Phosphate in Waad Al-Shamal Phosphate Co. 

According to a Tadawul statement, the financial impact of the acquisition will be reflected in the company’s consolidated financial statements for the year ending Dec.31.

Ma’aden ended the session at SR49.20, up 0.61 percent.

Kingdom Holding Co. has announced the acquisition of an additional stake in xAI, with a total investment of SR 1.5 billion, as part of xAI’s Series C funding round. 

A bourse filing revealed that the transaction comes after KHC’s previous investment of the same amount in xAI during its Series B funding round. 

The move falls in line with KHC’s strategic collaboration with Elon Musk, and also follows its strategic stake in X, formerly known as Twitter, held since 2015. xAI is an artificial intelligence firm established by Elon Musk and a team of top-notch engineers to build AI to further accelerate human scientific discovery as a whole.

KHC ended the session at SR9.35, up 0.88 percent.

Bank Al-Jazira has announced its intention to issue Additional Tier 1 Sukuk under its SR 5 billion Additional Tier 1 Capital Sukuk Issuance Program by way of private placement in Saudi Arabia. 

According to a Tadawul statement, the bank has mandated Al-Jazira Capital, Al-Rajhi Capital and HSBC Saudi Arabia as joint lead managers and dealers for the potential offer. The filing further revealed that the purpose of the offer is to bolster the capital base of the bank, thereby backing its financial and strategic needs.

Bank Al-Jazira ended the session at SR18.64, up 0.21 percent.

Methanol Chemicals Co. has announced the approval of the Ministry of Energy’s request to renew the allocation of the required feedstock to produce several specialized petrochemical products. 

A bourse filing revealed that this follows the company’s Industrial Plot Allocation Agreement with Jubail and Yanbu Industrial Cities Services Co. in the PlasChem Park in Jubail (2) to establish and operate a Choline Chloride and Methyl Diethanolamine Methane plant.

Methanol Chemicals Co. ended the session at SR18.70, down 0.32 percent.

View United Real Estate Development Co. has signed a memorandum of understanding with Watheeq Capital to establish real estate funds to enhance investment opportunities.

According to a Tadawul statement, it will be valid from the date of its signature for one year, and will not be automatically renewed except by a written agreement signed between the two parties.

View United Real Estate Development Co. ended the session at SR68.50, down 0.70 percent.

Topics: Saudi Arabia Closing Bell TASI Tadawul MSCI Tadawul Index NOMU Saudi stock market Saudi Stock Exchange (Tadawul) Tadawul All Share Index (TASI)

Related

Closing Bell: Saudi main index closes in red at 11,914
Business & Economy
Closing Bell: Saudi main index closes in red at 11,914
Closing Bell: Saudi main index closes in green, reaches 11,949 points
Business & Economy
Closing Bell: Saudi main index closes in green, reaches 11,949 points

MODON inks $453m in private sector deals to expand Saudi industrial cities

MODON inks $453m in private sector deals to expand Saudi industrial cities
Updated 25 December 2024
Mohammed Al-Kinani 
Follow

MODON inks $453m in private sector deals to expand Saudi industrial cities

MODON inks $453m in private sector deals to expand Saudi industrial cities
Updated 25 December 2024
Mohammed Al-Kinani 

JEDDAH: Saudi industrial cities are set for further growth as the sector's authority revealed it has signed 23 development contracts with the private sector, valued at over SR1.7 billion ($453 million). 

The agreements, announced by the Saudi Authority for Industrial Cities and Technology Zones, or MODON, encompass a wide range of projects aimed at boosting industrial capabilities.  

These include the expansion of industrial cities, the construction of ready-made factories, the enhancement of MODON’s safety and security systems, and initiatives aligned with the National Industry Strategy.  

Additionally, the projects will address water and irrigation needs, improve water treatment facilities, upgrade electricity services, and expand road networks. 

MODON’s latest contracts highlight the growing role of the private sector in supporting Saudi Arabia’s ambitious Vision 2030 goals, which emphasize economic diversification, local production, and the creation of an attractive environment for both domestic and foreign investment.  

The projects are expected to enhance the competitiveness of Saudi industrial cities, foster greater investment, and improve operational efficiency for businesses. 

The agreements will also contribute to regional development, improve environmental sustainability, and promote vegetation growth, MODON stated in a post on its X account. 

The development of these projects is in line with Saudi Arabia’s broader efforts to build a dynamic and innovative economy. 

This move follows a previous round of agreements in July, when MODON signed nine contracts valued at SR1 billion to enhance infrastructure and service facilities across various industrial hubs. Key initiatives from that round included the development of infrastructure in Makkah’s and Jeddah’s industrial cities and the installation of 132-kilovolt overhead power lines in Tabuk’s industrial city. 

Looking ahead, MODON plans further expansion with projects that will improve electrical services, such as the construction of 115-kV overhead power lines in Hafr Al-Batin’s industrial city. The authority is also focusing on enhancing infrastructure networks for the first and second phases of Dammam’s Third Industrial City. 

Since its establishment in 2001, MODON has overseen the development of 36 industrial cities and is responsible for managing both operational and under-construction industrial lands across the Kingdom.  

In the first quarter of 2024, MODON attracted SR3.4 billion in private sector investments, signed 142 new industrial contracts, and registered a total of 6,758 factories. 

As part of its commitment to sustainable growth, MODON also planted over 576,000 trees and finalized 335 logistics contracts, underscoring its broader environmental and economic development objectives.

Topics: MODON idustrial sector

Related

MODON signs contracts worth over $533m to establish industrial complexes in Makkah, Al-Kharj
Business & Economy
MODON signs contracts worth over $533m to establish industrial complexes in Makkah, Al-Kharj

2.25m freelancers in Saudi Arabia join national economy

2.25m freelancers in Saudi Arabia join national economy
Updated 25 December 2024
MOHAMMED AL-KINANI
Follow

2.25m freelancers in Saudi Arabia join national economy

2.25m freelancers in Saudi Arabia join national economy
  • The 25— 34 age group is particularly active in freelancing
  • 62% of freelancers hold bachelor’s degrees
Updated 25 December 2024
MOHAMMED AL-KINANI

JEDDAH: Freelancing is emerging as a key contributor to Saudi Arabia’s economy, with over 2.25 million individuals registered on the freelance platform by September.

This growth reflects the rising popularity of flexible work, supported by the Ministry of Human Resources and Social Development’s launch of the “Future Work” company in 2019 to enhance the freelancing ecosystem by promoting modern workstyles, including remote work and flexible-hour freelancing.

The company’s mission is to create more job opportunities, empower Saudi talent, and develop a labor market that complements traditional employment while aligning with global trends, according to the Saudi Press Agency.

Freelancers make a notable contribution to Saudi Arabia’s economy. In 2023, the sector contributed SR72.5 billion ($19 billion) to the gross domestic product, representing 2 percent of the Kingdom’s total output. This highlights its role in diversifying income sources and strengthening the national economy.

The initiative, along with other efforts, has contributed to reducing the Kingdom’s unemployment rates. Saudi Arabia has revised its unemployment target to 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions.

The progress was highlighted by Minister of Human Resources and Social Development Ahmed Al-Rajhi during a panel discussion at the Budget Forum 2024 in November, where he detailed the Kingdom’s strides in improving employment figures. Al-Rajhi said that the unemployment rate among Saudis was 12.8 percent in 2018, and it has recently dropped to 7.1 percent.

The Ministry of Human Resources and Social Development issues freelance certificates to individuals specializing in specific fields, enabling them to work independently in activities approved by the ministry through the official freelance portal.

A recent report from Future Work highlights the sector’s rapid development and its alignment with Vision 2030. The report also emphasizes the diverse nature of freelance activities, with trade and retail leading at 38 percent, followed by industry at 13 percent and business services at 11 percent. The diversity demonstrates the sector’s adaptability to meet various economic needs.

Freelancing accommodates individuals with different educational backgrounds. According to the report, 62 percent of freelancers hold bachelor’s degrees, while 31 percent have high school diplomas or less, and 7 percent possess higher degrees.

Technology plays a pivotal role in the sector’s growth, with digital platforms becoming indispensable for freelancers, especially in fields like technology, information, and finance. These tools enhance productivity and connectivity, fostering sustainability and success in freelance careers.

Geographically, the Riyadh region accounts for the largest share of freelancers at 27 percent, followed by Makkah at 22 percent, and the Eastern Province at 14 percent.

The 25— 34 age group is particularly active in freelancing, reflecting the younger generation’s growing interest in this flexible career path.

The report said that 3.2 million women have expressed interest in joining the freelance market, underscoring the effectiveness of initiatives aimed at enabling women to balance professional and personal commitments.

Government programs like Reef, the Social Development Bank, and the Human Resources Development Fund further support freelancers by fostering an environment conducive to their growth and success, SPA reported.

Topics: Saudi Arabia freelancers Saudi freelance workforce Saudi Ministry of Human Resources and Social Development (HRSD) Saudi employment

Related

Saudi Arabia leverages project management to achieve Vision 2030 milestones
Business & Economy
Saudi Arabia leverages project management to achieve Vision 2030 milestones
Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT graphic
Business & Economy
Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending

Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending
Updated 25 December 2024
Nour El-Shaeri  
Follow

Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending

Saudi Arabia’s food & beverage sales drive $3.14bn in consumer spending
  • Restaurants and cafes topped the list with SR1.69 billion in transactions: SAMA data
Updated 25 December 2024
Nour El-Shaeri  

RIYADH: Saudi Arabia’s consumer spending reached SR11.8 billion ($3.14 billion) in the week of Dec. 15 to Dec. 21, with the food and beverage sectors continuing to lead in sales, official data showed. 

Despite an overall decline of 8.1 percent from the previous week, key sectors, especially dining and food, showed consistent performance, according to data from the Saudi Central Bank, also known as SAMA.  

The restaurants and cafes sector topped the list with SR1.69 billion in transactions, despite a 13.9 percent weekly dip. Food and beverage spending followed closely, settling at SR1.69 billion as well, reflecting a 9 percent decrease. These categories, however, maintained their dominance in consumer expenditure. 

The overall decrease in consumer spending is attributed to the timing of salary disbursements, traditionally paid on the 27th of each month, which typically leads to lower spending in the preceding weeks.  

Additionally, the winter holiday season, during which many expatriates travel home, further influenced the dip in domestic spending. 

Other sectors saw more moderate drops. The value of clothing and footwear transactions fell by 5.2 percent to SR864.15 million, while construction and building materials recorded a small 0.9 percent decline, totaling SR355 million.  

The electronics and electric devices sector saw an 8.7 percent weekly decrease in value, while gas stations and health-related sales also experienced declines of 9.4 percent and 7.3 percent, respectively. 

Jewelry sales recorded a 14.4 percent drop in transaction volumes, with a slight 3.9 percent decrease in value. Miscellaneous goods and services saw a 9.1 percent reduction in sales, totaling SR1.4 billion. 

Regional breakdown  

Regionally, Riyadh remained the largest market with a POS value of SR4.2 billion, although this represented a 6 percent decrease compared to the previous week.  

Jeddah saw a 7.5 percent drop to SR1.6 billion, while Dammam recorded a slight 3.6 percent decline to SR617.5 million. 

Among smaller cities, Hail experienced the largest decrease, with spending down 14.8 percent to SR169.6 million, and a 12.2 percent reduction in transaction volumes. Makkah recorded a 4.4 percent decline in value, settling at SR502.8 million, while Tabuk saw a 12.8 percent decrease in transaction value to SR210.4 million. 

Despite the seasonal slowdown, the food and beverage sectors continue to drive the market, maintaining a steady pace as consumer behavior shifts with the winter season. 

Topics: SAMA point of sales

Related

Saudi Arabia point of sale spending reaches $14bn in April
Business & Economy
Saudi Arabia point of sale spending reaches $14bn in April
SAMA cuts benchmark interest rate to 5% in line with US Federal Reserve move 
Business & Economy
SAMA cuts benchmark interest rate to 5% in line with US Federal Reserve move 

Latest updates

Rural communities urged to flee east Australia bushfire
Rural communities urged to flee east Australia bushfire
Tears, prayers as Asia mourns tsunami dead 20 years on
Tears, prayers as Asia mourns tsunami dead 20 years on
Oil Updates — prices edge higher on hopes for more China stimulus 
Oil Updates — prices edge higher on hopes for more China stimulus 
South Korea opposition says it will vote to impeach acting President Han Duck-soo
South Korea opposition says it will vote to impeach acting President Han Duck-soo
Showtime: The best television of 2024  
Showtime: The best television of 2024  

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.