Closing Bell: Saudi main index slips to close at 12,063
Updated 17 January 2024
Arab News
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, losing 14.58 points, or 0.12 percent, to close at 12,063.
The total trading turnover of the benchmark index was SR10.67 billion ($2.84 billion) as 60 stocks advanced, while 160 retreated.
The Kingdom’s parallel market, Nomu, also dipped, losing 239.27 points, or 0.97 percent, to close at 24,515.86. This comes as 26 stocks advanced, while as much as 32 retreated.
In contrast, the MSCI Tadawul Index increased by 0.13 points, or 0.01 percent, to close at 1,568.23.
The best-performing stock of the day was MBC Group Co. The company’s share price surged 9.87 percent to SR60.10.
Riyadh Cables Group Co. and Bawan Co., also performed well, as their share prices soared by 6.65 percent and 5.34 percent, to stand at SR109 and SR48.30 respectively.
The worst performer was Rabigh Refining and Petrochemical Co., whose share price dropped by 4.3 percent to SR9.57.
Other poor performers were Wataniya Insurance Co. as well as Arabia Insurance Cooperative Co., whose share prices dropped by 4.1 percent and 3.8 percent to stand at SR20.12 and SR15.20, respectively.
Moreover, Red Sea International Co. and Saudi Co. for Hardware also fared badly.
On the announcements front, Qassim Cement Co. revealed its intention to make an offer to acquire all shares of Hail Cement Co. through a securities exchange offer.
According to a Tadawul statement, QCC has agreed to make an offer to HCC’s shareholders to acquire all shares of HCC in consideration for newly issued shares in QCC.
Furthermore, Banque Saudi Fransi announced its intention to issue US dollar-denominated certificates under its Trust Certificate Issuance Program.
In a statement on Tadawul, the bank said that the issuance is expected to be through a special purpose vehicle and by way of an offer to eligible investors in the Kingdom and internationally. Banque Saudi Fransi has mandated Citigroup Global Markets Ltd., Emirates NBD Bank P.J.S.C., HSBC Bank plc, as well as Merrill Lynch International, Mizuho International plc and Saudi Fransi Capital as joint lead managers.
Moreover, Rabigh Refining and Petrochemical Co., also known as Petro Rabigh, announced its accumulated losses reached 38.34 percent of its share capital of SR16,710 million based on the unaudited financial results for December 2023 that was closed on Jan. 16, 2024.
It explained that these losses were primarily due to the challenging market conditions adversely affecting the margins for both refined and petrochemical products, and the planned turnaround of its Phase II units starting from Dec. 1, 2022, to Jan. 23, 2023.
Closing Bell: Tasi gains 139 points to close at 12,268
Updated 7 sec ago
Nirmal Narayanan
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
Updated 24 September 2024
MOHAMMED AL-KINANI
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
Minister of industry and mineral resources will visit New York, Nevada, and California
Bandar Alkhorayef also visited the New York Stock Exchange
Updated 18 min 1 sec ago
NOUR EL-SHAERI
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.
HE Bandar AlKhorayef, Minister of #Industry_and_Mineral_Resources visited the New York Stock Exchange (NYSE), one of the largest and most important stock exchanges in the world, with a market value exceeding $30 trillion, in which initiates the official visit to the United States… pic.twitter.com/D0CbHQtg4w
“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
Updated 24 September 2024
REEM WALID
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.
MAGRABi, Rivoli Vision announce merger in shake-up for Middle East eyewear market
Updated 24 September 2024
Reina Takla Miguel Hadchity
RIYADH: The Middle East’s eyewear market is set to be reshaped by a merger between MAGRABi Retail Group and Rivoli Vision which will see a focus on innovation and customer experience.
According to Amin Magrabi, chairman of MAGRABi Retail Group, the deal will see store concepts integrated with digital platforms to offer a comprehensive range across luxury, premium, and mainstream segments.
MAGRABi will take over 89 Rivoli Vision stores across the UAE, Qatar, Oman, and Bahrain, expanding the firm’s footprint to seven countries and over 290 locations by the end of 2024.
A perfect fit for the future
Speaking to Arab News, Magrabi described the creation of the MAGRABi-Rivoli Enterprise as “a very exciting announcement for us.”
He added: “The industry is maturing, and as industries mature, scale becomes important. We have been in discussions for a while, looking for the perfect fit, and I truly believe that Rivoli Vision is a perfect fit for us in terms of the brand, the banner they bring, Rivoli EyeZone, the culture, the team, and the location.”
Magrabi highlighted that the synergy between the two companies is grounded in their shared vision for the future of the industry.
He underscored the significance of aligning in vision and culture, emphasizing that success hinges on a mutual understanding of the industry, a complementary approach, and a shared commitment to enhancing customer experience.
Ramesh Prabhakar, vice chairman and managing partner of Rivoli Group, said in a press release: “MAGRABi is the ideal partner to form this joint enterprise, positioning us as the top eyewear retailers in key geographies and economic centers of the Middle East.”
Magrabi also pointed out that both companies’ shareholders share a unified perspective on the future, making their collaboration with Rivoli Vision and MAGRABi Retail Group both effective and harmonious.
MAGRABi will have a presence in seven countries and over 290 locations by the end of 2024. Shutterstock
A future-ready investment strategy
The expansion is accompanied by a robust investment strategy aimed at enhancing the end-to-end customer experience.
“With the additional network and scale that comes with it, it obviously allows us to further invest and to increase our investments in enhancing the end-to-end customer experience, both offline and online,” Magrabi shared.
Yasser Taher, CEO of MAGRABi Retail Group, also shared his perspective on the merger’s financial and operational impact, emphasizing the anticipated growth and strategic advantages.
“The newly merged entity is expected to deliver double-digit revenue growth and high double-digit EBITDA (earnings before interest, taxes, depreciation, and amortization) growth, from identified synergies, during the period from 2025 – 2027,” Taher said.
He further elaborated on the operational strategies post-merger, saying: “We expect the integration timeline plan to be completed within a period of 15 months after closing. The synergy realization plan will overlap with the integration plan and should be completed over a period of 24 months.”
Completion of the transaction remains subject to satisfaction of commercial and regulatory conditions.
Taher also gave details about a “new headless online platform” which will see customers engage with the company on any platform at any time, from any place.
He went on: “They can click and collect from the store or get it delivered to their house. They can hold products in the store, book their eye tests, and do all this through the website or the app on their phone.”
MAGRABi Retail Group has already committed to substantial investments in digital transformation and store enhancements, with annual expenditures exceeding SR100 million ($26.6 million) over the past three years.
Magrabi expects these numbers to increase significantly in the coming years, reinforcing the company’s position as a leader in the region’s eyewear market.
“We will carry on making those investments, and they will obviously increase, not insignificantly above what we have been doing previously,” the chairman said.
He also discussed the strategic improvements expected in supply chain and inventory management due to the merger.
He said: “The scale of the new entity will enable higher investment into supply chain automation, including further investment in our manufacturing facilities, warehouse operations, our central glazing lab network, and last-mile delivery fulfillment.”
Magrabi added that the impact will be measured through a more efficient supply chain, faster lead time delivery customers, improved costs, and an optimized inventory value.
Amin Magrabi, chairman of MAGRABi Retail Group. Supplied
Strategic market leadership
The merger is also set to strengthen the Group’s strategic positioning across the Middle East.
Magrabi said: “Our three-year strategy plan from 2025 to 2027 is really to focus on how we can establish leadership across all seven countries we now operate in. We plan to carry on our leadership position in the region.”
The firm’s approach to market segmentation is clear.
“As this market matures, there will be segmentation in the market. From our perspective, we’ve segmented the market into four segments: luxury, premium, mainstream, and value. Our intention is to focus on luxury, premium, and mainstream,” Magrabi added.
He went on to say that these three segments cover about 60 percent of the population and about 80 percent of the market size.
“We intend to tackle these segments with multiple banners and customer propositions. For example, MAGRABi focuses on the luxury segment, the MAGRABi banner, and the retail chain, while Rivoli EyeZone is a premium banner,” the chairman said.
Taher highlighted the anticipated growth in digital sales, which is a key part of their strategy, saying: “We are expecting a 50 percent year-on-year increase in online sales, every year within the period from 2025 – 2027.”
An institutionalization journey
As MAGRABi Retail Group continues to grow, the company is also committed to institutionalizing its operations and governance.
Magrabi highlighted the importance of this journey, saying: “We behave and run the organization as if it’s a listed company. That is the key objective of shareholders and the board. We have a new board with six independent board directors, subcommittees, a new governance framework, and an upgraded enterprise-wide platform.”
He added: “We are ready to access public markets, whether they be equity or bond markets. However, the final decision as to when we will access those markets has not been taken so far by the shareholders and the board.”
Commitment to ESG and industry standards
The Group’s commitment to environmental, social, and governance principles is central to its long-term strategy.
The company has taken significant steps to embed these into its operations, with the recent addition of an ESG expert to its board.
“ESG is something that’s core and central to us,” Magrabi said. “We are finalizing our ESG framework and strategy for the next three years.”
One of the key areas of focus is raising industry standards, a commitment exemplified by the establishment of the MAGRABi Optical Academy in Saudi Arabia.
“We’ve partnered with universities for the optometry programs, supporting graduates and raising the standard of opticians and optometrists in Saudi Arabia. This is a program we’d like to bring across the Middle East and the region,” Magrabi stated.
Additionally, the company is focused on circular programs aimed at refurbishing products and maintaining responsible supply chains, alongside continued efforts to provide access to eye care and eyewear for those less fortunate.
“We will carry on investing in these areas, and this merger will empower and accelerate these initiatives,” he added.
A stronger, united future
The integration of Rivoli Vision into MAGRABi Retail Group brings together not just complementary networks and products, but also a shared culture and values.
“Over the last five years, they (Rivoli) have built an amazing organization, which is a great fit for us. They built a fantastic brand, a great network, and most importantly, they have a great team and management. We’re very excited to bring that management within our organization,” Magrabi said.
Looking ahead, MAGRABi Retail Group is optimistic about the journey ahead. The company’s CEO said the market is maturing, and the time is right for this transformation.
“We’re super happy that Rivoli Vision has decided to join us on this journey. This is the start, and I think others will want to join what we are doing,” Magrabi said.
He added: “This transformation is an industry-wide shift, and it’s not just customers calling for this; our developers, vendors, and insurance partners have all expressed a need for differentiated banners and propositions.”
MAGRABi Retail Group’s transformation is far from over, according to the chairman, who said: “This is only the beginning.”
He added: “As one of our values states: ‘We earn our wins, we share our wins, together we see our growth multiply.’ So, I invite our customers, vendors, and partners to join us. This is a very exciting time.”
