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Transport investments to fuel UAE construction market annual growth of 3%: GlobalData

Transport investments to fuel UAE construction market annual growth of 3%: GlobalData
Residential building was the dominant segment in the UAE’s construction market in 2023. Shutterstock
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Updated 01 October 2024
Arab News
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Transport investments to fuel UAE construction market annual growth of 3%: GlobalData

Transport investments to fuel UAE construction market annual growth of 3%: GlobalData
Updated 01 October 2024
Arab News
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RIYADH: The UAE’s construction market is projected to grow by an average of 3 percent a year until 2028, driven by transport and renewable energy investments, according to GlobalData.

The Emirates News Agency cited a recent report from the London-based data analytics firm, which forecasts a steady development trajectory for the market — valued at $94 billion in 2023.

“The growth is attributed to the increase in investments in transport and renewable energy infrastructure, with improvements in the electric vehicle market, according to the report,” WAM added.

The report highlighted the building of residential developments as the dominant segment in the UAE’s construction market for the previous year. 

It also underscored the continued momentum in the real estate sector, with expectations of sustained progress throughout 2024. 

This growth is anticipated to be fueled by initiating high-quality infrastructure projects and substantial investments from governmental and private entities.

The UAE played a significant role in the Middle East and North Africa construction market in the first half of 2023, with $23 billion in awarded projects, according to global property consultant JLL.

Saudi Arabia then took the lead in the MENA building sector, accounting for 67 percent of the total value in the first half of 2023, as revealed in JLL’s construction market intelligence report.

In the study, the firm noted that the region awarded undertakings worth $101 billion in the first six months of the year, with Saudi Arabia contributing around $44 billion. 

The analysis highlighted that “the combined estimated value of the project pipeline in the MENA region exceeded $3 trillion, with Egypt, KSA, and the UAE accounting for over 60 percent of this value.”

The Kingdom held the largest share, approximately 35 percent, with an estimated value of $1.3 trillion, while Egypt and the UAE each have an estimated value of $500 billion.

Regarding tender price inflation, the UAE is forecasted to experience a 3 percent annual increase due to market factors linked to commodity and construction material cost fluctuations.

The report noted that the UAE’s tender price inflation is anticipated to stabilize at approximately 2 percent in 2024.

Topics: UAE construction globaldata

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Oil Updates — crude rises on expanding Chinese factory activity, but set to end year lower 

Oil Updates — crude rises on expanding Chinese factory activity, but set to end year lower 
Updated 34 sec ago
REUTERS  
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Oil Updates — crude rises on expanding Chinese factory activity, but set to end year lower 

Oil Updates — crude rises on expanding Chinese factory activity, but set to end year lower 
Updated 34 sec ago
REUTERS  

SINGAPORE: Oil prices rose on Tuesday after data showed China’s manufacturing activity expanded in December, but they are on track to end lower for a second consecutive year due to demand concerns in top consuming countries, according to Reuters. 

Brent crude futures rose 60 cents, or 0.8 percent, to $74.59 a barrel as of 08:30 a.m. Saudi time. US West Texas Intermediate crude gained 62 cents, or 0.9 percent, to $71.61 a barrel. For the year, Brent declined 3.2 percent, while WTI was down 0.1 percent. 

China’s manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed on Tuesday, suggesting a blitz of fresh stimulus is helping to support the world's second-largest economy. 

Chinese authorities have also agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to revive economic growth, Reuters reported last week. 

A weaker demand outlook in China has forced both OPEC and the International Energy Agency to cut their oil demand expectations for 2025. 

OPEC and its allies earlier this month delayed their plan to start raising output until April 2025 against a backdrop of falling prices. The IEA expects global oil supply to exceed demand in 2025 even if OPEC+ cuts remain in place, as rising production from the US and other outside producers outpaces sluggish demand. 

While a weak longer-term demand outlook has weighed on prices, they could find short-term support from declining US crude stockpiles, which are expected to have fallen by about 3 million barrels last week. 

Both Brent and WTI were buoyed by a larger-than-expected drawdown from US crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand.  

Investor focus next year will be on the Federal Reserve’s rate path after the central bank earlier this month projected just two rate cuts, down from four in September, due to stubbornly high inflation. 

Lower interest rates generally incentivize borrowing and fuel growth, which in turn is expected to boost oil demand. 

The shifting expectations around US rates and the widening interest rate differentials between the US and the other economies have lifted the dollar and weighed on other currencies. 

A stronger dollar makes purchases of oil more expensive for consumers outside the US, weighing on demand. 

Markets are also gearing up for President-elect Donald Trump’s policies around looser regulation, tax cuts, tariff hikes and tighter immigration that are expected to be both pro-growth and inflationary - and ultimately dollar-positive.

Topics: Oil OPEC energy

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ACWA Power expands into China with over 1GW of renewable energy projects

ACWA Power expands into China with over 1GW of renewable energy projects
Updated 30 December 2024
Nour El-Shaeri
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ACWA Power expands into China with over 1GW of renewable energy projects

ACWA Power expands into China with over 1GW of renewable energy projects
Updated 30 December 2024
Nour El-Shaeri

RIYADH: Saudi utility giant ACWA Power has announced its successful expansion into China, securing over 1 gigawatt of renewable energy projects.

The portfolio includes solar photovoltaic and wind energy initiatives, which will be jointly owned by ACWA Power and leading Chinese renewable energy firms.

In a statement to Tadawul, ACWA Power confirmed that the projects are spread across several Chinese provinces and are in advanced stages of development. This milestone represents the company’s formal entry into China’s renewable energy sector, positioning ACWA Power for future growth in one of the world’s largest clean energy markets.

The expansion aligns with ACWA Power’s broader ambitions in China. Earlier this month, Yunhe Lyu, head of ACWA Power’s China operations, shared plans to invest up to $50 billion in renewable energy projects across the country by 2030. The company aims to acquire clean power assets with a capacity of up to 20 GW and to develop 1 million tonnes of green hydrogen.

“We have an ambitious target of investing up to $50 billion in green energy, renewable technologies, green hydrogen, and desalination projects by 2030,” Lyu told Bloomberg. “Our goal is to reach 1.3 GW of renewable energy capacity in China by the end of this year.”

ACWA Power’s strategy also involves collaboration with Chinese state-owned enterprises, both within China and abroad. For example, the company partnered with China Southern Grid International in July on a wind project in Uzbekistan and with State Power Investment Corp. on power initiatives in Saudi Arabia.

The expansion into China is part of a broader strengthening of economic ties between Saudi Arabia and China. Since Chinese President Xi Jinping’s visit to Riyadh in 2022, the two nations have deepened their economic collaboration, particularly in sectors aligned with Saudi Arabia’s Vision 2030.

In 2023, bilateral trade between the countries reached $107.23 billion, with China exporting $42.86 billion in goods to Saudi Arabia and importing $64.37 billion, primarily crude oil and petrochemical products. By August 2024, trade had already totaled $70.87 billion, continuing to show robust growth.

Notably, China has become the Kingdom’s leading source of greenfield foreign direct investment, contributing $21.6 billion from 2021 to October 2024. About one-third of this investment is in clean technologies such as solar, wind, and battery storage.

Saudi Aramco has also been instrumental in strengthening bilateral ties. In November, Aramco, in partnership with China’s Sinopec, began construction of a $9.82 billion petrochemical complex in Fujian province. The project will include a 320,000-barrel-per-day refinery and a 1.5-million-tonne-per-year ethylene plant, with full operational status expected by 2030. This project is set to boost China’s refining and petrochemical capacity while reinforcing Aramco’s position in the downstream energy sector.

Earlier in September, Aramco signed several key agreements with Chinese partners, including a development framework agreement with Rongsheng Petrochemical Co. Ltd. and a strategic cooperation agreement with Hengli Group Co. Ltd. These partnerships are aimed at enhancing China’s energy security and supporting the country’s industrial development.

Beyond traditional energy, Aramco’s collaboration with China also extends to advanced technologies and lower-carbon energy solutions. In March, Aramco President and CEO Amin Nasser addressed the China Development Forum in Beijing, underscoring the company’s commitment to being a reliable energy partner and its vision for future cooperation in the global energy transition.

Topics: ACWA Power China

Closing Bell: Saudi indices close in green for second day in a row

Closing Bell: Saudi indices close in green for second day in a row
Updated 30 December 2024
NOUR EL-SHAERI   
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Closing Bell: Saudi indices close in green for second day in a row

Closing Bell: Saudi indices close in green for second day in a row
  • MSCI Tadawul Index increased by 11.41 points, or 0.76%, to close at 1,505.97
  • parallel market Nomu gained 460.61 points, or 1.48%, to close at 31,513.42
Updated 30 December 2024
NOUR EL-SHAERI   

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 0.91 percent, or 108.17 points, to reach 12,000.92 points on Monday.

The total trading turnover of the benchmark index was SR5.1 billion ($1.3 billion), as 172 of the listed stocks advanced, while 65 retreated.

The MSCI Tadawul Index also increased by 11.41 points, or 0.76 percent, to close at 1,505.97. 

The Kingdom’s parallel market Nomu also reported increases, gaining 460.61 points, or 1.48 percent, to close at 31,513.42. This comes as 39 of the listed stocks advanced, while as many as 47 retreated.

The index’s top performer, Saudi Reinsurance Co., saw a 10 percent increase in its share price to close at SR51.70.  

Other top performers included Saudi Industrial Development Co., which saw an 8.98 percent increase to reach SR30.95, while Walaa Cooperative Insurance Co.’s share price rose by 7.42 percent to SR19.68. 

Middle East Specialized Cables Co. recorded a positive trajectory, with share prices rising 6.17 percent to reach SR43.90. Fawaz Abdulaziz Alhokair Co. also witnessed positive gains, with 5.07 percent reaching SR12.84. 

Alkhaleej Training and Education Co. was TASI’s worst performer, with the company’s share price falling by 3.26 percent to SR31.15. 

Sustained Infrastructure Holding Co. followed with a 2.86 percent drop to SR32.25. National Medical Care Co. also saw a notable decline of 2.11 percent to settle at SR167.40. 

Elm Co. and Arriyadh Development Co. were among the top five worst performers, with shares dropping by 2.06 percent to settle at SR1,114.80 and by 2.03 percent to sit at SR33.85, respectively. 

On the announcement front, WSM for Information Technology Co. has finalized its acquisition of Wasl Technology Information Systems Limited Co., marking the conclusion of a transaction valued at SR8.5 million. 

The company announced the signing of the final purchase agreement on Dec. 29 with Tanabw for Information Technology, effectively transferring Wasl Technology Information Systems into a branch of Tanabw. 

The acquisition process began with the signing of a non-binding memorandum of understanding on Oct. 27, followed by regulatory approval on Nov.10 when WSM received a No Notification Required Certificate from the General Authority for Competition. Value Capital acted as the financial adviser for the deal. 

The transaction is expected to expand WSM’s technology capabilities and strengthen its presence in the IT sector. Further details on integration plans and strategic objectives post-acquisition have yet to be disclosed, the company stated in a bourse statement.

WSM closed Monday’s trading session with a 4.30 percent increase to reach SR49.70. 

Also, Waja Co. has announced the signing of a Shariah-compliant bank facility agreement with Alinma Bank, securing financing worth SR16 million. The agreement, finalized on Dec.30, has a tenure of one year. 

The facility is backed by a promissory note from the company and will be used to support Islamic financing for letters of credit, various Islamic bank guarantees, and tawarruq transactions.

Waja’s move aligns with its strategy to enhance its financial capabilities while adhering to Islamic banking principles. 

The financing is expected to bolster the company’s liquidity and operational flexibility, enabling it to pursue its business objectives effectively. Further updates regarding the utilization of funds were not disclosed, according to a bourse filing.

Waja Co.’s share price dropped 0.25 percent on Monday to settle at SR7.86. 

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

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Qatar surpasses 2024 visitor target welcoming 5m travelers

Qatar surpasses 2024 visitor target welcoming 5m travelers
Updated 30 December 2024
NADIN HASSAN  
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Qatar surpasses 2024 visitor target welcoming 5m travelers

Qatar surpasses 2024 visitor target welcoming 5m travelers
  • Hotel sector now boasts more than 40,000 keys, reinforcing its capacity to cater to an increasing influx of travelers
  • Tourism traffic in the GCC is expected to rise as countries work to reduce their reliance on oil
Updated 30 December 2024
NADIN HASSAN  

RIYADH: Qatar welcomed 5 million visitors in 2024, surpassing its target of 4.79 million and marking a 25 percent increase in international arrivals compared to the previous year. 

The growth underscores the country’s rising prominence as a global tourism hub and highlights several key milestones, including surpassing its annual goal of 8.8 million room nights sold, reaching nearly 10 million room nights to date. 

The country’s hotel sector now boasts more than 40,000 keys, reinforcing its capacity to cater to an increasing influx of travelers, according to a press release. 

The achievement aligns with Qatar’s National Tourism Sector Strategy 2030, which aims to welcome over 6 million annual visitors by the end of this decade, positioning the country as the Middle East’s fastest-growing tourist destination. 

“Surpassing five million visitors is a landmark accomplishment for Qatar, bringing us closer to realizing our vision of positioning the country as one of the world’s fastest-growing, family-friendly premier destinations,” said Saad Bin Ali Al-Kharji, the chairman of Qatar Tourism. 

“This milestone is not only a celebration of our accomplishments but also a foundation for future growth as we continue to deliver unique experiences and service excellence across all the tourism touch points for every visitor,” he added. 

The year’s visitor demographics reveal that 41 percent were Gulf Cooperation Council nationals, while 59 percent came from international markets, led by Saudi Arabia, India, the UK, Germany, and the US. 

Qatar also recorded 56 percent of arrivals by air, 37 percent by land, and 7 percent by sea. 

This comes as tourism traffic in the GCC is expected to rise as countries work to reduce their reliance on oil.

The tourism sector’s contribution to gross domestic product is expected to grow from $130 billion in 2023 to over $340 billion by 2030, exceeding 10 percent of the region’s GDP, according to a report released by Fitch Ratings in July. 

The aviation industry will be crucial, with Fitch Ratings forecasting significant growth in passenger traffic, supported by some of the world’s most modern airports, including Dubai International with 87 million passengers, Hamad International in Doha with 45.9 million, and King Abdulaziz International in Jeddah with 42.9 million. 

Qatar’s visitor numbers have steadily increased throughout 2024, with notable growth in both the early and late parts of the year. 

Major events, such as the AFC Asian Cup in January, the Formula 1 Qatar Grand Prix, and the 2024/2025 cruise season, contributed to the surge in arrivals, particularly during the November school holidays when visitor numbers from Saudi Arabia were notably strong. 

“Our tourism goals are ambitious but achievable. Between 2022 and 2030, we aim to nearly triple our visitor numbers and to at least double the tourism in-destination spend,” Al-Kharji said. 

As Qatar continues to attract global travelers, the country remains focused on offering quality experiences and showcasing its cultural heritage. 

By inviting visitors to explore its unique landmarks and family-friendly attractions, Qatar is strengthening its position as a top global tourism destination. 

Looking ahead, Qatar’s tourism strategy aims to triple its visitor numbers by 2030, while also doubling the tourism sector’s contribution to the country’s GDP, targeting a range of 10-12 percent. 

Topics: Qatar qatar tourism

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Tourist spending in Saudi Arabia up 27%, reaching nearly $7bn

Tourist spending in Saudi Arabia up 27%, reaching nearly $7bn
Updated 30 December 2024
Dayan Abou Tine
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Tourist spending in Saudi Arabia up 27%, reaching nearly $7bn

Tourist spending in Saudi Arabia up 27%, reaching nearly $7bn
  • Spending by residents traveling abroad increased by 21.79% to reach SR26.33 billion
  • Inbound tourism spending has shown notable fluctuations throughout the year
Updated 30 December 2024
Dayan Abou Tine

RIYADH: Tourism spending in Saudi Arabia saw an annual increase of 27.25 percent in the three months to the end of September, hitting SR25.05 billion ($6.68 billion), according to new figures.

Data released by the Saudi Central Bank, also known as SAMA, also showed that the spending by residents traveling abroad increased by 21.79 percent to reach SR26.33 billion.

The travel balance of payments recorded a deficit of SR1.28 billion, marking a 33.83 percent decrease compared to the same period last year. The balance showed a surplus of SR40.17 billion for the first nine months of the year, reflecting a 4 percent increase from the same period in 2023.

These spending patterns align with the Kingdom’s broader ambition to rank among the top 10 global tourist destinations by the end of the decade, as outlined in its Vision 2030 economic diversification strategy.

Recent cultural advancements, including hosting art exhibitions and high-profile entertainment events, demonstrate Saudi Arabia’s commitment to enhancing its global image.

Landmark initiatives, such as the newly approved “Visiting Investor” visa, further signal the nation’s intent to attract diverse visitors while supporting the tourism sector’s growth.

Inbound tourism spending in Saudi Arabia has shown notable fluctuations throughout the year, shaped by a blend of cultural, religious, and seasonal factors.

Religious tourism, which accounted for 42 percent of all inbound visits in 2023, according to the Ministry of Tourism annual report, plays a pivotal role in this variation.

Pilgrimages during the holy months of Hajj and Ramadan drive significant surges in visitor numbers and spending, underscoring the importance of faith-driven travel to the Kingdom’s tourism sector.

Non-religious inbound tourism, which made up 58 percent of arrivals during 2023, might exhibit different dynamics influenced by factors such as climate.

Leisure tourists and those visiting friends and relatives often plan their trips during months when temperatures are milder.

This seasonal preference explains why tourism spending tends to peak during the second quarter of the year. In 2024, inbound spending reached SR47.6 billion in the second quarter, following a similar trend in 2023, when spending in the same period was SR48.93 billion.

By contrast, expenditures dropped to SR19.68 billion in the third quarter of 2023, coinciding with the peak summer heat.

Makkah remained the most visited destination in 2023, according to the ministry’s report, welcoming 15.4 million tourists, driven primarily by religious purposes.

Madinah, a secondary destination for many pilgrims, attracted 9.6 million visitors. Riyadh also emerged as a major draw, hosting 2.8 million tourists and reinforcing its growing reputation as a cultural and business hub.

Religious tourism generated the majority share of spending, contributing 55 percent of the total or SR77.4 billion, followed by visits to relatives and families at 19 percent or SR26.3 billion.

Leisure tourism, encompassing activities like entertainment and sightseeing, accounted for SR21.6 billion.

Topics: tourism Saudi tourism spending saudi tourism

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