Closing bell: Saudi main index edges up to close at 12,762
Updated 17 March 2024
Arab News
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 39.90 points, or 0.27 percent, to close at 12,762.43.
The total trading turnover of the benchmark index was SR9.02 billion ($2.4 billion) as 136 stocks advanced, while 79 retreated.
The parallel market, Nomu, also rose 290.29 points, or 1.08percent, to close at 27,279.69. This comes as 28 stocks advanced, while as many as 35 retreated.
Meanwhile, the MSCI Tadawul Index slipped 0.79 points, or 0.05 percent, to close at 1,605.43.
The best-performing stock of the day was Saudi Steel Pipe Co. The company’s share price surged 10 percent to SR89.10.
Other top performers included Saudi Advanced Industries Co. as well as Wafrah for Industry and Development Co. The worst performer was East Pipes Integrated Co. for Industry whose share price dropped by 4.61 percent to SR145.
Arabian Shield Cooperative Insurance Co. and MBC Group Co. did not perform well.
On the announcements front, Allianz Saudi Fransi Cooperative Insurance Co. announced its annual consolidated financial results for the period ending Dec.31.
According to a Tadawul statement, the entity’s net profit hit SR36.9 million during the period, up 331.29 percent in comparison to 2022 figures.
Moreover, Saudi Advanced Industries Co. also announced its annual financial results for 2023.
A bourse filing revealed that the firm’s net profit reached SR148.8 million in the period ending Dec.31, reflecting a 48.49 percent from the corresponding period a year earlier.
This rise in profits was primarily owed to a rise in profits from selling shares in associated companies, an increase in profit from selling financial assets at fair value through profit or loss, and a jump in unrealized gains from financial assets at fair value through profit or loss.
It was also linked to a surge in dividends earned coupled with a rise in other income.
Meanwhile, the Canadian Medical Center has announced the signing of a SR11.25 million contract with We Build Co. to manage and operate the clinics at NEOM’s Trojena project.
Pharmaceuticals and food sectors key focus of Saudi ministers’ Egypt trip
Updated 22 sec ago
Miguel Hadchity
RIYADH: Boosting pharmaceutical ties was the centerpiece of a visit by leading Saudi ministers to Egypt as the two countries sought to enhance industrial cooperation and explore investment opportunities.
The Kingdom’s Minister of Industry Bandar Alkhorayef traveled to the north African country on Dec. 15, with a focus on boosting collaboration in the industrial and mining sectors while identifying mutual opportunities in areas such as food and pharmaceuticals, according to a statement.
He was joined by Deputy Minister Khalil bin Salamah, Saudi Export-Import Bank CEO Saad Al-Khalb, and Saudi Export Development Authority CEO Abdulrahman bin Sulaiman Al-Thukair.
During the visit, Alkhorayef met with senior Egyptian officials and major private sector leaders to highlight Saudi Arabia’s competitive investment environment, incentives for investors, and strategic industrial priorities, the Saudi Press Agency reported.
The official visit aims to strengthen the countries’ strategic partnership. In 2023, Saudi Arabia’s non-oil exports to Egypt amounted to SR9.9 billion ($2.6 billion), while non-oil imports from Egypt totaled SR9.6 billion.
A key highlight of the trip was a tour of Almarai’s “Beyti” factory in Beheira Governorate, where Alkhorayef reviewed its role in local community development and supply chain localization. He also visited several pharmaceutical facilities to gain insights into Egypt’s manufacturing expertise.
Bin Salamah held bilateral talks with Mohamed Zaki El-Sewedy, chairman of Egypt’s Federation of Industries, with the discussions focused on encouraging the private sector to capitalize on available industrial investment opportunities across both countries.
The deputy minister also met with executives from leading pharmaceutical companies, including Minapharm, to discuss localizing medical industries in Saudi Arabia and exploring potential collaboration in biopharmaceutical manufacturing.
He also held talks with officials from Eva Pharma around opportunities in generic pharmaceutical production and veterinary vaccines.
Additionally, there were discussions with the chairman of Medical Union Pharma regarding the integration of active pharmaceutical ingredients in the Saudi market, with a focus on both chemical and biological components.
Moreover, Bin Salamah met with the chairman of the British Egyptian Co. for General Development, also known as Galina, to explore potential investment opportunities in Saudi Arabia and discuss the growth of the frozen and packaged fruits and vegetables trade.
The meeting also emphasized leveraging Industry 4.0 technologies to boost productivity in both nations’ industrial sectors.
ISLAMABAD: The Pakistan Stock Exchange (PSX) smashed past the 116,000 mark during intraday trading on Monday on anticipation that the central bank will slash the interest rate at the monetary policy meeting today, analysts said.
The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities published earlier this month, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps.
The benchmark KSE-100 index climbed 1,932.63 or 1.69 percent to reach an intraday high of 116,234.43 points at 2:58 p.m. from the previous close of 114,301.80.
“Anticipation of a sharp interest rate cut together with strong liquidity with mutual funds is driving the market up,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. “It is a broad-based increase, with only banks in the red today on fears of higher taxation.”
The upward surge was driven by the anticipation of a “sharp interest rate cut” by the State Bank, boosting economic growth, corporate profitability and strong liquidity in mutual funds fueled by increased investor confidence and higher savings rates.
Pakistani stocks have been performing significantly well this month, closing at record highs multiple times.
“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
Middle East holds highest growth potential for private capital in 2025: Report
Asset managers surveyed private equity and venture capital as the top investment opportunities
Survey was carried out on the sidelines of Apex Invest Abu Dhabi in November
Updated 14 min 52 sec ago
Nirmal Narayanan
RIYADH: The Middle East region is offering the highest growth potential for private capital in 2025, driven by government initiatives and sectoral reforms, according to a survey.
The Apex Group, the London-based financial solutions provider behind the poll, said asset managers surveyed private equity and venture capital as the top investment opportunities in the Middle East.
As detailed in the survey, which was carried out on the sidelines of Apex Invest Abu Dhabi in November, 39 percent of the attendees shared bright prospects for private capital deployment in the region.
A report released by Wamda this month revealed that startups in the Middle East and North Africa region raised $258 million in November, representing a 92 percent rise compared to the previous month.
“The Middle East remains an attractive proposition for asset managers. Various government initiatives, private sector reforms, and strong capital inflows are driving investment into the region’s domestic markets,” said Christiane El Habre, regional managing director, Middle East at Apex Group.
“This is creating opportunities for asset managers who can allocate capital productively and create returns via active management strategies,” she also said.
El Habre added that the survey results directly reflect the growing maturity of the asset management landscape in the Middle East region.
Despite the optimistic outlook, attendees highlighted several challenges in achieving portfolio diversification goals, with 54 percent underlining access to quality assets as a key constraint.
Some 21 percent of the attendees who took part in the survey said that market volatility is also a major factor that is impeding progress, while 13 percent opined regulatory constraints and capital-raising challenges as causes of concern.
The survey report revealed that 30 percent of the poll participants considered the Asia-Pacific region as a good destination for private capital deployment, while 22 percent preferred North America.
Europe, Africa, and South America were rated less in the survey for deployment of private capital due to various socioeconomic and geopolitical factors, said Apex Group.
Some 88 percent of the survey panelists said that public equity and venture capital firms are increasingly engaged with portfolio companies to drive returns and safeguard impact.
The Apex Invest Abu Dhabi event witnessed the participation of senior representatives from prominent regional asset managers, including Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and Abu Dhabi Investment Authority, as well as key members from family offices and investor institutions.
Saudi Arabia spotlights private sector’s role in driving logistics transformation
Kingdom is seeking to become a global logistics hub by leveraging its strategic location at the crossroads of Asia, Africa, and Europe
Saudi Arabia currently ranks first globally for road connectivity
Updated 12 min 17 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s private sector is playing a pivotal role in driving the Kingdom’s transformation into a global logistics hub, a top official said.
Speaking at the sixth edition of the Supply Chain And Logistics Conference in Riyadh, Rumaih Al-Rumaih, vice minister of transport and logistics services and president of the Transport General Authority, highlighted the critical contributions from businesses.
“The main player in achieving anything in the logistics sector is the private sector. Truly, the private sector is the one delivering results. The government’s role is to enable,” Al-Rumaih said.
He added: “If we visit the exhibition, we’ll see the private sector at the forefront, not the government because they are the real achievers.”
Saudi Arabia is seeking to become a global logistics hub by leveraging its strategic location at the crossroads of Asia, Africa, and Europe. Through its Vision 2030 plan, the Kingdom is investing in transport, infrastructure, and technology to reduce oil dependence and modernize supply chains.
Al-Rumaih credited the economic diversification initiative for providing a structured roadmap, stating: “This did not happen by chance; it was a clear vision and target. The Kingdom’s strategic location connects three continents, making it a natural global logistics hub.”
He also emphasized the private sector’s role in forging strategic partnerships with major global players, saying: “The private sector responded to Vision 2030 by growing rapidly and forming partnerships with major players like CEVA, DSV, and DB Schenker.”
Building infrastructure
Bader Al-Dulami, vice minister of transport and logistics services for road affairs, underscored the importance of infrastructure in enabling success.
“The road sector is undoubtedly one of the most significant enablers of the logistics sector. There is no logistics sector without roads that connect various destinations,” Al-Dulami said.
He added: “There is no successful logistics sector without a network of safe, high-quality roads that can accommodate the increasing demand in this sector.”
Bader Al-Dulami, vice minister of transport and logistics services for road affairs. Screenshot
Saudi Arabia currently ranks first globally for road connectivity, a milestone Al-Dulami attributed to sustained investment and strategic planning.
“Through joint efforts, we have managed to reduce accident rates significantly. From 2016 to the present, the accident rate has decreased by more than half — a 50 percent reduction,” he said.
The vice minister continued: “In 2016, there were 28 deaths per 100,000 people; today, it is less than 13 deaths per 100,000. However, our journey is far from over, as we aim to achieve the target of reducing this number to five by 2030”
Road maintenance
Al-Dulami announced plans for phase two of performance-based maintenance contracts, which will incorporate advanced technologies to enhance road sustainability.
“The private sector will play a key role, especially in the operation and maintenance of roads. By the end of this month, we will launch phase two of performance-based maintenance contracts,” he said.
“These contracts will incorporate a wide range of modern technologies that will be applied to roads. Many privatization projects have also been initiated,” Al-Dulami added.
He emphasized the importance of collaboration with the private sector, describing it as a reliable and dynamic partner.
“The private sector is a true partner that communicates its needs to us. We are not rigid when it comes to making changes that could benefit this sector,” Al-Dulami said.
He continued: “On the contrary, we are extremely agile, and what you see today in terms of change and development is a result of this openness to everything new and everything that contributes to advancing this sector.”
Ambitious goals
Concluding the session, Al-Rumaih reaffirmed the Kingdom’s ambitious goals.
“We will not stop here. Our aspirations are sky-high, and the journey to position Saudi Arabia as the top global logistics hub continues,” he said.
The two-day Supply Chain And Logistics Conference brought together industry leaders, government officials, and stakeholders to showcase Saudi Arabia’s achievements and explore further opportunities for public-private collaboration in the logistics sector.
In his keynote speech on the conference’s second day, Ahmed Al-Hassan, assistant minister of transport and logistics services, highlighted the ministry’s expanded role.
“The ministry has transitioned from executing projects to supervising strategies that align with national goals and enhance global competitiveness,” he said.
Al-Hassan praised initiatives like the Global Logistics Forum – held in Riyadh in October – describing it as a key platform for attracting international investments and strengthening Saudi Arabia’s role as a leader in the sector.
Saudi Social Development Bank and SNB to launch financing portfolio for entrepreneurs
Agreement set to provide $2.66 million in funding to entrepreneurs
Newly launched portfolio will provide individuals with entrepreneurial knowledge
Updated 16 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s Social Development Bank has signed an agreement with the Saudi National Bank to launch a financing portfolio to support entrepreneurship in the Kingdom.
The financing portfolio is being introduced as part of SNB’s Ahalina program, with the agreement set to provide SR10 million ($2.66 million) in funding to entrepreneurs, according to the Saudi Press Agency.
The deal was inked against rising entrepreneurship in Saudi Arabia, with the number of active commercial registrations in the Kingdom reaching 1.51 million by the end of the third quarter of the year.
According to the SNB website, it launched the Ahalina strategy to empower various society groups, “converting them into positive and developmental energies capable of supporting the national economy.”
Tareq Al-Sadhan, the CEO of SNB, said: “Through the Ahalina program, we seek to consolidate our commitment to the community by supporting entrepreneurs and start-ups, which enhances our contributions to achieving sustainable development, and confirms the role of social responsibility as an integral part of our corporate strategy.”
The newly launched portfolio will also provide individuals with entrepreneurial knowledge. It will help them acquire the necessary skills to secure project funding and contribute to Saudi Arabia’s socio-economic development.
The agreement also aligns with the more expansive goal of SNB, which is to empower individuals and institutions and provide community support in all regions of the Kingdom, contributing to Saudi Arabia’s Vision 2030 program, the SPA report added.
“This agreement represents an extension of the bank’s march toward achieving sustainable development, promoting entrepreneurship, and supporting Saudi youth to build sustainable projects with a tangible impact,” said Sultan Al-Hamidi, the CEO of SDB.
Under the deal, both SNB and SDB will work to enhance cooperation between the public and private sectors to boost the entrepreneurial landscape in the Kingdom.
In November, Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, organized the Biban 24 event to support SMEs in the Kingdom, where agreements worth SR35.4 billion were signed.
During the event, Sami bin Ibrahim Al-Husseini, the governor of Monsha’at, said that such events are crucial to strengthen Saudi Arabia’s entrepreneurial framework and are aligned with the nation’s Vision 2030 objectives to boost the SME sector’s contribution to the national gross domestic product.
