Entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024

Entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024
During the same period, assistance for small and startup businesses amounted to SR606 million for over 1,700 establishments. Shutterstock
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Updated 01 October 2024
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Entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024

Entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024

RIYADH: Almost 12,000 Saudi entrepreneurs received support and training from the Kingdom’s Social Development Bank in the first quarter of 2024, it was revealed. 

Minister of Human Resources and Social Development Ahmed Al-Rajhi announced in a post on X that SDB provided financing worth SR1.85 billion ($493 million) in the first three months of this year.

The financing aims to “support individuals and enterprises to contribute to economic development and sustain efforts toward national sustainable growth.”

During the same period, assistance for small and startup businesses amounted to SR606 million for over 1,700 establishments. 

Furthermore, empowerment support for vibrant and productive communities reached SR640 million, benefiting 12,000 citizens through various social developmental products, including marriage, family support, and restoration.

Assistance for freelancers and productive families also surged to SR600 million, benefiting 13,000 individuals. 

Additionally, the number of savings accounts increased by 13,000, reaching a total of 245,000, with a balance exceeding SR525 million.

According to the Small and Medium Enterprises General Authority, Saudi Arabia witnessed a 3.1 percent uptick in its small and medium enterprises during the fourth quarter of 2023, totaling 1.3 million establishments.

Recognized for their pivotal role in diversifying income streams and stimulating economic progress, SMEs are a cornerstone of Saudi Arabia’s economic landscape. 

Credit facilities extended to micro, small, and medium-sized enterprises experienced an 18 percent year-on-year surge in the third quarter of 2023. 

Figures from the Saudi Central Bank underscored a notable increase in borrowing lines allocation to this sector, totaling SR268.57 billion in the three-month period ending October 2023, up from SR228.03 billion in the corresponding period of the preceding year. 

This increase is credited to governmental endeavors aimed at bolstering support for SMEs.

In January, SDB signed 24 deals worth SR1 billion to support entrepreneurs across various sectors in the Kingdom.    

Inked during the Entrepreneurship and Modern Work Patterns Forum, the memorandums of cooperation encompassed a broad spectrum of sectors, including health, transportation, and logistics.  

This aligns with the objectives of Vision 2030, aiming to reduce the unemployment rate, enhance women’s participation in the workforce, and expand the contribution of small and medium-sized enterprises to 35 percent of the gross domestic product by the end of the decade.     

Speaking at the time, CEO of SDB Ibrahim Al-Rashid said those deals would “open new horizons for entrepreneurship and small and emerging enterprises" by developing new systems for financing, training and qualification.    

Last year, the bank introduced a range of training programs to assist small businesses across the Kingdom. 

The courses covered key areas such as marketing and administration, allowing business owners to meet and discuss their development plans with local and international experts. 


Cityscape Global 2024 to pave the way for innovation in real estate, minister says

Cityscape Global 2024 to pave the way for innovation in real estate, minister says
Updated 4 sec ago
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Cityscape Global 2024 to pave the way for innovation in real estate, minister says

Cityscape Global 2024 to pave the way for innovation in real estate, minister says

RIYADH: Cityscape Global 2024 is expected to drive innovation and sustainable advancements within Saudi Arabia’s real estate market, broadening growth opportunities, according to a top official.

The opening day of the event, which is taking place in Riyadh from Nov. 11 – 14, saw the Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, explain that the Kingdom is working to develop the sector further to achieve the nation’s ambitions. 

This comes as Saudi Arabia’s real estate is a vital element of the country’s economy, contributing around 7 percent of gross domestic product and supporting numerous additional sectors. 

“The Kingdom’s hosting of the Cityscape Global for the second time is an affirmation of the Kingdom’s position, which has become a leading model in the field of innovation and real estate development and a global center that leaves a clear imprint in building the cities of the future,” Al-Hogail said.

“Today, we are not only hosting a real estate event, but we are opening the doors to new horizons of innovation and sustainable advancement to achieve the future of our ambitious country under the slogan ‘The Future of Life,’” he added. 

Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail speaking at the event. X/@CSGlobalKSA

The minister went on to say that the number of local developers at the exhibition has doubled to more than 100, and the total of high-level real estate firms participating is up from from 54 to 69. 

“Of course, this increase comes in light of the accelerating growth witnessed by the sector since the beginning of this year,” he added. 

Al-Hogail further highlighted that this growth has brought about a rise in real estate deals, the value of which has exceeded SR630 billion ($167 billion) since the beginning of the year, making this sector one of the most important economic engines contributing to the development of the economy. 

“All these efforts aim to accelerate the development of real estate refinancing market programs in the Kingdom and expand through local and international capital market channels so that we can ensure the continued growth of this sector, which I undoubtedly expect to reach more than SR1.3 trillion, for the housing sector alone, in 2030,” he said. 

Toward the conclusion of his speech, the minister also underlined that the total value of launches and strategic agreements in Cityscape Global 2024 exceeds SR180 billion. 

In terms of announcements, Saudi National Housing Co. launched a new identity and strategy, which CEO Mohammad Saleh Al-Buty said included a “major expansion in pioneering projects.”

He added: “Today, from this place, I am pleased to inform investors about investment opportunities for the year 2025 with a value exceeding SR75 billion in residential projects and others.” 

Saud-based Retal Urban Development Co. also announced major projects for 2024. 

“In the name of ambition and achievement, and out of our keenness to achieve and realize hopes, Retal announces a group of projects for the year 2024 worth more than SR14 billion,” the firm’s CEO Abdullah Al-Braikan said.

Retal Urban Development Co. CEO Abdullah Al-Braikan. X/@CSGlobalKSA

Moving on to Diriyah Development Co., the developer announced the launch of 59 new luxury apartments and villas for the Signature Collection of The Ritz-Carlton Residences, Diriyah, marking the latest release of its luxury branded residences.

This launch follows the successful sell-out of the initial 106 Ritz Carlton Residences.

Diriyah Development Co. also launched the first luxury residential group, “Raffles Residences Diriyah”, affiliated with Raffles Hotels and Resorts, during its participation in the Cityscape Global exhibition in Riyadh, as part of the company’s continued provision of high-quality living standards with international standards in Diriyah.

The new residence will offer 90 luxury residences, ranging from one, two and three-bedroom suites to duplex villas and townhouses, with residents enjoying full access to the hotel’s world-class facilities.

During the announcement, Mohamed Saad – from the firm’s DevCo. division – introduced a new collection featuring 59 fully furnished apartments and villas, available in one- to four-bedroom configurations. 

Mohammad Al Habib Real Estate Co. also announced a new development during the event, which will be located in Riyadh, while founder and Chairman of Mountain View Amr Soliman also shed light on his firm’s first project to date in the Kingdom.

“Mountain View One”, situated in the north of Riyadh, will have an investment value of $320 million, with 500 villas. 

Mohammad Al-Othman, CEO of Kaden, used the event to announce the Jeddah Front project which spans 1 million sq. meters and involves total investments of up to SR10 billion. 

“The waterfront will feature 5,000 residential units, housing approximately 20,000 residents. It also includes recreational spaces covering 140,000 sq. meters and a business sector area reaching 138,000 sq. meters,” Al-Othman said, adding that there will also be around 800,000 hotel units. 

CEO of Tilal Real Estate Co. Abdulrahman Al-Bassam, who also spoke during the event, tackled the “Heart of Khobar” project, which is set to be valued at above SR6 billion upon completion of its phases. 

“On this occasion, we are pleased to announce the signing of the operational agreement for the project with 25Hours from the Accor Group. This project will be the second of its kind after Trojena in NEOM,” Al-Bassam said. 

Co-founder of Flow Adam Neumann also disclosed the company’s first local real estate fund worth SR1.1 billion, with Sico and Safa as partners. 


PIF’s EV maker Ceer secures advanced drive systems through new partnership 

PIF’s EV maker Ceer secures advanced drive systems through new partnership 
Updated 31 min 24 sec ago
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PIF’s EV maker Ceer secures advanced drive systems through new partnership 

PIF’s EV maker Ceer secures advanced drive systems through new partnership 

RIYADH: Saudi Arabia’s first electric vehicle brand, Ceer, is set to equip its flagship models with high-performance, fully integrated Electric Drive Systems through a newly announced partnership with Croatia-based Rimac Technology.   

The automobile manufacturer, a joint venture between Saudi Arabia’s Public Investment Fund and Foxconn, aims to leverage Rimac’s expertise in performance powertrain technology to enhance its upcoming EV lineup.  

The agreement was formalized at a signing ceremony in Croatia attended by Ceer CEO James DeLuca and Rimac Technology CEO Mate Rimac. 

“We are delighted to be the first company and large-scale project in the GCC to partner with Rimac Technology to equip Ceer flagship vehicles with the most advanced high-performance electric drive systems and solutions,” said DeLuca.  

“Rimac’s global reputation and know-how in designing leading-edge performance powertrain systems aligns perfectly with our strategic objectives of partnering with global industry leaders as we fulfill our commitment to delivering world-class, high-performance electric vehicles and revolutionizing the automotive industry in Saudi Arabia,” he added. 

The partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications, such as the Rimac Nevera and Aston Martin Valkyrie, to large-scale projects.  

Rimac has recently increased its focus on electrification partnerships, including a long-term collaboration with BMW to supply high-voltage battery systems.  

“The collaboration with Ceer further solidifies Rimac Technology’s global electrification ambitions,” said Rimac.  

“This year alone we’ve announced several key partnerships, including with the BMW Group and Ceer, which will produce tens of thousands of electric drive systems and battery systems for leading OEMs (original equipment manufacturers) worldwide.” he added. 

This venture marks Rimac’s first partnership in the Gulf Cooperation Council region, positioning it to support Ceer’s vision of advancing the EV market in Saudi Arabia. 


Closing Bell: Saudi main index gains, closes at 12,106 points  

Closing Bell: Saudi main index gains, closes at 12,106 points  
Updated 11 November 2024
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Closing Bell: Saudi main index gains, closes at 12,106 points  

Closing Bell: Saudi main index gains, closes at 12,106 points  

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 0.03 percent or 3.25 points to reach 12,106.41 points on Monday.   

The total trading turnover of the benchmark index was SR7.49 billion ($1.99 billion), as 92 stocks advanced, while 133 retreated.   

The MSCI Tadawul Index increased by 2.44 points, or 0.16 percent, to close at 1,521.20.    

The Kingdom’s parallel market, Nomu, dropped by losing 87.15 points, or 0.30 percent, to close at 29,161 points. This comes as 39 stocks advanced, while as many as 41 retreated.   

The index’s top performer, Alandalus Property Co., saw a 5.47 percent increase in its share price to close at SR24.70.   

Other top performers included Rasan Information Technology Co. and Dar Alarkan Real Estate Development Co., with share prices rising by 5.16 percent to SR83.60 and 5.09 percent to SR17.76, respectively.  

Al-Omran Industrial Trading Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co. also recorded positive trajectories today, with share prices rising by 4.18 percent to SR39.85 and 3.74 percent to SR61.10, respectively.   

On the announcement front, Arabian Drilling has secured a 10-year contract extension for one of its land rigs with Saudi Aramco, the company announced today in a bourse filing. 

The extension is set to commence immediately after the current agreement concludes in the fourth quarter of the year. The estimated backlog associated with the new contract is valued at approximately SR440 million. 

Ghassan Mirdad, CEO of Arabian Drilling, highlighted the significance of the extended partnership with Saudi Aramco. 

“We are very pleased with the contract extension as we continue to build on our long-term partnership with Aramco and deliver exceptional service,” Mirdad said. 

“The material backlog of approximately SR440 million will support our future growth,” he added.  

Arabian Drilling closed Monday’s trading session with a 2.11 percent increase in its share price to reach SR116.20. 

The Middle East Paper Co. announced that its subsidiary, Juthor, has signed an agreement with Austria-based Andritz AG for the procurement, supply, and installation of a main production line machine. 

The contract encompasses the purchase of a complete tissue paper production line, with an annual capacity of 60,000 tonnes and a speed of 2,100 meters per minute. 

The agreement value represents less than 25 percent of MEPCO’s total revenue, as reported in its most recent audited financial statement. The duration of the deal is set for 24 months, with the monetary impact expected to begin in the fourth quarter of 2026. 

MEPCO also released its financial results for the first nine months of the year, recording SR775.4 million in revenue, a 20 percent increase compared to the same period last year. 

The company recorded losses of SR33.7 million, an improvement on the SR50.1 million last year. 

MEPCO’s share price dropped by 0.51 percent by Monday’s close to settle at SR38.95. 

Middle East Specialized Cables Co. also released its financial results for the same period to record a 24.9 percent year-on-year revenue increase. 

The company saw SR830.4 million in sales and SR68.7 million in net profits, a 78.9 percent increase from last year. 

Revenue growth was mainly driven by higher sales order volumes across all sectors, particularly in the oil and gas segment. The company secured a greater number of bids and orders compared to the same period last year. 

The net profit surge was attributed to increased sales volume, improved profit margins, and enhanced operational efficiency during the current period. 

The company’s share price dropped 2.37 percent by Monday’s close to settle at SR37.10. 


Riyadh aims for global status with strategic infrastructure, major events

Riyadh aims for global status with strategic infrastructure, major events
Updated 2 min 27 sec ago
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Riyadh aims for global status with strategic infrastructure, major events

Riyadh aims for global status with strategic infrastructure, major events
  • Riyadh mayor said the city’s infrastructure now rivals that of the world’s most advanced cities
  • Major projects continue to be the key drivers behind Riyadh’s urban growth

RIYADH: Saudi Arabia’s capital is rapidly transforming into a global urban hub, driven by ambitious infrastructure projects and a strategic focus on economic diversification, according to the city’s mayor.

Speaking at the Cityscape Global 2024 conference, Riyadh Mayor Prince Faisal bin Abdulaziz bin Ayyaf emphasized the city’s significant development, noting that its infrastructure now rivals that of the world’s most advanced cities.

“Riyadh is building on a very solid foundation with infrastructure that rivals cities worldwide,” Prince Faisal said, highlighting the city’s pivotal role in Saudi Arabia's broader economic diversification efforts.

The mayor pointed to the substantial impact of government spending on the city, particularly in job creation. He revealed that the cost of creating employment opportunities in Riyadh is around 30 percent lower than in other parts of the Kingdom.

Major projects, he added, continue to be the key drivers behind Riyadh’s urban growth. This transformation is particularly evident in the ongoing development of the Riyadh Metro, which is slated to become fully operational later this year. The $22.5 billion transport system will connect critical areas of the city, enhancing mobility through an expansive metro network.

Prince Faisal also underscored Riyadh’s growing ability to host and manage large-scale events, which are crucial to solidifying the city’s global identity.

“I believe that hosting millions of visitors has an impact on every resident of Riyadh, and the way the city manages them is fascinating,” he said.

As part of its global ambitions, Riyadh is preparing to host major international events such as Expo 2030, alongside numerous sports tournaments. These events not only contribute to the city’s economic growth but also help foster a sense of community among its residents.

Looking ahead, Prince Faisal shared a bold vision for Riyadh’s role as a global city by 2030. He envisions a seamless experience for visitors, from flying with Riyadh Air and taking the metro to the New Murabba Project, to attending events in Qiddiya and relaxing in the expansive green spaces of King Salman Park.

The Cityscape Global 2024 conference, held from Nov. 11-14 in Riyadh, further highlights the city’s drive to become an international business hub, with over 400 exhibitors and more than 500 speakers showcasing the future of urban living.


Saudi Arabia’s NEOM appoints 3 global partners to complete 1st phase of The Line

Saudi Arabia’s NEOM appoints 3 global partners to complete 1st phase of The Line
Updated 11 November 2024
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Saudi Arabia’s NEOM appoints 3 global partners to complete 1st phase of The Line

Saudi Arabia’s NEOM appoints 3 global partners to complete 1st phase of The Line
  • The Line, which stretches across 170 km, is expected to accommodate 9 million visitors upon completion
  • The city will run on 100% renewable energy, and 95% of the land will be preserved for nature

RIYADH: Saudi Arabia’s $500-billion megacity NEOM has appointed Delugan Meissl Associated Architects, Gensler, and Mott MacDonald to deliver the planning, designing, and engineering for the initial phase of The Line. 

In a press statement, the giga-project revealed that DMAA has been enlisted as the urban designer, leading The Line’s concept and detailed blueprint. 

The Austrian architecture firm will also collaborate with specialists across various sectors, such as microclimate and ecology, mobility and logistics, and sustainability. 

To reduce the country’s dependence on crude revenues, developing giga-projects like NEOM is crucial for Saudi Arabia, as the Kingdom is steadily diversifying its economy by strengthening sectors like tourism. 

The National Tourism Strategy of Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

The Line, which stretches across 170 km, is expected to accommodate 9 million visitors upon completion. The city will run on 100 percent renewable energy, and 95 percent of the land will be preserved for nature. 

“As development and construction of The Line progresses, we have established a unique partnership that brings world-leading city design and engineering expertise to deliver phase one,” said Denis Hickey, chief development officer at The Line. 

He added: “Collaboration is at the core of this, with a city-wide best practice group that will showcase how innovation can change the way we consider, design and build cities forever. This reflects NEOM’s vision and global ambition.” 

According to the press statement, design firm Gensler has been appointed city planning consultant for phase one. The company will work on design coordination and planning, providing leadership and governance across the project in crucial areas, including planning policies and frameworks, land use, and design compliance. 

Gensler has also been appointed as the city asset design architect for critical infrastructure, including transport hubs and the public realm.

NEOM added that Mott MacDonald has been enlisted as the city infrastructure engineer. The company will drive management and control of vertical and horizontal structures and city utility systems for phase one. 

Mott MacDonald’s role will also focus on the efficiency and sustainability of the design for a functional, constructible, and operable city.

In October, NEOM announced the opening of Sindalah, the luxury island destination located within the project. 

NEOM added that Sindalah will welcome up to 2,400 people per day by 2028 and create 3,500 jobs, which will help to strengthen the ongoing development of the Kingdom’s hospitality and tourism industries.