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ACWA Power’s Shuaa Energy 3 granted commercial operation certificate for 300MW solar project

ACWA Power’s Shuaa Energy 3 granted commercial operation certificate for 300MW solar project
Phase C encompasses an additional 300MW of solar power. Shutterstock
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Updated 16 May 2024
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ACWA Power’s Shuaa Energy 3 granted commercial operation certificate for 300MW solar project

ACWA Power’s Shuaa Energy 3 granted commercial operation certificate for 300MW solar project
Updated 16 May 2024
ARAB NEWS 
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RIYADH: The third stage of a Dubai-based 900-megawatt solar project being developed by Shuaa Energy 3 is ready to begin commercial operations, it has been announced.

Saudi energy firm ACWA Power — which owns a 24 percent stake in the company behind the facility — revealed in a Tadawul filing that the Project Commercial Operation Certificate of Phase C of the project has been granted. 

PCOC is a document confirming that the facility at Mohammed bin Rashid Al Maktoum Solar Park is fully completed and ready for commercial operation. 

Phase C, encompassing an additional 300 MW, contributed to the complete plant achieving commercial operation with a total capacity of 900 MW. 

The plant utilizes bifacial photovoltaic technologies, which harness reflected solar rays on both the front and back sides, in conjunction with a single-axis tracking system, to enhance energy production.

Shuaa Energy 3 is a special purpose vehicle established to develop the fifth phase of the solar park, and is also owned by the Dubai Electricity and Water Authority and Gulf Investment Corporation.

Together with ACWA Power, they have entered into a 25-year power purchase agreement to generate clean energy, aligning with Dubai Clean Energy Strategy 2050.

Earlier in May, ACWA Power signed a power purchase agreement with the National Electric Grid of Uzbekistan for the Aral 5-gigawatt wind power project worth SR18.2 billion ($4.85 billion).

Under the terms of the deal, ACWA Power will build, own, operate, and transfer the wind farm at the end of the 25-year contract term.

The project, located in Uzbekistan, is in the development stage and total investment value may change when it reaches financial close, according to the company’s statement.

On the same day, the Saudi utility firm also signed a senior debt financing agreement for the Qassim 1 Combined Cycle Power Plant for SR5.69 billion.

The deal, signed through Qudra One Electricity Co., will extend 28 years, according to ACWA Power’s statement to Tadawul.

The senior debt was financed by a combination of international and local commercial lenders, including Standard Chartered Bank, Bank of China, Riyad Bank, as well as Saudi National Bank, Alinma Bank, Saudi Investment Bank, and Saudi Awwal Bank.

The plant capacity is 1,800 MW.

Topics: energy ACWA Power Shuaa Energy 3 solar power

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UAE banking sector’s liquid assets surpass $218bn: CBUAE 

UAE banking sector’s liquid assets surpass $218bn: CBUAE 
Updated 30 sec ago
MIGUEL HADCHITY 
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UAE banking sector’s liquid assets surpass $218bn: CBUAE 

UAE banking sector’s liquid assets surpass $218bn: CBUAE 
Updated 30 sec ago
MIGUEL HADCHITY 

RIYADH: The UAE banking sector’s liquid assets reached 801.52 billion dirhams ($218.2 billion) by the end of the second quarter of 2024, reflecting a 20.2 percent year-on-year increase, official data showed. 

According to the latest report from the Central Bank of the UAE, the increase reflects a jump from 666.6 billion dirhams in the same period last year. On a quarter-on-quarter basis, it increased by 2 percent, or 14.9 billion dirhams, compared to 786.6 billion dirhams at the end of the first quarter of this year. 

Liquid assets accounted for 18.9 percent of the sector’s total assets, which reached 4.2 trillion dirhams by June.  

This comes as the UAE banking sector demonstrates strong growth and resilience amid global challenges. The CBUAE has supported this expansion with record increases in assets, credit, deposits, and investments, while maintaining robust capital efficiency and reserves.   

The report also highlighted the UAE banking system’s strong capitalization, with a total capital adequacy ratio of 18.3 percent at the end of the second quarter, improving from 18 percent in the first three months of the year, and 17.9 percent in the last quarter of 2023.  

This ratio remained significantly above the minimum regulatory requirement of 13 percent, including a 2.5 percent capital buffer and a minimum Tier 1 capital ratio of 8.5 percent. 

This metric, which measures core capital, stood at 17 percent at the end of the second quarter of 2024, up from 16.7 percent in the first three months of the year and 16.6 percent in the fourth quarter of 2023.  

Meanwhile, the Common Equity Tier 1 ratio, a key measure of a bank’s financial strength, rose to 15.3 percent, up from 15 percent in the inaugural quarter of 2024 and 14.9 percent in the last quarter of 2023. 

The UAE banking sector has demonstrated growth and stability in recent months, with the net international reserves seeing a surge of 29 percent, totaling 1.23 trillion dirhams by the end of May. This total includes 763.88 billion dirhams held by the CBUAE and 472.68 billion dirhams held by other banks operating in the UAE.  

In conjunction with this, CBUAE’s gold reserves grew by 19.7 percent year on year, reaching 20.61 billion dirhams. The gold reserves also saw a 1.3 percent increase in May compared to April.   

Time deposits increased by 17 percent to 842.98 billion dirhams, while demand deposits grew over 10 percent to 1.04 trillion dirhams. UAE Funds Transfer System transactions reached 7.9 trillion dirhams by May, up 17 percent from the previous year. 

Topics: Finance UAE banking Central Bank of the UAE

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Oil Updates – prices climb on US output concerns, potential crude inventory drop

Oil Updates – prices climb on US output concerns, potential crude inventory drop
Updated 17 September 2024
Reuters
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Oil Updates – prices climb on US output concerns, potential crude inventory drop

Oil Updates – prices climb on US output concerns, potential crude inventory drop
Updated 17 September 2024
Reuters

SINGAPORE: Oil prices extended gains on Tuesday as the market eyed US output concerns in the aftermath of Hurricane Francine and expectations of lower US crude stockpiles.

Brent crude futures for November were up 36 cents, or 0.5 percent, at $73.11 a barrel, as of 9:35 a.m. Saudi time. US crude futures for October climbed 53 cents, or 0.8 percent, to $70.62 a barrel.

Both contracts settled higher in the previous session as the impact of Hurricane Francine on the output in the US Gulf of Mexico countered Chinese demand concerns ahead of the US Federal Reserve’s interest rate cut decision this week, which should prove positive for investor sentiment in oil.

More than 12 percent of crude production and 16 percent of natural gas output in the US Gulf of Mexico remained offline, according to the US Bureau of Safety and Environmental Enforcement on Monday.

“Oil prices managed to recover slightly ... (An) extreme bearish state over the past weeks called for some near-term stabilization, with prices previously touching their lowest level since 2021,” said Yeap Jun Rong, market strategist at IG.

“But a weaker-than-expected run in China’s economic data lately could still be a source of caution, while the lead-up to the upcoming FOMC interest rate decision may limit some risk-taking,” Yeap added, referring to the Federal Open Market Committee.

The Fed is expected to start its easing cycle on Wednesday, with Fed funds futures showing markets are now pricing in a 69 percent chance the central bank will cut rates by 50 basis points.

“Growing expectations of an aggressive rate cut boosted sentiment across the commodities complex,” ANZ analysts said in a note, adding that supply disruptions also supported oil markets.

A lower interest rate will reduce the cost of borrowing and can potentially lift oil demand by supporting economic growth.

Investors also eyed an expected drop in US crude inventories, which likely fell by about 200,000 barrels in the week ended Sept. 13, based on a Reuters poll.

Still, lower-than-expected demand growth in China, the world’s largest crude importer, have capped price gains. China’s oil refinery output fell for a fifth month in August amid declining fuel demand and weak export margins, government data showed on Saturday.

Topics: energy oil updates oil prices

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Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes

Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes
Updated 17 September 2024
Reuters
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Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes

Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes
Updated 17 September 2024
Reuters

ABU DHABI, Sept 16 : Wizz Air expects 15-20 percent growth in passenger volume next year, its CEO told Reuters, with new low-cost routes to the Middle East, such as from Europe to the UAE, adding an extra boost.

“Globally, we are expecting 15-20 percent (growth), but I think Abu Dhabi is going to grow beyond this,” Jozsef Varadi said.

Hungary-based Wizz Air, which carried a record 62 million passengers during the year ended in March 2024, set up operations in the UAE in 2019 as a joint venture with Abu Dhabi’s third biggest sovereign wealth fund ADQ.

In the Middle East, where concerns of a wider flare up of the war in Gaza have prompted international airlines to suspend flights or avoid air space, Wizz Air is monitoring every development, Varadi said.

He added that Wizz Air wants to develop Saudi Arabia as an inbound market rather than setting up a local carrier there.

The airline, which flies an all-Airbus fleet, last week announced it would deploy its first A321XLR, a single-aisle aircraft that will allow it to cover longer distances, to operate a route between London’s Gatwick airport and Saudi Arabia’s Jeddah starting from March 2025.

Another A321XLR aircraft will operate a daily flight between Milan Malpensa airport and Abu Dhabi starting from June next year.

“Certainly we are very excited about Jeddah,” Varadi said. “We are seeing that more European operations might be flown inbound to Saudi in the future.”

He said, however, that all new routes were subject to regulatory approvals and capacity constraints due to troubles with Pratt & Whitney engines, which forced

Wizz Air to ground part of its fleet, contributing to a 44 percent drop in first-quarter operating profit.

As the aviation sector struggles with delays from manufacturers Boeing and Airbus, European airlines have also faced a difficult first half of the year because of rising and softening demand after an initial post-pandemic boom.

Wizz Air’s London-listed shares dropped almost 42 percent over the last 12 months.

“I don’t think that the share price is reflective of the actual performance of the business,” said Varadi.

He said the market was over-reacting and Wizz Air was being “disproportionately affected” by factors such as geopolitics and problems with Pratt and Whitney’s engines.

Asked about fares, Varadi said summer data showed Wizz Air was not seeing as huge price declines as those that some rivals had flagged.

Topics: Tourism & Transport Wizz Air Saudi aviation

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Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal

Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal
Updated 16 September 2024
Nour El-Shaeri
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Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal

Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal
Updated 16 September 2024
Nour El-Shaeri

RIYADH: Saudi Arabian Mining Co., known as Ma’aden, has signed a non-binding agreement with Aluminium Bahrain B.S.C., or Alba, to potentially create a global aluminum producer.

The agreement, dated Sept. 16, outlines plans to merge Ma’aden’s aluminum operations with Alba’s, forming a force in the global aluminum market.

The deal aims to leverage over 75 years of combined operational and financial expertise to enhance their competitive edge on the global stage, according to a press release.

Under the terms of the agreement, Ma’aden will transfer the entire share capital of Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to Alba, including the rights to market and sell products from Ma’aden Aluminum Co.

In exchange, Ma’aden will acquire newly issued shares in Alba. The specifics regarding the number of shares and Ma’aden’s ownership stake in Alba will be determined at a later date, as noted in a bourse filing.

This announcement comes on the heels of a deal made just a day earlier, in which US industrial giant Alcoa Corp. agreed to sell its stakes in Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to Ma’aden.

In this transaction, Alcoa will receive $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma’aden’s share capital after the deal is completed.

The agreement with Alba also includes the possibility of a cross-listing on the Saudi Stock Exchange, pending further negotiations. The deal is effective immediately and will remain valid until Dec. 31.

It aligns with Ma’aden’s growth and sustainability strategy, aiming to strengthen its presence in Saudi Arabia and the broader Middle East region.

“Harnessing the combined scale and expertise of both businesses to forge a new global champion will not only advance Ma’aden’s ambitions for aluminum but also significantly boost the economic ties between Bahrain and Saudi Arabia,” Ma’aden CEO Bob Wilt said.

“By bringing together two of the region’s most experienced players in the sector, we are setting the stage for stronger economic growth, enhanced job creation, and increased aluminum production capacity. This partnership will elevate our competitive edge on a global scale,” he added.

Echoing Wilt’s sentiments, Alba Chairman Khalid Al-Rumaihi said this partnership will cement the company’s position as the largest regional aluminum producer.

“Our partnership will not only deepen the strong ties between Bahrain and Saudi Arabia but also contribute to Bahrain’s economic diversification and job creation. This is a compelling proposition and an exciting moment for Alba, Ma’aden, and our respective stakeholders, and we look forward to sharing further updates in due course,” Al-Rumaihi said.

The financial impact of the transaction will be assessed following a comprehensive due diligence process.

Completion of the deal is not guaranteed and depends on the satisfactory conclusion of financial, tax, legal, technical, and commercial evaluations, as well as obtaining necessary regulatory and corporate approvals.

Ma’aden has engaged Merrill Lynch Kingdom of Saudi Arabia as its financial adviser and AS&H Clifford Chance as its legal adviser. Alba has appointed Moelis & Co. UK LLP as its financial adviser.

This development comes as Ma’aden reports strong financial performance, with a net profit of SR2 billion ($532 million) for the first half of the year, marking a 160 percent increase compared to the same period in 2023.

Topics: main

Saudi investment licenses for Egyptian firms double in 2024, says minister 

Saudi investment licenses for Egyptian firms double in 2024, says minister 
Updated 16 September 2024
Reem Walid
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Saudi investment licenses for Egyptian firms double in 2024, says minister 

Saudi investment licenses for Egyptian firms double in 2024, says minister 
Updated 16 September 2024
Reem Walid

RIYADH: Saudi Arabia’s issuance of investment licenses to Egyptian businesses more than doubled in 2024, reflecting a significant boost in economic collaboration between the two nations, according to a senior minister.

At a meeting with Egyptian Prime Minister Mostafa Madbouly, organized by the Federation of Chambers in Riyadh, Saudi Investment Minister Khalid Al-Falih underscored Egypt’s increasing role as a key economic partner for the Kingdom. This follows Saudi Arabia’s exports to Egypt totaling $6.44 billion in 2022, while Egypt’s exports to the Kingdom reached $2.35 billion, as reported by the Observatory of Economic Complexity.

“During 2024, it (investment licenses) grew by more than 100 percent over the previous year, and Egyptian investors created more than 80,000 jobs in the Saudi economy,” the minister said.

He further emphasized the importance of the Egyptian market to the Kingdom, noting its broad involvement in sectors such as tourism, transportation, infrastructure, real estate development, agriculture, energy, and information technology.

“We, in the Kingdom, believe that strengthening cooperation with Egypt will benefit both the Saudi and Egyptian economies, which are, as I mentioned, the nucleus and heart of the Arab economy,” Al-Falih added.

The minister also pointed out that collaboration and integration between the two countries, along with leveraging their competitive advantages, would accelerate regional economic growth. He highlighted the relevance of this cooperation in light of global economic shifts supporting global supply chains, environmental preservation, and emerging sectors like information technology and artificial intelligence.

“The Saudi investor will not only provide Egypt with his investments but will be a partner with international companies that invest with him in the Kingdom and in all countries of the world. We aspire for Egypt to be an extension of investments in the Kingdom, giving us the weight of the large strategic market and the free trade agreements that Egypt enjoys,” he concluded.

During the meeting, Prime Minister Madbouly noted that Saudi Arabia remains the primary destination for Egyptian expatriates. “Our goal is to raise Egyptian exports from $35 billion to $145 billion,” he said.

Madbouly also emphasized Egypt’s efforts to resolve issues faced by Saudi investors, stating that many problems have been addressed, with ongoing work to tackle remaining challenges. He highlighted Egypt’s aim to attract more Saudi investments, especially with new incentives such as the golden license.

Egypt’s Minister of Investment and Foreign Trade, Hassan El-Khatib, who also attended the meeting, stressed the importance of listening to investors. “We know the challenges that the investor faces and find solutions to them,” he stated.

El-Khatib added: “The goal in this field is for me to have a clear investment policy that puts the competitiveness of the Egyptian economy at the heart of this strategy.”

Topics: main

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