Aramco to buy 10 percent stake in Renault-Geely thermal engines venture
Aramco to buy 10 percent stake in Renault-Geely thermal engines venture/node/2539711/business-economy
Aramco to buy 10 percent stake in Renault-Geely thermal engines venture
Saudi Aramco will buy a 10 percent stake in a thermal engines joint venture between French carmaker Renault and Chinese automaker Geely, the companies said on Friday. (Supplied)
Aramco to buy 10 percent stake in Renault-Geely thermal engines venture
Geely and Renault will own around 45 percent each of the powertrain venture, called Horse Powertrain
Updated 30 June 2024
Arab News
LONDON: Saudi Aramco will buy a 10 percent stake in a thermal engines joint venture between French carmaker Renault and Chinese automaker Geely, the companies said on Friday, valuing the business at €7.40 billion ($7.93 billion).
Geely and Renault will own around 45 percent each of the powertrain venture, called Horse Powertrain, which will supply gasoline engines, hybrid systems and gearboxes for thermal vehicles.
Renault CEO Luca de Meo described the deal in a statement as creating a “dream team” that would “reinvent” the future of combustion-engine and hybrid technologies.
“Aramco’s stake in the thermal engine joint venture could stabilize investments in legacy automakers, providing a safety net amidst the electric shift,” investor platform Finimize wrote, ahead of the official announcement.
“Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally, Ahmad O. Al-Khowaiter, Aramco executive vice president of technology and innovation, said.
“With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies.
“With a strong emphasis on innovation, our goal is to provide solutions that can help reduce transport greenhouse gas emissions while meeting the needs of both vehicle manufacturers and motorists. In securing long-term partnership between Valvoline Global and Horse Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level,” he added.
Aramco, which this month raised around $11.2 billion through a secondary share sale, had originally signalled it would buy a 20 percent stake in Horse Powertrain.
The company signed a letter of intent in March 2023 with a view to possibly becoming a minority shareholder in the venture.
Horse Powertrain was formally established on May 31.
“I am delighted that Aramco has joined Horse Powertrain Limited. Their expertise in fuels and hydrogen makes them a great partner for us to deliver cutting-edge, lower-emission powertrain solutions, driving our industry’s carbon mitigation efforts forward. Together, we will set new benchmarks for innovation in the automotive sector,” CEO Matias Giannini said.
Saudi Arabia launches March ‘Sah’ savings with 4.98% return
Updated 20 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has launched the third round of its Sah savings product for 2025, offering a 4.98 percent return for March under the Ijarah sukuk structure.
Issued by the Ministry of Finance and managed by the National Debt Management Center, Sah is the Kingdom’s first savings bond designed for individuals. It operates under the Ijarah format, a Shariah-compliant structure akin to leasing, where investors receive returns in exchange for the right to use an asset.
The offering, part of the local bond program and denominated in riyals, aligns with Saudi Vision 2030’s goal of increasing the national savings rate from 6 percent to 10 percent by the end of the decade.
The NDMC said the format will be retained for future issuances as part of ongoing efforts to offer accessible, low-risk savings solutions.
The latest issuance opened at 10:00 a.m. Saudi time on March 2 and will close at 3:00 p.m. on March 4. Redemptions are expected within a year, according to an NDMC post on X.
The bonds, available through digital platforms of approved financial institutions, feature a one-year savings period with fixed returns paid at maturity. The minimum subscription is SR1,000 ($266), while the maximum is SR200,000 per user across all issuances during the program period.
The product is fee-free and offers low-risk returns. Eligible Saudi nationals aged 18 and older can subscribe through Aljazira Capital, Alinma Investment, and SAB Invest, as well as Al-Rajhi Capital and SNB Capital.
In January, the NDMC announced the closure of the year’s first issuance, allocating SR3.724 billion across four tranches. The first tranche, valued at SR1.255 billion, matures in 2029, while the second, worth SR1.405 billion, matures in 2032. The third totaled SR1.036 billion with a 2036 maturity, and the fourth, at SR28 million, matures in 2039.
The previous issuance, which closed on Feb. 4, offered a 4.94 percent return, while the first 2025 issuance concluded on Jan. 7 with a 4.95 percent return. Future rates will depend on market conditions.
Oman’s FDI jumps 17.6% over five years, reaching $69.3bn by Q3 2024
Updated 19 min 19 sec ago
Miguel Hadchity
RIYADH: Oman’s foreign direct investment inflows rose by over 17.6 percent over the past five years, reaching 26.6 billion Omani rials ($69.3 billion) by the third quarter of 2024.
As reported by the Oman News Agency, this significant growth highlights the country’s success in solidifying its position as a key global investment hub. The rise has been fueled by strategic initiatives, a conducive capital environment, and advanced infrastructure.
This increase in Oman’s FDI aligns with a global rise of 11 percent in FDI flows in 2024, which reached $1.4 trillion. However, developing Asia saw a 7 percent decline in its FDI inflows, according to the UN Conference on Trade and Development.
According to the National Center for Statistics and Information, the UK led the way with investments totaling 13.6 billion rials, followed by the US with 5.2 billion rials. The UAE contributed 836.5 million rials, while Kuwait invested 833.5 million rials. China invested 817.8 million rials, and Switzerland added 551.9 million rials.
Qatar’s investments in Oman reached 488.3 million rials by the end of the third quarter, with Bahrain contributing 375.7 million rials. Investments from the Netherlands and India amounted to 359.1 million rials and 286.1 million rials, respectively.
Oman’s Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al-Yousef highlighted that high-level directives aimed at improving the capital climate have played a key role in building a promising economic future.
He emphasized that positive indicators in the investment sector reflect the success of Oman’s policies and initiatives in creating a robust environment for attracting projects, as reported by the state-run news agency.
Al-Yousef further noted that efforts to establish the Investment and Commercial Court highlight the government’s commitment to fostering a stable legal framework that encourages foreign investment. The ministry is also focused on offering competitive incentives and streamlining business operations within a dynamic market.
He concluded by emphasizing that improving the investment and business environment remains a top priority for promoting sustainable development. The ministry is actively working on initiatives aimed at diversifying the national economy and generating job opportunities across various sectors.
Ibtisam Ahmed Said Al-Farooji, undersecretary at the Ministry of Commerce, Industry, and Investment Promotion, stated that Oman’s investment sector is actively reviewing and evaluating its investment policies, laws, and incentives.
She further explained that investment opportunities undergo comprehensive feasibility studies before being presented to investors. This thorough evaluation helps drive capital into targeted sectors, enhances economic diversification, and boosts non-oil revenues, thereby strengthening investor confidence and improving Oman’s competitiveness.
The government is focusing on key sectors aligned with the Oman Vision 2040 strategy. These sectors include transportation and logistics, renewable energy, information technology, food security, tourism, mining, and manufacturing. Supportive industries such as the circular economy, healthcare, and education are also part of the focus.
Al-Farooji highlighted that the manufacturing sector attracted 2.13 billion rials in FDI, followed by financial intermediation with 1.36 billion rials, and real estate activities with 969.1 million rials.
The ministry has organized investment opportunities through the “Invest in Oman” platform, showcasing 20 opportunities in sectors such as tourism, real estate development, aviation, logistics, and manufacturing.
Industrial lands have been allocated in collaboration with the Public Establishment for Industrial Estates, which has sparked investor interest in the industrial cities of Rusayl, Sohar, and Samail.
In 2024, the ministry promoted Oman on the international stage at 21 events, welcomed delegations from 23 countries, hosted eight local promotional forums, and targeted six G20 countries and four markets in collaboration with the Oman Chamber of Commerce and Industry.
Nasser bin Khalifa Al-Kindi, CEO of Invest in Oman, explained that the “Invest in Oman” lounge brings together government institutions under one roof, streamlining the investor journey.
The lounge is designed to attract high-capital investors to strategic sectors and serves as a digital gateway to promote Oman’s investment environment and present new opportunities.
He also noted that 59 investment projects worth 3.2 billion rials are currently under review, with 29 initiatives valued at 1.2 billion rials already localized.
India, China, and Egypt are the top investing countries in Oman, with the industrial sector leading the way in attracting investments, followed by renewable energy and healthcare.
Abu Dhabi Customs sees record 72% pre-arrival clearance rate in 2024
Updated 44 min 49 sec ago
Nirmal Narayanan
RIYADH: Abu Dhabi Customs recorded a 72 percent pre-arrival clearance rate in 2024, marking a significant increase as the emirate accelerates digital transformation and streamlines trade operations.
The figure represents a sharp rise from 47 percent in 2023, reflecting a 53 percent annual growth rate, according to the UAE’s state news agency WAM.
The surge underscores efforts to enhance digital customs processes, integrate advanced technologies, and optimize clearance systems.
Pre-arrival clearance for outbound shipments accounted for 85 percent of total exit declarations in 2024, up from 67 percent a year earlier, while inbound shipments made up 60 percent of entry declarations, compared with 31 percent in 2023. Abu Dhabi Customs has also automated the issuance of entry and exit customs certificates to expedite processing.
Pre-arrival customs clearance, available through smart platforms like the Abu Dhabi Government Services Platform, or TAMM, and the Advanced Trade and Logistics Platform, or ATLP, enables importers, exporters, and their representatives to complete customs procedures before goods reach customs centers. This process includes submitting declarations, paying duties, meeting regulatory requirements, if applicable, and finalizing procedures in advance, streamlining operations and improving efficiency.
Freight clearance and shipping companies have benefited from electronic integration with regulatory entities and service-level agreements with key stakeholders, reducing transaction times.
In August, Abu Dhabi Customs reported that the average time for customs clearance transactions in the first half of 2024 was 13.86 minutes, down from 15.47 minutes in the same period of 2023.
In December, the General Administration of Abu Dhabi Customs launched its 2024–2028 Strategic Plan, focused on facilitating secure and legitimate trade through advanced innovations and digital technologies.
The plan is built on six pillars, including enhancing customer experience to position Abu Dhabi as a preferred trade hub, increasing revenue collection, and driving economic growth and competitiveness.
It also emphasizes fostering a culture of excellence through innovation and sustainability, developing professional talent for the future of customs, and leveraging technology to achieve digital leadership.
In November, Abu Dhabi Customs signed an agreement with Brazil’s Tax Authority to launch the pilot phase of the Trusted Digital Trade Corridor project.
The initiative aims to enhance trade, simplify customs procedures, reduce transaction times, strengthen data security, and improve cross-border trade efficiency through advanced technology and digital transformation.
Corporate lending pushes Saudi bank loans past $800bn for the first time
Updated 02 March 2025
Dayan Abou Tine
RIYADH: Saudi bank loans surpassed the SR3 trillion ($801.6 billion) mark for the first time in January, registering a 14.66 percent year-on-year increase.
According to figures from the Saudi Central Bank, also known as SAMA, this growth marks the fastest expansion since October 2022 and is primarily driven by a surge in business financing.
Corporate loans grew 18.5 percent over the past year, outpacing the 10.5 percent rise in retail lending. As a result, corporate credit now accounts for 54.09 percent of total bank lending, up from 52.34 percent in 2024.
Among business sectors, real estate activities continued to command the largest share of corporate loans, making up 21.13 percent of total business lending in January. Loans to this sector surged 30.57 percent year-on-year to SR343.6 billion.
The strong demand for real estate financing aligns with the sector’s growing role in the Saudi economy.
According to the General Authority for Statistics, real gross domestic product from real estate activities reached SR176.18 billion in the first nine months of 2024, accounting for around 7 percent of gross value added.
This marks an increase from SR172 billion in the same period last year, highlighting the sector’s expanding contribution to economic output.
The wholesale and retail trade sector followed, with credit facilities totaling SR204 billion, or 12.54 percent of total corporate loans. Meanwhile, manufacturing accounted for 11.7 percent, with loans rising to SR190.2 billion.
While professional, scientific, and technical activities hold a smaller share of total corporate lending at 0.52 percent, they recorded the highest annual growth rate, soaring 34.2 percent to SR8.38 billion.
Similarly, education loans saw a 33.17 percent increase to SR8.43 billion, while financing for financial and insurance activities grew 32.06 percent to SR137.62 billion.
Real estate boom
The real estate boom has been a key driver of credit expansion, fueled by population growth, rapid urbanization, government-backed initiatives such as the Sakani housing program, and large-scale developments like NEOM, ROSHN, and Diriyah Gate.
The surge in demand for housing and commercial properties has led to increased borrowing by developers and investors looking to capitalize on the sector’s momentum.
Meanwhile, wholesale and retail trade have benefited from rising consumer spending, an expanding middle class, and the rapid growth of e-commerce, which has driven investment in logistics, supply chains, and retail infrastructure.
Government efforts to boost domestic manufacturing and reduce import dependency have also strengthened lending to the industrial sector, particularly in pharmaceuticals, automotive production, and food processing. Incentives and subsidies have further supported local production.
The professional, scientific, and technical services sector has seen robust credit growth as businesses and government projects accelerate digital transformation and infrastructure development, increasing demand for engineering, consultancy, and IT services.
Similarly, the education sector has experienced significant lending expansion, driven by private sector investment in schools, universities, and vocational training centers as part of the Kingdom’s push to develop human capital and align workforce skills with evolving job market demands.
Financial and insurance activities have also emerged as a key growth area, with lending surging due to the expansion of fintech startups, digital banking, and capital market activity. The rise of investment funds, initial public offerings, and sukuk issuances has created new financing opportunities, reflecting Saudi Arabia’s ambition to position itself as a regional financial hub. ‘
Affordability challenges
The Kingdom’s commercial real estate market is grappling with affordability challenges as strong demand and rapid economic expansion push prices higher.
The rise in business activity, foreign investment, and large-scale infrastructure projects has intensified competition for prime commercial spaces, particularly in major urban centers like Riyadh and Jeddah.
As Saudi Arabia continues to position itself as a global business hub, companies are facing mounting pressure to secure office and retail spaces at rising costs.
Recent data from the GASTAT showed that commercial real estate prices rose 5 percent year-on-year in the fourth quarter of 2024, driven primarily by a 5.2 percent increase in commercial land plot prices and a 5.1 percent rise in building costs.
The Real Estate Price Index, a key measure of property price movements, recorded an overall 3.6 percent annual increase in the fourth quarter.
While residential real estate had the largest impact on the index due to its higher weighting, commercial real estate prices saw sharper increases in specific subcategories, highlighting the growing cost burden on businesses.
Several factors are driving this sustained rise in commercial real estate prices. The Kingdom’s Vision 2030 initiatives, focusing on economic diversification and attracting multinational corporations, have significantly boosted demand for office spaces and commercial land.
Saudi Arabia’s Regional Headquarters Program, designed to encourage global firms to establish regional offices in the country, has further fueled demand in key business districts, particularly in Riyadh, where commercial real estate prices jumped 10.2 percent.
Initiatives such as NEOM, Diriyah Gate, and Qiddiya have also contributed to rising property values as businesses seek to position themselves near these emerging economic zones.
At the same time, the supply of prime commercial properties remains relatively constrained, adding further pressure on prices.
While the influx of international businesses has strengthened market dynamics, it has also made affordability a growing concern, particularly for small and medium enterprises.
Despite these challenges, Saudi Arabia remains one of the region’s most attractive commercial real estate markets, supported by strong economic growth, government incentives, and an expanding business ecosystem.
However, ensuring that commercial spaces remain accessible to a broad range of businesses may require policy adjustments, such as increasing the supply of office spaces, revising zoning regulations, or offering incentives to support SMEs.
As demand for commercial real estate rises, balancing growth with affordability will be crucial in sustaining the Kingdom’s economic momentum.
Will Trump strike gold with wealthy Arabs through new residency program?
New $5 million “gold card” visa scheme makes the US a competitive destination for high-net-worth individuals from the region
Analysts say Saudi and Gulf investors could be key participants, given their history of investing in US real estate and technology
Updated 02 March 2025
Miguel Hadchity
RIYADH: US President Donald Trump’s $5 million “gold card” visa is expected to draw wealthy Arab investors seeking economic stability, US market access, and residency prestige, experts say.
With Gulf nations, including Saudi Arabia, successfully running their own golden visa programs, Trump’s initiative positions the US as a competitive destination for high-net-worth individuals from the region, offering them a gateway to business expansion, real estate investment, and financial security.
USCIS handout photo
Salman Al-Ansari, a geopolitical analyst and former investor in the US, told Arab News that the initiative could strengthen economic ties between the US and the Arab world, particularly Saudi Arabia, while driving investments into key industries.
“Saudi investors have always been keen on expanding into the US market, particularly in sectors like technology, real estate, and energy. A more accessible visa process could encourage even greater collaboration and economic integration between both countries,” Al-Ansari said.
The new initiative will replace the existing EB-5 visa program, which was established in 1990, and is expected to help reduce the national deficit. The EB-5 program grants foreign investors a green card for investing around $1 million in a US business that creates or sustains at least 10 full-time jobs for local workers.
Trump said the initiative will not only bring in revenue but will also lead to job creation as wealthy individuals establish businesses and expand existing ventures on US soil.
“A lot of people are going to want to be in this country, and they’ll be able to work and provide jobs and build companies,” Trump said in the Oval Office announcement. “It’ll be people with money.”
Trump told reporters that investors could come to the US, obtain a green card through the president’s initiative, and contribute financially, with the generated funds helping to reduce the national deficit.
Despite growing global competition, the US remains a uniquely attractive destination for investors. Julien Hawari, founder and CEO of UAE-based content monetization platform Million, explained to Arab News what sets the US apart from similar visa programs worldwide.
Julien Hawari, founder and CEO, CEO of UAE-based content monetization platform Million. (Supplied)
“The speed, depth, and range of opportunities are exceptional. I believe the USA under a Trump administration could become even more attractive, with a significant number of decision-makers coming from the private sector — people like (Elon) Musk, for example,” Hawari said.
Trump described the program as a “green card-plus” and a path to citizenship. He expressed confidence in its appeal, calling it a “treasured” opportunity and noting that sales were expected to begin within about two weeks.
Secretary of Commerce Howard Lutnick, standing alongside Trump during the announcement, said: “Rather than having the EB-5 program, which was full of nonsense and fraud, we are replacing it with a program that is simple, straightforward, and brings in direct financial benefits.”
Deemed to be "full of nonsense and fraud" by the Trump administration, the EB -Visa scheme may soon be replaced.
For some, this marks a strategic shift in US immigration policy. Al-Ansari sees this as an extension of Trump’s “America First” strategy.
“President Trump has been constant in his ‘America First’ approach, and I see his golden visa initiative as a case of quality over quantity,” he said.
“The US has always been a magnet for immigrants, and this policy ensures that those entering contribute meaningfully to the economy. It aligns with the American ethos — rewarding entrepreneurship, talent, and investment.”
The Trump administration’s gold card initiative represents a major shift in US immigration policy, focusing on direct financial investment rather than traditional employment-based or family-sponsored immigration.
Many countries, including Portugal, Canada, and Australia, offer similar programs, but the high price tag of the US gold card positions it as a premier option for the global elite.
US Citizenship and Immigration Services office located in Las Vegas. (USCIS Handout photo)
Hawari noted that the success of golden visa programs in other regions, such as the Gulf Cooperation Council, may provide insight into how the US initiative could play out. “Look at the GCC — they have done a phenomenal job,” he said.
“Over the past decade, the number of companies and ultra-high-net-worth individuals moving to the region has been incredible. This shift has had a massive impact on their economy and overall transformation, from real estate to investments and beyond.”
Hawari explained that the US program “could have a similar effect.” However, he noted that the GCC’s success means the US program will face strong competition as one of several options. “I think people will end up choosing between these two, as they are now the most attractive destinations,” he added.
Al-Ansari noted: “Saudi Arabia, where I’m from, has launched a similar initiative called the Golden Residency. It has successfully attracted thousands of individuals who have contributed to the Saudi economy, and it continues to thrive.”
He added that bureaucratic hurdles had previously made obtaining a business visa challenging and suggested that the new program could simplify the process, potentially attracting more high-value investments into the American market.
However, he expressed his concern about the linkage between the golden visa and the green card. “I’m not sure if investors, including myself, would want permanent residency, as it comes with tax obligations on all global income under the FATCA (Foreign Account Tax Compliance Act) law. It would be more attractive if the golden visa were a standalone option, rather than bundled with a green card,” he said.
If structured correctly, the initiative could lead to a wave of high-net-worth individuals moving their businesses and assets to the US, benefiting key metropolitan areas and industries.
The success of the golden visa programs in other regions, such as the Gulf Cooperation Council, may provide insight into how the US initiative could play out. (Shutterstock)
Al-Ansari said sectors like tourism, manufacturing, and services were likely to benefit. Hawari echoed this sentiment, pointing out that specific sectors stand to gain significantly from an influx of high-net-worth individuals.
“If you look at the GCC, almost every industry benefited. Maybe manufacturing didn’t benefit as much, along with some sectors that require longer-term investment. But overall, most industries saw a positive impact — and I expect the same in the US, with real estate, technology, hospitality, and finance likely leading the way,” he said.
Saudi Arabia introduced its permanent residency scheme, commonly known as the Saudi Green Card, in 2019 as part of its Vision 2030 plan. The program offers permanent residency for SR800,000 ($213,000) or an annually renewable residency for SR100,000. It aims to attract skilled expatriates and investors, boosting economic diversification and increasing the private sector’s contribution to gross domestic product.
Similarly, the UAE launched its Golden Visa in 2019, offering renewable 5 to 10-year residency permits for investors, entrepreneurs, and professionals in fields such as science, technology, and healthcare. The visa allows holders to live, work, and study in the UAE without a national sponsor and grants them the ability to sponsor family members
Night view of Riyadh's skyline. (Getty Images)
Qatar has also taken steps to attract investors by liberalizing its property market and expanding foreign ownership opportunities through its Investment Residence Program. These measures have particularly benefited the real estate sector, which experienced a boost leading up to the 2022 FIFA World Cup.
Across the GCC, these programs are strategically designed to drive foreign investments, strengthen key economic sectors such as real estate, hospitality, and services, and support long-term sustainable development.
Similarly, the newly unveiled US “gold card” program aims to attract high-net-worth individuals by offering a pathway to residency in exchange for investment.
As details emerge in the coming weeks, the initiative is expected to draw attention, particularly its potential to bring substantial foreign capital into the US economy and real estate market while bolstering key industries.
