Saudi environment minister launches financial support program to propel fisheries sector
Saudi environment minister launches financial support program to propel fisheries sector/node/2549586/business-economy
Saudi environment minister launches financial support program to propel fisheries sector
Abdulrahman Al-Fadhli will oversee the financial support for the Reef Saudi program, which aims to open new horizons for the development of the fisheries sector. Shutterstock
Saudi environment minister launches financial support program to propel fisheries sector
Updated 14 July 2024
Arab News
RIYADH: Saudi Arabia’s fisheries sector is set to receive a boost thanks to a new direct financial support program launched by the Kingdom’s minister of environment, water and agriculture.
Abdulrahman Al-Fadhli will oversee the financial support for the Reef Saudi program, which aims to open new horizons for the development of the fisheries sector and stimulate the industry, according to a statement.
The Sustainable Agricultural Rural Development Program, or Reef Saudi, seeks to improve the rural agricultural sector to raise the standard of living of small farmers and rural families, increase efficiency and productivity, and improve lifestyle and food security.
This move falls in line with the objectives of the Kingdom’s Vision 2030, as the program is an important step toward achieving several strategic goals, including strengthening the nation’s local economy.
It also aligns well with Saudi Arabia’s Ministry of Environment, Water, and Agriculture’s continuous efforts over the past years to boost the fisheries sector, including establishing a national program to protect fish stocks and the industry as a whole, the provision of concessional loans to assist small-scale fishermen with the purchase of boats, and initiatives to modernize ports in the Red Sea and Arabian Gulf.
Moreover, the program requires that fisherman wishing to obtain support must have a fishing license, in either the Saudi artisan category or Saudi sailor category.
The fisherman should also not be an employee in the public or private sector, be no younger than 18 years old, and be based within the Kingdom during the period, in addition to the duration of each fishing trip being no less than six hours.
Earlier this month, Saudi Arabia highlighted its role in leading and unifying international efforts to develop the fisheries sector during its presidency of a special UN committee dedicated to the industry.
This came during the conclusion of the 36th session of the body, which was held at the headquarters of the Food and Agriculture Organization in Rome and was chaired by the Kingdom’s permanent representative to the FAO, Mohammed Al-Ghamdi.
During the meeting, Saudi Arabia reviewed its most prominent efforts to promote and develop the fisheries sector and achieve its sustainability during its two-year presidency, the Saudi Press Agency reported at the time.
EV Auto Show 2024: Riyadh set for key electric vehicle exhibition, spotlighting Saudi green goals
Updated 22 sec ago
MANAL AL-BARAKATI
RIYADH: The rapidly evolving transport sector in Saudi Arabia is set for a significant boost with the return of the EV Auto Show to Riyadh, taking place from Sept. 17 to 19.
Hosted at the Riyadh International Convention and Exhibition Center, this three-day event aligns with Saudi Arabia’s Vision 2030, emphasizing its commitment to electric vehicles and sustainable technology.
The exhibition is a central event for the Kingdom’s expanding EV ecosystem. It brings together key stakeholders, including automotive manufacturers, charging solution providers, policymakers, and consumers, to discuss the future of mobility in the region.
Attendees will have the chance to explore a variety of EVs, charging solutions, and green technologies. The show will feature interactive seminars and panel discussions, allowing participants to engage with industry experts and innovators.
As Saudi Arabia aims to manufacture and export over 150,000 electric cars by 2026, such events are vital for advancing the shift toward clean technology and sustainable energy sources.
The show also serves as a platform for knowledge exchange, focusing on advancements in battery technology, charging infrastructure, and regulatory developments.
This exchange is crucial for overcoming current challenges and accelerating the Kingdom’s transition to electric mobility.
Shift in perception
Saudi Arabia’s EV market is growing, fueled by government initiatives, public-private partnerships, and increasing consumer interest.
Ravi Ravichandran, president of Ford Middle East, told Arab News: “The electric vehicles market in Saudi Arabia is undergoing rapid expansion, largely driven by the Kingdom’s Vision 2030, which seeks to diversify the economy beyond its traditional reliance on hydrocarbons.”
He noted a rise in consumer interest in EVs, citing a recent survey that shows 40 percent of Saudi consumers are considering purchasing one within the next 12 months. This reflects a growing shift away from traditional internal combustion engine vehicles.
Among those surveyed, hybrid vehicles were the most popular choice, followed by plug-in hybrids and pure battery EVs.
Ravi Ravichandran, president of Ford Middle East. Supplied
Ravichandran added that nearly one third of Saudis are already exploring the EV market. He also highlighted that 81 percent of respondents reported an improved view of electric vehicles over the past year, with many now perceiving them as sleek, enjoyable to drive, and technologically advanced. This indicates a positive shift in public perception.
Infrastructure development
A significant challenge in promoting EV adoption is the development of a comprehensive charging infrastructure.
The Ford executive highlighted that “range anxiety” remains a significant issue for consumers who worry about the availability of charging stations for long trips or daily commutes.
To address this, he added: “The Saudi government, along with regional stakeholders, is actively working to build a robust charging network.”
Electromin is a key player in expanding the charging infrastructure across the Kingdom.
Mark Notkin, chief innovation officer at Electromin, told Arab News: “The widespread implementation of fast charging services across Riyadh hinges on several key factors including governmental incentives, EV adoption rates, regulatory approvals, and partnerships with the private sector.”
These factors will influence the timeline for making fast charging facilities widely available.
Electromin has already installed over 100 chargers across Saudi Arabia, all operated by the company and accessible via its app. The company is focusing on increasing the availability of fast charging services in high-traffic areas, including major malls in Riyadh and Jeddah.
Mark Notkin, chief innovation officer at Electromin. Supplied
Localization and talent development
An essential component of developing a sustainable EV ecosystem is the localization of talent in the infrastructure sector.
Vision 2030 is driving companies to invest in training and hiring local professionals.
Notkin said: “The localization rate of Saudi employees in the EV infrastructure sector is rising, driven by Vision 2030. Companies are increasingly training and hiring local talent in roles such as project management, marketing, and operations.”
This growing localization is expected to continue as the sector expands, contributing to job creation and fostering technological expertise in the Kingdom.
Ravichandran also highlighted the job creation potential, and said: “The expansion of EV manufacturing, charging infrastructure, and related services will generate significant new job opportunities, playing a crucial role in Saudi Arabia’s economic diversification.
“As more local talent is employed in the EV sector, this will in turn foster the transfer of advanced technologies, particularly in battery production, charging solutions, and software development.”
Creating awareness
Increasing consumer awareness about the benefits of EVs is essential for widespread adoption.
However, misconceptions continue to pose barriers. Ravichandran said: “Nearly one-third of Saudis mistakenly believe EV batteries cannot be recycled, half think EVs require routine oil changes, and one-quarter incorrectly assume that EVs still need fuel to operate.”
These misconceptions highlight the need for “targeted education to inform the public about the realities of owning and maintaining an electric vehicle.”
Efforts are underway to enhance consumer understanding of the long-term cost savings associated with EVs. “Consumers need to understand the long-term cost savings, such as reduced fuel consumption and lower maintenance expenses,” said Ravichandran, adding: “Unlike traditional internal combustion engine vehicles, EVs have fewer components to maintain, making them a more cost-effective and reliable option over time.”
Future outlook
Looking ahead, the Saudi EV market is expected to undergo significant evolution over the next five to 10 years, driven by key developments and innovations.
Ravichandran believes that a “pivotal focus will be on accelerating the rollout of advanced charging infrastructure, with particular emphasis on integrating cutting-edge technologies to enhance convenience and efficiency for customers.”
He also highlighted advancements in local manufacturing capabilities, predicting that innovations in EV production processes and materials will likely drive down costs and increase competitiveness.
Oil Updates – prices climb on Fed rate cut outlook
Brent crude futures for November were up 38 cents, or 0.5%, at $71.99 a barrel
US crude futures for October were up 49 cents, or 0.7%, at $69.14 a barrel
Updated 34 min 50 sec ago
Reuters
SINGAPORE: Oil prices rose in Asian trade on Monday amid expectations of a US interest rate cut this week, though gains were capped by persistent demand worries and weaker China data, according to Reuters.
Brent crude futures for November were up 38 cents, or 0.5 percent, at $71.99 a barrel at 10:00 a.m. Saudi time. US crude futures for October were up 49 cents, or 0.7 percent, at $69.14 a barrel.
Both contracts had settled lower in the previous session, with concerns about supply disruptions easing as Gulf of Mexico crude production resumed following Hurricane Francine and as rising data showed a weekly rise in US rig count.
Still, nearly a fifth of crude oil production and 28 percent of natural gas output in the Gulf of Mexico remain offline in the hurricane’s aftermath.
“Markets are focused on upcoming FOMC policy decisions and traders are likely to stay cautious,” said Phillip Nova senior market analyst Priyanka Sachdeva, adding that prices are still supported by some supply worries given some capacity remains offline in the Gulf of Mexico.
The Federal Open Market Committee is expected to make a decision during its Sept. 17-18 meeting.
Fed fund futures show investors are increasingly betting the US central bank will cut by 50 basis points instead of 25 bps, according to CME FedWatch.
Lower interest rates typically reduce the cost of borrowing, which can boost economic activity and lift demand for oil.
However, analysts are concerned that an aggressive rate cut of 50 bps could signal underlying recession worries, which would be a bane for demand.
“A cut of 50 bps from the Fed will likely indicate weakness in the US economy, raising demand concerns for oil,” said OANDA senior market analyst Kelvin Wong in an email.
Optimism in the market was dampened by weaker Chinese economic data released over the weekend, with the low-for-longer growth outlook in the world’s second largest economy reinforcing doubts over oil demand, said IG market strategist Yeap Jun Rong in an email.
Industrial output growth in China, the world’s top oil importer, slowed to a five-month low in August, while retail sales and new home prices weakened further.
“Coupled with increased odds of a deflationary risk spiral in China after industrial production and retail sales growth declined in August, the current rebound in WTI crude oil is likely unsustainable with intermediate key resistance at $72.20/73.15 per barrel,” OANDA’s Wong said.
Oil refinery output also fell for a fifth month as disappointing fuel demand and weak export margins curbed production.
Italy’s Saipem wins $4 billion contract from QatarEnergy
Contract will help boost production at QatarEnergy’s North Field offshore natural gas field
Updated 16 September 2024
Reuters
DOHA: Italian energy engineering group Saipem said on Sunday it had won an offshore contract worth $4 billion from QatarEnergy, one of the world’s top suppliers of liquefied natural gas.
The contract will help boost production at QatarEnergy’s North Field offshore natural gas field, which lies off the northeastern coast of Qatar, Saipem added in a statement.
Earlier this year, Qatar announced an expansion project to boost the North Field’s LNG output to 142 million tons per annum (mtpa) from the current 77 mtpa by 2030.
The Italian group said this month it had won two offshore contracts in Saudi Arabia worth about $1 billion in total, under an existing long-term agreement with oil giant Saudi Aramco.
US firm Alcoa sells stake in Ma’aden JVs for $150m, 2.21% share of new capital
Ma’aden has reported impressive financial results, achieving a net profit of $532 million in the first half of 2024
Transaction will grant Ma’aden full ownership and complete operational and management control of MAC and MBAC
Updated 27 min 51 sec ago
Reem Walid
RIYADH: American industrial giant Alcoa Corp. is set to sell its stakes in Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to the Saudi Arabian Mining Co., or Ma’aden.
The deal will involve Alcoa receiving $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma’aden’s share capital after the transaction.
This move aligns with the US firm’s strategy to deepen its involvement with Ma’aden and underscores its ongoing commitment to the Saudi company.
It also comes at a time when Ma’aden has reported impressive financial results, achieving a net profit of SR2 billion ($532 million) in the first half of 2024, a 160 percent increase compared to the same period in 2023.
Ma’aden CEO Bob Wilt remarked: “Ma’aden formed our joint venture with Alcoa in 2009 to develop a world-class aluminum business. Now, it’s time for our partnership to evolve.”
He added: “Streamlining the management structure of our aluminum business is a crucial step forward as we prepare for future growth and continue to build mining as the third pillar of the Saudi economy.”
Alcoa’s President and CEO William Oplinger stated: “We deeply value our partnership with Ma’aden and our joint ventures. We are confident that under this new arrangement, MBAC and MAC are well-positioned for success.”
He also noted that the transaction would simplify Alcoa’s portfolio, enhance visibility into the value of its investment in Saudi Arabia, and provide greater financial flexibility.
The transaction will grant Ma’aden full ownership and complete operational and management control of MAC and MBAC, streamlining its aluminum business operations. The deal is subject to regulatory and corporate approvals, as well as the completion of other customary closing conditions, with an expected completion by the first quarter of 2025.
Ma’aden’s strong performance and strategic advancements highlight its commitment to leading the mining sector and supporting Saudi Arabia’s economic diversification, particularly in establishing mining as a key pillar of the Kingdom’s industrial sector.
Parallel market Nomu fell by 164.65 points, or 0.63%, to finish at 25,769.95
MSCI Tadawul Index increased by 7.12 points, or 0.48%, ending the day at 1,478.60
Updated 15 September 2024
REEM WALID
RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 57.75 points, or 0.49 percent, to close at 11,900.30 on Sunday.
The benchmark index saw a total trading turnover of SR4.14 billion ($1.10 billion), with 138 stocks advancing and 80 declining.
The Kingdom’s parallel market Nomu fell by 164.65 points, or 0.63 percent, to finish at 25,769.95, as 19 stocks advanced and 46 retreated.
The MSCI Tadawul Index increased by 7.12 points, or 0.48 percent, ending the day at 1,478.60.
The top performer of the day was Saudi Fisheries Co., with its share price surging 9.93 percent to SR25.35.
Other top gainers included Amlak International Finance Co. and Saudi Arabian Cooperative Insurance Co., with their share prices rising by 7.59 percent and 7.36 percent, respectively.
The worst performer was Al-Baha Investment and Development Co., which saw its share price drop by 5.56 percent to SR0.17. Middle East Specialized Cables Co. saw a decline of 1.99 percent, while First Milling Co. dropped by 1.83 percent.
On the announcements front, Riyad Capital, acting as the sole financial adviser, lead manager, bookrunner, and underwriter for Fourth Milling Co.’s initial public offering, has revealed the offering price range and the start of the institutional book-building period.
According to a Tadawul statement, the price range for the offering is set between SR5 and SR5.30 per share, with the book-building period running from Sept. 15 to 19.
The offering includes 162 million ordinary shares, representing 30 percent of Fourth Milling’s current share capital. Participating parties can apply for a minimum of 300,000 shares, with a maximum of 26.99 million shares available.
The financial adviser may reduce the number of shares allocated to participating parties to 129.6 million, or 80 percent of the total offer, to accommodate individual demand. Up to 32.4 million shares, or 20 percent, will be allocated to individual subscribers.
The total offering size is projected to range from SR810 million to SR858.6 million, suggesting a market capitalization of SR2.7 billion to SR2.8 billion at listing. The company will have a free float of 30 percent of shares post-listing.
The Capital Market Authority has also approved the registration and offering of 3 million shares of Multi Business Group for Projects Co., representing 20 percent of the firm’s share capital, in the parallel market. The offer will be limited to qualified investors, with the prospectus to be published ahead of the offering.
The CMA also approved the registration and offering of 337,500 shares of Digital Research Co. and 250,000 shares of Balsm Alofoq Medical Co., both representing 20 percent of each firm’s share capital, in the parallel market.
The offering for Al-Majed for Oud Co. was held on Sept. 15, with Saudi Fransi Capital serving as the lead manager and Banque Saudi Fransi and Al-Rajhi Bank acting as receiving entities. The retail offering comprised 1.5 million shares, each priced at SR94.
