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MODON signs $266m contracts with private sector to improve industrial infrastructure

Construction and implementation of essential services will be undertaken in the second industrial cities of Jeddah, Tabuk, and Hafr Al-Batin. File
Construction and implementation of essential services will be undertaken in the second industrial cities of Jeddah, Tabuk, and Hafr Al-Batin. File
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Updated 29 July 2024
Arab News
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MODON signs $266m contracts with private sector to improve industrial infrastructure

MODON signs $266m contracts with private sector to improve industrial infrastructure
  • Authority signed 9 contracts with private sector to improve service facilities and infrastructure
  • MODON also revealed plans for several new projects
Updated 29 July 2024
Arab News
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RIYADH: The Saudi Authority for Industrial Cities and Technology Zones, known as MODON, has signed nine contracts valued at over SR1 billion ($266.5 million) with the private sector to improve service facilities and infrastructure across various industrial hubs.

In a recent post on X, MODON highlighted projects secured by its CEO, Majed Al-Argoubi. These include the development of the first phase of infrastructure networks in Makkah’s industrial city and the completion of the initial phase of infrastructure in Jeddah’s Third Industrial City. MODON also plans to construct 132-kilovolt overhead power lines to enhance electrical services in Tabuk’s industrial city.

Private-public partnerships have become pivotal in attracting significant investments to Saudi Arabia. The names of the companies awarded the contracts and their values were not disclosed.

MODON also revealed plans for several new projects, such as the development of 115-kV overhead power lines to improve electrical services in Hafr Al-Batin’s industrial city. The authority will also work on establishing and enhancing infrastructure networks for the first and second phases in Dammam’s Third Industrial City.

Construction and implementation of essential services will be undertaken in the second industrial cities of Jeddah, Tabuk, and Hafr Al-Batin.

In June, Saudia Dairy and Foodstuff Co., a major player in the Kingdom’s food sector, signed a long-term lease contract with MODON for a warehouse in Jazan, spanning over 15,000 sq. meters. This announcement was made at the Saudi Food Show in Riyadh in May, with the agreement signed by Talal Al-Nounou, SADAFCO’s Director of Public Relations and Government Relations, and the MODON CEO.

Since its establishment in 2001, MODON has been responsible for developing and overseeing industrial lands and infrastructure. It currently manages 36 industrial cities, both operational and under development, as well as private industrial cities and complexes across the Kingdom.

In the second quarter of 2024, MODON attracted over SR3.4 billion in private sector investments, signed 142 new industrial contracts, and registered a total of 6,758 factories. The authority conducted 3,217 regulatory visits in industrial cities, planted over 576,000 trees, and finalized 335 logistics contracts.

Topics: main MODON Saudi Authority for Industrial Cities and Technology Zones (MODON)

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Oil Updates — crude inches up on tighter supply risks; views mixed on Trump auto tariffs impact

Oil Updates — crude inches up on tighter supply risks; views mixed on Trump auto tariffs impact
Updated 35 sec ago
Reuters
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Oil Updates — crude inches up on tighter supply risks; views mixed on Trump auto tariffs impact

Oil Updates — crude inches up on tighter supply risks; views mixed on Trump auto tariffs impact
  • Tariff threats on Venezuelan oil buyers support prices
  • Markets mixed on impact of Trump auto tariffs
  • Prices seen unlikely to return to early 2025 highs, some analysts say
Updated 35 sec ago
Reuters

TOKYO/SINGAPORE: Oil prices edged up on Thursday on concerns about tighter global supply after US tariff threats on Venezuelan oil buyers and earlier sanctions on Iranian oil buyers, while traders weighed the impact of US President Donald Trump’s auto tariffs.

Brent crude futures gained 7 cents, or 0.1 percent, at $73.86 a barrel. US West Texas Intermediate crude futures rose 10 cents, or 0.1 percent, to $69.75 a barrel at 7:06 a.m. Saudi time.

On Wednesday, oil prices rose by around 1 percent on government data showing US crude oil and fuel inventories fell last week, and on the US threat of tariffs on nations buying Venezuelan crude.

“The recent (price) uptrend seems to be factoring in the noise around tariffs for buyers of Venezuela oil. We have maintained that Trump’s policies on Iran and Venezuela present the biggest upside risk for oil prices, so that is kind of partially playing out currently,” said DBS Bank’s energy sector team lead Suvro Sarkar.

India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports following the tariff announcement, sources said on Wednesday.

Sarkar said, however, DBS does not see prices returning to the higher levels seen in early 2025 as demand concerns stemming from “US policy uncertainty and tariff wars will come back to haunt the market at some point again.”

Traders and investors were also assessing the impact on oil demand from Trump’s latest announcement of a 25 percent tariff on imported cars and light trucks from next week. The view was that it could drive auto prices up, potentially impacting demand for oil, but also slow down the switch to greener cars.

“The news around Trump’s tariffs on autos may actually turn out to be a net positive for crude oil because the rise in new car prices from tariffs will mean it slows down the switch to newer, more fuel-efficient models,” said Tony Sycamore, a market analyst at IG.

US oil and gas activity increased slightly in the first quarter, but energy executives were pessimistic about the sector’s outlook, a Dallas Fed survey showed, as separate Trump tariffs on steel and aluminum could drive up costs for drilling and pipeline construction.

Topics: oil updates oil prices

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Closing Bell: Saudi main index closes in green at 11,970 

Closing Bell: Saudi main index closes in green at 11,970 
Updated 26 March 2025
Miguel Hadchity
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Closing Bell: Saudi main index closes in green at 11,970 

Closing Bell: Saudi main index closes in green at 11,970 
Updated 26 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 263.98 points, or 2.26 percent, to close at 11,970.19. 

The total trading turnover of the benchmark index was SR6.18 billion ($1.65 billion), as 239 stocks advanced, while 14 retreated.    

The MSCI Tadawul Index increased by 6.13 points, or 0.41 percent, to close at 1,490.20. 

The Kingdom’s parallel market, Nomu, also rose, gaining 374.70 points, or 1.22 percent, to close at 30,988.44. This comes as 56 stocks advanced, while 27 retreated. 

The best-performing stock was Umm Al Qura for Development and Construction Co. with its share price surging by 14.19 percent to SR23.98. 

Other top performers included Allied Cooperative Insurance Group, which saw its share price rise by 9.13 percent to SR13.86, and Nama Chemicals Co., which saw a 8.98 percent increase to SR30.95. 

Gulf General Cooperative Insurance Co. saw the biggest decline of the day, with its share price slipping 2.60 percent to SR9. 

The Co. for Cooperative Insurance at SR139, down 1.56 percent, and Astra Industrial Group at SR151, down 1.31 percent, both saw declines. 

On the announcement front, Rawasi Albina Investment Co. reported its 2024 financial results, posting net profits of SR7.4 million, a 68.4 percent drop from the previous year. In a statement on Tadawul, the company attributed the decline to a reduced gross profit margin. 

Saudi Fisheries Co. reported a net loss of SR40.9 million for 2024, an improvement from SR119.9 million the previous year, reflecting a 65.8 percent reduction. SFICO attributed the reduction to lower farm-related expenses for shrimp and fish production, a decline in operating costs amid reduced business activity, and a 27 percent drop in SG&A expenses.  

Additionally, the reversal of a SR7.6 million impairment for non-financial assets contributed to the improvement, the firm said in a Tadawul statement. 

However, the net margin remained negative due to fixed farm costs incurred after harvesting, increased consultancy expenses related to capital restructuring, and the recognition of SR8.98 million in provisions for inventory, supplier advances, and trade receivables. 

The firm’s shares traded 2.41 percent higher on the main market to close at SR102. 

Eastern Province Cement Co. also announced its annual financial results for last year. The company’s net profit surged to SR248 million from SR196 million in the previous year. 

In a statement, the company said that the increase was driven by higher cement sales in both quantity and value, along with a rise in precast sales.  

Additionally, reduced losses from the share in an associate company’s results, lower other expenses, realized gains from the sale of investments at fair value through profit or loss, and a decrease in zakat expenses contributed to the overall improvement. 

The firm’s shares traded 4.26 percent higher on the main market to close at SR35.50. 

Topics: TASI NOMU MSCI stocks

Egypt’s economy expands 4.3% in second quarter, says minister

Egypt’s economy expands 4.3% in second quarter, says minister
Updated 26 March 2025
Reem Walid
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Egypt’s economy expands 4.3% in second quarter, says minister

Egypt’s economy expands 4.3% in second quarter, says minister
Updated 26 March 2025
Reem Walid

RIYADH: Egypt’s economy grew 4.3 percent in the second quarter of 2024-25, accelerating from 2.3 percent a year earlier, driven by structural reforms and rising private sector investment, Planning Minister Rania Al-Mashat said. 

The improved performance reflects the government’s fiscal and monetary adjustments alongside a reduction in public investment, which Al-Mashat said has helped stabilize the economy and drive growth. 

The minister previously forecast 4 percent growth for the full fiscal year, highlighting Egypt’s focus on improving its investment climate and securing $4.2 billion in macroeconomic support from global partners.   

In a statement posted on the government’s official Facebook page, she said: “This is driven by structural reforms aimed at diversifying sources of growth and increasing the competitiveness of the Egyptian economy, which was evident in the strong performance of productive sectors such as manufacturing, tourism, and communications.” 

Al-Mashat added that the government is working to shift toward tradable sectors like manufacturing to create a more diversified and sustainable economy, strengthening Egypt’s ability to navigate global economic challenges. 

She also highlighted the positive outlook for gross domestic product growth, supported by ongoing structural reforms and economic diversification. 

Non-oil manufacturing led economic growth, expanding by 17.74 percent — a sharp turnaround from an 11.56 percent contraction in the same period last year — driven by increased production and faster customs clearance.  

The tourism sector maintained its strong performance with an 18 percent surge, while private investment rose, making up more than half of total investments. Public investment, however, declined by 25.7 percent.  

The Information and Communications Technology sector grew by 10.4 percent, supported by digital infrastructure expansion and rising demand for services. 

Despite ongoing geopolitical tensions affecting Suez Canal activity and a slowdown in the extraction sector, Al-Mashat underscored that economic reforms remain key to building a more competitive, sustainable economy and bolstering investor confidence.  

She noted that net exports turned positive in the second quarter, driven by growth in commodity and service exports. 

In January, Al-Mashat reiterated the government’s focus on disciplined investment management, stating that the public investment budget for the year is capped at 1 trillion Egyptian pounds ($19.78 billion), prioritizing projects that are at least 70 percent complete. 

Between 2020 and 2024, Egypt’s private sector secured $14.5 billion in concessional development financing from global partners. For the first time, private sector access to international soft financing surpassed that of the government in 2024, Al-Mashat noted at that time. 

She also revealed that negotiations are ongoing with the EU and other international partners for a second phase of macroeconomic support, including €4 billion ($4.10 billion) in budget aid and €1.8 billion in investment guarantees. 

Topics: Egypt economy

CMA proposes easing investor criteria for Nomu to boost participation, liquidity

CMA proposes easing investor criteria for Nomu to boost participation, liquidity
Updated 26 March 2025
MOHAMMED AL-KINANI
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CMA proposes easing investor criteria for Nomu to boost participation, liquidity

CMA proposes easing investor criteria for Nomu to boost participation, liquidity
Updated 26 March 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Capital Market Authority has proposed easing investor criteria for Nomu, the Kingdom’s parallel market, aiming to expand participation and improve liquidity.

The proposed amendments suggest reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period.

Additionally, the requirement for quarterly trading activity would be eliminated. Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors.

The project aims to reserve the term “Qualified Investor in the Parallel Market” for eligible categories, amend the minimum transaction value required for classifying a natural person as a qualified investor, and rank board members and committee members of listed companies as suitable to invest.

Saudi Arabia accounted for 31 percent of the region’s total initial public offering proceeds in 2024, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. Nomu also saw 28 IPOs, generating $297 million.

The CMA called upon relevant and interested persons participating in the capital market to share their feedback on the draft for 30 days, ending on April 28.

Earlier in March, the CMA called for feedback on the draft “Regulatory Framework for Debt Instruments Offering Platforms and Investing in Them,” which aims to develop debt instrument offerings by licensed capital market institutions for securities crowdfunding.

With the consultation period to end on April 23, the draft outlines regulatory and licensing requirements for offering and investing in debt instruments, aligning with developments in the capital market.

Key proposals include allowing organizations to present debt instruments in the sukuk and debt market and enabling companies with a FinTech Experimental Permit to obtain the necessary license to operate as capital market institutions.

Organizations will need an arranging license to offer debt instruments through crowdfunding platforms. The draft also introduces requirements for safeguarding client funds and registrable functions for licensed establishments.

The proposal aims to expand the role of capital market institutions in financial technology, enhance the debt market, and increase participation in securities crowdfunding, supporting the CMA’s objectives.

Topics: Capital Market Authority (CMA) Saudi Stock Exchange (Tadawul) NOMU

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Jewelry spending fuels Saudi POS surge for 2nd consecutive week

Jewelry spending fuels Saudi POS surge for 2nd consecutive week
Updated 26 March 2025
Miguel Hadchity
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Jewelry spending fuels Saudi POS surge for 2nd consecutive week

Jewelry spending fuels Saudi POS surge for 2nd consecutive week
Updated 26 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 6.3 percent to SR14.4 billion ($3.8 billion) in the week ending March 22, with jewelry once again leading the growth.

The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the sector registered the largest increase in the value of transactions at 29.9 percent to reach SR544.4 million.

Jewelry also saw a 34.4 percent surge in terms of the number of transactions, reaching 403,000.

The hotel sector ranked second with a 24.8 percent surge in transaction value to SR440 million. Spending on clothing and footwear followed, rising 24.5 percent, holding the second-largest share of POS transactions at SR1.87 billion.

Overall transactions increased by 22.4 percent to 12 million.

Expenditure on transportation edged up by 6.9 percent to SR950.8 million, and spending in restaurants and cafes increased by 3.7 percent, bringing the total value of transactions to SR1.5 billion.

The smallest spending increases were in the telecommunication and the construction sectors, rising by 0.2 percent to SR114.8 million and 0.03 percent to SR308 million, respectively.

Spending on education saw the steepest decline for the second week in a row, dropping 37.2 percent to SR88.2 million, following a 144.6 percent surge during the week from March 2 to 8 as students returned from the winter break.

Expenditure on public utilities saw a 4.5 percent dip to SR52.4 million, and spending on food and beverages recorded a 2 percent drop to SR1.88 billion, but still held the largest share of the POS.

Miscellaneous goods and services accounted for the third biggest POS share, with a 5.8 percent uptick, reaching SR1.7 billion. 

Spending in the leading three categories accounted for approximately 38.1 percent, or SR5.5 billion, of the week’s total value.

Geographically, Riyadh dominated POS transactions, representing around 34.1 percent of the total, with spending in the capital reaching SR4.9 billion — a 4.6 percent increase from the previous week. 

Jeddah followed with a 9.8 percent increase to SR2.1 billion, and Makkah came in third at SR933.2 million, up 14 percent. 

Tabuk experienced the smallest increase in spending, edging up by 0.6 percent to SR248.2 million. 

Buraidah and Makkah saw the largest increases in terms of number of transactions, surging by 4.2 percent and 3 percent, respectively, to 4.4 million and 9.8 million transactions.

Topics: point-of-sale saudi central bank jewelry

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