Saudi Cabinet approves product safety, standards systems
Kingdom aims to improve product safety by restricting the entry of non-conforming products
Saudis employed in private sector grew from 1.7 million in 2019 to over 2.3 million in 2024
Updated 31 July 2024
Arab News
RIYADH: Saudi Arabia’s Cabinet approved the Kingdom’s product safety and standards systems during its session chaired by Crown Prince Mohammed bin Salman in Jeddah.
The body reviewed several periodic performance reports on the programs of the Saudi Vision 2030, many of whose achievements have already been realized on the ground, according to the Saudi Press Agency,
Progress in transforming the housing and health sectors was discussed, with key achievements including increasing homeownership rates by providing thousands of housing units and enhancing health care accessibility, quality, and life expectancy through dedicated public health and community initiatives.
The Kingdom aims to improve product safety by restricting the entry of non-conforming products through the Saudi Products Safety program, known as Saleem.
The program issues the Annual Conformity Index, providing regulatory authorities and technical regulations teams with information and reports to prioritize their efforts and streamline commercial procedures.
In a statement to SPA following the session held in July 30, Minister of Media Salman Al-Dossary said the Cabinet discussed the Kingdom’s high rankings in labor market indicators issued by the World Economic Forum, highlighting the record-breaking increase in the number of Saudis employed in the private sector, with its workforce growing from 1.7 million in 2019 to over 2.3 million in 2024.
The minister added that the Council of Ministers also underscored the country’s unemployment rate which decreased to 6.7 percent in the first quarter of 2024.
The Cabinet approved a cooperation memorandum of understanding between the Saudi Ministry of Tourism and its Tunisian counterpart.
It also approved a MoU between the Saudi Ministry of Investment and the Costa Rican Ministry of Foreign Trade for cooperation in promoting direct investment.
An agreement on economics and planning between the Saudi Ministry of Economy and Planning and the Bahraini Ministry of Finance and National Economy was also endorsed.
The Cabinet approved a cooperation memorandum of understanding between Saudi Arabia’s Small and Medium Enterprises General Authority, also known as Monsha’at, and the Jordan Enterprise Development Corporation to support and develop SMEs and entrepreneurship.
Two deals on air transport services between the Saudi government and the Ugandan and Guatemalan sides were also given the green light.
PIF’s Dan Co. to launch resort in Al-Ahsa to boost Saudi tourism sector
Updated 5 sec ago
Reem Walid
RIYADH: Saudi Arabia’s tourism sector is poised for significant growth with the announcement of a new resort project in Al-Ahsa by Dan Co., a subsidiary of the Public Investment Fund.
The initiative is part of the Kingdom’s broader strategy to enhance the tourism industry and elevate hospitality standards across the country.
The resort will integrate sustainability, innovation, and high-quality service, in line with Saudi Arabia’s Vision 2030 objectives. By focusing on these key principles, the project aims to enhance the appeal of Al-Ahsa as both a local and international tourism destination.
This move is also aligned with the Kingdom’s ambitious goal of attracting 150 million visitors by 2030 and increasing the tourism sector’s contribution to the national gross domestic product from 6 percent to 10 percent.
Saad Al-Kroud, chairman of Dan Co., highlighted that the resort will leverage Al-Ahsa’s unique natural beauty and rich cultural heritage.
The project will promote rural, recreational, and ecotourism, offering visitors a variety of experiences that showcase the region’s diverse landscapes and agricultural legacy.
“By focusing on the natural environment and cultural heritage, this development will offer distinctive experiences that cater to a wide range of interests, further solidifying Al-Ahsa’s position as a key destination in Saudi Arabia’s tourism map,” Al-Kroud said.
As part of PIF’s broader vision to transform the Kingdom’s tourism landscape, Dan Co. is committed to promoting agritourism, adventure tourism, and ecotourism.
These initiatives aim to deepen the connection between visitors and nature, while creating economic opportunities for local communities and fostering sustainable development.
Through this project, Dan Co. aims not only to enhance Saudi Arabia’s tourism offerings but also to help diversify local economies and support the growth of thriving businesses in the region.
Closing Bell: Saudi main index slips to close at 12,059
Parallel market Nomu gained 72.18 points, or 0.23%, to close at 31,173.07
MSCI Tadawul Index lost 5.47 points, or 0.36%, to close at 1,513.54
Updated 15 December 2024
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 39.80 points, or 0.33 percent, to close at 12,059.53.
The total trading turnover of the benchmark index was SR3.32 billion ($885 million), as 91 of the stocks advanced and 129 retreated.
The Kingdom’s parallel market Nomu gained 72.18 points, or 0.23 percent, to close at 31,173.07. This comes as 52 of the listed stocks advanced, while 35 retreated.
The MSCI Tadawul Index lost 5.47 points, or 0.36 percent, to close at 1,513.54.
The best-performing stock of the day was Saudi Cable Co., whose share price surged 8.49 percent to SR93.30.
Other top performers included Sumou Real Estate Co., whose share price rose 6.61 percent to SR47.60, as well as Walaa Cooperative Insurance Co., whose share price surged 3.45 percent to SR18.60.
Al-Baha Investment and Development Co. recorded the biggest drop, falling 6.06 percent to SR0.31.
Riyadh Cables Group Co. also saw its stock prices fall 3.07 percent to SR145.
On the announcements front, Saudi Tadawul Group Holding Co. announced the latest development regarding the acquisition of its subsidiary, Tadawul Advanced Solutions Co., or WAMID, of 51 percent shares in Direct Financial Network Co., by announcing the acquisition of 49 percent of the entire remaining shares in Direct Financial Network Co. for SR 220.5 million.
According to a Tadawul statement, the transaction is integral to WAMID’s growth strategy, supporting the group’s ambitious strategy.
The acquisition of 100 percent of the entire shares of the issued capital of Direct Financial Network Co. will create an opportunity to build new capabilities, elevate innovation in the regional capital markets, diversify revenues, and advance the capital market.
The acquisition value will be funded by the existing Saudi Tadawul Group Holding Co. Sharia-compliant banking facilities. The transaction is also expected to have a positive financial impact on the group over time.
Saudi Tadawul Group Holding Co. ended the session at SR223, up 0.18 percent.
Mufeed Co. announced that its board of directors has decided to distribute SR33 million in cash dividends to shareholders for the first half of 2024.
A bourse filing revealed that the total number of shares eligible for dividends amounted to 6.6 million, with the dividend per share at SR5. The statement also revealed that the percentage of dividends to the share par value stood at 50 percent.
Mufeed Co. ended the session at SR76 down 10.81 percent.
Salama Cooperative Insurance Co. announced the period for rights issue trading and new shares subscription from Dec. 17-29.
According to a Tadawul statement, holders of rights may exercise their right to subscribe to new shares, in full or in part, up to the number of rights available in their portfolios. Trading rights and subscribing to new shares will be conducted according to the terms outlined in the prospectus for registered shareholders and new investors.
Salama Cooperative Insurance Co. ended the session at SR17.32, down 0.81 percent.
UAE’s proptech Stake expands to Saudi Arabia, to consider regional HQ relocation, GM says
Hanouf Bin Saeed said move aims to capitalize on rapidly growing real estate market driven by Saudi Vision 2030 initiatives
After a successful closure of a $14 million funding round in June, Stake officially launched its operations in the Kingdom on Dec. 9
Updated 15 December 2024
NOUR EL-SHAERI
RIYADH: UAE real estate investment platform Stake is considering relocating its regional headquarters to Saudi Arabia, but no immediate plans have been finalized, according to a top official.
In an interview with Arab News, Hanouf Bin Saeed, general manager of Stake Saudi Arabia, said the move would align with the company’s strategy to expand its footprint in the Kingdom, capitalizing on the rapidly growing real estate market driven by Saudi Vision 2030 initiatives.
“In our next step, we aim to move the regional headquarters to Saudi Arabia,” she told Arab News. “Today, with the initiatives happening, it could be very soon. We don’t have a timeline, but our focus today is to grow our footprint in Saudi, build our team, (and) ensure that we have robust, stable growth in Saudi Arabia to be able to capitalize on opportunities and an unparalleled market that is happening in the real estate market today.”
Bin Saeed said the relocation is merely a possibility and the company’s immediate plans focus on expansion and building a solid foundation in the Kingdom.
Stake Saudi is here! Download the app and complete your onboarding today to be ready for our first real estate fund launching tomorrow. Be among the first to unlock Saudi’s real estate market with Stake.
After a successful closure of a $14 million funding round in June, Stake officially launched its operations in Saudi Arabia on Dec. 9, debuting with its first real estate investment opportunity, which was already 60 percent funded as of mid-December.
The platform, originally established in the UAE four years ago, allows individual investors to invest in real estate projects.
While property investing typically involves large amounts of upfront capital and an antiquated buying process, investors globally can access real estate through Stake from as little as SR500 ($136), the company said.
According to Bin Saeed, Stake has over 800,000 users from 170 countries and has facilitated real estate transactions exceeding $130 million in gross merchandise value in the UAE market. The platform has also distributed more than $5 million in dividends to investors from rental income.
Highlighting the strategic importance of Saudi Arabia for Stake’s expansion, she underscored the transformative economic initiatives under Vision 2030, including a goal to achieve 70 percent homeownership among Saudi nationals by 2030.
“The country is injecting real estate units into the Saudi market — above 500,000 units — just to be able to reach that percentage by 2030,” she said.
The Kingdom’s booming real estate sector, driven by residential, commercial, and hospitality demand, provides fertile ground for Stake’s mission of democratizing real estate investments, she added.
“For us in Stake, our mission is fully aligned with Vision 2030 when it comes to democratizing real estate investments,” Bin Saeed said.
“This is why Stake decided to come to Saudi Arabia, bringing the solution that has been built and successful in the UAE market to Saudi Arabia and to the Saudi market to be able to capitalize on the opportunities that are coming today,” she added.
Stake is one of the few platforms regulated by the Kingdom’s Capital Market Authority to cater to non-resident foreign investors, a key competitive advantage as the Saudi government works to position the country as a global investment hub, Bin Saeed added.
The platform obtained its CMA license in July and has since established an office and local team in Saudi Arabia, while also preparing to expand its fund offerings in the Kingdom significantly.
“For Stake, as we mentioned, we just launched with a fund which is around SR200 million, and our expectation for the coming six months is to launch funds with SR1 billion amount and move forward from there,” Bin Saeed said.
Stake is also eyeing opportunities in commercial real estate and office spaces as international businesses increasingly enter the Saudi market.
The Kingdom’s plans to host the FIFA World Cup in 2034 and the associated growth in the hospitality sector are expected to further boost rental income by 30 percent to 40 percent, according to Bin Saeed.
With the Kingdom’s rapidly evolving real estate landscape, Stake sees Saudi Arabia as a cornerstone of its regional growth strategy.
Bin Saeed stressed the company’s long-term commitment, saying: “We are tapping into different options when it comes to the real estate itself and to be able to localize the market and create these opportunities.”
Saudi Arabia invests $2.66bn to transform logistics infrastructure with 18 new zones
Move is part of a broader strategy to attract local and global investments
It came during the opening ceremony of the sixth edition of the Supply Chain Conference in Riyadh
Updated 15 December 2024
Nadin Hassan
RIYADH: Saudi Arabia is strengthening its logistics infrastructure by developing 18 new logistics zones, with total investments exceeding SR10 billion ($2.66 billion), according to senior officials.
This move is part of the country’s broader strategy to attract local and global investments. During the opening ceremony of the sixth edition of the Supply Chain Conference in Riyadh, Saleh Al-Jasser, minister of transport and logistics, announced that the Kingdom plans to increase the number of logistics zones from 22 to 59 by 2030.
“The Kingdom has successfully strengthened its logistical capabilities to support the national economy. This progress has attracted leading global companies to invest in the logistics sector,” Al-Jasser said.
He further stated: “Both local and international private sectors have committed to establishing several logistics zones, with contracts signed for the creation of 18 logistics zones in ports, totaling investments exceeding SR10 billion.”
Al-Jasser also highlighted the Kingdom’s rising position in the global container handling rankings. According to the UNCTAD report for 2024, Saudi Arabia gained an additional 231 points in the Liner Shipping Connectivity Index and added 30 new maritime shipping lines, underscoring the Kingdom’s key role in global trade.
“Saudi Arabia has played an active role in enhancing the efficiency of global supply chains and establishing the foundations necessary to ensure the smooth flow of goods and commodities across the region,” Al-Jasser said.
He added: “This has been achieved by leveraging the Kingdom’s strong and growing logistical capabilities, which include an advanced network of regional and international airports, a robust series of highly efficient ports, and modern railway and road networks. These assets accelerate shipping, handling, and export activities, linking the Kingdom to global markets.”
Al-Jasser emphasized the ongoing efforts to enhance the Kingdom’s position as a global logistics hub. He highlighted that the integration of various transport modes—such as ports, airports, and railways—into a unified and efficient system will boost competitiveness and facilitate seamless trade flows.
“The Kingdom will continue to enhance its logistical capabilities to facilitate exports, support supply chains, and improve its performance in global logistics indicators,” Al-Jasser said. He further emphasized: “The focus will remain on bolstering maritime shipping routes, expanding air freight operations, increasing rail freight capacities, and activating logistics centers to support sustainable development, further cementing the Kingdom's role as a global logistics hub and a vital link in international supply chains.”
Al-Jasser also underlined the importance of supply chains in Saudi Arabia’s broader economic strategy, noting their fundamental role in achieving the sustainability and integration goals set out in the National Transport and Logistics Strategy and Vision 2030.
“We consider them a fundamental pillar for achieving the sustainability and integration we aspire to, in line with the National Transport and Logistics Strategy and the Kingdom’s Vision 2030,” he said.
After his speech, Al-Jasser told Arab News that the growing interest from global multinational companies in Saudi Arabia’s logistics sector is a testament to the Kingdom’s strategic location and commitment to becoming a global logistics hub.
“This will not only create jobs for Saudis and make it more efficient for Saudi companies to operate, but will also enable various sectors across Saudi Arabia,” Al-Jasser said.
He added: “This comes as part of the implementation of the National Transport and Logistics Strategy, which stems from Vision 2030 that is inspired and steered by his royal highness the crown prince.”
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef
Meanwhile, Minister of Industry and Mineral Resources Bander Alkhorayef emphasized the Kingdom’s natural resources and abundant energy supply as crucial advantages for its industrial sector.
“The diverse resources of the Kingdom, including its natural wealth and abundant energy supply, are all positive factors that make Saudi Arabia an important partner in the industrial sector,” he said.
Alkhorayef also highlighted the vital role logistics plays in enabling Saudi industries to compete globally, particularly given the limitations of the domestic market.
“The presence of robust supply chains and logistics services is of utmost importance in reducing costs for manufacturers and investors, while enhancing the Kingdom's overall competitiveness,” he stated.
He continued: “First, the natural resources available in the Kingdom are very large and are among the foundations of the main national strategies, especially the Industrial Strategy and the Mining Strategy. Maximizing the benefit from these resources is a priority, particularly in oil, gas, petrochemicals, and minerals.”
Alkhorayef further noted, “Secondly, the geographical location of the Kingdom qualifies it to connect different regions of the world. In addition, the excellent infrastructure and the availability of energy at globally competitive prices make the Kingdom a natural choice for many manufacturing industries, whether intermediate products to become final in other regions or vice versa.”
The minister also stressed Saudi Arabia’s strong domestic market, which is further bolstered by the Gulf region’s high purchasing power, making it an attractive market for various products, especially those in critical sectors such as food security, healthcare, pharmaceuticals, and water-related industries.
“Essentially, the Kingdom’s robust local demand and the Gulf’s economic strength create significant opportunities for businesses and investors in these essential sectors,” Alkhorayef added.
Reflecting on global challenges, including the COVID-19 pandemic, geopolitical conflicts, and disruptions in global supply chains, Alkhorayef acknowledged that these issues underscore the Kingdom’s potential to attract investments and use its resources and advanced technologies to address supply chain challenges.
He also highlighted Saudi Arabia’s success in re-exports, stating, “In 2024, re-exports reached SR61 billion, representing a 23 percent growth compared to the previous year.”
“This remarkable achievement was made possible through outstanding capabilities, robust infrastructure, and the seamless coordination among various entities,” he added.
Alkhorayef emphasized that Saudi Arabia’s strategic location and infrastructure are key enablers of its growing industrial sector. “The excellent infrastructure and the availability of energy at globally competitive prices make the Kingdom a natural choice for many manufacturing industries,” he said.
A new prospect in rail projects
Al-Jasser also discussed the Northern Train Line, which he described as the Kingdom’s largest rail project and a cornerstone for the mining sector. The line, connecting mining areas with key ports, plays a vital role in supporting industrial and economic growth.
“The Northern Train Line is likely the largest rail project in the Kingdom. It has been established as a foundation to enable the mining sector. Therefore, all infrastructure development plans are interconnected with the inputs from various sectors,” he said during the panel session.
Al-Jasser noted that the Saudi Railway Co. is currently expanding and duplicating the Northern Train Line with investments exceeding SR5 billion. This expansion is part of the Kingdom's broader plans to enhance the mining sector and ensure efficient connectivity between the railway and eastern ports, supporting both export and trade growth.
Through these efforts, Saudi Arabia is continuing to align its industrial and logistics sectors with the ambitious goals of Vision 2030, fostering a sustainable and globally competitive economy.
It is worth noting that the conference brings together an exclusive group of international experts and specialists, focused on sharing best practices and the latest methods to enhance supply chain performance and efficiency.
The program features a series of engaging dialogue sessions, as well as workshops and an entrepreneurship corner.
Additionally, a platform has been created to empower Saudi women in the supply chain sector, offering training and development opportunities to boost their contributions to the Saudi economy and open new career paths in key industries.
Oman’s GDP grows 2.6% in Q2, driven by non-hydrocarbon sector
Real GDP also saw an increase of 1.9%, with the non-hydrocarbon sector contributing 4.2%
etrochemical and plastics sector saw a 58% increase, while the mining industry dropped by 42%
Updated 15 December 2024
MOHAMMED AL-KINANI
JEDDAH: Oman’s nominal gross domestic product grew by 2.6 percent at the end of the second quarter of the year compared to the same period in 2023.
The growth was primarily driven by a 5 percent increase in the non-hydrocarbon sector. However, it was partially offset by a 1.4 percent reduction in hydrocarbon sector production, according to preliminary data from the National Center for Statistics and Information.
Real GDP also saw an increase of 1.9 percent, with the non-hydrocarbon sector contributing 4.2 percent to this expansion.
As of October, the average price of Omani oil increased by 2.5 percent to $82.6 per barrel, while oil production decreased by 5.4 percent to nearly 994,000 barrels per day. Additionally, the Consumer Price Index reflected a modest 0.6 percent year-on-year inflation as of October.
Non-oil exports, insured sales grow 5% in Q3
The sultanate’s non-oil exports and domestic sales insured by Credit Oman grew by 5 percent in the third quarter, reaching 272.8 million Omani rials ($708.8 million).
Domestic sales rose 15 percent to 126.9 million rials, while non-oil exports declined slightly by 2 percent to 145.9 million rials, according to official data reported by the country’s news agency.
The petrochemical and plastics sector saw a 58 percent increase, while the mining industry dropped by 42 percent. In the domestic market, packaging led growth with a 156 percent rise, while building materials declined by 12 percent. Consumer goods and food sales grew by 13 percent.
133 maritime tourism licenses issued
The Ministry of Transport, Communications, and Information Technology has said that the number of licenses issued for maritime tourist trips from the beginning of January to the end of August reached 133.
Eight firms are currently managing and operating the tourist marine docks in the governorates of Musandam, South Al-Batinah, Muscat, and Dhofar.
The Director General of Ports, Muhanna bin Moosa bin Baqir, said that the ministry oversees Oman’s maritime affairs, focusing on monitoring operational performance and ensuring compliance with international standards for ship security and port facilities. He added that his ministry aims to enhance the operational efficiency of these terminals.
Gas production and imports up 4.5% to 47.1bn cubic meters
The total domestic production and import of natural gas in Oman reached 47.1 billion cubic meters by the end of October, marking a 4.5 percent increase compared to 45.1 billion cubic meters in the same period last year.
According to statistics from the NCSI, industrial projects accounted for 51.1 percent of natural gas usage in the country by the end of October, totaling approximately 24.1 billion cubic meters.
The total natural gas usage reached 9.9 billion cubic meters in oil fields, 12.9 billion cubic meters in power stations, and 208.3 million cubic meters in industrial areas.
Non-associated natural gas production, including imports, amounted to 37.5 billion cubic meters, while associated production stood at 9.6 billion cubic meters by the end of the current year.
Oil exports reach 256.3m barrels by October
According to the same statistics, Oman’s total oil exports reached approximately 256.3 million barrels by the end of October, with an average price of $82.6 per barrel.
Oil exports accounted for 84.6 percent of the total oil production, which was 303.1 million barrels.
The data also revealed that crude oil production decreased by 6.6 percent, totaling 232.1 million barrels by the end of October. However, condensate production increased by 0.2 percent, reaching 71.1 million barrels. The average daily oil production was 993,900 barrels.
