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Saudi Finance Ministry to provide support to construction company Binladin Group 

Saudi Finance Ministry to provide support to construction company Binladin Group 
The Binladin Group is one of the largest construction companies in Saudi Arabia and the Middle East. File/AFP
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Updated 01 August 2024
Arab News
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Saudi Finance Ministry to provide support to construction company Binladin Group 

Saudi Finance Ministry to provide support to construction company Binladin Group 
  • Ministry announced a series of arrangements to settle the firm’s cash dues to banks
  • Support is expected to enhance Binladin Group’s capacity to complete its ongoing projects
Updated 01 August 2024
Arab News
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RIYADH: Saudi construction company Binladin Group is set to receive several support measures from the Ministry of Finance to help stabilize its financial structure. 

The ministry announced a series of arrangements to settle the firm’s cash dues to banks, which include lending to the group and considering an increase in the government’s stake. 

The support is expected to enhance Binladin Group’s capacity to complete its ongoing projects, particularly those related to the Two Holy Mosques, the Saudi Press Agency reported. 

The financial backing will also strengthen the company’s position and enable it to secure the necessary financing for executing various contracted projects. 

The Ministry of Finance said the initiative continues the government’s recent support extended to the construction and building sector. 

Such measures are intended to facilitate the completion of vital projects and create attractive investment opportunities in the sector, in line with Saudi Vision 2030. 

The Binladin Group, one of the largest construction companies in Saudi Arabia and the Middle East, has faced significant financial challenges in recent years. 

These difficulties stem from a combination of factors, including a slowdown in the construction sector, a decline in government contracts, and an economic downturn affecting the region. 

The firm’s financial woes were compounded by legal and operational issues, which led to delays in project completion and mounting debts, prompting the Saudi government to intervene with support measures. 

The company faced operational challenges and legal issues, such as the crane collapse incident at the Grand Mosque in Makkah in 2015, which further strained its financial and reputable standing. 

Reports about government intervention were also brought to light in February as the Public Investment Fund was set to take a 36 percent stake in the construction giant. 

While PIF did not offer an official response to the report, Bloomberg, citing people with knowledge of the matter, said the fund is “working with Morgan Stanley on a potential deal to buy into Saudi Binladin Group.” 

Saudi Binladin Group operates in three categories, including construction, power, and industrial. 

On the construction side, the group has worked on more than 15 building projects in the Kingdom, including expanding the Grand Mosque in Makkah and Al-Faisaliah Tower in Riyadh. 

The group’s global initiatives include Malaysia’s Kuala Lumpur Airport, Sharm El-Sheikh Airport in Egypt, and the UAE’s Sharjah International Airport and Fujairah International Airport. 

In the power generation sector, Binladin Group worked on the Shoaiba Power Plant and Power Plant No.9, also known as PP9, which generates a capacity of 5,980 megawatts and was built on an area of 3.2 million sq. meters.

Topics: Saudi Arabia saudi ministry of finance Binladin Group main

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Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT
Updated 19 sec ago
Nirmal Narayanan
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Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT
Updated 19 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabia’s non-oil exports surged 12.7 percent year on year in October, reaching SR25.38 billion ($6.76 billion), underscoring the Kingdom’s push to diversify its economy away from oil dependence. 

According to the General Authority for Statistics, chemical products led the non-oil export categories, accounting for 26.8 percent of the total, while plastics and rubber products followed, contributing 23.7 percent.

The rise in non-oil exports is a cornerstone of Saudi Arabia’s broader Vision 2030 strategy, which aims to transform the Kingdom’s economic landscape and reduce reliance on oil revenues.

“The ratio of non-oil exports (including re-exports) to imports increased to 35.2 percent in October 2024 from 30.1 percent in October 2023. This was due to a 12.7 percent increase in non-oil exports and a 3.8 percent decrease in imports over that period,” GASTAT said in its report.

While non-oil trade climbed, total merchandise exports fell 10.7 percent in October, primarily driven by a 17.3 percent drop in oil exports. The share of oil in overall exports declined to 72.6 percent from 78.3 percent a year earlier, reflecting the Kingdom's ongoing commitment to reducing its dependence on crude sales.

Saudi Arabia implemented a voluntary oil production cut of 500,000 barrels per day in April 2023, a measure that remains in place until December 2024 to stabilize global markets.

China remained Saudi Arabia’s largest trading partner, importing goods worth SR14.95 billion, or 16.1 percent of the Kingdom’s total exports in October. Other major destinations included India with SR8.79 billion, Japan with SR8.70 billion, and South Korea with SR8.31 billion.

On the import side, Saudi Arabia’s inbound shipments fell 3.8 percent year on year to SR72.01 billion. Machinery and equipment topped the list, comprising 25.7 percent of total imports, marking a 6.9 percent annual increase. However, transportation equipment imports declined 21.6 percent, representing 15.3 percent of the total.

China also dominated Saudi imports, sending goods worth SR17.58 billion in October, followed by the US with SR5.69 billion and the UAE with SR4.34 billion.

King Abdulaziz Sea Port in Dammam served as the leading entry point for imports, processing goods valued at SR21.16 billion, or 29.4 percent of total inbound shipments.

Saudi Arabia’s latest trade data highlights its progress in bolstering non-oil sectors while navigating global oil market challenges, aligning with its long-term economic transformation goals.

Topics: GASTAT exports imports

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Saudi Arabia raises $3.09bn in sukuk issuances for December

Saudi Arabia raises $3.09bn in sukuk issuances for December
Updated 24 December 2024
Nirmal Narayanan
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Saudi Arabia raises $3.09bn in sukuk issuances for December

Saudi Arabia raises $3.09bn in sukuk issuances for December
Updated 24 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s National Debt Management Center has successfully concluded its riyal-denominated sukuk issuance for December, raising SR11.59 billion ($3.09 billion).

This marks a substantial 239.88 percent increase from the previous month, when the Kingdom raised SR3.41 billion in sukuk. Saudi Arabia had raised SR7.83 billion in October and SR2.6 billion in September.

Sukuk, which are Shariah-compliant Islamic bonds, provide investors with partial ownership of the issuer’s assets until the bonds mature. The rise in sukuk issuance aligns with positive global market projections.

A Moody’s report released in September forecasted that the global sukuk market would remain robust in 2024, with total issuance expected to reach between $200 billion and $210 billion, an increase from just under $200 billion in 2023.

The December sukuk issuance by NDMC was structured into four tranches, each with varying maturities. The largest tranche, valued at SR5.58 billion, is set to mature in 2027. Another tranche, worth SR3.90 billion, will mature in 2029, while a third tranche, valued at SR706 million, is due for repayment in 2031. The final tranche, amounting to SR1.4 billion, will mature in 2034.

This surge in sukuk issuance comes as the Kingdom is expected to lead the Gulf Cooperation Council region in bond and sukuk maturities between 2025 and 2029.

A report by Kamco Invest, released earlier this month, projected that Saudi Arabia’s total bond and sukuk maturities during this period would reach $168 billion, with government-issued bonds and sukuk accounting for $110.2 billion of that total.

In December, Fitch Ratings also highlighted that the GCC debt capital market crossed the $1 trillion threshold in outstanding debt by the end of November.

Earlier in October, Fitch had noted that the growth in sukuk issuance was driven by improving financing conditions, especially after the US Federal Reserve’s rate cut to 5 percent in September. Looking ahead, Fitch expects interest rates to decline further, reaching 4.5 percent by the end of 2024 and 3.5 percent by the end of 2025, which is likely to spur more sukuk issuances in the short term.

Topics: NDMC Sukuk

Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations
Updated 24 December 2024
Reem Walid
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Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations
Updated 24 December 2024
Reem Walid

RIYADH: Saudi Arabia and Nigeria held high-level talks to discuss financial and economic developments, focusing on regional and global challenges, as well as opportunities for collaboration. 

The meeting, led by the kingdom’s Minister of Finance Mohammed Al-Jadaan, included a delegation from the African country headed by Finance Minister Wale Edun and Budget and Economic Planning Minister Abubakar Atiku Bagudu.

The discussions aimed to strengthen economic ties and explore joint strategies to navigate evolving financial landscapes. 

This comes as trade between Nigeria and Saudi Arabia showed a significant imbalance in 2023, with Nigeria exporting goods worth $76.29 million to the Kingdom, while imports from Saudi Arabia amounted to $1.51 billion, according to the UN COMTRADE database on international trade.

Topics: Saudi-Nigerian ties

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Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
Updated 24 December 2024
Nirmal Narayanan
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Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
  • Parallel market dropped by 0.11% to 30,920.40
  • MSCI Tadawul Index shed 3.17 points to close at 1,496.90
Updated 24 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 34.84 points, or 0.29 percent, to close at 11,913.95. 

The Kingdom’s parallel market also dropped by 0.11 percent to 30,920.40, while the MSCI Tadawul Index shed 3.17 points to close at 1,496.90. 

The total trading turnover of the benchmark index was SR3.83 billion ($1.02 billion), with 64 of the listed stocks advancing, while 168 declining. 

The best-performing stock of the day was Al-Baha Investment and Development Co., as its share price surged by 9.09 percent to SR0.48. 

Other top performers were Saudi Chemical Co., increasing 4.66 percent to SR9.66, and Shatirah House Restaurant Co., rising 4.44 percent to SR21.30. 

The share price of United Electronics Co. slipped by 6.77 percent to close at SR92.20. 

First Milling Co. announced the successful expansion of its Mill A, boosting production capacity from 300 tonnes to 550 tonnes per day. 

In a Tadawul filing, the company, which produces flour, feed, and bran, said that the financial impact of the expansion will be reflected in the fourth quarter of this year. 

The company’s share price gained 1.35 percent, closing at SR59.90. 

Banque Saudi Fransi announced that its shareholders approved a 107.4 percent capital increase, raising its capital from SR12.05 billion to SR25 billion. 

The bank said that the decision was finalized during an extraordinary general meeting held on Dec. 23. 

Banque Saudi Fransi’s share price dropped 0.62 percent to close at SR15.94. 

Meanwhile, retail investors began subscribing to 3.47 million shares of Saudi-based online beauty brand Nice One on the main market. 

The company announced on Dec. 16 that it set the final offer price for its initial public offering at SR35 per share, aiming to raise SR1.2 billion. 

The retail subscription period, which started on Dec. 24, will run through Dec. 25. 

Saudi Arabia’s Capital Market Authority approved Ejada Systems Co.’s request to float 20.05 million shares, representing 45 percent of its share capital. 

In a statement on Tadawul, the company said that its prospectus will be published well ahead of the subscription period. 

It will provide investors with key information, including financial statements, business activities, and management details to support informed investment decisions. 

The CMA approved a request by Umm Al Qura for Development and Construction Co. to float 130.78 million shares, representing 9.09 percent of the firm’s share capital. 

The authority also approved Ratio Specialty Co. to float 5 million shares, equal to 25 percent of the company’s share capital, on the Kingdom’s parallel market. 

Topics: Saudi Arabia Tadawul TASI MSCI Tadawul Index NOMU Saudi stock market Saudi Stock Exchange (Tadawul) Closing Bell Tadawul All Share Index (TASI)

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EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan
Updated 24 December 2024
MOHAMMED AL-KINANI
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EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan
  • 1.1 GW wind farm in Egypt will reduce annual CO2 emissions by more than 2.2 million tonnes
  • Loan to Suez Wind consists of $200 million A loan from the EBRD and $75 million in B loans from Arab Bank and Standard Chartered
Updated 24 December 2024
MOHAMMED AL-KINANI

JEDDAH: The European Bank for Reconstruction and Development is supporting Egypt in launching Africa’s largest wind farm, backed by a $275 million syndicated loan.

The loan to Suez Wind consists of a $ 200 million A loan from the EBRD and $ 75 million in B loans from Arab Bank and Standard Chartered, the international financial institution said in a press release.

It added that the initiative is being co-financed by the African Development Bank, British International Investment, and Deutsche Investitions- und Entwicklungsgesellschaft, as well as the OPEC Fund for International Development and the Arab Petroleum Investments Corporation.

The wind farm in the Gulf of Suez will have an installed capacity of 1.1 gigawatts, delivering clean, renewable energy at a lower cost than conventional power generation. It is expected to produce over 4,300 GWh of electricity annually and reduce CO2 emissions by more than 2.2 million tons per year, supporting Egypt’s energy sector alignment with its commitments under the Paris Agreement.

Rania Al-Mashat, Egypt’s minister of planning, economic development, and international cooperation, said that her country is committed to advancing its renewable energy ambitions, aiming to derive 42 percent of its energy mix from renewable sources by 2030, in line with their nationally determined contributions.

“Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE program, we are mobilizing blended finance to attract private-sector investments in renewable energy,” said Al-Mashat, who also serves as governor of the north African country to the EBRD

The minister added: “So far, funding has been secured for projects with a capacity of 4.7 gigawatts, and we are working collaboratively to meet the program’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

Managing Director of the EBRD’s Sustainable Infrastructure Group, Nandita Parshad, expressed pride in the bank’s role as the largest financier of the landmark 1,100-megawatt wind farm in the Gulf of Suez, which is also the largest onshore wind farm in EBRD’s operational countries to date.

“Egypt continues to be a trailblazer for large-scale renewables in Africa: first with the largest solar farm and now the largest windfarm on the continent. Great to partner on both with ACWA power and to bring new partners in this project, Hassan Allam Utilities and Meridiam,” she said.

Suez Wind is a special project company jointly owned by Saudi energy giant ACWA Power and HAU Energy, a recently established renewable energy equity platform that the EBRD is investing in alongside Hassan Allam Utilities and Meridiam Africa Investments.

The EBRD, of which Egypt is a founding member, is the principal development partner in the republic’s energy sector under the Nexus of Water, Food, and Energy program, launched at COP27. This wind farm is one of the first projects within NWFE’s energy pillar, advancing progress toward the country’s 10-gigawatt renewable energy goal.

It plays a vital role in supporting Egypt’s efforts to decarbonize its fossil fuel-dependent power sector and achieve its ambitious renewable energy targets.

Since the EBRD began operations in Egypt in 2012, the bank has invested nearly €13.3 billion in 194 projects across the country. These investments span various sectors, including finance, transport, and agribusiness, as well as manufacturing, services, and infrastructure, with a particular emphasis on power, municipal water, and wastewater projects, according to the same source.

Last month, EBRD announced it was supporting the development and sustainability of Egypt’s renewable-energy sector by extending a $21.3 million loan to Red Sea Wind Energy.

The loan was established to fund the development and construction of a 150-megawatt expansion to the 500-megawatt wind farm currently being constructed in the same region.

Topics: Egypt European Bank for Reconstruction and Development (EBRD) Wind Power Green And Blue

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