Saudi Arabia extends waiver on expat fees for industrial sector employees
Saudi Arabia extends waiver on expat fees for industrial sector employees/node/2567294/business-economy
Saudi Arabia extends waiver on expat fees for industrial sector employees
This decision, effective until Dec. 31, 2024, is part of the Kingdom’s broader strategy to stimulate growth and investment in its industrial sector. File
Saudi Arabia extends waiver on expat fees for industrial sector employees
Updated 13 August 2024
Arab News
RIYADH: Saudi Arabia on Tuesday announced an extension of its waiver on fees for expatriate workers in the industrial sector, continuing a policy first introduced in 2019.
This decision, effective until Dec. 31, 2024, is part of the Kingdom’s broader strategy to stimulate growth and investment in its industrial sector.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for their continued support, the Saudi Press Agency reported.
He emphasized that the extension of the fee waiver will further stimulate the industrial sector, generate more employment opportunities, and bolster Saudi Arabia’s non-oil exports.
The minister said the waiver has been instrumental in transforming the industrial landscape of Saudi Arabia. Since its inception, the number of industrial establishments has surged from 8,822 to 11,868 by April 2024. This substantial increase reflects the sector’s expansion and the positive impact of the government’s financial incentives, he added.
Employment within the sector has also seen a significant boost, growing by 57 percent, while the localization rate — the proportion of Saudi nationals employed—has risen to 32 percent. These developments highlight the effectiveness of the policy in creating job opportunities for Saudis and enhancing local workforce integration.
According to the minister, investment in the industrial sector has soared by 55 percent, with total investments climbing from SR992 billion ($264.24 billion) in 2019 to more than SR1.542 trillion by the end of 2023. This increase underscores the success of the fee waiver in attracting and sustaining high levels of investment, he added.
Additionally, Saudi Arabia’s non-oil exports have experienced a notable 12 percent rise during the same period, demonstrating the sector’s growing contribution to the Kingdom’s export economy.
In conjunction with this announcement, the Cabinet approved several significant international agreements. Among these is a mutual visa exemption agreement with Uzbekistan for holders of diplomatic and special passports, aimed at strengthening bilateral relations.
The Cabinet also endorsed a memorandum of understanding with China to foster cultural cooperation and another with Switzerland to enhance tourism collaboration.
Furthermore, the Cabinet reviewed Saudi Arabia’s initiatives to advance global sustainability and environmental conservation efforts. It authorized Investment Minister Khalid Al-Falih to negotiate and sign a MoU with Georgia to promote direct investment, reflecting the Kingdom’s commitment to expanding its international economic partnerships.
ISLAMABAD: Saudi oil giant Aramco said on Wednesday it would launch its first branded retail gas station in Pakistan by the end of the year, having already completed the acquisition of a 40 percent stake in Gas & Oil Pakistan Ltd. (GO) in May.
Aramco is a global integrated energy and chemicals company that produces approximately one in every eight barrels of the world’s oil supply. GO, one of Pakistan’s largest retail and storage companies, is involved in the procurement, storage, sale and marketing of petroleum products and lubricants.
“We are working to launch our first Aramco-branded gas station in Pakistan by the end of the year,” the Saudi oil company’s media department told Arab News in an emailed statement. “Will share more information when the site is commissioned.”
A Pakistan Board of Investment (BOI) official said Aramco’s acquisition of GO represented the oil giant’s first downstream retail investment in Pakistan and signaled the company’s growing retail presence in high-value markets.
In March, Aramco also acquired a 100 percent equity stake in Esmax Distribución SpA, a leading diversified downstream fuels and lubricants retailer in Chile.
“Our global retail expansion is gaining pace and this acquisition [of GO] is an important next step on our journey,” Yasser Mufti, Aramco Executive Vice President of Products & Customers, said in a statement in May when the GO deal was completed.
“Through our strategic partnership with GO, we look forward to supplying Aramco’s high-quality products and services to valued customers in Pakistan. We are also delighted to welcome another high-caliber addition to Aramco’s growing network of global partners, and look forward to combining our resources and expertise to unlock new opportunities and further grow the Aramco brand overseas.”
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.
In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during a visit by Saudi Crown Prince Mohammed bin Salman to Islamabad. The agreements included about $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.
Both countries have been working in recent months to increase bilateral trade and investment, and the Kingdom in April this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.
Arabian Mills set final IPO price at $17.59 per share as CEO details growth vision
Updated 11 September 2024
Reina Takla Nadin Hassan
RIYADH: Saudi wheat flour producer Arabian Mills for Food Products Co. has set its final initial public offering price at SR66 ($17.59) per share on the Tadawul main market.
During the book-building process, the company received orders worth SR134.1 billion from local and international investment institutions for its IPO of approximately 30 percent of its shares on the Saudi Stock Exchange.
The offering comprises 15,394,502 offer shares.
The firm announced that the institutional offering was oversubscribed by about 132 times, leading to the offer price being set at the maximum of the range.
This indicates the company’s market capitalization upon listing would be SR3.387 billion.
As a result, the current stockholders will receive the net proceeds of the amount raised through the IPO, which is SR1.02 billion.
From this public offering, the shareholders selling their shares, including Abdulaziz Alajlan Sons for Commercial and Real Estate Investments, Sulaiman Abdulaziz Al-Rajhi International Co., and the National Agricultural Development Co., will collectively receive SR1.02 million.
Arabian Mills announced on Sept. 1 that the price range for the offering was set between SR62 and SR66 and appointed HSBC Saudi Arabia as the financial adviser, bookrunner, and lead manager for the institutional subscription, as well as the underwriter for the public offering.
“We feel that the demand, for the investors, this is the right time for any kind of an IPO. The macro-environment has been very favorable in general,” Rohit Chugh, CEO of Arabian Mills, told Arab News.
He added: “Secondly, as a company, we have seen about close to three years of privatization, which has given us an adequate amount of time to sort of reflect on our performance, which has been fantastic.”
This period has also allowed potential investors to review the company’s financial performance over the last two and a half years, giving them a complete view and boosting their confidence in the firm’s stability and prospects.
“Also, we have very good, strategic plans in place as far as future plans go, and now that we are very clear in terms of our vision, so if you take the past and the future, then it’s a very exciting time as far as we are concerned,” Chugh said.
He added: “In reality, the shareholders continue to remain invested. They’re very positive about the company, and that’s why they are just selling 30 percent of their shareholding to the new investors.”
Specifically, Alajlan Brothers will retain 35 percent, AlRajhi will keep about 25 percent, and NADEC will hold 10 percent, making up the 70 percent of shares that will remain with the existing investors.
“The 30 percent of the shareholding is what they have offered at a lucrative IPO price to the new investors because they feel that, with the growth plans, which we have in place for the future, they would like to invite new investors, to come and pitch in and be a part of this whole success story as we move,” the CEO said in the interview.
Expansion plans
Rohit Chugh, CEO of Arabian Mills. Supplied
Chugh stated that the company is currently focused on expanding its presence in new regions within Saudi Arabia.
Although they are already well-established in the Kingdom’s central, northern, and southern parts, they recognize significant opportunities in other areas they haven’t yet explored.
“Therefore, we are planning to tap those growth opportunities in the western, eastern and the northern parts of the country by opening up distribution centers. West, for example, is where Makkah, Madinah is,” he said.
Chugh continued: “If you talk about the east, a lot of action is happening there as well. The Tabuk north side is where the NEOM projects will be coming up in the future, so we want to be a part of the growth journey, tapping all the right corners in Saudi Arabia.”
Currently, the company is not planning to expand into international markets because it is focused on selling wheat flour at subsidized prices through its arrangement with the General Food Security Authority. However, they are open to exploring export opportunities in the future.
Given their significant milling capacity and robust infrastructure in Saudi Arabia and the Gulf Cooperation Council, they are well-positioned to handle such opportunities if they arise.
For now, their focus remains on their existing operations, and any decision to expand internationally would depend on the conditions at that time.
IPO trajectory
The company’s CEO underlined that when setting the IPO price, the management aimed to ensure that investors would have the opportunity to make a profit.
When asked about his forecast or trajectory stock, Chugh said they could have set a higher price, but they chose a lower cost to attract new investors who would join them in the company’s growth journey.
The intention was to leave some potential for capital appreciation, as the management believes the firm’s true value is higher than the IPO price.
“That’s where we see that there should be a positive trajectory in the coming time. Obviously, this is subject to market conditions and global conditions,” he said.
Chugh added: “Nobody can predict that. But yes, we are optimistic as a company that we have priced it at the right pricing, like we got at SR66.”
He believes there are strong growth prospects in Saudi Arabia, driven by the country’s Vision 2030, which is set to have an impact well beyond its target year.
“Obviously, the next four, five years are critical for us, but we are even looking beyond that to the next 15, 20 years and seeing how we can take this organization to fulfill its maximum potential as part of the Vision 2030 and beyond,” Chugh said.
NMDC Energy soars 20% on debut after UAE’s largest IPO of 2024
Updated 11 September 2024
Reem Walid
RIYADH: The energy division of NMDC Group experienced a remarkable debut as its shares surged 20 percent after raising 3.22 billion dirhams ($877 million) in the UAE’s largest initial public offering of the year.
On the Abu Dhabi Securities Exchange, NMDC Energy’s shares, initially priced at 2.8 dirhams, opened at 3.35 dirhams, reflecting a significant 20 percent increase.
The company, which specializes in engineering, procurement, and construction services for both offshore and onshore clients, surpassed the previous largest IPO of the year, Alef Education Holding Plc’s $515 million offering.
The IPO for NMDC Energy involved the sale of 1.15 billion shares, which were 31.3 times oversubscribed, with total demand reaching 88 billion dirhams, according to a press release.
This strong debut underscores investor confidence in the company’s future and reinforces ADX as a pivotal platform for growth opportunities.
The successful IPO also aligns with ADX’s objective to expand market offerings and foster sustainable economic development in the UAE, according to the press release.
Abdulla Salem Al-Nuaimi, group CEO of ADX, said: “We are pleased to welcome NMDC Energy to ADX, furthering our vision of a dynamic and diversified capital market. With its expertise in the energy sector and innovative track record, NMDC Energy strengthens our market and offers investors access to the UAE’s sustainable growth.”
He added: “The 88 billion dirhams demand for this listing reflects investor trust in ADX and underscores our role in portfolio diversification for our investors and issuer growth. As ADX’s sixth offering this year, it reinforces Abu Dhabi’s commitment to economic diversification, positioning the financial market as a key driver of sustainable development.”
In the first half of 2024, UAE IPO proceeds reached $1.3 billion, a 67 percent drop from last year, with ADX contributing $515 million, or 14 percent, of the total Gulf Cooperation Council IPO funds.
“Today marks a key milestone, not just for NMDC, but also for Abu Dhabi’s energy sector. Following a highly successful IPO, we are proud to list NMDC Energy on ADX and embark on an exciting new path forward,” said Ahmed Al-Dhaheri, CEO of NMDC Energy.
Established in 1973, NMDC Energy — formerly National Petroleum Construction Co. — serves major clients like Abu Dhabi National Oil Co. and Saudi Arabian Oil Co.
Closing Bell: Saudi benchmark index declines 1.84% amid mixed market movements
Updated 11 September 2024
MANAL AL-BARAKATI
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, shedding 220.2 points, or 1.84 percent, to close at 11,766.4.
The benchmark index saw a total trading turnover of SR6.15 billion ($1.66 billion), with 18 stocks advancing and 212 retreating.
In contrast, the Kingdom’s parallel market, Nomu, rose by 163.52 points, or 0.64 percent, ending the day at 25,764.1. In this market, 25 stocks advanced while 38 declined.
Additionally, the MSCI Tadawul Index fell by 28.96 points, or 1.94 percent, to close at 1,463.16.
The best-performing stock was Al-Baha Investment and Development Co., with its share price rising 5.56 percent to SR0.19.
Other notable performers included Middle East Specialized Cables Co., which saw a 5.24 percent increase in its share price, and Alistithmar AREIC Diversified REIT Fund, which rose by 5.12 percent.
On the downside, Saudi Fisheries Co. was the worst performer, with its share price falling by 10 percent to SR23.94.
ARTEX Industrial Investment Co. and Red Sea International Co. also saw their share prices slip by 5.13 percent and 5.12 percent, respectively, closing at SR16.6 and SR48.2.
On the parallel market, Leaf Global Environmental Services Co. stood out as the top performer, with its share price surging 18.82 percent to SR101.
Other notable gainers in the Nomu market included Qomel Co., which rose 8.2 percent, and Edarat Communication and Information Technology Co., which saw a 6.74 percent increase.
The worst performer on the parallel market was Meyar Co., with its share price dropping 4.47 percent to SR62. Fad International Co. and Alhasoob Co. also experienced declines of 4.37 percent and 3.97 percent, respectively.
SAMA Healthy Water Factory has announced its intention to launch an initial public offering on the parallel market, Nomu, offering 30 percent of its shares to the public.
Based in Saudi Arabia, SAMA Healthy Water Factory specializes in the production and distribution of bottled water. This IPO is a strategic step in the company’s broader plan to expand its footprint in Saudi Arabia’s burgeoning water and beverage sector, while also raising capital for future growth and operational initiatives.
The move is expected to boost SAMA’s visibility and open up new investment opportunities. It aligns with Vision 2030’s goals of fostering private sector growth, diversifying the economy, and creating new prospects for both local and international investors.
By listing on Nomu, SAMA Healthy Water Factory aims to solidify its market position and contribute to the Kingdom’s ambitious economic transformation.
Wizz Air launches cheap flights between London, Jeddah
Overnight route will run daily using new Airbus long-haul A321XLR planes
The route will launch in March, with tickets already on sale for £135
Updated 11 September 2024
Arab News
LONDON: People in the UK will be able to reach Saudi Arabia for significantly reduced prices after budget carrier Wizz Air launched new flights from London.
The seven-hour overnight route will run from March 2025, connecting Gatwick Airport to Jeddah on new Airbus A321XLR aircraft. The carrier will also run a route to Abu Dhabi from the Italian city of Milan from June.
Tickets to Jeddah have gone on sale at £135 ($176.5), with each flight to carry up to 239 passengers.
The airline said some flights will be cheaper at $116.99 and run daily all year round, adding that they will connect “two vibrant cities.”
At a press conference in Jeddah, Andras Rado, Wizz Air’s head of communications and government affairs, said: “The Airbus A321XLR is the most cost-efficient aircraft of its class and, given the enhanced range capability, it enables Wizz Air to connect the furthest destinations in its network and further expand it, connecting cultures and continents.
“We’re excited to unlock unbeatable fares for our customers on the newly announced route to London, while offering the most sustainable option for flying … This new aircraft type marks a new era of ultra-low-fare travel on long-haul routes.”
Wizz Air will become one of the first operators of the new Airbus model, alongside Aer Lingus and Iberia, and has ordered 47 of the planes.
It is the furthest ranged of Airbus’s A320 aircraft, with a range of 8,700 km, and emits 30 percent fewer carbon emissions than its Boeing 757 and 767 competitors.
Stewart Wingate, CEO of Gatwick Airport, said the new model should help open more long-haul routes for the travel hub.
Wizz Air hopes that the new route to Jeddah will undercut British Airways. In a press release, Wizz Air said it “remains committed to expanding its presence in Saudi Arabia and beyond.”
The airline added that it is “contributing to the country’s connectivity in line with Vision 2030 and following a partnership agreement with the Saudi Tourism Authority to increase connectivity to Europe and boost inbound visitors.”
