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Dar Global eyes Saudi Arabia and London expansion with new projects

Dar Global eyes Saudi Arabia and London expansion with new projects
Dar Global is one of the first Saudi homegrown brands to list on the London Stock Exchange. Dar Global
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Updated 21 August 2024
Reem Walid
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Dar Global eyes Saudi Arabia and London expansion with new projects

Dar Global eyes Saudi Arabia and London expansion with new projects
Updated 21 August 2024
Reem Walid
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RIYADH: London Stock Exchange-listed Dar Global is set to explore new projects in Saudi Arabia and London, marking a strategic expansion in two key markets.  

The luxury international real estate developer, a subsidiary of Saudi-based Dar Al Arkan, has appointed Rothschild & Co. as its financial advisor to guide this growth, the company said in a press release. 

As part of its strategy, acquisitions and joint ventures will play a crucial role in the company’s expansion plans in both markets, it added.  

Dar Global will be assisted by Dar Al Arkan in facilitating these moves within the Saudi market.  

The developer aims to leverage its success in partnering with landowners, government organizations, and leading luxury brands to deliver high-end investment opportunities to affluent, internationally mobile clients. 

This move follows the company’s earlier announcement in November 2023 to expand its presence in Saudi Arabia.  

Ziad El Chaar, CEO of Dar Global, said: “Our partnerships are key to our success and our deep-rooted commitment to delivering high-end bespoke investment opportunities for our clients will stand us in good stead as we forge ahead.”  

He added: “We look forward to further enhancing our presence in the key London market even as we work alongside our major shareholder Dar Al Arkan to consolidate our acquisitions and joint ventures in the Saudi market. We are pleased to be working with the Rothschild & Co team on advancing our ambitions as we reinforce our brand presence in the region.” 

Dar Global’s expansion follows its February 2023 listing on the London Stock Exchange, which valued the company at SR2.25 billion ($600 million). The move aims to increase the firm’s visibility and access to new capital. 

Originally created to manage the non-Saudi assets of Dar Al Arkan Real Estate, Dar Global focuses on second homes for internationally mobile clients, having delivered over 15,000 residential units with total assets of approximately $8.5 billion. 

Looking ahead, the group plans to expand into the hospitality sector by acquiring or developing hotels, with a strategy to sell them after three to five years of operation once revenue stabilizes. Its target markets include Spain, Dubai, and the Maldives, as well as Athens, Marrakesh, and London. 

Topics: main Dar Global Rothschild & Co

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AI can affect job market positively, say experts at Global AI Summit

AI can affect job market positively, say experts at Global AI Summit
Updated 6 sec ago
Khaldon Azhari
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AI can affect job market positively, say experts at Global AI Summit

AI can affect job market positively, say experts at Global AI Summit
  • AI’s wealth creation will need equitable distribution, says executive
  • Other experts believe firms will set right ethical ‘guardrails’ around AI
Updated 6 sec ago
Khaldon Azhari

RIYADH: Fears that the adoption of artificial intelligence will result in widespread job losses are overstated and there are likely considerable benefits to be derived from integrating the technology in the workplace, said experts during a panel discussion at the third Global AI Summit in Riyadh on Thursday.

Dr. Richard Benjamins, the co-CEO of RISE.ai, said AI would have an impact but probably in a positive way. “Some jobs will maybe disappear, but a lot of new jobs will be created,” he said.

He said the obvious negative was that some may lose their jobs, but AI could lead to greater productivity and even three- or four-day weekends. An important question was who would benefit.

“The question is, really, the issue of distribution of wealth,” he said. “Clearly, we are on a trend where there are increasing gaps between countries, and the haves and the have-nots.

“And within the countries also, the distribution is going to a few. I think a lot of people are worried about this and this has a huge impact on society.”

Benjamins said that most companies would regulate themselves to ensure their employees are not hurt in any way. However, there was also the possibility that employees would reject AI for fear of how it might affect their livelihoods.

Dr. Heather Doman, IBM’s global leader, responsible AI initiatives, said: “People are generally concerned … But I also want to say that I don’t personally feel that we need to slow down.

“Generally, we have learned, as with other technologies, that we can innovate and set the right guardrails around it, and that is what I believe we’re going to see.”

Benjamins added that AI must be used ethically. “I think AI is all about creating value and increasing productivity, but sometimes, even though the intention is positive and the use is legitimate, there might be, let’s say, negative, unintended consequences.

“If you speak about ethical AI, it’s to make sure that those unintended negative consequences are mitigated or prevented. And that requires what we call a methodology for responsible use of AI.”

He said that inaccuracies in AI could have varying consequences. If a social media algorithm is 1 percent inaccurate, it was probably not a big problem. But if a manufacturing process or healthcare analysis is 1 percent inaccurate, it could have significant consequences.

Simon Turner of Sofinnova Digital Medicine said: “I think we should go the way we’re going with healthcare in general … We’ve always had the guiderails, quality assurance, quality management, ethics committee approval, you know, a lot of work that’s been done in this space.

“AI is yet another tool, but not important. We’re just adding the same approach we’ve been using for years, which is always thinking first about the patient. So for us, it doesn’t really change much.”

Topics: GAIN 2024 Global AI Summit AI

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AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit
Updated 3 min 26 sec ago
Khaldon Azhari
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AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit
Updated 3 min 26 sec ago
Khaldon Azhari

RIYADH: Artificial intelligence experts have delivered their visions for the future of the technology at the 3rd Global AI Summit in Riyadh.

With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time.

Simon Turner, a partner at Sofinnova Digital Medicine, said: “In 10 years, I think we will have something that looks like what we’re talking about in terms of artificial general intelligence.

“So, I think we will have models that are more sophisticated, more intelligent than humans on basically any topic. I think that will be a very powerful and good thing, and I don’t think that it will be dangerous.”

Turner’s hope is that AI will be able create models that automate menial business tasks, freeing up employees’ time and producing value.

However, Dr. Richard Benjamins, the co-CEO of RISE.ai, said that artificial general intelligence may not be the key to the technology’s evolution.

“In 10 years, I believe that we will not have artificial general intelligence, so not general intelligence, but we will have much better problem solving,” he said.

“So, it’s not about emotions, about fear or power or what the AI wants or its intentions; it’s about solving hard problems, which we will use for business, and I think mostly in the context of the co-pilot concept. So, humans in the driving seat.”

But the danger, Benjamins added, is that human brain power may deteriorate as AI takes on all the hard work. Who remembers phone numbers anymore, he asked, when your mobile phone takes care of all the memory.

“I predict one of the jobs in the future will be to run a fitness center for your brain, because we don’t have to think anymore, we don’t have to be creative anymore,” Turner said.

“It’s all done by AI. So, I think that’s one of the risks that we hardly are seeing yet. In the future, we need to go to the gym to stay mentally healthy.”

But there is an upside to the evolution of AI, Turner added.

“In research, I think we’ll be making incredible groundbreaking biological discoveries. We’ll probably start getting towards the foundation of biology, understanding how we work, why we are the way we are, why we get diseases, how we potentially prevent them.

“When you go and see your GP, suddenly if some anomaly pops up, they’ll know what to do with you in a much more streamlined fashion.”

Topics: GAIN 2024

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Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock
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Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock

Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock

Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock
Updated 53 min 41 sec ago
MOHAMMED AL-KINANI
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Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock

Bapco Energies sells minority stake in Saudi Bahrain Pipeline Co. to BlackRock
Updated 53 min 41 sec ago
MOHAMMED AL-KINANI

JEDDAH: Bapco Energies has sold a minority stake in Saudi Bahrain Pipeline Co. to a BlackRock Diversified Infrastructure fund, marking the company’s first asset monetization.

According to the press release, the transaction involves BlackRock acquiring a minority interest in SBPC, which operates a 112 km pipeline transporting crude oil from Saudi Aramco to Bapco Refining. Despite this sale, Bapco Energies will maintain majority ownership and control of SBPC.

This strategic move is part of Bapco Energies’ broader efforts to support Bahrain’s goal of achieving net-zero carbon emissions by 2060. It highlights the company's commitment to investing in decarbonization initiatives across energy and utility sectors owned by the government.

Additionally, the deal underscores Bahrain’s growing role as a leader in innovative energy solutions by attracting significant global investors like BlackRock.

Mark Thomas, group CEO, Bapco Energies, said: “As we strive in Bapco Energies to maximize value across our investment portfolio, we are implementing a range of projects and initiatives that support comprehensive national development and capitalizing on our asset and operations management.”

He added: “These efforts are designed to not only enhance our economic resilience but also to foster innovation and sustainability within the energy sector. By doing so, we are contributing significantly to the national economy.” 

The release also revealed that the proceeds from the sale will be reinvested into Bapco Energies' capital.

In conjunction with the sale of SBPC shares, Bapco Energies and BlackRock have signed a memorandum of understanding to explore potential future collaborations on infrastructure and decarbonization projects in Bahrain.

The MoU outlines joint efforts to advance initiatives such as renewable energy development, electric vehicle charging networks, carbon capture, and biofuel operations.

The signing ceremony, held in Bahrain, was attended by Sheikh Nasser bin Hamad Al-Khalifa, chairman of Bapco Energies, and Mohamed bin Mubarak bin Daina, Bahrain’s minister of oil and environment. Senior representatives from both BlackRock and Bapco Energies were also present.

This agreement underscores the commitment of both organizations to reducing Bahrain’s carbon footprint and advancing sustainable energy solutions in the region.

“We are thrilled to partner with Bapco Energies. This investment in Saudi Bahrain Pipeline Company not only gives our investors exposure to a critical, contracted infrastructure asset, it also supports the modernization of a strategic asset for Bahrain as it seeks to achieve its decarbonization goal,” said Edward Winter, managing director, head of EMEA for Diversified Infrastructure at BlackRock. 

The partnership is seen as a key move to enhance foreign direct investment and support Bahrain’s sustainable development goals. 

Topics: energy

Islamic banks to outperform conventional banks in GCC, predicts Moody’s

Islamic banks to outperform conventional banks in GCC, predicts Moody’s
Updated 12 September 2024
Miguel Hadchity
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Islamic banks to outperform conventional banks in GCC, predicts Moody’s

Islamic banks to outperform conventional banks in GCC, predicts Moody’s
Updated 12 September 2024
Miguel Hadchity

RIYADH: Islamic financing in the Gulf Cooperation Council is expected to grow faster than conventional banking, according to a report by Moody’s Investors Service.

The report attributes this anticipated growth to rising demand for Shariah-compliant financial products and the inherent stability of Islamic banks’ net profit margins, which are shielded from potential shifts in US Federal Reserve monetary policy due to their fixed-rate retail financing models.

Consequently, GCC Islamic banks are projected to maintain a net profit margin advantage and superior returns on assets compared to conventional banks.

The report indicates that the profitability of Islamic banks in the GCC will remain robust over the next 12 to 18 months, driven by steady oil prices, large-scale economic diversification plans by governments, and strong business confidence. In particular, Saudi Arabia is expected to see pronounced growth in its non-oil sectors.

In a separate forecast, Moody’s predicts strong expansion in the global sukuk market for 2024, with issuance projected to reach $200 to $210 billion, an increase from under $200 billion in 2023. This growth is largely attributed to substantial sovereign issuance within the GCC, with Saudi Arabia leading the surge. The Kingdom saw a 138 percent increase in sukuk issuance in the first half of 2024, representing 37 percent of the global total.

The report also highlights that asset quality for Islamic banks will remain stable, supported by conservative lending practices and a focus on secure, low-risk financing, particularly in government-backed projects. Moderate regional inflation is expected to further reduce financing risks. However, the report notes that Saudi banks might face higher funding costs as non-interest-bearing deposits struggle to keep up with rising credit demand.

Saudi Arabia’s substantial government spending is anticipated to be sustained by oil prices over the next 12 to 18 months. As the largest Islamic banking system in the GCC and globally, Saudi Arabia will benefit from continued business, consumer, and investor confidence in non-oil sectors, particularly in the UAE.

The report also anticipates further consolidation within the Islamic banking sector, with smaller banks likely seeking mergers to enhance revenue and reduce costs. Recent examples include the merger of Kuwait Finance House with Ahli United Bank B.S.C. and a proposed merger between Boubyan Bank and Gulf Bank, which are expected to boost Islamic banking’s market share.

Topics: Finance

Pakistan central bank cuts key rate by 200 bps to 17.5%

Pakistan central bank cuts key rate by 200 bps to 17.5%
Updated 12 September 2024
Reuters
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Pakistan central bank cuts key rate by 200 bps to 17.5%

Pakistan central bank cuts key rate by 200 bps to 17.5%
  • Thursday’s move follows cuts of 150 bps in June, 100 bps in July that brought down the rate from an all-time high of 22% to 17.5%
  • Pakistan’s annual consumer price inflation rate slowed to 9.6% in August from a high of nearly 40% in May last year
Updated 12 September 2024
Reuters

ISLAMABAD: Pakistan’s central bank cut its key policy rate by 200 basis points to 17.5% on Thursday, it said in a statement, making it the third straight reduction since June as the country looks to spur growth as inflation eases.

Most respondents in a Reuters poll this week expected a cut of 150 basis points after inflation fell to single digits in August for the first time in nearly three years.

Thursday’s move follows cuts of 150 bps in June and 100 bps in July that have taken the rate from an all-time high of 22% — set in June 2023 and left unchanged for a year — to the current 17.5 percent.
Pakistan’s annual consumer price inflation rate slowed to 9.6 percent in August from a high of nearly 40 percent in May 2023.
Economic indicators have stabilized in the South Asian nation since last summer when the country came close to a default before a last-gasp bailout from the International Monetary Fund.
But concerns have risen once again with the global lender’s board yet to approve a staff level agreement struck in June for a new, $7 billion, three-year program.
The government initially said it expected the board approval in August, and later said it was likely in September. The issue is yet to be placed on the IMF board’s agenda.

Topics: Pakistan State Bank of Pakistan Interest Rate

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