UAE completes Arab world’s first nuclear plant/node/2570228/business-economy
UAE completes Arab world’s first nuclear plant
A general view of the power plant in the Gharbiya region of Abu Dhabi on the Gulf coastline about 50 kilometers west of Ruwais. File/AFP/Barakah Nuclear Power Plant
It will generate 25 percent of the electricity needs
The station will power companies including the Abu Dhabi National Oil Company, Emirates Steel and Emirates Global Aluminium
Updated 05 September 2024
AFP
DUBAI: The UAE on Thursday announced the completion of the Arab world’s first nuclear power plant, calling it a “significant step.”
Abu Dhabi’s Barakah Nuclear Energy Plant will produce 40 terawatt-hours of electricity annually after its fourth and final reactor has entered commercial operation, the state-owned Emirates Nuclear Energy Corporation (ENEC) said in a statement.
It will generate 25 percent of the electricity needs of the hot, desert Gulf state, where air-conditioning is ubiquitous — nearly the equivalent of New Zealand’s annual consumption, ENEC said.
The station will power companies including the Abu Dhabi National Oil Company, one of the world’s biggest oil producers, Emirates Steel and Emirates Global Aluminium, ENEC said.
The UAE has officially commenced full commercial operations at the Barakah Nuclear Power Plant, following the activation of its fourth unit today. This milestone makes the UAE the first country in the region to generate 25% of its electricity from clean energy sources. pic.twitter.com/rN3pPQMNnW
Barakah, which means “blessing” in Arabic, started operations in 2020 when the first of its four reactors went into service.
Saudi Arabia, the world’s top oil exporter, has also said it plans to build nuclear reactors.
Emirati President Sheikh Mohammed bin Zayed hailed Barakah’s completion as a “significant step on the journey toward net zero.”
“We will continue to prioritize energy security and sustainability for the benefit of our nation and our people today and tomorrow,” he said in a post on social media platform X.
According to the International Atomic Energy Agency, the plant “will have to be disassembled at the end of its useful life, in around 60-80 years.”
With the start of operations at Unit 4 of the Barakah Nuclear Energy Plant, the UAE has taken another significant step on the journey towards net zero. We will continue to prioritise energy security and sustainability for the benefit of our nation and our people today and…
The UAE, which is made up of seven emirates, including the capital Abu Dhabi and economic hub Dubai, is one of the largest oil producers in the OPEC cartel.
The country was largely built on oil but is spending billions to develop enough renewable energy to cover half of its needs by 2050.
Last year, it hosted the COP28 UN climate talks which resulted in an agreement to “transition away” from fossil fuels.
The UAE lies across the Gulf from Iran which has a Russian-built nuclear power plant outside the coastal city of Bushehr, as well as a controversial uranium enrichment program.
The UAE has repeatedly said its nuclear ambitions are for “peaceful purposes” and ruled out developing any enrichment program or nuclear reprocessing technologies.
The country uses gas-powered stations for much of its electricity needs, but also has one of the world’s biggest solar plants outside Abu Dhabi.
RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 57.75 points, or 0.49 percent, to close at 11,900.30 on Sunday.
The benchmark index saw a total trading turnover of SR4.14 billion ($1.10 billion), with 138 stocks advancing and 80 declining.
The Kingdom’s parallel market Nomu fell by 164.65 points, or 0.63 percent, to finish at 25,769.95, as 19 stocks advanced and 46 retreated.
The MSCI Tadawul Index increased by 7.12 points, or 0.48 percent, ending the day at 1,478.60.
The top performer of the day was Saudi Fisheries Co., with its share price surging 9.93 percent to SR25.35.
Other top gainers included Amlak International Finance Co. and Saudi Arabian Cooperative Insurance Co., with their share prices rising by 7.59 percent and 7.36 percent, respectively.
The worst performer was Al-Baha Investment and Development Co., which saw its share price drop by 5.56 percent to SR0.17. Middle East Specialized Cables Co. saw a decline of 1.99 percent, while First Milling Co. dropped by 1.83 percent.
On the announcements front, Riyad Capital, acting as the sole financial adviser, lead manager, bookrunner, and underwriter for Fourth Milling Co.’s initial public offering, has revealed the offering price range and the start of the institutional book-building period.
According to a Tadawul statement, the price range for the offering is set between SR5 and SR5.30 per share, with the book-building period running from Sept. 15 to 19.
The offering includes 162 million ordinary shares, representing 30 percent of Fourth Milling’s current share capital. Participating parties can apply for a minimum of 300,000 shares, with a maximum of 26.99 million shares available.
The financial adviser may reduce the number of shares allocated to participating parties to 129.6 million, or 80 percent of the total offer, to accommodate individual demand. Up to 32.4 million shares, or 20 percent, will be allocated to individual subscribers.
The total offering size is projected to range from SR810 million to SR858.6 million, suggesting a market capitalization of SR2.7 billion to SR2.8 billion at listing. The company will have a free float of 30 percent of shares post-listing.
The Capital Market Authority has also approved the registration and offering of 3 million shares of Multi Business Group for Projects Co., representing 20 percent of the firm’s share capital, in the parallel market. The offer will be limited to qualified investors, with the prospectus to be published ahead of the offering.
The CMA also approved the registration and offering of 337,500 shares of Digital Research Co. and 250,000 shares of Balsm Alofoq Medical Co., both representing 20 percent of each firm’s share capital, in the parallel market.
The offering for Al-Majed for Oud Co. was held on Sept. 15, with Saudi Fransi Capital serving as the lead manager and Banque Saudi Fransi and Al-Rajhi Bank acting as receiving entities. The retail offering comprised 1.5 million shares, each priced at SR94.
Nestle to build its first Saudi manufacturing plant in Jeddah
Updated 14 min 39 sec ago
MOHAMMED AL-KINANI
JEDDAH: Swiss food and beverage company Nestle has signed an agreement to establish its first manufacturing plant in Saudi Arabia.
The new facility will be located on a 117,000 sq. meter site in Jeddah’s Third Industrial City.
The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, announced the agreement, which was formalized in the presence of Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef, who also serves as MODON’s chairman.
The signing ceremony, held on Sept.15 in Jeddah, was also attended by Majed Al-Argoubi, CEO of MODON, and Robert Helou, CEO of Nestle Saudi Arabia, according to the Saudi Press Agency.
Slated to open in 2025, the plant represents an initial investment of SR270 million ($72 million). The project is set to enhance local production capabilities, contribute to sustainable food security in the Kingdom, and meet local demand while enabling exports to other Middle Eastern and North African markets.
The initiative aligns with Saudi Arabia’s broader efforts to improve food security by diversifying and localizing food sources and reducing import dependency. In support of the National Industrial Strategy, MODON is advancing the food sector through the development of industry clusters in Jeddah’s second and third industrial cities, aimed at strengthening supply chains and boosting exports.
With an initial production target of 15,000 tonnes annually, the plant is expected to foster growth in the region’s food manufacturing industry. The factory will focus on producing food for children and will feature an automated production line with advanced packaging and filling technologies operated by highly skilled local professionals.
The project is anticipated to create hundreds of direct and indirect jobs and will include a central warehouse, an industrial services building, an advanced laboratory, and an administrative office.
Saudi Arabia launches strategy to boost market transparency, foreign investment
Plan’s objectives include creating strong debt market and boosting global competitiveness of asset management industry
Blueprint comprises three pillars and over 40 initiatives designed to propel the market’s growth and efficiency
Updated 15 September 2024
MANAL AL-BARAKATI
RIYADH: Saudi Arabia’s Capital Market Authority has unveiled a plan for 2024-2026 to develop a robust debt market and enhance the international competitiveness of its asset management industry.
The strategy emphasizes safeguarding investors’ rights by increasing transparency and ensuring market integrity. It revolves around three main pillars and includes over 40 initiatives aimed at boosting market growth and efficiency. A key aspect of this approach is enhancing the stock market’s role in capital raising.
To achieve this, the authority plans to introduce special purpose acquisition companies on the parallel market and facilitate the issuance of Saudi depositary receipts. These measures are designed to offer more diverse investment opportunities and make the market more attractive to both domestic and international investors.
Highlighting the plan’s bold objectives, CMA Chairman Mohammed El-Kuwaiz said: “Our new strategy emphasizes the creation of a robust debt market, the enhancement of the asset management industry, and the attraction of increased investments to the national economy.”
The top official made these remarks during the Debt Markets and Derivatives Forum held in Riyadh last week.
The undertaking will build on past successes while aligning with Saudi Vision 2030, which supports the national economy by facilitating an advanced financial ecosystem and attracting international investments.
The plan focuses on increasing transparency, spurring innovation in financial technology, and expanding financing options. It represents a significant step toward realizing the goals of Saudi Vision 2030, which seeks to enhance the national economy by creating a sophisticated financial ecosystem and attracting global investments.
These initiatives are designed to build on past achievements and position Saudi Arabia as a leading financial hub in the region.
Additionally, the CMA is focusing on developing the sukuk and debt instruments market by creating regulatory frameworks for green, social, and sustainable debt instruments. This aligns with the global push toward environmental, social, and governance criteria.
To stimulate market activity and support Saudi Arabia’s broader financial sector development goals, the CMA is simplifying the regulatory processes for offering, listing, and registering debt instruments. The objectives include increasing the stock market’s value to 80.8 percent of gross domestic product by 2025, up from 66.5 percent in 2019, and expanding the debt instruments market to 24.1 percent of GDP by the same year.
Central to this strategy is a strong emphasis on investor protection, which involves enhancing market transparency and supervisory mechanisms.
In response to recent increases in penalties and compensation for market violations, El-Kuwaiz highlighted the importance of protecting investor interests. “Trust is vital for a successful market,” he said, underscoring the CMA’s commitment to developing class action compensation procedures and improving the resolution process for complaints between financial institutions and their clients. These efforts are aimed at creating a transparent, accountable market environment that strengthens investor confidence.
The CMA’s plan also emphasizes empowering the financial market ecosystem, particularly through support for financial technology, or fintech.
Recognizing the crucial role of technology in fostering competition and efficiency within the financial sector, the CMA intends to promote the growth of fintech companies and facilitate open finance applications within the market framework. This strategy aims to integrate advanced technologies into the financial sector, streamlining operations and enhancing user experiences.
Building on the successes of the CMA’s 2021-2023 agenda, which saw a significant 52 percent increase in the number of listed companies—from 204 in 2019 to over 310 by the end of 2023—the new strategic plan seeks to further advance the market. These achievements have laid a solid foundation for the current strategy, highlighting the global recognition of the Saudi financial market’s expanding prominence.
The new plan aims to enhance the market’s appeal to foreign investors, with the goal of establishing the Saudi financial market as a regional and international leader by the end of 2026. This includes doubling the number of companies licensed to engage in fintech activities and increasing the volume of managed assets.
A notable aspect of the plan is its comprehensive approach to regulatory reforms and market development. This includes reforms to regulatory frameworks for offerings and listings, the development of investment fund regulations, and improvements to class action compensation procedures. The CMA’s focus on enabling more flexible fund structures and advancing the asset management industry reflects a forward-thinking approach to market growth and sophistication.
The CMA’s initiatives reflect the Kingdom’s ambition to position itself as a leading regional and global financial hub. By concentrating on ESG-aligned financial instruments, enhancing market transparency, and prioritizing investor protection, the CMA is laying the groundwork for a sustainable and resilient market environment.
Combined total represented 11.4% of the sultanate’s total banking sector assets
Islamic banking sector rose by 10.4%, amounting to around 6.4 billion rials
Updated 15 September 2024
MIGUEL HADCHITY
RIYADH: The combined assets of Oman’s Islamic banks and windows reached around 7.8 billion Omani rials ($20.2 billion) by June, an 18.1 percent increase from the same period in 2023.
According to data from the central bank, the combined total represented 11.4 percent of the sultanate’s total banking sector assets.
The analysis showed that total financing provided by the Islamic banking sector rose by 10.4 percent, amounting to around 6.4 billion rials.
Deposits in Islamic financial institutions and windows also grew by 14.7 percent, reaching nearly 6 billion rials by the end of June.
The growth in Oman aligns with a broader regional trend. A report by Moody’s Investors Service predicts that Islamic financing across the Gulf Cooperation Council will outpace conventional banking, driven by increasing demand for Shariah-compliant financial products and the stability of Islamic banks’ net profit margins.
Unlike conventional banks, Islamic institutions benefit from fixed-rate retail financing, insulating them from US Federal Reserve monetary policy shifts.
As a result, GCC Islamic banks are expected to maintain superior returns on assets and a stronger net profit margin compared to conventional counterparts.
Moody’s said that the profitability of Islamic financial institutions in the GCC will remain strong over the next 12 to 18 months, fueled by stable oil prices, ambitious economic diversification efforts, and strong business confidence.
Globally, the sukuk market is also set to expand, with Moody’s projecting issuance to reach $200 to $210 billion in 2024, up from under $200 billion in 2023.
Startup Wrap – MENA funding drops in August; recovery signs emerge in September
Updated 15 September 2024
Nour El-Shaeri
RIYADH: The startup ecosystem across the Middle East and North Africa experienced a substantial decline in investment in August, with total funding reaching $83 million across 30 rounds.
This reflects a 76 percent drop from July’s $355 million and a 24 percent year-on-year decrease, according to Wamda and Digital Digest’s monthly report.
Unlike previous months, August did not see any megadeals, with the largest round being UAE-based Yuze’s $30 million deal. Debt financing played a minimal role, accounting for only 3 percent of the total raised capital.
The UAE once again led the region in startup investments, as 13 UAE-based startups raised $55.7 million.
Saudi Arabia followed with $16 million secured across nine deals. Egypt, which had been a top performer in July, saw a sharp decline, raising just $7.6 million from four deals, while Kuwait made it to the top four with a single deal — Kem’s $3 million raise.
Investor interest remained concentrated on fintech, which continued to be the most funded sector for the third consecutive month, raising $54 million across eight deals. Web3 also regained momentum, securing $13.5 million in three rounds, while food tech reappeared on the scene, raising $9 million through four deals.
The month was dominated by early-stage funding, with two startups raising a total of $19 million in Series A rounds, and five startups raising $15.6 million in seed rounds. Seven startups did not disclose their funding stages, accounting for $35.4 million of the total investment.
Business-to-business models remained highly attractive to investors, with 13 startups raising $46 million. Business-to-consumer models attracted $15 million across five rounds, while the remaining funds went to startups operating in both sectors.
Female-led startups continued to face challenges in raising capital, securing just 0.3 percent of the total investment in August. Only one female-founded startup, Powder Beauty, raised an undisclosed pre-series A round, and another female co-founded startup received a $150,000 accelerator grant.
The MENA entrepreneurial ecosystem also saw other notable developments in August, including the formation of the Waad Investment firm, a coalition of Gulf-based family offices targeting a $200 million fund, and a $100 million fund launched by Singapore-based Gate Ventures and the Blockchain Center in Abu Dhabi to promote Web3 innovation.
In Egypt, T-Vencubator launched the “Where’s the Problem?” initiative to support the local startup ecosystem.
On the mergers and acquisitions front, August saw the UAE-based property crowdfunding platform Maisour acquired by Meteora Developers, while Kuwait-based proptech Sakan acquired Qatari company Hapondo.
FlapKap raises $34m in pre-series A round
UAE-based fintech FlapKap raised $34 million in a pre-series A round consisting of both debt and equity financing. The round was led by BECO Capital, with additional participation from Pact VC, A15, Nclude, QED Investors, and debt financing from Channel Capital.
Founded in Egypt in 2022 by Ahmad Coucha, Khaled Nassef, Sherif Bichara, and Kunal Harisinghani, FlapKap offers revenue-based and embedded finance solutions to help small and medium-sized enterprises scale up their inventory and digital ad spending with fast access to capital and the flexibility to pay later.
The new capital will enable FlapKap to expand its SME financing services across the Gulf and the broader Middle East region. The company previously raised $3.6 million in a seed round, bringing its total funding to $37.6 million.
Paymob raises $22m in series B extension
Egypt-based fintech Paymob secured an additional $22 million in a series B extension round, bringing the company’s total Series B funding to $72 million.
The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst, as well as existing investors including PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures.
Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants.Supplied
Founded in 2015 by Islam Shawky, Alain El-Hajj, and Mostafa El-Menessy, Paymob provides digital payment solutions to both online and offline merchants. The additional funding will help the company pursue its growth strategy across the MENA region.
HissaTech secures $666k in pre-seed funding
Saudi Arabia-based proptech HissaTech raised SR2.5 million ($666,164) in a pre-seed round led by undisclosed angel investors.
Founded in 2024 by Ali Al-Shareef, HissaTech provides a platform that allows individuals to co-own properties, offering rental income and potential capital gains, making property investment more accessible to smaller investors.
The company plans to use the funding to expand its customer base, enhance its digital platform, and build strategic partnerships within the property tech sector.
Entlaq acquires stake in food tech Brotinni
Egypt-based entrepreneurship support company Entlaq has acquired a stake in Brotinni, an Egyptian food tech startup, for an undisclosed amount.
Founded in 2020 by Dalia Abu Omar, Brotinni operates as a dark store, providing customers with online access to meat and poultry products.
The investment will support Brotinni’s plans to expand its operations both within Egypt and in regional markets. The company previously raised $600,000 in a seed round in 2022, led by Innlife Investments.
IO Kitchens closes $2.8m seed round
Oman-based cloud kitchen startup IO Kitchens has closed a $2.8 million seed round, led by Tanmia Small-Cap Fund, with additional backing from regional family offices and investors.
Founded in 2021 by Hisham Hasan, IO Kitchens operates delivery-only cloud kitchens and manages a portfolio of over 30 food and beverage brands. The funding will allow the company to scale its operations across Oman.
Oyster raises $59m, reaches $1.2bn valuation
Lebanese-founded Oyster raised $59 million in its latest series D funding round, reaching a valuation of $1.2 billion.
Founded by Lebanese entrepreneur Tony Jamous, the company offers a payroll and human resources platform that specializes in distributed workforces or global employment.
The new funding brings Oyster’s total raised to $286 million and pushes its valuation to $1.2 billion, up from $1 billion in 2022 when it secured its $150 million series C.
This marks a notable achievement, as the company has maintained its valuation while many tech firms have faced downturns amid challenging market conditions, according to a report by Tech Crunch.
“We’ve grown significantly, more than 7x in two years, and we improved our margins tremendously. It’s a completely different business financially. So I’m glad that we did not have a down round, which would have been the expected scenario if we didn’t grow that much and improved the business in that time,” Jamous told Tech Crunch.
