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Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba

Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba
Ma’aden is aiming to expand tenfold by 2040. File
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Updated 01 October 2024
Nirmal Narayanan
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Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba

Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba
  • Decision comes a day after Ma’aden signed a non-binding agreement with Alba to potentially create global aluminum produce
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Updated 01 October 2024
Nirmal Narayanan
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RIYADH: Saudi Arabian Mining Co. has signed an agreement to acquire Saudi Basic Industries Corp.’s 20.62 percent shareholding in Aluminium Bahrain, or Alba, as it continues to pursue regional growth opportunities. 

According to a press statement, the sale proceeds are expected to be within a range of SR3.62 billion ($960 million) and SR3.97 billion. 

The decision to acquire SABIC’s share comes just a day after the mining firm, also known as Ma’aden, signed a non-binding agreement with Alba to potentially create a global aluminum producer.

The deal outlines plans to merge the Saudi firm’s aluminum operations with Alba’s.

 

 

In the statement, Ma’aden added that the transaction is indicative of its ambitions to expand tenfold by 2040, with its aluminum business a core contributing factor to that strategy.

“As we continue in our growth journey, the acquisition of shares in a highly experienced, well-developed regional and global aluminum player firmly supports our ambitions,” said Bob Wilt, CEO of Ma’aden. 

He added: “This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy.” 

In the statement, SABIC further said that the transaction will enable the company to optimize its portfolio, focus on its core business, and further strengthen its growth in the chemicals industry. 

 

 

“We value our fruitful partnership with Alba over the years, which has contributed significantly to SABIC’s growth,” said Abdulrahman Al-Fageeh, CEO of SABIC. 

He added: “Once this transaction is finalized, we will be better positioned to reinforce our strategy to become the preferred world leader in chemicals and support the successful realization of Saudi Vision 2030.” 

The chemical manufacturing company added that the transaction will also contribute to improved returns and the reallocation of capital to opportunities with higher margins.

SABIC further said that the completion of this transaction is conditional upon obtaining all regulatory approvals from relevant authorities in Saudi Arabia and Bahrain. 

Topics: Mining Saudi Arabian Mining Co. (Ma’aden) Saudi Basic Industries Corp. (SABIC) Aluminium Bahrain ma'aden Saudi mining Aluminium

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Saudi POS hits $4bn as education spending surges with 2nd-semester start 

Saudi POS hits $4bn as education spending surges with 2nd-semester start 
Updated 21 sec ago
Miguel Hadchity
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Saudi POS hits $4bn as education spending surges with 2nd-semester start 

Saudi POS hits $4bn as education spending surges with 2nd-semester start 
Updated 21 sec ago
Miguel Hadchity

RIYADH: Saudi Arabia’s point-of-sale transactions registered a weekly increase of 36.6 percent between Oct. 27 and Nov. 2, with the education sector leading the growth.

The Saudi Central Bank, also known as SAMA, recorded SR15.1 billion ($4.03 billion) in transactions over the seven-day period, with the education industry posting the highest sectoral increase at 79.3 percent to reach SR177.6 million.

This surge coincides with the start of the second semester on Nov. 17, similar to what was seen before the school year began in August.

SAMA figures showed that the clothing and footwear sector saw the second-largest rise, with a 63.7 percent jump to SR1.07 billion, reflecting a consistent trend in consumer spending during key academic periods.

This growth mirrored a similar pattern observed earlier in August this year, indicating a recurring trend in consumer spending within these two sectors.

Spending on telecommunication recorded the third largest surge, with a 51.9 percent positive change, reaching SR157.1 million. 

Expenditure on food and beverages followed with an uptick of 48.1 percent, reaching SR2.5 billion, claiming the biggest share of this week’s POS transaction value.

Recreation and culture followed with a 40.9 percent surge, reaching SR296 million.

Restaurants and cafes accounted for the second-largest POS transaction value, with SR2.1 billion. Miscellaneous goods and services followed at SR1.8 billion.

Spending in the leading three categories accounted for 42.8 percent or SR6.4 billion of the week’s total value.

At 11.8 percent, the smallest increase occurred in hotel spending, boosting total payments to SR328.4 million. Expenditures on construction and building materials came second, surging 19.1 percent to SR386 million. 

Geographically, Riyadh dominated POS transactions, representing 33.7 percent of the total, with expenses in the capital reaching SR5.11 billion — a 28.1 percent increase from the previous week. 

Jeddah followed with a 27.7 percent surge to SR1.93 billion, and Dammam came in third at SR745.7 million, up 28.8 percent.

Hail experienced the most significant rise in spending, increasing 65.1 percent to SR280.1 million. Tabouk and Abha followed, with expenditure surging 55.9 percent and 43 percent to SR324.8 million and SR187.4 million, respectively.

Regarding the number of transactions, Hail recorded the highest increase at 34 percent, reaching 4,427, followed by Tabouk with a 28.7 percent increase, achieving 5,312 transactions.

Topics: point-of-sale PoS

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Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024

Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024
Updated 05 November 2024
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Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024

Saudi Arabia, UAE invest $26.8m in Pakistan in Q1 of 2024
Updated 05 November 2024
Hasaan Ali Khan

 

ISLAMABAD: Pakistan’s foreign investment surged by 48 percent in the first quarter of the current fiscal year, according to state-run media reports on Tuesday.

Saudi Arabia and the UAE contributed a total of $26.8 million during this period. In 2023, Pakistan established the Special Investment Facilitation Council, a joint civil-military body aimed at expediting foreign investment decisions in key economic sectors, including agriculture, mining, minerals, and tourism.

This initiative came amid Pakistan’s ongoing economic crisis, which had pushed the country to the brink of a sovereign default. The crisis was mitigated by a crucial $3 billion bailout from the International Monetary Fund last year, preventing further economic collapse.

According to a breakdown shared by Radio Pakistan, China led foreign investments in the first quarter with $404 million, followed by the UAE’s $25 million and Saudi Arabia’s $1.8 million. Other notable contributors included Hong Kong, with $98 million; the UK, with $72 million; and the US, with $28 million.

Radio Pakistan reported: “A significant increase of 48 percent has been seen in foreign investment in Pakistan in the first quarter of the current fiscal year, reflecting the effective strategies of the Special Investment Facilitation Council.”

During a recent visit to Saudi Arabia and Qatar, Pakistan’s Prime Minister Shehbaz Sharif held talks with leaders from both nations to discuss boosting cooperation in trade, investment, and energy. Notably, in October, Pakistani and Saudi businesses signed 27 agreements and memorandums of understanding valued at $2.2 billion.

During Sharif’s visit to the Kingdom last week, the two countries agreed to increase this figure to $2.8 billion.

The UAE remains Pakistan’s third-largest trading partner, after China and the US, and serves as an important export market due to its proximity, which helps minimize transportation costs and facilitates trade exchanges.

In recent months, Sharif has been actively pursuing economic diplomacy in the region, focusing on securing investments, boosting trade, and improving regional connectivity.

Pakistan has sought to leverage its strategic position as a trade and transit hub, connecting landlocked Central Asian countries with the global market while promoting mutually beneficial economic partnerships with Gulf nations.

Topics: Pakistan Saudi Arabia UAE FDI IMF

Saudi Arabia’s CMF Select holds first-ever market event at LSE

Saudi Arabia’s CMF Select holds first-ever market event at LSE
Updated 49 min 7 sec ago
Miguel Hadchity
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Saudi Arabia’s CMF Select holds first-ever market event at LSE

Saudi Arabia’s CMF Select holds first-ever market event at LSE
Updated 49 min 7 sec ago
Miguel Hadchity

RIYADH: Saudi Arabia’s CMF Select has successfully concluded its inaugural international market event, hosted at the London Stock Exchange.

The gathering marked a key milestone for CMF Select, an initiative under the Saudi Tadawul Group, according to a press release.

 The event aimed to strengthen strategic partnerships between the Kingdom and global markets.

Organized by CMF Select, the event attracted more than 245 influential participants, including industry experts and investors from the UK, Saudi Arabia, and other international markets.

CMF Select is a targeted series of events under the CMF umbrella, focusing on specialized topics that are relevant to Saudi Arabia and its global partners.

Sarah Al-Suhaimi, chairperson of the Saudi Tadawul Group, said: “Today’s event is another step towards fostering strategic ties with international capital markets.”

She highlighted that the event “has strengthened the relationship between Saudi Arabia and the United Kingdom, facilitating growth opportunities, and setting the stage for enhanced cross-border investment across both capital markets.”

The chairperson added: “We are keen to continue this journey as CMF expands globally, creating new pathways for innovation in capital markets, and look forward to hosting a full-scale CMF London event in 2026.”

Michael Mainelli, the Lord Mayor of the City of London, saiid the  event highlighted the strength of the Saudi-UK partnership, underscoring both countries’ roles as global financial hubs within their regions.

He added: “The dialogue embodied a shared vision for driving growth, connecting capital markets, and unlocking new investment avenues. Together, we are paving the way for more impactful engagement between our financial sectors.”  

Discussions throughout the event focused on exploring economic and investment opportunities across a range of sectors, including finance, technology, and sustainable development.

One of the key themes of the event was sustainability and technological innovation – both central to Saudi Arabia’s Vision 2030.

Conversations explored how these areas could be advanced through international investment, with the goal of driving economic growth and resilience in both the Kingdom and the UK.

The press release also revealed that this initiative is part of a broader strategy to position Saudi Arabia as a global financial powerhouse, with the next edition of the event scheduled to take place in Riyadh from Feb. 18-20 2025, bringing together thought leaders and change makers from the world of global finance.

Topics: Tadawul LSE

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Saudi cabinet approves framework to boost foreign direct investment

Saudi cabinet approves framework to boost foreign direct investment
Updated 05 November 2024
Nadin Hassan
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Saudi cabinet approves framework to boost foreign direct investment

Saudi cabinet approves framework to boost foreign direct investment
Updated 05 November 2024
Nadin Hassan

RIYADH: The Saudi Cabinet has initially approved the national general framework and guiding principles for foreign direct investment, setting the stage for enhanced economic engagement with international organizations.

The session, chaired by Crown Prince Mohammed bin Salman, addressed significant developments on both domestic and international fronts, according to the Saudi Press Agency.

The Kingdom’s foreign direct investment inflows reached SR96 billion ($25.6 billion) in 2023, marking a 50 percent annual increase from the previous year.

The crown prince briefed the Cabinet on his recent discussions with leaders from several allied countries, focusing on bolstering ties across diverse sectors.

The Minister of Media, Salman Al-Dossary, highlighted that among these decisions the Cabinet authorized Saudi Arabia’s accession to the Cement and Concrete Breakthrough Initiative, launched on the sidelines of the UN Climate Change Conference.

This aligns with the Kingdom’s sustainability goals and commitment to the global climate agenda.

The Cabinet also approved an agreement with Qatar to avoid double taxation and prevent tax evasion.

This move underscores the Kingdom’s dedication to fostering economic cooperation within the Gulf region, facilitating smoother cross-border investments, and enhancing transparency in financial dealings.

In line with advancing Saudi Arabia’s capabilities in science and technology, the Cabinet also endorsed a framework agreement with the US to cooperate in civil aviation navigation and the peaceful exploration of outer space.

Additionally, the Cabinet also reviewed regional and international developments, with the crown prince briefing members on recent discussions with various heads of state focused on strengthening ties across multiple sectors.

The meeting highlighted the Kingdom’s efforts in regional peace initiatives, its commitment to global health challenges through the G20 platform, and recent advancements in the tourism sector.

During the session, the Cabinet commended the outcome of the second ministerial meeting of the Saudi-Indian Strategic Partnership Council economic and investment committee, highlighting the progress toward achieving the two countries’ shared goals.

This was mainly in the fields of industry, infrastructure, and technology, as well as agriculture, food security, climate sciences, and sustainable transportation.

Domestically, the Cabinet underlined the Kingdom’s significant advancement of 15 places in the 2023 international tourist revenue rankings compared to 2019, leading the top 50 rankings in an upward movement.

This achievement underscores the country’s global leadership and ongoing success in the tourism sector.

Topics: Saudi cabinet Foreign Direct Investment (FDI)

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Closing Bell: Saudi main index closes in red at 12,014

Closing Bell: Saudi main index closes in red at 12,014
Updated 05 November 2024
MIGUEL HADCHITY 
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Closing Bell: Saudi main index closes in red at 12,014

Closing Bell: Saudi main index closes in red at 12,014
Updated 05 November 2024
MIGUEL HADCHITY 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 24.37 points, or 0.20 percent, to close at 12,014.94.

The total trading turnover of the benchmark index was SR5.73 billion ($1.52 billion), as 86 of the listed stocks advanced, while 140 retreated.   

The MSCI Tadawul Index decreased by 4.65 points, or 0.31 percent, to close at 1,507.83.

The Kingdom’s parallel market Nomu surged, gaining 768.81 points, or 2.74 percent, to close at 28,831.58. This comes as 42 of the listed stocks advanced while 32 retreated.

The best-performing stock of the day was Riyadh Cables Group Co., with its share price surging by 6.95 percent to SR117.  

Other top performers included Arabian Cement Co., which saw its share price rise by 4.51 percent to SR25.50, and Al Moammar Information Systems Co., which saw a 4.38 percent increase to SR185.80. 

The worst performer of the day was Wataniya Insurance Co., whose share price fell by 9.96 percent to SR24.04.

Al-Etihad Cooperative Insurance Co. and Shatirah House Restaurant Co. also saw declines, with their shares dropping by 9.34 percent and 5.77 percent to SR18.44 and SR21.22, respectively.  

On the announcements front, Saudi Public Transport Co. announced its interim consolidated financial results for the first nine months of the current year. SAPTCO’s shares dropped in today’s trading session, dipping by 1.01 percent to reach SR21.58.

According to a Tadawul statement, the firm recorded a net loss of SR20.8 million in this period of the year, reflecting a 53.3 percent dip compared to the same term in 2023.

The decline in net profit for the current period, compared to the same period last year, is due to lower operating revenue from reduced public transportation operations, along with higher general and administrative expenses, increased finance costs, and higher zakat and tax, combined with a decrease in finance income.

The Saudi Arabian Cooperative Insurance Co. also announced its interim financial results for the same period ending on Sept. 30. SAICO’s shares dropped in today’s trading session, decreasing by 2.89 percent to SR14.78.

Net profit before zakat attributable to the shareholders for the current period amounted to SR43.2 million compared to SR65 million during the same period of the previous year, which was mainly due to a decrease of 44.9 percent in the net insurance service, which was affected by a decrease in medical business.

​​For the first nine months of this year, Abdullah Al Othaim Markets Co. revealed its results for the first nine months of this year, with total comprehensive income amounting to SR220.6 million – a year-on-year decrease of 30.4 percent.

Abdullah Al Othaim Markets Co.’s shares decreased in today’s trading session by 1.92 percent to reach SR11.24.

Gulf Insurance Group’s income over the same period also dropped – with the SR78.2 million it registered representing an annual fall of 19.7 percent.

GIG’s shares also saw declines by 0.84 percent to reach SR29.50. 

The individual investor subscription for Tamkeen Human Resources’ initial public offering on the Saudi stock market started Nov. 5 and runs until Nov. 6. 

According to a statement from the company, a total of 1.59 million shares, representing 20 percent of the offering, are allocated to individual investors at SR50 per share. 

The deadline for subscription and payment is Nov. 6, with the final allocation announced on Nov. 11. The minimum subscription is 10 shares, and the maximum is 250,000. Saudi Fransi Capital managed the initial public offering, which saw an institutional demand of SR55 billion, with coverage 138.2 times.

Topics: Closing Bell Saudi stock exchange Tadawul All Share Index (TASI)

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