Closing Bell: Saudi main index slips to close at 11,769

The total trading turnover of the benchmark index was SR6.20 billion, as 19 of the stocks advanced and 213 retreated. Shutterstock

Short Url

https://arab.news/vdv8q

Updated 06 October 2024

REEM WALID

October 06, 2024 17:27

Closing Bell: Saudi main index slips to close at 11,769

Parallel market Nomu lost 259.40 points, or 1.04%, to close at 24,655.96
MSCI Tadawul Index lost 22.10 points, or 1.48%, to close at 1,474.92

Updated 06 October 2024

REEM WALID

October 06, 2024 17:27

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 188.50 points, or 1.58 percent, to close at 11,769.04.

The total trading turnover of the benchmark index was SR6.20 billion ($1.65 billion), as 19 of the stocks advanced and 213 retreated.

The Kingdom’s parallel market Nomu lost 259.40 points, or 1.04 percent, to close at 24,655.96. This comes as 17 of the listed stocks advanced while 48 retreated.

The MSCI Tadawul Index lost 22.10 points, or 1.48 percent, to close at 1,474.92.

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price rose 7.14 percent to SR0.30.

United Wire Factories Co. and Kingdom Holding Co. were among the other top performers.

The worst performer was Saudi Ceramic Co., whose share price dropped 7.26 percent to SR28.75.

Other worst performers were Elm Co. and Arab Sea Information System Co.

Announcements

Almarai Co. has announced its interim condensed consolidated financial results for the period ending on Sept. 30. According to a Tadawul statement, the firm recorded a net profit of SR1.88 billion in the first nine months of the year, reflecting a 12.15 percent surge compared to the same period in 2023.

The increase in consolidated profits attributable to the company’s shareholders in the current period compared to last year is due to higher revenue growth, disciplined cost control, a favorable product mix, and stabilized commodity costs.

Al-Etihad Cooperative Insurance Co. has announced that it is signing a contract with the Ministry of Human Resources and Social Development to ensure the financial dues of non-Saudi workers in the private sector per the agreed terms and conditions and the insurance policy approved by the Insurance Authority.

A bourse filing revealed that the one-year SR391 million contract provides insurance coverage for the financial dues of non-Saudi workers in the delinquent entities of the private sector, in cooperation with several Saudi insurance and reinsurance companies, and in accordance with the agreed terms and conditions for one year. This will commence from the date of signing the agreement with the Ministry of Human Resources and Social Development and after obtaining the final approval of the Insurance Authority.

The policy represents the cooperation between the Ministry of Human Resources and Social Development and the Insurance Authority to protect the financial rights of non-Saudi workers in delinquent entities according to the ministry’s classification.

The insurance cover includes wages, unpaid dues, and a return ticket to the worker’s home country within the agreed-upon cover limits and following an agreed set of terms and conditions.

It is expected that the financial impact of this agreement will be reflected in the company’s financial performance starting from the fourth quarter of the year.

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

Aramco to increase borrowing, focus on dividend growth, CFO says

Updated 15 sec ago

Reem Walid

November 21, 2024 16:13

Aramco to increase borrowing, focus on dividend growth, CFO says

Updated 15 sec ago

Reem Walid

November 21, 2024 16:13

RIYADH: Saudi Aramco plans to increase borrowing and focus on enhancing its dividend distribution strategy, revealed the company’s chief financial officer.

In an interview with Bloomberg, Ziad Al-Murshed explained that this move is part of the company’s efforts to optimize its capital structure.

Aramco is considered one of the pillars of the Saudi economy, encompassing the entire oil production chain, from hydrocarbon extraction to energy generation, as well as refining and commercial distribution activities.

“You’ll see us do a couple of things. One is, just take on more debt compared to use of equity,” Al-Murshed said during the interview.

“It’s nothing to do with the dividend, it is optimizing our capital structure so that we end up with a lower weighted average cost of capital,” he added.

Aramco returned to the debt market earlier this year after a three-year hiatus, raising $9 billion in two separate issuances. In June, it launched a $6 billion offering of dollar-denominated bonds, followed by a $3 billion issuance of Islamic bonds in September.

The CFO noted: “We had the luxury of sitting out those three years until the market became conducive.”

Al-Murshed provided insight into how the company increased its dividend by 4 percent in each of the past two years and is now paying over $81 billion in base dividends.

“We’re looking for it to be progressive over the years,” he said, adding that the company’s free cash flow supports this strategy.

While the company plans to issue debt regularly, Al-Murshed emphasized that it will not be overly frequent and revealed that Aramco has no plans to sell more debt for the remainder of 2024.

“We want to be active, but we don’t want to be too active,” he said.

The CFO further clarified that the company’s decision to sell debt is primarily aimed at broadening its investor base.

Al-Murshed did not specify whether Aramco would borrow to support its dividend payments, which are set to total $124 billion this year, exceeding the company’s earnings.

Earlier this month, Aramco reported a net profit of SR103.37 billion ($27.52 billion) for the third quarter of 2024, exceeding analyst expectations, which had projected a median net income of $26.9 billion.

However, in a statement released at the time, the company noted a 15.4 percent decline in net profit compared to the same period in 2023, attributed to challenging market conditions, including lower prices for crude oil, refined products, and chemicals.

Aramco’s vision remains to be the world’s leading integrated energy and chemicals company, operating in a safe, sustainable, and reliable manner.

Topics: Aramco Saudi Aramco

Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Updated 10 min 22 sec ago

MIGUEL HADCHITY

November 21, 2024 16:04

Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Ma’aden said its shareholders will convene virtually on Dec. 11 to approve the capital increase
Plan includes issuing 111 million new ordinary shares valued at SR10 each

Updated 10 min 22 sec ago

MIGUEL HADCHITY

November 21, 2024 16:04

RIYADH: Saudi Arabian Mining Co., or Ma’aden, has issued a shareholder circular outlining the terms of its plan to raise its share capital to SR38.03 billion ($10.1 billion) from SR36.92 billion to boost its phosphate business.

The move follows an earlier announcement to acquire a 25 percent stake in Ma’aden Wa’ad Al-Shamal Phosphate Co. from Mosaic Phosphates B.V., increasing its ownership in the joint venture to 85 percent.

In April, Ma’aden announced the signing of an agreement to acquire 210.93 million shares owned by Mosaic Co. and its subsidiary, Mosaic Phosphates B.V. Regulatory approval for the transaction was granted in November by the Capital Market Authority.

In a bourse filing, Ma’aden said its shareholders will convene virtually on Dec. 11 to approve the capital increase. The plan includes issuing 111 million new ordinary shares valued at SR10 each, representing a 3.01 percent rise in the company’s share capital.

In exchange, Mosaic Phosphates will transfer its MWSPC stake to Ma’aden, aligning with the Saudi firm’s strategic expansion in the phosphate sector.

MWSPC, established in 2014 and based in Turaif, is a joint venture between Ma’aden, Mosaic Co., and Saudi Basic Industries Corp. Following the transaction, SABIC will retain its 15 percent stake while Ma’aden strengthens its position as a global phosphate leader.

Mosaic Netherlands Holding Co., a subsidiary of Mosaic Co., will receive the newly issued shares, which will be subject to a three-year lock-up period. Limited transfers will begin in the fourth year, with full tradability by the fifth year, the circular said.

The acquisition will enhance Ma’aden’s control over MWSPC, recognized as a low-cost, large-scale phosphate producer. It will also grant Ma’aden access to Mosaic’s marketing rights, a component of the deal’s valuation at SR5.62 billion.

Ma’aden expects increased earnings per share following the transaction, reflecting anticipated synergies and enhanced operational efficiencies, according to the document.

The company assured shareholders that all regulatory approvals for the transaction have been secured, with a detailed timeline for procedural steps provided in the circular.

The move underscores Ma’aden’s commitment to driving value creation in the Kingdom’s mining sector, aligning with Saudi Vision 2030 goals to diversify the economy and develop industrial capabilities.

In the first half of this year, Ma’aden achieved a net profit of SR2 billion, marking a 160 percent increase compared to the same period in 2023.

The surge in profitability was driven by several key factors. A major contributor to this financial success was the significant boost in sales volume, according to a Tadawul statement.

The company’s robust performance in primary aluminum and gold sales played a crucial role in driving up revenues. Ma’aden also benefited from reductions in raw material costs and lower depreciation expenses, which further enhanced its profitability.

Ma’aden’s performance and strategic advancements underscore its commitment to leading the mining sector and contributing to Saudi Arabia’s economic diversification goals, particularly in developing mining as a critical pillar of the Kingdom’s industry.

Topics: Saudi Arabia Mining Saudi Arabian Mining Co. (Ma’aden) Ma’aden Saudi mining

Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues

Updated 21 November 2024

Nour El-Shaeri

November 21, 2024 14:26

Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues

Updated 21 November 2024

Nour El-Shaeri

November 21, 2024 14:26

RIYADH: Saudi Arabia emphasized the need for comprehensive strategic frameworks to tackle global economic, climate, and development challenges during the seventh Urban 20 Summit in Rio de Janeiro.

A delegation led by Fahd Al-Rasheed, adviser to the General Secretariat of the Saudi Council of Ministers, participated in several key discussions at the event, highlighting the Kingdom’s urban development strategies and its commitment to sustainability, social inclusion, and economic empowerment on a global scale.

Speaking about the country’s approach to urban transformation, Al-Rasheed said: “Saudi Arabia has adopted a comprehensive strategic framework for urban development and transformation that empowers city leadership to pursue the initiatives that drive their growth and success.”

He also underlined that the U20, which unites cities from G20 member states, is vital in facilitating tools such as financing models to support cities in achieving their goals.

Al-Rasheed gave those remarks during a panel discussion titled “Empowering Cities on their Own Paths to Development,” which included global urban leaders such as Edward Glaeser of Harvard University, Nasiphi Moya, mayor of Pretoria, and Kate Gallego, mayor of Phoenix.

At the summit, Al-Rasheed also attended the launch of the first U20 book, a compilation of insights from global urbanists addressing shared challenges faced by metropolizes.

His contribution, titled “Enlightened City Leadership: A New Model for a Sustainable Urban Future,” highlighted the importance of training city leaders to manage the complexities of modern urban administration.

“Delivering on urban development imperatives requires comprehensive strategic planning that embraces governance, resourcing, and competitive advantage,” he remarked.

Al-Rasheed pointed to projections that cities with populations exceeding 1 million will increase from 700 today to 1,600 by 2080.

To meet the growing demand, he underlined that approximately 2 million urban leadership professionals will need to be trained over the next 35 years.

“Urban development plans must include mechanisms to address pervasive issues, including poverty and social inclusion while preparing the next generation of city leaders to confront the deluge of challenges that cities will continue to face worldwide,” he said.

Al-Rasheed further explained that although many institutions offer training in disciplines such as urban planning, civil engineering, and public administration, there remains a lack of programs providing a comprehensive curriculum specifically focused on preparing city leaders to address both the technical and socioeconomic aspects of their roles.

The U20 summit concluded with a closed-door session attended by Luiz Inacio Lula da Silva, president of Brazil, where Al-Rasheed reiterated the Kingdom’s commitment to sustainability and social equity in urban development.

“We are proud to represent Saudi Arabia’s unique perspective and experience in urban development on this important global stage,” he said, according to press release, adding: “We look forward to continuing Saudi Arabia’s legacy of leadership at the Urban 20 and to continuing our work with urban leaders from around the world to unify city voices around common challenges.”

Among the highlights of the delegation’s activities was a mayoral dinner co-hosted by Al-Rasheed and Eduardo Paes, mayor of Rio de Janeiro and chair of this year’s Urban 20.

The event brought together more than 100 city leaders, including the mayors of major cities such as Paris, Pretoria, Helsinki, and Phoenix, to celebrate civic leadership and its impact on urban development.

Representatives from multinational organizations, such as Anaclaudia Rossbach, executive director of UN-Habitat, also attended the gathering.

In his opening remarks at the dinner, Al-Rasheed said: “Mayoral leadership calls for a unique combination of abilities to anticipate and navigate future trends, including technological disruptions, economic shifts, and demographic changes, while demonstrating the social sensitivity to care for and improve citizens’ daily lives.”

He added: “By convening senior city leaders from around the world to address the common challenges of urban development and city leadership, Saudi Arabia continues to demonstrate its commitment to global collaboration in the spirit of the Urban 20.”

Topics: G20 Urban 20 (U20) mayors summit Fahd Al-Rasheed

British Airways reverses plan to axe Bahrain flights amid outcry

Updated 21 November 2024

Arab News

November 21, 2024 14:10

British Airways reverses plan to axe Bahrain flights amid outcry

Ex-UK defense secretary: Cancelation would have sent ‘totally the wrong message’
Decision to scrap Kuwait route remains ‘under review’

Updated 21 November 2024

Arab News

November 21, 2024 14:10

LONDON: British Airways has reversed a decision to scrap direct flights to Bahrain following a backlash, the Daily Mail reported.

However, flights to nearby Kuwait are still set to be suspended in March as part of previous plans aimed at tackling financially unviable flights at the airline.

Earlier this month, the Mail reported that BA had planned to cancel the Bahrain and Kuwait routes after almost a century of service.

The Gulf states have long had close ties to Britain, and the decision reportedly angered officials in Manama. Airline staff who served on the two routes were also set to lose their jobs.

Though the Kuwait route axing remains “under review,” the initial decision to cancel the Bahrain route would have sent “totally the wrong message” about the UK’s diplomatic stance toward the Gulf region, former Defense Secretary Liam Fox told the Mail.

Thousands of residents in Bahrain with close ties to the UK launched a petition demanding that the route remain available.

Bahrain hosts a Royal Navy base at Mina Salman Port, and the country has long had close commercial and trade ties with the UK.

BA said in a statement: “Following discussions with our partners and stakeholders, we can confirm we will operate a service between London Heathrow and Bahrain International Airport three times a week from the start of the summer 2025 season. This will increase to a daily service from the start of the Winter 2025 season.”

BA’s predecessor Imperial Airways first launched flights to Bahrain in 1971.

Manama became a key financial hub in the Gulf partly due to the presence of London-based Standard Chartered, which set up the country’s first bank in 1920.

Bahrain’s sovereign wealth fund, the Mumtalakat, owns McLaren, the UK luxury automotive manufacturer.

The fund plans to expand its British holdings through a series of investments, the Mail reported earlier this year.

The UK is also negotiating a free trade deal with the Gulf Cooperation Council, which includes Bahrain and Kuwait.

The six GCC countries combined represent the UK’s fourth-largest export market after the US, the EU and China.

Mohamed Yousif Al-Binfalah, chief of the Bahrain Airport Co., said: “We are delighted to witness British Airways continue operations at Bahrain International Airport.

“As the oldest airline operating out of Bahrain for over 92 years, the enduring partnership with British Airways is a testament to our shared commitment to excellence.”

Topics: aviation British Airways UK Bahrain

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Updated 21 November 2024

MIGUEL HADCHITY

November 21, 2024 13:14

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Updated 21 November 2024

MIGUEL HADCHITY

November 21, 2024 13:14

RIYADH: Saudi Arabia launched initiatives and signed 15 agreements at the Local Content Forum, boosting domestic industries with an estimated SR12.4 billion ($3.3 billion) impact on gross domestic product.

The deals, signed on the first day of the three-day event in Riyadh, span multiple strategic sectors, including manufacturing, technology, and transportation.

The Local Content and Government Procurement Authority launched several initiatives aimed at driving the localization of key industries, aligning with broader economic goals.

The agreements include partnerships designed to localize manufacturing, transfer knowledge, and foster innovation, the Saudi Press Agency reported.

Key deals included:

Two agreements with Saudi National Automotive Manufacturing Co. to localize and transfer knowledge for multi-purpose vehicles and light transport vehicles.
Five agreements with NAFFCO for the localization of firefighting products, including dry powder extinguishers, trailer-mounted pumps, complete personal breathing devices, various types of fire extinguishers, and fire hoses.
Agreements with Alfanar and Hewlett Packard Enterprise to localize and transfer knowledge for data center servers.
A deal with InnovEra to localize manufacturing and knowledge transfer of directional devices.
An agreement with Al-Salah Arabia to localize the manufacturing of bridge expansion joints.
A partnership with Saffen Co. for the localization of oxygen sensor production.
A deal with SAJA Pharmaceutical Co. for the production of “Empagliflozin.”
An agreement with Coastal Co. to localize stadium seat manufacturing.

Wattenha program

Sadara Chemical Co. launched its “Wattenha” program, highlighting its contribution to Saudi Arabia’s localization efforts. The program aims to support domestic suppliers, develop human capital, and enhance manufacturing capabilities.

In the first half of 2024, Sadara reported a local content rate of 50.25 percent, surpassing industry benchmarks, with SR3 billion spent on Saudi procurement.

Locally manufactured products made up 43 percent of its offerings, and Saudization reached 77.8 percent, according to a press release.

A notable achievement is Sadara’s pipeline system connecting its facilities to the PlasChem complex, which supplies critical raw materials like ethylene oxide and propylene oxide, reducing costs and reliance on imports.

Logistics and transportation

Saudi Arabia Railways, in partnership with LCGPA, launched a SR15 billion Saudization program in the sector. This initiative, unveiled by Minister of Transport and Logistics Saleh Al-Jasser, aims to localize manufacturing, boost operational efficiency, and create up to 3,000 jobs by 2030.

The minister emphasized that this program reflects the partnership between SAR and the private sector, in collaboration with the LCGPA, according to SPA.

Automotive manufacturing

The forum also highlighted the Kingdom’s plans for the automotive industry, including the goal to produce 500,000 vehicles annually by 2030.

Ongoing negotiations with Hyundai underline Saudi Arabia’s commitment to becoming a hub for automobile manufacturing.

The Global Supply Chain Resilience Initiative, valued at SR100 billion, is driving 95 strategic projects, with a focus on value chain development and export promotion. Additionally, three automotive manufacturing complexes were announced, furthering the localization of this critical sector.

Diverse initiatives

The forum featured discussions on the future of local content in industries such as agriculture, energy, and industrial services. Programs introduced by the LCGPA aim to reduce reliance on imports, enhance local supply chain resilience, and foster innovation.

The “Golden Category” of the Made in Saudi program was also launched, aimed at integrating local suppliers into global supply chains and highlighting Saudi-made products on the world stage.

The initiative, overseen by the Saudi Export Development Authority, promotes local products and supports exports.

Minister of Investment Khalid Al-Falih emphasized that local content is a crucial driver of the economy, impacting key industries such as energy, industry, and tourism, among others.

He highlighted that achieving growth targets requires a highly competitive investment climate, with the private sector playing a vital role in boosting the Kingdom’s exports while meeting the demands of its growing economy.

Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef further emphasized the importance of locally produced products that offer high quality and competitive advantages as a key requirement for achieving local content goals and maximizing its economic impact.

During his remarks at the forum, Alkhorayef stated that local content is one of the central pillars for achieving Saudi Arabia’s Vision 2030, as its development directly influences the execution of the initiative’s programs.

Alkhorayef also discussed the significant role of the private sector in advancing local content development, noting that the LCGPA implements local content through fostering strategic partnerships and facilitating the Local Content Coordination Council.

This council includes several major national companies, which have worked closely with the authority to increase local content in their operations and procurements.

Topics: Local Content Forum Saudization Bandar bin Ibrahim Alkhorayef

Closing Bell: Saudi main index slips to close at 11,769

Closing Bell: Saudi main index slips to close at 11,769

Closing Bell: Saudi main index closes in red at 12,044

Closing Bell: Saudi main index closes in green at 12,254

Aramco to increase borrowing, focus on dividend growth, CFO says

Aramco to increase borrowing, focus on dividend growth, CFO says

Aramco signs agreement to advance SASREF expansion

Saudi Aramco reports $27.52bn net profit in Q3

Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Saudi entertainment sector to create 450,000 jobs by 2030: Investment ministry

Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues

Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues

Saudi Arabia foreign minister urges a balanced energy transition at G20 Summit session

U20 Mayors Summit: Reimagining the city in the age of COVID-19

British Airways reverses plan to axe Bahrain flights amid outcry

British Airways reverses plan to axe Bahrain flights amid outcry

British Airways to resume Jeddah operations, enhancing UK-Saudi connectivity

British Airways suspends bookings to Cairo, Morocco amid short-haul block

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Saudi local content projects valued at $213bn by Q3 2024, says Alkhorayef

Johnson Controls Arabia partners with ICAD to boost local content

Latest updates

Sri Lanka’s new president to keep predecessor’s controversial IMF bailout program

Libya’s Derna hosts theater festival year after flash flood

Israeli foreign minister says ICC “lost all legitimacy” with Netanyahu, Gallant ruling

UN to hold high-level conference on Rohingya crisis next year

Aramco to increase borrowing, focus on dividend growth, CFO says

Recommended

How Israel’s UNRWA ban will impact Palestinians in Gaza and the West Bank

First responders in the line of fire as Israel and Hezbollah battle it out in Lebanon

Annual Dubai forum dedicated to futurism explores ways to ‘empower generations’

Search form

Print Edition

Search form

Search form

You are here

Closing Bell: Saudi main index slips to close at 11,769

Closing Bell: Saudi main index slips to close at 11,769

Related

Aramco to increase borrowing, focus on dividend growth, CFO says

Related

Saudi Arabia's Ma’aden proceeds with $10bn capital raise to boost phosphate stake

Related

Saudi Urban 20 delegation emphasizes need for frameworks to tackle development issues

Related

British Airways reverses plan to axe Bahrain flights amid outcry

Related

Saudi GDP to receive $3bn boost after raft of deals at Local Content Forum

Related

Latest updates

Recommended

Search form

Print Edition