KAUST is at the forefront of sustainable development in Saudi Arabia, says Byrne

Special KAUST President Edward Byrne explained that KAUST conducts its research in partnership with both government and commercial entities. AN photo
KAUST President Edward Byrne explained that KAUST conducts its research in partnership with both government and commercial entities. AN photo
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Updated 29 October 2024
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KAUST is at the forefront of sustainable development in Saudi Arabia, says Byrne

KAUST is at the forefront of sustainable development in Saudi Arabia, says Byrne

RIYADH: King Abdullah University of Science and Technology places a strong emphasis on sustainability, actively advancing carbon capture initiatives and coral reef protection in Saudi Arabia, according to its president.

Speaking to Arab News on the sidelines of the Future Investment Initiative event, Edward Byrne highlighted KAUST’s role in attracting foreign direct investments into the Kingdom through its research and development efforts.

“Sustainable development is at the heart of KAUST. There are incredibly exciting projects underway in a whole range of areas. But the work at KAUST, led by Carlos Duarte and his colleagues, is rejuvenating the fantastic coral reefs in the Red Sea with great success,” Byrne stated.

He further expressed enthusiasm for the university’s collaboration with Aramco on carbon capture, noting, “I am also very excited about the carbon capture work with Aramco, which is showing huge promise. We’re going to need more fossil fuel for many years, so I think this is really important for the environment.”

Byrne also mentioned KAUST’s expertise in sophisticated supercomputing, which will aid the Kingdom in managing large data sets. In November, KAUST unveiled Shaheen III, described as the most powerful supercomputer in the Middle East, according to the TOP500 report, which tracks supercomputer performance. This system is anticipated to play a crucial role in developing and testing predictive mathematical models.

Discussing how KAUST contributes to Saudi Arabia’s economic growth through foreign direct investment and partnerships, Byrne said: “You can’t build a solid house without bricks. And the scientific advances in KAUST are some of the major bricks. It will help build the economy of the nation. Our job now is to translate that brilliant science in so many areas—water, agriculture, health, environment, energy — into new companies, into new businesses for the Kingdom, and we are on the journey.”

Byrne emphasized that KAUST is a leading research powerhouse, translating its efforts into practical outcomes in vital areas for the Kingdom, including human health, innovative desalination methods, and genetically modified crops.

He explained that KAUST conducts its research in partnership with both government and commercial entities. “KAUST cannot do things in isolation. Many have been done in partnership with government departments in Saudi Arabia, but many have been done in commercial partnerships, both with large companies like Aramco, who are still our number one commercial partner, and with many spinoffs. There are over 400 spinoffs now operating in the Kingdom in all of these areas,” Byrne noted.

Additionally, the KAUST president highlighted the university's role in strengthening the private sector in Saudi Arabia by encouraging young graduates to become entrepreneurs. He mentioned that KAUST is equipping students with advanced technologies, including artificial intelligence, to meet the demands of the modern workforce.

“Even employers don’t fully understand the skill set that people will need, and the knowledge base they will need ten years from now in their industries. So, we are working to help understand that, unravel it, so we can make sure that Saudi Arabia is on the crest of the wave in how we’re educating our young people here,” Byrne said.


UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
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UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn

UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
  • Value-accretive transaction expected to boost earnings per share by at least 20% in 2025 compared to 2024
  • Transaction adds modern fleet of 32 tankers to ADNOC L&S’ fleet and expands its service portfolio

RIYADH: UAE’s ADNOC Logistics and Services has boosted its global position by acquiring an 80 percent stake in Navig8 TopCo. Holdings Inc. for $1.04 billion, strengthening its status as a prominent player in energy maritime transportation. 

The transaction includes a contractual commitment to acquire the remaining 20 percent by mid-2027, positioning ADNOC L&S for expanded global operations and increased shareholder value. 

Navig8, a prominent international shipping pool operator and commercial management company, brings a modern-owned fleet of 32 tankers and an established presence in 15 cities across five continents. 

The firm has investments in technical management services, is a marine fuels provider operating in over 1,000 ports globally, and has additional ventures within the marine sector. 

“The completion of this landmark acquisition is a significant milestone in our transformational growth strategy,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S. 

“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” Al-Masabi added.

The acquisition aligns with ADNOC L&S’ growth strategy, complementing its integration with Zakher Marine International in 2022 and reinforcing its ambition to expand its global reach and service portfolio. 

ZMI, an Abu Dhabi-based owner and operator of offshore support vessels, brought with it the world’s largest fleet of self-propelled jack-up barges. 

ZMI’s acquisition expanded ADNOC L&S’s fleet to over 300 vessels, reinforcing its position as the region’s largest integrated logistics provider and enabling the company to offer its customers a broader range of services. 

ADNOC L&S, a subsidiary of Abu Dhabi National Oil Co., will benefit from Navig8’s acquisition through expanded services, including commercial pooling, bunkering, technical management, and environmental, social, and governance-focused industrial and digital solutions. 

The acquisition is structured to ensure economic ownership of Navig8 starting from Jan. 1, 2024. 

The remaining 20 percent will be acquired in 2027 for deferred consideration ranging from $335 million to $450 million, depending on earnings before interest, taxes, depreciation, and amortization performance during the interim. 

Nicolas Busch, CEO of Navig8, expressed enthusiasm for the deal, saying: “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.” 

The acquisition is expected to deliver immediate financial benefits, with ADNOC L&S projecting a 20 percent increase in earnings per share by this year compared to the previous year. 

The company’s share price saw a 5.23 percent increase as of Jan. 8, 2:00 p.m. UAE time.

It anticipates annual synergies of at least $20 million by 2026, underscoring the value-accretive nature of the transaction. 


Saudi public funds boost domestic money market holdings to $11bn

Saudi public funds boost domestic money market holdings to $11bn
Updated 5 min 6 sec ago
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Saudi public funds boost domestic money market holdings to $11bn

Saudi public funds boost domestic money market holdings to $11bn

RIYADH: Saudi Arabia’s public funds ramped up their domestic money market investments to SR41.38 billion ($11.03 billion) in the third quarter of 2024, marking an 82.4 percent year-on-year increase, according to official data. 

Figures from the Saudi Central Bank, also known as SAMA, showed that the total value of assets held by these organizations rose to SR160.1 billion during the three months to the end of September, marking a 36.7 percent increase compared to the previous year.

The number of operating funds grew by 9.54 percent during this period, reaching a total of 310, while the number of subscribers rose by 50.65 percent, reaching 1.57 million.

Domestic holdings saw the highest growth rate at 41.8 percent, comprising 84 percent of the total portfolio, or SR134.43 billion. 

Other assets included 25.83 percent in shares, totaling SR41.24 billion, and 7.24 percent in sukuk and bonds, amounting to SR11.58 billion.

Real estate investments, valued at SR27.6 billion and accounting for 17.24 percent of the portfolio, are also considered domestic, according to SAMA.

Foreign allocations totaled SR25.66 billion, reflecting a 16 percent annual increase, and were spread across foreign shares, bonds, money market instruments, and other assets. 

As Saudi Arabia’s economy continues to expand under the Vision 2030 initiative, the banking sector has seen a notable increase in loan growth, outpacing the rise in deposits.

This trend reflects the growing demand for credit, driven by the Kingdom’s ongoing infrastructure projects, real estate developments, and rising consumer spending.

In this context, Saudi investment funds are increasing their allocations to money market instruments, such as short-term government securities, which provide liquid, low-risk options for capital. This helps banks manage short-term liquidity needs while limiting exposure to significant market risks.

This investment trend not only supports the broader stability of the banking sector but also aligns with the Kingdom’s economic growth, ensuring that financial institutions can meet the rising demand for credit while safeguarding their liquidity positions. 

The funds include both open-ended and closed-ended types, which are open to public investment and overseen by regulatory bodies like the Capital Market Authority.

The Saudi Public Investment Fund operates separately, focusing on long-term, strategic investments aligned with Saudi Vision 2030, and is not included in SAMA’s data.

According to SAMA, approximately 92 percent of active funds are open-ended, with assets totaling SR128.71 billion, while the remaining 8 percent are closed-ended, holding assets of SR31.38 billion.


Saudi Arabia’s M&A approvals surge 17.4% to reach record high

Saudi Arabia’s M&A approvals surge 17.4% to reach record high
Updated 37 min 3 sec ago
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Saudi Arabia’s M&A approvals surge 17.4% to reach record high

Saudi Arabia’s M&A approvals surge 17.4% to reach record high

RIYADH: Saudi Arabia saw a 17.4 percent surge in mergers and acquisitions approvals in 2024, reflecting the Kingdom’s efforts to strengthen its competitive business environment. 

The General Authority for Competition approved 202 economic concentration requests — the highest number in its history — with 10 additional applications still under review, according to its annual report. 

Economic concentration approvals are required for mergers and acquisitions to ensure they do not create monopolies or disrupt market competition. 

The surge in approvals aligns with GAC’s goal of implementing competition-enhancing policies, combating illegal monopolistic practices, and improving market performance to boost consumer and business confidence, attract investment, and promote sustainable development.

Saudi Arabia’s surging mergers and acquisitions market comes against a global backdrop of decline in the industry, with a GlobalData report released in December showing worldwide deal volume dropped 8.7 percent year-on-year in the first 11 months of 2024 — with the Middle East and Africa region seeing a relatively modest 5 percent decline. 

Acquisition deals dominated approvals in the Kingdom at 81 percent, followed by joint ventures at 15 percent, and mergers at just 2 percent, the report showed. 

The manufacturing sector led in activity, accounting for 67 of the approved requests, followed by the information and communications sector with 39, and wholesale and retail trade, along with motor vehicle and motorcycle repairs, with 22. 

Foreign companies also showed significant interest in the manufacturing sector, which claimed 28 percent of their concentration requests, followed by information and communications at 17 percent, and wholesale and retail trade at 15 percent. 

GAC noted a growing diversity in market activity, with requests received in emerging sectors like off-road tires, nicotine replacement therapy manufacturing, and industrial protective coatings. 

The Kingdom led the Middle East in mergers and acquisitions in the chemicals sector during the first quarter of 2024, closing deals worth $500 million. 

Additionally, the authority approved four new car agency registrations during the year and analyzed 53 percent of concentration requests based on horizontal relationships between entities operating within the same sector. Vertical and cluster relationships accounted for 16 percent and 31 percent of reviews, respectively. 

The surge in approvals aligns with Vision 2030, which aims to create a business-friendly environment that attracts foreign investment and supports sectoral growth. 

As Saudi Arabia strengthens its regulatory and economic frameworks, the surge in merger approvals reflects its ambition to establish itself as a regional hub for business and investment. 


Oman’s real estate market surges 28% to $8bn by November 2024

Oman’s real estate market surges 28% to $8bn by November 2024
Updated 44 min 23 sec ago
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Oman’s real estate market surges 28% to $8bn by November 2024

Oman’s real estate market surges 28% to $8bn by November 2024
  • Sale contracts in the sector rose 3.1% annually to 1.1 billion rials
  • Number of deals edged up 1.9% to 61,552

RIYADH: Oman’s real estate market maintained its upward trajectory in 2024, with transaction values soaring 28.1 percent year on year to 3.13 billion Omani rials ($8.13 billion) by November, official figures showed. 
According to data from the National Center for Statistics and Information, sale contracts in the sector rose 3.1 percent annually to 1.1 billion rials during the period, while the number of deals edged up 1.9 percent to 61,552, the Oman News Agency reported. 
The robust performance underscores broader optimism in Oman’s property market, with market intelligence firm Mordor Intelligence forecasting the residential real estate sector to grow at a compound annual rate of 9.19 percent, increasing from $4.38 billion in 2024 to $6.80 billion by 2029. 
The Omani government has introduced several initiatives to boost the growth of its real estate sector, including relaxing property ownership laws for foreigners and offering tax incentives to real estate developers. 
Oman’s population reached 5.27 million this month, with expatriates accounting for over 43 percent, or 2.28 million people. The significant expatriate presence has been vital in driving demand for residential and commercial properties, particularly in urban centers. 
Oman’s Vision 2040, the country’s strategic development plan, further underscores the importance of sustainability and innovation in the real estate sector. 
Data from NCSI said that the value of mortgage contracts surged by 44.8 percent year on year in the first 11 months of 2024, reaching 2.1 billion rials. 
The number of mortgage contracts declined by 12.2 percent during the January-to-November period, dropping to 18,846 from 21,461 in the same period of the previous year. 
Swap contracts also experienced significant growth, with 1,223 deals valued at 12.4 million rials by the end of November, an 18.1 percent increase from the previous year. 
The total number of issued properties reached 210,483 by the end of November, reflecting a slight 3.4 percent decline compared to the same period in 2023. 
Properties issued to Gulf Cooperation Council citizens saw a 6.8 percent annual rise, totalling 1,325 in the first eleven months of 2024. 


Saudi Arabia issues 36k investment licenses since Vision 2030 launch

Saudi Arabia issues 36k investment licenses since Vision 2030 launch
Updated 08 January 2025
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Saudi Arabia issues 36k investment licenses since Vision 2030 launch

Saudi Arabia issues 36k investment licenses since Vision 2030 launch

RIYADH: Saudi Arabia has now issued more than 36,000 investment licenses, a five-fold rise compared to the overall active permits before the launch of Vision 2030. 

According to the government-backed Invest Saudi platform, the Kingdom witnessed an 118 percent growth in entrepreneurial license issuance in 2024 compared to the previous year, while permits in the wholesale and retail trade sector increased by 123 percent during the same period. 

The Kingdom launched the Invest Saudi initiative to attract foreign direct investment by offering incentives, streamlining regulatory processes, and facilitating partnerships. 

As part of this, the Kingdom updated its investment law in August to ensure enhanced protections for international investors, including adherence to the rule of law, fair treatment, and property rights, while ensuring robust safeguards for intellectual property and facilitating smooth fund transfers.

“Saudi Arabia is growing steadily in achieving remarkable milestones and attracting investments, exceeding the targets of Saudi Vision 2030 with exceptional results in license issuance and the growth of promising sectors,” said Invest Saudi on X. 

It added that the most licensed sectors since the launch of Vision 2030 are manufacturing, construction, professional and scientific, as well as wholesale and retail trade, and information and communication technology. 

Invest Saudi further said that the Kingdom has surpassed its regional headquarters target outlined in the Vision 2030 program, as more than 500 international firms have established their Middle Eastern base in the country.

The Kingdom’s regional headquarters program provides benefits for international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities for companies, as well as discounts and support services. 

Some of the major companies that have launched their regional headquarters in Saudi Arabia include US-based multinational investment banks Morgan Stanley and Citi Group, as well as BlackRock Inc., Northern Trust, Bechtel, and PepsiCo. 

Invest Saudi is supporting the Kingdom’s National Investment Strategy, which is aiming to increase FDI by more than 20x from SR17 billion ($4.5 billion) in 2019 to SR388 billion in 2030.

It is also targeting increasing investment from 22 percent of GDP in 2019 to 30 percent by the end of the decade.