Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor /node/2608273/business-economy
Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
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The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan. Supplied
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The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan. Supplied
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The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan. Supplied
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The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan. Supplied
Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
District will include Diriyah Arena, three mixed-use office buildings, and parking facility
It is expected to contribute around SR70 billion to GDP
Updated 16 July 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s entertainment landscape is set for a major boost with the awarding of a SR5.75 billion ($1.53 billion) contract to construct a 20,000-seat arena as part of the Diriyah development.
Diriyah Co., a subsidiary of the Public Investment Fund, has awarded the contract to a branch of China Harbor Engineering Co. for the Arena Block, a district that will include the Diriyah Arena, three mixed-use office buildings, and a parking facility, the company announced.
Spanning approximately 74,000 sq. meters, the Diriyah Arena is designed to host concerts, sports, esports, exhibitions, and live performances to attract residents and international visitors.
The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan and aims to transform the Kingdom’s economic and tourism sectors.
Upon completion, it is expected to contribute around SR70 billion to the gross domestic product, generate nearly 180,000 jobs, and accommodate approximately 100,000 residents.
“The iconic Diriyah Arena will be a landmark entertainment complex in Diriyah that reinforces the City of Earth’s growing global role in shaping Saudi Arabia’s artistic and cultural future, in alignment with Vision 2030,” Jerry Inzerillo, group CEO of Diriyah Co., said.
The contract is the latest step in the company’s ongoing 2025 development drive, marking continued progress on the project.
Yang Zhiyuan, CEO of the Chinese firm for the Middle East, said: “CHEC will bring to the project a wealth of global experience, technical expertise, and a proven track record in delivering the complex.”
Designed by global firm HKS Inc., the structure blends traditional Najdi architecture with modern elements, reflecting Diriyah’s cultural heritage and global outlook.
The broader Arena Block will also include three mixed-use office buildings designed by John McAslan + Partners, covering 114,000 sq. meters, along with over 4,000 parking spaces to support the stadium and surrounding offices.
Gold edges down on stronger dollar, Powell’s remarks in focus
Updated 9 sec ago
Reuters
BENGALURU: Gold prices edged lower on Friday on a stronger dollar while investors awaited US Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole symposium that could offer fresh clues on the monetary policy path.
Spot gold fell 0.3 percent to $3,329.19 per ounce by 9:07 a.m. Saudi time. US gold futures for December delivery lost 0.3 percent to $3,372.10.
The US dollar index hovered near a two-week high, making gold less attractive to overseas buyers.
Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month as investors geared up for Powell’s speech, due at 5:00 p.m. Saudi time on Friday.
“With a Russia-Ukraine peace deal still a possibility, and the USD attracting some buyers, gold is facing headwinds,” KCM Trade chief market analyst Tim Waterer said.
“But if Powell’s message is interpreted as being a dovish shift, the USD could be undone, and gold may be on the move higher again.”
Futures markets indicate a 75 percent chance of a quarter-point rate reduction next month, according to CME’s FedWatch tool.
Recent labor data showed US jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.
The challenge for Fed policymakers is that even though there are signs of labor market weakening, inflation remains above the central bank’s 2 percent target and could go higher due to the Trump administration’s aggressive tariff hikes.
Russian President Vladimir Putin is demanding that Ukraine give up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, three sources familiar with top-level Kremlin thinking told Reuters.
Elsewhere, spot silver was down 0.4 percent to $38.01 per ounce, platinum fell 0.6 percent to $1,345.06, and palladium rose 0.2 percent to $1,113.19.
Saudi Fund for Development continues lending helping hand to emerging economies
Updated 22 August 2025
Nirmal Narayanan
RIYADH: At a time when the world is getting fragmented due to geopolitical tensions and ongoing wars, Saudi Arabia’s development fund is becoming a beacon of hope, as it continues to provide soft loans and grants for emerging economies.
Established in 1974 and commenced operations in 1975, the Saudi Fund for Development has financed more than 800 development projects in over 100 countries, with a cumulative value exceeding $21 billion.
SFD’s financing spans across multiple sectors, including health, education, and transport, as well as water and energy, with the aim of improving living conditions, enhancing capacity building, and creating job opportunities for millions of people in emerging nations.
As the fund now celebrates its 50th year of operations, SFD’s offerings for developing nations show no signs of slowing down.
Here are the highlights of its activities so far this year:
Water security project in Somalia
The signing of the MoU between SFD and Somalia. SFD
In January, Sultan Abdulrahman Al-Marshad, CEO of SFD, signed a memorandum of understanding with Bihi Egeh, Somalia’s minister of finance, to provide a $2 million grant from the Kingdom through the fund.
The grant was part of the fifth phase of the Saudi Well Drilling and Rural Development Program in Africa.
The deal aims to enhance access to clean water in Somalia’s rural areas by drilling wells and establishing solar-powered water supply networks.
“This initiative seeks to enhance water and food security, provide safe drinking water, combat water scarcity, and reduce reliance on contaminated water sources in Somalia,” said SFD in a statement at the time.
The program, valued at $330 million, has provided clean drinking water to over 5 million people since its initiation.
Launched in 1982, the Saudi Well Drilling and Rural Development Program has addressed the needs of African nations by funding the construction of more than 10,000 potable water facilities in 20 countries across the continent.
Power expansion project in Suriname
SFD CEO Sultan Abdulrahman Al-Marshad signed an agreement with Kermechend Raghoebarsing, minister of finance and planning of Suriname. SFD
In February, SFD signed an agreement to provide its first concessional development loan, worth $20 million, to Suriname to expand the country’s power generation, transmission, and distribution systems.
SFD said the project aims to expand the electricity transmission and distribution network in Paramaribo, the capital, and the city of Nickerie, boosting power supply for beneficiaries and improving the efficiency of the South American nation’s electrical grid.
“This agreement represents the beginning of development cooperation between SFD and the Republic of Suriname, underscoring SFD’s 50-year commitment to supporting developing nations in overcoming economic, social, and developmental challenges,” said SFD.
Transport and housing solutions in Maldives
In April, the fund signed a second development loan agreement valued at $17 million to support the expansion and development of the Velana International Airport Project in the Maldives, bringing SFD’s total financing for the facility to $217 million.
The fund said that the financing will be used to construct terminal buildings for international and domestic flights, as well as a seaplane terminal.
“The project is designed to increase the airport’s capacity to accommodate up to 7 million passengers annually, enhance operational efficiency, and meet the growing demand for travel and tourism,” said SFD.
The project is also expected to prepare the facility for future expansion to handle up to 15 million passengers per year, contributing to the economic growth and global connectivity of the South Asian nation.
Al-Marshad participated in the groundbreaking ceremony for the Affordable Housing Project in the Maldives.
The project is being financed through a $25 million concessional development loan from SFD.
It aims to provide more than 400 fully integrated housing units, benefitting over 2,700 individuals, and includes the development of essential infrastructure and services to ensure suitable and sustainable living conditions.
It also seeks to enhance resilience against natural disasters such as cyclones and flooding, while promoting economic and social development within local communities.
Since 1978, SFD has provided 17 development loans to the Maldives, financing 14 key projects and programs with a total value exceeding $488 million.
These projects span critical sectors such as transportation, water and sanitation, health, and infrastructure.
Renewable energy loan to Solomon Islands
SFD CEO Sultan Abdulrahman Al-Marshad signed a development loan agreement with the Solomon Islands’ Minister of Finance and Treasury Manasseh Sogavare. SFD
In April, SFD signed its first-ever development loan agreement with the Solomon Islands, valued at $10 million, to finance a renewable energy project.
The fund will help the construction of solar power plants with a total capacity of 35.5 megawatts, integrated with hourly energy storage systems to bolster the Pacific nation’s energy infrastructure.
“This initiative is designed to reduce reliance on conventional energy sources, support environmental sustainability, and advance the UN Sustainable Development Goals, while contributing to economic and social progress across the region,” said SFD.
This first-ever loan agreement also marked the beginning of development cooperation between SFD and the Solomon Islands, underscoring the fund’s growing role in supporting small island developing states to combat developmental, economic, and environmental challenges.
Multiple development projects in Tunisia
In March, SFD successfully handed over 330 residential units under its social housing development project in the Ben Arous governorate in Tunisia.
The initial phase of the project, supported by concessional financing from the SFD, valued at $150 million, aims to deliver 4,715 social housing units, spanning several governorates in the North African country.
In June, SFD also signed a new development loan agreement worth $38 million to finance the establishment of an Oasis Hub Project in southern Tunisia.
The project aims to support sustainable rural development through the reclamation of more than 1,000 hectares of agricultural land across various regions of the country.
It also includes the drilling and equipping of 22 wells, the expansion of rural villages and their infrastructure, and the construction of over 285 housing units for local beneficiaries.
“The project will enhance the region’s infrastructure by building roads, pipelines, and networks for potable and irrigation water, while also supporting the development of educational institutions, agricultural facilities, and cultural, social, and commercial centers,” said SFD.
“These efforts collectively aim to improve the quality of life and stimulate economic and social growth in Tunisia’s southern governorates,” it added.
Since the inception of its operations in Tunisia in 1975, SFD has financed 32 development projects and programs, through concessional loans totaling more than $1.2 billion.
Tunisia has also received grants from Saudi Arabia through SFD, amounting to over $102 million.
Oil Updates — crude prices set to end losing streak as Ukraine peace process stalls
Updated 4 min 2 sec ago
Reuters
LONDON: Oil prices were stable on Friday as hopes for an imminent peace deal between Russia and Ukraine dimmed, putting prices on track for their first weekly gain in three weeks.
Brent crude futures were up 8 cents, or 0.1 percent, at $67.75 a barrel by 11:15 a.m. Saudi time. West Texas Intermediate crude futures rose 12 cents, or 0.2 percent, to $63.64.
Both contracts gained more than 1 percent in the previous session. Brent has risen 2.8 percent so far this week while WTI is up 1.4 percent.
“Everyone is waiting for President Trump’s next step,” said UBS commodity analyst Giovanni Staunovo. “Over the coming days, it seems nothing will happen.”
The three-and-a-half-year war continued unabated this week as Russia launched an air attack near Ukraine’s border with the EU on Thursday and Ukraine said it hit a Russian oil refinery and the Unecha oil pumping station, a critical part of Russia’s Europe-bound Druzhba oil pipeline.
Hungary said deliveries through the pipeline had been halted.
Trump is seeking to arrange a summit between Russian President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelensky as part of efforts to broker a peace deal for Ukraine.
But arranging such a meeting appears challenging and discussions around potential security guarantees face obstacles, ING analysts said in a client note on Friday. The less likely a ceasefire looks, the more likely the risk of tougher US sanctions on Russia, they said.
Meanwhile, US and European planners have presented military options to their national security advisers after the first in-person meeting between the US and Russian leaders since Russia invaded Ukraine.
Putin demanded that Ukraine give up all of the eastern Donbas region, renounce NATO ambitions and keep Western troops out of the country, sources told Reuters.
Trump pledged to protect Ukraine under any war-ending deal and Zelensky dismissed the idea of withdrawing from internationally recognized Ukrainian land.
Larger than expected fall in US oil stocks
Oil prices were also supported by a larger than expected drawdown from US crude stockpiles in the past week, indicating strong demand.
Stocks fell by 6 million barrels in the week ended August 15, the US Energy Information Administration said on Wednesday. Analysts had expected a draw of 1.8 million barrels.
Weak economic data from Germany on Friday partially offset the stocks draw, showing that Europe’s largest economy shrank by 0.3 percent in the second quarter, raising concerns over oil demand.
Investors were also looking to the Jackson Hole economic conference in Wyoming for signals of a Federal Reserve interest rate cut next month. The annual gathering of central bankers began on Thursday and Fed Chair Jerome Powell speaks on Friday.
Lower interest rates can stimulate economic growth and increase oil demand, potentially boosting prices.
Closing Bell: Saudi main index slips to close at 10,866
Updated 21 August 2025
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Thursday, slipping 11.24 points, or 0.10 percent, to end at 10,866.83.
The benchmark’s total trading turnover stood at SR5.21 billion ($1.38 billion), with 87 stocks advancing and 159 declining.
Similarly, the Kingdom’s parallel market Nomu fell 94.16 points, or 0.35 percent, to settle at 26,535.79, as 42 stocks gained while 51 retreated.
Meanwhile, the MSCI Tadawul Index inched up 2.43 points, or 0.17 percent, to close at 1,409.05.
The best-performing stock of the day was Saudi Basic Industries Corp., which jumped 7.65 percent to SR61.90.
Other notable gainers included Sahara International Petrochemical Co., up 5.32 percent to SR20.01, and Fawaz Abdulaziz Alhokair Co., which climbed 5.17 percent to SR23.99.
On the other hand, Halwani Bros. Co. posted the sharpest loss, falling 4.92 percent to SR43.26.
Jahez International Co. for Information System Technology fell 3.84 percent to SR22.31, while Saudi Awwal Bank declined 3.73 percent to SR30.96.
On the corporate announcements front, Axelerated Solutions for Information and Communication Technology Co. released its interim financial results for the period ending June 30.
According to a Tadawul statement, the company posted a net profit of SR33.8 million during the first half of the year, up 94 percent from the same period last year.
The profit growth was mainly attributed to a 91 percent surge in gross profit to SR45.4 million, compared to SR23.8 million a year earlier, alongside an SR86.8 million increase in revenue and an SR1.8 million boost in other income.
The company’s board also recommended distributing SR8.4 million in cash dividends to shareholders for the first half of 2025.
A Tadawul filing showed that 28 million shares are eligible, with a dividend of SR0.30 per share, equivalent to 30 percent of the share’s par value.
Axelerated Solutions closed the session at SR28, marking a 3.70 percent gain.
Arriyadh Development Co. announced an update on its partnership agreement with Saudi Real Estate Co. and Riyadh Holding Co. to establish a special-purpose vehicle to develop educational complexes.
Arriyadh Development Co. ended the day at SR32.70, up 0.86 percent.
GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says
Saudi insurers led the surge, generating around $960 million last year
Credit ratings for Islamic insurers will remain largely stable
Updated 21 August 2025
Nirmal Narayanan
RIYADH: The Gulf Cooperation Council’s Islamic insurance sector is set to maintain around 10 percent annual growth in 2025 and 2026, buoyed by population expansion, infrastructure spending, and regulatory reforms, according to S&P Global Ratings.
Saudi Arabia, the region’s largest Islamic insurance market, will continue to drive growth as Vision 2030 megaprojects fuel demand for coverage, S&P said in its latest white paper.
Islamic insurance, or Takaful, has expanded rapidly across the GCC in recent years, logging 24 percent to 28 percent growth in 2022 and 2023. Strong government backing, mandatory health insurance regulations, and a rising awareness of Sharia-compliant financial products have supported the sector’s expansion.
“Islamic and Takaful insurers in the GCC region continue to benefit from favorable growth prospects, and we therefore expect 2025 to be another year with solid top-line growth,” S&P said.
However, the agency cautioned that “heightened competition in motor and medical lines, primarily in Saudi Arabia, the largest Islamic insurance market in the region, will likely weigh on overall earnings in 2025.”
The sector posted record earnings in 2024, with aggregate net profit rising to about $1.1 billion, up from $940 million in 2023. Saudi insurers led the surge, generating around $960 million last year versus $853 million a year earlier, while earnings in other GCC markets climbed to over $120 million from $87 million.
In 2024, insurers in the GCC region excluding Saudi Arabia recorded 13 percent revenue growth, while the Kingdom experienced a 14 percent expansion.
S&P said that net earnings for the sector in the first half of 2025 fell 35 percent year on year, citing a 40 percent drop in profits in the Saudi market and weaker earnings in other regional markets.
This is mainly attributed to “heightened competition in motor and medical lines, as well as a decline in investment returns,” it added.
Strong credit ratings
According to S&P, credit ratings for Islamic insurers in the GCC will remain largely stable over the next 12 months, as most players are well capitalized.
The report added that total shareholder equity in the sector rose to approximately $8.5 billion in 2024, up from $7.5 billion in 2023, supported by strong earnings and capital injections.
S&P Global Ratings projects that overall credit conditions for Islamic insurers will remain relatively stable over the next 12 months. However, it said that “some loss-making players will continue to face challenges relating to solvency and other regulatory demands,” which could prompt them to pursue mergers and acquisitions or raise capital to meet their needs.
In June, Fitch Ratings echoed similar views, saying that mergers and acquisitions are set to accelerate in Saudi Arabia’s insurance industry as many firms struggle to meet new capital requirements or remain profitable amid intense competition and rising costs.
Fitch also noted that several smaller insurers are already in discussions with larger rivals to strengthen their capital positions and ensure long-term survival.
“Consolidation is particularly evident among smaller and midsize players in Saudi Arabia and the UAE, as economies of scale become more important,” S&P said in its latest report, adding that thin capital buffers and rising regulatory and solvency requirements will continue to drive consolidation in the sector.
Potential challenges
S&P warned that a flare-up in the conflict between Israel and Iran, along with any regional escalation, could negatively affect business sentiment across the Middle East, including the GCC, and pressure insurers’ earnings.
Although global tariff disputes have so far had minimal impact on GCC economies and insurers, S&P cautioned that ongoing volatility in capital markets could weigh heavily on earnings if trade tensions escalate.
