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PetroRabigh margins good, out look cloudy
JEDDAH: PetroRabigh is satisfied with refining margins at the moment, but the world economy may run into more headwinds that reduce demand for oil products, its chief executive said Tuesday. The company, a joint venture between Japan’s Sumitomo Chemical and Saudi Aramco, produces an annual 18 million tons of refined products and 2.4 million tons of petrochemicals. "Right now we have very healthy crack spreads," he told reporters on the sidelines of an industry conference. He did not say whether he was referring to overall crack spreads or to a specific refined product. Complex processing margins for Dubai crude in Singapore were around $8.93 per barrel, up from an average of the last five days of $8.89, Reuters data showed. Over the past year, the average margin has been around $5.22 per barrel. "Then environment we are in today is not what I would call a normal environment," Ziad Labban said. Soaring oil prices, unrest in the Middle East and the effects of the tsunami and nuclear disaster in Japan all have the potential to slow down, if not derail, global economic recovery, he added. The Rabigh project, located on the Red Sea coast of Saudi Arabia, integrates a petrochemical complex with a 425,000 barrel per day oil refinery and is part of Aramco’s plans to build more such projects. The refinery produces naphtha, gasoline, gas oil, fuel oil and other products. Labban said potential bidders were now being invited to participate in a tender for construction of the second phase of the Rabigh project. Work on the engineering phase is proceeding. and a final investment decision is expected by the end of this year. PetroRabigh II will add 17 new plants and expand ethylene production by about 30 percent. The existing 1.25 million tons-per-year cracker currently runs exclusively on ethane, but after the expansion it will run on both ethane and naphtha from the refinery, Labban said. The refinery now produces 72,000 barrels per day of naphtha, all of which will be directed to ethylene production under the expansion. Labban said the company was working to expand its product portfolio but declined to provide further details. The firm has also allocated 75 percent of the space at its associated industrial park to 16 plastics processing firms, which will process resins produced by PetroRabigh. Seven plants are already under construction at the site, Labban said. Source: Reuters |
Saudi Arabian investment firm Khaligiah to retrench
Khalijia Invest, a Saudi investment firm which counts two major Kuwaiti investment banks as shareholders, plans to shut down most of its operations due to a cash crunch, an internal document seen by Reuters showed. The retrenchment could be the first in a slew of similar actions in the kingdom where a raft of investment firms have been facing financial stress, with consolidation expected. Riyadh-based Khalijia, which counts Kuwait's National Investments and Gulf Bank as shareholders, has decided to cancel the licenses of its asset management, brokerage and custody services, an email to Khalijia staff said. "A full restructuring of the company's activities and staffing is being considered and will be conveyed to all staff members in due time," the email said, adding the decision had been taken after an extraordinary board meeting on March 29. Khalijia will decrease the company's capital and retain its investment advisory and consultancy business, the email said. Khalijia Invest declined to comment when contacted by Reuters. The firm, which was incorporated with a capital base of SAR400m ($106.7m) in 2008, saw its authorised share capital fall below the stipulated regulatory requirement of SAR50m, prompting the move to shut down, two sources familiar with the matter said. Over 70 percent of its capital was depleted after the firm invested shareholder money in its investment funds, said one of the sources, based in Saudi Arabia and who spoke on condition of anonymity. Shareholders refused to commit more capital prompting the move to scale down operations, the two sources added. Khalijia will meet with the Saudi regulator, Capital Markets Authority (CMA), on Tuesday, the Saudi source said. He said the CMA may intervene to bail out the firm. "They had ambitious plans but they lost a lot money investing shareholder's money into funds. As far as I know, they did not do a single investment banking deal since inception," said the Saudi source. Khalijia Invest received a license to operate as a fully-fledged sharia-complaint investment bank from the CMA in 2008 and began operations in 2009. Its website lists National Investments, owned by Kuwaiti family conglomerate Kharafi Group, as holding a 30 percent position in the company while Gulf Bank has a 5 percent stake. National Investments and Gulf Bank were not immediately available for comment. Kharafi Group is the major shareholder in Kuwaiti telco Zain, and National Investments was leading the stake sale of Zain to UAE telco Etisalat. The deal fell apart last month after Etisalat pulled out. Saudi-based wealthy investors form up to 65 percent of the remaining shareholders. Investment firms operating in the Gulf Arab region came under intense pressure during the financial crisis as the value of their investments fell sharply and access to credit became increasingly difficult. The CMA has granted investment licenses to about 120 companies in the kingdom. Some of these firms are under a lot of financial stress and the sector may see some consolidation in the near-term, the Saudi source said. "In the next one year we can expect more companies facing the same situation," said the other source. Source: Reuters |
Saudi handouts will have positive long-term impact -finmin
Saudi Arabia's massive social spending packages will have a positive impact in the long term as an increase in supply will help reduce rents, one of the main drivers behind inflation, the finance minister said. "If there is a large size of spending that exceeds the power of the economy, then according to economic theories there will be inflationary pressures," Ibrahim al-Aassaf told al-Arabiya television in an interview on Saturday. "But in the long term it will have a positive impact on inflation because the major reason for inflation is high rents." Saudi Arabia's king Abdullah in March announced $93 billion in social handouts, on top of another $37 billion announced less than a month earlier. The $93 billion included 250 billion riyals to ($66.67 billion) be spent on 500,000 new homes, as the top oil exporter seeks to address vast undersupply. Economists and experts have estimated that these new homes could take around five years to build. A report last month by Banque Saudi Fransi said private and public developers needed to build about 275,000 units a year through 2015 to meet demand. The average price of a small villa in the kingdom's capital Riyadh rose 19 percent in the second half of 2010, while prices in Jeddah rose 17 percent, it said in the report. Saudi annual inflation slowed to a 10-month low of 4.9 percent in February with growth in housing and transport costs subsiding, though analysts said the slowdown was temporary due to robust global food prices and crude above $100 per barrel. Economists and experts say between 30-50 percent of Saudis own homes, but the majority of young Saudis do not because the mimimum salary required to obtain a mortgage is out of reach for most. The kingdom has only a 2 percent mortgage penetration in its real estate market, experts say. Source: Reuters |
Saudi stocks rally on oil, Q1 earnings
JEDDAH: Saudi shares rose the most in a week as first-quarter earnings improved and crude oil’s rally to a 30-month high increased confidence in the petrochemicals industry. The stock benchmark Tadawul All Share Index rose 0.52 percent to close Saturday at 6,608.60 points, the biggest gain since April 2. "Traders are focusing on the positives by continuing to build positions at the start of first-quarter results," said Fuad Aghabi, investment director at Ajeej Capital in Riyadh. "This is further supported by gains in the international equity and oil markets." National Industrialization Co. (Tasnee) advanced 1.2 percent and Al Rajhi Bank added 0.7 percent. Al Rajhi advanced to SR77.25, the highest level since April 4, while Tasnee climbed to SR34.3. Saudi Industrial Investment Group increased 1.9 percent, the biggest gain in a week, to SR24.3. "Those who are under-exposed to petrochemicals will not want to miss the train, as the market expects more surprising numbers," said Amro Halwani, a senior trader at Shuaa Capital PSC in Riyadh. Kingdom Holding Co. climbed the most in almost three weeks after the Saudi Arabian investment company and Bahrain Telecommunications Co. signed an agreement with Mobile Telecommunications Co. to buy the Kuwaiti company’s 25 percent stake in Zain Saudi Arabia. The shares rose 1.7 percent, the biggest gain since March 20, to SR9.25. Source: Saudi Gazette |
Prince Alwaleed bin Talal backs citygroup's cash dividend plan
Saudi billionaire Prince Alwaleed bin Talal said on Saturday he supports Citigroup's reverse stock split and reinstatement of its cash dividend. "Citigroup has demonstrated its ability to overcome the recent economic obstacles. I commend Citigroup's performance," Alwaleed, a prominent investor in Citigroup, said in a statement. The nephew of Saudi Arabia's King Abdullah, Alwaleed is also chairman of Kingdom Holding. Citigroup, the most actively traded stock in the United States, will resume paying a normal dividend after it uses a reverse stock split to shrink the number of shares outstanding, it said in March. The bank will pay a quarterly dividend of a penny a share, its first payout since 2009. It said it will reduce the number of common shares outstanding to 2.9 billion from 29 billion through a 1-for-10 stock split. In March Alwaleed said he expected Citigroup to post a profit in the first quarter. Citigroup's chairman said in December the bank would not pay dividends in the near term. Source: Arabian Business |
Techno valley project to help improve Haj, Umrah services
JEDDAH: Umm Al-Qura University in Makakh on Saturday announced its plan to establish a techno valley project to develop technologies and industries that would improve the Kingdom’s Haj and Umrah services. The university’s council chaired by its President Bakri Assas has made a proposal to the Higher Education Council to approve its plan to establish a company for Makkah Techno Valley. Nabeel Koshak, vice president for business and innovation, said the project was aimed at facilitating the Kingdom’s transition to a knowledge-based economy by establishing a partnership between research institutions, businesses and investors. "This project also aims at developing technologies related to Haj and Umrah services, such as communication technology and geographical information systems," Koshak said. Another main objective is to achieve economic benefits from the university’s research projects and transform technological inventions into commercial products. He said the move would also contribute to creating new job opportunities for Umm Al-Qura students. Koshak said the project would help facilitate transfer of modern technology to the Kingdom and the university students and teachers achieve expertise. The new company will establish technological incubators and invest in various knowledge-based economic and industrial projects. The move to establish a techno valley in Umm Al-Qura comes after the successes achieved by King Saud University by setting up a similar project. A number of new projects have been established at Riyadh Techno Valley including King Abdullah Institute for Nanotechnology. KSU is also building Prince Sultan Advanced Technologies Research Institute as well as Prince Naif Center for Health Science Research at the valley. KSU has now more than 100 research chairs, financed by individuals and institutions and has set up a SR3-billion endowment fund to finance educational projects. Source: Arab News |
Saudi firm starts construction of new manufacturing facilitiy
Saudi Specialized Pipes Co has started the construction of a new manufacturing facility for polymer concrete pipes at the Industrial Valley (IV) in King Abdullah Economic City. The new SR32m facility to be built on a 30,000 sq m land is scheduled to be operational by the third quarter of 2011. The plant will produce Polymer Reinforced Concrete pipes (PRC) to be sued in sewage and drainage systems and infrastructure projects. Source: Ame inf0 |
Minister of Social Affairs to launch Financial Sustainability Fund
Riyadh - The Minister of Social Affairs, Dr Yusuf Bin Ahmed Al-Othaimeen, will launch on April 17 'the Financial Sustainability Fund,' established by the Suleiman Bin Abdulaziz Al-Rajhi Charity Foundation under a Memorandum of Understanding signed with the institution recently. The Foundation's Secretary-General Abdulrahman bin Abdullah Al-Rajhi said that the launching ceremony will include a meeting of the supervisory body of the Fund, noting that the Fund will facilitate growth of financial resources of charitable bodies authorized in accordance with the principle of sustainable development. 'Moreover, it will also support programs, associations, charitable institutions and projects and finance well the rotation of loan capital and expansion of its utilization in the Kingdom of Saudi Arabia,' he added. Source: Zawya |
Saudi Arabia: ZHA sings SR7 million supplys contract
JEDDAH: Zagzoog for Home Appliances (ZHA) has signed a with PBCO in Dammam for the supply of nearly 3,500 appliances for 700 villas of SABIC employees in Yanbu City. The contract was secured against stiff competition from other companies in the home appliances market, said Engr. Yaser Zagzoog, operations manager director of Zagzoog, a leading Saudi supplier of home appliances with more than five decades of experience in the market. "Our competitive advantages were the quality of our products and services in the Western region as well as nationwide," he said. All product supplies - including refrigerators, washing machines and dryers from Whirlpool and kitchen hoods from Glem Gas - are from brands which are renowned for their high quality and energy saving features. Established in Jeddah in 1959 by Sheikh Suliman Saeed, Zagzoog for Home Appliances is considered to be one of the foremost and long-standing companies in the field of home appliances, representing some of the best and internationally famous brand names, including Japan's General for air conditioning products (window, split, cassette and ducted split units); Whirlpool of the US, Europe and Asia (home appliances); Glem Gas of Italy (freestanding ****ers and built-in products); Cooline of Saudi Arabia (window air-conditioning products); Trust (washing machines) and Chigo of China (window, split, freestanding, portable, packaged and air conditioning products). The company has earned a sound reputation throughout the Kingdom through the supply and installation of air conditioning systems. In addition, it has subsidiaries that specialize in duct manufacturing products, and other support facilities for decoration and design works. Zagzoog for Home Appliances has 20 branches and 60 retails stores across Saudi Arabia, offering professional services to customers including delivery, installation and after-sales service support. Its products are also displayed in more than 1,000 dealers' stores across the Kingdom. The company has recently opened new branches in the Southern region (Bisha, Qunfatha, Algouz) and is set to open another in Jubail Industrial City, and Ras Tanura. In addition, the company has launched new retails stores in Yanbu, Al-Ahsa Riyadh, and Dammam. "We deliver services in all major cities of the Kingdom through our branches and authorized service centers. All our service centers and spare parts warehouses are connected with modes WAN (wide area network) technology, which enables us to offer our customers fast and the best service," Zagzoog said. "Our service vehicles are well-equipped with spare parts and tools, enabling us to complete the job in the very first visit," he added. Moreover, he said "as we pay attention to quality of equipment, we also focus on the quality of the spare parts. Our main spare parts warehouse, located in Jeddah, supplies the warehouses of all our branches in more than 18 cities of the Kingdom. They are all connected with a computer network so as to provide continuous logistic support and cover all the spare parts needs of our customers." Apart from SABIC project, the company is also supplying the Princess Nora University in Riyadh of 2,500 sets of ****er hoods and built-in appliances and Tayseer Hotel in Makkah of 3,300 General split air-conditioning ducts units. Source: Zawya |
Global Islamic insurance to grow 31% in 2011, Ernst Young says
Islamic insurance contributions worldwide will rise 31 percent to $12bn in 2011 from $9.15bn last year, according to a report by Ernst & Young MENA published on Sunday. "Key takaful markets are characterized by low insurance penetration rates and comparatively high rates of economic growth, leading to a positive outlook for the sector as a whole," Ashar Nazim, executive director and Islamic Financial Services Leader at Ernst & Young, wrote in an e-mailed statement. Saudi Arabia is the biggest market for Shariah-compliant insurance, followed by Malaysia and the UAE, according to the report. Takaful is based on the Islamic principle of mutual assistance and is similar to mutual insurance in that members are the insurers as well as the insured. Conventional insurance is prohibited under Shariah law because Muslim scholars judge it to involve speculation and interest payments, both of which are forbidden. The industry grew 33 percent globally in 2010 from $6.9bn the previous year, the report said. Ernst & Young MENA is part of Ernst & Young, a New York-based consultancy company. Source: Bloomberg |
Saudi firm Khalijia says operating with all licences
Saudi investment firm Khalijia Invest said it is operating with all its licences in the kingdom after Reuters reported last week that the firm plans to shut down most operations due to a cash crunch. "Khalijia Invest is proud to remain one of the operating investment companies with all its licenses in Saudi Arabia, and its commitment to serving the investment public is steadfast," Hamad Bin Ahmed Al Ameerya, the firm's chairman, said in a statement. Riyadh-based Khalijia, which counts Kuwait's National Investments and Gulf Bank as shareholders, had decided to cancel the licenses of its asset management, brokerage and custody services, an email to Khalijia staff, seen by Reuters showed. But after meeting with the Capital Markets Authority (CMA) last week, Khalijia was allowed by the Saudi regulator to retain its licences and operate with a lower capital base, a source familiar with details of the meeting told Reuters. Investment firms operating in the kingdom have a stipulated regulatory capital requirement of SR50m ($13.33m). ($1=SR3.75). Source: Reuters |
Russia to help Kingdom to develop space technology
RIYADH: Russia is to sign an agreement with the Kingdom on developing space technology, Russian Ambassador Oleg B. Ozerov told newsmen on Sunday. The Russian envoy was addressing reporters in Riyadh on the occasion of the 50th anniversary of Russian cosmonaut Yuri Gagarin, the first human to travel into space, on April 12, 1961. "We regard Saudi Arabia as one of the major partners in space cooperation, because the Kingdom became the first country to be directly engaged in space exploration," Ozerov said, recalling Prince Sultan Bin Salman's performance in 1985 when he circumnavigated the Earth and became the first Arab and Muslim to travel into space. Considering the economic potential of Saudi Arabia and the Russian technologies, the ambassador said the combination would make a promising and fruitful cooperation between the two countries. Ozerov said arrangements are being made by the two countries to sign the Intergovernmental Agreements on Cooperation in the Development and Use of Outer Space For Peaceful Purposes and the Development and Sharing of the Russian Global Navigation Satellite System (GLONASS) . He said that the Kingdom will become a leading space power in the Arab world. "I would like to assure that on its part, Russia will be glad to contribute to this sector in every field," he said. Source: Arab News |
Excessive rent hikes: SCTA swing into action
RIYADH: The Tourism Development Department in Riyadh province, an offshoot of Saudi Commission for Tourism and Antiquities (SCTA), has started compelling hotels and furnished apartment owners to refund the excess amount of rent that they had levied from their customers. This move follows the warning of the SCTA against exploiting the current tourism season by making unreasonable hikes in rents of hotel rooms and furnished apartments. The SCTA has issued necessary directives to compel operators of hotels and apartments to refund the excess amount in case they had been found to have charged rents higher than that fixed by the government. The SCTA also urged the customers to contact the commission’s toll free number 800-7550-0000 if they believe they have become victims of exploitation. The SCTA has fixed maximum rent increases of 50 percent and 30 percent for residential apartments and hotels respectively during the peak tourism season. It has also instructed property owners to set up boards displaying rent price structures as well as a register to record complaints at the reception counters of all licensed hotels, furnished apartments and chalets. Inspection teams from the SCTA would intensify their field checks on hotels, furnished apartments and chalets to take action against those violating regulations. During raids conducted on Thursday and Friday, teams from the Tourism Development Department in Riyadh province detected some violations, including levying excessive rents and operating without a license from the SCTA. It was discovered that 65 residential apartments either charged unreasonable rents or had not completed necessary license procedures. Abdul Rahman Al-Jassas, executive director of the department, said: "We have noticed an exorbitant hikes in the rents of residential apartments since Wednesday, the last working day before the short vacation." Regarding the Janadriyah festival that begins next week, Al-Jassas urged the citizens to inform the authorities about any violations committed by hotels and furnished apartments. Source: Arab News |
Women demand voting rights
JEDDAH: A group of women has launched a website campaigning for the participation of women in municipal elections. The initiative, called "Baladi," has so far attracted over 2,000 members. Organizers say the campaign is independently run by women and has supporters from different parts of the Kingdom. They added that they want women to be able to participate in the running of municipal services due to the role they play in society in general. The campaign cites the important roles higher authorities are assigning women and also the achievements of Saudi women over the years. According to organizers, women have already taken up leading positions and thus should be able to participate in municipal elections. Women have now surpassed the traditional roles that they play, are able to lead in society and their achievements need to be protected, says the campaign. It adds that women should have the same rights that men enjoy based on international conventions that the Kingdom has signed. These rights include participation in the municipal elections, as it would improve women’s involvement in the decision-making process and combat the negative stereotypes about Saudi women being inactive and marginalized, the campaign says. A campaign was previously launched to push for the participation of women in the upcoming municipal elections, although it was unable to meet its goal. Different groups have called for the boycott of the elections including the Saudi Liberals group, whose motto is "No participation for women, no for participation in the municipal elections!" The group also said there were no convincing reasons behind the decision to ban women from participating in the elections and that this was discrimination and barred women from their right to vote, which is legal in Islam. The National Society for Human Rights has already refused to supervise the elections in protest. Source: Arab News |
SOFA to promot organic foods in Saudi Arabia
RIYADH: The introduction of the Saudi national ‘organic farming logo’ launched by Dr Fahd Balghonaim, Minister of Agriculture, early this year will ensure the quality of organic products sold in the Kingdom, Dr. Saad A. Khaleel Essa, Secretary-General, Saudi Organic Farming Association (SOFA), said. Essa said SOFA, as part of the marketing strategy and to promote the consumption of organic food in Saudi Arabia, would ensure that the producers implement the required Saudi standards and specifications. "As agreed with the Ministry of Agriculture, SOFA will instruct producers to fulfill the quality requirement by meeting the Saudi Arabian Standards and Specification Organization," he said. Such a system will be in place through an arrangement between Department of Organic Agriculture (DOA), Ministry of Agriculture and the SOFA, he said. The producers (SOFA members) after meeting the required procedures will be able to use the Saudi ‘national organic logo’ from this year, Essa said. Besides, SOFA started to communicate with its members and the public through its website www.sofa.org.sa which shows the selling points of organic products in the Kingdom. Brochures, manuals and other publications related to organic production and marketing techniques will help the people better understand about the health benefits of organic products, he said. "The Organic logo, representing the Ministry of Agriculture is aimed at authenticating the produce and to win the confidence of the consumers and raise level of trust in organic products available in the Saudi market under the supervision of the agriculture ministry," he said. The organic movement is gradually gaining popularity in the Kingdom, he said. SOFA is an independent non-governmental organization operating under the supervision of the Ministry of Agriculture. It was launched based on Council of Ministers Decree No. 273 dated 21/8/1428 Hijra year. "We expect in the future that large numbers of conventional farmers will convert their farms into organic farming. The government has already announced a number of benefits to organic farmers including loans from the Agriculture Development Fund (ADF) and subsidising costs, per hectare," he said. He said the total number of organic farms in the Kingdom stood at 64 with 24 located in Qassim, 23 in Riyadh, four in Jouf, two each in Najran, Jizan and Madina, three in Hail, five in Eastern Region, one each in Asir and Baha. Activities such as publication of first DOA Organic Input List launched in March this year and the PR campaign for creating consumer awareness and draft for organic agriculture policy development and national organic action plan will serve as a shot in the arm for organic farming in the country, he noted. However, trust about the authenticity of the organic products is still an issue, which will be addressed once the legislation and regulation are in place, he said. The government is trying to win the confidence of the consumers, said Essa. He said the issue is not the low productivity or high cost of organic farming "but the truth of the matter is that organic farming in Saudi Arabia is still at its infancy stage with only 52 certified organic producers across the Kingdom. Source: Saudi Gazette |
ABB, Prince Naif Medical center in energy saving deal
RIYADH: ABB, a leading power and automation technology group, has signed an agreement with the Prince Naif Center for Dialysis to supply a lighting control system that aims to improve patient care while significantly reducing energy consumption, the company said in a statement Sunday. A medical facility dedicated to the treatment of kidney-related disease, the three-storey Prince Naif Center for Dialysis will be the primary provider of medical care for kidney patients across the Kingdom. Construction began on the Prince Naif Center for Dialysis in 2008. Once completed, the center will treat more than 70,000 patients every year. ABB’s KNX-based technology will allow the facility’s management to control lighting throughout the eight-storey building. Individual functions include automatic lighting control, timer control, and a host of custom light scenes such. ABB’s lighting control system will provide the medical facility with controllers for maintaining constant lighting levels through a combination of natural and artificial light as well as motion and presence sensors for the automatic control of lighting and other consumer loads according to need, both indoors and externally. The KNX lighting control system is to be implemented by ABB partner Nassli. Azmeel Construction is the main contractor for the project. The contract will also include the supply of contactless interactive screens to control lighting in any part of the building. "ABB’s solutions will allow the Prince Naif Center for Dialysis to enjoy significant energy savings. In addition, the constant lighting levels can benefit patients’ health and intuitive light controls can help staff deliver quality of care," said Ali Nazzal, senior sales and operation manager for Smart Home and Intelligent Building Controls for ABB Saudi Arabia. "We are constantly looking and reviewing technologies that will have a positive effect on patient treatment," said Eng. Fathi Abdullah from Khateib & Alami consultant office in Prince Naif Center for Dialysis. Studies show that proper lighting is important in patient room design. Research also suggests that a patient’s mood and perceptions can be affected by the degree of control they have over their environment, including lighting. ABB’s KNX solution allows us to both reduce energy usage as well as provide a healthier environment for our patients." Source: Saudi Gazette |
Carlyle sees Saudi deal by year end
US private equity firm Carlyle Group expects to complete a deal in Saudi Arabia by the end of the year, a senior executive said on Tuesday. "We are still enthusiastic about investing in the GCC and hope to close a deal in Saudi Arabia before the end of the year," Firas Nasir, managing director for Carlyle and the executive in charge of the firm's Dubai office told reporters on the sidelines of a conference in Dubai. He did not reveal details on the investment amount or the company the private equity firm was looking to invest in. Washington, DC-based Carlyle has nearly $90bn under management and has been one of the few firms carrying out deals in the wider Middle East region, where private equity activity has grown scarce since the global financial crisis. Carlyle's co-founder David Rubenstein last month said the firm is still looking at deals in the Middle East region and the unrest has not yet had an impact on the private equity firm's portfolio companies there. The firm has a fund dedicated to investing in the Middle East and North Africa. The private equity firm acquired a 40-percent stake in Medical Park, Turkey's second-largest healthcare services company, at the end of 2009. In March last year, it bought a 30-percent stake in Saudi Arabia's General Lighting Company, the kingdom's largest lighting fixture manufacturer. Abu Dhabi investment fund Mubadala took a 7.5 percent stake in Carlyle in September 2007. The private equity firm has been bulking up its business, with a recent deal to buy Dutch-based private equity fund of funds AlpInvest Partners, Europe's largest. That followed a deal in December to buy a majority stake in hedge fund Claren Road Asset Management. Source: Reuters |
Kingdom and china to sign a nuclear cooperation pact
RIYADH: Saudi Arabia on Monday announced its plan to sign a nuclear cooperation agreement with China. The Cabinet said it has authorized Hashim Yamani, president of the King Abdullah City for Nuclear and Renewable Energy, to hold talks with Chinese officials to reach a deal for peaceful use of atomic energy. The new move comes after the Kingdom signed its first ever nuclear treaty with France in February. Yamani, who signed that agreement, said it would pave the way for the Kingdom's long-term plans to build power stations utilizing alternative energy sources to produce electricity and water. The agreement allows the two countries to cooperate in the fields of production, use and transfer of knowledge regarding the peaceful uses of nuclear energy. Saudi Arabia has decided to make use of alternative resources such as atomic, solar, geothermal and wind power to meet its growing energy requirements. Power demand is forecast to increase by 8 percent annually in the Kingdom. Demand for electricity in Saudi Arabia is expected to triple by 2032, which will give rise to the need for energy plants with a total of 80 gigawatts of installed capacity. Custodian of the Two Holy Mosques King Abdullah, who chaired the Cabinet meeting at Al-Yamamah Palace in Riyadh, briefed the ministers on the outcome of his talks with US Defense Secretary Robert Gates and the content of a letter he received from Bahrain’s King Hamad bin Isa Al-Khalifa. The Cabinet discussed the latest developments in some Arab countries. It also welcomed the GCC’s call on the Yemeni government and opposition to meet in Saudi Arabia for talks aimed at reinforcing peace and stability in the country and achieving the hopes and aspirations of the Yemeni people. The Cabinet also welcomed the statements made by the Organization of the Islamic Conference and the Muslim World League condemning Iran’s interference in the internal affairs of GCC countries. It denounced Israel’s airstrikes on Palestinians in Gaza and its decision to construct more Jewish settlements in occupied Jerusalem. The Cabinet urged the international community to pressure Israel to stop its crimes against the Palestinians and protect their rights. Referring to an international dialogue conference held in Azerbaijan, the Cabinet reiterated the Kingdom’s commitment to promote world peace and cited in this respect King Abdullah’s efforts in initiating an interfaith and cultural dialogue. Culture and Information Minister Abdul Aziz Khoja said the Cabinet took a number of other important decisions. It authorized Prince Naif, second deputy premier and minister of interior, to sign an agreement with Yemen for the transfer of convicts; approved an MOU signed with Sudan for cooperation in Islamic affairs and endowments; and endorsed a pact with Tunisia to prevent double taxation and avoid tax evasion. The Cabinet appointed Salim Al-Faar and Mansour Abdullah as ambassadors at the Foreign Ministry; Saleh Al-Hammad director of the minister’s office at the Ministry of Economy and Planning; and Fahd Al-Ruwais administrative consultant at the Ministry of Culture and Information. Source: Arab news |
Land price set to rise, company warns
RIYADH: The global financial services firm Jones Lang LaSalle predicts an annual rise in the price of land in the Kingdom by 10 percent over the next two to three years. This is a result of the increased demand in land due to the stimulus budget announced by Custodian of the Two Holy Mosques King Abdullah, according to the company. The largest budget ever passed by the Saudi government includes a SR40 billion fund for real estate development, SR250 billion for the construction of 500,000 residential units and a provision for increasing the value of real estate loans from SR300,000 to SR500,000. Saudi real estate experts have predicted that the stimulus package along with the funding of the Ministry of Housing and other government support programs would help curb the price of land and private houses by 15 percent. Minister of Municipality and Rural Affairs Prince Mansour bin Miteb has recently announced that the government is working hard to provide land for citizens at reduced prices. But according to the chairman of the National Committee for Real Estate Hamad Al-Shuaier, some areas in the Kingdom have already experienced a rise in land prices. "Real estate is a commodity like any other which is subject to increases and decreases. It is a country of free trade after all," said Al-Shuaier. Although the budget stimulus plan was a project with long-term goals, demand was already growing faster than supply. According to Al-Shuaier, it was the supplier’s role to keep the prices in check by providing more projects and residential plans. Source: Arab news |
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MOHE headquarters gets smart with new technology
RIYADH: The headquarters of the Ministry of Higher Education (MOHE) in Riyadh became the first governmental property in the Kingdom to use fully integrated smart technology. Johnson Controls has integrated all systems to a single platform, allowing users to benefit from its services, simultaneously creating a comfortable work environment that would reflect positively on all employees, while reducing energy consumption significantly. "We were one of the lead contractors that helped achieve this project while showcasing innovative products and high-level services. This project represents a new concept to elevate services in which technology can positively affect different aspects of human life, while increasing productivity," Basil Abdulaziz, managing director of Al-Salem Johnson Controls, said Monday. Al-Salem Johnson Controls (ASJC) is the Saudi Arabian arm of the multinational company, Johnson Controls. It is the global leader in delivering products, services and solutions that increase energy efficiency in buildings. Source: Arab news |
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Medeast retail industry shuns global instability
Saudi Arabia maintains key position in the top 20 destinations JEDDAH: Middle East markets are benefiting from the ongoing global economic instability as international retailers target economies with the best growth prospects and those least likely to be affected by austerity measures, the 2011 edition of How Global is the Business of Retail? by global real estate adviser CB Richard Ellis (CBRE) reported Monday. CBRE’s annual survey - now in its fourth year - mapped the global footprint of 323 of the world’s top retailers across 73 countries to identify trends in global retail expansion at national and local level. The report found that Middle East markets are attracting an increasing number of international retailers and are competing with established global retail centers, with Dubai climbing CBRE’s rankings to share the top position with London as the most targeted retail destination. Kuwait City and Riyadh also maintained key positions in the top 20 ahead of many established destinations. The United Arab Emirates placed second to the United Kingdom as the most highly penetrated global market, attracting 54 percent of all international retail brands surveyed. The UK maintained its position as the world’s most international retail market for the fourth year running with 58 percent, while the US made up the final position in the top three with 50 percent. Other Middle East countries fairing well in the study were Saudi Arabia (11th), Kuwait (14th), Bahrain (29th), and Qatar (30th). Attracting more than half (56 percent) of all international retail brands surveyed, Dubai now equals London as the most popular retail city in the world. With 1.2 million square meters of retail space having come on to the market since 2006, a wealthy consumer base, and very little competition from local retailers, Dubai’s stature as a key destination for international retailers has grown quickly. A further trend has been an influx of US-based retailers in the last 18 months. The Middle East continues to be a major target for international retailers. Following the large number of new entrants in 2009, the UAE fell back slightly in 2010 in terms of new store openings. However, this is relative to the high proportion of retailers already present in Dubai and retailers remain active in the region, with Kuwait (six new entrants) and Saudi Arabia (five) proving popular. Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis, said: "Retailers are increasingly looking at markets where GDP has held up relatively well and where consumer spending is unlikely to be squeezed by austerity measures that have mostly affected Western European and North American consumers. Retailers from more mature markets are looking to emerging markets for new growth, as the scope to expand and generate strong returns in their domestic markets diminishes." Dubai is the top target for Asian retailers targeting markets outside their home region (22.9 percent) and is second only to London as the top target for American retailers, with 62.7 percent of those businesses surveyed present. Notably, these are the only two cities (outside of Asia) where more than 10 percent of Asian retailers have a presence, which reflects the fact that most Asian retailers have yet to leave their own region. Traditionally US retailers have been reluctant to adopt the retail franchise model that is commonly used in the Middle East; however, with limited opportunities for growth in their own markets, more retailers have taken the plunge and made inroads into the region, typically using Dubai as a springboard into the region’s other markets. Michael Leighton, senior retail consultant, CB Richard Ellis Middle East, said: "Historically, Dubai has been the entry city to the Middle East, but now retailers are looking to replicate their success in other Middle Eastern countries with a similar consumer base. Essentially this means a wealthy, well educated, and well-traveled population with a high propensity to use modern shopping malls. Kuwait and Saudi Arabia fit the bill, as does Abu Dhabi where two new shopping center openings is likely to make it a bigger destination for new entrants than Dubai next year. The recent unrest in the Middle East cannot be ignored, but it is unlikely that this will have any long-term impact on retailers’ desires to expand into the region." Dubai and London are followed in the top retail city rankings by the established markets of New York (44.3 percent of international retailers), Paris (43.6 percent), and Hong Kong (40.6 percent), which clearly still hold considerable global pulling power. The composition of the rest of the top 20 comprises a mix of traditional and emerging markets, providing an indication of how global the international retail business really is. International expansion remains a key strategy for retailers throughout the world, with 40 percent of new openings occurring outside the retailer’s home region. Even though the pace of expansion has slowed, with the overall footprint increasing by 2 percent compared with 4 percent in 2009 and 12 percent in 2008, some 21 countries saw five or more new retailer entrants last year. Gold further said: "Although the pace of growth slowed in 2010, retailers continue to grow their store networks in a wide range of international markets, targeting both mature and emerging countries. While it is clear that the globalization process is ongoing, two factors will limit the rate at which retailers expand in coming years. Firstly, a limited pipeline of new space in many markets will restrict access to prime retail locations, and as a result, more retailers may look to grow their business via online platforms rather than expanding their physical store network." Source: Saudi Gazette |
Saudi LPG exports up 30 percent
JEDDAH: Saudi Arabia’s exports of liquefied petroleum gas (LPG) such as propane and butane rose 30 percent in February from a year earlier, while exports of petroleum products fell, official data showed. LPG exports increased to 166,786 metric tons from 128,827 tons last year, according to data posted Monday on the Saudi Port Authority’s website. The Kingdom exported 39 percent more LPG from the previous month. Exports of all oil products, excluding crude, from Saudi ports fell 2.7 percent in February to 3.05 million metric tons from 3.14 million tons a year earlier. Meanwhile, April-loading fuel oil exports from Saudi Arabia currently stands at 350,000 tons, down from March’s 705,000 tons, partly due to planned refinery turnarounds in the Kingdom, traders said Monday. ExxonMobil sold up to 90,000 tons of high-viscosity 700-centistoke (cst) fuel oil for April 26-28 loading from the joint-venture Samref refinery in Yanbu, to Thailand’s PTT at a discount of around $16 a ton to Singapore spot quotes, on a free-on-board (FOB) basis, traders said. The oil major last sold a similar parcel, for April 12-14 lifting, to European trader Vitol at a discount of around $25.00-$27.00 a ton to Singapore spot quotes, FOB, down from around minus $17.00-$18.00 for an end-March lot previously. Joint-venture partner Saudi Aramco also sold 80,000 tons of its A961 180-cst grade, for April 8-10 lifting from its Ras Tanura plant, to Westport at a discount of around $2.00 a ton. Source: Saudi Gazette |
Al Tayyar Travel Group signs as general sales agent in Saudi Arabia for Globus family of Brands
Riyadh, 11 April 2011 - Al Tayyar Travel Group announced that they have signed as the General Sales Agent for the Globus Family of Brands. This is the first time that Globus Family of Brands has entered the Saudi Arabian market. Al Tayyar Travel Group is the ideal partner to access the Saudi travel and tourism market as their infrastructure and solid reputation reaches throughout the Kingdom. Dr. Fahad Al Jarboa, CEO Al Tayyar Travel Group said "It is a credit to Al Tayyar Travel Group that an established and global company such as Globus Family of Brands has chosen Al Tayyar Travel Group as their General Sales Agent for Saudi Arabia. We are proud to be associated with a company that can offer a large selection of high quality vacations to our customers in the region." He continued to add "This agreement will make it easy for the travelers in Saudi Arabia to book and pay for their vacations locally and will enable Al Tayyar Travel Group to build mutually successful business opportunities in the coming years." Globus Family of Brands, the world's largest escorted coach tour company which markets vacations under the Cosmos, Globus, Monograms and Avalon Waterways brands, has a strong presence in the Middle East including the UAE, the Kingdom of Bahrain, the Sultanate of Oman, Kuwait and have consolidated their market share in the region by partnering with Al Tayyar Travel Group in Saudi Arabia to focus on the outbound leisure travel segment. Kunal Shah, Business Development Manager - Overseas Markets for the Globus Family of Brands said "By establishing this relationship, our goal is to strengthen the Globus family of brands' presence in Saudi Arabia and increase outbound traffic on our various brands that offers numerous worldwide destinations." Al Tayyar Travel Group offers a full spectrum of services such as cargo services, car rental, insurance, hotel services as well as all travel and tourism within the Kingdom and abroad. Al Tayyar Travel Group has been able to achieve success due to its presence in all regions of the Kingdom and to the uniqueness of their services and because they respect and have the trust of its customers whilst always striving to provide them with the highest standards of quality and service. Source: Zawya |
Hyundai Heavy Industries completes gas power plant in Saudi Arabia
Hyundai Heavy Industries has announced the completion of building the world's largest gas-powered power station in Jubail, Saudi Arabia, Arab News has reported. The company built the $1.1bn power plant with an output capacity of 2,750 megawatts, which is equivalent to 10% of the kingdom's total power output. The contract was awarded by the utilities firm Marafiq in 2007 to an international consortium comprising Hyundai Heavy, the US-based GE and France's Sidem. Source: Ame info |
Saudi Integrated Telecoms gets regulator approval for IPO
Saudi Integrated Telecoms Co has received the stock market regulator's approval for the first initial public offering on the biggest Arab bourse this year to be completed in the second quarter, Reuters has reported. The firm will offer 35% of its shares, 5 million of which will be allocated to the General Organisation for Social Insurance, the capital markets authority said. Source: Ame info |
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JEDDAH: A group of women has launched a website campaigning for the participation of women in municipal elections. The initiative, called "Baladi," has so far attracted over 2,000 members. Organizers say the campaign is independently run by women and has supporters from different parts of the Kingdom. They added that they want women to be able to participate in the running of municipal services due to the role they play in society in general. The campaign cites the important roles higher authorities are assigning women and also the achievements of Saudi women over the years. According to organizers, women have already taken up leading positions and thus should be able to participate in municipal elections. Women have now surpassed the traditional roles that they play, are able to lead in society and their achievements need to be protected, says the campaign. It adds that women should have the same rights that men enjoy based on international conventions that the Kingdom has signed. These rights include participation in the municipal elections, as it would improve women’s involvement in the decision-making process and combat the negative stereotypes about Saudi women being inactive and marginalized, the campaign says. A campaign was previously launched to push for the participation of women in the upcoming municipal elections, although it was unable to meet its goal. Different groups have called for the boycott of the elections including the Saudi Liberals group, whose motto is "No participation for women, no for participation in the municipal elections!" The group also said there were no convincing reasons behind the decision to ban women from participating in the elections and that this was discrimination and barred women from their right to vote, which is legal in Islam. The National Society for Human Rights has already refused to supervise the elections in protest. Source: Arab News |
Safco posts 19% in Q1 net profits
Saudi Arabian Fertilizers Co (Safco) reported a 19 percent rise in first-quarter net profit due to higher product selling prices it said on Tuesday, but its earnings missed analysts' estimates. Safco made SR833 million ($222.1 million) in the three months to end-March, compared to SR698 million in the same period a year earlier, it said in a statement on Saudi Arabia's bourse website. Analysts in a Reuters survey earlier in April forecast an average net profit of SR973.56 million. However net profit fell 19 percent from the fourth quarter of last year as sales volumes declined, Safco said on Tuesday. Gross profit for the quarter climbed 21 percent to SR775 million compared to the same period a year ago while operating profit jumped 22 percent to SR757 million, it said. Saudi Arabian Basic Industries Corp (SABIC) has a 42.9 percent stake in Safco. Safco's shares eased 0.8 percent to SR179.5 a share in earlier trading on Tuesday, underperforming Saudi's bourse slightly. The firm's earnings were released after the close of business on the kingdom's stock exchange. Source: Reuters |
Zain Saudi signs $ 600 m two-year refinancing deal
Zain Saudi Arabia, the country's third mobile operator, signed a two-year refinancing agreement worth SR2.25bn ($600m) to help its capital projects and meet previous obligations. The firm signed the Islamic financing agreement with Saudi banks including Arab National Bank and Banque Saudi Fransi, it said in a statement on Tuesday. "Zain Saudi Arabia completed a refinancing agreement, which complies with sharia laws, on April 11... That is to meet its previous obligations and finance a number of the firm's capital projects," the statement issued to Saudi bourse stated. The deal is a Murabaha, the firm said. Under a murabaha deal, an Islamic bank buys an asset from a third party and sells it to its customer at cost plus profit. This allows the bank to extend financing without charging interest, which is forbidden by Islamic law. Zain Saudi Arabia, which is 25-percent owned by Kuwait's Zain, became the country's third mobile operator in 2008 after paying a $6.1bn entry ticket. Saudi's Kingdom Holding and Bahrain Telecom (Batelco) are bidding to buy Zain's 25 percent share in the Saudi firm. Offloading the 25-percent holding in Zain Saudi was the pre-requirement of a $12bn takeover of parent Zain by the UAE's Etisalat. The deal fell through last month after Etisalat walked away. Yet Zain is still pursuing the Zain Saudi stake sale, despite Etisalat withdrawing its offer last month, citing Zain's divided board and regional unrest. Source: Reuters |
Saudi banks sets for bigger profits in 2011 - Jadwa
Saudi banks have largely completed provisioning against a significant rise in non-performing loans (NPLs) and are set for strong earnings per share growth this year, according to Jadwa Investment. The Riyadh-based finance house said that Saudi banks have now cleaned their loan portfolios after NPLs jumped by 132 percent over the last three years. Bad loans listed by the Saudi financial sector rose from 1.1 percent of total outstanding loans to 3.2 percent at the end of 2009. Jadwa said that total provisioning – the amount set aside by banks to cover anticipated defaults on loans – had risen to 109 percent of bad loans by the end of last year, as opposed to 86 percent in 2009. The Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank, has said it is happy with the overall level of provisioning, and is pushing banks to increase lending levels, which are well below their pre-2009 highs. Jadwa has predicted that banking sector earnings per share are set to grow by 42 percent this year, taking into account additional profit growth. The finance house also stated that only three banks – Riyad Bank, Bank Al Jazira and Bank Al Bilad – have a loan-loss coverage of less than 100 percent (i.e. total provisions for loan losses are less than the total of their NPLs), meaning that they may need to make further provisions this year. However, the kingdom’s other big banks, including SABB, Banque Saudi Fransi, Samba and Al Rajhi are all well provisioned. Jadwa said that the cost of dealing with NPLs had sliced 26 percent off Saudi banks profits in 2010 alone, as well as dropping dividend distributions. Source: Arabian Business |
New Tabuk Airport is ready to recieve flights
JEDDAH: Saudi Arabian Airlines will operate its first flight to the newly constructed Tabuk Regional Airport from Jeddah on Monday. Flight SV1547 from King Abdulaziz Airport will be the first of 77 weekly flights to land at the new airport. The Tabuk airport, which was modernized and expanded recently with panoramic front designs and new runways at a cost of SR242 million, is one of the Kingdom’s new generation airports established by the General Authority of Civil Aviation (GACA). The GACA carried out the project in order to meet the requirements of the growing number of passengers visiting the Tabuk province. Last year, the airport handled more than 686,000 passengers and nearly 2,500 tons of cargo. "The present airport can accommodate 1,500 passengers per hour," a GACA official said, adding that it would receive international flights from neighboring Arab and Gulf countries. The GACA is studying applications from three airlines — FlyDubai, AlMasria Universal and Nile Air — to operate international flights from Tabuk Regional Airport. "We expect more such applications from other airlines," the official said. The expansion project has increased the airport’s area of 33,779 square meters by another 12,000 square meters. The airport has new arrival and departure lounges and jet bridges to bring passengers from gates to planes. The new airport will boost the growth of Tabuk province because a large number of people have recently started to travel to Tabuk for business, investment, education and tourism, said the GACA official. There are 27 domestic and four international airports in Saudi Arabia constructed over the last four decades. King Fahd International Airport in Dammam is the largest. Source: Arab news |
US-Saudi Business Forum set
JEDDAH: Atlanta, Georgia will host the second US-Saudi Business Opportunities Forum slated for May 23-25. The first US forum was held in Chicago last April with more than 1,100 attendees. Following the Chicago forum, more than 100 businesses are now doing business with Saudi Arabia, said Omar Bahlaiwa, Secretary General for the Saudi Committee for the Development of International Trade. "The number of opportunities we are exposing at the Atlanta forum are worth about a trillion dollars, from large to small businesses across multiple sectors," said Bahlaiwa in a recent interview. The forum is designed to show US companies how to do business in Saudi Arabia, how to start a new company there and also to how to export. In particular, the demand for technology is high in Saudi Arabia and there are ample opportunities. Source: Saudi Gazette |
Danube plans over Dh300 million investment in Saudi Arabia
DUBAI -- Danube Building Materials a leader in construction, building materials and shop fitting industries has inaugurated a Dh50 million showroom in Saudi Arabia. The Dubai-based firm also plans eight more outlets by the end of 2012 worth over Dh200 million, its top official said on Tuesday. "We see strong demand for building materials in Saudi Arabia so Danube will continue its investment and our target is total 10 showrooms [in Saudi Arabia] by the end of next year. Total investment in the Kingdom is expected to cross Dh300 million," Danube Group Chairman Rizwan Sajan told Khaleej Times. The company now has a total of over 26 global retail facilities 17 in the UAE, three in India, two in Oman, Bahrain and Saudi Arabia. The company has also invested Dh50 million in a new manufacturing plant in Dubai. The new facility, which is spread over 1.3 million square feet in Dubai TechnoPark will open in mid-2011. Ahmad Hamza Awadh, Director, Jeddah Municipality, led the opening of the new integrated showroom and warehouse facility. Located in the heart of the Jeddah Industrial Area, the new showroom is part of Danube's strategic move towards creating a strong market presence in the Middle East construction industry and meeting its goal of achieving $1 billion in revenue by the year 2015, the company said in a statement. "Opening our new KSA showroom proves to be strategic and reflects perfect timing as recent reports have shown that Saudi Arabia currently has a 38 per cent share of the total construction projects in the region and has over $624 billion in current and planned projects, " Sajan said. "The strategic location of the new facility combined with our comprehensive product portfolio of essential building materials gives us the opportunity to reach out to new target customers. The move is also part of our continuing efforts to consolidate our presence in the Middle East region's thriving construction industry," Sajan said. Danube's new showroom measures in at 5,000 square feet while the warehouse, which is also the company's first completely covered storage facility, measures in at 150,000 square feet. Danube's move to open new showrooms across the region follows the impressive 25 per cent rise in its revenues in 2010. With the healthy show of activity across various construction projects in the region, the company is expecting to post in similar growth for 2011 and increasing its revenues to Dh1.6 billion. "Danube remains steadfast in its key efforts to become a major part of the development and progress that the region is currently experiencing. The opening of new showrooms across the region is not only part of our move to reach a target revenue of about $1 billion by the year 2015 but also reflects our long term commitment to leverage our world class high quality building materials across the various construction and development projects in the region," Sajan said. Source: Khaleej Times |
3 new hotels to rise in Saudi Arabia
JEDDAH: Saudi Arabia, Bahrain and the UAE are set to welcome five new luxury hotels by 2012, said winner of Best Brands' 2011 Best Service award, Kempinski Hotels, concluding its fifth annual GCC regional roadshow on April 9. The five new properties - Kempinski Hotel & Residences Palm Jumeirah in Dubai; Kempinski Hotel, Jeddah; Kempinski Hotel, Riyadh and Kempinski Al Othman Hotel - Al-Khobar and Kempinski Hotel Bahrain City Centre, Manama, are expected to set a new benchmark in luxurious hospitality in the GCC, and bring new green and intelligent technology to the region. This year, 20 international Kempinski Hotels - including the stunning Seychelles Kempinski Resort located in Baie Lazare, due to open later this year - toured the GCC to showcase the luxury group's growing portfolio of stunning properties from around the world. The Kempinski Hotel, Jeddah, boasts fantastic view of the Red Sea and is set to be the first green intelligent hotel building in the Kingdom of Saudi Arabia, when it opens in 2012. The 240-meter high tower hotel aims to be the finest address for leisure travelers in Jeddah featuring first class facilities including 250 luxury guest rooms and suites, 71 serviced apartments, two restaurants, a stunning spa, fitness centre, swimming pool and a 1000 square metre ballroom. Moreover, corporate guests can avail themselves of the advanced business and meetings facilities including fully equipped modern meeting rooms, VIP offices and business suites. Scheduled to open in 2012, Kempinski Hotel, Riyadh will boast an upscale commercial tower with 300 luxury guest rooms and suites, two restaurants, three cafés, conference facilities, ballroom for up to 2000 guests, two spas and separate wellness centres for men and women, selected boutique style retail outlets, Manhattan-style smart apartments and offices in addition to state-of-the-art business facilities with the aim of leading the luxury hospitality market in Riyadh in both, leisure and corporate segments. Kempinski Hotels signed the management and operating agreement for its third hotel in Saudi Arabia, Kempinski Al Othman Hotel - Al- Khobar, during the Al-Khobar leg of the annual Kempinski Hotels GCC road show. Centrally located in Qashlah Dhahran Road, at the epicentre of the Al-Khobar / Dammam / Dhahran metropolis area, the hotel is expected to become Al-Khobar's leading luxury hotel when it opens its doors at the end of 2012. The 218 key property will boast 141 rooms, 57 suites including two Presidential Suites and a 250-square metre Royal Suite, in addition to 20 elegantly appointed serviced apartments. No less than nine restaurants and cafés are sure to bring international innovative culinary experiences to the local market. Source: Saudi Gazette |
Deman for Takaful in Saudi Arabia surges
JEDDAH: Takaful is the fastest growing segment of the insurance industry in Saudi Arabia, RNCOS research and analytical consultancy said in its latest industry report. "We have found that Saudi Arabia has emerged as the largest market for Takaful insurance followed by Malaysia. Takaful insurance is growing at an annual growth rate of 15-20 percent globally, but it will grow at faster rate in Saudi Arabia because premium paid by the insured people is considered as donation and not premium," it said. The report noted tht protection and savings and health insurance are the fastest growing insurance lines in Saudi Arabia, with health insurance accounted for around 50 percent of the overall insurance market at the end of 2009. The health insurance sector is expected to grow at fast pace on the back of increasing involvement of private companies and the obligation for foreign nationals and foreign pilgrims to buy insurance covers. In addition, the most recent introduction of compulsory health insurance for private employees, irrespective of the size of the company they are working with, will further boost the health insurance market in the Kingdom. The general insurance category has also shown substantial growth despite the financial crisis, the report further said, forecasting that it will grow at a compound annual growth rate (CAGR) of more than 24 percent between 2010 and 2012 owing to rising motor and energy insurance. Property and aviation insurance are expected to emerge as the fastest growing general insurance segments over the forecast period. The motor insurance segment is projected to grow at a CAGR of 30 percent between 2010 and 2012. The fast growth rate will be achieved on the back of promotional strategies deployed by government. With the strong prospective growth in auto sales, the premium of motor insurance will increase as vehicle insurance has been made compulsory in the country. SAMA data showed that in 2009, insurance penetration of total GDP increased to 1.06 percent, up from 0.62 percent in 2008, representing a 69.9 percent increase. This significant increase in insurance penetration of total GDP is driven by the high increase in the insurance business volume on one hand and a decrease in total GDP on the other. Total net written premiums increased from SR7.321 billion ($1.95 billion) in 2008 to SR10.073 billion ($2.69 billion), a 37.6 percent increase. In 2009, the number insurance companies with more than SR100 million ($26.67 million) in shareholders' equity increased to 20, compared to nine companies in 2008. The largest company by total equity is Tawuniya, with total equity of SR1.4 billion ($373 million) following an increase from SR1.2 billion ($320 million) in 2008. Source: Saudi Gazette |
Samsung Engineering wins SOCC EPC contract
Saudi Organometallic Chemicals Co (SOCC), a joint venture equally owned by Sabic affiliate, Saudi Specialty Chemical Co and Albemarle Netherlands, has signed a contract with Samsung Engineering to provide the engineering, procurement, and construction (EPC) services at the group's aluminium alkyls manufacturing facility in Jubail, Saudi Arabia. Set for completion in Q3 2012, the SOCC facility will initially manufacture 6,000 metric tonnes/yr of Tri Ethyl Aluminium, the key co-catalyst used in polyolefin production. This product is currently supplied to the region from Albemarle's facilities in Europe, Asia, and North America and will be supplied from the SOCC plant to regional customers upon plant start-up. Source: Ame inf |
Saudi Industrial eyes merger with unit Petrochem
Saudi Industrial Investment Group (SIIG) plans to merge with its unit National Petrochemical Co (Petrochem) and will build a $1.2bn petrochem complex in 2012, its top executive said. SIIG currently owns 50 percent of Petrochem and produces around 1.3 million tonnes of petrochemical products. A potential merger, expected to be completed within nine months, will create the third largest petrochemical firm in Saudi Arabia after Saudi Basic Industries (SABIC) and Saudi Kayan Petrochemical Co. "It does not make sense for us to have too many companies so we just want to collapse the two into one....we are in the process of soliciting offers now from banks then we will discuss and nominate consultants," said SIIG's Managing Director Suleiman al-Mandeel. "I'll give it six to nine months, if everybody agrees, the shareholders and the capital market authority," he said. Saudi Industrial has a market value of around $3 billion and Petrochem is valued at $2.9bn, according to Reuters data. SABIC, with a market value of about $86bn, is the world's largest petrochemical company based on market capitalisation. SIIG expects its production to rise to 6 million tonnes after Petrochem's $5.4bn joint-venture with Chevron Phillips, called Saudi Polymers, starts production in the fourth quarter, Al Mandeel said. Chevron Phillips is a joint venture with US-based energy firms Chevron and ConocoPhillips. "It [project] should be operational in the fourth quarter. It has been under construction for four years now," he said. The executive also said SIIG is looking to set up another $1.2bn complex with Chevron Philips that will work on conversion projects, using the company's own products to downstream and produce products such as nylon and its derivatives. "By next year we should be constructing a complex... about $1.2bn," he said. The new project will be a 50/50 joint venture with Chevron Philips and is currently in the detailed engineering stage, he said. Al-Mandeel also said the Saudi-based petrochemical firm is expected to post at least a 30 percent rise in its profits for 2011 as petrochemical prices continue to rise. "In 2008 prices skyrocketed then there was a big drop... I think it will recover," he said, adding that the firm would see a bigger rise in profit for 2011. "I would say at least 30 percent," when asked about the firm's profit rise expectation for 2011. SIIG posted a net profit of SR404.6m for ($107.9m) 2010. Source: Reuters |
Saudi Arabia set for growth in - cinema at home
More than 30,000 Saudi homes are being targeted to receive the latest Hollywood blockbusters as the same time as they being released in GCC cinemas, a digital media content provider said on Thursday. Intigral, a joint venture between Saudi Telecom Company, All Asia Networks and Saudi Research and Marketing, told Arabian Business that it planned expand the reach of its new ‘Cinema at Home’ service in Saudi Arabia, in order to combat the lack of cinemas in the Kingdom. Intigral undertakes its own "in-house" censoring of movies to remove insensitive content before they are released into private homes. "For the release of movies, there is a window that you can capture in Saudi Arabia and nowhere else in the region. What we bring to households, since we started, is the concept of cinema at home," Karim Daoud, chief executive officer for Intigral, told Arabian Business at company’s headquarters in Dubai Studio City. "Cinema at home means that even before the product is released on DVD and is available on the market, we make it available on demand through our platform," he explained. Most recently, the provider broadcast the hit Egyptian movie, Zahaymar, through its In-Vision service. The movie was shown simultaneously with its theatre screenings in Egypt, Bahrain and the UAE. "That’s something, as a pay-TV player, we’re very proud to bring to the market, because it’s differentiating. You need those little differentiators, those little jewels to the customers," Daoud said, adding that he was already seeing a surge in interest in the service in the two months since the company launched. "The idea is to capitalise on these acquisitions that we do. Titles [like these] make a big marketing impact and obviously increase the interest of households that are not with us." The service was first launched two months ago, but following huge demand, Intigral is bringing forward its expansion plans for the Kingdom. The company has already signed a tie-in deal with Warner Studios to release its titles, and the company hopes it is the first in a pipeline of major studios and content providers linking up to release content in Saudi Arabia. The company’s first Hollywood release was the sixth instalment of the massively popular Harry Potter series. "The major introduction to the market was the Harry Potter series. We brought the first five titles before the sixth was actually released," Daoud said. "This allows us to do some very interesting packaging and market propositions where, with In-Vision, you provide very good quality content to your subscribers," he added. The company has a target of reaching 30,000 homes by the end of the year with its high-speed internet content package. It releases content online through its IPTV, mobile content and web service. Saudi Arabia has the Arab World’s largest population, estimated at just over 25 million people. It is also has one of the Arab World’s highest internet penetration rates, being ranked at number 33 in the top 50 most IT friendly countries by the World Economic Forum. IPTV, or Internet Protocol TV, is a system through which television services are delivered over high-speed internet connections. Users can access videos on demand or watch as live television. Source: Arabian Business |
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