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Saudi Arabia Economical and other News
I am glad to put some news about Gulf countries specially Kingdom of Saudi Arabia
Kingdom Holding keeps Tadawul bourse rising The Saudi Stock Exchange closed 0.48% higher at 6,616.41 points as multi-investments pushed the market up. Shares of Kingdom Holding Co., owned by renowned investor HH Prince Al-Waleed Bin Talal, surged 9.38% to reach SR10.50. Al Hassan Ghazi Ibrahim Shaker, a Riyadh-based manufacturer of air conditioners, jumped seven percent, finishing at SR61.00. Earlier in the day, the company announced the signing of a Memorandum of Understanding with South Korea's LG Electronics. "The purpose of this MOU is to summarize the current business understanding of the parties about consideration and discussion for cooperation between LGE and Al Hassan Ghazi Shaker Company about marketing and sales of LG Solar and Lighting LED / PLS products", the statement to the Tadawul bourse says. |
Saudi Arabia seeks to calm market with words not oil
Top exporter Saudi Arabia on Tuesday stopped short of pouring more oil on to markets that have vaulted above $100 as unrest swept the Middle East, telling visiting consumer nations prices were driven by fear. A wave of revolution that has toppled two presidents and left Libyan leader Muammar Gaddafi clinging to power propelled oil to a 2-1/2 year high this week above $108 a barrel. The scale of unrest in OPEC member Libya has provided the biggest jolt yet to oil markets in two months of Middle Eastern and North African turmoil and it dominated a day of producer-consumer talks hosted by Saudi Arabia in Riyadh. Saudi Arabian Oil Minister Ali al Naimi said the Organization of the Petroleum Exporting Countries led by Saudi Arabia was always ready to pump more oil - but only when needed. "What I would like you to convey to the market: right now there is absolutely no shortage of supply," Naimi told a news conference. |
Obeikan start up glass furnace
Obeikan Glass, a subsidiary of Saudi Advanced Industries Co (SAIC), has said it has started the operation of its glass furnace at Yanbu el Bahr industrial and port city on the Red Sea coast in Medina Province. After the furnace reaches maximum heat within 4 to 5 weeks, the plant will produce 800 tonnes per day of clear and tinted glass feature, making it the largest in the region, Obeikan said. Source: Ame Info |
Britain's BAE targets Saudi for lucrative land, sea deals
BAE Systems is seeking to expand sales in the lucrative Saudi defence market by targeting land and sea contracts, as well as increased orders for its landmark Typhoon aircraft. "The Saudis have always had an option to increase the number of Typhoons, so that's obviously the main one," Simon Keith, BAE Systems' Middle East, Africa and Asia Pacific managing director, told Arabian Business in an interview during a defence event in Abu Dhabi. "We also believe that there are other opportunities in both of the other services, so inland and at sea. "With regard to sea, that has not been our natural area and tends to be as part of a relationship with the French and to an extent with the Americans, but we feel that they have got things they would be interested in, and certainly on land systems as well," he said. In its annual results posted last week, the UK-based defence giant earmarked Saudi Arabia and Australia as key markets for growth, especially given the budget cuts currently under way in more traditional markets such as the UK and US. Keith said that possible naval sales could include radar, fire control systems or communications systems, and also singled out cybersecurity solutions as a "huge growth area" for Gulf customers. In the last six weeks, BAE Systems has acquired three firms that provide cybersecurity solutions to add to its worldwide portfolio. Keith also said that Saudi Arabia had not yet confirmed whether final assembly of the last tranche of Typhoon aircraft would take place within the kingdom. "We know that they are debating whether they would like us to build a few more, and then take it on, or whatever," he added. "But it's their debate, and we just stand ready to do what they want - we don't mind." Saudi Arabia signed a deal to purchase 72 Typhoons in September 2007. Source: Arabian Business |
Jacobs wins Saudi Arabia contract
The Saudi Industrial Investment Group (SIIG) and Arabian Chevron Phillips Petrochemical (ACP) have awarded US-based Jacobs Engineering Group a contract to provide engineering, procurement and construction management services for a polyamide 6,6 manufacturing plant and a number of polymer conversion projects. The projects will be located in the Eastern Province industrial city of Al-Jubail. Source: Ame Info |
Zain Saudi unit has fresh bids for take over
Alternative options have emerged for the sale of Kuwaiti telecoms carrier Zain's Saudi unit, a local newspaper said on Tuesday citing sources which it did not identify. A proposed $12bn takeover of Zain by Etisalat depends on the sale of the assets in Zain Saudi, valued at $750m, due to regulatory requirements. Availability of having options allowed Etisalat to focus on completing their due diligence for the stake buy before the end February deadline, the paper said without naming new bidders. Etisalat said on Sunday that the due diligence process is undergoing and is expected to be completed by end of February. Zain rejected all three offers for its Saudi assets on Saturday. Saudi billionaire Prince Alwaleed Bin Talal's Kingdom Holding, Bahrain Telecommunications and an investment consortium led by Al Riyadh Group had bid for the stake. "The confusion that appeared the past couple of days was partly due to the inability to determine the time table for the deal, as Etisalat was expecting (hoping) to get over the Saudi assets obstacle prior to completing the due diligence," the sources told the newspaper. Source: Reuters |
Saudi Arabia raised oil output above 9bmpd
Saudi Arabia has increased its oil production to more than 9 million bpd to compensate for disruption to Libyan output, an industry source familiar with the kingdom's production told Reuters on Friday. "We have started producing over 9 million barrels per day. We have a lot of production capacity," the source said. Riyadh does not publish production figures. Reuters estimated it pumped 8.3 million bpd in January which would mean the increase amounts to 700,000 bpd or 8 percent. But one leading oil consultant who asked not to be named said Saudi output was already at 8.9 million bpd in January because it has been using increased amounts for domestic consumption in recent months. The Saudi move comes after Riyadh made assurances earlier in the week that it was prepared to act to prevent shortages as a result of a rebellion in Libya against leader Muammar Gaddafi that has sharply reduced the fellow OPEC producer's 1.3 million bpd of exports. OPEC has resisted calls for a formal increase in output and says it does not plan to meet until June. Oil prices spiked close to $120 a barrel on Wednesday and traded at $112.50 on Thursday from $91.55 at the start of the year. A report out of Washington by industry publication Energy Intelligence late on Thursday said Saudi Arabia had made the change quietly to bypass OPEC politics. "The Saudi move has not been announced publicly, most likely because of the political sensitivities in the region and the internal dynamics of OPEC," Energy Intelligence wrote. Saudi, which has around 4 million bpd of spare capacity, has publicly stated it will provide customers with all the oil they need to compensate for supply disruption from Libya. The International Energy Agency, which represents consumer countries, has said between 500,000 bpd and 750,000 bpd of Libyan crude, less than 1 percent of global daily consumption, had been removed "at present" from the market. Even before the latest price surge, oil prices had been climbing steadily, prompting members of OPEC to lift output. Source: Reuters |
Saudi Arabia tenders for 275,000 T wheat
Saudi Arabia's state grains buyer is tendering to purchase 275,000 tonnes of milling wheat in five cargo arrivals between May 10th and June 30th, Middle Eastern and European traders said on Wednesday. Traders said the Saudi Kingdom was seeking to capitalise on a bearish market after European wheat futures fell as much as 7 percent before rebounding on Wednesday. A global grain market sell-off this week has pushed Egypt to buy 235,000 tonnes of US and French soft wheat on Wednesday, and also prompted Tunisia to come to the market for 75,000 tonnes of milling wheat. News that Arab grain importers were back in the market encouraged investors to buy back, and Euronext May wheat contract was up 2 percent to 248 euros a tonne by 1426 GMT. Saudi Arabia's Grain Silos and Flour Mills Organisation (GSFMO) is looking for wheat with a 12.5 percent protein content, in a new sign that higher-quality wheat is becoming harder and pricier to find in global markets. By cutting quality requirements, Saudi Arabia, which has mixed 14 percent and 12.5 percent protein content in its last purchases, is trying to attract more offers, in particular from the US, traders said. Close of bids set in the tender is Friday Feb 25. Saudi Arabia had been widely expected to tender in recent weeks and traders said the tender documents specified some 165,000 tonnes for arrivals requested in Jeddah between May 10-June 30, and 110,000 tonnes to Dammam between May 15-June 20. Saudi officials said earlier this month they planned to import around 2 million tonnes of wheat in 2011 like last year and will boost imports in coming years as it ends local production. Saudi Arabia wants to build up reserves of basic commodities such as wheat, rice, oils and sugar to counter a global spike in food prices. The arid desert kingdom hopes to double its wheat reserves to a year's worth within three years. Source: Reuters |
Oil may hit 200 dollars if unrest spreads to Saudi Soc - Gen
Brent crude futures could hit $200 a barrel if political unrest spreads into Saudi Arabia, Societe Generale said on Monday. North Sea Brent crude futures were trading about 60 cents higher at around $117 a barrel by 6pm Dubai time. US crude was around $105.70. Brent crude has been hovering just below the $119 level hit late in February, its highest price since the third quarter of 2008, as the unrest in Libya has cost the country a loss of about 1 million barrels of crude production per day out of its normal 1.6 million bpd output. Societe Generale listed some scenarios that could have an impact on oil prices, with its most extreme scenario showing Brent prices sharply high. "Geopolitical Scenario 3: Unrest spreads to Saudi Arabia and threatens Saudi crude exports and any remaining spare capacity. Brent price range of $150-$200 a barrel," it said in its research note. "In this most extreme, worst-case scenario for the oil markets, serious unrest spreads to Saudi Arabia. In this case, it does not really matter if Libya or any other producers are shut down or not. Saudi Arabia is OPEC's biggest producer and the world's biggest current holder of spare capacity," the bank added. Saudi Arabia is the world's top exporter of crude oil, meeting about 10 percent of the global oil demand. The kingdom has escaped major protests like those that toppled leaders in Egypt and Tunisia, but the wave of unrest has reached its neighbours Yemen, Bahrain, Jordan and Oman. Saudi Arabia's council of senior clerics issued a statement on Sunday forbidding public protests, which the rulers of the US ally and key oil exporter fear could spread following demonstrations by minority Shi'ites. Source: Reuters |
Sabic may shift to propane, naptha
Mutlaq Al Morished, vice president for corporate finance at Saudi Basic Industries Corp (Sabic), has said the company is changing feedstock to propane and naphtha to make up for a reduced supply of natural gas in the kingdom, Saudi Gazette has reported. Sabic plans to boost its consumption of propane and naphtha to fulfil its expansion plans, he said, without providing more details on the expansion. Source: Saudi Gazette |
Saudi Bank urge; mortgage law seen soon
Saudi Arabia banks made a late surge on bets a long-delayed mortgage law may come soon, helping the kingdom's index TASI rally for a third day, while state-linked funds were thought to remain buyers in the market. Samba Financial Group climbed 7 percent, Riyad Bank rose 9.9 percent and Banque Saudi Fransi added 10 percent. The banking index ended 5.5 percent higher, having been down 1.7 percent intraday. "This has to be speculation the mortgage law will come in very soon," said a Riyadh-based fund manager who asked not to be identified. The long-awaited Saudi mortgage law is expected to be approved soon, the Chairman of Saudi Arabia's Shoura Council said in an online report on late Sunday. The main Saudi index climbed 3.3 percent to 5,951 points, taking its gains to 11.8 percent in three sessions since the country's finance minister said state-linked funds had been buying local stocks. The benchmark is down 10.1 percent in 2011 as nervous investors sold shares on widening Middle East unrest. "The minister's comments gave comfort to the market - government investment funds see value in the market and I expect they continue to be buyers," says the fund manager. Aramex was among the biggest losers as Dubai's index DFM ended lower for a third session in four to near a six-year low, with an ongoing property correction exacerbating risk-related selling. "Fundamentals don't matter at the moment," said Robert McKinnon, ASAS Capital chief investment officer. "Everything has sold off to ridiculous levels. Some stocks deserve it, some don't. So we are focused on buying the ones that we are most confident don't deserve the punishment that the market has given them and accept that we may have another 10 to 15 percent draw down." Aramex fell 3.6 percent, Dubai Financial Market dropped 3.5 percent and Dubai Investments Co shed 2.7 percent. The index fell 1 percent to 1,375 points, within 30 points of Thursday's six-year low, with Gulf Arab markets tumbling in the wake of Middle East unrest. "Some names will not rebound much from this fall," adds McKinnon. "There aren't a whole lot of quality names to buy in the UAE. I still don't like real estate other than Emaar." Emirates NBD, Dubai's largest listed bank, climbed 7 percent as 81,200 shares trade, helping to limit index declines. Dubai's benchmark, which is heavily skewed towards property-related stocks, was down 78 percent from a 2008 peak. Dubai house prices have fallen about 60 percent since a 2008 high and are forecast to make further double digit declines. Emaar Properties fell 1.2 percent. Abu Dhabi's index ADI slipped 0.4 percent to 2,549 points. Qatar's benchmark QSI made its largest gain in three months following a three-day weekend as an early-week rally on neighbouring Saudi Arabia's bourse TASI boosted local sentiment. "Institutions are the leaders in terms of liquidity - local funds have been buying in recent sessions and this should continue for the next few days, but foreigners are cautious and unlikely to take as big positions as they did before the crisis," said Hani Girgis, assistant chief dealer at Dlala brokerage. Qatar stocks, along with those in other Gulf Arab markets, have tumbled amid unprecedented unrest in the Middle East that has toppled veteran rulers in Egypt and Tunisia and sparked deadly protests in Bahrain and Oman. Those in turn raised fears Saudi Arabia, the world's top oil exporter, could become engulfed in sectarian strife. Qatar, along with the UAE, is seen as the most stable Gulf Arab country, but that has meant little to investors as they try to cut exposure to regional equities. Yet Qatar's economic outlook remains buoyant, with double-digit GDP growth forecast for 2011, and this should steady stocks in the medium term. "We can't isolate Qatar from the rest of the region...current share prices mean it could be a good time to take new positions and hold for maybe two more quarters," says Girgis. "The market has very strong support at 7,500 points." Qatar's index climbs 2.7 percent to 7,685 points, its largest gain since Dec. 5. Chemicals and steel producer Industries Qatar, seen benefiting from rising oil prices, climbed 2.6 percent, while Commercial Bank of Qatar and Barwa Real Estate added 6.2 and 5.1 percent respectively. Source: Reuters |
Sharia trade finance may reach 800 billion as demand escalates
Islamic trade finance may reach as much as $800bn a year should Sharia-compliant banks strengthen cooperation with financial institutions in other countries, according to a Bahrain-based regulator. "At this point, Islamic trade financing is very simple, it’s not focused and it isn’t competitive," said Mohamad Nedal Alchaar, secretary-general of the Accounting & Auditing Organization for Islamic Financial Institutions, whose standards have been adopted in countries including the UAE and Qatar. "We could tap 20 percent of the total trade financing, that’s very reasonable." Trade among the 57-member Organization of the Islamic Conference based in Jeddah is likely to reach $4 trillion in 2012, Alchaar said in an interview in Abu Dhabi on February 27. Islamic trade finance has been slow to develop because it remains fragmented, according to Yakub Bobat, Dubai-based Global Head of HSBC Amanah Commercial Banking. Sharia-compliant letters of credit are based on the principle of wakalah, where a bank acts as an agent and is paid fees and commissions in place of interest. Non-Islamic trade financing, which typically involves loans and the payment of interest, is forbidden under Islamic law. Demand for services and products that comply with Sharia law is increasing by about 15 percent a year and assets will rise to $1.6 trillion by 2012, according to the Kuala Lumpur-based Islamic Financial Services Board, a global standard- setting body. Global sales of sukuk, which pay asset returns to comply with Islam’s ban on interest rates, are showing signs of a recovery this year after slumping in 2010. Issuance has reached $3.9bn from $676m in the same period last year, according to data compiled by Bloomberg. Offerings fell 15 percent to $17.1bn last year. The yield on Dubai’s 6.396 percent sukuk maturing in November 2014 fell 7 basis points last week to 6.4 percent on March 4, according to Bloomberg data. The extra yield investors demand to hold Dubai’s government debt rather than Malaysia’s narrowed 2 basis points to 344, the data show. "The main reason why the industry has not been able to take off is that trade finance needs parties to connect across borders," Bobat said in a telephone interview March 3. "The industry today is still pretty local, fragmented, at best regionalized, and is in need of consolidation." HSBC Amanah is the Islamic banking unit of HSBC Holdings in London. The OIC plans to boost trade among member nations to 20 percent of total trading volume in 2015, according to the group’s 10-year plan posted on its website, from 14 percent in 2004. Trade among OIC members reached 17 percent in 2009, Jeddah-based Hameed Opeloyeru, assistant secretary-general of economic affairs at the OIC, said in an e-mail response to questions yesterday. The OIC, which includes the UAE, Indonesia and Pakistan, is in talks to establish a free-trade area for its more than 1.4 billion people, according to its website. "Islamic banks don’t have the reach yet to go into discussion with corporates that need trade financing," said Geert Bossuyt, the Dubai-based managing director and chief executive officer of Dar Al Istithmar, an Islamic finance advisory company established in the UK in 2004. Sharia-compliant banks will "become more active" over time, Bossuyt said in a telephone interview March 3. "It’s an evolutionary issue." Source: Bloomberg |
Saudi Arabia may escape wave of Middle east unrest, S and P says
Saudi Arabia, the world’s top oil exporter, may escape the popular unrest that is sweeping the Middle East, though it shares some of the conditions that caused it, Standard & Poor’s said. "Overall we are not very worried about that scenario and potential negative implications for creditworthiness," Kai Stukenbrock, S&P’s Dubai-based director of sovereign ratings in Europe, the Middle East and Africa, said in a conference call on Monday, referring to the risk of protest movements in the kingdom. S&P’s outlook for Saudi Arabia is "stable," he said. Popular unrest that ousted Tunisia’s Zine El Abidine Ben Ali in January and Egypt’s Hosni Mubarak last month has spread to Saudi Arabia’s neighbors, Bahrain and Yemen, fueling concern it may also spill into the kingdom. There have been protests in recent days in eastern Saudi Arabia by Shiite Muslims, a minority group who say they suffer discrimination. Saudi Arabia, an absolute monarchy that bans political parties and protests, shares some features that helped sparked protests in other countries, Stukenbrock said, citing a lack of civil liberties and political representation as well as "relatively high unemployment, particularly among the young." Saudi Arabia’s Tadawul All Share Index has tumbled 13 percent this year on concern the kingdom may be destabilized by the spread of political unrest. Source: Bloomberg |
Turkish bank open branch in Saudi Arabia
Turkish lender Ziraat Bankasi has inaugurated its first branch in Saudi Arabia, in Rowadah district, Jeddah, Arab News has reported. The bank plans to install 40 ATMs in Makkah and Madinah as well as set up more branches in other cities across the kingdom. Source: Arab News |
Aramco selects Samsung for Shaybah NGL
South Korea's Samsung Engineering has been confirmed as the winner of a contract to build Saudi Aramco's multi-billion dollar Shaybah natural gas liquids project, Reuters has reported. Samsung will perform the engineering, procurement and construction work for all the four construction packages related to Shaybah NGL, Aramco said. Source: Reuters |
Saudi issues new rules for shipping medicines
The Saudi Food and Drug Authority has announced new regulations aimed at stemming an upsurge in the online purchasing and selling of medicines, Saudi Gazette has reported. According to the new rules, all shipping and mail companies operating in the kingdom are required to report any medications transported into the country. "The remedies sold online are suspicious and half of them are counterfeit," an official from the SFDA was quoted by the daily as saying. Source: Saudi Gazette |
Saudi Oger to raise 2bn syndicated loan
Construction company Saudi Oger is raising a $2bn syndicated loan to finance the construction of police training facilities in Saudi Arabia, Reuters has reported, citing banking sources. The company has been trying to diversify its financing beyond domestic banks, many of which are near their lending limits for the construction company, the sources said. Source: Reuters |
Saudi United Electronics plans stock market listing
A stock market listing is being planned by Saudi-based United Electronics Co (Extra) in the second half of 2011, as the consumer electronics retailer expands at home and abroad, Arab News has reported. The firm plans to float 30% of its SR240m ($64m) capital to help fund branch expansion plans in Saudi Arabia and elsewhere in the Middle East, chief executive Mohammed Galal said. The company is set to open six new branches, raising the total from 18 to 24 by end-2011, he said. Source: Ame Info |
Gulf hotel markets set to see "challenging" conditions - expert
Selected markets in the Middle East hospitality sector will see more than half their current supply of hotels coming online in the next few years, an industry expert has predicted. Elizabeth Randall, managing director of STR Global, which supplies data to the industry worldwide, said the glut of development in the region could create "challenging market conditions" in the short term. She said Abu Dhabi was likely to report the largest increase in supply (89.4 percent) if every one of the 13,405 additional rooms in its total active pipeline open. Other markets to expect significant increases in existing supply include Riyadh, Saudi Arabia (77.2 percent with 4,831 rooms in its total active pipeline); Jeddah, Saudi Arabia (50.5 percent with 3,033 rooms); Muscat, Oman (49.5 percent with 1,931 rooms); and Dubai (49.2 percent with 28,474 rooms). "The main activity of hotel development in the region takes places across the United Arab Emirates, Saudi Arabia and Oman," Randall said. "Selected markets will see more than half of their current supply entering the markets over the coming years," she added. "Whilst the long-term prospects for the region are good, the new supply will create more challenging market conditions for the short-term. We see a more diverse offering coming into the markets, which were so far dominated by the upscale to luxury properties." Her comments came as STR Global revealed the Middle East/Africa's hotel development pipeline comprised 432 hotels totalling 118,454 rooms in February, a small increase on the previous month. Earlier this week, Deloitte said Middle East hotel occupancy jumped 13.1 percent in January to 60 percent. Revenue per available room (RevPAR) – a benchmark that reflects the industry’s fiscal health - reached $127 per night, trailed by $65 in Europe, $90 in Asia-Pacific and $48 in the Americas. Hospitality in the Gulf has been seeing steady gains throughout 2010 after a dismal two-year recovery from the global recession. Source: Arabian Business |
Saudi inflation slows to 10-months law in February
Saudi Arabia's annual inflation slowed to a 10-month low of 4.9 percent in February, with growth in housing and transport costs subsiding, data showed on Sunday. Inflation in the world's top oil exporter has been falling since it touched 18-month highs of 6.1 percent in August, reaching 5.3 percent in January. However recent handouts by the Saudi king to appease potential unrest could add to inflationary pressures. On a monthly basis, living costs in the biggest Arab economy rose by 0.2 percent in February, slightly up from a 0.1 percent increase in the previous month, data from the Central Department of Statistics showed. "The drop in inflation is going to be temporary, as commodity prices globally have been increasing and eventually you will see a reversal of the trend," said John Sfakianakis, chief economist at Banque Saudi Fransi. Some of new social spending worth $93bn, offered by King Abdullah on Friday to avoid the anti-government protests similar to those that have swept through nearby Arab countries, could also boost prices in the future through higher wages and social benefits. The overall package amounts to nearly 30 percent of economic output when combined with handouts worth an estimated $37bn initially announced last month to ease tensions in the desert kingdom, where more than 10 percent of Saudis are without a job. "I can't see the handouts have much of a short-term impact on inflation over the next few months," said Daniel Kaye, senior economist at the National Bank of Kuwait. "They might have a positive effect on the economy, but what matters more in the short-term is what is happening to food and housing costs," he said. Saudi Arabia, a US ally, has escaped the mass uprisings that have rocked the Arab world. But some dissent has built up as unrest has spread in neighbouring Yemen, Bahrain and Oman. On Sunday, dozens of Saudi men gathered outside the interior ministry in Riyadh, undeterred by heavy police presence, to demand the release of jailed relatives. Saudi food prices, which have the largest 26 percent weight in the consumer basket, rose 0.1 percent on a monthly basis in February after a 0.5 percent drop in the previous month. Housing and transport costs rose by 0.6 percent and 0.3 percent month-on-month, respectively, slower than in January, the data showed. In January, the OPEC member's central bank governor said he was worried that a global rise in food prices this year may drive up inflation in the import-reliant desert kingdom. Analysts polled by Reuters expected average inflation of 5.6 percent in 2011, up from 5.3 percent seen last year. Source: Reuters |
Gulf states spending on rail projects tops $ 106.2bn
The six Gulf states have $106.2bn worth of railway projects under construction as they tackle poor public transports networks and growing populations, a report said Sunday. Oil-rich Saudi Arabia, the wealthiest economy in the Gulf, leads the field with 23 rail projects worth an estimated $25.6bn, data from market research firm Ventures Middle East said. The kingdom holds a 24 percent share of the region’s railway developments, its largest being the $6bn Makkah-Madina track set to link Saudi’s holiest cities. Qatar, which is gearing up to spend $100bn on overhauling its infrastructure ahead of the 2020 World Cup, has a 23 percent share of the Gulf’s rail market thanks to its $25bn Qatar National Rail Scheme. The gas-rich emirate’s integrated rail system will link into the GCC Railway network, a $30bn planned track that will connect all six Gulf emirates by 2017. Qatar’s portion alone is expected to create 7,000 jobs, the chairman of Qatar Railways Company Ghanem bin Saad Al Saad said last week. In the UAE, eight railway projects are underway with a combined value of $20.6bn. The largest of these – the $11bn, 2,500km Emirates Railway Project – will also connect the country to neighbouring Oman and Saudi Arabia on completion in 2017. Other key rail projects include Kuwait’s $17bn national rail, road and metro system, Oman’s National Freight and Passenger Railway, valued at $10bn, and Bahrain’s Rapid Transport Network at an estimated $8bn. Source: Arabian Business |
Saudi Arabia comes closer to china with crude deal
Saudi Arabia's Aramco is building on its ties with China, with plans to supply crude to a refinery in the southwest of the country, where Beijing is building an oil and gas pipeline that slices through Myanmar. Aramco Overseas Company, a subsidiary of Saudi Aramco, said it had signed a memorandum of understanding with PetroChina Company, a subsidiary of China's state-owned oil giant CNPC, this week. The deal involves the "planned development" of a 10 million metric tonnes per annum "grassroots full conversion refinery" in Yunnan, the Chinese province that borders on Myanmar. "Saudi Aramco will supply the project company with up to 200,000 barrels per day of Arabian crude via a long-term contract," according to an Aramco press release. The announcement did not say how the oil would be delivered to land-locked Yunnan. But it appears likely the oil could ultimately come through Myanmar, formerly called Burma. "The deal is not concluded yet. It's an MOU, so we are going to pursue feasibility and study the project, and we hope we will come to the right commercial terms, and the right deal that will make it profitable," Khalid Al Falih, the President and CEO of Aramco, told Reuters on Sunday at a forum in Beijing. CNPC is building the China-Myanmar oil and gas pipelines, intended to bring energy supplies overland from the Middle East, via a crude oil port in Myanmar, which CNPC is also building. This pipeline will make the Saudi crude very competitive because it would slash the journey time through the congested Malacca Strait that links Asia with the Middle East. The deal also underscores China's efforts to secure oil and gas supplies from the Middle East, even as uprisings across the region and fighting in Libya cast uncertainty over pricing and security of supply. China, the world's No 2 oil user, is passing the United States as Riyadh's largest crude oil buyer with volumes poised to touch an average of 1 million barrels per day this year, or roughly one-fifth of China's total crude imports. "China is growing into a 12 million barrel market, and geographically we are the supplier of choice," Falih said. "We are the most reliable, we have the largest reserves, the largest spare capacity, so I think 20 percent of the market will not be unthinkable, and certainly somewhere along those lines would be something that we're working towards," he added. The deepening of China-Saudi ties comes as Saudi Arabia's military intervention in Bahrain has exposed diplomatic rifts between Riyadh and Washington. Chinese President Hu Jintao on Friday met with a special envoy for the Saudi King Abdullah to discuss the situation in the Gulf and the wider Middle East, a region China has limited influence in, despite being a big oil buyer. Aramco, the world's top crude oil exporter, said this week it had signed an MOU with Sinopec Group to jointly build a $10bn Yanbu refinery on the Saudi Red Sea coast. The proposed Yunnan refinery will produce ultra low-sulphur gasoline, diesel and other refined products. Aramco has already partnered with Sinopec, another Chinese oil giant, at a joint venture Fujian plant in southeast China. As the kingdom locks in future oil demand through refinery joint ventures in China, China has in turn secured big contracts in Saudi Arabia. A Chinese firm has built a light rail system to ferry pilgrims from Mecca to holy sites. Yet despite China's growing energy and trade ties with Saudi Arabia and other Middle Eastern states, Beijing lacks the will and means to take on a strong political and security role in the region, analysts say. Source: Reuters |
Home Centre eyes Saudi, UAE, India expansion in 2011
Home Centre, the regional retailer, aims to add 17 new outlets to its global portfolio by the end of 2011. Occupying more than 2.89 million sq ft of retail space, Home Centre currently has 12 shops in the UAE and boasts 71 stores across the Middle East and North Africa (MENA) region and the Indian subcontinent. But the company, part of the Landmark Group, told Arabian Business that it has plans to add another 17 this year in four countries. It is looking to open a further 11 stores in India, four shops in Saudi Arabia, one in the UAE and another in Lebanon. Home Centre, which revealed its revamped brand identity in March 2010 in the UAE, has started the process of deploying the new look across its retail network in the GCC. Progressing in a phased approach, its stores across Kuwait and Saudi Arabia have recently been revamped to reflect the new brand aesthetics. Jonathan Jagtiani, CEO, Home Centre, said: "Conceptualised in the UAE over 15 years ago, Home Centre aims to fill the gap that existed in the home furnishing and décor space. "We continue our efforts towards maintaining the right product mix and a strong value-for-money proposition - factors essential for our growth." Source: Arabian Business |
Saudi TASI may end year at 6,600 to 7,000, Jadwa says
Saudi Arabia’s benchmark index may close the year between 6,600 and 7,000 points as political unrest in the region may limit gains from government spending, according to Jadwa Investment. "While two substantial government spending packages will boost the economy, regional tensions are likely to linger through this year and weigh on investor sentiment," Jadwa said in a research note. The fair value for the Tadawul All Share Index at the end of the year is around 7,400, "but the political uncertainty elsewhere in the region means this level is not likely to be reached," Jadwa said. Tadawul All Share Index has lost 8.3 percent this year and closed 1 percent higher at 6.069.94 on March 16. Source: Reuters |
Saudi chief says Gulf single currency will take time
A Gulf monetary union is still in its early stages and the launch of a common currency will take time, Saudi Arabia's central bank governor said in remarks published on Saturday. "The Gulf monetary union project is huge and we are still in the foundation stage," Muhammad Al-Jasser told Al-Hayat newspaper. "There are no important economic actions or projects held up on this common currency... that is why we will take the right time for it, but this does not mean that we will be sluggish in working on it," he added. Jasser did not give a date for when he expects the currency to be launched. Central bankers from oil producing Gulf states met in Doha last week and discussed some of the necessary steps needed to achieve a common currency. The UAE and Oman withdrew from the plans for the common currency but Jasser said he hopes that they re-join when the time is right for them. "This is their choice ... each country has its own circumstances and we respect that. We hope that they come back to the monetary council when the situation is right for them," he said. Source: Reuters |
Heavyweight SABIC helps Saudi index to six-weeks high
Banking and petrochemical stocks led Saudi shares to a six-week closing high. The all-share index gains 2.3 percent to end at 6,506 points, its highest close since February 15. The banking sector index gained 3 percent, lifted by heavyweight Al-Rajhi Bank which added 1.3 percent and Banque Saudi Fransi which rose 6.4 percent. SABB added 6.9 percent. Petrochemical giant Saudi Basic Industries Corp (SABIC) closed 2.5 percent higher. Source: Reuters |
Largest medical college in Middle east to built in Abha
Saudi Arabia's King Khaled University in Abha is preparing the launch of construction works on the largest medical college in the Middle East, as part of its University City project, Saudi Gazette has reported. The planned college includes more than 24 fully-equipped departments of medicine, pharmacology, dentistry, and applied medical science, along with a conference centre, central library and classrooms. Source: Saudi Gazette |
Saudi plans to boost crude burn for power generation
Saudi deputy minister for electricity Saleh Alawaji has said the kingdom plans to increase its use of crude for power generation in 2011, as the country balances use of a new oilfield against obligations to OPEC, Reuters has reported. "Our main sources are crude oil and natural gas, and the new expansion of power plants this year will use more crude oil," Alawaji told reporters on the sidelines of an industry conference in Singapore. Power generation capacity in the kingdom is likely to grow by about 6% to 10% this year, while installed power generation capacity, which now stands at 50 GW, would grow to 77 GW by 2020. Source: Reuters |
OSN to launch on-demand service in Saudi Arabia A new premium on demand service has been announced by Orbit Showtime Network that delivers the latest movie titles to subscribers in Saudi Arabia, Broadcast Pro has reported. The Saudi Home Cinema service is an on-demand service with automatic downloads that are instantly available when the subscriber chooses to watch. Starting from March 29, the movies will be downloaded into the OSN Showbox HD for 1 month and once ordered will be available for multiple viewings for at least 24 hrs for a one-off cost of $25 per movie. Source: Broadcast Pro |
Saudi firm plans makkah railway network
Saudi-based Al-Balad Al-Ameen Co for Urban Development has said it plans to build an intercity railway network in Makkah linked to the Haramain Train, Saudi Gazette has reported. The company has already carried out a technical study of the project and started a feasibility study, Ahmad Al-Baloushi, the company's executive president said. The high-speed Haramain Train development will link Makkah to Jeddah and Madinah and other cities. A tender for the project is set to be floated in the third quarter of this year, he said. Source: Saudi Gazette |
Sauid Telecom selects JDSU monitoring solution
Saudi Telecom has selected US firm JDSU to provide a comprehensive IPTV end-to-end service assurance solution, giving STC the ability to detect and resolve service and network quality issues for its IPTV service 'InVision'. The solution selected is comprised of several products and services and consolidates all troubleshooting software and hardware elements, and offers an efficient view of key performance indicators (KPIs) to identify issues throughout the entire network. Source: Ame Info |
Alhokair to sell Burberry products in Saudi Arabia
An agreement has been signed by Saudi-based retailer Fawaz Abdulaziz Alhokair Co and Burberry to set up a joint venture to market and sell the British luxury good group's products, Reuters has reported. According to the deal, Alhokair will hold a 40% stake in the Riyadh-based company which is to sell Burberry goods in Saudi Arabia. Source: Reuters |
Saudi Arabia ups guarantee on loans to small firms
Saudi Arabia's government has raised its guarantee to banks offering loans to small and medium sized enterprises (SME) in a bid to increase funding to entrepreneurs. Dr Ibrahim Al Assaf, the Minister of Finance, has announced that the guarantee for SME loans will rise to 80 percent to the maximum of SR1.6m for a single enterprise. The maximum limit of total guarantees of sole proprietorships has also increased to SR5m, and for companies to SR10m. Al Assaf added that the definition of SMEs had also changed to a company whose annual sales do not exceed SR30m, instead of SR20m previously. The Finance Guarantee Programme (FGP) is one of the Saudi government's initiatives to support SMEs, the minister said, adding that they played a "pivotal role" in the economy. "Funding problems along with risk guarantee (a tangible security) are the most prominent obstacles in the face of SMEs progress," he said, adding that the changes would ease the problem. "Moreover, the Credit Guarantee Programme is one of the solutions which will contribute in prompting banks to provide credit facilities for a broader-spectrum of the economically viable enterprises to play their role in the national economy," he added. Source: Arabian Business |
UAE luxury watch market grows, Saudi slumps in Feb
The UAE was the eighth biggest market in the world for luxury Swiss made watches in February, according to the latest industry data. Figures released by the Federation of the Swiss Watch Industry, the country imported watches valued at 63.3 Swiss francs ($69.4m), up nearly five percent on the same month in 2010. Other Gulf nations also figured in the top 30 importers of Swiss watches last month although Saudi Arabia, ranked 15th, saw an 11.6 percent decline in the value of imports compared to last year. Qatar also saw imports slump last month with 15.2m Swiss francs worth of imports, more than 28 percent down on the same month last year. By contrast, both Oman and Kuwait saw Swiss watch imports rocket. The value of imports to Oman rose 271 percent to 8.7m Swiss francs while Kuwait imported watches worth 5.7m Swiss francs, a rise of 104 percent. Throughout the Middle East, the number of Swiss watches imported rose by more than 38 percent to nearly 248,000 units in February, the Federation data said. The largest market for Swiss watches in February was Hong Kong which was worth 273m Swiss francs, up 20.2 percent on the same month last year. Analysts have said some Middle East markets could be hit by lower tourist numbers in the wake of recent unrest. But in comments published by newswire Dow Jones, Swatch Group executive Walter von Kaenel, who is also president of Longines, said the UAE and Saudi Arabia were key markets for the company. "If I look at the figures this year, we have never had such a good February in Dubai as we had," he said. Saudi Arabia is a domestic market little affected by tourism and had a good start to the year, while Dubai had received a lot of Chinese and Russian tourists, he added. Source: Arabian Business |
Saudi consultative council resumes debate on draft mortgage law
Saudi Arabia’s Shoura Council started a fresh debate on a draft mortgage law on Sunday, according to a member of the consultative body. Saad Mariq, deputy chairman of the council’s financial committee, said in a phone interview he didn’t know how long it might take for the council to approve the law. The law, originally submitted about two years ago, aims to bring private lenders into the market by adopting a clearer set of rules. Saudi Arabia, the world’s largest oil exporter, needs 900 new houses a day completed over the next five years, according to a Jones Lang LaSalle report released on Sunday. Saudi King Abdullah must approve the mortgage law if it’s passed by the council. The king on March 18 ordered the construction of 500,000 houses for Saudis at a cost of SR250b ($67bn). The Saudi monarch also raised the value of mortgages provided to nationals by the country’s Real Estate Development Fund to SR500,000 from SR300,000. Source: Bloomberg |
Saudi Investment Bank hikes capital to $ 1.5 bn
Saudi Investment Bank said on Sunday it plans to increase its capital by 22 percent to SR 5.5bn ($1.5bn) by issuing 1 free share for each 4.5 shares. "This will involve the transfer of 1 billion riyals from the leftover profits as of 31, December, 2010," the firm said in a bourse statement on Sunday. In separate statements on Sunday, the Capital Market Authority (CMA) said it had added the bank's new shares, adding one share for each 4.5 shares, and that it will adjust the bank's share price to SR 20.15. Source: Reuters |
Saudi's Alhokair sings JV deal with British label Burberry
Fawaz Abdulaziz Alhokair & Co, the Saudi retail conglomerate, has established a joint venture with luxury British fashion label Burberry to sell its branded products in the kingdom. Alhokair will hold a 40 percent stake in the company, the retail firm said in a statement to the Saudi bourse Saturday. The value of the deal was not disclosed. Alhokair last year sold the Middle East franchise rights to the Fitness First chain of health clubs to UAE-based Landmark Group for an undisclosed sum. Source: Reuters |
Societe Generale give license to operate in Saudi Arabia
Saudi Arabia's Capital Market Authority (CMA) has granted Societe Generale Saudi Arabia, a subsidiary of Societe Generale, a license to operate in the kingdom, Saudi Gazette has reported. The subsidiary will initially focus on the development of corporate and investment banking activities. The license will allow the subsidiary to deal with all instruments defined as securities by the CMA. Source: Saudi Gazette |
Saudi to set up research centres at universities
Saudi higher education minister Khaled Al-Anqari has announced the approval of a number of research centres in various Saudi universities, Arab News has reported. The new research centres are to be set up at the colleges of sciences, medicine and engineering at Imam Muhammad bin Saud Islamic University in Riyadh and the college of dentistry, an institute of studies and consultancy services at Taiba University, a training and legal consultancy centre and a criminal studies centre at the colleges of law and political science at King Saud University. Source: Arab News |
Saudi hotel open new wing
Al Faisaliah Hotel, A Rosewood Hotel, owned by Saudi-based Al Khozama Management Co (AKMC), has announced the opening of its new South Wing. The $50m Al Faisaliah Hotel - South adds 106 deluxe rooms and suites, La Cucina restaurant and a ladies-only spa and a wellness centre slated to open later this year. Source: Ame Info |
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