New company to carry out 20 projects with SR7.45bn investments

Updated 26 March 2014
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New company to carry out 20 projects with SR7.45bn investments

The newly established Saudi Arabian Industrial Development Company will carry out 20 projects in the next five years involving a capital investment of SR7.45 billion, said Finance Minister Ibrahim Al-Assaf.
“This company will have a tremendous impact on the Kingdom’s industrial sector, making it more competitive in world markets,” he added.
“The government will invest about SR5.6 billion on infrastructure required by these projects, including wharfs at ports.”
Al-Assaf, who is chairman of the board of director of Public Investment Fund, thanked the Council of Ministers for its decision to license the new company with a capital of SR2 billion. PIF will contribute 50 percent of the capital while Saudi Aramco and SABIC will give 25 percent each.
He said the new company would exploit its basic products as well as the products of strategic industries in the Kingdom to use them for downstream and support industries. “It will invest in petrochemicals, plastics, iron and steel, aluminum and fertilizers as well as other basic industries,” he explained.
Al-Assaf expressed his hope that the new company would attract more industrial investment in the Kingdom. He praised PIF officials for their efforts to establish the new company and study its investment projects.
Abdul Rahman Al-Mufdhi, secretary-general of PIF, said the company would implement a number of downstream industries without competing with the private sector. “The new company’s projects will cover strategic sectors.”
He said the company would also focus on shipping, equipment required for energy, water and electricity, oil and gas industry and automobile industry.
Khalid Al-Falih, president and CEO of Saudi Aramco said: “The new company comes in line with Saudi Aramco’s strategic initiatives to establish service and energy industries that are capable to compete at international level.”
Al-Falih said the new company would help export a substantial portion of Saudi Aramco’s products and services to world markets.
“This will benefit the national economy through the establishment of energy-related downstream industries, creating more jobs for Saudis and strengthening the Kingdom’s global competitive position in the sector,” he explained.
Mohamed Al-Mady, vice president and CEO of SABIC, was also happy over the Cabinet decision to license the new investment company, saying it would play a strategic role in optimum utilization of basic industries. “The new company will also strengthen the Kingdom’s downstream industries.”


Oil prices jump as US crude stocks fall, Middle East worries add support

Updated 26 June 2019
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Oil prices jump as US crude stocks fall, Middle East worries add support

  • Analysts said the gains were mainly driven by American Petroleum Institute data showing a fall in US crude inventories
  • Data come as traders watched for any signs that tensions between the US and Iran could escalate into military conflict
SYDNEY: Oil prices rose more than 1 percent on Wednesday to their highest in nearly a month as industry data showed US crude stockpiles fell more than expected, underpinning a market already buoyed by worries over a potential US-Iran conflict.
Front-month Brent crude futures, international benchmark for oil, were up 1.3 percent at $65.91 by 0341 GMT. They earlier touched their highest since May 31 at $66 a barrel.
US West Texas Intermediate (WTI) crude futures were at $58.98 per barrel, up 1.8 percent from their last settlement. WTI earlier hit its strongest level since May 30 at $59.03 a barrel.
Analysts said the gains were mainly driven by American Petroleum Institute (API) data showing a fall in US crude inventories.
US crude stockpiles fell by 7.5 million barrels in the week ended June 21 to 474.5 million, compared with analyst expectations for a decline of 2.5 million barrels, the data showed. Crude stocks at US delivery hub Cushing, Oklahoma, fell by 1.3 million barrels.
“Oil prices went ballistic after the API report,” said Stephen Innes, a managing partner at Vanguard Markets.
“Oil prices have been squeezing higher on escalating tensions in the Middle East. But with late-day draws showing up in the API report, this is a strong signal for the energy market,” Innes said.
The data came as traders watched for any signs that tensions between the United States and Iran could escalate into military conflict.
US President Donald Trump threatened on Tuesday to obliterate parts of Iran if it attacked “anything American,” in a new war of words with Iran. Tehran has condemned a fresh round of US sanctions as “mentally retarded.”
Bilateral tensions between the two have spiked anew after Iran shot down a US drone last week in the Gulf. Relations have been tense since Washington blamed attacks on oil tankers just outside the Gulf in May and June on Iran, while Tehran has repeatedly said it had no role in the incidents.
Conflict between Washington and Tehran has stoked fears that shipments passing through the Strait of Hormuz — the world’s busiest oil supply route — could be disrupted.
Seeking to calm a nervous market, the head of national oil company Saudi Aramco said on Tuesday the company can meet the oil needs of customers using its spare capacity.