Saudi REITs surge after oversubscription

Updated 29 May 2017
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Saudi REITs surge after oversubscription

DUBAI: The Tadawul All Share Index (TASI) climbed 0.6 percent on Monday with real estate investment trusts (REITs) accounting for three of the top four percentage gainers after Saudi Fransi Capital said an offer of units in its new Taleem REIT this month was 890 percent subscribed, indicating strong demand for REITs.
Petrochemical shares were strong with Saudi Kayan gaining 1.3 percent, although small producer Nama Chemicals, which had plunged its 10 percent daily limit on Sunday, slid a further 1.6 percent.
The Dubai index added 0.7 percent. The four most active stocks were worth less than 1 dirham each, with Union Properties, the most heavily traded stock, gaining 2.4 percent.
Amusement park operator DXB Entertainments (DXBE), whose slide this year has weighed heavily on the Dubai market, edged up 0.5 percent after it said chief executive Raed Kajoor Al-Nuaimi had been appointed CEO of a new entity that will manage development projects for Dubai Holding and Meraas Holding. Al-Nuaimi will remain CEO of DXBE until a new chief is appointed, the company said without elaborating.
Loss-making builder Drake & Scull gained 1.5 percent after banking sources told Reuters about its recovery plan, including its projection that earnings before interest, taxes, depreciation and amortization will turn positive this year.
Qatar’s index edged down 0.1 percent but Qatar First Bank, the most heavily traded stock, climbed 5.8 percent. In the last several days, it has rebounded from record lows in unusually heavy trade.
In Kuwait, logistics giant Agility climbed 2.3 percent to 0.706 dinar, after a 6.2 percent surge on Sunday. The company said at the end of last week that it had agreed to pay $95 million in cash to settle a civil lawsuit accusing it of defrauding the US military on food supply contracts. The deal allows it to pursue US government contracts again.
SICO Bahrain called the resolution of the US case a major positive and upgraded the stock to a “buy” with a target price of 0.85 dinar.


MODON to establish integrated pharmaceutical complex

Updated 23 May 2019
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MODON to establish integrated pharmaceutical complex

JEDDAH: The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed an industrial land lease covering more than 62 thousand square meters in the city of Madinah, to build a pharmaceutical complex including research and development centers, with a total investment reaching SR 570 million.

MODON’s Director General Khalid bin Mohammed Al-Salem said that the signing of the contract was the result of joint work with the National Program for the Development of Industrial Compounds. MODON provided various facilities and incentives to support the investment, with the project set to provide nearly 1000 jobs for both genders with a localization rate exceeding 50 percent.

He added that the project is in line with the goals of the National Industrial and Logistics Development Program (NIDLP) to localize the most advanced industries in the world, in accordance with Saudi Vision 2030 for economic diversification.

Since its inception in 2001, MODON has been developing integrated industrial lands in accordance with the highest international standards. It currently oversees 35 industrial cities under development in various regions of the Kingdom, in addition to supervising private industrial parks and cities. The developed industrial lands exceeded until today 198.8 million square meters, while the existing industrial cities include 3,474 productive factories.