Saudi Arabia strikes $1bn Korean engineering deal

Updated 25 October 2017

Saudi Arabia strikes $1bn Korean engineering deal

RIYADH: Saudi Arabia’s Public Investment Fund (PIF) has shelled out $1 billion for a 38 percent stake in Posco E&C, the construction arm of the giant South Korean steelmaker Posco.
The deal is driven by the Korean company’s drive to expand in the Middle East and comes as Posco E&C, in which Posco holds an 89.53 percent stake, plans to go public to bolster its balance sheet.
Speaking on the sidelines of the Future Investment Initiative forum in Riyadh on Tuesday, Posco head Ohjoon Kwon confirmed earlier media reports that the South Koreans would make a meaningful contribution to the Kingdom’s “Saudi Vision 2030” economic program by engaging in various construction projects.
The company has already invested $14 million for a 40 percent share in a joint venture with PIF called “Posco E&C Saudi Arabia,” revealed Kwon. The PIF holds the remaining 60 percent.
“Posco aspires to create business opportunities and contribute to the Saudi National Transformation Program through knowledge transfer and best practice sharing,” Kwon said.
He said he looked forward to sharing the means by which South Korea undertook economic diversification after being as reliant on agriculture as Saudi Arabia is on oil today.
He believed KSA had a taken a first step towards the development of its steel industry, “which is the very foundation of any industrialization effort.”
Posco, he added, was currently working with a Saudi Arabian developer on an urban development project within the Riyadh metropolitan region. 


Houthis threaten global energy security: Arab coalition

Updated 51 min 26 sec ago

Houthis threaten global energy security: Arab coalition

  • The Arab coalition denounced Saturday's attack on a Saudi Aramco gas plant
  • The Yemeni militant attack sparked a fire but caused no casualties or disruption to production

RIYADH: The Arab coalition fighting to restore the internationally recognized government in Yemen on Monday denounced a Houthi attack on a Saudi Aramco gas plant in Saudi Arabia.
The militants claimed 10 drones struck the Shaybah natural gas liquefaction plant near the border with the UAE on Saturday.
“The Houthi militia have endangered global energy security by targeting Shaybah oil field in Saudi Arabia,” spokesperson Col. Turki Al-Maliki said.
The militants, who are based in Yemen and backed by Iran, have used drones laden with explosives to target infrastructure in the Kingdom.
Speaking at a weekly press conference in Riyadh, Col. Al-Maliki said the that Houthi and Daesh militias are conducting simultaneous operations in Yemen, stressing that the Houthis, who sparked the Yemen war in 2014, continue to pose a clear threat in the southern Red Sea.
The coalition, which includes Saudi Arabia and the UAE, intervened in the Yemen conflict in 2015 to support forces loyal to the internationally recognized government after it was driven from the capital Sanaa by the Houthis.