Total and Saudi Aramco to create thousands of jobs in $1bn gas station plan

Saudi Aramco and Total on Thursday agreed to invest $1 billion in the Kingdom’s retail fuel market in a move that is expected to create thousands of new jobs. (File/AFP)
Updated 14 February 2019
0

Total and Saudi Aramco to create thousands of jobs in $1bn gas station plan

  • The investment will be made over a six-year period
  • The two companies have also signed an agreement with the owners of Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire TMC and STC

LONDON: Saudi Aramco and Total on Thursday agreed to invest $1 billion in the Kingdom’s retail fuel market in a move that is expected to create thousands of new jobs.
The investment will be made over a six-year period, the pair said in a joint statement.
“Total is proud to be the first international oil major to invest in Saudi Arabia’s fuel retail network. This joint venture agreement is in line with our global strategy to expand in fast-growing markets worldwide.” said Momar Nguer, executive committee member at Total, “This new agreement is also reaffirming our long-term partnership with Saudi Aramco.”
The two companies have also signed an agreement with the owners of Tas’helat Marketing Company (TMC) and Sahel Transport Company (STC) to acquire TMC and STC.
It means that the Aramco-Total joint venture will take control of an existing network of 270 service stations together with their tanker fleet.
“We aim to enhance the quality of services, as well as create thousands of jobs and additional investment opportunities in the Kingdom, said Abdulaziz Al-Judaimi, Saudi Aramco senior vice president of downstream.”
“This project will also help optimize the total value of our hydrocarbon resources.”
Total CEO Patrick Pouyanne teased Thursday’s announcement last month during a panel at the World Economic Forum in Davos.


Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

Updated 25 April 2019
0

Head of Saudi Arabia’s SRC: ‘Ask banks for a mortgage, and we will refinance it’

  • SRC CEO Fabrice Susini: One of our key objectives is to ensure that the banks are extending loans to more and more people
  • Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production

RIYADH: The head of the state-owned Saudi Real Estate Refinance Company (SRC) has made an unprecedented offer to the Kingdom’s home-seekers to underwrite future mortgages.
Speaking at the Financial Sector Conference in Riyadh, Fabrice Susini, SRC CEO, told the audience: “Ask them (the banks) for a mortgage, and we will refinance it.”
Although Susini later clarified his remarks to show that he still expected normal standards of mortgage applications to be met, the on-stage show of bravado illustrates SRC’s commitment to facilitate home-ownership in the Kingdom.
“Obviously if you have no revenue, no income, poor credit history, that will not apply. Now if you have a job, it is different. We have people in senior positions at big foreign banks that could not get a mortgage,” he explained.
He said that Saudi banks have traditionally assessed mortgages on the basis of “flow stability” of earnings. Government employees, or those of big corporations like Saudi Aramco and SABIC, found it easy to get mortgages “because you were there for life.”
“One of our key objectives is to ensure that the banks are extending loans to more and more people. The government is pushing for entrepreneurship, private development, private jobs. If you work in the private sector and cannot get a mortgage the next thing you will do is go to the government for a job,” Susini said.
Extending home-ownership is one of the cornerstones of the Vision 2030 strategy to diversify the economy away from oil production. Saudi Arabia has one of the lowest rates of mortgage penetration of any G20 country — in single digit percentages, compared with others at up to 50 percent.