MODON signs 6,000 contracts worth SR600bn

MODON adopts a flexible strategy in providing manufacturers with lands according to a specific mechanism and special services, and spreading more industrial cities in different regions in the Kingdom.
Updated 22 July 2016
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MODON signs 6,000 contracts worth SR600bn

RIYADH: The Saudi Industrial Property Authority (MODON) has inked more than 6,000 industrial, logistic and services contracts for investments that exceed SR600 billion ($160 billion) and provide job opportunities for more than 520,000 employees.
Sami Al-Hussaini, official spokesperson of MODON, told Asharq Al-Awsat that factories in the industrial zones have registered a remarkable rise during 2015, in addition to the completed and under-construction industrial projects, noting that MODON has enhanced the attraction of industrial investment.
Al-Hussaini noted that the authority has managed 35 industrial cities by the end of 2015 after it joined the development and operation of the industrial zone in Waad Al-Shamal Region.
These industrial cities are characterized by their geographical spread across the Kingdom, which is one of MODON’s main goals, he added.
According to the official spokesman, the manufacturing industries’ contribution to the gross domestic product (GDP) reached 12.2 percent compared to 10.8 percent in 2014. He continued that these industries’ values reached around SR299 billion by the end of 2015.
Al-Hussaini asserted that the visit of Deputy Crown Prince Mohammed bin Salman to the United States and France marked a remarkable step toward the implementation of Saudi Vision 2030 through the inauguration of strategic partnerships with leading companies aiming at importing knowledge and technique, Saudization of expertise in the fields of manufacturing, maintenance, research, development, and the promotion of digital transformation.
The prince has inked an agreement with Cisco Systems International, one of the biggest technology companies in the world of information industry, and launched negotiations with Dow Chemicals and industries working in retail and modern commerce, he stated.
The spokesman of MODON said that the national infrastructure is ready to embrace these major projects through their planning and executing expertise.
Al-Hussaini also revealed that developed industrial lands have registered a growth that jumped from 40.5 sqm in 2007 to 182.5 sqm in 2015.
MODON adopts a flexible strategy in providing manufacturers with lands according to a specific mechanism and special services, and spreading more industrial cities in different regions in the Kingdom, which decreased pending demands in 2015 to 11, compared to 1,525 in 2012, he added.
Al-Hussaini stated that the authority manages the development and operation of private industrial cities and technological zones based on its role in regulating and encouraging the establishment of such projects in industrial lands owned by the public and private sector and to encourage the private sector on participating in different activities related to those cities.
As part of enhancing this vital role, MODON works on recruiting the developers who aim at establishing private industrial cities by providing significant incentives and facilitations.
In this concern, Al-Hussaini revealed that MODON has succeeded over the past years in attracting manufacturers and in authorizing the establishment of new private industrial cities that comprise around 86 manufactures.


Non-Saudi Gulf companies get ready to joint list on Tadawul

Updated 25 April 2019
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Non-Saudi Gulf companies get ready to joint list on Tadawul

  • Two companies, from UAE and Bahrain, about to submit documentation, bourse CEO tells Arab News
  • Joint listings for other Gulf stocks would be an important step in Tadawul’s ambition to be the dominant stock market in the region

RIYADH: Tadawul, the Saudi Arabian stock exchange, is on the verge of announcing the first ever joint-listings of companies from other Gulf countries in a move that further illustrates the growing regional power of the market.

Khalid Al-Hussan, the exchange’s chief executive, told Arab News on the sidelines of the Financial Sector Conference in Riyadh that two companies — one from the UAE and one from Bahrain — are about to submit the necessary documentation to enable their listing in Riyadh. He declined to identify them.

“Two companies are in advanced discussions and are about to submit their files,” he said. The final decision on their listing rests with the regulator Capital Markets Authority, but Al-Hussan has made no secret of his desire to get non-Saudi companies from the Gulf Cooperation Council listed on the Riyadh market.

“We are an important regional platform and we can complement secure access to capital and the liquidity they lack in their home markets,” Al-Hussan said, adding that Tadawul was speaking to several other corporates in the region to gauge their interest.

Joint listings for other Gulf stocks would be an important step in Tadawul’s ambition to be the dominant stock market in the region. Al-Hussan is also planning Gulf-wide initiatives in other areas of securities trading, like settlement and clearing.

“Tadawul can play an important role in post-trade business, because of its size and liquidity. Running a clearing house is very expensive,” he said. Tadawul is already in talks with the Abu Dhabi Securities Exchange and Bahrain Bourse about the possibility of them using Tadawul for clearance and settlement activities.

“They are assessing whether Saudi infrastructure is right for them,” Al-Hussan said. There have been no talks yet with Dubai.

We are an important regional platform and we can complement secure access to capital and the liquidity they lack in their home markets.

Khalid Al-Hussan

News of Tadawul’s growing regional ambitions comes as the Riyadh market continues to reap benefit from the ongoing upgrades to emerging markets status and inclusion in the main indices.

The next tranche of Saudi stocks get included in the FTSE-Russell index next week, while the first tranche under the MSCI upgrade takes place at the end of next month.

“We’re up 18 percent since the beginning of the year, and I don’t think you’ll find many emerging markets performing better than that,” Al-Hussan said of the Tadawul index’s performance.

He said that an influx of foreign investors was a very important reason for the strength of Saudi markets. “It is not just my feeling, it is the facts. Foreign investment is positive every day. Cash inflows are positive and increasing each week,” Al-Hussan said.

The market is also finessing preparations for the introduction of derivatives trading, which is likely to happen in the second half of the year. Al-Hussan said that all the necessary regulations were in place to allow trading in derivatives — securities based on future values of stocks — and that it was awaiting final regulatory approval.

 

 “We are still waiting on the readiness of market traders to actually trade derivatives, and on the readiness of local investors for them. They have to be well informed,” he said.

The Nasdaq Dubai exchange in the UAE already has a platform for derivatives trading in Saudi equities, but Al-Hussan said: “It is very hard for a regional exchange to compete with the domestic one, especially if it does not have much liquidity.”

In the course of the Financial Sector Conference, tech firm Al Moammar Information Systems Company began trading on Tadawul, and marketing is well underway for the forthcoming initial public offering of Arabian Centers by the Fawaz Alhokair Group.

Tadawul also announced a number of “enhancements” to the fee structure of the bond markets, including reducing commissions and waving others, to enhance the competitiveness of debt instruments on the exchange.

FACTOID

18.5%

Rise in the Tadawul All Share Index so far this year