Saudi Arabian buyers purchase 330,000 tonnes feed barley

Updated 05 October 2012
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Saudi Arabian buyers purchase 330,000 tonnes feed barley

HAMBURG: Saudi Arabian private buyers have purchased 330,000 tons of feed barley of optional origin thought likely to be sourced from Argentina and Australia,European traders said on Friday.
Price was between $335 and $340 a ton c&f depending on Saudi port of discharge.
The grain was for shipment in December 2012 and January 2013, traders said.
The Black Sea region is traditionally Saudi Arabia’s main supplier of feed grains. But crops in Russia and Ukraine were seriously damaged by a summer drought and heatwave this summer, cutting supplies for grain exports.

“It looks like Saudi buyers will be compelled to buy from much further afield in the next few months,” a trader said.

“They have already bought a lot in west Europe.” Another trader said: “The Saudis offered about $330 a ton for October shipment in the Black Sea market and could not get anything like the volumes offered from Argentina and Australia.”

“Argentine barley export selling prices have risen by about $4 a ton in the last two days to $299 a ton for December/January shipment so it seems possible that some of this business is being placed there.”


Saudi Arabia’s Jabal Omar Development Company returns to profit

Updated 59 min 10 sec ago
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Saudi Arabia’s Jabal Omar Development Company returns to profit

  • Developer launches roadshow to promote 'Address' brand
  • Taps into rising occupancy rates in holy city

LONDON: The Saudi developer behind the transformation of the center of Makkah — Jabal Omar Development Company — has returned to profit in the third quarter after a string of losses over the last year.
The change in fortune will be welcomed by the Tadawul-listed company as it pushes forward with its luxury hotel, residential and retail developments being built to meet the anticipated growth in demand from visitors and pilgrims to the holy city.
Net profit — minus Zakat and tax — reached SR469.62 million ($125.13 million) for the three months ending Sept. 30 in a Saudi exchange filing on Tuesday. This compared to a loss of SR593.97 million recorded in the same quarter last year.
Jabal Omar said the improved profits were due to increased revenue from sales of residential units.
Third-quarter revenue reached SR1.32 billion compared to revenue of SR45.52 million in the same time period the previous year.
The developer also cited a “positive performance” within its commercial sector as well as a reduction in some of the company’s financial burdens.
The results come in the same month Jabal Omar launched a three-day roadshow on Oct. 8 to market its new “Address“-branded Makkah luxury hotel development.
It is a project being managed by Dubai-based Emaar Hospitality Group — the company behind the high-end “Address” hotel brand. Jabal Omar said is looking to sell 741 freehold units.
The project marks the first time Emaar’s ‘Address Hotels and Resorts’ brand has expanded into Saudi Arabia. It is scheduled to open in 2019 and it will be just a few steps away from the Grand Mosque.
Market commentators say they expect demand for luxury hotels and other residential projects in Makkah to continue to be “strong” in the coming year — something Jabal Omar Development Co. will be keen to capitalize on.
“Makkah is a unique market and there is strong demand for luxury hotels throughout the year. A large proportion of demand for luxury hotels come from wealthy GCC travelers, who are largely repeat visitors to the Holy City,” said Rashid Aboobacker, director at the Dubai-based tourism consultancy, TRI Consulting.
“There has always been high demand for luxury residences in Makkah close to the Haram, driven by the prestige and special status of the location as well as the limited supply,” he said.
“Once the ongoing expansion works are complete, the visitor numbers are set to increase substantially. Consequently, we do not foresee any risk of overcapacity in Makkah in the foreseeable future,” he added.
He added that alongside the growth in luxury developments, there is also a “growing need” for midscale and economy hotels and apartments.
“We believe that there is also need for upgrade of the existing stock as a large proportion of them do not fully conform to international quality standards and guest requirements,” he said.
Christopher Lund, head of hotels, Mena, at the consultancy Colliers International, noted that the luxury sector tends to perform better than other parts of the Makkah hospitality market.
“The 5-star upper-upscale and luxury hotels in Makkah have outperformed the overall market, achieving a 12 percent higher occupancy level year-to-date September 2018, which is primarily due to the fact that the 5-star hotels are located in the most prime locations in the central area,” he said.
“So far in 2018, hotels in the central area have achieved a 49 percent higher RevPar (revenue per available room than the overall Makkah quality hotel market.”