Saudi Advanced Petrochemicals sees prices rise on stronger demand

Saudi Advanced Petrochemicals sees prices rise on stronger demand
Demand for polypropylene used to make many plastic products such as visors is on the rise. (Reuters)
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Updated 11 March 2021

Saudi Advanced Petrochemicals sees prices rise on stronger demand

Saudi Advanced Petrochemicals sees prices rise on stronger demand
  • Encouraging start to year as demand recovers
  • No difference in feedstock prices for new plant

RIYADH: Saudi Advanced Petrochemicals Company is seeing a rise in product prices as demand for plastics such as polypropylene increases.
The company has seen an improvement in petchem prices by as much as 25 percent since the beginning of the year, Chairman Khalifa Al-Melhem told Al Arabiya on Wednesday.
Al-Melhem said that demand for polypropylene which is used to make a wide range of consumer goods including visors, had increased by 4 to 5 percent.
He also confirmed that the company would receive its feedstock for its latest project at the same price as all other producers in the Kingdom,
Saudi petrochemical companies use the Kingdom's vast reserves of natural gas as the main feedstock to make a range of plastics that are exported worldwide.
Advanced Global Investment Company (AGIC), a unit of Saudi Advanced Petrochemicals Company, has received Ministry of Energy approval to allocate feedstock for the construction of a petrochemical complex project in Jubail Industrial City, the company said this week.


Saudi Arabia launches project to promote algae industry

Saudi Arabia launches project to promote algae industry
Updated 5 sec ago

Saudi Arabia launches project to promote algae industry

Saudi Arabia launches project to promote algae industry

RIYADH: Saudi Arabia’s National Fisheries Development Program on Tuesday launched a project to develop commercial algae technology and promote localization of the algae industry in the Kingdom.

The fisheries development program comes under the purview of the Saudi Ministry of Environment, Water and Agriculture. 

Ali Al-Shaikhi, the CEO of the program, said the project aims to promote the algae industry in the Kingdom and in order to do so the first commercial model for the cultivation of algae will be established in 2022. 

Al-Shaikhi said plans are also underway to establish an algae center in the Kingdom.


Saudi Arabia issues $2.27bn in domestic sukuk

Saudi Arabia issues $2.27bn in domestic sukuk
Updated 25 min 45 sec ago

Saudi Arabia issues $2.27bn in domestic sukuk

Saudi Arabia issues $2.27bn in domestic sukuk

RIYADH: Saudi Arabia issued SR8.5 billion($2.27 billion) in domestic sukuk for the month of October, the National Debt Management Center said on Tuesday.

The Islamic bonds were split into two tranches: SR3.905 billion  due in 2029, and another of SR4.595 billion due in 2033.


IMF official hopes Lebanon program talks can start before new year

IMF official hopes Lebanon program talks can start before new year
Updated 19 October 2021

IMF official hopes Lebanon program talks can start before new year

IMF official hopes Lebanon program talks can start before new year

An executive director at the International Monetary Fund said on Tuesday that he hopes program negotiations with Lebanon could start before the new year to try to pull the country's economy out of a crisis.

An IMF program is widely seen as the only way Lebanon can unlock foreign financial help which it desperately needs to emerge from one of the world's sharpest economic depressions.

“We hope the effort being made today will lead to access to all the data and to sufficient information ... all required data must be available first,” IMF’s Mahmoud Mohieldin said in a statement.

Mohieldin's remarks come after a meeting with Lebanon's Prime Minister Najib Mikati on Tuesday.

He added that any conditions the IMF would require “will not be harsher than what we see in Lebanon today.”

“I imagine that after the success of this program ... the required confidence can be restored to the economy and we positively bet on the ability of the economy and Lebanese people to respond to positive signals,” Mohieldin said.


Saudi economy to grow by 7.3% next year: Capital Economics

Saudi economy to grow by 7.3% next year: Capital Economics
Updated 19 October 2021

Saudi economy to grow by 7.3% next year: Capital Economics

Saudi economy to grow by 7.3% next year: Capital Economics

CAIRO: Economic research firm Capital Economics expects the Saudi economy to grow by 2.5 percent this year and by an impressive 7.3 percent in 2022. 

When compared to the firm’s pre-pandemic estimates, the country’s GDP would be about 3 percent higher by the end of 2023.

William Jackson, Chief Emerging Market Economist at CE, added: "This would make the Saudi economy one of the few in the world where GDP will be above its pre-pandemic trend over the forecast period.”

The company predicts that higher oil output, along with a less contractionary fiscal policy, would drive the economy’s recovery next year.

Saudi inflation is also projected to edge a little higher towards 1 percent by the end of this year and the first quarter of 2022. 

Following this period, the rise in consumer prices is expected to be in the 1-1.5 percent range. However, it could fall to a lower level in case the VAT rate dropped, the company pointed out.

The new report also offered an outlook for the whole region. Gulf countries’ economic recovery as a whole is expected to gain momentum due to their strong vaccination rates and higher oil production.

In the UAE, rising oil output and the World Expo are expected to fuel the economy’s growth. 

Despite an expansion in economic activity driven by rising gas output, Qatar’s rebound could prove to be weaker than other GCC countries due to risks in the non-oil sector.

Meanwhile, Oman and Bahrain could face setbacks in their recoveries as they grapple with contractionary fiscal policies and mounting public debt.

In addition, Egypt’s recovery could gain pace in the next quarters as the economy re-opens. However, a weak vaccination campaign and a tight fiscal policy might hamper this trend. 

The firm expects the country’s economy to grow by 4.8 percent and 5.8 percent in 2020 and 2021 respectively.


TASI up 0.3 percent; supported by the banking sector: Market Wrap

TASI up 0.3 percent; supported by the banking sector: Market Wrap
Updated 19 October 2021

TASI up 0.3 percent; supported by the banking sector: Market Wrap

TASI up 0.3 percent; supported by the banking sector: Market Wrap

RIYADH: The Tadawul All Share Index rose on Tuesday by 0.3 percent, or 34 points, to 11.792 points. 

Some 198.6 million of shares changed hands in 341,000 deals, with heavy trading in ACWA Power, AL Rajhi, and Petro Rabigh. 

The market's rise is supported by an increase in banking shares, led by Al-Rajhi Bank, which rose by 3.1 percent — the highest increase since 2006.

Etihad Etisalat shares also rose by 2.8 percent, supported by the company's profit growth in the third quarter, which amounted to SR281 million — up 56.6 percent. The firm also reported a 7.4 percent growth in revenues.

The biggest winners today were National Buildings and Marketing by 12.1 percent, Shams by 4.3 percent, Al Naqool by 3.5 percent, Al Rajhi by 3.1 percent, Mebco by 2.9 percent, Mobily and Saudi Re by 2.8 percent. 

Other News:

Arabian Contracting Services Co. announced that 1.5 million shares will be offered to individual subscribers, the equivalent of 10 percent of the total shares offered for public subscription. The price of the offering ranges between SR90-100 per share, according to the director of the offering, GIB Capital.

The Arab Company for Internet and Communications Services "Solutions" achieved a net profit with the amount of SR257 million in the third quarter of 2021, compared to SR240 million for the same period last year — an increase of 7.08 percent 

The company said that the profit growth is mainly due to the increase in gross profit by 6.7 percent (SR29 million), thanks to a rise in total revenues by 0.46 percent (SR 9million) and a decrease in revenue costs by 1.3 percent (SR20 million)

The parallel stock market index Nomu closed up 24368.26 points, or 2.23 percent, where 464.4 thousand shares were traded, with 1885 deals. 

The biggest fallers today were Yansab by 3.5 percent, Arabia Insurance cooperative, Alinma Tokio Marine, and Petro Rabigh by 3.1 percent respectively, and Sumou and United Cooperative Assurance by 2.9 percent each.