Saudi Fransi to advise Emaar the Economic City on $753m capital hike debt conversion

Saudi Fransi to advise Emaar the Economic City on $753m capital hike debt conversion
Emaar the Economic City aims to increase its capital through a Public Investment Fund loan conversion. (Supplied)
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Updated 06 May 2021

Saudi Fransi to advise Emaar the Economic City on $753m capital hike debt conversion

Saudi Fransi to advise Emaar the Economic City on $753m capital hike debt conversion

DUBAI: Emaar The Economic City has hired Saudi Fransi Capital to advise on a capital increase through the conversion of a SR2.83bn ($753 million) loan owed to the Public Investment Fund.
It comes after a tough year for the developer behind King Abdullah Economic City as the pandemic slowed major construction projects worldwide.
“The reason for the debt conversion is to improve the company’s liquidity and credit position and enhance its ability to achieve its growth objectives,” the developer said in a stock exchange filing on Thursday. “The capital increase will not result in any financial liability on or require any cash contribution by the company’s shareholders.”
The developer in March reported widening 2020 losses as it recorded an impairment of SR316 million on properties available for sale and lease and other operating assets.
The capital hike through debt conversion is subject to market and shareholder approval.


UPS Q3 earnings beat estimates as revenue grows 9%

UPS Q3 earnings beat estimates as revenue grows 9%
Getty Images
Updated 7 sec ago

UPS Q3 earnings beat estimates as revenue grows 9%

UPS Q3 earnings beat estimates as revenue grows 9%
  • The results exceeded Wall Street expectations

United Parcel Service Inc. on Tuesday reported third-quarter profit of $2.33 billion.


On a per-share basis, the Atlanta-based company said it had profit of $2.65. Earnings, adjusted for non-recurring costs, were $2.71 per share.


The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.52 per share.


The package delivery service posted revenue of $23.18 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $22.61 billion.


‘Let the unicorns come!’ PIF advisor says Saudi's economic ‘pie’ is growing

‘Let the unicorns come!’ PIF advisor says Saudi's economic ‘pie’ is growing
Updated 58 sec ago

‘Let the unicorns come!’ PIF advisor says Saudi's economic ‘pie’ is growing

‘Let the unicorns come!’ PIF advisor says Saudi's economic ‘pie’ is growing

Entrepreneurship is the new growth economy, according to a leading figure in Saudi Arabia’s Public Investment Fund (PIF) as he called for business “unicorns” to come to the country.

Andrew Liveris, special advisor to the governor of the PIF, made the remarks as he discussed how economies need to diversify to embrace the digital age.

Speaking at the Future Investment Initiative Forum in Riyadh, Liveris insisted the economic “pie will get bigger”, but workers will need to be retrained to carry out the new, less traditional, jobs of the future.

Referring to start-ups that go on to achieve market valuations of over a billion dollars, Liveris said: “Let the unicorns come.”

His comments chime with those made by billionaire businessman Larry Fink at the Middle East Green Initiative Summit on Monday.

The chairman of US asset management giant BlackRock told delegates at the forum in Riyadh it will be firms producing environmentally-friendly goods and systems that will become the next billion dollar companies.

Fink said: "It’s my belief that the next 1,000 unicorns - companies that have a market valuation over a billion dollars - won’t be a search engine or media company. They will be businesses developing green hydrogen, and green agriculture, and green steel and green cement."


A slowdown in Korean economic activity; interest rates remain unchanged in Japan: Economic wrap

A slowdown in Korean economic activity; interest rates remain unchanged in Japan: Economic wrap
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Updated 14 min 17 sec ago

A slowdown in Korean economic activity; interest rates remain unchanged in Japan: Economic wrap

A slowdown in Korean economic activity; interest rates remain unchanged in Japan: Economic wrap
  • Producer prices in Spain leaped by an annual rate of 23.6 percent in September

South Korea’s economy jumped by 4 percent year-on-year in the third quarter of 2021, slowing from the 6 percent increase it experienced in the prior period, a preliminary estimate by The Bank of Korea showed. 

Jumps in Covid-19 cases across the country have caused both private consumption and fixed investment to slow in this year’s third quarter. Meanwhile, government expenditure increased by 6.3 percent, up from last quarter's 5.3 percent growth rate.

In addition, the country’s GDP recorded a quarterly growth of 0.3 percent, dropping from 0.8 percent in the previous period, according to preliminary estimates.   

Rates to remain steady in Japan

Unlike other central banks that hiked their interest rates, the Bank of Japan is set to keep its rates on hold.

Japan has been experiencing high producer prices in the last period, yet consumer inflation remained at zero due to weak domestic demand.

The bank is expected to maintain its targets for short-term interest rate and 10-year bond yields at -0.1 percent and 0 percent respectively.

Producer prices in Europe 

Producer prices in Spain leaped by an annual rate of 23.6 percent in September, up from 17.6 percent in the previous month, official data showed. This is the highest rate since December 1977.

The hike in prices was driven by supply chain disruptions, energy shortages and last year’s low base effects.

Similarly, Sweden's producer prices soared to a record high of 17.2 percent on a yearly basis in September, expanding from 15.8 percent in August, Statistics Sweden said. 

Producer inflation has now risen for the eighth month in a row as costs of natural gas and crude oil helped fuel the increase in prices.

Singapore’s manufacturing

Singapore’s manufacturing output fell by 3.4 percent year-on-year in September, declining sharply from last month’s growth of 11 percent. Singapore Economic Development Board also said that a rise in the Delta variant cases contributed to the slip in production.

Biomedical manufacturing slumped by 35.9 percent while general manufacturing output declined by 2.7 percent in September, down from a growth rate of 6.4 percent in August. 

Manufacturing output also declined on a monthly basis in September, decreasing by 2.8 percent.


Saudi Arabia aims for 4000 factories to be automated within 5 years: Minister of industry

Saudi Arabia aims for 4000 factories to be automated within 5 years: Minister of industry
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Updated 25 min 12 sec ago

Saudi Arabia aims for 4000 factories to be automated within 5 years: Minister of industry

Saudi Arabia aims for 4000 factories to be automated within 5 years: Minister of industry
  • The Fourth Industrial Revolution (4IR) is a fusion of advances in artificial intelligence, blockchain, robots, 3D-printing and the internet of things

The Saudi ministry of industry and mineral resources plans to convert 4000 factories from heavy reliance on expatriate workers to digital automation within 5 years, Bandar Al Khorayef told Alarabiya. 

This comes amid the ministry’s efforts to build a conducive industrial environment for SMEs, as they account for over 80 percent of the total industrial new licenses since the beging of 2021, El Khorayef noted in a previous statement. 

The minister highlighted the importance of investing in Fourth Industrial Revolution’s applications, due to its role in changing the shape of the industrial sector, in his interview to Alarabiya. 

The Fourth Industrial Revolution (4IR) is a fusion of advances in artificial intelligence, blockchain, robots, 3D-printing and the internet of things, that is expected to support Saudi’s transformation towards an innovation-based economy. 


Saudi Basic Industries hits year high: Market wrap

Saudi Basic Industries hits year high: Market wrap
Image: Shutterstock
Updated 29 min 33 sec ago

Saudi Basic Industries hits year high: Market wrap

Saudi Basic Industries hits year high: Market wrap
  • Retailer Jarir signed a contract to sell a land plot to Jarir Real Estate for SR97.9 million

The Tadawul All Share Index, TASI, rose by 0.01 percent to surge past 11,890 points in early trade today.

Herfy Food Services posted a net profit of SR60.1 million ($16 million) in the third quarter of the year.

Retail investors start a subscription to 1.5 million shares of Arabian Contracting Services Co. (Al Arabia) today.

Retailer Jarir signed a contract to sell a land plot to Jarir Real Estate for SR97.9 million.

Metal Manufacturer Maadaniyah shareholders to vote on 16.7 percent capital cut, SR120 mln rights issue on Nov. 23

Shipping firm Tihama said a court ruling to pay SR11.8 mln compensation to Riyadh Municipality was upheld.

Saudi Arabia Refineries Co. (SARCO) reported a 28 percent growth in net profit in the first 9 months of 2021.

Al Moammar Information Systems Co. (MIS) posted a 29 percent drop in profits for the first 9 months of 2021.

Stocks of Saudi Basic Industries Corp. (SABIC) and Saudi Ground Services Co. (SGS) hit their highest levels in 52 weeks today.