KSA launches incentives to encourage tech, industrial companies to list on Tadawul

KSA launches incentives to encourage tech, industrial companies to list on Tadawul
These incentives were launched in line with the Financial Sector Development Program (FSDP) and the private sector initiative. (Shutterstock)
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Updated 26 June 2021

KSA launches incentives to encourage tech, industrial companies to list on Tadawul

KSA launches incentives to encourage tech, industrial companies to list on Tadawul
  • These incentives stipulate that industrial firms seeking a share listing will be given priority to obtain land plots and factories

RIYADH: The Saudi Authority for Industrial Cities and Technology Zones (MODON) has launched an incentive package to encourage companies to list shares on the Saudi Stock Exchange (Tadawul).

“A set of incentives and facilities have been announced to encourage companies to list in the Saudi Stock Exchange within the framework of the initiative to stimulate the private sector to list in the Saudi financial market,” a MODON spokesman told Arab News.

These incentives stipulate that industrial firms seeking a share listing will be given priority to obtain land plots and factories, managers will be appointed to help with businesses setup, and factories and facilities will be equipped with infrastructure and other utility services, the spokesperson added.

These incentives were launched in line with the Financial Sector Development Program (FSDP) and the private sector initiative.

The FSDP is one of 12 executive programs launched by the Council of Economic and Development Affairs (CEDA) to achieve the objectives of Saudi Vision 2030, which aims to diversify the country’s economy away from oil production and exports, and seeks to develop the financial sector to support the development of the economy by stimulating savings, finance and investment.

Through a series of initiatives, the FSDP aims to boost and encourage private sector companies to list on the Tadawul in cooperation with the Capital Market Authority and the relevant government entities.

The move comes as it was announced that in May Saudi Arabia had issued 59 new industrial licenses to companies with capital of SR532 million ($141.8 million).

This was compared to 33 issued during the same month last year, the Ministry of Industry and Mineral Resources said in a statement.

A report issued by the National Center for Industrial Information showed that 97 percent of the total industrial licenses issued were for national companies, while small factories accounted for nearly 75 percent of the new licenses.

Food manufacturing was the largest sector, accounting for 17 percent of the new licenses.

Riyadh was the most common location for new industrial licenses in May, with 22, followed by the Eastern Province with 12 licenses. Makkah saw 15 new factories open last month, accounting for 76 percent of the total.

Last month saw the creation of 6,753 job opportunities in the Saudi industrial sector, 60 percent of which were for Saudi citizens.

Existing industrial establishments in Saudi Arabia reached 10,070 at the end of May, with a total investment of SR1.134 trillion, according to the report of the National Center for Industrial Information.


Footwear maker Allbirds targets over $2bn valuation in U.S. IPO

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO
Getty Images
Updated 6 sec ago

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO
  • Allbirds said it expects higher expenses to drive up net losses to about $15 million to $18 million in the three months ended Sept. 30

Sustainable footwear maker Allbirds Inc said on Monday it was targeting a fully diluted valuation of as much as $2.2 billion in its initial public offering in the United States.


The company, backed by asset manager Franklin Templeton, said it is offering 19.2 million shares priced between $12 and $14 each, along with the selling stockholders. At the top end of that range, the IPO would fetch about $269 million.


Allbirds said it expects higher expenses to drive up net losses to about $15 million to $18 million in the three months ended Sept. 30, compared to a loss of nearly $7 million a year earlier.


The wool footwear maker is among several companies that have tapped investor interest in sustainable or environmentally friendly goods. In May, Oprah Winfrey-backed vegan milk maker Oatly Group AB and Jessica Alba's consumer goods company Honest Co listed their shares.


Allbirds, which is also backed by Oscar-winning actor Leonardo DiCaprio, uses a plant-based alternative to leather for its shoes.

It has also partnered with Adidas to create a range of sustainable sneakers.


Morgan Stanley, J.P. Morgan and BofA Securities are the lead underwriters for the offering. 


LNG demand to rise 25-50% by 2030: Morgan Stanley

LNG demand to rise 25-50% by 2030: Morgan Stanley
Updated 2 min 9 sec ago

LNG demand to rise 25-50% by 2030: Morgan Stanley

LNG demand to rise 25-50% by 2030: Morgan Stanley

SINGAPORE: Demand for liquefied natural gas is expected to rise by 25 to 50 percent by 2030, making it the fastest growing hydrocarbon over the next decade, analysts from Morgan Stanley Research said in a note on Monday.

Morgan Stanley has raised its long-term LNG price outlook to $10 per million British thermal units (mmBtu), expecting spot prices of the super-chilled fuel to average 40 percent higher over the next decade, versus the past five years.

Asian spot LNG prices hit a record above $56 mmBtu earlier this month as surging demand ahead of the northern hemisphere winter spurred by an economic rebound from the pandemic outstripped supply.

Morgan Stanley said at least 73 million tons per annum (mtpa) of new projects are needed to meet LNG demand by 2030. This will require an additional $65 billion of new projects, on top of the $200 billion of projects already under construction which were sanctioned since 2019.

“Contrary to investor expectations, the world is going to need more LNG in the initial phase of the energy transition,” the analysts said.

“Competing technologies for natural gas are not being developed fast enough, and there are significant benefits in reducing coal consumption while greener fuels are commercialized.”

Projects with lower emission intensity will be more sought after and are more likely to progress, they said.

While higher gas prices are likely to underpin further investment in LNG, supply will be slower to respond than in previous cycles, the analysts said.


China to investigate energy index providers in bid to tame coal prices

China to investigate energy index providers in bid to tame coal prices
Updated 6 min 57 sec ago

China to investigate energy index providers in bid to tame coal prices

China to investigate energy index providers in bid to tame coal prices
  • Thermal coal futures have risen more than 150 percent this year

China said on Monday it will investigate energy price index providers as it urged coal industry participants to "strictly" meet contractual obligations, in its latest bid to tame prices that have hit record highs.


The most-active thermal coal futures contract on the Zhengzhou Commodity Exchange, for delivery in January, tumbled more than 8 percent - their fourth straight daily decline - but recovered some losses to close down 7 percent at 1,305.6 yuan ($204.51) per tonne.


The contract was down more than 34 percent from Tuesday's record of 1,982 yuan. Thermal coal futures have risen more than 150 percent this year.


The state planner, the National Development and Reform Commission (NDRC), said it would investigate complaints that some energy information providers, including in the coal sector, had used false transaction prices, published "hearsay" information and "fabricated" price data, and had "manipulated price indexes".


"As a result, the coal price has completely deviated from the fundamentals of supply and demand, seriously damaging the national and public interests," it said.


The NDRC said it would check for compliance and would summon index providers, and would punish any irregularities with measures such as suspension of publication or inclusion on a blacklist.


It did not name any of the information providers.


Dozens of organisations provide coal pricing data in China, including the China Electricity Council and the China Coal Transportation and Distribution Association. Local consultancies such as Fenwei Digital Information Technology, and Yimei, a trading platform owned by Helue E-Commerce Corp, also publish coal prices.


In September, authorities banned a coal trading firm from publishing daily prices and market news as part of efforts to regulate commodities markets and tame red-hot prices.

Beijing has in recent months issued new rules for commodity price indexes and has said regulators would suspend the activities of those failing to comply.


The NDRC also urged coal firms to strictly meet contractual obligations and asked them to strengthen the credit supervision of medium- and long-term contracts.


The NDRC said it would urge upstream and downstream coal companies to sign mid- and long-term contracts for power and coal and "give full play to the medium- and long-term coal contracts to stabilize the market".


On Monday, the China Coal Industry Association urged member companies to boost output while ensuring mining safety, to guarantee supplies during winter, to promote "rational" coal prices, to execute medium- and long-term contracts, and to sign 2022 contracts in advance.


Climate campaigners are hoping China, the world's top miner and consumer of coal and the biggest emitter of greenhouse gases, can be persuaded to start cutting coal consumption earlier than its target of 2026, but severe energy shortages have put the government under pressure to step up production of the fuel.


China is pushing miners to ramp up production and is increasing imports so power stations can rebuild stockpiles for the winter, but analysts say shortages are likely to persist for at least a few months.


China's securities regulator last week asked futures exchanges to raise fees, restrict trading quotas and crack down on speculation.


Asian Livspace partners with Alsulaiman Group to enter Middle East market

Asian Livspace partners with Alsulaiman Group to enter Middle East market
Updated 10 min 31 sec ago

Asian Livspace partners with Alsulaiman Group to enter Middle East market

Asian Livspace partners with Alsulaiman Group to enter Middle East market

The Indian home interior platform, Livspace, has announced its expansion into the Middle East through a partnership with Alsulaiman Group, starting with Saudi Arabia. 

The two companies have invested about $50 million to fuel growth and expand in the segment across multiple markets in MENA.

Livspace delivers end-to-end execution of interior design and focuses on new mobile applications, AI, machine learning retail technology and visualization solutions for the home improvement industry. 

“This partnership with Livspace will allow us to expand the scope of the customer experience from the beginning of the design of the home to the end of implementation, in an innovative and unique experience to turn the dreams of homeowners into reality,” said Alsulaiman Group CEO Saud Alsulaiman.


Saudi Arabia’s Monshaat supports seven-month region-wide Arab startup contest 

Saudi Arabia’s Monshaat supports seven-month region-wide Arab startup contest 
Updated 46 min 7 sec ago

Saudi Arabia’s Monshaat supports seven-month region-wide Arab startup contest 

Saudi Arabia’s Monshaat supports seven-month region-wide Arab startup contest 
  • The partnership is in line with the authority’s “mission to support the growth and competitiveness of SMEs by incubating a supportive environment”

The General Authority for Small and Medium Enterprises, or Monshaat, has become the official government partner of the MIT Enterprise Forum’s Arab Startup Competition. 

The partnership is in line with the authority’s “mission to support the growth and competitiveness of SMEs by incubating a supportive environment,” it said in a statement. 

The seven-month competition, which includes regional roadshows and a final event in March, is organized by the Community Jameel and Bab Rizq Jameel.

“Previous collaborations between Monshaat and Community Jameel Saudi covered several areas, including developing the financing programs, supporting employment opportunities, and providing digital solutions for entrepreneurs,” deputy governor at Monshaat Saleh Althukair said. 

The series of road shows, held across the Kingdom and other major Arab cities, will end in November, and winners will be announced in March next year at a conference in Madinah.