PIF’s Sanabil Investments increases share capital by 50% to $8bn

The Saudi Arabian Investment Company (Sanabil Investments) on Wednesday announced that its parent company, the Public Investment Fund, had approved increasing its share capital by 50 percent. (Supplied)
The Saudi Arabian Investment Company (Sanabil Investments) on Wednesday announced that its parent company, the Public Investment Fund, had approved increasing its share capital by 50 percent. (Supplied)
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Updated 07 July 2021

PIF’s Sanabil Investments increases share capital by 50% to $8bn

The Saudi Arabian Investment Company (Sanabil Investments) on Wednesday announced that its parent company, the Public Investment Fund, had approved increasing its share capital by 50 percent. (Supplied)
  • The Saudi Cabinet approved the establishment of Sanabil Investments in 2008

RIYADH: The Saudi Arabian Investment Company (Sanabil Investments) on Wednesday announced that its parent company, the Public Investment Fund, had approved increasing its share capital by 50 percent to SR30 billion ($8 billion).

The Saudi Cabinet approved the establishment of Sanabil Investments in 2008. A closed joint-stock company, it originally had a paid-up capital of SR20 billion.

“Sanabil has implemented its new strategy in 2019 to focus on venture capital, growth strategies and small buyouts, from early to more mature stages of the business life cycles,” the company said in a press statement.

In February, Sanabil Investments entered into partnership with the Californian venture capital firm 500 Startups to launch an early stage accelerator program for startups in the Kingdom looking to expand across the Middle East and beyond.

The Sanabil 500 MENA Seed Accelerator Program consists of six programs run by 500 Startups over three years for a group of pre-seed and seed stage startups from across the MENA region. Up to 100 startups are expected to receive investment of up to $100,000.

From around 500 applications, 14 startups from the MENA region, including Saudi Arabia, the UAE, Egypt, Jordan, and Palestine, were chosen to present their companies to an audience of potential investors at a showcase on Wednesday.


Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 
Updated 15 sec ago

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

RIYADH: Qatar Airways has placed an order with Boeing for nearly 50 freighter planes amid its dispute with Airbus, Bloomberg reported citing the chief executive officer of the Gulf carrier. 

Akbar Al-Baker is concerned with paint and surface flaws on Airbus’s A350 cargo jets, as the aircraft suggested using copper foil as a lightning-conductor on the fuselage which could require it seeking new regulatory approvals. 

“When we even change the armrests of our seats it has to be recertified,” Bloomberg reported citing Al-Baker. 

The problems of Airbus’s A0350 cargo jets surface finish come as the aerospace company seeks to gather buyers for the freighter version. 

Earlier this week, Airbus spokesman said that the company is working on the paint issue with the European Union Aviation Safety Agency. 

Qatar Airlines is ranked as the biggest cargo carrier among passenger airlines. 


Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
Image: Shutterstock
Updated 5 min 22 sec ago

Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
  • Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors

 

Top oil exporter Saudi Arabia may raise crude prices for Asia in January following large gains in the Middle East spot market last month, but weak refining margins and an oil reserves release by consumers may cap gains, trade sources said.

The January official selling price (OSP) for flagship Arab Light crude could stay little changed or rise as much as $1.20 a barrel to track a similar gain in Dubai benchmark on strong spot crude demand last month, a Reuters survey of sources from seven Asian refiners showed.

A decision on Thursday by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, whether to continue increasing production by 400,000 barrels per day in January will also affect how Saudi Arabia sets the OSPs, traders said. read more

In addition to weighing the impact of the 50 million barrels of crude release from the United States which some analysts say could lead to surplus in the first quarter, OPEC+ will also be assessing how the Omicron coronavirus variant could affect fuel demand as nations re-impose border restrictions to curb the disease's spread. read more

Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors.

Two of the seven respondents expect Arab Light's January OSP to rise by more than $1 while forecasts from three others are in the 50-80 cents range. The remaining two expect the price to stay unchanged or rise by 10-20 cents.

Spot premiums for several Middle East and Russian grades hit near two-year highs last month on tight supply and robust winter demand, but the SPR release dented sentiment. read more

There's far too much supply with the SPR release, and refining margins have seen a huge drop, said one respondent, referring to the slide in Singapore complex margins from about $8 to $2

“COVID uncertainty has also set in,” he added.

Another trader said supplies from other regions have improved and Saudi crude prices will have to stay competitive. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.

 


Indian CARS24 raises $20m from the Commercial Bank of Dubai

Indian CARS24 raises $20m from the Commercial Bank of Dubai
Image: Shutterstock
Updated 32 min 38 sec ago

Indian CARS24 raises $20m from the Commercial Bank of Dubai

Indian CARS24 raises $20m from the Commercial Bank of Dubai
  • The funding came following CARS24 's $450 million funding round last September

RIYADH: India-based automotive e-commerce platform CARS24 raised 75 million dirham ($20 million) in local debt funding from the Commercial Bank of Dubai.

The debt funding fuels the company’s operational expansion in the UAE and provides it with significant funding flexibility, Wamda reported. 

The funding came following CARS24 's $450 million funding round last September, and its announcement of further investing $23 million in the UAE and other GCC countries to expand its presence.

“Since last year, there has been a huge increase in the number of online2offline businesses, partially due to the recent global pandemic.  We see a clear need to back these businesses and provide them with the funds they require to scale up and expand,” 

 CBD chief Bernd van Linder said. 

Founded in 2015, CARS24 launched its operations in the UAE market in May 2021 with a presence in Australia, Saudi Arabia, Thailand, allowing its customers to buy and sell pre-owned vehicles online.


Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022
Updated 35 min 13 sec ago

Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022

RIYADH: Industry leaders from around the world will attend the Future Minerals Summit, which will be held next year from Jan. 11 to 13 in Riyadh, the Saudi Press Agency reported.

Prominent organizations include ACWA Power, Lucid Motor, Barrick Gold Corp., Ivanhoe Mines, the World Bank, the World Gold Council, and the International Council on Mining and Metals. 

The event aims to showcase investment opportunities in the Kingdom’s mining sector.

More than 50 international speakers will attend the summit. Ministers from over 25 Asian and African countries will also hold a meeting, the Saudi Industry Ministry has confirmed.

Speakers will highlight the existing opportunities in the fast-developing mining sector in Saudi Arabia and the rest of the Middle East, Central Asia and Africa, said Khalid Al-Mudaifer, vice minister for mining affairs at the Saudi Ministry of Industry and Mineral Resources.


UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO
Updated 39 min 33 sec ago

UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO

RIYADH: Dubai’s main supplier of water and electricity, DEWA, has selected Citigroup, HSBC Holdings, Emirates NBD Bank to lead its initial public offering, Bloomberg reported.

The state-owned company is expected to become the biggest listing in the emirate, and is planning to seek a valuation of around $20 billion to $25 billion.

DEWA has also picked other banks for minor roles.

While Dubai requires companies to sell at least 25 percent of their shares in IPO, the state-owned utility may opt for a smaller amount at first.

The company caters to all Dubai residents and operated 12.3 gigawatts of power capacity last year.