Saudis spent SR1bn on delivery apps in first three months of 2021

Saudis spent SR1bn on delivery apps in first three months of 2021
Online ordering has surged in Saudi Arabia and around the world in the wake of the pandemic. (Reuters)
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Updated 15 July 2021

Saudis spent SR1bn on delivery apps in first three months of 2021

Saudis spent SR1bn on delivery apps in first three months of 2021
  • Overall requests on these apps increased by about a third, reaching nearly 9.2 million

RIYADH: The value of online delivery orders in Saudi Arabia surged 45 percent in the first quarter of 2021 compared to a year earlier to top SR1 billion ($266.5 million), official data show.
Overall requests on these apps increased by about a third, reaching nearly 9.2 million, while e-payments increased by some 128 percent to 8.1 million processes, the Communications and Information Technology Commission (CITC) said in a statement.
From takeaway food to clothing purchases, the global delivery industry has boomed during the pandemic as the closure of bricks and mortar retailers and restaurants transformed global shopping habits.
Saudi Arabia’s online food ordering and delivery market was valued at $511.21 million last year and is forecast to grow by more than 10 percent each year through 2026.
“Even after the pandemic challenge in 2020, the market showed consistent growth. Digitization, and emergence of advanced online services is expected to drive the Saudi Arabia online food ordering and delivery market in the next five years,” according to a study released by ReportLinker.


Saudi Arabia's blockchain market to grow 41 percent by 2025

Saudi Arabia's blockchain market to grow 41 percent by 2025
Updated 12 sec ago

Saudi Arabia's blockchain market to grow 41 percent by 2025

Saudi Arabia's blockchain market to grow 41 percent by 2025

Saudi Arabia's blockchain market is expected to grow by 41 percent between 2021 and 2025, according to estimates of the Kingdom's communications sector regulator.

The blockchain market surge is part of wider expected growth in the IT and emerging technology sector that will hit SR100 billion by 2025, with an annual compound growth rate of 10 percent, Saudi Press Agency reported, citing Raed Alfayez, vice-governor of emerging technologies at the Commission of Information Technology and Communication.

The market today has a size of SR65 billion, he added.

 


Surge in MENA’s SPAC activity counters IPOs drop, says Ernst & Young

Surge in MENA’s SPAC activity counters IPOs drop, says Ernst & Young
Updated 7 min 54 sec ago

Surge in MENA’s SPAC activity counters IPOs drop, says Ernst & Young

Surge in MENA’s SPAC activity counters IPOs drop, says Ernst & Young

Middle Eastern businesses are increasingly making use of the alternative route to public listing known as SPACs, a report by Ernst & Young has claimed.

The analysis shows a rise in activity involving special purpose acquisition companies (SPACs) and MENA-based firms.

SPACs are publicly listed companies created with the sole purpose of purchasing privately owned businesses, which therefore leads to its target to be listed. 

As well as private companies, sovereign wealth funds in the Middle East — including Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi’s Mubadala — have also made use of SPACs, with PIF investing USD$75 million in NYSE-listed Compute Health in February.

Gregory Hughes, Ernst & Young MENA IPO and transaction diligence leader, said: “IPO activity during H1 2021 was below expectations, nevertheless the year did bring some remarkable deals with MENA companies showing an ever-increasing interest in SPAC transactions as a means to go public. We expect this trend to continue as companies seek to increase their international presence and gain access to a wider pool of investors.”

Among the MENA companies to go public this year after merging with SPACs were Abu Dhabi-based music streaming platform Anghami, and Dubai-headquartered transit firm Swvl Inc.

While SPAC activity was surging, the proceeds from initial public offerings (IPOs) across the region saw a year-on-year drop of 48 percent in the first half of 2021. 

Four IPOs raised USD$425.8 million, even though the number of listings stayed the same as 2020. 

Matthew Benson, EY MENA Strategy and Transactions Leader said that despite the drop, his company’s outlook on the region’s IPO activity “remains positive”.


European shares slide 1% to near two-month low on global growth worries

European shares slide 1% to near two-month low on global growth worries
Image: Shutterstock
Updated 31 min 53 sec ago

European shares slide 1% to near two-month low on global growth worries

European shares slide 1% to near two-month low on global growth worries
  • European shares sank 1 percent to a near two-month low on Monday
  • The benchmark European stocks index has now fallen for three straight weeks on worries about slowing global growth

European shares sank 1 percent to a near two-month low on Monday, tracking Asian equities lower, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programs at various meetings this week.


The pan-European STOXX 600 index was down 1.4 percent in early trading, with energy and mining stocks leading declines on a slide in commodities prices.


The benchmark European stocks index has now fallen for three straight weeks on worries about slowing global growth and the spillover from tighter regulation of Chinese firms.


The U.S. Federal Reserve's policy meeting is in focus on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering. On Thursday, the Bank of England holds its own policy meeting.


German shares slumped 1.6 percent as data showed a bigger-than-expected jump in producer prices last month.


In its biggest ever overhaul, the benchmark German index began trading on Monday with an increase in the number of constituents to 40 from 30.
 


Saudi remains China's top oil supplier as arrivals surge

Saudi remains China's top oil supplier as arrivals surge
Image: Shutterstock
Updated 39 min 43 sec ago

Saudi remains China's top oil supplier as arrivals surge

Saudi remains China's top oil supplier as arrivals surge
  • Saudi oil arrivals surged 53 percent from a year earlier to 8.06 million tonnes
  • Shipments from the United Arab Emirates fell nearly 40 percent year-on-year

Saudi Arabia, the world's biggest oil exporter, kept its ranking as China's top crude supplier for a ninth straight month in August as major producers relaxed production cuts.

Saudi oil arrivals surged 53 percent from a year earlier to 8.06 million tonnes, or 1.96 million barrels per day (bpd), data from the General Administration of Customs showed on Monday.

That compares with 1.58 million bpd in July and 1.24 million bpd in August last year.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided in July to ease production cuts and increase supply by a further 2 million bpd, adding 0.4 million bpd a month from August until December. In July, OPEC output increased by 640,000 bpd to 26.66 million bpd. read more

China's crude oil imports from Russia stood at 6.53 million tonnes in August, or 1.59 million bpd, flat versus 1.56 million bpd in July.

The big gap behind Saudi volumes was due to Beijing's decision to slash crude oil import quotas to its independent refiners, who favour Russia's ESPO blend.

Crude oil arrivals from Malaysia more than doubled from year-ago levels to 1.75 million tonnes, with traders saying refiners might have rebranded Venezuelan heavy oil previously passed on as bitumen blend into Malaysian crude after Beijing imposed hefty import taxes on blending fuels. read more

Meanwhile, shipments from the United Arab Emirates fell nearly 40 percent year-on-year, a possible sign demand for Iranian oil passed on as grades including UAE supplies remained lacklustre after peak arrivals early this year.

Official data has consistently recorded zero imports from Iran or Venezuela since the start of this year. 


Growth in ESG, Islamic investments support stronger asset inflows in the GCC: Moody’s

Growth in ESG, Islamic investments support stronger asset inflows in the GCC: Moody’s
Updated 20 September 2021

Growth in ESG, Islamic investments support stronger asset inflows in the GCC: Moody’s

Growth in ESG, Islamic investments support stronger asset inflows in the GCC: Moody’s
  • There will be a significant increase in demand for ESG-compliant investment products, around 38 percent of respondents said

DUBAI: The growing demand in Islamic and environmental, social, and governance (ESG)-compliant investments is expected to increase asset inflows over the next 12 months.

This is according to asset managers in Gulf countries, based on Moody’s 2021 survey of chief investment officers (CIOs) from eight leading fund firms.

“Half of CIO respondents expect double-digit growth in net inflows, and another 33% foresee a high single-digit increase,” Vanessa Robert, vice-president of senior credit officer at Moody’s Investors Service said.

“Improved investment results and stronger fees, already comparatively high in the GCC region, will further support revenue growth,” she added.

There will be a significant increase in demand for ESG-compliant investment products, around 38 percent of respondents said, while half of them expect sales of Islamic products will grow faster than sales of conventional investments in the next year.

The report also found around 50 percent of respondents said they were open to merger and acquisition activities within the next two years