Sakani Housing program completes Saudi Eastern region projects

Sakani Housing program completes Saudi Eastern region projects
Some 144,000 houses will be distributed through 101 Sakani projects throughout the Kingdom. (SPA)
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Updated 05 August 2021

Sakani Housing program completes Saudi Eastern region projects

Sakani Housing program completes Saudi Eastern region projects

RIYADH: The Sakani program has wrapped up four projects in the Eastern Region, and three other initiatives are over 90 percent completed.

Sakani is a real estate initiative launched in 2017 by the Ministry of Housing and the Real Estate Development Fund to support Saudi citizens to own their first home.

Completed projects include Nasaj Town, with 674 housing units, the Saraya AlGharoub initiative, which provides 116 homes, the Mada Oasis project, which will serve 282 families, and the Al-Bayraq Villas settlements in Al-Mubarraz, which offers 178 units.

The Eastern Region’s housing projects with over 90 percent completion include Al-Qatif Al-Badrani, with 196 units, Al-Barraq Villas in Dammam, with 959 housing units, and the “MD” project, which will offer 728 town houses.

Some 34 housing projects are being implemented in the Eastern Region to provide more than 22,000 diverse homes.

Some 144,000 houses will be distributed through 101 Sakani projects throughout the Kingdom.

The scheme runs in partnership with the private sector and channels financing options to people who can also construct their own homes.


‘solutions by stc’ raises $966.4m in IPO

‘solutions by stc’ raises $966.4m in IPO
Updated 22 September 2021

‘solutions by stc’ raises $966.4m in IPO

‘solutions by stc’ raises $966.4m in IPO
  • The financial impact of the IPO will reflect on the company’s Q3 2021 financials

DUBAI: Solutions by STC has completed the institutional and retail subscription for its initial public offering, where it raised SR3.624 billion ($966.4 million). 

The Saudi Telecoms Company unit is offering 20 percent of its share capital, or 24 million shares out of 120 million. 

Final allocations of offer shares, as well as the refund of excess subscription amounts will be based on the prospectus, the company said in a Tadawul filing. 

The financial impact of the IPO will reflect on the company’s Q3 2021 financials. 


ADNOC boosts size of drilling unit IPO to $1.1bn

ADNOC boosts size of drilling unit IPO to $1.1bn
Updated 22 September 2021

ADNOC boosts size of drilling unit IPO to $1.1bn

ADNOC boosts size of drilling unit IPO to $1.1bn

DUBAI: State oil giant Abu Dhabi National Oil Co. (ADNOC) has increased to 11 percent of share capital the size of the initial public offering (IPO) of its drilling unit, ADNOC Drilling, because of oversubscription, the firm said on Wednesday.

ADNOC had previously targeted a minimum stake of 7.5 percent in the IPO of ADNOC Drilling, at 2.3 dirhams ($0.6262) per share.

In a statement it said the price had not changed but the number of ordinary shares offered was raised to 1.76 billion from 1.2 billion, which would correspond to a $1.1 billion transaction, according to Reuters calculations.

“The new offering size was determined by ADNOC, as the selling shareholder, based on significant investor demand and the considerable oversubscription across all tranches,” it said.

“The enlarged offering will enable a broader investor base to obtain exposure to ADNOC Drilling’s highly attractive value proposition.”

ADNOC will continue to own an 84 percent majority stake in the unit, while Baker Hughes will retain its 5 percent shareholding.

The IPO subcription period will end on Thursday for United Arab Emirates retail investors and on Sunday for domestic and international institutional investors.

Listing is expected on or around Oct. 3, ADNOC said.


Rise in gas prices add to near-term inflation: Capital Economics

Rise in gas prices add to near-term inflation: Capital Economics
Updated 22 September 2021

Rise in gas prices add to near-term inflation: Capital Economics

Rise in gas prices add to near-term inflation: Capital Economics
  • European countries likely to be most affected

RIYADH: A surge in natural gas prices is expected to jack up inflation worldwide with Europe likely to be most affected, said a Capital Economics report.

The report said unreasonable and extreme weather conditions led to longer periods of cooling and heating and China’s rebound from the pandemic also boosted gas demand. On the other hand, extreme weather and the pandemic-related price collapse in 2020 hit US production and exports. Outages at several liquefied natural gas plants and Russia limiting exports via Ukraine for political reasons caused an imbalance in the supply and demand, which raised gas prices globally.

The most pronounced impact has been in the euro zone, where the rise in gas and electricity inflation has added 0.5ppts to headline CPI inflation since the start of the year.

“Since the start of Q2, the European (TTF) gas price has surged by 290 percent, Asia LNG spot prices are up 260 percent and US natural gas (Henry Hub) has nearly doubled,” the report said.

In the US, higher gas and electricity inflation has added just 0.2ppts to CPI inflation this year given the less pronounced rise in US gas prices and the lower weight of gas and electricity in the CPI basket. Japan has experienced a boost of 0.4ppts, as its gas imports are tied to long-term contracts indexed to oil prices. It’s a similar story in many emerging markets where gas prices tend to be tied to long-term contracts and/or indexed.

“We think natural gas prices will remain elevated for some time yet. Globally, but particularly in Europe, stocks are at historic lows and will take some time to rebuild even if we are right and supply picks up,” wrote  Jennifer McKeown, head of Global Economics Service.

The analyst, however, predicted that by Q2 2022 prices will be under sustained downward pressure.

Current prices will incentivize supply, particularly in the US where shale operations can ramp up relatively quickly. The situation will probably also hasten the approval of the Nord Stream II pipeline from Russia to Germany. Prevailing prices are likely to curb demand, the report said.

The passthrough is likely to be far smaller since governments are already acting to limit the effect on consumers.

According to McKeown, gas and electricity inflation is likely to surge by 16 percent to add an average of 0.3ppts to headline inflation in major advanced economies in the rest of this year, on top of the 0.3ppt boost which they have experienced already. “This should reverse next year, particularly given our expectation that gas prices will recede. But there are risks in both directions, and gas prices are notably volatile,” she said.

The report said there will be a drag on activity in most economies as higher utilities prices eat into the income available for discretionary spending. There could also be adverse consequences for the energy industry, particularly in countries where prices are regulated – most notably the UK, it added.


Almarai cuts emissions, increases use of solar power by 119%

Almarai cuts emissions, increases use of solar power by 119%
Updated 22 September 2021

Almarai cuts emissions, increases use of solar power by 119%

Almarai cuts emissions, increases use of solar power by 119%

JEDDAH: Saudi Arabia leading multinational dairy company Almarai has taken several steps to reduce emissions and increased the use of solar energy by 119 percent, according to its annual Sustainability Report 2020.

The Tadawul-listed company has reduced car fuel consumption in its sales, distribution and logistics department by 4 percent as compared to 2019. According to the report, clean energy accounted for 2.5 percent of the total power consumption, which is 4.4 percent within the sustainability strategy’s limits.

“Climate change can pose risks to agricultural production,” said Abdullah Al-Otaibi, head of corporate communication and public relations at Almarai. He said in order to fight climate change the company is taking measures to ensure sustainable growth.

Al-Otaibi said their energy strategy is based on solar power generation, increasing operational efficiency and energy monitoring efficiency, and improving the energy culture in pastures.


Saudi group wins Subway master franchise deal in UAE

Saudi group wins Subway master franchise deal in UAE
Updated 22 September 2021

Saudi group wins Subway master franchise deal in UAE

Saudi group wins Subway master franchise deal in UAE
  • In Europe, Middle East, and Africa, Subway plans to double its number of restaurants across the region in the coming years

DUBAI: Saudi Arabia’s Kamal Osman Jamjoom Group on Tuesday signed a master franchise agreement with Subway in the UAE as the restaurant brand seeks to expand its footprint in the region.

The deal marked the start of a new chapter for Subway in the UAE as it seeks to expand its footprint and remain competitive in the market.

“Subway is making bold and impressive changes to continue to grow its presence in markets around the world,” said Hisham Al-Amoudi, Group CEO of Kamal Osman Jamjoom Group.

“As Subway continues to expand internationally, we are focused on attracting well-established, large-scale operators in regions where they can leverage market expertise to help our brand thrive,” said CEO John Chidsey.

Established in 1987, Kamal Osman Jamjoom Group is a major franchise industry player in the Middle East with 675 stores across seven countries, making it one of the largest franchise networks in the region. They are a valued partner to some of the world’s most iconic brands, such as The Body Shop, LEGO, and Early Learning Center.

The group’s “deep knowledge of the Middle East and experience strengthening and expanding other global franchisee brands makes them the ideal partner in the UAE,” Mike Kehoe, EMEA president at Subway.

In Europe, Middle East, and Africa, Subway plans to double its number of restaurants across the region in the coming years and will continue to seek strong partners to support the brand on its journey.

The agreement will enable significant growth in the UAE in the coming years  including accelerated deployment of restaurant remodels — featuring a new, modern “Fresh Forward” design — as well as improved, consistent guest experiences, both on- and off-premise.