Saudi Arabia and Egypt sign $1.8bn contract for electrical connection

Saudi Arabia and Egypt sign $1.8bn contract for electrical connection
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Updated 06 October 2021

Saudi Arabia and Egypt sign $1.8bn contract for electrical connection

Saudi Arabia and Egypt sign $1.8bn contract for electrical connection
  • Work on the electricity venture of the two countries is expected to begin in 2022

RIYADH: Saudi Arabia and Egypt on Monday signed contracts for a $1.8 billion electricity interconnection project.

The project, to begin in 2022, will ensure an exchange of 3,000 MW of electricity between the two countries.

“Saudi Arabia and Egypt share the same goals, and we work together as a team to implement them,” said Saudi Energy Minister Prince Abdulaziz bin Salman, who oversaw the signing ceremony.

“The electrical interconnection will enable us to move to greater horizons, which is global connectivity with other countries in Europe and elsewhere,” he said.

The Saudi minister said the project is consistent with the development programs envisaged in the Kingdom’s Vision 2030 program.

Egyptian Electricity Minister Mohamed Shaker said: “The project is a corridor for the transit of electricity to reach the continent of Asia.”

The Egyptian side will bear 40-45 percent of the project value, and part of the funding will come through Arab institutions.

In a statement, the Saudi Electricity Co. said that the project included contracts with three alliances of international and local firms.

The project will have a peak load of 3,000 MW with a 500 kV high-voltage direct current technology, consisting of three high-voltage power stations in East Madinah and Tabuk in Saudi Arabia, and one in Badr, East Cairo, Egypt.

The utility provider said that the three stations will be connected by overhead transmission lines, stretching nearly 1,350 km and 22 km sea cables in the Gulf of Aqaba.

Egypt and Saudi Arabia signed a cooperation agreement in 2012 to establish the electrical interconnection project. 

The project will be the main axis in the Arab electrical linkage, which aims to create an infrastructure for electricity trade between Arab countries.


Ericsson profits soar despite China trouble

Ericsson profits soar despite China trouble
Image: Shutterstock
Updated 7 sec ago

Ericsson profits soar despite China trouble

Ericsson profits soar despite China trouble

Swedish telecoms giant Ericsson said Tuesday its net profit soared in 2021, with a better-than-expected performance in the fourth quarter despite losing ground in the key Chinese market.


The world’s number two telecoms equipment maker is competing with China’s Huawei in the global rollout of ultra-fast 5G mobile phone networks.


But Ericsson’s sales in China have taken a major hit as it has faced reprisals there since Sweden banned Huawei and another Chinese firm, ZTE, from the European country’s 5G network in 2020 for security reasons.


Despite the challenges, the Swedish company expects to reach its long-term profitability target sooner than previously estimated.


“Our strategy to invest in technology leadership and grow market share in our core business underpinned a robust financial performance in 2021 and ensured a good Q4 for Ericsson overall,” chief executive Borje Ekholm said in a statement.


Net profit soared by 30 percent last year to 23 billion kronor ($2.5 billion, 2.2 billion euros).


Sales were stable at 232.3 billion kronor in 2021.


Its profit surged by 41 percent in the fourth quarter to 10.1 billion kronor, while sales rose by three percent at 71.3 billion kronor.


Analysts surveyed by Bloomberg had expected a quarterly profit retreating to 7.1 billion kronor.


In mainland China, sales plunged by 7.7 billion kronor last year, but Ericsson made up those losses by gaining ground in other markets.
 


All you need to know before trading on Tadawul today

All you need to know before trading on Tadawul today
Updated 25 January 2022

All you need to know before trading on Tadawul today

All you need to know before trading on Tadawul today
  • The main index TASI closed 0.6 percent lower at 12,068 points, partially shrugging off gains from the past two weeks

RIYADH: Saudi Arabia’s stock exchange fell for a second consecutive day on Monday as cautious trading took over, and investors braced for more earnings announcements.

The main index TASI closed 0.6 percent lower at 12,068 points, partially shrugging off gains from the past two weeks. The parallel Nomu market slipped 0.5 percent to 25,573 points.

This was in line with other GCC stock exchanges, which were all down except for the Qatari bourse which saw a 0.3 percent rise in its QSI index.

Dubai’s DFMGI led the fallers as it registered losses amounting to 2 percent.

Bourses of Abu Dhabi, Bahrain, Oman, and Kuwait all edged down from 0.1 to 0.5 percent.

The Egyptian EGX30 index retreated 0.3 percent.

In energy trading, Brent crude oil reached $86.9 per barrel, and US benchmark WTI crude oil was at $83.8 per barrel as of 8:46 a.m. Saudi time.

Stock news

  • Riyadh-based Saudi Public Transport Co., also known as SAPTCO, sealed a SR57.5 million ($15 million) public transport deal with the authority of Saudi Arabia’s Madinah Region
  • Car rental firm Theeb Rent a Car has closed a SR27 million leasing agreement for four years with the Ministry of Human Resources and Social Development
  • Saudi petrochemical firm SABIC Agri-Nutrients has completed a SR1.2 billion partial acquisition in Dubai-based ETG Inputs Holdco LTD
  • Alandalus Property Co. has completed 70 percent of Al Jawharah Al Kubra project in Jeddah
  • Al Rajhi Capital, manager of Al Rajhi REIT Fund, has completed the extension of the limit on Shariah-compliant facilities granted to the fund by an amount of SR600 million
  • BinDawood Holding Co. is working with its legal advisor to compensate for the damages suffered because of the lawsuit filed against subsidiary Danube Co. for Foodstuffs and Commodities

Calendar

Jan. 25, 2022

End of East Pipes Integrated Co.’s initial public offering subscription

Saudia Dairy and Foodstuff Co., SADAFCO, to pay cash dividends at SR3 per share for the first half of its fiscal year

Jan. 27, 2022

End of Gas Arabian Services’ IPO book-building

End of Scientific and Medical Equipment House’s IPO book-building

Jan. 28, 2022

End of Elm Co.’s IPO book-building 

 


Chemicals sales soar as Saudi non-oil exports grow by 26%

Chemicals sales soar as Saudi non-oil exports grow by 26%
Updated 25 January 2022

Chemicals sales soar as Saudi non-oil exports grow by 26%

Chemicals sales soar as Saudi non-oil exports grow by 26%

RIYADH: Outgoing chemical shipments picked up pace significantly prompting the Saudi non-oil exports growth to hit an annual rate of 26.1 percent in November, according to data released by Gastat.

Exports of chemicals or allied industries expanded went up by 70.6 percent from a year ago and made up 34 percent of non-oil merchandise exports.

Sales of plastics and rubber also increased, rising by a yearly rate of 38.4 percent.

The ratio of non-oil exports to imports jumped to 52.6 percent in November, up from 42.3 percent in the previous month, as imports increased by only 1.4 percent compared to the higher growth of non-oil sales, Gastat pointed out in its latest report.

Moreover, oil exports surged by 112.8 percent and its share of total exports increased to 75.8 percent in November, up from 65 percent in the same month of the previous year. Overall merchandise exports leaped 82.5 percent from a year earlier.

China was the Kingdom’s main trading partner, accounting for 17.2 percent of total exports and 20.6 percent of imports. India and Japan were other major recipients of Saudi goods and services, buying 11.6 percent and 9.6 percent, respectively, of exports. South Korea, the US, the UAE and Egypt were also among the top 10 exporting destinations.

In addition, the US and the UAE provided Saudi Arabia with 11.4 percent and 6 percent, respectively, of its imports.

Looking at the major customs ports for imports, Gastat said that 25.9 percent of total purchases came through the Jeddah Islamic Sea Port in November. It was followed by King Abdulaziz Port, King Khalid International Airport and Bat'ha.


Alandalus Property completes 70% of ‘The Village’ project in Jeddah

Alandalus Property completes 70% of ‘The Village’ project in Jeddah
Updated 25 January 2022

Alandalus Property completes 70% of ‘The Village’ project in Jeddah

Alandalus Property completes 70% of ‘The Village’ project in Jeddah

RIYADH: Alandalus Property Co. completed 70 percent of the Al Jawhara Al Kubra project in Jeddah, according to a bourse statement.

The company completed 100 percent of the structure and concrete works, 80 percent of facades, 70 percent of electromechanical works, and 65 percent of interior finishings, it said in a statement to the Saudi stock exchange.

The project is expected to complete in the second quarter of 2022, as per the latest report received from the developer partner. It will be operational in the third quarter of 2022, Alandalus said.

There is a change in the cost by SR22.34 million ($5.95 million), making the total cost including the land value SR895.34 million, the company said.

This is mainly due to an increase in the built-up area, the implementation of additional works in the entertainment area, and some other works on the site, according to Alandalus.

The project is named “The Village,” and the trade name for the owner company Al Jawhara Al Kubra Co. will not be changed.


Madinah public transport to be improved after $15m deal

Madinah public transport to be improved after $15m deal
Updated 25 January 2022

Madinah public transport to be improved after $15m deal

Madinah public transport to be improved after $15m deal
  • The Riyadh-based transport company, which operates local and international routes, signed the deal with the Madinah Region Development Authority

The Saudi Public Transport Co. has signed a public transport contract in Madinah with the city’s development authority, with a total value of SR57.5 million ($15.3 million)

The Riyadh-based transport company, which operates local and international routes, signed the deal with the Madinah Region Development Authority.

The contract is valid for five years, the company said in a bourse filing, and is expected to have a positive impact on the company’s revenues from the first half of 2022.