AS IT HAPPENED: Future Investment Initiative 2021, Day Three

AS IT HAPPENED: Future Investment Initiative 2021, Day Three
Above, venue of the the Future Investment Initiative Forum in Riyadh. (Courtesy www.fii-institute.org)
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Updated 29 October 2021

AS IT HAPPENED: Future Investment Initiative 2021, Day Three

AS IT HAPPENED: Future Investment Initiative 2021, Day Three

DUBAI: The Future Investment Initiative holds it final day in Riyadh with discussions ranging from venture capitalism, digital finance, fashion to investments in medical innovations.

The opening plenary will talk about how young companies could thrive with the torrent of venture investment into private markets from non-traditional sources, including hedge funds, sovereign wealth funds and family offices.

Watch the livestream of FII 2021’s third day:

(All times in GMT)

14.13 — Universities are 'late to act' on climate change, the president of the King Abdullah University of Science and Technology said as he set out actions his establishment is taking.

11.52 — “The future will be defined by a tech race between the companies that adopt and embrace EV technology and that’s why I would believe Tesla’s value today of over $1 trillion is based on its technological prowess,” said Lucid Motors CEO Peter Rawlinson as he gave an update on the Saudi-backed firm. 

11.31 — Electric cars have been under discussion at the Forum, and Maha Achour of Metawave Corp believes self-driving vehicles could be commonplace within a decade

10.39 — Never mind oil, digital healthcare is where investors can get big bangs for their bucks, says Peter Ohnemus, president and CEO of Zurich-based dacadoo. He says there are likely to be returns of up to 35 percent in every year of the next decade.

09.32 —Fawaz Farooqui, MD of Cruise Saudi, has ambitious plans for the sector, and believes a million tourists will come to Saudi Arabia on cruise ships within seven years. 

08.46 — Whenver there is a discussion about artificial intelligence, there's always an undercurrent of 'will the robots overthrow the human race'. Bruno Maisonnier, founder and CEO of AI firm AnotherBrain, said humans have always feared technological advancements, going all the way back to the discovery of fire. 

08.12 — More detail on the comments from Saudi Aramco’s Ahmad Al-Khowaiter on what the company is doing on hydrogen capture. He believes the technology is there to expand the sector, but the issue is how to transport the energy source.

07:24 – Sanford R. Climan, president of Entertainment Media Ventures, Inc.; Ignace Lahoud of Majid Al-Futtaim Holding, and Robert Simonds, CEO and co-chairman of Eros STX Global Corporation meanwhile are on a panel discussion on the future of entertainment in the region, highlighting the growing sophistication of local content and where it sits in international show business.

07:16 – Saudi Aramco’s Al-Khowaiter says “blue hydrogen is ready today to scale.”

07:13 – On carbon capture, Saudi Aramco’s Ahmad Al-Khowaiter says “the question of technology feasibility is not there, the technology is at scale today.”

07:08 – The most optimal production of hydrogen is the combination of blue and green – it’s never going to be one or the other, Aramco’s Ahmad Al-Khowaiter says.

07:04 – Ahmad Al-Khowaiter: “We are looking at $1.5 to $2 a kilogram for low carbon hydrogen, but the biggest challenge is transport, it will take some time to be cost competitive.”

06:45 – A parallel session, which includes Saudi Aramco’s chief technology officer Ahmad Al-Khowaiter, is also being held to explore investing in hydrogen and scaling technology.

06:10 – The scheduled speakers for the opening plenary, John R. Selby, managing director of Thiel Capital; Fadi Ali Ghandour, executive chairman of WAMDA; Ronaldo Mouchawarm, vice president of Amazon MENA; Akash Shah, chief growth officer at The Bank of New York Mellon; Dr. Hani Enaya, the head of private investments at Sanabil Investments, will try to answer how changes are playing out across different markets around the world, and how should founders navigate these new opportunities while continuing to grow and scale.


Chinese property giant Evergrande defaults for first time: Fitch

Chinese property giant Evergrande defaults for first time: Fitch
Updated 5 sec ago

Chinese property giant Evergrande defaults for first time: Fitch

Chinese property giant Evergrande defaults for first time: Fitch

Chinese real estate behemoth Evergrande was declared in default on Thursday by Fitch Ratings agency, citing the debt-laden property developer’s failure to pay more than $1.2 billion in bond repayments.


“The non-payment is consistent with an ‘RD’ (restricted default) rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation,” Fitch said in a statement.
 


Brazil’s digital Nubank raises $2.6bn in US IPO to become Latin America’s most valuable bank

Brazil’s digital Nubank raises $2.6bn in US IPO to become Latin America’s most valuable bank
Updated 16 min 5 sec ago

Brazil’s digital Nubank raises $2.6bn in US IPO to become Latin America’s most valuable bank

Brazil’s digital Nubank raises $2.6bn in US IPO to become Latin America’s most valuable bank

RIYADH: Brazilian digital bank Nu Holding, also known as Nubank, has raised $2.6 billion in a US initial public offering, making it the most valuable financial institution in Latin America. 

The company, whose backers include Warren Buffett’s Berkshire Hathaway, sold 289 million shares on Wednesday Dec. 8 for $9 each after offering them for $8 to $9, a statement revealed.

This IPO price gives Nubank a market value of $41 billion.

Nubank had lowered the proposed range last week after earlier seeking to raise $3.18 billion.

Berkshire bought 10 percent of the shares in the offering, a person familiar with the matter told Bloomberg, asking not to be identified because it wasn’t public. 

The shares are expected to begin trading on Thursday Dec. 9 on the New York Stock Exchange under the symbol NU, Bloomberg said. Its Brazilian depositary receipts, known as BDRs, will trade on the Sao Paulo stock exchange under the ticker NUBR33.

The offering is being led by Morgan Stanley, Goldman Sachs Group and Citigroup.


Stocks turn green in morning trading on Saudi Tadawul: Market Open

Stocks turn green in morning trading on Saudi Tadawul: Market Open
Updated 09 December 2021

Stocks turn green in morning trading on Saudi Tadawul: Market Open

Stocks turn green in morning trading on Saudi Tadawul: Market Open

10.13 Saudi time: RIYADH: With most of the stocks on the index starting the day in the green zone, Tadawul’s TASI rose 0.39 percent in early trading.

Sadr Logistics and Naseej International Trading Co. led the top gainers, with Sadr reaching another record high of SR124 ($33).

Naseej’s gains were attributed to its recent decision to raise SR150 worth of capital to limit the accumulated losses to 19.4 percent of capital.

Wafrah for Industry remained resilient as it surged 2.23 percent in morning trading.

Among the top fallers came Batic Investment and Logistics Co. and the Mediterranean and Gulf Insurance and Reinsurance Co., MEDGULF, down slightly by 2.4 percent and 1.99 percent respectively.

Tadawul’s parallel market Nomu fell 0.26 percent to reach 23502.77 points.

 

09:09 Saudi time: Key market signals ahead of Thursday’s trading session: Premarket

RIYADH: The new coronavirus variant, omicron, has left markets, including the Saudi stock exchange, prone to volatility as investors assess the severity of the strain.

The previous month has been particularly rough, with Saudi’s main benchmark index TASI sliding down by 6.48 percent to hit 10991.8 points. TASI was down almost one percent in the latest trading session.

Meanwhile, the parallel market Nomu fell 5 percent in a month. The index’s last close amounted to 23564.11 points, up 0.49 percent intraday.

Registering the highest volume and value traded, Saudi Tadawul Holding Group came first in the top gainers on its listing day.

The share price of the group last closed at SR118 ($31.5), having traded between an intraday low of SR115.4 and an intraday high of SR127.6 on debut.

Sadr Logistics extended its gains, rising an additional ten percent to close at a record high of SR114.6 as of the previous session.

Bank Saudi Fransi led the lowest-performing stocks, down 4.5 percent.

Companies in the Kingdom’s energy sector weighed the index down with stocks of Petro Rabigh and Saudi Arabia Refineries Co. falling 2.5 percent and 3.92 percent respectively.

Petro Rabigh’s stock price declined for a second consecutive day, after a 7.8 percent fall in the prior session following the company’s capital decrease and rights issue recommendation.

Naseej International Trading Co. announced that it will raise SR150 million worth of capital to limit the accumulated losses to 19.4 percent of capital.

This came as its shares hit a 52-week low in terms of price on Dec.2.

Bank Aljazira issued a SR2 billion tier 2 sukuk with a ten-year duration and a par value of SR1 million, according to a bourse filing.

Saudi Basic Industries Corporation announced its decision to leverage organic and inorganic growth whilst strengthening capital expenditure to align with Vision 2030, according to SABIC chief Youssef Al-Benyan.

Jarir Marketing Co. launched a showroom worth SR28 million in Najran. The company’s stock has remained almost flat for a month, last closing at SR194.

Saudi Real Estate Co., or Al Akaria, sold land plots worth SR127.34 million in Riyadh.

The company expects the investment to boost its profit to SR121.9 million, according to a bourse filing.

Al Moammar Information Systems Co. won a three-year contract worth SR54.89 million to offer computer maintenance solutions for the Royal Commission for Jubail and Yanbu.

The expected date of contract signature is Feb.8, 2022.

Dec. 9 is the last day to subscribe to Maadaniyah’s new shares.

The subscription period to Saudi Economic and Development Securities Co.’s capital REIT fund will start on Dec.12 and end on Dec.16.

Batic Investment and Logistics Co.’s SR300 million rights issue trading will start on Dec.13 and end on Dec.23.

The tradable rights have been deposited into the Securities Depository Center as of Dec.9, the center announced in a bourse filing.


Saudi industrial production hits highest level since April 2020

Saudi industrial production hits highest level since April 2020
Updated 09 December 2021

Saudi industrial production hits highest level since April 2020

Saudi industrial production hits highest level since April 2020
  • Jumps in the output of the mining and quarrying sector were mainly responsible for the expansion as it went up by 9.1 percent

Saudi industrial production expanded by an annual rate of 7.7 percent in October  to reach its highest level since April 2020, data published by Gastat showed. 

Jumps in the output of the mining and quarrying sector were mainly responsible for the expansion as it went up by 9.1 percent. This is the largest level of production for the sector since November 2019.

Oil production rose from 8.9 million barrels per day in October last year to 9.7 million bpd in October 2021.

The mining and quarrying sector accounts for the highest share in the industrial production index, making up 74.5 percent of it.

In addition, non-oil manufacturing activities grew by a yearly rate of 4 percent in October to stand at its highest level since March 2020.

Gastat said that the sector rebounded from the adverse effects of the pandemic, which hampered international trade and the Kingdom’s exports.

The report added 90 factories started production in October, citing data from the Ministry of Industry and Mineral Resources. The sector has a weight of 22.6 percent in the index.

Meanwhile, production in electricity and gas expanded by 4.7 percent compared to a year earlier, yet it had minimal effect on the index due to its small 2.9 percent weight.

Looking at monthly data, it was revealed that industrial production rose by 1.7 percent in October, on higher mining and quarrying output. The latter widened by 1.3 percent as oil production experienced an uptick, moving from 9.6 million bpd in September to 9.7 million bpd in the following month.

Manufacturing activities also grew by a monthly 4 percent while electricity and gas supply narrowed by 4.3 percent.

 


ADNOC Drilling bags $3.8 billion contract 

ADNOC Drilling bags $3.8 billion contract 
Updated 09 December 2021

ADNOC Drilling bags $3.8 billion contract 

ADNOC Drilling bags $3.8 billion contract 
  • The contract outlines the company’s work to drive efficiency in crews, rig move time, maintenance schedules, as well as other well services

RIYADH: The Abu Dhabi-listed ADNOC Drilling Co. has signed a five-year services contract with ADNOC Onshore for a total value of $3.8 billion. 

The contract outlines the company’s work to drive efficiency in crews, rig move time, maintenance schedules, as well as other well services.

“I am delighted, that working together, we will continue to drive value for ADNOC and the UAE, delivering on the 2030 strategic production capacity and gas self-sufficiency targets,” Abdulrahman Abdullah Al-Seiari, CEO of ADNOC Drilling, said. 

The contract comes as the Abu Dhabi firm pursues geographical expansion and further development in its offerings.