Papa John’s to open more than 100 new restaurants in Saudi Arabia over the next five years

Papa John’s to open more than 100 new restaurants in Saudi Arabia over the next five years
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Updated 01 December 2021

Papa John’s to open more than 100 new restaurants in Saudi Arabia over the next five years

Papa John’s to open more than 100 new restaurants in Saudi Arabia over the next five years
  • Saudi Arabia's food and beverage market has grown since the launch of Vision 2030

CAIRO: PJP Investment Group has announced its partnership with Papa John’s to open more than 100 new restaurants in Saudi Arabia over the next five years, according to a statement. 

PJP, which specializes in food and beverages and is wholly owned by Levant Capital, opened the first four new outlets in Riyadh on Tuesday, October 26 in Sulaimaniyah, Al-Nouzha, Al-Malqa and Qurtubah.

“Our plan is to open more than 100 restaurants in the next 10 years.” said Tapan Vaidya, CEO of PJP Investment Group.  

Saudi Arabia’s food and beverage market has grown since the launch of Vision 2030, making it the leading market for quick-service restaurants and giving them the opportunity to grow their global presence by opening new branches in the Kingdom. 

 ”It’s an amazing opportunity to develop the Papa John’s brand in Saudi Arabia and contribute to the Kingdom’s Vision 2030.” Vaidya also said.


French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
Updated 27 January 2022

French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
  • Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman

RIYADH: A French construction and design firm opened its regional headquarters in Riyadh on Tuesday, in a 50-50 partnership deal with Saudi holding company, Zuhair Al-Habib Group.

Known internationally for their eco-friendly partitions, Clestra Hauserman’s decision to open a regional office in the capital city comes one year after Crown Prince Mohammed bin Salman announced the Riyadh Strategy 2030 plan. 

“Saudi Arabia is our biggest market and as of this year I can say that 80 percent of our business comes from here,” said Farid Habbas, Middle East Director of Clestra Hauserman.

“It was a natural move for the firm that we were happy and ready for. Our firm will now have direct access to the local economy, which will help us gain financial and geographic opportunities,” he told Arab News.

Clestra Hauserman, which had been based in Dubai, joins more than 40 multinational companies that are moving to Riyadh.

The plan includes a policy stating that government and state-backed institutions will no longer sign any contracts with foreign entities from 2024 unless their regional headquarters are based in the Kingdom.

The policy, which paved way for a regional headquarters attraction program, aims to help make “Riyadh one of the ten largest city economies” in the world.

Founded in 1913, the French firm has had a regional presence for more than 40 years, specializing in the manufacture and installation of prefabricated demountable partitions. Its first project in Saudi Arabia was with Aramco in the 1970s and the firm extended its regional presence via the undertaking of airport projects and numerous educational buildings and corporate offices all over the Gulf area.

Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman.

“At Clestra, we develop and design our products from scratch, then completely fit out empty buildings from zero to completion,” Habbas told Arab News. “Our work extends to maintenance and after-sales services for all our clients, where we can be on-site for any adjustments needed within 24 hours.”

Habbas said what makes their products special is their move-and-removability, and likened it to the moveable block system made by Lego — the size of partitions can easily be adjusted by adding or removing panels.

“We’re not just selling a product, we’re selling a solution. We believe that Saudi Arabia is in need of the type of flexibility we can bring with our products and expertise, and not to mention the sustainable aspect of reusing our partitions again and again.”

One of their notable projects is at King Saud University, which has more than 200 kilometers of partitions made by the French firm that have been in use for more than 40 years — which speaks to the durability of the product, the secret of which lies in steel and aluminum.

Habbas added that the firm has plans to open a small factory in the first stage, followed a by a larger one in the second, in addition to carrying out workshops that aims to provide knowledge, expertise and training to employees, a move that should provide many jobs.

Fahad Al-Rasheed, CEO of the Royal Commission for Riyadh City said that by 2030 the regional headquarters program will contribute $18 billion to the local economy and create around 30,000 new jobs.

Since the announcement of the Saudi Vision 2030, as well as plans such as the Riyadh Strategy 2030 and the National Investment Strategy, the metropolis has flourished into a regional hub for businesses, trade and plentiful investment opportunities.


Samsung reports 53 percent jump in profit despite supply chain woes

Samsung reports 53 percent jump in profit despite supply chain woes
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Updated 9 sec ago

Samsung reports 53 percent jump in profit despite supply chain woes

Samsung reports 53 percent jump in profit despite supply chain woes
  • Operating profits generated from Samsung’s semiconductor business accounted for over 63.7 percent of the Q4 total

South Korean tech giant Samsung Electronics said Thursday its operating profit rose 53.3 percent in the fourth quarter of 2021, as record sales helped overcome pandemic-induced supply chain challenges.


The world’s biggest smartphone maker said its operating profit rose to 13.87 trillion won ($11.55 billion) for the October-December period in 2021, up from nine trillion won in the same quarter the previous year.


Thanks to high memory chip prices and strong consumer demand, Samsung had its highest annual sales of 279.6 trillion won in 2021, an 18 percent jump from a year earlier, the company said in a regulatory filing.


Samsung achieved “record sales thanks to competitive products, despite continuing uncertainty,” the tech giant said in a statement, singling out solid demand for its premium smartphone lines.


While the Covid-19 pandemic has wreaked havoc on the global economy, it has helped many tech companies boom.


Pandemic-driven working from home has boosted demand for devices powered by Samsung’s chips, as well as home appliances such as televisions and washing machines.


But LG Electronics, South Korea’s second-largest appliance firm after Samsung, saw its operating profit shrink by 21.4 percent in the fourth quarter on-year to 677.7 billion won.

The world’s biggest memory chip maker, Samsung Electronics has aggressively stepped up investment in its semiconductor business as the world battles chip shortages that have hit everything from cars and home appliances to smartphones and gaming consoles.


The global chip supply shortage is expected to persist well into the new year, analysts have said.


“In the Memory Business, demand is expected to grow as enterprises ramp up IT investments while the Company will expand supply of high-performance products,” Samsung said.


In November Samsung announced a new microchip factory in Texas, a $17 billion investment. The plant is expected to be operational by the end of 2024.


Samsung is also investing in the development of advanced technologies such as artificial intelligence and robotics, as well as 5G and 6G communications.


Park Sung-soon, an analyst at Cape Investment & Securities, said that memory chip prices were likely to decline in the first half of 2022.


“Samsung’s profit is likely to dip for the January-June period. But we also expect chip prices to turn around in the second half, giving a boost to company profits,” he said.


“We had forecast around a 10 percent fall in chip prices in the first months of 2022 but it appears now that the decline scope will be smaller with solid demands for PCs and improved supply chains.”


Consumer demand for high-end products, such as foldable phones, also helped to further boost profits around the holiday season.


Samsung said it expected the smartphone and premium television market to grow in the third year of the pandemic, though it anticipated sustained “uncertainties triggered by COVID 19 and supply and logistics issues.”


Operating profits generated from Samsung’s semiconductor business accounted for over 63.7 percent of the Q4 total, illustrating the major role the division plays in the sprawling group.


Samsung’s operating profit from the semiconductor division stood at 8.8 trillion won for the October-December period.


Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea.


The conglomerate’s overall turnover is equivalent to around one-fifth of South Korea’s gross domestic product.


Samsung Electronics’ record sales last year came as Lee Jae-yong, the firm’s vice-chairman and the de facto leader of the wider Samsung conglomerate, returned to management on parole release from prison last August.


Lee had spent over half of a two and a half year sentence for bribery, embezzlement and other offenses in connection with a corruption scandal that brought down ex-South Korean president Park Geun-hye before his release.


His return to management has eased concerns over decision-making at Samsung.


Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year
Updated 13 min 11 sec ago

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Saudi Arabia plans to produce 600,000 tons of fish a year, generating around 200,000 direct and indirect jobs in the fisheries sector, under its Vision 2030 master plan to diversify the economy.

The National Fisheries Development Program, founded in 2015, is tasked with this growth and hopes to attract $5 billion of investment from the private sector up until the end of the decade.

Key to these plans is the National Aquaculture Group, also known as Naqua, the Middle East’s largest firm in this industry.

Under this program, half of the new jobs that come from this fivefold boost in production will go to Saudi locals.

This move will allow the amount of seafood Saudi Arabia is able to export to grow. In 2020, the largest Arab economy imported 215,000 tons of seafood — which included tuna, sardines and Basa — and exported only 60,000 tons of aquaculture exports.

Based near Jeddah’s port, Naqua is a large-scale farm working up and down the fisheries value chain — from on-site feed production, to selling products through various firms. It produces shrimp, Barramundi fish, and sea cucumber, according to the company’s website.

The operation accounted for 86.2 percent of Saudi Arabia’s aquaculture production in 2018 and 80 percent of the Gulf’s output. 

The group’s export shipments only trailed the Kingdom’s petrochemicals and mineral industries, according to the company. It is also the Middle East’s first firm to receive the international Best Aquaculture Practices certification. Vision 2030 aims to bolster the company’s production to 250,000 tons.

The surge to hit the production target of 600,000 tons of fish products per year is earmarked to come from Naqua’s expansion, other Saudi firms as well as foreign partnerships.

Naqua is a sponsor of the coming Saudi International Marine Exhibition and Conference, or SIMEC, which is set to take place from Jan. 30 to Feb. 1.

One of the milestones reached by the company was the development of a pathogen-free strain of Penaeus vannamei, commonly known as the whiteleg shrimp, following years of testing and research and development. This means the food is less likely to pass on illnesses when eaten.

Naqua enjoys some features that could potentially protect it from other competitors. For example, it has invested large sums in infrastructure to create a vertically integrated business, in addition to its locational advantages and long-term concessions and grants. It has so far invested SR4 billion ($1.1 billion) in the sector since it was founded in 1982. 

However, Naqua is not the sole player in the aquaculture market. Riyadh-based Tabuk Fish signed a deal with NEOM in April 2021 to establish the largest fish farm in the Middle East and North Africa, according to the Giga-project city.

The firm will run a state-of-the-art hatchery for the megacity holding up to 70 million fingerlings (young fish), which will make it the largest farm of its kind in the Middle East and North Africa region, and will focus on improving local fish production in the Red Sea. 


Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
Updated 27 January 2022

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
  • Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis

RIYADH: The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in net profit by 1,134.8 percent due to a surge in the prices of the project's products.

Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis, according to a stock exchange filing.

Established in 1996, the Riyadh-based firm is one of the first privately owned petrochemical companies in Saudi Arabia.

Its primary aim is to invest in the petrochemical industry for its shareholders.


All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27
Updated 27 January 2022

All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27

RIYADH: The Saudi stock exchange extended gains on Wednesday as investors reacted to a strong rebound in the energy market, where Brent crude oil crossed $89 per barrel.

TASI, the main index, registered gains standing at 0.6 percent, reaching 12,183 points, and the parallel market Nomu inched up by 0.5 percent to close at 25,688 points.

Elsewhere in the Middle East, bourses of Dubai, Abu Dhabi, and Bahrain edged up in line with Saudi, up 0.5, 0.1, and 0.4 percent, respectively.

The Qatari index QSI, Oman’s MSX30, Kuwait’s BKP, and the Egyptian EGX30 index all fell between 0.2 and 0.5 percent.

In early trading, Brent crude oil reached $89.6 per barrel, and US benchmark WTI crude oil rose to $86.7 per barrel as of 9:07 a.m. Saudi time.

Stock news

  • Saudi stock market regulator, the Capital Market Authority, has approved the listing of IT firm Saudi AZM for Communication and Information Technology on the parallel market Nomu
  • The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in its 2021 net profit, up by 1,134.8 percent
  • Saudi Kayan Petrochemical Co. turned from losses into profits of SR2.39 billion ($640 million) in 2021, buoyed by an increase in selling prices and a drop in costs
  • Telecommunication firm Etihad Atheeb has reduced its accumulated losses to 12 percent of capital
  • The Saudi National Bank, known as SNB, has awarded a SR215 million insurance contract to Arabian Shield Cooperative Insurance Co.
  • Saudi insurer Wataniya Insurance Co. got its S&P rating revised from BBB, altering the positive outlook to stable
  • National Petrochemical Co., better known as Petrochem, saw its profits surge almost fivefold in 2021, hitting SR1.4 billion
  • Saudi Arabia Refineries Co. announced the retirement of its board member Ali bin Saleh Khabti effective Jan. 26, 2022
  • Baazeem Trading Co. has appointed Salem Baazeem as board chairman and Fawzia Baazeem as vice chairman of the board of directors

Calendar

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