Saudi retailer Alhokair sees stock rise 2.22 percent on Subway deal: Market wrap

Saudi retailer Alhokair sees stock rise 2.22 percent on Subway deal: Market wrap
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Updated 30 November 2021

Saudi retailer Alhokair sees stock rise 2.22 percent on Subway deal: Market wrap

Saudi retailer Alhokair sees stock rise 2.22 percent on Subway deal: Market wrap

RIYADH: The stock value of the leading financial retailer in Saudi Arabia, Fawaz Abdulaziz Alhokair Co., has risen after striking a new deal with the Subway global restaurants chain. 

The shares are up despite fears around the new strain of COVID-19, adding to the optimism of Saudi’s financial market amid the collapse of other stocks. 

The retailer company’s share price rose by 2.22 percent as of 12noon, Riyadh time, on Tuesday.

However, other stocks in the Saudi Exchange continue to decline with the rise of omicron.

Saudi’s main stock index, Tadawul All Share Index, was down by 1.54 percent to 10,644.32 points since the market opened.

SABIC petrochemical shares declined by 2.70 percent, contributing further to the market fall.

Spichem and Chemanol were among the lowest-performing stocks.

Top gainers included Amana Insurance and Enaya, increasing by SR3.45 and SR2.30 respectively.

Despite the market decline, Saudi’s parallel market Nomu is up by 0.06 percent.

 


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.


Saudi Fisheries driving the transformation of the Kingdom’s aquaculture industry

Saudi Fisheries driving the transformation of the Kingdom’s aquaculture industry
Updated 10 sec ago

Saudi Fisheries driving the transformation of the Kingdom’s aquaculture industry

Saudi Fisheries driving the transformation of the Kingdom’s aquaculture industry

RIYADH: Saudi Fisheries Co. has strongly contributed to the ambitious plan of the Kingdom’s marine sector since its establishment, even as its stock tumbled over the years.

Owing to major steps taken by the fisheries firm, Saudi Arabia saw its traditional aquaculture industry transform into an export-oriented and modernized hub.

The Saudi Arabian aquaculture market reached a production volume of 70,000 tons in 2020. However, the demand for fish within the Kingdom stood at 282,000 tons — meaning import levels are currently high. 

The company aims to exploit marine resources in Saudi waters and meet rising demand, through its fleet of 32 fishing vessels, processing plants, and retail stores.

Riyadh-based Saudi Fisheries runs its operations in factories across Riyadh, Jeddah, Dammam, and Jizan, and exports its fishery products to several foreign countries.

In compliance with Vision 2030, it processes products in a way that ensures high quality and food safety.

The company took a leap in 1993 when it launched a shrimp farm in Huraidah on the Red Sea coast, with a production capacity of more than 1,700 tons per year, according to the company’s website.

Shares of the firm, which is known to be one of the pioneers in its field, hit a peak of over SR500 ($133) in late 2006. Today, the stock is at SR46.8 as of Jan. 26, 2022.

In 2021, the share price dropped 17 percent to exit the year at SR45.5 after it jumped more than twofold during pandemic-hit 2020.

Saudi Fisheries widened its net loss in the first nine months of 2021 by 45 percent to SR37.9 million as the impairment of one of its farms and higher expenses weighed on earnings.

On a wider scale, Saudi Arabia is taking several steps to boost its aquaculture and plans to increase the sector’s yield fivefold by 2030 through a public-private partnership.

The sector is expected to get a boost in the short-to-medium term through various projects to increase production to 600,000 tons per year, Deputy Minister for Agriculture Ahmed Aleyada told Arab News in December. 

 


UK invests $135m in EDF’s nuclear plant; Denmark’s Vestas expects hindrance in wind energy sector amid cost inflation: NRG matters

UK invests $135m in EDF’s nuclear plant; Denmark’s Vestas expects hindrance in wind energy sector amid cost inflation: NRG matters
landscape view of Sizewell B Nuclear Power Station. Shutterstock
Updated 3 min 23 sec ago

UK invests $135m in EDF’s nuclear plant; Denmark’s Vestas expects hindrance in wind energy sector amid cost inflation: NRG matters

UK invests $135m in EDF’s nuclear plant; Denmark’s Vestas expects hindrance in wind energy sector amid cost inflation: NRG matters

RIYADH: On a macro level, countries including Lebanon, Denmark, and Germany are pursuing initiatives to help ease the problem of energy shortages and cost inflation. On the other hand, investments in the sector continue to flow in on a micro level

Looking at the bigger picture:

Lebanon sealed deals on Wednesday to secure electricity from Jordan through Syria to alleviate the pain of the energy crunch the Middle Eastern country is going through.

Thanks to the deals, Lebanon is set to reach 250 megawatts of electricity per day within the span of two months. However, industry experts have told Arab News the deal still has numerous hurdles to clear. Read more: https://www.arabnews.com/node/2012466/business-economy 

Danish manufacturer, seller, installer, and servicer of wind turbines, Vestas, anticipates the wind energy sector to be heavily influenced by cost inflation in 2022, CNBC reported.

The corporation will, accordingly, have to raise prices of its wind turbines to combat the volatile business environment, according to Reuters.

Germany is considering the establishment of government owned natural gas storage sites to curb future shortages of the fuel in the winter to follow, Bloomberg reported, citing economy minister, Robert Habeck.

The Western European country is also contemplating another option of having local gas storage plants commit to a specific volume of the fuel to be available at all times.

Through a micro lens:

British manufacturer and maker of luxury cars and SUVs Bentley Motors will allocate £2.5 billion ($3.4 billion)  to fully shift its lineup to electric vehicles, or EVs, by 2030.

The carmaker’s first EV is set to launch in 2025. Read more: https://www.arabnews.com/node/2012351/business-economy

The UK government invested £100 million ($135 million) to propel the advancement of French multinational electric utility firm Electricite de France SA’s Sizewell C nuclear project residing in the UK, Bloomberg reported.

 

The funds aim to bring the project to a final funding decision soon regarding how much the government along with private investors will inject into the plant.


TASI opens flat as earnings reports guide the market: Opening bell

TASI opens flat as earnings reports guide the market: Opening bell
Updated 10 min 50 sec ago

TASI opens flat as earnings reports guide the market: Opening bell

TASI opens flat as earnings reports guide the market: Opening bell

RIYADH: Saudi Arabia’s stock indexes opened mixed on Thursday amid a wave of earnings announcements, guiding investors’ decision-making.

The main TASI index was flat at 12,192 points as of 10:22 a.m. Saudi time, while the parallel market Nomu slipped 0.7 percent to 25,512 points.

TASI was pushed higher by gains in Saudi Kayan Petrochemical Co. but weighed down by National Petrochemical Co., known as Petrochem, and the Saudi Industrial Investment Group, even as all three firms reported an earnings beat.

Saudi Kayan saw its share price soar over 2 percent after it turned from losses into profits of SR2.39 billion ($640 million) in 2021.

Shares in Petrochem and the Saudi Industrial Investment Group were down 1 and 1.8 percent, respectively, despite seeing an unprecedented rise in last year’s earnings.

Saudi Automotive Services Co., known as SASCO, soared 4 percent, topping the gainers for a second consecutive day.

SASCO had earlier acquired 80 percent of gas station operator NAFT Services Limited Co. for SR1.1 billion.

Arabian Shield Cooperative Insurance Co. was up 1 percent, after signing a SR215 million contract to provide insurance to employees of the Kingdom’s largest lender Saudi National Bank, known as SNB.

Allied Cooperative Insurance Group led the fallers in early trading, with its shares declining almost 6 percent.

In energy trading, Brent crude oil reached $89.6 per barrel, and US benchmark WTI crude oil neared $87 per barrel as of 10:39 a.m. Saudi time.


Samsung reports 53 percent jump in profit despite supply chain woes

Samsung reports 53 percent jump in profit despite supply chain woes
Image: Shutterstock
Updated 19 min 2 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.