Saudi industrial production hits highest level since April 2020

Saudi industrial production hits highest level since April 2020
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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.

 


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.


Nissan alliance says to invest $25bn in electric vehicles over 5 years

Nissan alliance says to invest $25bn in electric vehicles over 5 years
Image: Shutterstock
Updated 6 sec ago

Nissan alliance says to invest $25bn in electric vehicles over 5 years

Nissan alliance says to invest $25bn in electric vehicles over 5 years

The Nissan auto alliance said Thursday it will invest 23 billion euros ($25.7 billion) into electric vehicles over the next five years as the auto industry pours resources into the sector.


Nissan, Renault and Mitsubishi Motors said the latest investment followed more than 10 billion euros already spent on its "offensive strategy in electrification" and would lead to 35 new electric models by 2030.

 


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

Saudi Fisheries driving the transformation of the Kingdom’s aquaculture industry
Updated 13 min 39 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 16 min 52 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 24 min 19 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.