Shipping prices rose 700% due to COVID-19: TASNEE CEO

Shipping prices rose 700% due to COVID-19: TASNEE CEO
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Updated 09 December 2021

Shipping prices rose 700% due to COVID-19: TASNEE CEO

Shipping prices rose 700% due to COVID-19: TASNEE CEO

JEDDAH: Shipping costs have increased by 700 percent as a result of the pandemic, according to the CEO of the Saudi National Industrialization Co. 

Container plants in China stopped their production during the pandemic, which led to an increase in the container rental price from $800-1,200 to $7,500-8,500.

The long-term shipping contracts signed by the company, also known as TASNEE, mitigated the impact of the price hike, Mutlaq Al-Morished told Al Arabia. 

He expects a gradual decline in freight rates, starting in the middle of 2022.

Al-Morished also set out plans to reduce TASNEE’s carbon footprint, which is equivalent to 0.7 percent of the emissions produced in Saudi Arabia.

The CEO said his company, one of the largest manufacturers of car batteries in the Middle East, would cut its emissions by 30 percent by adopting better recycling practices.


Saudi Arabia’s first fintech unicorn stc pay posts $117m losses for 2021

Saudi Arabia’s first fintech unicorn stc pay posts $117m losses for 2021
Updated 12 sec ago

Saudi Arabia’s first fintech unicorn stc pay posts $117m losses for 2021

Saudi Arabia’s first fintech unicorn stc pay posts $117m losses for 2021

RIYADH: Saudi Arabia’s leading payments solutions provider stc pay has posted losses amounting to SR440 million ($117 million) for 2021.

Its revenues stood at SR834 million during the year, Argaam reported.

The parent company Saudi Telecom Co.’s share of the total losses was around SR374 million.

stc pay was established back in 2017 by Arabian Internet and Communications Services Co., better known as solutions, and paved its way to becoming the Kingdom’s first fintech unicorn.

It was transferred to telecom giant stc two years later and Western Union acquired a 15-percent stake in the company for $200 million.


TASI lower on mixed earnings and oil price uncertainty: Closing bell

TASI lower on mixed earnings and oil price uncertainty: Closing bell
Updated 3 min 31 sec ago

TASI lower on mixed earnings and oil price uncertainty: Closing bell

TASI lower on mixed earnings and oil price uncertainty: Closing bell

RIYADH: The Saudi main index ended Monday with another steep decline, as fluctuating oil prices and mixed earnings reports weighed on investors' sentiment again.

As of the closing bell, TASI edged 0.80 percent lower to reach 12,235, while the parallel market, Nomu, added 0.15 percent at 22,363.

In the energy sector, Brent crude rose to $113.70 a barrel and US West Texas Intermediate crude reached $111.34 a barrel, as of 3:08 p.m. Saudi time.

Saudi Industrial Export Co. rallied 9.93 percent to lead the market, while Arab Sea Information System Co. plunged 7.30 percent to lead the laggards.

Saudi Aramco, the largest player on the Saudi oil market, closed today’s trading up 0.77 percent.

Arabian Pipes Co. gained 1.27 percent, after Saudi Aramco awarded the company a SR100 million ($27 million) contract to supply steel pipes.

BinDawood Holding Co. edged down 1.84 percent, despite reporting a 5 percent increase in profit to SR65 million in the first quarter.

Mouwasat Medical Services Co. declined 1.81 percent, following the announcement that it has entered into a nonbinding agreement to acquire Al-Marasem International Hospital in Egypt.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi slipped 2.26 percent, while Alinma Bank fell 0.71 percent.

In the pharma sector, Aldawaa Medical Services Co. gained 0.26 percent, while Nahdi Medical Co. fell 1.68 percent.

Telecom giants Zain KSA and stc saw their share prices decline 0.76 percent and 1.14 percent, respectively.


Saudi economy to grow 7 percent in 2022, ahead of other GCC countries: World Bank report

Saudi economy to grow 7 percent in 2022, ahead of other GCC countries: World Bank report
Updated 4 min 41 sec ago

Saudi economy to grow 7 percent in 2022, ahead of other GCC countries: World Bank report

Saudi economy to grow 7 percent in 2022, ahead of other GCC countries: World Bank report

RIYADH: Saudi Arabia’s economy is expected to grow 7 percent in 2022, ahead of other countries in the Gulf Cooperation Counil, according to the Global Economic Update report by the World Bank. 

According to the report, the Kingdom’s growth in 2022 will be driven by stronger oil output following OPEC+ production cuts and continued growth in non-oil sectors, supported by stronger consumption, increased tourism, and higher domestic capital spending.  The report forecasts a combined growth of 5.9 percent in the GCC countries altogether, driven by the hydrocarbon and non-hydrocarbon sectors. 

The World Bank report added that the GCC economies are strongly rebounding after the COVID-19 pandemic, which is primarily accelerated by a massive vaccination rollout, ease in restrictions and developments in the hydrocarbon market. 

It said Bahrain’s economy will be accelerated 3.5 percent this year due to surging oil prices, while Kuwait will witness a growth of 5.9 percent. 

Oman’s economy will grow by 5.6 percent this year, followed by followed by Qatar and the UAE at 4.9 percent and 4.7 percent respectively. 

HIGHLIGHTS

Bahrain’s economy will be accelerated 3.5 percent this year due to surging oil prices, while Kuwait will witness a growth of 5.9 percent. 

Oman’s economy will grow by 5.6 percent this year, followed by followed by Qatar and the UAE at 4.9 percent and 4.7 percent respectively. 

The report forecasts a combined growth of 5.9 percent in the GCC countries altogether, driven by the hydrocarbon and non-hydrocarbon sectors. 

The World Bank also noted that the ongoing tensions between Ukraine and Russia have resulted in changes in the energy market, which will ultimately benefit the GCC countries. 

“As major hydrocarbon exporters, the GCC countries may also benefit from changes in the energy markets brought about by the war in Ukraine. These countries may see strong fiscal and external surpluses, which could help spur consumer confidence and investments,” it said. 

The Global Economic Update report also outlined the challenges the Gulf countries will face as they work toward a sustainable future. 

Issam Abousleiman, World Bank’s regional director for the GCC, said: “As GCC countries commit to the net-zero objectives laid out in their pledges and strategies, it is important to restructure energy and water subsidies and address the GCC’s challenge of moving to a more sustainable growth model less hydrocarbon dependent and managing the transition to a global low-carbon economic environment that risk to see their oil revenues reduced in the next few decades.” 


MENA Project Tracker: Saudi telecom giant stc partners with a consortium to launch $238m cloud firm

MENA Project Tracker: Saudi telecom giant stc partners with a consortium to launch $238m cloud firm
Updated 7 min 5 sec ago

MENA Project Tracker: Saudi telecom giant stc partners with a consortium to launch $238m cloud firm

MENA Project Tracker: Saudi telecom giant stc partners with a consortium to launch $238m cloud firm

RIYADH: Saudi telecom Co., now known as stc, has partnered with a consortium, led by eWTP Arabia Capital, to set up a cloud computing unit with SR894 million ($238 million) capital. stc will take 55 percent stake in the company with SR492 million investment, whereas eWTPA will hold a 27 percent stake. Alibaba Cloud Singapore will come on board with a 10 percent stake while Public Investment Fund-owned Saudi Co. for Artificial Intelligence and Saudi Information Technology Co. will hold 4 percent stakes each in the company. 

·      Contractors are preparing bids to be submitted by July 19 for the main package to construct Saudi Entertainment Ventures’ Exit 15 project to be located in Al-Nahdah area of Riyadh, MEED reported. Designs for the project — expected to be completed over the span of three years — include a built-up area of over 215,000 square meters in addition to a parking, retail, and food and beverages spaces measuring around 700,000 square meters.

·      Egypt’s majority-owned subsidiary of Orascom Construction, Suez Industrial Development Co., or SIDC, is collaborating with joint-stock private equity firm Al-Ahly Capital Holding in the establishment of a 2.2 million square-meter industrial park to be located in Abu Rawash in the governorate of Giza, MEED reported. The industrial park is set to target sectors including logistic, light industries, small and medium-sized enterprises, among others. Additionally, as the lead developer, SIDC will own as much as 25 percent of the project company.

·      Vulcan Pelletizing has awarded Finnish listed technology firm Metso Outotec a contract to supply engineering and key equipment worth $35 million to a Oman-based iron ore grate-kiln pellet plant, MEED reported. To be located in the city of Sohar, the plant is set to be operational toward the end of 2023. The plant is also projected to have a capacity to produce up to 6 million tons of high-quality iron ore pellets per year.


Saudi Jazadco profits jump 76% as sales rise

Saudi Jazadco profits jump 76% as sales rise
Updated 12 min 41 sec ago

Saudi Jazadco profits jump 76% as sales rise

Saudi Jazadco profits jump 76% as sales rise

RIYADH: Jazan Energy and Development Co. has posted a 76 percent rise in profit to SR3.56 million ($950,293) in the first quarter of 2022.

Traded in the name of Jazadco, the Saudi-listed firm saw its profit jump from SR2 million reported in the first quarter of 2021, according to a bourse filing.

The rise in profits resulted from a 14 percent increase in sales, where both agricultural and aquaculture sectors grew by 25 percent.

The company’s revenues in the real estate sector increased by 16 percent as occupancy rates improved in the first quarter.