Saudi SEDCO Capital REIT Fund’s additional offering 339% oversubscribed

Saudi SEDCO Capital REIT Fund’s additional offering 339% oversubscribed
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Updated 22 December 2021

Saudi SEDCO Capital REIT Fund’s additional offering 339% oversubscribed

Saudi SEDCO Capital REIT Fund’s additional offering 339% oversubscribed

JEDDAH: SEDCO Capital, a global Shariah-compliant and ethically led asset management and investment Saudi advisory firm, said it has completed the additional offering of SEDCO Capital REIT Fund.

The fund's new offering was oversubscribed by 339 percent, according to a statement.

Through this additional offering, SEDCO Capital is increasing the fund’s total asset value by SR702 million, or 64%, to SR1.80 billion across in-kind and cash subscriptions and additional Shariah-compliant financing, the firm said.

 


Saudi Arabia's non-oil budget revenues grow as income from taxes on goods rises

Saudi Arabia's non-oil budget revenues grow as income from taxes on goods rises
Updated 3 min 3 sec ago

Saudi Arabia's non-oil budget revenues grow as income from taxes on goods rises

Saudi Arabia's non-oil budget revenues grow as income from taxes on goods rises

Taxes on goods and services are the main driver of growth in non-oil revenues, data from the Ministry of Finance compiled by Arab News show.

The stastics reveal the bulk of the SR6 billion ($1.6 billion) net year-on-year increase in non-oil revenues in the first quarter can be attributed to the levies, which grew by SR6.7 billion over the same period.

Likewise, they contributed most of the SR25 billion increase in non-oil revenues in 2021, as income from taxes on non-oil goods and services surged by SR23.1 billion.    

The second biggest component was "Other revenues” — the monies received from other public government units, such as the central bank, as well as the proceeds from sales performed by government entities, including advertising, port fees, fines and penalties.

This component constituted less than 23 percent of total non-oil revenue compared to 27.5 percent, 36.4 percent and 28.7 percent in the first quarter of 2021, 2020 and 2019, respectively.

Saudi Arabia’s non-oil revenues recorded an increase of 6.8 percent in first quarter of 2022 amounting SR94 billion, compared to the first quarter of last year of SR88 billion. The figure is the biggest first quarter non-oil revenue over the past 3 years, data posted by the Ministry of Finance show.

In the same period of last year, non-oil revenues experienced an even bigger increase of 39 percent, compared to the first quarter of the pandemic 2020 due to a much lower base, after the revenues fell 17.1 percent year-on-year. 

Compared to the fourth quarter of 2021 when non-oil revenues reached SR104 billion the figure for the first quarter of 2022 saw a decrease of 9.6 percent.

In the first quarter of 2022 non-oil revenues constituted nearly 34 percent of total revenues, compared to 43 percent and 39 percent in the same period last year and the fourth quarter of 2021, respectively. This reflects much stronger growth in oil revenues over the same periods, driven by a strong rally in oil.  

Looking at the structure of non-oil revenues in the first quarter of 2021, its biggest component — taxes on goods and services — constituted just over 66 percent of the total.

This compares to 61, 48 and 54 percent in the same quarter of 2021, 2020 and 2019, respectively. The strong increase in 2021 from 2020 we attribute to the effect of the rise in value added tax in July 2020, as well as expansion of output and sales in the non-oil industries. 

Government income from taxes on non-oil goods and services increased moderately by 11 percent year-on-year in the first quarter of 2022, compared to a 75 percent increase between the first quarters of 2020 and 2021. 


Egyptian IT firm Benya to establish investment arm in Saudi Arabia next month

Egyptian IT firm Benya to establish investment arm in Saudi Arabia next month
Updated 7 min 32 sec ago

Egyptian IT firm Benya to establish investment arm in Saudi Arabia next month

Egyptian IT firm Benya to establish investment arm in Saudi Arabia next month

RIYADH: Egyptian Information and communications technology provider Benya Group is planning to establish an investment arm in Saudi Arabia by the end of June this year, according to a report published in Daily News Egypt. 

The move from Benya Group is considered the firm's first step in its expansion in the markets of the Arabian Gulf. 

Ayman Al-Bayaa, CEO of Benya Group, said that Saudi Arabia is an excellent market in terms of investment opportunities in the field of data centers, smart city solutions, and information security. 

Headquartered in Cairo, Benya Group is known for providing digital solutions and ICT infrastructure to companies in Egypt and the Middle East and North Africa region. 

The company operates in multiple verticals of ICT which include telecommunication services, cloud, and security solutions, hyperscale data centers, manufacturing technology-based solutions and systems integration, according to the company website. 

 


Russia not planning to block YouTube, says digital development minister

Russia not planning to block YouTube, says digital development minister
Updated 10 min 35 sec ago

Russia not planning to block YouTube, says digital development minister

Russia not planning to block YouTube, says digital development minister
  • Russia has blocked other foreign social media platforms
  • Moscow restricted access to Twitter, Facebook and Instagram in early March

Russia is not planning to block Alphabet Inc’s YouTube, the minister for digital development said on Tuesday, acknowledging that such a move would likely see Russian users suffer and should therefore be avoided.
Russia has blocked other foreign social media platforms, but despite months of fines and threats against YouTube for failing to delete content Moscow deems illegal and for restricting access to some Russian media, it has stopped short of delivering a killer blow to the video-hosting service.
With around 90 million monthly users in Russia, YouTube is extremely popular and plays an important role in the digital economy. Though Russia has domestic versions of other social media, a viable YouTube alternative on that scale is yet to emerge.
“We are not planning to close YouTube,” Maksut Shadaev, who is also minister of communications and mass media, told an educational forum. “Above all, when we restrict something, we should clearly understand that our users won’t suffer.”
Competition is the engine of progress and blocking is an extreme measure, he told a vast auditorium of mostly young Russians, some scattered around the room on bean bags.
Alphabet’s Google did not immediately respond to a request for comment.
Simmering tensions between Moscow and Big Tech erupted into a full-on information battle after Russia sent tens of thousands of troops into Ukraine on Feb. 24.
Russia restricted access to Twitter and Meta Platform’s Facebook and Instagram in early March. It vowed in April to punish Google for shutting out Russian state-funded media globally on YouTube, accusing it of spreading fakes about what Russia calls its special military operation in Ukraine.


Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo
Updated 17 min 19 sec ago

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

RIYADH: Oil prices eased on Tuesday as Hungary resisted an EU push for a ban on Russian oil imports, a move that would tighten global supply, and as investors took profits following a recent rally.

Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel by 0327 GMT, while US West Texas Intermediate crude futures slid 35 cents, or 0.3 percent, to $113.85 a barrel. 

Both benchmarks had gained more than 2 percent on Monday, following a 4 percent jump on Friday.

Equinor, Exxon agree to expand Brazil oil operations

Equinor and Exxon Mobil Corp. have taken the first steps to expand an $8-billion oil development off Brazil’s coast, the Norwegian oil producer told Reuters.

The firms want to boost future production from the Bacalhau oil field, Equinor’s largest project outside of Norway with more than 1 billion barrels of oil, the company said.

A second drilling rig and a second floating production platform are being considered for the next phase along with a more than 100-mile-long gas pipeline, three people close to the discussions said.

For Exxon, Bacalhau could provide its first barrel of oil from offshore Brazil, one of its top growth prospects, and a new supply of oil from lower carbon operations. First oil is due in 2024 from the venture’s 220,000 barrels per day production vessel.

EU fails to persuade Hungary to sign up for Russian oil embargo

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto of a proposed oil embargo on Russia, with Lithuania saying the bloc was being “held hostage by one member state.”

The ban on crude imports proposed by the European Commission in early May would be its harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine and includes carve-outs for EU states most dependent on Russian oil.

Germany, the EU’s biggest economy and a major buyer of Russian energy, said it wanted a deal to authorize the oil embargo, which it suggested could last for years.

As expected, the ministers failed to reach a deal on Monday, EU foreign policy chief Josep Borrell said after the meeting, with ambassadors now charged to negotiate an agreement.

“Unhappily, it has not been possible to reach an agreement today,” Borrell told reporters, saying Hungary set out its argument based on economic, not political, concerns.

Some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil, probably over six months, with a longer transition period for Hungary, Slovakia and the Czech Republic.

“I am confident that we will find agreement in the coming days,” German Foreign Minister Annalena Baerbock said.

(With input from Reuters)  


Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo
Updated 34 min 4 sec ago

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

RIYADH: Oil prices eased on Tuesday as Hungary resisted an EU push for a ban on Russian oil imports, a move that would tighten global supply, and as investors took profits following a recent rally.

Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel by 0327 GMT, while US West Texas Intermediate crude futures slid 35 cents, or 0.3 percent, to $113.85 a barrel. 

Both benchmarks had gained more than 2 percent on Monday, following a 4 percent jump on Friday.

Equinor, Exxon agree to expand Brazil oil operations

Equinor and Exxon Mobil Corp. have taken the first steps to expand an $8-billion oil development off Brazil’s coast, the Norwegian oil producer told Reuters.

The firms want to boost future production from the Bacalhau oil field, Equinor’s largest project outside of Norway with more than 1 billion barrels of oil, the company said.

A second drilling rig and a second floating production platform are being considered for the next phase along with a more than 100-mile-long gas pipeline, three people close to the discussions said.

For Exxon, Bacalhau could provide its first barrel of oil from offshore Brazil, one of its top growth prospects, and a new supply of oil from lower carbon operations. First oil is due in 2024 from the venture’s 220,000 barrels per day production vessel.

EU fails to persuade Hungary to sign up for Russian oil embargo

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto of a proposed oil embargo on Russia, with Lithuania saying the bloc was being “held hostage by one member state.”

The ban on crude imports proposed by the European Commission in early May would be its harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine and includes carve-outs for EU states most dependent on Russian oil.

Germany, the EU’s biggest economy and a major buyer of Russian energy, said it wanted a deal to authorize the oil embargo, which it suggested could last for years.

As expected, the ministers failed to reach a deal on Monday, EU foreign policy chief Josep Borrell said after the meeting, with ambassadors now charged to negotiate an agreement.

“Unhappily, it has not been possible to reach an agreement today,” Borrell told reporters, saying Hungary set out its argument based on economic, not political, concerns.

Some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil, probably over six months, with a longer transition period for Hungary, Slovakia and the Czech Republic.

“I am confident that we will find agreement in the coming days,” German Foreign Minister Annalena Baerbock said.

(With input from Reuters)