Egypt completes a $3bn loan for green and Islamic financing

Egypt completes a $3bn loan for green and Islamic financing
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Updated 16 January 2022

Egypt completes a $3bn loan for green and Islamic financing

Egypt completes a $3bn loan for green and Islamic financing
  • The banks that arranged the loan included Emirates NBD and First Abu Dhabi Bank

RIYADH: Egypt secured a $3 billion loan arranged jointly by a group of Gulf banks, to be divided equally between green and Islamic financing for a period of 3 years.

The financing, which closed last month, saw a return of 260 basis points above the LIBOR rate, Alarabiya reported citing banking sources.

The banks that arranged the loan included Emirates NBD and First Abu Dhabi Bank, who were the main coordinators for the financing, the sources added. 

Other banks participating in the financing arrangement included Abu Dhabi Islamic Bank, Al Ahli Bank of Kuwait, Arab Banking Corporation, Standard Chartered, National Bank of Kuwait and Warba Bank.

 


Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m
Updated 12 sec ago

Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m

RIYADH: Savola Group has entered into an SR459-million ($122 million) agreement to sell its stake in Knowledge Economic City Co. and Knowledge Economic City Developers Co. Limited.

This move came in light of Salove’s strategy of focusing on investing in its main operations in the food and retail sectors, while ending investments in non-core businesses, the group said in a bourse filing.

Knowledge Economic City is owned by Savola Group directly and indirectly at an approximate share of 11.47 percent.

Knowledge Economic City’s shares ended Wednesday’s trading session 6.12 percent higher at SR14.56.


Jordan, Qatar lift restrictions on passenger, cargo flights 

Jordan, Qatar lift restrictions on passenger, cargo flights 
Updated 17 min ago

Jordan, Qatar lift restrictions on passenger, cargo flights 

Jordan, Qatar lift restrictions on passenger, cargo flights 
  • The MoU is expected to have significant positive outcomes on the overall economic and investment activity and increase the volume of air transport between the two countries

Jordan and Qatar have lifted all restrictions on the capacity and number of passenger and cargo flights operating between the two countries, the Jordan News Agency (Petra) reported on Wednesday. 

Chief Commissioner and CEO of the Jordan Civil Aviation Regulatory Commission (CARC) Haitham Misto and the President of Qatar Civil Aviation Authority (QCAA) signed a Memorandum of Understanding (MoU) to fully resume direct air transport between the two countries. 

The MoU is expected to have significant positive outcomes on the overall economic and investment activity and increase the volume of air transport between the two countries, Petra said. 

The move is also in line with Jordan’s gradual liberalization policy of air transport under the National Air Transport Strategy, according to Petra. 


Saudi Astra Industrial H1 profit zooms 202% to $85m as sales rise

Saudi Astra Industrial H1 profit zooms 202% to $85m as sales rise
Updated 26 min 9 sec ago

Saudi Astra Industrial H1 profit zooms 202% to $85m as sales rise

Saudi Astra Industrial H1 profit zooms 202% to $85m as sales rise

RIYADH: Saudi Astra Industrial Group saw its profit soar 202 percent to SR318 million ($85 million) during the first half of 2022, bolstered by a rise in sales.

The company’s net profit almost tripled from SR105 million in the same period in 2021, driven by revenue growth of over 10 percent, according to a bourse filing.

Its revenue surged to SR1.24 billion, compared to SR1.12 billion a year earlier, while the profit per share went up to SR3.97 from SR1.32.

During the second quarter, Astra Industrial Group’s Al Tanmiya Steel sold its stake in Iraqi unit Al Anmaa for Construction Materials Production in a SR731 million deal.

Its companies are involved in various industrial segments including pharmaceuticals, steel construction, specialty chemicals and mining.


Saudi Arabian Mining Co. emerges as TASI’s 5th-best performer

Saudi Arabian Mining Co. emerges as TASI’s 5th-best performer
Updated 52 min 23 sec ago

Saudi Arabian Mining Co. emerges as TASI’s 5th-best performer

Saudi Arabian Mining Co. emerges as TASI’s 5th-best performer
  • Analysts expect Ma’aden to maintain its solid performance throughout 2022, owing to its expansion plans

RIYADH: Saudi Arabian Mining Co., known as Ma’aden, ranked fifth among the top share price gainers this year on the Saudi stock index TASI buoyed by strong results and a thriving mineral sector.

Ma’aden’s share price in 2022 opened at SR39.25 ($10.5) and climbed to SR59 on Aug. 4, surging 53 percent.

A booming mineral industry fueled this rise in Saudi Arabia as, in recent years, the Kingdom has shifted its focus toward discovering and extracting minerals and metals to support its mining industry.

“There is over $3-trillion worth of minerals to be exploited in the Kingdom, which opens huge opportunities for minerals companies,” said Peter Leon, a partner in Johannesburg-based law firm Herbert Smith Freehills.

Leon advised the Kingdom’s Ministry of Industry and Mineral Resources on drafting its new mining law.

Khalid Almudaifer, vice minister of MIMR, told Arab News that the ministry had established the mining sector’s infrastructure, allowing the Kingdom to leapfrog in both mining and sustainable mining.

FASTFACTS

• The company’s share price in 2022 opened at SR39.25 ($10.5) and climbed to SR59 on Aug. 4, surging 53 percent.

• Ma’aden reported a 185 percent surge in profit during the first quarter of 2022, hitting SR2.17 billion.

• The mining company has a market capitalization of over SR100 billion.

As the Kingdom revealed that it could be sitting on untapped mineral deposits worth $1.3 trillion, Almudaifer added that the $1.3 trillion estimate of untapped minerals is only a starting point and that underground minerals are likely worth even more.

In March, the state-owned firm announced its plans to increase production capacity and invest in exploration to tap into $1.3 trillion mineral reserves, a reason economist Ali Alhazmi believes that made Ma’aden shares lucrative, further leading to high performance.

Speaking to Arab News, Alhazmi explained that one of the reasons could be attributed to Ma’aden turning into probability last year, reaching SR5.2 billion, compared to SR280 million in losses in 2020.

The other reason could relate to its plan to double its capital by distributing three shares to shareholders, which has attracted investors to buy Ma’aden shares.

According to Abdullah AlRebdi, CEO of Rassanah Capital, the beginning of the third line of its ammonia production also helped the company’s fortune, especially when there was a considerable shortage of raw material for fertilizer. It is worth mentioning that the ammonia plant expansion is set to add over 1 million tons of ammonia production to reach 3.3 million tons, making Ma’aden one of the largest ammonia producers east of the Suez Canal.

Ma’aden reported a 185 percent surge in profit during the first quarter of 2022, hitting SR2.17 billion, amid a jump in commodity prices.

Analysts expect Ma’aden to maintain its solid performance throughout 2022, owing to its expansion plans and gold mining projects in Mansoura and Masarrah.

“By the end of 2022, Ma’aden will achieve SR9 billion in profit, a growth of 50 percent from 2021,” Alhazmi predicted.

As one of the fastest-growing mining companies worldwide, Ma’aden has a market capitalization of over SR100 billion and is one of the Kingdom’s 10 most prominent players.


Oil up, rebounds on renewed gasoline demand, weak dollar

Oil up, rebounds on renewed gasoline demand, weak dollar
Updated 10 August 2022

Oil up, rebounds on renewed gasoline demand, weak dollar

Oil up, rebounds on renewed gasoline demand, weak dollar
  • US crude inventories up more than 5 million barrels
  • Transneft restarts oil flows via Druzhba

NEW YORK: Oil prices rose on Wednesday, rebounding from losses early in the session on lift from encouraging figures on US gasoline demand and as a lower-than-expected US inflation figure drove investors into riskier assets.

Brent crude futures rose 68 cents, or 0.7 percent, to $96.99 a barrel as of 12:46 p.m. EST (1746 GMT). US West Texas Intermediate crude futures gained 83 cents, or 0.9 percent, to $91.33.

US stocks

US crude oil stocks rose by 5.5 million barrels in the most recent week, the US Energy Information Administration said, more than the expected increase of 73,000 barrels. However, US gasoline stocks fell sharply as implied demand rose after weeks of lackluster activity during what is supposed to be peak summer driving season.

“Everyone has been very much focused on potential demand destruction, so seeing implied demand showing an outsized rebound for last week has probably given some comfort to those really concerned about that,” said Matt Smith, lead oil analyst, Americas, for Kpler.

Gasoline product supplied rose in the most recent week to 9.1 million bpd, though that figure still shows demand down 6 percent over the past four weeks compared with the year-ago period.

US oil refiners and pipeline operators expect strong energy consumption for the second half of 2022, a Reuters review of company earnings calls showed.

US consumer prices were unchanged in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.

That contributed to a rise in risk assets including equities, while the US dollar fell more than 1 percent against a basket of currencies. With most worldwide oil sales transacted in dollars, a weakening greenback is supportive for oil. However, crude's gains were modest.

Druzhba pipeline

The market earlier slipped as flows on the Russia-to-Europe Druzhba pipeline resumed, alleviating fears of another squeeze on world energy supply by Moscow.

Russian state oil pipeline monopoly Transneft restarted oil flows via the southern leg of the Druzhba oil pipeline, RIA news agency said.

Ukraine had suspended Russian oil pipeline flows to parts of central Europe since early this month because Western sanctions prevented it from receiving transit fees from Moscow, Transneft said on Tuesday.