Saudi, Korean firms sign multiple business deals as countries partner on developing hydrogen economy

Saudi, Korean firms sign multiple business deals as countries partner on developing hydrogen economy
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Updated 19 January 2022

Saudi, Korean firms sign multiple business deals as countries partner on developing hydrogen economy

Saudi, Korean firms sign multiple business deals as countries partner on developing hydrogen economy
  • Under agreements signed during the visit, Seoul will be able to secure carbon-neutral hydrogen and ammonia supplies from the Kingdom
  • PIF, Aramco led Saudi firms signing deals with Korean companies
  • Moon is scheduled to meet Gulf Cooperation Council Secretary-General to discuss a free trade agreement with GCC.

SEOUL: Saudi Arabia and South Korea agreed to work together in developing the hydrogen economy, President Moon Jae-in’s office said, after the Korean leader’s meeting with Saudi Crown Prince Mohammed bin Salman.

“After holding the talks at Al-Yamamah palace in Riyadh, the two nations signed preliminary deals to jointly develop green hydrogen, which is produced from renewable energy sources, especially solar and wind, and jointly build a hydrogen ecosystem,” Moon’s office said in a statement.

Under the deals, Seoul will be able to secure carbon-neutral hydrogen and ammonia supplies from the Kingdom. It will also help Riyadh operate hydrogen-powered cars and hydrogen fueling stations.

Moon is on the second leg of his trip to the Middle East with economic diplomacy, artificial intelligence, public health and energy cooperation high on the agenda.

On Wednesday, Moon is scheduled to meet Gulf Cooperation Council Secretary-General Nayef bin Falah Al-Hajjraf to discuss a free trade agreement between Seoul and the GCC.

Saudi-Korea business forum

After the talks with the Crown Prince, the South Korean president delivered a keynote speech at a business forum in Riyadh.

“Saudi Arabia, which has the potential to produce clean hydrogen such as green and blue hydrogen, and South Korea, which has strengths in hydrogen utilization based on hydrogen-powered cars and fuel cell technology, must closely cooperate to lead the global hydrogen economy,” Moon said, as quoted by South Korea’s main news service Yonhap News Agency.

The Saudi-Korean Business Forum culminated today in 13 investment agreements in such areas of strategic interest as clean energy and manufacturing, smart infrastructure and digitalization, capacity building, SMEs, healthcare and life sciences.

The Public Investment Fund and Aramco signed many deals with leading Korean companies including Posco, in which the PIF owns a 38-percent stake.

Saudi Investment Minister Khaled Al-Falih and Korean Trade, Industry and Energy Minister Moon Sungwook held a meeting for the Saudi-Korean Vision 2030 committee, SPA said.

The committee was created in 2017 to harness complementary resources to generate economic benefits and business opportunities in line with Saudi Arabia’s Vision 2030 and Korea’s Five-Year (2017-2022) Plan for the Administration of State Affairs.

Deals

  • Saudi Ministry of Investment signed an agreement with Samsung C&T to help it develop and localize industries related to construction technologies and green products and around investing in building and financing infrastructure projects.
  • The PIF signed an MoU with Korean firms POSCO and Samsung C&T to study and develop a green hydrogen production project in KSA for export purposes, while MISA signed a joint cooperation with Samsung C&T in the field of green hydrogen for pre-cast concrete blocks and infrastructure.
  • Saudi Aramco signed an MoU with Korea Electric Power Corporation, KEPCO, for a pre-feasibility study on blue ammonia and blue hydrogen for investment, production, logistics and sales, an agreement with POSCO regarding investment in blue ammonia and blue hydrogen and a basic terms agreement with Export-Import Bank of Korea for framework agreements that include a credit limit of up to $6 billion. Saudi Aramco also signed a series of agreements with S-Oil around areas including research and development, blue hydrogen and technology development.
  • The Saudi Arabian Industrial Investments Co. (Dussur), Saudi Aramco and Doosan Heavy Industries and Construction signed an agreement to establish a high-efficiency factory in iron molding and forging in Ras Al-Khair, with a production capacity of 83,000 tons annually. The deal is expected to attract foreign investment, transfer quality technology to Saudi Arabia and localize supply chains for strategic sectors in the equipment industry for the oil and gas, water, energy and marine industries.
  • Saudi real estate developer ROSHN and Samsung C&T agreed to establish a non-exclusive framework to jointly explore opportunities in housing development and pre-cast concrete blocks.
  • The Korean Intellectual Property Office and the Saudi Authority for Intellectual Property (SAIP) signed advanced partnership arrangements for bilateral cooperation, including the secondment of Korean experts to SAIP
  • The Ministry of National Guard signed a letter of intent agreement with EzCaretech to jointly provide and implement Dr. Answer – an artificial intelligence-based medical solutions tool – within targeted hospitals.
  • Kumho Tire and Al-Sahm Al-Usud for Tires signed a technical partnership agreement to establish a factory for tire production. The factory’s production capacity will reach 15 million tires annually, and production is expected to start in the third quarter of 2023.

Saudi-Korea trade

Saudi Arabia is South Korea’s top economic and trade partner in the Middle East, contributing over 30 percent of Seoul’s total crude oil imports in 2021, according to data by the Korea International Trade Association.

The Kingdom and the Republic of Korea have a long history of partnership, beginning with the establishment of diplomatic relationships 60 years ago. This relationship has benefitted both countries economically, with bilateral trade increasing from $3.9 billion in 1980 to $25.5 billion in 2019.

Earlier this month, South Korea’s Industry Minister Moon Sung-wook met Saudi Arabia’s Energy Minister Abdulaziz bin Salman in Riyadh for talks on cooperation in nuclear power and other energy fields in transition to a low carbon economy.

So far, joint Saudi-Korean projects amount to 120 with a value of around $1 billion, of which 20 percent are industrial projects.

Trade exchange between both countries has increased by 66 percent during the third quarter of 2021, compared to the same period last year, jumping to SR27.7 billion ($7 billion), according to SPA.  

UAE-Korea cooperation

The trip to Saudi Arabia follows Moon’s four-day visit to the UAE that included the signing of a $3.5 billion to sell Korean surface-to-air missiles KM-SAM, known as Cheongung II.

In addition to the arms export deal — the largest such agreement in South Korea’s history — Abu Dhabi and Seoul agreed to expand their cooperation in the development of carbon-capture technologies to create what is known as blue hydrogen, as the East Asian nation seeks to achieve carbon neutrality by 2050.

Blue hydrogen is obtained from natural gas in a process that stops carbon emissions from being released into the atmosphere.


PIF’s ROSHN plans to put downtown Jeddah on the map

PIF’s ROSHN plans to put downtown Jeddah on the map
Updated 13 sec ago

PIF’s ROSHN plans to put downtown Jeddah on the map

PIF’s ROSHN plans to put downtown Jeddah on the map

DUBAI: ROSHN, a real estate company owned by Saudi Arabia’s Public Investment Fund, has charted out master plans to develop downtown Jeddah, revealed Amr Khashoggi, chairman of Amkest Group.

Deprived neighborhoods in Saudi Arabia’s coastal city are undergoing significant redevelopment after decades of relentless urbanization.

Jeddah’s municipal authorities are clearing districts and squatter settlements where planners say substandard infrastructure, crime, and disease are blighting the lives of roughly half a million people.

“Today, if you drive around in those areas, you will find flatlands available for development,” said Khashoggi on the sidelines of the Top CEO event in Dubai.

The area includes the historical region of the city, and Jeddah Islamic Port, the biggest gateway for Saudi Arabia’s imports and exports, with 75 percent of the country’s exports and inbound transshipment going through it.

“The biggest cost of development is the cost of land, and that’s available already, so it’s going to be easier for companies like ROSHN to come and develop high-quality housing and commercial investment,” he said.

Jeddah is also seeing other significant developments in the central of the city, led by Jeddah Central Development Company, including the coastal part known as the Jeddah waterfront. The area recently hosted Formula One, the highest class of international car racing.

“It will be a good area for people to entertain,” he said.

The city’s rebirth has led to a surge in demand for real estate and resulted in increasing prices.

“The demand is there, but the question is whether people can afford it or not,” said Khashoggi.

Banks today are contributing by offering mortgages in more accessible ways than before, which will help close the gap.

“We are in the building material business, and we see that the demand is increasing; many contractors have been awarded jobs,” he said.

To Khashoggi, the challenge today for the construction sector is not finding new projects; the challenge is finding enough labor.

There is a labor shortage; many have gone home during COVID-19 and never returned.

Amkest Group was founded by Amr Khashoggi in 1983, investing in sectors of landscaping, information technology, transportation, telecommunications, and building materials.

 


Saudi stocks flat as traders remain cautious: Opening bell

Saudi stocks flat as traders remain cautious: Opening bell
Updated 5 min 28 sec ago

Saudi stocks flat as traders remain cautious: Opening bell

Saudi stocks flat as traders remain cautious: Opening bell

RIYADH: The Saudi stock market opened flat in early trade on Tuesday morning as traders remained cautious.

Both the main index, TASI, and the parallel market, Nomu, were flat at 12,247 and 22,363, respectively, as of 10:09 a.m. Saudi Arabia.

The shares of Amana Cooperative Insurance Co. gained 7.08 percent, leading the gainers in the market.

Al Moammar Information Systems Co. fell 6.12 percent to lead the laggards, after the firm has reported a 50 percent drop in quarterly profit.

Saudi Aramco, the largest player on the Saudi oil market, opened today’s trading down 0.89 percent.

Both L'azurde Co. for Jewelry and Kingdom Holding Co. gained 0.24 percent and 1.65 percent, respectively, as they reported profits for the first quarter of 2022.

The Alhokair Group rose 0.75 percent after reporting its losses narrowed by 48 percent in the first quarter.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi edged down 0.33 percent, while the Saudi National Bank gained 1.03 percent.

From the pharma sector, Aldawaa Medical Services Co. fell 0.26 percent, while Nahdi Medical Co. opened unchanged.

The energy market saw Brent crude trade at $112.03 a barrel and US West Texas Intermediate crude reached $108.96 a barrel, as of 10:09 a.m. Saudi time


Saudi developer Al Akaria’s losses widen by 539% despite higher sales

Saudi developer Al Akaria’s losses widen by 539% despite higher sales
Updated 35 min 16 sec ago

Saudi developer Al Akaria’s losses widen by 539% despite higher sales

Saudi developer Al Akaria’s losses widen by 539% despite higher sales

RIYADH: Saudi real estate developer Al Akaria has seen its losses widen by 539 percent in the first quarter of 2022, despite a surge in sales.

Saudi Real Estate Co., as the firm is formally known, reported SR29.4 million ($7.8 million) in net loss, compared to SR4.6 million in the same period last year, according to a bourse filing.

The company attributed the results to rising finance costs following the suspension of activities in Al Widyan Project as well as higher marketing and other expenses.

Revenues, on the other hand, soared by 54 percent on the year to SR282 million.

Established in 1976, Al Akaria is one of Saudi Arabia's leading real estate firms with a track record of delivering residential, retail, and commercial projects.


Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday
Updated 55 min 49 sec ago

Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday

RIYADH: Saudi Arabia’s main stock market ended Monday with another steep decline, as concerns over the global economy and mixed earnings reports tempered investor optimism.

TASI lost 0.8 percent to 12,235, while the parallel market Nomu added 0.15 percent to 22,363.

Dubai’s stock market led the fall in the Gulf as it shed 2.5 percent, followed by indexes of Abu Dhabi and Kuwait, with a 2.2 and 1.5 percent decline, respectively.

Bourses of Bahrain and Oman edged lower, while Qatar’s QSI bucked the trend to close 1.4 percent higher.

Elsewhere in the Middle East, the Egyptian main index was up 0.5 percent in the previous session.

In energy trading, concerns over a possible recession and China’s COVID-19 curbs caused oil prices to drop on Tuesday.

Brent crude went down to $112.06 a barrel and US West Texas Intermediate retreated to $108.97 a barrel as of 9:06 a.m. Saudi time.

Stock news

SATORP, a joint venture between oil giant Aramco and France’s Total Oil Co., has turned in a profit of SR1.43 billion ($382 million) in the first quarter of 2022

Saudi Real Estate Co.’s losses widened by 539 percent to SR29.4 million in the first quarter despite a surge in sales

Shareholders of Etihad Etisalat Co., known as Mobily, approved the board’s proposal to pay out SR0.85 per share in dividends for 2021

Alkhaleej Training and Education Co.’s losses were trimmed by 33 percent to SR5.09 million in the first quarter of 2022

Alhokair Group saw its losses narrowing by 48 percent in the first quarter to SR31 million

National Gypsum Co.’s profit dropped by 77-percent to SR3.2 million in the first quarter

Basic Chemical Industries Co. said it will not distribute cash dividends to shareholders for 2021

Al Moammar Information Systems Co., also known as MIS, reported a 50 percent drop in quarterly profit to SR4.6 million

Shareholders of Riyadh Cement Co. approved a dividend distribution of SR0.75 for the second half of 2021

Al-Babtain Power and Telecommunication Co. posted a 43 percent profit decline to SR8.7 million in the first quarter

Allied Cooperative Insurance swung into a net loss before Zakat of SR29.6 million in the first quarter, compared to SR3.4 million in profit a year ago

National Metal and Manufacturing Co. slightly widened first-quarter losses from SR7.08 million to SR7.14 million

Raydan Food Co.’s losses were narrowed by 49 percent to SR4.7 million in the first quarter as its accumulated losses reached 48 percent of capital

Scientific & Medical Equipment House reported a 10-percent drop in first-quarter profit to SR16.8 million

Jazan Energy and Development Co. posted a 75 percent profit jump to SR3.56 million for the first quarter of 2022

Salama Cooperative Insurance Co. turned into a net loss of SR6.8 million before Zakat in the first quarter of 2022

Al Jouf Cement Co. submitted a filing to the Capital Market Authority as it seeks to cut capital by SR343 million

Saudi Arabia Refineries Co. swung into losses of SR658,446 in the first quarter of 2022

Middle East Specialized Cables Co.’s first-quarter profits dropped from SR900,000 to SR100,000 despite a 68-percent jump in sales

Amana Cooperative Insurance Co.  got approval from CMA to raise its capital by SR300 million through a rights issue

Development Works Food Co. turned into losses of SR2.26 million last quarter on the back of higher costs

Arabia Insurance Cooperative Co.’s request to raise capital by SR265 million was approved by CMA

Calendar

May 24, 2022

Naseej for Communication and Information Technology Co.’s listing on Nomu

May 25, 2022

End of Amwaj International Co.’s IPO subscription

Aqaseem Factory for Chemicals and Plastics Co.’s listing on Nomu

May 26, 2022

End of Ladun Investment Co.’s IPO book-building

May 30, 2022

Close of Anaam International Holding Group’s rights trading

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription


UAE’s ADNOC, BP and Masdar sign new energy partnership

UAE’s ADNOC, BP and Masdar sign new energy partnership
Updated 24 May 2022

UAE’s ADNOC, BP and Masdar sign new energy partnership

UAE’s ADNOC, BP and Masdar sign new energy partnership

DUBAI: The Abu Dhabi National Oil Company (ADNOC) said on Tuesday it, oil major BP and Abu Dhabi future energy company Masdar will advance their new energy partnership through the development of clean hydrogen and technology hubs.

ADNOC said it, alongside BP, moved to the design phase of the H2Teesside low-carbon hydrogen project, its first UK investment.

Other partnerships included a feasibility study for a low-carbon hydrogen project in the UAE and an expanded ADNOC-BP-Masdar partnership to explore the production of sustainable aviation fuels from municipal waste and green hydrogen in Abu Dhabi.