MENA Project Tracker: South Korean firms to sign agreement for green hydrogen project in Abu Dhabi

MENA Project Tracker: South Korean firms to sign agreement for green hydrogen project in Abu Dhabi
The UAE’s national railway network, Etihad Rail has received bids for a contract to offer preliminary consultancy services. (Shutterstock)
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Updated 22 May 2022

MENA Project Tracker: South Korean firms to sign agreement for green hydrogen project in Abu Dhabi

MENA Project Tracker: South Korean firms to sign agreement for green hydrogen project in Abu Dhabi

RIYADH: Two South Korean firms are set to sign a joint development agreement to advance a major green hydrogen project in Abu Dhabi. Additionally, the UAE’s Etihad Rail has received bids for a planned high-speed rail project connecting Abu Dhabi and Dubai. Also, UAE’s Dubal Holding is partnering with Canada’s Nature Alu to launch a high-purity aluminum plant in the UAE. Meanwhile, Qatar Energy is undertaking clarification discussions with bidders regarding two solar power plants it intends to build.

·      South Korean electric power distribution firm Kepco and South Korean construction company Samsung C&T are expected to sign a joint development agreement later this month to propel the first phase of the 3.7 billion dirhams ($1 billion) green hydrogen-based ammonia production facility to be located in Khalifa Industrial Zone Abu Dhabi. This comes after the technical study and land lease agreements were completed in March, MEED reported. 

·      The UAE’s national railway network, Etihad Rail has received bids for a contract to offer preliminary consultancy services for a high-speed rail project, MEED reported. The project aims to develop a high-speed rail line linking Abu Dhabi and Dubai. The bidders include the US engineering company Aecom, French construction engineering firm Egis, among others. In addition to this, Etihad Rail is also contemplating two more lines: one that joins Abu Dhabi with Al-Ain and another connecting Dubai and Sharjah.

·      The UAE-based investment company, Dubal Holding and Canadian aluminum supplier Nature Alu have signed a memorandum of understanding to launch the UAE’s first of its kind high-purity aluminum production plant, MEED reported. Under the collaboration, both parties will team up to develop the scope of work for the feasibility study with a special focus on technical, commercial, operational, and regulatory details. 

·      State-owned petroleum firm Qatar Energy is set to be undergoing clarification discussions with bidders for the contract to design and construct two solar photovoltaic power projects in the Gulf country. To be located in Ras Laffan and Mesaieed respectively, each solar power plant will have a capacity accumulating to 400 MW, MEED reported, citing industry sources.


Microsoft's $69bn Activision deal under investigation by UK regulator

Microsoft's $69bn Activision deal under investigation by UK regulator
Updated 14 sec ago

Microsoft's $69bn Activision deal under investigation by UK regulator

Microsoft's $69bn Activision deal under investigation by UK regulator

RIYADH: Microsoft Corp.’s $68.7-billion planned purchase of American video game company Activision Blizzard Inc is under investigation by the UK's antitrust watchdog, Bloomberg reported.

The Competition and Markets Authority will decide by Sept. 1 whether the agreement between the US tech giant and the maker of the Call of Duty game series limits competition and increases prices.

The regulators will take notice of Microsoft's ownership of Activision to understand if the deal could limit rivals' access to the company's biggest games.

The US Federal Trade Commission is also reviewing the deal, chair Lina Khan told lawmakers in June.


Saudi Telecom secures official approval for capital increase to $13bn

Saudi Telecom secures official approval for capital increase to $13bn
Updated 8 min 34 sec ago

Saudi Telecom secures official approval for capital increase to $13bn

Saudi Telecom secures official approval for capital increase to $13bn

RIYADH: Saudi Telecom Co. has received the Capital Market Authority’s nod to increase its capital from SR20 billion to SR50 billion ($13 billion).

 


TASI bounces back after hitting its lowest level in 2022: Closing bell

TASI bounces back after hitting its lowest level in 2022: Closing bell
Updated 18 min 26 sec ago

TASI bounces back after hitting its lowest level in 2022: Closing bell

TASI bounces back after hitting its lowest level in 2022: Closing bell

RIYADH: Saudi Arabia’s main index, TASI, wiped out early morning losses in the final trading session before Eid break, adding 0.63 percent to 11,416.

This follows Al Rajhi Capital’s forecast that the Saudi stock market is not expected to suffer sharp declines.

Mazen Al-Sudairy, head of research at Al Rajhi Capital, told Ashraq the oil price will remain above $90, which is beneficial to the Saudi economy and market.

The parallel market, Nomu, finished Wednesday’s session 0.49 percent higher, reaching 21,238 points.

Tanmiah Food Co. led the market gainers with 6.85 percent gain, following its agreement to sell two subsidiaries to US Tyson for SR262.6 million ($70 million).

In the banking sector, the Kingdom’s largest valued bank Al Rajhi climbed 2 percent, while the Saudi National Bank appreciated 1.66 percent.

Saudi British Bank, which was voted the best bank in 2022, advanced 1.59 percent of its share price.

Chemicals maker Petro Rabigh rose 2.31 percent, while Advanced Petrochemical Co. dropped 3.64 percent, after reporting a 37 percent decline in profit for the first half of 2022, hit by raw material costs.

Saudi Aramco, the largest player on the Saudi oil market, slid 0.91 percent, and Methanol Chemicals Co. slipped 1.35 percent.

The National Shipping Co. of Saudi Arabia, known as Bahri, gained 0.78 percent to lead the gainer, following the completion of its SR3.9 billion sukuk offering.

In the energy sector, West Texas Intermediate crude was trading at $100.52 per barrel and Brent crude was trading at $104.55 per barrel as of 3:33 p.m. Saudi time.


Saudi Arabia’s new corporate law supports family firms, SME investments: Official

Saudi Arabia’s new corporate law supports family firms, SME investments: Official
Updated 42 min 51 sec ago

Saudi Arabia’s new corporate law supports family firms, SME investments: Official

Saudi Arabia’s new corporate law supports family firms, SME investments: Official

RIYADH: The new Saudi Companies Law will play a pivotal role in providing an incubating and stimulating environment for investment, especially in family businesses and small and medium enterprises, according to the chairman of the National Center for Family Enterprises.

The new law facilitates procedures and regulatory requirements to stimulate the business environment and support investment, Saudi Press Agency reported citing Ghassan Al-Sulaiman.

According to the new law, founders, partners or shareholders, during or after the company incorporation period, may make one or more agreements regulating the relationship between them and the company. It outlines how the heirs of these entrepreneurs can join the company.

Additionally, the law allows these entrepreneurs to prepare a family charter that includes the organization of family ownership in the company, its governance, management, work policy and employment of family members.

The family charter also specifies the mechanism for distributing profits, disposing of shares, and settling disputes.

The family agreement or charter is binding and may be part of the company’s articles of incorporation or articles of association. But it is stipulated that it does not violate the company’s law or articles of association.

Contracts, clearances and other documents issued by the company must contain the company’s name, form, head office address and email address, if available, and its registration number with the commercial registry.

They also must include the company’s capital and the paid-up amount, except for the Solidarity Company and the Simple Partnership Company, and the phrase ‘under liquidation’ added to the company’s name during the liquidation period.

Al-Sulaiman referred to the role of the National Center for Family Enterprises in cooperation with the employees of the Ministry of Commerce and their participation in the opinion and contribution to the formulation of the new corporate system to serve family businesses, SPA said.

The Saudi Cabinet approved on June 28 the new corporate law allowing the creation of a new type of company in the Kingdom to boost entrepreneurship.

According to SPA, the new corporate system and its provisions and procedures enhance the sustainability of more than 538,000 family establishments, constituting 63 percent of the total establishments operating in the Kingdom.

A study by the center revealed that these family businesses contribute approximately SR810 billion ($215.8 billion) to the Kingdom’s gross domestic product.

 


UAE non-oil sector sees input cost rises to 11-year high in June: S&P Global

UAE non-oil sector sees input cost rises to 11-year high in June: S&P Global
Updated 49 min 52 sec ago

UAE non-oil sector sees input cost rises to 11-year high in June: S&P Global

UAE non-oil sector sees input cost rises to 11-year high in June: S&P Global

RIYADH: Rising oil prices and inflationary pressures have taken a toll on the UAE’s non-oil economy, with businesses witnessing their input costs increasing at the fastest pace for 11 years at the halfway point of 2022, according to S&P Global. 

"UAE businesses came under increased pressure from rising input costs in June, as a surge in fuel prices drove the fastest rate of cost inflation in exactly 11 years,” said David Owen, an economist at S&P Global Market Intelligence.

He said more than twice as many surveyed firms indicated a rise in their expenses compared to May, leading many to curb spending on inputs. 

As businesses are grappling with rising operating and manpower expenses, this forced them to cut their purchases and stockpile, however, companies continued to see a robust increase in new orders in June. 

Although the UAE Purchasing Managers' Index— which is an indicator of operations in the non-oil private sector— is well beyond the crucial 50.0 mark, it has witnessed a decrease from 55.6 in May to 54.8 in June.

Nevertheless, the non-oil sector has been growing since the easing of COVID-19 restrictions over the past 19 months.

To combat inflationary pressures and consumer speculation, firms have kept their prices at a two-month low in June, while burdening themselves with the rising input prices.

Owen said the latest data suggested that firms were unwilling to pass higher costs on to customers in June, “as output charges were reduced at the fastest rate in over a year-and-a-half.” 

Additionally, firms have integrated discounts to maintain their competitive edge.

And after a six-month high in the rate of sales growth in May, high inflation and interest rates pushed down order volumes in June to their slowest pace since January.

Moreover, increased economic activity in the second quarter required firms to expand their staff capacity at higher wages, as average wages increased at the fastest pace for over four years.

This increase in input prices is a direct effect of higher fuel prices, S&P Global reported.

Despite the decrease in purchasing activity in June, it said firms and consumers convey a positive outlook on the future activity as the world continues to recover from the pandemic’s recession.

"While firms remained positive about future activity, the survey data suggested that they are unlikely to maintain cost margins at the current level," added Owen.