MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project
Jeddah Central Development Co. has appointed local Modern Building Leaders for a major real estate project. (Shutterstock)
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Updated 25 May 2022

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

MENA Project Tracker: Jeddah Central Development appoints Modern Building Leaders for $20bn project

RIYADH: Jeddah Central Development Co. has appointed local Modern Building Leaders for a major real estate project.

Abu Dhabi Investment Office is also partnering with Abu Dhabi Department of Education on the construction of three new schools.

Additionally, Oman’s Salalah Free Zone is collaborating with Salalah Petroleum Co. for a mega petrochemicals plant. The deadline for Libya’s Tobruk terminal upgrade has been extended.

Meanwhile, China’s Longi will supply solar photovoltaic panels to an independent power project in Rabigh, Saudi Arabia.

·      Jeddah Central Development Co., a wholly-owned unit of Saudi Arabia’s sovereign wealth fund Public Investment Fund, has awarded local Modern Building Leaders, the development works contract for the first phase of its major SR 75 billion ($20 billion) Central Jeddah Project, Trade Arabia reported. Under the terms of the contract, MBL will be accountable for the infrastructure, marine works, relocation of water, electricity, and waste management infrastructure services. The project is set to be developed on a 5.7 million square meter area in the Saudi port city of Jeddah.

·      Abu Dhabi Investment Office is partnering with Abu Dhabi Department of Education on the development of three schools in Zayed city, Trade Arabia reported. The project will be led by Belgian construction firm Besix as well as Australian infrastructure investment business Plenary Group. Scope of the work for the project includes the design, construction, finance, and maintenance of three campuses that are capable of accommodating 5,360 students in the city.

·      One of Oman’s most important industrial hubs, the Salalah Free Zone, has signed a protocol with domestic Salalah Petroleum Co. to establish a $88 million petrochemicals production facility, MEED reported. The petrochemicals plant – which will be located within the Salalah Free Zone – will spread over an area of 78,000 square meters. In addition to this, output from the facility is set to be exported via the Port of Salalah. 

·      The deadline to submit the prequalification documents for Libya’s $300 million Tobruk Oil terminal modernization program has been pushed to June 7, from 21 of March previously, MEED reported. This is mainly attributed to political and security instability in the African country. A subsidiary of the country’s National Oil Corporation, Brega Petroleum Marketing Co. is the client working on the project.

·      Chinese photovoltaic company Longi has been awarded a contract to supply solar photovoltaic panels to South Rabigh Renewable Energy CO.’s solar photovoltaic independent power project in Saudi Arabia, MEED reported. The panel cells are forecasted to entail a capacity of up to 400 MW alternating current.


Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May
Updated 13 sec ago

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

RIYADH: Saudi Arabia’s M3 monetary aggregate, known as “broad money,” grew in May by SR171.6 billion ($45.7 billion) from the same month a year ago to SR2.38 trillion.

M3 money supply, a benchmark indicator for liquidity in Saudi Arabia’s monetary system, increased by 7.8 percent from SR2.21 trillion in May last year, according to data published on Saudi Central Bank website on Tuesday.

The annual growth rate in May was the slowest since December 2021. It slowed down from 8.7 percent in April. 

Looking at the year-on-year changes in components of the M3 aggregate, time and saving deposits grew by SR78.3 billion to SR517.4 billion. Other quasi-money deposits and demand deposits increased by SR60 billion and SR38.4 billion to SR297.8 billion and SR1.36 trillion, respectively. Currency outside banks decreased by SR5.6 billion to SR206.6 billion over the same period.

The M3 money supply slipped 0.5 percent from its level in April. 


SAMA’s net foreign assets remain virtually unchanged at $435.5bn

SAMA’s net foreign assets remain virtually unchanged at $435.5bn
Updated 44 min 48 sec ago

SAMA’s net foreign assets remain virtually unchanged at $435.5bn

SAMA’s net foreign assets remain virtually unchanged at $435.5bn

Net foreign assets of Saudi Arabia's central bank remained virtually unchanged at the end of May, standing at SR1.63 trillion ($435.5 billion), according to a monthly statistical bulletin from the Kingdom's regulator.

The figure represents an increase of just SR289 million from April for the bank, also known as SAMA.

The institution’s total assets grew in May by SR19.2 billion to reach SR1.86 trillion. 

In April, those assets grew by 1 percent, according to data published on the bank’s website on June 28.

SAMA's deposits with banks abroad and miscellaneous assets increased by SR17.4 billion and SR12.5 billion, respectively, while the central bank's investment in foreign securities fell by SR13.4 billion to SR1.101 trillion over the same period.


Saudi Arabia fuels 34% of OPEC exports increase in 2021

Saudi Arabia fuels 34% of OPEC exports increase in 2021
Updated 58 min 51 sec ago

Saudi Arabia fuels 34% of OPEC exports increase in 2021

Saudi Arabia fuels 34% of OPEC exports increase in 2021

CAIRO: Saudi Arabia was responsible for a third of the 77 percent increase in exports from the Organization of the Petroleum Exporting Countries in 2021, according to the latest figures. 

OPEC’s annual statistical bulletin showed the Kingdom contributed to 34 percent of the total rise in petroleum exports, followed by Iraq, Kuwait and the UAE — with 15, 9 and 10 percent of the total share respectively in 2021.

Production

While the overall 2021 world crude oil production rose by 0.52 million barrels per day, OPEC countries alone produced 0.7 million more barrels per day compared to the previous year.

That is a 0.8 percent rise in total world production of crude oil and a 2.7 percent rise in OPEC production, meaning non-OPEC countries saw a fall in crude oil by 0.4 percent.

Demand

World demand for oil saw an upward turn,  growing by 6.3 percent, with the primary contributors being the Americas, Europe and China.

Of that world demand, distillates and gasoline accounted for around 55.2 percent whereas Residual fuel oil requirements totaled around 6.6 percent in 2021.

OPEC and its allies struggled to meet the level of demand therefore driving oil prices higher. 

Exports

The aggregate level of crude oil exported by OPEC countries saw a decline of 0.54 bpd.

Some 9 out of the 13 OPEC members saw a drop in the level of crude oil exports in 2021. 

Of the remaining four  — Algeria, Iran, Iraq, and Libya — the latter saw the largest spike in crude oil exports compared to 2020.

Rigs and Wells

The oil exporting members saw a decline in the number of completed wells by 280, the lowest recorded number since 2017.

While OPEC countries produce around 40 percent of the world’s crude oil, the 47 active rigs added in 2021 only amount to 10 percent of the total increase in rigs compared to 2020.

The US alone built 239 of the 460 new active rigs manufactured in 2021.

World proven oil reserves reported 1.55 billion barrels indicating almost no change over the 2020-21 time period.

As for gas reserves, total world gas fell by 0.5 billion cubic meters of natural gas whereas OPEC members recorded an increase of 0.8 bcm compared to last year.


Saudi Aramco to supply fuel at lower prices to Kenyan oil firm NOCK

Saudi Aramco to supply fuel at lower prices to Kenyan oil firm NOCK
Updated 28 June 2022

Saudi Aramco to supply fuel at lower prices to Kenyan oil firm NOCK

Saudi Aramco to supply fuel at lower prices to Kenyan oil firm NOCK

RIYADH: State-owned National Oil Corp. of Kenya has signed a deal with Saudi oil giant Aramco to import fuel at lower prices than the global costs of crude, local media reported.

This comes as part of the government’s efforts to lower pump prices in the African state, Business Daily reported. 

As per the government-to-government deal, NOCK will import 30 percent of Kenya’s monthly petroleum requirements from August.

“We already signed the memorandum of understanding and the next phase is negotiating the contract terms, we are waiting on them as from last Sunday,” NOCK CEO Leparan ole Morintat told Business Daily. 

“The plan is to start trials in August, for two months and see the impact of the exclusive prices that Saudi Aramco will be giving us. Then we will fully start in October,” he added. 

The duration of the contract is not disclosed. 

Saudi Aramco will finance the shipments or provide the product with an extended credit period and the Kenyan company will pay within 60 and 90 days.


First Abu Dhabi Bank committed to facilitate $75bn for sustainable financing, says top official 

First Abu Dhabi Bank committed to facilitate $75bn for sustainable financing, says top official 
Updated 28 June 2022

First Abu Dhabi Bank committed to facilitate $75bn for sustainable financing, says top official 

First Abu Dhabi Bank committed to facilitate $75bn for sustainable financing, says top official 

RIYADH: First Abu Dhabi Bank has reiterated its commitment to lend, invest, and facilitate business over $75 billion by 2030 to activities focused on sustainable solutions as the world moves towards energy transition using green sources.   

While speaking at the MEA Energy Week, Sarah Usmani, managing director, and head of the sustainable asset and project finance at FAB, said that the bank is very keen to support the energy transition which is currently happening in the Middle East.

She said there should be a partnership between the public and private sectors to make this energy transition happen in the most efficient manner.

“Energy projects are driven by governments. However, the private sector will also play an important role in the future,” Usmani added.

She noted that the region was dependent on hydrocarbons for 100 years, “so the transition here is not easy.” 

“There is a lot to do, and lots of investments to come,” added the FAB executive.

According to Usmani, green hydrogen is going to be a huge area of growth in the region. 

She expects the hydrogen market to expand in the next two to three years.

Usmani also insisted that the willingness to support and adopt new technologies is also necessary for a sustainable future.