Saudi Arabia, UAE consumers spending on eating out to rise above global average: Toluna survey

Saudi Arabia, UAE consumers spending on eating out to rise above global average: Toluna survey
Eating out spending is expected to rise for 45 percent of people in the UAE and 41 percent in Saudi Arabia (Shutterstock)
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Updated 01 June 2022

Saudi Arabia, UAE consumers spending on eating out to rise above global average: Toluna survey

Saudi Arabia, UAE consumers spending on eating out to rise above global average: Toluna survey

CAIRO: Consumers in Saudi Arabia and the UAE are set to spend more on vitamins and eating out in coming months than the global average despite inflationary pressure, according to a new survey.

Market research company Toluna published the findings as part of its ‘Inflation’s impact on global consumers’ report.

According to the research, only 49 percent of Saudi Arabia consumers have seen higher grocery prices, compared to 57 percent in the UAE.

While 33 percent of consumers globally see the price as the main criteria for shopping for groceries, 24 percent in Saudi Arabia prioritize quality standards as the prime criteria when choosing purchasing food.

UAE and Saudi residents are more concerned about the energy crisis and price hikes in the country, compared to global average.  

Spending is expected to rise for...

  • Vitamins and minerals: 47 percent of the UAE and 42 percent of Saudi-based respondents compared to only 27 percent on average globally
  • Eating out: 45 percent in the UAE and 41 percent in Saudi Arabia versus 30 percent globally
  • Clothes: 42 percent in the UAE and 41 percent in Saudi Arabia expect their spending on clothes to increase, respectively compared to 29 percent globally
  • Spending during holidays: 40 percent in the UAE and 39 percent in Saudi Arabia versus 31 percent globally

Rising energy bills

  • Some 77 percent and 75 percent of respondents in the KSA and UAE respectively versus only 69 percent globally.
  • Some 46 percent of the UAE respondents and 36 percent of their Saudi-based peers confirmed higher spending on smart solutions to reduce energy waste. This is versus 24 percent on average globally.

A more affordable spending strategy

  • Some 40 percent of the UAE respondents and 36 percent of those in Saudi Arabia confirm more frequent store visits help avoid product wastage, in comparison to the 29 percent on average globally.
  • Similarly, 43 percent and 39 percent of UAE and Saudi Arabia respondents, respectively, change supermarkets to a cheaper alternative relative to 31 percent globally.
  • UAE residents will be willing to give up premium product purchases and cinema visits. Saudis on the other hand, are primarily willing to forego cinemas and eating out. 
  • Residents of both countries are not likely to reduce spending on health and fitness activities or on mobile phone contracts.

This study was conducted through an online questionnaire where 14,106 interviews were taken globally, including 500 interviews in the UAE, and 504 interviews in Saudi Arabia, according to Toluna.


Mexico minister sees ‘infinite opportunities’ in Saudi Arabia

Mexico minister sees ‘infinite opportunities’ in Saudi Arabia
Updated 18 sec ago

Mexico minister sees ‘infinite opportunities’ in Saudi Arabia

Mexico minister sees ‘infinite opportunities’ in Saudi Arabia

RIYADH: Mexico's Deputy Finance Minister has affirmed his country’s interest in strengthening its economic ties with Saudi Arabia, saying there are “infinite opportunities” in a rapidly transforming nation. 

During a two-day visit to Riyadh, Gabriel Yorio Gonzalez said that Mexico wants to be a partner as the Kingdom rapidly transforms.

“We do see infinite opportunities for partnering … to strengthen ties, including sustainable financial markets,” Gonzalez said. “We have shared interest to increase trade, food security, energy transition, sustainable infrastructure, and water.” 

The minister visited the Kingdom from May 28-May 29 as a part of a Gulf-wide tour with the mission of attracting inward investment in Mexico and strengthening economic cooperation with the Gulf states. 

“We are expecting to build a longstanding relationship with Saudi Arabia, in this sense, increasing economic and financial cooperation is key,” he said. “We want a vibrant presence in this beautiful country. 

“This is the first time Mexico sent a delegation (from) the Ministry of Finance and the Ministry of Foreign Affairs (to) Saudi Arabia.

“We agreed to bring together firms and enterprises to identify synergies. Cooperation will focus on culture, tourism, water desalinization,” he added.

“Both countries are engaging in infrastructure projects that will be transformative for our people, and for that, we will need to mobilize resources,” he said.

“Currently, Mexico is benefiting from the nearshoring trend, international firms are relocating to our country to take advantage of the free trade agreements and economic fundamentals.” 

During their visit to Saudi Arabia, the Mexican delegation visited NEOM’s “The Line” exhibition and King Abdullah Financial District.

The Mexican Embassy said that the visit was one of the commitments made by the Foreign Minister, Marcelo Ebrard, during a visit in March of last year as the two countries marked 70 years of diplomatic relations.

The Vice Foreign Minister, Carmen Moreno Toscano, who was also on the more recent trip, said that Mexico was undergoing a deep transformation like Saudi Arabia, “especially transitioning towards equality, prosperity, and environmental justice.”


Saudi Arabia’s merchandise exports soared 48.9% to $410bn in 2022

Saudi Arabia’s merchandise exports soared 48.9% to $410bn in 2022
Updated 31 min 29 sec ago

Saudi Arabia’s merchandise exports soared 48.9% to $410bn in 2022

Saudi Arabia’s merchandise exports soared 48.9% to $410bn in 2022

RIYADH: Saudi Arabia’s merchandise exports increased by 48.9 percent year on year in 2022 to hit SR1.54 trillion ($410 billion), driven by a rise in oil exports, according to the latest report released by General Authority for Statistics. 

The GASTAT report noted that the Kingdom’s oil exports soared by 61.8 percent in 2022 to SR1.22 trillion, compared to SR758.1 billion in the previous year. 

The report further noted that the share of oil exports in total exports increased from 73.2 percent in 2021 to 79.5 percent in 2022.   


World comes together to tackle climate issues in Helsinki

World comes together to tackle climate issues in Helsinki
Updated 30 May 2023

World comes together to tackle climate issues in Helsinki

World comes together to tackle climate issues in Helsinki
  • Over 2,000 participants from more than 100 countries are attending the World Circular Economy Forum
  • One of the issues addressed was about being more organized with our resources and using them wisely

HELSINKI: Climate change, pollution, excess waste, renewable energy and more were on the agenda as expert speakers, environmentalists and business moguls gathered to discuss and tackle the issues affecting planet Earth on Tuesday’s first day of the World Circular Economy Forum in Helsinki.

The circular economy and how companies can adopt the model was discussed, as many companies would like to embrace it but lack the knowledge. They need examples in order to be inspired and to learn.

One of the issues addressed was about being more organized with our resources and using them wisely. At the moment, the world has an excess of resources that are poorly managed and an influx of food insecurity, with an estimated 2.3 billion people — about 29 percent of the global population — facing dangerous levels of food security.

The momentum and drive behind the forum was to equip businesses with the know-how and enthusiasm to embrace the circular economy.

Ahead of the forum, Arab News spoke to Anne Vasara, the Finnish ambassador for the circular economy and energy. She said: “It’s really a super week. We have so many events going on around the World Circular Economy Forum because, of course, this forum itself is the flagship of the circular economy of Finnish origin, of the Finnish Innovation Fund, SITRA, and the Finnish government, and it has been for several years.”

We know that what we need to do is find solutions to many global environmental problems, of which one of the most urgent at the moment is climate change.

Anne Vasara

Finnish ambassador for the circular economy and energy

She explained that the forum aims to bring together “all the most important actors, organizations, governments, private sector, academia related to the circular economy … (There) will be a record participation of over 2,000 participants from all over the world. And this is really something which is crucial for the circular economy because you cannot do it on your own.”

Vasara added: “You need wide international cooperation because we are talking about the planetary crisis, we are talking about solutions. How, in a positive manner, by the circular economy, we can bring solutions to climate change, to biodiversity loss and the depletion of all natural resources. So, this is really a week of possibilities and solutions.”

Kerstin Stendhal, Finland’s special envoy for climate change, told Arab News: “It’s come at a very good time to Helsinki, because at the moment what we are seeing is a lot of things happening in the international environmental arena. Next week, we will be going to the Bonn Climate Change Conference, which will be preparing for the extremely important forthcoming COP28, which will be held in Dubai.

“And so, the world is coming together … We know that what we need to do is find solutions to many global environmental problems, of which one of the most urgent at the moment is climate change. That’s why I think it’s also really, really good that this week we will be having the World Circular Economy Forum here in Helsinki.”

Stendhal added: “What we also need to do is, while we recognize the problems and we know very well about the problems — the (Intergovernmental Panel on Climate Change) has told us about the climate change challenges that we are faced with — we also know that we have a lot of solutions. And these are the ones that we will need to be communicating about in order to both combat, to lessen emissions, to adapt to a world that is changing, whether we want it or not. And also to prepare a world which is fit for our future generations and children.”

This is the seventh edition of the World Circular Economy Forum and 20 international organizations are contributing to the issues being discussed. About 2,000 participants from more than 100 countries are attending in person and another 6,000 are viewing online.

Last year’s forum was held in Kigali, Rwanda. Rwanda’s Environment Minister Dr. Jeanne d'Arc Mujawamariya said in a speech at this year’s event: “(We have seen) trailblazing circular solutions from Africa. The global circular economy movement is growing. Last year’s forum launched an action plan and roadmap — implementation is on the way.”


Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market
Updated 30 May 2023

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

RIYADH: The Kingdom’s housing market will get a fresh stream of liquidity, with Saudi Real Estate Refinance Co. announcing SR3.5 billion ($933 million) in sukuk issuances. 

The latest issuance of the SRC, owned by the Public Investment Fund, marked the sixth tranche under its upsized SR20 billion sukuk program. 

The real estate finance company will keep boosting market liquidity and assisting lenders and investors, which will stabilize the Saudi mortgage market, stated SRC CEO Fabrice Susini.   

Furthermore, this move will also speed up the rise of homeownership in the country, he added. 

“The positive response from investors to SRC’s latest sukuk issuance is a clear testament to the strength of the Kingdom’s housing market and economy,” Susini said.

“As SRC continues to refinance existing financings for financiers, we are proud to contribute to developing a robust secondary home financing market that supports the efficiency and stability of the primary housing market,” the CEO continued.   

Earlier this month, SRC received an “A-” classification at the level of global credit and “ksaAAA” at the level of local credit with a stable outlook from the credit rating agency S&P Global.   

According to the rating company, an obligatory rated “A-” falls under an upper-medium category, indicating strong creditworthiness and a good capacity to meet its financial commitments.   

On the other hand, a rating of “AAA” on the national scale means the debtor’s capacity to meet its financial commitments on the obligation relative to other national debtors is extremely strong.   

According to the SRC website, the real estate financing company is rated “A-” stable by Fitch Ratings and “A2-” stable by Moody’s Investors Service. 
Founded in 2017 by the Kingdom’s PIF, SRC’s primary role is to provide banks and real estate finance companies with liquidity, enabling growth in the home financing sector to increase homeownership rates among Saudi citizens. 

The company issued two sukuks in 2022, the first tranche totaling SR4 billion in April and the other SR3 billion in September. 


Closing bell: Saudi main index closes flat at 11,140 points

Closing bell: Saudi main index closes flat at 11,140 points
Updated 30 May 2023

Closing bell: Saudi main index closes flat at 11,140 points

Closing bell: Saudi main index closes flat at 11,140 points

RIYADH: Saudi Arabia’s Tadawul All Share Index remained steady for the second consecutive day, gaining 4.31 points or 0.04 percent to close at 11,139.98. 

Parallel market Nomu, however, dropped 64.82 points to 20,943.02, while the MSCI Tadawul Index closed 0.23 percent up at 1,483.78. 

The total trading turnover of the benchmark index was SR4.94 billion ($1.32 billion) as 74 listed stocks advanced, while 130 retreated.

The top-performing stock of the day was National Medical Care Co., as its share price surged 8.57 percent to SR114. 

Abdullah Al Othaim Markets Co. and Saudia Dairy and Foodstuff Co. also performed well on Tuesday, as their share prices rose by 5.22 percent and 4.44 percent, respectively. 

Buruj Cooperative Insurance Co. was the worst performer; its share price dropped 3.98 percent to SR20.24.

Savola Group and Al Alamiya for Cooperative Insurance Co. were the worst performers, whose share prices fell 3.93 percent and 3.89 percent, respectively. 

On Tuesday, the share price of Saudia Dairy and Foodstuff Co. hit an all-time high of SR318.80 since its debut in Tadawul in 2005. The company, however, closed its trading at SR306 at the end of today’s session. 

Meanwhile, First Milling Co. has announced that it has set the initial public offering final price at SR60, implying a market capitalization of SR3.3 billion. 

In a statement to Tadawul, the company said the IPO coverage ratio reached 68.9 times.

“The impressive demand by participating parties for First Mills’ offer shares is a resounding validation of the company’s investment thesis. They appreciate the company’s long-term value creation potential supported by its market leadership, diverse product portfolio, outstanding financial performance and effective leadership team,” said Abdullah Ababtain, CEO of First Milling Co. 

On Tuesday, Saudi Aramco Base Oil Co., also known as Luberef, announced that it signed an amendment to its feedstock agreement with Saudi Arabian Oil Co. to supply additional 5,000 barrels per day of reduced crude oil. 

In a bourse filing, Luberef said that this amendment is expected to increase the total quantity of RCO received in its Yanbu facility from 45,000 bpd to 50,000 bpd, subject to product availability.

“This increase in RCO quantity is part of a business transformation program which is in line with Saudi Aramco’s transformation initiative for its joint ventures,” said Luberef in the statement. 

The Saudi Public Transport Co. announced the contract sign-off with the Jazan municipality for operating the public transport network in the region at a contract value of SR93 million.

SAPTCO said that the project will positively impact the company’s revenues in the second half of 2023.