Saudi PMI unchanged at 55.7 in May: S&P Global

The increase in prices was also accompanied by a rise in input costs at the second quickest pace in a year and a half — aside from the uptick in March related to the aftermath of Russia’s invasion of Ukraine.
The increase in prices was also accompanied by a rise in input costs at the second quickest pace in a year and a half — aside from the uptick in March related to the aftermath of Russia’s invasion of Ukraine.
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Updated 07 June 2022

Saudi PMI unchanged at 55.7 in May: S&P Global

Saudi PMI unchanged at 55.7 in May: S&P Global

RIYADH: Saudi Arabia’s Purchasing Managers’ Index remained unchanged from April at 55.7, according to a press release from S&P Global.

The headline index figure signaled a marked expansion in activity and new orders in Saudi non-oil businesses, with lingering concerns that inflation could obstruct demand in global and domestic markets.

New business rose at a slightly quicker pace than in April, as demand started to pick up with a recovering post-pandemic economy, according to the press release.

“The continued strength of the domestic non-oil economy encouraged firms to pass through higher input costs to their customers in May, with the latest PMI data indicating another solid increase in selling prices due to greater fuel, material and transport costs,” it added, citing David Owen, an economist at the firm.

The increase in prices was also accompanied by a rise in input costs at the second quickest pace in a year and a half — aside from the uptick in March related to the aftermath of Russia’s invasion of Ukraine.

This is triggered by the global inflationary measures, which was reflected by higher fuel, material and freight prices. 

Constrained supply posed another limitation to supplier performance improvement, as backlogs of work at non-oil companies during May increased, marking the first incomplete business since COVID-19 pandemic began.

As such, employment numbers also showed a slight increase for the second straight month, according to the report.

“Reflecting these risks, the outlook for future activity remained notably weak, with just 11 percent of respondents signaling expectations of a rise in output by May 2023, less than half the survey’s long-run trend,” Owen pointed out.


Dar Al Arkan bags contract to develop ROSHN’s residential units in SEDRA

Dar Al Arkan bags contract to develop ROSHN’s residential units in SEDRA
Updated 31 sec ago

Dar Al Arkan bags contract to develop ROSHN’s residential units in SEDRA

Dar Al Arkan bags contract to develop ROSHN’s residential units in SEDRA

RIYADH: Saudi developer Dar Al Arkan has won a contract to develop residential units in SEDRA, an integrated community project being developed in northern Riyadh by national developer ROSHN, a Public Investment Fund-backed company.

This brings two of the leading property developers in Saudi Arabia together as both look to combine their expertise to bring more variety to ROSHN’s housing offering at SEDRA. 

Being developed in eight phases, SEDRA is set to add 30,000 residential units to Riyadh’s housing stock once completed in three years. The project is being constructed over 20 million square meters of neighborhoods. 

A flagship development of ROSHN, SEDRA recently won the ‘Residential Project of the Year’ award at the Construction Week Middle East 2022 Awards held in Dubai. 

The project will offer a diverse mix of residences built around a ‘work, live and play’ model, the company said in a press release, adding that it will foster a sustainable community.

ROSHN said it seeks to bring a new concept of integrated, human-centric, livable communities to the Kingdom.  SEDRA’s facades are influenced by the ‘Salmani’ style of architecture, it said. The company said the project will have a blend of tradition and modernity, while it will have natural features including a wadi and an acacia forest. 

“Bringing the ROSHN concept to life requires novel ways of thinking, new partnerships with the top entities in their fields, and innovative solutions to address the challenges of the future. As a development sector enabler, ROSHN leverages its partnerships to ensure we bring the highest quality homes to markets, across the Kingdom,” said ROSHN Group CE, David Grover. 

Dar Al Arkan Properties is fast growing its portfolio across the Kingdom and expanding its international footprint. It boasts a track record of delivering 15,000 residential units and over 50,000 square meters of commercial space. 

ROSHN's ethos is to develop communities that look both to Saudi heritage and the evolving aspirations of the Saudi people. The master developer operates across a broad range of asset classes and land uses, including residential, retail, commercial, hospitality, and public and civic facilities.


TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 
Updated 16 min 28 sec ago

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

RIYADH: Saudi Arabia’s benchmark index fell on Sunday as investors shied away from the market due to dampening business sentiment and uncertainty in global demand. 

The Tadawul All Share Index fell 142 points to close at 10,796, while the parallel market, Nomu, plunged 300 points to finish at 18,866. 

Of the 219 companies listed on TASI on Sunday, 33 advanced, while 173 declined. The total trading turnover closed at SR2.58 billion ($690 million). It had fallen to SR1.7 billion in the first three hours of trading on Sunday. 

The first important announcement on the bourse came from SNB Capital, the lead manager of Saudi Aramco Base Oil Co., also known as Luberef, intending to proceed with an initial public offering and listing of its ordinary shares on the primary market. 

The statement said the offer is expected to sell existing shares and result in a free float of 29.65 percent of Luberef share capital or 50.05 million ordinary shares. 

The offering price will be determined after the book-building period, the statement added. 

Middle East Paper Co. also announced the approval of its shareholders to its board’s recommendation to increase capital by 33.3 percent by granting one bonus share for every three shares held during an extraordinary general meeting on Nov. 24. 

The company shares, however, fell 2 percent to close at SR28.6 after reaching SR27.70. 

Meanwhile, Yaqeen Capital, the financial adviser and lead manager for the IPO of Molan Steel Co. on the Nomu-Parallel Market, announced that the issue was oversubscribed.  

The steel company offered 532,410 shares, representing 20.02 percent of its capital. The final offer price was set at SR 24 per share, the statement added. 

From an industry standpoint, the Pharma, Biotech & Life Science index fell for the bearish prowl as it fell 44 points to close at 3,015. Interestingly, the Healthcare Equipment & Services index rose 52 points to 8,872.  

Tourism Enterprise Co. has been under the spotlight in the top gainers’ list on TASI for a while now. It increased by 2.9 points to close at SR32.05. The other gainers included Dr. Sulaiman Al Habib Medical Services Group, Arabian Drilling Co and Alhokair Group for Tourism and Development. 

The top fallers were Malath Cooperative Insurance Co., United Wire Factories Co., Al Yamamah Steel Industries Co, Red Sea International Co. and Nama Chemicals Co. 


Petromin’s National Motor Co. wins ‘Best Automotive Dealer’ award in the Kingdom for 2022

Petromin’s National Motor Co. wins ‘Best Automotive Dealer’ award in the Kingdom for 2022
Updated 17 min 21 sec ago

Petromin’s National Motor Co. wins ‘Best Automotive Dealer’ award in the Kingdom for 2022

Petromin’s National Motor Co. wins ‘Best Automotive Dealer’ award in the Kingdom for 2022

RIYADH: Petromin Corp’s subsidiary, National Motor Co., has been named as the ‘Best Automotive Dealer’ in the Saudi automotive sector for 2022.

The National Motor Co. received the accolade during an awards ceremony held in Jeddah, organized by PR Arabia.

Terence Byrne, CEO, National Motor Co., said, “We are happy to continue on the path of growth, through the resolute processes that were adopted years ago. With the principal aim of serving our customers, we are working to expand the coverage of our sales and after-sales services throughout the Kingdom. We aim to constantly be closer to our clientele in a bid to build bridges of trust and loyalty with them.”

The National Motor Co. holds a structured group of high-profile global automotive brands within its dealership portfolio in Saudi Arabia, such as Nissan, Jeep, Dodge, Chrysler, RAM, Alfa Romeo, Abarth, Fiat, Mopar and Foton.

The National Motor Co.'s parent company, Petromin, is ramping up its electric vehicle interests in the Kingdom with its new venture Electromin.

In an exclusive interview with Arab News earlier this year, Kalyana Sivagnanam, group CEO of Petromin, called it a bold move since customers in the Kingdom are still reluctant to buy EVs.

“While it is a bold move, I think it is very timely. We also have plans to expand this further beyond 100 stations and, in due course, we will make that announcement as well,” Sivagnanam told Arab News.

Saudi Arabia has committed to achieving net-zero carbon emissions by 2060. The government wants three of every 10 vehicles in Riyadh to be EVs by 2030. Globally, passenger electric cars are surging in popularity, and the Paris-based International Energy Agency estimates that 13 percent of new cars sold in 2022 will be electric.


ACWA Power signs MoU to back Thailand’s decarbonization journey 

ACWA Power signs MoU to back Thailand’s decarbonization journey 
Updated 40 min 38 sec ago

ACWA Power signs MoU to back Thailand’s decarbonization journey 

ACWA Power signs MoU to back Thailand’s decarbonization journey 

RIYADH: Saudi Arabia-based energy company ACWA Power has entered into an agreement to support Thailand’s decarbonization ambitions through a green hydrogen and derivatives development project. 

The firm signed a memorandum of understanding with PTT Public Co. Limited, Thailand’s national integrated energy company; and the Electricity Generating Authority of Thailand, an electric power-related state-owned enterprise, according to a press release. 

As part of the terms of the MoU, ACWA Power, PTT, and EGAT will begin collaborating exclusively on a comprehensive plan to establish large-scale, renewable-powered green hydrogen and derivatives production facilities in Thailand for local energy consumption and global market export purposes.  

With an estimated investment of $7 billion, the Southeast Asian country is targeting hydrogen production of around 225,000 tons annually which is equivalent to 1.2 million tons of green ammonia yearly. 

Paddy Padmanathan, vice chairman and CEO of ACWA Power, said: “We are excited at the prospect of supporting green hydrogen and derivatives exploration and advancement in Thailand, a nation that shares our vision for reliably and responsibly delivering clean energy that drives the sustainability agenda and complements essential climate action worldwide.” 

Thailand is aiming to use green hydrogen as an alternative energy source in the upcoming years in an attempt to fulfill its vow of achieving carbon neutrality by 2050 and net zero emissions by the year 2065, the press release said. 

Moreover, it added that using green hydrogen will help in supporting emissions abatement imperatives and in building a low-carbon circular economy at a domestic level. 

ACWA Power has been expanding its portfolio rapidly, with its asset hitting $75 billion as it posted a 110 percent profit jump in 2022 so far, according to Padmanathan. 

The company is set to reach assets of $230 billion by 2030, the executive told CNBC Arabia. 

While the firm’s current capacity currently stands at 42 gigawatts, he said there exists the capacity to increase the volume by up to three times to reach 150 gigawatts. 

Currently, the company produces 6 million cubic meters of desalinated water, but that figure is estimated to hit 15 million cubic meters by 2030, Padmanathan revealed. 

ACWA Power, which is part-owned by Saudi Arabia’s Public Investment Fund, is also currently producing up to 240,000 tons of green hydrogen, he added.   

A recent bourse filing revealed the energy giant’s profits reached SR883.4 million ($235.1 million) during the first nine months of 2022, up from SR419.9 million during the same period last year. 

The rise was driven by lower costs of development, provisions, and write-offs during the current period. 

It was also attributed to robust growth in ACWA Power’s operating income before impairment and other expenses, as well as lower profit on account of one-off or non-routine expenses during the same period in the year prior, according to a statement. 

Operating income in the nine-month period was SR1.8 billion, an 11 percent increase of SR189 million, compared to the same period last year, which was achieved despite plant outages in four facilities. 


Trade remedies system to boost competitiveness, says Saudi commerce minister 

Trade remedies system to boost competitiveness, says Saudi commerce minister 
Updated 27 November 2022

Trade remedies system to boost competitiveness, says Saudi commerce minister 

Trade remedies system to boost competitiveness, says Saudi commerce minister 

RIYADH: A trade remedies system for international trade is set to lure investment and boost the competitiveness of domestic products, said the Saudi Minister of Commerce Majid Bin Abdullah Al-Qasabi.

The trade remedies will also help curb potential damage subsequent to an increase in imports by imposing measures against these imports at the Kingdom’s customs borders, the minister highlighted.

Al-Qasabi who is also the Chairman of the Board of Directors of the General Authority for Foreign Trade stressed that the trade remedies system will play a crucial role in shielding the Kingdom’s national industry from the damage that comes as a result of the dumped as well as subsidized imports.

Moreover, the system will also ensure maintaining the Kingdom’s exports that are subject to trade remedies procedures, the minister emphasized.

The minister said the cabinet’s approval related to the system is also set to create new industries and generate job opportunities, all in line with the goals and objectives of Saudi Arabia’s Vision 2030, reported Saudi Press Agency.

Last month, the Saudi General Authority for Foreign Trade, in collaboration with the World Trade Organization, hosted a workshop in Riyadh from Oct. 25-27. 

The workshop, titled “Market Access,” was held by a group of international experts at the WTO. It included a number of representatives from government agencies. 

The event aimed to build the skills of specialists in government agencies through an understanding of market access, customs and non-tariff procedures, and the work of the WTO.  

It also demonstrated how participants can benefit from WTO databases.

The workshop aimed to foster technical expertise and knowledge of the basic principles and rules of the WTO related to tariffs and concession schedules, ongoing issues being discussed at WTO, the Kingdom’s obligations toward other countries in trade agreements and the best practices of other countries.

Established in Jan. 2019, the General Authority of Foreign Trade is accountable for enhancing international commercial gains and investment activities in the Kingdom while defending its interests in the foreign trade field, thus contributing to the development of its national economy.