TASI rises on fall in commodity prices, easing inflation fears: Closing bell

The main index, TASI, gained 2.13 percent to 11,671, while the parallel market, Nomu, added 0.55 percent to 20,358.
The main index, TASI, gained 2.13 percent to 11,671, while the parallel market, Nomu, added 0.55 percent to 20,358.
Short Url
Updated 28 June 2022

TASI rises on fall in commodity prices, easing inflation fears: Closing bell

TASI rises on fall in commodity prices, easing inflation fears: Closing bell

RIYADH: Saudi stocks regained some of its momentum on Tuesday, as commodity prices fell, which eased concerns about inflation.

The main index, TASI, gained 2.13 percent to 11,671, while the parallel market, Nomu, added 0.55 percent to 20,358.

This was led by a 3.32 percent increase in the Saudi oil giant Aramco and a 3.43 percent leap in one of the Kingdom’s biggest lenders, Saudi National Bank.

Both pharma giants Nahdi Medical Co. and Aldawaa Medical Services Co. saw their share prices rise by 2.02 percent and 0.60 percent, respectively.

In the telecom sector, stc shares climbed 2.06 percent, while Zain KSA shares climbed 1.19 percent.

Abdullah Al Othaim Markets Co. was also among the gainers, posting 5.85 percent gain.

Bawan Co. gained 5.32 percent, after reporting it intends to buy back up to 3 million shares to keep them as treasury shares.

Retal Urban Development Co. edged up 0.33 percent, following the announcement of a 62 percent rise in profit for the first quarter of 2022.

IT firms Elm Co. and Al Moammar both declined by 0.24 percent and 1.95 percent, respectively.

Brent crude settled at $116.73 a barrel and US West Texas Intermediate reached $110.84 a barrel, as of 3:30 p.m. Saudi time.


Saudi Arabia’s PIF ‘to become first sovereign fund to issue green bond’

Saudi Arabia’s PIF ‘to become first sovereign fund to issue green bond’
Updated 15 sec ago

Saudi Arabia’s PIF ‘to become first sovereign fund to issue green bond’

Saudi Arabia’s PIF ‘to become first sovereign fund to issue green bond’

RIYADH: Saudi Arabia’s Public Investment Fund will be the world’s first sovereign wealth fund to issue green bonds with its assets expected to exceed $1 trillion by 2025, the head of Debt Capital Markets and Funds at the London Stock Exchange told Al-Arabiya.

“The issuance of green bonds by the Public Investment Fund in Saudi Arabia is an important event not only for the Arab region, but also for the green bond market,” Shrey Kohli said.

The fund currently manages assets of over $600 billion. The PIF targets those sectors for investment that are in line with the framework of green bonds and the fund offers complete transparency to investors, he added.

As of now, the framework and prospectus of the PIF are available on the London Stock Exchange platform, which allows investors to gain an understanding of the fund’s strategy.

The fund has hired a large group of banks including Citi and JPMorgan to arrange a debut issuance of multi-tranche US dollar-denominated green bonds.

BNP Paribas, Citi, Deutsche Bank, Goldman Sachs and JPMorgan, mandated as joint global coordinators and active book runners.

A debut issuance in tranches of five, 10 and potentially a longer-dated tenor will follow, subject to market conditions. The issuance will be under GACI First Investment Co. and guaranteed by the PIF.

Credit Agricole, First Abu Dhabi Bank, HSBC, Mizuho, SMBC Nikko, SNB Capital, Societe Generale and Standard Chartered are also active book runners, while ANB Capital, BofA Securities, Bank of China, GIB Capital, ICBC, IMI Intesa Sanpaolo, Morgan Stanley, MUFG, Natixis, Riyad Capital and Saudi Fransi Capital are also on the deal.


SAGO buys 5k tons of wheat for $2.3m from local farmers

SAGO buys 5k tons of wheat for $2.3m from local farmers
Updated 39 min 12 sec ago

SAGO buys 5k tons of wheat for $2.3m from local farmers

SAGO buys 5k tons of wheat for $2.3m from local farmers

RIYADH: The Saudi Grains Organization has bought the 16th batch of wheat worth SR8.84 million ($2.35 million) from 18 local farmers.

It is part of the organization’s arrangements to ensure adequate wheat supply by procuring grain from abroad and through local farmers. 

The current batch of local wheat weighed 5 tons, according to a SAGO statement.

Since the beginning of the current season, it added, wheat worth SR823.53 million has been bought from local farmers.


UAE In-Focus — Dubai Metaverse Strategy aims to create 40,000 jobs; Egis completes WME acquisition

UAE In-Focus — Dubai Metaverse Strategy aims to create 40,000 jobs; Egis completes WME acquisition
Updated 02 October 2022

UAE In-Focus — Dubai Metaverse Strategy aims to create 40,000 jobs; Egis completes WME acquisition

UAE In-Focus — Dubai Metaverse Strategy aims to create 40,000 jobs; Egis completes WME acquisition

RIYADH: The Dubai Metaverse Strategy is aiming to create 40,000 virtual jobs in the next five years, as the city aims to become one of the top 10 global metaverse economies.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum the Chairman of Dubai Executive Council and Crown Prince of Dubai, who officially launched the Metaverse Strategy said that metaverse will shape a new digital future for humanity, news agency WAM reported.

“Dubai is emerging as a major contributor to shaping a new global vision for advanced technology and a pioneer in adopting next-generation digital innovation,” said Sheikh Hamdan.

The Metaverse Strategy also aims at attracting over 1000 companies in the significant field of blockchain and metaverse.

Virtual Reality and Augmented Reality are the two main enablers of the metaverse, and it has created 6,700 jobs, along with contributing $500 million to the economy of the UAE.

Egis completes WME acquisition

French firm Egis has completed the acquisition of Dubai-based engineering consultancy WME, according to a MEED report.

The deal was initially announced in March and with its completion, WME’s managing director Peyman MoHajjer will lead the newly formed Building Engineering practice for Egis in the region.

“The joining of WME into Egis Group opens the door to create substantial growth opportunities and deliver greater benefits for customers in our key Middle East and India markets, in line with our global strategy to enhance our international presence,” said Laurent Germain, Egis Group CEO.

Alaa AbuSiam, CEO of Egis Middle East said, “Together with WME, we’re now well positioned to help our clients successfully navigate the transition to a more efficient and sustainable built environment.”

WME is a firm known for providing civil, structural, mechanical, electrical, plumbing, audio-visual, information technology, security, and infrastructure engineering services.


Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy 

Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy 
Updated 02 October 2022

Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy 

Qatar Investment Authority invests $2.43bn to accelerate RWE’s green energy strategy 

RIYADH: The Qatar Investment Authority has agreed to invest $2.43 billion in Germany’s largest power producer RWE AG, to help it buy US firm Con Edison Inc’s Clean Energy Businesses subsidiary for $6.8 billion.

According to a Reuters report, RWE will issue a mandatory convertible bond to a QIA subsidiary, through which Qatar’s sovereign wealth fund will become a 9.1 percent shareholder in RWE.

By acquiring Con Edison’s Clean Energy Businesses, RWE is expected to become one of the major players in the US renewable energy sector.

The transaction will nearly double RWE’s US renewables portfolio to more than 7 gigawatts and grow its regional project pipeline by 7 GW to more than 24 GW.

Following the takeover, solar will account for 40 percent of RWE‘s US portfolio, up from 3 percent now, according to presentation slides.

“Our equity capital measure is the basis for financing the acquisition of Con Edison CEB and of the additional green growth in the years to come,” RWE Chief Executive Markus Krebber said in a statement late on Saturday.

He added: “I am delighted that the QIA is supporting RWE’s accelerated growth ambitions with their capital commitment.”

The deal, the biggest for RWE since the breakup of former division Innogy announced in 2018, will be earnings accretive right away, giving RWE additional core earnings of $600 million a year.

Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, said that the fund is proud to support RWE’s vision to become a leader in the global renewable energy market.

“QIA is actively investing in companies that can have a positive impact on society and shape the future of sustainability by making the energy transition a reality,” he added.

The deal comes nearly a year after RWE fleshed out its global renewables roadmap, which includes $49 billion of gross investments by 2030, with 15 billion earmarked for the US.

The transaction, which is expected to close in the first half of 2023, will make RWE the fourth-largest renewables player in the US market.

The deal plays a key role in the company’s green expansion, though still far behind the largest player NextEra with some 58 GW of generating capacity. 

Barclays and Latham and Watkins advised Con Edison on the deal.

(With input from Reuters) 


IMF plans regional office in Saudi Arabia

IMF plans regional office in Saudi Arabia
Updated 02 October 2022

IMF plans regional office in Saudi Arabia

IMF plans regional office in Saudi Arabia

RIYADH: The International Monetary Fund is considering opening a regional office in Saudi Arabia as both parties prepare to sign a memorandum of understanding in this regard on Oct. 3 in Riyadh. 

The MoU, to be signed between the Saudi Arabian ministry of finance and the IMF, will be followed by a joint press conference at Ritz Carlton in Riyadh, a ministry release said. 

The opening of a new regional office in Saudi Arabia holds significance as the IMF expects the Kingdom to become one of the world's fastest-growing economies, recording a growth of 7.6 percent in the gross domestic product this year.

It should be also noted that credit rating agency S&P has affirmed Saudi Arabia’s rating at “A-/A-2” with a positive outlook citing higher oil revenues, rising oil production, and the government’s robust reform program.