TRSDC signs first JV worth $400m with Al Mutlaq Group

Under the agreement, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and expected to open in early 2024. 
Under the agreement, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and expected to open in early 2024. 
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Updated 01 August 2022

TRSDC signs first JV worth $400m with Al Mutlaq Group

TRSDC signs first JV worth $400m with Al Mutlaq Group

RIYADH: The Red Sea Development Co. has signed a joint venture agreement worth SR1.5 billion ($400 million) with Almutlaq Real Estate Investment Co., a subsidiary of the Al Mutlaq Group. 

Under the agreement, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and expected to open in early 2024. 

The island forms part of the first phase of development, and will comprise 12 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a comprehensive retail, dining, and entertainment offering.

The strategic partnership marks the first JV established by TRSDC.

“This joint venture investment reinforces the private sector’s alignment with our commitment to regenerative tourism and sustainable development. Our project naturally lends itself to promising business opportunities, with the ability to leverage the Kingdom’s key strategic assets, and drive economic growth and diversification as outlined by Vision 2030,” said John Pagano, CEO of TRSDC. 

“We are extremely pleased to partner with TRSDC and its best-in-class management team on this exciting and compelling project. We have been studying the giga-projects for some time, and the Red Sea is achieving its vision. The destination is coming to life, and we look forward to welcoming our first guests in 2024,” said Tariq Almutlaq, chairman of AREIC.

Investors’ interest

TRSDC is in discussions with several other investors under a similar framework to invest in The Red Sea Project’s commercial assets, including hotels and resorts, leisure, and retail and dining experiences. Moreover, AMAALA and additional soon-to-be-announced projects in the developer’s expanding portfolio bring with them additional opportunities for investors.

“We are attracting an abundance of third-party investment interest, particularly those focused on ESG who are confident that this is an exciting opportunity and one that they do not want to miss out on,” said Jay Rosen, chief financial officer at TRSDC.

Green financing

The announcement follows TRSDC achieving financial close on its SR14.120 billion ($3.76 billion) green financing earlier this year with four leading Saudi banks (Banque Saudi Fransi, Riyad Bank, Saudi British Bank, and Saudi National Bank). As the first-ever riyal denominated green financing, TRSDC was acknowledged with an award for Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards 2021 plus the Best New Green Loan Financing Project Award at the International Finance Awards 2022.

The Red Sea Project has demonstrated significant progress on the ground, with Phase-1 now more than 50 percent complete and several key assets already fully operational, including a four-star management hotel, on-site offices, and the largest landscape nursery in the region.

TRSDC and AMAALA have awarded over 1,000 contracts worth in excess of SR25 billion. Work is on track to welcome the first guests in early 2023, when the first hotels will open, with the balance of phase one set to complete by early 2024.


GASCO mulls JV to set up composite cylinder factory with UK’s Aburi Composites

GASCO mulls JV to set up composite cylinder factory with UK’s Aburi Composites
Updated 10 sec ago

GASCO mulls JV to set up composite cylinder factory with UK’s Aburi Composites

GASCO mulls JV to set up composite cylinder factory with UK’s Aburi Composites

RIYADH: National Gas and Industrialization Co., or GASCO, is studying the feasibility of partnering with UK’s Aburi Composites and Saudi-based Front End Co. to operate a joint cylinder factory.

Once the deal is finalized, the joint factory will be specialized in manufacturing composite cylinders, Nomu-listed GASCO said in a bourse filing.

This aligns with its strategy and experience in the gas supply chain, strengthening its investments in gas supply chains and enhancing localization opportunities.

UK-based Aburi Composites is a leading supplier of composite fiberglass cylinders, while Front End provides advisory services to support the expansion of international companies.


Macro Snapshot — UK inflation tops 10%, Dutch economy grows 2.6 percent in Q2

Macro Snapshot — UK inflation tops 10%, Dutch economy grows 2.6 percent in Q2
Updated 9 min 13 sec ago

Macro Snapshot — UK inflation tops 10%, Dutch economy grows 2.6 percent in Q2

Macro Snapshot — UK inflation tops 10%, Dutch economy grows 2.6 percent in Q2

CAIRO: UK’s inflation topped 10 percent recording its highest rate since 1982.

British consumer price inflation jumped to 10.1 percent in July, its highest since February 1982, up from an annual rate of 9.4 percent in June, intensifying the squeeze on households, official figures showed on Wednesday.

The increase was above all economists’ forecasts in a Reuters poll for inflation to rise to 9.8 percent in July, and will do nothing to ease the Bank of England’s concerns that price pressures may become entrenched. 

Spain’s public debt-to-GDP ratio

Spain’s public debt ended the second quarter at the equivalent of 116.8 percent of gross domestic product, the Bank of Spain said on Wednesday.

Spain’s debt-to-GDP ratio at the end of June was lower than the 117.7 percent registered in March and below the 118.7 percent at the end of 2021, the central bank said.

Dutch economy grows 

Economic growth in the Netherlands surprisingly jumped to 2.6 percent in the second quarter compared with the previous three months, as household spending boomed despite soaring inflation and companies increased their investments.

The strong expansion confounded expectations among economists that growth would remain at roughly the same 0.5 percent pace seen in the first quarter of 2022.

“These numbers show that, despite recent worries, a recession is not yet in sight,” Statistics Netherlands chief economist Peter Hein van Mulligen said.

US retail sales flat 

US retail sales were unchanged in July as declining gasoline prices weighed on receipts at service stations, but consumer spending appeared to holding up, which could further assuage fears that the economy was already in recession.

The Commerce Department on Wednesday said that retail sales’ flat reading last month followed a downwardly revised 0.8 percent increase in June. Retail sales in June were previously reported to have advanced 1.0 percent.

Economists polled by Reuters had forecast that sales would gain 0.1 percent, with estimates ranging from as low as a 0.3 percent decline to as high as a 0.9 percent increase. Retail sales are mostly goods and are not adjusted for inflation.

(With input from Reuters) 


Egypt In-Focus — Central bank reluctant to hike interest rates; beverage industry by 30%

Egypt In-Focus —  Central bank reluctant to hike interest rates; beverage industry by 30%
Updated 14 min 44 sec ago

Egypt In-Focus — Central bank reluctant to hike interest rates; beverage industry by 30%

Egypt In-Focus —  Central bank reluctant to hike interest rates; beverage industry by 30%

CAIRO: Despite pressure from investors, Egypt’s central bank is hesitant to raise interest rates, reported Bloomberg.

Although the Egyptian pound was devalued five months ago, investors still believe that the currency needs another devaluation to reflect its true value.

Speculations about the weakening of the pound had already been circulating when Egypt requested another loan from the International Monetary Fund in March.

 “The recent communication from the IMF hinted at a clear unhappiness with the lack of FX flexibility ahead of any potential new loan program,” stated Paul Greer, a London-based money manager at Fidelity International.

“To that end, we are expecting the Egyptians to continue to weaken their currency,” he added.

The central bank’s next monetary policy meeting is scheduled for Aug. 18, and after its decision to keep rates unchanged in June, investors have no idea what to expect.

Industrial growth 

Egypt’s beverage industry surged by 30.2 percent month-on-month in May with the beginning of the summer season, according to data from the Central Agency for Public Mobilization and Statistics.

Moreover, the manufacturing and extractive industries saw a 3.91 percent month-on-month rise in May.

Also, the food industry witnessed a similar monthly increase of 3.26 percent that month.

Suez Canal Bank 

The growth of the retail banking sector in Egypt had positive effects on profits, bank deposit growth, and lending portfolios in the Suez Canal Bank, according to Hussein Al-Refai, Chairman and Managing Director of the Egyptian Suez Canal Bank.

Its profits grew by 11.2 percent reaching 268 million Egyptian pounds in the first half of 2022, and it induced 1.7 billion Egyptian pounds in investments and assets volume, he added in an interview with CNBC Arabia.


Saudi Maaden, AMAK, Vedanta among qualified bidders for Umm Ad Damar exploration license

Saudi Maaden, AMAK, Vedanta among qualified bidders for Umm Ad Damar exploration license
Updated 17 min 47 sec ago

Saudi Maaden, AMAK, Vedanta among qualified bidders for Umm Ad Damar exploration license

Saudi Maaden, AMAK, Vedanta among qualified bidders for Umm Ad Damar exploration license

RIYADH: Saudi Maaden, AMAK and Vedanta are among 13 qualified bidders in the pre-qualification stage for a license at Umm Ad Damar mining site, the Saudi Ministry of Industry and Mineral Resources has announced.

The site is located in the Madinah region in Mahd Adh Dhahab Governorate, and is presented to local and international investors.

Other eligible bidders include African Rainbow Metals Co, Abdulrahman Saad Al-Rashed & Sons Co, Barrick Gold, and ERG Arabia, and an alliance between Moshico Resources, Ajlan & Bros Mining Co, Yallmaden Limited, Yancol Australia Limited, UDS Golden Group, Saudi Alara Ventures, and Noreen Mining.

The ministry added that the announcement of qualified bidders marks the end of the first phase of the bidding process, to obtain a license to inspect the Umm Ad Damar site. 

It will also hold a workshop this month for qualified bidders to clarify more details about the upcoming stages.


TASI rises as earning season continues: Closing bell

TASI rises as earning season continues: Closing bell
Updated 17 August 2022

TASI rises as earning season continues: Closing bell

TASI rises as earning season continues: Closing bell

RIYADH: Saudi Arabia’s benchmark index rose in the last hours of Wednesday, as the market was boosted slightly by new positive earnings reports.

TASI edged up 0.81 percent to finish at 12,646, while Nomu, the parallel market, declined 2.28 percent to end at 21,533.

This was led by a 9.94 percent leap in Fawaz Abdulaziz Alhokair following a 26 percent profit surge to SR58 million ($15 million) in the second quarter.

PIF-owned ACWA Power Co. added 0.81 percent, after announcing it will sign a $2.4 billion wind power deal with Uzbekistan's Ministry of Investment & Foreign Trade.

Al Moammar Information Systems Co. added 0.19 percent as it signed a SR39 million contract with the Saudi Ministry of Environment, Water, and Agriculture

Alamar Foods Co edged down 1.29 percent, despite reporting a SR66 million net profit in the first half of 2022, a 10 percent increase from the first half of last year.

Arabian Centres Co. added 0.19 percent, after reporting a higher second-quarter profit of SR128 million.

Al Jouf Cement Co. rose 0.78 percent, after Abdul Karim Al-Nuhair was appointed CEO after Jamal Al Amer resigned.

In the financial sector, Al Rajhi Bank rose 1.59 percent, while the Saudi National Bank, the Kingdom's largest lender, increased 0.14 percent.

Among the Kingdom’s insurers, Amana Cooperative Insurance Co. gained 0.46 percent while Saudi Enaya Cooperative Insurance Co. fell 1.30, as both firms reported 50 percent and 53 percent narrowed losses in the first half, respectively.

Wataniya Insurance Co. sank 22.7 percent, after it saw its losses widen by 44 percent to SR37 million in the first half of 2022, while Alinma Tokio Marine Co. gained 1.23 percent, after turning into a profit of SR2.4 million in the first half of 2022.

In the energy market, Brent crude reached $92.14 a barrel, while US West Texas Intermediate declined to $86.71 a barrel, as of 3:18 p.m. Saudi time.