Green hydrogen gets a push during Saudi Crown Prince’s visit to Greece

Special Green hydrogen gets a push during Saudi Crown Prince’s visit to Greece
Saudi Arabia and Greece look to deepen ties in the area of green hydrogen and clean energy during the official visit of Crown Prince Mohammed bin Salman. (SPA)
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Updated 28 July 2022

Green hydrogen gets a push during Saudi Crown Prince’s visit to Greece

Green hydrogen gets a push during Saudi Crown Prince’s visit to Greece

RIYADH: Saudi Arabia and Greece signed an agreement to deepen ties in the area of green hydrogen and clean energy on the sidelines of the official visit of Crown Prince Mohammed bin Salman ahead of the Saudi-Greek Investment Forum.

The Crown Prince will also discuss helping the European country establish an electrical interconnection network.

Calling the relationship between both the countries “historical,” the Crown Prince said there are further opportunities that can be finalized during his two-day visit, including linking the electricity grid to south-west Europe, through Greece, to provide the continent with cheaper renewable energy.

“Also, we are working (on)...hydrogen and how to turn Greece as a hub for Europe to hydrogen. That’s a game changer for both of us. Also, we are working (on)...linking the telecommunication grid,” the Crown Prince said in a statement issued by the Greek prime minister's office.

The Crown Prince said he has a lot on the agenda for the talks, citing investment, trade, economic, political, and security issues. He promised he had not come “empty-handed” and his plans would be a “game changer for both countries and also for the whole region.”

He also mentioned a “big item that we cannot announce today” as he talked up the relations between Saudi Arabia and Greece.




A memorandum was signed between Saudi Minister of Energy Prince Abdulaziz bin Salman and Greek Minister of Foreign Affairs Nikolaos Georgios Dendias. (SPA)

The memorandum signed between Saudi Minister of Energy Prince Abdulaziz bin Salman and Greek Minister of Foreign Affairs, Nikolaos Georgios Dendias, sets a framework for cooperation in the fields of renewable energy, electrical interconnection, exporting electricity to Greece and Europe, clean hydrogen and its transfer to Europe, Saudi Press Agency reported.

The agreement will also look at working together in the areas of energy efficiency and the oil, gas and petrochemical industry, while adopting the circular economy approach to carbon and technologies to reduce the effects of climate change.

Both countries will also explore the scope of capturing carbon, reusing, transporting and storing the gas, as well as capturing carbon directly from the air.

The two also signed an agreement to promote digital transformation and innovation in the fields of energy, including cyber security, while working to develop qualitative partnerships to localize materials, products and services related to all energy sectors and their associated supply chains and technologies.

The Crown Prince and the Greek Prime Minister also witnessed the signing of the agreement to establish the Saudi-Greek Strategic Partnership Council.

Connecting East to West

A strategic partnership was announced between the Saudi and Greek private sectors on the sidelines of the Crown Prince's visit to build a data cable project linking the East to the West.

This cable will ensure the smooth digital supply of data worldwide at a time when the data traffic is growing by more than 30 percent, SPA said.

This comes through the leadership of the Saudi Telecom Co. on the submarine cable project in partnership with the Greek Telecom Co., the General Energy Co. of Greece and the Cyprus Telecom Co.

STC Group announced that its subsidiary MENA Hub will cooperate with the Greek telecom firm TSSA to build a data corridor that extends from the Kingdom to Europe through a modern, high-capacity network of terrestrial optical fibers under the sea and will connect Europe with Asia.

The project aims to position the two countries as an eastern digital station for Europe to reach the Middle East, the continents of Africa and Asia. 

Once completed, the project will also contribute to accelerating the growth of the global digital economy, which is estimated to reach $15 trillion, reported SPA. The project will also contribute to supporting new industries and emerging markets based on innovative business models.

 

 

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SRMG launches new venture capital arm, SRMG Ventures

SRMG launches new venture capital arm, SRMG Ventures
Updated 27 min 8 sec ago

SRMG launches new venture capital arm, SRMG Ventures

SRMG launches new venture capital arm, SRMG Ventures
  • SRMG’s new venture capital arm focuses on supporting content creation and digital media platforms
  • Inaugural investments in disruptive regional production house Telfaz11 and immersive video platform VUZ

RIYADH: SRMG, a global integrated media group, today announced the launch of its corporate venture capital arm, SRMG Ventures.

In line with SRMG’s transformative growth strategy, SRMG Ventures will invest in early-stage companies and technologies within the core target areas: media creators, digital media, media enablers and tools, including generative AI, as well as immersive and interactive entertainment. SRMG Ventures will initially target investments from the seed to Series B stage.

SRMG Ventures will enable SRMG to back and empower regional talent and entrepreneurs, acting as a catalyst for further growth of the rapidly evolving media industry in the region.

SRMG Ventures will provide SRMG with direct access to innovative technologies, as well as new media talent and content creators, that will continue to enhance SRMG’s own media portfolio and drive forward the future of media. The new corporate venture capital arm will additionally help SRMG penetrate new markets and further diversify its business offering, whilst generating tangible financial returns.

SRMG Ventures has also announced inaugural investments and partnerships with two fast-growing companies:

  • Telfaz11: a Saudi-based creative media studio specializing in locally relevant entertainment content, and producer of the box office hit “Sattar” and feature film “Alkhallat+” which was one of the top ten most watched movies in Saudi Arabia on Netflix.
  • VUZ: a leading VR-enabled social media app that allows users to engage with 360o videos enabling a new level of immersive realism.

Jomana R. Al Rashid, CEO, SRMG said: “We are excited to continue to lead and support the growth of the dynamic and fast-growing media and content industry in Saudi Arabia and beyond. Our new venture capital arm, SRMG Ventures, will enable us to discover and nurture new talent and content creators, and leverage the latest advances in virtual reality and artificial intelligence.

“The adoption of cutting-edge technologies will invigorate SRMG’s products and services, further elevating content offerings and experiences for our local and global audiences. Our first investments in two leading companies, one local and one regional, led by exceptional creatives from the Arab world, mark the beginning of this thrilling endeavor.”

The announcement comes at an important moment for the MENA media and venture capital sectors. The MENA media and entertainment sector is expected to grow at 9 percent to exceed $20 billion by 2026, outpacing global growth.

In addition, the MENA region, and Saudi Arabia in particular, is experiencing a vibrant entrepreneurial ecosystem, with venture capital funding crossing the $3bn mark in 2022, an annual rise of 8.3 percent, with Saudi Arabia startups securing $987m in 2022, a 72 percent increase compared to 2021.


Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 
Updated 28 March 2023

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

RIYADH: Egypt’s external financing needs are standing in the way of its economic development and may hinder its medium-term growth, according to a report by Morgan Stanley.

The investment management and financial services firm recommended the North African country implement structural reforms through a large-scale privatization program in order to boost its economy.

The US-based company also noted the shift to a permanently flexible exchange rate system would also help reduce the Egyptian economy’s sensitivity to global shocks.  

“Egypt has favorable prospects for medium-term growth, but the large external financing needs weigh on the macroeconomic outlook,” said the report.  

 Even though the continuous depreciation of the Egyptian pound since 2022 will aid in shrinking the current account deficit, there is limited recovery in its official reserves. 

The report attributed this to the uncertainty around the rate of reform and the tightening of financial conditions in the global economy, which will likely limit foreign direct investment flows. 

Egypt’s economic struggles, exacerbated by the fallout from Russia’s invasion of Ukraine, were brought into focus in December when the International Monetary Fund approved a $3 billion Extended Fund Facility loan.

The Morgan Stanley report said this support from the IMF is “insufficient to close the financing gap and provide the country's foreign exchange needs in the near term”.

Egypt has the potential to sell up to $7 billion worth of assets by 2024 as it seeks to boost foreign exchange liquidity and public finances, as well as narrow its financing gap. 

The country’s financial gap is currently pegged at $23 billion to $24 billion by the end of fiscal year 2023/2024, reported Morgan Stanley  

“This in turn should tame further expectations of FX depreciation and ensure a smooth transition to a durably flexible regime, potentially lowering the bar for portfolio investors and buying time for the authorities to implement the structural reforms to level the playing field and boost FDI inflows further,” added the report.


The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG
Updated 28 March 2023

The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG

RIYADH: Following a 31 percent rise in net profits and a 10.6 percent increase in assets in 2022, the UAE’s banking sector is projected to remain stable, according to a KPMG report.

The global accounting firm said the sector’s net sentiment improved by 7 percent from the previous year, based on 96,321 tweets regarding seven UAE banks tracked.

The UAE banking sector recorded an industry average of -7.4 percent, a seven-percentage point increase from the 2022 study’s industry aggregate of -14.4 percent last year, the report added.

“The UAE’s vibrant economy and its favorable business environment has attracted a significant amount of foreign investment, with banks benefiting from large pools of capital and high-net-worth customers the UAE is attracting,” Abbas Basrai, partner and head of financial services at KPMG Lower Gulf, said.

The country’s banking sector, which has benefited greatly from the government’s commitment to regulatory reforms, saw the total assets of the top 10 banks increase by 10.6 percent year-on-year to $898.89 billion in 2022, driven by strong growth in deposits, loans, and advances.

The UAE’s economy is expected to grow by 7.6 percent in 2022, the highest rate in 11 years, after expanding by 3.9 percent in 2021, according to the Central Bank of the UAE. In 2023, the country’s gross domestic product is forecast to increase 3.9 percent 2023, according to the regulator.

According to KPMG's report, the vibrant banking sector remained well-positioned to maintain a stable outlook in 2023 “with the growing demand for digital financial services, rapid adoption of fintech solutions enhancing customer experience, and industry competitiveness.”


Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1
Updated 28 March 2023

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

RIYADH: The Saudi Stock Exchange updated the free-float shares for all listed issuers on the main market TASI and parallel market Nomu, effective April 2. 

The companies that will be included in the Tadawul index are Alinma Hospitality REIT Fund and Thimar Development Holding Co.

The firms that will be included in the Nomu index are Leen Alkhair Trading Co., Nofoth Food Products Co., Alqemam for Computer Systems Co., WAJA Co., Balady Poultry Co., KnowledgeNet Co., Bena Steel Industries Co., and Horizon Food Co. 

The Tadawul All Share Index rose for the fourth day in a row on Tuesday, as it went up 4.47 points or 0.04 percent to 10,468.08.

Parallel market Nomu also went up by 286.61 points or 1.49 percent to close at 19,534.39, while the MSCI Tadawul 30 Index went down by 0.24 percent to 1,416.92.

The total trading turnover of the benchmark index was SR5.73 billion ($1.53 billion).

Takween Advanced Industries Co. was the top performer of the day, as its share prices went up by 9.98 percent to SR9.48. 

Other top performers were National Metal Manufacturing and Casting Co. and Middle East Specialized Cables Co. whose shares went up by 9.98 percent and 9.94 percent respectively. 

Middle East Specialized Cables Co. was the worst performer, as its share prices dropped by 2.95 percent to SR59.30.

On the announcements front, Thimar Development Holding Co., in a bourse statement revealed that it trimmed its net losses in 2022 to SR4.7 million, from SR162.45 million in 2021. As the company successfully trimmed its losses, its share prices went up rose by 2.67 percent to SR44.25. 

Another company which announced its financial results on Tuesday was Electrical Industries Co. The firm reported a net profit of SR94.17 million in 2022, a 93 percent surge from SR48.84 million compared to the year-earlier period. The company’s share prices soared by 3.16 percent to SR34.3. 

Naba Alsaha Medical Services Co.’s net profit surged to SR26.92 million in 2022, up 4.24 percent, from SR25.82 million in 2021. Driven by the rise in profit, the company’s share prices increased by 2.36 percent to SR52.

Meanwhile, Saudi Advanced Industries Co., known as SAIC, also announced its earnings report for 2022. The company’s net profit went up by 9.96 percent to SR100.21 million in 2022, compared to SR91.13 million in 2021. 

As the profit surged, SAIC’s board recommended distributing a cash dividend of 5 percent of capital or SR 0.50 per share for 2022. The share prices of SAIC also went up by 1.32 percent to SR24.50.


UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  
Updated 28 March 2023

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

RIYADH: The UAE’s gross domestic product is expected to grow at 4.3 percent in 2024, driven by oil and non-oil exports, according to the latest forecast by the country’s central bank.   

In its 4th Quarterly Economic Review released on Monday, the Central Bank of the UAE has retained its forecast unchanged at 3.9 percent for this year.  

This comes as the apex bank noted that the country’s economy had a good run in the first three quarters of 2022, with the fourth quarter set to maintain a solid footing, helping the UAE GDP to close the year at an estimated 7.6 percent.  

While oil production is likely to slow by the OPEC+ agreements, the non-oil sector is expected to continue to support aggregate output, even if at a slower pace, the bank’s report revealed.   

The real estate and construction sectors, as well as a vibrant manufacturing sector, such as refineries and aluminum production, are the key drivers of strong performance, noted the report.   

Furthermore, the FIFA World Cup in Qatar and other global events held in the region increased travel and tourism to the UAE – something that provided a much-needed boost to the economy. 

In the fourth quarter of 2022, oil production averaged 3.1 million barrels per day, with UAE hydrocarbon GDP estimated to have grown by 10 percent year-on-year in line with the OPEC+ agreements.  

OPEC agreed to cut production by 2 million barrels per day at the beginning of November, causing the CBUAE’s projections for hydrocarbon real GDP growth to be revised downward. As a result, the CBUAE expects oil GDP to rise by 3.0 percent and 3.5 percent in 2023 and 2024, respectively.   

Following the robust growth in the first three quarters of 2022, the non-oil sector is expected to rise at a similar rate in the fourth quarter. The CBUAE expects the UAE’s non-oil GDP to grow at 6.6 percent in 2022.   

The UAE’s Consumer Price Index increased by 4.6 percent in the fourth quarter of 2022, compared to 6.5 percent in the previous quarter. While inflation is rising in line with global trends, the apex bank noted that it is still much lower than the global average.   

During 2022, CPI inflation averaged 4.8 percent, which was close to CBUAE’s projection of 4.9 percent.   

“In 2023, inflation is projected to decelerate to 3.2 percent, on the back of softer price increases in all categories, especially transport and food, and beverages,” according to the report’s statement.