Saudi mining sector grows steadily;466 licenses issued during H1

With a total of 466 mining licenses issued during the first six months, February saw the highest number with 100, up from 67 licenses in the previous month. 
With a total of 466 mining licenses issued during the first six months, February saw the highest number with 100, up from 67 licenses in the previous month. 
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Updated 07 August 2022

Saudi mining sector grows steadily;466 licenses issued during H1

Saudi mining sector grows steadily;466 licenses issued during H1

RIYADH: Mining licenses issued by Saudi Arabia’s Ministry of Industry and Mineral Resources showed a steady pattern during the first half of 2022, according to data compiled by Arab News. 

With a total of 466 mining licenses issued during the first six months, February saw the highest number with 100, up from 67 licenses in the previous month. 

In March, 49 mining licenses were issued. During June, the ministry issued 84 new mining licenses, consisting of 51 exploration licenses, 26 building materials quarries, three surplus mineral ores, two exploitation licenses and two reconnaissance licenses.

In line with Saudi Vision 2030 and the National Industrial Development and Logistics Program, the ministry seeks to protect the mining sector and maximize its value, the Saudi Press Agency reported. 

It aims to transform the mining sector into the third pillar of the national industry and work on exploiting the mineral wealth in the Kingdom that values around SR5 trillion ($1.3 trillion). 


SABIC to sell Functional Forms business to Germany’s RÖHM

SABIC to sell Functional Forms business to Germany’s RÖHM
Updated 9 sec ago

SABIC to sell Functional Forms business to Germany’s RÖHM

SABIC to sell Functional Forms business to Germany’s RÖHM
RIYADH: SABIC has agreed to sell its Functional Forms business to German manufacturer RÖHM.

The sale will allow SABIC to focus on its portfolio of petrochemicals, agri-nutrients, and specialties.

SABIC’s Functional Forms business develops and manufactures high-quality, polycarbonate resin-based engineered thermoplastic sheet and film products which it sells across a wide variety of industries, ranging from building and construction, consumer electronics, aircraft and rail interiors to displays. Its operations are in 19 countries and has about 700 employees.

Final agreements between the two companies will be signed in the coming months after consultation with applicable works councils and unions in Europe. Subject to regulatory approvals and completion of the carve-out of the business from the rest of SABIC’s operations, the transaction is expected to close during the first half of 2024.

How Saudi firms can build on the momentum created by Chinese President Xi’s visit

How Saudi firms can build on the momentum created by Chinese President Xi’s visit
Updated 13 sec ago

How Saudi firms can build on the momentum created by Chinese President Xi’s visit

How Saudi firms can build on the momentum created by Chinese President Xi’s visit
  • Chairman of the Council of Saudi Chambers praises China’s role in the Kingdom’s mega projects
  • Saudi Arabia-China bilateral trade stood at $95.46 billion between January and October 2022

RIYADH: Ajlan bin Abdulaziz Al-Ajlan, chairman of the Council of Saudi Chambers of Commerce, conveyed the greetings of the country’s business community to Chinese President Xi Jinping, who arrived in the Kingdom on Wednesday for a three-day visit. 

Al-Ajlan praised the ever-improving ties between Saudi Arabia and China, in light of the strong political will and strategic partnership between the two friendly countries — particularly on the economic front.

Speaking to Arab News, Al-Ajlan said the two countries have strong historical and economic relations, as China is the Kingdom’s largest trade partner. 

He urged the business community to take advantage of the momentum created by Xi’s visit to push forward trade deals and investments in both Saudi Arabia and China.

Xi is scheduled to meet Saudi and Arab leaders during his visit to the Kingdom. Three summits will take place during his stay: The Saudi-Chinese Summit, the Riyadh Gulf-China Summit for Cooperation and Development, and the Riyadh Arab-China Summit for Cooperation and Development.

The visit reflects the desire of the leaderships of Saudi Arabia and China to strengthen ties, enhance strategic partnerships and realize the political and economic potential in areas of common interest.

Around 35 initial agreements between the two countries, worth more than SR110 billion ($29.3 billion), have been signed during the presidential visit, along with a strategic partnership deal and a plan to harmonize implementation of Saudi Arabia’s Vision 2030 with China’s Belt and Road Initiative.

The volume of bilateral trade grew during 2021 by 37 percent to reach $81.14 billion, with Saudi Arabia accounting for about 26 percent of China’s total foreign trade with Arab countries.

The CSC Chairman said the Kingdom is China’s largest trade partner in West Asia and North Africa, with the import and export of goods between the two countries from January to October 2022 amounting to $95.46 billion, reflecting the strength and diversity of trade between the two countries.

Al-Ajlan praised the role played by Chinese companies in the Kingdom and their involvement in several Saudi mega projects that ads value to the Kingdom’s economy.

He added that harmonizing China’s Belt and Road Initiative with Saudi Arabia’s Vision 2030 will help exploit the Kingdom’s strategic location to make it a global logistics hub.

The CSC chairman said there were huge investment opportunities in the Kingdom for China, particularly in infrastructure projects, as well as in enhancing economic cooperation through regional and international blocs such as the Gulf Cooperation Council, the G20 and others.

He said optimizing this relationship would turn both nations into a powerful combined economic force, based on solid institutional frameworks.

Al-Ajlan said investment cooperation agreements under the Saudi-Chinese Joint Committee and the Saudi-Chinese Business Council, which works under the umbrella of CSC, play an important role in developing investment and trade between the business sectors of the two nations. 
 


Minister of Industry and Mineral Resources stresses importance of strategic partnership with China's industrial and mining sector 

Minister of Industry and Mineral Resources stresses importance of strategic partnership with China's industrial and mining sector 
Updated 08 December 2022

Minister of Industry and Mineral Resources stresses importance of strategic partnership with China's industrial and mining sector 

Minister of Industry and Mineral Resources stresses importance of strategic partnership with China's industrial and mining sector 

RIYADH: Strategic partnership between Saudi Arabia and China in the industrial and mining sector is important and crucial, the Minister of Industry and Mineral Resources Bandar bin Ibrahim Al-Khorayef said.

Cooperation between the two countries has witnessed remarkable growth during the past five years, Al-Khorayef is cited by Saudi Press Agency as saying.

Non-oil exports during 2021 amounted to more than SR36 billion ($9.5 billion), while the Kingdom's imports from China during the same period reached SR112 billion riyals, Al-Khorayef said.

Topping the list of Saudi's exports to China were Petrochemicals and minerals as well as heavy machinery, electronics, vehicles and spare parts he explained.

Moreover, joint projects account for an important part of the volume of cooperation between the two countries. The Saudi Industrial Fund, alone, contributes to financing six joint projects.

During the visit of Crown Prince Mohammed bin Salman to China in February 2019, both countries concluded agreements to establish joint projects covering several sectors including manufacturing, petrochemicals, pharmaceutical, and others.

The countries already share a good history of cooperation, Al-Khorayef said, citing the example of the seven Chinese factories operating in different fields in the Saudi Authority for Industrial Cities and Technology Zones

In addition to this, there are an estimated 10 other factories in different stages of planning, construction, and implementation.

Furthermore,  there are approximately 12 projects for the Royal Commission for Jubail and Yanbu with Chinese companies in different stages, some of them are in operation, and others are under procedure or design.


Saudi governors hail Kingdom’s surplus budget as it set to propel economic growth   

Saudi governors hail Kingdom’s surplus budget as it set to propel economic growth   
Updated 08 December 2022

Saudi governors hail Kingdom’s surplus budget as it set to propel economic growth   

Saudi governors hail Kingdom’s surplus budget as it set to propel economic growth   

RIYADH: Saudi Arabia’s bumper budget surplus has received thumbs up from the Kingdom’s governors as they term it a reflection of “the strength and durability” of the economy that will go long way to improve the lives of its citizens. 

Saudi Arabia on Wednesday announced a larger-than-expected budget surplus of SR102 billion ($27.13 billion) for 2022 — SR12 billion higher than previously forecast. 

The Kingdom also upwardly revised the growth of its gross domestic product to 8.5 percent for 2022, compared with the 7.5 percent estimated in December 2021 and the 8 percent forecast in the pre-Budget statement published at the end of September. 

“The Kingdom is witnessing a historical transformation in various fields in line with the goals and objectives of Vision 2030 in bringing about qualitative leaps across various fields,” said Deputy Governor of Makkah region Badr bin Sultan bin Abdulaziz, as reported by Saudi Press Agency.  

He noted that the budget also takes into consideration diversifying income sources, stimulating the non-oil economy, and focusing on development sustainability.  

In return, Abdulaziz highlighted that this will provide a decent life and prosperous society for the Kingdom’s citizens and residents.  

The Governor of Makkah Khaled Al-Faisal agrees that the Saudi 2023 budget meets the aspirations of the citizens, and it is set to boost and further propel development rates in the Kingdom.  

The governor further emphasized that the budget also aligns well with the Kingdom’s goal of developing the homeland and the citizen, especially when the world is fraught with geopolitical tensions, an energy crisis and a looming threat of a global economic downturn.   

“The Kingdom is witnessing a massive development following the comprehensive development plans that meet the aspirations of the Saudi people and contribute to improving the quality of life and enhancing development rates across fields,” he added.  

Meanwhile, Governor of Jazan Muhammad bin Nasser bin Abdulaziz echoed the same views when he pointed out that the strength of economic and financial reforms would ensure the prosperity of the Kingdom and its people.  

“It ensures financial sustainability and the implementation of programs and projects with an economic and social return,” he said.  

The Governor of Jazan stressed that the Saudi 2023 budget will also help achieve economic diversification and empower the private sector by overcoming all obstacles to create an attractive investment environment for it.  

Governor of Taif Saud bin Nahar bin Saud bin Abdulaziz, added: “The promising figures in the budget reflect the serious steps taken by the Kingdom to achieve growth and development in various fields, overcome obstacles and challenges, and continue to work for the Kingdom to assume its position regionally and internationally.”

According to London based economist and former KFUPM Professor Mohamed Ramady, several key aspects stand out in the 2022 budget that set the Kingdom apart from other economies: " Firstly, the actual real GDP growth is on target to achieve a sterling rate of 8.5 percent, higher than the 7.4 percent initial forecast, despite fluctuating oil prices and is the highest in the G20 economies. Inflation which is a major concern in many economies, is set to average 2.6 percent for 2022, one of the lowest globally, compared to the forecasted 1.3 percent but still lower than the 3.1 percent in 2021," he said.

 "Lastly," Ramady continued, "the Saudi budget continues to be both expansionary with revenues of SR 1.234 trillion, around 25 percent higher than 2021 and with this year's expenditures boosted by around 9 percent to reach around SR 1.132 trillion. This allows the Kingdom to continue building up its fiscal buffers and at the same time attract global lenders, the last being the jumbo $17 billion PIF borrowing at competitive rates. The Kingdom is still very much open to quality business opportunities."


Saudi bourse slowly recovers from a 19-month low in a volatile market: Closing bell

Saudi bourse slowly recovers from a 19-month low in a volatile market: Closing bell
Updated 08 December 2022

Saudi bourse slowly recovers from a 19-month low in a volatile market: Closing bell

Saudi bourse slowly recovers from a 19-month low in a volatile market: Closing bell

RIYADH: Saudi Arabia’s benchmark index, known as the Tadawul All Share Index, started showing signs of recovery on Thursday, after falling to a 19-month low on Wednesday.

On Thursday, TASI gained 61 points to close at 10,246, while the parallel market Nomu closed at 18,767, up 39 points.

Of the 219 companies listed in TASI, 123 advanced, while 80 declined.

On Thursday, share prices of Saudi Arabian Cooperative Insurance Co. rose 9.85 percent to lead the gainers, followed by Astra Industrial Group and Saudi British Bank which went up 3.78 percent and 3.66 percent respectively.

Tourism Enterprise Co. led the fallers, as it was down 7.42 percent at the end of Thursday’s trading session.

Other fallers include Nahdi Medical Co. and Saudi Tadawul Group Holding Co. which went down 5.52 percent and 4.57 percent respectively.

On Thursday, Tadawul announced that shares of Americana Restaurants International will be listed for trading on Dec.12. as a concurrent and dual listing in Saudi Arabia and UAE.

According to a statement, the daily price fluctuation limits will not be applied to the company’s shares during the first three days of listing, while the +/- 10 percent static price fluctuation limits will be applicable.

The statement further noted that the daily price fluctuation limits of -/+ 10 percent will be applied from the fourth day of trading, while the static price fluctuation limits will be no longer applicable.

Meanwhile, ACWA Power’s wholly owned subsidiary, ACWA Power Management and Investments One Limited, known as APMIOne, has purchased ACWA39 bonds at $400.7 million in total value before amortization at the early settlement date.

In a statement to Tadawul, the company noted that no other bonds were offered after the early tender deadline, and as a result, there will be no final settlement date.

The statement further added that the total pre-amortization aggregate principal amount of bonds that will remain outstanding after the expiration date is $413.3 million.

On Thursday, Saudi Aramco, one of the biggest energy producers in the world was down 1.10 percent.

In the banking sector, stock prices of Alinma Bank went down 0.63 percent, while Al Rajhi Bank went up 1.35 percent.