Al Jouf Cement names new CEO as Jamal Al Amer resigns

Al Jouf Cement names new CEO as Jamal Al Amer resigns
Al Jouf Cement Co., a Saudi-based cement producer, has appointed Abdul Karim Al-Nuhair as its new CEO. (Supplied)
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Updated 17 August 2022

Al Jouf Cement names new CEO as Jamal Al Amer resigns

Al Jouf Cement names new CEO as Jamal Al Amer resigns

RIYADH: Al Jouf Cement Co., a Saudi-based cement producer, has appointed Abdul Karim Al-Nuhair as its new CEO effective Aug. 21, according to a bourse filing.

Al-Nuhair will replace previous CEO Jamal bin Salem Al-Amer, who resigned on Aug. 16 to continue serving the company as president ex-executive advisor.  

Prior to joining Al Jouf, Al-Nuhair held several leadership positions in joint-stock companies. He holds a bachelor’s degree in industrial management from King Fahd University of Petroleum and Minerals.


Saudi Arabia’s PIF raises $3 billion with debut green bonds

Saudi Arabia’s PIF raises $3 billion with debut green bonds
Updated 13 sec ago

Saudi Arabia’s PIF raises $3 billion with debut green bonds

Saudi Arabia’s PIF raises $3 billion with debut green bonds

DUBAI: Saudi Arabia’s Public Investment Fund was set to raise $3 billion on Wednesday in its first foray into the debt capital markets, taking advantage of a brief period of calm to become the first sovereign wealth fund to issue green bonds.

PIF joined a flurry of other issuers tapping the market after a run of heightened volatility that has lasted most of the year, selling the first-ever green bonds with a 100-year maturity alongside two other tranches of the issue.

The $500 million of 100-year notes will be sold at a yield of 6.7 percent, a bank document showed, $1.25 billion in five-year bonds were launched at 125 basis points over US Treasuries and $1.25 billion in 10-year paper at 165 bps over USTs.

Initial price guidance for the five- and 10-year paper was tightened by 25 bps, while the 100-year tranche had been indicated in the 7-7.25 percent area.

The inclusion of 100-year bonds was the result of investor enquiries, a source with knowledge of the deal said, with market watchers adding that the long maturity reflected the issuer’s confidence.

Overall demand topped $22 billion, with the five-year drawing more than $10.3 billion of interest, the 10-year attracting over $8.5 billion and the 100-year more than $3.2 billion, the bank document showed.

The fund, which manages more than $600 billion in assets and plans to grow that to over $1 trillion by 2025, is at the center of Saudi Arabia’s agenda to diversify the economy away from oil, spearheaded by Saudi Crown Prince Mohammed bin Salman.

PIF expects to invest more than $10 billion by 2026 in eligible green projects, including renewable energy, clean transport and sustainable water management, an investor presentation for the bonds showed.

By comparison, the fund has said it would invest about $40 billion domestically each year through 2025, although it reached little more than half that target last year.

Issuance of green bonds, proceeds from which are used to finance sustainable activity, has jumped from $2.3 billion in 2012 to $511.5 billion last year, based on Refinitiv data.

“Issuance of green bonds appears to be accelerating which is welcome news for a region that has an important role to play in the global (energy) transition,” said Dino Kronfol, Franklin Templeton’s chief investment officer of global sukuk and MENA fixed income.

Saudi Arabia is targeting net-zero carbon emissions by 2060.

BNP Paribas, Citi, Deutsche Bank, Goldman Sachs and JPMorgan are joint global coordinators and active bookrunners on the deal. 


Russian firms eye stronger business ties with Saudi Arabia amid western sanctions 

Russian firms eye stronger business ties with Saudi Arabia amid western sanctions 
Updated 05 October 2022

Russian firms eye stronger business ties with Saudi Arabia amid western sanctions 

Russian firms eye stronger business ties with Saudi Arabia amid western sanctions 

RIYADH: A business delegation of 23 Russian companies held talks with Saudi firms in Riyadh on Oct. 4 amid a growing call from the US and EU to cut ties with Kremlin entities. 

The meeting comes as Saudi Arabia strives to attract foreign direct investments aligned with its Vision 2030 goals. 

The talks stressed on the vitality of elevating trade relationships between Saudi Arabia and Russia, while taking advantage of investment opportunities and establishing commercial partnership relations between the two parties to serve common interests. 

Stanislav Yankovitz, the commercial representative at the Russian Embassy, noted that the trade relationship between Saudi Arabia and Russia has leapfrogged in recent years, with commercial exchange volume in 2021 witnessing an increase to $1.7 billion, and is expected to reach $5 billion by the end of 2024.  

The event also witnessed bilateral meetings between businesspeople and representatives of Russian companies working in various sectors which include creative industries, education, electric power and design engineering.

Some of the other sectors include cosmetics, furniture, perfumery, food industry, industrial, information technology, smart technologies, medical equipment and oil and gas.

Counselor of the Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Saudi Arabia Alexander Istomin, said that Russian-Saudi relations are strong and that they have been witnessing continuous rapprochement.

The head of the Saudi-Russian Business Council Tariq Al-Qahtani said that it is playing a crucial role in strengthening trade relations between the two countries as it seeks and provides investment opportunities through the establishment of joint projects. 

Western firms exiting Russia

Meanwhile, owing to the conflict in Ukraine, several western companies have exited their operations in Russia, despite chances of revenue loss. 

Adidas, which has over 500 stores in Russia, suspended its operations in the country — the move is expected to cut 1 percent of its revenue this year. 

Cigarette maker Philip Morris also announced that it has suspended planned investments and will reduce manufacturing in Russia. 

In the energy sector, BP said it would sell its nearly 20 percent stake in Rosneft, the Russian state-controlled oil company. The firm also wrote off $25.5 billion on its nearly 20 percent holding in Rosneft. 

Another energy major Exxon Mobil had announced that it would end its involvement in a large oil and natural gas project. 

In a move that could cost billions, Shell also exited its joint ventures with Gazprom, the Russian natural gas giant.


Etihad Airways named MENA airline of the year

Etihad Airways named MENA airline of the year
Updated 05 October 2022

Etihad Airways named MENA airline of the year

Etihad Airways named MENA airline of the year
  • The transformation of Etihad has been recognized following a record-breaking core operating profit of $296m in the first half of 2022

ABU DHABI: Etihad Airways was named Middle East & Africa Airline of the Year at the Airline Economics Aviation 100 Awards.

The company’s Chief Financial Officer Adam Boukadida also received the Middle East & Africa CFO of the Year award for the second successive year on Tuesday.

The Airline Economics awards are held annually to recognize outstanding businesses, individuals and financial transactions in the commercial aviation industry. 

Boukadida said: “We’re incredibly proud to be named Airline of the Year by Airline Economics, which comes just before our 19th birthday.

“This award goes to our entire organization and stands as a testament to the success of our transformation, in which every member of the Etihad family played an important role.”

Etihad was recognized for its successful turnaround, which resulted in a record-breaking core operating profit of $296 million in the first half of 2022. 

For the Airline of the Year award, the judges also considered profit, debt, load figures, RPK (revenue passenger kilometers), orders and routes. 

 


Riyad Bank completes offering of $1bn sukuk 

Riyad Bank completes offering of $1bn sukuk 
Updated 05 October 2022

Riyad Bank completes offering of $1bn sukuk 

Riyad Bank completes offering of $1bn sukuk 

RIYADH: Riyad Bank has completed the offering of its Saudi riyal-denominated additional Tier 1 capital sukuk worth SR3.8 billion ($1 billion).

The bond is perpetual and has a rate of return of 5.25 percent to be paid quarterly from the issue date, according to a bourse filing.

Established in 1957, Riyad Bank is one of the largest financial institutions in Saudi Arabia.

The Saudi government owns 51 percent of the bank’s shares. 


Saudi Arabia and Morocco target trade worth $5bn annually

Saudi Arabia and Morocco target trade worth $5bn annually
Updated 05 October 2022

Saudi Arabia and Morocco target trade worth $5bn annually

Saudi Arabia and Morocco target trade worth $5bn annually

RIYADH: Saudi Arabia and Morocco plan to raise the volume of trade to $5 billion annually in light of the huge opportunities and capabilities of the two countries, according to Moroccan Minister of Industry and Trade Riyad Mezzour.

Mezzour was speaking at the Moroccan-Saudi Economic Forum, held by the Federation of Saudi Chambers and the General Federation of Moroccan Contracting on Oct. 4, with 130 companies from both countries participating.

Mezzour encouraged Saudi investors to take advantage of 670 industrial projects in Morocco.

Businessmen in both Saudi Arabia and Morocco need to establish a clear roadmap for economic relations between the two countries, as it is important to recognize the joint opportunities available in Africa and Europe with the Kingdom's Vision 2030, Saudi Commerce Minister Majid Al-Qasabi said.

The official visits and economic agreements have contributed to rapid trade growth in recent years, according to the chairman of the Federation of Saudi Chambers, Ajlan Alajlan.

The trade exchange reached SR9.7 billion ($2.5 billion) during the first half of this year, a value that exceeds SR5 billion for the entire year 2021.

The joint investments doubled significantly over the past years in various economic sectors such as industry, real estate, tourism, and agriculture, Alajlan said.

The two sides aim to reshape economic relations by studying and analyzing trade and investment opportunities and competitive advantages in the Saudi and Moroccan economies, he added.

Meanwhile, Chakib Alj, the president of the General Confederation of Moroccan enterprises, revealed that there are approximately 250 Saudi companies in Morocco, whereas there are 20 Moroccan companies in the Kingdom.

The current economic environment calls for joint efforts to increase food security through the development of agriculture and the establishment of new integrated value chains that integrate sustainability and innovation, Alj said.

In addition to identifying ways to develop companies and enhance their activities outside the Moroccan and Saudi markets, the forum called for easing administrative restrictions and non-tariff barriers, and the creation of a Moroccan-Saudi fund to facilitate trade.

The meeting focused on enhancing joint economic and trade cooperation, empowering the private sector, and developing investments between the two countries.

The meetings come as part of the minister's four-day official visit to Morocco, leading a government delegation consisting of officials from 14 government institutions and representatives of over 62 Saudi companies.

Furthermore, the Saudi Exports Development Authority partnered with the Moroccan-Saudi Economic Forum organized by the Federation of Saudi Chambers in collaboration with the General Authority for Foreign Trade to organize the "Saudi Made" trade mission to Morocco.

Saudi Exports, through this mission, focuses on several sectors, including construction, food, medical supplies, and auto spare parts.