NRG Matters — Saudi Arabia signs 80MW deal for solar project; S. Korea to provide components for Egyptian N-plant

Located in Layla, 300 km south of the capital Riyadh, the solar PV IPP project is part of the third round of Saudi Arabia’s National Renewable Energy Program. 
Located in Layla, 300 km south of the capital Riyadh, the solar PV IPP project is part of the third round of Saudi Arabia’s National Renewable Energy Program. 
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Updated 28 August 2022

NRG Matters — Saudi Arabia signs 80MW deal for solar project; S. Korea to provide components for Egyptian N-plant

NRG Matters — Saudi Arabia signs 80MW deal for solar project;  S. Korea to provide components for Egyptian N-plant

RIYADH: Saudi Arabia’s Energy Ministry has signed a power-purchase agreement for the 80MW solar photovoltaic independent power producer project, according to MEED.

Located in Layla, 300 km south of the capital Riyadh, the solar PV IPP project is part of the third round of Saudi Arabia’s National Renewable Energy Program. 

It is part of Saudi Arabia’s plan to build 58.7GW of renewable capacity by 2030. 

Egypt nuclear plant

South Korea has inked a 3 trillion won ($2.2 billion) deal with Russia’s state-owned Rosatom to provide buildings and components for a new Egyptian nuclear plant, Bloomberg reported. 

Korea Hydro & Nuclear Power Co. won a contract to supply buildings, equipment and materials for Egypt’s El Dabaa project. 

Last month, Rosatom began the construction of Egypt’s first nuclear power plant.

Located 300 km northwest of Cairo, El Dabaa project will include four reactors with a 1.2GW capacity each.

 


Dubai bourse DFM to introduce changes to indices in Q4

Dubai bourse DFM to introduce changes to indices in Q4
Updated 29 sec ago

Dubai bourse DFM to introduce changes to indices in Q4

Dubai bourse DFM to introduce changes to indices in Q4

DUBAI: Dubai Financial Market said on Monday it planned to adopt a new methodology for its main equities indices, which will come into effect in the fourth quarter, according to Reuters.

The Dubai bourse’s general index, Sharia index and sector indices, will be calculated by S&P Dow Jones Indices, it said in a statement.

A key improvement among the changes is a limit on the weighting of a listed company to 10 percent from 20 percent, which should result in a larger representation of companies on the DFM’s benchmarks, it said.

The Dubai bourse said the index calculation will be based on actual free float adjusted market capitalization, and that the indices will be rebalanced on a quarterly basis, from semi-annually currently.

The bourse plans to align its sectors with an industry classification standard which is followed by institutional clients, it said.

DFM will have seven sectors: financials, industrials, real estate, utilities, communication services, materials and consumer staples.

The bourse has invited market participants for consultations on the index methodology ahead of possible changes, with the revised indexes to be launched in Q4, it said.

The changes follow a flurry of initial public offerings from state-linked entities this year, part of a government program intended to attract investors and boost activity on the stock exchange.

Toll-road operator Salik , which listed last week, raised 3.735 billion dirhams ($1.02 billion) by selling a 24.9 percent stake in its initial public offering, giving the company a market value of 15 billion dirhams.

Dubai business park operator TECOM Group in June raised 1.7 billion dirhams through the sale of 625 million ordinary shares, equivalent to 12.5 percent of the company in an IPO.

Dubai’s Water and Electricity Authority, known as DEWA, in April raised over $6 billion for its IPO, the region’s biggest since Saudi Aramco. 


UK discusses trade and investment opportunities with Saudi Arabia

UK discusses trade and investment opportunities with Saudi Arabia
Updated 30 min 17 sec ago

UK discusses trade and investment opportunities with Saudi Arabia

UK discusses trade and investment opportunities with Saudi Arabia

RIYADH: A UK delegation led by Lord Mayor of the City of London Alderman Vincent Keavney discussed trade and investment opportunities with Saudi Arabia's Minister of Investment Khalid Al-Falih during talks in Riyadh.

After the meeting, part of the ongoing UK-Gulf Cooperation Council free trade negotiations, Keavney said London’s expertise opens huge possibilities for the Kingdom as it seeks to diversify its economy away from oil as outlined in Vision 2030.

Keavney further noted that the UK already has a strong trade relationship with Saudi Arabia, and the investments made by the Public Investment Fund in Britain are fetching mutual benefits.

This is for the first time that Keavney is arriving in the Kingdom during his mayoralty, and his delegation of senior business leaders included Nicholas Lyons, chairman of the board at Phoenix Group and Sheriff of the City of London; Martin Gilbert, chairman of Toscafund, Revolut, and others; and Robert Cashmore, head of Institutional Funds Distribution, the Middle East at Octopus.

Prior to his visit to the Kingdom, Keavney, in an exclusive interview with Arab News, said that a free-trade agreement between the UK and the GCC will “significantly increase” their financial ties at a transformational moment for the global economy.

During the interview, Keavney pointed out that Saudi investment in Britain has already topped £65 billion ($69.36 billion) annually.

“Saudi Arabia has great transformational plans for its own economy, and the financial and professional services here in the UK have a huge amount to offer in helping implement and support this,” said Keavney.


Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO
Updated 03 October 2022

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

RIYADH: Oil prices jumped nearly 3 percent on Monday, as the Organization of the Petroleum Exporting Countries, known as OPEC+, considers cutting output by more than 1 million barrels a day in what would be its biggest reduction since the pandemic.

Brent crude futures rebounded $2.44, or 2.87 percent, to $87.58 a barrel by 10.13 a.m Saudi time, after settling down 0.6 percent on Friday.

US West Texas Intermediate crude was also up 2.87 percent, or $2.40, at $81.89 a barrel, after the previous session’s loss of 2.1 percent.

Shell to invest in second Malaysia oil, gas project in a month

Shell announced a second investment in Malaysia’s oil and gas sector in a month as the major and its partners, including Petronas, aim to revive output in an environment of tight global supply.

Shell’s decisions come after the war in Ukraine disrupted Russian oil and gas supplies and boosted prices. Oil and gas producers in Asia are struggling to sustain output after years of under-investment in the sector as international companies scaled back to focus on exploration and production in Africa and the Americas.

Sabah Shell Petroleum Co, a Malaysian unit of Shell, said on Monday it will invest in phase 4 of the Gumusut-Kakap-Geronggong-Jagus East deepwater offshore development project along with its partners. No amounts were given.

The GKGJE phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024, Shell Malaysia said in a statement.

Shell’s partners in the GKGJE project include ConocoPhillips Sabah Ltd., Petronas Carigali, Sabah Oil Limited, PT Pertamina Malaysia Eksplorasi Produksi and others.

Genel Energy appoints Weir as permanent CEO

Iraqi Kurdistan-focused oil firm Genel Energy appointed Paul Weir as its full-time CEO on Monday.

Weir, who previously served as the chief operating officer, was appointed as the interim CEO in June.

(With input from Reuters)


TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell
Updated 03 October 2022

TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell

RIYADH: The Saudi main index rose in Monday’s trading session as investors awaited the meeting of the Organization of the Petroleum Exporting Countries Plus to be held later in the week.

The Tadawul All Share Index started the session 0.53 percent higher to reach 11,548; the parallel market Nomu started almost flat at 19,956, as of 10:06 a.m. Saudi time.

Saudi oil giant Aramco started with a 0.42 percent increase, while Rabigh Refining and Petrochemical Co. was up 1.44 percent.

The Saudi National Bank, the Kingdom’s largest lender, added 1.12 percent, while Saudi British Bank increased by 2.12 percent.

The Kingdom’s most valued bank Al Rajhi gained 0.61 percent, while Alinma Bank gained 0.68 percent.

Mouwasat Medical Services Co. gained 0.69 percent, after completing the acquisition of 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal.

Najran Cement Co. grew 1.26 percent, after declaring cash dividends of SR0.25 per share to shareholders in the first half of 2022.

Leejam Sports Co. added 0.64 percent, following the opening of a new Ladies Xpress Fitness Center in Riyadh on Oc. 2, bringing the total number of its centers inside and outside the Kingdom to 154.


Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years
Updated 03 October 2022

Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years

RIYADH: Switzerland-based global investment bank and financial services firm Credit Suisse is fighting for its survival after the credit default swaps jumped 6 basis points to close to 247 basis points on Friday, the highest level in at least 10 years. 

According to a Financial Times report, Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors and have requested less than 100 days to deliver a new turnaround strategy. 

Credit Suisse has been facing turbulence in the market for at least one year. In March 2021, the company had a market capitalization of 30 billion Swiss francs ($30.35 billion), while it is just 10 billion Swiss francs now. 

On Friday, Credit Suisse CEO Ulrich Koerner reassured staff that the bank has a strong capital base and told the employees that he will send regular updates on the progress until it announces its new strategic plan on Oct. 27. 

“I am conscious that there is lots of uncertainty and speculation both outside and within the company. While you will appreciate that I am unable to share details of our transformation plans before Oct. 27, I also want to make sure that you hear from me directly during this challenging period,” Korner told employees in a memo dated Sept. 30. 

According to a Bloomberg report, Credit Suisse is now busy finalizing plans that will likely see sweeping changes to its investment bank and may even result in cutting its workforce by thousands. 

Last week Credit Suisse revealed that it is considering a possible sale of some assets and business as part of its strategic plan. Bloomberg reported that the bank is eyeing selling its securitized products trading unit, and is weighing the sale of its Latin American wealth management operations excluding Brazil. 

The report added that Credit Suisse is also considering reviving the First Boston brand name.