MENA Project Tracker — Qatar to develop $1bn blue ammonia facility; Work on solar project begins in Egypt

Qatar Fertiliser Co. —a subsidiary of QatarEnergy— has partnered with QatarEnergy Renewable Solutions in creating a $1 billion blue ammonia facility.
Qatar Fertiliser Co. —a subsidiary of QatarEnergy— has partnered with QatarEnergy Renewable Solutions in creating a $1 billion blue ammonia facility.
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Updated 04 September 2022

MENA Project Tracker — Qatar to develop $1bn blue ammonia facility; Work on solar project begins in Egypt

MENA Project Tracker — Qatar to develop $1bn blue ammonia facility; Work on solar project begins in Egypt

CAIRO: A pair of consortiums — led by Tamasuk and Al-Rajhi Holding— have been shortlisted for a contract to develop a 244-bed Al-Ansar Hospital in Madinah, reported MEED.

The project will be carried out on the basis of public-private partnership.

The scope of work will include handling operations, equipment procurement, and working on the design and construction of the project.

Solar power plant in Egypt

Egypt’s Ministry of Electricity and Renewable Energy has begun work on a solar power plant with a production capacity of 10 GWh in the Suez Canal Economic Zone, reported Egypt Today.

It is part of many Chinese investments directed in the country’s manufacturing sector.

“There are great efforts made by the ministry in coordination with various authorities to implement Egypt’s strategy to produce 42 percent of the total energy from new and renewable sources by 2035,” stated Mohamed Shaker, minister of electricity and renewable energy.   

Qatar to develop $1bn blue ammonia facility

Qatar Fertiliser Co. —a subsidiary of QatarEnergy— has partnered with QatarEnergy Renewable Solutions in creating a $1 billion blue ammonia facility.

Located in Qatar’s Mesaieed Industrial City, the “Ammonia-7” project will hold up to 1.2 million tons a year of blue ammonia — making it the largest facility in the world of its kind.

The facility is expected to start operating in early 2026, reported MEED. 


Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market
Updated 13 sec ago

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

Saudi Real Estate Refinance Co. issues $933m in sukuk to spur liquidity in realty market

RIYADH: The Kingdom’s housing market will get a fresh stream of liquidity, with Saudi Real Estate Refinance Co. announcing SR3.5 billion ($933 million) in sukuk issuances. 

The latest issuance of the SRC, owned by the Public Investment Fund, marked the sixth tranche under its upsized SR20 billion sukuk program. 

The real estate finance company will keep boosting market liquidity and assisting lenders and investors, which will stabilize the Saudi mortgage market, stated SRC CEO Fabrice Susini.   

Furthermore, this move will also speed up the rise of homeownership in the country, he added. 

“The positive response from investors to SRC’s latest sukuk issuance is a clear testament to the strength of the Kingdom’s housing market and economy,” Susini said.

“As SRC continues to refinance existing financings for financiers, we are proud to contribute to developing a robust secondary home financing market that supports the efficiency and stability of the primary housing market,” the CEO continued.   

Earlier this month, SRC received an “A-” classification at the level of global credit and “ksaAAA” at the level of local credit with a stable outlook from the credit rating agency S&P Global.   

According to the rating company, an obligatory rated “A-” falls under an upper-medium category, indicating strong creditworthiness and a good capacity to meet its financial commitments.   

On the other hand, a rating of “AAA” on the national scale means the debtor’s capacity to meet its financial commitments on the obligation relative to other national debtors is extremely strong.   

According to the SRC website, the real estate financing company is rated “A-” stable by Fitch Ratings and “A2-” stable by Moody’s Investors Service. 
Founded in 2017 by the Kingdom’s PIF, SRC’s primary role is to provide banks and real estate finance companies with liquidity, enabling growth in the home financing sector to increase homeownership rates among Saudi citizens. 

The company issued two sukuks in 2022, the first tranche totaling SR4 billion in April and the other SR3 billion in September. 


Closing bell: Saudi main index closes flat at 11,140 points

Closing bell: Saudi main index closes flat at 11,140 points
Updated 16 min 11 sec ago

Closing bell: Saudi main index closes flat at 11,140 points

Closing bell: Saudi main index closes flat at 11,140 points

RIYADH: Saudi Arabia’s Tadawul All Share Index remained steady for the second consecutive day, gaining 4.31 points or 0.04 percent to close at 11,139.98. 

Parallel market Nomu, however, dropped 64.82 points to 20,943.02, while the MSCI Tadawul Index closed 0.23 percent up at 1,483.78. 

The total trading turnover of the benchmark index was SR4.94 billion ($1.32 billion) as 74 listed stocks advanced, while 130 retreated.

The top-performing stock of the day was National Medical Care Co., as its share price surged 8.57 percent to SR114. 

Abdullah Al Othaim Markets Co. and Saudia Dairy and Foodstuff Co. also performed well on Tuesday, as their share prices rose by 5.22 percent and 4.44 percent, respectively. 

Buruj Cooperative Insurance Co. was the worst performer; its share price dropped 3.98 percent to SR20.24.

Savola Group and Al Alamiya for Cooperative Insurance Co. were the worst performers, whose share prices fell 3.93 percent and 3.89 percent, respectively. 

On Tuesday, the share price of Saudia Dairy and Foodstuff Co. hit an all-time high of SR318.80 since its debut in Tadawul in 2005. The company, however, closed its trading at SR306 at the end of today’s session. 

Meanwhile, First Milling Co. has announced that it has set the initial public offering final price at SR60, implying a market capitalization of SR3.3 billion. 

In a statement to Tadawul, the company said the IPO coverage ratio reached 68.9 times.

“The impressive demand by participating parties for First Mills’ offer shares is a resounding validation of the company’s investment thesis. They appreciate the company’s long-term value creation potential supported by its market leadership, diverse product portfolio, outstanding financial performance and effective leadership team,” said Abdullah Ababtain, CEO of First Milling Co. 

On Tuesday, Saudi Aramco Base Oil Co., also known as Luberef, announced that it signed an amendment to its feedstock agreement with Saudi Arabian Oil Co. to supply additional 5,000 barrels per day of reduced crude oil. 

In a bourse filing, Luberef said that this amendment is expected to increase the total quantity of RCO received in its Yanbu facility from 45,000 bpd to 50,000 bpd, subject to product availability.

“This increase in RCO quantity is part of a business transformation program which is in line with Saudi Aramco’s transformation initiative for its joint ventures,” said Luberef in the statement. 

The Saudi Public Transport Co. announced the contract sign-off with the Jazan municipality for operating the public transport network in the region at a contract value of SR93 million.

SAPTCO said that the project will positively impact the company’s revenues in the second half of 2023. 


Saudi Arabia issues 55 mining licenses in April

Saudi Arabia issues 55 mining licenses in April
Updated 30 May 2023

Saudi Arabia issues 55 mining licenses in April

Saudi Arabia issues 55 mining licenses in April

RIYADH: The number of mining licenses handed out in Saudi Arabia showed sustained growth for the third consecutive month, as the government issued 55 new permits in April. 

According to the Saudi Ministry of Industry and Mineral Resources, this number is up from the 27 handed out in March and the 18 handed out in February. 

In April, the ministry issued 34 licenses for exploration, 17 for quarrying building materials, three for surplus mineral ores and one for mining and small mine exploitation.  

The total number of licenses issued in the sector until April amounted to 2,336 permits, including 1,454 permits for quarrying building materials, 634 for scavenging, 180 for mining and small mine exploitation, 36 for reconnaissance activities and 32 for the surplus of mineral ores.   

Moreover, Riyadh bagged 573 permits, Makkah 384, the Eastern Province 374 and Madinah 258. 

The ministry further reported that Asir issued 213 permits, Tabuk 149, Al-Qasim 90, Jazan 80 and Hail 68 in April. On the other hand, the number of permits Najran gave stood at 55, Al-Baha 39, the Northern Borders 27 and Al-Jawf 26.

The ministry has been actively pursuing opportunities to protect the mining sector and maximize its value in line with the Kingdom’s Vision 2030 goals and the National Industry Development and Logistics Program.   

Moreover, Saudi Arabia is on track to transform mining into the third pillar of the national industry and work to exploit the mineral resources in the Kingdom spread across more than 5,300 sites and valued at about SR5 trillion ($1.33 trillion).   

Last January, Mike Henry, the CEO of Australian mining giant BHP, stressed that mining activities of critical minerals worldwide should be accelerated to meet the energy transition targets over the next 30 years as the world dreams of a sustainable future.  

Speaking at the Future Minerals Forum in Riyadh, Henry said it is impossible to meet the rising demand for critical minerals if the world continues to move at the current pace.    

“Over the next 30 years, in order to meet the needs of the energy transition, the world is going to need two times as much copper, four times as much nickel, two times as much steel, and two times as much iron ore, as was needed over the past 30 years,” he said.


Saudi Central Bank grants Tarabut Gateway open banking certification

Saudi Central Bank grants Tarabut Gateway open banking certification
Updated 30 May 2023

Saudi Central Bank grants Tarabut Gateway open banking certification

Saudi Central Bank grants Tarabut Gateway open banking certification

CAIRO: As part of its efforts to become a global fintech hub, Saudi Arabia has granted open banking certification to Dubai-based Tarabut Gateway. 

Following the approval from the Saudi Central Bank, also known as SAMA, the fintech company aims to intensify its operations in the Kingdom. 

Tarabut Gateway, the region’s leading regulated open banking platform, has become one of the early recipients of SAMA’s permit to carry out its operations in Saudi Arabia.

Talking to Arab News, Abdullah Almoayed, CEO and founder of the fintech company, said that consumers in Saudi Arabia can now expect a wide range of innovative and personalized financial services.  

“We are aware of the unique challenges faced by small and medium enterprises in Saudi Arabia, particularly regarding cash-flow management and access to funding. We will address this issue head-on by assisting SMEs to access the funding they need, via open banking-enabled financial services and products,” Almoayed said.  

He said: “The new era of financial services we stand for is user-centric and contributes to customers’ financial well-being.”  

Tarabut Gateway is crafting its strategies to contribute to Saudi Arabia’s financial transformation, aligning its objectives with the Vision 2030 blueprint, Almoayed added.  

“To become one of the first entities to receive this certification, we had to prove our capabilities and commitment to Saudi Arabia’s rapidly evolving financial landscape which aligns perfectly with key objectives of our strategic growth plan,” Almoayed stated.  

He further added that, since its inception, TG’s role has been to anticipate and proactively adapt to regulatory innovation.  

“We were always working closely with regulators to foster sector innovation. We want to streamline financial operations on an industrial scale and facilitate economic growth in the process,” he said.  

With its focus on energizing the fintech ecosystem, the fintech company is set to provide a dynamic platform that enables banks, SMEs, lenders, and large corporations to tap into data, facilitate payments and devise groundbreaking financial solutions.  

“Demand for innovative financial solutions in the Kingdom is strong and consumer-driven,” Almoayed said.  

“In building the pipelines for financial data to flow freely between players in the finance industry, we provide organizations with the tools to innovate and think of novel solutions. This will improve consumers’ overall financial experiences and is part of our mission to contribute to a financially savvy and inclusive society,” he added.  

The company recently secured $32 million in funding in an effort to catalyze its open banking operations within the Kingdom.  


China’s Baoshan Iron and Steel Co. invests $4bn in Ras Al-Khair economic zone

China’s Baoshan Iron and Steel Co. invests $4bn in Ras Al-Khair economic zone
Updated 30 May 2023

China’s Baoshan Iron and Steel Co. invests $4bn in Ras Al-Khair economic zone

China’s Baoshan Iron and Steel Co. invests $4bn in Ras Al-Khair economic zone

RIYADH: Saudi Arabia’s manufacturing capacity is expected to boost with China’s Baoshan Iron and Steel Co. announcing its plans to invest SR15 billion ($4 billion) on a project in Ras Al-Khair’s new economic zone.   

The Shanghai-based company, one of the world’s largest steelmakers, will manufacture metal plates in the zone, it announced at an event in Riyadh on Monday.   

The investment is part of the Kingdom’s industrial outreach initiative to incentivize businesses to operate in its special economic zones.   

By providing preferential corporate tax rates, exempting businesses from many customs duties and allowing for full foreign ownership of enterprises, Saudi Arabia hopes to transform the regions into investment gateways. 

Saudi Arabia’s SEZs have also been in the spotlight as they attracted SR47.2 billion ($12.6 billion) worth of investments to date, affirming its emergence as a global trade hub.   

Apart from the existing investments made by companies like Lucid Motors and Seera, the Saudi Special Economic Zones Investment Forum in Riyadh on Monday also saw new investment pledges for projects in zones established in Ras Al-Khair, King Abdullah Economic City, Riyadh and Jazan.   

Oil and energy firm McDermott Arabia Co. is also planning to invest SR375 million in Ras Al-Khair to develop fully integrated engineering construction solutions for the energy industry.  

Furthermore, Danish equipment company Makeen Energy made a foray into the SEZ with an investment of SR2.14 billion.   

“Saudi Arabia will offer foreign investors operating in the Kingdom’s special economic zones extra incentives to hire local workforce,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, speaking at a forum in Riyadh on Monday.  

The minister noted that the SEZs would be exempt from Saudization requirements, and the Human Resources Development Fund would provide extra benefits should companies hire locals. 

“The incentives were decided after carefully studying regional and global benchmarks. And one of these incentives, which is very important probably to investors, is the exemption from Saudization requirements. Yet, they will receive the requirements from HRDF if they choose to hire Saudis,” said Al-Rajhi.