Saudi EXIM to open two offices in Africa as it eyes exports worth $400m: CEO

Exclusive Saudi EXIM to open two offices in Africa as it eyes exports worth $400m: CEO
Saad bin Abdulaziz Al-Khalb spoke to Arab News (AN)
Short Url
Updated 31 October 2022

Saudi EXIM to open two offices in Africa as it eyes exports worth $400m: CEO

Saudi EXIM to open two offices in Africa as it eyes exports worth $400m: CEO

RIYADH: Saudi Arabia’s Export-Import Bank is set to open two offices in Africa in 2023, as it plans exports worth SR1.5 billion ($400 million) through these centers, said its CEO. 

In an exclusive interview with Arab News on the sidelines of the Future Investment Initiative on Oct. 27, Saad bin Abdulaziz Al-Khalb said the bank is increasingly focusing on Africa as it plans global expansion in the future. 

“We have the plan to open our first two international offices in Africa. One in South Africa, and another in Egypt. We are targeting to attract or utilize SR1.3 billion or SR1.5 billion exports through these offices in a three year period,” said Al-Khalb. 

Al-Khalb said the Saudi EXIM Bank has provided SR20 billion to support the Kingdom’s exports since its establishment in February 2020. 

He further pointed out that the bank supplied SR10 billion to Saudi exporters in 2022 until September end. 

He added that this support shows the “flexibility and ability of Saudi EXIM to react to the market need and fill the gap as needed to export more and more.” 

Al-Khalb insisted the bank will contribute to the Kingdom’s National Industrial Strategy by providing financial solutions and insurance to exporters. 

The Saudi Industrial Strategy aims to increase exports to SR560 billion in 2030 from SR250 billion in 2020 — finally reaching over SR900 billion by 2035. 

Al-Khalb further added that Saudi EXIM Bank is working closely with ACWA Power on two projects — a solar power plant and a wind plant.

He added: “We are going to help the company (ACWA Power) and support their financial needs to build those new power plants on the regional level.”

Al-Khalb, however, did not reveal the amount involved in the deal with ACWA Power and said that negotiations are still underway, and the exact figure will be unveiled by the first quarter of 2023. 

He pointed out that 80 percent of Saudi EXIM Bank’s portfolio is allocated to the industrial sector and 40 percent is exclusively supplied to small and medium enterprises. 

Al-Khalb also lauded Crown Prince Mohammed bin Salman and the Kingdom’s global resilient logistics initiatives. 

“On Sunday, His Royal Highness, Crown Prince Mohammed bin Salman announced these great initiatives. The initiative itself mentioned that there will be an investment of around SR40 billion in the next three years,” Al-Khalb said. 

While speaking at a panel discussion during the event, Al-Khalb said that the main objective of EXIM is to ensure that no Saudi cross-border export fails due to a lack of insurance or financing. 

He added that Saudi Arabia’s Export Credit Agency and EXIM Bank are strategic partners for commercial and financial institutions, and support them in their credit offering and mitigating financial risks while carrying out cross-border and long-term transactions.


Investments in renewable energies must quadruple to meet climate target: IRENA

Investments in renewable energies must quadruple to meet climate target: IRENA
Updated 15 sec ago

Investments in renewable energies must quadruple to meet climate target: IRENA

Investments in renewable energies must quadruple to meet climate target: IRENA

BERLIN: Global investments in energy transition technologies must more than quadruple annually to stay in line with commitments made under the Paris climate accord, the International Renewable Energy Agency said on Tuesday.

Investments in renewable energy technologies reached a record of $1.3 trillion last year but that figure must rise to around $5 trillion annually to meet the key Paris accord target of limiting temperature increases to 1.5 degrees Celsius above pre-industrial levels, IRENA said.

In total, the world needs around $35 trillion for transition technology by 2030, including improving efficiency, electrification, grid expansion and flexibility, IRENA said.

Renewable energy deployment must grow from around 3,000 gigawatts annually today to over 10,000 GW in 2030, IRENA said, adding that more equality is needed in renewable expansion between industrial and developing countries.

New renewable energy projects in China, the EU and the US accounted for two-thirds of installed capacity last year, while Africa accounted for only 1 percent of renewable capacity installed.

"A fundamental shift in the support to developing nations must put more focus on energy access and climate adaptation," IRENA' Director General Francesco La Camera said, calling on financial institutions to direct more funds towards energy transition projects with better conditions.

IRENA called for directing planned fossil fuel investments — around $1 trillion of fossil fuel investments per year by 2030 — toward renewable energy technologies and infrastructure.


Closing bell: Saudi stocks close higher for third consecutive day

Closing bell: Saudi stocks close higher for third consecutive day
Updated 27 March 2023

Closing bell: Saudi stocks close higher for third consecutive day

Closing bell: Saudi stocks close higher for third consecutive day

RIYADH: Saudi Arabia’s Tadawul All Share Index rose for the third session in a row on Monday as it went up 4.25 points – 0.04 percent – to 10,463.61, as investors’ confidence grew on encouraging market conditions. 

On Monday, parallel market Nomu also went up, by 16.15 points or 0.908 percent, to close at 19,247.78, while the MSCI Tadawul 30 Index went down by 0.23 percent to 1,420.29. 

The total trading turnover of the benchmark index was SR7 billion ($1.86 billion).

Takween Advanced Industries Co. led the gainers, as its share prices went up 9.95 percent to SR8.62. 

Other top gainers of the day were Al Kathiri Holding Co. and Zain KSA, whose share prices rose 9.89 percent and 7.43 percent respectively. 

SABIC Agri-Nutrients Co. was the worst performer, with its share price dropping 8.61 percent to SR127.40. 

On the earnings front, Arab Sea Information System Co. incurred a net loss of SR10.43 million in 2022, compared to a net profit of SR21.6 million in 2021. Despite the loss reported, the company’s share prices surged by 3.95 percent to SR81.50. 

Another firm that reported losses in 2022 was Sadr Logistics Co. The company reported a net loss of SR7.2 million, versus a net profit of SR3.6 million a year earlier. Even though the firm incurred loss, its share prices rose 2.94 percent to SR35. 

Wafrah for Industry and Development Co. revealed its net profit in 2022 was SR19 million, compared to the SR11 million net loss incurred in 2021. Driven by the rise in profit, its share prices rose by 1.20 percent to SR33.60. 

Meanwhile, Alamar Foods Co. also reported a net profit of SR115.25 million in 2022, down 1.83 percent from 117.40 in 2021. The company’s share prices closed at SR141.00, down 7.11 percent. 

Savola Group's net profit hit SR742.8 million, up 234.75 percent, compared to SR221.9 million in 2021. Driven by the rise in profits, the company’s directors recommended a 6.6 percent dividend payout, or SR0.66 per share, for 2022, according to a Tadawul statement. The company’s share prices were intact on Monday at SR27. 

The net profit of Saudi Networkers Services Co. also surged by 13.99 percent in 2022 to SR32.32 million. As the profit of the company surged, the company’s share prices increased by 1.08 percent to SR56. 


Qatar launches new derivatives exchange framework

Qatar launches new derivatives exchange framework
Updated 27 March 2023

Qatar launches new derivatives exchange framework

Qatar launches new derivatives exchange framework

RIYADH: Qatar’s stock exchange will introduce a new derivatives market that allows the trading of options and future contracts on local stocks and the main equity index, the country’s financial center regulatory authority announced on Monday.

After a three-month consultation with investors and market participants, the Qatar Financial Centre Regulatory Authority announced the new regulatory framework for listed derivatives.  

“The launch of the derivatives exchange will be an important milestone in the development of the Qatar capital markets and Qatar’s ambition to move to developed market status,” said the stock exchange’s acting CEO, Abdulaziz Al-Emadi.  

Option contracts give their holders the right, but not the obligation, to buy or sell shares of the underlying company at a specific price on or before a certain date, usually referred to as the expiration day.

Future contracts on the other hand are types of derivatives whereby the involved parties transact shares of a specific company at a predetermined future date and price.

The exchange also plans to set up an entity that will provide clearing and settlement services for trades in options and derivative contracts, QFCRA said in a statement.

The market will allow options, contracts linked to underlying assets, and futures, contracts set at a future date, to be traded in local stocks and the market’s equity index. 

Michael Ryan, CEO of the QFCRA, added: “The regulatory authority looks forward to working with the Qatar Stock Exchange to launch the new derivatives exchange, as this exchange will provide opportunities that allow investors to better manage and diversify their financial portfolios.” 

The bourse’s rules also enable the central clearing house to manage settlement risks and ensure an efficient settlement process. 

Al-Emadi added: “The issuance of the Derivatives Markets and Exchanges Rules for the year 2023 establishes the necessary regulatory framework for the Qatar Stock Exchange to move forward with its plans to establish a derivatives exchange and the counterparty to the central clearing house.” 

According to the American finance company and index benchmarker MSCI, Qatar, is still identified as an emerging market. The leading liquefied natural gas exporter is now redirecting its focus to the development of its equities market by opening it up to a wider investor base and introducing more listings.  

In January, Qatar’s bourse welcomed its first initial public offering, IT services firm MEEZA, in almost three years under new regulations which allowed companies to offer a price range to test investor appetite and determine pricing.


UAE In-Focus – Abu Dhabi’s Presight AI raises $496m in IPO  

UAE In-Focus – Abu Dhabi’s Presight AI raises $496m in IPO  
Updated 27 March 2023

UAE In-Focus – Abu Dhabi’s Presight AI raises $496m in IPO  

UAE In-Focus – Abu Dhabi’s Presight AI raises $496m in IPO  

RIYADH: Presight AI, a data analytics firm owned by Abu Dhabi’s G42 Group, has listed and started trading its shares on the First Market of the Abu Dhabi Stock Exchange.  

The initial public offering, which raised roughly 1.822 billion dirhams ($496 million) in proceeds, witnessed strong demand from retail and professional investors.  

The IPO was oversubscribed by 136 times, excluding the commitment from the company’s cornerstone investor, International Holding Corporation.  

Presight’s shares are also certified to be Shariah compliant, according to an announcement by the Shariah Board of Dubai Islamic Bank, the IPO’s lead manager.

“We are delighted to have completed Presight’s IPO, and to begin our next chapter as only the second technology company to be listed on the ADX, reinforcing our position as a pioneer in the industry,” Mansoor Al Mansoori, chairman of Presight, said.  

Presight’s IPO now gives investors the opportunity to own a share of the data analytics company powered by AI, hence enabling positive societal impact. The company’s products are used in three major industries with significant impact and market development potential including public services, finance and sports.  

Al Ansari completes IPO  

UAE-based exchange house Al Ansari Financial Services announced that the final offer price for its IPO has been set at 1.03 dirhams per share, which is at the top of the previously indicated price range from 1.00 dirhams per share.  

The statement comes after the book-building and subscription processes for its IPO on March 24, have been completed. Al Ansari raised 773 million dirhams with its IPO.  

Last week, the company expanded the size of its retail offering from 5 percent of the share capital to 7.5 percent in response to strong investor demand.  

The dividend yield will be at least 7.8 percent at the listing price, and the market value of the group will be 7.73 billion dirhams.  

Following the completion of the IPO, Al Ansari Holding will continue to own 90 percent of the group’s issued share capital.  


Saudi Electricity Co. plans capital expenditure increase to $9.3bn for 2023

Saudi Electricity Co. plans capital expenditure increase to $9.3bn for 2023
Updated 27 March 2023

Saudi Electricity Co. plans capital expenditure increase to $9.3bn for 2023

Saudi Electricity Co. plans capital expenditure increase to $9.3bn for 2023

RIYADH: State-owned Saudi Electricity Co. has announced that it intends to allocate between SR30 billion ($8 billion) and SR35 billion for its 2023 capital expenditure, according to the company’s 2022 financial presentation. 

This is at least 10 percent higher than the electric power distribution firm’s 2022 capex which stood at SR27.4 billion. 

Even though SEC did not provide a clear breakdown of the allocated amount, it is projected that expenditure in transmission and distribution infrastructure will be a priority considering that they dominated the firm’s capital expenditure for the past three years.  

In addition to this, SEC shed light on plans to further grow and expand its fleet, develop its distribution as well as transmission pipelines, and potentially achieve 23 percent automation within its distribution grid.  

Between 2021 and 2022, the firm experienced a 0.6 percent surge in generation capacity from 83,036 MW to 83,539 MW.  

Similarly, total load also rose 1.8 percent in the same period to reach 65,301 MW in 2022, up from 64,161 in 2021.  

On the other hand, the energy produced increased 2.6 percent to hit 191,964 GW in 2022, up from 168,985 GW a year earlier.  

Meanwhile, SEC’s fuel consumption hit 348 million barrels of oil equivalent, or mmboe, per day in 2022, reflecting an 8.1 percent boost compared to 2021’s 332 mmboe a day. 

As for the total number of substations, they rose to reach 1,209 in 2022 in comparison to the 1,190 reported back in 2021. Consequently, this accounted for a 2.8 percent increase in transformers’ capacity.  

With regard to the number of registered customers, the company registered a 4 percent jump to reach 10.9 million in 2022, up from 10.5 million in 2021.  

Established in 2000, SEC has monopolized generation, transmission and distribution of electric power in the Kingdom through 45 power generation plants in the country. 

The firm’s vision revolves around achieving integration of the environment, economy and social issues into the firm’s corporate cultural and economic values in order to accomplish the greater objectives of sustainable development.