Saudi Arabia and Japan sign 15 investment agreements during bilateral forum 

Saudi Arabia and Japan sign 15 investment agreements during bilateral forum 
The agreements were signed to drive investment in the sector of metals, marine, petrochemicals, and automotive among others. (MISA)
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Updated 26 December 2022

Saudi Arabia and Japan sign 15 investment agreements during bilateral forum 

Saudi Arabia and Japan sign 15 investment agreements during bilateral forum 

RIYADH: Saudi Arabia and Japan on Monday signed 15 strategic investment agreements spread across various industries during the Saudi Japan Investment Forum held in Riyadh, as both countries look to deepen business ties.  

The agreements were signed to drive investment in the sector of metals, marine, petrochemicals, and automotive among others, with around 99 Japanese companies investing in the Kingdom as both countries want a further boost in their economic relations. 

Speaking during the forum Saudi Minister of Investment Khalid Al-Falih said the two countries have bolstered their relationship with tremendous dedication as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030. 

The minister added that Saudi Arabia will utilize its relationship with the east Asian country to build more than 500,000 electric cars annually by the end of the decade.

Moreover, the Kingdom aims to build five largest marine industry parks in the world in Ras Al-Khair, Al Falih said during the forum. 

He added that the Kingdom aims to become the world’s leading energy nation as the two countries intend to cooperate for a smoother energy transition. 

Al-Falih said Saudi Arabia aims to become a major hub for gaming and e-sports by 2030 with content that can be exported in the region and globally. 

One day before the forum, Saudi Arabia and Japan held a ministerial meeting in Riyadh, the Saudi Press Agency reported. 

Saudi Minister of Energy Prince Abdulaziz bin Salman, and Japan’s Minister of Economy, Trade and Industry Nishimura Yasutoshi, signed a memorandum of cooperation in the circular carbon economy and carbon recycling fields as well as hydrogen, fuel ammonia, and derivatives. 

Both ministers agreed to focus on emissions reduction rather than energy sources through the effective deployment of carbon recycling and a circular carbon economy. 

The dialogue also expressed the two countries’ ambitions to collaborate in the fields of petrochemicals to maximize integration across the value chain, SPA reported. 

The two sides also revealed their intentions to continue to collaborate in the energy sector with a focus on electricity, renewable energy, energy efficiency and innovation. 

Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 
Updated 16 sec ago

Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 

RIYADH: Saudi Arabia’s Tadawul All Share Index increased 60.39 points on Monday – or 0.59 percent – to close at 10,218.12.

MSCI Tadawul 30 Index inched up 0.69 percent to 1,386.65, and the parallel market, Nomu, slightly edged down by 0.05 percent closing at 18,968.30.   

TASI’s total trading turnover of the benchmark index was SR7.6 billion ($2.02 billion) as 111 stocks of the listed 224 advanced and 95 receded.    

Themar Development Holding Co. was the top gainer of the day, closing the trading session up 9.91 percent at SR44.35 

The second-best performer was Alima Tokio Marine Co., increasing 9.70 percent to SR14.48.   

Elm was the third-best performer, rising 7.67 percent - or 31 points – to SR435, compared to its opening at SR404. 

Other top performers of the day were Dar Alarkan Real Estate Development Co., and Makkah Construction and Development Co. 

The biggest faller of the day was BinDawood Holding Co., which slipped by 2.96 percent to SR52.5.  

Nahdi Medical Co. is the next worst performer of the day, decreasing by 2.48 percent to SR181. 

The other poor performers were Gulf Insurance Group, Alinma Hospitality REIT Fund, and Jabal Omar Development Co. 

Non-institutional foreign investors, excluding Saudi Aramco, reduced their stake in Tadawul-listed stocks to 10.45 percent, or SR281.79 billion, which is represented by swap holders, residents, and qualified foreign investors. 

On an announcement front, Saudi National Bank's share price increased by 3.86 percent, closing at SR44.4. The bank also said in a statement that the changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans. 

Rawasi Albina Investment Co. announced its annual financial results for 2022, reporting a 19.54 percent increase in its net profit to SR20.8 million. Moreover, Rawasi’s share price climbed 11.98 percent, closing at SR80. 

Perfect Presentation for Commercial Services Co. also announced a tremendous increase in net profit by 63.06 percent to SR131.4 million. The company’s shares closed 3.55 up at SR175. 

CHUBB Arabia Cooperative Insurance Co. reported a 12.54 percent decrease in net profit to almost SR13.4 million compared to SR15.3 million in 2021. CHUBB’s share price decreased 0.24 percent to close at SR16.48. 

The company correlated the decline to an increase in General and Administrative Expenses an increase in Policy Acquisition Costs in higher drilling utilization and an increase in daily rate, notably in the offshore segment   

Dallah Healthcare Co. reported a net profit of SR274 billion, up 6.13 percent compared to 2021. Dallah attributed the increase to a revenue increase of 18.18 percent in 2022 to SR2.4 billion. The healthcare company’s share price slightly decreased by 0.56 percent, closing at SR141.6. 

Saudi Reinsurance Co. also announced its financial results for 2022 and reported a net loss of SR1.6 million, down 58.1 percent compared to almost SR4 million in 2021. However, its share price increased by 1.66 percent to SR14.7 per share. 

Aramco, DHL form new procurement and logistics hub JV

Aramco, DHL form new procurement and logistics hub JV
Updated 2 min 55 sec ago

Aramco, DHL form new procurement and logistics hub JV

Aramco, DHL form new procurement and logistics hub JV

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, announced a new end-to-end procurement and logistics hub joint venture with logistics firm DHL Supply Chain. 

Expected to be operational in 2025, the JV aims to initially focus on the Saudi market, with plans to expand across the Middle East and North Africa region.  

The new venture aims to provide top-notch integrated procurement and logistics services to further enhance supply chain efficiency as well as sustainability in the region, the company said in a press release.   

The JV, which the company said is the first-of-its-kind hub, will provide reliable and sturdy end-to-end services to customers within the industrial, energy, chemical, and petrochemical sectors.  

“This partnership brings together two industry leaders, each with long and storied histories,” said Aramco President and CEO Amin Nasser.  

By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the shipping and logistics expertise of DHL, he said they aim to enable the procurement and logistics hub joint venture to serve as a one-stop hub for customers’ supply chain needs.  

“We anticipate that it will not only advance the economic goals of our two companies but also accelerate growth across Saudi Arabia and the MENA region,” the CEO emphasized.   

DHL Supply Chain CEO Oscar de Bok added: “By working in partnership with Aramco, we aim to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities.”  

NEOM ranks first in Forbes’ top 10 future Saudi companies

NEOM ranks first in Forbes’ top 10 future Saudi companies
Updated 11 min 9 sec ago

NEOM ranks first in Forbes’ top 10 future Saudi companies

NEOM ranks first in Forbes’ top 10 future Saudi companies

RIYADH: Saudi Arabia’s $500 billion signature giga-project NEOM has claimed the top position in Forbes’ new list of Top 10 Economies of the Future Companies in Saudi Arabia. 

NEOM is part of 40 firms that are divided into four categories by Forbes to highlight the Kingdom’s most progressive firms.  

Prepared in partnership with Saudi Arabia’s Research, Development, and Innovation Authority, the report includes the 10 most innovative companies in Saudi Arabia, with NEOM claiming the third position in this category.  

The report noted that the city relies heavily on 5G hyperconnectivity, Artificial Intelligence, robotics, purpose-built data centers, big data analytics, augmented virtual reality, and automated guided vehicles within its mega projects: Trojena, Oxagon, and THE LINE. 

It added that the Saudi crown prince has invested $1 billion in AI, including a metaverse platform in 2022, through NEOM Tech & Digital Co. 

“The Saudi Arabian government — with the support of major telecom and large industrial companies — has been developing the country’s innovation ecosystem, and these efforts are starting to show results,” said Forbes.    

The Saudi Telecom Co., also known as stc, was revealed as the Kingdom’s second Economy of the Future Co., whereas Al Rajhi Bank came in third.   

The Saudi Arabian Oil Co., also known as Saudi Aramco, led the way as the most innovative company as well as the top energy and industrial leadership company, according to the Forbes report.   

With 70 percent of its shares owned by Aramco, the Saudi chemical manufacturing company SABIC came in second in innovation and energy and industrial leadership in 2022.   

"Saudi Arabia is on the way to becoming a global innovation powerhouse, it has all the ingredients in place: World-class infrastructure, a young, educated workforce, large companies with big pockets, and supportive leadership,” added Forbes.  

GAMI launches new platform to boost foreign investment in Kingdom’s defense sector

GAMI launches new platform to boost foreign investment in Kingdom’s defense sector
Updated 15 min 53 sec ago

GAMI launches new platform to boost foreign investment in Kingdom’s defense sector

GAMI launches new platform to boost foreign investment in Kingdom’s defense sector

RIYADH: The General Authority for Military Industries has launched a new platform through which local and international investors will be able to access opportunities in Saudi Arabia’s defense industry.  

The Military Industries Enabler initiative will give investors a background of the sector in the Kingdom, including policies, procedures, demand, and incentives.

Ahmed Al-Ohali, Governor of GAMI, told Arab News: “Our objective is to build a very robust, sustainable, defense industry with technologies in Saudi Arabia, satisfying the needs of the defense and security entities, satisfying our aspiration of human capital Saudization in this defense industry, and also satisfying our ambition into bringing huge investment to contribute to the GDP (gross domestic product) by 2030.”

The launch of the platform acts as an integral step for the Kingdom as it seeks to create an attractive investment environment for entities in Saudi Arabia or abroad with plans to venture into the defense industry.

With the goal of elevating the investment process, integrating with relevant sectors, and various inclusive services, the initiative targets organizations within the sector, as well as individuals and governmental institutions.

Al-Ohali said: “The defense industry in Saudi Arabia is a new industry, so we are building the infrastructure for the success of this industry… We made it very clear that whoever wants to invest in the Saudi industry, a Saudi investor or a foreign investor, will be treated equally as long as they fulfill their obligations and commitment to the areas.”

Investors will be able to access various services including military licenses, enablers, general force planning, and a library of military specifications and standards through the Military Industries Enabler platform.

GAMI has incentivised governmental investment in Saudi’s defense industry through funding programs, guaranteeing export insurance, bolstering education costs and qualifying human resources.

It has also removed VAT costs, is supporting small and medium enterprises, and ensuring a government procurement system.

Al-Ohali said: “(The platform) contains all the policies and procedures that will clarify to the investors the demand for certain products, armaments, over the next 10 years. 

He went on: “(The incentives) includes some financial incentives, grants, for example technology and strategic products, which includes interest-free loans for certain products. 

“It contains also regular loans by SIDF (Saudi Industrial Development Fund). These incentives also include zero VAT for local manufacturing, human capital development, training, scholarships in the Kingdom and out of the Kingdom.”

GAMI is in the process of establishing a coordination committee for military industries with private and public sectors, aiming to enhance communication, exchange knowledge and experience, and contribute to the localization of strategic military industries and technologies, the Governor mentioned during the event.

The defense sector has significantly transformed since the establishment of the Authority in 2017, where 349 constituent permits and licenses were issued for 194 facilities operating in Saudi’s military defense sector.

In 2018, the localization rate within the sector was a mere 2 percent, and has increased to 13.7 percent of the total military services and equipment by the end of 2022.

There are currently 62 service capabilities in the sector across the maritime, land, armament, and advanced interactive electronic fields, and over 74 dedicated investment opportunities in the supply chain project estimated at SR270 million ($71.87 million).

Al-Ohali said: “They’ll find it a very comprehensive platform that gives them a very clear picture of the defense industry in Saudi Arabia, from policies and procedures, demand and incentives.”

NEOM’s ENOWA signs agreement to establish first hydrogen fueling station 

NEOM’s ENOWA signs agreement to establish first hydrogen fueling station 
Updated 20 March 2023

NEOM’s ENOWA signs agreement to establish first hydrogen fueling station 

NEOM’s ENOWA signs agreement to establish first hydrogen fueling station 

RIYADH: NEOM’s water and electricity subsidiary ENOWA has signed an agreement with Air Products Qudra to build, own, and operate the giga-project’s first hydrogen fueling station. 

Construction on the facility is set to commence in the second half of the year and will help decarbonize heavy modes of transport covering buses and trucks, according to Air Products Qudra’s website. 

“We look forward to contributing our world-leading hydrogen expertise and fueling technology in support of NEOM’s decarbonization goals,” said Ebubekir Koyuncu, Air Products Qudra’s CEO, adding: “Producing and distributing clean hydrogen energy solutions for use in heavy-duty fuel cell vehicles, as well as industrial applications and energy storage, is part of our DNA.”

Air Products Qudra will support NEOM’s environmental development goals by providing a large-scale decarbonizing solution as well as the critical infrastructure for sustainability. 

Peter Terium, CEO of ENOWA, said: “We are delighted to partner with Air Products Qudra in providing hydrogen-powered mobility solutions. Jointly we accelerate innovations in clean technologies fueled by green hydrogen, and we contribute to hydrogen mobility markets and a sustainable future of global decarbonization.”  

NEOM is Saudi Arabia’s $500 billion giga-city that aims to change the traditional residential and work lifestyle through eco-friendly activity, while ENOWA acts as an incubator for developing new, sustainable energy and water businesses while boosting the economic sector regionally.   

Air Products Qudra is a joint venture between development and investment company Air Products Middle East and Qudra Energy, which is Vision Invest’s industrial gasses and composites arm. 

The company also signed a memorandum of understanding last year with the Royal Commission for Jubail to establish the first hydrogen fuel station in Jubail.