Mining firm Saudi Lime aims to boost capacity by 40% following CMA nod to list on Tadawul 

Short Url
Updated 11 January 2023

Mining firm Saudi Lime aims to boost capacity by 40% following CMA nod to list on Tadawul 

Mining firm Saudi Lime aims to boost capacity by 40% following CMA nod to list on Tadawul 

RIYADH: Riyadh-based mining company Saudi Lime has announced plans to list its shares on the Saudi Stock Exchange just weeks after receiving the Capital Market Authority’s approval to list on the parallel market Nomu, the CEO revealed. 

In an exclusive interview with Arab News on the sidelines of the Future Minerals Forum, Ahmed Elewa revealed that the mining firm will dedicate the coming two years to be part of the Kingdom’s main market. 

“We are the first company in the mining sector related to limestone that went into an IPO and already got the CMA’s approval,” the CEO disclosed. 

In addition to this, Saudi Lime aims to boost capacity by an estimated 40 percent in the coming two years, Elewa stressed. 

“We have a very good plan to expand and increase our capacity right now from 1,500 tons per day to be 2000 or 2,200 tons per day,” he elaborated. 

Talking about the company’s strategy for next five years, the CEO revealed that Saudi Lime will also be working on aggressive expansion plans as it is considering setting footprint in another country in the Middle East and North Africa region such as Oman or even the UAE. 

Looking into the future, the executive warned that the mining sector is expected to be exposed to a challenge of scarce raw materials. “Fortunately, Saudi Lime has its own raw materials mining resource which will enable us to secure these resources at least for the coming five to ten years."  

The CEO revealed that the company has spent more than 10 percent of its net income on employees, “to improve their skills and to give them specialized trainings in Saudi Arabia and in Europe.” 

Saudi Lime, which operates as the Kingdom’s sole supplier for sand lime blocks and bricks, closed the year 2022 with revenues that exceeded expectations amid high demand for its products. By the end of the year, the company’s sales stood at over SR110.5 million ($26.7 million) and it achieved more than 10 percent in net income. 


Eurozone inflation tumbles, fuelling ECB rates debate 

Eurozone inflation tumbles, fuelling ECB rates debate 
Updated 13 sec ago

Eurozone inflation tumbles, fuelling ECB rates debate 

Eurozone inflation tumbles, fuelling ECB rates debate 

FRANKFURT: Eurozone inflation eased more than expected last month as underlying price growth also slowed, fuelling a debate about the need for further European Central Bank rate hikes beyond an increase later this month. 

Inflation in the 20 nations sharing the euro eased to 6.1 percent in May from 7.0 percent in April, below expectations for 6.3 percent in a Reuters poll of economists. 

The reading came as only a modest surprise for investors, however, as national data earlier this week foreshadowed the drop. 

Core inflation, which excludes volatile food and fuel prices, and which has played an increasing role in the ECB’s policy deliberations, fell to 5.3 percent from 5.6 percent, coming well under expectations for 5.5 percent. 

The ECB has raised base rates by a combined 375 basis points to 3.25 percent over the past year to combat runaway prices and has essentially committed to another 25-basis point hike on June 15 given high underlying price pressures. 

“Today, inflation is too high, and it is set to remain so for too long,” ECB President Christine Lagarde said on Thursday. “That is why we have hiked rates at our fastest pace ever – and we have made clear that we still have ground to cover to bring interest rates to sufficiently restrictive levels.” 

Some economists argued that the bigger-than-forecast drop in underlying inflation suggests that not much work is left to be done. 

“Underlying inflation has probably passed its peak,” Commerzbank economist Christoph Weil said. “This supports our expectation that the ECB will raise key interest rates by 25 basis points for the last time in June.” 

Several influential policymakers, including the central bank governors of Germany, the Netherlands and Ireland, have already put a July rate hike on the table, and other economists sided with the policy hawks. 

They argue that July must be in play, partly because the ECB has been wrong about the inflation path for so long, it would rather err on the side of caution. 

“The May numbers and broader economic data will most likely convince the ECB to continue 25 basis points hikes in June and July and in our baseline forecast to pause after that,” Nordea said in a note. 

While Thursday’s benign price data add to the case for caution, Europe’s inflation problem is far from solved as price growth for many core items, particularly services, remains stubbornly high. 

Services inflation slowed to 5.0 percent from 5.2 percent while price growth for industrial goods eased to 5.8 percent from 6.2 percent, still excessive but both moving in the right direction. 

The ECB is also likely to take some comfort from the slowdown in food inflation to 12.5 percent from 13.5 percent as pressures on that front were still expected to build for some time. 

Recession risk  

Lower energy prices could push down headline inflation faster than some forecasts, but recent wage settlements could keep core inflation high. 

Eurozone wage growth is hovering in the 5 percent to 6 percent range, twice the rate that would be consistent with the ECB’s inflation target. 

But wages need to catch up after inflation ate deep into real incomes for years and the ECB is hoping that once inflation slows, wage growth will follow, so they will mutually extinguish each other. 

While that is a plausible scenario, the bloc’s labor market is exceptionally tight and firms, particularly in services, are reporting increasing labor shortages, an upside risk for wages and hence inflation. 

Another potential concern for the ECB is that economic growth appears less resilient than thought, particularly in manufacturing, with a raft of indicators showing that industrial activity could weigh on the overall economy even as services boom. 

This raises the risk that sharply higher borrowing costs could tip the bloc into recession, an outcome the ECB has tried to avoid. 

Financial investors see two more rate hikes from the ECB, with the first move fully priced in by June and a second in either July or September. 


Oil Updates — crude edges up on potential US rate hike pause 

Oil Updates — crude edges up on potential US rate hike pause 
Updated 16 min 58 sec ago

Oil Updates — crude edges up on potential US rate hike pause 

Oil Updates — crude edges up on potential US rate hike pause 

RIYADH: Oil prices rose on Thursday, reversing earlier losses, as a potential pause in US interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism about further fuel demand growth in the world’s biggest oil consumer. 

Brent crude futures for August rose 58 cents, or 0.80 percent, to $72.18 a barrel by 9:55 a.m. Saudi time, while US West Texas Intermediate crude edged up by 49 cents, or 0.72 percent, to $68.58 a barrel. 

US Federal Reserve officials on Wednesday pointed toward a potential rate hike “skip” in June that reversed market expectations of an imminent hike that could slow economic growth and weaken oil demand. 

Additionally, the US House of Representatives’ passage of a bill suspending the US government’s $31.4 trillion debt ceiling improved the chances of averting a disastrous government default. 

Barclays slashes Brent oil price

British multinational bank Barclays has slashed the average price of its Brent crude forecast for this year from $92 to $87 a barrel. 

The bank also slashed its price forecast of Brent for 2024 as it cut the average projected price to $87 a barrel from $97. 

China’s CNOOC begins production at new offshore well in Brazil 

China’s CNOOC Ltd. has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday. 

The well is the fifth phase of the Buzios oil field off Brazil’s southeast coast. At an average water depth of 1,900 meters to 2,200 meters, the field is the world’s largest deep-water pre-salt oil field, with daily production of 600,000 barrels, the company said. 

CNOOC’s Brazilian subsidiary owns 7.34 percent of the Buzios shared reservoir, which is 88.99 percent owned by Brazilian state-owned oil and gas company Petrobras. 

CNOOC paid $1.9 billion to Petrobras last year to secure a 5 percent stake in a production sharing agreement at the field. 

Russia says ‘no final decisions’ yet on oil refiner subsidies 

Russia’s Finance Ministry said on Wednesday that no final decision had been made regarding plans to halve subsidies for oil refiners. 

The Interfax News Agency, citing sources, said the plans to halve the subsidies may be postponed to September. 

“The issue is being discussed in the government. No final decisions have been taken,” a finance ministry spokesperson told Reuters. 

(With input from Reuters) 


Red Sea Global announces new sailing club to improve tourism prospects

Red Sea Global announces new sailing club to improve tourism prospects
Updated 01 June 2023

Red Sea Global announces new sailing club to improve tourism prospects

Red Sea Global announces new sailing club to improve tourism prospects

RIYADH: Saudi Arabia is expected to witness a huge influx of sailors, windsurfers and tourists, with multi-project developer Red Sea Global announcing the launch of a new sailing club in the Kingdom. 

According to a press release, RSG’s water sports subsidiary WAMA will operate the sailing club. 

“Sailing is about freedom and adventure while surrounded by the beauty of the ocean. As a pioneer of regenerative tourism and with our first hotels on track to open this year, we are certain this will be a hugely popular activity among our visitors,” said John Pagano, group CEO of RSG, in the statement. 

He added: “The WAMA Sailing Club will provide everyone, regardless of background or ability, the opportunity to explore the wonders of the Red Sea archipelago, experience an exhilarating sport, learn more about marine conservation and enjoy the sense of independence and freedom sailing offers.” 

The press release further noted that the sailing club would provide activities such as sailing, crewing, trapezing and windsurfing in the Red Sea. 

Developing tourism is a crucial agenda for Saudi Arabia as it successfully pursues its economic diversification program. 

Saudi Arabia’s National Tourism Strategy aims to attract 100 million visitors by 2030, besides increasing the tourism sector’s contribution to more than 10 percent of the gross domestic product. The strategy also eyes creating an additional one million jobs in the Kingdom. 

According to RSG, the new sailing club is also expected to create employment opportunities for Saudis, boosting the hospitality sector in the Kingdom. 

“The club will also create exciting employment opportunities for Saudis and international sailors, boosting the Kingdom’s hospitality and sports sector and contributing to Saudi Vision 2030. This will include work experience for Saudi teenagers, who will be able to learn new skills and enhance their understanding of water-based careers,” said RSG in the press statement. 

UK-based RS Sailing, an international designer, builder and supplier of sailboats, is also supporting WAMA Sailing Club in its operations. 

“Our passion is inspiring more people to discover the joys of sailing. That is why our work with RSG to open this stunning stretch of coastline to the sailing community and supporting the launch of the WAMA Sailing Club is a moment of real pride for our team,” said Michiel Geerling, commercial director at RS Sailing. 


Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 
Updated 01 June 2023

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

Abu Dhabi’s ADNOC Logistics & Services trades 44.8% over IPO price in debut 

DUBAI: Shares in Abu Dhabi’s ADNOC Logistics & Services climbed 44.8 percent above their listing price on its market debut on Thursday, after raising $769 million in an initial public offering for 19 percent of the business. 

Shares traded at 2.91 UAE dirhams ($0.79) as the Abu Dhabi market opened against an IPO price at the top of the indicative range at 2.01 dirhams per share. 

ADNOC L&S exports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi. 

It was created in 2016 following a merger between Abu Dhabi National Tanker Co., Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co. 


US debt ceiling bill passes House with broad bipartisan support

US debt ceiling bill passes House with broad bipartisan support
Updated 01 June 2023

US debt ceiling bill passes House with broad bipartisan support

US debt ceiling bill passes House with broad bipartisan support

WASHINGTON: The US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans to overcome opposition led by hard-line conservatives and avoid a catastrophic default.
The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden’s desk before a Monday deadline, when the federal government is expected to run out of money to pay its bills.
“This agreement is good news for the American people and the American economy,” Biden said after the vote. “I urge the Senate to pass it as quickly as possible so that I can sign it into law.”
The measure, a compromise between Biden and House Speaker Kevin McCarthy, drew opposition from 71 hard-line Republicans. That would normally be enough to block partisan legislation, but 165 Democrats — more than the 149 Republicans who voted for it — backed the measure and pushed it through.
Republicans control the House by a narrow 222-213 majority.
The legislation suspends — in essence, temporarily removes — the federal government’s borrowing limit through Jan. 1, 2025. The timeline allows Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election.
It would also cap some government spending over the next two years, speed up the permitting process for certain energy projects, claw back unused COVID-19 funds and expand work requirements for food aid programs to additional recipients.
Hard-line Republicans had wanted deeper spending cuts and more stringent reforms.
“At best, we have a two-year spending freeze that’s full of loopholes and gimmicks,” said Representative Chip Roy, a prominent member of the hard-line House Freedom Caucus.
Progressive Democrats — who along with Biden had resisted negotiating over the debt ceiling — oppose the bill for a few reasons, including new work requirements from some federal anti-poverty programs.
“Republicans are forcing us to decide which vulnerable Americans get to eat or they’ll throw us into default. It’s just plain wrong,” said Democratic Representative Jim McGovern on Wednesday.
Late on Tuesday, the non-partisan Congressional Budget Office said the legislation would result in $1.5 trillion in savings over a decade. That is below the $4.8 trillion in savings that Republicans aimed for in a bill they passed through the House in April, and also below the $3 trillion in deficit that Biden’s proposed budget would have reduced over that time through new taxes.