Saudi desalination firm increases daily production to 6.3 mcm

The summit Evolve 2023 took place between Jan. 16 and 18 under the theme ‘Developing, Enabling, Localizing Next-General Desalination in the Kingdom.’ Photo/Supplied
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Workshops and presentations were also held during the event hosting over 60 local and international experts. Photo/Supplied
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Workshops and presentations were also held during the event hosting over 60 local and international experts. Photo/Supplied
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Updated 19 January 2023

Saudi desalination firm increases daily production to 6.3 mcm

Saudi desalination firm increases daily production to 6.3 mcm

RIYADH: Saudi Arabia’s Saline Water Conversion Corp. has achieved a new milestone by increasing its daily production from 5.9 million cubic meters to 6.3 mcm of desalinated water, according to a press release issued at the conclusion of a conference in Riyadh.

During the event, the SWCC also signed 14 agreements and memorandums of understanding with a group of academics, research institutions and leading Saudi and international companies to boost collaboration in research to further improve the quality of its operations and products and contribute to the national economy.

The summit Evolve 2023 took place between Jan. 16 and 18 under the theme “Developing, Enabling, Localizing Next-General Desalination in the Kingdom.”

It focussed on new technologies, groundbreaking ideas, research and sustainable approaches. The forum included panel discussions aimed at identifying the drivers of water desalination and the facilitators of the desalination industry, accelerating the adoption of new technologies to develop the next generation of desalination, defining the investment returns and opportunities, as well as determining leadership in the value-added chain in the industry. 

Workshops and presentations were also held during the event hosting over 60 local and international experts.

As part of its role as a global player in the desalination industry, the SWCC aims to promote localization of water desalination, contribute to reducing costs in desalination operations, and empower innovation and diversification through the event in line with Saudi Vision 2030. 


Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 
Updated 28 March 2023

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

Egypt’s economic prospects hindered by external financing needs: Morgan Stanley 

RIYADH: Egypt’s external financing needs are standing in the way of its economic development and may hinder its medium-term growth, according to a report by Morgan Stanley.

The investment management and financial services firm recommended the North African country implement structural reforms through a large-scale privatization program in order to boost its economy.

The US-based company also noted the shift to a permanently flexible exchange rate system would also help reduce the Egyptian economy’s sensitivity to global shocks.  

“Egypt has favorable prospects for medium-term growth, but the large external financing needs weigh on the macroeconomic outlook,” said the report.  

 Even though the continuous depreciation of the Egyptian pound since 2022 will aid in shrinking the current account deficit, there is limited recovery in its official reserves. 

The report attributed this to the uncertainty around the rate of reform and the tightening of financial conditions in the global economy, which will likely limit foreign direct investment flows. 

Egypt’s economic struggles, exacerbated by the fallout from Russia’s invasion of Ukraine, were brought into focus in December when the International Monetary Fund approved a $3 billion Extended Fund Facility loan.

The Morgan Stanley report said this support from the IMF is “insufficient to close the financing gap and provide the country's foreign exchange needs in the near term”.

Egypt has the potential to sell up to $7 billion worth of assets by 2024 as it seeks to boost foreign exchange liquidity and public finances, as well as narrow its financing gap. 

The country’s financial gap is currently pegged at $23 billion to $24 billion by the end of fiscal year 2023/2024, reported Morgan Stanley  

“This in turn should tame further expectations of FX depreciation and ensure a smooth transition to a durably flexible regime, potentially lowering the bar for portfolio investors and buying time for the authorities to implement the structural reforms to level the playing field and boost FDI inflows further,” added the report.


The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG
Updated 28 March 2023

The UAE’s banking sector to remain stable: KPMG

The UAE’s banking sector to remain stable: KPMG

RIYADH: Following a 31 percent rise in net profits and a 10.6 percent increase in assets in 2022, the UAE’s banking sector is projected to remain stable, according to a KPMG report.

The global accounting firm said the sector’s net sentiment improved by 7 percent from the previous year, based on 96,321 tweets regarding seven UAE banks tracked.

The UAE banking sector recorded an industry average of -7.4 percent, a seven-percentage point increase from the 2022 study’s industry aggregate of -14.4 percent last year, the report added.

“The UAE’s vibrant economy and its favorable business environment has attracted a significant amount of foreign investment, with banks benefiting from large pools of capital and high-net-worth customers the UAE is attracting,” Abbas Basrai, partner and head of financial services at KPMG Lower Gulf, said.

The country’s banking sector, which has benefited greatly from the government’s commitment to regulatory reforms, saw the total assets of the top 10 banks increase by 10.6 percent year-on-year to $898.89 billion in 2022, driven by strong growth in deposits, loans, and advances.

The UAE’s economy is expected to grow by 7.6 percent in 2022, the highest rate in 11 years, after expanding by 3.9 percent in 2021, according to the Central Bank of the UAE. In 2023, the country’s gross domestic product is forecast to increase 3.9 percent 2023, according to the regulator.

According to KPMG's report, the vibrant banking sector remained well-positioned to maintain a stable outlook in 2023 “with the growing demand for digital financial services, rapid adoption of fintech solutions enhancing customer experience, and industry competitiveness.”


Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1
Updated 28 March 2023

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

RIYADH: The Saudi Stock Exchange updated the free-float shares for all listed issuers on the main market TASI and parallel market Nomu, effective April 2. 

The companies that will be included in the Tadawul index are Alinma Hospitality REIT Fund and Thimar Development Holding Co.

The firms that will be included in the Nomu index are Leen Alkhair Trading Co., Nofoth Food Products Co., Alqemam for Computer Systems Co., WAJA Co., Balady Poultry Co., KnowledgeNet Co., Bena Steel Industries Co., and Horizon Food Co. 

The Tadawul All Share Index rose for the fourth day in a row on Tuesday, as it went up 4.47 points or 0.04 percent to 10,468.08.

Parallel market Nomu also went up by 286.61 points or 1.49 percent to close at 19,534.39, while the MSCI Tadawul 30 Index went down by 0.24 percent to 1,416.92.

The total trading turnover of the benchmark index was SR5.73 billion ($1.53 billion).

Takween Advanced Industries Co. was the top performer of the day, as its share prices went up by 9.98 percent to SR9.48. 

Other top performers were National Metal Manufacturing and Casting Co. and Middle East Specialized Cables Co. whose shares went up by 9.98 percent and 9.94 percent respectively. 

Middle East Specialized Cables Co. was the worst performer, as its share prices dropped by 2.95 percent to SR59.30.

On the announcements front, Thimar Development Holding Co., in a bourse statement revealed that it trimmed its net losses in 2022 to SR4.7 million, from SR162.45 million in 2021. As the company successfully trimmed its losses, its share prices went up rose by 2.67 percent to SR44.25. 

Another company which announced its financial results on Tuesday was Electrical Industries Co. The firm reported a net profit of SR94.17 million in 2022, a 93 percent surge from SR48.84 million compared to the year-earlier period. The company’s share prices soared by 3.16 percent to SR34.3. 

Naba Alsaha Medical Services Co.’s net profit surged to SR26.92 million in 2022, up 4.24 percent, from SR25.82 million in 2021. Driven by the rise in profit, the company’s share prices increased by 2.36 percent to SR52.

Meanwhile, Saudi Advanced Industries Co., known as SAIC, also announced its earnings report for 2022. The company’s net profit went up by 9.96 percent to SR100.21 million in 2022, compared to SR91.13 million in 2021. 

As the profit surged, SAIC’s board recommended distributing a cash dividend of 5 percent of capital or SR 0.50 per share for 2022. The share prices of SAIC also went up by 1.32 percent to SR24.50.


UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  
Updated 28 March 2023

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

UAE GDP to grow at 4.3% in 2024, forecasts central bank  

RIYADH: The UAE’s gross domestic product is expected to grow at 4.3 percent in 2024, driven by oil and non-oil exports, according to the latest forecast by the country’s central bank.   

In its 4th Quarterly Economic Review released on Monday, the Central Bank of the UAE has retained its forecast unchanged at 3.9 percent for this year.  

This comes as the apex bank noted that the country’s economy had a good run in the first three quarters of 2022, with the fourth quarter set to maintain a solid footing, helping the UAE GDP to close the year at an estimated 7.6 percent.  

While oil production is likely to slow by the OPEC+ agreements, the non-oil sector is expected to continue to support aggregate output, even if at a slower pace, the bank’s report revealed.   

The real estate and construction sectors, as well as a vibrant manufacturing sector, such as refineries and aluminum production, are the key drivers of strong performance, noted the report.   

Furthermore, the FIFA World Cup in Qatar and other global events held in the region increased travel and tourism to the UAE – something that provided a much-needed boost to the economy. 

In the fourth quarter of 2022, oil production averaged 3.1 million barrels per day, with UAE hydrocarbon GDP estimated to have grown by 10 percent year-on-year in line with the OPEC+ agreements.  

OPEC agreed to cut production by 2 million barrels per day at the beginning of November, causing the CBUAE’s projections for hydrocarbon real GDP growth to be revised downward. As a result, the CBUAE expects oil GDP to rise by 3.0 percent and 3.5 percent in 2023 and 2024, respectively.   

Following the robust growth in the first three quarters of 2022, the non-oil sector is expected to rise at a similar rate in the fourth quarter. The CBUAE expects the UAE’s non-oil GDP to grow at 6.6 percent in 2022.   

The UAE’s Consumer Price Index increased by 4.6 percent in the fourth quarter of 2022, compared to 6.5 percent in the previous quarter. While inflation is rising in line with global trends, the apex bank noted that it is still much lower than the global average.   

During 2022, CPI inflation averaged 4.8 percent, which was close to CBUAE’s projection of 4.9 percent.   

“In 2023, inflation is projected to decelerate to 3.2 percent, on the back of softer price increases in all categories, especially transport and food, and beverages,” according to the report’s statement.  


Saudi green efforts paying off as Kingdom ranks first globally in renewable production 

Saudi green efforts paying off as Kingdom ranks first globally in renewable production 
Updated 28 March 2023

Saudi green efforts paying off as Kingdom ranks first globally in renewable production 

Saudi green efforts paying off as Kingdom ranks first globally in renewable production 

RIYADH: Saudi Green Initiative has started reaping the results as the Kingdom has been ranked first globally in renewable energy production, according to the latest Green Future Index report.

Saudi Arabia’s Ministry of Energy announced that the Kingdom has also advanced 10 places in the overall ranking of the Green Future Index to garner the 51st spot — a milestone achievement made just two years after the launch of the SGI by Crown Prince Mohammed bin Salman.

The Green Future Index ranking is published by the Massachusetts Institute of Technology in the US, and it is widely considered one of the most authentic reports that signal the progress made by countries in terms of sustainability.

Saudi Arabia also ranked first in the Arab world, and 20th globally in terms of carbon dioxide emissions reduction.

The SGI is considered one of the most effective plans adopted by any country to fight climate change. Under this program, 10 billion trees will be planted in the Kingdom to revive the health of the environment.

Since the launch of the SGI, Saudi Arabia has planted 18 million trees within the Kingdom and of those 13 million are mangroves.

Under the goals outlined in SGI, Saudi Arabia is also eyeing to achieve the target of placing 30 percent of its land and sea territory under protection by 2030.

Regionally, the SGI plans to plant 50 billion trees across the Middle East and restore an area equivalent to 200 million hectares of degraded land, which will in turn reduce global carbon levels by 2.5 percent.

Apart from planting trees to ensure sustainability, the SGI is also steadily steering the Kingdom to become a global leader in carbon capture technology and renewable energy production.

Earlier in March, a report released by S&P Global revealed that Saudi Arabia and the UAE are leading the region’s fight against climate change by producing 90 percent of the Gulf’s renewable energy.

According to S&P Global, installed solar capacity in the two countries surged from 165 megawatts in 2016 to 3 gigawatts by the end of 2021.