Aramco-Total JV SATORP ends 2022 with a $2.4bn profit  

Aramco-Total JV SATORP ends 2022 with a $2.4bn profit  
The company managed to hit an impressive gross profit of SR12.6 billion in 2022, compared to SR346.8 million reported in the same period a year earlier. (Supplied)
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Updated 23 March 2023

Aramco-Total JV SATORP ends 2022 with a $2.4bn profit  

Aramco-Total JV SATORP ends 2022 with a $2.4bn profit  

RIYADH: SATORP, a joint venture between oil giant Saudi Aramco and France’s TotalEnergies, swung into profits of SR9 billion ($2.4 billion) in 2022 as a result of improved refining and petrochemicals margins compared to a year earlier.   

The company managed to hit an impressive gross profit of SR12.6 billion in 2022, compared to SR346.8 million reported in the same period a year earlier.   

Its sales also almost doubled to nearly SR76.8 billion in 2022, from SR41.7 billion in 2021, according to a bourse filing.   

The company’s earnings per share stood at SR10.95 in 2022, compared to a loss per share of SR1.1 during the same period a year earlier. 

Formally known as Saudi Aramco Total Refining and Petrochemical Co., SATORP is 62.5 percent owned by Saudi Aramco and 37.5 percent owned by TotalEnergies.   

SATORP aspires “to be the Middle East and Asia's leading performer in refining and petrochemicals with a passion for the environment,” according to its official site.   


SAMA opens registration for investment training program

SAMA opens registration for investment training program
Updated 15 sec ago

SAMA opens registration for investment training program

SAMA opens registration for investment training program

RIYADH: Striving to create a robust community of investment professionals, the Saudi Central Bank, also known as SAMA, has opened registration for the third Investment Immersion Program.

The program embodies a blend of lectures and hands-on training in multiple investment fields, intent on fostering employment and cultivating local investment expertise.

It has been designed in collaboration with the Wharton School of the University of Pennsylvania and several prominent global banks and asset managers.

Participants will be offered a range of development programs to enhance their technical investment skills, and will receive attractive employment benefits, SAMA said.

The program’s registration will continue until June 30. Saudi nationals with bachelor’s or master’s degrees in finance, accounting, economics, statistics, or other business-related majors from Saudi or accredited international universities are eligible to apply.

Candidates must hold good grades, demonstrate proficiency in English, be under the age of 27, and successfully navigate both behavioral and technical assessments, in addition to interview processes.


UAE banks’ profits surge 35% to $4.98bn in Q1: report

UAE banks’ profits surge 35% to $4.98bn in Q1: report
Updated 17 min 35 sec ago

UAE banks’ profits surge 35% to $4.98bn in Q1: report

UAE banks’ profits surge 35% to $4.98bn in Q1: report

RIYADH: The UAE’s banking sector recorded a 35 percent growth in net profits to 18.3 billion dirhams ($4.98 billion) during the first quarter of 2023, reported global professional services firm Alvarez & Marsal.

This boost in profitability resulted from improved cost efficiencies, lower impairment charges, and increased non-core income.

“This has been a very strong quarter for the UAE banks. We expect that for the balance of the year, the UAE banking sector will maintain the gains of the first quarter,” said Asad Ahmed, managing director and head of the Middle East financial services at Alvarez & Marsal, in a statement.

He added that the banks’ net interest margins remained stable at 2.8 percent in the first quarter.

“Stable NIMs, improving cost efficiencies, and lower impairments have led to record profits for the UAE banks in the current quarter, although we witnessed a mixed performance by some banks on the margin front.”

NIM reveals the amount of money a bank earns in interest on loans compared to the amount it pays in interest on deposits. It is one of the indicators of a bank’s profitability and growth.

Amid monetary tightening, the banking sector experienced a 6.2 percent growth in deposits and a 2 percent rise in loans and advances.

Customer deposits mobilization outperformed the rise in deposits for the first time since the first quarter of 2022, reaching 43.5 percent, according to the report.

Moreover, the UAE banks’ aggregate net interest income rose by 0.4 percent quarter on quarter.

According to the report, banks reported higher profitability as return on equity improved by 5.9 percent quarter on quarter to 19.3 percent.

It added that the return on assets also improved to 2.2 percent, reflecting levels not seen in the past four years.

Ahmed expected that these banks would be equipped to face a mild reduction in economic growth resulting from the agreed oil output cuts and higher interest rates.

He noted: “Higher margins should drive bank profitability though slightly tempered by an uptick in provisioning. The UAE banks are well provided for and sufficiently capitalized to maintain capital adequacy ratio levels, well above regulatory requirements.”

The UAE’s top 10 listed banks analyzed in the report included First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Mashreq Bank.

The report also examined Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah, and Sharjah Islamic Bank.

It assessed the banks’ key performance areas, including size, liquidity, income, operating efficiency, risk, profitability, and capital.


Saudi construction sector accounts for 6% of GDP, says official

Saudi construction sector accounts for 6% of GDP, says official
Updated 30 min 11 sec ago

Saudi construction sector accounts for 6% of GDP, says official

Saudi construction sector accounts for 6% of GDP, says official

RIYADH: The construction sector, valued at over SR255 billion ($68 billion) accounts for 6 percent of the gross domestic product of the Kingdom, according to the chairman of Saudi Contractors Authority.

Speaking at the Builders of Egypt Forum in Cairo on Sunday, Zakria Al-Abdulqadir said the construction sector is the second-largest non-oil sector in Saudi Arabia.

The official said the authority organized the sixth edition of the Future Projects Forum last week, which showcased 3,000 projects worth around $270 billion.

He said SCA is the current chair of the Federation of Contractors from Islamic Countries, which represents the construction sector of 26 Islamic countries.

The Cairo event was organized by the Egyptian Federation for Construction and Building Contractors in collaboration with the African Federation for Construction Contractors’ Association.

According to a report issued by the US-Saudi Business Council recently, contract values in the Kingdom’s construction sector reached SR71.5 million during the fourth quarter of 2022, accounting for 37 percent of the total contracts awarded last year.   

The report said the overall deals struck between October and December were the highest since the first quarter of 2015 when contract values touched SR88.1 billion.   

“The surge in contract awards continues unabated on the back of a growing economy that was fueled by significant oil revenues and the acceleration of giga-projects following the COVID-19 slowdown,” said Albara’a Alwazir, director of economic research at the USSBC.


Vision 2030 will improve connectivity between continents and enhance international trade: NIDLP CEO

Vision 2030 will improve connectivity between continents and enhance international trade: NIDLP CEO
Updated 53 min 46 sec ago

Vision 2030 will improve connectivity between continents and enhance international trade: NIDLP CEO

Vision 2030 will improve connectivity between continents and enhance international trade: NIDLP CEO

RIYADH: Saudi Arabia’s Vision 2030 blueprint will have a profound impact beyond the Kingdom as it improves connectivity between continents and enhances international trade, said a top official. 

Speaking at an event organized at the King Abdullah Petroleum Studies and Research Center on Tuesday, Suliman Al-Mazroua, CEO of the National Industrial Development and Logistics Program, said that the Kingdom had witnessed several monumental changes in its economy since the launch of Vision 2030. 

“Vision 2030 impacts are not limited to Saudi Arabia. Becoming an industrial powerhouse and a global logistics hub will open new possibilities for products and markets. It will also improve connectivity between continents and enhance international trade. Therefore, we continue to invite the international community to be part of our journey,” said Al-Mazroua. 

He added: “Since Vision 2030 was launched, we started to enjoy the fruits of it across all aspects of our lives. Foreign direct investments in Saudi Arabia doubled. Private sector contribution to the GDP (gross domestic product) doubled.” 

Highlighting the growth of Saudi Arabia in the transport sector, Al-Mazroua revealed that Saudi Arabia had jumped 17 places in the Logistics Performance Index released by the World Bank last April. 

The index showed Saudi Arabia reaching the 38th spot, excelling in performance efficiency through several sub-indicators, including logistics competence, tracking, timeliness, customs, infrastructure and international shipments indices. 

According to Al-Mazroua, Saudi Arabia’s National Logistics Strategy, launched by Crown Prince Mohammed bin Salman in 2021, is one of the key drivers behind this growth. 

The strategy aims to position the Kingdom as a global logistics hub connecting three continents and improve all transportation services while improving the capabilities of Saudi Arabia’s air cargo sector by doubling its capacity to more than 4.5 million tons by 2030. 

“The customs used to take 288 hours, and now it takes two hours. We are among the best when it comes to processing, both in and out of the country,” said Al-Mazroua. 

According to the NIDLP CEO, technology is one of the most crucial enablers of the goals outlined in Vision 2030. 

“When we look at the future, we know technology is our friend. We will have smart mines, supplying smart factories connected to smart industrial cities powered by smart grids, and move goods and people through smart logistics. Connecting the smart is the new smart,” he said. 

Al-Mazroua added: “Having the right data will help us to predict the future and improvise clean energy generation. Look at the history; the semiconductor challenge the world faced a few months ago. When we look at the data, it was predicted. If we had the right data at that time, we would predict this issue and solve it.” 

Al-Mazroua continued that NIDLP, with its various initiatives, is always trying to minimize the risk and maximize the returns for investors. 

“In NIDLP, we are always investor-centric. We cater to both international and local investors through the fundamentals of risk and return. We try our best to minimize the risk and maximize the return for the investors,” said Al-Mazroua. 
He further noted that NIDLP is committed to maximizing the returns of the investors sustainably. It is enabling regulations, creating digital infrastructure, ensuring the availability of resources, opening world-class research and development centers and providing access to local and international markets. 

The program is also keen on protecting the environment, facilitating global energy transition and creating a transport and logistics sector built for the long term, which is crucial to achieving these sustainable goals. 

Last year, during an interview with Arab News, Al-Mazroua opined that Saudi Arabia’s logistics sector needs a considerable investment combined between the government and private sector by the end of this decade to turn the Kingdom into a global logistics hub. 

He added that the Kingdom would provide the right environment and regulations to attract world transportation companies which would help Saudi Arabia emerge as one of the world’s busiest logistics centers. 


EVs to be at core of shift to green mobility, says UAE minister

EVs to be at core of shift to green mobility, says UAE minister
Updated 30 May 2023

EVs to be at core of shift to green mobility, says UAE minister

EVs to be at core of shift to green mobility, says UAE minister

RIYADH: Electric vehicles are set to be at the core of the shift to green mobility as reaching net-zero emissions has become a collective and urgent priority, according to the UAE’s minister of energy and infrastructure. 

Speaking at the second edition of the Electric Vehicles Innovation Summit organized at the Abu Dhabi National Exhibition Centre, Suhail bin Mohammed Al-Mazrouei said: “The EV market looks promising and offers unique investment opportunities. We invite future-thinking businesses to capitalize on these opportunities. Investing in the EV industry makes a perfect environmental and economic sense.” 

He said that the UAE is constantly offering incentives to make EVs more appealing to consumers. “To fully realize the potential of electric mobility, we are deploying a nationwide network of public and private charging stations, equipped with the latest innovative technologies to reduce charging time,” he informed. 

The three-day summit that ends on May 31 includes an extensive exhibition throughout the event. In addition, the exhibition space has been expanded, accommodating over 100 products, including vehicles and EV service providers. 

Additionally, EVIS2023 encompasses a two-day conference that has garnered significant attention, featuring more than 100 speakers and over 50 conference sessions covering a wide range of topics relevant to the current and future landscape of e-mobility. 

The summit aims to promote the transition from dependence on fossil fuels to electric mobility, which saves the planet from the environmental consequences of carbon dioxide and other emissions. 

Organized by the Abu Dhabi-based Nirvana Holding, the summit succeeded in attracting and bringing global interest to the Middle East and North Africa region, which is a promising market with significant growth and business opportunities in the coming years. 

The exhibition drew global household brands like Geely, Skywell, Tesla, BYD, Polyester, etc. More than 50 EVs worldwide are on display at the show. 

The event has also attracted global e-mobility service providers, like charging infrastructure and dealerships. 

A notable addition to this year’s edition is the Technology Park, an innovation hub showcasing the latest advancements in e-mobility. This dedicated area showcases the cutting-edge EV technologies developed by universities and technology incubators, shaping the industry’s future.