SNB appoints Saeed Mohammed Al-Ghamdi as new chairman

SNB appoints Saeed Mohammed Al-Ghamdi as new chairman
The Kingdom’s biggest bank also saw a 61 percent surge in net profit in the fourth quarter of 2022 (File)
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Updated 27 March 2023

SNB appoints Saeed Mohammed Al-Ghamdi as new chairman

SNB appoints Saeed Mohammed Al-Ghamdi as new chairman

RIYADH: Saudi National Bank has appointed Saeed Mohammed Al-Ghamdi as its new chairman following the resignation of Abdul Wahed Al-Khudairy from his post citing personal reasons, it was announced on Monday.

The bank also appointed Talal Ahmed Al Khereiji as the new acting CEO, according to a bourse statement.

SNB said that the new changes will be effective from March 27.

In 2022, the bank recorded a 46.7 percent increase in net profit, hitting SR18.6 billion ($4.96 billion), spurred by higher operating income and a decline in provisions for expected credit losses.

The Kingdom’s biggest bank also saw a 61 percent surge in net profit in the fourth quarter of 2022 to SR4.8 billion from SR2.96 billion during the same period in 2021.

The results beat the average analyst estimate of SR18.2 billion, according to Refinitiv data.

Earlier in March, the bank moved to play down any risk to its balance sheet caused by the fall in share value of Credit Suisse.

SNB bought almost 9.9 percent of Credit Suisse for SR5.5 billion in November 2022, with the Saudi bank later saying the investment represented just 0.5 percent of its total assets and approximately 1.7 percent of its overall investment portfolio.

In a statement to the Saudi stock exchange, made as Credit Suisse hit difficulties, SNB said: “Changes in the valuation of SNB's investment in Credit Suisse have no impact on SNB's growth plans and forward-looking 2023 guidance.”

Shares of Credit Suisse and other banks plunged after the failure of two banks in the US sparked concerns about other potentially shaky institutions in the global financial system.

Fellow Swiss bank group UBS agreed to buy Credit Suisse for more than $3 billion, a move which calmed markets after concerns about the global financial sector increased following the failure of two banks in the US.


Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM
Updated 15 sec ago

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

RIYADH: Saudi Arabia’s green hydrogen project being developed at NEOM received the Kingdom’s first sustainable guarantee from the British bank, Standard Chartered, which agreed to extend funding support for its contractor Larsen & Toubro to build the necessary renewable energy infrastructure. 

Located at Oxagon, the world’s largest green hydrogen plant is being built by NEOM Green Hydrogen Co., which is an equal joint venture between ACWA Power, Air Products and the $500-billion giga-project.

Sustainable guarantees are issued by lending agencies for green projects that make positive contributions to the environment. 

The megaplant will produce green hydrogen at scale for global export in the form of green ammonia with a total investment of $8.4 billion. The project, which recently achieved full financial closure, is supported by 23 local, regional and international banking and financial institutions. 

In addition to limiting carbon emissions and promoting sustainable development in the Kingdom, this step will add to the country’s diversification efforts.   

“We are pleased to issue the first sustainable guarantee in the Kingdom of Saudi Arabia which supports the growth and development of green hydrogen. At Standard Chartered, we know that technological and financial innovation is critical in supporting the global transition towards a low-carbon economy,” said Mohammad Salama, Standard Chartered’s regional head of corporate, commercial, and institutional banking in the Middle East and North Africa. 

Standard Chartered said the sustainable guarantee will ensure that L&T receives the necessary financial support for the development of the wind and solar farms to support the green hydrogen generation in this project while meeting the bank’s environmental, social and governance standards. 

This comes after L&T won a $2.78 billion contract to establish the renewable energy generation, storage and grid infrastructure, from Air Products, which is the system-integrating engineering, procurement and construction contractor for the project.   

As part of the contract, L&T will engineer, procure and construct 2.2 gigawatts alternating current photovoltaic solar plant, a 1.65 GW wind generation balance of plant and a 400 megawatt-hour battery energy storage system under the power elements package. 

Its subsidiary L&T Saudi Arabia is responsible for the design, local supplies, construction and commissioning of the renewable and grid packages while the international supplies will be handled by its other subsidiary LTIFZE. 

“Through such initiatives, we emphasize the power of partnerships in fostering sustainable development and practices. We remain focused on continuing to grow our green business in Saudi Arabia in partnership with and continued support from Standard Chartered as one of our key relationship banks,” said R. Shankar Raman, the chief financial officer at L&T Group. 


OPEC is being ‘proactive, preemptive,’ Saudi energy minister tells CNBC

OPEC is being ‘proactive, preemptive,’ Saudi energy minister tells CNBC
Updated 22 min 58 sec ago

OPEC is being ‘proactive, preemptive,’ Saudi energy minister tells CNBC

OPEC is being ‘proactive, preemptive,’ Saudi energy minister tells CNBC

VIENNA: Defending the decisions made by the oil producers’ alliance, Saudi Energy Minister Prince Abdulaziz bin Salman stressed the need to “trust OPEC+” which he described as “the most effective international organization” working to restore market stability.

Talking to CNBC International’s Dan Murphy on Sunday, the energy minister said the voluntary oil output cuts announced by the Organization of the Petroleum Exporting Countries and its allies including Russia, also known as OPEC+, were precautionary measures.

“It was just our sensibility, if you will call it, that the environment was not sufficiently allowing confidence to be there. So taking a precautionary measure tends to put you on the safe side. And it is part of the typical rhythm that we have installed in OPEC, which is being proactive, being preemptive,” Prince Abdulaziz said.

Oil prices rose by more than $1 a barrel on Monday after Saudi Arabia pledged to cut production by a further 1 million barrels per day from July to counter macroeconomic headwinds that have depressed markets.

The voluntary cut is on top of a broader deal by OPEC+ to limit supply into 2024 as the group seeks to boost flagging oil prices.

OPEC+ pumps about 40 percent of the world’s crude and has cut its output target by a total of 3.66 million bpd, amounting to 3.6 percent of global demand.

Commenting on the Saudi decision, Prince Abdulaziz said: “It is icing on the cake.”

The Kingdom has kept the option open for an extension to the voluntary cuts depending on “how things really work.”

The Saudi energy minister told CNBC that the oil producers’ group is considering new baselines to ensure equitable and fair production quotas for all members in the group according to their capacities in a transparent manner.

OPEC+ now intends to have three independent analysts — IHS, Wood Mackenzie, and Rystad Energy — study the individual capacity of each group member.

“Hopefully by mid-year next year, we will have new baselines and a way forward that makes it more equitable, more fair for everybody to assign for them production levels that are going to be commensurate with their capacities in the most transparent way,” the minister said.

When asked about trusting OPEC’s ally Russia, Prince Abdulaziz responded in the affirmative.

“Absolutely. But I always like President (Ronald) Reagan’s line: trust but verify.” He said, noting the instrumental role of independent sources in assessing production.


Closing bell: Saudi main index continues upward trend

Closing bell: Saudi main index continues upward trend
Updated 39 min 56 sec ago

Closing bell: Saudi main index continues upward trend

Closing bell: Saudi main index continues upward trend

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward trend for the second consecutive day, as reigning oil prices raised investor confidence. 

On Monday, the benchmark index gained 71.63 points or 0.64 percent to close at 11,293.59. 

The total trading turnover of the benchmark index was SR6.38 billion ($1.70 billion) as 125 listed stocks advanced, while 75 retreated. 

Brent crude futures were at $77.92 a barrel, up $1.79, or 2.35 percent, at 3:30 p.m. Saudi time, while US West Texas Intermediate crude climbed $1.83 or 2.55 percent to $73.57 a barrel. 

While parallel market Nomu fell 124.49 points to 21,316, the MSCI Tadawul Index rose 0.45 percent to close at 1,496.92. 

Elm Co. was the best performer of the day, as its share price surged 9.98 percent to SR500.49. 

Elm Co., in a statement to Tadawul, announced that it is carrying out preliminary talks with Thiqah Business Services Co. to buy Public Investment Fund’s entire ownership in Thiqah. 

Elm Co. added that these talks do not imply that the acquisition deal will be conclusive. 

Other top performers were Arabian Internet and Communications Services Co. and Etihad Atheeb Telecommunication Co., whose share prices advanced by 5.80 percent and 5.27 percent, respectively. 

The worst performer of the day was Saudi Marketing Co. The company’s share price dropped by 2.19 percent to SR29.05. 

On the announcements front, Tourism Enterprises Co., also known as Shams, said it had named Mohannad Saleh Alonaizan as the firm’s new CEO, effective July 1.


Saudi Arabia, Egypt sign MoU to bolster bilateral trade

Saudi Arabia, Egypt sign MoU to bolster bilateral trade
Updated 33 min 8 sec ago

Saudi Arabia, Egypt sign MoU to bolster bilateral trade

Saudi Arabia, Egypt sign MoU to bolster bilateral trade

RIYADH: Bilateral trade between Saudi Arabia and Egypt is set to grow after an agreement was reached to enhance economic cooperation — with a key focus on developing the non-oil export sector.

A memorandum of understanding has been signed by the Saudi Export Development Authority and Egypt’s Export Development Authority, the Saudi Press Agency reported.

The agreement falls within the framework of the two countries’ commitment to bolster economic and trade cooperation while developing non-oil export sectors to further diversify sources of income.

The MoU was signed on the sidelines of the official visit of Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef to Egypt.

Abdulrahman Al-Thukair, CEO of the Saudi Export Development Authority, and Egypt’s Minister of Plenipotentiary Trade Yahya Al-Wathiq Billah inked the agreement.

Under the new MoU, the countries will collaborate across broad areas including the exchange of experiences and knowledge in the field of developing exports as well as cooperation around relevant research and studies, Al-Thukair explained.

In addition to this, the two countries will also provide technical support and consultations in the fields of export and international marketing, the CEO said.

The Kingdom and Egypt will work together closely in the organization of joint events, as well as seminars, to enhance communication and exchange of experiences between companies and exporters in the two countries, he added.

Furthermore, the MoU reflects the commitment of the two parties to strengthen bilateral cooperation and joint action in order to achieve the goals of development and sustainability in the field of exports.

Through this MoU, the Saudi authority aims to expand the scope of local producers and exporters in line with the Vision 2030 goal of raising the proportion of exports to no less than 50 percent of the Kingdom’s non-oil gross domestic product.

 


Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade
Updated 05 June 2023

Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade

RIYADH: Intra-regional trade between Saudi Arabia and the UK is set to receive a boost as top ministers from both countries held talks in London to strengthen economic ties. 

As part of the third meeting of the Saudi-British Strategic Partnership Council, the Kingdom’s Commerce Minister, Majid bin Abdullah Al-Qasabi, and the UK’s Investment Minister, Dominic Johnson, discussed ways to further encourage English firms to expand their businesses in the Middle East’s largest economy. 

This comes as trade exchange between Saudi Arabia and the UK stood at SR80.7 billion ($21.5 billion) in 2022, reflecting a 68 percent surge when compared to 2021. 

While the total value of UK exports to Saudi Arabia stood at SR56.9 billion in 2022, the total value of imports from the Kingdom amounted to SR23.8 billion. 

The two ministers also discussed ways to promote and finance emerging companies in promising fields based on research and innovation while reviewing the British experience in developing entrepreneurship.  

Led by Al-Qasabi, the Saudi delegation includes Deputy Minister of Commerce and CEO of the National Competitiveness Center Iman Al-Mutairi as well as 45 officials from 22 private and non-profit government agencies. 

The delegation will participate in important meetings with the British government and business officials to bolster economic cooperation between the two nations. 

The agenda of the visit also entails meetings between the minister and top British business leaders including the CEO of Rolls-Royce, Tufan Erginbilgic, besides several other engagements with officials from the British Accreditation Authority.  

The Saudi delegation will also participate in a dialogue with members of the Asian House, which is a think tank interested in promoting trade exchange between Asia, the Middle East and Europe. 

Some of the other members who are part of the Saudi delegation include representatives from the ministries of trade, energy, investment, education, culture, tourism, and municipal and rural affairs and housing.

The Saudi Central Bank, the Public Investment Fund, the General Authority for Foreign Trade, the National Center for Competitiveness, and the Center Saudi Economic Business are also represented during the visit.  

Established in 2008, the Saudi-British Strategic Partnership Council aims to reinforce relations between the Kingdom and the UK. 

It also seeks to commit to a deeper and more strategic partnership to enhance the mutual interests of both countries.