Saudi Arabia’s PIF announces $3bn investment unit for Iraq 

Saudi Arabia’s PIF announces $3bn investment unit for Iraq 
The announcement was made on the sidelines of the Saudi-Iraqi Coordination Council being held in Jeddah (Shutterstock0
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Updated 26 May 2023

Saudi Arabia’s PIF announces $3bn investment unit for Iraq 

Saudi Arabia’s PIF announces $3bn investment unit for Iraq 

RIYADH: Aligning with its strategy to seek new investments in the Middle East and North Africa region, Saudi Arabia’s sovereign wealth fund has created a unit with a capital of $3 billion to invest in industries across Iraq.

According to Muteb Al-Shathri, acting CEO of the Saudi-Iraq Investment Co., the investment unit will be headquartered in the Kingdom and will look for funding opportunities in infrastructure, mining, agriculture, real estate development and financial services, among other areas.  

The announcement was made on the sidelines of the Saudi-Iraqi Coordination Council being held in Jeddah, and comes after the Kingdom’s Minister of Investment Khalid Al-Falih said Saudi Arabia has allocated $1 billion for reconstruction projects in Iraq, while $500 million has been set aside to support trade between the two countries. 

The Iraqi government is also in talks with Saudi companies, including Aramco, to develop the Akkas gas field in the western Anbar province — a project that could produce more than 400 million cubic meters of gas per day.  

The Saudi-Iraq Investment Co. is one of the six regional investment vehicles the Public Investment Fund said it would establish in Iraq, Jordan, Bahrain, Sudan, Oman and Egypt.  

The PIF is currently driving the Kingdom’s Vision 2030 and is playing a crucial role in materializing the economic diversification targets of Saudi Arabia.  

In January, data released by the Sovereign Wealth Fund Institute revealed that the PIF has maintained the sixth spot in the list of top sovereign wealth funds worldwide, with assets worth $607.42 billion.   

Currently, the sovereign fund owns 71 companies in 10 different sectors, and until now, it has created more than 500,000 direct and indirect jobs.   

In November 2022, PIF Gov. Yasir Al-Rumayyan said the fund is committed to creating 1.8 million jobs.

“It is not only the figures we are looking at, but the quality of these figures, the quality of these jobs,” said Al-Rumayyan.


Saudi Arabia to sign deals to promote Egyptian investment in industrial, mining sectors

Saudi Arabia to sign deals to promote Egyptian investment in industrial, mining sectors
Updated 17 sec ago

Saudi Arabia to sign deals to promote Egyptian investment in industrial, mining sectors

Saudi Arabia to sign deals to promote Egyptian investment in industrial, mining sectors

RIYADH: Saudi Arabia plans to sign two agreements with Egypt to boost the North African country’s participation in the Kingdom’s industrial and mining sectors in line with Vision 2030.
During his visit to Egypt, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef expressed the Kingdom’s keenness to facilitate Egyptian investors.
It is part of the Kingdom’s efforts to bolster the role of the mining and industrial sectors in the national economy and increase their contribution by attracting foreign investment.
According to Alkhorayef, the first agreement seeks to “preserve commercial activity between the two countries and reduce obstacles, as well as finance exports through the Saudi Export Bank.” 
He said the other agreement would form a partnership with some Egyptian companies specialized in targeted activities in the Kingdom. 
On Saturday, the minister began his official tour to Egypt to discuss bilateral relations and explore opportunities to enhance cooperation in the industry and mining sectors, the Saudi Press Agency reported.  
Alkhorayef is accompanied by Deputy Minister of Industry and Mineral Resources Osama Al-Zamil.   
He met with various government officials and investors in the industrial and mining sectors from both countries and visited several factories.  
“There are many opportunities that we see when it comes to the collaboration between us and our brothers in Egypt that will help accelerate the projects that are being built in those sectors,” noted the minister.  
Last year, the volume of Saudi Arabia’s non-oil exports to Egypt exceeded SR11 billion ($2.9 billion), while imports totaled SR10 billion.   
The Kingdom’s primary exports to Egypt included petrochemicals, building materials, and medicines, while key imports comprised food products, heavy machinery and electronics.   
On Sunday, Egyptian Minister of Trade and Industry Ahmed Samir said that trade exchange between countries surged 23.9 percent in 2022 to reach $5.6 billion.  
He said the year ended with $6 billion worth of Saudi investments in Egypt and $1.6 billion of Egyptian investments in the Kingdom.  
Alkhorayef said: “The trade between both countries is witnessing growth, but the aspirations of the leadership are much bigger.”


Closing bell: Saudi bourses begin week on a positive note

Closing bell: Saudi bourses begin week on a positive note
Updated 12 min 29 sec ago

Closing bell: Saudi bourses begin week on a positive note

Closing bell: Saudi bourses begin week on a positive note

RIYADH: Saudi Arabia’s Tadawul All Share Index began the week positively, gaining 207.01 points, or 1.88 percent, to close at 11,221.96. 

While parallel market Nomu edged up 25.16 points to 21,513.36, the MSCI Tadawul Index increased 2.16 percent to close at 1,490.24. 

The total trading turnover of the benchmark index on Sunday was SR4.37 billion ($1.17 billion) as 179 stocks advanced, while 34 retreated.

The best performer of the day was National Gas and Industrialization Co., whose share price surged 10 percent to SR68.20. 

Etihad Atheeb Telecommunication Co. and Saudi Arabian Mining Co. were other top gainers, whose share prices increased by 9.86 percent and 5.23 percent, respectively. 

Meanwhile, the telecom firm, which announced its fiscal year result ending on March 31, 2023, reported a net profit of SR42.47 million, compared to a net loss of SR37.40 million in the same period of the previous year. 

The worst performer of the day was Saudi Enaya Cooperative Insurance Co., whose share price dipped by 5.15 percent. 

In another development, shareholders of Fesh Fash Snack Food Production Co. approved the board of directors’ recommendation to pay a cash dividend of 15 percent, or SR1.5 a share, for 2022. 

Earlier in March, the company had reported a net profit of SR1.5 million for 2022, up 10 percent compared to 2021. Its share price remained unchanged at SR160. 

Meanwhile, Al-Babtain Power and Telecommunication Co. shareholders approved the board’s recommendation to pay a 5 percent cash dividend, or SR0.50 a share, for 2022.


Saudi Green Initiative steps up its drive against plastic pollution

Saudi Green Initiative steps up its drive against plastic pollution
Updated 24 min 33 sec ago

Saudi Green Initiative steps up its drive against plastic pollution

Saudi Green Initiative steps up its drive against plastic pollution

RIYADH: As the world is getting choked by plastic pollution, the planet is set to ring in another Environment Day on June 5, focused on ending the nondegradable waste’s disastrous effects. 

According to the UN Environment Programme, the world produces around 400 million tons of plastic annually, and just 9 percent of it gets recycled. What is worse? Almost 130,000 tons of plastic waste end up in the ocean every year. 

Within three years of its launch, the Saudi Green Initiative is playing a crucial role regionally in protecting the environment and reducing the use of plastic. 

Throughout these three years, the initiatives of the SGI have supported international efforts to remove plastic from oceans, develop innovative waste management systems at a national level and divert waste from landfill sites.

Catalyzing the SGI’s ambition to ensure a sustainable future, Saudi Basic Industries Corp. is participating in the Alliance to End Plastic Waste Program to clean plastic from the oceans.

The initiative, expected to be completed in 2025, supports accelerated improvements to current waste management systems in developed regions.

Earlier in January, SABIC reaffirmed its commitment to accelerating the circular carbon economy by announcing plans to process 1 million metric tons of plastics through its Trucircle solutions initiative.

Trucircle is a portfolio of products SABIC offers, which include circular and bio-based products based on second- and third-generation renewable feedstock, mechanically recycled polymers, ocean and ocean-bound recycled solutions, and closed-loop services and designs for recyclability.

Meanwhile, Saudi Investment Recycling Co. and National Center for Waste Management are leading an initiative to transform waste management in Riyadh. This program aims to divert 94 percent of waste generated in Riyadh away from landfills and compost more than 1.3 million tons of biodegradable waste.

This program aims to create a proven waste management model that will be implemented across the Kingdom by 2035, which is expected to reduce 4.1 metric tons per annum of carbon dioxide emissions. 

Moreover, a separate SGI initiative with the NCWM is developing a comprehensive national waste management master plan for the Kingdom, pioneering circular economy practices. This project is expected to be completed by 2025. 

The SGI, inspired by Saudi Arabia’s commitment to achieving net-zero emissions by 2060, has also launched several initiatives, including investing in new energy sources, improving energy efficiency and developing a carbon capture and storage program. 

Furthermore, the SGI has also committed to planting 10 billion trees across Saudi Arabia and rehabilitating 40 million hectares of land to restore the Kingdom’s natural beauty. 

Earlier in April, the annual report issued by the National Transformation Program suggested that Saudi Arabia planted over 12 million trees in the past five years through the National Center for Vegetation Development.

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

As part of the SGI’s initiatives, Saudi Arabia has also committed to protecting 30 percent of its terrestrial and marine area and is working in partnership with leading international organizations, including the International Union for the Conservation of Nature, to safeguard the pristine landscapes of the Kingdom.


National Development Fund supports Saudi economy with $8bn financing in Q1

National Development Fund supports Saudi economy with $8bn financing in Q1
Updated 29 min 50 sec ago

National Development Fund supports Saudi economy with $8bn financing in Q1

National Development Fund supports Saudi economy with $8bn financing in Q1

RIYADH: Saudi Arabia’s industrial sector and small and medium enterprises were among the key beneficiaries of the Kingdom’s National Development Fund which provided over SR30 billion ($8 billion) funding support in the first quarter of 2023.   

The funding was allocated through a number of cooperation agreements and financing support for various economic sectors with an aim to achieve the social, economic and cultural goals envisioned in the Kingdom’s Vision 2030.  

This comes after the fund approved over SR135 billion in financing support for 2022, its annual report released in January showed.   

The NDF’s quarterly report pointed out that its Saudi Industrial Development Fund approved financing agreements valued at SR875 million with 24 businesses to support the objectives of the National Strategy for Industry.  

The report highlighted various achievements, agreements and new initiatives that helped in maximizing the developmental impact on the Saudi economy.  

For instance, SIDF signed an agreement with the Kingdom’s Small and Medium Enterprises General Authority, known as Monsha'at, to operate a program titled “How to start your industrial project”   

The program aims to empower business owners and facilitate their employment in the industrial sector by educating, fostering and inspiring young Saudi men and women.  

Furthermore, the SIDF backed more than 100 beneficiaries via academic and advisory programs in the first three months of the year.   

In support of the Kingdom’s tourism sector, the Tourism Development Fund also agreed to provide SR260 million in financing for 11 businesses in the sector during that period.   

The tourism funding was provided to 57 beneficiaries spread over 11 businesses through its pre-financing counseling and logistical support programs, stated the report.   

Meanwhile, a total of SR16 million in loans and over SR15 million in support were guaranteed by the Cultural Development Fund to finance cultural projects during the first three months of the year.  

As for Saudi Arabia’s efforts in advancing its human capital, the Human Resources Development Fund financed over 836,000 individuals and 73,000 enterprises in the first quarter of 2023.   

With a value exceeding SR2.2 billion, the funding contributed to employing over 96,000 individuals, and went towards employment support programs, empowerment programs, job search assistance and training.   

Additionally, the Small and Medium Enterprises Bank provided over SR1.1 billion in financing to 301 SMEs during the first three months, revealed the report.   

In support of Saudi Arabia’s society, the Social Development Bank financed around 9,000 individuals, with a value of SR454 million during that period.   

The SDB also supported about 25,000 beneficiaries in freelance, with a value of SR1.5 billion, as well as 3,000 SMEs with a value of SR1.1 billion.  

Agricultural and non-oil exports also received financial support as SR2.6 billion worth of funding was provided by the Agricultural Development Fund to over 2,086 individuals and 21 establishments in the first quarter.    

During the first same period, the Saudi EXIM Bank also provided credit facilities totaling about SR4.26 billion to support the Kingdom’s non-oil exports.  

Furthermore, the Kingdom has been a central contributor to international development aid, providing crucial financial support to numerous nations through its Saudi Fund for Development.   


Aviation leaders set to pave way for sustainable travel at IATA’s annual meet

Aviation leaders set to pave way for sustainable travel at IATA’s annual meet
Updated 9 min 13 sec ago

Aviation leaders set to pave way for sustainable travel at IATA’s annual meet

Aviation leaders set to pave way for sustainable travel at IATA’s annual meet

RIYADH: Global aviation leaders are set to pave the way for a more sustainable future in the International Air Transport Association’s 79th annual general meeting that began in Istanbul, Turkiye, on June 4.

The three-day event will attract industry experts from IATA’s 300-member airlines, government officials, strategic partners and equipment suppliers. 

“Airlines will meet to review the industry’s recovery from COVID-19, to plan the way forward to a more sustainable future, to discuss the opportunities for technology to drive efficiencies from modern retailing to improved facilitation, and to understand the common regulatory challenges they face,” Willie Walsh, IATA’s director general, said before the start of the event. 

This will be the second time IATA’s AGM has been hosted by Istanbul since 2008. The country is rebounding strongly after the pandemic. In 2022, travel from and to Turkiye increased nearly 60 percent compared to the year before, and it is now the seventh-largest international passenger market in the world, the Emirates News Agency, also known as WAM, reported. 

“Aviation is important. Connecting the world even as geopolitical divides deepen is a vital mission that requires profitable, safe, efficient and sustainable airlines. The outcomes of this IATA’s AGM must set the direction for even more effective global connectivity,” Walsh said. 

He added: “Since we were last in Istanbul, Turkiye has become an incredible global aviation powerhouse. Its carriers are leading the way in regional and international connectivity, and the magnificent new airport puts some other nations’ lack of airport investment to shame. There’s no doubt that Turkiye’s importance to global aviation will continue to grow significantly.” 

The meeting will address current challenges in the industry, the sector’s contribution to Turkiye’s recent earthquake recovery, and updates on sustainable travel, besides holding award ceremonies.