Saudi businesswoman lauds Kingdom-Japan cooperation ‘changing the world’

Saudi businesswoman lauds Kingdom-Japan cooperation ‘changing the world’
Mashael Abdullah bin Al-Saedan, founder and chairwoman of AL SAEDAN BT, made the comments in Fukushima. (Arab News Japan)
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Updated 17 July 2023
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Saudi businesswoman lauds Kingdom-Japan cooperation ‘changing the world’

Saudi businesswoman lauds Kingdom-Japan cooperation ‘changing the world’
  • New construction technology being developed is a global innovation, says Mashael Abdullah bin Al-Saedan
  • Sector critical to several industries, says founder and chair of AL SAEDAN BT

TOKYO: The Kingdom’s cooperation with Japan to develop new technology for the construction industry is “changing the world,” according to a leading Saudi businesswoman.

Mashael Abdullah bin Al-Saedan, founder and chairwoman of AL SAEDAN BT, made the comments in Fukushima at the weekend while participating in the opening of a joint-venture project to provide affordable housing in Saudi Arabia.

“I really think this Saudi-Japanese partnership in the construction and building sector is changing the world,” she said. “This sector drives the economic cycle because it drives more than 200 industries, so it has had a very strong economic impact globally, especially after the corona (COVID-19) crisis.”

She said the world needs technologies that reduce costs, raise productivity, maintain high quality and lead to long-term investment.

“These technologies are developed for the first time in the world in partnership between Saudi Arabia and Japan, and they are exported from Saudi Arabia to the world, including 3D printing materials and the standardization of mass production products,” she explained.

Bin Al-Saedan said that Crown Prince Mohammed bin Salman had in 2017 expressed his desire to see Saudi Arabia “built with robots.” “Today we have translated the dreams of his highness into reality. What I mean is we have made this transformation which is changing the world, and it will be completed within the 2030 Vision in record time. The use of modern technologies makes this possible.”

She added: “So the messages I would like to focus on is Japan is the place of modern technology and Saudi Arabia is the hub of technology because His Highness MBS declared that we will be the Silicon Valley of the world. Today, we are the hub of technology and we are transferring knowledge from Japan to Saudi Arabia and integrating with it by developing this knowledge more and more and exporting it together with wealth and raw materials produced locally.”

Bin Al-Saedan said that Saudi Arabia not only has oil, but also natural raw materials, while Japan has the know-how and relevant patents. “So, we integrate and change the world through integration,” she said. “We can change the world together because we are building the world hand in hand and making life better for humanity.”

She said the innovations underway has resulted also in Saudi 3D printing costs being 50 percent less than those found in other parts of the world.

“That is what we want to focus on and these are the first steps to change the world in the construction sector,” said Bin Al-Saedan, who sees these developments as part of a new industrial revolution.

“Each time a revolution transformed some sector and made it more cost effective and less in terms of the price. Now, the fourth revolution and the fifth revolution talk is all about fast technology, actually miniaturization and functionalization of materials and artificial intelligence machine learning.”

“The construction sector is different and our resources in Saudi Arabia are not only based on oil, as his highness the crown prince said, but even our sand. We are utilizing our mining and our resources, which is even higher quality compared with the world’s, and the prices are competitive as we are integrating it into the technology of Japan and that will transform the construction sector.”

Saudi Arabia is also seeking to use robots that can carry heavy weights and walk distances of up to 100 kilometers, and wants to use 3D printers to manufacture drones.

“This is the crown prince’s dream and the dream for Saudi Arabia — to make Saudi Arabia develop and to build with robots. So, I think Japan is the best partner for Saudi Arabia for both this project and many others because (the) Japanese have the most important culture and people. When they commit to something, they do it. And that is what we need today.”

This article originally appeared on Arab News Japan


Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts
Updated 9 sec ago
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Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

SINGAPORE: Oil prices rose slightly on Tuesday due to a weak dollar, and expectations that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, would deepen and extend output cuts due to fears demand would remain subdued, according to Reuters.

Brent crude futures were up 11 cents, or 0.1 percent, at $80.09 a barrel at 8:10 a.m. Saudi time. 

US West Texas Intermediate crude futures were trading 4 cents higher, also 0.1 percent, at $74.90 a barrel. Both benchmarks pared some gains after rising sharply in early Asian trade.

OPEC+, which includes Russia, will hold an online ministerial meeting on Nov. 30 to discuss production targets for 2024.

The meeting comes amid a sharp decline in oil prices, due to concerns that the market was oversupplied despite output cuts by the OPEC+. Brent has fallen by more than 18 percent and WTI by over 21 percent since end-September highs. Strong production by non-OPEC countries such as the US have added to pressure on prices.

OPEC+ set oil prices tumbling last week by postponing its meeting in order to iron out disagreements over production targets for African producers. But it has moved toward a compromise, four OPEC+ sources told Reuters on Friday, potentially helping a consensus on the need to deepen output cuts.

The decline in prices could spare Riyadh any pressure from the US to limit output cuts, according to analysts.

“Saudi Arabia may be comforted that US gasoline prices have fallen for 60 straight days. This may soften the US opposition to any move to tighten oil markets and support prices,” ANZ Research said in a note on Tuesday.

The US dollar’s retreat to its lowest level in three months should bolster demand fronm countries who pay for their oil in other currencies.
 


PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 
Updated 28 November 2023
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PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 

RIYADH: Saudi Arabia’s Public Investment Fund has secured a term loan of $5 billion from a group of nine international lenders, covered by the Korea Trade Insurance Corp. This agreement signifies PIF's ongoing effort to diversify its funding sources in a strategic manner. 

This financing arrangement, with a tenor of 13 years, initially set at $3 billion and expandable to $5 billion, marks PIF’s first venture into funding covered by an export credit agency. 

Building on a memorandum of understanding signed in March 2022, PIF and K-SURE have translated their intentions into action, resulting in this significant K-SURE-covered term loan. 

Fahad Al-Saif, head of the global capital finance division at PIF, said: “This collaboration with K-SURE underscores PIF’s commitment to foster institutional partnerships as we continue to deliver on our medium-term capital raising strategy.” 

He added: “The financing is part of PIF’s four primary sources of funding and strengthens economic ties between Saudi Arabian and South Korean businesses.”

The collaboration aims to facilitate the export of Korean goods and services into projects and subsidiaries, either partially or fully owned by PIF, strengthening economic ties. 

“Through this financial support, Korean companies have not only gained technological competitiveness but also financial competitiveness to increase orders,” said Inho Lee, president of K-SURE.

He added: “We trust this support will contribute to strengthening the future-focused partnership between the two countries.” 

The deal follows PIF’s recent financial activities, including an international sukuk issuance of $3.5 billion, two green bond issuances totaling $8.5 billion, and a $17 billion corporate loan in 2022. 

These diverse funding initiatives align with PIF’s strategy to source capital from an expanding range of options, with loans and debt instruments being one of its primary sources. 

Beyond financial instruments, PIF drew funding from retained earnings from investments, capital injections from the government, and the transfer of state assets to PIF.

The fund holds a strong credit rating, with Moody’s allocating it “A1” with a positive outlook and Fitch giving it “A+” with a stable outlook, reinforcing its financial strength and stability.


Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

Saudi housing market remained hot in Q3 with $45.9bn worth of transactions
Updated 27 November 2023
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Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

RIYADH: Saudi Arabia’s housing market remained hot in the third quarter of 2023 with the total transactions reaching 61,473 worth SR45.9 billion ($12.23 billion), an industry report showed.

The report released on Monday by global consultancy firm CBRE showed that the average price for apartments in the Saudi capital rose to SR4,780 per sq. meter, a growth of 16.1 percent compared to a year earlier.

During this period, Alkhobar’s average apartment prices saw an uptick of 2.9 percent to reach SR3,424 per sq. meter, while Dammam’s average apartment prices rose by 2.4 percent to stand at SR2,862 per sq. meter.

The only apartment market to regress in terms of prices was in Jeddah, where average apartment prices fell by 9.5 percent to reach SR3,872, the report showed.

Taimur Khan, head of Middle East Research at CBRE, said: “With the exception of Jeddah, Saudi Arabia’s residential market posted yearly price increases in all tracked cities in Q3 2023 across both the villa and apartment segments.”

He added: “These performances were achieved despite a fall in residential transactions, which stemmed from high-interest rates and as buyers continue to adopt a wait-and-see approach in anticipation of new quality stock which is set to be delivered in the short to medium term.”

In the villa segment of the market, average prices in Riyadh, Dammam, and Alkhobar have shown gains in the 12 months to the third quarter of 2023. In Riyadh, the average price for villas improved by 1.2 percent year on year, reaching SR5,615 per square meter. Dammam and Alkhobar’s average villa prices increased by 1.8 percent and 3.2 percent over the same period in 2022, where average prices registered at SR3,565 and SR3,612 per sq. meter, respectively. Jeddah’s villas segment contracted in the year to the third quarter of 2023 by 3 percent, where average villa prices stood at SR5,411 per sq.meter.

The report, however, showed in comparison to the same period in 2022, the total number of transactions demonstrated a drop of 7 percent, while the total value for residential property transactions in the Kingdom decreased by 11.3 percent.

The total number of mortgage contracts in the year to date to the third quarter of 2023 fell by 37.5 percent. Single-family homes accounted for 69.8 percent of the total value of lending, followed by apartments and land at 24.8 percent and 5.4 percent respectively.


Saudi Green Building Forum to affirm commitment to sustainability at COP28

Saudi Green Building Forum to affirm commitment to sustainability at COP28
Updated 27 November 2023
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Saudi Green Building Forum to affirm commitment to sustainability at COP28

Saudi Green Building Forum to affirm commitment to sustainability at COP28

RIYADH: Affirming the Kingdom’s commitment to a sustainable future, the Saudi Green Building Forum is set to participate in the 28th session of the UN Climate Conference, also known as COP28, in Dubai. 

Taking place in the Blue Zone pavilion, the SGBF’s schedule of associated events is outlined across three key areas, including technology and innovation, inclusion, and finance, centering around frontline communities. 

“The SGBF pavilion works to build the capabilities of all heads of companies and bodies related to the public or private sector, providing opportunities for its members, individuals and institutions, joining in person and virtually including 27 SGBF Observers experts in the areas of sustainable development within the Blue Zone of the conference at the United Nations, UNFCCC (United Nations Framework Convention on Climate Change),” Faisal Al-Fadl, secretary-general of SGBF said. 

In a notable collaboration, Magnom Properties and Rawabi Holding, the owners of the Forbes International Tower, will also be present at the pavilion. 

Held in collaboration with Forbes International Tower, these keynote addresses and panel discussions will include ministers, public servants, UNFCCC leaders, climate action advocates, business and industry executives, and sustainability consultants. 

The objective is to address the decarbonization of the construction sector in the region and highlight green frontlines and initiatives that drive the effort for a more sustainable construction sector. 

In response to COP28, the forum is committed to collaborating with climate change stakeholders in promoting Sustainable Development Goals set by the UN General Assembly in 2015 in four key areas, including accelerating green energy solutions and prioritizing clean water efficiency. 

Furthermore, these domains include addressing climate finance through green energy initiatives, future-proofing the built environment, and conserving natural resources to safeguard nature, lives, and livelihood. 

“This participation is unique to the area for developing business and industries displaying the best building and construction practices, as the Blue Zone is a high-level space for delegates of member states countries and observers nominated by the SGBF,” Al-Fadl added. 

Additionally, the program will feature a series of panel discussions on the Paris Agreement, regional meetings with officials, and workshops. 

As the program kicks off, the opening keynote on Dec. 2 by Osman Ibrahim, Rawabi Holding vice chairman and group CEO of Magnom Properties, will highlight elevating the standards of sustainability and environmentally responsible practices in the region’s real estate sector. 

Sessions will examine topics ranging from powering the green building revolution in the region’s real estate sector and start-ups driving sustainable innovation. 

The nongovernmental institution, accredited by the UNFCCC, aims to enhance national gains in the field of combating climate change within international cooperation. 

Furthermore, the forum aims to showcase Saudi Arabia’s capabilities and the global collective efforts reflected in its national and international policies to reduce generational environmental impacts. 


SGI to host third edition of forum during COP28

SGI to host third edition of forum during COP28
Updated 27 November 2023
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SGI to host third edition of forum during COP28

SGI to host third edition of forum during COP28

RIYADH: The Saudi Green Initiative is gearing up for the third edition of its forum on Dec. 4, during the UN Climate Change Conference at Expo City in Dubai.

SGI, through hosting a multitude of expert-led talks under the theme “From Ambition to Action,” aims to convene senior governmental officials, climate experts and CEOs to share their collective insights on what additional measures are required to address the pressing challenges climate change poses.

Adel Al-Jubeir, Saudi minister of state and climate affairs envoy, told Arab News that the Kingdom’s approach to climate change is an inclusive one, rooted in cooperation, exchange of expertise, and multilateral efforts between all nations.

The forum will feature a series of panel discussions exploring the key themes under four event pillars: Industrial Plays, The Financial Architecture of Tomorrow, Innovative Transitions, and Coherence for Impact.

The sessions will examine topics ranging from clean energy scaling, desertification mitigation, climate technology innovation, and safeguarding the Red Sea, as well as sustainable urban planning, carbon capture utilization and storage, hydrogen technology and ESG investments. 

Key speakers at the forum include Bill Winters, CEO of Standard Chartered,  Angela Wilkinson, secretary-general and CEO of the World Energy Council, François Jackow, CEO of Air Liquid, and several Saudi governmental officials.

In addition to the forum, the SGI Gallery will be open daily throughout the conference, displaying the breadth and depth of climate action initiatives taking place across Saudi Arabia and the range of entities, projects and individuals behind these efforts. 

Visitors to the SGI Gallery will discover how the Kingdom is progressing toward its targets and learn more about the multitude of sustainable initiatives already delivering results across the country.

Under the patronage of Crown Prince Mohammed bin Salman, the SGI aims to chart a path for the Kingdom’s sustainability initiatives, with targets spanning the coming decades.

The national initiative seeks to improve the quality of life and protect future generations by increasing reliance on clean energy, offsetting the impact of fossil fuels, and protecting the environment.