UAE’s IMKAN Properties’ CEO praises Saudi Arabia’s ‘booming’ realty market

Special UAE’s IMKAN Properties’ CEO praises Saudi Arabia’s ‘booming’ realty market
IMKAN Properties’ CEO Suwaidan Al-Dhaheri speaking to Arab News.
Short Url
Updated 27 September 2023

UAE’s IMKAN Properties’ CEO praises Saudi Arabia’s ‘booming’ realty market

UAE’s IMKAN Properties’ CEO praises Saudi Arabia’s ‘booming’ realty market

RIYADH: Saudi Arabia’s real estate sector has garnered significant interest from investors in the UAE, according to a top developer based in Abu Dhabi.

Speaking to Arab News on the sidelines of the Future Hospitality Summit, IMKAN Properties’ CEO Suwaidan Al-Dhaheri said that the Kingdom holds numerous untapped opportunities in the realty sphere.

“Saudi Arabia is a booming place and there is no reason not to invest in Saudi, if there’s a chance and I’m sure there will be a chance in the future to invest,” Al-Dhaheri said.

He noted that the demand for developers in the Kingdom is growing, making it an opportune time for the firm to explore possible investment avenues.

“Now we have 80 percent currently focusing in UAE, 20 percent overseas,” the CEO explained.

He disclosed that the company currently has a major development in Morocco, which entails a hospitality segment, shopping facilities, and apartments. It will also include clinics and offices.

Furthermore, he discussed the upcoming addition surrounded by branded residences in the UAE, set to be unveiled before the end of the year.

“But it is not just a hospitality; it’s a hospitality, it’s a wellness and a clinic. So, it is a three in one and this is where we are trying to be different as a developer,” Al-Dhaheri noted.

The managing director spoke of the investment appeal secured through promoting a community-based interest.

“We are not just attracting the investment for our development. We are creating a community that attracts the investor to invest within our community,” he clarified.

During the interview, Al-Dhaheri also shed light on the fact that the firm is considering several international operators in an attempt to propel the hospitality sector as a whole.

Centered around the theme “Focus on Investment,” the summit catalyzes change, facilitating interactions among over 1,000 hospitality leaders through debates, dialogues, initiatives, and announcements.  

Hosted at the Hilton Abu Dhabi Yas Island, the three-day event’s agenda includes contributions from more than 150 speakers hosting panel discussions, one-on-one interviews, and roundtables, as well as innovation pitches, and student-led sessions.

Saudi Aramco sets LPG contract prices for December

Saudi Aramco sets LPG contract prices for December
Updated 30 November 2023

Saudi Aramco sets LPG contract prices for December

Saudi Aramco sets LPG contract prices for December

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, kept the official selling prices for liquefied petroleum gas in December unchanged from the previous month, according to an official statement.

Aramco’s December OSP for propane is $610 per ton, while price for butane has been set at $620 per ton.

Propane and butane are types of LPG with different boiling points.

LPG is mainly used as a fuel for cars, heating and as a feedstock for other petrochemicals.

Aramco’s OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region.

Saudi Arabia extends 1 million bpd voluntary cuts until Q1 2024

Saudi Arabia extends 1 million bpd voluntary cuts until Q1 2024
Updated 15 min 7 sec ago

Saudi Arabia extends 1 million bpd voluntary cuts until Q1 2024

Saudi Arabia extends 1 million bpd voluntary cuts until Q1 2024

RIYADH: Saudi Arabia on Tuesday decided to extend its voluntary crude output cuts of 1 million barrels per day until the end of the first quarter of 2024 in coordination with some OPEC+ members, the state-run Saudi Press Agency reported quoting an official source from the Ministry of Energy.

It is the continuation of the Kingdom’s decision made in July, it added.

Following the latest decision, Saudi Arabia’s crude production will remain at approximately 9 million bpd until the end of March 2024. The report added that after the first quarter “in order to support market stability, these additional cuts” will be returned gradually subject to market conditions.

The source also noted that this voluntary cut is in addition to the voluntary cut of 500,000 bpd announced by the Kingdom in April 2023, which extends until the end of December 2024.

The source confirmed that these additional voluntary cuts seek to reinforce the efforts made by the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, to support the stability and balance of oil markets.

Russia also said on Thursday it would deepen its voluntary oil production cut to 500,000 bpd and extend it until the end of the first quarter of 2024.

The extra cuts are intended to “maintain stability and balance in the oil market,” Deputy Prime Minister Alexander Novak said in a statement following a meeting of OPEC+ ministers held in Vienna.

Kuwait followed suit by announcing voluntary cuts of 135,000 bpd for three months starting Jan. 1, Kuwait’s state news agency KUNA said on Thursday citing the country’s oil minister.

Kuwait’s oil production will be 2.413 million bpd to the end of March 2024, said Saad Al-Barrak. He said the cut was on top of a 128,000 bpd voluntary cut announced in April, KUNA said.

These announcements came after the OPEC+ members met in an online meeting about global oil production. The OPEC+ ministers set quotas for Angola, Congo and Nigeria after they postponed their meeting originally set for Sunday by four days. There was no immediate word on reductions from other member countries.

Brazil invited

Brazil hopes to join the OPEC+ in January after a technical analysis of the charter for cooperation, the country’s energy minister said on Thursday, reported Reuters.

President Luiz Inacio Lula da Silva’s office confirmed receiving the invite during his trip to Saudi Arabia, but said he had not formally responded.

The president’s office and the Mines and Energy Ministry did not say whether Brazil would participate as an OPEC+ observer or as a full participant in the group’s shared production quotas.

Mines and Energy Minister Alexandre Silveira told his OPEC+ peers that Brazil was eager to formally enter the group at a future meeting in Vienna, after a technical review of its charter for cooperation.

“It’s all set. But there is a phase of detailed analysis by our technical team of the document we just received, which is part of the protocol in Brazil,” Silveira said in Portuguese during a virtual meeting, where his comments were met with a standing ovation from OPEC+ ministers.

In a statement OPEC+ said it welcomed Silveira to the meeting, adding that Brazil “will join the OPEC+ Charter of Cooperation starting January 2024.”

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 
Updated 30 November 2023

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

RIYADH: Saudi Arabia Railways and Al-Jabr Automotive have collaborated to transport thousands of vehicles annually by train from King Abdulaziz Port in Dammam, aiming to boost operational efficiency, reduce costs, and minimize damage and carbon emissions.  

The four-year contract plays a significant role in enhancing the efficiency of operational processes, cutting expenses, and minimizing the incidence of damage related to the transportation and handling of new cars. 

Furthermore, it serves to alleviate pressure on the port, as reported by the Saudi Press Agency.  

The contract marks a pioneering milestone in the Kingdom, aligning with SAR’s strategic initiative to broaden the scope of transportation services.  

This endeavor aims to cater to diverse customer segments, showcasing the national railway company’s commitment to innovation in the sector.  

The deal also underscores SAR’s steadfast commitment to providing sustainable solutions in the transport and logistics sector. Aligned with the National Strategy for Transport and Logistics, SAR aims to reduce carbon emissions by 25 percent by 2030, in harmony with the Kingdom’s environmental initiatives. 

Looking forward to outreaching new customers to achieve a tangible impact on the environment and society, Bashar bin Khalid Al-Malik CEO of SAR pointed out that the agreement represents a milestone moment towards achieving the strategic vision of a comprehensive transformation within the transport and logistics sector. 

He said: “We are taking a significant step through this agreement. Not only we are expanding and diversifying the services provided to our customers but also offering logistical transport solutions that contribute to reducing carbon emissions and enhancing traffic safety levels,” he said. 

He further emphasized that the recent collaboration underscores their complete dedication to realizing sustainability goals and offering transportation solutions that consider the future of the nation and succeeding generations. 

According to its website, Al-Jabr Automotive occupies a leading position in the Saudi automobile market, having 28 showrooms and 38 fully-fledged service centers across the Kingdom.  

The company offers a wide spectrum of new and used KIA Motors cars as well as quality after-sales services. It boasts a large distribution network covering major regions in Saudi Arabia.

Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 
Updated 30 November 2023

Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 74.43 points, or 0.67 percent, to close at 11,177.48. 

The total trading turnover of the benchmark index was SR7.40 billion ($1.97 billion) as 124 of the listed stocks advanced, while 91 retreated.  

Similarly, the Kingdom’s parallel market Nomu also rose 153.56 points, or 0.61 percent, to close at 25,235.62. This comes as 22 of the listed stocks advanced, while as much as 30 retreated. 

The MSCI Tadawul Index saw a gain of 11.82 points, or 0.83 percent, to close at 1,442.03. 

The best-performing stock of the day was Maharah Human Resources Co. The company’s share price surged 6.31 percent to SR64. 

Other top performers included Al-Rajhi Company for Cooperative Insurance as well as Electrical Industries Co., whose share prices soared by 5.69 percent and 5.04 percent, to stand at SR171 and SR2.50 respectively. 

Other leading performers included Naseej International Trading Co. and Gulf Insurance Group. 

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 6.67 percent to SR0.14. 

Other poor performers were Saudi Pharmaceutical Industries and Medical Appliances Corp. as well as Jadwa REIT Saudi Fund, whose share prices dropped by 3.61 percent and 3.44 percent to stand at SR36.05 and SR12.36, respectively. 

Moreover, Development Works Food Co. and National Medical Care Co. also performed badly. 

On the announcements front, Saudi Cable Co. announced its annual financial results for the period ending on Dec. 31 2022. 

According to a Tadawul statement, the firm’s net profits reached SR584 million in 2022, reflecting a 201.93 percent drop when compared to 2021. 

The decline in net profits is mainly attributed to a liquidity issue that the firm was facing as a result of judicial enforcement orders filed against it by creditors and lenders. 

Consequently, during the period, the company was unable to use its bank accounts and could not execute and produce on hand orders that obtained from the market. 

On another note, on behalf of MBC Group, HSBC Saudi Arabia in its capacity as lead manager, announced the offering price range at SR23 to SR25 per share as well as the commencement of the institutional book-building period. 

A bourse filing revealed that the offering comprised the issuance of 33.25 million ordinary shares for public subscription, representing 10 percent of MBC’s share capital. 

Meanwhile, ​​Lumi Rental Co. announced that it has received a purchase order from The Royal Commission for AlUla to provide vehicle rental services based on the existing contract between the two firms. 

According to a Tadawul statement, the value of the purchase order is SR41.82 million and includes providing rental services for 264 vehicles by the company to RCU. 

Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister
Updated 30 November 2023

Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister

LONDON: Saudi Arabia is exploring the potential launch of a new commodity trading platform for battery materials, including graphite and rare earths, its vice minister of industry and mineral resources said.

Riyadh’s efforts to build an economy that is not dependent on oil include a shift toward mining the country’s untapped mineral resources — worth about $1.33 trillion — including copper, lithium, phosphate and gold, but also investing in overseas assets.

“To be a minerals hub you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” Khalid bin Saleh Al-Mudaifer told Reuters in an interview.

The Kingdom has been studying setting up the trading platform for the past three months and it does not expect a decision to be made before the next six, Al-Mudaifer said.

“We don’t yet know if it would be feasible ... because the quantities are small and the specifications differ, it’s not as easy as aluminium or crude oil.”

There are currently no exchanges offering contracts for graphite or rare earth metals, both important materials for electric vehicle and the energy transition.

Lithium and cobalt can be traded on the London Metal Exchange and Chicago Mercantile Exchange.

“We are working with a number of consultants and also with the people who trade the commodities,” he said.

Saudi Arabia’s investment fund Manara Minerals, a joint venture between state-owned miner Ma’aden and the Public Investment Fund, was set up in January to buy assets overseas. It will prioritise copper, nickel, iron ore and lithium.

Its first major foray abroad was a deal to become a 10 percent shareholder in Vale’s $26 billion copper and nickel unit last July.