Dubai, China strengthen capital market ties with new agreement

Dubai, China strengthen capital market ties with new agreement
the Dubai Financial Market, in collaboration with Nasdaq Dubai and the Shanghai Stock Exchange, has signed a memorandum of understanding to advance joint products, including initiatives in indices and electronic funds transfer. Shutterstock
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Updated 20 November 2023
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Dubai, China strengthen capital market ties with new agreement

Dubai, China strengthen capital market ties with new agreement

RIYADH: Dubai and China are set to enhance their capital market ties through a newly signed agreement between their stock exchanges.

According to a press statement, the Dubai Financial Market, in collaboration with Nasdaq Dubai and the Shanghai Stock Exchange, has signed a memorandum of understanding to advance joint products, including initiatives in indices and electronic funds transfer.

This strategic alliance will also open avenues for introducing innovative products in environmental, social, corporate governance and sustainability.

This step marks a significant development in fostering financial collaboration between these exchanges.


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.


Asia’s first Saudi ETFs set to debut on HKEX: top official 

Asia’s first Saudi ETFs set to debut on HKEX: top official 
Updated 27 November 2023
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Asia’s first Saudi ETFs set to debut on HKEX: top official 

Asia’s first Saudi ETFs set to debut on HKEX: top official 

RIYADH: Investors will have the option to trade constituent stocks of the Saudi stock market directly on the Hong Kong Stock Exchange through exchange-traded funds in either Hong Kong dollars or Chinese renminbi.  

This announcement comes as Asia's first Saudi ETFs are set to be listed on the HKEX on Nov. 29, according to a top official. 

An ETF is an investment system that functions like a combination of mutual funds and stocks, enabling individual investors to conveniently invest in markets.

In his blog post, Paul Chan, the financial secretary of the Hong Kong Government, stated: “The asset size of this ETF is the largest of its kind in the world, and it can be said to be a practical example of the financial connectivity of the Belt and Road Initiative.” 

He added: “I look forward to more two-way co-operation on financial products between the two places in the future, so as to make financial connectivity and capital flow wider and broader.”  

Individual investors can buy and sell listed ETFs on stock markets, as they are similar to mutual funds in that they track entire indices. 

Chan further mentioned that in the past two months, the HKEX has included the Saudi Exchange and the Indonesia Stock Exchange in the list of recognized bourses. 

“The Saudi Exchange brings together the largest energy, industrial and medical sectors in the Middle East; the Indonesia Stock Exchange, on the other hand, is a fundraising destination for high-quality innovative companies in Southeast Asia,” added Chan.  

In February 2023, both exchanges signed a memorandum of understanding to collaborate in sectors such as fintech and environmental, social, and governance, exploring listing opportunities.  

Meanwhile, economic relationships between Saudi Arabia and China are also on the rise, with the central banks of both nations signing a local currency swap agreement worth SR26 billion on Nov. 20. 

In a press statement, the Saudi Central Bank, also known as SAMA, said that the three-year agreement has been established in the context of financial cooperation between the central banks of both countries.