Zamil inks $153m deal with SAMI to set up industrial complex in Al Kharj 

Zamil inks $153m deal with SAMI to set up industrial complex in Al Kharj 
Zamil Steel Construction Co. will also carry out the maintenance, electrical and plumbing works in the industrial complex. Shutterstock.
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Updated 11 December 2023
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Zamil inks $153m deal with SAMI to set up industrial complex in Al Kharj 

Zamil inks $153m deal with SAMI to set up industrial complex in Al Kharj 

RIYADH: Saudi Arabia’s land defense systems are expected to strengthen further after Zamil Steel Construction Co. reached a SR574.9 million ($153 million) deal with Saudi Arabian Military Industries Land Services. 

Under the agreement, an industrial complex that will develop, design, and manufacture land defense systems will be built in Al Kharj, according to an official statement.  

The statement added that Zamil Steel Construction Co. will also carry out the maintenance, electrical and plumbing works in the industrial complex.  

In a separate statement in Tadawul, Zamil Industrial Investment Co., the parent firm of the construction company, said that the scope of the deal also includes the supply of heating, ventilation, and air conditioning products and services, insulated panels, steel structures, and insulation materials. 

The company further noted that the related financial impact of the deal will be reflected in its financial statements from the first quarter of 2024.  

Zamil added that it expects the contract to have a positive financial impact upon completion of each phase of the project. 


Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister
Updated 10 sec ago
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Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

RIYADH: Saudi Arabia aspires to become one of the largest producers and exporters of clean energy, said Energy Minister Prince Abdulaziz bin Salman.

In an interview with the quarterly bulletin issued by the Saudi Association for Energy Economics, the minister said the Kingdom is capable of producing green and clean hydrogen at competitive prices.

Prince Abdulaziz said the Kingdom is focussing on all energy sources including solar, wind and green hydrogen as well as nuclear and geothermal.

This will help the Kingdom to reduce the consumption of liquid fuels in generating electricity and reaching the optimal energy mix, he added.

The minister cited the establishment of the largest green hydrogen production plant in NEOM as an example. The plant will have an annual production capacity of 250,000 tonnes by 2026.

Talking about the fluctuations in the oil market, he said the Organization of the Petroleum Exporting Countries has mechanisms in place to deal with global crude market challenges.

Despite highlighting Saudi Arabia’s energy transition plans, Prince Abdulaziz said the need for fossil fuels, especially oil and gas, will continue for decades as also indicated by several industry reports.


Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602
Updated 16 min 37 sec ago
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Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602

RIYADH: Saudi Arabia’s Tadawul All Share Index bounced back on Tuesday after recording declines on two days.

The benchmark index gained 69.79 points to close at 12,601.55 with an overall trading value of SR7.31 billion ($1.95 billion), with 169 stocks advancing and 52 declining. 

The Kingdom’s parallel market, Nomu, also gained 661.67 points to close at 26,254.28 and the MSCI Tadawul Index also edged up by 0.68 percent to 1,627.71. 

The best-performing stock of the day was Middle East Pharmaceutical Industries Co., also known as Avalon Pharma, which debuted on the main market on Tuesday. The company’s share price soared by 30 percent to SR106.60. 

Other top performers were Saudi Steel Pipe Co. and Batic Investments and Logistics Co., whose share prices surged by 9.93 percent and 9.87 percent, respectively. 

The worst performer of the day was Saudi Arabian Amiantit Co., as its share price slipped by 5.24 percent to SR29.85. 

On the announcements front, Arabian Centers Co., also known as Cenomi Centers, said that its board of directors approved issuing dollar-denominated sukuk under its international sukuk program. 

In a Tadawul statement, Cenomi Centers revealed that the amount and the terms of offerings will be announced later, depending on the market conditions. 

The lifestyle center operator added that the sukuk issuance is subject to the approval of the relevant regulatory authorities. 

Meanwhile, National Medical Care Co. revealed that it witnessed a net profit rise of 42 percent in 2023 to SR240.9 million compared to the previous year. 

The medical service provider said the rise in net profit was driven by higher revenue, gross profit, and interest income, along with lower sales costs and zakat charges. 

National Medical Care Co. added that the net profit for the fourth quarter of 2023 also witnessed a surge of 15 percent to SR63.5 million compared to the same period in 2022. 


Aramco signs procurement agreements worth $6bn to enhance local supply chain

Aramco signs procurement agreements worth $6bn to enhance local supply chain
Updated 27 February 2024
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Aramco signs procurement agreements worth $6bn to enhance local supply chain

Aramco signs procurement agreements worth $6bn to enhance local supply chain

RIYADH: Saudi Aramco’s domestic supply chain is poised for further improvement as it signed procurement agreements worth $6 billion with suppliers in the Kingdom. 

According to a press statement, these 40 procurement agreements were inked as a part of the company’s strategic localization program and are expected to strengthen the firm’s supply chain ecosystem and contribute to the development of the energy services sector in Saudi Arabia. 

The deals will also provide suppliers with long-term demand visibility, enabling them to capture future growth and advance localization efforts.

Wail Al-Jaafari, executive vice president of technical services at Saudi Aramco, said: “The 40 new agreements signed today are expected to contribute to the domestic value chain and further enhance the ecosystem that Aramco is helping to build.” 

Moreover, these procurement agreements will also contribute to achieving the objectives of Aramco’s iktva program, an initiative to drive the growth of a vibrant economy in the Kingdom and create new opportunities for Saudi nationals.

These new corporate deals span the supply of a range of products comprising strategic commodities, such as instrumentation and electrical and drilling equipment. 

“These agreements move us toward a more prosperous, diverse and resilient supply chain, which will help ensure business continuity. They also represent a key milestone on our iktva journey and provide our partners an opportunity to benefit from a dynamic and increasingly diversified operating environment,” added Al-Jaafari. 

Additionally, Saudi Aramco signed two memorandum of understanding with its strategic partners to collaborate on localization and supply chain development. 

Earlier in February, speaking at the International Petroleum Technology Conference in Dhahran, Amin Nasser, CEO of Saudi Aramco, said that the company is very active in its localization efforts. 

“We hired more than 5,000 people, mostly Saudis, but also from 60 nationalities,” said Nasser.

He also added that Aramco has the full capability to grow in any sector to create profitable companies.

In January, a report released by strategic consulting firm Brand Finance revealed that Saudi Aramco has retained its position as the most valuable company in the Middle East region, with a value amounting to $41.6 billion.


Saudi investment firm acquires startup platform VeFund  

Saudi investment firm acquires startup platform VeFund  
Updated 27 February 2024
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Saudi investment firm acquires startup platform VeFund  

Saudi investment firm acquires startup platform VeFund  

RIYADH: The Saudi startup ecosystem is set to expand further with the investment fund CoreVision acquiring VeFund, infusing artificial intelligence technologies for enhanced venture evaluation, innovation, and strategic growth. 

The acquisition of VeFund, a regional platform for venture evaluation and investor connections, represents a significant step in CoreVision’s strategic growth, enhancing its portfolio with advanced AI-driven technologies. 

The Saudi investment firm plans to use VeFund’s AI technology to support startups in navigating competitive environments.  

Following the acquisition, CoreVision CEO Faisal Al-Abdulsalam will lead VeFund as its chief executive. 

Al-Abdulsalam’s extensive experience and portfolio of over 80 investments in various sectors are set to bring a new strategy of leadership and vision to VeFund, the company said.   

“We at CoreVision are not just investors, we see ourselves as ecosystem builders. As such, our vision is to transform VeFund into a secondary market for startups, offering a platform for investors to trade safe notes, which is essential in contributing to the vibrancy of the startup community here in Saudi Arabia,” said Al-Abdulsalam.   

Launched in 2023 by Mohamed Gaber, an AI specialist and serial entrepreneur, along with his co-founder Ahmed Magdy, VeFund’s intelligent evaluator provides a suite of tools, including an AI Survivability Index, valuation calculators, and extensive portfolio management solutions. 

“I am excited about the future of VeFund and believe strongly that this transition will drive VeFund’s mission forward, fostering an environment of innovation and success for startups across the Middle East,” Gaber said.  

VeFund currently has over 1,400 startups registered on its platform and has a database of more than 400 angel investors and investments funds spanning across Saudi Arabia, the UAE, Egypt, and Pakistan. 


Saudi Arabia exceeds Vision 2030 target 7 years early by attracting 100m tourists in 2023 

Saudi Arabia exceeds Vision 2030 target 7 years early by attracting 100m tourists in 2023 
Updated 27 February 2024
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Saudi Arabia exceeds Vision 2030 target 7 years early by attracting 100m tourists in 2023 

Saudi Arabia exceeds Vision 2030 target 7 years early by attracting 100m tourists in 2023 

RIYADH: Saudi Arabia has exceeded its Vision 2030 tourism target seven years ahead of schedule after welcoming over 100 million visitors in 2023.  

The Ministry of Tourism disclosed that the Kingdom played host to 27.5 million international tourists in 2023, marking a notable 65 percent increase compared to 2022. 

Likewise, the count of domestic tourists rose by 2 percent year-on-year, reaching 79.3 million in 2023.  

Collectively, both international and domestic tourists spent more than SR250 billion ($67 billion), constituting over 4 percent of the Kingdom’s total gross domestic product and 7 percent of non-oil GDP, the Saudi Press Agency reported. 

“This achievement underscores the dedicated efforts of the Saudi tourism ecosystem in developing the tourism sector in Saudi,” said the ministry in an X post.  

Saudi Tourism Minister Ahmed Al-Khateeb attributed this achievement to the wise leadership of the Kingdom’s Crown Prince Mohammed bin Salman, who aims to enhance the country’s position on the global travel map. 

This saw Saudi Arabia being congratulated by both the UN World Tourism Organization and the World Travel and Tourism Council for surpassing its tourism goal ahead of schedule.  

UNWTO also suggested that the Kingdom could soon achieve its upgraded target of attracting 150 million visitors by 2030. 

“Saudi Arabia’s achievement of welcoming over 100 million tourists in 2023 is a beacon of what is possible through collaboration, innovation, and a clear vision for the future,” stated UNWTO in a statement.  

“As Saudi Arabia continues to drive toward its goal of 150 million tourists by 2030, UN Tourism looks forward to supporting its journey, celebrating its successes, and promoting a more resilient, sustainable, and inclusive future for global tourism,” it added. 

Saudi Arabia’s accomplishments align with the National Tourism Strategy, striving to establish the Kingdom as a global tourist destination and increase the sector’s contribution to the country’s GDP by 10 percent.  

According to the UNWTO statement, Saudi Arabia has generated over 925,500 jobs in the tourism sector as of 2023, positioning the Kingdom on track to make tourism the second-largest employer by the end of this decade.