Al-Kharj to see industrial expansion opportunities, says minister

Al-Kharj to see industrial expansion opportunities, says minister
Minister of Industry and Mineral Resources Bandar Alkhorayef speaking at the Al-Kharj Industrial Forum. Shutterstock
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Updated 27 February 2024
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Al-Kharj to see industrial expansion opportunities, says minister

Al-Kharj to see industrial expansion opportunities, says minister

RIYADH: Saudi Arabia’s Al-Kharj governorate is set to witness opportunities for industrial expansion as it meets the goals of raising the local content ratio, according to a top official.

During a speech at the three-day Al-Kharj Industrial Forum that began in Riyadh on Tuesday, Minister of Industry and Mineral Resources Bandar Alkhorayef said the governorate is an important area on the Kingdom’s industrial map.

He also stated that Al-Kharj has been strategically situated for the establishment of military industries.

Al-Kharj also experienced a notable agricultural revolution, elevating its status to one of the key areas for agricultural and food production, the Saudi Press Agency reported.

It is home to prominent agricultural conglomerates like Almarai, Nadec, Al-Safi, and ARASCO, and it hosts the Food Industries Institute.

Additionally, Alkhorayef pointed out that the industrial city in Al-Kharj provides an ideal environment for attracting investments and is one of the distinguished urban centers in the Kingdom.

The developed area within the city covers 24 million sq. m and accommodates about 500 factories with investments exceeding SR5 billion.

It comprises a wide range of industrial activities, including food, pharmaceuticals, and chemicals, as well as renewable energy, minerals, machinery, and equipment.

Alkhorayef also clarified that the Kingdom’s direction toward industry is a strategic choice based on the natural resources of oil, gas, and minerals, as well as its distinctive geographical location, investment capabilities, and human resources.

“This direction is evident through the significant support provided by the wise leadership to this vital sector, starting with the launch of the National Industrial Strategy by Crown Prince Mohammed bin Salman,” according to the minister, as reported by SPA.

With a focus on 12 key industrial sectors where the Kingdom has opportunities to grow and compete both regionally and globally, this strategy lays out a clear path for Saudi Arabia to attain a competitive and sustainable industrial economy.

Ambitious goals include tripling the industrial gross domestic product to SR895 billion by 2030 and raising the value of additional investments in the sector to SR1.3 trillion. They also include doubling the value of industrial exports to SR557 billion and introducing more than 800 investment opportunities worth SR1 trillion.

Alkhorayef added that his ministry is currently working to position the Kingdom on the global industrial map by building a sector based on embracing the Fourth Industrial Revolution, technology, and innovation.

“Today, we rely on the role of chambers of commerce in assisting the ministry and its system in reaching the private sector and explaining all means of support and opportunities available, whether in local content, exports, or other various financing methods, such as financing for small investors and entrepreneurs provided by the Industrial Fund with the least conditions and guarantees,” Alkhorayef said.

He added: “We also look forward to working with chambers of commerce to emphasize the importance of benefiting from these opportunities and incentives, as well as listening to the challenges facing our partners in the private sector so that we can overcome them through upcoming programs.”

Al-Kharj Gov. Fahd bin Abdulaziz praised the efforts made by the governorate’s chamber of commerce and industry in working toward achieving the strategic objectives that fulfill the main goals of the Kingdom’s Vision 2030.


‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
Updated 25 sec ago
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‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
  • Security and stability make Saudi Arabia a safe bet

RIYADH: The mindset in the Gulf region that fosters the development of iconic projects is “uplifting” and will make its way back to the US under Donald Trump’s next presidency, Eric Trump told Arab News on Thursday.

The president-elect’s second son, who serves as executive vice president of the Trump Organization, praised the region for its innovative approach, which he believes defies common misconceptions held by Western nations.

During a visit to the Saudi capital following an official launch event in Jeddah for a new Trump Tower, Eric Trump suggested that the Gulf’s no-limits mentality is something that the incoming US president will adopt.

“It’s a different mindset in the Gulf, and that mindset is going to return to America, believe me, in the next four years under my father. But that mindset really, it’s uplifting. It’s almost empowering. It makes you want to come over here and do something really great. And it kind of makes you want to say no to those other countries where it’s just impossible to navigate the political system. They’re just too cumbersome. They’re too lethargic.”

Trump went on to explain that Gulf countries actively encourage developers to realize their grand visions, offering not just permits but also support for larger, more ambitious projects.

“They tell you, ‘not only are we going to give you the permits, but we actually want you to make your project bigger. We want you to make it even more iconic. We want you to make it more luxurious. We want you to attract the greatest restaurants and the greatest amenities. Sky’s the limit.’ And that's a beautiful thing for a developer,” he said.

He also revealed that the Trump Organization is planning additional projects in Riyadh, though he did not disclose further details.

The Trump Organization has lent its branding to several properties across the Gulf region, including a hotel and golf club in Oman, a golf club and tower in Dubai, and most recently, the Jeddah hotel. Trump Tower Jeddah is being developed in partnership with Saudi developer Dar Global, with the two companies having previously collaborated on projects in Oman and Dubai.

Praising Saudi Arabia’s safety and political stability, Trump said: “Obviously, the people in this country love us, love our company, love our brand, love what we stand for. We have so much unbelievable support in this amazing country.”

Ziad El Chaar, CEO of Dar Global, told Arab News that the Trump brand is synonymous with success. “The Trump name is a global brand that people attach to it always a very big sense of success,” he said.

“You can see the projects of Trump; they always feature the best material, the best design, and are really created for a great living experience and customer experience.”

Eric Trump’s visit to the Kingdom came after attending a cryptocurrency conference in Abu Dhabi earlier in the week. The Trump family has ties to a new cryptocurrency called World Liberty Financial, and Donald Trump has pledged to launch a strategic national crypto stockpile during his second term.

Bitcoin’s value surged following Trump's election win in November, and this week it surpassed the $100,000 mark for the first time.


Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks
Updated 13 min 57 sec ago
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Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

RIYADH: Thirteen banks in Uzbekistan have secured a combined $566 million in financing through a key initiative by the International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group.

The funding aims to foster job creation, drive economic development, and empower local communities, according to a report by the Saudi Press Agency.

ITFC is committed to using these funds to support the private sector’s import and pre-export requirements, with a particular focus on small and medium-sized enterprises, which are vital to the country's economic growth and resilience.

This initiative aligns with the ITFC's broader mission to provide integrated trade solutions to member countries of the Islamic Development Bank. The institution, which currently has 57 member states, is primarily funded by Saudi Arabia, the largest shareholder with a 22.5 percent stake in the corporation.

The funds will specifically target SMEs, which are globally recognized as key drivers of economic growth. The ITFC has already provided over $69 billion in financing to the member countries of the Organization of Islamic Cooperation, solidifying its position as a leading provider of trade solutions within the OIC community.

In addition to financial support, ITFC also focuses on improving access to trade finance and offering technical assistance programs. These efforts equip member-state entities with the tools they need to compete successfully in the global marketplace.


Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099
Updated 12 December 2024
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Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the second consecutive day on Thursday as it shed 49.86 points or 0.41 percent to close at 12,099.33. 

The total trading turnover of the benchmark index was SR4.77 billion ($1.27 billion), with 101 of the listed stocks advancing while 123 declined. 

The Kingdom’s parallel market Nomu also slipped by 0.57 percent to 31,100.89, while the MSCI Tadawul Index shed 7.37 points to close at 1,519.01. 

Sumou Real Estate Co. was the best-performing stock of the day. The company’s share price soared by 9.98 percent to SR44.65. 

Zamil Industrial Investment Co. was another top gainer, as the firm’s share price increased by 6.62 percent to SR33.80.

Meanwhile, the share price of Al-Baha Investment and Development Co. increased by 6.45 percent to SR0.33, and Saudia Dairy and Foodstuff Co. also advanced by 5.88 percent to SR360.

Conversely, Makkah Construction and Development Co.’s share price slipped by 3.04 percent to SR114.80. 

The best performer on the parallel market was Riyadh Steel Co., as its share price increased by 17.37 percent to SR2.50. 

Other top performers on Nomu were Dar Almarkabah for Renting Cars Co. whose share prices increased by 12.90 percent to SR70 while Watani Iron Steel Co.’s share prices grew by 12.20 percent to SR3.03.

On the announcements front, Almasane Alkobra Mining Co. revealed that it received a license from the Ministry of Industry and Mineral Resources to explore chromium, manganese, copper, and nickel in the Al-Baha region. 

In a statement to Tadawul, the mining firm said the license is valid until Dec. 10, 2029. 

The company added that the timing of any potential development of this license will become clear after the completion of exploration work and studies within the legal period. 

AMAK’s share price, however, slipped by 2.49 percent to SR70.40. 


Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD
Updated 12 December 2024
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Saudi Green Building Forum achieves permanent observer status with UNCCD

Saudi Green Building Forum achieves permanent observer status with UNCCD

RIYADH: The Saudi Green Building Forum SGBF has been granted permanent observer status by the United Nations Convention to Combat Desertification.

This recognition underscores the Forum’s substantial contributions to advancing sustainable building practices and the Kingdom’s leadership in global environmental efforts.

The decision follows the forum’s prior pending status, which was resolved with the announcement of the final decision at COP16, held in Riyadh.

“This process takes months leading up to COP, during which the organization must demonstrate its engagement with clear justifications, specific goals, and evidence of its work within the community,” Faisal Al-Fadl, secretary-general of SGBF, told Arab News.

The SGBF’s involvement aligns with the provisions outlined in the UNCCD’s internal regulations, specifically concerning observer status, as defined in Article 22 and the COP rules, according to a press release.

SGBF was among the 473 organizations officially accredited during COP16, reflecting the international collaboration and commitment to combating desertification showcased at the conference.

This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management.

Al-Fadl explained that under the UNCCD’s processes, rules, and regulations — agreed upon by its member states — any organization seeking observer status must participate in the COP.

The COP, hosted by the member state, is responsible for deciding whether to approve or deny the request for observer status.

“We set up a pavilion dedicated to the event, where each day highlighted a specific sustainable development goal. At SGBF, we actively promote SDGs as part of our consultative status with the United Nations,” Al-Fadl said.

He continued: “Green building is all about renewable energy, clean water, eco-friendly materials, and green infrastructure that supports the human experience. This concept is applied not just to buildings, but to neighborhoods and cities.”

Al-Fadl emphasized that SGBF’s work closely aligns with the SDGs, which encompass social, environmental, and economic sustainability. This is also in harmony with Saudi Vision 2030, which serves as the foundation for the Kingdom’s national SDGs.

“We capitalized on our accreditation, bringing more than 100 delegates and speakers, including high-level representatives, youth, and women. We are incredibly proud of this opportunity to engage on such a meaningful platform,” Al-Fadl said.

He added: “This has also provided an opportunity for many consultants, who might not have had the chance otherwise, to participate. Our accreditation is especially significant for the nonprofit and non-governmental sector, enabling us to engage with civil society, whether private entrepreneurs or young individuals.”

Al-Fadl further highlighted the chance to showcase the Forum’s partnerships with various entities, including government organizations. “For example, we signed agreements with the Ministry of Environment and nonprofit organizations, as well as achieving accreditation across Gulf states,” he noted.

The UNCCD also extended its accreditation to other organizations, including the Environment and Desertification Association and the Weather and Climate Association, after a thorough evaluation of their submitted documents.

Dedicated to combating land desertification, the UNCCD fosters partnerships between developed and developing nations, focusing on technology and knowledge-sharing for effective land management.

With 195 member states, the UNCCD aims to improve living conditions, enhance land productivity, and mitigate the impacts of drought while promoting public engagement in combating desertification and advancing sustainable development.


Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation
Updated 46 min 10 sec ago
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Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

Saudi Arabia to deliver financially streamlined World Cup 2034, with soaring revenues: FIFA evaluation

RIYADH: Saudi Arabia is set to deliver a FIFA World Cup in 2034 that saves $450 million on costs but surpasses revenue trends, according to a report from the world football governing body.

The bid evaluation document projects money from ticket and hospitality will surpass baseline projections by 32 percent, or $240 million.

FIFA evaluated organizing costs using figures from previous World Cups, adjusted for the expanded 104-match format, a 14-stadium concept, inflation, and local economic conditions. 

While excluding expenses like prize money and team participation costs, FIFA highlighted Saudi Arabia’s competitive pricing, with key cost areas such as technical services and security forecast to be $133 million and $58.9 million below baseline, respectively.

By comparison, Qatar spent an estimated $220 billion to host the 2022 World Cup, the most expensive in history. Much of that investment went toward infrastructure, including stadiums, roads, and public transport.

Hosting major sporting events such as the FIFA World Cup are aligned with Saudi Arabia’s economic diversification efforts which aims to reduce the Kingdom’s decades-long dependence on crude revenues. 

In November, experts told Arab News that Saudi Arabia could expect a gross domestic product boost of between $9 billion and $14 billion from the event, as well as the creation of 1.5 million new jobs, and the construction of 230,000 hotel rooms developed across five host cities.

For Saudi Arabia, key cost drivers include $378.4 million for television operations, $273.8 million for workforce management, $124 million for transport, $111.1 million for team services, and $99.5 million for IT and telecommunications, according to the bid report. 

“Virtually all cost drivers are currently forecast as being below the baseline, with some cost items, such as staffing costs, event transport, team accommodation, and competition management generally expected to remain in line with baseline levels,” FIFA noted. 

The governing body expects food and beverage revenues to align with baseline figures, while online and licensing revenue streams are forecast to outperform by $7 million. 

The Kingdom’s time zone, which allows viewers across Asia, Europe, and Africa to watch matches during prime hours, is expected to drive a 10 percent increase in global live television audiences compared to the 2026 edition. 

Sustainability at the core 

Saudi Arabia has pledged to host the 2034 tournament with sustainability at the forefront, incorporating renewable energy and achieving LEED Gold certification for buildings and operations. These green initiatives are expected to reduce energy consumption significantly compared to traditional standards. 

The Kingdom also plans to repurpose World Cup stadiums as multi-purpose entertainment venues and homes for Saudi Pro League teams, ensuring long-term benefits for football and local communities. 

Infrastructure development 

The World Cup bid underscores Saudi Arabia’s commitment to becoming a global tourism hub. 

Each proposed host city has undergone significant development under Vision 2030, with heavy investments in tourism infrastructure to support major events across sports, arts, culture, and business. 

Events like FIFA World Cup 2034 and Expo 2030 are expected to strengthen Saudi Arabia’s non-oil economy, providing business and lending opportunities for financial institutions, according to a November report by Moody’s.