PIF-owned Riyadh Air signs global partnerships with Singapore Airlines and Air China

PIF-owned Riyadh Air signs global partnerships with Singapore Airlines and Air China
Under the MoU, the Public Investment Fund-owned carrier will work with Singapore Airlines to explore opportunities for interline connectivity on each other’s services. Supplied
Short Url
Updated 04 June 2024
Follow

PIF-owned Riyadh Air signs global partnerships with Singapore Airlines and Air China

PIF-owned Riyadh Air signs global partnerships with Singapore Airlines and Air China

RIYADH: Saudi Arabia’s newest airline, Riyadh Air, has signed agreements with two major carriers, Singapore Airlines and Air China, to establish strategic partnerships and expand its global network.

The agreement focuses on interline connectivity, codeshare arrangements, and potential collaboration in frequent flyer programs as well as cargo services, customer experience, and digital innovation. 

Riyadh Air CEO Tony Douglas and Singapore Airlines chief Goh Choon Phong signed the memorandums of understanding at the 80th International Air Transport Association Annual General Meeting in Dubai, held June 2 - 4. 

Riyadh Air, scheduled to launch commercial operations in 2025, will allow its passengers to access Singapore Airlines’ network spanning Southeast Asia and the South Pacific, introducing various new travel destinations to its customer base.  

The MoU with Air China, the country’s national flag carrier, reflects the strong relationship between Saudi Arabia and China. 

Signed on June 3 at the IATA AGM, the agreement aims to facilitate seamless travel between China and the Middle East by exploring cooperation in interline traffic and codeshare arrangements. 

This partnership aligns with China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030, according to the statement.

Douglas commented: “Our partnership with Air China, a leading global carrier with a vast network in key Chinese markets, complements Riyadh Air’s ambitious future plans.”

He added: “This MoU represents a significant step toward establishing a long-term partnership that will facilitate seamless travel for passengers between China and the Middle East and beyond. Together, we will solidify our positions as vital links, further strengthening the economic and cultural ties between our regions and aligning with both China’s Belt and Road Initiatives and Saudi Arabia’s Vision 2030.”

Both partnerships provide advantages, including travelers on both ends benefiting from enhanced connectivity and a wider range of trip options.

These partnerships highlight Riyadh Air’s commitment to becoming a world-leading carrier. The Saudi carrier aims to connect passengers to 100 destinations globally by 2030, prioritizing sustainability and setting a new standard for travel. 

As a key contributor to Vision 2030, Riyadh Air is booting economic diversification and job creation within Saudi Arabia.

“Our strategic partnership with Singapore Airlines unlocks significant benefits for our future guests as it grows our network in partnership with the world’s best airline,” said Douglas during the signing with Singapore Airlines. 

He added: “We see huge potential for strong connectivity in South East Asia and both Australia and New Zealand through the award-winning hub at Singapore Changi Airport while also providing opportunities for westbound passengers to connect across the Kingdom of Saudi Arabia and the Middle East region on Riyadh Air.” 

The CEO emphasized that this relationship is significant, highlighting a wide-ranging codeshare agreement that is expected to cover various areas such as digital and technology, loyalty, and cargo. 

Conversely, Singapore Airlines’ customers will have more options for travel to the Middle East through Riyadh Air’s network, stimulating passenger traffic between the Kingdom and Singapore.

Goh Choon Phong, CEO of Singapore Airlines, stated: “This win-win strategic partnership with Riyadh Air will enable us to offer even more options, enhanced connectivity, and greater benefits to our customers.”  

He added: “Together, we can facilitate the growth of passenger travel between Saudi Arabia and Singapore, and beyond, via our respective networks, supporting both tourism and business links.” 

Phong noted that the MoU will enhance customer experience and cargo services and harness digital tools and solutions, potentially bringing greater benefits to both airlines in the future. 

Saudi Arabia’s new carrier is set to unveil its special cabin crew uniform at the upcoming Paris Fashion Week from June 18-23.


Planning council reviews economic progress, Saudi Vision achievements

Planning council reviews economic progress, Saudi Vision achievements
Updated 12 September 2024
Follow

Planning council reviews economic progress, Saudi Vision achievements

Planning council reviews economic progress, Saudi Vision achievements

RIYADH: Saudi Arabia’s top council on economic affairs reviewed a number of reports during a virtual meeting held on Wednesday, the Saudi Press Agency reported.

The Council of Economic and Development Affairs studied a financial report for the second quarter of 2024 in a presentation by the Ministry of Economy and Planning.

The report included an analysis of the global economy, financial markets, and updates on the nation’s fiscal situation and its key indicators.

There was a 4.9% year-on-year growth in the non-oil sector during Q2 and a stabilization of general inflation rates at 1.5% in July.

The report indicated the strength of Saudi Arabia’s economy and the effectiveness of the measure taken to deal with global economic changes.

The ministry’s presentation also touched on future projects for the national economy and important reports from international and local bodies related to it.

The members also reviewed a presentation by the council’s own Strategic Management Office on the Saudi Vision report for Q1 of 2024. The report highlighted the key achievements of the Vision’s programs, strategic goals, and evaluation of their performance.

The Vision report noted that 2024 had begun with significant progress across all three pillars of the program, namely, a vibrant society, a thriving economy, and an ambitious nation.

The council also reviewed the Saudi Public Investment Fund’s annual report for 2023, traffic safety report for 2023, and a report on the social support subsidy system.


Saudi Aramco says will launch first branded gas station in Pakistan by year end

Saudi Aramco says will launch first branded gas station in Pakistan by year end
Updated 11 September 2024
Follow

Saudi Aramco says will launch first branded gas station in Pakistan by year end

Saudi Aramco says will launch first branded gas station in Pakistan by year end
  • Aramco completed acquisition of 40 percent stake in Gas & Oil Pakistan Ltd. in May
  • In April, Kingdom reaffirmed commitment to expedite Pakistan’s investment package of $5 billion

ISLAMABAD: Saudi oil giant Aramco said on Wednesday it would launch its first branded retail gas station in Pakistan by the end of the year, having already completed the acquisition of a 40 percent stake in Gas & Oil Pakistan Ltd. (GO) in May.

Aramco is a global integrated energy and chemicals company that produces approximately one in every eight barrels of the world’s oil supply. GO, one of Pakistan’s largest retail and storage companies, is involved in the procurement, storage, sale and marketing of petroleum products and lubricants.

“We are working to launch our first Aramco-branded gas station in Pakistan by the end of the year,” the Saudi oil company’s media department told Arab News in an emailed statement. “Will share more information when the site is commissioned.”

A Pakistan Board of Investment (BOI) official said Aramco’s acquisition of GO represented the oil giant’s first downstream retail investment in Pakistan and signaled the company’s growing retail presence in high-value markets. 

In March, Aramco also acquired a 100 percent equity stake in Esmax Distribución SpA, a leading diversified downstream fuels and lubricants retailer in Chile.

“Our global retail expansion is gaining pace and this acquisition [of GO] is an important next step on our journey,” Yasser Mufti, Aramco Executive Vice President of Products & Customers, said in a statement in May when the GO deal was completed. 

“Through our strategic partnership with GO, we look forward to supplying Aramco’s high-quality products and services to valued customers in Pakistan. We are also delighted to welcome another high-caliber addition to Aramco’s growing network of global partners, and look forward to combining our resources and expertise to unlock new opportunities and further grow the Aramco brand overseas.”

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian nation.

In February 2019, Pakistan and Saudi Arabia inked investment deals totaling $21 billion during a visit by Saudi Crown Prince Mohammed bin Salman to Islamabad. The agreements included about $10 billion for an Aramco oil refinery and $1 billion for a petrochemical complex at the strategic Gwadar Port in Balochistan.

Both countries have been working in recent months to increase bilateral trade and investment, and the Kingdom in April this year reaffirmed its commitment to expedite an investment package worth $5 billion for Pakistan.


Arabian Mills set final IPO price at $17.59 per share as CEO details growth vision

Arabian Mills set final IPO price at $17.59 per share as CEO details growth vision
Updated 11 September 2024
Follow

Arabian Mills set final IPO price at $17.59 per share as CEO details growth vision

Arabian Mills set final IPO price at $17.59 per share as CEO details growth vision

RIYADH: Saudi wheat flour producer Arabian Mills for Food Products Co. has set its final initial public offering price at SR66 ($17.59)  per share on the Tadawul main market.

During the book-building process, the company received orders worth SR134.1 billion from local and international investment institutions for its IPO of approximately 30 percent of its shares on the Saudi Stock Exchange.

The offering comprises 15,394,502 offer shares.

The firm announced that the institutional offering was oversubscribed by about 132 times, leading to the offer price being set at the maximum of the range.

This indicates the company’s market capitalization upon listing would be SR3.387 billion.

As a result, the current stockholders will receive the net proceeds of the amount raised through the IPO, which is SR1.02 billion.

From this public offering, the shareholders selling their shares, including Abdulaziz Alajlan Sons for Commercial and Real Estate Investments, Sulaiman Abdulaziz Al-Rajhi International Co., and the National Agricultural Development Co., will collectively receive SR1.02 million.

Arabian Mills announced on Sept. 1 that the price range for the offering was set between SR62 and SR66 and appointed HSBC Saudi Arabia as the financial adviser, bookrunner, and lead manager for the institutional subscription, as well as the underwriter for the public offering.

“We feel that the demand, for the investors, this is the right time for any kind of an IPO. The macro-environment has been very favorable in general,” Rohit Chugh, CEO of Arabian Mills, told Arab News.

He added: “Secondly, as a company, we have seen about close to three years of privatization, which has given us an adequate amount of time to sort of reflect on our performance, which has been fantastic.”

This period has also allowed potential investors to review the company’s financial performance over the last two and a half years, giving them a complete view and boosting their confidence in the firm’s stability and prospects.

“Also, we have very good, strategic plans in place as far as future plans go, and now that we are very clear in terms of our vision, so if you take the past and the future, then it’s a very exciting time as far as we are concerned,” Chugh said.

He added: “In reality, the shareholders continue to remain invested. They’re very positive about the company, and that’s why they are just selling 30 percent of their shareholding to the new investors.”

Specifically, Alajlan Brothers will retain 35 percent, AlRajhi will keep about 25 percent, and NADEC will hold 10 percent, making up the 70 percent of shares that will remain with the existing investors.

“The 30 percent of the shareholding is what they have offered at a lucrative IPO price to the new investors because they feel that, with the growth plans, which we have in place for the future, they would like to invite new investors, to come and pitch in and be a part of this whole success story as we move,” the CEO said in the interview.

Expansion plans

Rohit Chugh, CEO of Arabian Mills. Supplied

Chugh stated that the company is currently focused on expanding its presence in new regions within Saudi Arabia.

Although they are already well-established in the Kingdom’s central, northern, and southern parts, they recognize significant opportunities in other areas they haven’t yet explored.

“Therefore, we are planning to tap those growth opportunities in the western, eastern and the northern parts of the country by opening up distribution centers. West, for example, is where Makkah, Madinah is,” he said.

Chugh continued: “If you talk about the east, a lot of action is happening there as well. The Tabuk north side is where the NEOM projects will be coming up in the future, so we want to be a part of the growth journey, tapping all the right corners in Saudi Arabia.”

Currently, the company is not planning to expand into international markets because it is focused on selling wheat flour at subsidized prices through its arrangement with the General Food Security Authority. However, they are open to exploring export opportunities in the future.

Given their significant milling capacity and robust infrastructure in Saudi Arabia and the Gulf Cooperation Council, they are well-positioned to handle such opportunities if they arise.

For now, their focus remains on their existing operations, and any decision to expand internationally would depend on the conditions at that time.

IPO trajectory

The company’s CEO underlined that when setting the IPO price, the management aimed to ensure that investors would have the opportunity to make a profit.

When asked about his forecast or trajectory stock, Chugh said they could have set a higher price, but they chose a lower cost to attract new investors who would join them in the company’s growth journey.

The intention was to leave some potential for capital appreciation, as the management believes the firm’s true value is higher than the IPO price.

“That’s where we see that there should be a positive trajectory in the coming time. Obviously, this is subject to market conditions and global conditions,” he said.

Chugh added: “Nobody can predict that. But yes, we are optimistic as a company that we have priced it at the right pricing, like we got at SR66.”

He believes there are strong growth prospects in Saudi Arabia, driven by the country’s Vision 2030, which is set to have an impact well beyond its target year.

“Obviously, the next four, five years are critical for us, but we are even looking beyond that to the next 15, 20 years and seeing how we can take this organization to fulfill its maximum potential as part of the Vision 2030 and beyond,” Chugh said.


NMDC Energy soars 20% on debut after UAE’s largest IPO of 2024

NMDC Energy soars 20% on debut after UAE’s largest IPO of 2024
Updated 11 September 2024
Follow

NMDC Energy soars 20% on debut after UAE’s largest IPO of 2024

NMDC Energy soars 20% on debut after UAE’s largest IPO of 2024

RIYADH: The energy division of NMDC Group experienced a remarkable debut as its shares surged 20 percent after raising 3.22 billion dirhams ($877 million) in the UAE’s largest initial public offering of the year.

On the Abu Dhabi Securities Exchange, NMDC Energy’s shares, initially priced at 2.8 dirhams, opened at 3.35 dirhams, reflecting a significant 20 percent increase.

The company, which specializes in engineering, procurement, and construction services for both offshore and onshore clients, surpassed the previous largest IPO of the year, Alef Education Holding Plc’s $515 million offering.

The IPO for NMDC Energy involved the sale of 1.15 billion shares, which were 31.3 times oversubscribed, with total demand reaching 88 billion dirhams, according to a press release.

This strong debut underscores investor confidence in the company’s future and reinforces ADX as a pivotal platform for growth opportunities.

The successful IPO also aligns with ADX’s objective to expand market offerings and foster sustainable economic development in the UAE, according to the press release.

Abdulla Salem Al-Nuaimi, group CEO of ADX, said: “We are pleased to welcome NMDC Energy to ADX, furthering our vision of a dynamic and diversified capital market. With its expertise in the energy sector and innovative track record, NMDC Energy strengthens our market and offers investors access to the UAE’s sustainable growth.”  

He added: “The 88 billion dirhams demand for this listing reflects investor trust in ADX and underscores our role in portfolio diversification for our investors and issuer growth. As ADX’s sixth offering this year, it reinforces Abu Dhabi’s commitment to economic diversification, positioning the financial market as a key driver of sustainable development.” 

In the first half of 2024, UAE IPO proceeds reached $1.3 billion, a 67 percent drop from last year, with ADX contributing $515 million, or 14 percent, of the total Gulf Cooperation Council IPO funds. 

“Today marks a key milestone, not just for NMDC, but also for Abu Dhabi’s energy sector. Following a highly successful IPO, we are proud to list NMDC Energy on ADX and embark on an exciting new path forward,” said Ahmed Al-Dhaheri, CEO of NMDC Energy. 

Established in 1973, NMDC Energy — formerly National Petroleum Construction Co. — serves major clients like Abu Dhabi National Oil Co. and Saudi Arabian Oil Co. 


Closing Bell: Saudi benchmark index declines 1.84% amid mixed market movements

Closing Bell: Saudi benchmark index declines 1.84% amid mixed market movements
Updated 11 September 2024
Follow

Closing Bell: Saudi benchmark index declines 1.84% amid mixed market movements

Closing Bell: Saudi benchmark index declines 1.84% amid mixed market movements

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, shedding 220.2 points, or 1.84 percent, to close at 11,766.4.

The benchmark index saw a total trading turnover of SR6.15 billion ($1.66 billion), with 18 stocks advancing and 212 retreating.

In contrast, the Kingdom’s parallel market, Nomu, rose by 163.52 points, or 0.64 percent, ending the day at 25,764.1. In this market, 25 stocks advanced while 38 declined.

Additionally, the MSCI Tadawul Index fell by 28.96 points, or 1.94 percent, to close at 1,463.16.

The best-performing stock was Al-Baha Investment and Development Co., with its share price rising 5.56 percent to SR0.19.

Other notable performers included Middle East Specialized Cables Co., which saw a 5.24 percent increase in its share price, and Alistithmar AREIC Diversified REIT Fund, which rose by 5.12 percent.

On the downside, Saudi Fisheries Co. was the worst performer, with its share price falling by 10 percent to SR23.94.

ARTEX Industrial Investment Co. and Red Sea International Co. also saw their share prices slip by 5.13 percent and 5.12 percent, respectively, closing at SR16.6 and SR48.2.

On the parallel market, Leaf Global Environmental Services Co. stood out as the top performer, with its share price surging 18.82 percent to SR101.

Other notable gainers in the Nomu market included Qomel Co., which rose 8.2 percent, and Edarat Communication and Information Technology Co., which saw a 6.74 percent increase.

The worst performer on the parallel market was Meyar Co., with its share price dropping 4.47 percent to SR62. Fad International Co. and Alhasoob Co. also experienced declines of 4.37 percent and 3.97 percent, respectively.

SAMA Healthy Water Factory has announced its intention to launch an initial public offering on the parallel market, Nomu, offering 30 percent of its shares to the public.

Based in Saudi Arabia, SAMA Healthy Water Factory specializes in the production and distribution of bottled water. This IPO is a strategic step in the company’s broader plan to expand its footprint in Saudi Arabia’s burgeoning water and beverage sector, while also raising capital for future growth and operational initiatives.

The move is expected to boost SAMA’s visibility and open up new investment opportunities. It aligns with Vision 2030’s goals of fostering private sector growth, diversifying the economy, and creating new prospects for both local and international investors.

By listing on Nomu, SAMA Healthy Water Factory aims to solidify its market position and contribute to the Kingdom’s ambitious economic transformation.