Saudi developer Al-Othaim Investment launches new cruise ship in Hail 

Saudi developer Al-Othaim Investment launches new cruise ship in Hail 
The ship will also have office spaces alongside recreational activities. Screenshot
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Updated 17 June 2024
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Saudi developer Al-Othaim Investment launches new cruise ship in Hail 

Saudi developer Al-Othaim Investment launches new cruise ship in Hail 

RIYADH: A five-star hotel is part of a new cruise ship set for Saudi Arabia’s Hail region, local real estate developer Al-Othaim Investment has announced.

The new project, also referred to as Al-Othaim Cruise Hail, is built on a total area of ​​77,000 sq. m. and includes a shopping mall, 276 residential units, 16 luxurious palaces, and multiple entertainment spaces. 

Moreover, the planned hotel on the ship contains 120 rooms and 156 apartments, as well as office spaces on six floors covering an area of over 9,000 sq. m. 

The company said in a post on X that this move falls in line with its expansion strategy, which aims to launch several projects in various regions of the Kingdom.     

“Our staff of 4,000 young Saudi men and women serve the passengers the recreational services,” the company said in its post.  

 

 

The new development is also projected to contribute significantly to sustainable development, achieving the nation’s Vision 2030 goals and enhancing Saudi Arabia’s position as a leading global investment center.  

Additionally, the planned cruise ship aligns well with the ongoing encouragement of Prince Abdulaziz bin Saad, the governor of the Hail region, to support the growth and development process in the area and to enhance its position as a leading investment destination.   

The project also occurs alongside the continuous support for the private sector from the Saudi Minister of Municipal and Rural Affairs and Housing, Majid bin Abdullah Al-Hogail, and his dedication to creating an attractive investment environment throughout the Kingdom’s various regions and cities.

In May, Saudi Tourism Investment Co.’s CEO revealed that the Kingdom’s northwestern city of Hail would home to the firm’s fifth destination development.    

Speaking to Arab News on the sidelines of the Future Hospitality Summit at the time, Fahad bin Mushayt announced the plan, which comes after the activation of the company’s projects in Al-Baha, Yanbu, Al-Ahsa, and Taif.  

Mushayt noted that the initiatives were launched within a year of the unveiling of the Public Investment Fund-owned firm Asfar.

The CEO also highlighted at the time that the company is mandated to invest in new projects and develop attractive travel destinations, incorporating hospitality, tourist attractions, retail, and food and beverage offerings in cities across Saudi Arabia.

Bin Mushayt said at the time: “In almost one year, Asfar is already playing in four destinations, with Hail coming soon, so I can reveal that.” 


Saudi airline flynas to buy 160 Airbus planes

Saudi airline flynas to buy 160 Airbus planes
Updated 25 July 2024
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Saudi airline flynas to buy 160 Airbus planes

Saudi airline flynas to buy 160 Airbus planes
  • Deal includes order of 30 wide-body A330neo aircraft and 130 narrow-body A320 family aircraft
  • Head of flynas, Bander Al-Mohanna, said agreement ‘reinforces our determination to establish flynas as a leading global low-cost carrier’

RIYADH: Saudi low-cost airline flynas has signed a deal to purchase 160 Airbus aircraft, doubling the volume of its orders to 280 planes. 

The “landmark agreement,” signed at the UK’s Farnborough International Airshow, includes an order of 30 wide-body A330neo aircraft and 130 narrow-body A320 family aircraft, the carrier said in a statement.

This falls in line with the Saudi Vision 2030 aimed at transforming the aviation sector and supporting flynas’ ambitious expansion under the slogan “We connect the world to the Kingdom.” It also cements the carrier’s status as one of the top four low-cost airlines worldwide.

The deal also aligns well with the Kingdom’s aviation goals, including tripling annual passengers to 330 million, expanding connectivity to over 250 destinations, and boosting air freight capacity to 4.5 million tons of cargo per annum by 2030.

“I congratulate flynas on this significant agreement, which reflects the rapid development and transformation of Saudi Arabia’s aviation sector under Vision 2030,” President of the General Authority of Civil Aviation Abdulaziz Al-Duailej said. 

“This deal is pivotal for achieving the National Civil Aviation Strategy’s goal to connect the Kingdom with over 250 international destinations and increase passenger traffic to 330 million annually by 2030,” he added, also describing the growth and expansion of flynas as “truly remarkable.”

Bander Al-Mohanna, CEO and managing director of flynas, said: “This agreement to purchase 160 Airbus aircraft reinforces our determination to establish flynas as a leading global low-cost carrier.”

He added that this is his firm’s first order for the wide-body A330neo with Airbus, with deliveries starting in 2027.

“By doubling our order volume to 280 Airbus aircraft, we ensure sustainable growth across our network of regional and international routes, spanning short, medium, and long-haul flights,” said the CEO, explaining that that this will enable the carrier to explore new long-haul markets and offer more seat capacity, with diverse and innovative products to their passengers.

Airbus CEO of Commercial Aircraft Christian Scherer described thee deal as “a significant milestone” for both A320neo and A330-900 aircraft.

“The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality,” Scherer said. 

“Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort,” he added. “We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter.”

Earlier this month, flynas received its 53rd A320neo aircraft out of an order of 120 from Airbus as part of its strategic expansion plan. 

The next-generation model airplane touched down at King Khalid International Airport in Riyadh at the time, further consolidating the company’s position as the leading low-cost airline in the Middle East and one of the top four low-cost airlines globally, according to UK-based consultancy firm Skytrax.


New contractors database announced to help deliver Saudi Vision 2030 projects

New contractors database announced to help deliver Saudi Vision 2030 projects
Updated 25 July 2024
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New contractors database announced to help deliver Saudi Vision 2030 projects

New contractors database announced to help deliver Saudi Vision 2030 projects
  • Initiative seeks to provide opportunities for contractors to implement projects in their specializations to raise their quality
  • Kingdom’s construction market has become a leader in the Middle East and North Africa

RIYADH: A database rating contractors in the Saudi construction industry is part of a new national strategy designed to help the Kingdom deliver its SR1.2 trillion ($319 billion) Vision 2030 projects.

The new initiative, launched by the Saudi Contractors Authority, seeks to provide opportunities for contractors to implement projects in their specializations to raise their quality. 

This falls in line with the authority’s mission to organize the industry by setting and executing high-quality organizational standards, encouraging innovation, developing skills, improving communication in the industry and achieving economic sustainability.

During a speech at a ceremony reviewing the achievements of the SCA over the past three years, the authority’s chairman said he wanted to prepare and equip a strong contracting sector that will be an executive arm for the Kingdom’s Vision 2030 projects.

Al-Abdulqader explained that the authority raised the number of contractors during the past three years by 400 percent, bringing the registered number to more than 18,000, including 1,200 international contractors.

The SCA has also signed over 10 agreements and memorandums of understanding with major global contracting sectors, in addition to participating in more than 50 government committees. 

In 2023, the National Housing Co. and SCA signed an MoU during the Future Projects Forum in Riyadh to develop a platform aimed at enhancing cooperation, ensuring the development of both entities, and improving the sector’s efficiency. 

The SCA, a semi-governmental organization, addresses the challenges of the contracting sector and fosters a more attractive and efficient environment. 

It also led the contracting sector in 57 countries by winning the presidency of the Islamic Contractors Union and establishing the Kingdom as its headquarters. 

The Saudi contractor industry is thriving, driven by significant investments in diverse sectors and ambitious projects under the Vision 2030 initiative, creating numerous opportunities for local and international contractors. 

This comes as the Kingdom’s construction market has become a leader in the Middle East and North Africa, with an estimated value of $70.33 billion in 2024, projected to reach $91.36 billion by 2029, according to the US International Trade Administration.  

The sector is categorized into residential, commercial, and industrial, as well as infrastructure, transportation, and energy and utility construction, presenting a sizable market for contractors seeking opportunities. 


Closing Bell: Saudi main index ends the week in red

Closing Bell: Saudi main index ends the week in red
Updated 25 July 2024
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Closing Bell: Saudi main index ends the week in red

Closing Bell: Saudi main index ends the week in red
  • Total trading turnover of the benchmark index was $1.69 billion
  • Best-performing stock of the day was Retal Urban Development Co.

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 75 points, or 0.62 percent, to close at 12,026.21. 

The total trading turnover of the benchmark index was SR6.35 billion ($1.69 billion) as 54 stocks advanced, while 170 retreated.   

Similarly, the MSCI Tadawul Index decreased by 10.76 points, or 0.71 percent, to close at 1,502.13.

However, the Kingdom’s parallel market Nomu increased by 82.88 points or 0.31 percent, to close at 26,420.01. This comes as 28 stocks advanced while as many as 27 retreated.

The best-performing stock of the day was Retal Urban Development Co. The company’s share price surged by 7.10 percent to SR12.98.

Other top performers included Saudi Real Estate Co. and Electrical Industries Co., whose share prices soared by 4.94 percent and 4.53 percent, to stand at SR23.38 and SR6.92 respectively.

Tanmiah Food Co. and Al-Rajhi Co. for Cooperative Insurance also performed well.

The worst performer was Miahona Co., whose share price dropped by 9.60 percent to SR36.25.

Al Sagr Cooperative Insurance Co. as well as Saudi Manpower Solutions Co., did not perform well as their share prices dropped by 5.92 percent and 5.47 percent to stand at SR20.34 and SR10.02, respectively.

Profits of Zain Saudi Arabia fell to SR105 million, an 8 percent decrease during the second quarter of 2024, compared to profits of SR114 million during the same period last year, according to Al Ekhbariya.

The company attributed the decline to an increase in operating expenses by SR38 million, a rise in expected credit loss expenses by SR33 million, and an increase in financing costs by SR20 million.

The National Company for Glass Industries announced its interim financial results for the first six months of 2024, with revenues dipping by 13.1 percent to reach SR34.2 million. The company’s net profit, however, surged by 6.5 percent, reaching SR26.7 million.

It attributed the decrease to a lower production quantity, which resulted from line maintenance activities and installation of new machines to improve manufacturing quality.

Balady Poultry Co. also announced its preliminary financial results for the same period, with revenues amounting to SR449.6 million, marking a 30.4 percent surge compared to the previous year due to an increase in average daily production.

The company recorded an increase of SR71.9 million in net profit during the current half compared to SR40.3 million during the same half of the previous year, with an increase of 78.6 percent due to a rise in the average daily production.


NEOM hits milestone with completion of underground parking, light rail systems

NEOM hits milestone with completion of underground parking, light rail systems
Updated 25 July 2024
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NEOM hits milestone with completion of underground parking, light rail systems

NEOM hits milestone with completion of underground parking, light rail systems
  • The underground parking and light rail are key elements of NEOM’s advanced sustainable transportation plan
  • NEOM said this accomplishment supports its goal of building a city with zero carbon emissions

RIYADH: Saudi Arabia’s $500 billion megacity NEOM has completed the construction phases of its underground parking and light rail systems, marking a milestone in its ambitious zero-carbon initiative.

Assisted by 10 high-capacity rotary drilling rigs from Chinese construction manufacturing company XCMG Machinery, the world’s largest integrated development project completed three piles per day per drilling rig, according to a press release.

The underground parking and light rail are key elements of NEOM’s advanced sustainable transportation plan. This phase was accelerated by the efficiency of XCMG’s rotary drilling rigs, which handled deep foundation work despite challenging sandy geologies.

Led by the Public Investment Fund, the project will be a futuristic region in northwest Saudi Arabia powered entirely by renewable energy.

NEOM is home to The Line, Oxagon, Trojena, and Sindalah. It prioritizes people and nature, establishing a new model for sustainable living, working, and prospering.

The statement added that this phase was expedited due to the efficiency of XCMG’s rotary drilling rigs, which successfully managed deep foundation work even in difficult desert terrains.

The release noted that the XR600E is the largest-tonnage drilling rig deployed in the construction of NEOM city and the largest model exported from China.

Despite arriving a month later than other machinery, these rigs completed their tasks two weeks ahead of schedule, demonstrating reliability and superior performance in speed and efficiency.

In its statement, NEOM commented that this accomplishment supports its goal of building a city with zero carbon emissions and sustainable energy use.

Over 140,000 construction workers have been engaged on-site since its launch in 2017, and earlier in July it was announced the various projects underconstruction are set to receive cement worth SR104 million ($27.7 million) thanks to a partnership between Saudi Arabia’s Al Jouf Cement Co. and Italy’s Webuild SpA.

Other recent announcements from NEOM include a new marina and community on the Gulf of Aqaba called Jaumur.

The destination will be an exclusive residential community planned around a marina promenade for more than 6,000 residents, and will include 500 marina apartments and around 700 luxury villas.

Earlier this month, NEOM and American hospitality firm Equinox Hotels revealed plans to open a resort in the recently unveiled Magna development, on the coast of the Gulf of Aqaba.

The luxury destination will feature 12 locations along 120 kilometers of coastline, and will include 15 hotels, 1,600 rooms, and over 2,500 residences.


Mada card transactions surge 28% to reach $4.32bn in May

Mada card transactions surge 28% to reach $4.32bn in May
Updated 25 July 2024
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Mada card transactions surge 28% to reach $4.32bn in May

Mada card transactions surge 28% to reach $4.32bn in May
  • Number of transactions using Mada cards increased by 30% year-on-year, totaling SR91.87 million in May
  • E-commerce is expected to represent over 25% of retail sales in Saudi Arabia by 2035

RIYADH: E-commerce sales via Mada cards in Saudi Arabia surged by 28 percent annually to reach SR16.22 billion ($4.32 billion) in May.

Data from the Saudi Central Bank indicates that this included online shopping, in-app purchases, and e-wallet transactions, but did not include transactions using different credit cards.

The number of transactions using Mada cards increased by 30 percent year-on-year, totaling SR91.87 million in May 2024, up from 70.77 million the previous year. This shows that consumers are increasingly comfortable and reliant on digital payment methods.

SAMA’s Mada scheme aims to promote digital payments in the country, particularly in supporting e-commerce, point-of-sale, and ATM growth. Connected directly to the cardholder’s bank account, Mada enables real-time, secure, and reliable transactions for various purposes such as purchasing, cash withdrawals, and electronic payments.

This initiative is part of Vision 2030, which strives to develop Saudi Arabia's digital payment infrastructure to encourage a cashless economy, expand financial inclusion, and drive sector innovation. The electronic retail industry in Saudi Arabia is rapidly growing, driven by technological advancements, high mobile and internet penetration rates, and a young, tech-savvy population.

E-commerce is expected to represent over 25 percent of retail sales in Saudi Arabia by 2035, up from the current 10 percent. For the first quarter of this year, internet-based sales totaled SR44.42 billion, reflecting a 22 percent increase from the same period last year.

The total number of transactions for the quarter reached SR263.24 million, a 36 percent annual increase. Globally, e-commerce is projected to account for 41 percent of retail sales by 2027, a significant increase from 18 percent in 2017, according to Boston Consulting Group.

In the Middle East, Saudi Arabia and the UAE are at the forefront of digital retail markets, with substantial growth expected. McKinsey & Co. reported that the number of people shopping online weekly in these countries has doubled over the past two years.

Another report issued by Agility Logistics highlighted that Saudi Arabia’s online retail sector generated $10 billion in revenue in 2023, making it the 28th largest digital market globally, alongside the UAE.

It also predicted that the country’s revenue from this sector will grow at an annual rate of 13.5 percent through 2027, surpassing the global average of 11.2 percent. As smartphone and internet access become more widespread, e-commerce is set to grow further, solidifying its role as a crucial part of the retail landscape.

Saudi Arabia’s Vision 2030 is propelling the development of trade zones, boosting the country’s competitiveness with regional hubs, and positioning it among the top 10 emerging logistics markets globally, according to a February report by Agility Logistics. The country’s regulatory reforms have streamlined licensing for domestic delivery providers and increased investment in logistics infrastructure, such as warehousing, fulfillment, and trucking.

Advancements in digital payment systems, AI-driven personalization, and improved logistics have made online shopping more convenient and appealing. Additionally, the increasing number of mobile users has significantly influenced the shift toward virtual shopping, with mobile devices playing a central role in consumers’ shopping experiences by providing easy access to online stores and facilitating seamless transactions.