Saudi Arabia exploring lithium investment opportunities in Chile: Alkhorayef

Saudi Arabia exploring lithium investment opportunities in Chile: Alkhorayef
Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef speaking to Reuters in Chile. Reuters/Pablo Sanhueza
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Updated 30 July 2024
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Saudi Arabia exploring lithium investment opportunities in Chile: Alkhorayef

Saudi Arabia exploring lithium investment opportunities in Chile: Alkhorayef
  • Kingdom working to secure access to lithium and other minerals for battery and electric vehicle manufacturing
  • Saudi minister of industry and mineral resources met his Chilean counterpart to discuss minerals supply chain, water issues and lithium 

RIYADH: Saudi Arabia’s Manara Minerals Investment Co., backed by the Kingdom’s sovereign wealth fund, is exploring opportunities to invest in lithium production in Chile, according to a top minister. 

While on an official visit to the South American country, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef told Reuters that the Kingdom is “analyzing different options” for investment in the world’s largest producer of lithium. 

The minister also noted that Manara is interested in Chile due to its position as the world’s largest producer of battery metal. 

Saudi Arabia is working to secure access to lithium and other minerals as it aims to become a hub for battery and electric vehicle manufacturing. 

Established in 2023 by the Public Investment Fund and Saudi Arabian Mining Co., Manara Minerals is part of the Kingdom’s broader strategy to diversify its economy and utilize its mineral resources. 

“I think we can see something happening with Manara on the Chilean assets here. It makes a lot of sense,” said Alkhorayef. 

The minister noted seeing “great commitment” from the Chilean government to help secure investment. 

He emphasized that securing a reliable supply of lithium is crucial for Saudi Arabia to produce batteries for electric vehicles domestically. 

“We have a leadership that’s very ambitious. We are serious to source it now ... as soon as possible,” added Alkhorayef. 

During his visit, Alkhorayef also met with his Chilean counterpart Aurora Williams to discuss the minerals supply chain, water issues, and lithium. 

Reuters reported that the Saudi minister proposed creating a joint group between the two governments to explore collaboration in the mining industry.

The Kingdom’s trade relations with Chile are robust, with non-oil exports to the Latin American nation totaling SR700 million ($186.59 million) in 2023, while imports amounted to SR500 million. 

Alkhorayef’s visit is part of Saudi Arabia’s broader efforts to elevate the mining sector as a key component of its economy, with an estimated $2.5 trillion in untapped mineral resources. 

Prior to his visit to Chile, the minister toured Vale’s Carajas mines in Brazil to learn about advanced mineral extraction technologies, according to the Saudi Press Agency. 

He also met with Eduardo Bartolomeo, CEO of Vale Mining Co., to discuss investment opportunities for Brazilian companies in Saudi Arabia and expansion plans for Brazilian investors in the Kingdom. 


Hyatt unveils 2 new luxury hotels in Saudi Arabia’s Jaumur, strengthening partnership with NEOM

Hyatt unveils 2 new luxury hotels in Saudi Arabia’s Jaumur, strengthening partnership with NEOM
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Hyatt unveils 2 new luxury hotels in Saudi Arabia’s Jaumur, strengthening partnership with NEOM

Hyatt unveils 2 new luxury hotels in Saudi Arabia’s Jaumur, strengthening partnership with NEOM

DUBAI: Hotelier Hyatt has revealed plans to open two new establishments in Jaumur, a coastal destination in Saudi Arabia’s Magna region, located along the Gulf of Aqaba.

According to a statement, this move marks a milestone for the firm, expanding its presence in the Kingdom and deepening its collaboration with NEOM.

The two hotels, set to open in 2027, will offer 350 rooms and suites, each designed to provide distinct, high-end experiences for guests. 

Steven Ansell, managing director for the Middle East and Africa at Hyatt, emphasized the importance of this development during an interview with Arab News at the Future Hospitality Summit in Dubai.

He also revealed more ambitions for the firm, saying: “We aim to triple our hotel portfolio in Saudi. We are expecting to develop around 3000 rooms, (with) new opening hotels, in the future. So we have already announced some hotels, and there are plenty of other things happening in the background.”

Ansell emphasized that it’s an exciting step forward as they aim to triple their hotel portfolio in Saudi Arabia, with plans to develop around 3,000 rooms nationwide.

The managing director added that the hotel chain would be “meeting with developers and future potential owners,” highlighting that Hyatt’s regional expansion has been very ambitious over the last several years.

The Park Hyatt Jaumur, located at the heart of the marina community, will feature 125 rooms and is set while the Andaz Jaumur Marina, will offer 225.

Jaumur, envisioned as a hub for coastal luxury, offers a blend of land and sea experiences and will be home to a 300-berth marina, while visitors will also have access to a deep-sea diving research center.

Ansell also emphasized that these hotels align with Saudi Arabia’s Vision 2030, which aims to attract 150 million visitors by the end of the decade.

In a statement, Javier Aguila, group president for Europe, Middle East, and Africa at Hyatt, shared his enthusiasm, saying: “The Kingdom of Saudi Arabia is a key market in Hyatt’s growth strategy in the Middle East, and these upcoming properties in NEOM reflect our dedication to expanding our brand footprint.” 

Aguila added that the hotels will play a critical role in enhancing the region’s tourism landscape as part of NEOM’s sustainable tourism goals.

In keeping with Hyatt’s commitment to innovation, Ansell told Arab News about the integration of artificial intelligence into their operations.

“AI will contribute to a lot of our focus on customer service and how we operate our hotels. So I think there are going to be a lot of changes in the future and it’s something that we embrace but embrace with recognition, that this will take time as it evolves and will need to be treated very, very carefully,” he said.


Saudi Arabia sees 23.4% rise in FDI: GASTAT 

Saudi Arabia sees 23.4% rise in FDI: GASTAT 
Updated 30 September 2024
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Saudi Arabia sees 23.4% rise in FDI: GASTAT 

Saudi Arabia sees 23.4% rise in FDI: GASTAT 

RIYADH: Saudi Arabia experienced a 23.4 percent increase in foreign direct investment in the second quarter of this year compared to the previous three months, according to official data. 

The latest figures from the General Authority for Statistics revealed that net FDI flow reached SR11.7 billion ($3.12 billion) in the second quarter of 2024, up from SR9.5 billion in the first three months of the year. 

Attracting foreign investment is a key objective of Vision 2030, and Saudi Arabia aims to attract $100 billion in FDI by the end of the decade. 

This growth underscores the Kingdom’s continued appeal to international investors and reflects ongoing efforts to enhance its investment environment and foster economic development. 

GASTAT noted that the net inflow of FDI in the second quarter declined by 7.5 percent compared to the same period in 2023, when inflows amounted to SR12.6 billion.

However, the volume of inflows grew by 14.5 percent to SR19.4 billion compared to the previous quarter. 

The report indicated that outflows amounted to SR7.8 billion, marking a year-on-year increase of 14.1 percent and a quarter-on-quarter rise of 3.4 percent. 

In August, a Standard Chartered report highlighted that Saudi Arabia’s updated investment law and recent reforms could help the country achieve its goal of attracting $24 billion in FDI this year. 

The Kingdom approved an updated investment law last month to enhance FDI flows, with the Ministry of Investment stating that the law would boost transparency and simplify the investment process.

The law also promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers. 

Standard Chartered emphasized that Saudi Arabia’s future economic growth will be driven by increased FDI inflows, along with investments in public capital expenditure and the private sector. 

In August, Saudi Arabia’s Assistant Minister of Investment, Ibrahim Al-Mubarak, expressed the Kingdom’s eagerness to attract more FDI from Asia and Europe as its economic diversification efforts progress steadily. 

In July, a report released by the Saudi government revealed that the Kingdom’s FDI stock reached SR817.7 billion in the first quarter of 2024, representing a rise of 6.1 percent rise compared to the same period last year. 


Oil Updates – prices climb on fears of Middle East conflict escalation

Oil Updates – prices climb on fears of Middle East conflict escalation
Updated 30 September 2024
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Oil Updates – prices climb on fears of Middle East conflict escalation

Oil Updates – prices climb on fears of Middle East conflict escalation

SINGAPORE: Oil prices rose for a second consecutive session on Monday, with concerns escalating over potential supply disruptions in the Middle East after Israel stepped up attacks on Palestianian militant group Hamas and Iranian-backed forces in the region.

Brent crude futures for November delivery gained $1.12, up 1.56 percent to $73.10 a barrel as of 9:11 a.m. Saudi time. That contract expires on Monday, and the more-active contract for December delivery climbed $1.04, or 1.45 percent, to $72.58.

US West Texas Intermediate crude futures advanced 93 cents, or 1.36 percent, to $69.11 a barrel.

Prices also rose last Friday, though for the week, Brent fell around 3 percent and WTI fell by around 5 percent on worries about demand in China, despite fiscal stimulus measures in the world’s second-biggest economy and top oil importer.

On Monday, prices were supported by the possibility that a widening Middle East conflict may directly involve Iran, a key producer and member of OPEC, after Israel escalated attacks on the Hezbollah and Houthi militant groups that Iran backs.

While excessive supplies are a key concern for oil markets, investors broadly fear a region-wide conflict in the Middle East could affect supplies from key producing areas, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Hamas said an Israeli strike killed its leader in Lebanon on Monday, while another Palestinian militant group said three of its leaders were killed in a strike on Beirut.

Israel on Sunday launched airstrikes against the Houthi militia in Yemen and dozens of Hezbollah targets throughout Lebanon after earlier killing the Hezbollah leader.

In the context of Israel’s decisive strike on Hezbollah, oil prices will continue to be driven by supply and demand dynamics, said Tony Sycamore, market analyst at IG.

Given the upcoming end of OPEC+’s voluntary supply cuts on Dec. 1, WTI may test its 2021 lows in the $61 to $62 a barrel range, he said.

“Additionally, despite China’s recent dovish shift, it’s unclear if this will translate into higher fuel demand, considering China’s advancements in electrifying and decarbonizing its transportation sector,” Sycamore said.

Data on Monday was not encouraging for demand, showing China’s manufacturing activity shrank for a fifth straight month and the services sector slowed sharply in September.

Later on Monday, markets will be waiting to hear from Federal Reserve Chair Jerome Powell for clues on the central bank’s pace of monetary easing. Seven other Fed policymakers are also due to speak this week, ANZ analysts said in a note.

With the Fed and other major central banks embarking on policy easing, some economic recovery could just be around the corner, said Phillip Nova’s Sachdeva.

“How well demand responds to easing rates, and how much Chinese demand revives after the major stimulus injected last week, will eventually shape oil market dynamics going forward,” she said.


Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT

Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT
Updated 30 September 2024
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Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT

Saudi unemployment rate falls to 3.3% in Q2 as job market strengthens: GASTAT

RIYADH: Saudi Arabia’s overall unemployment rate fell to 3.3 percent in the second quarter of 2024, a 0.2 percentage point drop compared to the previous quarter, official data showed. 

According to data from the General Authority for Statistics, the unemployment rate also declined by 0.8 percentage points compared to the same period last year. 

The jobless rate among Saudi nationals fell to 7.1 percent, a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.  

The decrease aligns with the Kingdom’s Vision 2030, which aims to enhance job opportunities for Saudis and stimulate economic expansion. The improvement in labor market indicators is expected to support long-term socio-economic development. 

In June, Saudi Arabia launched Jadarat, a unified employment platform designed to connect job seekers with positions in the public and private sectors, part of broader efforts to tackle unemployment. 

Labor force participation among Saudis slipped by 0.6 percentage points in the second quarter to 50.8 percent, though it edged up 0.1 percentage points from the same period a year earlier. 

“The employment-to-population ratio for Saudis declined by 0.3 percentage points compared to the first quarter of 2024, standing at 47.2 percent, while it increased by 0.8 percentage points annually compared to the second quarter of 2023,” stated GASTAT.  

Saudi female unemployment saw a sharp quarterly decline of 1.4 percentage points, landing at 12.8 percent. The employment-to-population ratio for women slipped by 0.1 percentage points to 30.8 percent.  

For men, the employment-to-population ratio remained steady at 63.6 percent, while labor force participation edged down by 0.1 percentage points to 66.3 percent. 

The GASTAT survey revealed that 95.5 percent of jobless Saudis are willing to take up roles in the private sector, with 81.9 percent of unemployed Saudi women and 93.8 percent of men open to working eight or more hours a day. 

The decline in unemployment underscores Saudi Arabia's progress in reshaping its labor market. As the Kingdom continues to focus on economic diversification, these positive trends signal the potential for stronger workforce participation and broader opportunities for its citizens moving forward.


ACWA Power, Badeel, and SAPCO reach $3.2bn financial close on 3 solar PV projects  

ACWA Power, Badeel, and SAPCO reach $3.2bn financial close on 3 solar PV projects  
Updated 29 September 2024
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ACWA Power, Badeel, and SAPCO reach $3.2bn financial close on 3 solar PV projects  

ACWA Power, Badeel, and SAPCO reach $3.2bn financial close on 3 solar PV projects  

RIYADH: Saudi Arabia’s upcoming solar photovoltaic projects — Haden, Muwayh, and Al Khushaybi — have reached financial close, securing a total investment of $3.2 billion.  

Spearheading these initiatives is the Kingdom’s energy transition leader, ACWA Power, along with Public Investment Fund-owned Water and Electricity Holding Co., also known as Badeel, and Saudi Aramco Power Co., an Aramco subsidiary.  

The projects will deliver a combined solar capacity of 5.5 gigawatts.  

These initiatives are part of Saudi Arabia’s National Renewable Energy Program, which is overseen by the Ministry of Energy and is reflected in PIF’s commitment to develop 70 percent of the country’s renewable energy target capacity by 2030.  

“Financial closure of the projects signals our dedication and commitment to providing clean, consistent and cost-effective energy. We are grateful to our stakeholders and our financial partners for their invaluable support in enabling us to make this vision a reality,” said Marco Arcelli, CEO of ACWA Power.  

The Haden and Muwayh plants, each with a capacity of 2 GW, are located in the Makkah region, while the Al Khushaybi plant, with a capacity of 1.5 GW, is situated in the Qassim region.  

The facilities will be jointly owned by Badeel, ACWA Power, and SAPCO, with the Saudi Power Procurement Co. serving as the procurer and off-taker for the projects.  

The $2.5 billion senior debt financing for these projects was secured through a consortium of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, and Riyad Bank, as well as the Saudi National Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC. 

“Reaching the financial close of these solar PV projects represents a major milestone in our journey to support Saudi Arabia’s rapidly growing renewable energy sector and contribute to PIF’s commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030,” Sultan Al-Nabulsi, acting CEO at Badeel, said.  

This financial close follows significant investments by PIF in the renewable energy value chain. In July, PIF announced three new joint ventures to boost local production of wind turbine and solar PV components, with the intention of leveraging the global energy transition and supporting efforts to position Saudi Arabia as a manufacturing hub for the renewables sector.  

PIF and its partners are currently developing several projects with a total capacity of 13.6 GW, representing investments of over $9 billion.  

These projects include Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2 and are intended to support local private sector development through increased domestic supply chain participation.  

“We are pleased to extend our partnership with ACWA Power and Badeel, providing further impetus for the Kingdom’s rapidly growing renewables sector. Together, we are taking our renewables portfolio to the next level, advancing the energy transition to meet the rising demand for power with fewer emissions,” the Senior VP of New Energies at Saudi Aramco, Waleed Al-Saif, said.  

With the addition of these three new projects, ACWA Power’s solar portfolio in Saudi Arabia now includes 14 projects, totaling more than 17.8 GW of combined PV capacity. This brings ACWA Power’s total renewable capacity portfolio to 35 GW.