Saudi PIF secures $15bn revolving credit facility 

Saudi PIF secures $15bn revolving credit facility 
PIF has launched 95 companies since 2017. File
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Updated 28 August 2024
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Saudi PIF secures $15bn revolving credit facility 

Saudi PIF secures $15bn revolving credit facility 
  • Deal was obtained from a diverse global syndicate of 23 financial institutions spanning Europe, the US, the Middle East and Asia
  • Credit facility has an initial term of three years, with the option to extend for a further two

RIYADH: Saudi Arabia’s sovereign wealth fund has secured a $15 billion revolving credit facility to support general corporate purposes, according to a statement. 

The Public Investment Fund said it was obtained from a diverse global syndicate of 23 financial institutions spanning Europe, the US, the Middle East, and Asia. 

The credit facility has an initial term of three years, with the option to extend for a further two.

A revolving loan allows for funds to be drawn, repaid, and drawn again within the agreed lending period. 

PIF, a key driver of Saudi Arabia’s economic diversification under Vision 2030, has launched 95 companies since 2017, injecting at least SR150 billion ($40 billion) into the local economy annually. 

“The financing reflects PIF’s strong credit rating as well as robust demand from PIF’s relationship banks and financial institutions. Signing this facility represents a continuation of PIF’s strategy of using a diverse range of financing instruments,” the fund said. 

The statement further noted that this new loan replaces a similar $15 billion multi-currency revolving credit facility that PIF signed in 2021 with a group of 17 banks, providing quick access to capital when needed. 

Loans and debt instruments are one of PIF’s four funding sources, alongside government capital injections, state asset transfers, and retained earnings from investments. 

PIF, one of the most influential sovereign wealth funds globally, reported a net profit increase of over 100 percent in 2023 to SR331 billion, up from SR165 billion in 2022. 

The fund also received an A1 rating from Moody’s with a positive outlook and an A+ rating from Fitch with a stable outlook, underscoring its robust financial position. 

“Through strategic investments and partnerships across the Saudi public and private sector, PIF is driving the transition to a more sustainable economy, and laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia,” the statement concluded. 

As the fund continues to leverage diverse financial instruments, it reinforces its pivotal role in the Kingdom’s transformation, fostering growth and sustainability in line with Vision 2030’s ambitious goals. 


Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO
Updated 47 sec ago
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Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

Saudi Arabia set to unveil new tourist destinations in 2025: ASFAR CEO

DUBAI: The Public Investment Fund subsidiary ASFAR is set to launch new tourist attractions by early next year, reinforcing its commitment to economic growth and diversification, according to CEO Fahad bin Mushayt.

In an interview with Arab News during the Future Hospitality Summit in Dubai, Bin Mushayt said that the latest destination will debut in Al-Baha by the beginning of next year.

ASFAR, which has been operational for nearly two years, is collaborating with investors to enhance the Kingdom’s tourism sector by focusing on eight key destinations aligned with the Ministry of Tourism’s strategy.

While ASFAR does not directly develop these projects, it leverages its robust investment strategies and tourism expertise to partner with other companies, creating new opportunities in the sector. Among its projects are locations in Hail, Al-Baha, Yanbu, Al Hasa, Taif, and Al Jouf.

“Since we started, we are now active in five destinations,” the CEO stated.

In Al-Baha, ASFAR is developing two resorts, with a soft opening anticipated in the first quarter of 2025.

He said the company is “building almost 150 keys across two distinct locations, each offering unique experiences.” The top executive said one “caters to parents and couples, while the other targets the youth with an adventure park combined with hospitality.”

Describing Al-Baha as a “beautiful destination atop the mountains, known for its greenery and mild climate averaging around 20 degrees year-round.”

Bin Mushayt also highlighted plans for Taif, located two hours from Al-Baha, focusing on religious tourism due to its proximity to Makkah.

“We’re targeting religious tourism by building a wellness resort, allowing visitors to reaffirm their spiritual needs while enjoying the local scenery and mountains, just 30 to 40 minutes from Makkah,” he elaborated.

In Yanbu, a coastal city on the Red Sea about two hours from Jeddah, additional developments include a lifestyle hotel, beach club, beach resort, and tourism center featuring food and beverage options, retail, a diving academy, and marine activities. “Yanbu is known as one of the best diving areas in the world,” Bin Mushayt noted.

Further projects are also underway in Al Hasa and Hail, scheduled to open in 2025 and 2026.

Tourism is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the economy beyond oil revenues.

Bin Mushayt highlighted the sector's growth, stating, “Tourism is currently growing at nearly double-digit rates, contributing significantly to the GDP.”

ASFAR’s initiatives also aim to create jobs and stimulate the overall economy, with aspirations of generating around 250,000 jobs in the tourism sector by 2030.

The company is also investing in transportation, casual dining, and the development of destination management and tour operator companies to enhance visitor experiences.

Bin Mushayt emphasized the importance of local content and community involvement in these projects. “We prioritize using local materials and supporting small and medium enterprises within the destinations,” he said.

He further noted that “many family-oriented products and services will also be offered,” driving economic activity and development through tourism.

Expressing enthusiasm for Saudi Arabia’s goal of attracting 150 million annual visitors, he stated that ASFAR aims to welcome at least 5 million visitors to its destinations.


Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia
Updated 30 September 2024
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Millennium Hotels and Resorts eyes expansion across Saudi Arabia

Millennium Hotels and Resorts eyes expansion across Saudi Arabia

DUBAI: Millennium Hotels and Resorts is actively negotiating with multiple owners to expand its presence in Saudi Arabia, with plans to enter Riyadh soon and explore opportunities in other key cities beyond the major ones.

In an interview with Arab News at the Future Hospitality Summit in Dubai, COO William Harley-Fleming expressed the company’s intent to diversify its portfolio by tapping into the resort market, targeting key destinations and landmark projects across the Kingdom and the broader Middle East.

“We’re in discussions with several owners to explore how we can add value in regions of the Saudi market. As you know, Saudi Arabia is not just about Riyadh and Jeddah,” Harley-Fleming stated. “We’d like to get something in Riyadh, and we hopefully will have something there very soon, but we are also looking at other key cities within the Kingdom, which are just as important as the capitals.” 

Currently, Millennium operates a Grand Millennium hotel in Saudi Arabia but plans to introduce more of its 11 other brands, particularly its lifestyle-oriented social brand. “I think the Kingdom itself has been flooded with opportunities, but for us, it’s about having the right brand, with the right owners in the right locations. That’s why we believe the social brand is due for more than just midscale brands. We see opportunities now to develop that in some of the key locations,” he noted.

Harley-Fleming also announced plans for a new Copthorne hotel in Jeddah, set to open next year, which will be their second property in the city following the Millennium Hotel launched this year. The company is also in talks to introduce additional brands in Jeddah and expand to other areas.

“The development plan and growth plans are important to us, and we want to be part of that. I think the F&B scene is something that has really improved a lot within the Saudi market, and I think this is really a close collaboration with the tourism authorities and the government of Saudi (Arabia),” he said.

He revealed ongoing discussions with the government to expand into key locations that are considered secondary but are still attractive, such as Tabuk, Jazan, and Hail — regions outside of major cities that are seeing substantial development and interest.

“We’ve seen a big influx of not only consultants to the area but also people who want to experience Saudi Arabia itself. That’s why we want to see more of these remote locations, as we believe there’s so much more to offer in the Kingdom,” Harley-Fleming emphasized.

He added: “It’s not just about beaches and deserts; there’s so much more to offer. That's what we want to do — the cultural and heritage side. That’s where I think definitely a brand like ours ties in well because we work closely with the owners to make sure that anybody visiting their hotels also gets that element of localization.”

Millennium Hotels also supports the Saudization program, which promotes employing local talent, reinforcing its commitment to the country’s social and economic goals. Harley-Fleming noted plans to hire more Saudis to enhance the authentic Saudi experience for visitors.

As the Kingdom opens up to international tourism, the company aims to immerse guests in Saudi culture through language, local traditions, and cuisine. For instance, they plan to offer local honey and dates from nearby farmers in hotel lobbies.

Harley-Fleming underscored that localization is part of a broader sustainability initiative, which includes supporting local businesses and integrating cultural elements into the guest experience.


Rotana expands into Saudi Arabia’s secondary and tertiary cities

Rotana expands into Saudi Arabia’s secondary and tertiary cities
Updated 30 September 2024
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Rotana expands into Saudi Arabia’s secondary and tertiary cities

Rotana expands into Saudi Arabia’s secondary and tertiary cities

DUBAI: Rotana Hotels is set to expand its footprint in Saudi Arabia by establishing hotels in secondary and tertiary cities over the next two years.

CEO Philip Barnes outlined plans for nine additional hotels, reflecting a strategic shift toward less explored locations in the Kingdom.

“We’re looking to grow by probably another nine hotels over the course of the next two years,” Barnes shared with Arab News at the Future Hospitality Summit in Dubai, emphasizing the brand’s commitment to smaller, developing cities.

Barnes highlighted recent openings, including an Edge hotel in Riyadh and a new property in Madinah, but noted the focus is now on expanding into areas often overlooked by international chains. “We’re moving into what I would consider to be more tertiary and secondary cities within Saudi, which for us is tremendous because that’s what we want to be — a strong regional brand,” he explained.

While the specific locations of the new hotels are not yet disclosed, discussions with various developers and owners are in progress. This local-centric expansion aligns with Rotana’s deep regional roots. “We were born in the region. We’ve grown up in the region. We are the region,” Barnes stated, emphasizing the brand’s understanding of local culture as a key advantage.

“There’s a familiarity with owners and developers. We come in with a perspective unique to the region, not influenced by American, British, or French models,” he added. This cultural awareness is crucial for developers, as Rotana’s insights into local markets enhance their comfort level. “We know how things work in the region, and that’s become more important for a lot of developers,” Barnes noted.

As Saudi Arabia positions itself on the global tourism map, Barnes sees the country rapidly emerging as a key player in the hospitality sector. He reflected on the improvements in accessibility and infrastructure since his earlier experiences in the Kingdom. “Back in 2019, I had to go to the embassy to get a visa. Now, the visa is automatically online. The whole transition is becoming easier,” he remarked.

Saudi Arabia is making strides to establish itself as a world-class destination, boasting a rich cultural heritage, which is vital for attracting international visitors. Barnes shared his impressions of Riyadh’s transformation: “Driving down the street at 10 at night in Riyadh, I could have been anywhere in the world. The streets were packed, the restaurants were busy. There was life, energy, and passion.”

This vibrancy, combined with a strategic push to showcase cultural heritage, is driving investment and tourism. “People are getting a lot more comfortable with Saudi. It has the history, it has the culture. As Saudi (Arabia) puts itself more on the world stage, you’re going to see more of that,” he explained.

Barnes compared Saudi Arabia’s growth to that of successful tourism destinations in the past, noting a similar pattern emerging in the Middle East. “People are looking for new and interesting places that have culture and history, and Saudi has all of that to offer,” he remarked, predicting that Saudi (Arabia) will make a significant impact on the global tourism landscape in the next few years.

Looking forward, Barnes acknowledged the increasing role of technology and artificial intelligence in hospitality, while underscoring the importance of human interaction.

“AI is becoming more prominent. We’ve appointed a CIO who is well-versed in AI and is looking at how we can enhance the guest experience,” he noted, highlighting the use of AI for streamlining processes like booking and customer service. However, he stressed that technology cannot replace the personal touch.

“The hospitality industry is about people. AI can’t replace the doorman who gives you a warm smile and greets you by name. It’s the human touch that makes you feel special, and AI won’t do that,” Barnes concluded.

As Rotana advances its expansion plans in Saudi Arabia, the company’s deep understanding of local markets and commitment to guest experience positions it well to benefit from the country’s tourism boom, playing a central role in the rapidly growing hospitality sector.


Saudi stock market rises to 7th globally in size, says CMA chief

Saudi stock market rises to 7th globally in size, says CMA chief
Updated 30 September 2024
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Saudi stock market rises to 7th globally in size, says CMA chief

Saudi stock market rises to 7th globally in size, says CMA chief

JEDDAH: The Saudi stock market has experienced significant growth, now ranking seventh globally and showcasing the resilience of the real economy, according to Mohammed bin Abdullah Elkuwaiz, chairman of the Capital Market Authority.

Elkuwaiz made these remarks at the 7th CEOs Forum, organized by the Small and Medium Enterprises General Authority, known as Monsha’at, on Sept. 30 in Riyadh. The event, themed “Opportunities to Enhance Business Growth,” was attended by over 1,200 executives across various sectors and sponsored by Saudi Commerce Minister Majid Al-Qasabi, who is also chairman of Monsha’at.

The forum featured local and international speakers, experts, and entrepreneurs, all aimed at empowering high-growth enterprises with insights into the latest developments and innovative practices in the SME landscape.

In a panel discussion, Elkuwaiz highlighted the remarkable growth of the Saudi stock market, which ranked 25th or 26th globally at the outset of Vision 2030. “Today, it stands as the seventh largest market in the world. Over the years, it has increasingly mirrored the real economy,” he stated.

He emphasized the market’s role as a key destination for entrepreneurs, attracting both local and global investors.

“We must facilitate the transition of companies into the Kingdom, enabling them to list and issue shares,” he said, noting that resolving challenges related to zakat and taxation remains a critical hurdle.

Elkuwaiz pointed out that the primary function of the stock market for entrepreneurs is to secure financing for expansion or exit strategies, allowing investors to engage in new ventures. He identified two primary funding avenues: equity financing and debt market financing.

While acknowledging the current maturity of the stock market, he indicated that several priorities remain, particularly the introduction of a technological system for managing subscriptions. This system, recently launched by the Saudi Stock Exchange, aims to streamline subscriptions, reduce costs, and shorten processing times, enhancing the market’s attractiveness.

Discussing the debt market, Elkuwaiz noted significant growth potential. “Recently, the authority proposed major amendments to the regulations governing the issuance and listing of securities, simplifying processes to enable more companies to participate,” he explained.

He also addressed the challenges faced by the Saudi parallel market, Nomu. “Efforts are underway in collaboration with Tadawul to enhance liquidity, increase listings, and broaden the investor base,” he said.

Elkuwaiz acknowledged the traditional reliance of Saudi Arabia's economy on oil exports, highlighting the recent presence of Aramco and various tech companies in the stock market, creating one of the most profitable sectors. He noted that SMEs account for 55 percent of listings on the Saudi stock market, leading to the launch of Nomu in 2017, which now features over 70 companies, primarily SMEs.

The forum included an investor area where more than 60 investment meetings were held, fostering collaboration and enhancing financing and investment opportunities for enterprises.


Closing Bell: Saudi indices close lower at 12,226 

Closing Bell: Saudi indices close lower at 12,226 
Updated 30 September 2024
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Closing Bell: Saudi indices close lower at 12,226 

Closing Bell: Saudi indices close lower at 12,226 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,226.10 points on Monday, losing 45.67 points, or 0.37 percent.      

The parallel market Nomu also shed 167.72 points, or 0.65 percent, to conclude at 25,442.94.       

The MSCI Tadawul 30 Index also fell 4.15 points to finish at 1,528.05.     

The main index posted a trading value of SR8.7 billion ($2.33 billion), with 81 stocks advancing and 149 declining. Nomu reported a trade volume of SR52.4 million.    

Despite TASI’s slowdown, Al-Baha Investment and Development Co. saw a growth in its stock as its share price surged 10 percent to SR0.22. CHUBB Arabia Cooperative Insurance Co. followed next with its share price jumping 5.39 percent to close at SR42.05.    

Tourism Enterprise Co. was also among the top performers, climbing 5.21 percent to SR1.01. Salama Cooperative Insurance Co. and Saudi Arabian Mining Co. increased 4.26 and 3.83 percent to SR28.15 and SR48.80, respectively.    

Conversely, Bupa Arabia for Cooperative Insurance Co. recorded the most significant dip, declining 5.82 percent to SR207.20.    

Saudi Fisheries Co. and Savola Group also experienced setbacks, with their shares dropping to SR29.15 and SR27, reflecting declines of 4.43 and 3.74 percent, respectively. Maharah Human Resources Co. and Saudi Kingdom Holding Co. also reported losses.   

Nomu’s top performer was Natural Gas Distribution Co., which saw a 9.71 percent jump to SR48. 

Edarat Communication and Information Technology Co. and Nofoth Food Products Co. also recorded notable gains, with their shares closing at SR515 and SR18.54, marking an increase of 7.29 and 5.94 percent, respectively. Future Care Trading Co. and Banan Real Estate Co. also fared well.    

On Nomu, Alqemam for Computer Systems Co. was the worst performer, declining by 9.52 percent to SR95. Other underperformers included Meyar Co. and National Building and Marketing Co., whose share prices dropped 7.46 percent and 5.83 percent to SR62 and SR210, respectively.    

Taqat Mineral Trading Co. and MOBI Industry Co. declined during the day to settle at SR11.20 and SR11.28, respectively.