Red Sea Global launches Saudi Arabia’s 2nd water aerodrome after GACA approval

Red Sea Global launches Saudi Arabia’s 2nd water aerodrome after GACA approval
General Authority for Civil Aviation President Abdulaziz bin Abdullah Al-Duailej handed the license for the water aerodrome to Red Sea Global’s CEO John Pagano. SPA
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Updated 30 August 2024
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Red Sea Global launches Saudi Arabia’s 2nd water aerodrome after GACA approval

Red Sea Global launches Saudi Arabia’s 2nd water aerodrome after GACA approval

RIYADH: A second water aerodrome is set to be opened in the Red Sea tourist development after an operating license was secured, it has been announced.

The move means passengers will be able to arrive on Sheybarah Island, home to the Shebara resort, by seaplane – with the facility opening to guests in September. 

General Authority for Civil Aviation President Abdulaziz bin Abdullah Al-Duailej handed the license for the water aerodrome to Red Sea Global’s CEO John Pagano, saying the granting of the permit forms part of GACA’s transformation program to boost competition and investment in support of Saudi Arabia’s Vision 2030 agenda.

Minister of Transport and Logistics Services Saleh AI-Jasser was also in attendance, according to the Saudi Press Agency.

RSG is one of Saudi Arabia’s giga-projects, and is set to boast 50 hotels across 28,000 sq. km, by 2030, with an ambition of hosting 300,000 guests a year.

“This license is one of the final stepping stones toward opening Shebara to the world. Soon, guests will be arriving by seaplane to this iconic resort in anticipation of enjoying a truly peerless escape,” said Pagano. 

“As owners of the Kingdom’s first seaplane airline and its only two water aerodromes up until now, we are firmly establishing ourselves as leaders within tourism and aviation,” he added.

In 2023, RSG secured the first operating license for a water aerodrome in Saudi Arabia, at Ummahat Island. 

It has been servicing passengers to and from the St. Regis Red Sea Resort and Nujuma, a Ritz Carlton Reserve, since they opened on the island earlier in 2024. 

More than 520 flights carrying over 1,200 passengers were completed in the first half of the year on a fleet of Cessnas, and RSG expects to transport 3,800 passengers before the end of 2024.

In 2023, RSG also announced the launch of its subsidiary business Fly Red Sea, the Kingdom’s first seaplane company and water aerodrome operator. 

It was established to enable the transport of guests to the Red Sea’s islands' resorts, and will eventually add connections to neighboring destinations and developments such as AMAALA and Al Wajh Airport.

Upon full completion in 2030, the destination will offer up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. 

The destination will also include luxury marinas, golf courses, and leisure facilities.


Saudi agriculture set to grow with 9,683 Q3 licenses enhancing food security, local production

Saudi agriculture set to grow with 9,683 Q3 licenses enhancing food security, local production
Updated 25 min 30 sec ago
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Saudi agriculture set to grow with 9,683 Q3 licenses enhancing food security, local production

Saudi agriculture set to grow with 9,683 Q3 licenses enhancing food security, local production
  • Fish resource category received the highest number of licenses, totaling 5,969
  • Licensing period ran from the beginning of July to the end of September

JEDDAH: Saudi state-owned National Co. for Agricultural Services issued 9,683 agricultural licenses in the third quarter of the year to enhance food security and boost local production, said the CEO.

Omar Al-Suhaibani highlighted that the licensing period ran from the beginning of July to the end of September.

The company, known as AgriServ, is dedicated to empowering farmers, breeders, and commercial enterprises in the agricultural sector. 

The Kingdom has established a strategic plan for its agricultural sector that focuses on evaluating performance and formulating objectives across five key axes, including sustainability of natural resources, food security, societal welfare for farmers, economic contributions, and preventative measures.

Despite its desert climate and limited water resources, the country emphasizes national policies and strategies that tackle critical issues such as food and water security, sustainable agricultural development, and ecological balance. 

These efforts reflect Saudi Arabia’s commitment to enhancing agricultural productivity while ensuring the responsible management of its natural resources.

The CEO highlighted that the fish resource category received the highest number of licenses, totaling 5,969, followed by the plants division, which issued 2,476.

Other categories included 677 permits for veterinary establishments, 286 for public benefit markets, and 275 for animal resources. Al-Suhaibani highlighted that beekeepers within the plant resource sector accounted for the highest number of licenses, with 1,486 issued.

In the fish resource category, seasonal fishermen were granted 1,227 temporary fishing permits, while the veterinary business category registered 324 practice licenses. Authorizations for broiler chicken production led the animal resource category with 184 licenses, and there were 152 licenses for marketing service providers in public benefit markets.

AgriServ is a Saudi government-owned company established in 2018 as one of the outcomes of the transformation program in the provision of agricultural services.

It aims to provide high-quality and sustainable agricultural services to enhance operational efficiency, improve quality and productivity, and support the goals of agricultural sector development.

The company is responsible for executing the services assigned by the Ministry of Environment, Water, and Agriculture on sustainable commercial grounds, while MEWA retains legislative, regulatory, and supervisory duties over the sector.


Saudi Arabia’s MSMEs see 17% growth in credit facilities – SAMA report

Saudi Arabia’s MSMEs see 17% growth in credit facilities – SAMA report
Updated 07 October 2024
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Saudi Arabia’s MSMEs see 17% growth in credit facilities – SAMA report

Saudi Arabia’s MSMEs see 17% growth in credit facilities – SAMA report

RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 17.04 percent year on year in the second quarter of 2024, totaling SR307.4 billion ($82 billion), according to recent data. 

The Saudi Central Bank, known as SAMA, reported that 94 percent of these were provided by Saudi banks, while finance companies accounted for the remaining 6 percent. 

The facilities accounted for 8.8 percent of banks’ total lending portfolio and 19.5 percent of finance companies’ credit portfolios. The government is urging financial institutions to allocate 20 percent of their loan portfolios to this sector, demonstrating strong and ongoing support for these enterprises. 

Recent reforms in Saudi Arabia have simplified investment and startup processes, increasing this sector’s share of gross domestic product from 21 percent in 2013, with a Vision 2030 goal of reaching 35 percent.

In the second quarter, medium-sized enterprises received the largest share of credit facilities, totaling 54 percent or SR167.31 billion.

Notably, micro enterprises experienced substantial growth, achieving a 45.53 percent increase in credit to SR33.7 billion, despite holding a smaller overall share.  

Credit to small enterprises, making up 35 percent of MSME financing, rose by 26.84 percent to SR106.39 billion during the same period. 

Micro enterprises are defined as those generating revenues up to SR3 million with a workforce of no more than five employees. 

Small enterprises have earnings ranging from SR3 million to SR40 million and can employ up to 49 workers, while medium enterprises generate between SR40 million and SR200 million in revenue and employ 50 to 249 individuals. 

Lending to the MSME sector in Saudi Arabia is experiencing strong growth, driven by the Kingdom’s economic diversification efforts under Vision 2030. 

As the country shifts away from oil dependency, demand is rising for private businesses to expand in key sectors such as entertainment, hospitality, sports, and retail — industries supported by a young, aspirational consumer base. 

Government initiatives like the Kafalah program play a crucial role in empowering MSMEs, particularly in the non-oil sector, by providing financial support and fostering sustainable economic development. 

Monsha’at key figures 

Monsha’at, a key enabler of Saudi Arabia’s Vision 2030, plays a vital role in the SME ecosystem by enhancing access to finance, promoting entrepreneurship, and providing critical support for business development. 

The authority facilitates funding for this sector through partnerships with financial institutions and initiatives like the Kafalah Program, which increases lending. It prioritizes upskilling SMEs through training programs and advocates for regulatory reforms to improve the business environment. 

According to its second quarter report, Saudi Arabia saw a significant surge in commercial registrations, which grew by 78 percent year on year to 121,521, with 45 percent attributed to female-owned businesses. 

This rise underscores the private sector’s crucial role in driving the Kingdom’s economy and signals a boost in entrepreneurial activity and the creation of new businesses, many of which fall under the MSME category. 

The report also indicated a 4.3 percent increase in new registrations compared to the first quarter of 2024, demonstrating sustained growth across various sectors of the economy. 

In terms of regional distribution, Riyadh accounted for 32 percent or 482,690 active registrations, followed by Makkah with 23 percent or 342,840, the Eastern Province with 235,606, and other regions totaling 457,520. 

The report emphasized the vital role of financial technology in enhancing the growth and sustainability of MSMEs in Saudi Arabia. 

Established by SAMA and the Capital Market Authority, initiatives to foster a dynamic fintech ecosystem have led to significant advancements in the sector, exemplified by the Kingdom’s first fintech initial public offering for Rasan in May, which attracted considerable investor interest. 

By the end of 2023, the Kingdom was home to 216 active fintech companies employing over 6,500 skilled professionals. This growth reflects a robust investment landscape, with more than $1.84 billion in venture capital flowing into the sector. 

According to the report, the Fintech Lab has emerged as a key driver in this space, promoting growth and innovation by offering a supportive regulatory framework for entrepreneurs and startups to develop and test new products and services. 

This initiative has led to the emergence of innovative business models and the expansion of fintech startups. Furthermore, the Lab provides investment solutions for various investors and financing options for SMEs.

Authorized fintech companies have made significant contributions to job creation across multiple sectors. 

Looking ahead to 2024, initiatives such as the Open Banking Lab will create a collaborative environment for banks and startups to innovate, while the Financial Academy aims to enhance training for entrepreneurs and SMEs. 

Additionally, the Makken Program will continue to support startups by easing regulatory and technological compliance costs, ensuring that this sector remains a driving force in the expansion of Saudi Arabia’s MSME landscape. 


Nintendo shares rise on Saudi Public Investment Fund report

Nintendo shares rise on Saudi Public Investment Fund report
Updated 07 October 2024
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Nintendo shares rise on Saudi Public Investment Fund report

Nintendo shares rise on Saudi Public Investment Fund report
  • Nintendo’s shares jumped 4.44% to end at 8,087 yen
  • Kingdom has built up a stake of 8.6% in Nintendo as part of a $38-billion push

TOKYO: Nintendo shares jumped more than four percent Monday after a top official of Saudi Arabia’s sovereign wealth fund was quoted as saying it was mulling hiking its stake in the Japanese gaming giant.
Riyadh has built up a stake of 8.6 percent in Nintendo as part of a $38-billion push into gaming under Crown Prince Mohammed bin Salman’s Vision 2030 program to diversify away from oil.
It also has stakes in “Resident Evil” maker Capcom, Activision Blizzard, Electronic Arts, and Scopely, the US mobile games company behind “Monopoly Go!.”
“There are always opportunities,” Prince Faisal bin Bandar bin Sultan, vice-chair of Saudi Arabia’s Savvy Games — a subsidiary of the Public Investment Fund — told Kyodo News in an interview published Saturday.
He added, however, that the fund had no intention of raising stakes without the consent of the firms concerned.
“It’s important to keep the communication going so you get there in the right way,” he said. “We don’t want to rush into anything.”
Nintendo’s shares jumped 4.44 percent Monday to end at 8,087 yen ($54.48).
Saudi Arabia aims to create 250 gaming companies and studios on its soil, 39,000 game-related jobs, be in the top three of professional gamers per capita and to produce a blockbuster “AAA” game by 2030.
Savvy has already bought esports tournament organizer ESL Gaming and platform FaceIt. Riyadh last year hosted the eSports World Cup that saw 2,500 gamers battle for $60 million in prize money.
“There’s a lot we want to do to get it done and to reach our targets at 2030,” Prince Faisal told AFP in an interview in May.
“But we also want to make sure that we are taking the time to study things, to look at things. And make sure we’re making the right steps and not just throwing cash out there to see what hits,” he had said.


UAE-Jordan trade projected to reach $8bn after CEPA signing, minister says 

UAE-Jordan trade projected to reach $8bn after CEPA signing, minister says 
Updated 07 October 2024
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UAE-Jordan trade projected to reach $8bn after CEPA signing, minister says 

UAE-Jordan trade projected to reach $8bn after CEPA signing, minister says 
  • Deal will create growth opportunities for businesses, young entrepreneurs, and startups in both nations
  • Mutual investments between the UAE and Jordan are estimated at around $22.5 billion

RIYADH: Bilateral trade between the UAE and Jordan is projected to increase to $8 billion by 2032, up from $4.2 billion in 2023, following the signing of a Comprehensive Economic Partnership Agreement, said a top official. 

UAE Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi emphasized that the CEPA, signed on Oct. 6, will create growth opportunities for businesses, young entrepreneurs, and startups in both nations. 

He said the agreement followed a series of negotiations and coordination meetings held in a short period, as reported by the state news agency WAM. 

The UAE has been actively strengthening its trade ties globally to enhance non-oil trade, in line with its economic diversification efforts, and in September the Emirates concluded talks to sign CEPAs with New Zealand and Australia, while also planning negotiations with Japan for a similar agreement. 

“The agreement will come into effect later this year after its ratification, and will mark the culmination of a long-standing, deep-rooted relationship between the two brotherly countries and their peoples,” Al-Zeyoudi told WAM after signing the CEPA with Jordan. 

Mutual investments between the UAE and Jordan are estimated at around $22.5 billion, with the Gulf country being the largest international investor in its Middle Eastern neighbor at $4 billion, accounting for 14 percent of the Emirates’ total foreign direct investment, stated the minister. 

He added that promising areas of investments that both countries can explore include tourism, hospitality, real estate, and renewable energy, as well as transport, logistics, manufacturing, pharmaceuticals, and food security. 

Non-oil trade between the UAE and Jordan exceeded $4.2 billion in 2023, reflecting a 37.9 percent increase compared to 2021 and a 47.7 percent rise from 2019. 

The CEPA follows a $2.3 billion agreement signed last month to develop a 360-km railway network linking Jordan’s Aqaba port to its mining hubs at Al-Shidiya and Ghor Al-Safi. 

According to a press release, the project will be developed and operated by UAE’s Etihad Rail and is part of a $5.5 billion investment package agreed upon by the two countries in November 2023. 

The UAE has previously signed CEPAs with countries including India, Turkiye, Indonesia, and Cambodia, all expected to support the country’s economy, which is projected to grow by 4 percent this year, according to a report from its central bank last month. 


Oil Updates – prices extend gains on fears of wider Middle East conflict

Oil Updates –  prices extend gains on fears of wider Middle East conflict
Updated 07 October 2024
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Oil Updates – prices extend gains on fears of wider Middle East conflict

Oil Updates –  prices extend gains on fears of wider Middle East conflict
  • Brent crude rises toward $80
  • Conflict escalation risk counters demand-side pressures, says analyst

LONDON: Oil prices extended gains on Monday, with Brent nearing $80 to build on last week’s steepest weekly jump since early 2023, driven by fears of a wider Middle East conflict and potential disruption to exports from the major oil-producing region.

Brent crude futures rose $1.11, or 1.4 percent, to $79.16 a barrel by 11:39 a.m Saudi time. US West Texas Intermediate crude futures jumped $1.28, or 1.7 percent, to $75.66.

Brent climbed by more than 8 percent last week while WTI soared by 9.1 percent on the possibility that Israel could strike Iranian oil infrastructure in response to an Iran’s Oct. 1 missile attack on Israel.

The potential escalation of the conflict has countered mounting demand-side pressures, said Priyanka Sachdeva, analyst at Phillip Nova.

Rockets fired by Iran-backed Hezbollah hit Israel’s third-largest city, Haifa, early on Monday. Israel, meanwhile, looked poised to expand ground incursions into southern Lebanon on the first anniversary of the Gaza war, which has spread conflict across the Middle East.

That spread has raised fears that the United States, Israel’s superpower ally, and arch-foe Iran will be sucked into a wider war.

ANZ Research, however, expects any immediate on supply to be relatively small.

“We see a direct attack on Iran’s oil facilities as the least likely response among Israel’s options,” it said, noting the buffer provided by producer group OPEC’s 7 million barrels per day of spare capacity.

OPEC and its allies including Russia, known collectively as OPEC+, are due to start raising production from December after cutting in recent years to support prices because of weak global demand.

OPEC+ has enough spare oil capacity to offset Israel knocking out Iranian supply, but it would struggle if Iran retaliates by attacking installations of neighboring Gulf nations, analysts have said.

When the Middle East conflict began a year ago, Brent stood at $88.15, but prices are now about $10 lower.

“While nothing can touch the emotion that the conflict has brought to the oil community, it has been well and truly smothered by macroeconomic considerations that have thwarted any idea of an increase in global demand,” said John Evans of oil broker PVM.