Saudi housing company tops list of GCC real estate developers for 2024

Saudi housing company tops list of GCC real estate developers for 2024
NHC manages nine suburbs and six residential districts, covering an area exceeding 100 million sq. meters. Screenshot/NHC
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Updated 05 September 2024
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Saudi housing company tops list of GCC real estate developers for 2024

Saudi housing company tops list of GCC real estate developers for 2024
  • NHC said it executed 130 projects during this period
  • NHC plans to deliver 300,000 homes and establish nine thoughtfully designed residential suburbs by 2025

JEDDAH: Saudi Arabia’s National Housing Co. has been named the GCC’s top real estate developer for 2024, following SR13 billion ($3.47 billion) in sales during the first half of the year.

Construction Week Middle East’s report ranks the top 50 real estate developers in the GCC based on various criteria each company meets.

In a statement, NHC, a major player in the Middle East real estate sector, said that it executed 130 projects during this period in partnership with real estate developers across various regions in Saudi Arabia.

The company is dedicated to enhancing housing and living conditions with a focus on sustainability, ensuring that housing developments are environmentally friendly and future-proof across the Kingdom.

These initiatives align with Saudi Arabia’s broader mission to enhance services and unify efforts across various sectors to help families achieve homeownership, to raise the rate to 70 percent as part of Vision 2030.

As the largest enabler of the real estate development sector and the primary developer of suburbs and urban communities in the Kingdom, NHC manages nine suburbs and six residential districts, covering an area exceeding 100 million sq. meters.

By 2025, NHC plans to deliver 300,000 homes and establish nine thoughtfully designed residential suburbs, offering modern and connected communities, the company said.

It is also focused on ensuring high-quality supply chains and more sustainable construction materials, to increase the real estate supply with globally standardized housing options.


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. 


Fourth Milling eyes growth, regional expansion post-IPO to boost Saudi food security: CEO

Fourth Milling eyes growth, regional expansion post-IPO to boost Saudi food security: CEO
Updated 29 September 2024
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Fourth Milling eyes growth, regional expansion post-IPO to boost Saudi food security: CEO

Fourth Milling eyes growth, regional expansion post-IPO to boost Saudi food security: CEO

RIYADH: As Fourth Milling Co. charts its path forward following a successful initial public offering, the company is positioning itself for significant growth, signaling a new era of industry leadership. 

Key to the firm’s plans is expanding production capacity and enhancing operational efficiencies. These efforts aim to strengthen leadership in Saudi Arabia’s milling industry while supporting the Kingdom’s food security needs, a crucial element of the country’s Vision 2030, Khalid Al-Maktary, the company’s CEO told Arab News in an interview. 

As one of Saudi Arabia’s leading producers of flour, wheat derivatives, and animal feed, Fourth Milling Co. is helping ensure a stable and reliable supply of essential staples. 

Khalid Al-Maktary, CEO of Fourth Milling Co. Supplied

“Our core business focuses on producing high-quality flour and related products for both industrial and consumer segments,” the executive said.  

Its flagship brand, FOOM, dominates the local market, holding over 31 percent of the consumer segment by volume, the highest among regional and international competitors.  

This strong market position enables the company to serve over 80 percent of the Kingdom’s population efficiently. 

Fourth Milling Co. holds a 21 percent share of Saudi Arabia’s overall flour market, making it one of the top players in the industry, Al-Maktary noted. 

Its ability to maintain this market dominance is attributed to several factors: its production facilities, efficient distribution network, and strong customer loyalty, the CEO underlined, adding that these strengths were key drivers behind the successful IPO, which saw the company’s shares oversubscribed by 119 times during the institutional book-building process. 

“The institutional book-building generated an order book of approximately SR102.2 billion ($27.26 billion),” the CEO said.  

The strong demand reflects confidence in Fourth Milling Co.’s role in the growing milling sector and its alignment with Saudi Vision 2030, which emphasizes food security as a national priority. The final offer price of SR5.30 per share gives the company a market capitalization of SR2.86 billion. 

Following the IPO, the firm will continue to focus on strategic expansion to meet the rising demand for flour and wheat products. “Post-IPO, our immediate priorities are focused on expanding production capacity, optimizing operational efficiencies, diversifying our product portfolio, and enhancing brand equity,” Al-Mastery said.  

By increasing capacity in high-growth regions, Fourth Milling Co. aims to maintain its leadership position and ensure a reliable supply of essential products as demand increases. 

As part of its broader five-year growth strategy, the body is investing in product innovation, particularly in the development of value-added products such as functional flours, which cater to the growing demand for health-conscious food options. 

The company also plans to diversify its product portfolio, focusing on high-growth areas and meeting shifting consumer preferences. “Fostering innovation through the development of value-added products will be a key focus in the coming years,” the CEO said, recognizing the potential of health-conscious and premium products in the evolving market. 

While its current focus remains on Saudi Arabia, the company is eyeing potential expansion into neighboring Gulf Cooperation Council markets, Al-Mastery added. 

With a well-established foothold in the domestic market, the firm sees regional expansion as a natural next step. “We are actively exploring opportunities to expand our presence into neighboring GCC markets in the near future,” he said, indicating a broader vision for growth beyond Saudi borders. 

The company’s efforts to expand capacity, optimize efficiency, and maintain a strong market presence directly support Saudi Arabia’s food security agenda, which is essential for the nation’s growing population. 

“As the Kingdom’s population continues to grow, our focus remains on maintaining high production standards and contributing to long-term food sustainability,” the CEO said. 


Closing Bell: Saudi main index slips to close at 12,271 

Closing Bell: Saudi main index slips to close at 12,271 
Updated 29 September 2024
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Closing Bell: Saudi main index slips to close at 12,271 

Closing Bell: Saudi main index slips to close at 12,271 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 102.53 points, or 0.83 percent, to close at 12,271.77. 

The total trading turnover of the benchmark index was SR6.20 billion ($1.65 billion), as 81 of the stocks advanced and 142 retreated.   

The Kingdom’s parallel market Nomu gained 83.19 points, or 0.33 percent, to close at 25,610.66. This comes as 39 of the listed stocks advanced, while 24 retreated.   

The MSCI Tadawul Index lost 16.57 points, or 1.07 percent, to close at 1,532.20.   

The best-performing stock of the day was BinDawood Holding Co., whose share price surged 6.01 percent to SR7.94.  

Other top gainers were Thimar Development Holding Co. as well as Americana Restaurants International PLC - Foreign Co. 

The worst performer was Dallah Healthcare Co., whose share price dropped by 4.98 percent to SR160.40.  Halwani Bros. Co. and Astra Industrial Group also saw their shares decline.  

Riyad Bank has announced the completion of the $750 million offer of its US dollar-denominated additional tier 1 capital sustainable sukuk under its international additional tier 1 capital Sukuk program. 

The program refers to a type of Islamic financial instrument designed to meet regulatory capital requirements while adhering to Shariah principles. These sukuk are issued by banks and financial institutions to raise capital, specifically classified as Tier 1 capital, which is crucial for maintaining solvency and supporting growth. 

According to a Tadawul statement, the total number of sukuk stands at 3,750 based on the minimum denomination and total issue size at a par value of $200,000 and a return of 5.5 percent per annum and a maturity of perpetual, callable after five years. 

The sukuk may be redeemed in certain cases as detailed in the offering circular in relation to the sukuk. It will be listed on the London Stock Exchange’s International Securities Market.  

Dr. Sulaiman Al Habib Medical Services Group Co. has announced that it has signed a Shariah-compliant banking facilities agreement with Al Rajhi Bank worth SR1.3 billion for 13 years. 

A bourse filing revealed that the amount will be utilized in financing the following projects of the group: Sehat AlHamra Hospital, Women’s Health Hospital, and Sehat Alkharj Hospital as well as the Medical Centers affiliated with Al-Marakez Al-Awwalyah for Healthcare Co. 


Saudi Arabia calls for global action on climate and land degradation at UN General Assembly

Saudi Arabia calls for global action on climate and land degradation at UN General Assembly
Updated 29 September 2024
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Saudi Arabia calls for global action on climate and land degradation at UN General Assembly

Saudi Arabia calls for global action on climate and land degradation at UN General Assembly

JEDDAH: Saudi Arabia has called for decisive global action to address climate change, biodiversity loss, and land degradation during the UN General Assembly. 

The appeal was made at a Rio Trio Initiative event in New York City, where the incoming presidents of the three Rio summits outlined their goals for the UN environmental meetings scheduled for the remainder of 2024, according to a press release.  

Saudi Arabia is set to host the UN Convention to Combat Desertification’s COP16 from Dec. 2-13, with a key target of restoring 1.5 billion hectares of degraded land by 2030. The Kingdom’s COP16 presidency is pushing for concrete commitments to reach this goal. 

The Saudi Deputy Minister of Environment, Water and Agriculture Osama Faqeeha, who is also an advisor to the incoming UNCCD COP16 president, said: “Climate change, biodiversity loss, and land degradation are interconnected aspects of the same planetary crisis, which are most effectively addressed in an integrated way.” 

He added: “This year presents a unique opportunity to unite with our colleagues in Azerbaijan and Colombia to rally the international community to address these interrelated global environmental challenges, which are having a devastating impact on the planet and all of its inhabitants, including its people.” 

The Riyadh event is expected to be the largest and most inclusive UNCCD COP to date, bringing together the private sector, civil society, and the scientific community to share solutions for land degradation, desertification, and drought. 

Azerbaijan will preside over the 29th Conference of the UN Framework Convention on Climate Change, while Colombia will chair the 16th Conference of the Convention on Biological Diversity.   

At the Rio Trio Initiative event, Saudi representatives underscored the importance of land health for people and the planet, stressing the significant economic, social, and environmental repercussions of land degradation and drought — all of which jeopardize biodiversity, elevate greenhouse gas emissions, and worsen food and water insecurity. 

The incoming president of the CBD COP16, Susana Muhamad and Colombia’s minister of environment and sustainable development, said: “We need a joint agenda implemented on the ground, and we are ready to establish a working group to promote articulation and coherence.” 

She further emphasized that the just transition addressed in relation to climate change must foster collaborations to prevent the degradation and harm of natural ecosystems.

“On the other hand, we have a great opportunity to plan the land with a more integrated approach: decarbonizing, restoring, and generating better conditions for human lives. COP16 is the space for deepening the understanding of these synergies,” she said. 

COP29 President-Designate Mukhtar Babayev stated that by strengthening collaboration among the three Rio Conventions, they seek to unlock alliances, improve efficiency, and achieve tangible outcomes that benefit both people and the planet. 

“This is about recognizing that the goals of the respective conventions are intrinsically linked and that progress in one area can catalyze advances in others,” Babayev said. 

The Rio Trio Initiative is named after the pivotal 1992 Earth Summit in Rio de Janeiro, where nations united to form a framework addressing the pressing challenges of climate change, desertification, and biodiversity loss. The initiative aims to enhance collaboration across the three major international environmental conventions. 


Qatar private sector exports surge 3.5% in Q2 

Qatar private sector exports surge 3.5% in Q2 
Updated 29 September 2024
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Qatar private sector exports surge 3.5% in Q2 

Qatar private sector exports surge 3.5% in Q2 

RIYADH: Qatar’s private sector exports increased by 3.5 percent quarter-on-quarter, reaching 2.62 billion Qatari riyals ($719 million) in the second quarter of 2024, the latest industry data showed.  

A recent report from the Qatar Chamber highlighted varied performance among exports based on the type of certificates of origin, with shipments under the General Model rising by 2.2 percent and those through the Unified Gulf Cooperation Council Model increasing by 15.3 percent. In contrast, exports via the Unified Arab Model experienced a decline of 24 percent compared to the previous quarter. 

These models serve as frameworks to enhance understanding of economic integration and cooperation among countries, analyzing trade based on various monetary theories, including trade barriers, tariffs, and financial synergies among member states. 

The increase aligns with the goals of the Third National Development Plan 2024-2030, which aims to boost private sector growth and raise the share of Qataris in the private workforce to 20 percent. 

The report also indicated that fuel exports in the second quarter totaled 435 million riyals, marking a 17.7 percent drop from the first quarter. Aluminum exports similarly declined by 31 percent, reaching 302 million riyals. 

Additionally, essential and industrial oils amounted to 427.6 million riyals, reflecting a year-on-year increase of 9 percent. However, steel exports fell by 20.8 percent to 218.18 million riyals. 

Exports of industrial gases and lotrene recorded declines of 20.6 percent and 66.1 percent, respectively, reaching 200.3 million riyals and 44.42 million riyals. 

Chemical substance exports reached 90.1 million riyals in the second quarter, reflecting a decrease of 3.4 percent, while petrochemical exports totaled 52.9 million riyals, down 41.7 percent on a quarterly basis.  

Paraffin exports amounted to 29.5 million riyals, a 4.9 percent decline compared to the fourth quarter of 2023, whereas chemical fertilizers surged to 339.5 million riyals, a significant increase of 3,139 percent compared to the first quarter. 

These ten commodities accounted for 81.6 percent of the total value of private sector exports, according to the certificates of origin issued by the Qatar Chamber during the second quarter. 

In terms of economic blocs, Asian countries, excluding the Gulf Cooperation Council and Arab nations, topped the list, receiving exports worth 1.2 billion riyals, or 45.6 percent of total exports.  

GCC countries followed with 625.62 million riyals, or 23.9 percent, while the EU received 543.43 million riyals, or 20.7 percent.  

Arab countries, excluding GCC, received 145.96 million riyals, and other European countries accounted for 76.82 million riyals. African countries collectively received 21.06 million riyals, or 0.8 percent of total exports. 

The report indicated that Qatar exported to 105 countries in the second quarter, with the African grouping comprising 27 nations. 

India emerged as the leading destination for private sector exports, totaling 475.5 million riyals, or 18.1 percent, followed by the Netherlands with 354.5 million riyals, a share of 13.6 percent, and the UAE with 251.55 million riyals, or 9.6 percent.