Saudi Arabia records 55% surge in container transhipment volume over 6 years, official says

President of the Saudi Ports Authority Omar Hariri was speaking at a presentation titled “Shaping Saudi Arabia’s Maritime Future” on the first day of the Global Logistics Forum. Screenshot
President of the Saudi Ports Authority Omar Hariri was speaking at a presentation titled “Shaping Saudi Arabia’s Maritime Future” on the first day of the Global Logistics Forum. Screenshot
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Updated 16 October 2024
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Saudi Arabia records 55% surge in container transhipment volume over 6 years, official says

Saudi Arabia records 55% surge in container transhipment volume over 6 years, official says
  • Kingdom saw a 31% increase in container import and export volumes over the same period
  • Head of Mawani said Saudi Arabia’s geographical position offers direct access to key maritime channels

RIYADH: Saudi Arabia’s container transhipment volume between 2017 and 2023 witnessed a 55 percent surge, according to the president of the Saudi Ports Authority, or Mawani. 
During his presentation titled “Shaping Saudi Arabia’s Maritime Future” on the first day of the Global Logistics Forum taking place at the King Abdullah Financial District in Riyadh from Oct.13 — 14, Omar Hariri highlighted that the Kingdom saw a 31 percent increase in container import and export volumes over the same period.

This falls in line with Mawani’s goal to double the capacity of its ports, from the current 20 million containers to more than 40 million. 

It also aligns well with its aim to grow the market share of regional transhipment from around 32 percent to 45 percent and to lift the port occupancy rate to 70 percent.

“Between 2017 and 2023, we witnessed a 31 percent increase in container import and export volumes and a 55 percent surge in container transhipment,” Hariri said.

“These gains reflect both our economic growth story, as well as our success in improving port infrastructure and streamlining related operations in collaboration with you, our partners,” he added. 

During his speech, Hariri also shed light on the advantages of Saudi Arabia’s geographical position. 

“Our geographic location, bordered by the Red Sea and the Arabian Gulf, offers direct access to key maritime channels, which facilitate nearly 30 percent of the world’s container trade volume. This prime position strengthens Saudi Arabia’s ability to act as a bridge between the East and West, driving regional and global commerce,” the president said. 

“As the economic engine of the region, it generates 15 percent of the GCC’s (Gulf Cooperation Council) GDP (gross domestic product). In every way, our strategic location and economic strength make Saudi Arabia a country that can play an important role in shaping the future of global trade,” he added. 

As part of the event, President of the Saudi General Authority of Civil Aviation Abdulaziz Al-Duailej participated in a fireside chat titled “The Role of Air Cargo in Saudi Arabia’s Vision for Global Logistics Leadership,” in which he highlighted the importance of the sector in global supply chain and how it cannot be overstated.

“In an era where speed, reliability, and safety are paramount, air cargo has a distinct advantage over other modes of transport,” Al-Duailej said. 

“First, air cargo is essential for time-sensitive goods, from health care goods to electronics. We’ve seen its importance in a crisis like COVID-19, where GACA’s commitment to overcoming logistical challenges allowed the transportation and distribution of more than 53,000 kgs of vaccines,” he added. 

The GACA president underlined that globally, air cargo handles approximately $5.6 trillion, or 35 percent, of world trade by value despite accounting for less than 1 percent by volume.

“In 2023, the global air cargo volume was 58 million tonnes with $138 billion in revenue for airlines. In 2024, the global air cargo volume is expected to increase to 61 million tonnes with $120 billion revenue for airlines. This indicates a 5.2 percent increase in air cargo volume,” Al-Duailej said.

“Saudi Arabia has also witnessed significant growth in air cargo in 2024, with a 53 percent increase compared to 2023. For the first time, the country’s airports are expected to surpass the 1 million tonnes mark with a total volume of 1.2 million tonnes of air cargo anticipated,” he concluded in that regard.

Speaking in a separate panel titled “The New Map of Global Logistics Corridors, Putting the Pieces Together,” Chief Commercial Officer at Riyadh Air, Vincent Coste, revealed that the airline received its last certification flight with GACA. 

“Riyadh Air had quite an amazing achievement today because we completed our last certification flight with GACA. It has been a fantastic adventure with GACA since we started this. So, in the coming weeks, we will have hopefully this stamp from GACA saying we are an official airline, so that’s a great step,” Coste said. 

“The next step is summer 2025 when we are planning to start operating. We will operate in the summer to a few destinations, but starting from summer 2025 until the end of 2030, we’ll have the fastest growth that any commercial airline has experienced, with an average of two destinations opened every month and will be at over 100 destinations by 2030,” he added. 

Speaking during the same panel discussion, the CEO of Vietnam SuperPort at YCH Group, Yap Kwong Weng, explained the company’s offers. 

“And I’m also the CEO of the Vietnam SuperPort, a multi-modal logistics port that focuses on bonded warehouses cargo and also, you know, a spectrum of other activities that facilitate and push toward a sustainable outcome,” Weng said. 

“And here we are talking about cost competitiveness. We are talking about, you know, building new advantages. And that’s what logistics is all about, reducing cost, increasing efficiency,” he added.

GLF24 brings together global logistics leaders to discuss the latest trends, challenges, and opportunities in the sector.

Participants will explore future cooperation between stakeholders, focusing on reshaping the future of global logistics services. 

The two-day event aims to boost international collaboration and drive growth in the logistics sector by highlighting the latest technologies and innovative solutions. The event will also launch several initiatives to strengthen global communication and contribute to developing more efficient, sustainable, and flexible supply chain services. 

The first edition of the Global Logistics Forum is a pivotal event for the Ministry of Transport and Logistics Services, as it aims to revolutionize global trade by enhancing efficiency and profitability.


Qatar’s Lesha Bank expands global footprint with $57.65m stake in Edinburgh Airport

Qatar’s Lesha Bank expands global footprint with $57.65m stake in Edinburgh Airport
Updated 22 sec ago
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Qatar’s Lesha Bank expands global footprint with $57.65m stake in Edinburgh Airport

Qatar’s Lesha Bank expands global footprint with $57.65m stake in Edinburgh Airport

JEDDAH: Qatar’s Lesha Bank has acquired a 210 million Qatari riyals ($57.65 million) stake in Edinburgh Airport, marking its debut in the global infrastructure investment market.

The bank, the first independent Shariah-compliant institution authorized by the Qatar Financial Centre Regulatory Authority, announced that the investment is being managed by a respected infrastructure fund manager.

This move aligns with the bank’s strategic focus on resilient asset classes and marks a significant step in its global infrastructure investment journey, according to a statement from Lesha Bank.

Lesha Bank CEO Mohammed Ismail Al-Emadi described the investment in Edinburgh Airport as a key milestone for the institution.

“As part of our infrastructure investment portfolio, we seek attractive investment opportunities that may drive long-term value. Our recent focus on aviation investments has been met with strong demand from our clients, given the sector’s robust growth potential,” he said.

The CEO, who has recently been featured in Forbes’ list of the top 40 asset managers in the Middle East for 2025, added that the collaboration with their business partners reinforces the bank’s commitment to delivering value for all stakeholders involved.

The institution also explained that the acquisition marks an important advancement in its aviation strategy following its recent purchase of multiple aircraft leased to a major airline.

The acquisition reinforces its commitment to expanding its aviation and infrastructure portfolio, with the investment structured through a Shariah-compliant financing arrangement, the bank, listed on the Qatar Stock Exchange, said in a filing on March 26.

Lesha Bank serves as an investment partner, offering premium financial opportunities and innovative solutions with a broad local, regional, and international reach. The institution continues to strengthen its position as a trusted advisor and gateway to opportunities in Qatar, the wider region, and global markets, with a particular focus on the US, Europe, and the MENA region.

The organization also offers high-net-worth individuals and corporates a range of innovative, tailor-made Islamic financial products and solutions covering alternative investments focused on real estate and private equity, along with private wealth, asset management, and investment banking advisory.

In January, the bank disclosed the interim financial statement for the 12-month period ending Dec. 31, 2024. The financial statements revealed a net profit of 128,165 million in comparison to 94,388 million for the same period of the previous year.


Saudi Arabia’s real estate sector to maintain growth momentum in 2025

Saudi Arabia’s real estate sector to maintain growth momentum in 2025
Updated 20 min 48 sec ago
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Saudi Arabia’s real estate sector to maintain growth momentum in 2025

Saudi Arabia’s real estate sector to maintain growth momentum in 2025

RIYADH: Saudi Arabia’s real estate sector is expected to experience growth in 2025, fueled by the ongoing efforts of Vision 2030 to diversify the Kingdom’s economy, according to a recent analysis.

In its latest report, real estate services firm JLL highlighted that economic growth across the Gulf Cooperation Council is expected to remain strong in 2025, with Saudi Arabia leading the charge. The Kingdom’s non-oil sector is projected to expand by 5.8 percent in 2025, an increase from 4.5 percent in 2024.

JLL also noted that Saudi Arabia’s construction sector continued to perform well in 2024, with project awards totaling $29.5 billion.

A strong real estate market is critical for the Kingdom as it works to position itself as a global hub for tourism and business, reducing its long-standing dependence on oil revenues.

The Real Estate General Authority of Saudi Arabia forecasts the property market to reach $101.62 billion by 2029, with a compound annual growth rate  of 8 percent starting in 2024.

Saud Al-Sulaimani, country head of JLL, Saudi Arabia, said: “Despite global economic headwinds, the resilience and strategic diversification efforts in Saudi Arabia, driven by Vision 2030, are a significant catalyst for real estate development, attracting both domestic and international capital.”

He added: “The flight to quality, limited vacancy in prime assets, and ambitious tourism strategies are further bolstering sustained demand across key sectors, particularly in Riyadh and Jeddah, creating a compelling investment landscape for the long term.” 

According to the report, the hospitality, mixed-use, and leisure sectors saw substantial activity, while the residential sector also performed strongly, with $7.9 billion in awards in 2024.

JLL pointed out several challenges faced by Saudi Arabia’s real estate sector, including capacity constraints, rising costs, and geopolitical conflicts.

The report emphasized that the Kingdom is tackling these challenges through increased localization efforts, ongoing infrastructure investment, and digital transformation. Additionally, regulatory reforms, improved stakeholder collaboration, and a focus on renewable energy and sustainability are key strategies to overcome these obstacles.

“Strategic projects that underpin Saudi Arabia’s Vision 2030 will continue to attract substantial investments, creating new opportunities for market expansion,” said Maroun Deeb, head of projects and developments for JLL in Saudi Arabia. 

He added: “Significant cash flow is anticipated for major events like the FIFA World Cup 2030 and EXPO 2030, further boosting infrastructure development and positioning the real estate sector for robust performance and positive growth in 2025 and beyond.”

In 2024, Riyadh’s office sector witnessed strong demand, while limited supply saw Grade A buildings registering a mere 0.2 percent vacancy. 

The analysis added that average rents for Grade A office spaces stood at $609 per sq. meter by the end of the fourth quarter of 2024. 

Grade A office spaces command a premium due to their prime location, infrastructure, and modern amenities.

JLL revealed that 326,000 sq. meters of gross leasable area was added to the market in 2024, while 888,600 sq. meters are awaiting in the pipeline in 2025. 

“Jeddah is emerging as a compelling alternative, attracting regional and international corporations to its modern, high-quality office spaces in the northwestern region. Dammam’s market remains stable, primarily driven by government entities,” added JLL. 

In Riyadh’s residential sector, villas continued to dominate, accounting for 53.3 percent of the overall transactions. 

Even though 28,943 units are slated for 2025 in Riyadh, new supply lags will likely drive price and rental increases. 

According to JLL, Riyadh’s hospitality industry witnessed significant growth in 2024, with average daily rates surging by 13.3 percent year on year to $239. 

The report added that Riyadh’s growth as a key business and leisure hub will continue, with 2,312 keys expected in 2025.

“As Saudi Arabia progresses with its Vision 2030 objectives, Riyadh’s hospitality market is likely to play a crucial role in supporting the Kingdom’s broader economic goals and establishing itself as a key destination for both business and leisure travelers in the region,” said JLL. 

Jeddah’s hospitality landscape, bolstered by religious and leisure tourism, also remained strong in 2024. 

The report added that upward rental rates in Riyadh and Jeddah’s industrial and logistics sectors indicate strong market activity and robust demand for enhanced logistics and warehousing capabilities. 

Regarding the data center landscape, JLL said that 5G and artificial intelligence are driving the segment’s growth. 

“Saudi Arabia, particularly Riyadh, Dammam, and Jeddah, boasts a significant data center footprint. The Kingdom ranks third in live colocation data center facilities and contributed approximately 12.6 percent of the region’s 1,050 MW operational IT load capacity by the end of 2024, positioning it well for further expansion,” concluded JLL. 


Saudi CMA moves to improve debt issuance governance for SPEs

Saudi CMA moves to improve debt issuance governance for SPEs
Updated 27 March 2025
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Saudi CMA moves to improve debt issuance governance for SPEs

Saudi CMA moves to improve debt issuance governance for SPEs

RIYADH: Saudi Arabia’s Capital Market Authority is seeking to improve the governance of Special Purpose Entities to increase their attractiveness for issuing debt instruments and acting as investment units.

SPEs, established and licensed by the CMA, are independent financial and legal entities created for specific financing purposes, dissolving once their objectives are met. 

The CMA’s newly proposed amendments seek to expand the range of eligible issuers while ensuring alignment with existing regulations.

The changes would also enable SPEs to offer debt instruments through exempt offerings, complementing the existing public and private issuance frameworks. 

This move aligns with the regulator’s goals of developing the sukuk and debt instruments market while supporting the growth of the asset management industry. 

“The draft will also support the deepening of the sukuk and debt instruments market and the diversification of issuances by expanding the range of debt issuers through Special Purpose Entities, which in turn will contribute to enhancing liquidity and creating new investment opportunities,” the CMA said in a statement. 

SPE adoption has surged in recent years, with the number of entities more than doubling from 464 in 2018 to 945 by the end of 2024. 

The newly released CMA draft reveals that among the amendments aimed at broadening the scope of issuers is the authorization for SPEs to conduct securitization transactions. 

It also aims to streamline governance by clarifying the responsibilities of directors and fund managers within an entity’s by-laws, particularly for funds structured as SPEs. 

Additionally, the reforms aim to strengthen SPE governance by requiring that the trustee be a legal entity, enhancing provisions for trustee removal, ensuring board members’ independence from the sponsor and originator, and simplifying the entity’s dissolution procedures. 

Earlier this week, the CMA proposed easing investor criteria for Nomu, the Kingdom’s parallel market, to expand participation and enhance liquidity. 

The amendments included reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period while eliminating the quarterly trading activity requirement.

Additionally, under the new regulations, board and committee members of Nomu-listed companies would qualify as eligible investors. 


Kuwait passes borrowing law to rejoin global debt markets after 8 years

Kuwait passes borrowing law to rejoin global debt markets after 8 years
Updated 27 March 2025
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Kuwait passes borrowing law to rejoin global debt markets after 8 years

Kuwait passes borrowing law to rejoin global debt markets after 8 years

RIYADH: Kuwait is set to return to international debt markets after an eight-year absence, following the approval of a long-awaited public borrowing law aimed at addressing fiscal pressures and financing infrastructure projects. 

According to the Ministry of Finance, the law allows the government to issue up to 30 billion Kuwaiti dinars ($98 billion) in debt instruments, either in local or major foreign currencies, with maturities of up to 50 years — the longest-term legal framework the country has ever established for managing public debt. 

Since its debt law expired in 2017, Kuwait has been unable to issue sovereign bonds. Fitch Ratings noted earlier this month that passing the financing and liquidity law will boost fiscal flexibility, although the government has so far met its financing needs through substantial assets. 

Finance Minister and Minister of State for Economic Affairs and Investment, Noura Suleiman Salem Al-Fassam, said the law marks a strategic shift that will enhance Kuwait’s ability to meet financial obligations and support long-term growth. 

“This law gives Kuwait greater financial flexibility by providing the option to access both local and global financial markets to enhance liquidity management. This law supports government efforts to strengthen financial stability and drive economic development in line with Kuwait Vision 2035,” she added. 

The law is expected to stabilize liquidity, reduce borrowing costs, and strengthen Kuwait’s debt management strategy. 

Faisal Al-Muzaini, director of public debt at the Ministry of Finance, said it would introduce multiple financial instruments, allowing the state to secure financing through bonds, sukuk, or other market tools. 

“Developing the local debt markets enhances Kuwait’s competitiveness as a regional financial center and provides the government with new financial tools to manage public finances efficiently,” Al-Muzaini added. 

The law addresses a long-standing challenge in financing major infrastructure and development projects. It is also expected to stimulate liquidity and encourage greater private sector participation in financing activities. 

The ministry emphasized that this legislative step underscores Kuwait’s commitment to sustainable fiscal policy, balancing development financing with debt sustainability. 

The government also expects the law to improve Kuwait’s sovereign credit profile and enhance financial stability by ensuring liquidity under varying economic conditions. 

Kuwait’s budget for the next fiscal year, which runs from April 1, 2025, to March 31, 2026, projects a $22.44 billion deficit, with $59.10 billion in revenue and $79.54 billion in expenditure.


Saudi Aramco maintains propane, butane prices for April

Saudi Aramco maintains propane, butane prices for April
Updated 27 March 2025
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Saudi Aramco maintains propane, butane prices for April

Saudi Aramco maintains propane, butane prices for April

RIYADH: Saudi Aramco kept the April’s official selling prices for propane and butane unchanged from the previous month, according to a statement released on Thursday.

The prices are set at $615 per tonne for propane and $605 per tonne for butane.

Both propane and butane are types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as feedstock in the petrochemical industry. Although similar, these gases have different boiling points, making them suitable for a range of specific applications.

Aramco’s OSPs for LPG serve as important benchmarks for contracts supplying these products from the Middle East to the Asia-Pacific region.

Propane demand typically peaks in the winter months, as it is a key source of home heating, and this seasonal increase often drives up prices.

The fluctuations in price are a direct reflection of supply and demand dynamics.

Last month, the Saudi company slashed OSP for propane by $20 per tonne while butane prices were dropped by $20 to $605 a tonne.