Saudi-Djibouti committee holds 6th session in Riyadh to boost trade ties
Saudi-Djibouti committee holds 6th session in Riyadh to boost trade ties/node/2579893/business-economy
Saudi-Djibouti committee holds 6th session in Riyadh to boost trade ties
海角直播鈥檚聽Minister of Transport and Logistic Services Saleh聽Al-Jasser, and Djibouti鈥檚 Minister for Foreign Affairs and International Cooperation Mahamoud Ali Youssouf. SPA
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Updated 19 November 2024
Reem Walid
Saudi-Djibouti committee holds 6th session in Riyadh to boost trade ties
Updated 19 November 2024
Reem Walid
RIYADH: Logistical, trade, and investment ties between 海角直播 and Djibouti are set to grow stronger following the sixth session of their joint committee, held in Riyadh on Nov. 18.
The meeting was chaired by Saudi Minister of Transport and Logistic Services, Saleh Al-Jasser, and Djibouti鈥檚 Minister for Foreign Affairs and International Cooperation, Mahamoud Ali Youssouf, according to the Saudi Press Agency.
In his opening remarks, Al-Jasser emphasized the deep-rooted ties between the two nations, noting that the discussions were just the beginning of efforts to further enhance trade and investment across vital sectors, particularly logistics.
He highlighted the significant progress in bilateral trade, which reached approximately SR7 billion ($1.86 billion) in 2023, marking an important step toward sustainable growth and stronger economic ties between 海角直播 and Djibouti.
Al-Jasser pointed out that these figures serve as a foundation for deepening trade cooperation, noting that the previous session of the joint committee had already laid the groundwork for expanded collaboration.
The continued growth of trade between the two countries is reflected in the ongoing efforts to build more robust economic partnerships.
Earlier in August, the two nations agreed to launch a maritime initiative to strengthen trade connections. This initiative includes the establishment of new shipping lines designed to boost connectivity with East African markets, which serve a consumer base of around 500 million people.
A centerpiece of the partnership is the Saudi Logistics City, planned for development within Djibouti's Free Zone. This ambitious project, formalized through a contract signed in June, aims to facilitate the export of Saudi products to East Africa and further strengthen economic relations. The 92-year agreement, which covers an initial 120,000 sq. meters, is expected to have a transformative impact on both countries鈥 economies, fostering long-term growth and collaboration.
The ongoing efforts between 海角直播 and Djibouti are poised to significantly enhance bilateral trade, investment, and regional connectivity, marking a promising chapter in their economic partnership.
Closing Bell: Saudi TASI closes lower at 11,163 amid mixed performance
MSCI Tadawul 30 Index slipped 0.36% to end at 1,428.86
Parallel market Nomu rose 0.34% to finish at 27,341.63
Updated 7 sec ago
NOUR EL-SHAERI聽聽聽
RIYADH: 海角直播鈥檚 Tadawul All Share Index fell 0.35 percent to close at 11,163.96 on Monday, weighed by losses in several blue-chip stocks.
Trading activity remained robust, with turnover reaching SR7.3 billion ($1.9 billion), with the market recording 118 advancers versus 133 decliners.
The MSCI Tadawul 30 Index slipped 0.36 percent to end at 1,428.86, while the parallel market Nomu rose 0.34 percent to finish at 27,341.63.
Fawaz Abdulaziz Alhokair Co. led the main market gainers with a 9.96 percent rise to SR24.62.
National Metal Manufacturing and Casting Co. followed with a 9.29 percent gain, closing at SR16.83.
Other notable performers included Buruj Cooperative Insurance Co., which advanced 7.40 percent to SR18.00, and The Mediterranean and Gulf Insurance and Reinsurance Co., up 7.16 percent at SR20.06.
On the downside, Al Maather REIT Fund recorded the steepest decline, falling 3.33 percent to SR9.01.
Etihad Etisalat Co. dropped 3.10 percent to SR59.30, while MBC Group Co. slipped 2.99 percent to SR35.70. Rasan Information Technology Co. also retreated 2.69 percent to close at SR86.90.
On the announcement front, ACWA Power Co. released details regarding its planned capital increase through a rights issue.
The company set the offering price at SR210 per share, with a total of 33,928,570 new shares to be issued.
Following the offering, ACWA Power鈥檚 capital will rise from SR7.33 billion to SR7.66 billion, increasing the total number of shares to 766,490,498.
The transaction represents 4.63 percent of the issuer鈥檚 existing capital and is valued at SR7.12 billion.
ACWA Power said the proceeds will support its strategy to triple the assets under management by 2030 and strengthen its financial position.
Eligibility for the rights issue will apply to shareholders registered at the end of the second trading day following the date of an extraordinary general assembly.
ACWA Power shares closed up 4.07 percent on Monday at SR256.00, with over 1.1 million shares traded.
PIF assets rise 18% to $1.15tn as portfolio firms drive growth聽
Updated 36 min 27 sec ago
Nirmal Narayanan
RIYADH: 海角直播鈥檚 Public Investment Fund boosted its total assets to SR4.32 trillion ($1.15 trillion) by the end of 2024, an 18 percent increase compared to the previous year, according to a disclosure filed with the London Stock Exchange.
The sovereign wealth fund reported gross revenues of SR413 billion for 2024, reflecting a 25 percent year-on-year rise. This growth was fueled by solid performance across several portfolio companies, including Savvy, Ma鈥檃den, stc, Saudi National Bank, AviLease, and Gulf International Bank, as well as dividend income from Saudi Aramco.
PIF, often described as the financial engine of 海角直播, plays a central role in advancing the Kingdom鈥檚 Vision 2030 goals to diversify the economy and reduce dependency on oil income.
鈥淟ong-term projects, that are beginning to mature, are also now generating significantly more revenue,鈥 the disclosure document stated.
Despite global macroeconomic challenges such as high interest rates, inflationary pressure, and select asset impairments, the fund reported a net profit of SR26 billion in 2024.
The filing clarified that the impairments were 鈥減rimarily related to changes to operational plans and increases in budgeted costs and represent less than a 2 percent reduction in total assets.鈥
PIF鈥檚 cash reserves held steady at SR316 billion, while loans and borrowings rose modestly to SR570 billion, reflecting continued diversification of its funding sources via international capital markets.
In 2024, the fund issued $2 billion in dollar-denominated sukuk and launched its first-ever sterling bond worth 拢650 million ($825.5 million). It also refinanced a $15 billion revolving credit facility, underlining market confidence in its creditworthiness and long-term investment outlook.
PIF鈥檚 debt ratio remained unchanged at 13 percent by the end of the year, the disclosure noted.
鈥淥ver 2024, PIF continued to advance its position as one of the world鈥檚 most impactful investors, while driving economic transformation in 海角直播,鈥 the document added.
It highlighted strategic progress in sectors such as leisure and tourism, industrial capabilities, capital markets, and the development of new industries.
Among standout performers, AviLease recorded a 350 percent surge in net profit to SR228 million and a 306 percent rise in revenue to SR2.1 billion. The aircraft leasing company expanded its fleet to 189 aircraft, comprising 163 owned, 22 managed, and four on order.
Meanwhile, Alat 鈥 another PIF-backed firm 鈥 invested SR401 million to establish an AI-driven robotics manufacturing facility in the Kingdom through a joint venture with SoftBank Robotics.
Riyadh leads 海角直播鈥檚 commercial real estate growth with 23% rise in office rents
Average rents for office spaces in Riyadh saw an annual rise of 23%
Jeddah鈥檚 total office stock is expected to rise 1.8 million sq. meters by 2027
Updated 30 June 2025
Nirmal Narayanan
RIYADH: 海角直播鈥檚 commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom鈥檚 capital reaching SR2,700 ($719.95) per sq. meter by the end of March, an analysis showed.
In its latest report, global real estate consultancy Knight Frank said average rents for office spaces in Riyadh witnessed an annual rise of 23 percent by the end of the first quarter, driven by the success of government-led initiatives, including the ambitious regional headquarters program.
Strengthening the real estate sector is one of the key goals outlined in 海角直播鈥檚 Vision 2030 agenda, as the nation aims to position itself as a leading business and tourism destination by the end of the decade.
The Kingdom鈥檚 Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
海角直播鈥檚 regional headquarters program offers benefits to international firms, including a 30-year exemption from corporate income tax. File/SPA
鈥満＝侵辈モ檚 economic momentum continued to strengthen across key sectors in 2024, underpinned by rising private sector activity,鈥 said Faisal Durrani, partner 鈥 head of research for the Middle East and North Africa at Knight Frank.
According to the report, the Kingdom鈥檚 Grade A office rents witnessed an occupancy level of 98 percent by the end of March.
Grade B rents grew by 24 percent year on year by the end of the first quarter, while the occupancy level of these spaces stood at 97 percent.
Grade A office spaces command higher rents than the area average, thanks to their prime locations, modern infrastructure, and newer construction.
In contrast, Grade B office spaces are more affordable, offering a lower-cost alternative to Grade A units.
Average daily rate in Madinah reached SR891 by the end of the first quarter. File/SPA
The report further said that around 600 companies have announced plans to establish their regional headquarters by the end of February, significantly boosting demand for prime office spaces.
海角直播鈥檚 regional headquarters program offers benefits to international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as discounts and support services.
鈥淎 total of 14,303 foreign business investment licenses were issued during 2024, a 67 percent increase from 2023, marking the highest annual figure on record and underscoring the sustained appeal of 海角直播 to global corporates and investors,鈥 said Durrani.
The analysis added that Jeddah is also experiencing significant growth in the commercial real estate sector, with both Grade A and Grade B occupancies reaching 95 percent by the end of March.
Knight Frank said Grade A office rents in Jeddah reached SR1,280 per sq. meter, marking a 4 percent year-on-year growth, while Grade B office rents grew by 6 percent to reach SR845 per sq. meter.
Jeddah鈥檚 total office stock is expected to rise from 1.6 million sq. meters this year to 1.8 million sq. meters by 2027.
鈥淎s more companies expand their footprint across 海角直播, Jeddah is attracting a growing number of regional and local firms. This rising interest is being supported by a healthy office development pipeline,鈥 said James Hodgetts, partner 鈥 occupier strategy and solutions at Knight Frank.
The Saudi Real Estate General Authority expects the property market to reach $101.62 billion by 2029. Saudipedia
He added: 鈥淯pcoming projects include Jeddah Gate, which is expected to deliver 230,000 sq. meters between 2025 and 2028, and Jeddah Rose, a mixed-use development bringing 25,000 sq. meters of office space to the market by the end of 2025.鈥
In May, Jeddah Municipality announced 29 new investment opportunities spanning over 1.4 million sq. meters, targeting sectors including commercial, industrial, residential, and recreational.
The package includes 13 commercial opportunities featuring the development and operation of retail shops and commercial complexes across various districts.
In April, a separate report released by credit rating agency S&P Global said that the Kingdom鈥檚 retail real estate market is poised for growth in the near term, driven by population growth, expanding tourism, and economic diversification efforts under the Vision 2030 initiative.
S&P Global added that ongoing mega projects and the expansion of international brands are expected to propel further demand for retail space nationwide.
Hospitality overview
According to the study, the average daily rate in 海角直播鈥檚 hospitality sector increased by 10.8 percent year on year by the end of March, while revenue per available room increased by 12.3 percent during the same period.
Growth of the Kingdom鈥檚 hospitality sector was largely driven by gains in the nation鈥檚 holy cities and Riyadh. File/SPA
The report said the growth of the Kingdom鈥檚 hospitality sector was largely driven by gains in the nation鈥檚 holy cities and Riyadh.
In the first quarter of 2025, ADR in Makkah rose by 28.9 percent year on year to SR859, while RevPAR was up by 35.7 percent to SR673.
Citing data from the Ministry of Hajj, Knight Frank said the surge in performance in Makkah reflected heightened demand linked to the rise in issued Umrah visas, which grew by 8.3 percent.
With more than 8,500 rooms under construction across 12 hotel developments, Makkah鈥檚 total inventory is set to increase from 63,428 to 71,643 rooms by 2027, the report added.
According to the analysis, ADR in Madinah reached SR891 by the end of the first quarter, representing an 11.8 percent year-on-year rise, while RevPAR rose by 15.1 percent to SR724.
Madinah currently has 20,673 hotel rooms, and an additional 2,100 keys are expected to be delivered by 2027. Major international operators continue to expand their presence, including Hilton and Marriott, with planned openings totaling over 6,000 rooms.
Rua Al-Madinah, a new giga-project situated east of the Prophet鈥檚 Mosque, is also poised to reshape the hospitality landscape, with over 47,000 planned hotel rooms.
鈥淭hese latest figures point to resilient demand amid limited new supply and further highlight Madinah鈥檚 pricing strength,鈥 said Amar Hussain, associate partner 鈥 research, Middle East at Knight Frank.
Jeddah is also experiencing significant growth in the commercial real estate sector. File/SPA
He added: 鈥淧ilgrim arrivals in the city are expected to reach 30 million by 2030, up from 17.3 million in 2025, reflecting the city鈥檚 growing role as a global hub for religious tourism.鈥
Data Centers
Knight Frank said 海角直播 is positioning itself as the Middle East鈥檚 leading data hub, with plans to grow its data center market from $1.78 billion in 2023 to $3.2 billion by 2029, representing a compound annual growth rate of 10.1 percent.
The report noted that 海角直播鈥檚 total IT capacity is expected to increase from around 250-300 megawatts in 2024 to more than 1,000-MW by 2030, driven by strategic government initiatives and substantial investment in digital infrastructure.
During the LEAP 2025 conference in February, Cathy Mauzaize, US-based software firm ServiceNow鈥檚 president for Europe, the Middle East and Africa, said that the company is set to launch data centers in the Kingdom in 2026.
In the same month, Alfanar Global Development also announced a $1.4 billion investment plan to develop four world-class data centers in 海角直播.
Knight Frank added that all tier-one US cloud providers, including Microsoft, Amazon Web Services, Google Cloud, and Oracle, have either launched operations or announced further expansions in the Kingdom.
Amazon Web Services alone has committed $5.3 billion to scale up its cloud services across key cities.
Chinese firms such as Alibaba Cloud and Huawei Cloud have also established a local presence.
鈥満＝侵辈 is now the fastest growing market for data centers as the country continues its drive toward national digitalization,鈥 said Stephen Beard, global head of data centers at Knight Frank.
He added: 鈥淭he Kingdom鈥檚 development of data center infrastructure has been driven largely by adoption of public cloud and sustained public and private investment, transforming it into one of the top five global AI superpowers 鈥 evident in the recent launch of the $100 billion Transcendence AI Initiative.鈥
海角直播 launched Project Transcendence in November, a $100 billion AI initiative aimed at building data centers, supporting startups, and developing infrastructure.
The initiative promises to bring together expertise, infrastructure, and innovation to position the Kingdom at the forefront of AI advancements.
Saudi banks post 5.4% loan growth in Q1 as lending accelerates
Alvarez & Marsal report says growth primarily driven by 7.5% increase in corporate lending
Loan-to-deposit ratio climbed to 106.1%, up from 104.7% in the previous quarter
Updated 52 min 28 sec ago
Nour El-Shaeri
RIYADH: Net loans and advances across the 海角直播鈥檚 10 largest listed banks rose by 5.4 percent in the first quarter of 2025, underscoring robust lending momentum at the start of the year.
According to Alvarez & Marsal鈥檚 latest KSA Banking Pulse report, this growth was primarily driven by a 7.5 percent increase in corporate lending, which continues to represent more than half of total gross loans.
The banking sector鈥檚 strong start reflects the wider strength of 海角直播鈥檚 economic transformation efforts. Resilient credit growth signals sustained confidence among borrowers, particularly within the corporate sector, where demand for financing remains high amid ongoing large-scale infrastructure and development projects.
Meanwhile, the loan-to-deposit ratio climbed to 106.1 percent, up from 104.7 percent in the previous quarter, marking its highest level in recent times as credit expansion outpaced deposit growth.
Deposits rebounded by 4 percent after a decline in the prior quarter, supported by an 8.1 percent increase in time deposits.
The report also noted a 3.2 percent rise in operating income quarter on quarter, buoyed by a 9.6 percent surge in non-interest revenue from trade finance, foreign exchange, and investment gains.
Saudi Central Bank says Kingdom鈥檚 bank outstanding loan portfolio rose to SR3.13 trillion at the end of April. File/Asharq Al-Awsat
Sam Gidoomal, managing director and head of Middle East Financial Services at A&M, commented: 鈥淪audi banks are entering a new strategic phase marked by stronger capital stewardship and a focus on unlocking liquidity through innovation 鈥 from potential mortgage securitization to targeted portfolio rebalancing.鈥
鈥淭his financial agility, combined with solid credit growth and cost control, positions the sector to actively support Vision 2030 priorities and channel capital toward infrastructure and giga-projects,鈥 he added.
Cost discipline was evident across the sector, as operating expenses fell by 1.7 percent, contributing to a 149 basis point improvement in the cost-to-income ratio to 29.8 percent.
Aggregate net income increased 6.3 percent to SR22.2 billion ($5.9 billion), while return on equity strengthened by 44 basis points to 15.3 percent and return on assets edged up to 2.1 percent.
The strong quarterly performance detailed in A&M鈥檚 KSA Banking Pulse coincides with a broader surge in credit expansion across the sector.
According to data from the Saudi Central Bank, the Kingdom鈥檚 bank outstanding loan portfolio rose to SR3.13 trillion at the end of April, reflecting a 16.51 percent increase over the past year and marking the fastest annual growth rate since mid-2021.
The data shows that approximately SR443 billion in new credit was issued over the past 12 months, highlighting how the Kingdom鈥檚 project-driven growth model is reshaping bank balance sheets. Real estate developers remain the largest borrowers, accounting for 21.77 percent of total corporate credit.
The analysis further underscored that impairment charges declined by 15.8 percent, alleviating margin pressures associated with interest rate normalization.
Non-interest income rose to 23 percent of total operating income in the first quarter, signaling progress in revenue diversification.
The cost of risk improved to 0.27 percent, down from 0.34 percent in the prior quarter, while the capital adequacy ratio remained robust at 19.3 percent.
Yield on credit moderated to 8 percent in the first quarter, down from 8.4 percent in the prior period, while the cost of funds declined to 3.3 percent.
The net interest margin edged slightly lower to 2.87 percent from 2.94 percent, reflecting ongoing margin pressures amid interest rate normalization.
The coverage ratio decreased to 154.8 percent, and operating income relative to total assets remained stable at 3.6 percent. Return on risk-weighted assets was unchanged at 2.7 percent quarter on quarter.
Asad Ahmed, A&M managing director, Financial Services, added: 鈥淭he uptick in lending and deposit mobilization reflects improving business confidence and a rebalancing of liquidity across the sector.鈥
鈥淲hile margin pressures persist amid interest rate normalization, the decline in impairments and growth in fee-based income indicate that banks are diversifying their revenue streams and adapting effectively to the evolving environment,鈥 he added.
Saudi Ministry of Energy, UN ink deal to propel regional emissions cooperation聽
Deal seeks to support MENA nations promote clean energy technologies
Updated 47 min 56 sec ago
Reem Walid
RIYADH: Middle East and North Africa countries are set to benefit from enhanced clean energy cooperation following an agreement between 海角直播 and the UN Environment Programme to accelerate emissions reduction.
The memorandum of understanding, signed in Riyadh by Energy Minister Prince Abdulaziz bin Salman and UNEP Executive Director Inger Andersen, seeks to support MENA nations through the promotion of clean energy technologies, development of climate policy frameworks, and knowledge exchange to advance sustainable development, according to an official release.
The initiative aligns with 海角直播鈥檚 Middle East Green Initiative, a regional platform launched to combat climate change and reduce emissions by over 60 percent from hydrocarbon production across participating countries. The initiative aims to cut 670 million tonnes of carbon dioxide, equivalent to 10 percent of global nationally determined contributions when first announced in 2021.
The ministry release stated: 鈥淭he MoU reflects shared goals to enhance resource efficiency and lower carbon emissions through a comprehensive, balanced and sustainable approach.鈥
It added: 鈥淎reas of cooperation include policy research and recommendations, partnerships with international organizations, participation in climate and CCE-related events, exchange of knowledge and best practices, and the development of climate policy frameworks, supported by regional and global climate networking activities.鈥
Minister of Energy and Executive Director of the United Nations Environment Programme (UNEP) sign an MoU to enhance regional collaboration on emissions reduction and promote climate action at the international level.
鈥 賵夭丕乇丞 丕賱胤丕賯丞 (@MoEnergy_Saudi)
During the meeting, the two sides also held talks over advancing the objectives of the UN Framework Convention on Climate Change and the Paris Agreement.
鈥淭he two sides also discussed 海角直播鈥檚 climate initiatives, including the Saudi Green Initiative and the Middle East Green Initiative, as well as other efforts undertaken by the Kingdom to expand renewable energy and reduce emissions through the Circular Carbon Economy framework,鈥 the release added.
The MoU supports wider regional efforts to unlock renewable potential. MENA currently contributes less than 8 percent of global emissions from power and heat generation and is aiming to grow its clean energy capacity from under 50 gigawatts in 2022 to 200 GW by 2030, according to a June 2024 report by the International Energy Agency.
The IEA report also highlighted that the region 鈥 led by 海角直播, Egypt, and Algeria 鈥 is experiencing the fastest relative growth in renewable energy, scaling at 4.5 times its current base due to ambitious national targets.
The MENA region holds substantial hydrocarbon reserves alongside significant renewable energy potential, positioning it as a strategically important player in the global shift toward sustainable energy, according to the Natural Resource Governance Institute.
Governments across the region are adopting a dual-energy strategy 鈥 leveraging both fossil fuels and renewables 鈥 to reduce emissions while bolstering energy security.
Enhanced regional collaboration is critical to developing interconnected energy systems, boosting economic competitiveness, and securing reliable access to international energy markets.
