King Abdulaziz Port in Dammam achieves record monthly throughput
Updated 06 February 2024
ARAB NEWS
RIYADH: Saudi Arabia’s maritime sector is witnessing significant growth, with the King Abdulaziz Port in Dammam achieving its highest monthly throughput in January, handling 215,179 twenty-foot equivalent units.
The facility has surpassed its previous record, set in July 2023 when it processed 211,202 TEUs, the Saudi Press Agency reported.
This underscores the port’s pivotal role in advancing the maritime sector, enhancing logistics services, supporting national imports and exports, and contributing to raising the Kingdom’s rank in international standings.
It also signifies the success of development projects and their anticipated impact on increasing container throughput, enhancing the port’s competitive capacity, and expanding communication channels with international ports.
Furthermore, these achievements align with the Saudi Ports Authority’s ongoing efforts to strengthen the Kingdom’s leadership in the maritime sector, maximize its capabilities, and enhance its economic and developmental role. This is in line with the National Transport and Logistics Strategy.
Additionally, these advancements are the outcome of initiatives spearheaded by the authority, also known as Mawani, in collaboration with the strategic partner Saudi Global Ports and various other partners, including national and international operating companies at King Abdulaziz Port in Dammam.
The goal is to transform it into a leading harbor with long-term sustainability objectives, emphasizing automation, digitization, and an integrated supply chain.
In October, it was announced that the facility is set to receive a fully integrated logistics park worth SR1 billion ($266 million).
Mawani signed a contract agreement with Saudi Global Ports to construct the park spanning 1 million sq. meters, as reported by SPA at the time.
According to Mawani President Omar Hariri, the deal falls within the authority’s efforts to expand the number of logistics parks within Saudi ports to 12.
The expansion is expected to propel the Kingdom’s position in the global logistics services performance index, moving from 38th to 10th place, he stated.
In alignment with the National Strategy for Transport and Logistics Services and Vision 2030, the announced development aimed to bolster the logistics sector’s role in supporting the national economy, reinforcing Saudi Arabia’s status as a global logistics hub connecting three continents.
RLC Global Forum to address the future of Saudi Arabia’s retail landscape
Updated 12 sec ago
Nadin Hassan
RIYADH: Over 100 speakers from more than 600 organizations will convene at the Retail Leaders Circle Global Forum 2025 in Saudi Arabia to discuss collaboration amid digital innovation and economic reforms.
The two-day event, taking place from Feb. 4-5 at the Fairmont Hotel in Riyadh, will bring together industry executives, policymakers, and investors to explore strategies for navigating a rapidly changing retail landscape.
Themed “Rebuilding a Shared Future,” the event aims to address how the sector can rebuild trust and cooperation while adapting to digital transformation, shifting consumer behaviors, and new regulatory frameworks.
This year’s forum comes as Saudi Arabia’s retail sector continues to show strong resilience and sustained growth, with total sales reaching SR37.4 billion ($9.97 billion) in the third quarter of 2024, despite ongoing global economic uncertainties.
Retail sales in the Kingdom are forecast to reach $161.4 billion by 2028, according to data platform Statista, while the e-commerce sector is projected to surpass $13.2 billion by 2025.
“Saudi Arabia’s Vision 2030 is really shaking up the retail sector, and we’re seeing exciting changes across the board,” said Panos Linardos, chairman of the RLC Global Forum, in an interview with Arab News.
He pointed out that retail is a key pillar of the Kingdom’s diversification efforts, and “it’s evolving rapidly with digital transformation, regulatory changes, and shifting consumer expectations.”
Linardos added: “There’s a lot of opportunity ahead, but also some challenges that need to be tackled to fully unlock the sector’s potential. That’s where the RLC Global Forum comes in.”
RLC is an invitation-only platform that brings together industry leaders, policymakers, and innovators to discuss key issues shaping the retail sector.
Some of the partners involved include Diriyah Co., Apparel Group, and Cenomi Centers, the largest owner, operator, and developer of contemporary lifestyle centers in Saudi Arabia.
Chalhoub Group, and Panda Retail Co. are also set to attend.
Panos Linardos, chairman of the RLC Global Forum. Supplied
The event provides data-driven research, thought leadership, and best practice sharing, in line with Saudi Arabia’s Vision 2030, which seeks to diversify the economy and position the Kingdom as a global retail and business hub.
“Retailers in Saudi Arabia face several challenges, such as competition from cross-border e-commerce, changing consumer expectations, and regulatory complexities,” Linardo said.
To stay competitive, he added that retailers need to “embrace digital transformation, adopt omnichannel strategies, and use data to better understand and serve their customers.”
The Kingdom’s retail sector is experiencing significant growth and investment opportunities, driven by Vision 2030 and the accelerated digital transformation.
The demand for seamless shopping experiences and experiential retail concepts continues to rise, driving expansion in e-commerce, lifestyle destinations, and mixed-use developments.
“Mega-projects like NEOM, ROSHN, and Diriyah Gate are also fueling demand for high-end retail and hospitality-focused shopping experiences, making the market even more attractive,” Linardos said.
The forum chairman mentioned that the growing focus on smart retail solutions, AI-driven insights, and sustainable practices is creating new opportunities for forward-thinking investors.
Strengthening investment climate
Saudi Arabia’s retail sector continues to attract international investors, supported by progressive economic reforms and policies aimed at fostering a transparent and competitive market.
The Kingdom has made significant strides in streamlining regulations, enhancing investor protections, and reducing barriers to entry, creating an environment that encourages long-term growth and foreign direct investment.
“Saudi Arabia’s booming investment landscape is no accident. It’s the result of deliberate efforts to create a business-friendly and secure environment, supported by policies and reforms that align with global investment standards,” Linardos said.
He mentioned that the International Monetary Fund had described the new law as a game-changer, offering equal opportunities to both Saudi and foreign investors, along with stronger protections and clearer rules of engagement.
Linardos explained that the challenge now is getting the word out — building investor confidence and showcasing Saudi Arabia’s retail market as a high-potential, forward-thinking destination.
Future of retail innovation
The rapid integration of artificial intelligence, data analytics, and predictive modeling is transforming the global retail landscape, and Saudi Arabia is no exception.
RLC will also explore how businesses can leverage AI to optimize operations, enhance customer engagement, and drive new business models.
“Innovation and technology are reshaping Saudi Arabia’s retail sector in a big way. AI and e-commerce are no longer just buzzwords — they’re driving real change,” Linardos said.
He pointed out that AI is providing businesses with deeper insights into consumer behavior, enhancing inventory management, and enabling more personalized marketing.
“At the same time, e-commerce is making shopping more convenient and accessible, with digital payment solutions and omnichannel strategies creating seamless experiences that meet rising customer expectations,” Linardos added.
The chairman further highlighted that for retailers, integrating advanced technologies is no longer optional but a necessity in an increasingly competitive and fast-evolving market.
In essence, he added, businesses that embrace innovation early can unlock new growth opportunities, expand their customer reach, and strengthen their market position.
Unlocking full value
Saudi Arabia’s e-commerce sector is rapidly expanding, fueled by a digitally engaged population, rising consumer demand, and the government’s commitment to digital transformation, with Linardos noting the Kingdom’s emergence as one of the region’s most promising e-commerce markets.
Industry experts highlight the growing influence of social media, mobile commerce, and fintech solutions, which are reshaping how consumers shop and engage with brands.
“The Kingdom’s high social media engagement and widespread mobile use also make it a prime market for further e-commerce expansion and investment,” said Linardos.
However, he acknowledged that challenges persist, pointing out that “cross-border platforms dominate a large share of the market,” while traditional retail remains deeply embedded in consumer habits.
To fully realize Saudi Arabia’s e-commerce potential, industry leaders stress the importance of creating a balanced competitive landscape, strengthening omnichannel strategies, and integrating online and offline shopping experiences.
What’s next?
As Saudi Arabia’s retail sector undergoes transformation, Linardos expects the industry to move beyond traditional retail models in the coming years, placing greater emphasis on lifestyle-oriented concepts, integrated retail-tourism experiences, and cutting-edge digital innovations.
“The growth won’t just come from more stores or online platforms — it will come from creating unique, immersive experiences that blend culture, entertainment, and commerce in ways that haven’t been seen before in the region,” he added.
Linardos also explained that the challenge for retailers will be to remain flexible, embracing innovation while maintaining a strong local connection.
Those who can strike the right balance — leveraging technology, data, and customer insights — will not only grow but also redefine what retail means in Saudi Arabia, he said.
Pakistan Jan consumer inflation eases to 9-year low
Inflation rate fell to 2.4% year-on-year in January, statistics bureau says
Inflation rate is down from a multi-decade high of around 40% in May 2023
Updated 03 February 2025
Reuters
KARACHI: Pakistan’s consumer inflation rate fell to its lowest in more than nine years, dropping to 2.4% year-on-year in January, the statistics bureau said on Monday.
Inflation has cooled significantly, easing from 28.3% in January 2024.
Consumer prices in January rose 0.2% from the month before, according to the Pakistan Bureau of Statistics.
The South Asian country, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, is navigating an economic recovery. The IMF is set to review Pakistan’s progress by March, with the government and central bank expressing confidence about meeting its targets.
“Inflation is lower because of the statistical base effect, also supported by currency stability and lower food and energy prices,” said Adnan Sami Sheikh, assistant vice president of research at Pakistan Kuwait Investment Company.
Pakistan’s central bank cut its benchmark interest rate by 100 basis points to 12% last week, as inflation eases and growth looks set to pick up after 1,000 basis points of rate cuts over the last six months.
The State Bank of Pakistan has slashed rates from an all-time high of 22% last June, one of the most aggressive moves among central banks in emerging markets and exceeding its 625 bps of rate cuts in 2020 during the COVID-19 pandemic.
Pakistan’s consumer inflation rate fell to 4.1% in December, its lowest in more than six years, helped by favorable base effects. That was below the government’s forecast and down from a multi-decade high of around 40% in May 2023.
After the policy rate decision, central bank Governor Jameel Ahmad told a press conference that inflation would ease further in January but noted core inflation remained elevated.
He forecast full-year inflation in the year to June would average 5.5%-7.5%.
Umm Al Qura moves forward with IPO to fund $26bn Masar project in Makkah
Updated 03 February 2025
Miguel Hadchity
RIYADH: Saudi contractor Umm Al Qura for Development and Construction Co. is proceeding with an initial public offering on the main market to fund its SR100 billion ($26.6 billion) Masar Destination in Makkah.
According to a statement, the Capital Market Authority approved the company’s IPO application, allowing it to issue 130,786,142 new stocks, representing 9.09 percent of its post-capital increase shares.
Spanning 3.5 km, Masar is designed as a multi-use destination that will offer a variety of hospitality, residential, retail, and commercial spaces. The project will feature 41,000 keys across hotels, serviced apartments, and 9,000 residential units for sale.
“The net proceeds of the offering will be utilized to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures; in addition to other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing,” the statement said.
Masar’s retail and commercial elements will cover over 330,000 sq. meters, including a major shopping mall and retail centers. Additionally, the development will include a hospital, a mosque, office spaces, and transport infrastructure to enhance mobility and accessibility within Makkah.
Chairman of Umm Al Qura, Abdullah Saleh Kamel, said: “I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors.”
He added: “Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of Masar, a landmark project in the Kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximize shareholder value.”
Yasser Abuateek, CEO of Umm Al Qura, emphasized that the firm was established in 2012 to enhance Makkah’s urban and investment landscape through Masar.
“As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah,” he said.
Abuateek described the IPO as “a vote of confidence” in the company’s track record of growth to date, as well as its “commitment to building state-of-the-art urban destinations that create unparalleled experiences.”
Umm Al Qura’s major shareholders include the Public Investment Fund, the General Organization for Social Insurance, and Dallah Al-Baraka Holding.
Masar is set to become another major destination for residents and visitors, with 99.77 percent of the key infrastructure work already completed.
As of June 30, the company holds a strong financial position, with a capital base exceeding SR13.1 billion and additional bank facilities of over SR14 billion. The IPO is expected to attract significant interest from investors, given Makkah’s growing importance as a global religious and tourism hub.
Closing Bell: Saudi main index slips to close at 12,409
Parallel market Nomu lost 145.58 points, or 0.47%, to close at 31,105.07
MSCI Tadawul Index gained 1.59 points, or 0.10%, to close at 1,54561
Updated 02 February 2025
REEM WALID
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 5.62 points, or 0.05 percent, to close at 12,409.87.
The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 108 of the stocks advanced and 118 retreated.
The Kingdom’s parallel market, Nomu, lost 145.58 points, or 0.47 percent, to close at 31,105.07. This comes as 42 of the listed stocks advanced while 43 retreated.
The MSCI Tadawul Index, however, gained 1.59 points, or 0.10 percent, to close at 1,54561.
The best-performing stock of the day was Mutakamela Insurance Co., whose share price rose 9.74 percent to SR18.02.
Other top performers included Allied Cooperative Insurance Group and Saudi Arabian Cooperative Insurance Co. whose share prices gained 8.55 percent to SR16 and 7.71 percent to SR17.88, respectively.
Thimar Development Holding Co. recorded the most significant drop, falling 7.5 percent to SR53.
Saudi Arabian Amiantit Co. also saw its stock prices fall 5.77 percent to SR29.40.
CHUBB Arabia Cooperative Insurance Co. saw its stock prices decline 4.26 percent to SR54.
Multi Business Group Co. announced its annual financial results for the period ending Dec. 31.
According to a Tadawul statement, the company reported a net profit of SR10.5 million last year, reflecting a 19.06 percent increase compared to 2023.
The growth was driven by an 8 percent rise in total revenues, a 12 percent increase in gross profit, an 8 percent reduction in general and administrative expenses, and a 45 percent decrease in financing costs, despite a 161 percent surge in zakat expenses.
Multi Business Group Co. ended the session at SR18.80, up 10.43 percent.
Edarat Communication and Information Technology Co. announced its annual consolidated financial results for the period ending Dec. 31.
A bourse filing revealed that the firm recorded a net profit of SR24.6 million in 2024, reflecting a 41.98 percent rise compared to the previous year.
The jump is primarily linked to a 31 percent rise in gross profit, which reached SR45.3 million in 2024, compared to SR34.6 million in 2023. Moreover, administrative expenses, as a percentage of revenue, dropped from 19.07 percent in 2023 to 16.71 percent in 2024, further leveraging the growth in net profit.
Edarat ended the session at SR671, up 1.55 percent.
The National Shipping Co. of Saudi Arabia announced its interim financial results for the period ending Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR2.16 billion in 2024, up 34.45 percent compared to 2023.
The rise is owed to a surge in gross profit by SR627 million and an increase in the firm’s share in results of equity accounted investees by SR166 million. The increase in net profit was partially reduced by a decline in other income and a rise in general and administrative expenses compared to the same period last year.
National Shipping Co. of Saudi Arabia ended the session at SR29.95, down 0.67 percent.
Bank AlJazira has announced its annual financial results for the period ending Dec. 31. A bourse filing revealed that the firm recorded a net profit of SR1.23 billion in 2024, up 20.69 percent compared to 2023.
The bank ended the session at SR18.68, down 3.08 percent.
Saudi Awwal Bank also announced its annual financial results for the same period. According to a Tadawul statement, the firm recorded a net profit of SR8.07 billion in 2024, up 15.25 percent compared to 2023. This rise is due to a surge in total operating income, partially offset by a jump in total operating expenses and tax charges.
The bank ended the session at SR36.40, up 1.95 percent.
Saudi Electricity to settle $1.5bn in historical obligations to the state
Disputed amounts are related to technical discrepancies in quantities, prices, and handling costs of fuel and electric power
Second resolution was issued to include the settlement liability amount in the Mudaraba instrument
Updated 02 February 2025
REEM WALID
RIYADH: The Saudi Electricity Co. will settle its historical obligations to the state, totaling SR5.687 billion ($1.5 billion), following an executive panel approving a final settlement of the disputed legacy amounts.
The panel, which included a ministerial committee for restructuring the electricity sector and SEC, said the disputed amounts are related to technical discrepancies in quantities, prices, and handling costs of fuel and electric power.
A working team was formed from the ministries of energy and finance and the Saudi Electricity Regulatory Authority, in coordination with relevant authorities, to study the disputed transactions totaling SR10.3 billion.
This is part of the government’s continued efforts to enhance service levels for citizens and residents, supporting the goals of Saudi Vision 2030.
Global credit ratings agency Moody’s assigned the SEC an Aa3 rating in November, which it gives to companies with high quality, low credit risk, and a strong ability to repay short-term debts. It provides an assessment of the creditworthiness of borrowers, including governments, corporations, and other entities that issue debt.
The Tadawul statement said the committee issued a second resolution to include the settlement liability amount in the Mudaraba instrument, as per the terms of the agreement between SEC and the Ministry of Finance, within 30 days of receiving the resolution letter from the Minister of Energy.
The Mudaraba instrument is a long-term, unsecured financial tool with a profit margin tied to the regulatory weighted average cost of capital. Its profit is paid only if dividends are declared on ordinary shares. It follows Islamic Shariah principles, is treated as equity in SEC’s financials, and does not change shareholder ownership or rights.
The bourse filing said the SEC expects no significant impact on its dividend distribution.
It added that following the resolution, SEC will amend the Mudaraba agreement with the Ministry of Finance to include this amount in the Mudaraba instrument, bringing the total to SR173.607 billion.
Reclassifying the settlement amount into the Mudaraba instrument strengthens the company’s capital and prepares it for large-scale investments, reinforcing its role as a reliable electricity provider in the Kingdom.
The financial impact of the resolution is projected to be reflected in the 2024 financial statements.
