Saudi Real Estate Fund boosts homeownership with $257m for Sakani program

Saudi Real Estate Fund boosts homeownership with $257m for Sakani program
The Sakani program facilitates homeownership by providing affordable housing options and financing assistance, particularly targeting individuals facing challenges in accessing the housing market. Shutterstock
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Updated 24 March 2024
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Saudi Real Estate Fund boosts homeownership with $257m for Sakani program

Saudi Real Estate Fund boosts homeownership with $257m for Sakani program

RIYADH: Homeownership in Saudi Arabia is set to increase as the Real Estate Development Fund deposited SR963 million ($256.7 million) into the accounts of Sakani beneficiaries for March. 

The funds were disbursed to beneficiaries through the Ministry of Municipal and Rural Affairs and Housing, as per the Saudi Press Agency.

The Sakani program facilitates homeownership by providing affordable housing options and financing assistance, particularly targeting individuals facing challenges in accessing the housing market. 

Mansour bin Madi, the CEO of the fund, clarified that the total support for the current month of March was allocated to bolster profits of various housing support contracts.  

He highlighted that the total amount deposited into the Sakani beneficiaries’ accounts since the announcement of the transformation scheme in June 2017 until March reached approximately SR57.5 billion. 

Bin Madi explained that the continuity of housing support confirms the ongoing efforts to assist beneficiaries in owning suitable housing in partnership with financial institutions.  

This comes in line with achieving the targets of the housing program — one of the components of Vision 2030 — to raise the citizens’ housing ownership rate to 70 percent and provide sustainable housing and financial solutions through building supportive systems and legislation. 

REDF offers housing aid services through over 43 digital platforms via the fund’s electronic portal.  

Additionally, it provides the “Design Your Support” service within the Real Estate Advisor platform, allowing beneficiaries to tailor their housing support and access optimal financial and housing recommendations.  

Moreover, the unified call center and social media channels address beneficiaries’ inquiries and questions. 

The Sakani scheme has transformed Saudi Arabia’s housing market by offering financing options such as rent-to-own and mortgages, enabling citizens to achieve their homeownership aspirations. 

It assists first-time buyers by providing guidance throughout the process and facilitating financing. 

Moreover, the initiative addresses citizen housing needs and promotes nationwide community development, showcasing the impact of the housing program. 

Through innovative services and financing options, Sakani not only transforms the housing market but also contributes to broader community development initiatives, demonstrating its pivotal role in shaping the future of Saudi Arabia's residential landscape. 


Saudi IT firm MIS sells investment in OpenAI, achieves $3.4m gain

Saudi IT firm MIS sells investment in OpenAI, achieves $3.4m gain
Updated 22 sec ago
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Saudi IT firm MIS sells investment in OpenAI, achieves $3.4m gain

Saudi IT firm MIS sells investment in OpenAI, achieves $3.4m gain
  • Impact of sale will be reflected in the first quarter of this year

RIYADH: Al Moammar Information Systems Co. has announced the sale of its entire investment in OpenAI, a US-based artificial intelligence research organization, for $8.4 million. 

According to a Tadawul statement, the sale has resulted in a positive financial impact of $3.4 million, as the cost price of the investment was $5 million. 

In January, MIS invested $5 million in OpenAI after the Tadawul-listed firm approved the allocation of $10.7 million to set up a portfolio through self-financing to invest in international AI companies to take advantage of the growth opportunities in the field.

In the latest statement, MIS said the impact of the sale will be reflected in the first quarter of this year. 

Established in 2015, OpenAI is globally recognized for developing ChatGPT, a generative artificial intelligence chatbot. 

Earlier this month, MIS announced that it signed a memorandum of understanding with Saudi Fransi Capital to explore and evaluate the feasibility of establishing an AI-powered cloud services business in the Kingdom. 

At that time, MIS said the new project aims to offer graphics processing unit-based computing solutions to support next-generation AI applications, machine learning, and high-performance computing in Saudi Arabia. 

In February, MIS signed a deal valued at SR227.8 million ($60.75 million) with the Saudi Data and AI Authority to carry out the expansion project for the Naqaa Data Center. 

In a Tadawul statement, the company said the project includes expanding the Naqaa Data Center in Riyadh to meet the growing demand for hosting, as well as expanding the capacity of the data center in digital technologies.

MIS also procured a contract from Saudi Arabia’s Ministry of Health in January, valued at SR70.06 million to operate and maintain the digital infrastructure of 38 hospitals across the Kingdom’s southern and western provinces.

According to a Tadawul statement, the scope of the project includes the maintenance and operation of computers, printers, scanners, and operating software. 

It also includes supervising servers, information network devices, wireless networks, information security, communication systems, data centers, and their associated components.

In November, MIS announced that its net profit for the first nine months of 2024 reached SR121.56 million, representing a rise of 356 percent compared to the same period in 2023. 


Bahrain’s outlook cut to negative by Fitch amid rising debt 

Bahrain’s outlook cut to negative by Fitch amid rising debt 
Updated 27 min 8 sec ago
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Bahrain’s outlook cut to negative by Fitch amid rising debt 

Bahrain’s outlook cut to negative by Fitch amid rising debt 

RIYADH: Bahrain’s economic outlook has been downgraded to negative from stable by Fitch Ratings, which affirmed the country’s B+ rating due to mounting fiscal pressures, high debt levels, and delayed economic reforms. 

This makes Bahrain the only Gulf Cooperation Council nation with this rating and a negative outlook from the agency. 

Fitch highlighted Bahrain’s persistent fiscal deficits and escalating interest burdens as primary concerns. Government debt is projected to rise from 130 percent of GDP in 2024 to 136 percent by 2026, significantly surpassing the 54 percent median for sovereigns in the B rating category. 

“The ‘B+’ rating reflects weak public finances, with debt to gross domestic product ratio more than double the ‘B’ category median, high fiscal dependence on oil revenue, low levels of FX reserves, which weigh on the ratings, but exceptionally strong support from its GCC partners, notably Saudi Arabia and the UAE,” Fitch said. 

The nation’s budget deficit is expected to remain substantial, nearing 9 percent of GDP in both 2025 and 2026, despite some improvements in the non-oil sector. 

While Bahrain continues to rely heavily on hydrocarbon revenues, Fitch expects oil-related income to remain stable, supported by increased refinery output at Bapco Energies. 

However, with oil prices forecasted to decline — from $80 per barrel in 2024 to $70 in 2025 and $65 in 2026 — non-oil revenue is becoming increasingly crucial. “The improvement will mostly be propelled by the tax on multinational companies introduced in January 2025,” said the report.

DMTT collection will begin in the third quarter of 2025 and could generate about 0.6 percent of GDP in revenue on a full-year basis, according to the agency. “Our base case does not include the introduction of corporate income tax or a rise in VAT during this budget cycle,” it added. 

Budget discussions for 2025 and 2026 are ongoing between Bahrain’s government and parliament. In the interim, spending is capped at one-twelfth of the 2024 budget per month, excluding inflation adjustments. 

Fitch anticipates the adoption of a new budget by mid-2025, with potential savings from subsidy reforms transitioning to a means-tested cash transfer system. 

Despite Bahrain’s fiscal weaknesses, strong financial backing from GCC nations — particularly Saudi Arabia and the UAE — remains a stabilizing factor. 

The agency noted that Bahrain benefits from low-cost funding via GCC-related entities, private placements, and international debt markets. “In Fitch’s view, absent strong reforms, Bahrain could require a substantial increase in GCC concessional funding to stabilize and reduce debt. Our base case is that Bahrain would be able to obtain this funding from GCC partners,” said the report.

Bahrain’s foreign exchange reserves remain low, at approximately $4.8 billion in 2024, covering just 1.3 months of current account outflows — far below the ‘B’ category median of 4.5 months. The country remains dependent on external funding and market access to maintain its currency peg and financial stability. 

Fitch outlined key factors that could lead to a downgrade, including a failure to stabilize the debt-to-GDP ratio or a reduction in GCC financial support. Conversely, the outlook could return to stable if Bahrain demonstrates meaningful fiscal consolidation and stabilizes government debt. 


PIF’s SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal 

PIF’s SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal 
Updated 24 February 2025
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PIF’s SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal 

PIF’s SALIC to boost stake in Olam Agri to over 80% in $1.78bn deal 

RIYADH: Saudi Agricultural and Livestock Investment Co. has struck a $1.78 billion deal for a controlling stake in Singapore-based Olam Agri Holdings.

The agreement will raise SALIC’s stake from 35.43 percent to 80.01 percent, with an option to acquire the remaining 19.99 percent within three years, the company said in a statement, adding that the transaction is subject to regulatory approvals. 

The move aligns with the Saudi firm’s strategy to strengthen global food supply chains, reflecting its 2009 mandate as a Public Investment Fund-owned entity investing in agriculture and livestock to bolster the Kingdom’s food security. 

“This success has reinforced our confidence in our investment vision and our pursuit of sustainable growth,” said Sulaiman Al-Rumaih, group CEO of SALIC. 

“It aligns perfectly with SALIC’s strategy of backing innovative, high-potential companies that address future food security needs through integrated supply chains both at home and abroad,” he added. 

The company has a track record of investing across the global agri-food supply chain to improve access to essential foods, with current investments spanning five continents, seven countries, and 16 food commodities. 

Al-Rumaih added that the investment would enable Olam Agri to leverage SALIC’s extensive global network to expand its market presence.

“This investment not only reinforces our leadership in the global grains sector but will ultimately benefit consumers through enhanced food production and more efficient distribution,” he said. 

The statement added that the increased stake in Olam Agri Holdings is a key element of SALIC’s international strategy, aimed at ensuring the availability of essential goods and enhancing sustainability through investment diversification and supply chain integration. 

Sunny Verghese, CEO of Olam Agri, said the company’s partnership with SALIC, which began in 2022, has unlocked new avenues for growth. 

“With its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fiber. Importantly, this transaction is transformative for Olam Agri,” said Verghese. 

He added that the deal will unlock significant value for Olam Group shareholders. 

In a separate statement, Olam Agri said the divestment of its entire stake to SALIC will raise total proceeds of $3.9 billion for Olam Group, adding $2.7 billion to its equity reserves. 

Olam Agri has a strong presence in grains and oilseeds, animal feed and proteins, edible oils, rice, and cotton, according to its website.


Oil Updates — prices slip as Kurdistan export resumption looms

Oil Updates — prices slip as Kurdistan export resumption looms
Updated 24 February 2025
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Oil Updates — prices slip as Kurdistan export resumption looms

Oil Updates — prices slip as Kurdistan export resumption looms

NEW DELHI: Oil prices slipped in Asia on Monday, extending losses from last week, on the prospect of a resumption of exports from Kurdistan’s oilfields, while investors awaited clarity on talks to resolve Russia’s war on Ukraine.

Brent futures were down 14 cents, or 0.2 percent, at $74.29 barrel, as of 7:41 a.m. Saudi time, while US West Texas Intermediate crude futures lost 22 cents, or 0.3 percent, to $70.18 a barrel.

Both Brent and WTI dropped by more than $2 on Friday, posting weekly declines of 0.4 percent and 0.5 percent, respectively.

“The downward spiral in crude oil prices is driven by pressure from the US president on Iraq to resume oil exports from Kurdistan oilfields, which could improve supply flows in global oil markets after nearly two years of disruption,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

Iraq will export 185,000 barrels per day from Kurdistan’s oilfields through the Iraq-Turkiye pipeline once oil shipments resume, an Iraqi oil ministry official said on Sunday.

Iraq’s oil ministry said all procedures had been completed to allow the resumption of exports through the Iraq-Turkiye pipeline, potentially resolving a dispute that has disrupted crude flows.

All eyes remain on the progress of talks to end Russia’s war on Ukraine, which enters its fourth year on Monday. Officials said on Sunday that EU leaders will meet for an extraordinary summit on March 6 to discuss additional support for Ukraine and European security guarantees.

This comes after US President Donald Trump initiated talks with Russia on ending the war but without inviting Ukraine or the EU to the table. A senior Russian diplomat said Russian and US teams plan to meet this week to discuss improving relations.

Sanctions by the US and EU on Russian oil exports have curbed its shipments and disrupted seaborne oil supply flows. Global energy supplies are expected to increase if a peace deal is reached and sanctions are lifted.

Oil prices will be influenced by geopolitical developments and US policy announcements in the short term, Sachdeva said.

In the Middle East, a Hamas official said talks with Israel through mediators on further steps in a ceasefire agreement are conditional on Palestinian prisoners being released as agreed.

Israel and Hamas have frequently accused each other of violations since the ceasefire started on January 19, but so far it has continued to hold.


IMF, Pakistan to open $1 billion climate financing talks today

IMF, Pakistan to open $1 billion climate financing talks today
Updated 24 February 2025
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IMF, Pakistan to open $1 billion climate financing talks today

IMF, Pakistan to open $1 billion climate financing talks today
  • Khurram Schehzad says mission to visit from Feb. 24-28 for discussions on climate resilience funding
  • Disbursement will take place under the Fund’s Resilience and Sustainability Trust, created in 2022 

ISLAMABAD: Pakistan and the International Monetary Fund mission will open discussions from today, Monday, for around $1 billion in climate financing for Pakistan, an adviser to the country’s finance minister said.

Khurram Schehzad told Reuters last week the IMF mission will visit from February 24-28 for a “review and discussion” of climate resilience funding.

The disbursement will take place under the Fund’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.

Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation’s vulnerability to climate change.

Pakistan’s Geo News TV had earlier reported that the IMF would issue the $1 billion for climate financing this week. 

The country’s economy is on a long path to recovery after being stabilized under a $7 billion IMF Extended Fund Facility it secured late last year.

“Another IMF mission will arrive in Pakistan in the first week of March for a first review of that facility,” Schehzad said.

The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change.

Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country’s economic struggles and high debt burden impinged its ability to respond to the disaster.