Riyadh leads Saudi real estate surge with 18% rise in office rents

KARACHI: Hutchison Ports, a subsidiary of Hong Kong conglomerate CK Hutchison Holdings Limited, plans to invest $1 billion in Pakistan to improve its port infrastructure, the Pakistani finance ministry said on Thursday.
The statement came after a delegation of Hutchison Ports, led by its Middle East & Africa Managing Director Andy Tsoi, met Pakistan Finance Minister Muhammad Aurangzeb and briefed him about the firm’s 25-year presence in Pakistan.
Hutchison Ports has been operating two terminals, HPKICT and HPSAPT, in Pakistan and has contributed more than Rs225 billion ($804 million) in government revenues and provided employment to a workforce of 5,000 individuals, according to the port operator.
During the meeting with Aurangzeb, Hutchison Ports delegates presented their upcoming investment plan, aimed at upgrading their existing terminals to enhance operational efficiency, logistics connectivity, and automation.
“The investment includes infrastructure development, road improvements to facilitate efficient cargo movement, modernization of HPKICT into a cutting-edge automated terminal, and the development of a 52-hectare logistics park to enhance trade connectivity,” the Pakistani finance ministry said.
“The delegation highlighted that their investment is expected to generate at least USD 4 billion in revenue over the next 25 years through royalty, rent, and tax contributions.”
The automation upgrades will include remote quay cranes, electric trucks and digitalized gate operations, alongside training programs for maritime professionals in port operations, management and artificial intelligence (AI) applications, according to the statement.
Finance Minister Aurangzeb appreciated Hutchison Ports’ commitment to Pakistan’s maritime sector and acknowledged their significant role in boosting trade and economic activity.
“He reaffirmed the government’s support for strategic investments that contribute to Pakistan’s economic growth and infrastructure development,” the finance ministry said.
The development comes amid Pakistan’s efforts to boost trade and seek international partnerships to expand its maritime activities.
On January 22, South Korean shipping company, HMM, launched the India North Europe Express (INX) weekly shipping service in Pakistan, providing the South Asian country direct access to Europe.
The service, launched in collaboration with Ocean Network Express (ONE) container liner and Pakistan’s United Marine Agencies (UMA), will ensure timely and efficient delivery of Pakistani goods to the destined European ports and beyond, according to HMM.
Prior to that, Dubai-based logistics giant DP World, in collaboration with Pakistan’s National Logistics Corporation, launched in Jan. a feeder service to transport shipping containers from Dubai to Karachi, Pakistani state media reported. Pakistani officials and DP World have also finalized terms for a freight corridor project from Karachi Port to the Pipri Marshalling yard in southern Pakistan.
Pakistan is currently on a tricky path to economic recovery since avoiding a default in June 2023. The South Asian country last year secured a new $7 billion loan from the International Monetary Fund (IMF) and has been actively pursuing trade and investment opportunities to put the economy back on track.

RIYADH: Saudi Arabia’s non-oil exports to China reached SR3.68 billion ($980 million) in December, representing a rise of 69.58 percent compared to the previous month, the latest official data showed.

According to the General Authority for Statistics, the Kingdom exported plastic and rubber goods valued at SR1.12 billion, followed by chemical products at SR1.11 billion and transport parts at SR1.02 billion.

Non-oil shipments from Saudi Arabia to China amounted to SR2.17 billion in November, while the amount was SR2.35 billion in October and SR1.73 billion in September.

The strong flow of the Kingdom’s non-oil goods to the Asian country underlines the strengthening bilateral relations between both nations, with Saudi Arabia being the largest trading partner of China in the Middle East since 2001.

China and Saudi Arabia are strategic partners in various other sectors such as energy and finance, as well as the Belt and Road Initiative.

The rise in non-oil exports also signifies the progress of Saudi Arabia’s economic diversification journey, as the Kingdom is on a path to reduce its decades-long reliance on oil revenues.

Affirming the growth of Saudi Arabia’s non-oil private sector, the Kingdom’s Purchasing Managers’ Index reached 60.5 in January, the highest level in 10 years, and the top among the Middle East nations, according to the Riyad Bank Saudi Arabia PMI survey compiled by S&P Global.

In the UAE, the PMI stood at 55 in January, while it was 53.4 in Kuwait, 50.2 in Qatar and 50.7 in Egypt.

Any PMI readings above 50 indicate growth of the non-oil private sector, while readings below the number signal contraction.

UAE the favorite destination for Saudi non-oil goods

According to the GASTAT report, Saudi Arabia’s Arab neighbor UAE was the top destination for the Kingdom’s non-oil exports, with outbound shipments to the Emirates reaching SR6.46 billion in December, representing a decline of 9.90 percent compared to the previous month.

The authority revealed that the Kingdom exported machinery and mechanical appliances worth SR3.15 billion in December, while outbound shipments of transport parts amounted to SR1.32 billion.

In December, Saudi Arabia also exported chemical products valued at SR426.8 million to the UAE, followed by plastic and rubber goods worth SR320.2 million.

India was the third favorite destination for Saudi Arabia’s non-oil goods in December, with exports to the Asian nation reaching SR1.86 billion, marking a decline of 26 percent compared to the previous month.

Other top destinations for Saudi Arabia’s non-energy goods were the US, with a value of SR1.64 billion, Bahrain at SR1.19 billion and Turkiye at SR902.7 million.

In December, the Kingdom also exported non-hydrocarbon products to Egypt valued at SR888 million, while outbound shipments to Belgium stood at SR826.7 million and Kuwait at SR703.7 million.

Overall, Saudi Arabia’s non-oil exports stood at SR29.45 billion in December, representing an 18.1 percent rise compared to the same month in 2023.

In November, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim revealed that non-oil activities account for 52 percent of the Kingdom’s gross domestic product.

The minister added that the Kingdom’s non-oil economy has been growing at 20 percent since the launch of the Vision 2030.

In December, Saudi Arabia exported non-energy goods worth SR19.33 million via sea, while outbound shipments through land and air totaled SR5.38 billion and SR4.73 billion, respectively.

According to GASTAT, Jeddah Islamic Sea Port was the main exit point for Saudi Arabia’s non-hydrocarbon products with goods valued at SR3.92 billion.

King Fahad Industrial Sea Port in Jubail handled goods worth SR3.65 billion, followed by Ras Tanura Sea Port, which processed outbound shipments amounting to SR2.03 billion.

In terms of exit points via land, Al-Batha Port handled goods valued at SR2.04 billion, while products worth SR671.5 million passed through Al-Hadithah Port.

Among airports, King Khalid International Airport in Riyadh handled outbound shipments worth SR2.46 billion in December, followed by King Abdulaziz International Airport at SR2.09 billion.

Overall merchandise exports

Despite the rise in non-oil outbound shipments, Saudi Arabia’s overall merchandise exports decreased by 2.8 percent to reach SR94.29 billion in December compared to the same month of the previous year, driven by oil production cuts as mandated by OPEC.

The share of oil exports from total outbound goods also decreased from 74.3 percent in December 2023 to 68.8 percent during the same month in 2024.

Saudi Arabia’s merchandise exports to the Gulf Cooperation Council countries amounted to SR13.68 billion in the final month of 2024, representing a rise of 6.04 percent compared to December 2023.

Exports to Asian non-Arab non-Islamic countries stood at SR49.39 billion in December, followed by outbound shipments to North America at SR4.73 billion, South America at SR1.47 billion and the EU at SR8.73 billion.

In December, Saudi Arabia’s overall merchandise exports to China amounted to SR12.25 billion, followed by South Korea at SR9.80 billion, Japan at SR9.71 billion and India at SR9.11 billion.

Imports up

According to GASTAT, Saudi Arabia’s overall imports witnessed a 27.1 percent year-on-year rise in December, reaching SR79.03 billion, while the surplus of trade balance decreased by 56.1 percent, reaching SR15.26 billion.

The authority revealed that the Kingdom welcomed goods valued at SR18.60 billion from China, led by mechanical appliances and electrical equipment valued at SR7.73 billion.

Saudi Arabia also imported transport products from China worth SR2.60 billion, followed by base metal products at SR2.04 billion and textiles valued at SR1.06 billion.

In December, imports from the US amounted to SR7.17 billion, while inbound shipments from the UAE and India were valued at SR4.30 billion and SR3.81 billion, respectively.

Saudi Arabia also imported goods worth SR3.75 billion from Germany and SR3.60 billion from Japan.

Italian imports to Saudi Arabia in December amounted to SR3.19 billion, while inbound shipments from the UK totaled SR3.03 billion.

GASTAT revealed that inbound shipments valued at SR45.72 billion reached the Kingdom via sea, while imports amounting to SR9.46 billion and SR23.85 billion came via land and air, respectively.

King Abdulaziz Sea Port in Dammam was the leading entry point for imports in December, with the facility handling goods valued at SR22.01 billion, or 27.8 percent of total inbound shipments.

According to the report, Jeddah Islamic Sea Port handled inbound shipments valued at SR15.41 billion, followed by the King Abdullah Sea Port at SR1.35 billion and King Fahd International Sea Port at SR1.20 billion.

Through land, Al-Batha Port and Riyadh Dry Port processed incoming goods valued at SR4.10 billion and SR2.84 billion, respectively.

Through air, King Khalid International Airport in Riyadh welcomed inbound shipments worth SR11.62 billion in December.

King Abdulaziz International Airport and King Fahad International Airport also handled imports valued at SR7.07 billion and SR4.55 billion, respectively.