Tadawul approves Merrill Lynch Kingdom of Saudi Arabia as market maker for 20 listed securities

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, as it shed 82.97 points or 0.70 percent to close at 11,709.43.

The total trading turnover of the benchmark index was SR4.55 billion ($1.21 billion), with 66 stocks advancing and 174 declining.

The Kingdom’s parallel market, Nomu, also shed 35.29 points to close at 30,683.64. The MSCI Tadawul Index declined by 0.59 percent to 1,484.07.

The best-performing stock on the main market was United International Holding Co. The firm’s share surged by 3.49 percent to SR172.

Conversely, the share price of the Mediterranean and Gulf Insurance and Reinsurance Co. declined by 10 percent to SR20.70.

On the announcements front, several major Saudi companies released their annual financial results for the period ending Dec. 31, 2024, showcasing mixed performances across industries.

Sahara International Petrochemical Co., also known as SIPCHEM, reported a 63.74 percent decrease in net profit, reaching SR462.1 million, compared to SR1.175 billion in the previous year. This decline was primarily due to higher feedstock and raw material costs, a decline in revenue, and decreased zakat expenses during the year.

The company saw a 2.99 percent drop in its share price on Wednesday to settle at SR21.46.

Rabigh Refining and Petrochemical Co. posted a 3.15 percent decrease in net profit, reaching SR4.54 billion, down from SR4.69 billion in the prior year. The company, in a statement to Tadawul, said this decline was due to a one-time expense, lower sales and margins, and higher costs of key feedstock.

Its share price saw a 0.43 percent increase to reach SR6.93.

Meanwhile, Saudi Real Estate Co. saw a significant 218.19 percent increase in net profit to SR215.1 million, up from SR67.7 million in the previous year. The increase was primarily attributed to a 42.64 percent increase in operating profit, a 181 percent increase in the company’s share of profit from an associate and the joint venture, and a 39 percent decrease in zakat expenses recorded during 2024.

Saudi Real Estate Co.’s stock price shed 1.76 percent to reach SR25.75.

The National Shipping Company of Saudi Arabia, or Bahri, reported a 34.46 percent increase in net profit, reaching SR2.169 billion, compared to SR1.613 billion in the previous year. The growth was driven by the improvement of operational performance and global shipping rates in several business units of the group.

The company’s stock price grew 2.33 percent to reach SR30.20.

JEDDAH: Saudi Arabia has granted exploration licenses worth SR366 million ($97.5 million) to local and international companies for its first mineral belts at Jabal Sayid and Al-Hajjar.

These two sites, covering a combined area of 4,788 sq. km, are part of the Ministry of Industry and Mineral Resources’ efforts to accelerate the exploration and development of the Kingdom’s estimated SR9.3 trillion ($2.48 trillion) in mineral resources.

Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site.

A consortium consisting of Artar, Gold and Minerals Ltd Co., and Jacaranda, owned by Australian company Hancock Prospecting, won the license for the northern Al-Hajjar site. Vedanta Ltd, a major Indian mining giant, received the first exploration permit for the Jabal Sayid belt, while a second license for the same site went to a consortium of Ajlan & Bros Mining and Zijin Mining, a Chinese mining giant ranked among the world’s top five.

Saudi Arabia is focused on making mining a key pillar of its economy, alongside oil and petrochemicals. The Ministry of Industry and Mineral Resources is working to unlock natural resources to diversify the economy, create jobs, and position the Kingdom as a global mining hub in alignment with Vision 2030.

The competition saw 14 companies, both local and international, submit bids after passing the pre-qualification stage. The submissions were evaluated based on technical expertise, proposed work plans, and social and environmental commitments, according to the Ministry’s statement.

The newly awarded licenses cover two areas within the Jabal Sayid belt, which spans 2,892 sq. km and contains valuable minerals such as copper, zinc, lead, gold, and silver. Additionally, two more licenses were granted for the Al-Hajjar site, covering 1,896 sq. km and rich in natural resources.

The ministry emphasized that the involvement of major international mining companies like Zijin Mining, Hancock Prospecting, and Vedanta Ltd. underscores the growing global interest in Saudi Arabia's mining sector and the opportunities it offers through exploration license competitions.

It also confirmed that the total exploration investment from the winning companies will surpass SR366 million over the next three years, with an extra SR22 million pledged for community development projects near the mining sites, aimed at creating job opportunities for local residents.

Ajlan and Bros-Norin for Mining, which secured the southern Al-Hajjar site, will invest SR209 million in exploration, which includes over 119,000 meters of drilling. Furthermore, they will allocate SR11.2 million for community-focused initiatives, such as building intermediate schools for girls in nearby provinces.

The consortium of Artar, Gold & Minerals Ltd., and Jacaranda will invest more than SR62 million in exploration at the northern Al-Hajjar site, including 52,000 meters of drilling. They will also direct SR4.2 million toward local infrastructure projects.

Vedanta Ltd., the Indian mining giant, has committed SR33 million for exploration at Jabal Sayid 1, covering 22,000 meters of drilling. In addition, they will invest SR3 million in community development projects, focusing on local employment and training programs.

The consortium of Ajlan & Bros Mining and Zijin Mining has pledged approximately SR62 million for exploration at Jabal Sayid 2, including 51,000 meters of drilling. They will also allocate SR4 million for community initiatives, particularly aimed at developing road infrastructure in the surrounding area.

In line with these efforts, the Ministry of Industry and Mineral Resources has launched the second phase of the Mining Exploration Enablement Program, in collaboration with the Ministry of Investment, to mitigate risks for companies during the early stages of mining exploration.

The Kingdom also offers incentives under the mining investment system, such as allowing foreign companies to fully own operations and providing up to 75 percent funding for capital costs through the Saudi Industrial Development Fund.

During the fourth edition of the Future Minerals Forum, held in January, the Ministry of Industry announced the offering of 50,000 sq. km of mineralized belts containing gold, copper, and zinc.

This initiative is part of the ministry’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Applications for these opportunities can be submitted through the Taadeen platform.