RIYADH: Turkish construction giant Yuksel Insaat has won a SR2.29 billion ‘Riyadh Rapid Bus Transit System’ (BRT) project, which is part of the impressive King Abdulaziz Transport System plan.
Ar-Riyadh Development Authority (ADA) has awarded the contract to Yuksel, while the local Alinma Bank has extended SR872 million project financing facility to implement project.
Yuksel has received the letter of intent.
“The project mainly includes road rehabilitation schemes, construction of 21 pairs of Bus Rapid Transit System Stations, 2574 community bus stops and 7 pedestrian bridges in the Saudi capital city,” said Ahmet Halavuk, Yuksel’s general manager.
As is typical of the BRT systems, he said that the new line would allow rush-hour buses to travel in bus-only lanes specifically highway shoulder lanes with the aim of reducing traffic period and easing the time of commute.
Ahmet said that the BRT would be an efficient, high capacity, and cost effective transit solution that many global cities are using at the moment.
Through the utilization of exclusive lanes, off-board fare payment and platform level boarding; well-planned and delivered BRT systems with clean buses can provide metro-quality service at a fraction of the cost.
This will be generating enormous shift from private car to public transportation systems, explained Ahmet, who has taking keen interest in promoting Saudi-Turkish harmonious bilateral relations.
Arab News caught up with Ahmet to know more about new project, Yuksel’s other projects in Saudi Arabia and GCC countries as well as the company’s pioneering role in constructions of dams and implementation of key infrastructure projects across the length and breadth of the country.
Here are the excerpts
of the interview:
Q: Many congratulations for winning the SR2.29 billion prestigious BRT project from ADA. How confident you are to implement this project?
A: We are quite confident and we will complete and deliver it on time.
According to ENR (Engineering News Record) rankings, Turkish contractors has big share in the world in which Yüksel is also listed.
With high quality commitment capability and massive experience in the international construction market, we are always encouraging Turkish contractors to invest in Saudi Arabia considering its market stability and long term infrastructure and housing projects as well as we are also trying to increase our market share.
As being Saudi-Turkish contractor with our experience exceeding 30 years in the Saudi market, we play a key role in business between the two countries.
In fact, Yuksel name is well known with its quality and on time construction ability in the Saudi construction market.
Our strong name has an added value to help us on implementation of this prestigious project.
We have already mobilized workers and in fact the workers’ mobilization has been started before the project was even formally awarded to us. So we are committed to successfully execute this significant project.
Q: Yuksel has been playing a pioneering role in the construction sector of the Kingdom. On the other hand, your company and you in person have evinced keen interest to promote Saudi-Turkish ties. What is your perception about the relations between the two countries now?
A: Engineers are uniquely qualified to be managers and leaders, in large part because they understand systems-thinking so well.
Once you understand that organizations are simply systems of people, then you’ve got it made.
This is what I do with the company and with Saudi agencies.
Recently, the number of tourists visiting Turkey from Saudi Arabia recorded an increase by 30 percent.
I understand that once Saudis become fully aware of the historical and cultural beauties of Turkey as well as the hospitable nature of our people, the people-to-people interaction will grow by manifold.
In the meantime, we know that Saudi citizens are investing in Turkey mainly in real estate sector by having land and apartments in Istanbul, Bursa, Trabzon etc.
On the other hand, Saudi companies are also investing in agriculture and energy sectors in Turkey.
So, we believe that by knowing each other Saudi-Turkish relations will become much stronger.
Q: I would like to know the specifics of the BRT project, as it will change the landscape of the capital city. What is the strategy and how do you plan to handle this key project— the third phase of Riyadh Bus Rapid Transit System (BRT)?
A: Thank you. Yes, indeed it is a key project. With a manpower of more than 300 members at the initial stage, we aim to consolidate our position as the time progresses providing value based qualified services, because it is an important project for the city, which will end its traffic congestion and ensure smooth traffic in the capital and can attract more favorable economic impact for the city.
We are very much hopeful to finish it well on time.
The project, once implemented, will alleviate the sufferings of daily commuters.
Bus and Metro transport, which is connected to each other logistically as there is huge congestion on busy roads, will help to solve the traffic problems which will be compounder further with the consistent growth of Riyadh city.
We wish to complete the BRT project in the given period of time.
Q: What is the time frame to complete the BRT project ? Don’t you think it is very short time, keeping in view the value, the scope of work and the technical skills required for the project?
A: It is 24 months’ period and Insha’Allah we will finish this task for this premium transport system for Riyadh city on time.
We are planning to add 4,500 employees in addition to available 3,500 work force of the company to complete the ambitious transport plan on time.
Q: Besides this BRT system, are there some other projects currently being executed by Yuksel?
A: Yes, there are flyover and bridge projects for smooth traffic system and the progress has reached about 50 percent.
It will be completed by May 2016,
which is also on time.
Moreover, we have one pipeline project for the Ministry of Water valued at SR610 million and an infrastructure project for Dammam University, which is worth SR350 million.
We are also executing infrastructure project in King Faisal University which is worth SR245 million.
We also have four renovation projects for hospital development, including in Al-Kharj and Al-Ahsa worth around SR430 million.
Furthermore, we have almost completed SR220 million desalination plants in the Kingdom and a major SR550 million project to develop King Khalid Air Base with an American company.
This is in addition to the ongoing SR630 million project of Riyadh governorate.
Q: In all, how many projects Yuksel has so far implemented in Saudi Arabia? What will be the cumulative value of all these projects?
A: The number of projects we have finished so far is 39 worth SR8.12 billion.
We are eyeing more projects in Saudi market and the Gulf market at the moment.
We started working in the Kingdom way back in 1983.
In fact, our technical capabilities, our on-time performance, our manpower strength and eventually delivery of projects in stipulated timeframe have impressed our valuable clients not only in Saudi Arabia, rather across the globe.
Q: Is Yuksel working to cut reliance on foreign workers and provide more employment to Saudis? How far you are following the Nitaqat program guidelines?
A: Yuksel is probably one of the few companies enjoying platinum level of acceptance as per Nitaqat guidelines.
We rank highest in terms of Saudization.
We will be hiring about 400 Saudi nationals for the BRT project alone.
We are working with more focus on Saudization program and at the core of it is our training of the Saudi youth and employing them as per Nitaqat guidelines.
Our motto is expansion in the Kingdom within the framework and the guidelines of the Saudization program including inclusive growth for citizens of this country.
We have made professional arrangements to fulfill this aspiration.
We have issued necessary instructions to our HR department to recruit suitable Saudi youth as per the norms.
Q: Besides Saudi Arabia, is Yuksel also working in other GCC countries? Which are the major projects, you have undertaken in those countries?
A: Yes, We are also working in other GCC countries on several projects including AED795 million infrastructure development projects in Abu Dhabi as well as highway and metro projects in Qatar and Oman.
In Qatar, we are executing a part of Doha metro worth QR2.38 billion and construction of a part of Lusail development project worth QR1.67 billion.
In Oman, we have started two road projects worth $220.8 million and negotiating on third project. So we have our presence in all the GCC countries.
We are also looking at some projects in Bahrain at the moment.
Q: As a major Turkish company, what kind of projects you are currently doing in Turkey and in adjoining countries?
A: In fact, Yuksel has been a market leader in terms of building dams, marine structures, transport systems and executing industrial projects across the globe including Turkey.
Recently, Yuksel signed contract concerning the construction of TANAP (Trans-Anatolia Natural Gas Pipeline Project), one of the largest energy infrastructure projects in Turkey.
The second of the first three packages of the tender for the pipeline to carry Azerbaijani natural gas to Turkey will be carried out by a consortium comprising Sicim (Italy), Yuksel (Turkey) and Akkord (Azerbaijan).
The scope of the $540 million contract covers the construction of a 450 km-long pipeline 56 inches in diameter.
The project is planned to be completed in 36 months. Starting at the Georgian border and running through Turkey transversely on an east-west axis, the TANAP will be connected to the TAP (Trans Adriatic Pipeline) on the Greek border.
Around 1,900 km in length, this pipeline is the largest-scale pipeline project of Turkey.
The first gas flow through the TANAP will take place in 2018.The aim is to gradually increase the annual capacity from 16 billion m3 in 2020 gradually to 23 billion and 31 billion m3 by 2026.
Q: Can you please brief me on your CSR part? Has Yuksel tied up with some charitable or social organizations to do community works?
A: As the Corporate Social Responsibility or CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others, we too are equally engaged in such activities.
We are also closely working with Turkish embassy on such initiatives as and when needed.
Like when there was a typhoon in Philippines, we have responded with some help to the devastated section.
Moreover, we wholeheartedly contributed during the series of quakes that devastated lives and properties in Nepal.
We are also participating with some charitable organizations and donate handsomely.
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Closing Bell: TASI closes in green at 11,764
RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 11,764.39 points, marking an increase of 83.28 points or 0.71 percent.
The total trading turnover of the benchmark index was SR6.95 billion ($1.85 billion), as 173 stocks advanced, while 67 retreated.
The MSCI Tadawul Index also surged by 11.97 points, or 0.80 percent, to close at 1,500.71.
The Kingdom’s parallel market, Nomu also increased, gaining 135.49 points, or 0.48 percent, to close at 28,598.60 points. This comes as 37 of the listed stocks advanced while as many as 42 retreated.
The main index’s top performer, Saudi Paper Manufacturing Co., recorded a 9.97 percent increase in its share price, closing at SR69.50.
Other notable gainers included Derayah Financial Co., which rose 8.22 percent to SR30.95, while Al-Baha Investment and Development Co. saw its share price climb 6.34 percent to SR3.52.
Saudi Arabian Mining Co. also recorded a positive trajectory, with its share price rising 5.74 percent to SR47.00. Saudi Reinsurance Co. posted similar gains, increasing 5.29 percent to close at SR43.75.
Mulkia Gulf Real Estate REIT recorded the steepest decline on TASI, with its share price slipping 4.71 percent to close at SR5.26.
Musharaka REIT Fund followed with a 3.51 percent drop to SR4.67. Saudi Cable Co. also saw a notable decline of 3.20 percent to settle at SR139.
On the parallel market, Hedab Alkhaleej Trading Co. was the top gainer, with its share price surging by 9.25 percent to SR44.90.
Other top gainers on Nomu included Al Mohafaza Co. for Education, which surged 7.79 percent, or SR1.80, to close at SR24.90, and Shalfa Facilities Management Co., which rose 7.43 percent, or SR5.50, to reach SR79.50.
Aqaseem Factory for Chemicals and Plastics Co. and Jana Medical Co. were the other top gainers on the parallel market.
Osool and Bakheet Investment Co. posted the largest decline on Nomu, with its share price falling 8.11 percent to SR34.
Altharwah Albashariyyah Co. fell 7.86 percent, or SR3.85, to close at SR45.15, while Meyar Co. declined 7.32 percent, or SR4.80, to settle at SR60.80 — making them among the top decliners on the parallel market.
Saudi Arabia launches major dairy cluster in Al-Kharj
JEDDAH: Saudi Arabia has launched a major dairy industrial cluster in Al-Kharj, reinforcing its ambition to become the region’s leading hub for dairy production and food manufacturing.
Announced during the Saudi Dairy Forum in Al-Kharj — located approximately 90 km southeast of Riyadh — the initiative is a strategic component of the Kingdom’s broader National Industrial Strategy. The cluster spans 1 million sq. m and is equipped with advanced infrastructure tailored to support dairy manufacturing and related industries.
Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the forum, underscored the project’s role in attracting high-value investments and enhancing the Kingdom’s food security.
He revealed that the dairy sector reached a market size of SR22 billion ($5.87 billion) in 2024, with exports totaling SR4.8 billion and imports at SR8.9 billion.
According to the IMARC Group, the market is projected to grow to $8.4 billion by 2033, with a compound annual growth rate of 3.8 percent from 2025 to 2033.
“This project aligns with the goals of the National Industrial Strategy to position Saudi Arabia as a regional hub for food industries,” Alkhorayef stated, as reported by the Saudi Press Agency.
He said it will offer investors access to fully developed industrial land, modern facilities, storage solutions, and a comprehensive support system.
In a statement on social media, Alkhorayef expressed gratitude to Riyadh Governor Prince Faisal bin Bandar for his patronage of the forum and for inaugurating the country’s first dairy industrial cluster in Al-Kharj Industrial City.
The minister noted that Saudi Arabia has achieved 129 percent self-sufficiency in dairy production, underscoring the sector’s resilience and capacity for growth. Al-Kharj alone contributes over 70 percent of the Kingdom’s total dairy output, supplying both local and regional markets.
The new cluster is part of a broader initiative by the Saudi Authority for Industrial Cities and Technology Zones to establish specialized food industry hubs throughout the Kingdom. The project is expected to foster synergies across the value chain, including animal feed, food additives, packaging, and machinery manufacturing.
The Saudi Dairy Forum, hosted by the Al-Kharj Chamber in cooperation with the National Industrial Development Center, brought together industry leaders, policymakers, and agricultural stakeholders. It was held under the patronage of Riyadh Gov, Prince Faisal bin Bandar and attended by Al-Kharj Gov. Prince Fahd bin Mohammed bin Saad bin Abdulaziz.
As Saudi Arabia accelerates its push to diversify the economy and achieve food security, the Al-Kharj dairy cluster stands as a milestone in the Kingdom’s industrial and agricultural evolution.
PIF-owned AviLease secures $1.5bn credit facility to boost global expansion
RIYADH: Saudi-backed AviLease has closed a $1.5 billion unsecured revolving credit facility to support its international expansion and investment in next-generation, fuel-efficient aircraft.
The conventional three-year facility was oversubscribed, attracting commitments from 20 global banks, including eight new lenders from Europe, Asia, and North America, the company said in a release.
Owned by Saudi Arabia’s Public Investment Fund, AviLease is central to the Kingdom’s push to diversify its economy and develop a globally competitive aviation industry under its Vision 2030 strategy.
Edward O’Byrne, CEO of AviLease, said: “We are pleased to close this facility, noting the strong international demand. Together with our existing revolver of $750 million, it brings our immediately‑available committed facilities to $2.25 billion, spanning 25 local and global lenders.”
He added: “This enhanced liquidity positions us to continue our expansion, investing in latest‑technology, fuel‑efficient aircraft while maintaining the conservative financial policy that underpins our strategy.”
Headquartered in Riyadh, the firm manages a fleet of 200 aircraft — largely composed of new-technology models — leased to 48 airline customers worldwide.
Earlier this month, AviLease signed a memorandum of understanding with Turkish Airlines for the long-term lease of eight Airbus A320neo aircraft. Two aircraft have already been delivered, with the remainder scheduled for delivery throughout 2025.
In March, the lessor delivered three A320neo aircraft to SDH Wings, a joint venture between AviLease and China’s sovereign wealth fund, in which the Kingdom holds a 10 percent stake.
The firm is also investing in local talent development. Earlier this year, AviLease partnered with Prince Sultan University and Riyad Bank to deliver a specialized aviation financing course to more than 150 professionals.
At the time, the company said the initiative aimed to equip Saudi talent to lead the Kingdom’s aviation finance sector and support the human capability development goals outlined in Vision 2030.
AviLease also stated that it will continue to create local economic value and generate both direct and indirect employment opportunities for Saudi nationals across the aviation and financial services sectors.
In October, AviLease expanded its fleet with the acquisition of nine aircraft from global lessor Avolon, building on a previous transaction in which it purchased 13 aircraft from the same company the year before.
The deal was followed by AviLease’s first transaction with BBAM, one of the world’s leading aircraft lessors, through which it acquired a Boeing 787-9. The acquisition marked the introduction of the 787-9 to AviLease’s operating lease portfolio and added a new airline customer based in the Americas, further diversifying the company’s global client base.
Saudi Arabia rallies region for deep decarbonization as COP30 nears
JEDDAH: A regional drive to cut carbon emissions in the oil and gas sector gained fresh momentum this week as the second symposium on downstream decarbonization opened in the Saudi capital, drawing high-level participation from international energy companies, industry experts, and policymakers.
Organized by the Organization of Arab Petroleum Exporting Countries and held under the patronage of Saudi Energy Ministry, the event—titled “Pathways to Reducing Carbon Emissions in Downstream Petroleum Industries”—builds on the success of its inaugural edition last June.
The symposium aims to advance strategies for curbing emissions in refining and petrochemical operations, reaffirming OAPEC’s commitment to sustainable energy development while fostering both regional and global collaboration.
Central to discussions is the challenge of balancing environmental goals with the continued strategic role of hydrocarbons in the global energy mix.
Opening the event, Saudi Arabia’s Deputy Minister for Sustainability and Climate Change Khalid Al-Mehaid highlighted the organization’s evolving vision.
He praised OAPEC’s decision to rebrand as the “Arab Energy Organization,” a move he said reflects a broader commitment to embracing all forms of energy to better serve the region’s long-term development goals.
He underscored the need for deep decarbonization strategies to safeguard energy security, protect the environment, and drive economic growth, according to the Saudi Press Agency.
Al-Mehaid emphasized the importance of integrated carbon management solutions, pointing to the role of the International Energy Forum in fostering collaboration between energy-producing and consuming nations in the face of the global energy trilemma.
With COP30 fast approaching, he called on Arab countries to move beyond negotiations and toward actionable climate cooperation, urging the adoption of science-driven solutions to meet net-zero emission targets.
OAPEC Secretary-General Jamal Al-Loughani also commended the Saudi Ministry of Energy for its central role in shaping the event’s direction.
He credited the leadership of Prince Abdulaziz bin Salman for driving the success of the symposium’s inaugural edition and setting the stage for its second iteration.
According to the SPA report, Al-Loughani noted that these collaborative efforts have significantly advanced both Arab and global dialogues on emissions reduction, particularly in refining the technical and technological approaches needed to meet climate goals.
Al-Loughani noted that the symposium comes at a pivotal moment, as the oil and gas sector faces mounting environmental challenges.
He emphasized that member states are actively working to transition toward a low-emissions economy through strategic investments in renewable energy, carbon capture and reuse technologies, and improved operational efficiency.
Al-Loughani also highlighted pioneering initiatives led by the Kingdom, including the Saudi Green Initiative and the Middle East Green Initiative. He commended similar efforts across the region, citing the UAE’s Al-Reyada carbon capture project, alongside notable programs in Algeria, Kuwait, Qatar, Iraq, Egypt, and Bahrain.
Mohammed Eid Al-Suraihi, president of the Arab Council for Creativity and Innovation, underscored the vital role of linking innovation with industrial solutions and stressed the importance of civil society participation in environmental awareness campaigns, according to the SPA.
He further emphasized that innovation remains key to building a more sustainable future for the petroleum sector.
Ali Al-Samawi, a senior energy analyst and representative of IEF Secretary-General Jassim Al-Shirawi, warned of unprecedented global challenges in decarbonizing the downstream petroleum industry. He pointed to circular carbon economy models, carbon markets, artificial intelligence-driven energy efficiency, and carbon capture, utilization, and storage technologies as essential tools for transformative change and unlocking future investment.
The symposium closely aligns with Saudi Arabia’s broader sustainability efforts, particularly through the Saudi Green Initiative and Middle East Green Initiative—both aimed at reducing carbon emissions and expanding renewable energy adoption.
The Kingdom has committed to achieving net-zero greenhouse gas emissions by 2060, a goal announced by Crown Prince Mohammed bin Salman during the 2021 Saudi Green Initiative Forum.
Saudi Arabia’s focus on decarbonizing its oil and gas sector—especially through advanced technologies like carbon capture — complements the symposium’s core agenda and reinforces the country’s leadership in promoting regional and international climate cooperation ahead of COP30.
According to SPA, the symposium drew broad participation, including representatives from OAPEC member states, international organizations, and over 15 leading global firms specializing in emissions reduction technologies.
Delegates from around 20 Arab and foreign countries attended, with nearly 140 experts and stakeholders present. The event featured 23 technical papers showcasing the latest innovations and strategies in emissions mitigation.
Saudi Reinsurance earns ‘A2’ rating from Moody’s, outlook stable
RIYADH: Moody’s has upgraded the insurance financial strength rating of Saudi Reinsurance Co. to “A2” from “A3” and revised its outlook to stable from positive, a new report showed.
Released by the global credit rating agency, the data indicated that Saudi Re’s A1.sa national scale IFSR has also been affirmed, according to a statement.
The upgrade of Saudi Re’s IFSR signifies the company’s improved business and financial position following the Public Investment Fund’s minority acquisition and the government’s implementation of enhanced reinsurance escrow regulations. Saudi Re is well-equipped to utilize these regulations to bolster its market position and potential for growth within the Kingdom.
The upgrade also aligns with the fact that the company experienced premium growth in 2024, with gross written premiums increasing by approximately 48 percent to SR2.36 billion ($629 million), driven by the strict implementation of existing domestic reinsurance ceding requirements and its participation in new government-mandated insurance initiatives.
The newly released Moody’s statement said: “Furthermore, the rating upgrade reflects our expectation that Saudi Re will continue to benefit from the ongoing growth and diversification of the Saudi economy, along with government initiatives aimed at promoting growth in the local insurance sector.”
“In addition, we believe that the company’s increased capital base, the good diversification of its business, and its central role in supporting the local insurance sector enable it to withstand potential shocks that may arise. We expect the ongoing trade tensions and increased volatility in financial markets to have a limited impact on the company,” it added.
The statement further disclosed that the organization expects the firm’s strong market position, coupled with its affiliation with PIF, to support continued growth in business volumes as market opportunities expand.
It also emphasized that the company’s strong capital adequacy and consistent underwriting discipline support its ability to maintain a solid balance sheet and profitability, even amid rapid growth.
“The stable outlook reflects our expectation that Saudi Re will maintain its underwriting discipline and good profitability, while maintaining strong capital adequacy and asset quality. Factors that could lead to an upgrade or downgrade of the ratings,” the statement said.
Moody’s continued to note that increased ownership by PIF and evidence of explicit support may also contribute to a rating upgrade.
