DETROIT: Electric cars will pick up critical momentum in 2017, many in the auto industry believe — just not in North America.
Tighter emissions rules in China and Europe leave global carmakers and some consumers with little choice but to embrace plug-in vehicles, fueling an investment surge, said industry executives gathered in Detroit this past week for the city’s annual auto show. “Car electrification is an irreversible trend,” said Jacques Aschenbroich, chief executive of auto supplier Valeo, which has expanded sales by 50 percent in five years with a focus on electric, hybrid, connected and self-driving cars.
In Europe, green cars benefit increasingly from subsidies, tax breaks and other perks, while combustion engines face mounting penalties including driving and parking restrictions.
China, struggling with catastrophic pollution levels in major cities, is aggressively pushing plug-in vehicles. Its carrot-and-stick approach combines tens of billions in investment and research funding with subsidies and regulations designed to discourage driving fossil-fueled cars in big cities.
The road ahead for electric vehicles (EVs) in the US, however, could have more hairpin curves. Regulators in California and a group of other US states are pushing ahead with state-level rules mandating rising quotas for electric, or “zero- emission” vehicles.
But plug-in registrations in the US fell in 2015 and the market share of electric-only vehicles declined further to 0.37 percent in 2016, as cheap fuel drove demand for gas-guzzling sport utility vehicles and pickup trucks.
President-elect Donald Trump has pledged to roll back environmental and climate rules. Groups representing established automakers asked Trump to review Obama administration fuel economy targets out to 2025, even before the outgoing administration formally signed them into effect on Friday. Automakers have also asked Trump to work toward a single, national set of rules to govern automotive greenhouse gas emissions, a move that could spark legal challenges to electric car quotas in California and other states on grounds they present a separate standard.
Still, industry executives in Detroit said hitting the brakes on electric vehicles in the US would not relieve the pressure to bring them to market, because China and Europe are forging ahead with policies to expand sales of plug-in cars.
That is why Ford is moving forward with previously announced plans to invest $4.5 billion for plug-in vehicles by 2020, Chief Executive Mark Fields said earlier this month. “The industry is changing, the infrastructure is starting to build, and that is why our view is (that) within the next 15 years we will see more electrified offerings…,” Fields said as he unveiled a $700 million plan to build a battery SUV and other plug-in vehicles in Flat Rock, Michigan.
To drive the shift to electric, industry executives said they needed more help from governments.
In China, Europe and the US, automakers are advocating new infrastructure money go to public electric car charging networks.
In the US, EV manufacturers are pushing for the continuation of a $7,500 federal tax subsidy for consumers who buy a fully electric car. Even if Trump were to try to eliminate it, it would take time as Congress would have to act. “There is not a disagreement that the world is going electric,” California Air Resources Board Chair Mary Nichols said on the sidelines of the auto show. The debate, she said, was “over timing, not the goal.”
The Chinese electric car market cast its shadow over the Detroit auto show, where manufacturers showed off plug-in hybrid and electric models that will likely do scant business in the US. IHS Automotive predicts Chinese plug-in deliveries will hit 1 million in 2019, four years before the US. China pulled ahead in 2015 with a fourfold sales surge before adding 55 percent last year to 348,000 vehicles, with the US at 138,000.
“Look to China rather than the US for the future of electric cars,” Gerard Detourbet, a Renault-Nissan executive leading low-cost plug-in development, said recently. “China is compelled to act — that is the main difference.”
China, Europe drive shift to electric cars as US lags
China, Europe drive shift to electric cars as US lags
Closing Bell: Saudi main index edges down 0.7% to close at 11,709
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.
Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks
- Financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks
- Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion
RIYADH: Saudi Arabia dominated Forbes’ “30 Most Valuable Banks 2025” ranking, with 10 entries boasting a combined market value of $269 billion.
According to the business-focused media outlet, financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks.
The UAE followed with seven facilities valued at $153.4 billion, while Qatar contributed six banks worth $76.7 billion. Morocco and Kuwait placed three and two banks on the list, with market values of $23.7 billion and $68.4 billion, respectively.
The Middle East and North Africa region’s banking sector remains resilient and is set for strong growth in 2025, driven by economic diversification, favorable financial conditions, and a projected 3.5 percent economic expansion fueled by infrastructure projects and rising non-oil activity, according to a recent report by Ernst & Young.
In a statement announcing its latest rankings, Forbes said: “This year’s list features banks from seven countries, with 26 entries being Gulf-based. Saudi Arabia represents a third of the list with 10 entries, with an aggregate market value of $269 billion.”
The media firm noted that the total market value of the 30 banks increased by 3.4 percent year over year, rising from $581.1 billion in February 2024 to $600.8 billion as of Jan. 31, 2025.
Al-Rajhi Bank holds the top spot
Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion — representing 17.6 percent of the total market value of the 30 banks.
It was followed by Saudi National Bank at $54.7 billion, and the UAE’s First Abu Dhabi Bank, valued at $43.7 billion.
Beyond the top three, Qatar’s QNB Group and Kuwait Finance House ranked fourth and fifth, with market values of $41.2 billion and $38.3 billion, respectively.
They were followed by the UAE’s Emirates NBD Group at $28.9 billion and Kuwait’s National Bank of Kuwait at $27.1 billion.
Other notable banks in the ranking include Abu Dhabi Commercial Bank and Riyad Bank. The list also features banks from Morocco and Oman.
A resilient sector
MENA’s banking sector has shown stability over the past year, supported by higher interest rates and robust oil prices.
According to a Fitch Ratings report published in 2024, the economic environment in the region has sustained liquidity levels, profitability, and strong capital buffers for most Gulf Cooperation Council banks.
Forbes Middle East compiled the ranking based on reported market values of publicly listed banks across the Arab world as of Jan. 31, 2025. Subsidiaries of listed companies were excluded from the ranking, and currency exchange rates were taken as of the same date.
Saudi Arabia opens doors to global mining giants with $97.5m exploration licenses
- Jabal Sayid and Al-Hajjar cover a combined area of 4,788 sq. km
- Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site
- Competition saw 14 local and international companies submit bids after passing the pre-qualification stage
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 Kingdom is home to over 5,300 mineral sites valued at SR5 trillion ($1.33 trillion), and the Ministry of Industry and Mineral Resources is working to unlock these 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.
Egypt, India reaffirm $12bn trade target during ministerial meeting
- Minister of Investment and Foreign Trade Hassan El-Khatib emphasized Egypt’s commitment to attracting more Indian investments
- Push positions India as Egypt’s sixth-largest trading partner
RIYADH: Egypt and India have reaffirmed their commitment to tripling bilateral trade from $4.2 billion in 2024 to $12 billion within five years, reinforcing a target set last year during a joint meeting.
The pledge came during a trip to India by Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib, when he met with the Asian country’s Commerce and Industry Minister Piyush Goyal.
The push builds on a record $7.26 billion in bilateral trade during the 2021-22 financial year — a 75 percent rise from the previous year — positioning India as Egypt’s sixth-largest trading partner, according to the North African country’s Central Agency for Public Mobilization and Statistics.
Trade fell to $4.6 billion between April 2023 and February 2024, largely due to the Israel-Hamas conflict and Houthi disruptions to Suez Canal traffic.
El-Khatib emphasized Egypt’s commitment to attracting more Indian investments in key sectors such as renewable energy, chemicals, and automotive manufacturing, as well as pharmaceuticals, textiles, and information and communication technology.
“Al-Khatib also highlighted the expected surge in Indian investments in Egypt in the coming period, especially in light of the major investment agreements concluded by Indian companies in the energy sector, including the signing of two agreements for the production of green hydrogen and green ammonia in Egypt with an investment cost of up to $12 billion, in addition to other Indian investments in various sectors,” an official release stated.
The minister added that his country is ready to provide all necessary support and facilitation for Indian investors, highlighting Egypt’s efforts to create a favorable business climate by improving infrastructure, developing new ports, and enhancing existing facilities, including the Suez Canal Economic Zone.
El-Khatib also underscored India’s growing presence in other industries within the Egyptian market.
During the discussions, the minister extended an official invitation to Goyal to visit Egypt in 2025 to further strengthen bilateral economic ties and explore additional collaboration opportunities.
“Goyal confirmed the ministry’s commitment to taking the necessary measures to facilitate the entry of Egyptian products into the Indian market, particularly agricultural exports,” the release added.
The meeting also covered preparations for an upcoming visit by an Indian business delegation, led by the Asian country’s Ministry of Commerce and Industry and the Confederation of Indian Industry, to discuss the nation’s proposed industrial area in the Suez Canal Economic Zone.
Madinah’s licensed hospitality facilities grow by 93%: official data
- Number of licensed rooms also saw growth, rising by 62% to nearly 62,000
- Number of licensed hospitality facilities across Saudi Arabia exceeded 3,950 by the end of the third quarter of 2024
RIYADH: The number of licensed hospitality facilities in Madinah has surged to over 450 in 2024, marking a 93 percent increase compared to the previous year, according to the latest Ministry of Tourism data.
The number of licensed rooms also saw growth, rising by 62 percent to nearly 62,000. This increase positions Madinah as the third-leading city in Saudi Arabia for the number of licensed hospitality facilities, following Makkah and Riyadh.
This expansion aligns with the ministry’s commitment to enhancing service quality and supports the National Tourism Strategy’s goal of accommodating more than 37 million Hajj and Umrah travelers, thus strengthening both Islamic and national identity. It also reflects the broader growth of the Kingdom’s hospitality sector, extending beyond Makkah.
The total number of licensed hospitality facilities across Saudi Arabia exceeded 3,950 by the end of the third quarter of 2024, a 99 percent increase from the same period in 2023. Licensed rooms reached 443,000, a 107 percent rise from the previous year’s 214,000.
In a similar trend, Makkah’s hospitality sector also saw substantial growth. By the end of 2024, Makkah had 1,030 licensed facilities, reflecting an 80 percent increase compared to the previous year. This growth cements Makkah’s position as the leader in Saudi Arabia for the highest number of licensed facilities and rooms, underscoring the region's continued focus on enhancing the visitor experience, as reported by the Saudi Press Agency.
According to CoStar, a global real estate data provider, both Makkah and Madinah are expected to see continued development, with 17,646 and 20,079 rooms, respectively, in various stages of construction by 2025.
Saudi Arabia welcomed 30 million inbound tourists in 2024, up from 27.4 million in 2023, reflecting a strong growth trajectory. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to increase the tourism sector’s contribution to the gross domestic product from 6 percent to 10 percent.
In preparation for the 2024 Hajj season, Makkah’s licensed hospitality facilities reached 816, providing 227,000 rooms to accommodate pilgrims. To further enhance the pilgrimage experience, authorities have introduced several new initiatives, including improved crowd management, digital meal distribution, and an expanded electric golf cart fleet at the Grand Mosque.
The General Authority for the Care of the Grand Mosque and the Prophet’s Mosque has also implemented spatial guidance systems and multilingual support to improve visitor navigation, ensuring a seamless pilgrimage experience.
Saudi Arabia’s growing hospitality and tourism sector reflects its ambition to become a global travel hub, catering to both religious and leisure visitors alike.
