SAN FRANCISCO: A consortium led by SoftBank Group will buy a large number of shares of Uber Technologies in a deal that values the ride-services firm at $48 billion (SR180 billion), Uber said on Thursday, in a victory for new Chief Executive Dara Khosrowshahi.
The price is a roughly 30 percent discount to Uber’s most recent valuation of $68 billion. The deal will trigger a number of changes in the way the board oversees the company, which is dealing with federal criminal probes, a high-stakes lawsuit and an overhaul of its workplace culture.
SoftBank and the rest of the consortium, which includes Dragoneer Investment Group, will own approximately 17.5 percent of Uber, a person familiar with the matter said. That stake includes a share purchase, through a tender offer, from earlier investors and employees at the $48 billion valuation, as well as a $1.25 billion investment of fresh funding at the $68 billion level.
Uber said the deal would close early next year. On Thursday it said that existing investors had agreed to sell enough shares for SoftBank to go through with the transaction.
SoftBank itself will keep a 15 percent stake, while the rest of the consortium will own approximately 3 percent, according to a second person familiar with the matter.
Private equity group TPG was part of the consortium of buyers, a source familiar with the matter said.
Khosrowshahi, who took the top job in August after Travis Kalanick was forced to step down in June, helped negotiate the deal. Uber is losing more than $1 billion each quarter, and a new cash infusion is critical. The company is also planning an initial public offering in 2019.
Uber will use the investment “to support our technology investments, fuel our growth, and strengthen our corporate governance,” a spokesperson, who declined to be named, said.
When the deal is completed, the company will make governance changes, expanding Uber’s board from 11 to 17 members including four independent directors, limiting some early shareholders’ voting power and cutting the control wielded by Kalanick, who remains on the board and is still one of the largest stakeholders.
“The stockholders did the smart thing. The price is less important than locking in the governance changes and securing the support of the world’s most powerful technology investor,” said Erik Gordon an entrepreneurship expert at the University of Michigan’s Ross School of Business.
Rajeev Misra, chief executive of SoftBank’s Vision Fund, a $98 billion tech investment vehicle, will join the Uber board, The Wall Street Journal reported. SoftBank will get two seats on the expanded board, a source told Reuters.
Misra said in a statement that SoftBank has “tremendous confidence in Uber’s leadership and employees.” Uber board members agreed in early November to governance changes to pave the way for the SoftBank deal.
Some initial investors in the consortium, including General Atlantic, dropped out over disagreement about the price offered to shareholders, Reuters previously reported.
SoftBank founder Masayoshi Son has taken a keen interest in ride-hailing companies around the world, and already has sizeable stakes in China’s Didi, Brazil-based 99, India’s Ola and Singapore Grab, all of which have competed with Uber. Didi last week raised $4 billion, including some investment from SoftBank.
The Uber investment comes after a year of troubles for the company, including a lawsuit by Alphabet Inc’s self-driving car unit Waymo that alleges trade-secrets theft and federal investigations that span possible bribery of foreign officials in Asian countries and the use of software to evade regulators.
Over the past year, a former employee’s charges of endemic sexual harassment led to an internal review, London said it is stripping Uber of its license and Uber revealed it had covered up a major hack.
Venture capital firms Benchmark, which owns 13 percent of Uber, had indicated that it would sell a portion of its shares, SoftBank said last month.
Menlo Ventures, another large shareholder, would tender shares, Managing Director Shawn Carolan said at the time. Carolan on Thursday praised the deal without describing Menlo’s participation. Benchmark did not respond to a request for comment.
SoftBank consortium to buy 17.5% stake in Uber
SoftBank consortium to buy 17.5% stake in Uber
Oil Updates – crude falls on demand growth concerns, robust dollar
SINGAPORE: Oil prices fell on Friday on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3 percent.
Brent crude futures fell by 41 cents, or 0.56 percent, to $72.47 a barrel by 7:20 a.m. Saudi time. US West Texas Intermediate crude futures fell 39 cents, or 0.56 percent, to $68.99 per barrel.
Chinese state-owned refiner Sinopec said in its annual energy outlook, released on Thursday, that China’s crude imports could peak as soon as 2025 and the country’s oil consumption would peak by 2027 as diesel and gasoline demand weaken.
“Benchmark crude prices are in a prolonged consolidation phase as the market head toward the year end weighed by uncertainty in oil demand growth,” said Emril Jamil, senior research specialist at LSEG.
He added that OPEC+ would require supply discipline to perk up prices and soothe jittery market nerves over continuous revisions of its demand growth outlook. The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, recently cut its growth forecast for 2024 global oil demand for a fifth straight month.
Meanwhile, the dollar’s climb to a two-year high also weighed on oil prices, after the Federal Reserve flagged it would be cautious about cutting interest rates in 2025.
A stronger dollar makes oil more expensive for holders of other currencies, while a slower pace of rate cuts could dampen economic growth and trim oil demand.
J.P. Morgan sees the oil market moving from balance in 2024 to a surplus of 1.2 million barrels per day (bpd) in 2025, as the bank forecasts non-OPEC+ growth increasing by 1.8 million bpd in 2025 and OPEC output remaining at current levels.
In a move that could pare supply, G7 countries are considering ways to tighten the price cap on Russian oil, such as with an outright ban or by lowering the price threshold, Bloomberg reported on Thursday.
Russia has evaded the $60 per barrel cap imposed in 2022 using its “shadow fleet” of ships, which the EU and Britain have targeted with further sanctions in recent days.
Saudi Arabia drives MENA e-commerce growth during festive season: report
RIYADH: Saudi Arabia played a pivotal role in driving a 44 percent increase in e-commerce orders across the Middle East and North Africa region during the 2024 festive season, according to a joint study by Flowwow and Admitad.
The surge was fueled by trends in mobile shopping, cultural celebrations, and gifting. Saudi Arabia led the way in mobile commerce adoption, with 62 percent of online purchases made via mobile devices.
The report also highlighted significant growth in the broader MENA e-commerce market, which is expected to reach $50 billion by 2025. During the holiday season, this market experienced a substantial uptick in activity.
Flowwow, a UAE-based gifting marketplace, reported a 62 percent rise in purchases, an 86 percent increase in sales turnover, and a 15.76 percent increase in average order value compared to the previous year.
Slava Bogdan, CEO of Flowwow, said: “The festive season is one of the peak shopping periods for Flowwow gifting marketplace. It’s a time when our customers focus on celebrating and sharing joy through thoughtful gifts for their loved ones.”
He continued: “Starting with White Friday in November and continuing through the Christmas and New Year festivities, this period represents a critical shopping time in the GCC region, especially with the growing expat population.”
According to the study, November emerged as the busiest month for e-commerce, driven by Black Friday sales and preparations for Christmas and New Year. Ramadan in March and International Women’s Day in January also contributed to sales growth, with increases of 11 percent and 14 percent, respectively.
Across the region, the average order value rose from $30 in 2023 to $36 in 2024, reflecting a shift toward higher spending on quality items.
The report further revealed that mobile commerce accounted for 44.6 percent of all orders in the region in 2024. Following Saudi Arabia’s lead, the UAE recorded 60 percent adoption, Bahrain had 59 percent, and Oman followed with 58 percent. Kuwait and Qatar also saw strong mobile commerce uptake at 57 percent and 54 percent, respectively.
Marketplaces continued to dominate, contributing to 67 percent of total sales. Key product categories included electronics, fashion, and home and garden, while high-value items like furniture and jewelry drove higher AOVs.
“This year’s surge in e-commerce activity demonstrates the evolving shopping habits in the MENA region, where mobile-first experiences and marketplace-driven sales have become the backbone of consumer behavior. Our data highlights how businesses can leverage these trends to optimize their strategies and grow significantly during peak seasons,” said Anna Gidirim, CEO of Admitad.
Among the countries in the region, Kuwait recorded the highest average order value at $127, followed by the UAE at $102, Egypt at $74, Saudi Arabia at $52, and Qatar at $50.
Pakistan saw the largest sales growth at 28 percent, with notable increases in Kuwait at 17 percent and Saudi Arabia at 8 percent, according to the survey data.
The report emphasized the importance of cultural celebrations in shaping consumer behavior and underscored the growing role of mobile commerce and marketplaces in the region’s e-commerce landscape.
Closing Bell: Saudi main index ends week in red; trade volume nears $3bn
RIYADH: Saudi Arabia’s Tadawul All Share Index closed in red on Thursday, losing 68.61 points, or 0.57 percent, to settle at 11,892.44.
The total trading turnover of the benchmark index was SR10.9 billion ($2.9 billion), as 51 of the listed stocks advanced, while 185 retreated.
The MSCI Tadawul Index also decreased by 8.95 points, or 0.60 percent, to close at 1,489.42.
The Kingdom’s parallel market Nomu gained 247.96 points, or 0.79 percent, to close at 31,444.21. This comes as 33 of the listed stocks advanced, while 49 retreated.
The best-performing stock of the day was Savola Group, with its share price surging by 9.97 percent to SR36.95.
Other top performers included Middle East Specialized Cables Co., which saw its share price rise by 5.14 percent to SR41.90, and Arabian Centers Co., which saw a 3.94 percent increase to SR21.62.
Bawan Co. and Al-Baha Investment and Development Co. also saw a positive change, with their share prices surging by 3.64 percent and 3.23 percent to SR57 and SR0.32, respectively.
The worst performer of the day was Fitaihi Holding Group, whose share price fell by 6.68 percent to SR4.05.
Arabian Contracting Services Co. and AYYAN Investment Co. also saw declines, with their shares dropping by 4.17 percent and 14.42 percent to SR156.40 and SR3.87, respectively.
Moreover, Raydan Food Co. and East Pipes Integrated Co. for Industry also saw declines in today’s session, with their share prices dropping by 3.32 percent and 3.30 percent to SR22.10 and SR135, respectively.
On Nomu, the top performer was Leaf Global Environmental Services Co., with its share price surging by 13.29 percent to reach SR110.
In second place was Intelligent Oud Co. for Trading, which saw an 8.92 percent surge in terms of share price to SR48.25, followed by National Environmental Recycling Co., which saw a 6.71 percent surge in its share price to reach SR8.11.
Saudi Azm for Communication and Information Technology Co. and Gas Arabian Services Co. also fared well with 6.16 percent and 4.67 percent increases, respectively.
On the announcement front, United Electronics Co., also known as eXtra, has recommended repurchasing up to 3 million ordinary shares to be held as treasury shares, according to a filing with the Tadawul.
The board highlighted that the current market price of the company’s stock is below its fair value, prompting the buyback proposal.
The repurchase will be financed through eXtra’s internal resources, including proceeds from the successful initial public offering of its subsidiary, United International Holding Co.
Currently, 4.4 percent of eXtra’s share capital is held as treasury shares. The company highlighted that repurchased shares will not carry voting rights at shareholders’ meetings.
The proposed buyback is subject to approval by the extraordinary general meeting. It will also require compliance with financial solvency requirements outlined in the executive regulations of the Companies Law governing listed joint-stock companies.
ACWA Power Co. has also submitted a request to the Capital Market Authority to increase its capital through an SR7.13 billion rights issue, according to a bourse filing.
The company stated that further updates regarding the capital increase will be disclosed in due course.
Red Sea International Co.’s subsidiary, Fundamental Installation for Electric Work Co., has signed an agreement to increase its credit facilities with Saudi Awwal Bank by SR100 million, according to a statement to Tadawul.
As a result, the total value of the facilities will rise to SR296.11 million, with the financing period extending until Dec. 18, 2025.
The agreement includes a promissory note of SR296.10 million signed by Fundamental Installation for Electric Work, Red Sea International, and MSB Holding, as well as Fares Esamet Al-Saadi and Zeyad Al-Sayegh.
Personal guarantees of SR14.50 million and SR29.01 million were also provided by Al-Sayegh and Al-Saadi, respectively, while MSB Holding and Red Sea International issued corporate guarantees of SR101.56 million and SR151.01 million, respectively.
The additional credit facilities aim to increase the limit of letters of credit to support the import and procurement of goods for one of the company’s projects.
United Electronics Co.’s share price increased by 3.05 percent in Thursday’s trading session to reach SR98.
ACWA Power Co. Saw a 2.13 percent drop in its share price to close Thursday’s trading at SR377.60.
Red Sea International Co.’s share price dropped 1.06 percent to settle at SR0.60 by Thursday’s end.
NEOM signs JV agreement to accelerate construction automation
RIYADH: NEOM has entered into a joint venture agreement with Samsung C&T Corp. to advance the development and deployment of construction automation technology in Saudi Arabia.
This strategic partnership will unlock an initial investment exceeding SR1.3 billion ($350 million) in construction robotics. The agreement comes just a week after NEOM signed a separate deal with GMT Robotics to fast-track the delivery of its ambitious projects.
According to the statement, the collaboration with Samsung C&T will focus on automating rebar cage assembly using advanced robotic welding and tying techniques. This innovation aims to enable the creation of large, pre-manufactured reinforcement cages, a key component in construction.
Rebar cages are critical tension devices used in concrete to form reinforced structures, providing strength to infrastructure projects. “Sustainability is a core principle at NEOM, driving not only what we build but how we build it. By automating labor-intensive processes through robotics, we are pushing the boundaries of construction innovation,” said Majid Mufti, CEO of the NEOM Investment Fund.
The automated rebar assembly technology is expected to reduce manual labor by up to 80 percent, minimize material waste, enhance safety and quality, and lower rebar cage assembly costs by up to 40 percent.
NEOM also emphasized that the agreement would establish rebar cage assembly factories in the region, creating over 2,000 skilled local jobs. This move is crucial to meet the extensive construction needs for THE LINE and other key developments within NEOM.
“Developing an advanced industrial manufacturing economy at NEOM is a significant step in accelerating modern construction methods across our flagship projects,” said Bandar Ashrour, sector head of design and construction at NEOM.
“This agreement will not only boost local talent but also align with Saudi Arabia’s vision to transform the Kingdom into a leader in advanced industries, ensuring long-term economic resilience and global competitiveness.”
NEOM’s partnership with Samsung C&T marks a pivotal moment in the ongoing development of the giga-project, positioning it as a leader in advancing construction technologies.
The JV will help NEOM leverage emerging technologies and forge strategic collaborations with industry giants to revolutionize construction practices in the region. “Together, we aim to revolutionize the construction industry by incorporating cutting-edge robotics and automation solutions, which will redefine how projects within NEOM are delivered,” said Hojin Jung, president and head of corporate new business at Samsung C&T Corp.
This joint venture underscores NEOM’s commitment to transforming the construction sector and highlights its role as a frontrunner in integrating innovative technologies within large-scale infrastructure projects.
Women leaders, innovators take center stage at Forbes Summit in Riyadh
RIYADH: Women’s leadership and achievements were the focus of a dynamic summit in Riyadh, where a series of panel discussions and workshops highlighted empowerment, career success, and navigating the changing business landscape.
The Forbes Middle East Women’s Summit, a two-day event held at the Riyadh International Convention & Exhibition Center, concluded on Dec. 19, celebrating the significant contributions of women across the region.
The summit featured two primary stages: the Empowerment Arena and the She Leads Hub. Discussions at the Empowerment Arena explored vital topics, including advancing healthcare as part of Vision 2030, promoting women’s leadership, and redefining entrepreneurship.
At the She Leads Hub, panels delved into strategies for professional success, enhancing well-being and sustainability, and empowering women in leadership positions.
Notable attendees included Princess Doaa bint Mohammed, CEO of Al Mohra Education Co. and former supreme president of the Arab Women’s Authority, and Princess Lamia bint Majed Saud Al-Saud, secretary-general and board member of Alwaleed Philanthropies.
Mishaal Ashemimry, the first female aerospace engineer in the Gulf Cooperation Council and founder of MISHAAL Aerospace, delivered an inspiring open mic session titled “The Hard Decisions You Have to Make to Pursue Your Passion.” She urged attendees to take bold steps in their careers, despite the obstacles they may face.
Speaking to Arab News, Ashemimry shared that her passion for space began during a family trip to the desert of Unaizah, a governorate in Al-Qassim.
“I looked up to the sky. I was called upon by the stars because I was very curious about them. I couldn’t get enough answers about the stars, so I decided, well, I gotta go to space to understand this stuff, and the only way to go to space is to make a rocket,” she said.
Ashemimry, who overcame numerous challenges from people who doubted and underestimated her, emphasized that resilience, determination, and perseverance are essential for success in business.
“You will fail and you will stumble. You will face people who will be against you. You need to believe in yourself and be determined enough to achieve what you want,” she added.
American-Jordanian abstract artist Aida Murad, one of the summit’s featured artists, presented a colorful collection of paintings. In an interview with Arab News, Murad shared her experiences as both an artist and entrepreneur in Saudi Arabia.
“I feel very empowered here. It’s a high-value-based culture, so when your values align, things become much easier. People and companies are also highly accessible here — more so than in other countries where I’ve done business. I think it’s because there’s a genuine eagerness to invite value-aligned individuals to Saudi Arabia,” she said.
Murad also highlighted the importance of adaptability and building connections as key strategies for business expansion.
She added: “Create a target list. It sounds simple, but it’s often the most basic things that people overlook. Take the time to read your audience. There are moments when they’re overwhelmed and others when they’re more available — timing is everything.”
Furthermore, she underscored the significance of understanding Saudi Arabia’s unique business culture. “There are countless events here for networking — attend them. It’s straightforward, but here, business isn’t conducted over emails as much as it is in person or through WhatsApp. Understanding how people communicate and conduct business here is crucial to building meaningful connections.”
