LONDON: Qatar’s refusal to settle a £200 million bill is said to have been one of the final nails in the coffin for UK construction giant Carillion, which went into liquidation on Monday.
Carillion claims payment is outstanding for work on a £500 million ($692 million) development deal related to the 2022 World Cup.
Rudi Klein, chief executive of the Specialist Engineering Contractors’ (SEC) Group, said the Qatar contract was among a small number of “big infrastructure projects that meant the end was nigh for Carillion.”
“The Qatari government will be now looking very urgently for alternative contractors to do this work and they may have to pay rather a lot more to do that,” Klein told Arab News.
The unsettled debt is the latest shadow to engulf preparations for the World Cup in 2022.
Controversy was initially cast over Qatar’s 2022 World Cup bid when allegations of corruption emerged followed by reports of exploitation from the construction sites, where workers complained of inhumane conditions and unpaid wages.
Contractors then warned of delays to World Cup projects in June 2017 when Gulf countries began the ongoing boycott of Qatar.
The Qatari government now faces further complications with the collapse of Carillon, which was involved in the $5.5 billion Msheireb redevelopment of Doha’s Downtown ahead of the World Cup.
In October 2017, City A.M. reported that top Carillion executives were making monthly trips to Doha to persuade Msheireb, backed by the Qatar Foundation, to settle the outstanding bill.
Msheireb, however, says it is owed a significant sum for contractural obligations it claims Carillon has failed to fulfil.
Carillion is one of the largest contractors operating in the Middle East, with projects including the Dubai Canal and the Royal Opera House in Oman, mostly through joint ventures.
The fall in oil prices contributed to a slow down in construction spending across the region, prompting Carillion to start pulling out of Middle East markets.
Commentators criticizing Carillion’s construction delivery model in the wake of its downfall emphasized the danger inherent in its practice of outsourcing on a large scale, particularly when operating in overseas markets.
“In the Middle East, where construction works are delivered very site-labor intensively and with high proportions of unskilled transient migrant labor, the delivery failure risks in terms of cost overruns, delays and quality problems can be magnified,” said Mark Farmer, CEO of Cast, a real estate and construction consultancy.
“This undoubtedly creates heightened risk for those contractors that are not able to adequately supervise or control and manage the construction process.”
Klein said Carillion’s role as a “middleman” left the company ill-equipped to supervise projects, which could be more efficiently managed by smaller, regional contractors. Klein added, “95 percent of what Carillion did was outsourced; they never did a thing.
“Now is time to get rid of the middleman and to look at how we engage directly with the people actually doing the work.”
The collapse of Carillion was a dramatic unraveling of the UK’s second-largest construction firm, which employs 43,000 people worldwide, including 19,000 workers in the Gulf.
British Prime Minister Theresa May on Wednesday defended the government’s decision to sign major deals with the company after it issued its first profit warning in July. Carillion has public sector and private partnership contracts worth £1.7 billion in the UK, including for services in the NHS and Ministry of Defense.
“We’re making sure in this case that public services continue to be provided, that workers in those public services are supported and taxpayers are protected,” May told MPs.
Labour leader Jeremy Corbyn accused the British government of “negligence” over Carillon and called on May to “end the costly racket of private companies running services for the public.”
Carillion’s demise is being compared to the impact of the Lehman Brothers’ collapse on the banking sector as the reverberations reach further down the supply chain.
Brian Berry chief executive of the Federation of Master Builders warned that the “domino effect” is already underway.
“This is the biggest thing that’s hit the construction industry since I can remember; it’s got the potential to be a disaster.”
Thousands of suppliers are owed money by Carillion, many of which are having to lay off workers as banks call in their debts. Shareholders are also among those suffering severe losses.
Along with the Qatar contract, three UK joint public and private contracts are also being blamed for the collapse. Two were for new hospitals and another for a road project in Scotland.
Qatar’s unpaid World Cup 2022 contract in spotlight amid anger over Carillion collapse
Qatar’s unpaid World Cup 2022 contract in spotlight amid anger over Carillion collapse
Closing Bell: Saudi main index closes in red at 11,364
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 34.63 points, or 0.3 percent, to close at 11,364.11.
The total trading turnover of the benchmark index was SR4.71 billion ($1.25 billion), as only 65 stocks advanced, while 173 retreated.
The MSCI Tadawul Index decreased by 3.77 points, or 0.26 percent, to close at 1,452.01.
The Kingdom’s parallel market, Nomu, rose, gaining 153.78 points, or 0.55 percent, to close at 27,931.49. This comes as 40 stocks advanced, while 34 retreated.
The best-performing stock on the main market was Al Majed Oud Co., with its share price surging by 9.88 percent to SR129.
Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.38 percent to SR15.24, and MBC Group Co., which saw a 3.79 percent increase to SR42.45.
Gulf General Cooperative Insurance Co. recorded the largest decline of the day, with its share price slipping 9.98 percent to SR7.76.
United Cooperative Assurance Co. saw its shares fall by 9.23 percent to SR8.06, while Middle East Healthcare Co. recorded a decline of 8.91 percent, closing at SR64.40.
On the announcements front, ACWA Power Co. reported its interim financial results for the first three months of the year, posting a net profit of SR427.1 million — a 14.9 percent decline compared to the previous quarter.
The company attributed the drop in net profit to an impairment recovery recognized in the prior quarter, higher financial charges, and a lower deferred tax credit.
ACWA Power Co.’s shares on the main market rose 0.54 percent in today’s trading session, closing at SR299.40.
In another announcement, Gas Arabian Services Co. also announced its financial results for the same period with its net profit rising by 46.9 percent to SR31.3 million compared to the same period last year.
The company credited the growth to substantial growth in revenue and savings in cost of revenue.
The GAS’s share price traded 0.89 percent higher to reach SR15.80.
During the first quarter of the year, Saudi Reinsurance Co.’s net profit after Zakat reached SR35.4 million, up by 11.3 percent compared to the same period in 2024.
This growth was attributed to an increase in reinsurance revenue by 56 percent, coupled with a rise in net profit of reinsurance results and net investment profit.
Moreover, the National Shipping Co. of Saudi Arabia and Bupa Arabia for Cooperative Insurance Co. also announced their financial results for the first quarter of 2025, with net profits reaching SR532.8 million and SR380.2 million, respectively.
Bahri’s shares on the main market declined by 3.55 percent to close at SR29.90, while Bupa Arabia’s shares fell 0.56 percent to SR178.20.
Saudi Arabia, France set to deepen industrial, mining ties
JEDDAH: Mining, critical minerals, aerospace, and manufacturing took center stage as Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef concluded a three-day visit to France aimed at enhancing bilateral cooperation and securing strategic investments.
Alkhorayef met with senior French officials and executives from leading companies such as Airbus, Safran, and Orano Mining to explore opportunities for collaboration, particularly in the areas of critical minerals, which are vital for clean energy, and advanced aerospace manufacturing, the Saudi Press Agency reported.
The discussions also aimed to strengthen ties in the broader industrial and manufacturing sectors, central to the Kingdom’s push for technological localization.
The visit, which began on May 5, underscores Saudi Arabia’s ongoing efforts to diversify its economy and align its industrial strategy with the ambitious goals of Vision 2030.
In a statement posted on X, Alkhorayef said: “I concluded my official visit to the French Republic, during which I held constructive meetings with leaders in the public and private sectors, aimed at enhancing industrial and mining cooperation, and discussing opportunities for technology transfer and attracting qualitative investments to localize several strategic industries in the Kingdom, in order to achieve the goals of Vision 2030.”
A key focus of the visit was on securing a stable supply of critical minerals, such as lithium and cobalt, essential for Saudi Arabia's green energy initiatives and the growing electric vehicle sector.
Alkhorayef met with France’s Interministerial Delegate for Strategic Minerals and Metals Supplies, Benjamin Gallezot, to discuss ways of ensuring global supply chain resilience and promoting sustainability within the mining sector.
“We also emphasized the importance of international partnerships in enhancing the sustainability of the global mining sector,” the minister added.
The visit included a tour of Airbus Helicopters’ Marignane facility and meetings with Airbus CEO Guillaume Faury where Alkhorayef explored advanced aircraft manufacturing technologies.
The minister also mentioned discussing mutual opportunities with the CEO “to exchange expertise and transfer knowledge and technology, which will enhance the localization of the aviation industry in the Kingdom.”
Alkhorayef met with leaders from Orano Mining, Bel Group, Sidel, and Safran to explore joint investment opportunities across multiple industries, including food production, satellite technologies, and high-tech manufacturing.
The focus was on leveraging Saudi Arabia’s favorable investment climate, which includes substantial capital support and long-term growth enablers, to attract foreign direct investment.
Alkhorayef’s visit also included discussions with Airbus executives in Toulouse, where the minister noted the rapid growth of Saudi Arabia’s aviation sector. He stated that Saudi Arabia’s aviation sector is witnessing rapid growth with the expansion of national airline fleets and supporting infrastructure. The Kingdom’s National Aviation Strategy aims to increase passenger traffic to 330 million annually and air cargo to 2.5 million tonnes by 2030.
As part of its industrial expansion, Saudi Arabia launched a SR10 billion ($2.67 billion) incentive program designed to attract investments in sectors including aerospace. The program offers up to 35 percent coverage for eligible capital expenditures, with a cap of SR50 million per project.
The Kingdom also unveiled its first aviation-focused industrial hub, covering 1.2 million sq. meters and offering direct access to seaports, airports, and railways to support global collaboration.
On the first day of his visit, Alkhorayef also participated in the “Industrial Day” event at Airbus Helicopters’ headquarters, where he emphasized the Kingdom’s strategy to localize technologies, enhance international partnerships, and leverage Saudi Arabia’s mineral resources to establish itself as a global industrial hub.
The visit concluded with the signing of a memorandum of understanding between Sidel and Saudi Arabia’s National Industrial Development Center. The MoU aims to establish a regional service hub, training center, and human capital development initiative in Saudi Arabia, further advancing the Kingdom’s industrial goals.
Saudi Arabia sees 13% rise in patent filing to reach 8,029 in 2024
RIYADH: Saudi Arabia’s intellectual property landscape continued its robust growth in 2024, with patent filings rising by 13.33 percent year on year to reach a record 8,029, according to the Saudi Authority for Intellectual Property.
The authority’s annual statistical report highlighted significant expansion across all key IP categories, underscoring the Kingdom’s ongoing transformation into a knowledge-based economy.
Patent applications from individuals surged by 62 percent, while filings by foreign applicants rose 15 percent to 4,921. The increase reflects rising global interest in protecting innovations within the Kingdom.
Trademark registrations totaled 31,834 in 2024, marking a 15.72 percent increase, while design filings grew by 8.75 percent. Voluntary copyright registration also saw a notable 63.15 percent jump, indicating greater public engagement with IP rights.
SAIP issued 4,355 patent certificates, 1,578 design registrations, and 1,504 copyright certificates throughout the year.
The report also noted that 96 percent of granted patents originated from institutions, highlighting the active role of universities and research centers in the innovation ecosystem. Individual inventors filed 2,139 patent applications — up from 1,320 in 2023—showing growing grassroots participation.
In terms of technical fields, information technology and software accounted for 25.77 percent of total patent filings. Library and document management comprised 57.16 percent, and applied technical inventions followed at 12.46 percent.
Public understanding of intellectual property also improved, with SAIP reporting an 8 percent rise in the national IP awareness index. This was attributed to expanded electronic services, streamlined procedures, and national initiatives aimed at safeguarding innovators’ rights.
Internationally, Saudi Arabia’s efforts have not gone unnoticed. The Kingdom recorded a 17.5 percent improvement in its score on the 2025 Global Intellectual Property Index, placing it among the top-performing countries out of 55 economies evaluated.
Saudi Arabia also ranked 24th globally in artificial intelligence patent output, with 1,189 AI-related patents filed—further cementing its commitment to technological advancement and innovation-led growth.
The Kingdom’s achievements are the result of sweeping reforms to its IP framework, including enhanced legal protections and enforcement strategies that aim to foster a more competitive, innovation-driven economy.
Saudi Arabia sees 73% surge in e-commerce sales using MADA cards
RIYADH: Saudi e-commerce sales via MADA cards surged 73.4 percent year on year in March to a record SR27.55 billion ($7.34 billion), reflecting rapid growth in the Kingdom’s digital payment ecosystem.
According to the Saudi Central Bank, also known as SAMA, online transactions using the national card network reached 147.6 million during the month, up 54.5 percent compared to March 2024.
The figures reflect transactions completed through websites, mobile apps, and e-wallets linked to MADA, and do not include those carried out using Visa, MasterCard, or other international networks.
MADA — the Kingdom’s domestic debit card network — underpins a growing portion of Saudi Arabia’s non-cash economy by enabling secure, contactless payments through NFC technology both online and at retail locations. This growth in digital commerce reflects rising consumer trust, expanding fintech ecosystems, and national investments in financial technology integration.
In a step toward digital expansion, SAMA signed an agreement in April with Google to introduce Google Pay in Saudi Arabia using the MADA infrastructure. The integration, expected to launch later in the year, will allow users to add and manage their MADA-linked cards within Google Wallet, offering seamless and secure transactions across physical stores, mobile apps, and websites.
According to SAMA, this move is part of a broader push to establish a robust digital payments infrastructure and reduce the country’s dependence on cash transactions.
The central bank’s efforts also include licensing new fintech players such as Barq, launching e-wallet platforms, and facilitating the operational launch of STC Bank, all aimed at bolstering financial inclusion and consumer convenience.
Earlier this year, the eSAMA portal also entered trial phase, providing digital access to a range of central bank services.
Alongside e-commerce growth, point-of-sale transactions using MADA also expanded, reaching SR65.67 billion in March — a 10.02 percent increase year on year.
E-commerce sales using MADA cards were equivalent to 42 percent of POS transaction value in March, up from 27 percent a year earlier — underscoring the faster growth of online spending compared to in-store purchases.
POS transactions — which cover physical card usage at retail stores, restaurants, gas stations, and service outlets — do remain a critical pillar of everyday consumer spending.
With Saudi Arabia aiming for over 70 percent of all transactions to be non-cash by 2025, the latest data signals that the Kingdom is fast approaching its digital transformation benchmarks — with MADA at the heart of this evolution.
UAE gross banking assets climb to $1.26tn in February
RIYADH: The UAE’s banking sector witnessed continued momentum in February, as key indicators of liquidity and credit expanded steadily.
Gross banking assets, including bankers’ acceptances, rose by 1.6 percent to 4.63 trillion dirhams ($1.26 trillion), according to data from the Central Bank of the UAE.
Gross credit also saw an uptick, increasing by 0.9 percent to 2.21 trillion dirhams, driven by a 17.1 billion dirham jump in foreign credit and a 1.7 billion dirham rise in domestic credit.
Meanwhile, M1 — the narrowest measure of the country’s money supply — climbed 1.8 percent to 982.9 billion dirhams, supported by gains in both currency in circulation and demand deposits.
The monthly increase was driven by a 13.5 billion dirham gain in monetary deposits and a 4.1 billion dirham rise in currency outside banks.
M1 — comprising physical currency and current account balances — is a key measure of liquidity immediately available for household and business spending.
The pickup in M1 comes amid a broader expansion in liquidity across the UAE’s financial system, reflecting stable credit conditions and sustained economic activity. The UAE has been supported by robust non-oil growth, rising investment, and steady financial sector performance heading into 2025.
Broader money aggregates also advanced, with M2 — which includes savings and time deposits in addition to M1 — rising 1.8 percent to 2.36 trillion dirhams, supported by a 25 billion dirham increase in quasi-monetary deposits.
M3, which includes M2 and government deposits, grew 0.8 percent to 2.81 trillion dirhams. The rise was primarily driven by the M2 expansion, offsetting a 19 billion dirham decline in government deposits.
The UAE’s monetary base rose 3.1 percent to 816.6 billion dirhams. The increase was supported by an 11.4 percent rise in overnight deposits and current accounts held by banks and financial institutions at the central bank.
Monetary bills and Islamic certificates of deposit rose 6.2 percent, while currency issuance increased 3.4 percent. These gains outweighed a 6.1 percent drop in reserve account balances.
Within domestic credit, lending to the private sector rose 0.7 percent, and loans to non-banking financial institutions jumped 5.2 percent. These increases offset a 2 percent decline in credit to government-related entities and a 1.4 percent drop in lending to the government sector.
The country’s total bank deposits climbed by 1.2 percent, reaching 2.87 trillion dirhams at the end of February, up from 2.84 trillion dirhams in January.
This growth was driven by a 0.8 percent rise in resident deposits and a 5.1 percent increase in non-resident deposits.
The increase in resident deposits was attributed to higher deposits from government-related entities by 3.8 percent, private sector by 1.4 percent, and non-banking financial institutions by 5.6 percent, which outweighed a 4 percent decline in government sector deposits.
