DUBAI: Abu Dhabi developer Aldar on Monday said it has signed an agreement with Tourism Development & Investment Company (TDIC) to acquire 3.7 billion dirhams worth of its prime real assets, one of the largest property acquisitions in the UAE’s history.
The transaction will be fully complete by the end of June, subject to fulfilment of certain conditions, the company said in a disclosure to the Abu Dhabi stock exchange.
The 14 assets acquired from TDIC, mostly focus on the emirate’s tourism-cultural destination Saadiyat Island, range from hospitality, retail, residential, education and infrastructure as well as a selection of prime land plots and projects currently being developed. The more notable acquisitions include the Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi and Westin Golf & Spa.
“Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most sought-after destinations in the world,” Talal Al Dhiyebi, Chief Executive Officer of Aldar Properties, said in a statement to the bourse.
“We believe this landmark acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level. This is a very exciting time for the market, and as its leading player, we’re well placed to take advantage, with the injection of these new assets.”
The land and projects under development that to be taken over will form part of Aldar’s development destination strategy, the developer said, while collectively the acquired assets should deliver ‘an incremental net operating income of approximately 120 dirhams million to Aldar’s asset management portfolio on an annualized basis.’
The gross development value of the projects under development on Saadiyat Island is 2.5 billion dirhams. The land located on Saadiyat Island that is being acquired, which is infrastructure enabled, has approximately 1.1 million square meters of gross floor area.
Abu Dhabi developer Aldar acquires TDIC’s real estate assets worth 3.7 billion dirhams
Abu Dhabi developer Aldar acquires TDIC’s real estate assets worth 3.7 billion dirhams
Lucid sticks to annual production forecast even as tariff woes hit automakers
LONDON: Lucid stuck to its 2025 production forecast on Tuesday despite the threat of tariffs forcing many automakers to pull back targets, while the luxury electric-vehicle maker reported first-quarter revenue below analysts’ expectations.
Demand for pure battery cars in the US has been slowing as consumers, hit with high interest rates and recession worries, gravitate toward cheaper hybrids.
Lucid — majority-owned by Saudi Arabia’s Public Investment Fund— lowered the prices of its vehicles and offered incentives, including cheaper financing, to entice customers to its Air sedans that start at about $70,000 in the US.
The company said it would produce nearly 20,000 vehicles this year, while Wall Street expects it to manufacture 18,370, according to an average of five analysts by Visible Alpha.
Revenue for the quarter ended March 31 was $235 million, compared with analysts’ average estimate of $248.9 million, data compiled by LSEG showed.
Lucid, which has been focusing on cutting costs, posted an adjusted net loss per share of 20 cents, narrower than the 27-cent loss a year ago.
The company is gearing up to expand its product line with a mid-size car expected to roll out next year, targeting a $50,000 price point, aiming to broaden its customer base and strengthen its position in the competitive EV sector.
Success of Lucid’s recently launched Gravity SUV, along with the midsize, is seen as crucial to its long-term outlook, as the company burns through cash ramping up production.
US automakers are grappling with tariffs imposed by President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles.
Automakers, including Tesla, have said they were reassessing their full-year targets in the face of tariff uncertainty.
Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials.
In September 2023 it launched its first international manufacturing plant in Saudi Arabia.
Located in King Abdullah Economic City, the facility can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
Oil Updates — crude rises as market eyes US-China trade talks, lower US output
SINGAPORE: Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on US-China trade talks and signs of lower US production.
Brent crude futures gained 76 cents a barrel, or 1.22 percent, to $62.91 a barrel by 10:08 a.m. Saudi time, while US West Texas Intermediate crude was up 84 cents, or 1.42 percent, at $59.93 a barrel.
Both benchmarks plunged to a four-year low recently after OPEC+’s decision to speed up output increases, stoking fears of oversupply at a time when US tariffs have increased concerns about demand.
“News that the US and China will start trade talks this weekend has Brent crude trading higher, extending a relief rally in oil,” said commodities strategists at ING on Wednesday.
“Yet while negotiations would help improve sentiment in the oil market, we’ll need to see significant progress on lowering tariffs to improve the demand outlook,” ING added.
Meanwhile, lower oil prices in recent weeks have prompted some US energy firms including Diamondback Energy and Coterra Energy to announce rig reductions, which analysts said should support prices over time by reducing output.
The latest announcements suggested output will weaken in the coming months, said ANZ Bank senior commodity strategist Daniel Hynes. “We warned last month that falling prices and declining drilling activity was raising the risk of US oil output falling.”
Crude stocks fell by 4.5 million barrels in the week ended May 2, market sources said, citing American Petroleum Institute figures on Tuesday.
US government data on stockpiles is due at 5:30 p.m. Saudi time. Analysts polled by Reuters expect, on average, an 800,000 barrel decline in US crude oil stocks for last week.
Prices also drew support from signs of demand improving. Consumers in China increased spending during the May Day celebration and as market participants returned after the five-day holiday.
In Europe, companies are expected to report growth of 0.4 percent in first-quarter earnings, an improvement over the 1.7 percent drop analysts had expected a week ago.
The Federal Reserve is widely expected to leave US interest rates unchanged on Wednesday as tariffs roil the economic outlook.
Closing Bell: Saudi main index closes in green at 11,434
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for a second straight day, gaining 11.13 points, or 0.10 percent, to close at 11,434.08 on Tuesday.
The benchmark index recorded a total trading turnover of SR4.51 billion ($1.20 billion), with 83 stocks advancing and 152 declining.
Saudi Arabia’s parallel market Nomu, however, dropped 190.20 points to close at 27,952.79.
The MSCI Tadawul Index edged up 0.16 percent to 1,457.72.
The top performer on the main market was Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, which saw its share price surge 9.87 percent to SR15.58.
Shares of Bupa Arabia for Cooperative Insurance Co. rose 3.59 percent to SR178.80, while Saudi Ceramic Co. gained 3.17 percent to reach SR29.30.
Al-Etihad Cooperative Insurance Co. recorded the biggest decline of the day, with its share price slipping 7.69 percent to SR13.92.
On the announcements front, United Electronics Co., also known as EXTRA, reported a net profit of SR103.44 million for the first quarter of 2025, marking a 10.2 percent increase compared to the same period last year.
In a Tadawul filing, the company attributed the rise to growth in its retail and consumer finance segments. EXTRA’s share price rose 0.11 percent to SR90.90.
United International Holding Co. posted a net profit of SR57.81 million for the first quarter of 2025, up 10.42 percent year on year. The company said the increase was driven by a 25.3 percent rise in revenues, which reached SR174.65 million, compared to SR139.43 million in the same period last year. Its share price rose 0.59 percent to SR171.40.
Saudi Printing and Packaging Co. widened its net loss to SR24.4 million in the first quarter of 2025, compared to SR22.62 million a year earlier. The company blamed the deeper loss on lower revenues from its printing and packaging divisions. Shares dropped 2.83 percent to SR12.34.
Al-Etihad Cooperative Insurance Co. reported a net loss of SR11.91 million for the first quarter, reversing from a net profit of SR2.66 million in the year-earlier period. The insurer cited reduced revenue and a decline in gross earned premiums in the motor and medical segments as key reasons for the swing. Its stock closed down 7.69 percent at SR13.92.
Almoosa Health Co. announced a net profit of SR51.1 million for the first quarter of 2025, a surge of 272.99 percent year on year. The company said the sharp increase was driven by higher patient volumes and improved inpatient occupancy. Shares advanced 3.09 percent to SR167.
Saudi Arabian Mining Co., also known as Ma’aden, reported a net profit of SR1.54 billion for the first quarter of 2025, reflecting a sharp 57.88 percent increase compared to the same period in 2024.
In a statement to Tadawul, the mining giant attributed the profit growth to higher commodity prices across all its product lines.
The company’s revenue for the quarter reached SR8.51 billion, marking a 15.82 percent year-on-year rise.
“We are off to a great start in 2025. We are building on the momentum of last year and continuing our progress across all operations, with strong production results, safety improvements, exploration success, project advancement and portfolio consolidation,” said Robert Wilt, CEO of Ma’aden.
He added: “Looking ahead our strong financial position and focus on operational excellence positions us well to navigate the current market uncertainty. We will continue to drive value for our shareholders and develop mining as the third pillar of the Saudi economy.”
Saudi Arabia’s revised 2024 capital investment rises to $355bn, surpassing target by 38%
RIYADH: Saudi Arabia’s gross fixed capital formation reached SR1.33 trillion ($355 billion) in 2024, reflecting a 4.5 percent annual increase, according to updated data released by the Ministry of Investment.
This figure exceeded the ministry’s original target of SR964 billion by 38 percent, underscoring strong momentum in the Kingdom’s capital investment cycle and signaling continued progress toward Vision 2030 objectives.
The updated breakdown shows that private sector investments grew by 11 percent annually in 2024 to reach SR1.19 trillion, now accounting for 89.16 percent of total GFCF.
Meanwhile, government sector investment declined by 29.4 percent to SR144.3 billion, representing just 10.84 percent of total capital formation. The figures highlight the country’s growing reliance on private investment to drive sustainable growth.
GFCF rose to 29 percent of gross domestic product, surpassing the National Investment Strategy target of 26 percent, signaling growing investor confidence and effective policy implementation, according to the ministry.
The GFCF metric—an indicator of long-term economic health—tracks net investment in fixed assets across infrastructure, industry, real estate, and tourism. Higher capital formation is typically associated with greater productive capacity and stronger future growth.
These investment gains come amid a broader push by the Ministry of Investment and the newly established Saudi Investment Promotion Authority to strengthen Saudi Arabia’s position as a global investment hub.
Through its InvestSaudi platform, the authority has launched wide-ranging initiatives to attract domestic and international capital.
Efforts include a revamped national investment portal that highlights 15 priority sectors with tailored incentive packages, alongside the rollout of the 2025 Investment Law, which streamlines licensing and regulatory processes across industries.
Internationally, Minister of Investment Khalid Al-Falih has led roadshows and delegations across Asia, the Americas, and Europe—regions that collectively account for a significant share of the Kingdom’s foreign direct investment inflows.
Al-Falih has emphasized Asia as a key focus, noting that six of Saudi Arabia’s top 10 FDI source countries are from the region. Domestically, he continues to promote Saudi investment opportunities at major economic forums and sector-specific conferences, positioning the Kingdom’s transformation as a compelling investment narrative.
Together, these outreach efforts, combined with a growing pipeline of mega-projects such as NEOM, the Red Sea, and Diriyah Gate, are shaping a dynamic investment landscape and reinforcing the Kingdom’s appeal to both regional and global investors.
Saudi Arabia leads 106% rise in MENA IPO proceeds across Q1: EY
RIYADH: Proceeds from initial public offerings across the Middle East and North Africa saw a 106 percent annual rise in the first quarter of 2025, fueled by Saudi Arabia, according to an analysis.
In its latest report, professional services networking firm EY said the MENA region raised $2.1 billion through 14 IPOs — a year-on-year rise of four — in the three months to the end of March.
Over the period, 12 of the 14 listings happened in the Kingdom, with five IPOs taking place on the Tadawul benchmark index, and seven occurring on Saudi Arabia’s parallel market, Nomu.
In recent years, the Kingdom has emerged as a hotspot for listings, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from regional and international investors.
In January, a separate report released by Kamco Invest said that Saudi Arabia led the GCC IPO market in 2024, earning a global ranking of seventh in total IPO proceeds.
Commenting on activities in the first quarter, Brad Watson, MENA EY-Parthenon leader, said: “This year started on a positive note. MENA capital markets continue to show resilience, with the total IPO value more than doubling compared to the same period last year.”
He added: “Saudi Arabia continues to dominate the MENA region’s market in terms of activity as well as proceeds. In addition, the IPO pipeline for the rest of the year remains robust across various sectors and multiple countries.”
According to the latest report, the Kingdom’s Tadawul main market welcomed the largest offering in the MENA region during the first quarter of this year, with Umm Al Qura for Development and Construction Co. raising $523 million, contributing to 22 percent of the overall IPO proceeds.
This was followed by Almoosa Health Group, which accounted for 19 percent with $450 million, and Derayah Financial with $400 million.
Overall, the Tadawul main market generated $1.8 billion in total proceeds, while Nomu raised $69 million.
EY revealed that 28 percent of the IPO funds raised in Saudi Arabia came from the real estate management sector, followed by healthcare equipment and services at 24 percent, financial services at 21 percent, and consumer discretionary and retail at 17 percent.
In the first quarter of this year, the UAE witnessed one IPO on the Abu Dhabi Securities Exchange, with Alpha Data PJSC raising $163 million.
Oman’s Muscat Stock Exchange saw one IPO, with Asyad Shipping Co. raising $333 million.
“The increased demand for MENA listings has led to developments in market infrastructure through new products, enhanced governance standards, and a focus on transparency and accountability,” said EY MENA IPO and Transaction Diligence Leader, Gregory Hughes.
He added: “The upward trajectory in the number of IPOs across the region reflects a wider trend of sector diversification, with investors and companies increasingly looking beyond traditional oil-based industries.”
EY further said that the outlook for MENA IPOs for the rest of 2025 remains positive, with 21 companies intending to list on the region’s exchanges across various sectors.
According to EY, Saudi Arabia remains the frontrunner in this pipeline, with 17 companies already receiving approval from the Kingdom’s Capital Markets Authority.
In the UAE, three companies have announced their plans to list, and outside the GCC, Egypt has announced one IPO.
“In 2025, we can potentially expect to see an increase in IPOs from the technology sector, including online retail, fintech, foodtech, and classifieds,” said Hughes.
