SEOUL: South Korea may have won an exemption from the US to continue Iranian oil imports, but major construction companies here are still reeling from the renewed American sanctions against Tehran.
Hyundai Engineering & Construction (E&C), a business arm of Hyundai Group, announced on Oct. 29 that it had scrapped a deal with Iran’s Ahdaf Investment Co. to build a petroleum refining facility in Iran.
The deal was worth $520 million — about 15 percent of the $3.4 billion construction project led by Hyundai Engineering consortium. Hyundai Engineering is an infrastructure unit owned by Hyundai Motor Group.
“We had no choice but to cancel the deal,” Yum Dong-yeon, a spokesman for Hyundai E&C, told Arab News. “We’re just sorry to lose the deal, and it is difficult now to anticipate if and when we will be able to be engaged in Iran businesses again.”
The remaining project led by Hyundai Engineering is expected to be nullified.
“It’s impossible now to carry out the deal, as a grace period of the preliminary contract has already expired,” a Hyundai Engineering public affairs official said, asking not to be named.
SK Engineering & Construction (E&C) has also been hit by the renewal of US sanctions against Iran. The firm, affiliated with South Korea’s third largest conglomerate SK Group, signed a $1.6 billion preliminary contract last year to upgrade a refinery in Tabriz, some 600 kilometers northwest of Tehran.
The firm also bagged a $3.6 billion contract to build and operate new power plants in Iran under a joint project with Turkey’s UNIT International. The contract is Iran’s largest private energy project, to produce combined generation capacity of 5,000 megawatts.
“We have yet to enter main contracts with Iranian counterparts, so we haven’t suffered any financial loss at the moment,” said Yeom Suk-bae, a senior communications manager at SK E&C. “However, it’s a setback obviously to our plan to make inroads into Iran, a new and growing market in the Middle East.”
Daelim Industrial is also one of the South Korean construction firms that have canceled projects in Iran. The company revoked a $2 billion deal in June with an Iranian oil refining company.
Kim Jong-gook, head of the Middle East and Africa business bureau at the International Contractors Association of Korea, painted a grim picture of South Korean construction projects in Iran in the long-term.
“South Korean construction firms have already been affected by the feud between the United States and Iran before the sanctions come into force,” Kim said.
The restored US sanctions, focused on banning any financial transaction with Iran, would hinder South Korean firms from going ahead with any contract with Tehran, he said.
“For South Korean construction companies, Iran is regarded as a new market with great potential,” Kim said. “As Iran’s oil exports are to be reduced in the aftermath of the restored US sanctions, energy corporations of the Middle East nation will likely suffer the shortage of foreign exchange, which will lead to the shrinkage of their construction projects.”
Oil refineries and petrochemical firms in South Korea breathed a sigh of relief about the “temporary waiver” for Iranian oil imports, but braced for risks down the road.
As one of the eight countries exempted from the US sanctions, South Korea is allowed to buy Iranian oil over the next six months on the condition that the imports volume should be reduced significantly. Any payment must be made through a bilateral Korean won currency account.
The South Korean government did not disclose the scale of reduction in Iranian oil imports, but oil refinery industry sources estimate that they are allowed to import about 4 million barrels per month, more than half of last year’s imports volume. South Korea imported an average of 12 million barrels per month of crude and condensate from Iran last year, according to the state-run Korea National Oil Corp.
South Korea in particular is a large buyer of Iranian condensate, a super light form of crude oil used by its large petrochemical industry. Of the Iranian oil imported last year, condensate accounted for some 70 percent.
“We’re trying to diversify sources of oil imports in the wake of Iran sanctions, but it’s not so easy to find alternatives for condensate,” an official of SK Innovation, the largest petrochemical company in South Korea, said on condition of anonymity.
Amid a sharp drop in imports from Iran, Qatar has emerged as the biggest export of condensate to South Korea, according to the Korea Petroleum Association. Qatar accounted for slightly more than 80 percent of South Korean condensate imports in September, with other countries such as Nigeria, Norway and Libya being considered as alternative sources.
The South Korean government is seeking to come up with measures to minimize the impact of the US sanctions on Iran.
“We’ll keep discussing with the United States and Iran over measures related to the sanctions and their effects on the Korean industry,” said Kim Jang-hee, head of the Ministry of Trade, Industry and Energy’s Americas Division.
South Korean construction firms hit hard by Iran sanctions
South Korean construction firms hit hard by Iran sanctions
- Seoul imports about 12m barrels per month of oil from Iran.
- Contractors feel impact of sanctions on overseas orders.
Clinton praises Saudi Arabia’s Vision 2030 for unlocking human potential
RIYADH: Former US President Bill Clinton praised Saudi Arabia’s Vision 2030 initiatives on Wednesday, highlighting their role in creating new opportunities for individuals to realize their full potential.
Speaking on the final day of the Real Estate Future Forum in a panel titled “A President’s Perspective: Bill Clinton at RFF 2025,” the 42nd president of the US lauded the Kingdom’s efforts to unlock human potential and foster inclusive development.
“The things that Saudi Arabia is doing now will provide more opportunities for more people to live up to their fullest capacity, and I think this is important,” Clinton said.
He emphasized the importance of Vision 2030 as a strategic framework for sustainable growth and encouraged other countries to take note.
“I think it (Vision 2030) is very important and it’s worth investing in,” Clinton remarked, adding, “I think that we, Americans, should come here and study this 2030 plan and ask ourselves what is our equivalent.”
Clinton expressed a long-standing admiration for Saudi Arabia, stating, “I’ve always felt drawn to this country.” He highlighted the development of human potential as a key driver of the future, adding, “I think that the ability to develop human potential will determine the future.”
Reflecting on his recent visit to Diriyah, a historic district undergoing significant transformation, the former president described the experience as remarkable. “I visited Diriyah last night and I think it was breathtaking,” he said.
Addressing the Saudi youth, Clinton underscored the value of career autonomy in a rapidly evolving job market, acknowledging the various opportunities the government offers to young Saudis.
“It’s a gift to be able to decide what to do with your working hours,” he told the youth, reinforcing the importance of choice and purpose in their professional lives.
Clinton’s remarks at RFF 2025 reaffirmed his admiration for Saudi Arabia’s ambitious Vision 2030, positioning the Kingdom as a model for economic diversification and social progress on the global stage.
The event, which took place from Jan. 27, was themed “Future for Humanity: Shaping Dreams into Reality.”
Held at the Four Seasons Hotel in Riyadh, it brought together over 300 speakers from 85 countries to discuss the future of real estate.
The forum served as a global hub for industry leaders, policymakers, and investors as Saudi Arabia moves forward with its vision for a diversified, innovation-driven economy.
Diriyah seeing strong real estate growth, planning mid-level housing units: Group CEO
RIYADH: The Diriyah project is experiencing strong success in residential real estate sales and is now targeting mid-level buyers, said a top executive.
On the final day of the Real Estate Future Forum, Jerry Inzerillo, group CEO of Diriyah Co., highlighted the rapid growth of the area’s residential and commercial property market, emphasizing the strong demand for homes.
He also spoke about the continued expansion of Diriyah’s business landscape, with plans to open Zallal in April, which will feature 23 new businesses, further boosting the area’s appeal.
These developments are a key part of a strategy to position the destination — one of Saudi Arabia’s five giga-projects supported by the Public Investment Fund — as both a residential and commercial hub, contributing to the Kingdom’s economic transformation under Vision 2030.
“I’m thrilled to say that we’re selling a lot of our residential real estate,” Inzerillo said, adding that Diriyah will offer “several hundred units for the mid-level buyer” at the upcoming Cityscape event in November, catering to a broader range of potential homeowners.
Beyond real estate, Inzerillo talked up the area’s historical and cultural importance to Saudi Arabia, saying: “Diriyah is the house of Al-Saud, the source of our national identity and pride.
“What makes us unique is that we are the celebration of culture and heritage.”
Inzerillo also discussed Diriyah’s spiritual importance, noting that one of its crowning achievements is providing a welcoming environment for religious travelers from around the world.
“One of the greatest things in the world is to allow 2 billion Muslims to feel welcomed to fulfill pilgrimage to the two holy cities,” he said.
The CEO shared that 14 percent of his workforce, now totaling 3,200 employees, are from Diriyah’s local community.
Inzerillo noted the completion of 9 km of parks, which contributes to the area’s green spaces and makes it more attractive to residents and visitors. He also highlighted construction safety milestones, stating that Diriyah had logged 209 million construction man-hours without a fatality.
Reflecting on the Kingdom’s increasing international appeal, Inzerillo said: “People from all over the world are coming to see Saudi, and they’re going back happy.”
The CEO concluded by expressing confidence in the Kingdom’s future capabilities, stating: “What I would say for sure by 2030, even though I believe it now, is that the Kingdom, with its leadership now, is capable of hosting any global event in any way and be the best host for that thing.”
GCC trade set to grow 5.5% annually, reaching $2.3 trillion by 2033: BCG report
- China is set to emerge as the largest growth market for GCC trade, with exchange volumes increasing by $88 billion
- Japan follows closely, with an expected increase of $46 billion
RIYADH: The Gulf Cooperation Council’s trade sector is set to grow at an annual rate of 5.5 percent, reaching $2.3 trillion by 2033, according to a new report by Boston Consulting Group.
The BCG analysis highlights a robust outlook for GCC trade, driven by significant expansion across multiple corridors.
The region’s non-hydrocarbon trade is also set to expand by 3.5 percent annually, reinforcing the success of economic diversification efforts.
Global trade is expected to grow at an average rate of 2.9 percent annually through 2033, according to the report.
The expansion is driven by evolving partnerships and advancements in supply chain technology. As economies adapt to post-COVID-19 disruptions and regulatory changes, new trade corridors are emerging, particularly between the Global South and established markets. The shift creates significant opportunities for regions like the GCC to enhance their roles in global commerce.
Commenting on the developments, Rami Rafih, managing director and partner at BCG, said the reconfiguration of global trade flows presents a transformative opportunity for the GCC.
“As trade routes evolve, the region is not merely a geographic intermediary but a central orchestrator of emerging trade patterns,” he said, adding: “The GCC’s proactive investment in trade capabilities positions it to shape the future of global commerce.”
China is set to emerge as the largest growth market for GCC trade, with exchange volumes increasing by $88 billion at a compound annual growth rate of 5.7 percent.
Japan follows closely, with an expected increase of $46 billion, reflecting a 9.4 percent annual growth rate.
The report, titled “Great Powers, Geopolitics, and the Future of Trade,” underscores the GCC’s strategic positioning as a vital link between East and West, benefiting from shifting global patterns.
With China’s trade with the Global South projected to increase by $1.25 trillion and transactions between developing nations expected to rise by $673 billion by 2033, the GCC is set to capture a substantial share of this evolving landscape.
Beyond its traditional reliance on hydrocarbon exports, the GCC’s non-oil trade is gaining momentum, fueled by regulatory enhancements, expanding infrastructure, and strategic agreements.
The shift aligns with the region’s broader economic diversification efforts under national transformation plans.
The report also highlights major global trade realignments that could benefit the GCC.
North America is solidifying its resilience, with US-Mexico business forecast to grow by $315 billion by 2033, while the Association of Southeast Asian Nations is set to achieve a 3.7 percent annual growth rate.
India is emerging as a critical player, with total trade expected to reach $1.8 trillion annually by 2033.
As the Global South gains economic influence, representing 18 percent of the international gross domestic product and 62 percent of the world’s population, trade among developing nations is expected to expand significantly.
Annual exchange within these regions is set to rise by $673 billion over the next decade, while trade between the Global South and developed economies is projected to hit $1.67 trillion annually by 2033.
To capitalize on these shifting dynamics, the report outlines key strategies for business leaders in the GCC, emphasizing supply chain resilience and expansion into high-growth markets like India and China.
It also encourages investment in nearshoring strategies to leverage the region’s strategic position.
“Success will depend on cultivating deep market intelligence, robust scenario planning, and strategic partnerships,” Cristian Rodriguez-Chiffelle, partner and director for trade and investment at BCG, said.
With global trade undergoing rapid transformation, the GCC’s ability to position itself as a key player in emerging trade corridors will determine its long-term economic resilience and influence in the global marketplace.
Closing Bell: Saudi Arabia’s main index closes in green at 12,439
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 18.84 points, or 0.15 percent, to close at 12,439.48.
The main index saw a total trading turnover of SR8.878 billion ($2.36 billion), with 58 stocks advancing and 174 retreating.
The Kingdom’s parallel market, Nomu, also gained 25.69 points to close at 31,048.66. The MSCI Tadawul Index rose by 3.99 percent to close at 1,548.14.
The best-performing stock on the main market was Al Rajhi Bank, with its share price surging by 4.69 percent to SR100.4.
MBC Group Co. also emerged as a top gainer, with its share price increasing by 4.36 percent to SR55.10.
The share price of Bank Aljazira also rose by 3.96 percent to SR18.92.
Conversely, Bupa Arabia for Cooperative Insurance Co. saw its stock price decline by 7.09 percent to close at SR194.
On Nomu, Twareat Medical Care Co. saw the highest gain, with a 30 percent increase, reaching SR15.60.
Al Rashid Industrial Co. was the worst performer on Nomu, declining by 5.20 percent to SR47.40.
On the announcements front, Al Rajhi Bank reported a net profit of SR19.72 billion for the fiscal year ending Dec. 31, marking an 18.66 percent increase compared to 2023.
According to the bank’s statement on Tadawul, the surge was driven by an increase in net income attributable to the bank’s equity holders by 5.9 percent, reaching SR21.2 billion due to the rise in total operating income by 4.2 percent.
The Saudi National Bank also announced its annual financial results for the same period, with net profit reaching SR21.193 billion and marking an increase of 5.91 percent.
Shares of the Saudi National Bank ended the session at SR34.05, down 2.85 percent.
Bupa Arabia for Cooperative Insurance Co.’s annual financial results for the period ending Dec. 31 reported a net profit of SR1.16 billion, marking a 24.02 percent increase compared to the year before.
The insurance company said in a statement on Tadawul that the increase was primarily driven by business growth and a boost in the number of insured lives.
Additionally, the net investment results for the year amounted to SR672.37 million, compared to SR513.28 million in the previous year, recording a 30.99 percent increase.
The Saudi Investment Bank also reported an 11.07 percent increase in net profit during the fiscal year ending Dec. 31, reaching SR1.95 billion compared to the same period in 2023.
This growth was mainly due to an increase in total operating income, as well as a decrease in provisions for credit and other losses.
Saudi Investment Bank shares closed at SR15.04, up 0.27 percent.
Other banks, including Banque Saudi Fransi and Alinma Bank, also announced their financial results for the same period.
Banque Saudi Fransi reported a 7.6 percent increase in net profit for the period, reaching SR 4.54 billion compared to 2023. The bank attributed this growth to a 3.6 percent rise in total operating income, alongside a 0.6 percent reduction in operating expenses. Despite the positive results, Banque Saudi Fransi’s stock closed at SR 16, down 0.12 percent.
Similarly, Alinma Bank saw a significant 20.51 percent increase in net profit for the fiscal year ending Dec. 31, 2024, reaching SR 5.83 billion.
The bank cited a 12.5 percent rise in total operating income, driven by higher net income from financing and investment, fee income, exchange income, and FVSI income. This was partially offset by a decline in other operating income. Alinma Bank’s shares closed at SR 30.55, up 1.83 percent.
Saudi Arabia building the ‘most complex structure known to man,’ says developer
RIYADH: Saudi Arabia is set to build the “most complex structure known to man” as part of a major architectural project within the New Murabba development, according to the head of the company behind the project
Positioned at the heart of the large-scale urban project, the Mukaab is designed to be a futuristic mixed-use landmark that will contribute to Riyadh’s evolving skyline.
In a panel discussion during the Real Estate Future Forum, Michael Dyke, CEO of New Murabba Development Co., described the ambitious scale and vision of the building which is being developed under the patronage of the Crown Prince Mohammed bin Salman.
“Mukkab is a structure, it will be pound for pound, I think the world’s most complex structure ever created known to man or woman in the history of time,” said Dyke.
“We have a structure which is 400 meters by 400 meters above the ground. We’re talking about a structure which will look at more than 1,000 meters above sea level,” he said.
While much of the focus is on the Mukaab’s above-ground presence, Dyke began dissecting the project by emphasizing the vast underground development.
“Below the ground is enormous as well. It’s a complete cavernous labyrinth of various different asset classes,” he explained, adding: “One example, the retail under Mukaab and around Mukaab is the size of Dubai Mall today and will be capable of extending to be bigger. So that’s just a small example of what you don’t see because it’s under the ground.”
The design is set to feature multiple skyscrapers within the structure.
“We will have something like two to three Empire State Buildings on each corner, which anchor the four corners of Mukaab,” said Dyke, adding: “We will have a dome which will be something in the order of about 360,000 sq. meters, which will be 380 meters high by 340 meters in diameter inside what effectively is the equivalent of Empire State Buildings.”
At the center of the Mukaab, a tower will stand as a unique architectural feat, which, according to Dykye, “will be the only skyscraper in the world that lives inside another building, which will be an equivalent size of the Eiffel Tower, but will be fully inhabited.”
There will be 27,000 people moving around the lower levels of the tower at any point in time. The structure will also feature “the world’s largest roof on the top at 16 hectares, which will be a fully living space.”
Additionally, the Mukaab’s design incorporates Riyadh’s architectural heritage with a fully activated Najdi facade, he said, adding that it is “the most beautiful Najdi facade that reflects the architectural history of the Kingdom.”
Dyke believes the structure will offer an immersive experience unlike any other, saying: “When you are inside the dome, you will be transported to other worlds. The worlds will change frequently, and you will not be able to see the dome when you’re inside it because we’re creating that.”
He explained that the project incorporates advanced technological layers to create an immersive experience, with applications in hospitality, retail, and entertainment.
In a separate panel, Marco Macagnano, head of Digital Real Estate Canada at Deloitte, highlighted the importance of innovation in real estate, emphasizing that modern developments should go beyond static assets.
“It means additional capital to the bottom line innovation products, and it also importantly provokes a new approach to real estate, where we’re not just maintaining or stabilizing our assets, but we’re investing in constant improvement— buildings that upgrade, not just flexible, but upgradable buildings that can automatically turn on new features with a software update, as opposed to installing new systems,” he said.
This perspective aligns with the vision behind Riyadh’s Mukaab, which aims to integrate latest technology and flexible infrastructure.
Macagnano further pointed out that large-scale projects, when designed with a systems-thinking approach, have the potential to redefine business and economic environments.
“The bold approaches to massive investments in infrastructure, big projects that can think about the ecosystem as a whole put Saudi Arabia in an incredible position to differentiate,” he said.
He emphasized that new developments should not be constrained by outdated infrastructure but instead be designed for future adaptability.
Beyond its architectural complexity, Dyke highlighted the economic and social impact of New Murabba as a whole.
“The economic stimulus that New Murabba will create upon full completion, when all three phases are built out, we’re talking about 400,000 people living in New Murabba. We’re talking about tens of millions of people visiting Mukaab every year. And we’re talking about a whole economy that will not be separate from Riyadh,” he said.
A key element of the development is the introduction of higher-density living in Riyadh. “New Murabba will have a characteristic of mid and high-level living,” Dyke noted.
“That’s one thing which creates an opportunity, which creates this livability aspect, and above and beyond that, the density of people within New Murabba will be in the order of 20,000 people per sq. km, compared to 4,000 today,” Dyke added.
