Red Sea Development Co. signs $2bn in new contracts, 70% to local companies

The Red Sea Project aims to make a great impression in the tourism sector, as the project looks to attract one million visitors by the end of 2030. (File/Shutterstock)
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Updated 24 April 2022
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Red Sea Development Co. signs $2bn in new contracts, 70% to local companies

The Red Sea Development Co. (TRSDC) signed more than 500 contracts for a total value of $2 blln so far, out of which 70 percent were awarded to local companies, Ahmed Ghazi Darwish, Chief of Staff at TRSDC, told Argaam in an exclusive.

He further added that construction of the base camp at the Red Sea project started in February 2019, noting that the developer seeks to have Saudi companies as partners in the project success.

The public-private partnership (PPP) initiative is in final stages, the official explained, adding that new partnerships, which will provide utility services including water, electricity and waste treatment, will be unveiled by the end of the year.

TRSDC signed an agreement with Saudi-based Nesma & Partners Contracting Co. Ltd. and Almabani General Contractors for the airside infrastructure works contract for the mega Red Sea tourism project’s international airport, Darwish pointed out.

The company contracted Saudi Al-Majal Al-Arabi Holding Group to build accommodation for workers and Saudi Arabian Real Estate Infrastructure Co. (Binyah) to construct a 77-kilometer (km) road network at the Kingdom’s upcoming tourist destination.

Moreover, Dubai-based DuBox Precast Products Industrial, a subsidiary of Amana Contracting Group, was awarded by TRSDC a contract to build a factory in Rabigh to transport manufactured products to the project site. The factory provided many job opportunities for nationals in the province.

Darwish said TRSDC is planning to raise SAR 15 billion finance from five Saudi banks, regarding which the details will be revealed soon.

He also affirmed that tourism will be the second important sector after oil and will create jobs, as well as contribute to the Kingdom’s gross domestic product (GDP).

“Job opportunities account for 10 percent of the global tourism industry, compared to 3.4 percent in the Kingdom, thanks to Umrah and Hajj seasons,” the official noted.

Tourism will be a key contributor to the economic growth of Saudi Arabia, Darwish added, noting that mega projects, including NEOM, Qiddiya and The Red Sea support Vision 2030, overseen by the Public Investment Fund (PIF).

The Red Sea Project aims to make a great impression in the tourism sector, as the project looks to attract one million visitors by the end of 2030.

Darwish also confirmed that TRSDC is coordinating with environmental experts to determine the viability of construction and development of some islands to preserve wildlife and the environment.

There are more than 90 islands, out of which 22 will be developed, while nine others will be nature reserves.

Finally, Darwish said the COVID-19 pandemic accelerated the project implementation, highlighting that there has been a renewed focus on the work and signing of new contracts.

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Closing Bell: Saudi main index closes in green at 12,212

Updated 7 sec ago
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Closing Bell: Saudi main index closes in green at 12,212

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 39.49 points, or 0.32 percent, to close at 12,212.24.

The total trading turnover of the benchmark index was SR7.17 billion ($1.91 billion), as 116 of the listed stocks advanced, while 114 retreated.  

The MSCI Tadawul Index increased by 9.44 points, or 0.62 percent, to close at 1,526.65.

The Kingdom’s parallel market Nomu dipped, losing 17.28 points, or 0.06 percent, to close at 31,299.81.

This comes as 47 of the listed stocks advanced, while 34 retreated.

The best-performing stock was Nice One Beauty Digital Marketing Co., with its share price surging by 9.94 percent to SR59.70.

Other top performers included the Power and Water Utility Co. for Jubail and Yanbu, which saw its share price rise by 5.77 percent to SR55, and United International Transportation Co., which saw a 4.86 percent increase to SR84.10.

The worst performer of the day was Astra Industrial Group, whose share price fell by 5.46 percent to SR190.60.

Saudi Reinsurance Co. and Riyadh Cables Group Co. also saw declines, with their shares dropping by 3.53 percent and 3.05 percent to SR57.40 and SR146, respectively.

On the announcements front, Al Rajhi Bank has successfully completed its offer of US dollar-denominated additional Tier 1 capital sustainable sukuk, raising $1.5 billion. 

The issuance, with a par value of $200,000 per sukuk and totaling 7,500 sukuk units, will be settled on Jan. 21, according to a Tadawul statement.

Offering an annual return of 6.25 percent, the perpetual sukuk includes a callable feature after five years. It will be listed on the London Stock Exchange’s International Securities Market, adhering to Regulation S under the US Securities Act of 1933. 

The sukuk is aimed at eligible investors within Saudi Arabia and internationally, contributing to the bank’s sustainable financing initiatives.

Al Rajhi ended today’s trading session surging by 0.21 percent to SR96.20.


WEF: War, disinformation, and climate dominate global threats in 2025

Updated 32 min 54 sec ago
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WEF: War, disinformation, and climate dominate global threats in 2025

  • More than 900 global leaders highlight escalating geopolitical tensions, environmental crises and misinformation as critical issues shaping the year ahead
  • Davos to begin Jan. 20 amid fragmented global order marked by growing power rivalries, weakened multilateralism

LONDON: Escalating wars, rising disinformation, and intensifying climate challenges rank as the most pressing global threats for 2025, according to the World Economic Forum’s Global Risk Report, released Wednesday ahead of the Davos annual meeting.

Based on insights from 900 global leaders in business, politics and academia, the report highlights escalating geopolitical tensions, environmental crises and misinformation as critical issues shaping the year ahead.

“Rising geopolitical tensions, a fracturing of global trust and the climate crisis are straining the global system like never before,” said Mirek Dusek, WEF managing director.

“In a world marked by deepening divides and cascading risks, global leaders have a choice: To foster collaboration and resilience, or face compounding instability. The stakes have never been higher.”

State-based armed conflicts are flagged as the most immediate concern for 23 percent of respondents, with wars in the Middle East, Sudan and Ukraine driving global instability.

The forum will host a historic gathering of Middle Eastern leaders, including representatives from Iran, Syria, Yemen and Gulf countries, to discuss prospects for peace amid hopes of a ceasefire between Hamas and Israel after 15 months of devastating war that has killed tens of thousands of Palestinians.

Donald Trump, set to be sworn in as the 47th US president on Jan. 20, has vowed to end the war in Ukraine. He will deliver a virtual address to the forum on Jan. 23. Ukrainian President Volodymyr Zelensky will also attend and deliver a speech on Jan. 21.

“From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action,” said Mark Elsner, WEF’s head of the Global Risks Initiative, who urged world leaders to make “renewed efforts to rebuild trust and foster cooperation.” 

While conflicts rank as the most immediate threat, the survey highlights the climate crisis as the dominant risk of the next decade. Environmental risks — including extreme weather, biodiversity loss and critical changes to Earth’s systems — account for three of the top four long-term global concerns.

In 2024, global warming hit a record 1.54 degrees Celsius above pre-industrial levels, triggering catastrophic weather events, such as the Los Angeles wildfires, devastating floods in Spain caused by the DANA weather phenomenon and unprecedented rainfall across the Middle East, which triggered floods in the Arabian Peninsula and Sahara Desert for the first time in half a century.

“The climate and nature crisis requires urgent attention and action,” said Gim Huay Neo, the WEF’s managing director for the Center for Nature and Climate.

Two technology-related concerns ranked next on the list of global threats: “Misinformation and disinformation” and the “adverse outcomes of AI technologies.”

The survey, conducted between September and October, noted rising anxieties about misinformation. These concerns have intensified following Donald Trump’s election victory and his alignment with tech leaders like Elon Musk and Mark Zuckerberg, who are reportedly advocating for deregulation policies expected to benefit the tech industry.

It coincides with Zuckerberg’s recent decision to scale back fact-checking and content moderation across Meta’s platforms, a move widely criticized by experts as an appeasement of Trump, whose return to the White House will overlap with the forum’s opening.

Organizers are expecting 60 heads of state and government to attend, alongside chief executives and campaigners. Several ministers and business leaders from Saudi Arabia are also expected to take part.

The WEF’s report found that 64 percent of experts foresee a fragmented global order dominated by competition among middle and great powers, with multilateralism under significant strain.

Against this backdrop, the forum’s theme, “A Call for Collaboration in the Intelligent Age,” highlights the need for renewed cooperation, even as Trump’s anticipated policy shifts could undermine collective efforts on critical global issues, including the climate crisis.


Private sector partnerships key to mining sector growth, says Al-Jadaan

Updated 40 min 23 sec ago
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Private sector partnerships key to mining sector growth, says Al-Jadaan

RIYADH: The mining sector’s success in Saudi Arabia hinges on strong private sector partnerships, according to Finance Minister Mohammed Al-Jadaan. Given the significant investments and expertise required, the government alone cannot drive the sector’s growth, he said.

Speaking on the second day of the Future Minerals Forum in Riyadh, Al-Jadaan emphasized the need for collaboration between public and private sectors to unlock the full potential of the mining industry. The forum, which runs from Jan. 14-16, aligns with Saudi Arabia’s ambitious goal to increase the mining sector’s contribution to the nation’s gross domestic product from $17 billion to $75 billion by 2035.

It also supports the country’s Vision 2030 objective of establishing mining as a critical pillar of the industrial economy.

“This is a very complex industry that requires significant investments that, you know, the government alone cannot do. It requires significant know-how that the government alone cannot do, and you need to make sure that you actually partner with the private sector to enable this sector,” Al-Jadaan said.

Al-Jadaan outlined three key enablers for the mining sector's development: cross-sectoral alignment, the strategic use of data, and a competitive regulatory framework.

“If you want to do the right thing within mining, it is not the mining alone that will make it. You will need to make sure that you are aligning multiple sectors together — energy, mining, logistics, and possibly even a few others,” he explained.

He pointed to the National Industrial Development and Logistics Program as a successful example of how integrated sectors can collectively drive progress.

On the importance of data, Al-Jadaan emphasized its foundational role in shaping the sector's future. “There was real focus on making sure that we make an investment early on in data relating to mining, including specific technicalities and budgeting for supporting surveys throughout the mining sectors, and actually providing even support to companies who are coming for exploration,” he said.

The minister also highlighted the necessity of a stable and investor-friendly regulatory environment. “These are long-term investments investors would need to make. You know, we need to have predictability, confidence in the regulatory framework, and we need to ensure it is investor-friendly. They must be able to obtain their licenses on time and with certainty,” he added.

Al-Jadaan further acknowledged the challenges faced by emerging economies, particularly those in the Global South, which possess abundant mineral resources but often lack the capital, expertise, and infrastructure to exploit them fully. He suggested that with the right support, these nations could leverage their mineral wealth not only for industrial growth but as a key driver of broader economic development.

“With the right setup, they can utilize these resources not only for the mineral and metal industries but as part of a package for economic development,” he said, stressing that targeted support such as subsidized logistics and services could unlock the mining potential of these nations.

In a related panel discussion, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted Africa’s critical role in the global energy transition. He pointed out the disparity between the continent’s vast resource potential and its actual contribution to the market.

“Today, investment needs to happen not only in extraction but also in infrastructure. We have seen great assets today in Africa are falling behind because of infrastructure challenges, not mining challenges,” Alkhorayef noted.

As the Future Minerals Forum continues, the collaboration between the private sector and government remains central to advancing the sector, not only in Saudi Arabia but across the global mining landscape.


Saudi Arabia unveils major gold, copper discoveries in Arabian Shield

Updated 30 min 16 sec ago
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Saudi Arabia unveils major gold, copper discoveries in Arabian Shield

  • Finds include extensive gold deposits at Wadi Al-Jaww for gold and copper deposits at Jabal Shayban

JEDDAH: Saudi Arabia has announced significant gold and copper discoveries in the Arabian Shield region, a move set to bolster its global mining ambitions and strengthen the country’s economic diversification efforts. 

The Saudi Arabian Mining Co., or Ma’aden, revealed the discoveries during the Future Minerals Forum 2025, held from Jan. 14-16 in Riyadh. 

The finds include extensive gold deposits at Wadi Al-Jaww for gold and copper deposits at Jabal Shayban, with mineralization extending deeper and in multiple directions from shallow depths of 20 to 200 meters. 

Bob Wilt, CEO of Ma’aden, highlighted the company’s aggressive exploration efforts, calling them part of “the world’s largest single-jurisdiction mineral exploration programs.” 

“Through the work we have undertaken in recent years, the raw prospectivity of the Kingdom has been proven. The results announced today provide a further boost as we continue to accelerate drilling activities across our exploration program in 2025,” he said. 

Wilt said the Kingdom’s focus on mining aligns with its broader economic transformation goals, creating opportunities for growth and development in the sector. 

The company said that Jabal Shayban has long been recognized as a key exploration site, with programs dating back to the 1940s. In contrast, Wadi Al-Jaww represents a new frontier, as no prior exploration has been conducted there. 

While Ma’aden didn’t provide specific estimates on the size and quality of the mineralization, the company said that ongoing analysis and drilling efforts would refine its understanding of the deposits throughout 2025. 

Ma’aden announced new findings from its Mansourah-Massarah gold mine. Drilling has revealed high-grade gold mineralization below the current pit design and significant underground potential. Recent results include intercepts such as 61 meters grading at 10.4 g/t gold and 20-meter grading at 20.6 g/t gold within 400 meters of the mine. 

The results build on earlier success at the mine, with Ma’aden noting strong growth opportunities from both open-pit and underground operations.  

In a statement to the Saudi Stock Exchange, Ma’aden clarified that the financial impact of these discoveries remains undetermined. The company reaffirmed its commitment to transparency, promising to update shareholders on any significant developments. 


Saudi energy minister calls for global efforts to address critical minerals shortage

Updated 15 January 2025
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Saudi energy minister calls for global efforts to address critical minerals shortage

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman emphasized on Wednesday that achieving energy security and sustainability hinges on addressing the challenges related to the supply and extraction of critical minerals.

Speaking at the Future Minerals Forum in Riyadh, Prince Abdulaziz highlighted that the primary energy security challenges of the modern world no longer revolve around oil, but are now focused on gas, electricity, and mining.

“I believe that energy security, affordability, and sustainability depend on urgent, collective, and inclusive efforts to address critical minerals’ challenges,” the minister stated.

He went on to say, “Today, oil no longer poses an energy security challenge due to the availability of storage, developed infrastructure, and a mature supply chain, and the production of oil has become more perfected. Instead, energy security is now about gas, electricity, and predominantly mining.”

According to Prince Abdulaziz, one of the most significant obstacles in the global energy transition is meeting the rising demand for critical minerals and ensuring a reliable supply. The energy minister cautioned that the energy transition is inherently material-intensive, and the demand for these minerals could soon outpace their available supply.

“I believe that meeting the increased demand for critical minerals presents substantial challenges to ensuring a reliable supply. In oil, we have always said that we are the most stable and reliable supplier. In this one (critical minerals), there is no Saudi Arabi. There has to be many ‘Saudi Arabias,’” he added.

During his speech, Prince Abdulaziz also discussed the importance of sustainability as the world accelerates mining activities.

He pointed out that mining and processing currently contribute to 5 gigatonnes of carbon dioxide emissions, which accounts for 12 percent of annual global greenhouse gas emissions. He stressed that any significant growth in mining and processing would inevitably result in higher emissions unless innovative solutions are found.

“Mining and processing currently contribute to 5 gigatonnes of carbon dioxide emissions, corresponding to 12 percent of the annual global greenhouse gas emissions. Significant growth in mining and processing activities will result in higher emissions unless we figure out a way to address this challenging issue,” he said.

The minister also noted the challenges posed by the geographical concentration of critical minerals and the long time required for their discovery and extraction. Drawing on sources such as the US Geological Survey and McKinsey, Prince Abdulaziz highlighted that the extraction and processing of critical minerals required for the energy transition are concentrated in just a few countries, creating significant dependency risks.

As countries race to secure access to these critical minerals, Prince Abdulaziz warned that such competition could drive up metal prices and increase energy costs, further complicating the global energy landscape.

The minister also underscored Saudi Arabia’s efforts to strengthen its mining sector, valued at an estimated $2.5 trillion, through localization and strategic partnerships with both regional and international companies.

“We will extract and utilize every ounce, gram, molecule, atom, and electron of our resources, and you are welcome to join,” Prince Abdulaziz concluded.