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Kingdom aims to create 35,000 new Saudi jobs with $18.7bn Riyadh strategy

Twenty-four international companies on Wednesday officially signed agreements to establish their regional offices in Riyadh, following on from an announcement on Thursday by Crown Prince Mohammed bin Salman to double Riyadh’s population and transform it into one of the 10 richest cities in the world. (Shutterstock/File Photo)
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Updated 03 February 2021
Arab News
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Kingdom aims to create 35,000 new Saudi jobs with $18.7bn Riyadh strategy

  • Already 24 international companies have signed up to establish their regional HQs in the Saudi capital
Updated 03 February 2021
Arab News

DUBAI: Twenty-four international companies on Wednesday officially signed agreements to establish their regional offices in Riyadh, part of the government’s wider plan to create 35,000 new jobs for Saudi nationals and boost the national economy by up to SR70 billion ($18.67 billion) by 2030.

The signing ceremony was in the presence of Minister of Investment Eng. Khalid bin Abdulaziz Al-Falih and Chief Executive Officer of the Royal Commission for Riyadh City Fahd bin Abdulmohsen Al-Rasheed, the Saudi Press Agency reported.

The international brands who signed on the dotted line included, among others, PepsiCo, Schlumberger, Deloitte, PWC, Tim Hortons, Bechtel, Bosch, Boston Scientific,

The official ceremony followed an announcement on Thursday by Crown Prince Mohammed bin Salman to double Riyadh’s population and transform it into one of the 10 richest cities in the world.

READ MORE: Saudi crown prince unveils plan to make Riyadh one of world's 10 richest cities

“All of Riyadh’s features set the groundwork for job creation, economic growth, investment, and many more opportunities,’’ the Crown Prince said at the Future Investment Initiative (FII) gathering in the Saudi capital.

“We are therefore aiming to make Riyadh one of the 10 largest city economies in the world. Today it stands at number 40, the fortieth largest city economy worldwide. We also aim to increase its residents from 7.5 million today to around 15-20 million in 2030,’’ he added.

Riyadh represents about 50 percent of the non-oil economy in Saudi Arabia and enjoys cost advantages over other urban centers. The cost of creating jobs in the city is 30 percent less than in other cities in the Kingdom, the Crown Prince said.

“The cost of developing infrastructure and real estate is also 29 percent less than the other cities, while the infrastructure in Riyadh is already very well (established) because of the sound management and planning performed by His Highness King Salman over a period of 55 years and more,’’ he added.

The new strategy to attract international companies to establish their main regional hubs in Riyadh is forecast to create more than 35,000 jobs for young Saudi men and women and add up to SR70 billion to the Saudi national by 2030, through salaries, operating and capital expenditures by these new companies, according to the Royal Commission for Riyadh City.

Fahd Al-Rasheed, president of the Royal Commission for Riyadh City, told the FII on Thursday: “A key focus is to make it easier for global businesses to operate in the Kingdom. Creating the King Abdullah Financial District special economic zone opens the door for multinational companies to relocate to Riyadh. Now they can maximize first-mover advantage and take total control at the heart of their largest regional market.”

Khalid Al-Falih, minister for investment, added that a number of key reforms relating to the establishment and governance of special economic zones, labour and education laws would be ratified in the first half of this year.

Companies operating in the zones will enjoy a range of tax exemptions, incentives, labor law improvements and relevant labor law exemptions for ten years, as well as fast and simple commercial licensing.

Al-Rasheed said that some $220 billion had already been spent or earmarked as government investment for projects in and around Riyadh, but that most of the rest of the required investment would come from the private sector.

“The government is working with the private sector as partners, it will not crowd out the private sector,” he said.

READ MORE: FII: Saudi Arabia eyes 20 free economic zones, six in Riyadh

Full detailed plans for the expansion of the city would be ready by the second quarter, Al-Rasheed added, when more details of financing would also be available.

Eugene Willemsen, PepsiCo’s chief executive officer for Africa, Middle East, South Asia, said: “We’ve been active in Saudi Arabia for around 60 years and are one of the largest food and beverage companies in the Kingdom. We very much look forward to continuing to be part of the future of Saudi Arabia and support the realization of the ambition of the Vision. We’re proud to sign the commitment today and be one of the early-adopters of the vision for Riyadh.”

Chief executive of Deloitte in the Middle East, Mutasem Dajani said: “Riyadh is undergoing a remarkable transformation to reinforce its position as one of the world’s major global centres for business, tourism and quality of life.  Deloitte is honoured to be a strategic partner for the city on its journey to achieve its ambition under Vision 2030.”

Riyadh Al Najjar, KSA country leader, PwC, said: “We are proud of our longstanding relationships in the Kingdom of Saudi Arabia and continue to support the Kingdom’s remarkable transformation from our regional consulting headquarters in Riyadh. With a large number of mega cross-sector projects Riyadh is quickly becoming a global destination.”

Neeraj Teckchandani, director at Tim Hortons Middle East, said: “We are very excited about the transformation and innovation that we have seen in the Kingdom and we are honoured and privileged for the opportunity that you have given us to be part of this journey. We have big plans and ambitions for our growth in the Kingdom and the wider Middle East.”

Topics: business economy Saudi Arabia Employment Vision 2030 Riyadh

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Oil Updates — prices dip as demand optimism fades 

Updated 5 sec ago
REUTERS 
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Oil Updates — prices dip as demand optimism fades 

Updated 5 sec ago
REUTERS 

BEIJING/SINGAPORE: Oil prices eased on Tuesday, extending losses into a second consecutive session after last week’s rally, although concerns about tighter Russian and Iranian supply amid widening Western sanctions checked losses, according to Reuters. 

Brent futures edged down 8 cents, or 0.1 percent, to $76.22 a barrel by 07:52 a.m. Saudi time, while US West Texas Intermediate crude fell 15 cents, or 0.19 percent, to $73.42. 

Both benchmarks slid on Monday, after rising for five days in a row last week to settle at their highest levels since October on Friday amid expectations of more fiscal stimulus to revitalize China’s faltering economy. 

“This week’s weakness is likely due to a technical correction, as traders react to softer economic data globally that undermines the optimism seen earlier,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish economic news from the US and Germany. 

Also dragging on oil prices is the rising supply from non-OPEC countries that, coupled with weak demand from China, is expected to keep the oil market well supplied this year. 

Market participants are waiting for more data this week, such as the US December nonfarm payrolls report on Friday, for clues on US interest rate policy and oil demand outlook. 

“The move higher in crude oil prices appears to be running out of momentum,” ING analysts wrote in a note. 

“While there has been some tightening in the physical market, fundamentals through 2025 are still set to be comfortable, which should cap the upside.” 

Worries over tightening Russian and Iranian supply amid sanctions, however, kept a floor under oil prices. 

The uncertainty has translated into better demand for Middle Eastern oil, reflected in a hike in Saudi Arabia’s February oil prices to Asia, the first such increase in three months. 

Money managers raised their net long US crude futures and options positions in the week to Dec. 31, the US Commodity Futures Trading Commission said on Monday. 

Topics: Oil OPEC

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Saudi Arabia issues $12bn three-part bond: NDMC

Updated 3 min 13 sec ago
Reuters
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Saudi Arabia issues $12bn three-part bond: NDMC

Updated 3 min 13 sec ago
Reuters

CAIRO: Saudi Arabia issued a $12 billion three-tranche bond, selling $5 billion, $3 billion and $4 billion in tenors of three, six and 10 years respectively, the National Debt Management Center said on Tuesday.
The total order book reached around $37 billion, equalling an over-subscription of three times the issuance, NDMC said in a statement.
The transaction is part of NDMC’s strategy to diversify the investor base and meet the Kingdom’s financing needs, it added. 

Topics: Saudi Arabia National Debt Management Center (NDMC) bonds NDMC

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Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

Updated 06 January 2025
Reuters
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Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

  • Company handed over 3,099 vehicles in the fourth quarter ended Dec. 31
  • For 2024, production rose 7% to 9,029 vehicles, topping Lucid’s target of 9,000 vehicles
Updated 06 January 2025
Reuters

LONDON: Lucid Group beat expectations for quarterly deliveries on Monday, as the Saudi Arabia-backed maker of luxury electric vehicles lowered prices and offered cheaper financing to drive demand, sending its shares up more than 6 percent.
The company handed over 3,099 vehicles in the fourth quarter ended Dec. 31, compared with estimates of 2,637, according to six analysts polled by Visible Alpha. That represented growth of 11 percent over the third quarter and 78 percent higher than the fourth quarter a year earlier.
Production rose about 42 percent to 3,386 vehicles in the reported quarter from a year earlier, surpassing estimates of 2,904 units.


For 2024, production rose 7 percent to 9,029 vehicles, topping the company’s target of 9,000 vehicles. Annual deliveries grew 71 percent to 10,241 vehicles.
Lucid, backed by Saudi Arabia’s sovereign wealth fund, started taking orders for its Gravity SUV in November, in a bid to enter the lucrative SUV sector and take some market share from Rivian and Tesla.
Rivian on Friday topped analysts’ estimates for quarterly deliveries and said its production was no longer constrained by a component shortage. But Tesla reported its first fall in yearly deliveries, in part due to the company’s aging lineup.
Demand for EVs, already squeezed by competition from hybrid vehicles, could face another challenge as President-elect Donald Trump is expected to reverse many of the Biden administration’s EV-friendly policies and incentives.
The company also raised $1.75 billion in October through a stock sale that CEO Peter Rawlinson believes will provide Lucid with a “cash runway well into 2026.”
Lucid, whose stock was down about 28 percent in 2024, is scheduled to report its fourth-quarter results on Feb. 25.

Topics: Lucid EVs electric vehicle (EV) Lucid Group

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Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

Updated 06 January 2025
NOUR EL-SHAERI   
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Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

  • Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions
  • Facility builds on PIF’s recent success with sukuk issuances over the past two years
Updated 06 January 2025
NOUR EL-SHAERI   

RIYADH: The Saudi Public Investment Fund has closed its first Murabaha credit facility, securing $7 billion in funding. This is a key step in the fund's plan to raise capital over the next several years. 

The Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions, according to a press release. 

A murabaha credit facility is a financing structure compliant with Islamic principles, where the lender purchases an asset and sells it to the borrower at an agreed profit margin, allowing repayment in installments. This structure avoids interest, adhering to Shariah laws. 

“This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia,” said Fahad Al-Saif, PIF’s head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division. 

 

 

The facility builds on PIF’s recent success with sukuk issuances over the past two years, further bolstering its financial strength and commitment to best practices in debt management. 

Rated Aa3 by Moody’s and A+ by Fitch, both with stable outlooks, PIF continues to solidify its position as a global financial powerhouse. 

The fund’s capital structure is supported by four main funding sources, including contributions from the Saudi government, asset transfers, retained investment earnings, and financing through loans and debt instruments. 

PIF’s strategy focuses on financing initiatives that contribute to economic growth in Saudi Arabia and internationally. 

The $7 billion murabaha credit facility is expected to bolster PIF’s liquidity, supporting its investments both locally and globally. 

By diversifying its funding sources through a Shariah-compliant structure, PIF looks to enhance its financial partnerships while complementing its existing financing tools, such as sukuk issuances. 

 

 

This aligns with its medium-term capital strategy, ensuring flexibility, competitive financing terms, and risk mitigation. 

Earlier in January, the National Debt Management Center also secured a Shariah-compliant revolving credit facility worth SR9.4 billion ($2.5 billion). 

The three-year facility, supported by three regional and international financial institutions, is designed to meet the Kingdom’s general budgetary requirements. 

Aligned with Saudi Arabia’s medium-term public debt strategy, the arrangement focuses on diversifying funding sources to meet financing needs at competitive terms. 

It also adheres to robust risk management frameworks and the Kingdom’s approved annual borrowing plan. 

PIF has been actively engaging in credit arrangements to support its investment initiatives and the Kingdom’s Vision 2030 economic diversification plan. 

In August 2024, PIF secured a $15 billion revolving credit facility for general corporate purposes, replacing a similar facility agreed upon in 2021. 

In addition to the revolving credit facility, PIF has diversified its financing instruments by issuing a $2 billion seven-year Islamic sukuk earlier in 2024 and planning to issue bonds in pounds sterling. 

These efforts are part of PIF’s strategy to leverage a variety of funding sources to support its expansive investment activities. 

Topics: Saudi Arabia PIF murabaha Saudi Arabia's Public Investment Fund (PIF)

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Closing Bell: Saudi main market gains to close at 12,105 points

Updated 06 January 2025
Nour El-Shaeri 
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Closing Bell: Saudi main market gains to close at 12,105 points

  • MSCI Tadawul Index increased by 1.07 points, or 0.07%, to close at 1,510.91
  • Parallel market Nomu lost 190.29 points, or 0.61%, to close at 30,864.09
Updated 06 January 2025
Nour El-Shaeri 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 34.87 points, or 0.29 percent, to close at 12,104.69. 

The total trading turnover of the benchmark index was SR6.43 billion ($1.71 billion), as 137 of the listed stocks advanced, while 94 retreated.  

The MSCI Tadawul Index also increased by 1.07 points, or 0.07 percent, to close at 1,510.91. 

The Kingdom’s parallel market Nomu dropped, losing 190.29 points, or 0.61 percent, to close at 30,864.09. This comes as 36 of the listed stocks advanced, while 43 retreated. 

Al Majed Oud Co. was the best-performing stock of the day, with its share price surging by 5.62 percent to SR158. 

Other top performers included SAL Saudi Logistics Services Co., which saw its share price rise by 5.42 percent to SR276, and Riyadh Cables Group Co., which saw a 5.17 percent increase to SR158.80. 

Al Mawarid Manpower Co. and Astra Industrial Group also saw a positive change, with their share prices surging by 5.17 percent and 5.05 percent to SR114 and SR195.40, respectively. 

United International Holding Co. saw the steepest decline of the day, with its share price easing 2.45 percent to close at SR183.40. 

Zamil Industrial Investment Co. and Nayifat Finance Co. both recorded falls, with their shares slipping 2.43 percent and 2.43 percent to SR36.15 and SR14.44, respectively. 

National Co. for Learning and Education and Saudi Electricity Co. also faced losses in today’s session, with their share prices dipping 2.27 percent and 2.25 percent to SR197.80 and SR16.54, respectively. 

On the announcement front, the Saudi Exchange announced the listing and trading of shares for Almoosa Health Co. on the main market starting Jan. 7. 

During the first three days of trading, daily price fluctuation limits will be set at plus or minus 30 percent, while static price fluctuation limits will also apply. 

From the fourth trading day onward, the daily fluctuation limits will revert to plus or minus 10 percent, and the static limits will no longer be enforced. 

In a separate development, Almujtama Alraida Medical Co. announced the signing of a credit facility agreement with Alinma Bank worth SR45 million. 

Alinma Bank saw a 0.17 percent decrease in its share price on Monday to settle at SR29.90.

The financing package includes an SR35 million revolving facility aimed at purchasing goods and an SR10 million revolving facility for capital expenditures. 

The credit facilities have a duration of three years and are secured by a promissory note. The objective of the financing is to support working capital requirements and fund capital expenditures, the company stated. 

Meanwhile, Mufeed Co. revealed the awarding of an SR41.5 million project focused on the development of concept, content, and execution of events aimed at reviving the Kingdom’s cultural and historical heritage. 

The contract, which is set to be signed on Jan. 20, will involve a legal entity as the counterparty. 

The project entails organizing unique activities designed to showcase and enhance the Kingdom’s rich historical and cultural narratives. 

Mufeed Co. saw a 2.93 percent increase in its share price by the close of Monday’s trading session to reach SR73.80. 

Topics: Closing Bell Saudi stock market Saudi Stock Exchange (Tadawul) Tadawul All Share Index (TASI)

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