Aramco signs multiple deals to expand industrial investment program

Aramco President & CEO, Amin H. Nasser. (Supplied)
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Updated 12 September 2023
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Aramco signs multiple deals to expand industrial investment program

  • The expansion – which includes 22 MoUs and one joint venture – will focus on four key sectors

DUBAI: Saudi Aramco announced plans to expand Namaat, its industrial investment program – signing multiple deals with global companies to build capacity in critical sectors.

The Saudi-listed company said it signed 22 new memoranda of understanding (MoUs) and a joint venture agreement – all focusing on sustainability, technology, industrial and energy services, and advanced materials.

Namaat, which roughly means collective growth in Arabic, was formed to “tap into the vast opportunities in Saudi Arabia to create new value.”

Companies that signed the deals with Aramco include DHL, Samsung, Hyundai, and Honeywell, as well as British technology firm AVEVA.

“Through Namaat, we are attracting world-class partners who share our goal of continuous industrial development,” Ahmed Al-Sa’adi, the company’s senior vice president of technical services, said.

He added the Namaat program leverages a range of finance, funding, tax and regulatory incentives through the Shareek program, a government initiative aimed to boost its synergy with the private sector.

Aramco unveiled the first set of deals under the program last year, as part of its ongoing push to diversify income sources, in line with the Kingdom's economic transformation goals.

“Aramco continues to be at the forefront of enabling and enhancing the Kingdom’s industrial, technology and sustainability infrastructure through large-scale investments and key partnerships,” its chairman, Yasir Al-Rumayyan, said.

The agreements are seen to drive economic growth and diversification.

“(The initiatives) will ensure greater reliability of energy supply, effectively localize the industrial supply chain, and create better jobs and skill sets,” Al-Rumayyan added.

The 22 new MoUs signed under the Namaat program include:

  • SOLVAY – an MoU with the goal to pursue the development of advanced Non Metallic Materials and localization of a composite value chain;
  • DHL Supply Chain – an arrangement to evaluate the feasibility of establishing a local industrial logistics and procurement hub serving Saudi Arabia and MENA region.;
  • VEOLIA – Exclusive MOU to confirm the commercial feasibility of establishing a world-class integrated waste management company, alongside a strategic IK stakeholder;
  • Air Liquide & Haliburton & PIF, Baker Hughes & PIF, Linde & Schlumberger & PIF – three separate non-binding MoUs to evaluate Carbon Capture & Sequestration (CCS) opportunities and potential partnerships
  • AIC Steel, GSW, McDermott, Seyang and Sendan, and NARMEL – five separate MoUs on modular construction;
  • Samsung Engineering, Hyundai and Saipem - three separate MoUs on Engineering, Procurement and Construction;
  • Elion and Green Groves – two separate MoUs to evaluate the feasibility of localizing nature-based solutions;
  • Honeywell – an MoU with the goal to establish a JV that will develop and implement next-generation digital solutions that will improve efficiency, sustainability and enable operational excellence of industrial facilities;
  • Gulf Modular Industry (GMI) – MoU to validate the feasibility of developing and using non-metallic applications in the modular building manufacturing process in the building and construction sector.
  • Armorock – MoU to validate the feasibility of developing and using non-metallic polymer concrete applications in the building and construction sector.;
  • Shell AMG Recycling & United Company for Industry – a trilateral MoU on Metals Reclamation and Catalyst Manufacturing;
  • AVEVA – an MoU with the goal to establish a strategic alliance to localize development and deployment of various digital technologies including Artificial Intelligence (AI), Machine Learning (ML), and Digital Twin; and
  • Baosteel – an MoU to conduct an engineering study and develop plans needed to build, own and operate an integrated steel plate manufacturing facility in Saudi Arabia.

Oil Updates — crude steady, heads for weekly gain amid improving demand, supply jitters

Updated 5 sec ago
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Oil Updates — crude steady, heads for weekly gain amid improving demand, supply jitters

TOKYO/SINGAPORE: Oil prices were steady on Friday and poised for a weekly increase amid an improving outlook for demand in the US and China, while concerns over supply disruptions in Russia also lent support.

Brent futures dipped 3 cents to $76.45 a barrel by 7:14 a.m. Saudi time while US West Texas Intermediate crude edged down 4 cents to $72.44.

Both indexes have gained over 2 percent this week — the largest weekly advances since early January. Brent would be marking a second week of gains after three weeks of declines. WTI is set to have its first week of gains after four weeks of declines.

Global oil demand has averaged 103.4 million barrels per day through Feb. 19, a 1.4 million bpd increase, JPMorgan analysts said in a note on Friday.

They expect cold weather in the US and increased industrial activity in China as people return from holidays to contribute more demand in the coming week.

US crude oil stockpiles rose while gasoline and distillate inventories fell last week as seasonal maintenance at refineries led to lower processing, the Energy Information Administration said on Thursday.

“Drawdowns of US gasoline and distillate stockpiles, along with concerns over tight supplies in Russia, are supporting oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.

“Expectations for a potential peace deal between Russia and Ukraine, which could ease sanctions on Moscow, have faded somewhat due to Ukraine’s hardened stance, prompting some investors to buy back into the market,” he added.

Ukraine President Volodymyr Zelensky earlier in the week was enraged by US and Russian moves to negotiate a peace deal without Kyiv and comments by US President Donald Trump blaming Ukraine for starting the three-year-old conflict with Moscow.

However, following a meeting with Trump’s envoy for the Ukraine conflict on Thursday, Zelensky said Ukraine was ready to work quickly to produce a strong agreement on investments and security with the United States.

US Treasury Secretary Scott Bessent told Bloomberg Television on Thursday that Russia could win some relief from US sanctions based on its willingness to negotiate an end to its war in Ukraine.
Meanwhile, disruptions to oil supply continued to keep prices elevated.

Russia said Caspian Pipeline Consortium oil flows, a major route for crude exports from Kazakhstan, were reduced by 30 percent-40 percent on Tuesday after a Ukraine drone attack on a pumping station.

Kazakhstan has pumped record high oil volumes despite damage on its main export route via Russia, the Caspian Pipeline Consortium, industry sources said on Thursday. It was not immediately clear how Kazakhstan had been able to pump record volumes. 


Closing Bell: Saudi main index closes in green at 12,388   

Updated 20 February 2025
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Closing Bell: Saudi main index closes in green at 12,388   

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Thursday, gaining 70.56 points, or 0.57 percent, to close at 12,388.15. 

The total trading turnover of the benchmark index was SR5.95 billion ($1.58 billion), as 95 of the listed stocks advanced, while 137 retreated.    

The MSCI Tadawul Index increased by 13.19 points, or 0.86 percent, to close at 1,551.49. 

The Kingdom’s parallel market Nomu rose, gaining 44.37 points, or 0.14 percent, to close at 31,474.69. This came as 40 of the listed stocks advanced, while 47 retreated. 

The best-performing stock was Anaam International Holding Group, with its share price surging by 6.33 percent to SR23.84. 

Other top performers included Etihad Etisalat Co., which saw its share price rise by 5.35 percent to SR63, and Tourism Enterprise Co., which saw a 4.65 percent increase to SR0.90. 

The biggest decline of the day was seen in Al Sagr Cooperative Insurance Co., with its share price dropping 9.83 percent to SR15.96. 

Saudi Steel Pipe Co. saw its share price drop 6.77 percent to close at SR67.50, while Astra Industrial Group fell 4.81 percent to SR182, reflecting broader market pressures.

Following this, Saudi Steel Pipe Co. reported its annual results for 2024, with net profits rising 15.21 percent year-on-year to SR250 million. 

In a Tadawul filing, the company said the profit increase was driven by a rise in gross profit to SR399 million in 2024 from SR283 million the previous year, largely due to higher sales volumes. 

Astra Industrial Group reported interim financial results for the period ending Dec. 31, with net profits rising 23.99 percent year on year to SR589.34 million. 

The company attributed the growth to higher gross profit across all sectors, increased sales value, and a rise in other income. 

Meanwhile, shares of Yamama Cement Co. fell 1.89 percent on the main market today, closing at SR36.25. 

In a separate announcement, Nayifat Finance Co. posted its annual results for 2024, with net profits surging 47.93 percent to SR131.23 million. 

The company credited the profit increase to higher operational earnings, driven by a decline in the net charge for expected credit loss allowance due to improved write-off recoveries. 

In today’s trading, Nayifat Finance Co.’s shares edged up 0.83 percent on the main market to close at SR14.74. 


Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment

Updated 20 February 2025
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Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment

JEDDAH: Saudi Arabia is boosting its energy security with an SR13.4 billion ($3.57 billion) investment to expand the Qurayyah power plant, adding 3.01 gigawatts to meet growing demand and support economic growth.

Saudi Electricity Co. and ACWA Power have signed a power purchase agreement with Saudi Power Procurement Co., the Kingdom’s sole licensed electricity buyer, to expand Qurayyah Independent Power Plant. This facility is the largest combined-cycle gas-fired independent energy station in the world.

The initiative supports the Kingdom’s Vision 2030 by improving electricity generation efficiency, reducing costs, and diversifying energy sources to replace liquid fuels in the power sector. It aims to enhance reliability and sustainability through advanced combined-cycle gas turbine technology while reducing carbon emissions and promoting environmental conservation.

The project, overseen by the Ministry of Energy, aims to increase Saudi Arabia’s electricity capacity and efficiency by adding combined-cycle power plant units designed for future carbon capture. According to the principal buyer, the deal was signed with a consortium led by ACWA Power, SEC, and Hajji Abdullah Alireza & Co. Ltd., with SEC and ACWA Power each holding a 40 percent stake.

As one of the Kingdom’s largest power generation projects, it includes the financing, construction, ownership, and operation of a combined-cycle gas power plant, along with the development and transfer of a 380-kilovolt electrical substation, according to the Saudi Press Agency.

SEC is the largest electricity producer, transmitter, and distributor in the Middle East and North Africa, serving over 11 million customers.

ACWA Power — the world’s largest private desalination company — announced that on Feb. 19 it received a notice from the Al-Shuaiba 2 Solar PV Independent Power Plant project company, confirming that it has been granted the commercial operation certificate by the SPPC for the first, second and third groups, with a total capacity of 2,060 MW.

In a statement on Tadawul, the firm added that the initiative is now fully operational, noting that it owns a net stake of 35.01 percent share in the project company.

The body expects the financial impact to be reflected in the current year’s second quarter.


Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Updated 20 February 2025
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Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

RIYADH: A new cooperation agreement between the Ministry of Investment and Prince Ahmed bin Fahd bin Salman Center will see Saudi Arabia enhance its entrepreneurial ecosystem in the Al-Ahsa region.

The deal signed with the center, also known as Sana, focuses on attracting pioneering companies and innovators while fostering a business-friendly environment.

The Kingdom is increasingly being recognized for its growing enteprise-friendly landscape, securing third position in the 2023-2024 Global Entrepreneurship Monitor report.

The latest initiative, inked at the Al-Ahsa Forum 2025 in Al-Ahsa, also seeks to foster greater engagement with creative thinkers and business leaders through investment meetings and events, and will support the issuance of entrepreneurial licenses and provide access to essential services.

Moreover, the Sana agreement seeks to explore investment opportunities, encourage strategic partnerships, and promote investment alliances that enhance the competitiveness of the entrepreneurship sector in Saudi Arabia.

The new deal comes against a backdrop of venture capital pouring into the Kingdom, with the country retaining its position as the leading destination for such funds in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marked the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total amount deployed in MENA, closing 178 deals, the most of any nation in the region.

Speaking to Arab News at at the LEAP 2025 Tech Conference held in February, Mohammed Al-Zubi —founder of Saudi venture capital firm Nama Ventures — explained that the nation is rapidly becoming a key player in the regional technology ecosystem and is emerging as the “center of gravity” for Middle East startups.

Al-Zubi believes Saudi Arabia’s support for the startup ecosystem is unmatched globally. Having spent time in Silicon Valley, London, and the Middle East, he argued that the Kingdom’s government-led initiatives are unparalleled.

According to the international policy advisory and research organization Startup Genome, Riyadh ranked among the top five startup ecosystems in the Middle East and North Africa in June, in collaboration with the Global Entrepreneurship Network.


King Salman approves Saudi riyal symbol

Updated 20 February 2025
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King Salman approves Saudi riyal symbol

RIYADH: King Salman on Thursday approved the official symbol for the Saudi riyal, marking the beginning of a new chapter in the Kingdom’s financial journey, as reported by the Saudi Press Agency.

Saudi Central Bank Gov. Ayman Al-Sayari expressed his gratitude to the nation’s leadership for launching the symbol, which he believes “reinforces Saudi Arabia’s financial identity both locally and globally.”

Al-Sayari further noted that this initiative underscores the growing international influence of the Saudi riyal, while also fostering a sense of national pride and cultural unity. He added that the newly designed symbol represents the Kingdom’s rich cultural heritage.

The symbol, which blends Arabic calligraphy with the name of the national currency, “riyal,” will be utilized in financial and commercial transactions both within the Kingdom and internationally.

The central bank governor also commended the collaborative efforts of all parties involved in the project, including the Ministry of Culture, the Ministry of Information, and the Saudi Standards, Metrology, and Quality Organization.

Introducing a symbol for the riyal reinforces the Kingdom’s financial and economic identity, further positioning the Saudi riyal as a credible and globally recognized currency within the international financial system.

It also simplifies the representation of the riyal in financial transactions and commercial dealings.

According to SAMA, the symbol will be rolled out immediately, with its integration into financial and commercial transactions, as well as various applications, occurring gradually in coordination with relevant entities.