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RIYADH: Five North American companies are competing for a deal to sell a share of Saudi Aramco gas pipelines.
Aramco is seeking more than $15 million from this deal, which relates to one of its largest operations, a source told Bloomberg.
Companies bidding for the first round of the deal are Apollo Global Management, and Brookfield Asset Management.
BlackRock, EIG Global Energy Partners, and Global Infrastructure Partners made non-binding offers to purchase the share, the source said.
RIYADH: Saudi Arabia’s Madinah region recorded strong first quarter growth in 2025, led by 24 percent workforce participation in construction and 20 percent in trade, signaling diversification momentum.
A recent report by the Madinah Chamber of Commerce outlines the region’s sectoral distribution, with construction continuing to dominate amid a surge in infrastructure projects, the Saudi Press Agency reported.
The wholesale, retail trade, and vehicle maintenance sector, which accounted for 20 percent of the workforce, continued to thrive, demonstrating strong commercial activity and consumer demand. This segment’s high employment rate underscores Madinah’s role as a regional trading hub.
The manufacturing sector, representing 12 percent of the workforce, showed growth that indicates the emergence of a stronger industrial base, contributing to economic diversification and reducing reliance on oil-related industries.
Tourism, with an 11.2 percent workforce share, remained a key sector for Madinah as a destination for religious tourism, benefiting from a steady influx of pilgrims. The sector’s workforce expansion aligns with increased investment in hospitality, transportation, and tourism-related services, the SPA report added.
The chairman of the chamber, Mazen bin Ibrahim Rajab, emphasized the focus on improving the business environment by leveraging Madinah’s economic strengths and investment opportunities.
The report situated Madinah’s growth within broader economic trends. In 2024, the worldwide economic growth reached 3.2 percent, supported by a rebound in foreign direct investment, while inflation declined to 4.5 percent, signaling improving economic stability.
The Kingdom’s gross domestic product grew by 4.4 percent in 2024, with non-oil sectors expanding by 5.9 percent. Madinah contributed significantly to this trend, recording a 2.8 percent increase in its GDP, reaching SR57.6 billion ($15.3 billion) in the third quarter of 2024.
The report showed that Madinah recorded the second-highest domestic demand growth in Saudi Arabia at 11 percent, trailing only Riyadh.
Additionally, foreign direct investment in the Kingdom surged by 36.6 percent in the third quarter 2024, reaching SR16 billion, with Madinah attracting a notable share due to its expanding industrial and commercial opportunities.
The report also highlighted Madinah’s booming real estate and infrastructure sectors with property transactions in 2024 totaling SR10 billion, reflecting strong investor confidence.
The job market improved significantly, with unemployment dropping from 10.3 percent in the third quarter of 2024 to 8.4 percent in the following three-month period, thanks to new employment opportunities across key sectors.
A total of 213 development projects, valued at over SR210 billion, are currently in progress, according to the report. These include 153 commercial projects, 27 mixed-use residential and commercial developments and other projects in healthcare, education, tourism, and religious infrastructure.
These initiatives are expected to generate more than 119,000 jobs, further boosting Madinah’s economic prospects.
RIYADH: Saudi Arabia has opened the June subscription window for its savings sukuk product “Sah,” offering a return rate of 4.76 percent, as part of its 2025 issuance calendar.
Organized by the National Debt Management Center under the Ministry of Finance, Sah is the Kingdom’s first savings-focused sukuk designed for individual investors.
The Shariah-compliant, riyal-denominated product is part of the local bonds program aimed at fostering financial inclusion and increasing personal savings.
The June issuance opened for subscription from 10 a.m. on Sunday, June 1, until 3 p.m. on Tuesday, June 3.
The bonds are structured for a one-year term with fixed returns, and profits will be paid at maturity.
The minimum subscription is set at one bond with a value of SR1,000 ($266.56), while the maximum subscription per investor is capped at SR200,000.
The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which targets raising the national savings rate from 6 percent to 10 percent by 2030.
The June issuance of Sah offers a slightly higher return compared to May, rising to 4.76 percent from the previous month’s 4.66 percent, reflecting marginal shifts in market conditions.
While both issuances maintain the same structure — Shariah-compliant, riyal-denominated sukuk with a one-year maturity and fixed returns — the June window opened slightly earlier in the month, running from June 1 to June 3, compared to May’s window from May 4 to May 6.
Subscription terms remain unchanged, with a minimum investment of SR1,000 and a cap of SR200,000 per individual.
Both offerings are accessible through the same network of approved financial institutions.
Sah is promoted as a secure, fee-free savings instrument offering stable, government-backed returns.
Eligible investors must be Saudi nationals aged 18 and above and must subscribe through approved platforms provided by SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al-Rajhi Capital.
The sukuk is issued monthly, and the return rate for each tranche is determined based on prevailing market conditions.
NDMC CEO Hani Al-Medaini said in March that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics.
These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.
RIYADH: Total outstanding credit extended by Oman’s banking sector, comprising both conventional and Islamic institutions, rose by 9 percent year-on-year to 33.6 billion Omani rials ($87.3 billion) at the end of April, according to new data.
According to the Central Bank of Oman, private sector credit rose by 7 percent to 27.8 billion rials. Non-financial corporations held the largest share at 46.6 percent, followed closely by the household sector at 44 percent.
Financial corporations held 5.6 percent, while other sectors represented the remaining 3.7 percent.
Deposits across the banking system also showed robust growth. “Total deposits held with ODCs (other depository corporations) registered a YoY significant growth of 9.3 percent to reach 32.8 billion Omani rials at the end of April 2025,” the report stated.
Of this, private sector deposits reached 21.5 billion rials, a 7.1 percent increase from the previous year.
Household deposits contributed the largest share at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 17 percent, and other sectors at 2.3 percent.
Credit extended by conventional banks grew by 7.9 percent to 21.3 billion rials, while their aggregate deposits increased by 6.1 percent to 25.7 billion rials.
The banking sectors across the Gulf Cooperation Council countries have demonstrated credit growth, reflecting the region’s economic resilience and strategic investments.
In Saudi Arabia, outstanding credit facilities reached SR2.96 trillion by the end of the fourth quarter of 2024, marking a 14.4 percent year-on-year increase.
However, Qatar’s banking sector saw a slight contraction, with total credit facilities declining by 0.2 percent to 1.4 trillion Qatari riyals, primarily due to reduced lending to the public sector and consumption.
Oman’s private sector deposits with conventional banks rose 4.5 percent to 16.8 billion rials in April.
Investments in government development bonds increased by 6.2 percent to 2 billion rials, whereas holdings in foreign securities declined by 3.7 percent to 2.1 billion rials.
Islamic banks and windows also demonstrated strong performance. Their total assets increased by 18.1 percent to 8.9 billion rials, accounting for 19.6 percent of the total banking assets.
Financing provided by these entities reached 7.2 billion rials, marking a 13.5 percent annual increase. Total deposits held by Islamic banks and windows increased by 22.6 percent to 7.1 billion rials.
Broad money supply grew 7.5 percent to 25.4 billion rials, driven by a 12 percent rise in narrow money and a 6 percent increase in quasi-money components.
Currency held by the public rose by 7.5 percent, while demand deposits expanded by 16.8 percent.
Interest rate trends showed mixed movements. The weighted average interest rate on deposits with conventional banks rose to 2.594 percent in April, up from 2.580 percent a year earlier.
Meanwhile, the weighted average lending rate fell to 5.555 percent from 5.604 percent.
The overnight domestic interbank lending rate dropped to 4.392 percent, down from 5.212 percent the previous year, reflecting a decrease in the central bank’s repo rate to 5 percent in line with US monetary policy trends.
Oman’s nominal gross domestic product increased by 1 percent year on year in the fourth quarter of 2024, driven by a 4.1 percent expansion in the non-hydrocarbon sector.
Real GDP rose by 1.7 percent, supported by 3.9 percent growth in non-hydrocarbon activities.
The average oil price stood at $75.9 per barrel at the end of April, 5.2 percent lower than a year earlier.
Average daily oil production was 986,700 barrels, reflecting a 1 percent decline. Consumer price inflation remained subdued at 0.9 percent year on year as of April.
RIYADH: Saudi Arabia’s GO Telecom has signed an agreement with the Syrian government to help modernize the country’s digital infrastructure, marking one of the first major private sector initiatives following the recent easing of Western sanctions.
The agreement was signed by Syrian Minister of Telecommunications Abdul Salam Haykal and GO Telecom CEO Yahya bin Saleh Al-Mansour. The deal aims to revamp Syria’s ageing communications network, a critical step in the nation’s long path toward recovery. Riyadh-based GO Telecom is expanding its presence in post-conflict markets through strategic infrastructure investments.
The move follows a significant policy shift by Western powers. Just weeks ago, the US and the EU began lifting long-standing sanctions on Syria — a decision widely seen as a turning point in international engagement with the war-torn country.
On May 13, President Donald Trump announced the sanctions relief during a visit to Riyadh, calling it a “historic opportunity” for Syria’s recovery. The EU quickly followed suit, adopting legal measures to ease economic restrictions while maintaining those tied to security.
“This decision is simply the right thing to do,” said EU High Representative Kaja Kallas, underscoring the bloc’s support for Syria’s reconstruction and political transition. The EU’s move removed 24 entities, including the Central Bank of Syria, from its sanctions list.
“Today the EU reaffirms its commitment as a partner for the transition, one that helps the Syrian people to reunite and rebuild a new, inclusive, peaceful Syria,” Kallas added.
Syrian officials have welcomed the easing of sanctions as a pivotal moment. Speaking to the Associated Press on May 30, Syria’s Minister of Social Affairs and Labor, Hind Kabawat, said the changes would aid anti-corruption efforts and help pave the way for the return of millions of refugees.
Saudi Arabia and Qatar have also pledged joint financial support for Syrian state employees. A high-level Saudi economic delegation has visited Damascus to explore investments across key sectors, including energy, agriculture, and infrastructure.
“The Kingdom will provide, with Qatar, joint financial support to state employees in Syria,” said Saudi Foreign Minister Prince Faisal bin Farhan during a visit to Damascus on May 31. He reaffirmed Riyadh’s commitment to Syria’s reconstruction and emphasized the Kingdom’s involvement in the sanctions relief process.
Prince Faisal added that Saudi Arabia remains one of Syria’s key backers as it works toward economic recovery and long-term stability.
The GO Telecom agreement is seen as a signal of growing regional cooperation, as international and Gulf partners begin to re-engage in efforts to rebuild Syria’s shattered economy and infrastructure after over a decade of conflict.
RIYADH: Diriyah Co., backed by Saudi Arabia’s Public Investment Fund, has signed a memorandum of understanding with South Korea-based Kakao Mobility to enhance smart mobility infrastructure across the historic city of Diriyah.
Announced in a post on X, the agreement is designed to develop integrated transportation solutions to accommodate the 50 million annual visitors projected during the first phase of the Diriyah project.
The partnership will see Kakao Mobility contribute to the implementation of digital transport systems, seamless transit services, and smart parking infrastructure. The initiative aligns with Saudi Arabia’s broader push to diversify its economy and reduce its dependence on oil, as outlined in Vision 2030.
“Mobility to shape the future of urban mobility. This collaboration brings smart, sustainable solutions to life, enhancing the digital movement experience for over 50 million annual visits by 2030,” Diriyah Co. stated in its post on X.
The agreement marks the beginning of a phased rollout, starting with a smart parking pilot. The project also includes plans for a fully integrated prototype for smart parking and the deployment of advanced digital systems to streamline urban movement within Diriyah.
In addition to enhancing visitor mobility, the collaboration supports Saudi Arabia’s National Tourism Strategy, which aims to attract 150 million visitors annually by 2030.
The company emphasized that the digital platform under development will connect key destinations within Diriyah, contributing to sustainable urban mobility and reinforcing the Kingdom’s commitment to innovation and smart city solutions.
Once completed, the Diriyah development is expected to contribute SR18.6 billion ($4.96 billion) to the Kingdom’s gross domestic product and create approximately 178,000 jobs.
In April, Diriyah Co. awarded a contract worth SR5.1 billion for the construction of the Royal Diriyah Opera House — a major cultural project. The contract was granted to El-Seif Engineering Contracting, Midmac Contracting Co. W.L.L., and China State Construction Engineering Corp.
