Saudi food giant Savola’s 2021 profit plummets 76% on tax pressure

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Updated 01 February 2022
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Saudi food giant Savola’s 2021 profit plummets 76% on tax pressure

  • Net profit dropped from SR910.8 million ($242.7 million) to SR221.9 million from a year ago

RIYADH: Savola Group, a major food retailer in Saudi Arabia, has seen a decline in net profit in 2021 — 75.6 percent — as retail segment suffers from pandemic and taxation changes. 

Net profit dropped from SR910.8 million ($242.7 million) to SR221.9 million from a year ago, the company said in a bourse filing. 

The company attributed the decline to higher impairment loss, lower share of profit from associates, and higher zakat and tax expense. 

A 10 percent decrease in retail segment revenues, led by the impact of value-added tax changes to 15 percent, also pushed the profit down. 

The company also said it will distribute a 2 percent cash dividend per share.

Established in 1979, Savola’s major holdings supply Saudi Arabia, the Middle East and North Africa, and Turkey with edible oils, sugar, fresh dairy products, and fast food restaurants.


Oman’s banking sector credit rises 9% to $87.3bn 

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Oman’s banking sector credit rises 9% to $87.3bn 

  • Islamic banks also demonstrated strong performance

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 yea 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. 


Saudi GO Telecom signs deal to rebuild Syria’s telecom sector

Updated 43 min 4 sec ago
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Saudi GO Telecom signs deal to rebuild Syria’s telecom sector

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 aging 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.


Saudi Arabia’s Diriyah Co., Kakao Mobility sign deal to boost smart mobility

Updated 12 sec ago
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Saudi Arabia’s Diriyah Co., Kakao Mobility sign deal to boost smart mobility

  • Deal to develop integrated transportation solutions to accommodate 50 million annual visitors
  • South Korean Kakao Mobility to implement digital transport systems, seamless transit services, and smart parking infrastructure

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.


Pakistan hikes petrol price by Rs1 per liter till next fortnight 

Updated 25 min 47 sec ago
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Pakistan hikes petrol price by Rs1 per liter till next fortnight 

  • Pakistan says increased price of petrol as per recommendations of regulatory authority, relevant ministries
  • Prices of petroleum products are reviewed and adjusted on a fortnightly basis to reflect import costs

ISLAMABAD: Pakistan’s government has decided to increase the price of petrol by Rs1 per liter till the next fortnight as per the recommendations of the Oil and Gas Regulatory Authority (OGRA) and relevant ministries, the Finance Division announced recently. 

Petrol is primarily used in Pakistan for private transportation, including small vehicles, rickshaws and two-wheelers. Diesel, on the other hand, powers heavy vehicles used for transporting goods across the country.

“The government has decided the following prices of petroleum products for the fortnight starting tomorrow, based on the recommendations of OGRA and the relevant ministries,” the Finance Division said in a statement on Saturday. 

After the latest revision in prices, a liter of petrol will cost Rs253.63 while the government has kept the rate of diesel unchanged at Rs254.64 per liter. 

Fuel prices in Pakistan are reviewed and adjusted on a fortnightly basis. This mechanism ensures that changes in import costs are reflected in consumer prices, helping to sustain the country’s fuel supply chain.

The Finance Division kept the price of petrol unchanged and slashed the rate of high-speed diesel by Rs2 per liter during its last review on May 16. 

The new price of petrol has already taken effect.
 


Can the green tea wave topple the Middle East’s coffee culture?

Updated 31 May 2025
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Can the green tea wave topple the Middle East’s coffee culture?

  • In Dubai, Abu Dhabi, and Riyadh, specialty cafes now offer matcha lattes alongside traditional karak chai

RIYADH: Once reserved for Japan’s sacred tea ceremonies, matcha has become a global sensation, infusing everything from lattes and desserts to skincare routines. Now, it is entering the Middle East, where coffee has long held cultural and culinary dominance.

Matcha’s rise in the MENA region is driven by health-conscious millennials, social media-friendly cafe culture, and a booming fitness scene. With its high antioxidant content, clean caffeine boost, and vibrant green hue, it’s quickly become a favorite among wellness enthusiasts.

But can it compete with the deeply ingrained coffee rituals of the Arab world, where coffee and espresso are daily staples?

The economic landscape: Aligning with Vision 2030

As part of its ambitious Vision 2030 initiative, Saudi Arabia is actively working to diversify its economy and reduce its long-standing reliance on oil revenues. Central to this transformation is the food and beverage sector, which has emerged as a key driver of economic growth.

In 2022, the food and agriculture sector contributed approximately SR100 billion ($26.6 billion) to the Kingdom’s gross domestic product, the highest on record.

The government aims to attract $20 billion in investments into the food industry by 2035, focusing on enhancing food security and broader economic sustainability.

Supporting this momentum is the “Made in Saudi” initiative, launched in 2021 to boost domestic production and services. One of its core goals is to raise the non-oil sector’s contribution to gross domestic product from 16 percent to 50 percent by 2030, making room for innovative products and emerging markets, including health-focused offerings like matcha.

A growing opportunity: the regional matcha market

This strategic shift aligns well with the rising demand for functional foods and beverages across the region. In the Middle East and Africa region, the matcha market is experiencing steady growth, signaling a strong opportunity for Saudi Arabia to enter a promising space.

In 2023, the MEA matcha market generated approximately $86.1 million in revenue, and projections estimate it will grow to $110.7 million by 2030, reflecting a compound annual growth rate of 3.6 percent.

Notably, ceremonial grade matcha, the highest quality used in traditional preparation, is currently the top revenue-generating segment and is expected to see the fastest growth, underscoring the premium positioning of matcha and consumer interest in wellness-driven, culturally rich products.

Matcha vs. coffee: A nutritional and cultural perspective

To better understand matcha’s potential in the Middle East, licensed Lebanese dietitian Reem Harb compared it to coffee in terms of health benefits, energy effects, and cultural fit.

A shade-grown green tea consumed in powdered form, matcha boasts superior levels of phytochemicals like chlorophyll and quercetin, as well as antioxidants such as epigallocatechin gallate, compared to other green teas. However, its caffeine content sits between traditional green tea and coffee.

Unlike coffee, matcha provides a gentler energy boost without a crash. “This is due to the presence of L-theanine, an amino acid that interacts with caffeine to improve cognitive function and energy levels,” Harb said in an interview with Arab News. 

Ceremonial matcha is often used for lattes or smoothies due to its perceived health benefits, but this reduces availability for traditional preparations.

Simona Suzuki, president of the Global Japanese Tea Association

The Middle East’s coffee culture is deeply rooted in tradition, from Turkish coffee ceremonies to the social ritual of sharing Arabic coffee. With its earthy and slightly bitter taste, Matcha may initially clash with regional preferences for sweet, aromatic beverages.

However, Harb believed matcha could complement traditional diets if introduced thoughtfully. “Matcha lattes can be a healthier alternative to sugary drinks, especially when prepared without added syrups. Alternating between Arabic coffee and matcha could diversify beverage choices while preserving cultural experiences,” she suggested. 

From Kyoto to the MENA: Matcha’s Global Surge

While matcha’s health benefits make it appealing, its journey from Japanese tea fields to Middle Eastern cafes hasn’t been without challenges.

Japan’s matcha industry has seen production nearly triple since 2010, with exports soaring as global demand skyrockets.

This surge in demand, however, has sparked concerns about shortages, prompting renowned Kyoto tea houses like Ippodo and Marukyu Koyamaen to impose purchase limits last year. Social media buzz and the rising demand for functional foods have turned matcha into a must-have trend that Middle Eastern cafes and startups are racing to meet.

Speaking with Arab News, Simona Suzuki, president of the Global Japanese Tea Association, said: “While matcha production in Japan is increasing, it remains relatively limited in scale ... Global demand has surged dramatically, leading to shortages in Japan.” 

The rapid growth has strained supply chains, and Suzuki noted it may take time for production to catch up. She also emphasized the importance of using matcha appropriately: “Ceremonial matcha is often used for lattes or smoothies due to its perceived health benefits, but this reduces availability for traditional preparations.” 

In Dubai, Abu Dhabi, and Riyadh, specialty cafes now offer matcha lattes alongside traditional karak chai, while local brands experiment with regional twists like matcha-infused dates or cardamom-dusted matcha desserts. 

Importing high-grade matcha, however, which relies on specific Japanese tea plant varieties like samidori and yabukita, is costly and logistically complex. 

Suzuki encouraged businesses to build direct relationships with producers: “We strongly encourage visiting Japan to connect with tea growers and gain a deeper understanding of cultivation and processing.”

In 2024, THE MATCHA TOKYO, a Japanese organic matcha brand, made its Gulf Cooperation Council debut with a beachside cafe in Dubai. The brand chose Dubai due to the strong presence of Emirati customers at its Tokyo outlets. Beyond Japan and the GCC, THE MATCHA TOKYO has expanded across Asia, with locations in Hong Kong, the Philippines, Bangkok, and Shanghai. 

Suzuki remained optimistic about the future of Japanese teas in the region, stating that while matcha is popular, the Global Japanese Tea Association is passionate about introducing the full spectrum of authentic Japanese teas, including sencha, gyokuro, hojicha, and wakocha, to the world.

As Middle Eastern consumers increasingly prioritize wellness while staying rooted in tradition, matcha isn’t replacing coffee, but it’s carving out a lasting niche of its own.