Saudi Aramco to establish new powertrain firm amid efforts to promote green technologies 

Saudi Aramco’s intention to invest in the new firm goes in line with its vision to lead in low-carbon, zero-carbon fuels such as methanol and hydrogen. (File)
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Updated 02 March 2023
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Saudi Aramco to establish new powertrain firm amid efforts to promote green technologies 

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, has signed a letter of intent with Chinese multinational automotive company Geely and French multinational automobile manufacturer Renault to establish a new powertrain technology firm. 

This falls in line with the energy giant’s efforts to promote and further boost the use of low-emission technologies. 

Under the terms of the letter of intent, the parties will work hand in hand to discuss opportunities to join a new transmission technology company that is on track to be established by Geely Holding Group and Renault Group respectively.

The new company will mainly focus on transmission technologies for internal combustion engines and hybrid engines as well. 

Saudi Aramco's investment will be utilized in supporting the new company's growth, facilitating its research and development of industrial fuel solutions, and boosting its next-generation hydrogen technologies. 

“Our planned collaboration with Geely and Renault would support the development of powertrains across the automotive industry, and aligns with our broader efforts across our global operations,” said Aramco Executive Vice President of Downstream Mohammed Al Qahtani. 

As part of the agreement, both Geely and Renault are expected to retain a joint and equal stake in the new independent entity.

Luca de Meo, CEO of Renault Group, said: “This partnership with Aramco will raise our joint powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology.  

He said Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen. 

Through a global network of 17 transmission plants and five research and development centers across three continents, the new firm aims to serve as an independent global supplier to more than 130 countries and regions. 

In addition to this, the new firm is expected to have an annual production capacity of over 5 million internal combustion engines, hybrid engines, and transmissions. 

Daniel Li, CEO of Geely Holding Group, said: “The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen.”  

Saudi Aramco’s intention to invest in the new firm goes in line with its vision to lead in low-carbon, zero-carbon fuels such as methanol and hydrogen. 


Experts predict suburban boom, smarter housing designs in Saudi Arabia

Updated 56 min 52 sec ago
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Experts predict suburban boom, smarter housing designs in Saudi Arabia

RIYADH: The rise of community living and the increased accessibility of suburbs, driven by advancements in transportation, are transforming real estate trends in Saudi Arabia, experts say.

At the Real Estate Future Forum in Riyadh on Jan. 28, Khaled Elsehamy, chief development officer for real estate at the National Housing Co., highlighted the significant shift in the Kingdom's real estate sector. According to Elsehamy, more people are now viewing suburban areas as attractive living options.

During a panel discussion, Elsehamy also noted a growing preference among Saudi residents for smaller housing units, moving away from the traditional multigenerational homes.

“Suburbs are becoming increasingly appealing,” Elsehamy said. “People now find areas outside the central cities more attractive due to their convenience, accessibility, and proximity to essential services. They can easily connect with the city whenever they wish.”

He continued: “The rising costs of utilities, furniture, and maintenance have led people to seek smaller, more efficient homes. There is a growing demand for durable, modular designs that offer long-term savings while meeting modern needs.”

Elsehamy’s remarks came just a day after NHC CEO Mohammad Al-Buty announced that lower interest rates in 2025 will help the company surpass its 2024 sales targets. This aligns with NHC’s broader ambition to become the leading real estate developer in the region and stay at the forefront of the industry.

Elsehamy also discussed the shifting mindset of Saudi homebuyers, noting a stark contrast to traditional purchasing habits. “In the past, people bought homes for their children and grandchildren. That’s no longer the case,” he explained.

“Today, people are looking for homes that fit different life stages. They think, ‘I’ll live in this house now, move to a bigger one later, and eventually downsize to a smaller place by the beach in 20 years.’”

The NHC official emphasized that community living is driving new trends in Saudi Arabia’s housing market. “Community living allows residents to interact more with those around them, and it often includes amenities like community centers where people can work, especially those with remote work options.”

Echoing these sentiments, Andrew Baum, emeritus professor at Oxford, also spoke during the panel, highlighting how modern homebuyers prioritize accessibility over location.

“Previously, location was everything in real estate,” said Baum. “But today, accessibility has become the key factor. The new metro in Riyadh is set to significantly impact property values, opening up newly accessible areas.”

Oussama Kabbani, group chief Development officer at ROSHN, emphasized that Saudi Arabia’s real estate sector has reached a global standard post-Vision 2030. Reflecting on ROSHN’s approach to enhancing community living standards, Kabbani explained that understanding customer needs is central to their success.

“It all comes down to data and actively listening to your customers,” he said. “We conduct numerous surveys online and engage directly with residents to understand what’s missing. We focus a lot on creating activities for children, with educational and cultural events to keep them engaged.”

He continued: “We also place a strong emphasis on sports. It's not complicated — you don’t need to spend a fortune to make people happy. The key is knowing what makes them happy and delivering it with quality.”

Kabbani also noted the growing sophistication of the community real estate sector. He predicted that investments in senior living spaces, alongside data centers and healthcare facilities, would soon become more prominent.

“Our communities are designed with schools, community centers, playgrounds, and more,” Kabbani added. “When people choose to live in our communities, they’re not just buying a home — they’re buying a lifestyle. And we’re committed to ensuring that lifestyle is truly lived.”

During the session, Nasser Al-Kadi, chief investment officer at Awqaf Investment, praised the recent regulatory reforms in Saudi Arabia’s real estate sector, noting their positive impact on the market.

He emphasized the importance of embracing technological advancements to further modernize the sector. “The regulatory changes in Saudi Arabia have not only attracted external capital but also increased transparency within the industry,” Al-Kadi said.

He continued: “Technology isn’t just a tool for optimization — it’s a driver of growth and innovation. We haven’t yet seen the full potential of these technologies in the Kingdom’s real estate sector.”

Robert J. Di Franco, chief development officer at Roaya Co., also highlighted the growing influence of technology, stating that innovation is fundamentally reshaping every aspect of the real estate industry.

“Innovation and technology are shaping everything we do — from pre-acquisition phases to market analysis, accessing real-time transactional data, to how we manage construction projects and facility handovers. Technology is now integrated into every part of our process,” Di Franco said.


Foreign investments set to revive Makkah’s property market: Ladun CEO

Updated 28 January 2025
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Foreign investments set to revive Makkah’s property market: Ladun CEO

RIYADH: Saudi construction firm Ladun Investment Co. expects a surge in Makkah’s real estate sector following a key ruling by the market regulator allowing foreign investment in Saudi-listed companies owning property in the holy cities. 

In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hassan Al-Hazmi, CEO of the Tadawul-listed firm, emphasized that the new regulations are poised to drive investor confidence in Makkah’s market, which has faced stagnation in recent years. 

On the event’s opening day, the Kingdom’s Capital Market Authority announced that the Makkah and Madinah real estate markets will now be open to foreign investors. However, investments are limited to shares or convertible debt instruments of listed companies, with total non-Saudi ownership — individuals and legal entities — capped at 49 percent of a company’s shares. 

The decision is expected to enhance the competitiveness of Saudi Arabia’s capital market and support the Vision 2030 economic diversification agenda. 

“As Mohammed El-Kuwaiz, chairman of the CMA, mentioned yesterday (Jan. 27), the regulations have been studied for more than three years. He said they were supposed to be approved two years ago but were delayed to make them more holistic. There is now a big study regarding foreign investors having ownership in Makkah, Madinah, and the Kingdom as a whole,” said Al-Hazmi. 

He said Ladun is focused on Makkah and anticipates growth. “We already manage and own assets in Makkah worth more than SR3.2 billion ($853.1 million).” 

Al-Hazmi noted that Makkah’s real estate sector had faced stagnation since 2014, particularly due to the impact of COVID-19 on religious tourism and travel. However, he believes that the sector is on the brink of recovery. 

“We already see signs of recovery — companies owning assets in Makkah are experiencing a rise in their share prices. This is very positive, and we anticipated this shift and planned accordingly,” he added. 

Ladun is also focused on localizing its workforce and increasing Saudi employment opportunities, aligning with government initiatives. 

“Just today, we signed an agreement with the Ministry of Municipal and Rural Affairs and Housing regarding human capital and how we are going to localize more Saudis. At the managerial level, including our C-suite, we have Saudis,” Al-Hazmi said. 

He added: “In middle management, we have many young men and women who are part of our company, and they are truly giving us great empathy and trust in ourselves to move forward. This is one of the pillars of Vision 2030.” 

In November, Ladun announced a new investment in Jabal Omar Development Co. in partnership with Musharaka Capital, acquiring a land plot worth SR600 million with an expected revenue of approximately SR2 billion. This investment is viewed as a major step in reinforcing Ladun’s presence in Makkah’s evolving real estate market. 

Al-Hazmi also highlighted the broader impact of Vision 2030 on the Saudi real estate market, particularly in Makkah, which he sees as a prime beneficiary. 

“Stability brings prosperity, and Saudi has enjoyed stability for 100 years now, that brings prosperity. We see it. We see it around the region,” he said. 

Referring to comments made by Larry Fink, CEO of BlackRock, during the World Economic Forum in Davos, Al-Hazmi added: “Larry mentioned that if we take the US aside, we will find the most stable area in the world the GCC countries. Prosperity will be there.” 

With a focus on sustainable expansion, strategic investments, and market recovery, Ladun Investment Co. remains optimistic about its role in shaping Makkah’s future real estate landscape.


Closing Bell: Saudi Arabia’s main index closes in green at 12,421

Updated 28 January 2025
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Closing Bell: Saudi Arabia’s main index closes in green at 12,421

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Tuesday, gaining 47.75 points, or 0.39 percent, to close at 12,420.64.

The main index saw a total trading turnover of SR9.04 billion ($2.41 billion), with 131 of the listed stocks advancing and 94 retreating.

The Kingdom’s parallel market Nomu also gained 8.68 points to close at 31,022.97.

The MSCI Tadawul Index rose by 0.36 percent to close at 1,544.15.

The best-performing stock on the main market was Jabal Omar Development Co., with its share price surging by 7.54 percent to SR27.80.

Almoosa Health Co. also emerged as a top gainer, with its share price increasing by 6.94 percent to SR169.60.

The share price of Thimar Development Co. also rose by 6.52 percent to SR58.80, while Dar Alarkan Real Estate Development Co. saw its stock price decline by 5.42 percent to close at SR16.06

Away from the stock prices, Itmam Consultancy Co. revealed that it signed an agreement with Saudi Arabia’s Ministry of Foreign Affairs to study the formation of a legal committee.

According to a Tadawul statement, the contract duration is 18 months, and the value of the agreement will exceed 10 percent of the firm’s total revenue in 2023.

Data from the Saudi Stock Exchange indicated that Itmam Consultancy Co. reported a revenue of SR78.8 million in 2023.

The share price of Itmam Consultancy Co. declined by 0.66 percent to close at SR18.10.

Banan Real Estate Co. announced that its subsidiary, Qimam Noshoz Real Estate Development Co., signed a 19-year agreement valued at SR224.02 million with Armah Sports Co. to develop and lease two sports clubs in Riyadh.

According to a Tadawul statement, Qimam Noshoz will develop the land leased by Armah into two fully equipped fitness clubs, one for men and the other for women.

Banan Real Estate Co.’s share price increased by 1.43 percent to SR7.09.


Saudi telecom firm stc secures $8.7bn contract with government entity

Updated 28 January 2025
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Saudi telecom firm stc secures $8.7bn contract with government entity

  • Deal spans 18 months for preparation and execution, followed by 15 years of operational management
  • stc’s shares opened at SR43.20, up 2.01% from the previous close of SR42.35

JEDDAH: Saudi telecom giant stc has signed a contract worth SR32.64 billion ($8.71 billion) with an undisclosed government entity to build, operate, and provide telecommunications infrastructure services. 

The agreement, revealed in a filing with the Saudi Stock Exchange, spans 18 months for preparation and execution, followed by 15 years of operational management. 

The deal comes amid the continued expansion of Saudi Arabia’s growing telecom and information and communication technology infrastructure sector, which was valued at $3.5 billion in 2023. 

According to market research store Research and Markets, the sector is projected to grow at a compound annual growth rate of 7.1 percent through 2029, driven by initiatives under the Kingdom’s Vision 2030, aimed at economic diversification and technological innovation. 

“The financial impact will be positive, and the revenue will be recognized in stc’s consolidated financial statements after the initial operation of the project, which is expected to be in the fourth quarter of 2026 until the end of the contract period,” the company said. 

Following the announcement, stc’s shares opened at SR43.20, marking a 2.01 percent rise from the previous close of SR42.35, and ended the day at SR43.30, up 2.24 percent.

 

 

The stc Group, ranked among the top 10 most valuable telecom brands worldwide in the 2024 Brand Finance Report, has maintained its position as the most valuable telecom brand in the Middle East for five consecutive years. 

This comes as stc seeks to enhance Saudi Arabia’s telecom capabilities, aligning with the country’s broader goals of digital transformation and economic diversification. 

Last month, stc completed the transfer of ownership of Golden Lattice Investment Co. to a newly established entity as part of the sale of a 51 percent stake in Telecommunications Towers Co. to the Public Investment Fund. 

This follows another deal struck in November, when stc received foreign investment authorization from the Spanish Council of Ministers, allowing it to raise its voting rights in Telefonica from 4.97 percent to 9.97 percent. 

This strong growth in Saudi Arabia’s ICT sector is driven by several factors, including the country’s rapidly expanding digital landscape and rising demand for advanced telecommunications and ICT solutions, according to the Research and Markets report. 

The rollout of 5G networks, alongside efforts to develop smart cities and accelerate digital transformation across industries, is further boosting the telecom and ICT sectors. Key players in the market are actively upgrading and expanding their networks to meet the evolving needs of businesses and consumers, it added. 


Mayors set out real estate and infrastructure opportunities in Asir and Makkah 

Updated 28 January 2025
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Mayors set out real estate and infrastructure opportunities in Asir and Makkah 

RIYADH: Saudi Arabia is accelerating its real estate and infrastructure development efforts to meet growing demand and improve the quality of life in key regions, including Asir and Makkah, according to top officials. 

These initiatives, in line with Vision 2030, aim to boost tourism, attract investments, and improve livability for residents and visitors.

During a panel at the Real Estate Future Forum in Riyadh, Abdullah Al-Jali and Musad Al-Daood, mayors of the Asir region and Makkah, respectively, outlined their municipalities’ strategies to address these objectives. 

Al-Jali emphasized the untapped potential in the Asir region’s real estate market, saying: “Currently, 90 percent of the real estate market is concentrated in Riyadh, Jeddah, and other major cities, leaving the remaining regions with just 10 percent of the market share.” 

He added: “What we are witnessing today is a growing opportunity driven by the increasing demand for tourism in the Asir region. 

“This surge in demand is putting significant pressure on the real estate market, both now and for the future.” 

The Asir region mayor stressed the need to attract more investments over the next few years to meet this rising demand.

Highlighting the municipality’s role, Al-Jali underlined its efforts to facilitate infrastructure and real estate development. 

“As a municipality, we act as the main enabler for infrastructure development. We provide approvals for real estate investments, construction plans, and land use while also overseeing route clustering and road development,” he explained. 

To support the region’s real estate goals, Al-Jali invited investors to explore opportunities in Asir. 

“We can facilitate your investment and enable you from the very first phase,” he said, pointing to mixed-use projects in the pipeline and housing developments aimed at both locals and international buyers seeking summer homes. 

Al-Jali also addressed broader challenges, such as waste management and visual distortion, calling for greater collaboration. 

“Managing visual distortion is not an easy objective to achieve, and Riyadh is currently ahead of us in that regard,” he said. 

He urged citizens and stakeholders to support waste management efforts, emphasizing that maintaining public spaces should be treated as a collective responsibility. 

Makkah’s mayor Al-Daood highlighted the unique challenges and opportunities facing the holy city, which hosts millions of religious tourists annually. 

“We are focused on developing the infrastructure of Holy Makkah and equipping the city with the necessary facilities to support its unique religious significance as it welcomes millions of religious tourists from around the world,” he said. 

“We have directives from his royal highness, the crown prince, to combat visual distortion and enhance the cleanliness of the city, particularly in Makkah, to align with our new strategy,” he added. 

Al-Daood emphasized the importance of having a framework to meet the demands of Makkah’s 1.5 million annual pilgrims during the peak season. 

“We continuously plan ahead to address the growing demand and ensure the effective management of the large masses of visitors. This involves increasing our planning efforts and working closely with our partners and stakeholders,” he explained. 

In addition to its religious role, Al-Daood noted that Makkah is home to 2 million residents, necessitating investment in healthcare and entertainment infrastructure. 

“With 2 million citizens living in the city, it is essential to provide facilities for entertainment as well. Yes, Makkah has a strong religious identity that prevails, but that does not mean our citizens do not deserve a great quality of life,” he said.