RIYADH: Saudi utility giant ACWA Power has signed a letter of intent with the Asian Infrastructure Investment Bank to provide $150 million for three wind power plants in Uzbekistan. 

According to a press statement, the financing covers the Kongrad 1, 2, and 3 facilities, each with a capacity of 500 megawatts. 

The Tadawul-listed firm added that the financing term is four years and will be backed by an institutional guarantee provided by ACWA Power. 

Uzbekistan is one of the key foreign markets for the utility firm, with the company significantly involved in the Central Asian nation’s renewable energy sector in recent years. 

Its current portfolio in Uzbekistan comprises 11.6 gigawatts of power, of which 10.1 GW is renewable, as well as the country’s first green hydrogen project, with a capacity of 3,000 tonnes per year. 

“This announcement marks an important step forward in our commitment to delivering clean, reliable and affordable energy in Uzbekistan,” said Mohammad Abunayyan, founder and chairman of ACWA Power. 

He added: “The Kungrad wind projects are expected to significantly contribute to Uzbekistan’s renewable energy goals, and we look forward to working with our long-standing partner AIIB to bring this vision to life.” 

Jin Liqun, president of AIIB, stated that the Kungrad wind project is expected to catalyze Uzbekistan’s energy transition journey. 

The country aims to produce 40 percent, or 27 GW, of its overall electricity demand from renewable sources such as wind and solar photovoltaic. 

“By enhancing energy efficiency and transitioning to renewable energy resources, these climate mitigation projects support Uzbekistan’s ambitious renewable energy targets and align with AIIB’s commitment to sustainable infrastructure,” added Liqun. 

In July, ACWA Power signed financing deals worth $373.1 million for Tashkent’s Riverside power plant, which aims to generate 200 MW of solar photovoltaic energy and store 500 MW per hour using batteries. 

In March, the Saudi company also secured a $255.12 million power purchase agreement with Uzbekistan’s National Electric Grid for the Nukus 2 200-MW wind project. 

Established in 2004, ACWA Power currently operates in 13 countries across the Middle East, Africa, Central Asia, and Southeast Asia. 

The company stated that it currently manages a portfolio of 90 projects valued at $94.3 billion, capable of generating 65.6 GW of power.

RIYADH: Saudi developer Cenomi Centers has partnered with GIB Capital to launch a SR1 billion ($266.2 million) closed-end real estate fund to boost the Kingdom’s retail sector.

According to the firm’s statement on Tadawul, the move aims to support the Qassim land sale program and advance the development of the U Walk Qassim Mall, located in Buraidah.

Construction on the project is set to resume in December, with completion anticipated in the fourth quarter of 2026. Once finished, Cenomi Centers, also known as Arabian Centers Co., will manage and operate the 60,000 sq. meter complex, which will feature more than 135 retail stores.

The growth of the retail sector is key to the Kingdom’s goal of becoming a global tourism hub. 

Earlier this year, the Minister of Municipal and Rural Affairs, Majid Al-Hogail, emphasized that the sector contributes 23 percent to the non-oil economy and aims to surpass SR460 billion by the end of 2024.

On Oct. 7, the Riyadh-based operator of retail and lifestyle destinations in Saudi Arabia formalized its collaboration with GIB Capital to establish the Shariah-compliant real estate fund.

Beyond the mall, the fund will focus on developing and marketing the surrounding land for residential, office, and leisure purposes, contributing to the broader investment vision for the region. 

“The land benefits from its geographic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of the city of Buraidah, which is attracting significant wider investment and urban development,” the statement said.

The sale is part of Cenomi Centers’ broader strategy, which includes an SR2 billion non-core asset program launched in 2022 to enhance its financial stability and fund its growth projects.

It is estimated that SR400 million will be required to complete the U Walk Qassim Mall, which is projected to generate an annual revenue of SR80 million once fully operational.

GIB Capital will serve as the fund manager after receiving approval from the Capital Market Authority. In this role, it will oversee the sale of the Qassim land and help secure the necessary financing for the facilities development. 

Cenomi Center will be the sole unit holder of the fund, contributing in-kind assets and covering any associated costs incurred so far.

GIB Capital is the investment arm of Gulf International Bank and was launched in 2008.

The Kingdom is leading the Gulf Cooperation Council in terms of retail sector growth. The region is projected to grow at an annual rate of 4.6 percent between 2023 and 2028, primarily fueled by the Saudi and UAE markets, according to the investment banking advisory firm Alpen Capital.

Retail sales in the GCC are expected to rise from $309.6 billion in 2023 to $386.9 billion by 2028.

The UAE and Saudi Arabia are set to see expansions of 5.4 percent and 5.1 percent, respectively, reaching $161.4 billion and $139.1 billion during this period. 

Strengthening the retail sector is essential for Saudi Arabia as it seeks to position itself as a leading business and tourist destination, aligning with the economic diversification goals outlined in Vision 2030.