RIYADH: A Saudi-controlled real estate firm says it plans to break ground early next year in Egypt’s new capital on a $1 billion, 50-story office tower that aims to be the first of its kind to be powered by clean hydrogen.
The sophisticated design and high price tag represent a bet by Magnom Properties, a subsidiary of Saudi industrial group Rawabi Holding, that international clients will be drawn to the new capital, a city for over 6 million people being built from scratch in the desert east of Cairo.
It is also a bet on clean hydrogen, produced using renewable energy and not yet proven at scale, as Egypt seeks to position itself as a green energy hub in the face of regional competition.
Ministries transferred to the city from July 2023, but few residents have moved in and construction continues on infrastructure including rail links.
Magnom will soon start the detailed design of the Forbes International Tower and aims to complete the building by 2030, said Karim Dayhoum, the company’s executive director of projects.
It purchased land for the tower in 2021 in the new capital’s business district, and is selecting land for sister towers planned later for Dubai and Riyadh.
“We want to offer our tenants and our buyers and investors the opportunity to utilize the facilities and amenities across the region,” Dayhoum said in an interview. “It’s a network of sophisticated office space.”
The new capital is the most ambitious in a series of mega-projects pursued by Egyptian President Abdel Fattah El-Sisi.
They have spurred infrastructure development but also strained the budget, increased debt and sucked up foreign currency, leading the government to cap public investment under pressure from the International Monetary Fund.
Investors say they see potential in Egypt’s strategic position and large workforce, but the economy has long been hampered by mismanagement and weak productivity.
Critics say the new capital does not cater to ordinary Egyptians.
The $1 billion price tag for a single tower and high-luxury design are unusual for Egypt. The estimated investment cost of the rest of the Chinese-built business district, with 20 towers, is $3 billion.
Developed with media group Forbes and Chicago-based architects Adrian Smith and Gordon Gill, the tower will have advanced cybersecurity systems, two ultra-fast VIP elevators and a helipad, according to the plans.
It also aims to be the first net-zero carbon tower in the Middle East and North Africa. Solar panels embedded in the facade should produce 25 percent of the electricity it consumes, with the rest generated by clean hydrogen transported to the building in liquid form.
“We’re trying to completely eliminate any sort of reliance on utilities,” said Dayhoum, adding that buyers of land were receiving incentives for sustainable design.
That could also help protect from outages in the local grid; Egypt has been hit by chronic power cuts linked to natural gas shortages.
The tower will be financed through various debt equity instruments, said Ahmed Kassem, Magnom’s chief investment officer.
“We’re still at a group level discussing whether to retain full ownership of the building,” he said.
Saudi firm plans hydrogen-powered skyscraper in Egypt’s new capital
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Saudi firm plans hydrogen-powered skyscraper in Egypt’s new capital
Eyewa raises $100m in Series C to boost expansion across GCC
RIYADH: Eyewa, a Riyadh-based eyewear retailer, secured $100 million in a series C funding round led by General Atlantic, with participation from Badwa Capital and Turmeric Capital.
The funding will fuel eyewa’s ambitions to expand its regional footprint, enhance its supply chain, and drive innovation in the eyewear sector.
The company plans to open at least 100 new stores in 2025, adding to its existing network of over 150 locations across the Gulf Cooperation Council region, including Saudi Arabia, the UAE, Kuwait, Bahrain, and Oman.
“We are proud of and feel even more emboldened by the remarkable trust placed in us by top global and regional investors,” said Anass Boumediene, co-founder and co-CEO of eyewa.
“In a sector that had not seen much disruption in the past decade, our success in this funding round reflects not only the strength of our business model, but also the spirit of innovation across the region’s startups as we continue to dream big and break new ground in our respective industries,” he added.
The capital will also support investments in research and development and talent acquisition as eyewa strengthens its position as a leader in the eyewear market, the company said in a press release.
As part of its growth strategy, eyewa plans to establish a “state-of-the-art” production hub in Riyadh in the first quarter of 2025.
The facility will include a warehouse, a fulfillment center, and a lens manufacturing unit, designed to improve the efficiency and speed of product delivery.
Owned and operated by eyewa, the center will provide a supply chain advantage that aligns with the company’s goal of delivering affordable and accessible eyewear to customers across the region.
Co-founder and co-CEO Mehdi Oudghiri emphasized the company’s customer-centric approach: “This accomplishment is a testament to the hard work of our team, our strong track record as an omnichannel retailer, and our commitment to challenging convention.”
“The additional capital will allow us to pursue the development of innovative products tailored to our customers, and continue pushing the boundaries of customer experience in our region,” Oudghiri added.
Based in both Riyadh and Dubai, eyewa was founded in 2017 and has grown into a prominent omnichannel retailer, combining e-commerce with physical stores to cater to rising consumer demand. The company also runs The Optical Club, a brand focused on providing accessible and affordable eyewear options.
“As part of our mission to make eyewear accessible to everyone, everywhere, we will leverage the support of our new partners and continue our retail expansion to all corners of the GCC,” said Abdullah Al-Rugaib, co-founder and managing director of eyewa.
He added that their extensive network and premier app, along with a tech-enabled supply chain, make eyewa the preferred retail platform for customers across the region.
Ziyad Baeshen, vice president at General Atlantic and a board member at eyewa, said: “The company’s impressive growth trajectory thus far is a testament to the vision of the leadership team and consumer appetite for authentic, direct-to-consumer brands in the Middle East.”
Additional investor support came from Badwa Capital and Turmeric Capital, both of whom lauded eyewa’s leadership and vision.
“Since first investing in eyewa, we have been impressed by the team’s clear vision and strong execution capabilities,” said Abdulaziz Al-Falih, partner at Badwa and board member at eyewa.
Fabio Andreottola, partner at Turmeric Capital, added: “eyewa represents the very essence of innovation and ambition in the Middle East’s retail landscape. As a business that has continually pushed boundaries in eyewear, we are proud to support eyewa’s team in this pivotal growth phase.”
Saudi Arabia, Djibouti ink deal to protect mutual investments
RIYADH: Investments between Saudi Arabia and Djibouti will see new protection measures thanks to an agreement between the two countries.
The deal, which was inked on the sidelines of the second day of the 28th World Investment Conference taking place in Riyadh from Nov. 25 — 27, aims to provide many advantages to investors.
These include investment protection, national treatment, and fair and equitable treatment, as well as transparency, and the right to resolve disputes through national courts or international arbitration, according to the Saudi Press Agency.
The agreement aims to provide a safe business environment that increases the volume of mutual investments in all sectors. It also seeks to further encourage bilateral relations and economic partnerships between the two sides.
This falls in line with the significant progress in bilateral trade, which reached approximately SR7 billion ($1.86 billion) in 2023, marking an important step toward sustainable growth and stronger economic ties between the Kingdom and Djibouti.
The deal was signed by the Kingdom’s Minister of Investment, Khalid Al-Falih, and by the Minister of State for Investments and Private Sector Development in Djibouti, Safia Ali Jadila.
The two sides stressed the importance of the deal’s role in supporting and motivating both countries’ private and government sectors to invest and achieve the ambitious investment programs witnessed by the two nations.
Saudi Arabia and Tajikistan ink deal to boost non-oil trade
RIYADH: Saudi Arabia and Tajikistan have signed a memorandum of understanding to accelerate non-oil exports and knowledge sharing.
According to the Kingdom’s press agency, the MoU was signed by the Saudi Export Development Authority and the Export Agency of Tajikistan on the sidelines of an event which agreed to establish a bilateral business council between the countries.
That agreement was reached by the Federation of Saudi Chambers and the Chamber of Commerce and Industry in Tajikistan, and will see the promotion of trade and investment relations.
Bolstering non-oil exports and promoting trade between nations is a crucial goal outlined in Saudi Arabia’s Vision 2030 agenda, as the Kingdom is on an economic diversification journey by reducing its dependence on crude revenues.
The Saudi-Tajik Business Council is expected to serve as a platform for private sector communities in the Kingdom and Tajikistan to network, showcase their activities, and foster commercial partnerships.
The council will also work to open new areas for economic collaboration, facilitate continuous interaction between the private sectors of both countries, and exchange information on market opportunities.
During the ongoing 28th edition of the World Investment Conference in Riyadh, Bandar Alkhorayef, Saudi Arabia’s minister of industry and mineral resources, held a bilateral meeting with the First Deputy Prime Minister of Tajikistan, Hakim Khalikzoda, and discussed ways to enhance cooperation in the mining and industrial sectors.
Alkhorayef also met with the Tunisian Minister of Economy and Planning, Samir Abdel Hafeez, and discussed ways to develop bilateral relations in the industrial sector between both nations.
Earlier this month, the Kingdom and Tunisia signed an MoU to strengthen bilateral cooperation and promote direct investments between the two nations.
The deal, which was inked by Saudi Arabia’s Minister of Investment Khalid Al-Falih and Tunisia’s Minister of Economy and Planning, focuses on sharing regulations and laws to enhance the investment environment in both countries.
The agreement between Tunisia and Saudi Arabia is seen as a crucial step in deepening the economic and industrial ties between both nations as they seek to diversify their economies and create new growth opportunities through strategic partnerships.
A report released by Saudi Arabia’s General Authority for Statistics in November revealed that the country’s non-oil exports reached SR79.48 billion ($21.16 billion) in the third quarter of this year, representing a rise of 16.76 percent compared to the same period in 2023.
Saudi education POS defies trend, surges 178%: SAMA data
RIYADH: Education spending in Saudi Arabia soared 178.6 percent to SR249.5 million ($66.4 million) during the week of Nov. 17–23, bucking the broader decline across other sectors.
According to the Saudi Central Bank’s weekly point-of-sale transactions bulletin, education was the sole sector to record growth. Transactions in the category climbed 62.3 percent to 164,000.
By contrast, other consumer spending categories experienced sharp declines. Clothing and footwear posted the steepest drop, falling 25.1 percent to SR694 million. Hotel expenditures followed, dipping 23.5 percent to SR305.6 million.
Spending in restaurants and cafes, which accounted for the second-largest share of total POS value, decreased 19.6 percent to SR1.66 billion.
Overall, Saudi Arabia’s POS transactions shrank 13.1 percent week on week, with total expenditures declining to SR11.5 billion from SR13.2 billion in the prior week.
The central bank’s figures showed that the electronics sector saw a 9.3 percent slide to SR179.6 million, while telecommunications expenditures dropped 11.2 percent to SR104 million.
The food and beverages category — the largest contributor to POS transactions — saw a 9.8 percent dip to SR1.7 billion. Miscellaneous goods and services, which ranked third, fell 10.6 percent to SR1.3 billion. Together, the top three categories accounted for 41.3 percent, or SR4.7 billion, of the week’s total transaction value.
At 3 percent, the smallest decrease occurred in spending on construction and building materials, leading total payments to SR340.5 million. Expenditures in the health sector dipped by 7.3 percent to SR710 million.
Regional insights
Geographically, Riyadh dominated POS transactions, representing 35.9 percent of the total, with expenses in the capital reaching SR4.1 billion — an 8.2 percent decrease from the previous week.
Jeddah followed with a 14.2 percent dip to SR1.5 billion, and Dammam came in third at SR590.5 million, down 7.9 percent.
Hail experienced the most significant dip in spending, decreasing 20 percent to SR177.4 million. Tabouk and Abha recorded declines by 11.4 percent and 9.8 percent reaching SR209 million and SR134.9 million, respectively.
Makkah and Madinah saw the largest transaction decreases, falling 15.2 percent and 14.9 percent, respectively, to 7.6 million and 7.8 million transactions.
Oil Updates – prices steady with focus on Israel-Hezbollah ceasefire, OPEC+ policy
TOKYO: Oil prices steadied on Wednesday, with markets assessing the potential impact of a ceasefire deal between Israel and Hezbollah, and ahead of Sunday’s OPEC+ meeting of producers.
Brent crude futures rose 5 cents to $72.86 a barrel by 7:15 a.m. Saudi time, while US West Texas Intermediate crude futures were up 3 cents at $68.80 a barrel.
Both benchmarks settled lower on Tuesday after Israel agreed to a ceasefire deal with Lebanon’s Hezbollah.
A ceasefire between Israel and Hezbollah will take effect on Wednesday after both sides accepted an agreement brokered by the US and France, US President Joe Biden said on Tuesday.
The accord cleared the way for an end to a conflict across the Israeli-Lebanese border that has killed thousands of people since it was ignited by the Gaza war last year.
Israeli Prime Minister Benjamin Netanyahu said he was ready to implement the deal with Lebanon and would “respond forcefully to any violation” by Hezbollah.
“Market participants are assessing whether the ceasefire will be observed,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“We expect WTI to trade within the range of $65-$70 a barrel, factoring in weather conditions during the Northern Hemisphere’s winter, a potential increase in shale oil and gas production under the incoming Donald Trump administration in the US, and demand trends in China,” he said.
On the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, sources said the group is discussing a further delay to a planned oil output hike that was due to start in January, ahead of a Dec. 1 meeting to decide policy for early 2025.
The group pumps about half the world’s oil and had planned to gradually roll back oil-production cuts with small increases over many months in 2024 and 2025. But a slowdown in Chinese and global demand, and rising output outside the group, have put a dampener on that plan.
“Our longstanding base case has been that OPEC+ defers the tapering of output cuts all the way through 2025,” Citi Research analysts said in a note, adding that the tapering could start in April instead of January.
“From the producer group’s point of view, holding off the unwind could allow the market the chance to be more balanced, via supply disruptions or more resilient demand, while bringing barrels back makes lower prices a foregone conclusion.”
In the US, President-elect Donald Trump said he would impose a 25 percent tariff on all products coming into the US from Mexico and Canada. Crude oil would not be exempt from the trade penalties, sources told Reuters on Tuesday.
Meanwhile, US crude oil stocks fell while fuel inventories rose last week, market sources said, citing API figures on Tuesday.
Crude stocks fell by 5.94 million barrels in the week ended Nov. 22, exceeding analysts’ forecast of a drop of about 600,000 barrels.
