Emaar The Economic City launches $2.32bn capital optimization plan 

The move, approved by the board, includes restructuring SR3.8 billion in bank debts, converting SR4.0 billion of debt owed to the Public Investment Fund into equity, and introducing a SR1 billion convertible shareholder facility from PIF. Supplied
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Updated 08 September 2024
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Emaar The Economic City launches $2.32bn capital optimization plan 

  • Move includes restructuring SR3.8 billion in bank debts, converting SR4 billion of debt owed to PIF into equity
  • Plan also involves a capital reduction to offset EEC’s accumulated losses

RIYADH: Saudi master developer Emaar The Economic City, the firm behind King Abdullah Economic City, has unveiled an SR8.7 billion ($2.32 billion) capital optimization plan aimed at restructuring its financial framework.  

The move, approved by the board, includes restructuring SR3.8 billion in bank debts, converting SR4 billion of debt owed to the Public Investment Fund into equity, and introducing an SR1 billion convertible shareholder facility from PIF, according to a press release. 

The plan also involves a capital reduction to offset accumulated losses to stabilize EEC’s financial position and set the stage for long-term value creation.  

This comes as EEC strengthens its focus on key sectors, including industrial and logistics, tourism, and real estate. 

KAEC, designated as a Special Economic Zone, is set to attract more businesses and residents, further advancing Saudi Arabia’s Vision 2030 objectives. 

Fahad Al-Saif, chairman of EEC, said: “The implementation of the COP, which underpins EEC’s Board-approved strategy, will enable the company to capitalize on available opportunities to align its direction with Saudi Vision 2030.”  

He added: “It also provides the blueprint for a stable platform for growth, focused on unlocking the full potential of KAEC and enhancing the sustainability of our business. We are setting the stage for a transformation that will not only drive value creation, but also redefine our role in the Kingdom to achieve the goals of Vision 2030.” 

The restructuring will consolidate bilateral credit facilities from lenders including Alinma Bank, Saudi Awwal Bank, Banque Saudi Fransi, and Saudi National Bank into a single Shariah-compliant syndicated facility.

“This carefully devised plan does more than fortify our balance sheet; it sets the stage for us to seize opportunities with greater agility. As we undertake the strategic rebalancing of our financial framework, our objective is clear: to improve our leverage ratios and bolster overall financial health,” said Abdulaziz Ibrahim Al-Nowaiser, CEO of EEC. 

In parallel, he revealed that the company is evaluating a series of structural and functional measures aimed at restoring EEC to full financial health, while also strengthening key relationships with stakeholders.  

Additionally, it plans to periodically refresh its “long-term strategy to establish a clear roadmap” for reviving the company's ability to fulfill its core mission of developing the property and delivering shareholder value. 

King Abdullah Port, a major maritime hub, is expected to drive growth, while KAEC’s infrastructure projects, including a new stadium and multiple hospitality ventures, are aimed at boosting the city’s appeal as a tourism and business destination. 

In the first half of 2024, EEC made progress by attracting investors and implementing cost optimization measures, supporting the company’s turnaround efforts. 

Moelis & Co. serves as an independent advisor on the debt restructuring, with SNB Capital as financial advisor for the capital decrease and debt conversion, the release added. 


Oil Updates – crude surges to 5-month high after US hits Iran’s key nuclear sites

Updated 7 sec ago
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Oil Updates – crude surges to 5-month high after US hits Iran’s key nuclear sites

  • Brent, WTI up more than 3 percent before paring gains
  • US attack on Iran increases risk of supply disruption
  • Fears Iran could close Strait of Hormuz, key oil supply route

NEW DELHI: Oil prices jumped on Monday to their highest since January as the US’s weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.

Both contracts rose by more than 3 percent earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains.

By 12:21 p.m. Saudi time, Brent crude futures were up 5 cents or 0.06 percent to $77.06 a barrel, while US West Texas Intermediate crude advanced 0.02 cents or 0.03 percent to $73.86.

The rise in prices came after US President Donald Trump said he had “obliterated” Iran’s main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.

Iran is OPEC’s third-largest crude producer.

Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows.

“The current geopolitical escalation provides the fundamental catalyst for (Brent) prices to traverse higher and potentially spiral toward $100, with $120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a “gambler” for joining Israel’s military campaign against the Islamic Republic.

“The risks of damage to oil infrastructure ... have multiplied,” said Sparta Commodities senior analyst June Goh.

Although there are alternative pipeline routes out of the region, there will still be crude volume that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added.

Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10 percent for the following 11 months.

The bank still assumed no significant disruption to oil and natural gas supply, adding global incentives to try and prevent a sustained and very large disruption.

Brent has risen 13 percent since the conflict began on June 13, while WTI has gained around 10 percent.

Given the Strait of Hormuz is indispensable for Iran’s own oil exports, which are a vital source of its national revenues, a sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword, Sachdeva added.

Meanwhile, Japan on Monday called for de-escalation of the conflict in Iran, while a South Korean vice industry minister voiced concern over the potential impact of the strikes on the country’s trade.

Russian President Vladimir Putin will meet Iranian Foreign Minister Abbas Araqchi in Moscow on Monday, Russian Interfax agency said, citing Kremlin aide Yuri Ushakov.


Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Updated 22 June 2025
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Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security.

The agreement, inked between Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported.

The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region’s financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units.

The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations.

The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait’s exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity.

Officials from both countries highlighted the MoU’s role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance.

The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors.

In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom’s mining industry.

Alkhorayef underscored the sector’s importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion.

Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.


Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Updated 23 June 2025
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Closing Bell: Saudi main index edges down 0.34% to close at 10,574

RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Sunday, falling 36.44 points, or 0.34 percent, to close at 10,574.27.

Total trading turnover reached SR3.72 billion ($991 million), with 134 stocks posting gains and 102 declining.

The Kingdom’s parallel market, Nomu, also recorded a slight dip, losing 27.14 points, or 0.10 percent, to settle at 26,148.69, as 34 stocks advanced and 39 retreated. Meanwhile, the MSCI Tadawul 30 Index dropped 5.34 points, or 0.39 percent, to finish at 1,361.80.

Alistithmar AREIC Diversified REIT Fund was the best-performing stock of the session, with its share price rising 10 percent to SR8.25. Al Sagr Cooperative Insurance Co. followed with a 9.96 percent increase to SR12.36, while Knowledge Economic City climbed 5.36 percent to close at SR12.98.

On the losing side, Retal Urban Development Co. saw the steepest decline, falling 5.10 percent to SR13.02. Flynas Co. dropped 4.13 percent to SR74.20, and Saudi Chemical Co. declined 3.85 percent to SR6.24.

Shares of Hawiya Identity Auctions began trading on Nomu at SR13 per share. According to a Tadawul statement, the offering comprised 2.4 million shares, with Derayah Financial Co. acting as lead manager.

Gas Arabian Services Co. announced the signing of a joint venture agreement with Italy’s BONOMI Co. to establish a valve manufacturing company in the Kingdom.

The new company will have a capital of SR5 million, with BONOMI holding a 60 percent stake and Gas Arabian Services owning 40 percent.

The Saudi firm will fund its SR2 million share from internal resources. The deal is expected to have a long-term positive financial impact, though it remains subject to regulatory approvals and the fulfillment of conditions outlined in the agreement. Gas Arabian Services shares closed at SR15, up 0.40 percent.

The price range for the offering of the Sports Clubs Co. ranged between SR7 and SR7.5 per share, according to a statement by Saudi Fransi Capital, the financial advisor and bookrunner for the institutional subscription.

The offering includes 34.32 million ordinary shares, representing 30 percent of the company’s capital.


Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Updated 22 June 2025
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Saudi culture sector to triple GDP share to $48bn by 2030, says minister

JEDDAH: Saudi Arabia plans to raise the cultural sector’s contribution to gross domestic product to 3 percent — or SR180 billion ($48 billion) — by 2030, up from under 1 percent, according to Minister of Culture Prince Badr bin Abdullah bin Farhan.

In an interview with Al-Eqtisadiah, the minister said the sector has already surpassed its previous 0.91 percent GDP share, with Vision 2030 targets being met ahead of schedule.

“Vision 2030 forms the foundation of the Ministry of Culture’s strategy and direction,” he said. 

“By 2030, we envision a cultural environment that nurtures talent, encourages innovation both locally and internationally, and supports the flourishing of creative and cultural enterprises.” Prince Badr said in the interview. 

“Ultimately, our goal is to increase the sector’s contribution to GDP to 3 percent, equivalent to SR180 billion,” he said. “This represents the core mission of the Ministry of Culture and its affiliated bodies in driving an ambitious cultural transformation.”

Since the ministry’s founding in 2018, employment in the sector has jumped 318 percent, while the number of cultural graduates reached 28,800 in 2024, up 79 percent from 2018. The ministry has also issued over 9,000 licenses, while cultural associations and amateur clubs surged from 28 to 993.

“One notable outcome is the increase in the percentage of citizens who believe culture is important—from under 70 percent to 92 percent,” Prince Badr said. The ministry also oversees national celebrations such as Founding Day and Flag Day and has documented 9,317 antiquities sites and 25,000 urban heritage locations.

Saudi Arabia has now met its Vision 2030 target of having eight UNESCO World Heritage sites, with Al-Faw joining the list in 2024. Cultural event attendance exceeded 23.5 million between 2021 and 2024, and major festivals such as the Red Sea Film Festival and Islamic Arts Biennale have become global draws.

The Cultural Scholarship Program has awarded scholarships to 1,222 students studying at over 120 institutions across countries, including the US, the UK, and France. The program’s flexible design — no age limit or required academic background — has broadened participation. “Today, scholarship recipients are pursuing degrees in fields such as music, theater, and visual arts,” the minister said.

Through the Cultural Development Fund, the ministry has disbursed SR377 million to more than 120 projects. “Key areas of growth include heritage, music, and fashion. More than 1,200 creatives and entrepreneurs have benefited from its development services,” he added.

“Globally, there is increasing recognition of culture’s role in sustainable economic value creation,” the minister said. “Our role is to preserve and promote cultural identity while making it accessible and economically valuable.”


Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

Updated 22 June 2025
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Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. 

According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. 

The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.  

After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. 

In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”

Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.  

“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.   

Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.  

A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.  

Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.   

Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.   

Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.  

Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.  

The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.   

The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.