Closing Bell: Saudi main index climbs to 11,900

A Saudi investor monitors the stock exchange board at the Saudi Stock Exchange, or Tadawul, in the capital Riyadh. File/AFP
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Updated 15 September 2024
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Closing Bell: Saudi main index climbs to 11,900

  • Parallel market Nomu fell by 164.65 points, or 0.63%, to finish at 25,769.95
  • MSCI Tadawul Index increased by 7.12 points, or 0.48%, ending the day at 1,478.60

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 57.75 points, or 0.49 percent, to close at 11,900.30 on Sunday. 

The benchmark index saw a total trading turnover of SR4.14 billion ($1.10 billion), with 138 stocks advancing and 80 declining. 

The Kingdom’s parallel market Nomu fell by 164.65 points, or 0.63 percent, to finish at 25,769.95, as 19 stocks advanced and 46 retreated. 

The MSCI Tadawul Index increased by 7.12 points, or 0.48 percent, ending the day at 1,478.60. 

The top performer of the day was Saudi Fisheries Co., with its share price surging 9.93 percent to SR25.35. 

Other top gainers included Amlak International Finance Co. and Saudi Arabian Cooperative Insurance Co., with their share prices rising by 7.59 percent and 7.36 percent, respectively. 

The worst performer was Al-Baha Investment and Development Co., which saw its share price drop by 5.56 percent to SR0.17. Middle East Specialized Cables Co. saw a decline of 1.99 percent, while First Milling Co. dropped by 1.83 percent. 

On the announcements front, Riyad Capital, acting as the sole financial adviser, lead manager, bookrunner, and underwriter for Fourth Milling Co.’s initial public offering, has revealed the offering price range and the start of the institutional book-building period. 

According to a Tadawul statement, the price range for the offering is set between SR5 and SR5.30 per share, with the book-building period running from Sept. 15 to 19. 

The offering includes 162 million ordinary shares, representing 30 percent of Fourth Milling’s current share capital. Participating parties can apply for a minimum of 300,000 shares, with a maximum of 26.99 million shares available. 

The financial adviser may reduce the number of shares allocated to participating parties to 129.6 million, or 80 percent of the total offer, to accommodate individual demand. Up to 32.4 million shares, or 20 percent, will be allocated to individual subscribers. 

The total offering size is projected to range from SR810 million to SR858.6 million, suggesting a market capitalization of SR2.7 billion to SR2.8 billion at listing. The company will have a free float of 30 percent of shares post-listing. 

The Capital Market Authority has also approved the registration and offering of 3 million shares of Multi Business Group for Projects Co., representing 20 percent of the firm’s share capital, in the parallel market. The offer will be limited to qualified investors, with the prospectus to be published ahead of the offering. 

The CMA also approved the registration and offering of 337,500 shares of Digital Research Co. and 250,000 shares of Balsm Alofoq Medical Co., both representing 20 percent of each firm’s share capital, in the parallel market. 

The offering for Al-Majed for Oud Co. was held on Sept. 15, with Saudi Fransi Capital serving as the lead manager and Banque Saudi Fransi and Al-Rajhi Bank acting as receiving entities. The retail offering comprised 1.5 million shares, each priced at SR94. 


Saudi EV market poised for significant growth by 2026, Petromin CEO predicts

Updated 22 sec ago
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Saudi EV market poised for significant growth by 2026, Petromin CEO predicts

RIYADH: Saudi Arabia is preparing for a substantial rise in electric vehicle sales as battery prices fall and infrastructure improves, according to an industry leader. 

In an interview with Arab News at the EV Auto Show in Riyadh, Kalyana Sivagnanam, CEO of Petromin Group—a Saudi-based provider of automotive, lubricant, and EV charging solutions—indicated that EV sales could soon approach parity with internal combustion engine vehicles within the next 12 to 18 months. 

“By 2026/2027, you’re going to see a massive surge in the sales of electric vehicles,” Sivagnanam stated, linking this growth to rapidly changing market conditions and declining battery costs. 

In certain markets like China, the price of EVs is already nearly equivalent to that of traditional vehicles, a trend expected to gain momentum in Saudi Arabia, he added. 

Sivagnanam pointed out that Saudi Arabia’s Vision 2030 has played a crucial role in nurturing the EV sector, attracting major global players such as Lucid Motors, which has commenced local manufacturing, as well as new entrants like Ceer and Hyundai. 

“The EV industry definitely in Saudi Arabia is looking very, very promising,” he remarked, noting that some forecasts predict EVs could make up 35 to 40 percent of the market by 2030. 

He also discussed the “chicken and egg” challenge of EV adoption, where limited charging infrastructure deters consumers from buying electric vehicles. 

The top executive stressed the significance of initiatives like the Public Investment Fund’s EVIQ program, designed to enhance the country’s EV charging infrastructure. “In the months and years to come, we can see how this will pave the way for more adoption of electric vehicles.” 

Electromin, a subsidiary of Petromin Corp., is closely monitoring the pace of EV sales to inform its expansion of charging stations. “Our ability to install chargers will depend on how fast the vehicles sell,” Sivagnanam explained. 

The CEO highlighted Electromin’s comprehensive services for fleet customers, providing decarbonization strategies as well as EV charger installation and maintenance. 

“For example, if you are a fleet company, you don’t want to go to somebody for chargers, somebody for maintenance, and someone else for your vehicles,” he said, emphasizing the need to streamline the transition to electric vehicles. 

Electromin has already made notable progress, establishing the first national AC charging network in Saudi Arabia, with chargers accessible in 52 cities. “Today, any customer in the Kingdom, doesn’t matter where he drives, he will find an AC charger,” Sivagnanam remarked. 

Although these are not fast chargers, they ensure that drivers can access charging facilities wherever they are, he added. 

The company has also provided Saudi Arabia’s first electric van to Pepsi, the inaugural electric bus to Red Sea, and a passenger bus to Riyadh Air. 

With growing government support and robust corporate initiatives, Saudi Arabia’s EV market is set for considerable expansion in the coming years. 

“What is very exciting about this journey is the way this country is focusing on sustainability and EV adoption,” the executive concluded.


Saudi Arabia’s EV growth outpaces global trends by 10x, says industry leader

Updated 7 min 53 sec ago
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Saudi Arabia’s EV growth outpaces global trends by 10x, says industry leader

RIYADH: Saudi Arabia is rapidly advancing in the electric vehicle sector for commercial transportation, outpacing many other countries, according to an industry leader. 

In an interview with Arab News during the EV Auto Show 2024, Gary Flom, president and CEO of National Transportation Solutions Co., praised the Kingdom’s swift development, noting that it has achieved in five years what took the US 25 years. 

“The speed of progress here is like light speed,” he remarked. 

“Everything here is accelerated — maybe 10 times when you look at Europe or the United States,” he added. 

As part of its Vision 2030 initiative, Saudi Arabia is focused on creating a comprehensive EV ecosystem to diversify its economy and reduce reliance on oil. The government aims for 30 percent of vehicles in Riyadh to be electrified by 2030. 

To meet this ambitious goal, significant investments are being made in EV infrastructure, including public charging stations and policies favorable to EV adoption. 

Additionally, the government is collaborating with international partners to build an EV supply chain that encompasses sourcing raw materials for batteries and enhancing manufacturing capabilities. 

Flom acknowledged the difficulties in transforming the passenger vehicle market but expressed optimism about the advancements in the commercial sector.

“It’s a lot easier to decarbonize the commercial sector because we know what the customer does,” he said. “We know where the vehicle goes, where it lives, and the payload it carries. We know how to design the charging infrastructure for it,” the executive said.

NTSC is leading these efforts with its decarbonization roadmap. According to Flom, this comprehensive plan aims to assist government and private fleet operators in transitioning from internal combustion engine fleets to electric and hydrogen-powered vehicles. The roadmap is designed to measure the carbon baseline of fleets, provide the necessary ecosystem for charging infrastructure, and manage the maintenance of electric commercial vehicles using advanced software.

“Our decarbonization Roadmap gives government fleets and private fleets a cost-effective, organized way to transition from ICE fleets to new energy fleets,” Flom said. This initiative also provides accredited carbon reduction data, which will be crucial for carbon credit trading in Saudi Arabia as the market for this system continues to grow.

Flom added: “We give them this plan over the next few years on how to decarbonize their fleet. And also we give them the accredited carbon reduction data so they can actually use it to trade carbon credits when that becomes available in Saudi Arabia.”

The roadmap has already resulted in strategic partnerships with key players in the transportation sector, including agreements with J&T Express, Saudi Bulk Transport (SBT-SENDDEX), and UPS. These collaborations, announced at the event, are instrumental in promoting advanced decarbonization strategies across the Kingdom. “Our collaboration with SBT-SENDDEX and Electromin reflects our commitment to advancing sustainable transportation with leading companies in KSA,” Flom said.

“By leveraging innovative decarbonization strategies, we aim to make a significant impact aligned with the UN Sustainable Development Goals,” he added.

In addition to strategic partnerships, NTSC has developed innovative technologies such as DarbConnect, a proprietary fleet management software. The platform uses Internet of Things technologies to provide real-time GPS tracking, predictive maintenance, and a range of data services, helping fleet operators enhance efficiency and reduce costs. “DarbConnect has proven to be a huge success,” Flom said.

“In less than two years, we signed up more than 330 B2B and B2G customers and gained about 35 percent market share of the entire commercial units and operation sector,” he added.

While the commercial sector is advancing quickly, Flom noted that decarbonizing the passenger vehicle sector presents more challenges due to the variability in individual vehicle use. Unlike commercial fleets, which have predictable routes and payloads, passenger vehicles are utilized for various purposes, complicating the establishment of a uniform charging infrastructure and user behavior model.

Looking ahead, Flom remarked that the company aims to become a regional leader in sustainable transportation, planning to export its expertise, roadmap, and technologies to the broader Middle East and North Africa region. “NTSC will become not only the leader for fleet management and sustainable multi-modal mobility, but we also look to export the same outside of Saudi Arabia,” said Flom.


Closing Bell: Saudi main index rises to close at 12,080

Updated 34 min 2 sec ago
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Closing Bell: Saudi main index rises to close at 12,080

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 159.53 points, or 1.34 percent, to close at 12,080.47.

The total trading turnover of the benchmark index was SR9.47 billion ($2.52 billion), as 152 of the stocks advanced and 73 retreated. 

The Kingdom’s parallel market Nomu slipped 25,337.96 points, or 1.01 percent, to close at 25,337.96. 

This came as 30 of the listed stocks advanced, while 41 retreated. 

The MSCI Tadawul Index gained 21.02 points, or 1.41 percent, to close at 1,507.65.  

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 7.95 percent to SR95.

Other top performers were Red Sea International Co. as well as Saudi Automotive Services Co.

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 5.88 percent to SR0.16. 

Other fallers were Saudi Enaya Cooperative Insurance Co. and Saudi Industrial Development Co.

On the announcements front, the United Cooperative Assurance Co. announced that it had received a confirmation statement that the firm’s activities are consistent with the specifications of Shariah, as stipulated by the relevant supervisory committee. 

Those include separation of accounts and investments for both shareholder and policyholder pools, and insurance policies.

Retal Urban Development Co. announced the selling of its 33.33 percent share of land in Al-Khobar City for SR21 million to Remal Park Fund, an affiliate company, to issue new units in the fund in addition to the existing units owned by the company.

A bourse filing revealed that the purpose of the transaction is to increase the leasable area of the project by merging the entire land of this transaction to the rest of the project’s holdings, which will reflect positively on both the company’s and the fund’s investment.

The transaction is expected to have a positive impact on Retal’s results for 2024 until 2028. This comes as the increase in the company’s investment returns will be a result from both maximizing the fund’s returns and the increase in the development management fees for the firm.


Volt Charge to boost Saudi EV infrastructure with next-gen mobile chargers

Updated 19 September 2024
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Volt Charge to boost Saudi EV infrastructure with next-gen mobile chargers

RIYADH: Saudi Arabia is set to advance its electric vehicle infrastructure with the introduction of next-generation mobile EV chargers by local manufacturer Volt Charge, revealed the company’s top executive. 

Elie Metri, CEO and executive board member of Volt Charge, told Arab News at the EV Auto Show in Riyadh that the firm is finalizing the prototype of its innovative mobile charger, in collaboration with its sister company QSS AI & Robotics. 

This comes as robust charging infrastructure is essential to Saudi Arabia’s plan to transition 30 percent of vehicles in Riyadh to electric by 2030, a crucial step in its broader strategy to cut city emissions by 50 percent and achieve carbon neutrality by 2060.  

“What we’re doing is merging two emerging technologies — robotics and EV charging. We are currently finalizing the first prototype of a charger that comes to you. You won’t have to go to your charger anymore,” Metri said. 

He described a scenario where drivers use a mobile app at a mall to summon a charger, which uses AI to identify their car, handle the connection, and manage payment. After charging, the unit returns to its main station.  

Metri noted that this represents a significant advancement in electric vehicle technology.  

The CEO added that the company is the first Saudi brand to manufacture entirely within the Kingdom, with a 7,000 sq. meters factory in Sudair City, a sizable facility for assembling or producing the chargers.  

He highlighted that localizing technology aligns with Saudi Arabia’s sustainability goals, explaining that the company’s commitment to green energy is demonstrated by its early investment in both robotics and EV chargers. 

“We’re localizing the technology. This means we believe heavily that Saudi Arabia is moving into green energy,” Metri said, adding that they began investing in robotics in 2017, “when it was virtually unheard of in the MENA region.”  

He also mentioned their ambitious plans for manufacturing, saying: “We’re building a factory that can make 40,000 chargers while there are very few cars in the Kingdom. But we believe that it’s going to come, and we hope to have a huge market share being a local company and local factory.” 

The CEO acknowledged the challenges faced in producing the EV chargers, particularly in procuring the necessary components. He noted that Saudi Arabia does not yet have a manufacturing hub like China, which complicates the supply chain. 

“Not all the technical components are available in the local market,” Metri explained. “If I want to manufacture a charger, it has 20 or 25 components, so I need to ship them from different parts of the world,” he said, adding that this creates challenges, but “we’re overcoming all of those.”  

Volt Charge, headquartered in Riyadh, specializes in manufacturing robust EV chargers designed for extreme climates. The company’s efforts were showcased at the Riyadh International Convention and Exhibition Center, highlighting Saudi Arabia’s commitment to sustainable mobility as part of Vision 2030. 

The EV Auto Show serves as a key platform for discussing the future of mobility, featuring interactive seminars, panel discussions, and showcases of EV technologies and charging solutions. 


Saudi agricultural fund boosts food sector with $533m in loans, credit facilities

Updated 19 September 2024
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Saudi agricultural fund boosts food sector with $533m in loans, credit facilities

JEDDAH: Saudi Arabia’s Agricultural Development Fund has approved SR2 billion ($533.33 million) in loans and credit facilities aimed at enhancing food sustainability and security throughout the Kingdom.

This strategic funding will support a range of agricultural initiatives, including red meat and poultry production, greenhouse farming, fish aquaculture, and cold storage facilities. The decision was made during the fund’s third board meeting of the year, held on Sept. 18 and chaired by Minister of Environment, Water, and Agriculture Abdulrahman Al-Fadhli.

Despite approximately 90 percent of its land being desert, Saudi Arabia is experiencing an agricultural renaissance focused on increasing domestic crop production and reducing reliance on imported food. The Kingdom has already achieved complete self-sufficiency in dates, fresh dairy products, and table eggs, according to the General Authority for Statistics.

By enhancing local production and ensuring stable supply chains, the ADF is playing a vital role in advancing the country’s food security objectives while promoting long-term agricultural sustainability, in line with the goals of Saudi Vision 2030.

Munir bin Fahd Al-Sahli, chief executive of ADF, noted that working capital will be financed in collaboration with banks to support the importation of key agricultural products. He emphasized that this initiative is part of a comprehensive food security strategy designed to strengthen reserves and stabilize supply chains.

The board also reviewed a report on the performance of agricultural projects supported by the fund over the past five years, assessing their operations, production, and funding goals. Additionally, the board examined ADF’s overall performance report for the current fiscal year up to the end of August.

Mansour Al-Mushaiti, vice minister of the Ministry of Environment, Water, and Agriculture, highlighted the surge in investments in the Saudi agricultural sector during his speech at the 43rd session of the UN Food and Agriculture Organization’s General Conference in July 2023. He noted that domestic agricultural production reached SR100 billion in 2022, the highest contribution in history, and that the Kingdom has achieved commendable levels of self-sufficiency, particularly in crops utilizing modern technologies.