ISTANBUL: Turkish energy bourse Enerji Piyasalari Isletme A.S. will expand its operations over the next few years and an initial public offering may be considered after the expansion, Turkish Energy Minister Alparslan Bayraktar said on Wednesday.
Speaking at an Atlantic Council conference in Istanbul on Wednesday, Bayraktar said EPIAS, which currently operates wholesale electricity and natural gas markets, will diversify in coming years.
“We aim to become a carbon-pricing country by 2026, which will be achieved through the establishment of a carbon market within EPIAS,” Bayraktar said.
The government also wants EPIAS to open a commodities market, Bayraktar added.
“Not at the moment, but we will see when the operations I mentioned are settled,” the minister said when asked by Reuters if an initial public offering was under consideration.
Current shareholders of EPIAS are Turkiye’s transmission grid operator TEIAS, stock exchange Borsa Istanbul and exchange member companies.
Turkiye’s energy bourse EPIAS to expand operations, may then consider IPO, minister says
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Turkiye’s energy bourse EPIAS to expand operations, may then consider IPO, minister says
- EPIAS, which currently operates wholesale electricity and natural gas markets, will diversify in coming years
- Government also wants EPIAS to open a commodities market
Oman’s public revenues rise 2.3% YoY in August
- Net oil revenues reached an estimated 4.65 billion by the end of August
- Average achieved oil price reached $83 per barrel
RIYADH: An increase in Oman’s net oil revenues drove a 2.3 percent year-on-year rise in public earnings, reaching 8.12 billion Omani rials ($21.07 billion) between January and the end of August, according to new figures.
The monthly bulletin issued by the Ministry of Finance said that net oil revenues reached an estimated 4.65 billion by the end of August, reflecting a 12 percent surge compared to the same period last year.
The growth in figures suggests vibrant and expanding economic activity, with more funds circulating within the economy.
It comes as Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter, reaching $16.1 billion, the country’s news agency reported in August.
The sultanate’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations.
The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan.
The bulletin further showed that the average achieved oil price reached $83 per barrel, while the average oil production amounted to about 1.1 million barrels per day.
The increase in net oil revenues is attributed to the methodology used by the government-owned firm Energy Development Oman to collect crude earnings and manage cash liquidity.
Riyadh’s residential transactions soar 52% as Saudi housing market flourishes
RIYADH: Saudi Arabia’s residential market witnessed a 51.6 percent surge in transactions in Riyadh over the year to the end of the second quarter of 2024, a new analysis showed, as the sector continues its robust growth.
According to a report by real estate services firm CBRE, the capital city recorded 18,500 sales valued at SR26.6 billion ($7.08 billion) during this period, and the Kingdom’s residential market is set for further growth, fueled by population increases and government-backed investment projects.
Jeddah also experienced a significant rise in transaction volumes, rising 43.2 percent year on year to 9,392 sales, while the Dammam Metropolitan Area saw a 22.4 percent increase, totaling 2,390 sales worth SR2.4 billion.
Under Vision 2030, Saudi Arabia aims to achieve a 70 percent home ownership rate by the end of the decade. To support families in reaching this goal, the Kingdom has established the Sakani program, which offers personalized housing and financing solutions.
Matthew Green, head of research Middle East and North Africa in CBRE, said: “The fundamentals for Saudi Arabia’s residential sector remain incredibly strong, as reflected in the sustained rental growth across key markets in the Kingdom.”
He added: “Riyadh particularly is demonstrating attributes of an undersupplied market, driven by strong employment and population growth on the back of government investment projects, resulting in very tight supply in certain areas of the market as new deliveries fail to keep pace with the robust housing demand.”
In the first half of 2024, Riyadh’s total residential rental transactions rose 6.1 percent to 274,146, while Jeddah saw a 2.3 percent year-on-year decline in rental transactions, totaling 183,894.
Average apartment prices in the Saudi capital have appreciated approximately 11.7 percent annually since the third quarter of 2020, reaching SR5,000 per sq. meter by the end of the second quarter of 2024.
“Average villa prices have also generally been on an uptrend since 2019 despite encountering a brief dip in early 2020 and again in early 2021, when values dropped 4.8 percent to SR3,820 per sq. meter, while prices have seen robust growth, with average villa values now resting around SR5,824 per sq. meter at the end of June, after rising 3.3 percent year-on-year,” said CBRE.
In Jeddah, average apartment prices peaked before a 0.9 percent dip in the second quarter of 2024, now sitting at SR3,945 per sq. meter, while villa prices have seen a compound annual growth rate of 4.4 percent since 2020, reaching SR5,707 per sq. meter, according to CBRE.
The analysis also highlighted that a segment of the population is seeking ideal financing options for suitable mortgage provisions to facilitate home acquisition, despite government efforts to enhance retail financing facilities through local banks.
Highest priced districts
The report identified Hittin and Al-Malqa as Riyadh’s most expensive districts for villas, with prices ranging from SR9,500 to SR13,500 per sq. meter. This was followed closely by Al-Malqa district with SR8,000 to SR12,900 per sq. meter.
“At the other end of the spectrum, districts such as As-Suwaidi and Al Aziziyah commanded the lowest prices, with average villa prices ranging from SR2,150 per sq. meter to around SR4,800 per sq. meters in As-Swuaidi and SR2,200 per sq. meter, to SR4,050 per sq. meter in Al-Aziziyah,” added CBRE.
The report noted that popular districts in Riyadh, such as As-Sulimaniyah, Al-Taawun, and An Nakheel, continue to command the highest average apartment prices.
In As-Sulimaniyah, the average sale price for apartments ranges from SR6,600 to SR10,500 per sq. meter, while in An Nakheel, prices average between SR7,200 and SR10,300 per sq. meter.
“The best value was to be found in districts such as Dar Al-Baida and Al Aziziyah, with prices ranging from SR1,900 per sq. meter to around SR3,250 per sq. meter and SR2,700 per sq. meter to SR 4,200 per sq. meter respectively across the two neighborhoods,” added CBRE.
In Jeddah, the Ash Shati and Al-Murjan districts command the highest villa prices, with ranges from SR7,500 to SR13,350 per sq. meter. Conversely, areas like Al-Amir Fawwaz present more budget-friendly options starting at SR2,300 per sq. meter.
CBRE reported that branded residences along the Red Sea command the highest values in prominent districts like Obhur Al-Junobiyah, with rates ranging from SR4,700 to SR7,400 per sq. meter.
“The steady delivery of new apartments into Jeddah’s residential market over the past 18 months has resulted in significant fluctuation in average apartment sale prices,” said CBRE.
It added: “The large quantum of new supply in districts such Al-Marwah, As Salamah and As Safa has resulted in saturating of the segment, skewing average prices. Branded residences along the Red Sea continue to command the highest values in prominent districts like Obhur Al-Junobiyah, whilst the lowest sale prices are found in Ar Rayyan.”
As investment projects and population growth further stimulate the sector, Riyadh, Jeddah, and the Dammam Metropolitan Area are positioned for continued expansion, making real estate a vital component of the Kingdom’s economic diversification strategy under Vision 2030.
Saudi Arabia offers Pakistan share of $200bn in annual construction contracts
ISLAMABAD: Saudi Arabia’s Investment Minister Khalid Al-Falih announced on Thursday that the Kingdom aims to allocate a significant portion of its $200 billion annual construction and material procurement contracts to Pakistan.
Speaking at a joint business forum in Islamabad, Al-Falih expressed optimism about finalizing at least $2 billion in business proposals during his three-day visit.
As Saudi Arabia prepares to become the world’s largest construction market, the Kingdom is investing heavily to diversify its economy. According to a 2024 report by global property consultancy Knight Frank, the total construction output is projected to reach $181.5 billion by the end of 2028, marking a nearly 30 percent increase from 2023.
“Saudi Arabia is the largest construction site in the world and we will in the next few years be awarding construction and material procurement contracts reaching about $1.8 trillion,” Al-Falih said at the Pak-Saudi Business Forum 2024.
The minister said that last year, “the construction and EPC procurement value was $150 billion;” this year it’s estimated at $180 billion, and expected to rise to “approximately $200 billion annually moving forward.”
Al-Falih emphasized that a substantial portion of the inputs for these contracts will be imported, with a strong preference for sourcing from Pakistan.
The Saudi minister’s visit comes as Pakistan seeks to strengthen trade and investment ties with friendly nations amid a prolonged economic crisis that has impacted foreign exchange reserves and weakened the national currency.
In recent months, Pakistan and Saudi Arabia have enhanced their bilateral trade and investment efforts, with Crown Prince Mohamed bin Salman reaffirming his commitment to expedite a $5 billion investment package for Pakistan this year.
Earlier on Thursday, the Pakistani president’s office announced that 25 agreements would be signed during Al-Falih’s visit, heralding a new era of economic cooperation. These agreements will focus on investments in Pakistan’s construction, infrastructure, mining, agriculture, and information technology sectors.
“The Saudi minister’s schedule will be packed with meetings with representatives from private companies and top government officials from both countries. Important mutual agreements and memorandums of understanding are expected to be finalized,” stated the Pakistani Prime Minister’s Office following the Saudi delegation’s arrival.
“Private companies in Pakistan are eager to engage in investment and business opportunities with Saudi Arabia,” added Abdul Aleem Khan, Pakistan’s privatization and investment minister.
Al-Falih will meet with leading Pakistani officials and engage with the local business community, accompanied by a delegation of over 130 members representing various sectors, including energy, mining, agriculture, business, tourism, industry, and manpower.
Last month, the International Monetary Fund approved a long-awaited $7 billion bailout for Pakistan, contingent on the implementation of sound policies and reforms to enhance macroeconomic stability and address structural challenges. The IMF emphasized the need for continued support from Pakistan’s development and bilateral partners.
Oil Updates – prices rise on US storm, fears of Israel-Iran conflict
- Hurricane Milton spurs mass fuel buying in Florida
- EIA's US crude inventories show higher than expected build
LONDON: Oil prices edged higher on Thursday, underpinned by a spike in fuel demand as a major storm barrelled into Florida, with Middle East supply risks also in focus.
Brent crude futures rose 58 cents, or 0.8 percent, to $77.16 a barrel by 10:47 a.m. Saudi time. US West Texas Intermediate futures were up 61 cents, or 0.8 percent, at $73.85.
In the US, the world’s largest oil producer and consumer, Hurricane Milton made landfall in Florida, where about a quarter of fuel stations sold out of gasoline, helping to support crude prices.
Prices spiked this month after Iran launched more than 180 missiles against Israel on Oct. 1, raising the prospect of retaliation against Iranian oil facilities. With Israel yet to respond, crude benchmarks have eased once more and remained relatively flat through the week.
But investors remained wary, given Israeli Defense Minister Yoav Gallant promised that any strike against Iran would be “lethal, precise and surprising.”
US President Joe Biden spoke to Israeli Prime Minister Benjamin Netanyahu about Israel’s plans concerning Iran, though ANZ analysts said there is growing concern that Israel’s allies have little influence on its strategy.
Even with threats to the oil-producing Middle Eastern region in the spotlight, demand concerns continue to underpin the fundamental outlook.
“Without a genuine demand excess or supply shortage, the risk will remain skewed to the downside. Even if the Israeli bellicose rhetoric is embodied in an Israeli assault on Iranian oil infrastructure, the price reaction could be brief, albeit violent,” said Tamas Varga at oil broker PVM.
The US Energy Information Administration (EIA) on Tuesday downgraded its demand forecast for 2025 on weakening economic activity in China and North America.
EIA data on Wednesday showed crude inventories last week built more than expected by analysts in a Reuters poll.
Saudi Arabia’s industrial production rises in August on mining gains
- Mining and quarrying expanded 0.8% year on year, as Saudi oil output rose to 8.99 million barrels per day
- Manufacture of coke and refined petroleum products decreased by 11.3%
RIYADH: Saudi Arabia’s Industrial Production Index climbed 1 percent in August compared to the same month last year, driven by a rise in mining and quarrying activities, according to official data.
According to the General Authority for Statistics, mining and quarrying expanded 0.8 percent year on year, as Saudi oil output rose to 8.99 million barrels per day, up from 8.92 million bpd a year earlier.
The growth pushed the IPI to 105 points for the month, marking steady industrial expansion.
The Kingdom’s manufacturing sector has consistently expanded in recent years, driven by Vision 2030’s push to diversify the economy and enhance industrial output, reducing the country’s reliance on oil revenues.
This aligns with broader economic goals aimed at creating a sustainable, non-oil-based growth model.
“Compared to August of the previous year, the sub-index of manufacturing activity increased by 1.1 percent, supported by an increase in the manufacture of chemicals and chemical products, and manufacture of food products which increased by 2.9 percent and 12.9 percent, respectively,” stated GASTAT.
Meanwhile, the manufacture of coke and refined petroleum products decreased by 11.3 percent.
The report added that electricity, gas, steam, and air conditioning supply rose by 4.1 percent year on year, although water supply, sewerage, and waste management activities fell 0.9 percent.
GASTAT highlighted that non-oil activities surged 7 percent compared to July, while oil-related output dropped 1.4 percent.
On a month-to-month basis, the overall IPI slipped 0.3 percent from July. The sub-index for mining and quarrying activity increased by 0.6 percent, while manufacturing output fell 1.8 percent.
GASTAT further noted that electricity, gas, steam, and air conditioning supply activities increased by 1.7 percent month on month, while water supply, sewerage, waste management, and remediation activities rose by 1 percent.
However, the index for oil activities dropped by 0.7 percent in August compared to the previous month, while non-oil activities recorded a 0.6 percent increase.
The IPI is an economic indicator that measures fluctuations in industrial output, calculated through the industrial production survey. It follows the International Standard Industrial Classification of All Economic Activities to ensure consistency and comparability across sectors.
