Search form

You are here

  • Home
  • Closing Bell: Saudi main index slips to close at 12,018 


Closing Bell: Saudi main index slips to close at 12,018 

The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   
Short Url

https://arab.news/rwxv4

Updated 30 October 2024
Dayan About Tine
Follow

Closing Bell: Saudi main index slips to close at 12,018 

Updated 30 October 2024
Dayan About Tine

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 43.28 points, or 0.36 percent, to close at 12,018.81. 

The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   

The MSCI Tadawul Index decreased by 6.42 points, or 0.42 percent, to close at 1,511.37 

The Kingdom’s parallel market, Nomu, edged up by 245.89 points, or 0.92 percent, to close at 26,868.99. This comes as 39 stocks advanced, while 36 retreated. 

The best-performing stock of the day was Etihad Altheeb Telecommunications Co., with its share price surging by 6.18 percent to SR116.8.  

Other top performers included Red Sea International Co., which saw its share price rise by 4.98 percent to SR75.9. 

MBC Group, and Saudi Arabian Amiantit Co., also saw a positive change at 4.57 percent and 4.08 percent to SR42.35 and SR34.45, respectively. 

The worst performer of the day was Saudi Industrial Export Co., whose share price fell by 7.12 percent to SR2.48. 

Nahdi Medical Co. and Al-Baha Investment and Development Co., also saw declines, with their shares dropping by 3.86 percent and 3.85 percent to SR124.4 and SR0.25, respectively.  

Leejam Sports Co. and Fourth Milling Co., also saw a negative change at 3.63 percent and 3.58 percent to SR186 and SR5.11, respectively. 

On the announcements front, Retal Urban Development Co. reported its preliminary financial results for the nine months ending Sept. 30 with a net profit after zakat and tax of SR145.98 million. This marked a 20.32 percent decline compared to the same period last year. 

According to a statement, the decrease was primarily due to an 87.4 percent drop in revenues from real estate unit and land sales, despite an 87.6 percent rise in development contract revenues driven by more active projects. 

General and administrative expenses rose by 63.3 percent to SR60.68 million due to organizational growth. Selling and marketing expenses also increased by 66 percent to SR23.54 million to boost market share and brand strength. 

Additionally, financing costs surged by 245.4 percent to SR58.27 million, impacted by higher debt and an increased Saudi Interbank Offered Rate. 

The company’s stock closed at SR14.22, down by 2.47 percent. 

Nahdi Medical Co. reported net profit of SR662.9 million for the same period, marking an 8.2 percent annual decline. This was partly due to the prior year’s non-recurring inventory provision release of SR33 million. 

Operating expenses also rose by SR78.6 million as the company invested in strategic initiatives, including new openings and digitalization, though efficiency programs improved expenses as a percentage of revenue by 1.3 percent. 

The company’s stock closed the session at SR124.2, reflecting a decrease of 4.02 percent. 

Topics: TASI NOMU stocks

AlUla’s non-tourism sector economically buoyant, RCU chief says

Updated 2 min 32 sec ago
Nadin Hassan
Follow

AlUla’s non-tourism sector economically buoyant, RCU chief says

Updated 2 min 32 sec ago
Nadin Hassan

RIYADH: The Royal Commission for AlUla is reshaping the city’s economy, with non-tourism sectors contributing around SR7 billion ($1.86 billion) to Saudi Arabia’s gross domestic product, a senior official said.

During a panel session at the Future Investment Initiative in Riyadh, Abeer Al-Akel, acting CEO of RCU, highlighted that this figure nearly matches AlUla’s tourism contribution to the Kingdom’s gross domestic product at around SR9.5 billion.

Al-Akel said that the commission is working to diversify the city’s economic foundation and provide the local community with inclusive growth opportunities.

She added: “People might not know that the contribution of non-tourism sectors in AlUla is basically around SR7 billion, which is a very close amount to the tourism, right? 

“We are basically working with the local community in ensuring that we provide the local community with opportunities for them to participate in what we do in AlUla.”

As part of RCU’s diversification strategy, agriculture ranks as the second-largest sector in AlUla after tourism.

The commission has committed to improving farming practices and enhancing the entire agricultural value chain — from production and packaging to buyer connectivity.

“We’re aiming to empower our farming community and introduce local produce to a broader market,” Al-Akel said, underscoring RCU’s goals of fortifying AlUla’s food ecosystem and increasing local producers’ market reach.

She continued: “We’re really doing this for three main reasons. One is to ensure that we create and advance the food ecosystem in AlUla and expand it, but we’re also doing this to empower our farming community.

Al-Akel added: “Finally, is to mainly do that because of introducing local produce to a bigger networking market.”

Furthermore, RCU’s efforts to establish AlUla as a regional film hub are underway, with recent successes including the blockbuster movie Kandahar featuring Gerard Butler.

She explained that AlUla now boasts a world-class, 30,000 sq. meter production facility, positioning it as a major destination for international film production.

With 700 production days already recorded, the sector is set to contribute to the economy and foster local creative talent both in front of and behind the camera.

AlUla’s historic role as an ancient crossroad of civilizations is being revitalized through strategic international partnerships.

RCU collaborates with leading global organizations such as UNESCO and the World Bank, working toward shared goals of cultural conservation, environmental preservation, and sustainable economic growth.

AlUla’s comprehensive eco-friendly approach, guided by its 12-point Sustainability Charter, places environmental and cultural preservation at the forefront of all initiatives.

As Al-Akel emphasized, the RCU’s mandate is to “strike a delicate balance between development and ecosystem progress,” ensuring that AlUla’s unique natural and cultural landscape is protected while fostering economic growth.

“We are on the right track, and we have achieved a lot in the past years; we have basically introduced and released over 2,300 animals into the wild,” Al-Akel said.

She continued to say that 50 percent of the lands are “basically protected,” adding: “We have recruited more than 150 Rangers that are now patrolling and monitoring those reserves.”

Topics: FII8 Royal Commission for AlUla Abeer Al-Akel

Related

Business & Economy
RCU showcases environmental, social, and economic milestones in 1st annual sustainability report
Business & Economy
FII8: Global leaders call for new economic diplomacy tools to address modern challenges 

PIF partners with Google Cloud to create AI hub in Saudi Arabia 

Updated 41 min 30 sec ago
Nirmal Narayanan
Follow

PIF partners with Google Cloud to create AI hub in Saudi Arabia 

Updated 41 min 30 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabia’s Public Investment Fund has formed a strategic partnership with Google Cloud to establish an advanced artificial intelligence hub near Dammam in the Eastern Province.  

This AI center will create thousands of jobs, contribute $71 billion to Saudi Arabia’s gross domestic product over the next eight years, according to a press release.  

The agreement, signed during the eighth Future Investment Initiative in Riyadh, supports Saudi Arabia’s ambition to become a regional tech hub by the end of the decade.   

The technology sector is one of PIF’s priority investment areas, serving as a crucial enabler for other sectors in the economy, including entertainment, financial services, healthcare, transport and logistics, utilities, and renewables. 

“This partnership demonstrates PIF’s dedication to fostering an AI-friendly environment through investments in human capital and technology, upskilling thousands with cutting-edge tools to support our sustainable and innovative infrastructure goals,” said Yasir Al-Rumayyan, governor of PIF.   

He added: “Saudi Arabia is a prime location for global tech partners as PIF brings both sector expertise and a long-term approach to investment.”  

The partnership will provide AI training for millions of Saudi students and professionals, supporting the national objective of expanding the information and communication technology sector by 50 percent. Through Google Cloud’s technology, industries will have enhanced access to AI applications, enabling growth and capacity building. 

The agreement, subject to regulatory approvals, also includes joint research on Arabic language models and Saudi-specific AI applications.  

“This strategic partnership will accelerate adoption of AI in the local language and across industries — including health care, retail, financial services and more — for enterprises and startups in Saudi Arabia, across the Middle East, Africa and around the world,” said Ruth Porat, president and chief investment officer of Alphabet and Google.  

To advance Arabic-language models, PIF and Google Cloud plan to enhance the Arabic-language capabilities of Gemini, Google’s generative AI model family, by integrating additional Arabic datasets with Google Cloud’s technology. 

PIF stated that this collaboration will allow local businesses and developers to incorporate these models into their systems, enabling them to build advanced AI agents and applications tailored to Arabic language use. 

“As part of Saudi Arabia’s rich technology ecosystem, we aim to create highly-skilled jobs for Saudis and opportunities for global businesses to fuel growth through cloud adoption,” added Porat. 

Topics: FII8

FII8: Global leaders call for new economic diplomacy tools to address modern challenges 

Updated 30 October 2024
Miguel Hadchity
Follow

FII8: Global leaders call for new economic diplomacy tools to address modern challenges 

Updated 30 October 2024
Miguel Hadchity

RIYADH: Global leaders called for revitalized approaches to economic diplomacy at the Future Investment Initiative, urging adaptable tools to navigate today’s complex international landscape.

During a panel on the second day of the event, policymakers and experts emphasized the need for modernized frameworks that support cross-border collaboration. 

Highlighting Saudi Arabia’s success as an investment hub, Bahrain’s Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al-Khalifa, noted the rapid rise in foreign direct investment into the Kingdom, reflecting the impact of the gathering. 

“The real testament to the success of FII,” he said, “is that if we look at the first time it was hosted, and now it’s in its eighth edition, foreign direct investment to the Kingdom of Saudi Arabia has increased by more than 20-fold.” 

The minister also emphasized the need to modernize the multilateral frameworks that have governed global relations since World War II. 

With an increasingly complex global landscape, Al-Khalifa pointed out that existing institutions may struggle to meet today’s challenges without substantive reform. He added that effective sanctions require a solid infrastructure: “We cannot use sanctions unless they are part of a robust system; otherwise, they don’t achieve their purpose.”

Former US Secretary of the Treasury Steven Mnuchin echoed these concerns, pointing to the effectiveness of tariffs and sanctions as flexible tools within economic diplomacy. 

Reflecting on the broader historical impact of trade liberalization, he said: “I think in a long period of time, global trade in lowering tariffs was the right thing to do and create global opportunities.” 

However, he noted that recent shifts have required more selective use of these tools to address modern economic dynamics. “If you talk about the US-China example, tariffs were used for diplomacy for a long period of time,” he said, citing their role in recalibrating trade relationships. 

Mnuchin went on to underscore the strategic importance of sanctions, which have been a central element in US foreign policy over recent decades. “There’s no question that sanctions are a very important tool,” he said. 

“A lot of countries didn’t like our long reach, but there’s no question, you know, sanctions were a very, very important tool, whether it was Iran or whether it was North Korea — they were used very effectively,” Mnuchin added. 

He further emphasized the significance of tariffs as economic tools, although he acknowledged they are unlikely to replace traditional forms of taxation. 

Jean-Yves Le Drian, chairman of the French agency for AlUla Development and a representative of the French government, introduced the idea of developing new tools to tackle emerging issues that transcend borders, such as climate change and artificial intelligence. 

“The COPs could perhaps be the testing ground for what international organizations could become,” he said, positioning climate action forums as potential incubators for broader global reforms. 

In addition to discussing the need for adaptable economic tools, Al-Khalifa highlighted Bahrain’s own strides in strengthening its international alliances, including a recent comprehensive agreement with the US. 

“We recently signed the comprehensive security integration prosperity agreement with the United States, a long-term strategic ally,” he noted, describing it as a significant enhancement of US-Bahrain cooperation.

Topics: FII8 Foreign Direct Investment (FDI)

Related

Special video
Business & Economy
Diriyah Co. set to launch 8 new hotels as part of $62.2bn giga-project
Business & Economy
Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan

Saudi Arabia’s PIF signs MoU with Brookfield to launch $2bn investment platform

Updated 30 October 2024
Miguel Hadchity
Follow

Saudi Arabia’s PIF signs MoU with Brookfield to launch $2bn investment platform

Updated 30 October 2024
Miguel Hadchity

RIYADH: Saudi Arabia’s Public Investment Fund and Brookfield Asset Management Ltd. have signed a non-binding memorandum of understanding for the wealth fund to become a strategic anchor investor in Brookfield Middle East Partners.

According to a press release, this new platform, BMEP, will serve as Brookfield’s private equity vehicle for investments in Saudi Arabia and the broader region.

The MoU was finalized during the Future Investment Initiative summit currently underway in Riyadh.

BMEP aims to raise $2 billion from various investors, focusing on buyouts, structured solutions, and other investment opportunities across key sectors, including industrials, business and consumer services, technology, and healthcare.

At least 50 percent of the capital will be directed toward investments in Saudi Arabia, as well as into leading international companies looking to expand in the local market, facilitating foreign direct investment into the Kingdom.

This partnership seeks to combine the strengths of PIF and Brookfield to enhance local private equity investment opportunities and promote economic development in Saudi Arabia, further supporting the country’s vision of becoming a leading hub for global investment and economic growth.

Yazeed A. Al-Humied, deputy governor and head of MENA investments at PIF, stated: “PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets.”

He added: “This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region while facilitating knowledge transfer and capacity-building within Saudi Arabia.”

PIF has been actively promoting Saudi Arabia’s economic transformation and diversification, driving local growth and impacting global industries. Since 2017, PIF has launched 95 new companies within the Kingdom and has generated over 1.1 million direct and indirect jobs globally.

Expressing enthusiasm over the partnership, Brookfield Asset Management CEO Bruce Flatt said: “We are honored to partner with PIF on this landmark private equity fund. Saudi Arabia is core to the region’s economic transformation, and we look forward to contributing to its growth by investing at scale in market-leading companies that will benefit from our deep operating capabilities.”

He added: “With our expanding presence in Riyadh, we are excited to bring our global expertise to participate in the development of the local private markets ecosystem.”

Brookfield, one of the largest foreign investors in the GCC, has been present in the region since 1997, making direct investments since 2015. Its portfolio, valued at $12 billion, encompasses private equity, real estate, and infrastructure. Brookfield’s strategy focuses on fostering long-term partnerships with leading local institutions, which sets it apart in the region.

As part of the MoU, the asset management company will expand its Riyadh office and make Brookfield Academy available locally, enabling skill development for investment professionals and supporting PIF’s commitment to fostering local talent.

This non-binding MoU is subject to obtaining regulatory and internal approvals and is contingent upon the satisfaction of specific conditions, the press release said.

 

Topics: FII8

PIF’s TASARU brings Germany’s Blacklane to Saudi Arabia through strategic investment: CEO

Updated 28 sec ago
Reina Takla
Nour El-Shaeri 
Follow

PIF’s TASARU brings Germany’s Blacklane to Saudi Arabia through strategic investment: CEO

  • Blacklane plans to establish a training academy in the Kingdom
  • Investment in Blacklane provides the Kingdom with an experienced international partner to advance sustainable mobility in the region
Updated 28 sec ago
Reina Takla Nour El-Shaeri 

RIYADH: Saudi Arabia’s TASARU is boosting German-based premium chauffeur services company Blacklane’s entry into the Kingdom through a strategic investment, says the CEO. 

In an interview with Arab News during the Future Investment Initiative in Riyadh, Michael Mueller – head of the Public Investment Fund subsidiary –  emphasized the alignment between Blacklane’s mission and Saudi Arabia’s Vision 2030, which includes objectives for a sustainable and localized premium transportation sector. 

“Blacklane is a ride-hailing company that finally focuses on premium chauffeur services and they want to establish a business here in Saudi Arabia and this is finally where we found a very good match into the strategy 2030 of KSA to have a sustainable, premium chauffeur service that finally wants to localize and establish their business here,” he said. 

In addition to providing chauffeur services, Blacklane plans to establish a training academy in the Kingdom, which Mueller highlighted as a unique differentiator in the market. 

“What makes them different is their chauffeur service in Saudi Arabia is already existing and established, of course, but, if you look into what they want to build up, and this is, for example, a training academy, so, it’s something also that comes along with higher safety,” he said. 

According to Mueller, the investment in Blacklane provides the Kingdom with an experienced international partner to advance sustainable mobility in the region. 

“And we have an international company that is already experienced in that business, and that’s what we want to bring to the Kingdom now with our investment and yesterday we did the signing and we are very happy finally that they will start establishing this business,” he added, following the signing of the agreement at FII8. 

TASARU’s investment in Blacklane is part of a broader strategy to develop an ecosystem that supports the growth of key automotive players in the Kingdom, including Ceer, Lucid, and Hyundai. 

“Our priorities right now are, of course, focus also on supporting Ceer, Lucid, Hyundai, and looking into the supplier business, because that’s also very essential as these companies will go live within the next two to three years,” Mueller explained. 

“That’s definitely something we are carefully observing right now. Which suppliers are necessary to establish this ecosystem around the OEMs (original equipment manufacturers) themselves,” he added. 

In the longer term, TASARU is exploring opportunities to strengthen Saudi Arabia’s automotive logistics infrastructure, a move that could further support the sector’s growth. 

“Then we look into each and every opportunity. There might come something in the logistics area that finally also supports to uplift logistics services around automotive. That might be something that is potentially coming a little bit later,” Mueller said. 

Reflecting on TASARU’s milestones achieved within its first year, Mueller pointed to investments in autonomous technology and ride-hailing services as indicators of the company’s commitment to building a sustainable mobility ecosystem in Saudi Arabia. 

“I think you can already see after just one year of operations, we established something in King Abdullah Economic City. We went into autonomous technology investments as now with Blacklane also in ride-hailing services,” he said. 

Mueller added that the company is heavily investing in everything that supports the broader vision of boosting the automotive and mobility industry in the Kingdom. 

“Ride-hailing is one part of it. But we also go more into bringing new technologies to Saudi Arabia, everything that is supporting the overall idea to establish automotive and mobility services in Saudi Arabia,” he said. 

Blacklane is currently in its foundation phase in the Kingdom, Mueller explained, adding that the company’s main hub is in Riyadh and the next step will be to bring their training facilities and academy. 

“After Riyadh, they will focus on Jeddah and there will be three or four cities coming more or less in the Kingdom,” he added. 

Mueller explained that the process of developing the mobility ecosystem comes in a step-by-step model.

He added that Saudi Arabia has already started to establish facilities like Lucid and Ceer, but what comes next is finding the right suppliers to build the foundation. 

He added that exploring next-generation vehicles and technologies, along with strengthening regulations for these innovations, will play a significant role in the future.

Mueller also hinted that TASARU is in the early phases of several big announcements that have yet to be revealed. 

Topics: FII8 Blacklane TASARU

Related

Business & Economy
Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan
Special video
Business & Economy
Diriyah Co. set to launch 8 new hotels as part of $62.2bn giga-project

Latest updates

Bosnia arrests 8 for trafficking illegal migrants from Pakistan, India, among other nations
Pakistan expresses solidarity with Spain as torrential rains, floods kill 62 
Pakistan vows action against suspects that ‘attacked’ ex-chief justice’s car in London
Philippines braces for new typhoon with regions still under water after deadly storm
Islamabad, Baku seek deeper military ties during Azerbaijan visit by top Pakistani general

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.