PIF’s ROSHN, Johnson Controls Arabia ink deal to propel energy efficiency in Saudi Arabia

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Updated 13 February 2025
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PIF’s ROSHN, Johnson Controls Arabia ink deal to propel energy efficiency in Saudi Arabia

RIYADH: Saudi developer ROSHN has signed a deal with Johnson Controls Arabia to introduce advanced cooling technology, strengthening the Kingdom’s push for energy efficiency, said a senior executive. 

In an interview with Arab News on the sidelines of the first day of the Public Investment Fund Private Sector Forum taking place from Feb. 12-13 in Riyadh, Johnson Controls Arabia CEO Mohanad Al-Shaikh explained that the new deal signed with the PIF firm seeks to supply a specialized type of engineered variable refrigerant flow technology that is new to the region to encourage local manufacturing.

This falls in line with Saudi Arabia’s efforts to localize technologies and develop national capabilities in the energy sector, supporting the goals outlined in the Kingdom’s Vision 2030.

It also aligns well with Saudi Arabia’s commitment to have 50 percent of its electricity capacity from renewable sources by 2030.

“It’s (VRF) a technology that allows for a higher level of efficiency of systems to be included in buildings. It targets actually a couple of things. The main thing is the energy efficiency. The energy efficiency ratio of the VRF technology is much better than the traditional on-off technologies that we’ve always used in our houses,” Al-Shaikh said.

“It’s a technology that allows for higher level of efficiencies and it also allows building owners to use less number of machines. So, even for the look and feel of buildings, using this technology would be much better than what we’re used to in our region,” he added.

The CEO emphasized that this step aims to promote localization and local manufacturing, boosting the private sector’s contribution to gross domestic product and increasing the share of industrialization within it, which is in line with Vision 2030.

During the interview, Al-Shaikh highlighted the heating, ventilation, and air conditioning market from a macro level.

“HVAC as an industry, you’re talking about a total market size of $120 billion in the world. In Saudi, we’re talking about SR18 billion ($4.79 billion), the annual sales of HVAC systems. This is growing, actually, in 2025 versus 2024, we’re expecting about 8 percent increase year over year,” he said.

The CEO also underlined how ROSHN has been expanding, saying: “I mean, we’re seeing the projects all across the Kingdom, and this is for us, hopefully, is the first of many, to come and we have signed, this with ROSHN, but we also have other signatures coming up with other PIF companies for mega and giga-projects.”

Al-Shaikh then tackled Johnson Controls Arabia’s operations in the Kingdom.

“We are a company that was established long, long ago. So, our first project was in Jeddah about 75 years ago, under the brand name York. We have about 26 different brands under the Johnson Controls Arabia umbrella. Our flagship, when it comes to HVAC, is the York brand name. Our manufacturing facility in Jeddah is the largest in the Middle Eastern and Africa region in terms of the production capacity and also the footprint of the facility. We have about 11 production lines,” he said.

The CEO added: “We do manufacture products that range from what we use for small to the large to big mega and giga jobs like airports, medical facilities, and cities. And we also have within the facility, we have full-fledged research and development center, labs, testing labs for small residential units and also up to 600-tonne units, and I’m talking about large testing facility.”

Al-Shaikh emphasized that this came as a result of collaboration as well as Saudi Arabia’s vision to localize.

He also disclosed that products manufactured in Saudi today actually comply with products sold in the North American market and Europe.

“This VRF technology, same technology with no modification, has the same level of certification. We’re able to supply it to other places globally. And as I said, the manufacturing facility has allowed us to sell to about 26 different countries in the region. Of course, in the Middle East, but also we’ve reached the North American market by supplying scroll chillers technologies to the US this past year,” the CEO said.

Al-Shaikh mentioned the company’s production capacity, noting that until two years ago, it only manufactured 30 percent of the products it sold in the Kingdom.

“We closed 2024, whereby we are manufacturing 90 percent of what we sell in Saudi the total capacity of the factory,” he said.

“We do have a target in 2025 to have almost 25 to 30 percent of that production capacity going for the North American market because, I mean, our technology, the certifications we have, the type of transfer of technology is allowing us actually not only to serve the Saudi market, but the regional and the global market,” the CEO added.

Moving on to suppliers, Al-Shaikh justified the long-term plan that will potentially see them residing in the Kingdom.

“We are dealing with almost 400 suppliers in our manufacturing facilities. We use about 40,000 different parts to manufacture our finished products. Unfortunately, many of the suppliers are not residing in the Kingdom, and it’s actually a challenge for local manufacturers because when it comes to supply chain resilience, you’ve seen during Corona time, it was an issue. So, while you’re manufacturing the finished goods in Saudi, if your supply chain is not also surrounding you, then it becomes an issue,” he said.

“What we’re trying to do now in collaborations with different partners like the PIF and other companies is to localize and increase our localization targets year over year, whereby and attracting manufacturers of parts to be also near our facility or at least be in the Kingdom. So, the perfect condition is where you’re creating that integrated supply chain similar to the automotive industry where everyone is actually residing in one cluster,” the CEO added.

Al-Shaikh also tackled the outlook on the future of the building technologies and export market in Saudi Arabia.

“Now, with the development of AI and the machine learnings, the focus is shifting not only on the HVAC, on the hardware, but also shifting to on the IT and how you bridge the gap between the IT and the OT, the operational technologies and the information technologies. Because when we talk about net zero and the aim and the aspiration of countries and companies to reach that level, working on the hardware by itself will not allow you to achieve that net zero,” he said.

“So there has to be a linkage between the OT and the IT, and that’s what we’re trying to do in our manufacturing facility,” the CEO added.


IMF raises Saudi growth forecast to 3.5% for 2025, outstripping global average

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IMF raises Saudi growth forecast to 3.5% for 2025, outstripping global average

RIYADH: The International Monetary Fund has revised up its forecast for Saudi Arabia’s economic growth in 2025, raising it to 3.5 percent from the 3 percent projected in April.

In its concluding statement following an Article IV consultation, the IMF highlighted the pivotal role of Vision 2030 mega projects in sustaining the Kingdom’s economic momentum, noting its continued resilience amid lower oil prices and shifting international challenges.

The IMF projects Saudi economic growth will outpace the global average of 2.8 percent in 2025, as well as outstripping most of its Gulf peers.

“Robust domestic demand — including from government-led projects — will continue to drive growth despite heightened global uncertainty and a weakened commodity price outlook,” the IMF stated in its new report. 

The fund expected this momentum, supported by the scheduled phase-out of OPEC+ production cuts, to push growth even higher to 3.9 percent in 2026 before stabilizing around 3.3 percent in the medium term.

The Saudi Ministry of Finance welcomed the IMF’s concluding statement, highlighting its confirmation of “the strong resilience of the Saudi economy in the face of global economic shocks, supported by the expansion of non-oil sector activities, containment of inflation, and a historically low unemployment rate — all aligning with the objectives of Saudi Vision 2030.”

The ministry noted the IMF’s praise for the government’s efforts to enhance public finance sustainability and resilience to shocks, as well as its recognition that strong domestic demand continues to support economic growth despite global uncertainty, reflecting the Kingdom’s continued implementation of Vision 2030 projects.

Non-oil gross domestic product growth, a key indicator of diversification success, is projected to grow at 3.4 percent in 2025. 

While slightly lower than the 4.2 percent achieved in 2024, the IMF attributed this sustained performance to “continued implementation of Vision 2030 projects through public and private investment, as well as strong credit growth, which would help sustain domestic demand and mitigate the impact of lower oil prices.” 

Medium-term non-oil growth is expected to approach 4 percent by 2027 before stabilizing at 3.5 percent by 2030.

The IMF also noted positive developments in the labor market and inflation. The unemployment rate for Saudi nationals fell to a record low of 7 percent in 2024, surpassing the original Vision 2030 target.

Headline inflation, despite a small rise to 2.3 percent in April, remains contained. 

“Inflation would remain anchored around 2 percent, supported by a credible peg to the US dollar, domestic subsidies, and an elastic supply of expatriate labor,” the fund projected.

On fiscal policy, the IMF deemed the anticipated higher spending in 2025, leading to a deficit above budget targets, as “appropriate.”

“Given the upfront adjustment and ample fiscal buffers available, staff believes that additional spending restraint in 2025— triggered by lower-than-budgeted oil prices— is not necessary as it would make fiscal policy procyclical and exacerbate the impact on growth,” the statement added.

However, it emphasized the need for gradual fiscal consolidation over the medium term, recommending measures like non-oil revenue mobilization, removing energy subsidies, and rationalizing spending.

The IMF highlighted the banking sector’s resilience but cautioned about the risks associated with strong credit growth. “Addressing strong credit growth and associated funding pressures would help mitigate risks to systemic financial stability,” the report urged. 

It welcomed the Saudi Central Bank’s recent introduction of a countercyclical capital buffer and ongoing efforts to enhance regulatory frameworks.

The fund strongly emphasized the need for continued structural reforms. “The current environment of heightened uncertainty underscores the importance of continued structural reform efforts to sustain non-oil growth and economic diversification,” the statement concluded.

It added: “The reform momentum should continue irrespective of oil price developments.” 

This includes strengthening anti-corruption frameworks, enhancing human capital, improving access to finance, fostering digitalization, and deepening capital markets.


Closing Bell: Saudi main index rises to close at 11,068

Updated 1 min 2 sec ago
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Closing Bell: Saudi main index rises to close at 11,068

  • Parallel market Nomu gained 215.80 points to close at 27,053.10
  • MSCI Tadawul Index rose 11.41 points to close at 1,418.88

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 94.29 points, or 0.86 percent, to close at 11,068.27. 

The total trading turnover of the benchmark index was SR5.72 billion ($1.52 billion), as 206 of the stocks advanced and 40 retreated. 

The Kingdom’s parallel market Nomu gained 215.80 points, or 0.80 percent, to close at 27,053.10. This comes as 54 of the listed stocks advanced while 31 retreated. 

The MSCI Tadawul Index increased 11.41 points, or 0.81 percent, to close at 1,418.88. 

The best-performing stock of the day was Ades Holding Co., whose share price rose 6.97 percent to SR13.82. 

Other top performers included National Gypsum Co., whose share price increased 5.66 percent to SR22.40, as well as Zamil Industrial Investment Co., which rose 5.42 percent to SR42.80. 

Specialized Medical Co. recorded the most significant drop, falling 3.31 percent to SR23.36. 

Saudi Advanced Industries Co. also saw its stock price fall 2.55 percent to SR26.75. 

Al-Taiseer Group Talco Industrial Co.’s stock price declined 2.27 percent to SR43.10. 

Dar Al-Arkan Real Estate Development Co. has closed its 14th sukuk issuance, marking the tenth tranche under its USD-denominated Islamic Sukuk Program, with a total size of SR2.81 billion, the company said in a statement to Tadawul. 

The five-year sukuk, carrying an annual profit rate of 7.25 percent, was issued on June 25 and attracted strong demand from both regional and international investors. The order book reached SR10.8 billion, nearly four times oversubscribed, according to the bourse filing. 

The issuance comprised 3,750 sukuk units, each with a par value of $200,000.

Dar Al-Arkan appointed Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Alkhair Capital, Al Rayan Investment LLC, Arqaam Capital, Bank ABC, and Dubai Islamic Bank as joint lead managers for the transaction.

Also on the mandate were Emirates NBD Capital, First Abu Dhabi Bank, J.P. Morgan, as well as Mashreq, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank. 

Shares in Dar Al Arkan ended the session marginally lower, closing at SR19.22, down 0.10 percent. 

The Board of Directors of Sahara International Petrochemical Co., also known as Sipchem, has approved SR362 million in cash dividends for the first half of 2025, according to a statement published on Tadawul. 

The payout applies to 752 million eligible shares, translating to a dividend of SR0.50 per share, or 5 percent of the share’s par value. 

Shares in Sipchem closed the session higher at SR19.06, gaining 4.24 percent. 


Najran region’s business registrations jump 56% amid Saudi investment push

Updated 58 min 29 sec ago
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Najran region’s business registrations jump 56% amid Saudi investment push

RIYADH: Saudi Arabia’s Najran region has recorded a 56 percent increase in commercial registrations over the past five years, signaling expanding economic activity and growth potential in the southern province.

According to government data presented at the Najran Investment Forum 2025, business licenses in the region reached 39,000, accounting for around 2.3 percent of the Kingdom’s 1.7 million total records.

The forum, held from June 25 to 26 under the patronage of Prince Jalawi bin Abdulaziz bin Musaed, brought together government officials and private sector leaders to highlight economic prospects in the region. According to organizers, the event featured 53 project opportunities valued at over SR639 million ($170 million).

The southern province is emerging as a regional development hub under Vision 2030. With its mineral wealth, fertile land, cultural heritage, and growing logistics capabilities, it is positioned as a gateway for trade and business in line with the Kingdom’s economic diversification goals.

Speaking during the forum’s opening session, Assistant Minister of Commerce Abdulaziz bin Saud Al-Duhaim said: “Najran is an important region that abounds with diverse investment opportunities, based on its geographical location, natural resources, and competitive sectors such as agriculture, mining, manufacturing industries, tourism, and others.”

He added: “We have reviewed and developed more than 110 pieces of legislation over the past few years, most notably regulations on companies, franchises, e-commerce, bankruptcy, commercial registration, trade names, and others.”

The region’s light transport sector saw the largest increase in new registrations, up 124 percent year on year in the first quarter to 536. The logistics sector followed with 111 percent growth, totaling 345 records. Registrations in civil protection equipment installation and maintenance rose by 26 percent, while storage facilities climbed 31 percent, reaching 717 records.

During his participation in the forum, Al-Duhaim also emphasized that the Ministry of Commerce has strengthened market regulations to protect consumers, monitor prices, and combat fraud and commercial cover-ups.

“We are working on a comprehensive consumer protection system, established a reporting center and a summons center, and launched the ‘Emtithal’ electronic inspection and monitoring system,” he said.

The assistant minister also noted that the National Competitiveness Center has worked with more than 65 government agencies, in partnership with the private sector, to implement over 900 economic reforms and recommendations aimed at enhancing business competitiveness. 

He added that 21 branches of the Saudi Business Center have been established to facilitate business start-ups and operations.

“The Ministry is working to develop and implement comprehensive strategies for the wholesale, retail, and professional services sectors, and to develop the services sector by leveraging new technologies,” Al-Duhaim said.

During the event, 14 cooperation agreements were signed between the Najran Chamber and various public and private entities to support local initiatives and business development.

Abdullah bin Ali bin Mohammed Al-Ahmari, assistant minister of industry and mineral resources for planning and development, who also participated in the event, noted that Najran is one of the richest regions in mineral resources, with the estimated value of untapped reserves rising from SR145 billion to more than SR227 billion.

He also emphasized the importance of developing mining-related manufacturing industries to maximize added value and boost exports.

In the same context, Abdullah Al-Dubaikhi, assistant minister of investment, discussed the province’s competitive advantages, noting that the area offers promising opportunities in mining, specialized agriculture, tourism, and education — sectors that require coordinated efforts among relevant authorities to unlock their full potential.

He noted that total projects registered on the Invest in Saudi Arabia platform for the region amounted to approximately SR8 billion.

The forum aimed to showcase the area’s economic potential, attract quality investments, and provide an effective platform for engagement between local and international investors and government agencies.

“The ministry has been committed to addressing all challenges facing the business sector by developing legislation, facilitating procedures, and expanding financing programs and solutions that empower entrepreneurship and commercial establishments,” Al-Duhaim added. 


Saudi Arabia to see 700% surge in millionaire inflows in 2025: Henley & Partners 

Updated 26 June 2025
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Saudi Arabia to see 700% surge in millionaire inflows in 2025: Henley & Partners 

  • UAE continues to lead globally, forecast to attract 9,800 millionaires this year,
  • Report predicts unprecedented 142,000 millionaires across the world expected to relocate in 2025

RIYADH: Saudi Arabia is projected to attract 2,400 high-net-worth individuals in 2025, marking a sharp increase from the 300 millionaires estimated to have relocated to the Kingdom in 2024. 

This eightfold rise positions Saudi Arabia as the fastest climber in the Henley Private Wealth Migration Report 2025, published by Henley & Partners in collaboration with New World Wealth. 

Across the Gulf, the UAE continues to lead globally, forecast to attract 9,800 millionaires this year, the highest net inflow worldwide, followed by the US with 7,500. 

HNWIs are relocating to the Kingdom due to its ambitious Vision 2030 agenda, pro-business reforms, and growing investment opportunities. The surge in inbound wealth reflects the region’s growing appeal to both returning nationals and international investors, particularly in Riyadh and Jeddah. 

Saudi Arabia has also introduced attractive residency programs, tax incentives, and a push to diversify the economy beyond oil. 

Switzerland is projected to gain 3,000 millionaires, while Italy is set to receive 3,600. File/Reuters

Juerg Steffen, CEO of Henley & Partners said that 2025 marks a “pivotal moment” for global wealth migration, adding: “It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere.”

Mega projects like NEOM, improved infrastructure, and a focus on tourism and fintech are drawing international interest. 

Additionally, the Kingdom offers political stability, regional influence, and a strategic location, making it an increasingly attractive destination for global wealth. 

Henley & Partner’s report aligns with a recent study by consulting firm Capgemini, which highlighted the Middle East’s growing appeal to next-generation high-net-worth individuals, citing geopolitical security and economic stability as key drivers of investment interest in the region. 

The analysis, published earlier in June, pointed specifically to Saudi Arabia’s aggressive efforts to attract global wealth through its economic diversification strategies, positioning the Kingdom as a rising center for international capital. 

Capgemini also noted that the UAE is capitalizing on the same trend, with both Gulf economies drawing increased interest from global investors seeking high-growth markets and stable financial environments. 

UK biggest loser amid global shift

Henley & Partner’s recent report predicts that an unprecedented 142,000 millionaires across the world are expected to relocate in 2025. 

While Gulf countries and select European destinations see rising inflows, several traditional wealth hubs are witnessing record outflows. 

The UK is forecast to lose 16,500 high-net-worth individuals, the highest on record, more than doubling China’s projected outflow of 7,800. 

This reversal comes after years of the UK being a net destination for wealth, with recent tax reforms — including increases to capital gains and inheritance taxes and tighter regulations on non-domiciled residents — prompting an accelerated departure. 

The UK is forecast to lose 16,500 high-net-worth individuals, the highest on record. Getty

“Since 2014, the number of resident millionaires in the UK dropped by 9 percent compared with the W10’s global average growth of 40 percent,” said Trevor Williams, chair and co-founder at FXGuard, a digital foreign exchange risk manager, according to the report. 

The shift is part of a broader trend in Europe, where France, Spain, and Germany are also expected to experience net outflows of wealthy individuals. 

In contrast, Southern Europe is emerging as a new hub for global wealth. 

Switzerland is projected to gain 3,000 millionaires, while Italy is set to receive 3,600.

Portugal and Greece are expected to receive 1,400 and 1,200, respectively. 

Smaller markets such as Malta, Montenegro, and Latvia are also benefiting from favorable tax regimes and investment migration programs. 

Beyond Europe, Thailand and Japan are increasingly preferred by wealthy individuals in Asia. 

Thailand is forecast to gain 450 millionaires, and Japan 600, driven by political stability and high-end real estate.

Hong Kong is also showing signs of recovery, with inflows from mainland Chinese executives linked to the region’s growing tech sector. However, South Korea is set to see a significant outflow of 2,400 millionaires, reflecting broader economic and political uncertainty. 

Hong Kong is also showing signs of recovery, with inflows from mainland Chinese executives linked to the region’s growing tech sector. File/Reuters

Other countries in Asia and the Middle East, including Vietnam, Pakistan, Iran, and Lebanon, are expected to see continued outflows of wealthy individuals, many relocating to the UAE or the US. 

Misha Glenny, rector at the Institute for Human Sciences in Vienna, said recent geopolitical developments, including tensions in the Middle East, are contributing to a reshuffling of wealth migration patterns, according to the report. 

In the Americas, Central American and Caribbean jurisdictions such as Costa Rica, Panama, and the Cayman Islands are expected to attract record numbers of high-net-worth individuals. 

Despite a lower-than-usual forecast for inflows, the US remains a top destination for relocating millionaires. 

Parag Khanna, founder and CEO of AlphaGeo, an AI-powered predictive analytics platform for investing, noted the ongoing role of Asia in shaping global wealth trends. 

“Asia’s wealth landscape is a dynamic blend of ambition and caution. Singapore and Japan are solidifying their reputations as global wealth havens, while China and India are balancing domestic opportunity with the desire for diversification,” Khanna was quoted as saying in the report.


Gulf shares rise as Iran-Israel ceasefire holds

Updated 26 June 2025
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Gulf shares rise as Iran-Israel ceasefire holds

  • Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2%
  • Abu Dhabi benchmark index rose 0.4%

LONDON: Stock markets in the Gulf rose in early trade on Thursday, extending gains from the previous sessions amid rising oil prices as a ceasefire between Israel and Iran appeared to be holding.

US President Donald Trump hailed the swift end to the air war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.

Saudi Arabia’s benchmark stock index extended its gains to a fourth straight session, rising 0.2 percent, with most sectors in the green. Oil major Saudi Aramco added 0.3 percent and Red Sea International climbed 3 percent.

Modular house manufacturer Red Sea said on Wednesday it planned to float its mechanical, electrical and plumbing subsidiary on the Saudi market.

Oil prices, a catalyst for the Gulf’s financial markets, were up 0.2 percent as a larger-than-expected draw in US crude stocks signalled firm demand. Brent crude was trading at $67.83 a barrel by 10:05 a.m. Saudi time.

The Abu Dhabi benchmark index rose 0.4 percent, aided by a 5.3 percent advance in RAK Properties and a 0.6 percent gain in Borouge.

Petrochemical company Borouge said on Wednesday it would collaborate with Honeywell on a project to deliver the petrochemical industry’s first AI-driven control room.

Dubai’s benchmark stock index was up for a fifth straight session, advancing 0.6 percent, pushed up by the materials, industry and finance sectors.

Tolls operator Salik gained 1.8 percent and Emirates NBD, the emirate’s largest lender, added 0.6 percent.

The Qatari benchmark index was marginally up, propped up by gains in the materials, utilities and communications sectors.

Vodafone Qatar advanced 1.2 percent while Qatar National Bank, the region’s largest lender, shed 0.3 percent.

Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state’s stock market, QIA said on Wednesday.