Saudi-Jordan trade grows 29% over 6 years

Jordan’s key exports include pharmaceutical products, live animals, fresh and processed fruits and vegetables. Reuters/File
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Updated 24 February 2025
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Saudi-Jordan trade grows 29% over 6 years

RIYADH: Trade between Jordan and Saudi Arabia has increased, reaching $29.7 billion from 2018 to 2024, according to the Amman Chamber of Commerce.

In 2018, the total trade volume stood at 2.89 billion Jordanian dinars ($4.07 billion). By the first 11 months of 2024, trade grew to 3.74 billion dinars.

Jordan’s imports have fluctuated over the years, while exports nearly doubled, rising from 503.7 million dinars in 2018 to a record 1.04 billion dinars in 2024. In 2019, imports totaled 2.27 billion dinars, with exports climbing to 548.9 million dinars.

The global pandemic caused a dip in 2020, with imports dropping to 1.52 billion dinars, while exports remained relatively stable at 576.2 million dinars.

The rebound began in 2021, with imports rising to 2.28 billion dinars and exports growing to 733.4 million dinars.

In 2022, trade reached its peak, with imports hitting 2.93 billion dinars and exports increasing to 840.3 million dinars. In 2023, imports fell slightly to 2.58 billion dinars, but exports grew to 983.7 million dinars.

By the end of November 2024, imports from Saudi Arabia stood at 2.7 billion dinars, while exports hit the highest level in seven years at 1.04 billion dinars.

Between 2018 and 2024, Jordan’s cumulative trade with Saudi Arabia totaled 21.1 billion dinars, comprising 17.6 billion dinars in imports and 5.5 billion dinars in exports.

Saudi Arabia primarily exports mineral products, such as petroleum oils, as well as chemicals and food products, including sugar. Jordan’s key exports include pharmaceutical products, live animals (notably sheep), fresh and processed fruits and vegetables, and iron-based goods.

Saudi Arabia is a crucial energy supplier to Jordan, which relies on imports to meet its domestic needs. In turn, Saudi Arabia imports essential goods from Jordan, including pharmaceuticals, agricultural products, and live animals.

According to the International Trade Centre’s Export Potential Map, Jordan has an untapped export potential to Saudi Arabia of 43 percent, with live sheep leading the way, representing a $206 million export gap.

Other potential exports include bromides and bromine oxides ($39 million) and antibiotic pharmaceuticals ($8 million), signaling opportunities for Jordan to expand its pharmaceutical exports to Saudi Arabia.

In an effort to strengthen bilateral ties, the Amman Chamber of Commerce will host the Jordan-Saudi Business Forum on Feb. 24 in collaboration with the Federation of Saudi Chambers and the Saudi Export Development Authority. The forum aims to foster new business partnerships and explore opportunities across various sectors.

Additionally, the Saudi-Jordanian Business Council will meet on the same day to further enhance trade and investment relations.

The Jordanian side of the council is led by Khalil Tawfiq, president of the Amman Chamber of Commerce, while the Saudi side is chaired by Hamdan Al-Samreen, president of the Al-Jouf Chamber of Commerce. Government investment ministries will also participate in the discussions.


Eric Trump confirms commencement of pre-construction works on Jeddah Tower

Updated 5 sec ago
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Eric Trump confirms commencement of pre-construction works on Jeddah Tower

RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.

Set to rise 47 floors along the Red Sea coast, the high-rise is being developed by London-listed Dar Global in partnership with the Trump Organization.

The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”

“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started. We’ve got all the plans and we just started the pre-construction works,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.

He added: “This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”

The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.

Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”

Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.

The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.

Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”

He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”


Closing Bell: Saudi main index closes in red at 11,671 

Updated 30 April 2025
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Closing Bell: Saudi main index closes in red at 11,671 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 74.62 points, or 0.64 percent, to close at 11,671.58. 

The total trading turnover of the benchmark index was SR6.94 billion ($1.85 billion), as 47 stocks advanced, while 201 retreated. 

The MSCI Tadawul Index decreased by 4.89 points, or 0.33 percent, to close at 1,488.88. 

The Kingdom’s parallel market Nomu dipped, losing 54.20 points, or 0.19 percent, to close at 28,277.17. This came as 24 stocks rose, while 49 fell.

The best-performing stock on the main index was Jamjoom Pharmaceuticals Factory Co., with its share price surging by 9.91 percent to SR173. 

In the first quarter of 2025, the company’s net profit rose 204.26 percent quarter-on-quarter to SR157.03 million, according to a filing on the stock exchange. The group attributed the increase to higher sales and more efficient absorption of operating expenses, resulting in strong operating leverage. 

MBC Group Co. recorded the day’s steepest decline, with its share price slipping 4.42 percent to SR41.10. 

Advanced Petrochemical Co. announced its interim financial results for the first three months of the year, reporting a net profit of SR72 million — a 224.1 percent increase from the same quarter last year. 

Americana Restaurants International PLC also announced its financial results for the same period, with its net profit reaching SR122.4 million in what is an annual increase of 16.5 percent.

Similarly, the company’s total comprehensive income saw a surge of 44.5 percent to SR128.13 million. Its share price traded 3.04 percent higher on the main market to reach SR2.32. 

Modern Mills for Food Products Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR65.6 million, a 29.2 percent surge compared to the previous quarter. 

The company attributed the increase to higher gross margin, operational efficiencies and lower finance cost. 

Modern Mills for Food Products Co.’s share price traded 0.26 percent higher on the main market to reach SR39. 

Banque Saudi Fransi has launched the offering of US dollar-denominated additional Tier 1 capital notes as part of its international issuance program, the bank said in a bourse filing. 

The offering, conducted under its Additional Tier 1 Capital Note Programme, targets eligible investors in Saudi Arabia and internationally, the statement added. 

The subscription period is scheduled to begin on April 30 and end on May 1, with a minimum subscription set at $200,000 and increments of $1,000 thereafter. 

The value, pricing, and yield of the perpetual instruments — which are callable after six years — will be determined based on prevailing market conditions. 


Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties

Updated 30 April 2025
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Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties

JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances. 

The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation. 

The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016. 

They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom’s real estate sector, which has seen mounting pressure in key cities such as Riyadh. 

The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030.

In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: “The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent.”

The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas. 

It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market.

These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations.

The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases.

The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development.

According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties.

Speaking to Al-Ekhbariya, Saif Al-Suwailem, spokesperson for the Ministry of Housing, said that the executive regulations for vacant property fees will outline the implementation mechanism.

The official added: “The amendments to the White Land Tax will enhance land use efficiency and stimulate the development of residential projects,” Al-Ekhbariya reported.

Moreover, he emphasized that amending the fees will have a clear and effective impact on enhancing supply and achieving real estate balance, noting that the system was completed in half the time.

The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability. 

A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh.

The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.


Saudi banks weathering external debt surge amid Vision 2030 push: S&P report

Updated 30 April 2025
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Saudi banks weathering external debt surge amid Vision 2030 push: S&P report

RIYADH: Saudi Arabia’s banking sector is set to absorb a rise in external debt, driven by increasing financing demands under the Kingdom’s Vision 2030 agenda, according to a new report.

The analysis by S&P Global Ratings revealed that despite a marked increase in external liabilities over the past three years, Saudi banks remain in a strong position to manage associated risks.

The uptick in debt is primarily linked to short-term instruments, such as interbank and non-resident deposits, as well as bond issuances on international capital markets.

In 2024, Saudi banks extended loans worth SR371.8 billion ($100 billion), while deposits grew by only SR218.9 billion, creating a funding gap of SR152.9 billion to be refinanced.

S&P estimates that by the end of 2028, net external debt will account for only 4.1 percent of total lending, a manageable level by industry standards.

“More recently, banks have increasingly tapped international capital markets for funding as local sources proved insufficient to meet the country’s ambitious requirements, as set out in the state’s Saudi Vision 2030 development program, and the expected growth in corporate financing requirements,” the study stated.

The Kingdom’s lenders, which until recently maintained a net external asset position, posted a net external debt of SR34 billion by the end of 2024. S&P expects foreign liabilities to almost double over the next three years.

Saudi banks’ external funding remains heavily skewed toward interbank deposits and repurchase agreements, accounting for 55 percent of the increase in gross external debt last year.

Notably, 59 percent of all external debt in 2024 was owed to foreign banks, raising concerns over volatility, given the short-term nature of such funding.

Despite this, the report noted that nearly half of these foreign deposits originate from within the Gulf Cooperation Council, where banking systems are flush with liquidity.

This regional funding base, coupled with Saudi Arabia’s proven record of state support, is expected to cushion any potential shocks.

“We view Saudi authorities as highly supportive of the banking system and expect extraordinary support will be forthcoming should the need arise,” the analysis stated.

The agency also dismissed direct comparisons with Qatar, whose banking sector experienced a sharp rise in external debt during its infrastructure build-up for the 2022 FIFA World Cup.

At its peak, Qatar’s net banking external debt reached 40.6 percent of domestic loans at the end of 2021.

As of end-2024, Saudi banks held gross external debt of $109.5 billion, nearly “quadruple” its $29.5 billion at the end of 2018.

Yet the country’s total banking assets are almost double those of Qatar, helping to absorb the increase in debt.

In parallel with external funding, Saudi banks are exploring ways to unlock balance sheet capacity through mortgage asset sales.

The Saudi Real Estate Refinance Co. had acquired SR28.8 billion in home loans by the end of 2024, while discussions around mortgage-backed securities remain ongoing.

Despite holding mortgage portfolios worth $180 billion, or 23 percent of total lending, banks have been cautious about divestment.

Factors include favorable profitability, past losses due to higher interest rates, and investor hesitation around default recovery mechanisms in the Kingdom.

However, S&P predicts that a local market for residential mortgage-backed securities will gradually emerge, supporting further liquidity creation.

The report concludes that while external debt will continue to grow in the short term, Saudi banks retain ample headroom to navigate the risks, thanks to strong fundamentals, sovereign backing, and a measured approach to financial innovation.


Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

Updated 30 April 2025
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Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

RIYADH: Saudi Arabia’s minister of industry and mineral resources has urged Kuwaiti investors to seize untapped opportunities in the Kingdom’s mining sector.

The encouragement was given during Bandar Alkhorayef’s meeting on April 30 with a group of Kuwaiti businessmen at a gathering organized by the Saudi Embassy as part of the minister’s official visit to the Gulf country. 

The trip was designed to strengthen economic ties, enhance cooperation in the industrial and mining sectors, and attract high-quality investments to the Kingdom, according to a statement.

During his meeting with the investors, the minister highlighted the crucial contribution of the industrial and mining sectors to the Kingdom’s economic diversification, aligning with Saudi Vision 2030’s aim to establish the country as a global industrial leader and a key hub for mineral production and processing.

This aligns with developments across the Saudi mining sector in order to maximize its impact on the national economy and exploit mineral resources, estimated at more than SR9.3 trillion ($2.47 trillion), Alkhorayef noted.

“He pointed out that the National Industrial Strategy focuses on developing and localizing 12 vital industrial sectors, most notably food, pharmaceuticals, automotive, and aviation, as these sectors provide promising investment opportunities for local and international investors,” the newly released ministry statement said.

“His Excellency pointed out the Kingdom’s endeavor to enable industrial transformation by adopting the latest manufacturing technologies, including applications of the Fourth Industrial Revolution, developing digital infrastructure in the industrial sector, and developing human capabilities and qualifying them to deal with advanced technologies,” it added.

During the meeting, Alkhorayef highlighted the Kingdom’s launch of the Factories of the Future program, which aims to automate industrial facilities and transform them into smart factories.

The minister also indicated that the General Geological Survey Program for Mining Exploration currently covers 60 percent of the Arabian Shield region and that the sector offers promising investment opportunities in all stages of mining.

He highlighted Saudi Arabia’s strategic advantages that position it as a prime global investment hub, such as its location connecting three continents, advanced infrastructure, and abundant natural resources, as well as varied energy options and streamlined government processes and licensing.

Toward the end of the meeting, Alkhorayef encouraged Kuwaiti companies and investors to explore the distinctive opportunities in the Kingdom’s industrial and mining sectors, emphasizing the nation’s supportive capabilities and incentives designed to facilitate and enhance the investor experience.

Saudi Arabia, Kuwait to bolster collaboration in oil, commerce, industry

Bandar Alkhorayef meeting with Minister of Oil Tariq Sulaiman Al-Roumi. X/@BAlkhorayef

During his official visit to Kuwait, Alkhorayef also held bilateral meetings with the Minister of Commerce and Industry Khalifa Abdullah Al-Ajeel and the Minister of Oil Tariq Sulaiman Al-Roumi.

During the meeting with Al-Ajeel, the Saudi minister praised the longstanding and robust ties between the Kingdom and Kuwait, emphasizing that these historical relations serve as a solid foundation for strategic economic partnerships, particularly in the industrial sector.

The discussion also emphasized the need to bolster industrial integration between the two sides in order to advance sustainable industrial development and promote economic diversification in both nations.

The meeting with Sulaiman saw the crucial role of the crude oil sector highlighted as a key driver of development in both countries. It also explored strategic opportunities to expand collaboration in the petrochemical industry and discussed ways to increase trade exchange and direct joint investments toward emerging, high-potential sectors.

In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event in January, Alkhorayef said that Saudi Arabia is taking a flexible approach to distributing its SR10 billion standardized incentive program — which provides financial support to industrial projects — to maximize its impact.

At the time, the minister said the program is designed to align with investor demand and deliver optimal returns.