PARIS: Twenty years after opening for business, Channel Tunnel operator Eurotunnel finally sees a strong and profitable future, supported by record passenger traffic and a growing freight business.
The company, twice forced to refinance after construction cost overruns and over-optimistic traffic forecasts, said it benefited from a recovering British economy last year and saw solid trading in February. It also expects to pay corporation tax for the first time next year.
CEO Jacques Gounon, who took the helm in 2007, said shareholders could expect a further dividend rise this year and next, after a 25 percent hike to 15 cents a share for 2013 announced on Thursday.
“For the first time in Eurotunnel’s troubled history, we consider the group’s situation is very satisfactory and we are confident in the future,” Gounon said.
The tunnel linking France to Britain carries the Eurostar high-speed train from Paris and Brussels to London and shuttle trains conveying passenger cars, coaches and freight trucks.
The 50.5 km link, which took nearly six years to build and cost 9 billion pounds ($14.94 billion) as well as the lives of several workers, was inaugurated by Queen Elizabeth and French President Francois Mitterrand on May 6, 1994.
It was built without taxpayers’ money on the insistence of former British Prime Minister Margaret Thatcher, leaving shareholders — many of them private individuals who were encouraged to invest, and bondholder banks, to bear the brunt of its unfolding financial troubles.
The project’s costs were nearly double those initially estimated. Revenue projections proved overly optimistic, shuttles broke down and a fire in the tunnel wreaked havoc in November 1996.
Eurotunnel’s debt pile brought it to the verge of bankruptcy in 1996 and then again in 2006, and after a long legal battle, bondholder banks forgave billions of euros of debt.
In 2013, an all-time high of over 10 million passengers took the Eurostar, while Eurotunnel’s shuttle services carried 2.5 million passenger vehicles and 1.4 million trucks. Eurotunnel’s revenue rose 12 percent to 1.1 billion euros, driven by a 16 percent jump in revenue at its rail freight unit Europorte.
“It’s obvious we are seeing an economic recovery in Britain that is actually very strong,” Gounon said.
He noted a growing number of Britons — who represent two thirds of the Tunnel’s users — were driving their cars onto its shuttles to go to continental Europe, but said that in France, consumer confidence was still grim.
“The Brits are in need of a bit of fun” and eager to turn the page of austerity, he said. “But the French are feeling down in the dumps.”
Earnings before interest, tax, depreciation and amortization (EBITDA) reached 449 million euros and Eurotunnel is aiming for 460 million euros this year and over 500 million in 2015.
Earnings however, came below market forecasts of 482 million euros for this year and 521 million in 2015 in a Reuters poll. Analysts found the guidance disappointing, and Eurotunnel shares were down more than 3 percent having risen 34 percent in the last 12 months.
Gounon said the guidance factored in a continuation of the loss-making ferry service between Calais and Dover, MyFerryLink, a service whose future hangs in the balance pending the outcome of an inquiry by Britain’s Competition Commission. A preliminary finding on the case will be released at the end of next week, he said.
Gounon said Eurotunnel would create extra parking space at its terminals and buy three additional freight shuttles to absorb truck traffic, which he saw rising 3-4 percent annually.
Gounon also saw potential for 14.2 million Eurostar passengers by 2020 if new high-speed rail links were opened, for instance with Geneva in Switzerland.
Eurotunnel, whose concession runs until 2086, has already announced the Eurostar would connect London to Marseille in 2015 and London to Amsterdam in 2017. Germany’s rail operator Deutsche Bahn is set to start using the tunnel too from 2016.
Reuters reported earlier this month that the British government was considering selling its 40 percent stake in Eurostar.
Eurotunnel sees light at last after 2 dark decades
Eurotunnel sees light at last after 2 dark decades
Closing Bell: TASI rises 2.37% to close at 10,964
RIYADH: Saudi Arabia’s Tadawul All Share Index rose 254.04 points, or 2.37 percent, to close at 10,964.28 on Tuesday.
Total trading turnover reached SR8.48 billion ($2.26 billion), with 248 stocks posting gains and five declining.
The Kingdom’s parallel market Nomu also recorded an increase, gaining 492.72 points, or 1.87 percent, to settle at 26,850.79, as 73 stocks advanced and 22 retreated.
The MSCI Tadawul 30 Index, meanwhile, gained 29.06 points, or 2.11 percent, to finish at 1,406.69.
Red Sea International Co. was the best-performing stock of the session, with its share price rising 9.97 percent to SR42.45. Salama Cooperative Insurance Co. followed with a 9.92 percent increase to SR13.52.
Other gainers included Saudi Cable Co., which rose to a fresh year high on Tuesday, closing at SR147.20 with a 6.05 percent increase.
On the losing side, SABIC Agri-Nutrients Co. saw the steepest decline, falling 4.58 percent to SR104.2. Saudi Arabian Oil Co. dropped 1.62 percent to SR24.34, and Taleem REIT Fund declined 0.85 percent to SR9.30.
Dar Al Arkan Real Estate Development Co. announced its intention to issue a dollar-denominated, fixed-rate, Shariah-compliant sukuk under Regulation S, as it seeks to broaden its funding base and support general corporate purposes.
The Riyadh-based property developer has appointed a consortium of regional and international banks to act as joint lead managers and bookrunners for the issuance.
These include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Alkhair Capital, as well as Al Rayan Investment and Arqaam Capital. Other participants are Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, and First Abu Dhabi Bank.
The list also features J.P. Morgan, Mashreq, and Sharjah Islamic Bank, as well as Standard Chartered Bank, and Warba Bank.
The appointed banks will arrange a series of fixed income investor calls starting June 24, ahead of the planned sukuk offering in global capital markets.
The transaction remains subject to market conditions and regulatory approvals, including compliance with Financial Conduct Authority and International Capital Market Association stabilization rules.
The offering is classified as a benchmark senior unsecured sukuk under Regulation S, which allows for international placement with institutional investors. The value of the sukuk will be determined based on market conditions at the time of issuance.
According to the company’s statement on Tadawul, the proceeds from the issuance will be used for general corporate purposes. The board of directors approved the sukuk issuance on May 29.
Dar Al Arkan’s share price closed the session 2.70 percent higher to reach SR19.
Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
- OIA ranked 35th globally by assets under management among sovereign wealth funds
- Around 61.3% of its portfolio is invested locally
RIYADH: Oman’s sovereign wealth fund posted a record profit of 1.59 billion Omani rials ($4.1 billion) in 2024 and grew its assets above 20 billion rials, Global SWF reported.
The additional revenue enabled the Oman Investment Authority to transfer 800 million rials into the national budget, according to the report, providing a vital fiscal cushion and underscoring the fund’s expanding dual role as both an economic engine and a diplomatic asset.
Beyond headline profits, OIA is executing a strategic shift, prioritizing domestic investments to generate local value while forming global partnerships to secure future-ready capabilities in areas such as artificial intelligence, clean energy, logistics, and manufacturing.
Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly being viewed as a nimble but ambitious player.
According to Global SWF, its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming the fund into a networked sovereign investor with a growing international footprint.
At home, OIA’s economic impact is significant. Around 61.3 percent of its portfolio is invested locally, mainly through its National Development Fund, which exceeded its 2024 target by deploying 2.1 billion riyals in strategic projects, according to Global SWF.
These include infrastructure ventures such as the Duqm Refinery, new mining operations in Lasil and Al Baydha, and solar energy plants in Manah.
Over the past year, the fund has inked a $300 million joint investment platform with Algeria and expanded its Vietnam-Oman Investment Fund.
These investments signal a shift in Gulf sovereign wealth funds— from passive holdings to active, technology-driven deal-making aligned with national objectives.
In parallel, OIA has launched the Future Fund Oman with an allocation of $5.2 billion, targeting large-scale domestic projects, small and medium-sized enterprises, and startups, according to a separate May report by Global SWF.
In its first year, the fund approved over $2 billion in deals, with 75 percent of capital coming from foreign investors, underlining investor confidence in Oman’s diversification agenda.
Investing for Vision 2040
OIA’s 2024 performance also reflected its focus on human capital and job creation, with nearly 1,400 new roles generated and the Omanization rate across OIA-linked entities reaching 77.7 percent.
Through programs like Jadarah, Nomou, and Eidaad, the fund is aligning education, training, and employment with Vision 2040’s long-term growth objectives.
Meanwhile, the fund is moving from asset accumulation toward strategic exits. Since 2022, it has divested 19 assets, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF— raising over $2.5 billion, according to the release.
The October listing of 25 percent of OQ Exploration & Production marked Oman’s largest-ever IPO, signaling deepening liquidity in Muscat’s capital markets, according to the Global SWF May report.
OIA’s roadmap includes 30 more divestments through 2029 across sectors, including logistics, utilities, and aquaculture, aiming to crowd in private capital and raise governance standards. These IPOs are structural tools to deepen Oman’s market while supporting the transition to a knowledge-based economy.
Global investment, local value
Even as it expands abroad, OIA insists every foreign investment must deliver back home— whether in skills, supply chain resilience, or technology transfer. Recent deals illustrate this ethos.
In the US, OIA invested in Tidal Vision, a company developing climate-smart biopolymers. In Singapore, it joined a $100 million venture capital fund with Golden Gate Ventures and helped establish a Muscat-based venture office to incubate deep-tech startups.
In one of its most high-profile moves, OIA took a stake in Elon Musk’s xAI, joining fellow Gulf players like Saudi’s Kingdom Holding and Qatar Investment Authority.
The move links Omani capital to frontier technology while reinforcing the fund’s mandate to back high-potential sectors shaping the global economy.
The OIA’s operational discipline has not gone unnoticed. Since 2021, it has reduced its subsidiary debt by nearly $5.6 billion, standing at $23.92 billion as of the end of the third quarter of 2024. It also refused to issue any new government guarantees last year, according to Global SWF, boosting investor confidence. Ratings agency S&P cited OIA’s reforms and transparency in reaffirming Oman’s BBB- rating with a positive outlook.
Mawani names Al-Mazroua as new president
JEDDAH: Saudi Ports Authority has appointed Suliman bin Khalid Al-Mazroua as its new president, effective June 29, as part of its push to strengthen leadership and advance key strategic goals.
Al-Mazroua succeeds Mazen bin Ahmed Al-Turki, who had been serving as acting president and played a key role in several initiatives aimed at developing logistics zones and parks across the Kingdom.
Al-Turki’s most recent contribution included overseeing the signing of a series of new build-operate-transfer contracts valued at more than SR2.2 billion ($586.6 million) to develop multi-purpose cargo terminals at eight Saudi ports.
The appointment of Al-Mazroua, announced by Mawani’s board of directors, underscores the authority’s commitment to supporting the National Transport and Logistics Strategy and Saudi Vision 2030. Both initiatives aim to position the Kingdom as a global logistics hub and a leading industrial power.
In a post on his X account, Al-Mazroua expressed his appreciation for the board’s trust and pledged to further the authority’s strategic goals.
“I extend my sincere thanks and appreciation to His Excellency the Minister of Transport and Logistics Services and Chairman of the Board of the Saudi Ports Authority, Eng. Saleh bin Nasser Al-Jasser, as well as to their Excellencies and distinguished members of the board for this generous trust,” he said.
Al-Mazroua added: “I pray to God for success in serving our blessed country and fulfilling the aspirations of our visionary leadership. I am also very pleased to work alongside my colleagues at the Saudi Ports Authority.”
In a statement, the authority said that Al-Mazroua “affirmed his commitment to advancing Mawani’s strategic objectives and enhancing its performance in line with its development plans and transformation programs.”
Before assuming his new role, Al-Mazroua served as CEO of the National Industrial Development and Logistics Program, where he played a key role in driving economic diversification and enhancing infrastructure in key sectors, including industry, mining, energy, and logistics.
“He also played a key role in stimulating investment in these sectors with the aim of increasing their contribution to the Kingdom’s gross domestic product, promoting innovation, enhancing local content, and advancing the Fourth Industrial Revolution,” the statement added.
With more than two decades of professional experience, Al-Mazroua has held several senior leadership positions, including at Saudi Aramco from 2001 to 2017.
Over the years, he progressed from technical roles to executive leadership, contributing to the establishment of research and development centers, strengthening cybersecurity frameworks, and advancing health care sector initiatives.
He also worked at US-based Aruba Networks from November 2006 to July 2007 and previously served as a quality assurance engineer at California-based Caspian Networks.
In addition, Al-Mazroua led the National Transformation Program and the Delivery and Rapid Intervention Center, where he contributed to planning, monitoring, and accelerating the implementation of development initiatives in support of Vision 2030.
He is also a member of several boards, including the Center for the Fourth Industrial Revolution in Saudi Arabia and Marafiq Co.
Saudi Arabia, Bahrain launch 2nd phase of industrial integration
RIYADH: Saudi Arabia and Bahrain have launched the second phase of their industrial integration initiative, aiming to boost bilateral trade, investment, and cross-border supply chain cooperation.
Announced on the sidelines of the Saudi Industry Forum 2025 in Dhahran, Khalil Ibn Salamah, the Kingdom’s deputy minister for industrial affairs, emphasized that the new phase would build on prior successes between the two countries.
This comes amid strengthening economic ties between the countries, with the Saudi Arabia’s direct investments in Bahrain reaching SR35 billion ($9.33 billion) in 2023 — representing approximately 20 percent of total foreign investments — and 1,550 Saudi-registered companies operating in the country, as revealed by the Kingdom’s Minister of Investment, Khalid Al-Falih, during a business forum earlier this year.
In an official statement marking the latest announcement, the Saudi Ministry of Industry and Mineral Resources stated: “The second phase of industrial integration between the two countries focused on setting specific targets, including enhancing intra-trade in industrial goods, attracting industrial investments.”
It added that this will help “integration in the field of industrial infrastructure and supply chain integration,” as well as identifying a list of export opportunities for non-oil goods and facilitating procedures for exporters and investors.
The initiative is part of broader efforts under the Gulf Cooperation Council Economic Agreement, which aims to increase the industrial sector’s contribution to regional GDP and foster industrial coordination among member states “on an integrated basis,” according to the ministry.
The second phase builds on earlier efforts, including the Future Factories Program, which helped shift production in both countries from labor-intensive to advanced manufacturing, along with aligning policies to treat local products as national goods and streamline customs processes.
As part of the second-phase launch, Ibn Salamah inaugurated the Bahraini Investors Services Office in Dammam’s Third Industrial City. The event was attended by Bahrain’s Minister of Industry and Commerce, Abdullah bin Adel Fakhro.
“The office aims to attract quality industrial investments and provide all industrial investment services to investors,” the ministry noted.
Positioned strategically near Bahrain, approximately 130 km away, Dammam’s Third Industrial City offers a robust industrial ecosystem.
Spanning 48 million sq. meters, the site features extensive infrastructure including a modern road network, energy and water supply systems, and logistical connectivity through its proximity to King Fahd Port, King Fahd International Airport, and the dry port in the city of SPARK.
The Saudi Industry Forum also highlighted how the new office will offer a “package of services and enablers from the industrial and mining system to facilitate the journey of Bahraini investors,” further underscoring both countries’ commitment to deepening industrial and economic ties.
Petcare and snacking support Saudi consumer spending resilience: NielsenIQ
RIYADH: Consumer spending in Saudi Arabia remained resilient in the year to March, with outlays on low-cost goods rising 3.3 percent, according to a new report by NielsenIQ.
The analysis by the consumer intelligence company showed that spending on tech and durables also rose by 0.2 percent.
The findings are in line with data recently released by the Saudi Central Bank, which showed that Saudi consumer spending hit an all-time high in March, surging 17 percent to SR148 billion ($39.45 billion) — the highest monthly figure since May 2021 — before easing to SR113.9 billion in April.
The trend is further supported by the increased use of digital point-of-sale transactions and rising e-commerce activity through Mada card payments.
In NielsenIQ’s report, Andrey Dvoychenkov, general manager at the firm, credited the strategic visions and initiatives across the region for helping to drive continued economic momentum.
“We’re seeing strong growth in both premium and value segments, and a rapid evolution in retail channels — especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations,” Dvoychenkov added.
The report also revealed that in the UAE spending on so-called fast-moving consumer goods climbed 7 percent, while tech and durables outlays reached $5.3 billion — up 2 percent year on year.
Top product trends
In Saudi Arabia, category performance pointed to changing consumption priorities. Petcare saw the strongest growth at 10 percent, followed by snacking at 9 percent, while paper products and home care posted declines.
In the UAE’s fast-moving consumer goods growth was driven by higher spending on snacking, beverages, dairy, and frozen foods, with personal care up 6 percent.
Growth in tech and durables was led by smartphones, media tablets, vacuum cleaners, and headsets.
Retail formats are evolving, with traditional trade channels in the UAE posting 10 percent growth in fast-moving consumer goods — outpacing organized retail at 3.2 percent — while tech and durables growth remained evenly distributed across formats.
E-commerce continues to expand, accounting for 30 percent of sales of tech and durables and 11 percent of fast-moving consumer goods in the UAE — up from 9 percent a year ago.
In Saudi Arabia, tech and durables e-commerce sales rose 7.7 percent, and fast-moving consumer goods’ online share increased by 1.4 percentage points.
More choice for consumers
NielsenIQ’s latest report showed that Saudi Arabia is now home to over 10,500 active brands, up 5 percent year over year, and nearly 100,000 stock keeping units, or SKUs.
In the UAE, brand count rose 6 percent to 13,000, with SKUs reaching 130,000. In tech and durables, brand activity expanded 18 percent in the UAE and 21 percent in Saudi Arabia, with both markets seeing SKU growth of more than 50 percent.
Consumer spending is increasingly polarized between value and premium segments. Both Saudi Arabia and the UAE recorded double-digit growth in these areas within fast-moving consumer goods.
In tech and durables, value-focused categories grew 6 percent in Saudi Arabia and 3 percent in the UAE, underscoring a heightened sensitivity to price and increased availability of cost-effective options.
The NielsenIQ’s findings backup a 2024 joint report by UAE-based gifting marketplace Flowwow and partner marketing platform Admitad which showed that online order volumes rose by 9 percent in Saudi Arabia and 7 percent in the UAE, highlighting the foundational strength of digital consumer activity in both markets.
An analysis of over 6.8 million transactions across the Middle East and North Africa placed Saudi Arabia, the UAE, and Kuwait among the top contributors by gross merchandise value, reflecting high levels of consumer engagement and sustained investment in digital channels.
Consumer confidence high
Saudi Arabia’s growth aligns with continued positive readings in consumer sentiment. The May 2025 Primary Consumer Sentiment Index, released by Ipsos, recorded a score of 72.2, marginally down from 72.4 in April.
The Kingdom remains among the top-performing countries globally on key economic indicators, with 64 percent of respondents rating the current economy as strong.
Additionally, 40 percent said their personal financial situation is strong, and 77 percent felt more confident about their ability to invest in the future compared to six months ago.
Looking ahead, 84 percent expect their local economy to strengthen over the next six months, though confidence in job security has softened slightly, particularly among resident Arab and Asian expatriates.
The region’s growing economic appeal has intensified competition, particularly in the fast-moving consumer goods sector.
As economic growth in the Gulf continues to outpace the global average — 3 percent for Saudi Arabia and 4 percent for the UAE in 2025, compared to 3.2 percent globally — brands face a growing need to adapt strategies to navigate a digitally connected, value-conscious, and increasingly competitive consumer environment.
