RIYADH: Turkish construction giant Yuksel Insaat has won a SR2.29 billion ‘Riyadh Rapid Bus Transit System’ (BRT) project, which is part of the impressive King Abdulaziz Transport System plan.
Ar-Riyadh Development Authority (ADA) has awarded the contract to Yuksel, while the local Alinma Bank has extended SR872 million project financing facility to implement project.
Yuksel has received the letter of intent.
“The project mainly includes road rehabilitation schemes, construction of 21 pairs of Bus Rapid Transit System Stations, 2574 community bus stops and 7 pedestrian bridges in the Saudi capital city,” said Ahmet Halavuk, Yuksel’s general manager.
As is typical of the BRT systems, he said that the new line would allow rush-hour buses to travel in bus-only lanes specifically highway shoulder lanes with the aim of reducing traffic period and easing the time of commute.
Ahmet said that the BRT would be an efficient, high capacity, and cost effective transit solution that many global cities are using at the moment.
Through the utilization of exclusive lanes, off-board fare payment and platform level boarding; well-planned and delivered BRT systems with clean buses can provide metro-quality service at a fraction of the cost.
This will be generating enormous shift from private car to public transportation systems, explained Ahmet, who has taking keen interest in promoting Saudi-Turkish harmonious bilateral relations.
Arab News caught up with Ahmet to know more about new project, Yuksel’s other projects in Saudi Arabia and GCC countries as well as the company’s pioneering role in constructions of dams and implementation of key infrastructure projects across the length and breadth of the country.
Here are the excerpts
of the interview:
Q: Many congratulations for winning the SR2.29 billion prestigious BRT project from ADA. How confident you are to implement this project?
A: We are quite confident and we will complete and deliver it on time.
According to ENR (Engineering News Record) rankings, Turkish contractors has big share in the world in which Yüksel is also listed.
With high quality commitment capability and massive experience in the international construction market, we are always encouraging Turkish contractors to invest in Saudi Arabia considering its market stability and long term infrastructure and housing projects as well as we are also trying to increase our market share.
As being Saudi-Turkish contractor with our experience exceeding 30 years in the Saudi market, we play a key role in business between the two countries.
In fact, Yuksel name is well known with its quality and on time construction ability in the Saudi construction market.
Our strong name has an added value to help us on implementation of this prestigious project.
We have already mobilized workers and in fact the workers’ mobilization has been started before the project was even formally awarded to us. So we are committed to successfully execute this significant project.
Q: Yuksel has been playing a pioneering role in the construction sector of the Kingdom. On the other hand, your company and you in person have evinced keen interest to promote Saudi-Turkish ties. What is your perception about the relations between the two countries now?
A: Engineers are uniquely qualified to be managers and leaders, in large part because they understand systems-thinking so well.
Once you understand that organizations are simply systems of people, then you’ve got it made.
This is what I do with the company and with Saudi agencies.
Recently, the number of tourists visiting Turkey from Saudi Arabia recorded an increase by 30 percent.
I understand that once Saudis become fully aware of the historical and cultural beauties of Turkey as well as the hospitable nature of our people, the people-to-people interaction will grow by manifold.
In the meantime, we know that Saudi citizens are investing in Turkey mainly in real estate sector by having land and apartments in Istanbul, Bursa, Trabzon etc.
On the other hand, Saudi companies are also investing in agriculture and energy sectors in Turkey.
So, we believe that by knowing each other Saudi-Turkish relations will become much stronger.
Q: I would like to know the specifics of the BRT project, as it will change the landscape of the capital city. What is the strategy and how do you plan to handle this key project— the third phase of Riyadh Bus Rapid Transit System (BRT)?
A: Thank you. Yes, indeed it is a key project. With a manpower of more than 300 members at the initial stage, we aim to consolidate our position as the time progresses providing value based qualified services, because it is an important project for the city, which will end its traffic congestion and ensure smooth traffic in the capital and can attract more favorable economic impact for the city.
We are very much hopeful to finish it well on time.
The project, once implemented, will alleviate the sufferings of daily commuters.
Bus and Metro transport, which is connected to each other logistically as there is huge congestion on busy roads, will help to solve the traffic problems which will be compounder further with the consistent growth of Riyadh city.
We wish to complete the BRT project in the given period of time.
Q: What is the time frame to complete the BRT project ? Don’t you think it is very short time, keeping in view the value, the scope of work and the technical skills required for the project?
A: It is 24 months’ period and Insha’Allah we will finish this task for this premium transport system for Riyadh city on time.
We are planning to add 4,500 employees in addition to available 3,500 work force of the company to complete the ambitious transport plan on time.
Q: Besides this BRT system, are there some other projects currently being executed by Yuksel?
A: Yes, there are flyover and bridge projects for smooth traffic system and the progress has reached about 50 percent.
It will be completed by May 2016,
which is also on time.
Moreover, we have one pipeline project for the Ministry of Water valued at SR610 million and an infrastructure project for Dammam University, which is worth SR350 million.
We are also executing infrastructure project in King Faisal University which is worth SR245 million.
We also have four renovation projects for hospital development, including in Al-Kharj and Al-Ahsa worth around SR430 million.
Furthermore, we have almost completed SR220 million desalination plants in the Kingdom and a major SR550 million project to develop King Khalid Air Base with an American company.
This is in addition to the ongoing SR630 million project of Riyadh governorate.
Q: In all, how many projects Yuksel has so far implemented in Saudi Arabia? What will be the cumulative value of all these projects?
A: The number of projects we have finished so far is 39 worth SR8.12 billion.
We are eyeing more projects in Saudi market and the Gulf market at the moment.
We started working in the Kingdom way back in 1983.
In fact, our technical capabilities, our on-time performance, our manpower strength and eventually delivery of projects in stipulated timeframe have impressed our valuable clients not only in Saudi Arabia, rather across the globe.
Q: Is Yuksel working to cut reliance on foreign workers and provide more employment to Saudis? How far you are following the Nitaqat program guidelines?
A: Yuksel is probably one of the few companies enjoying platinum level of acceptance as per Nitaqat guidelines.
We rank highest in terms of Saudization.
We will be hiring about 400 Saudi nationals for the BRT project alone.
We are working with more focus on Saudization program and at the core of it is our training of the Saudi youth and employing them as per Nitaqat guidelines.
Our motto is expansion in the Kingdom within the framework and the guidelines of the Saudization program including inclusive growth for citizens of this country.
We have made professional arrangements to fulfill this aspiration.
We have issued necessary instructions to our HR department to recruit suitable Saudi youth as per the norms.
Q: Besides Saudi Arabia, is Yuksel also working in other GCC countries? Which are the major projects, you have undertaken in those countries?
A: Yes, We are also working in other GCC countries on several projects including AED795 million infrastructure development projects in Abu Dhabi as well as highway and metro projects in Qatar and Oman.
In Qatar, we are executing a part of Doha metro worth QR2.38 billion and construction of a part of Lusail development project worth QR1.67 billion.
In Oman, we have started two road projects worth $220.8 million and negotiating on third project. So we have our presence in all the GCC countries.
We are also looking at some projects in Bahrain at the moment.
Q: As a major Turkish company, what kind of projects you are currently doing in Turkey and in adjoining countries?
A: In fact, Yuksel has been a market leader in terms of building dams, marine structures, transport systems and executing industrial projects across the globe including Turkey.
Recently, Yuksel signed contract concerning the construction of TANAP (Trans-Anatolia Natural Gas Pipeline Project), one of the largest energy infrastructure projects in Turkey.
The second of the first three packages of the tender for the pipeline to carry Azerbaijani natural gas to Turkey will be carried out by a consortium comprising Sicim (Italy), Yuksel (Turkey) and Akkord (Azerbaijan).
The scope of the $540 million contract covers the construction of a 450 km-long pipeline 56 inches in diameter.
The project is planned to be completed in 36 months. Starting at the Georgian border and running through Turkey transversely on an east-west axis, the TANAP will be connected to the TAP (Trans Adriatic Pipeline) on the Greek border.
Around 1,900 km in length, this pipeline is the largest-scale pipeline project of Turkey.
The first gas flow through the TANAP will take place in 2018.The aim is to gradually increase the annual capacity from 16 billion m3 in 2020 gradually to 23 billion and 31 billion m3 by 2026.
Q: Can you please brief me on your CSR part? Has Yuksel tied up with some charitable or social organizations to do community works?
A: As the Corporate Social Responsibility or CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others, we too are equally engaged in such activities.
We are also closely working with Turkish embassy on such initiatives as and when needed.
Like when there was a typhoon in Philippines, we have responded with some help to the devastated section.
Moreover, we wholeheartedly contributed during the series of quakes that devastated lives and properties in Nepal.
We are also participating with some charitable organizations and donate handsomely.
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Saudi Arabia boosts R&D spending to $6bn in 2023 amid Vision 2030 push
RIYADH: Saudi Arabia ramped up its research and development spending to SR22.61 billion ($6.02 billion) in 2023, marking a 17.4 percent increase from the previous year, according to official data.
The General Authority for Statistics reported a rise in R&D personnel, with the workforce reaching 49,337 by the end of 2023, up 12.2 percent year on year. Researchers accounted for 36,832 of this figure, representing a 22.1 percent annual growth.
The Kingdom is prioritizing R&D across sectors like energy, technology, and sustainability as part of its Vision 2030 strategy to diversify its oil-dependent economy.
“The percentage distribution of employees in the field of R&D at the level of different sectors indicates that the number of employees in higher education reached 37,540 employees, representing 76.1 percent, followed by the private sector, with 8,810 employees, at 17.9 percent, then the government sector, with 2,987 employees. at 6.1 percent,” GASTAT noted.
The authority also revealed that Saudi Arabia had 32,209 researchers in higher education by the end of 2023. The private and government sectors employed 2,790 and 1,883 researchers, respectively.
In terms of funding, the government sector accounted for the largest share of R&D spending at SR12.12 billion in 2023, representing 53.6 percent of the total. The private sector contributed SR9.31 billion, while the higher education sector received SR1.17 billion.
When it comes to expenditure, the private sector led with SR8.70 billion spent on R&D, followed by the government sector at SR8.66 billion and the higher education sector at SR5.24 billion.
In August, energy giant Saudi Aramco announced a $100 million commitment to fund research and development at King Abdullah University of Science and Technology over the next decade.
The partnership aims to accelerate innovation in Saudi Arabia and develop commercially viable solutions that support the global energy transition and sustainability goals, according to a press statement.
The agreement will focus on areas including energy transition, sustainability, materials science, upstream technologies, and digital solutions.
Saudi Arabia’s Industrial Development Fund injects $3.19bn into the sector, minister confirms
RIYADH: The Industrial Development Fund provided SR12 billion ($3.19 billion) in financing to the Kingdom in 2024, boosting its global competitiveness, according to leading minister.
Speaking during a panel discussion at the Budget Forum 2024, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the vital role of financing in driving industrial development.
“The Industrial Development Fund alone financed projects worth SR12 billion for 2024, but the total value of these projects exceeds SR60 billion,” Alkhorayef said.
He continued: “We have key indicators for the industrial sector: First, there are the licenses, which have seen significant growth. By the end of this year, more than 1,100 opportunities have been issued, and 900 factories have entered production. This is a very important key indicator.”
The minister went on to say: “The second key indicator is financing. Financing is a crucial driver for the industrial sector. The third key indicator is infrastructure. It is unimaginable to have a thriving industrial sector without properly developed industrial lands, primarily provided by the government.”
These key indicators are of great importance because they ensure the continued flow of investments into the sector, he added.
Alkhorayef also pointed to the Kingdom’s focus on promoting exports and supporting new sectors.
“Exports grew from SR458 billion in 2023 to SR528 billion this year, a 15 percent increase. This growth is largely driven by non-traditional sectors, showcasing the diversification of our economy beyond petrochemicals,” he said.
The minister highlighted the broader integration of industries, particularly between the industrial and mining sectors.
He praised Saudi Arabia’s streamlined approach to mining licenses, reducing wait times from eight to 10 years in advanced economies to just six months in the Kingdom, with plans to further reduce this to 90 days.
Alkhorayef emphasized the long-term vision of transforming Saudi Arabia into a hub for mining services and technology companies.
“Our investment in geological surveys has increased the estimated value of the Kingdom’s mineral wealth from $1.3 trillion to $2.5 trillion. This achievement positions the Kingdom as a future leader in mining and industrial innovation,” he added.
The industrial and logistics sectors have experienced significant momentum, with the government’s efforts driving a surge in private and foreign investment.
By aligning with Vision 2030, these initiatives aim to create a thriving, diversified economy that maximizes the nation’s geographic and resource advantages.
Transport sector achieves record growth and job creation
The Minister of Transport and Logistics Services Saleh Al-Jasser underscored the transport industry’s role as a key enabler of economic activity. He revealed that the sector achieved a 17 percent growth rate in just two years.
“International indicators also confirm this progress, such as the Logistics Performance Index, which saw an improvement of 17 ranks, as well as indicators for air connectivity, maritime connectivity, and road service quality,” Al-Jasser said.
He added: “Among other significant indicators is the reduction in fatalities and severe accidents on roads, achieved through an integrated national effort with other government entities. There is no doubt that progress has also been made across different modes of transport.”
The minister also highlighted that Saudi Arabia’s aviation sector is undergoing significant improvements, with a 50 percent increase in the number of international and domestic destinations connected to the Kingdom compared to pre-pandemic levels.
This reflects the sector’s rapid growth and its role in enhancing connectivity and economic activity.
A key goal of Vision 2030 is to create jobs and provide dignified employment opportunities for citizens.
“Saudi Arabia’s transport sector is at the core of our economic diversification efforts, providing critical infrastructure for all other industries,” Al-Jasser said.
He continued: “Investments exceeding SR447 billion have been made in the sector since the launch of the strategy. This includes more than 300 new aircraft ordered by national airlines, the highest in the Kingdom’s history, alongside significant expansions in logistics zones, maritime infrastructure, and other key areas.”
Al-Jasser highlighted the sector’s role in creating jobs, with 122,000 new employment opportunities generated by the third quarter of this year compared to the same period in 2023.
Additionally, women’s participation in transport has risen to 29 percent, a notable increase in a traditionally male-dominated field.
“The focus on developing local content has been equally impactful,” he emphasized. “The transport system has increased local content from 39 percent to 50 percent, putting us on track to achieve our Vision 2030 target of 60 percent.”
During the same session, the Minister of Communications and Information Technology Abdullah Al-Swaha highlighted Saudi Arabia’s rapid progress in the technology sector, attributing this success to investments in artificial intelligence-native companies and digital transformation.
“Today, companies like Mozn and Amplify are leading the charge in AI and innovative solutions. The Kingdom is positioning itself as a global powerhouse for tech-driven growth,” Al-Swaha said.
He continued: “The next phase will focus on technology manufacturing and exports. With the support of His Royal Highness the Crown Prince, we will further strengthen our National Program for Technology Development to ensure Saudi Arabia’s technological sovereignty and prosperity.”
Al-Swaha emphasized the Kingdom’s commitment to leveraging resources and infrastructure to build a globally competitive tech economy.
“This is a clear message to all tech professionals: we are ready to lead,” he concluded.
Saudi Arabia to introduce VAT refunds for tourists starting in 2025
JEDDAH: In a move aimed at boosting tourism, Saudi Arabia will begin offering refunds on value-added tax for eligible purchases made by tourists starting in 2025, the government announced.
The Zakat, Tax, and Customs Authority proposed changes to the VAT Implementing Regulations in August, which were open for public consultation via the Istitlaa platform until Sept. 17. The proposed amendments cover the definition of eligible goods, the refund process, and the role of authorized service providers in handling claims.
This initiative is part of Saudi Arabia’s efforts to enhance its global appeal as a tourist destination under the ambitious Vision 2030 plan. The National Tourism Strategy aims to attract 150 million visitors by the end of the decade and increase tourism’s contribution to the Kingdom’s gross domestic product from 6 percent to 10 percent.
In its 2025 budget statement, the Ministry of Finance noted: “The introduction of VAT refunds for tourists in Saudi Arabia is designed to improve the traveler experience while ensuring tax compliance.”
According to the proposed changes, tourists will be able to claim VAT refunds on goods purchased in Saudi Arabia for personal use, provided the items are taken out of the country. Certain goods, including vehicles, tobacco products, and food, will be excluded from the refund scheme.
Refunds will be processed through authorized service providers, who will verify eligibility, manage claims, and maintain the necessary records. These providers may charge a commission for their services, while ZATCA will retain the authority to review and reject claims if necessary.
The proposal defines a tourist as someone who is not a permanent resident of Saudi Arabia or any other Gulf Cooperation Council state that applies VAT. Transport crew members and other specific categories will be excluded. Tourists from GCC countries will be treated as non-GCC visitors until a unified VAT refund system is established across the region.
ZATCA’s governor will oversee the implementation of the refund system, including setting the conditions for eligible goods, processing refund requests, and authorizing service providers.
The VAT refund initiative is part of broader efforts to position Saudi Arabia as a leading global tourism destination. By refining tax policies and enhancing the shopping experience for international visitors, the Kingdom aims to attract higher spending and stimulate growth in the tourism sector.
This move also reflects Saudi Arabia’s focus on economic diversification and robust tax governance, reinforcing its competitiveness as a global hub for both tourism and investment.
Saudi Arabia sets new unemployment rate target of 5% by 2030, minister reveals
RIYADH: Saudi Arabia has revised its unemployment rate target to 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions, an official revealed.
During a panel discussion at the Budget Forum 2024, the Minister of Human Resources and Social Development Ahmed Al-Rajhi detailed the Kingdom’s strides toward improving employment figures.
“The unemployment rate among Saudis was 12.8 percent in 2018, and today it has dropped to 7.1 percent. The Vision 2030 target was to reduce Saudi unemployment to 7 percent by 2030, a milestone we have achieved six years ahead of schedule,” Al-Rajhi said.
He added: “For this reason, His Royal Highness the Crown Prince directed a review of this target, and now we have a new ambition: to reduce the unemployment rate among Saudis to 5 percent by 2030.”
The move highlights Saudi Arabia’s progress in building a robust labor market and achieving economic diversification under its reform agenda.
The human resources and social development system is deeply involved in implementing Vision 2030, contributing to eight of its 11 key programs and managing six specific workforce and social development strategies.
“One of the achievements of the system, and the government as a whole, is that this year we have achieved an overall unemployment rate of 3.3 percent, down from 6 percent in 2018,” Al-Rajhi said.
Regarding women’s involvement, the economic participation rate of females has reached 35 percent, exceeding the Vision 2030 target of 30 percent by 2030.
“We have surpassed the goal by 5 percent seven years ahead of schedule, and we now have a new target to aim for,” the minister said.
He continued: “The Ministry of Human Resources and Social Development has implemented 84 percent of the Labor Market Strategy over the past four years, creating 300,000 jobs in specialized professions such as engineering, accounting, pharmacy, and radiology. These efforts align with Vision 2030’s emphasis on building a future-ready workforce.”
Al-Rajhi explained that the Kingdom has been tasked with updating this strategy, and the ministry submitted a new ambitious plan to elevate the Saudi labor market to one of the strongest globally.
“The second phase of this strategy is now awaiting government approval,” he said.
To further strengthen the labor market, the ministry has launched initiatives like the Waad program in partnership with the private sector, which has provided over 1.3 million training opportunities to date.
Additionally, labor regulations have been overhauled, with more than 38 articles amended to ensure a modern and adaptable workforce framework.
New insurance products, such as domestic worker insurance and labor market insurance, have also been introduced to safeguard employees and employers.
“Regarding beneficiary satisfaction: previously, the ministry in the labor sector received 60,000 visitors to its branches across the Kingdom each month,” Al-Rajhi said.
He added: “After launching the automation service and targeting zero visits, the number has now dropped to 3,000 beneficiaries per month.”
The Minister of Education Youssef Al-Benyan highlighted the ministry’s efforts in aligning its strategies with Vision 2030.
He emphasized the cumulative nature of transformation in the education sector, pointing out that the ministry has been building on progress from previous years to achieve sustainable development.
“The allocation for the 2025 budget exceeds SR200 billion ($42.09 billion),” Al-Benyan said, underscoring the government’s significant investment in education.
He explained that this funding reflects the ministry’s comprehensive approach to enhancing spending efficiency, institutional performance, and transformation.
“Today, if we talk about 2025, we must also briefly discuss 2024 and previous years, where the Ministry of Education has been building on cumulative progress,” Al-Benyan said.
He continued: “This reflects a professional culture that needs to be strengthened within the government system— that work is cumulative, and transformation is a gradual, ongoing process.”
Al-Benyan also mentioned the ministry’s focus on embedding a professional culture of long-term planning within government systems.
He said: “Spending efficiency is not solely the responsibility of the financial sector but a collaborative effort across various sectors. This is why we have revisited the operational system’s role in the ministry to ensure alignment with broader national goals.”
The minister highlighted the importance of education as a foundational pillar for Saudi Arabia’s economic and social development.
This includes investing in academic and operational infrastructure, supporting the Kingdom’s workforce needs, and ensuring the education system meets global standards.
Closing Bell: Saudi main index slips to close at 11,590
RIYADH: Saudi Arabia’s Tadawul All Share Index ended lower on Wednesday, losing 145.28 points, or 1.24 percent, to close at 11,590.79.
The benchmark index saw a total trading turnover of SR6.02 billion ($1.6 billion), with 65 stocks advancing and 168 declining. The Kingdom’s parallel market, Nomu, also experienced a decline, dropping 438.11 points, or 1.43 percent, to close at 30,164.72, as 30 stocks advanced and 52 retreated. The MSCI Tadawul Index fell 22.41 points, or 1.52 percent, to finish at 1,451.98.
Tamkeen Human Resource Co. was the best performer of the day, with its share price rising 30 percent to SR65. Other notable gainers included United International Transportation Co., whose stock rose 6.54 percent to SR76.60, and Anaam International Holding Group, which saw a 5.98 percent increase to SR1.24.
On the other hand, Saudi Cable Co. recorded the biggest loss, falling 6.67 percent to SR90.90.
SHL Finance Co. also saw a decline of 4.74 percent, closing at SR16.90, while Filing and Packing Materials Manufacturing Co. dropped 4.12 percent, ending the day at SR43.
On the announcements front, Saudi Awwal Bank announced the launch of its riyal-denominated additional tier-1 sukuk offering.
The terms and amount of the sukuk will be determined at a later stage, based on market conditions. The minimum subscription is set at SR1 million, with a par value of SR1 million.
The return will also be determined later, depending on market conditions. The targeted investors are institutional and qualified clients in accordance with the Capital Market Authority’s rules. HSBC Saudi Arabia has been appointed as the sole lead manager for the sukuk issuance. The bank’s stock closed down 2.95 percent at SR32.15.
Tamkeen Human Resource Co. also released its interim financial results for the period ending Sept. 30, reporting a net profit of SR69.1 million for the first nine months of 2024. This marks a 40.7 percent increase compared to the same period in 2023.
The growth was primarily driven by a 40 percent rise in revenues, a 28 percent increase in gross profit, and a SR10.3 million rise in general and administrative expenses. Non-operating income also grew by SR10.1 million, highlighting the company’s strong financial performance and effective management of its operations and risks.
