Finance minister, SAMA governor participate in G20 ministerial meeting in Rio de Janeiro
Mohammed Al-Jadaan and Ayman bin Mohammed Al-Sayari took part in the meeting
Updated 28 July 2024
Arab News
RIYADH: The Saudi Minister of Finance and the governor of the Saudi Central Bank (SAMA) concluded their participation in the third G20 Finance Ministers and Central Bank Governors Meeting, which was held on Thursday and Friday in Rio de Janeiro.
Mohammed Al-Jadaan and Ayman bin Mohammed Al-Sayari took part in a discussion session titled “Global Economic Outlook and Persistent Challenges.”
Al-Jadaan pointed out that despite the noticeable recovery in the global economy, it remains below desired levels.
He highlighted the achievements of long-term economic planning under Saudi Vision 2030 and the importance of multilateral cooperation in addressing global challenges.
During the session on “International Tax Cooperation,” he expressed the Kingdom's appreciation for efforts supporting the international tax cooperation agenda.
n the session on “Facilitating Finance to Achieve Climate and Sustainable Development Goals,” he underscored that sustainable finance required a coordinated global effort.
He also emphasized the importance of allowing countries to implement approaches aligned with their national policies and procedures, which must include carbon capture technologies.
In a session on development financing, participants discussed capital flows, global debt issues, and reforms of multilateral development banks.
Al-Jadaan highlighted the importance of addressing debt challenges in low-income countries facing high debt distress and reiterated the Kingdom's support for efforts to enhance the implementation of the Common Framework for Debt Treatment Initiative.
Egypt achieves 3.9% growth in first half of fiscal year, prime minister says
Comments came after Mostafa Madbouly held a meeting with IMF deputy managing director
Central Bank of Egypt expects the annual inflation rate to slow down during 2025 and 2026
Updated 6 min 43 sec ago
Reem Walid
RIYADH: Egypt has achieved real growth of 3.9 percent in the first half of the current fiscal year, signaling positive resilience of the economy, Prime Minister Mostafa Madbouly revealed.
In media statements following a meeting with the Deputy Managing Director of the International Monetary Fund Nigel Clarke, Madbouly noted that private sector investment rose by 80 percent, while foreign direct investment increased by approximately 17 percent during the period from July to December.
He also clarified that Egypt’s fiscal year runs from July 1 to June 30 of the following year.
Egypt’s Prime Minister Mostafa Madbouly said the country is witnessing a downward trend in debt. Egyptian Cabinet/Facebook
According to the newly released statement, Madbouly said: “The Egyptian economy has proven its resilience and ability to absorb the very significant external shocks that Egypt, like other countries around the world, has been exposed to in the recent period.”
He added: “This was confirmed by the IMF’s certification that Egypt is proceeding at a steady pace on the path of economic reform.”
The prime minister further noted that non-oil exports also witnessed a growth of approximately 33 percent during the first nine months of the year.
He highlighted that these indicators have supported strong growth in key productive sectors, such as industry, communications and information technology, tourism, and others, helping to boost investor confidence in the Egyptian economy.
“Furthermore, we have witnessed a decline in unemployment rates to less than 7 percent, which is the lowest rate witnessed in Egypt today throughout history,” Madbouly said.
Deputy Managing Director of the International Monetary Fund Nigel Clarke said Egypt has made tangible and clear progress regarding its macroeconomic reform program. Egyptian Cabinet/Facebook
He also explained that inflation rates and indicators in Egypt have declined significantly, noting that last month saw inflation rates fall to 13.9 percent, compared to more than 37 percent during the same period last year.
According to the Prime Minister, the country is also witnessing a downward trend in debt. Madbouly pointed out that the general budget deficit has also decreased over the past 10 months to 6.5 percent, compared to 6.7 percent.
He noted that the Egyptian state aims to reduce debt to approximately 85 percent of gross domestic product by the end of June, compared to 96 percent in June 2023.
The prime minister went on to affirm the state’s commitment to continuing its path of economic reform and exerting maximum efforts, thanking the IMF and its task force.
Madbouly highlighted the successful completion of four previous reviews under the current program and noted that the fifth review is now underway, in coordination with the fund’s task force.
Governor of the Central Bank of Egypt Hassan Abdalla, Prime Minister Mostafa Madbouly, and Deputy Managing Director of the International Monetary Fund Nigel Clarke. Egyptian Cabinet/Facebook
The IMF’s Clarke emphasized that Egypt has made tangible and clear progress regarding its macroeconomic reform program.
“This is an Egyptian program that has resulted in a strong decline in inflation and unemployment rates, while foreign exchange reserves have increased, along with the availability and abundance of foreign currencies. This is no longer a problem as it was before,” he said, adding: “We have also witnessed a steady increase in GDP growth rates, as the Egyptian economy continues on its path toward stability.”
The deputy managing director of the IMF went on to say that these significant positive results achieved by the Egyptian economic reform program were due to the bold decisions and actions of the government.
He noted that these reforms include the transition to a flexible exchange rate system, the adoption of a monetary policy based on economic stability, and the intensive efforts being made to mobilize domestic revenues to ensure a sustainable and stable fiscal policy.
In the same context, Clarke shed light on how the progress in Egypt’s economic reform program also includes the social dimension and provides support to the neediest groups.
Egypt’s Prime Minister Madbouly said private sector investment rose by 80 percent, while foreign direct investment increased by approximately 17 percent during the period from July to December. Egyptian Cabinet/Facebook
“I welcome these reforms that have led to these positive results,” he said, calling for continued implementation of the economic reform program.
The official also addressed the increase in the percentage of financing provided to the private sector and the growth in the private sector’s share of GDP, stressing that all of this was a direct response to the improvement and stability witnessed in the macroeconomic environment.
Clarke further justified that a rapid transition to a more sustainable economic standard requires a model in which the private sector leads growth and economic activity.
“This is already the current path, and we are moving forward together to accelerate it, reducing the state’s role in economic activity, making room for the private sector, and promoting equal opportunities for various economic sectors,” he said.
The IMF’s deputy managing director added: “This will enhance economic dynamism and attract both local and international investment. It will also lead to further progress and prosperity for the Egyptian economy, and, most importantly, it will lead to a more sustainable economic model.”
Deputy Managing Director of the International Monetary Fund Nigel Clarke expressed his optimism that the Egyptian economy would achieve positive results in the future. Egyptian Cabinet/Facebook
During his speech, Clarke also addressed the economic shocks that have become a defining feature of today’s global landscape, emphasizing that the region’s most critical issue is its economic resilience in the face of these disruptions.
Toward the end of his talk, the deputy managing director expressed the IMF’s appreciation for the long-standing partnership with Egypt, a key member of the fund. He stressed that the IMF continues to support Egypt in completing the implementation of bold economic reforms, which will contribute to achieving positive outcomes for the country and its people.
The Central Bank of Egypt expects the annual inflation rate to slow down during 2025 and 2026 compared to the sharp decline witnessed in the first quarter of this year, according to the bank’s monetary policy report.
The newly released report reveals that the Central Bank of Egypt expects an inflation rate of 14 percent to 15 percent on average in 2025 and 10 percent to 12.5 percent in 2026. The bank has attributed the slowdown in the annual rate of inflation decline in 2025 and 2026 to the relatively slow decline in non-food inflation.
The entity also expects inflation to stabilize around its current levels until the first half of 2026 before resuming its downward path, the report noted.
Aramco cuts methane emissions by 11.4%, sets 2030 target to reduce upstream carbon intensity
CEO Amin Nasser reaffirmed the company’s commitment to embedding sustainability across all areas
Aramco signed a non-binding agreement with Ma’aden to form a joint venture focused on mineral exploration
Updated 24 min 44 sec ago
Nadin Hassan
RIYADH: Saudi Aramco has achieved an 11.4 percent reduction in methane emissions in 2024 and set a new 2030 target to cut upstream carbon intensity, according to its latest sustainability analysis.
Saudi Aramco President and CEO Amin Nasser reaffirmed the company’s commitment to embedding sustainability across all areas of its operations in a new report, saying the target is part of the firm’s “broader roadmap” to achieve net-zero operational emissions by 2050.
Saudi Arabia is aiming to be carbon neutral by 2060, a commitment announced by Crown Prince Mohammed bin Salman during the Saudi Green Initiative forum in 2021.
As the Kingdom’s flagship energy producer, Saudi Aramco plays a pivotal role in this transition by implementing decarbonization measures, expanding low-carbon energy investments, and deploying climate-focused technologies.
In our fourth Sustainability Report, we present how we integrate sustainability practically and responsibly within our corporate strategy and operations
“This is Aramco’s fourth Sustainability Report since announcing our ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across our wholly-owned operated assets by 2050. To complement our net-zero ambition, we have also set a new 2030 interim target for reducing our upstream carbon intensity,” Nasser stated in the release.
The interim goal aims to reduce carbon intensity in upstream operations to 8.6 kg of carbon dioxide equivalent per barrel of oil equivalent or lower, compared to the current 9.7 kg CO2e/boe — already among its peers’ lowest upstream carbon intensity.
Aramco has also set a target to achieve a 15 percent reduction by 2035 compared to its 2018 baseline, and has outlined an ambition to mitigate 52 million tonnes of CO2 equivalent annually by 2035, relative to its business-as-usual emissions forecast.
Meanwhile, upstream methane intensity decreased to 0.04 percent in 2024, down from 0.05 percent the previous year.
The report outlines Aramco’s sustainability strategy, including efforts to minimize emissions from existing energy sources, increase efficiency through artificial intelligence, and boost investments in carbon capture, hydrogen, and renewables.
To underline the company’s drive to net-zero, Nasser highlighted a shareholder agreement signed by Aramco in 2024 to develop a carbon capture and storage hub in Jubail.
“When completed, this facility is expected to be one of the largest such projects in the world,” he said.
The CEO added that hydrogen is another area where the company sees potential growth opportunities, “leading to our acquisition of a 50 percent stake in a blue hydrogen company.”
Aramco also signed a non-binding agreement with mining giant Ma’aden to form a joint venture focused on mineral exploration in Saudi Arabia.
“The joint venture would draw on Aramco’s extensive geoscience data and subsurface knowledge, with lithium production potentially commencing by 2027,” Nasser added.
The company’s growing use of AI is central to its decarbonization drive. AI-enabled analytics are now used to monitor and reduce greenhouse gas emissions across key facilities, while predictive algorithms help optimize equipment performance and reliability.
“Looking ahead, we believe a multi-source, multi-speed, and multi-dimensional approach is required for the global energy transition in order to properly address the energy security, affordability and sustainability priorities of individual countries,” Nasser concluded in his message.
According to the Net Zero Emissions in Saudi Arabia by 2060 report in 2023 by King Abdullah Petroleum Studies and Research Center, the Kingdom is targeting an annual reduction of 278 million tonnes of CO2 equivalent by the end of the decade in order to reach its net-zero goal by 2060.
The plan includes expanding renewables to 50 percent of the energy mix, phasing out liquid fuels in power generation, and planting 650 million trees.
The Kingdom is also aiming to capture 44 million tonnes of CO2 annually by 2035.
Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair
Project expected to generate over 500 direct jobs and will employ environmentally friendly technologies
Plant is scheduled to start commercial operations by mid-2027
Updated 48 min 21 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia is set to localize tinplate and tin-free steel production through a partnership with China, establishing the region’s first facility of its kind with an annual capacity of 400,000 tonnes.
Al-Watania for Industries and China’s Donghexin Group, or DHX Group, have signed an agreement to build the plant in Ras Al-Khair Industrial City on the Kingdom’s eastern seaboard. The plant is scheduled to start commercial operations by mid-2027.
The initiative represents an achievement in Saudi Arabia’s efforts to localize the supply chain for the packaging industry. It aims to satisfy growing domestic demand for tinplate and tin-free steel — critical materials that underpin a wide range of sectors, including food and beverage, paints, oils, and chemicals.
A memorandum of understanding to establish the facility was first signed on Jan. 15 during the fourth edition of the Future Minerals Forum, according to a statement from WFI issued that day, but now a full partnership has been agreed.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef witnessed the signing ceremony, which was also attended by Vice Minister for Mining Affairs Khalid Al-Mudaifer, DHX Group Chairman Li Dong, and Al-Watania for Industries Chairman Mosaed Al-Ohali.
In a press statement, Al-Ohali said: “This partnership marks a strategic step toward achieving one of our key expansion goals — vertical integration across the value chain of the metal packaging sector.”
He added: “Establishing a technologically advanced tinplate manufacturing plant is a long-term investment in Saudi Arabia’s industrial security and reflects our deep commitment to localizing industrial knowledge, meeting domestic demand, and enhancing our export capabilities.”
Caption
According to the Saudi Press Agency, the project is expected to generate over 500 direct jobs and will employ environmentally friendly technologies. Half of its output will be designated for domestic consumption, while the remaining will be exported.
The facility is also seen as a key enabler for Saudi Arabia to position itself as a manufacturing hub and reduce dependency on imported raw materials.
DHX Group’s Dong said the venture is a model for global collaboration. “We are confident that our extensive experience of over two decades in this field will contribute to building a world-class metal manufacturing ecosystem that begins in the Kingdom and expands into regional markets,” he said.
“The plant is designed with sustainability in mind and is fully prepared for a future shift to low-emission green electricity, reinforcing our shared commitment to the environment,” Dong added.
Abdulrahman Al-Juaid, CEO of WFI, said the project represents a major step toward increasing local content and positioning Saudi Arabia as an exporter of critical tinplate.
“The partnership with Donghexin Group will contribute to the transfer of advanced manufacturing technologies and the training of national talent, enhancing Saudi Arabia’s readiness to become a leading regional industrial hub,” he added.
Saudi banks’ March profits jump 27% on lending boom
Total bank credit reached SR3.1 trillion in March, an annual increase of 16.26%
Saudi banks are expected to maintain stable profitability throughout the year
Updated 19 May 2025
Dayan Abou Tine
RIYADH: Saudi banks recorded a 27.1 percent year-on-year increase in net profits in March, reaching SR8.81 billion ($2.35 billion).
According to the Saudi Central Bank, also known as SAMA, this figure reflects earnings before zakat and tax.
The robust performance marks one of the strongest monthly earnings in recent years. It underscores growing confidence in the Kingdom’s banking sector amid steady economic activity and a strong pipeline of Vision 2030-related projects.
According to a January report by S&P Global Ratings, Saudi banks are expected to maintain stable profitability throughout the year. The analysis highlighted a favorable economic environment and declining interest rates as key enablers of continued credit expansion.
The robust banking performance aligns with the Kingdom’s broader non-oil economic momentum. Shutterstock
In particular, corporate lending is anticipated to remain the primary driver of loan growth in 2025, supported by increased construction activity, infrastructure investment, and government-led initiatives.
S&P expects lending growth to hover around 10 percent for the year, with corporate lending closely tied to Vision 2030 implementation leading the surge. Meanwhile, mortgage lending is projected to recover moderately in response to lower borrowing costs.
Saudi banks are also expected to continue leveraging international capital markets to fund growth. S&P estimated credit losses will stabilize at 50 to 60 basis points, supported by strong provisioning cushions built in recent quarters.
The March performance aligns with broader credit dynamics observed in Saudi Arabia. According to SAMA, total bank credit reached SR3.1 trillion in March, an annual increase of 16.26 percent, the highest growth in over three years.
Corporate loans accounted for 55.19 percent of the total, rising 22.3 percent year-on-year to over SR1.71 trillion.
The King Abdullah Financial District in Riyadh, Saudi Arabia. Shutterstock
This trend reflects a shift in Saudi lending priorities, with businesses now driving the lending landscape. The uptick in business credit signals increased private sector activity, particularly across construction, real estate, and manufacturing.
This robust banking performance aligns with the Kingdom’s broader non-oil economic momentum. According to the Riyad Bank Saudi Arabia Purchasing Managers’ Index compiled by S&P Global, the Kingdom recorded a PMI of 58.1 in March, the highest among its Middle Eastern peers and well above the 50.0 threshold, indicating expansion.
Saudi Arabia’s Ministry of Economy and Planning reported in February that non-oil activities now make up 52 percent of gross domestic product, having grown 20 percent since the launch of Vision 2030.
With the government targeting $100 billion in annual foreign direct investment by 2030, the expansion of the banking and non-oil sectors plays a critical role in attracting global capital and supporting long-term economic sustainability. As corporate activity intensifies and lending strategies evolve, Saudi banks appear well-positioned to balance growth, profitability, and resilience.
MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO
Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector
MAGRABi CEO Yasser Taher told Arab News the deal would elevate the company’s market share in Kuwait to an estimated 30%
Updated 46 min 49 sec ago
Reina Takla Miguel Hadchity
RIYADH: Eyewear giant MAGRABi Retail Group has signed a deal to acquire Kuwait’s optical chain, Kefan Optics, as part of its strategy to expand its footprint in the Gulf market.
Known for its professional eye care services, technical expertise, and loyal customer base, Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector.
The acquisition is projected to increase MAGRABi’s top-line sales by 5 percent and boost its earnings before interest, taxes, depreciation, and amortization by more than 10 percent within the first year following integration.
In an exclusive interview with Arab News, MAGRABi CEO Yasser Taher said the deal would elevate the company’s market share in Kuwait from 5 percent to an estimated 30 percent, positioning the company as a market leader in the country’s optical retail sector.
MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet. X/@MagrabiOpt
“Kefan is a highly trusted optician in Kuwait,” said Taher, adding: “They are highly recognized as a very professional optician, they provide high-quality technical service, and the brand is associated with professional optometry ... so they come across as a great fit in terms of clientele.”
Instead of phasing out the Kefan brand, MAGRABi plans to preserve its legacy while enhancing its operations. Planned changes include a refreshed logo, redesigned stores, and a revamped customer experience, all supported by advanced omnichannel capabilities tailored to younger demographics, particularly Gen Z.
Amin Magrabi, chair of MAGRABi Retail Group, called the deal a milestone in the company’s regional expansion. “This acquisition marks another defining moment in our transformation journey. We are proud to strengthen our presence in Kuwait and reinforce our leadership in a region poised for consolidation,” he said in a press statement.
“Our goal remains clear: to lead the evolution of eye care in the Middle East,” Magrabi added.
Kefan Optics Chairman Wael Al-Subaih noted the brand’s long-standing history and welcomed the transition.
Kefan Optics is known for its professional eye care services, technical expertise, and loyal customer base. Instagram/@_kefanoptics
“For 47 years, Kefan Optics — a proud, family-owned business — has been at the forefront of the optics and lenses industry in Kuwait, serving its valued clients through 37 branches across the country,” he said in a press statement.
“Today marks a significant milestone as Kefan Optics continues its journey of excellence under the Magrabi Retail Group. We celebrate this new chapter with great optimism and extend our best wishes to all involved,” Al-Subaih added.
Deal timeline and financing
Although the acquisition agreement has been signed, the deal remains subject to regulatory approvals from Kuwait’s Competition Authority and Saudi Arabia’s General Authority for Competition. Taher anticipates a formal closing by late August or early September 2025.
“There are a lot of approvals that we should be able to get,” he said. “There are also other stakeholders, including shopping malls and so on. So it’s the usual closing process of any transaction. Yet, the deal is done, and we have already assigned a signed agreement that we are presenting accordingly to authority approvals.”
Regarding the financing structure, Taher said the company follows a hybrid model.
“We would usually try to fund 70 percent from banks and 30 percent from our own equity,” he added.
MAGRABi Retail Group was certified as a Best Place to Work in Saudi Arabia for 2024/2025. MAGRABi
IPO on the horizon
Looking ahead, MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet.
“There is a strong intention to become a publicly listed company. No official approvals have been obtained from the board or the shareholders yet, we’re still working toward the plan and to be ready. The timelines are not in the immediate future,” Taher said.
Interestingly, as part of the Kefan Optics transaction, existing shareholders will have the opportunity to participate in MAGRABi’s future IPO, aligning both companies’ long-term interests.
M&A vs. organic growth
MAGRABi has been expanding through a combination of organic growth and strategic acquisitions, including its purchase of Rivoli Vision in 2024. Still, Taher emphasized that mergers and acquisitions only make sense when there are strong operational synergies.
We are thrilled to announce our historic partnership with Rivoli Group, a premium lifestyle retailer in the Lower Gulf. This merger of two leading multi-brand eyewear retail businesses marks a pivotal milestone in the transformation of the region's eyewear market.
“To have a successful M&A strategy, you must have very strong synergies to deploy; otherwise, you’re paying a very high premium for an acquisition, and you will not be able to improve results,” he said. “If that’s the case, then for sure, organic would be a better option, because M&A definitely comes at a premium.”
In Kefan Optics’ case, the synergies are clear. MAGRABi gains a well-established brand with loyal customers, while Kefan benefits from enhanced operational support.
“We chose that option because it makes financial sense for us, but strategically, we would like to be as well recognized as a local player in every market. So, if our brand is not necessarily highly recognized in this market. We would prefer to operate with a highly recognized and trusted brand in this market, which is the case in Kuwait,” Taher explained.
Sustained financial growth
Taher highlighted MAGRABi’s consistent financial performance, with the company targeting a 15-20 percent compound annual growth rate — and achieving it. In 2024, organic growth reached 14-15 percent compared to 2023.
When including the impact of the Rivoli Vision acquisition, net sales and EBITDA each rose by 43 percent year over year.
The company’s mainstream brand, Doctor M, also saw a 70 percent increase in sales, while online sales grew 25 percent during the same period.
“The big growth drivers remain our M&A,” Taher noted. “The introduction of Rivoli Vision as part of the MAGRABi Retail Group, also our mainstream banner, Doctor M, is a very big contributor. We’ve also been able to grow our online business by 25 percent year over year.”
Elevating the brand
MAGRABi intends to apply its retail expertise and backend capabilities — such as procurement, supply chain logistics, lens manufacturing, and retail analytics — to optimize Kefan Optics’ performance.
“We can definitely modernize the brand,” Taher explained. “Our intention is to keep the brand but evolve it into a premium and more appealing modern brand. We will refresh the brand, create a more appealing positioning, push the brand a bit more into the premium segment, and rebrand the logo and stores.”
He also pointed to the benefits of incorporating MAGRABi’s central glazing lab and digital retail tools to improve operational efficiency and enhance customer service.
As part of its growth strategy, MAGRABi aims to become a leading omnichannel retailer in the Middle East, investing in technology, customer experience, and product innovation.
“The objective is to really become one of the best omnichannel retailers in the Middle East, across all categories,” Taher said. “We’re investing a lot on tech and new customer experience, new services, and new product ranges. It’s a fully empowered proposition.”
The company is also actively pursuing further acquisitions across the region.
“M&A is a key pillar of our growth. We are active, and we have a pipeline that we’re working on, and we’re extremely excited about being able to deploy our capabilities across more and more banners, in different markets,” Taher confirmed.
With the Kefan Optics acquisition and IPO plans in motion, MAGRABi is positioning itself as the dominant force in the region’s optical retail sector.
Taher concluded: “It will be a very proud moment for us to take a brand that is highly trusted, like this in Kuwait, highly recognized in Kuwait, and evolve it to the next level and modernize it.”
