Saudi PIF-backed Lucid Group plans to sell 262.4m shares

A Lucid Air electric vehicle is displayed in Scottsdale, Arizona, US. File/Reuters
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Updated 17 October 2024
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Saudi PIF-backed Lucid Group plans to sell 262.4m shares

  • BofA Securities will handle the sale and the shares could be sold in different ways
  • Ayar Third Investment Co. plans to buy 374.7 million shares in a separate private deal

RIYADH: US automaker Lucid Group has announced a plan to sell 262.4 million shares of its stock to the public.   

This will be done through BofA Securities, a New York-based multinational investment banking division under the auspices of Bank of America, and it will handle the sale. 

The shares could be sold in different ways, such as directly to buyers or through market trades on the US Nasdaq exchange, according to a press release.  

The company has also given BofA Securities the option to buy up to an additional 39.4 million shares within the next 30 days, the release added. 

At the same time, Lucid’s main shareholder, Ayar Third Investment Co.— an affiliate of Saudi Arabia’s Public Investment Fund — plans to buy 374.7 million shares in a separate private deal, at the same price as the public offering.   

The move will help Ayar keep its roughly 58.8 percent ownership of Lucid. If BofA Securities decides to buy the extra shares, Ayar is also expected to buy more to maintain its ownership stake.   

Ayar’s participation in Lucid’s stock offering aligns with PIF’s broader strategy to strengthen its global investment presence and drive growth in emerging industries. By supporting the firm, the Kingdom’s sovereign wealth fund aims to boost the electric vehicle sector.   

Lucid said it will use the money from these sales for general business needs, such as covering expenses or funding new projects. Both deals are still subject to the usual closing conditions before they are finalized.  

In August, the electric vehicle maker secured $1.5 billion in new funding from Ayar, which included $750 million in convertible preferred stock through private placement and a $750 million unsecured delayed draw term loan facility, contingent upon certain conditions, according to a statement.  

The company plans to utilize funds raised from the private placement and potential loan proceeds for various corporate needs, including investments and working capital.  

Lucid beat market expectations for third-quarter deliveries, as discounts and cheaper financing options for its luxury electric vehicles boosted demand in an uncertain economy.   

The company delivered 2,781 vehicles in the quarter ending Sept. 30, exceeding estimates of 2,242 from eight analysts surveyed by Visible Alpha. 

In the first half of the year, Lucid reported revenues of $200.6 million from deliveries of 2,394 vehicles. 

At the end of the second quarter, the carmaker had approximately $4.28 billion in total liquidity and anticipates manufacturing around 9,000 vehicles in 2024. 

In September 2023, Lucid opened its first plant outside the US in Saudi Arabia, with an initial capacity of 5,000 EVs annually. 


Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

Updated 13 sec ago
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Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

RIYADH: Saudi Arabia’s Public Investment Fund will no longer allocate capital to Switzerland’s financial markets, two years after suffering losses from the collapse of Credit Suisse.

During the FII PRIORITY Europe Summit in Albania, PIF Gov. Yasir Al-Rumayyan said that the decision was driven by the manner in which Swiss regulators handled the 2023 government-backed rescue of Credit Suisse by UBS Group, reported Bloomberg.

The abrupt deal was executed without shareholders’ approval, impacting investors across the Middle East.

PIF, one of the world’s largest sovereign wealth funds, is reassessing its investment strategy amid growing concerns over regulatory stability and investor protection. The fund’s decision to halt investments in Switzerland’s financial markets marks a significant shift in its approach, underscoring the long-term impact of the 2023 Credit Suisse collapse on regional and institutional investor confidence.

PIF also continues to expand its footprint across Europe, signaling a redirection of capital.

“We’re not going to invest in the financial markets in Switzerland. If you change something overnight and wipe out all of your investors, this is a big red flag,” Al-Rumayyan said, as reported by Bloomberg.

The remarks were made during an on-stage discussion with Noel Quinn, newly appointed chairman of Zurich-based Julius Baer Group Ltd.

Quinn responded: “As the chairman of a Swiss bank as of 10 days ago, that concerns me.”

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price.

The plunge became worse after former chairman of the Saudi National Bank, Ammar Al-Khudairy, said the bank would “absolutely not” be open to further investments in Credit Suisse.

“The deal didn’t receive approval from either Credit Suisse or UBS shareholders as regulators and lawmakers rushed to contain a crisis of confidence that was spreading across global markets,” according to Bloomberg.

At the time, shareholders from the Middle East, including SNB and the Qatar Investment Authority, collectively held around 20 percent of Credit Suisse.

SNB, which was the largest shareholder in the Swiss lender, had called on Credit Suisse to reject the offer from UBS, Bloomberg reported.

Other investors had cautioned that the Swiss government’s decision to override standard merger procedures and sideline shareholder votes could deter institutional investors.

Legal analysts also warned that the rushed nature of the transaction had undermined Switzerland’s standing as a reliable investment destination where the rule of law is safeguarded.

Al-Rumayyan’s remarks came as PIF announced plans to open a subsidiary office in Paris and committed to doubling its investments in Europe to $170 billion by the beginning of the next decade.

The fund has already deployed approximately $85 billion across the region between 2017 and 2024, making strategic investments in key European economies, including the UK, France, and Italy.


Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

Updated 19 min 31 sec ago
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Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

  • Forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan
  • Bilateral meetings were held between company representatives from both countries

BISHKEK: Saudi Arabia and Kyrgyzstan, represented by the Saudi Chambers Federation and the Kyrgyz Chamber of Commerce and Industry, announced the signing of an agreement to establish a Saudi-Kyrgyz Joint Business Council — a significant step to advance economic cooperation between the two countries. 

The signing ceremony took place on the sidelines of the Saudi-Kyrgyz Business Forum held on May 21 in Bishkek, the Kyrgyz capital, in the presence of Kyrgyz Minister of Economy and Commerce Bakyt Sydykov, Saudi Chambers Federation Chairman Hassan bin Muajab Al-Huwaizi, and several ministers and officials from both nations, the Saudi Press Agency reported. 

The forum was also attended by Saudi-Kyrgyz Business Council Chairman Ahmed Al-Dakhil, Saudi Arabia’s Ambassador to Kyrgyzstan Ibrahim bin Radi Al-Radi, Kyrgyzstan’s Ambassador to Saudi Arabia Ulukbek Maripov, along with more than 100 investors. 

The chairman of the Saudi Chambers Federation emphasized that the establishment of the joint business council is the result of sustained efforts and mutual desire, providing an effective platform for Saudi and Kyrgyz businessmen to showcase and promote their activities and build commercial partnerships, amid vast opportunities for cooperation between the two countries. 

The joint business forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan across sectors including exports, healthcare, pharmaceuticals, banking, hydropower, agriculture, and technology. 

Bilateral meetings were also held between company representatives from both countries. 

Notably, the federation’s delegation visits to Kyrgyzstan included a series of meetings with government and private sector officials to discuss prospects for economic cooperation and explore investment opportunities. 


Saudi crude output hits 8.96m bpd in March: JODI data

Updated 27 min 44 sec ago
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Saudi crude output hits 8.96m bpd in March: JODI data

  • Crude exports fell by 12.11% month on month to 5.75 million bpd
  • Kingdom’s slight increase in crude production came amid a broader strategic pivot within OPEC+

RIYADH: Saudi Arabia’s crude oil production rose to 8.96 million barrels per day in March, reflecting a 0.11 percent monthly increase, according to the latest Joint Organizations Data Initiative data.

According to the database, crude exports fell by 12.11 percent month on month to 5.75 million bpd.

Refinery crude exports rose 10.3 percent during this period to 1.55 million bpd. The uptick was driven primarily by diesel shipments, which jumped 20.66 percent from the previous month to 806,000 bpd.

It also accounted for the largest share of refined product exports in March at 52 percent, followed by motor and aviation gasoline at 17 percent, and fuel oil at 12 percent.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase, with diesel comprising 42 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 15 percent.

Domestic demand for refined petroleum products increased by 223,000 bpd in March compared to the previous month, reaching 2.22 million bpd.

On an annual basis, demand rose by 5.07 percent, equivalent to 107,000 bpd.

The Kingdom’s slight increase in crude production across the month came amid a broader strategic pivot within OPEC+, which has agreed to significantly boost oil output starting in June. The alliance announced an additional 411,000 bpd increase for June, following a similar adjustment made for May.

This marks a continuation of the group’s recent efforts to accelerate the return of previously curtailed supply to the global market. The upcoming increase is expected to add further downward pressure on prices, which have already been trending lower due to ample inventories, modest international demand growth, and increasing non-OPEC output.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase. Shutterstock

Direct crude usage

Saudi Arabia’s direct crude oil burn rose to 383,000 bpd in March, reflecting a 35.3 percent increase from the previous month.

Direct crude burn refers to the use of unrefined crude oil for electricity generation, rather than for export or refining.

The increase came amid the seasonal ramp-up in cooling needs as temperatures begin to rise heading into the warmer months.

Although the Kingdom has made substantial progress in expanding its natural gas infrastructure to reduce reliance on direct crude burn, fluctuations still occur, particularly in transitional months like March, when energy demand begins to shift but supply systems have not fully ramped up.


Saudi Arabia launches BAE Systems Arabian Industries to boost local manufacturing 

Updated 21 May 2025
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Saudi Arabia launches BAE Systems Arabian Industries to boost local manufacturing 

  • Company results from the merger of two major players in the defense ecosystem
  • Merger was finalized nearly four months ago to consolidate operational strengths

JEDDAH: Defense manufacturing is set to advance in Saudi Arabia with the launch of BAE Systems Arabian Industries, a new entity aimed at accelerating localization and strengthening the Kingdom’s military industrial base. 

The company results from the merger of two major players in the defense ecosystem — BAE Systems Saudi Development and Training, which focuses on capability building, and the Saudi Maintenance and Supply Chain Management Co., a provider of supply chain and technical services, the Saudi Press Agency reported. 

The move marks further progress in the Kingdom’s push to expand its defense capabilities, with localization of military spending rising to 19.35 percent in 2024, up from just 4 percent in 2018. The Kingdom aims to surpass 50 percent by 2030, in line with Vision 2030’s goal of a self-sufficient defense sector. 

Ahmad Abdulaziz Al-Ohali, governor of the General Authority for Military Industries, speaks during the inauguration ceremony in Riyadh. X/@GAMI_KSA

Ahmad Abdulaziz Al-Ohali, governor of the General Authority for Military Industries, inaugurated BAE Systems Arabian Industries at an official ceremony held at the company’s new headquarters in Riyadh, attended by several officials and defense industry leaders. 

In a post on his X handle, the governor said: “This will enhance local content and open up broad horizons for national and international companies to contribute to building a solid and sustainable military-industrial system, to enhance local content in terms of human and technical cadres.” 

The merger was finalized nearly four months ago to consolidate operational strengths and leverage over three decades of experience in defense training, capability development, and logistics. 

Saudi Arabia continues its push to expand its defense capabilities, with localization of military spending. X/@GAMI_KSA

“He pointed out that the integration of national and global expertise within this unified entity reflects the confidence of major companies in the attractive investment environment provided by the authority in cooperation with its partners in both the public and private sectors,” the SPA report stated. 

Al-Ohali noted that the initiative would play a key role in transferring knowledge and building national expertise, supporting the Kingdom’s goal of localizing over 50 percent of military spending by 2030. 

He reaffirmed the authority’s support for initiatives that boost local content and create opportunities for both national and international companies to help build a strong and sustainable military-industrial sector. 

The inauguration of BAE Systems Arabian Industries marks a major step forward in enhancing local content and building national capabilities in the Saudi military industries sector. X/@GAMI_KSA

In a LinkedIn post, Abdulatif Al-Shaikh, the new company’s CEO, said: “We are guided by a clear vision to be the leading Saudi company in the defense sector by supporting and developing capabilities within the Kingdom and across the region, in alignment with Vision 2030.” 

In another development, Saudi Arabia recently completed production of its first locally manufactured components for the Terminal High Altitude Area Defense, or THAAD system launcher, in Jeddah.

This follows localization agreements signed during the 2024 World Defense Show and reflects increasing technical collaboration with global defense firms such as Lockheed Martin. 


Egypt’s exports to Lebanon up 43.8% across 2024: Official data

Updated 24 min 57 sec ago
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Egypt’s exports to Lebanon up 43.8% across 2024: Official data

  • Value of imports declined by 2.3%, totaling $237.7 million
  • Trade exchange between Egypt and Lebanon reached $1 billion in 2024

RIYADH: The value of Egyptian exports to Lebanon saw a 43.8 percent year-on-year surge in 2024 to reach $762.8 million, according to new figures.

Data from Egypt’s Central Agency for Public Mobilization and Statistics also showed that imports from the Middle Eastern country declined by 2.3 percent, totaling $237.7 million during the same period.

These shifts in trade come amid broader economic trends. The region’s gross domestic product grew by 1.8 percent in 2024, reaching $3.6 trillion despite ongoing challenges, according to a March report by the Arab Investment and Export Credit Guarantee Corporation, or Dhaman.

Looking ahead, this economic momentum appears set to continue. Moody’s projects 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook for the region’s sovereign credit fundamentals over the next 12 months.

Egyptian investments in Lebanon amounted to $9.7 million during the fiscal year 2023/2024. File/Reuters

The newly released CAPMAS report revealed there was “an increase in the value of trade exchange between Egypt and Lebanon, reaching $1 billion in 2024, compared to $774 million in 2023, an increase of 29.3 percent.”

The main export groups of goods to Lebanon during 2024 included fuels, mineral oils, and distillation products worth $215 million, iron and iron products worth $65 million, and cement worth $55 million.

The value of fruit and vegetable exports stood at $48 million, while sugar and sugar products were worth $41 million. 

As for the main import groups of goods from Lebanon during the same year, they entailed iron and iron products worth $118 million, fruits and vegetables worth $72 million, and electrical appliances and equipment worth $22 million.

The value of plastics imports stood at $4 million, while dyeing and coating extracts were also worth $4 million.

The value of fruit and vegetable exports stood at $48 million, while sugar and sugar products were worth $41 million. Shutterstock

The CAPMAS data also shed light on how the value of Lebanese investments in Egypt amounted to $51.2 million during the fiscal year 2023/2024, compared to $51.4 million during the fiscal year 2022/2023.

Egyptian investments in Lebanon amounted to $9.7 million during the fiscal year 2023/2024, compared to $7.9 million during the fiscal year 2022/2023.

“The value of remittances from Egyptians working in Lebanon amounted to $42.9 million during the fiscal year 2023/2024, compared to $38.1 million during the fiscal year 2022/2023, while the value of remittances from Lebanese working in Egypt amounted to $3.5 million during the fiscal year 2022/2023, compared to $3.7 million during the fiscal year 2022/2023,” the CAPMAS report added.

According to estimates, the number of Egyptians residing in Lebanon reached 11,300 by the end of 2023, the report concluded.