Saudi-based Al Salem Johnson Controls keen to explore opportunities in Uzbekistan: CEO
Updated 18 August 2022
Fahad Abujadayel & Nirmal Narayanan
JEDDAH: Saudi-based Al Salem Johnson Controls wants to expand operations in Uzbekistan, as the country offers a lot of opportunities for private companies, according to a top official.
Speaking to Arab News on the sidelines of the fourth meeting of Saudi-Uzbek Business Council in Jeddah on Wednesday, Mohanad Al-Shaikh, CEO of Al Salem Johnson Controls, said there are a lot of good synergies between Saudi Arabia and Uzbekistan in various sectors.
“Uzbekistan is focusing on agriculture, petrochemicals, pharmaceuticals. And I think we do have the base to supply many of those industries out of the Kingdom of Saudi Arabia, with the accumulated knowledge and experiences we developed here,” he said.
Al-Shaikh added: “I’m talking mainly about our field, HVAC, industrial refrigeration, the controls, fire suppressions and detections, systems.”
Talking about the opportunities in the refrigeration and air conditioning sector, the CEO noted that Saudi Arabia has the expertise to cooperate and help the knowledge transfer.
“Johnson Controls does have an office in Uzbekistan, and it’s mainly on the industrial refrigeration side. But I would like to see Saudi-made products exported to Uzbekistan. That’s where I see the wonders of opportunities taking place,” he added.
Al-Shaikh said that Saudi Arabia is the second largest market for Johnson Controls globally.
“Saudi Arabia is considered to be the second or third largest operations globally (for Johnson Controls). And we’re talking about a $40 billion company. We would be honored to be supporting Saudi Arabia and that is allowing us to build the right knowledge and expertise in our field,” he further noted.
Saudi authority approves new guidelines for sustainable debt instruments
Updated 27 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Capital Market Authority has approved new guidelines for issuing green, social, sustainable, and sustainability-linked debt instruments.
These guidelines, which came into effect on may 27, represent a crucial milestone in the CMA’s broader strategy to deepen the domestic debt market and align the Kingdom’s financial sector with the sustainability objectives outlined in Vision 2030.
The initiative is part of the CMA’s strategic plan for 2024–2026 and supports the Sustainability Strategy of the Ministerial Committee for Corporate Sustainability Strategy.
Developed in collaboration with both public and private sector stakeholders, the guidelines serve as a key deliverable under the initiative titled “Establish the regulatory framework for sustainable debt instruments.”
This initiative aims to encourage local issuances and enhance the role of debt financing in the national economy.
The approval of these new guidelines aligns with the CMA’s comprehensive strategy, which includes over 40 initiatives designed to advance sustainable finance and develop the capital markets.
Among these efforts are the creation of regulatory frameworks for green and ESG-linked bonds, the adoption of open finance practices to foster innovation, and the strengthening of corporate governance regulations to boost accountability and investor confidence.
This development is particularly important as it accelerates the adoption of sustainable finance by creating a clear framework for issuing ESG-compliant debt instruments, enabling public and private entities to raise funds for environmentally and socially responsible projects.
Furthermore, it strengthens the local debt market by encouraging wider participation from issuers and investors through enhanced regulatory clarity, which in turn improves market liquidity and access to capital.
The CMA highlighted that while the new guidelines are non-binding, issuers offering green, social, sustainable, or sustainability-linked debt instruments denominated in Saudi riyals — whether through public or private placements — are required to disclose any deviations from the guidelines in their issuance framework or offering documents.
“The guideline does not entail any changes to the regulatory rules and procedures currently in place in the capital market,” the CMA stated.
According to the regulator, the guidelines define four categories of instruments: green debt, social debt, sustainable debt, and sustainability-linked debt.
Green, social, and sustainable instruments require that proceeds be used exclusively for projects that deliver positive environmental and/or social outcomes.
Saudi Arabia’s Asir region secures $1.06bn boost as total investments climb past $6.6bn
Updated 27 May 2025
Nadin Hassan
ASIR: Saudi Arabia’s Asir region is set to receive a fresh investment boost of SR4 billion ($1.06 billion), raising the total value of government-backed projects in the area to more than SR25 billion, according to a senior official.
Speaking at the second Asir Investment Forum in Abha, Prince Turki bin Talal, governor of Asir, announced that over SR5 billion in investments are already underway. The newly pledged SR4 billion will be formally revealed during the two-day forum.
This investment surge is part of the Asir Region Development Strategy — the Kingdom’s first development plan tailored to a specific region — launched in 2021 by Crown Prince Mohammed bin Salman. The strategy aims to transform Asir into a world-class tourism destination, with a goal of attracting more than 10 million visitors annually by 2030, while driving sustainable development through tourism and strategic investment.
In his opening remarks, the governor said: “With more than SR25 billion committed to essential government projects and investments that have already begun implementation on the ground — through projects by the Public Investment Fund, the Tourism Development Fund, the Social Development Bank, and other financing entities — in line with the state’s belief that Asir is an economic powerhouse and a fundamental enabler for the private sector.”
He added: “Since the launch of the Asir strategy, committed investments exceeding SR5 billion have already begun implementation, in addition to SR4 billion whose details will be announced during this forum.”
Prince Turki bin Talal, governor of Asir, speaks at the forum in Asir.
Sultan Al-Shahri, chief of investment at the Aseer Development Authority, underscored the scale of ongoing activity, noting that the region is progressing with 79 investment projects worth more than SR29 billion. Of these, 49 projects valued at SR25.6 billion are in the attraction phase, while 30 confirmed initiatives account for SR3.8 billion.
He said private sector agreements signed during the first edition of the forum amounted to SR1.7 billion, with presented opportunities totaling SR3 billion, signaling growing domestic and international investor interest aligned with Vision 2030’s objectives.
Held under the theme “Asir Thrives… Invest Now,” the second edition of the forum opened on May 27 at King Khalid University in Al-Fara’a, Abha. Organized by the Aseer Development Authority, the event drew over 1,500 participants, including ministers, business leaders, and regional experts.
A key development announced at the forum was the launch of “Qimam Al-Sarrah,” a new investment arm intended to streamline land development and simplify regulatory processes to facilitate investor access.
Ministerial participation included Saudi Tourism Minister Ahmed Al-Khateeb, Qatari Minister of Municipal Affairs Abdullah Al-Atiyah, and Saudi Communications and Information Technology Minister Abdullah Al-Swaha.
During a plenary session, the ministers emphasized the strategic role of digital infrastructure, smart services, and mega-events — including Abha’s bid to host the 2034 FIFA World Cup — in driving economic momentum.
Saudi Commerce Minister Majid Al-Qasabi, addressing the forum virtually, affirmed the region’s transformation.
He stated that Asir is undergoing a qualitative transformation across various levels, positioning it as one of the most promising areas on Saudi Arabia’s investment map — thanks to its human, natural, and economic resources.
Al-Qasabi noted that the Ministry of Commerce is currently reviewing over 110 commercial regulations to enhance the business environment. These include reforms to the Companies Law, Franchise Law, Anti-Concealment Law, and E-Commerce Law, as well as expanding the role of the National Competitiveness Center.
Al-Qasabi added: “We succeeded in launching an extensive corrective campaign, allowing business owners to voluntarily adjust their status. This contributed to a significant drop in concealment cases and a notable increase in compliance.”
As of April 2025, the Kingdom has more than 1.7 million commercial registrations, including 90,000 in Asir — representing 5.3 percent of the national total.
According to Al-Qasabi, between 2018 and 2025, joint-stock companies in Saudi Arabia grew by 76 percent, from 2,300 to 4,000. Limited liability companies surged by 138 percent to 386,000, while sole proprietorships rose 32 percent to reach 1.2 million.
Al-Qasabi also revealed that Saudi Arabia aims to finalize 20 free trade agreements by 2030.
Capital Market Authority Chairman Mohammed El-Kuwaiz addressed efforts to mobilize regional investment through financial markets, including accessible financing mechanisms and regulatory support.
Tourism, a key pillar of the Asir strategy, featured prominently throughout the forum. The Saudi tourism minister emphasized the region’s competitive edge.
“The region’s rich natural and cultural assets are key drivers of tourism investment, which is essential for sustainable development and community empowerment,” Al-Khateeb said.
Figures released on the Ministry of Tourism’s X account during the event showed tourism momentum accelerating. Domestic tourism rose 11 percent year-on-year in the first quarter of 2025 to 1.4 million Saudi visitors. International tourism surged 42 percent to 68,900 visitors.
Tourism-related employment also climbed, with 47,700 jobs recorded — a 2.5 percent increase since late 2024.
The Saudization rate stood at 16.2 percent, with gender participation balanced. In Ministry-supervised sectors, 2,600 jobs were recorded, with a 29 percent Saudization rate and near-equal gender representation.
The concurrent exhibition showcased key regional projects and institutional stakeholders, highlighting growing public-private collaboration in the Asir region.
The forum concluded with a reaffirmation of Asir’s role as a cornerstone of Saudi Arabia’s diversification strategy — one that aims to balance economic opportunity with cultural preservation and long-term sustainability.
Saudi wealth fund, Kings League join forces to reshape sports entertainment
Updated 27 May 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Public Investment Fund and the Kings League have agreed to form a joint venture to transform sports entertainment in the Middle East, with the Kingdom set to host the inaugural season.
The new collaboration, unveiled on May 27, is set to commence later this year, delivering an innovative, digital-first sporting experience tailored for the MENA region.
SURJ Sports Investment, a subsidiary of Saudi Arabia’s PIF Fund, has partnered with Kings League to launch Kings League MENA, a regional version of the seven-a-side football competition founded by former footballer Gerard Pique, according to a statement from SURJ.
Saudi Arabia’s sports sector is undergoing rapid expansion, with its market value projected to grow from $8 billion to $22.4 billion by 2030, driven by rising investment and a strategic national focus on the industry.
Since 2019, the Kingdom has hosted more than 100 major international events across 40 different sports, reinforcing its ambition to become a global hub for sports and entertainment under Vision 2030.
A 2024 report by SURJ highlighted that the sector’s contribution to the Kingdom’s gross domestic product grew from $2.4 billion in 2016 to $6.9 billion in 2019.
Danny Townsend, CEO of SURJ Sports Investment, said: “Kings League MENA is unlike anything the region has seen. We’re bringing an entirely new model to market — one that celebrates football’s competitive spirit while embracing the energy of digital creators, fans, and youth culture.”
Townsend added that the venture aligns with his company’s broader mission to invest in sports intellectual property and supporting platforms that generate sustainable returns, expand the ecosystem, and engage the region’s next generation of fans.
Djamel Agaoua, CEO of Kings League, expressed his thrill to take the Kings League into MENA through this “exciting” partnership with SURJ.
“Saudi Arabia is the perfect launchpad for a league that’s bold, fan-first, and digitally native. Together, we’re building a platform that fuses entertainment, sport, and digital culture – one that’s tailor-made for this region’s energy and ambition,” Agaoua said.
The official release stated: “The announcement is a major milestone in the evolution of sports entertainment across the region. With a format that fuses competitive football, gamified rules, and celebrity streamer team owners, Kings League MENA is designed to captivate young audiences and set a new benchmark for fan engagement in global sport.”
The report highlighted that 80 percent of Kings League’s 30 million global social media followers are under the age of 34, while nearly 70 percent of Saudi Arabia’s population is under 30. This makes the league well-aligned with the digital habits and entertainment preferences of the region’s younger generation.
Developed jointly by the two entities, the MENA league, soon to become the seventh addition to the Kings League’s global portfolio, will showcase regional football talent, digital-first content, and immersive live events.
In its announcement, SURJ stated that details regarding team identities, celebrity owners, and the competition format will be disclosed as the league approaches its inaugural kickoff.
It added that the venture plans to engage local talent through open tryouts, draft mechanisms, and community activations, aiming to cultivate a new pipeline of football and content creation talent across the Arab world.
According to data from Statista, the broader Middle East and North Africa sports market is also projected to expand, with revenues increasing from $4.79 billion in 2024 to $5.57 billion by 2029.
Closing Bell: Saudi main index slips to close at 10,925
Updated 27 May 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 150.78 points, or 1.36 percent, to close at 10,925.18.
The total trading turnover of the benchmark index was SR5.11 billion ($1.36 billion), with 21 stocks advancing and 227 declining.
The Kingdom’s parallel market, Nomu, also shed 188.50 points to close at 26,592.04.
The MSCI Tadawul Index dropped by 1.27 percent to 1,398.58.
United Cooperative Assurance Co. was the top performer on the benchmark index, with its share price rising 3.16 percent to SR7.50.
Bonyan REIT Fund also advanced, gaining 1.63 percent to SR9.35.
Jahez International Co. for Information System Technology saw its shares climb 1.33 percent to SR25.15.
Conversely, Almoosa Health Co. saw its share price edge down by 6.90 percent to SR143.
United Carton Industries Co., which debuted on the main market on Tuesday, also declined, with its share price falling 1.50 percent to SR49.25.
On the announcements front, Gas Arabian Services Co. disclosed that it had signed two contracts worth SR830.64 million with Saudi Power Procurement Co.
According to a statement on Tadawul, the first contract, valued at SR504.32 million, covers the construction of gas pipeline networks to supply the Nairyah Independent Power Project.
The second contract, worth SR326.32 million, involves building gas pipeline infrastructure for the Rumah IPP.
Gas Arabian Services said the financial impact of these agreements will be reflected in its financial statements from 2025 through 2027.
Following the announcement, the company’s share price slipped 0.51 percent to SR15.70.
S&P affirms Abu Dhabi, RAK ratings on strong fiscal base
Updated 27 May 2025
MOHAMMED AL-KINANI
JEDDAH:Global credit rating agency S&P has reaffirmed Abu Dhabi’s “AA” rating and Ras Al-Khaimah’s “A” rating, citing robust fiscal management, infrastructure-led growth, and continued progress in economic diversification as key drivers of their sovereign credit standings.
Abu Dhabi’s rating was confirmed with a stable outlook, underpinned by what S&P describes as one of the strongest government balance sheets globally and ongoing initiatives to strengthen the emirate’s non-oil economy.
Ras Al-Khaimah’s rating was similarly upheld, thanks to strong tourism-driven momentum and sustained investments in infrastructure.
The UAE’s overall economic performance further supports these ratings. According to S&P, the nation’s gross domestic product rose by 3.8 percent year on year in the first nine months of 2024. The non-oil sector was the main contributor, expanding by 4.5 percent to 987 billion dirhams ($268.74 billion).
As the capital, Abu Dhabi plays a central role in the UAE’s macroeconomic profile. “Abu Dhabi has a very wealthy economy, but growth rates remain volatile because about 50 percent of economic output comes from the hydrocarbon sector,” the report noted.
Looking ahead, the agency forecasts the UAE’s economy will remain resilient, projecting 2.5 percent growth in 2025. This outlook is driven by vigorous non-oil activity and increased oil production, with regional geopolitical tensions expected to have limited domestic impact due to the UAE’s internal stability.
S&P expects oil production to rise modestly over the medium term, supported by the relaxation of OPEC+ quotas. Output is anticipated to increase from 2.95 million barrels per day in 2023–24 to 3.04 million bpd in 2025, potentially reaching 3.50 million bpd by 2028. With a total capacity of up to 4.85 million bpd and new gas projects underway, the UAE holds significant upside potential for growth and fiscal surplus enhancement.
The report emphasized Abu Dhabi’s structural reforms aimed at improving the business climate and attracting foreign investment. These include the introduction of a law permitting 100 percent foreign ownership, liberalized personal and family laws, and the Golden Visa Program, which offers long-term residency to investors, entrepreneurs, and skilled professionals.
Despite regional uncertainties, Abu Dhabi’s economic outlook remains secure. A strategic asset in this stability is the Abu Dhabi Crude Oil Pipeline, which allows around half of the emirate’s crude exports to bypass the Strait of Hormuz via the Fujairah Oil Terminal. Additionally, substantial fiscal reserves provide a critical buffer against potential financial shocks.
S&P highlighted the emirate’s fiscal and external strength, noting that while hydrocarbons account for 70 to 75 percent of government revenues, Abu Dhabi maintains one of the largest net asset positions among rated sovereigns, estimated to reach 327 percent of GDP by 2025.
“At the same time, the UAE government has pledged to make the country carbon neutral by 2050 and plans to invest heavily in alternative energy sources that are both renewable and clean,” the report added.
Smaller emirates like Dubai, Ras Al-Khaimah, and Sharjah are also expected to benefit from federal financial backing, particularly from Abu Dhabi, if necessary. Their combined direct debt is projected to reach about 30 percent of Abu Dhabi’s GDP by 2025. Even when accounting for government-related entity debt, Abu Dhabi’s balance sheet is expected to remain in a net asset position above 100 percent of GDP.
Due to limited external data specific to Abu Dhabi, S&P used UAE-wide figures to assess the emirate’s external standing. The report pointed to significant external assets, primarily managed by the Abu Dhabi Investment Authority, as a core strength.
The UAE’s external liquid assets are forecast to exceed its external debt by roughly 215 percent of current account payments over 2025–28. However, gross external financing needs will remain relatively high, at 132 percent.
The Central Bank of the UAE maintains a base interest rate of 4.4 percent, in line with the US Federal Reserve, due to the dirham’s peg to the US dollar. Inflation rose slightly to 0.5 percent in 2024 and is expected to remain modest at 1.3 percent through 2028.
Turning to Ras Al-Khaimah, S&P anticipates that economic growth will ease slightly to an average of 3.3 percent in 2025-26, down from an estimated 3.5 percent in 2024, due to less favorable external conditions.
“We expect RAK’s fiscal performance to remain strong despite higher infrastructure spending in the next two to three years,” the report stated.
RAK’s growth is projected to accelerate to an average of 4.3 percent in 2027-28, driven by key sectors such as tourism, real estate, manufacturing, and mining. Conservative fiscal practices are expected to continue, with budget surpluses averaging 2 percent of GDP from 2025 through 2028.
These surpluses are supported by stable revenues and limited debt, allowing RAK to maintain a net government asset position averaging 21 percent of GDP over the same period. Federal backing remains a financial safety net, easing any potential funding challenges.
RAK posted a fiscal surplus of 2.9 billion dirhams in 2024 — 6.5 percent of its GDP — primarily driven by strong dividends from state-owned firms like RAK Ports and Marjan, solid municipal revenues, and reduced capital spending. Land sales from Marjan are expected to continue supporting fiscal performance, with additional revenues from corporate taxes and hospitality anticipated from 2027 onward. However, fiscal surpluses may moderate as infrastructure spending rises.
S&P concluded that both Abu Dhabi and Ras Al-Khaimah are well-positioned to weather global economic uncertainties. Abu Dhabi’s deep fiscal reserves and mature capital markets complement RAK’s targeted tourism investments and expanding non-oil economy—together reinforcing the UAE’s broader strategy of economic diversification.
