Saudi Arabia to host Global Logistics Forum in October 

Saudi Arabia had three facilities in Lloyd's List One Hundred Ports 2024. SPA
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Updated 25 September 2024
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Saudi Arabia to host Global Logistics Forum in October 

RIYADH: Saudi Arabia's transportation and supply chain sector evolution will be a central topic as top leaders discuss innovative strategies and advancements at the Global Logistics Forum in Riyadh. 

The event, set to take place from Oct. 12-14, comes as investment in the sector is surging, with a 76 percent increase in new businesses registered in the second quarter of 2024, making logistics the fastest-growing sphere in the Kingdom. 

Spearheaded by the Ministry of Transport and Logistic Services, the sector is undergoing significant changes to solidify the Kingdom's pivotal role in global trade. This transformation focuses on using advanced technologies to promote sustainability and improve infrastructure and transportation solutions, the Saudi Press Agency reported. 

The forum highlights the Kingdom's initiatives to develop and strengthen logistics centers, improving domestic and international connectivity. 

The three-day event is expected to gather over 100 speakers and participants, including industry leaders and government representatives.

This year's forum will also attract over 10,000 participants from leading global organizations who will address pressing logistics challenges with discussions on sustainability, supply chain resilience, workforce advancement, and technology adoption. 

The agenda includes keynote speeches, dialogue sessions, and bilateral meetings, fostering innovative, sustainable visions for the industry's future.

The event falls in line with Saudi Arabia's strategic location as a trade corridor between Asia, Africa, and Europe and aligns well with the nation's goal to consolidate its position as a global logistics hub under Vision 2030 and the National Transport and Logistics Strategy. 

These initiatives and efforts have propelled Saudi Arabia up 17 positions in the World Bank's Logistics Performance Index.

The Kingdom's port standings have also advanced, with the country climbing to 15th place globally in annual container handling. 

Three Saudi hubs were mentioned in Lloyd's List One Hundred Ports 2024, a testament to the country's growing influence in logistics and support for economic growth.  

The civil aviation sector is equally dynamic, highlighted by the Saudia Group's record-setting purchase of 105 Airbus planes and growing investment opportunities at airports. 

These developments are establishing new standards for global connectivity and infrastructure.  

This momentum marks a new era of leadership and innovation, aligned with national ambitions to redefine global trade and logistics under the ministry's sustainable and technologically progressive leadership.

The Kingdom presents substantial opportunities for global logistics players. With a population of approximately 36 million and a gross domestic product of $1.81 trillion in purchasing power parity as of the end of 2023, Saudi Arabia is a central hub for expansive trade routes supported by world-class infrastructure.  

Another major catalyst for growth is the Kingdom securing the bids for Expo 2030 and the 2034 FIFA World Cup — both of which will attract substantial global business opportunities, opening new channels for trade and commerce.


Kuwait sovereign wealth fund head says investors reduce US exposure at their ‘own risk’

Updated 4 sec ago
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Kuwait sovereign wealth fund head says investors reduce US exposure at their ‘own risk’

DOHA: The head of the Kuwait Investment Authority, which manages almost $1 trillion in assets, said the sovereign wealth fund is committed to investing in the US and that investors cut allocations to US assets at their own risk.
Some global investors have ditched US assets in recent weeks on fears that US President Donald Trump’s overhaul of global trade may hurt the US economy, and could cause deeper long-term damage.
The trend looks set to continue, given that a record number of managers have said they plan to keep cutting their exposure to US assets, according to BofA research.

Kuwait has been investing in the US market for a “long time” and that “won’t change,” KIA Managing Director Sheikh Saoud Salem Abdulaziz Al-Sabah said at an investment conference in the Qatari capital on Wednesday.
“I would say it very bluntly, underweight America at your own risk,” he said.
Last week, Moody’s downgraded the US sovereign credit rating by one notch, citing concerns about the nation’s growing $36 trillion debt pile, which could make investors more cautious and drive up borrowing costs across the economy.
“They (investors) are merely looking at equity markets, but they’re not taking into fact the US has the largest fixed income market, the US has the largest private equity market, the real estate market, infrastructure and credit,” Al-Sabah said.
“I think the US has the breadth and depth to sustain its exceptionalism and it has the rule of law as well,” he said.


Jewelry spending up 13% in Saudi Arabia as weekly POS stays above $3.2bn: SAMA

Updated 54 min 10 sec ago
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Jewelry spending up 13% in Saudi Arabia as weekly POS stays above $3.2bn: SAMA

RIYADH: Jewelry spending in Saudi Arabia rose by 13.2 percent between May 11 and 17 compared to the previous week, adding SR330.4 million ($88 million) to point-of-sale transactions during this period. 

The latest data from Saudi Arabia’s central bank, SAMA, revealed that it was one of only two sectors to record growth during the period, with education also posting an increase of 1.4 percent to SR164.6 million. 

The Kingdom’s overall POS transactions saw a 5.5 percent dip to SR12.3 billion in the seven-day period, driven by decreased spending across most of the sectors. 

Hotels spending saw the biggest drop, dipping by 18.1 percent to SR218.2 million. Clothing and footwear expenditure followed, falling by 10.4 percent to SR688.2 million, while recreation and culture saw a 9.3 percent decrease, totaling SR229.4 million. 

The smallest expenditure drop was in spending on construction and building material and gas stations, down by 1.7 percent each to SR330.1 million and SR929.7 million, respectively. 

The health sector declined by 4.8 percent to SR790.1 million, while public utilities dropped 4.3 percent to SR47 million. 

Electronics followed the trend, dropping 4.5 percent to SR1653.8 million, and furniture edging down by 3.7 percent to SR261.8 million. 

The telecommunication sector dropped by 5.5 percent in transaction value to SR98.3 million. Food and beverage spending decreased by 4.7 percent to SR1.8 billion, accounting for the largest share of the week’s POS. 

Restaurants and cafes accounted for the second-biggest share at SR1.7 billion, followed by miscellaneous goods and services at SR1.5 billion. 

The top three categories accounted for 41.1 percent of the week’s total spending, amounting to SR5 billion. 

Geographically, Riyadh dominated POS transactions, with expenditure in the capital reaching SR4.5 billion — a 3.4 percent decrease from the previous week. 

Jeddah followed with a 7 percent dip to SR1.7 billion, while Dammam ranked third, down 5.7 percent to SR640.5 million. 

Makkah saw the biggest decrease, inching down 20.6 percent to SR393.3 million, followed by Abha with a 9.7 percent downtick to SR153.5 million. 

In transaction volume, Hail recorded 3.7 million deals, down 2 percent, while Tabuk reached 4.7 million transactions, up by 0.2 percent. 


Oil Updates — crude gains as reports Israel may attack Iran raise supply worries

Updated 21 May 2025
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Oil Updates — crude gains as reports Israel may attack Iran raise supply worries

  • US intelligence suggests Israel plans to strike Iran, CNN says
  • US-Iran nuclear talks show little progress, impacting oil market

SINGAPORE: Oil prices gained more than 1 percent on Wednesday after reports of Israel preparing a strike on Iranian nuclear facilities raised fears that a conflict could upset supply availability in the key Middle East producing region.

Brent futures for July rose 68 cents, or 1.04 percent, to $66.06 a barrel, by 9:30 a.m. Saudi time. US West Texas Intermediate crude futures for July climbed 70 cents, or 1.1 percent, to $62.73.

New intelligence obtained by the US suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple US officials familiar with the matter.

It was not clear whether Israeli leaders have made a final decision, CNN added, citing the officials.

“Such an escalation would not only put Iranian supply at risk, but also in large parts of the broader region,” said ING commodities strategists on Wednesday.

Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries and an Israeli attack could upset flows from the country.

There are also concerns Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz choke point in the Gulf, through which Saudi Arabia, Kuwait, Iraq and the UAE export crude oil and fuel.

The US and Iran have held several rounds of talks this year over Iran’s nuclear program, with US President Donald Trump reviving a campaign of stronger sanctions on Iranian crude exports to compel them to give up their nuclear aspirations.

Despite the discussions, US officials and the Iranian Supreme Leader Ayatollah Ali Khamenei made comments on Tuesday indicating both sides remain far from a resolution.

“There are indirect nuclear talks between the US and Iran, which, if successful, could give the market further upside. However, these talks appear to be running out of steam,” the ING analysts said.

Still, there were some signs of improving crude supply. US crude oil stocks rose last week while gasoline and distillate inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.

Crude stocks in the US, the world’s biggest oil consumer, rose by 2.5 million barrels in the week ended May 16, the sources said on condition of anonymity.

Investors are looking ahead to government US oil stock data from the Energy Information Administration later on Wednesday.

Also, Kazakhstan’s oil production has risen by 2 percent in May, an industry source said on Tuesday, an increase that defies pressure from OPEC+ on the country to reduce its output.


Saudi Arabia surpasses $1bn sukuk milestone with May issuance

Updated 20 May 2025
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Saudi Arabia surpasses $1bn sukuk milestone with May issuance

RIYADH: Saudi Arabia’s National Debt Management Center has surpassed the $1 billion threshold in its latest sukuk issuance, raising SR4.08 billion ($1.08 billion) in May through riyal-denominated offerings.

This marks a 9.09 percent increase from April and reflects a significant 54.5 percent rise compared to March, when SR2.64 billion was raised.

The May issuance continues the Kingdom’s strong momentum in the domestic debt market, following SR3.72 billion raised in January and SR3.07 billion in February. The consistent monthly issuances highlight growing investor interest in Shariah-compliant fixed-income instruments, as global financial markets adjust to a higher interest rate environment.

Sukuk, the Islamic equivalent of bonds, are structured to comply with Shariah principles, which prohibit interest-based transactions.

Instead, investors receive returns derived from partial ownership in tangible assets or investment activities, aligning with Islamic finance ethics.

According to the NDMC, the May offering was divided into four tranches. The first tranche amounted to SR489 million and is set to mature in 2029. The second was valued at SR1.004 billion and will mature in 2032. The third tranche, totaling SR1.28 billion, is due in 2036, while the largest portion of the issuance, worth SR1.3 billion, will mature in 2039.

Saudi Arabia’s debt market has seen rapid growth in recent years, as domestic and international investors seek diversification and stable returns. A report released in April by the Kuwait Financial Center, also known as Markaz, noted that Saudi Arabia led the Gulf Cooperation Council’s debt market in the first quarter of 2025. The Kingdom accounted for 60.2 percent of all primary debt issuances in the region, raising $31.01 billion across 41 offerings.

In a broader outlook, S&P Global highlighted Saudi Arabia’s expanding non-oil economy and robust sukuk activity as key drivers of growth for the global Islamic finance sector.

The credit rating agency forecast global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign-currency issuances potentially totaling up to $80 billion, assuming stable market conditions.

Furthermore, a December 2024 report by Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, approximately $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s dominant position in the region’s debt landscape.


Closing Bell: Saudi main index closes in green at 11,438

Updated 20 May 2025
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Closing Bell: Saudi main index closes in green at 11,438

  • MSCI Tadawul Index increased by 0.40 points, to close at 1,460.79
  • Parallel market Nomu rose 28.91 points, to end at 27,528.56

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 32.90 points, or 0.29 percent, to close at 11,438.18.

The total trading turnover of the benchmark index was SR4.85 billion ($1.29 billion), as 132 of the listed stocks advanced, while only 106 retreated.

The MSCI Tadawul Index increased by 0.40 points, or 5.86 percent, to close at 1,460.79.

The Kingdom’s parallel market Nomu rose, gaining 28.91 points, or 0.11 percent, to end at 27,528.56. This comes as 31 of the listed stocks advanced, while 42 retreated.

The best-performing stock was MBC Group Co., with its share price surging by 6.01 percent to SR45.

Other top performers included National Gypsum Co., which saw its share price rise by 4.49 percent to SR21.42, and Zamil Industrial Investment Co., which saw a 4.19 percent increase to SR46.05.

The worst performer of the day was Etihad Atheeb Telecommunication Co., whose share price fell by 4.55 percent to SR100.80.

Saudia Dairy and Foodstuff Co. and CHUBB Arabia Cooperative Insurance Co. also saw declines, with their shares dropping by 2.66 percent and 2.53 percent to SR285 and SR36.60, respectively.

On the announcements front, Alinma Bank has confirmed the commencement of its offering of US dollar-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Program. 

The offering, which began on May 20, is directed at eligible investors in the Kingdom and internationally, according to a Tadawul statement. The certificates, with a minimum subscription of $200,000, are perpetual and callable after 5.5 years, with terms and pricing subject to market conditions. 

The statement added that the certificates will be listed on the London Stock Exchange’s International Securities Market.

In today’s trading session, ALINMA’s share price traded 0.55 percent higher on the main market to reach SR27.55.

Moreover, Asas Makeen Real Estate Development and Investment Co. continued receiving subscription requests for 1 million ordinary shares, equivalent to 10 percent of its capital, at a price of SR80 per share. The offering, approved by the Capital Market Authority, runs from May 19 to 25 on the Nomu parallel market. The company aims to expand its investor base and attract capital to support sustainable growth, with its managed projects exceeding SR3.75 billion in value. 

Meanwhile, Al-Khozama Investment Co. is accepting subscription requests for 422,400 ordinary shares, which is equivalent to 10.71 percent of its shares on Nomu until May 22, priced between SR99 and SR107 per share. The offering targets qualified investors and supports the company’s long-term expansion in Saudi Arabia’s hospitality and food and beverage sector.