PIF-owned SITE and Korean AhnLab forge cybersecurity venture for Saudi market

The new entity is expected to be launched during the first half of 2024. Supplied.
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Updated 01 April 2024
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PIF-owned SITE and Korean AhnLab forge cybersecurity venture for Saudi market

RIYADH: The Saudi market is poised to benefit from advanced cybersecurity solutions through a new venture established by a Public Investment Fund-owned company and Korean firm AhnLab. 

Saudi Information Technology Co., also known as SITE, will hold a 75 percent stake in the local joint venture to be set up in the Kingdom, with the East Asian-based company holding the remaining 25 percent, according to a press release. 

The new entity is expected to be launched during the first half of 2024, subject to customary regulatory approvals and the fulfillment of certain commercial conditions, it added. 

Saad Al-Aboodi, CEO of SITE, said: “This new joint venture is one of many ambitious investments that SITE is developing. We recognize our strategic role to localize top-tier cybersecurity technologies in our country and the region as a whole, to address the ever-growing market dynamics and demands while maintaining the highest standards of excellence to our clients in both the public and private sectors.” 

The JV will market, offer, and localize AhnLab’s cybersecurity solutions and services to clients in Saudi Arabia. This includes the company’s cloud and artificial intelligence-based platform, which collects and analyzes logs from various systems, aiding customers in prioritizing and managing cyber risks. 

The partnership also aims to expand the new company’s services, including generative AI security, to the Middle East and North Africa region in the future. 

“The establishment of this joint venture signifies a long-term cooperation based on the competitive strengths of both companies to grow together in the Middle East region,” said Suk-Kyoon Kang, CEO of AhnLab, in the release.

“Through the new JV, we expect to jointly tailor our technologies, such as cybersecurity, cloud and AI, to the needs of the markets of the Middle East, including Saudi Arabia, and accelerate global growth,” he added.

In conjunction with the establishment of this company, SITE Ventures, a wholly owned subsidiary of SITE, will acquire a 10 percent stake in AhnLab to further strengthen business cooperation.

The investment amount is approximately SR206 million ($54.93 million), with a payment due date of June 27, the release noted. 

This falls within SITE’s goal to contribute through its national capabilities and international partnerships to the development of innovative offerings in cybersecurity, cloud computing and software development as well as human capital development in the Kingdom.


Gold retreats on firm US dollar, en route third weekly gain

Updated 7 sec ago
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Gold retreats on firm US dollar, en route third weekly gain

  • Gold hit record high of $3,057.21 per ounce on Thursday
  • Silver, platinum, palladium poised for weekly declines

BENGALURU: Gold prices retreated on Friday as the dollar firmed and investors booked profits after bullion hit three successive all-time peaks this week, buoyed by safe-haven demand amid trade war concerns and hopes of a rate cut by the Federal Reserve later this year.

Spot gold was down 0.4 percent to $3,033.36 an ounce as of 11:48 a.m. Saudi time. US gold futures eased 0.1 percent to $3,039.60.

Bullion was on track for a third straight weekly gain, having added 1.6 percent so far this week. It hit an all-time high of $3,057.21 per ounce on Thursday.

“Spot gold is seeing a healthy pullback after surging to fresh record highs above $3k, with the dollar’s recent resilience also prompting gold to ease lower,” said Han Tan, Exinity Group’s chief market analyst.

The US dollar was up 0.2 percent on Friday making greenback priced bullion more expensive for overseas buyers.

“Gold’s uptrend is set to remain intact as long as risk-on sentiment fails to find its grip, especially as the April 2 deadline draws near for the next wave of US tariffs,” Tan said.

US President Donald Trump still intends for new reciprocal tariff rates to take effect on that date.

A whirlwind of factors, including geopolitical tensions and economic uncertainty, have propelled gold to 16 record highs, with four above the crucial $3,000 mark.

“ETP (Exchange Traded Products) demand could continue to lead gold prices higher, even in the face of weakening physical demand across India and China,” said Standard Chartered analyst Suki Cooper in a note dated Thursday.

Gold, traditionally viewed as a safe-haven investment during times of inflation or economic volatility, tends to do well in a low-interest rate environment.

The Fed held its benchmark rate steady as expected on Wednesday. Policymakers see the central bank delivering two quarter-percentage-point cuts by year-end.

Spot silver slid 1.5 percent to $33.04 an ounce, platinum lost 0.4 percent to $981.05, and palladium shed 0.4 percent to $948.43. All three were poised for weekly losses.
 


Oil Updates — crude set for 2nd straight weekly gain on Iran sanctions, planned OPEC+ cuts

Updated 21 March 2025
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Oil Updates — crude set for 2nd straight weekly gain on Iran sanctions, planned OPEC+ cuts

NEW YORK/SINGAPORE: Oil prices rose on Friday, and were set for second consecutive weekly gains, as fresh US sanctions on Iran and a new plan from OPEC+ to cut output raised bets on tighter supply.

Brent crude futures climbed 14 cents, or 0.2 percent, to $72.14 per barrel by 9:42 a.m. Saudi time. US West Texas Intermediate crude futures were up 16 cents, also 0.2 percent, to $68.23 a barrel.

On a weekly basis, both Brent and WTI were on track to rise about 2 percent, their biggest weekly gains since the first week of 2025.

The US Treasury on Thursday announced new Iran-related sanctions, which for the first time targeted an independent Chinese refiner among other entities and vessels involved in supplying Iranian crude oil to China.

The sanctions on Chinese entities were “a clear escalation in sanctions policy,” analysts at RBC Capital Markets said in a note on Friday.

“While the physical implications are minimal, we think it reasonable that risk premium here is taken more seriously,” they wrote.

That marked Washington’s fourth round of sanctions against Iran since US President Donald Trump in February promised to reimpose a “maximum pressure” campaign on Tehran, pledging to drive the country’s oil exports to zero.

Analysts at ANZ Bank said they expect a 1 million barrels per day reduction in Iranian crude oil exports because of tighter sanctions. Vessel tracking service Kpler pegged Iranian crude oil exports at over 1.8 million bpd in February.

Oil prices were also supported by a new OPEC+ plan announced Thursday for seven members to further cut output to make up for producing more than agreed levels. The plan would represent monthly cuts of between 189,000 bpd and 435,000 bpd, and will last until June 2026.

OPEC+ earlier this month confirmed that eight of its members would proceed with a monthly increase of 138,000 bpd from April, reversing some of the 5.85 million bpd of output cuts agreed in a series of steps since 2022 to support the market.

“While the group shares a plan for compensation cuts, it certainly doesn’t mean members will follow it. A handful of members have consistently produced above their target production levels,” ING analysts said in a note on Friday. 


Closing Bell: Saudi main index closes in green at 11,760

Updated 20 March 2025
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Closing Bell: Saudi main index closes in green at 11,760

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 50.89 points, or 0.43 percent, to close at 11,760.32.

The total trading turnover of the benchmark index was SR5.89 billion ($1.57 billion), as 123 of the listed stocks advanced, while 109 retreated.   

The MSCI Tadawul Index increased by 6.13 points, or 0.41 percent, to close at 1,490.20.

The Kingdom’s parallel market Nomu dipped, losing 162.11 points, or 0.53 percent, to close at 30,521.53. This comes as 43 of the listed stocks advanced while 31 retreated.

The best-performing stock was Rabigh Refining and Petrochemical Co., with its share price surging by 9.87 percent to SR7.68.

Other top performers included Retal Urban Development Co., which saw its share price rise by 4.96 percent to SR16.50, and Ades Holding Co., which saw a 4.38 percent increase to SR16.70.

The worst performer of the day was Sinad Holding Co., whose share price fell by 6.91 percent to SR12.40.

Gulf General Cooperative Insurance Co. and SICO Saudi REIT Fund also saw declines, with their shares dropping by 6.19 percent and 5.18 percent to SR9.55 and SR3.66, respectively.

On the announcements front, Amwaj International Co. announced its financial results for 2024, with net profits reaching SR6.3 million, down by 60.1 percent compared to the previous year.

In a statement on Tadawul, the company attributed the decrease to restructuring inventory and marketing mix to accommodate new technology, which has a higher demand level and profit margin than before. 

“The addition of new products will positively impact sales and results for 2025 and will boost cash flow,” the statement said.

In another announcement, Gulf General Cooperative Insurance Co. revealed its annual financial results for 2024.

The company’s insurance revenues in 2024 reached SR414.3 million, up from SR315.6 million in the previous year, marking a 31.2 percent surge. 

This was principally driven by business growth and an increase in the motor line of business, according to a statement by the firm.

In today’s trading session, the group’s shares traded 6.19 percent lower on the main market to close at SR9.55.

Saudi Printing and Packaging Co. also announced its annual financial results for last year.

The company’s net loss surged to SR219.4 million from SR132.3 million in the previous year due to establishing a provision for credit losses in trade receivables and recording impairment in fixed assets, inventory, and goodwill.

In Thursday’s session, the firm’s shares traded 2.43 percent lower on the main market to close at SR10.42.

On another note, Saudi Industrial Investment Group has announced that its board of directors has recommended a share buyback of up to 11 million ordinary shares, subject to approval by the Extraordinary General Assembly. 

In a statement on Tadawul, the group said that the buyback aims to hold 10 million shares as treasury while allocating 1 million shares to the company’s long-term employee incentives program. 

The repurchase will be financed through internal resources, and the acquired shares will not carry voting rights in General Assembly meetings.

SIIG will comply with regulatory solvency requirements, with a solvency report from external auditors to be included in the EGA approval process.

In today’s trading session, SIIG’s shares traded 1.72 percent higher on the main market to close at SR15.36.


Saudi Aramco unveils direct air capture tech to reduce emissions

Updated 20 March 2025
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Saudi Aramco unveils direct air capture tech to reduce emissions

JEDDAH: Saudi Aramco has unveiled the Kingdom’s first direct air capture test unit, marking a significant milestone in its mission to reduce emissions and advance carbon capture technology for a sustainable future.

The unit is capable of removing 12 tonnes of carbon dioxide from the atmosphere each year, according to an official statement from Aramco.

As the world’s leading integrated energy and chemicals company, Aramco emphasized that the pilot plant, developed in partnership with Siemens Energy, represents a crucial step in enhancing DAC capabilities.

Ali A. Al-Meshari, Aramco’s senior vice president of technology oversight and coordination, highlighted that direct carbon dioxide capture technologies will play a pivotal role in mitigating greenhouse gas emissions, particularly in industries that are difficult to decarbonize.

“The test facility launched by Aramco is a key step in our efforts to scale up viable DAC systems, for deployment in the Kingdom of Saudi Arabia and beyond. In addition to helping address emissions, the CO2 extracted through this process can in turn be used to produce more sustainable chemicals and fuels.” Al-Meshari said.

The development is in line with Saudi Arabia’s commitment to achieving net-zero emissions by 2060, following a circular carbon economy approach that emphasizes reducing, reusing, recycling, and removing carbon.

This initiative also supports the Saudi Green Initiative, which aims to reduce carbon emissions by 278 million tonnes annually by 2030 and transition 50 percent of the country’s energy sources to renewables.

The project reflects Aramco’s strong commitment to carbon capture, a critical component of its goal to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.

Aramco plans to use the new facility as a testing ground for next-generation CO2 capture materials specifically designed for Saudi Arabia’s unique climate. Additionally, the company aims to drive down costs, promoting the quicker adoption of DAC technologies in the region.

As part of its circular carbon economy strategy, Aramco is exploring methods for capturing CO2 both at emission sources and directly from the atmosphere, incorporating cutting-edge technological solutions, as stated in the company’s announcement.

In partnership with Siemens Energy, Aramco intends to scale up the technology and lay the groundwork for large-scale DAC facilities in the future.

Furthermore, the DAC test facility launch comes shortly after Aramco, along with its partners Linde and SLB, signed a shareholders’ agreement to develop a carbon capture and storage hub in Jubail. Phase one of the hub will have the capacity to capture 9 million tonnes of CO2 from three Aramco gas plants and other industrial sources.

In October 2023, Saudi Aramco announced its collaboration with major international companies to develop emissions reduction solutions, including lower-carbon hydrogen, direct air capture of CO2, and an innovative approach to CO2 storage.


Saudi Arabia’s US Treasury holdings see $10.6bn adjustment

Updated 20 March 2025
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Saudi Arabia’s US Treasury holdings see $10.6bn adjustment

RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $126.9 billion in January, reflecting a $10.6 billion decrease from December, according to the latest US Treasury data. 

This marks a 7.71 percent month-on-month decline.

The change could reflect market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions.

Official data showed that Saudi Arabia retained its 17th position among the largest holders of US Treasury securities in January. It remains the only Gulf Cooperation Council country to rank among the top 20 holders. 

In a press release, the US Department of the Treasury said: “The sum total in January of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) outflow of $48.8 billion. Of this, net foreign private outflows were $74.8 billion, and net foreign official inflows were $26.0 billion.” 

The Kingdom’s holdings rose 1.4 percent in December compared to November, the report noted. 

Saudi Arabia’s portfolio was split between $105.3 billion in long-term bonds — accounting for 83 percent of the total — and $21.6 billion in short-term bonds, representing 17 percent. 

The press release noted that foreign residents increased their holdings of long-term US securities by $200 million, with private investors buying $59.2 billion, while foreign official institutions recorded net sales of $59 billion.

US residents also increased their holdings of long-term foreign securities, with net purchases totaling $45.4 billion. 

Meanwhile, foreign residents boosted their US Treasury bill holdings by $32.3 billion, contributing to a $53.9 billion rise in total dollar-denominated short-term US securities. 

Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $57.5 billion. 

Top holders of US Treasury bonds 

Japan remained the largest investor in US Treasury securities in January, with holdings totaling $1.07 trillion, a 1.9 percent increase from December. 

China ranked second with $760.8 billion in holdings, followed by the UK at $740.2 billion. Luxembourg and the Cayman Islands were ranked fourth and fifth on the list, with treasury holdings amounting to $409.9 billion and $404.5 billion. 

Belgium secured the sixth spot with holdings worth $377.7 billion, closely followed by Canada with portfolios of $350.8 billion. 

France came in eighth with treasury reserves worth $335.4 billion, followed by Ireland and Switzerland, with assets amounting to $329.7 billion and $301.1 billion, respectively. Taiwan was ranked 11th on the list, with treasury holdings worth $290.4 billion. 

Hong Kong occupied the 12th spot with assets amounting to $255.9 billion, followed by Singapore and India, with holdings worth $247.6 billion and $225.7 billion, respectively. 

Brazil held US treasury holdings worth $199.1 billion by the end of January. Norway followed with its holdings standing at $173.1 billion.