GACA, MISA and Brazil’s Embraer sign MoU to propel aviation sector investment
Updated 03 December 2023
Arab News
RIYADH: Saudi Arabia is set to stay abreast of the latest developments in sustainability and innovation through a new agreement signed by the General Authority of Civil Aviation.
The memorandum of understanding, inked with the Kingdom’s Ministry of Investment and Brazilian multinational aerospace corporation Embraer, aims to bolster cooperation in aviation sector investments, as stated in an official release.
This initiative aligns with Saudi Arabia’s ambition to become a leader in the regional aviation sector within the next decade. It also supports the Gulf country’s broader efforts to elevate the aviation sector and achieve its target of attracting 150 million visitors by 2030, up from the initial goal of 100 million.
Under the newly signed deal, the parties will work hand in hand in an attempt to study potential areas for cooperation and investment in the field of aviation.
In addition, the three entities will also work on exploring and identifying the most suitable investment sources and strategies to support the implementation of such commercial projects.
Areas of cooperation between the institutions include exchanging knowledge and experiences in air security and safety and planning future projects in the field of commercial aviation, in addition to sustainable technology.
Moreover, other areas of collaboration include aviation supply chain integration, industry and green fuel.
As the world emerges from the shadows of the COVID-19 pandemic, Saudi Arabia has started reaping the fruit of its efforts to wean its economy off oil by increasing its focus on its travel and tourism sector.
The Kingdom’s aviation sector is witnessing rapid growth, which many analysts say is not just due to significant investments in airlines but is the result of the ongoing socioeconomic transformation process that began with the launch of Vision 2030 in 2016.
One of the several measures taken to boost the sector includes the e-visa service launched in 2019, ensuring easy access to millions of potential tourists eager to explore the art, culture, cuisine, archaeological wonders, and natural beauty of the Arabian Peninsula.
“2023 is becoming a year in which Saudi aviation (industry) has moved beyond recovery (mode) and (entered) into an era of unprecedented milestones and achievements,” Mohammed Al-Khuraisi, executive vice president of strategy and business intelligence at GACA, told Arab News in August.
Saudi banks’ March profits jump 27% on lending boom
Updated 4 sec ago
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.
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.
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, sets sights on IPO
Updated 13 min 42 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.
“Kefan is a highly trusted optician in Kuwait,” said Taher. “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.
“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.
He also paid tribute to the company’s founders, saying: “Founded by my late father, Abdulmohsen Barrak Alsabeeh, and the late Ali Essa Alwazzan, Kefan Optics is the product of their shared vision, passion, perseverance, and commitment to best practices in the field.”
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.
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.
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.
“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.”
Omnichannel strategy and future plans
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, 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.
As 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.”
Oil Updates — crude retreats as US, China growth concerns weigh
Updated 19 May 2025
REUTERS
SINGAPORE: Oil prices slipped on Monday, weighed down by Moody’s downgrade of the US sovereign credit rating and official data that showed a slowdown in the pace of China's industrial output and retail sales, according to Reuters.
Front-month Brent crude futures edged down 51 cents, or 0.8 percent, to $64.90 a barrel by 09:30 a.m. Saudi time while US West Texas Intermediate crude dropped 45 cents, or 0.7 percent, to $62.04 a barrel. The front-month June WTI contract expires on Tuesday, and the more-active July contract fell 48 cents, or 0.8 percent, to $61.49 a barrel.
Both contracts rose more than 1 percent last week after the US and China, the world’s two biggest economies and oil consumers, agreed to a 90-day pause on their trade war with sharply lower import tariffs.
Moody’s downgrade raises questions about the outlook for the US economy, and China’s data points to a bumpy road ahead for any economic recovery, said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
The Moody’s downgrade may not impact oil demand directly, but it does create more sober market sentiment, she said.
Moody’s downgraded the US sovereign credit rating on Friday over the country’s growing $36 trillion debt pile, a move that could complicate President Donald Trump’s efforts to cut taxes.
Meanwhile, in China, the world’s largest crude oil importer, official data showed growth in industrial output slowed in April, though still fared better than economists had expected.
While Beijing and Washington reached an agreement last week to roll back most tariffs imposed on each other’s goods, the short-term truce and Trump’s unpredictable approach continue to cast a shadow over China’s export-driven economy, which still faces 30 percent tariffs on top of existing duties.
Meanwhile, the outcome of Iran-US nuclear talks remains uncertain, limiting losses in oil prices.
US special envoy Steve Witkoff said on Sunday that any deal between the US and Iran must include an agreement not to enrich uranium, a comment that swiftly drew criticism from Tehran.
“There was a lot of hope being built into those talks,” IG market analyst Tony Sycamore said.
“Realistically, Iran was unlikely to ever willingly agree to peacefully give up its nuclear ambitions, which it has always maintained as being non-negotiable. More so after the collapse of its proxies, which have acted as a buffer in the past between itself and Israel,” he said, referring to Hamas, Hezbollah and the Houthis.
In Europe, tensions between Estonia and Russia rose after Moscow detained a Greek-owned oil tanker on Sunday after it left an Estonian Baltic Sea port.
In the US, producers cut the number of operating oil rigs by 1 to 473 last week, the lowest since January, Baker Hughes said in a weekly report, as they continued to focus on spending cuts that could slow US oil output growth this year.
Argaam names top CEOs of 2024 in finance, tech, health and more
Updated 19 May 2025
Arab News
RIYADH: Last week, the Argaam Financial Portal team organized the inaugural Argaam Summit, bringing together a distinguished group of experts and specialists from the financial sector to discuss the future trends of the financial market in the Kingdom of Saudi Arabia.
The summit sessions addressed a range of vital topics of interest to investors in the financial markets, including macroeconomics, global challenges, prospects for developing the Nomu Parallel Market, incentives for attracting companies to list in the financial market, as well as digital transformation and innovation in financial markets.
One of the summit’s highlights was the launch of the first edition of the Argaam Award for Best CEOs of 2024, aimed at highlighting leaders who have made a real difference in their companies.
This award reflects Argaam Financial Portal’s commitment to supporting transparency, governance, and institutional excellence. Its criteria were developed based on a precise methodology that includes the company’s financial and operational performance, the direct impact of the CEO, and the level of disclosure and transparency.
Notably, the Best CEO Award was presented in a grand ceremony for each sector based on several criteria, such as the CEO’s tenure, which must be no less than two years, and the company’s growth rates compared to the previous year in key indicators like net profits, shareholders’ equity, revenues, assets, margin improvements, return on equity, and return on assets, while considering sector-specific financial indicators.
Additionally, the company’s level of disclosure and transparency was evaluated, including the presence of transparent governance, adherence to accounting standards, and an active investor relations department.
Banking sector
Waleed Abdullah Al-Muqbil.
Waleed Abdullah Al-Muqbil, CEO of Al Rajhi Bank since 2020, has over 24 years of experience in the banking sector.
Under his leadership, the bank maintained its market share despite challenges from rising interest rates and recorded significant growth in deposits, financing, and assets.
In 2024, it surpassed its closest competitor, the National Commercial Bank — which merged with Samba Bank — becoming the leader among Saudi banks in customer deposits and financing. The bank also achieved its highest quarterly profits in history and set record levels across various financial indicators.
Telecommunications sector
Aliyan bin Mohammed Al-Watied.
Aliyan bin Mohammed Al-Watied, CEO of STC Group since 2020, has over 20 years of experience in the telecommunications sector.
Under his leadership, the company expanded into new areas such as the Internet of Things, fintech, and data centers, contributing to revenue growth and increased market share in 2024.
The “Tajra2 2” strategy was adopted to enhance its role as a key enabler of digital transformation, alongside implementing a program to improve operational efficiency.
Financially, the company maintained revenue growth, achieved an increase in operating profits compared to the previous year, and continued to grow shareholders’ equity while maintaining its market share.
It also announced future dividends for the next three years, reflecting the management’s commitment to implementing its long-term strategy to investors.
Healthcare sector
Ahmed bin Saleh Baabir.
Ahmed bin Saleh Baabir, CEO of Dallah Healthcare, holds a Ph.D. in Agricultural Engineering from Iowa State University, US.
Under his leadership, Dallah Healthcare actively acquired several hospitals, increasing the number of hospitals and beds, thereby enhancing its market share in the healthcare sector.
Financially, the company continued to achieve revenue growth, recorded an increase in operating profits compared to the previous year, and maintained its position in the market.
Insurance sector
Tal Hisham Nazer.
Tal Hisham Nazer, CEO of Bupa Arabia since 2011, holds an MBA from the Wharton School, University of Pennsylvania, 2001.
Under his leadership, Bupa strengthened its position as a leader in the health insurance sector in the Kingdom, capturing a 26 percent market share in the insurance sector and 45 percent in the health insurance sector, maintaining this share despite significant market competition.
Financially, the company recorded its highest insurance revenues in 2024, supported by an increase in total written premiums, and achieved its highest profits, positively impacting shareholders’ equity, which reached record levels.
Transportation sector
Fawaz Abdullah Ahmed Danish.
Fawaz Abdullah Ahmed Danish, CEO of Budget, holds a Bachelor’s degree in Law from King Abdulaziz University, 1993.
Under his leadership, Budget maintained its market share by expanding its fleet and opening new showrooms, in addition to executing strategic acquisitions of companies like Al Alamiah Cars and Overseas Development, increasing the fleet size to over 53,000 vehicles in 2024 compared to 35,000 in 2023.
Financially, the company experienced a historic surge in revenues and profits driven by these acquisitions, with shareholders’ equity rising by approximately 45 percent compared to the previous year, reaching unprecedented levels.
Agriculture sector
Mazin Abdullah Ba Dawood.
Mazin Abdullah Ba Dawood, CEO of Al-Jouf Agricultural, holds a Bachelor’s degree in Chemical Engineering from King Abdulaziz University, 1993.
Under his leadership, the company enhanced its position as an industrial agricultural company by expanding its share in the olive oil market and opening a potato chip production plant in 2024, contributing to increased revenues.
Financially, the company achieved historic revenues in 2024, with profits and shareholders’ equity reaching their highest levels in nearly a decade, driven by a strategic transformation plan toward an integrated model combining agriculture and industry.
Retail sector
Mohammed Jalal Ali Fahmy.
Mohammed Jalal Ali Fahmy, CEO of Extra Stores, holds a Bachelor’s degree in Accounting from Ain Shams University, 1985.
Under his leadership, Extra Stores achieved its highest revenue and profit levels in 2024 since its establishment, supported by growth in the retail sector and expansion in consumer financing through “Taseel,” while maintaining market share and increasing the number of branches to 55 in three countries.
The company also embraced digital transformation and enhanced its e-commerce, with shareholders’ equity reaching its highest levels following the partial listing of its stake in United Electronics Co.
Oil and gas sector
Mohammed Farouk Abdulmajid Abdulkhaleq.
Mohammed Farouk Abdulmajid Abdulkhaleq, CEO of Addes, holds a Ph.D. in Systems and Control Engineering from Case Western Reserve University, Ohio, US.
Under his leadership, Addes faced challenges last year due to the suspension of some rigs in Saudi Arabia but successfully redistributed these rigs to new markets such as Qatar, Thailand, and Egypt, enhancing its financial performance and reducing dependence on a single market through geographic diversification.
Real estate sector
Abdullah bin Faisal Al-Braikan.
Abdullah bin Faisal Al-Braikan, CEO of Retal Urban Development, holds a Bachelor’s degree in Architecture from King Faisal University in Dammam, class of 2006.
Under his leadership, Retal achieved a record-breaking project volume in 2024 and reported its highest revenues since inception.
This growth was driven by exceptional development contracts, resulting in unprecedented gross and net profits, in addition to the highest number of units sold in the company’s history.
Information technology sector
Omar Abdullah Al-Naamani.
Omar Abdullah Al-Naamani, CEO of Solutions by STC, holds a Bachelor’s degree in Computer Engineering from King Saud University, 1994.
Under his leadership, Solutions strengthened its position in the IT sector in Saudi Arabia, capturing a market share of 22.7 percent, thanks to a series of strategic acquisitions and alliances over the past years.
The company has continued its growth trajectory since the COVID-19 pandemic, and by the end of 2024, it recorded its highest-ever revenue and profit levels, driven by an increase in cumulative contract value.
Closing Bell: Saudi main index slips to close at 11,438
Kingdom’s parallel market Nomu lost 185.50 points, or 0.67%, to close at 27,655.56
MSCI Tadawul Index lost 6.21 points, or 0.42%, to close at 1,456.55
Updated 18 May 2025
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 46.11 points, or 0.40 percent, to close at 11,438.94.
The total trading turnover of the benchmark index was SR3.68 billion ($983 million), as 85 of the stocks advanced and 153 retreated.
The Kingdom’s parallel market Nomu lost 185.50 points, or 0.67 percent, to close at 27,655.56. This comes as 26 of the listed stocks advanced while 52 retreated.
The MSCI Tadawul Index lost 6.21 points, or 0.42 percent, to close at 1,456.55.
The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 6.44 percent to SR102.40.
Other top performers included Miahona Co., with its share price rising 4.59 percent to SR26.00, and Middle East Paper Co., which surged 4.55 percent to SR29.85.
SICO Saudi REIT Fund recorded the most significant drop, falling 5.72 percent to SR4.45.
Saudi Advanced Industries Co. also saw its stock prices fall 5.11 percent to SR26.95.
Jabal Omar Development Co. also saw its stock prices decline 3.38 percent to SR24.00.
On the announcements front, Bank Albilad raised $650 million from its US dollar-denominated additional tier 1 sukuk issuance. According to a Tadawul statement, the total number of sukuk stands at 3,250 with a par value of $200,000, a return of 6.5 percent per annum, and perpetual maturity.
Bank Albilad ended the session at SR27.10, down 0.74 percent.
Sadara Basic Services Co. reported a net loss of SR1.26 billion for the first quarter of 2025, marking a 48 percent increase from the same period last year, according to a bourse filing.
The company attributed the deeper loss primarily to planned turnaround activities during the quarter, though this was partially offset by lower feedstock consumption and reduced interest expenses.
Rawasi Albina Investment Co. announced the completion of the memorandum of association and commercial registration of its new wholly owned subsidiary, Nemo Al Jazirah Co., with a capital of SR5,000.
According to a Tadawul statement, the limited liability company will begin operations after finalizing all administrative and technical incorporation requirements.
Shares of Rawasi Albina Investment Co. closed at SR4.00, gaining 2.25 percent.
Middle East Pharmaceutical Industries Co. has renewed a Shariah-compliant credit facility agreement with Alinma Bank for SR50 million.
According to a stock exchange disclosure, the one-year financing is backed by a promissory note worth SR55 million. The facility will be used to support the company’s working capital and asset financing needs.
Shares of the company ended the session at SR126.60, down 0.32 percent.
