Saudi, UAE drilling giants team up to accelerate international expansion

Special The partnership seeks to leverage Arabian Drilling’s fleet of rigs alongside Shelf Drilling’s extensive expertise to accelerate global expansion and unlock new market opportunities. File
The partnership seeks to leverage Arabian Drilling’s fleet of rigs alongside Shelf Drilling’s extensive expertise to accelerate global expansion and unlock new market opportunities. File
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Updated 02 March 2025
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Saudi, UAE drilling giants team up to accelerate international expansion

Saudi, UAE drilling giants team up to accelerate international expansion
  • Arabian Drilling, Shelf Drilling bid for 3 tenders under new strategic alliance 

RIYADH: Saudi-based Arabian Drilling and the UAE-headquartered Shelf Drilling have entered three global tenders as part of their strategic alliance to expand international operations. 

The partnership, formalized through a memorandum of understanding signed in early February, seeks to leverage Arabian Drilling’s fleet of rigs alongside Shelf Drilling’s extensive expertise to accelerate global expansion and unlock new market opportunities. 

Talking to Arab News, Ghassan Mirdad, CEO of Arabian Drilling, emphasized that the partnership aligns with the company’s long-term ambitions to expand beyond the Kingdom. 

“When we go back in time to when we were listed, part of our strategy was to grow outside of Saudi Arabia; it was clearly the intention to grow in the land market, not the offshore,” he said. “However, with the suspension of rigs, we had to accelerate the expansion out of Saudi Arabia.” 




Ghassan Mirdad, CEO of Arabian Drilling.

The alliance provides Arabian Drilling with the necessary framework to establish a presence in global markets without having to build operations from scratch. “And this (alliance) is the license to operate outside of Saudi,” Mirdad added. 

He further underscored the increasing demand for offshore drilling worldwide. “Today, I can easily name on top of my head four or five countries that are in desired need of offshore jack-ups.” 

Mirdad noted that while entering these markets independently would require significant investment, partnering with an international player like Shelf Drilling facilitates market access. “With this alliance, automatically we have the license to operate in all of these rigs, we have the local knowledge that Shelf has, and it gives us access to all the tenders,” he said. 

Greg O’Brien, CEO of Shelf Drilling, confirmed that the alliance has already begun executing its objectives by bidding for project proposals across different regions. 

“We have participated in three different opportunities. We have a longer list of target opportunities,” O’Brien told Arab News. 

He noted that while the alliance is taking an aggressive approach to exploring international prospects, the financial impact of these tenders will likely not be seen until late 2025 or early 2026 due to the time required for rig mobilization and contract execution. 

Strategic rationale

As an international offshore extraction contractor, Shelf Drilling operates in multiple regions and continues to seek expansion opportunities while optimizing costs. 

O’Brien highlighted that maintaining operational efficiency is a priority, particularly in a competitive market. 




Greg O’Brien, CEO of Shelf Drilling.

“We have 14 rigs right now, all but one of those are contracted, and that one we expect to have contracted really soon, and we see additional opportunities to deploy newer, more capable rigs in other markets where we have a footprint like West Africa and Southeast Asia,” he said. 

The alliance allows Shelf Drilling to expand its capacity without significant capital expenditure on new assets. 

“This alliance with Arabian Drilling gives us access to a few additional rigs that we believe we can deploy in the contract opportunities and markets that we know well without having to buy other assets,” O’Brien stated. 

For Arabian Drilling, the alliance is a critical step in its broader international growth strategy. 

The company, which operates 36 rigs, has three currently suspended. O’Brien explained that these three rigs share similarities with those used by Shelf Drilling, making their international deployment more seamless. 

By leveraging Shelf Drilling’s established presence in key markets, Arabian Drilling can re-enter the global scene more efficiently. 

Opportunities and plans 

Several international markets present promising opportunities for new contracts, with West Africa emerging as a key target region. 

“India, Southeast Asia, West Africa are markets we know extremely well. West Africa is a place that has a decent number of new projects that are incremental to existing activity in that region, and it’s not quite as competitive,” O’Brien said. 

“Southeast Asia holds great opportunities as well, but we see a better opportunity margin in West Africa,” he added. 

Mirdad acknowledged that the alliance’s initial three rigs would not be sufficient to meet the growing demand for offshore drilling services. 

“When we looked at the opportunities, we, as Arabian Drilling, looked at each other and realized we don’t have enough rigs,” he said. 

He indicated that the company is actively considering further expansion. “The three rigs are not enough. So, I’m very upbeat to giving the market some good news in the short term,” Mirdad said. 

When asked about plans for additional rig deployment, he explained that the alliance is a long-term strategic move rather than a short-term fix. 

“In the first instance, it might seem like we’re doing this alliance to secure these three rigs, which is true, but this alliance is not a short-term fix; it is long-term.” 

He further highlighted that with a strong balance sheet and growing international demand, Arabian Drilling is well-positioned to explore additional rig deployments beyond the initial three. 

Financial outlook and growth strategy 

When asked about the financial impact of the alliance, Mirdad stated that Arabian Drilling’s strong balance sheet allows it to focus on growth rather than relying solely on financial maneuvers to expand. 

“Our relations with the banks are really good, so access to cash is not a problem for growth, but this is a great avenue for us and Shelf to grow and not to miss out on any international opportunities,” he said. 

O’Brien added that current oil prices remain at levels that support offshore rig demand, strengthening the alliance’s financial rationale. 

He emphasized that while the primary goal is to establish a broader global footprint, the venture is designed to generate long-term profits for both companies. 

“The alliance will definitely aim to generate profit and revenue for both companies, and the approach will be opportunity-specific,” O’Brien said. 

Global industry trends and long-term demand 

O’Brien highlighted that the alliance aligns with global trends in the shallow-water drilling market, particularly as demand for offshore rigs remains strong. 

“There are about 425 jack-ups around the world, the Middle East is the biggest market, and Saudi Arabia is the largest market for offshore shallow water drilling, but there is stable demand in other parts of the world,” he said. 

He pointed out that the supply of jack-up rigs in markets outside the Middle East has remained relatively stagnant and is expected to decline in the coming years. 

This presents an opportunity for drilling contractors to capitalize on increasing demand. 

“The supply side in other markets has been flat and would most likely be declining in the years to come, which is a good thing for a drilling contractor,” he added. 

O’Brien expressed confidence in long-term global oil demand, which will likely drive continued demand for drilling services. 

“We believe oil demand will continue to grow around the world for the next five to 10 years, or even more,” he said. 

Mirdad further explained that new jack-up rigs are rarely built, leading to a gradual phasing out of older rigs and creating a supply gap in the offshore drilling market. 

“That means that you’ll have demand but not enough rigs available,” he added. 


Abu Dhabi index gains on oil surge, Dubai falls on profit-taking

Abu Dhabi index gains on oil surge, Dubai falls on profit-taking
Updated 18 July 2025
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Abu Dhabi index gains on oil surge, Dubai falls on profit-taking

Abu Dhabi index gains on oil surge, Dubai falls on profit-taking

BENGALURU: Abu Dhabi index closed higher on Friday, supported by an increase in oil prices after the EU introduced new sanctions against Russia, while the Dubai index declined after investors moved to book profit on last five sessions’ gains.

Abu Dhabi’s benchmark index recorded gains for the fourth session with the index finishing 0.2 percent higher, led by a 1.7 percent jump in Emirates Telecom Group, while its biggest lender First Abu Dhabi Bank added 0.5 percent.

Dubai’s main index meanwhile fell 0.2 percent, ending a five-day winning streak after reaching its highest level in 17 and a half years during the previous session.

Losses were driven by a decline in financial sector stocks as Dubai’s top lender Emirates NBD Bank dropped 2.4 percent after three consecutive session gains, while Commercial Bank of Dubai slumped 3.6 percent.

However, budget airline Air Arabia rose by 0.8 percent, continuing its upward trend after Air Arabia Abu Dhabi announced plans to increase its operational capacity by 40 percent in 2025.

The Dubai index saw profit-taking on Friday, but its sustained rally last week has pushed the index to a key resistance level. Next week’s corporate earnings may provide the catalyst needed to break through this barrier, said Ahmed Negm, head of market research MENA at XS.com.

Dubai’s index went up 4.1 percent and Abu Dhabi’s rose 2 percent in their fourth week of gains, according to LSEG data.

Markets remain steady, supported by positive corporate earnings and stable oil prices, though global developments continue to have an impact on investor confidence, said Negm. 


Global Markets — shares rise as US consumer holds up, yen weak ahead of Japan vote

Global Markets — shares rise as US consumer holds up, yen weak ahead of Japan vote
Updated 18 July 2025
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Global Markets — shares rise as US consumer holds up, yen weak ahead of Japan vote

Global Markets — shares rise as US consumer holds up, yen weak ahead of Japan vote

LONDON/SYDNEY: Global shares edged higher on Friday as robust US economic data and corporate earnings this week tempered tariff concerns for now, while the yen headed toward a second successive weekly loss ahead of a crunch legislative election in Japan on Sunday.

Stronger-than-expected US retail sales and jobless claims suggesting modest improvement in economic activity helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday.

Asian and European shares followed suit with gains on Friday, with Asian shares outside Japan up 0.9 percent, while European stocks were last up 0.4 percent. Wall Street futures were also up around 0.1 percent.

A solid start to earnings season in the US — with companies including streaming giant Netflix beating forecasts — was also supporting investor confidence, said Eren Osman, managing director of wealth management at Arbuthnot Latham.

“We’re pretty constructive on the (US) macro backdrop ... We do see some scope for slowing growth, but not for anything material and that’s giving the markets quite a nice bounce,” Osman said, adding the potential full impact of US tariffs was still in focus.

Alphabet and Tesla are among the companies reporting half-year results next week, which will further test the market mood.

The dollar was broadly flat against the yen at 148.65 but was down nearly 1 percent this week after polls showed Prime Minister Shigeru Ishiba’s coalition was in danger of losing its majority in the upper house election on Sunday.

Data on Friday showed Japan’s core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank’s 2 percent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba’s declining popularity.

“If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence,” said Jayati Bharadwaj, head of FX strategy at TD Securities, adding: “JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump.”

In currency markets, the US dollar index slipped 0.1 percent to 98.365, but was heading for a second successive weekly gain, bouncing from a 3-1/2 year low hit over two weeks ago.

Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move.

Treasury yields were slightly lower. Benchmark 10-year US Treasury yields dropped 2 basis points to 4.44 percent, two-year yields also edged 2 bps lower to 3.90 percent.


Saudi bank loans hit $845bn as corporate lending booms

Saudi bank loans hit $845bn as corporate lending booms
Updated 18 July 2025
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Saudi bank loans hit $845bn as corporate lending booms

Saudi bank loans hit $845bn as corporate lending booms

RIYADH: Saudi banks’ total outstanding loans reached SR3.17 trillion ($844.7 billion) at the end of May, an annual increase of 16.28 percent, according to the latest official data.

Figures released by the Saudi Central Bank, also known as SAMA, show that this marks one of the fastest annual credit expansions in recent years, underscoring strong economic momentum in the Kingdom.

The SAMA data revealed that business loans now comprise 55.35 percent of all bank credit, up from 52.87 percent a year ago.

Corporate lending surged 21.73 percent year on year to SR1.75 trillion, far outpacing personal lending, which rose around 10 percent to SR1.41 trillion.

This shift highlights how companies have become the dominant force in Saudi Arabia’s lending landscape, as banks pivot from consumer finance to funding large projects and enterprises.

The Kingdom’s credit boom stands out within the region. Across the Gulf Cooperation Council countries, most banking sectors are expanding on the back of post-pandemic economic growth and government spending, but Saudi banks are leading the pack in loan growth.

A Kamco Invest report published in May found the Kingdom posted the region’s highest year-on-year loan growth in the first quarter of 2025, outpacing other Gulf markets.

This growth was broad-based across sectors — including construction, real estate, education, and transport — whereas some neighboring countries saw more subdued or narrowly focused increases.

The UAE, the region’s second-largest banking market, is also seeing solid credit expansion supported by its own infrastructure and economic reforms.

Gulf banks in general benefit from strong capitalization and government backing, which has kept credit flowing. The International Monetary Fund projects GCC economies to grow around 3.5 percent in 2025, with Saudi Arabia, the UAE, and Qatar driving non-oil growth.

This trend aligns with the Kingdom’s Vision 2030 diversification plan, which emphasizes infrastructure, industry, and non-oil sectors. It also indicates that after a decade of mortgage-fueled expansion, banks are rebalancing portfolios toward commercial lending in response to market demand and government priorities.

This “structural hand-off” means business lending is now the engine of Saudi banking — a significant change after years when consumer mortgages dominated credit creation.

Real estate dominates; education and transport soar

Within corporate lending, real estate developers remain the single largest borrower group according to SAMA data. Real estate activities accounted for 21.35 percent of outstanding corporate credit, totaling approximately SR374 billion in May.

This segment grew by a remarkable 37.7 percent annually, reflecting heightened demand for housing, commercial infrastructure, and mega-project development across the Kingdom.

Saudi Arabia’s ambitious construction boom — from new housing in major cities to giga-projects like NEOM, the Red Sea tourism resorts, and large mixed-use developments — has driven banks to significantly increase financing for land purchases, building, and property development.

According to a March report by real estate consultancy JLL, Saudi Arabia’s real estate sector is set for sustained growth, driven by Vision 2030 diversification goals and robust non-oil economic expansion.

The construction sector recorded $29.5 billion in project awards in 2024, while the property market is forecast by the Real Estate General Authority to reach $101.6 billion by 2029, growing at a compound annual rate of 8 percent. 

Grade-A office demand in Riyadh surged, with vacancy falling to just 0.2 percent by the end of 2024 and average rents reaching $609 per sq. meter.

JLL noted that 326,000 sq. meters of leasable space was delivered in 2024, with an additional 888,600 sq. meters in the pipeline for 2025. The firm added that Jeddah is emerging as a competitive alternative, attracting regional and international firms, while rising office and logistics rents in both Riyadh and Jeddah indicate strong commercial demand.

The report also highlighted real estate tailwinds from upcoming mega-events like the 2030 FIFA World Cup and Expo 2030, which are expected to inject significant capital and further boost infrastructure development across the Kingdom.

Other major sectors in banks’ corporate portfolios include wholesale and retail trade, around 12.2 percent of corporate credit, utilities like electricity, water and gas of 11 percent, and manufacturing at 11 percent.

Each of these recorded healthy double-digit growth, supported by increased public and private investment and industrial reforms.

This includes lending to the utilities sector growing to SR196 billion, as Saudi Arabia expands power grids, renewable energy projects, and water infrastructure to meet rising demand.

Manufacturing loans — about SR191 billion — reflect ongoing expansion in petrochemicals, metals, and consumer goods production under diversification initiatives.

Crucially, some of the fastest growth rates were seen in smaller, emerging segments, highlighting shifting priorities. 

Education sector credit, though making up only 0.55 percent of corporate loans, jumped by over 48 percent year on year to around SR9.58 billion.

This was the highest growth of any sector, fueled by a national drive to expand and modernize educational institutions. Saudi Arabia is encouraging more private investment in schools, universities, and training centers as part of Vision 2030’s human capital development goals.

Transport and logistics is another booming area. Loans for transportation and storage climbed 43 percent year on year, reaching SR68 billion.

This reflects Saudi Arabia’s push to become a global logistics hub, building new ports, airports, railways, and warehouses. Huge projects such as the expansion of Riyadh’s King Salman International Airport and the launch of a new national airline, as well as improvements in roads and shipping infrastructure, require significant funding.

The government’s National Transport and Logistics Strategy envisions $150 billion of investments in transport infrastructure by 2030, with 80 percent of these coming from the private sector via public-private partnerships and privatizations in airports and roadways.

Banks are playing a key role by lending to contractors and logistics firms involved in these ventures. The result is that transport and logistics finance has seen one of the sharpest upticks across all industries, second only to education in growth rate.

Going forward, Saudi lenders are expected to maintain a delicate balance, financing aggressive growth in the corporate sector while guarding against liquidity and risk pressures.


Oil Updates — prices rise after EU new sanctions on Russia

Oil Updates — prices rise after EU new sanctions on Russia
Updated 18 July 2025
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Oil Updates — prices rise after EU new sanctions on Russia

Oil Updates — prices rise after EU new sanctions on Russia

LONDON: Crude oil futures rose on Friday while gasoil futures jumped to a 17-month high as investors weighed new EU sanctions against Russia.

Brent crude futures climbed 73 cents, or 1.05 percent, to $70.25 a barrel by 1:51 p.m. Saudi time. US West Texas Intermediate crude futures gained 83 cents, or 1.23 percent, to $68.37.

The premium on low-sulfur gasoil futures to Brent crude was up $3.50 at $27.27, the almost 15 percent increase lifting the spread to its highest since February 2024.

The EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine, which includes measures aimed at dealing further blows to Russia’s oil and energy industries.

Its latest sanctions package will lower the G7’s price cap for buying Russian crude oil to $47.6 a barrel, diplomats told Reuters.

The EU will also no longer import any petroleum products made from Russian crude, though the ban will not apply to imports from Norway, Britain, the US, Canada and Switzerland, EU diplomats said.

EU foreign policy chief Kaja Kallas also said on X that the EU has designated the largest Rosneft oil refinery in India as part of the measures.

Higher gasoil futures could be driven by an EU ban on fuel imports derived from Russian crude, UBS analyst Giovanni Staunovo said, as well as low inventories in northwest Europe.

The EU and UK have imported about 196,000 barrels per day of refined fuel from India so far this year, the majority of which was diesel, gasoil and jet fuel, according to data from analytics business Kpler.

Europe produces less diesel and jet fuel than it consumes, making it reliant on imports from other regions.

“This shows the market fears the loss of diesel supply into Europe, as India had been a source of barrels,” said Rystad Energy’s vice president of oil markets, Janiv Shah.

Investors were considering the potential impact of the price cap change and vessel designations on crude markets.

Investors are awaiting news from the US on possible further sanctions after President Donald Trump this week threatened sanctions on buyers of Russian exports unless Moscow agrees a peace deal in 50 days.

“Ultimately, it is now a matter of waiting for possible major changes in US sanctions and tariff policy,” Commerzbank analysts said in a note.

The US has not backed Europe on the latest sanctions package, leaving the EU with limited power to enforce the measures.

“We expect limited impact from the lower price cap and tanker sanctions; landed prices for diesel in Europe could increase somewhat due to larger logistics issues to get products into Europe, but we think enforcement challenges limit the impact on flows,” said BNP Paribas analyst Aldo Spanjer.

Prices could also have received support after Reuters reported that a restart of Iraq’s Kurdish oil exports is not imminent despite Iraq’s federal government saying on Thursday that shipments would resume immediately. 


Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

Jordan tourism revenues climb 11.9% in H1 despite regional headwinds
Updated 17 July 2025
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Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

Jordan tourism revenues climb 11.9% in H1 despite regional headwinds
  • Saudi Arabia led the region with a 148% rise in international tourism revenue in 2024
  • Spending by Jordanians on outbound tourism rose 3.3% year on year

RIYADH: Jordan’s tourism revenues rose 11.9 percent year on year in the first half of 2025 to reach $3.67 billion, underscoring the sector’s resilience amid geopolitical tensions in the region. 

According to data from the Central Bank of Jordan, the growth came despite a slight setback in June, when monthly revenues fell 3.7 percent to $619.2 million, state-run Petra news agency reported. 

 Turki Faisal Al-RasheedDespite this, Jordan’s performance reflects a broader tourism surge across the Middle East, with a May release by the World Travel & Tourism Council showing the sector added $341.9 billion to gross domestic product and 7.3 million jobs in 2024, with projections of $367.3 billion and 7.7 million jobs in 2025. 

Saudi Arabia led the region with a 148 percent rise in international tourism revenue in 2024, according to its Ministry of Tourism, while Oman, the UAE, and Qatar continued to attract strong visitor flows through investment, connectivity, and major events. 

Citing the central bank data, Petra said: “Tourism revenues from Asian visitors surged by 42.9 percent during the first half of the year, while revenues from European tourists increased by 35.6 percent, Americans by 25.8 percent, Arabs by 11.5 percent, and other nationalities by 43.0 percent.”  

It added: “Conversely, revenues from Jordanian expatriates visiting the Kingdom registered a modest decline of 0.8 percent over the same period.” 

Spending by Jordanians on outbound tourism rose 3.3 percent year on year in the first half of 2025, reaching $999.7 million, despite a 22.7 percent decline in June alone, when spending fell to $195.6 million. 

This comes on the back of a strong start to 2025, with Jordan welcoming 1.51 million visitors in the first quarter — a 13 percent increase from the same period last year — while receipts rose 8.85 percent to 1.22 billion Jordanian dinars ( $1.72 billion), according to the Ministry of Tourism and Antiquities’ first-quarter report. 

The recovery was further supported by the return of air connectivity, which had nearly disappeared in 2024. New agreements with European carriers expanded the number of low-cost direct routes to 25 this year, including 20 to Amman for the summer and five to Aqaba in the winter. These routes are expected to bring in around 270,000 travelers, the report added. 

Looking ahead, the ministry said it is developing a new National Tourism Strategy for 2025–2028, building on the previous plan and aligning with the country’s Economic Modernization Vision. 

The updated roadmap aims to diversify source markets, including China, India, Russia, Africa, and Southeast Asia, and promote high-potential segments such as medical, wellness, faith-based, adventure, and meetings, incentives, conferences, and exhibitions, or MICE, tourism.