Saudi POS hits $3.6bn as education spending surges with academic year start

Saudi POS hits $3.6bn as education spending surges with academic year start
The education sector led the POS increase, recording a 127.5 percent surge in spending. Shutterstock.
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Updated 20 November 2024
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Saudi POS hits $3.6bn as education spending surges with academic year start

Saudi POS hits $3.6bn as education spending surges with academic year start

RIYADH: Saudi Arabia’s point-of-sale transactions climbed to SR13.5 billion ($3.61 billion) between Aug. 11 and 17, reflecting a 3.6 percent increase from the previous week, official data showed. 

According to the latest figures from the Saudi Central Bank, also known as SAMA, the education sector led the charge, recording a 127.5 percent surge in spending, with total transactions reaching SR1.01 billion. 

This marks the fourth consecutive week of gains for the category, coinciding with the start of the academic year on Aug. 18. 

In an interview with Arab News, Saudi-based economist Talat Hafiz said that it is normal to see such a trend as pupils prepare to return to education.

He added: “Most of the parents and students rush to the market before the opening of the school doors to buy the school supplies, leading to a noticeable increase in the POS of the education sector.”

Hafiz explained that such behavior “will definitely reflect positively on the sales and revenues of the retail markets specialized in selling educational related goods.”

He also pointed out that the campaigns launched by bookstores and electronic stores before the start of the school year attract consumers, leading to heavy purchases due to the discounts offered.

The boost in POS spending follows a dip in the previous week, where transactions fell to SR13.09 billion.

During the Aug. 11-17 period, spending on recreation and culture also saw a notable rise, up 11.8 percent to SR318.1 million, marking the second-largest increase.  

Clothing expenditures followed with a 7 percent uptick, reaching SR931.5 million. 

The top three biggest shares of this week’s POS were: 

  • Restaurants and cafes – SR1.87 billion spent, a 4.4 percent decrease from last week. 
  • Food and beverages – SR1.73 billion spent, down by 2.6 percent compared to the previous week. 
  • Miscellaneous goods and services – SR1.47 billion spent, dipping by 2.9 percent from the week before. 

Spending in the top three largest categories accounted for 37.45 percent of this week’s total value. 

As for the number of transactions, the education sector recorded the highest increase at 59 percent, reaching 232. Conversely, the hotel division saw the largest decrease at 14.1 percent, reaching 764 transactions.

The most significant decline, at 15.9 percent, occurred in hotels, reducing total expenditure to SR267 million. Jewelry came in second place, dipping by 14.3 percent to SR209.9 million. 

Geographically, Riyadh dominated POS transactions, representing 34.1 percent of the total, with spending in the capital reaching SR4.62 billion — a 6.9 percent increase from the previous week. Jeddah followed with SR1.87 billion, accounting for 13.8 percent of the total, and Dammam came in third at SR665 million, up 5.5 percent.

Abha saw the largest decrease in spending, down 10.2 percent to SR212 million. Hail and Makkah also experienced slight declines, with expenditure dropping 0.7 percent to SR199.9 million and 0.2 percent to SR544.3 million, respectively. 

Hafiz suggested that the decline in Abha might be due to consumers buying school supplies early and others relocating or entering the workforce after finishing their education.

Tabuk recorded the highest increase in terms of the number of transactions, at 4.7 percent, achieving 4.5 million transactions. Abha saw the most significant decrease at 11.5 percent, reaching 3.6 million transactions.


Aramco expands global retail network with 25% stake in Philippines’ Unioil

Aramco expands global retail network with 25% stake in Philippines’ Unioil
Updated 33 sec ago
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Aramco expands global retail network with 25% stake in Philippines’ Unioil

Aramco expands global retail network with 25% stake in Philippines’ Unioil
  • Deal aims to capitalize on the expected growth of the high-value fuels market in the Philippines

RIYADH: Saudi oil giant Aramco has signed definitive agreements to acquire a 25 percent equity stake in Unioil Petroleum Philippines, marking its entry into the Southeast Asian nation’s retail fuel market as part of a broader global expansion strategy. 
The deal, subject to regulatory approvals and customary closing conditions, is aimed at capitalizing on the expected growth of the high-value fuels market in the Philippines, the company said in a press release.  
It also advances Aramco’s downstream expansion by seeking additional outlets for its refined products. The investment follows similar acquisitions in Chile and Pakistan, reinforcing the company’s push to strengthen its retail network in key markets. 
“This investment represents another step forward in our global strategy to expand Aramco’s retail network, and we look forward to introducing Aramco’s high-quality products and services to customers in the Philippines,” said Yasser Mufti, Aramco’s executive vice president of products and customers. 
“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners. We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippines fuels market,” he added. 
Founded in 1966, Unioil operates 165 retail stations and four storage terminals across the Philippines. 
Upon completion of the deal, Aramco plans to extend its brand, introduce competitive retail offerings, and supply Valvoline-branded lubricants to select Unioil stations. 
The expansion underscores Aramco’s efforts to diversify its downstream footprint and capitalize on emerging market opportunities. The company has been expanding its global reach not just through acquisitions but also by influencing crude pricing trends. 
Aramco recently raised its official selling prices for Asian buyers to the highest levels in more than a year, citing rising demand from China and India, as well as supply disruptions linked to US sanctions on Russian oil. The price adjustments highlight Aramco’s ability to navigate shifting market dynamics while maintaining its dominance in crude supply. 
With recent investments in Chile, Pakistan, and now the Philippines, Aramco is pushing deeper into international retail markets, securing outlets for refined products and strengthening its presence in high-growth economies. 


Closing Bell: Saudi main index closes in red at 12,317

Closing Bell: Saudi main index closes in red at 12,317
Updated 36 min 21 sec ago
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Closing Bell: Saudi main index closes in red at 12,317

Closing Bell: Saudi main index closes in red at 12,317

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 16.08 points, or 0.13 percent, to close at 12,317.59.

The total trading turnover of the benchmark index was SR6.03 billion ($1.60 billion), as 49 of the listed stocks advanced, while 189 retreated.   

The MSCI Tadawul Index increased by 2.71 points, or 0.18 percent, to close at 1,538.30.

The Kingdom’s parallel market Nomu rose, gaining 50.75 points, or 0.16 percent, to close at 31,430.32. This came as 47 of the listed stocks advanced, while 36 retreated.

The best-performing stock was Electrical Industries Co. with its share price surging by 7.14 percent to SR7.35.

Other top performers included Etihad Etisalat Co., also know as Mobily, which saw its share price rise by 5.47 percent to SR59.80, and Mobile Telecommunication Co. Saudi Arabia known as ZAIN KSA, which saw a 3.70 percent increase to SR11.20.

The worst performer of the day was SAL — also known as Saudi Logistics Services Co. — whose share price fell by 7.93 percent to SR253.20.

Saudi Fisheries Co. and Nice One Beauty Digital Marketing Co. also saw declines, with their shares dropping by 4.62 percent and 4.53 percent to SR124 and SR65.30, respectively.

On the announcements front, SAL revealed its annual financial results for 2024, with net profits reaching SR661.4 million, up 29.7 percent compared to the previous year.

In a statement on Tadawul, the company said the surge was attributed to “remarkable topline growth, effective cost control measures, savings from major lease terminal rentals, and finance income from short-term murabaha deposits.” In today’s trading session, the firm was the worst performer.

Moreover, Yamama Cement Co. shared its interim financial results for the period ending Dec. 31, with net profits amounting to SR420.7 million, reflecting a 38.2 percent surge compared to the same period in the previous year.

The company attributed the surge in profits to high sales value, and its shares traded 1.89 percent lower on the main market today to close at SR36.25.

In another announcement, Mobily revealed its annual consolidated financial results for 2024.

The company’s net profit in 2024 reached SR3.1 billion, up from SR2.2 billion in the previous year, driven by higher revenue and operational efficiency. Gross profit rose by 6.9 percent, while earnings before interest, taxes, depreciation, and amortization climbed 8.6 percent year-on-year.  

This was supported by a withholding tax reversal of SR284 million, an 18.6 percent increase in operating profit, and a 10.8 percent drop in financial charges. Additionally, zakat and income tax declined to SR86 million, reflecting a reduced debt portfolio.

In Wednesday’s trading session, the company’s shares traded 5.47 percent higher on the main market to close at SR59.80.


Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Saudi Cabinet approves land transport system to enhance efficiency, sustainability 
Updated 19 February 2025
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Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

JEDDAH: Saudi Arabia’s Cabinet has approved a comprehensive land transport system aimed at modernizing road networks and integrating advanced technologies to enhance efficiency and sustainability. 

The system, approved at a Cabinet session in Riyadh and chaired by Crown Prince Mohammed bin Salman, is designed to streamline regulations and drive environmentally friendly growth in the industry, the Saudi Press Agency reported. 

It also aligns with global trends toward sustainable and connected transport infrastructure, reinforcing Saudi Arabia’s ambition to lead in logistics and mobility innovation.

With more than 73,000 km of roads, Saudi Arabia ranks among global leaders in terms of connectivity, according to the Transport General Authority. 

Saleh bin Nasser Al-Jasser, minister of transport and logistics services and chairman of the TGA board, said the decision supports the regulation and development of land transport across various sectors, aligning it with the Kingdom’s rapid economic expansion. 

“This includes the adoption of modern technologies in transportation and sustainable mobility, the regulation of transport facilities, the activation of professional and technical qualifications, and the establishment of clear obligations for licensees, along with defining the rights and responsibilities of beneficiaries,” Al-Jasser said. 

The new system, he noted, reflects the leadership’s ongoing support for the transport and logistics sector, reinforcing its role in driving economic growth and investment. 

It is also expected to contribute to the objectives of the National Transport and Logistics Strategy, which seeks to improve mobility, enhance quality of life, and facilitate economic activities with high standards of safety, efficiency, and service delivery. 

Al-Jasser emphasized that the system would create investment opportunities, ensure fair competition, and strengthen the private sector’s role as a key partner in development. 

“This will increase the sector’s contribution to the national economy and further establish the Kingdom as a global leader in integrated transport services, in line with Saudi Arabia’s Vision 2030, helping to build a sustainable and prosperous future,” he said. 

Under the new framework, the TGA will classify key road transport activities, including passenger and cargo transport, and car rentals. Service providers will be required to comply with operational and technical conditions set by regulators, while violations will be subject to penalties. 

The system also introduces stricter rules on foreign cargo truck operations, aiming to regulate entry and enforce compliance with local transport laws. 

Additionally, passenger transport operators will be prohibited from soliciting customers directly, such as calling out to passengers or following them to offer services. 


Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps
Updated 19 February 2025
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Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps

SAO PAULO: Brazil has decided to adhere to the declaration of cooperation of the OPEC+ group of oil-producing countries, the local energy ministry said on Tuesday, formalizing a move it had initially announced in 2023.

Brazil is the largest oil producer in South America. Its output hit 4.32 million barrels of oil equivalent per day in 2024, according to the country’s oil regulator.

It will join nations such as Saudi Arabia and Russia in the group’s declaration, but is not expected to take part in its coordinated output caps.

The move shows Brazil’s “growing relevance in the oil and gas market,” the mines and energy ministry said in a statement, adding, however, that the country would “continue to develop its energy policy in line with its own interests.”

“It is important to highlight that the declaration does not include the participation of countries in decisions aimed at cutting oil production,” the ministry said.

Brazil first said it was going to join the OPEC+ cooperation in late 2023, but President Luiz Inacio Lula da Silva reiterated at the time the country had no intention to be a full member, instead acting as an “observer.”

The country on Tuesday has also decided to become a member of the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), the government said.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait
Updated 19 February 2025
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Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.