PARIS: World food prices rose for a second consecutive month in September to reach a 10-year peak, driven by gains for cereals and vegetable oils, the United Nations food agency said on Thursday.
The Rome-based Food and Agriculture Organization (FAO) also projected record global cereal production in 2021, but said this would be outpaced by forecast consumption.
FAO’s food price index, which tracks international prices of the most globally traded food commodities, averaged 130.0 points last month, the highest reading since September 2011, according to the agency’s data.
The figure compared with a revised 128.5 for August. The August figure was previously given as 127.4.
On a year-on-year basis, prices were up 32.8 percent in September.
Agricultural commodity prices have risen steeply in the past year, fueled by harvest setbacks and Chinese demand.
The FAO’s cereal price index rose by 2.0 percent in September from the previous month. That was led by a near 4 percent increase for wheat prices, with the UN agency citing tightening export availabilities amid strong demand.
“Among major cereals, wheat will be the focus in the coming weeks as demand need to be tested against fast rising prices,” FAO Senior Economist Abdolreza Abbassian said in a statement.
World vegetable oil prices were up 1.7 percent on the month and showing a year-on-year rise of about 60 percent, as palm oil prices climbed on robust import demand and concerns over labor shortages in Malaysia, FAO said.
Palm oil futures have rallied further in early October to hit record highs as a surge in crude oil markets has lent further support to vegetable oils used in biodiesel.
Global sugar prices rose 0.5 percent in September with concern over adverse crop weather in top exporter Brazil partly offset by slowing import demand and a favorable production outlook in India and Thailand, according to FAO.
For cereal production, FAO projected a record world crop of 2.800 billion tons in 2021, up slightly from 2.788 billion estimated a month ago.
That would be below world cereal use of 2.811 billion tons, a forecast revised up by 2.7 million tons from a month earlier mainly to reflect increased wheat use in animal feed, FAO said in a cereal supply and demand note http://www.fao.org/worldfoodsituation/csdb/en.
Global cereal stocks were expected to ease in 2021/22 but would still be at a comfortable level, FAO added.
World food prices hit 10-year peak — FAO
https://arab.news/w87k2
World food prices hit 10-year peak — FAO
- On a year-on-year basis, prices were up 32.8 percent in September
- FAO project record global cereal production in 2021 to be outpaced by consumption
MAGRABi Retail Group acquires Kefan Optics, sets sights on IPO
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
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
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, 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, 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, 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, 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, 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, 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, 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, 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, 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, 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
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.
Qatar’s FDI projects jump 110% in 2024, says investment agency chief
- Number of FDI projects reached 241 in 2024, up from 115 in 2023
- Most of the investments were concentrated in key sectors, particularly wholesale and retail trade
RIYADH: Qatar saw a 109.6 percent year-on-year increase in foreign direct investment projects in 2024, more than doubling the 2023 total, reflecting growing global confidence in its economy, according to a top official.
Speaking to Qatar News Agency, Sheikh Ali bin Alwaleed Al-Thani, CEO of the Investment Promotion Agency, said the number of FDI projects reached 241 in 2024, up from 115 in 2023.
He attributed this growth to strong investor confidence in Qatar’s economic resilience and long-term strategic direction.
“This growth is attributed to targeted investment policies, a supportive business environment, and the state’s commitment to economic diversification in line with Qatar National Vision 2030," the QNA report stated.
Most of the investments were concentrated in key sectors, particularly wholesale and retail trade, which accounted for 77 undertakings, and administrative and support services, which had 41.
Greenfield projects, involving new ventures rather than expansions, comprised 74 percent of the total, highlighting Qatar’s appeal as a destination for sustainable, long-term investments.
Al-Thani stated that these developments were driven by recent reforms, including simplified licensing procedures and enhanced digital services, aligned with the economic diversification objectives of the Third National Development Strategy.
He also pointed to the Ministry of Commerce and Industry’s Strategy for 2024–2030, which aims to boost the investment environment further by achieving 3.4 percent annual growth in non-oil sectors.
The establishment of the National Statistics Centre was also highlighted as a milestone in enhancing data-driven policymaking and transparency, key enablers of a healthy investment climate, the official noted.
Qatar’s global competitiveness continues to strengthen, Al-Thani said, citing its rise to 11th place in the International Institute for Management Development World Competitiveness Index for 2024.
In terms of logistics and infrastructure, the country ranked 14th for logistics competence and 19th for infrastructure in the World Bank’s Logistics Performance Index.
According to the agency, the new investment projects generated 9,348 jobs in 2024, a 122.7 percent increase from 4,197 jobs in 2023.
These roles were largely in the same sectors that attracted the most FDI, including retail and wholesale trade, support services, accommodation and food services, and scientific research and development.
“Our strategy is firmly centered on attracting high-quality, knowledge-based investments that align with Qatar’s long-term economic diversification goals. We focus on sectors where Qatar offers a strong competitive advantage, and where innovation, technology and sustainability can generate real value for both investors and the local economy,” he was quoted as saying by QNA.
He added: “A core component of this strategy has been the development of strategic partnerships with leading global organisations. These collaborations go beyond job creation — they are focused on transferring knowledge, introducing cutting-edge technologies and embedding international best practices across key industries.”
He said this investment approach supports key national objectives, including achieving an average annual economic growth rate of 4 percent, increasing labor productivity, and attracting $100 billion in FDI by 2030.
Qatar’s achievements have also been recognized globally. The country ranked first worldwide for tax policy and basic infrastructure in the IMD World Competitiveness Ranking 2024, second for general infrastructure in the Global Innovation Index, and fourth for information and communications technology development in the ITU ICT Development Index.
Its commitment to entrepreneurship and innovation was underlined in the 2024–2025 Global Entrepreneurship Monitor, where it ranked first globally in entrepreneurial intentions and employee activity, and ninth for start-up opportunities.
