Hexagon invests in future mining talent through partnership with King Saud University

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Updated 15 January 2025
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Hexagon invests in future mining talent through partnership with King Saud University

Hexagon invests in future mining talent through partnership with King Saud University

RIYADH: Industrial technology company Hexagon has made a significant investment in King Saud University to help train the next generation of mining talent in the Middle East, according to a top official.

Speaking to Arab News on the second day of the Future Minerals Forum, which is being held in Riyadh from Jan. 14 to 16, Dave Goddard, executive vice president of mining at Hexagon, explained that the training would utilize advanced digital tools and software.

The agreement, finalized during the forum, builds on Hexagon’s ongoing collaboration with mining ventures in the region. This follows a landmark deal in 2024 with Saudi Arabian Mining Co. to launch the region’s first-of-its-kind digital mine.

The initiative also aligns with the Kingdom’s broader efforts to position mining as the third pillar of its industrial economy.

“One of the things that’s important for us is to give back to the mining community and ensure the long-term viability of the mining industry,” Goddard said. “And the only way that happens is people retire every year, and college students come into the environment as well.”

He continued: “So, what we’ve done is we’ve made a partnership with the universities in order to provide them some digital tools that the mining companies use, so that when they graduate, and they go into industry, they are already digital natives. They already have the skills and attributes necessary to enter into the digital mining realm. And so that’s what we’re really doing: investing in the future of mining by investing in the future leaders of mining.”

Goddard also elaborated on the firm’s partnership with Ma’aden.

“We have a partnership agreement with Ma’aden, our primary customer here in Saudi Arabia. And we have a partnership with them to build a digital mine, where we’re providing the tools, materials, and software to digitalize their mining operations in order for them to be an optimal miner and a world-class miner, which they currently are,” he said.

Regarding the mining process, Goddard described it as breaking down large rocks into smaller pieces to extract valuable minerals or compounds.

“You have a mine plan that has a digital representation of what that ore looks like inside the ground, and then you have a digital representation of the truck that is carrying that mineral around, and you have a digital representation of the drill that is drilling through the material,” Goddard explained.

“When you take that software and those digitalization parameters, what you’re really doing is reflecting the real world in a digital model and allowing yourself to model an optimal process to extract that real-world material in a digital manner,” he added.

He also mentioned the company’s drill assist product, which helps equipment drill 30 percent faster than a human.

“In terms of a fleet management system, we can provide the same material flow rate using 20% fewer trucks if you use our fleet management system. So, if you think about it, there’s not only the cost savings, but there’s also an energy savings because you’re using less material,” Goddard said.

“And that energy savings correlates to less impact on the environment, a lower carbon emission, and a smaller carbon footprint. So, we help our mining customers address not only their operational challenges but also their sustainability challenges as well,” he added.

Goddard further highlighted how mining influences global wealth and standards of living.

“Knowing that the world around us would not exist without mining and the natural materials that mining provides, as the wealth of the world grows and people enjoy richer lifestyles, demand for mineral resources will increase. And we want to be in the middle of that, providing the tools necessary to optimize the extraction of those resources,” he said.

He also discussed Hexagon's approach to providing digital solutions for mining operations.

“What we have are two different portfolios,” Goddard explained. “One is a planning portfolio that allows mining companies to optimize the extraction sequence in order to maximize the material that comes out of the mine. The second portfolio is our operations portfolio, which helps them optimize equipment and material movement during the actual mining operations and extraction activities.”


Closing Bell: Saudi main index closes higher, gains 76 points  

Closing Bell: Saudi main index closes higher, gains 76 points  
Updated 6 sec ago
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Closing Bell: Saudi main index closes higher, gains 76 points  

Closing Bell: Saudi main index closes higher, gains 76 points  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed higher on Monday, rising 76.18 points, or 0.69 percent, to finish at 11,075.96.   

The total trading value on the main market reached SR4.32 billion ($1.1 billion).  

Despite the benchmark’s gain, market breadth leaned negative, with 70 stocks advancing while 171 declined.  

The MSCI Tadawul 30 Index climbed 14.22 points, or 1.01 percent, to 1,416.62.  

The parallel market, Nomu, however, ended in the red, falling 237.23 points, or 0.88 percent, to 26,780.54, with 36 stocks advancing and 59 declining.  

ACWA Power Co. led the session’s gainers on the main index, surging 9.96 percent to close at SR276.00, supported by trading turnover of SR192.89 million.  

Astra Industrial Group advanced 4.38 percent to SR157.20, followed by Saudi Industrial Investment Group, which gained 3.64 percent to SR15.38.  

Other notable risers included Dar Alarkan Real Estate Development Co., up 3.55 percent to SR20.44, and Jamjoom Pharmaceuticals Factory Co., which closed 3.13 percent higher at SR171.40.   

On the downside, Raoom Trading Co. recorded the steepest drop, falling 4.31 percent to SR68.90.  

Jabal Omar Development Co. declined 4.14 percent to SR22.70, while The National Co. for Glass Industries ended 4.03 percent lower at SR44.10.  

SHL Finance Co. dropped 4.03 percent to SR18.56, and National Metal Manufacturing and Casting Co. slipped 3.90 percent to SR13.32.  

On the announcement front, Arabian Pipes Co. signed a contract with Saudi Aramco valued at approximately SR104 million for the manufacturing and supply of steel pipes.   

The agreement, signed on May 26, will span nine months and is expected to impact financial results in the fourth quarter of 2025 and the first quarter of 2026.   

Despite the news, shares of Arabian Pipes closed 1.03 percent lower at SR8.62.   

Meanwhile, United Carton Industries Co. is set to debut on the main market on May 27 following the completion of its SR600 million IPO.   

The final offer price was set at SR50 per share, giving the packaging firm an implied market capitalization of SR2 billion at listing. It marks the sixth listing on Tadawul so far this year.  


Saudi Arabia increases wage support to 50% for tourism sector jobs


Saudi Arabia increases wage support to 50% for tourism sector jobs

Updated 26 May 2025
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Saudi Arabia increases wage support to 50% for tourism sector jobs


Saudi Arabia increases wage support to 50% for tourism sector jobs

  • Move aims to bolster Saudization across 43 professions
  • It is designed to enhance the appeal and sustainability of careers in the sector

RIYADH: Saudi Arabia has raised wage subsidies for local workers in the tourism sector from 30 percent to 50 percent, in a strategic push to expand employment opportunities for Saudi nationals and reduce reliance on foreign labor.

The initiative, part of the Employment Support Program by the Human Resources Development Fund, was unveiled by the Ministry of Tourism in coordination with other government agencies.

It extends financial support to 43 tourism-related professions and is designed to enhance the appeal and sustainability of careers in the sector.

According to the Saudi Press Agency, the program aligns with the Ahlaha initiative — the ministry’s national workforce empowerment plan — which seeks to train and integrate Saudi citizens into the tourism industry.

The updated wage support is expected to encourage more private sector involvement in national workforce development and marks a significant step toward achieving the goals outlined in the Kingdom’s National Tourism Strategy, which aims to create 1.6 million jobs by 2030 as part of the broader Vision 2030 economic diversification agenda.

“The step aims to raise the percentage of national employment in the tourism sector, while ensuring job sustainability and stability for Saudi workers,” the SPA report stated.

The decision underscores ongoing efforts by the Ministry of Tourism and its partners to empower Saudi men and women in tourism-related roles and increase Saudization rates across the industry.

Latest figures from the General Authority for Statistics show that by the fourth quarter of 2024, employment in the tourism sector grew by 4 percent year on year. Saudi nationals comprised 25 percent of the workforce — or 242,073 employees — while expatriates accounted for 75 percent, totaling 724,458 workers. The Riyadh and Makkah regions led the sector in employment numbers.

In a related move, authorities announced in April that 41 key tourism roles, including hotel managers, travel agency directors, and tour guides, will be exclusively reserved for Saudi nationals starting April 2026. The decision is part of continued efforts to localize critical job functions and strengthen the domestic workforce.


Saudi Arabia launches joint venture to produce high-voltage insulators

Saudi Arabia launches joint venture to produce high-voltage insulators
Updated 26 May 2025
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Saudi Arabia launches joint venture to produce high-voltage insulators

Saudi Arabia launches joint venture to produce high-voltage insulators
  • Consortium will establish a new facility within the Kingdom to produce the insulators
  • Deal expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities

JEDDAH: Saudi Arabia’s power sector is set to receive a significant boost following the launch of a new joint venture aimed at localizing the production of high-voltage porcelain insulators, a key component in the Kingdom’s push to strengthen domestic manufacturing and reduce reliance on imports.

The agreement, signed under the patronage of the Ministry of Energy, brings together China’s Dalian Insulators Group, Power Union Co. — a subsidiary of Al-Ojaimi Industrial Group — and the Saudi firm Greengrid.

The consortium will establish a new facility within the Kingdom to produce high-voltage and extra-high-voltage suspension porcelain insulators used in electricity transmission and distribution networks.

The deal was formalized by Salem Mohammed Al-Ojaimi, CEO of Al-Ojaimi Industrial Group, and Chen Junrong, chairman and general manager of Dalian Insulators Group.

The initiative aligns closely with Saudi Arabia’s economic diversification plan that emphasizes local industry development, reduced import dependency, and private sector engagement. The venture is expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities within the power sector.

In a statement on X, the Ministry of Energy said the agreement seeks to “enhance local manufacturing capabilities in the conventional power sector to achieve the goal of localizing energy sector components by 2030.”

The initiative is part of Nuwatin — Arabic for “We Localize” — a flagship program under the Energy Localization initiative, unveiled at the Energy Localization Forum in Riyadh last October. It aims to guide energy companies toward national localization targets, including expanding industrial capacity, increasing GDP contribution, boosting exports, and improving the trade balance.

Porcelain insulators are vital to the reliability and safety of high-voltage transmission lines, providing both mechanical and electrical stability. Local production is expected to enhance grid resilience, reduce long-term infrastructure costs, and accelerate the development of a self-reliant domestic energy industry.

Established in 1915, Dalian Insulators Group is a leading Chinese manufacturer of high-voltage insulators and has been publicly listed on the Shenzhen Stock Exchange since 2011. The company has supplied more than eight million porcelain insulators to major transmission projects globally, including China’s 1,000kV UHV AC and 800kV DC lines.

As Saudi Arabia continues its transition to a more diversified and resilient energy economy, this joint venture represents a strategic step forward in strengthening industrial cooperation and advancing energy sector localization.


Six Saudi-listed companies join FTSE Russell indices amid index review 

Six Saudi-listed companies join FTSE Russell indices amid index review 
Updated 26 May 2025
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Six Saudi-listed companies join FTSE Russell indices amid index review 

Six Saudi-listed companies join FTSE Russell indices amid index review 
  • Changes will take effect on June 23 and be reflected on the Saudi Exchange
  • All six companies recently completed initial public offerings on the Tadawul

RIYADH: Six recently listed Saudi companies are set to join FTSE Russell’s global equity benchmarks, following the index provider’s latest quarterly review.

As part of the FTSE Saudi Arabia Inclusion in the Global Equity Index Series, these changes will take effect on June 23 and be reflected on the Saudi Exchange at the close of trading on Wednesday, June 19. The adjustment is being made early due to the market closure on Friday, June 21.

The newly included companies are Al Majed Oud Co., Arabian Mills for Food Products Co., Fourth Milling Co., Nice One Beauty Digital Marketing Co., Tamkeen Human Resource Co., and United International Holding Co. All six companies recently completed initial public offerings on the Tadawul.

FTSE Russell, a subsidiary of the London Stock Exchange Group, is a globally recognized index provider. Its indices, including the FTSE Global Equity Index Series, are widely followed by institutional and passive investors. Inclusion in these benchmarks is a notable milestone for any listed company, often resulting in increased passive fund inflows, improved liquidity, greater visibility, and enhanced credibility.

According to the index update, Al Majed Oud Co. will be included in the Mid Cap segment of the FTSE Global Equity Index. The other five companies — Arabian Mills, Fourth Milling, Nice One, Tamkeen, and United International Holding — will be added to the Micro Cap segment.

This move supports Saudi Arabia’s Vision 2030, a national strategy aimed at diversifying the economy, liberalizing capital markets, and boosting non-oil revenues. Reforms spearheaded by Tadawul and the Capital Market Authority — including the easing of foreign ownership restrictions and the modernization of trading systems — have helped make the Kingdom’s markets more accessible to global investors.

The momentum in Saudi Arabia’s IPO market continues to grow. In 2024, the main market witnessed 14 IPOs that raised approximately $3.8 billion, while the Nomu parallel market hosted 28 listings. Currently, more than 30 companies are in the IPO pipeline, and Tadawul is expecting a record year, with over 50 applications under review.

Despite the positive signal from index inclusion, all six companies experienced declines in share price as of 14:00 Saudi time on the day of the announcement. Al Majed Oud Co. dropped by 2.09 percent, Arabian Mills for Food Products Co. declined 1.87 percent, and Fourth Milling Co. fell 1.06 percent. Nice One Beauty Digital Marketing Co. slipped 1.96 percent, Tamkeen Human Resource Co. was down 2.89 percent, and United International Holding Co. edged lower by 0.71 percent.

While short-term price fluctuations are common, research suggests that being added to major global indices tends to enhance a company's visibility and appeal to institutional investors over time. The long-term impact, however, often depends on broader market conditions, investor behavior, and post-inclusion trading patterns.


Kuwaiti lenders Warba, Gulf Bank explore merger to boost competitiveness

Kuwaiti lenders Warba, Gulf Bank explore merger to boost competitiveness
Updated 26 May 2025
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Kuwaiti lenders Warba, Gulf Bank explore merger to boost competitiveness

Kuwaiti lenders Warba, Gulf Bank explore merger to boost competitiveness
  • Move comes in light of current internal and external challenges posed by local and global economic conditions
  • Aim is to form a single banking entity compliant with Islamic Shariah principles

RIYADH: Kuwait’s Warba Bank and Gulf Bank have entered discussions to explore a potential merger as part of a strategy to enhance long-term growth and competitiveness in the local Islamic banking sector. 

The two lenders announced the move in separate disclosures to Boursa Kuwait on May 26, prompting a temporary one-hour suspension of trading in both banks’ shares in line with capital markets regulations.  

A tie-up between the two would mark one of the most significant consolidations in Kuwait’s banking industry in recent years, as lenders in the region increasingly pursue mergers to achieve scale, drive efficiency, and adapt to evolving regulatory and economic conditions.  

In a statement to Boursa Kuwait, Warba Bank said: “The potential merger provides a promising strategic opportunity for growth and expansion for the two banks, leveraging their synergies and capabilities, as well as enhancing competitiveness in the local Islamic banking sector.”  

Kuwait-listed Gulf Bank and Warba Bank have agreed to undertake a feasibility study and due diligence on a proposed merger. Wikimedia Commons

It added that the move comes in light of current internal and external challenges posed by local and global economic conditions, to maximize value for shareholders and investors. 

As part of the merger process, both institutions will undertake a preliminary feasibility study and begin due diligence to assess the integration. The aim is to form a single banking entity compliant with Islamic Shariah principles. 

The banks noted that the Central Bank of Kuwait had been informed of the discussions on May 25. 

In its own bourse filing, Gulf Bank stated that its chairman received a letter from Warba Bank — one of its major shareholders — requesting the bank to consider the feasibility of a potential merger between the two institutions to create a unified entity. 

“Hence, the proposal was discussed taking into consideration the bank’s efforts to explore new approaches and prospects to achieve growth and prosperity, which includes the analysis of all opportunities and means of collaboration that would lead to the realization of our goals in terms of sustainable growth and added value for the bank, customers, and investors alike,” the Gulf Bank stated in the statement. 

The merger talks come amid a challenging global economic landscape marked by rising trade tensions and market volatility. In April, S&P Global Ratings said that banks across the Gulf Cooperation Council remain well-positioned to weather external shocks. 

In its report titled “GCC banks can cope with the fallout from intensifying trade tensions,” the agency pointed to the region’s robust financial buffers as protection against evolving global risks. 

“GCC banks appear to be in a good position to withstand these threats,” the report stated at that time, citing “robust liquidity levels, solid profitability, and healthy capitalization” as the sector’s core strengths.  

While the direct impact of trade tensions on GCC economies is expected to remain limited due to minimal export exposure to the US, S&P warned of potential indirect effects. A prolonged downturn in oil prices, for instance, could dampen fiscal spending and sentiment. 

The ratings agency has revised its average Brent oil price assumption for 2025 to $65 per barrel.