Closing bell: Saudi bourse slips 82 points to 10,702  

TASI’s total trading turnover of the benchmark index on Thursday was SR4.04 billion ($1.08 billion), with 77 stocks of the listed 224 advancing and 130 retreating. (Shutterstock)
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Updated 02 February 2023
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Closing bell: Saudi bourse slips 82 points to 10,702  

RIYADH: Saudi Arabia’s Tadawul All Share Index on Thursday lost 81.94 points — or 0.76 percent — to close at 10,701.79.  

MSCI Tadawul 30 Index dropped 0.95 percent to 1,475.52, while the parallel market Nomu slipped 0.79 percent to 18,996.50.  

TASI’s total trading turnover of the benchmark index on Thursday was SR4.04 billion ($1.08 billion), with 77 stocks of the listed 224 advancing and 130 retreating.  

Salama Cooperative Insurance Co. was the topmost gainer for the second day in a row, rising 5.84 percent on Thursday to SR16.30.   

The other top gainers were Dar Alarkan Real Estate Development Co., Saudi Arabian Cooperative Insurance Co., Knowledge Economic City and Americana Restaurants International.  

The worst performer on Thursday was Alinma Bank, which fell 4.25 percent to SR31.55. The bank on Feb. 2 posted a net profit increase of 33 percent to SR3.59 billion in 2022 from SR2.70 billion in 2021.  

The net profit growth was driven by an increase in total operating income by 19.6 percent year-on-year, mainly due to higher net income from financing and investment, fee income, the fair value of investments income through the income statement and currency exchange income.   

Net income from specialized commissions, financing and investments increased 18 percent to SR6.01 billion in 2022 from SR5.14 in 2021.  

The net profit for the fourth quarter of 2022 grew 39 percent to SR860.2 million from SR619.1 million during the same period in 2021.   

The other stocks that performed poorly included Dr. Sulaiman Al Habib Medical Services Group, Banque Saudi Fransi, Saudi Industrial Investment Group and Etihad Etisalat Co.  

Among sectoral indices, 14 of the 21 listed on the stock exchange declined, while the rest advanced.  

The Real Estate Management & Development Index was the best-performing sector of the day as it gained 2.14 percent to 2,733.75, points led by Dar Alarkan Real Estate Development Co.’s 4.85 percent leap to SR12.96.  

The Healthcare Equipment & Service Index was the worst-performing sector, losing 169.9 points to close at 9,384.11.  

On the announcements front, Bank AlJazira also reported a rise of 10 percent in 2022 net profit to SR1.10 billion, compared to SR1 billion in 2021.  

The growth was spurred by a 10 percent decline in total operating expenses year on year.   

“The reduction in total operating expenses came primarily due to a decrease in the net impairment charge for financing and other financial assets, impairment charge for another real estate, rent and premises-related expenses and depreciation and amortization expenses,” the bank said in a statement to Tadawul.  

In the fourth quarter of 2022, net profit rose 7 percent to SR243.8 million from SR228.8 million a year earlier. Bank AlJazira’s share price fell 0.52 percent to SR19.16.  

Saudi Chemical Holding Co., through its pharmaceutical sector represented by the subsidiary AJA Pharmaceutical Industries Ltd, signed on Feb. 1 a memorandum of understanding with Lagap SA, a Swiss-based pharmaceuticals producer.  

The MoU was signed at the Saudi Export stand during the Arab Health Exhibition 2023, the company said in a statement to Tadawul. The MoU is aimed at the co-development of pharmaceutical products and launching them in European and Middle East markets. The company’s share slumped 2.33 percent to SR27.30. 


Saudi Aramco prices three-part bond sale at $5bn

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Saudi Aramco prices three-part bond sale at $5bn

RIYADH: Saudi Aramco has priced its dollar-denominated 3-part bonds at $5 billion and set spread for them, fixed income news service IFR reported on Tuesday.
Aramco priced its five-year debt sale at $1.5 billion with spread set at 80 basis points over US Treasuries, tighter than 115 bps over the same benchmark released earlier in the day.
Meanwhile, the 10-year portion spread was set at 95 bps with a price of $1.25 billion and its 30-year portion spread was set at 155 bps with a price of $2.25 billion, IFR said. The spread was over the same benchmark tightened from 130 and 185 bps.
The proceeds from each issue of bonds will be used by Saudi Aramco for general corporate purposes, the company said in a bourse filing.
Before the pricing was announced, the debt deal was expected to be benchmark-sized, which is usually considered to be at least $500 million.
Earlier this month, Aramco reported a 4.6 percent drop in first-quarter profits, citing lower sales and higher operating costs as economic uncertainty hit crude markets.
Reuters reported last week that the oil giant is exploring potential asset sales to release funds as it pursues international expansion and weathers the impact of lower crude prices.
The company last turned to global debt markets in July when it raised $6 billion from a three-tranche bond sale.
Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan, has long relied on Saudi Aramco to support economic growth.
Other Gulf issuers have tapped debt markets in recent months, braving a market turmoil caused by US President Donald Trump’s tariff policies.
They include Saudi Arabia’s $925 billion sovereign wealth fund and Abu Dhabi’s renewable energy firm Masdar, which last week raised $1 billion with a green bond. (Reporting by Hadeel Al Sayegh and Federico Maccioni in Dubai, Mohammad Edrees in Bangalore; Additional reporting by Pushkala Aripaka; Editing by Kirsten Donovan, Barbara Lewis, David Evans and Mark Porter)


New currency in the works, says Syrian economy minister

Updated 8 min 10 sec ago
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New currency in the works, says Syrian economy minister

  • Syria is striving to become an open economy and attract foreign investment

DUBAI: Syrian Economy Minister Mohammad Nidal Al-Shaar has said his country is working on developing a new currency but will not make any hasty decisions.

Speaking at the Arab Media Summit on Wednesday, Al-Shaar said the new Syrian government was “dealing with this calmly and patiently” and pointed to the economy’s flaws under Bashar Assad’s regime.

“The regime had different channels to pay salaries, one was through royalties that were imposed on traders and the other was through captagon production. When the regime fell, these stopped so there is a shortage in liquidity currently,” he explained.

Liquidity was the main challenge faced by Syria’s economy, he added, as the previous regime had retrieved most of the country’s liquid assets from overseas before it fell.

“We are working on retrieving our funds from abroad in cash; unfortunately the regime was able to retrieve most of it but something is better than nothing,” he said.

Earlier this year, the UAE invested $800 million to develop the Syrian port of Tartous after the US lifted sanctions.

Al-Shaar said Syria was striving to become an open economy and attract foreign investment but was being selective to avoid creating economic chaos.

“Brotherly countries of the Middle East are all looking forward to protecting Syria from chaos, the Syrian people are tired of (it) and cannot bear any more,” he added.


Housing support opens to Saudis aged 20 in major policy shift

Updated 27 min 27 sec ago
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Housing support opens to Saudis aged 20 in major policy shift

JEDDAH: In a significant move to broaden access to homeownership, Saudi Arabia has reduced the minimum age for housing support eligibility from 25 to 20.

The policy shift is designed to accelerate homeownership among younger citizens and aligns with the Kingdom’s broader economic and social development goals.

Announcing the update on social media platform X, Minister of Municipal, Rural Affairs and Housing Majid bin Abdullah Al-Hogail expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for endorsing the changes.

“This step will contribute to enabling more families to benefit from diverse housing and financing options, in line with the goals of the Housing Program and Saudi Vision 2030 to raise the homeownership rate to 70 percent,” the minister said.

The reform marks a continued commitment by Saudi Arabia to expand the reach and impact of the Saudi Housing Program, or Sakani, a key initiative driving social welfare and economic growth. The program was recently lauded by the International Monetary Fund in its September Article IV Consultation report, which cited notable accomplishments including a rise in the homeownership rate to approximately 64 percent, a 90 percent satisfaction rate among beneficiaries, and a wide variety of housing options.

According to the Saudi Press Agency, Al-Hogail stated: “The move reflects the leadership’s continued commitment to strengthening the Kingdom’s housing sector and enabling more citizens to own their first homes with ease and flexibility.”

He added that the updated regulations would offer a wider array of options tailored to the needs of different Saudi households.

One of the landmark reforms includes removing the financial dependency requirement previously applied to wives and divorced mothers, ensuring equal access to housing support regardless of gender.

The eligibility period for divorced women has been also revised, with details to be clarified in forthcoming implementing regulations. Previously, divorced mothers were subject to a two-year waiting period before qualifying for support.

Another notable change reduces the mandatory holding period for housing support assets—from 10 years to five—allowing beneficiaries to transfer or sell their supported assets more quickly. This is intended to provide greater flexibility and reflect the changing economic and social landscape of Saudi families.

The amendments also include enhanced accountability measures. Stricter penalties have been introduced for submitting false information, and authorities will now be able to reclaim any type of housing subsidy—including financial aid, residential units, or land—if an applicant is found to have provided misleading data.

Citizens will be able to apply under the new criteria once regulatory procedures are finalized and officially announced.


Saudi carrier flyadeal to start flights to Syria, CEO says

Updated 21 min 49 sec ago
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Saudi carrier flyadeal to start flights to Syria, CEO says

  • Many airlines pulled out of Syria during its 14-year civil war

MANILA: Saudi budget carrier flyadeal could start flying to Syria as early as July, CEO Steven Greenway said on Wednesday, joining a handful of foreign airlines introducing or resuming flights to the country as sanctions against it are scaled back.
“We got approvals last week to fly to Syria ... We’re getting ready to hopefully launch that in July,” Greenway told Reuters in Manila, where he announced a deal to lease two jets from Philippine budget airline Cebu Pacific.
Many airlines pulled out of Syria during its 14-year civil war. International flights also stopped for a period after rebels toppled former President Bashar Assad in December 2024, but then resumed with services currently offered by Qatar Airways, Turkish Airlines and Royal Jordanian as well as Syrian carriers.
UAE-based FlyDubai has said it will resume services from June.
US President Donald Trump’s administration last week issued orders effectively lifting sanctions on Syria. Trump said he did so at the behest of Saudi Arabia’s crown prince.
EU foreign ministers also agreed last week to lift economic sanctions on Syria. 


PIF’s HUMAIN to launch $10bn AI fund in global tech push

Updated 44 min 52 sec ago
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PIF’s HUMAIN to launch $10bn AI fund in global tech push

  • Kingdom targets 7 percent of global model training by 2030

RIYADH: HUMAIN, Saudi Arabia’s artificial intelligence startup backed by the Public Investment Fund, is set to launch a $10 billion venture capital fund this summer as part of the Kingdom’s ambitious push to become a global AI hub, the company’s CEO has revealed.

In an interview with the Financial Times, CEO Tareq Amin said the new fund—HUMAIN Ventures—will target startups across the US, Europe, and parts of Asia, leveraging Saudi Arabia’s financial strength to assert influence in the rapidly evolving AI industry.

The initiative aligns with projections from the Saudi Data and Artificial Intelligence Authority, which estimate that AI will contribute $15.6 trillion to the global economy by 2030 and create 98 million jobs by 2025.

HUMAIN’s expansion strategy includes establishing 1.9 gigawatts of data center capacity by 2030, with plans to scale up to 6.6GW within four years.

“HUMAIN is seeking to use Saudi Arabia’s financial might to gain a central role in almost every aspect of the burgeoning AI industry — from investing, infrastructure, and chip design. That sprawling strategy is unmatched outside a handful of US and Chinese Big Tech companies, which have had years, if not decades, to build their businesses and technical expertise,” the company said in a statement.

“US tech firms increasingly view Gulf states and their powerful sovereign wealth funds as critical sources of investment, with American tech executives in talks with regional officials about investments and raising capital,” it added.

Amin confirmed ongoing discussions with prominent US tech players, including OpenAI, Elon Musk’s xAI, and venture capital firm Andreessen Horowitz, regarding potential equity partnerships.

HUMAIN was launched in early May, just before US President Donald Trump’s visit to Riyadh, an event attended by major tech leaders such as Musk, OpenAI CEO Sam Altman, and Nvidia’s Jensen Huang.

Since its launch, HUMAIN has signed deals worth $23 billion with US tech giants, including Nvidia, AMD, Amazon Web Services, and Qualcomm. Based on current market rates, the cost of the overall project is estimated at $77 billion, according to Amin.

The company aims to handle 7 percent of global AI model training by 2030, focusing on both model development and inferencing capabilities.

“There are two paths you could take: you take it slow, and we are definitely not taking it slow, or you go fast. Whoever reaches the end line first, I think, is going to secure a good chunk of the market share,” Amin said.

Saudi Arabia, like the UAE, is prioritizing collaboration with US tech companies to address American concerns over potential technology transfers to China — despite China being the region’s largest trading partner.

Amin stressed the strategic value of US partnerships, noting, “If you go and look at our suppliers, you’ll discover that we were deliberate on the partnerships and the choices that we have picked . . . we did not want to make mistakes.”

The initial phase of HUMAIN’s data center park will include a 50-megawatt facility powered by 18,000 Nvidia chips, expected to be operational by next year. Future expansions aim to scale capacity up to 500MW, ultimately requiring 180,000 chips.

In a $10 billion joint venture with AMD, the company plans to deliver 500MW of capacity over five years. HUMAIN is also investing $2 billion with Qualcomm to build data centers and strengthen chip design capabilities in the Kingdom. As part of the agreement, Qualcomm will establish a chipset design center in Riyadh, employing 500 engineers, although the firm has no plans to manufacture chips.

Amin stated that chip procurement from US suppliers will begin within the next 30 days and expressed confidence that the initiative will gain support from the Trump administration.

This development follows Washington’s recent announcement to revoke a Biden-era regulation restricting AI chip sales to countries such as Saudi Arabia. A replacement rule is expected to be introduced.

Addressing data privacy and security concerns, Amin said HUMAIN will provide real-time inventory access for clients to audit data usage instantly. He added that new legislation in Riyadh is expected to ensure data centers comply with the legal framework of the client’s home country.

HUMAIN’s launch supports Vision 2030, Saudi Arabia’s sweeping economic diversification plan. The company is expected to foster local innovation, drive intellectual property development, and attract leading global AI talent and investment.