Saudi Agriculture 2014, the 33rd international agriculture, water and agro-industry trade show which was inaugurated by Agriculture Minister Fahd bin Abdul Rahman Balghunaim at Riyadh International Convention and Exhibition Center here, concluded on Wednesday with exhibitors and visitors applauding the largest agro-food expo of the Middle east. Around 400 companies and individual exhibitors from 40 countries participated in the premier agriculture expo, which started on Sunday and recorded more than 25,000 visitors during the four-day show.
Riyadh exhibitions company in partnership with Advanced Conferences and Meetings conducted a series of seminar focusing on four key topics, including “Agribusiness in Saudi Arabia and Exploring Future Investment Strategies,” ‘Exploring Future of Greenhouse Management and Organic Farming in Saudi Arabia,” ‘Growing Industries of Poultry Farming and Aquaculture in Saudi Arabia,” and “Saudi Arabia Irrigation Challenges and Future Water Resource Solutions.”
Held concurrently with Saudi Agriculture 2014 were Saudi Agro-Food 2014, the 21st international trade show for food products, ingredients and technologies, and Saudi Food-Pack 2014, the 4th international trade exhibition for food processing and packaging.
The show was accredited by the Global Association of the Exhibition Industry (UFI).
Pakistan exhibitors K&N's Food Pvt. Ltd, Asian Food Industries Pvt. Ltd., Hilal Foods Pvt. Ltd. and Ismail Industries Ltd. participating in the expo to bolster ties in agro and food processing industries with the Kingdom, hailed the show.
Speaking to Arab News on the closing day, Atiq R. Siddiqui, head of exports at K&N’s Foods Products said, "It is quite heartening to see internationally compatible brands from leading food products manufacturing groups to keep moving forward in truly becoming global, the most convenient and supportive brotherly regional markets like GCC member states in general and Saudi Arabia in particular with broad consumer base has become attractive learning pad for big and quality proven brands like K&N’s to enter these markets through distributors and expand their export base."
"The agro-food exhibition was chosen as right platform to showcase the quality products range with vibrant packaging and meeting all international standards such as HACCP, ISO and above all the credible Halal Accreditation," Siddiqui stated.
Commenting on Pakistani exhibitors enhancing ties in agro-food sector with Saudi partners he thanked Khayyam Akbar, charge d'affaires at Pakistan Embassy and Wasim Hayat Bajwa, commercial attaché, who visited the Pakistani pavilion and was full of praise for the efforts made by participating companies who came all the way from Pakistan with their senior executives and products to create an acceptance room for themselves in this market place.
Pakistani exhibitor Mohammad Umair Naveed is bullish of business success and pointed to the quality attributes of K&N’s value added chicken products which have now become important components of daily life style in gourmet lovers.
On the sidelines of the agro expo, the commercial section of Pakistan Embassy also held a business meet to facilitate better tie-ups in agro-food sector and honor the Pakistani exhibitors participating in the expo with Khayyam Akbar as chief guest.
Chief executive officers of some leading companies and businesses have also been invited.
Commenting on the expo Tarun Bajaj, general manager of Agricultural and Processed Food Products Export Development Authority of India (APEDA) at the Indian Pavilion said, “business relations between India and the Kingdom continues to remain strong and has resulted in remarkable growth in the agro-food sector with total exports of $2.09 billion during 2013-14, representing 21 percent of total Indian exports to Saudi Arabia during this period and still continues to increase. Our
participation this year has increased to 50 companies, which is up from 30 in the last edition and we look forward to furthering our participation at the 2015 edition.”
Daniel Cunningham, commercial attache from the Irish embassy said, “agriculture sector forms around 47 percent of the total Irish exports to Saudi Arabia, which is valued at 1.1 billion euros.”
As part of a continued effort by the Western Australian trade offfice, a 15 member delegation participated in the expo to further strengthen the growing trade relationship with the Kingdom.
Saudi Agriculture expo attracts 25,000 visitors
Saudi Agriculture expo attracts 25,000 visitors
Al Rajhi Bank launches $1bn in perpetual bonds, says document
RIYADH: Al Rajhi Bank, the world’s largest Islamic bank by assets and market capitalization, has launched $1 billion in Additional Tier 1 sustainable sukuk, or Islamic bonds, a document from one of the banks arranging the deal revealed on Thursday.
The final yield for the debt transaction was set at 6.375 percent, tighter than the initial guidance of around 6.875 percent released in a document earlier in the day. The notes are perpetual in nature and can first be redeemed in May 2029.
The deal received more than $3.5 billion in orders and allocation is expected to happen later in the day, the document showed.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature, but lenders can call them after a specified period.
Closing Bell: Saudi main index slips to close at 12,284
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 175.70 points, or 1.41 percent, to close at 12,284.41.
The total trading turnover of the benchmark index was SR7.31 billion ($1.94 billion) as 41 of the stocks advanced, while 184 retreated.
On the other hand, the Kingdom’s parallel market Nomu rose 199.85 points, or 0.74 percent, to close at 27,086.44. This came as 20 of the stocks advanced, while as many as 45 retreated.
Meanwhile, the MSCI Tadawul Index slipped 19.92 points, or 1.28 percent, to close at 1,537.54.
The best-performing stock of the day was Al-Babtain Power and Telecommunication Co. The company’s share price surged 7.77 percent to SR45.75.
Other top performers include Retal Urban Development Co. as well as Tanmiah Food Co.
The worst performer was Gulf Union Alahlia Cooperative Insurance Co. whose share price dropped by 10 percent to SR22.68.
Other worst performers were Allied Cooperative Insurance Group as well as Al-Etihad Cooperative Insurance Co.
On the announcements front, Jamjoom Pharmaceuticals Factory Co. has announced its interim financial results for the period ending on March 31.
According to a Tadawul statement, the company’s net profit hit SR102.9 million in the first quarter of 2024, reflecting a 22 percent surge when compared to the similar quarter last year.
The increase was mainly driven by an increase in sales, which were slightly offset by the devaluation impact from the Egyptian pound.
Moreover, the National Gas and Industrialization Co. also announced its interim financial results for the first three months of 2024.
A bourse filing revealed that the firm’s net profit reached SR78.6 million by the period ending on March 31, up 7.6 percent in comparison to the corresponding period in 2023.
The increase in net profits is primarily attributed to a surge in gross profit by SR9 million due to increased revenues, alongside a rise in investment and finance income by SR2 million. Additionally, there was an increase in other income by SR1 million, coupled with a decrease in zakat expense by SR2 million.
Furthermore, Modern Mills for Food Products Co. also announced its interim financial results for the first quarter of the year.
According to a Tadawul statement, the company’s net profits climbed 1.3 percent to reach SR64.9 billion in the first three months of 2024 compared to the same period a year earlier.
This rise is mainly owed to revenue growth as well as improving efficiency.
Additionally, Saudi Industrial Investment Group also announced its interim financial results for the period ending on March 31.
A bourse filing revealed that the firm’s net profit stood at SR28 million at the end of the first quarter of 2024, compared to a net loss of SR242 million recorded in the same quarter a year ago.
The increase in net profit is attributed to SIIG’s higher share of profit from joint ventures, coupled with a reduction in zakat expenses.
Saudi PIF’s AviLease delivers first tranche of six aircraft to Indian airline
RIYADH: AviLease, owned by the Public Investment Fund, has delivered two aircraft to an Indian airline, marking the initial delivery of six planes scheduled for 2024.
The global aircraft lessor announced the delivery of Boeing 737-8 jets to Air India Express Ltd. with plans to lease four additional aircraft within the current year.
An AviLease statement said these type of planes are one of the most fuel-efficient, sustainable, and technologically advanced narrow-body aircraft on the market.
It added that these deliveries set the tempo for AviLease, as it aims to build a diverse portfolio of the most advanced, latest-generation narrow- and wide-body aircraft available.
AviLease CEO Edward O'Byrne said the company is delighted to deliver the first two of six new Boeing 737-8 aircraft to its Indian client.
“Our partnership with Air India continues to strengthen under Tata Group ownership and we are proud to support their fleet modernization program. We wish the Air India Express team continued success with their commitment to provide affordable and reliable air travel to its customers.” O'Byrne said.
The full-service commercial aircraft lessor highlighted its role in fulfilling PIF’s mandate to unlock the potential of priority sectors, supporting the diversification of Saudi Arabia’s economy and contributing to non-oil gross domestic product.
AviLease, which was established in 2022, noted that the two-aircraft delivery reaffirms its rapid global expansion.
With a portfolio value of $6 billion, the company is dedicated to providing tailored fleet solutions to its airline partners.
Robust IPO pipeline and market initiatives propel Saudi Exchange’s global appeal: CEO
RIYADH: An array of robust and diverse initial public offerings are poised for the Saudi Exchange thanks to new initiatives aimed at attracting international investors, the bourse’s CEO has revealed.
Addressing a panel discussion themed “Expanding Frontiers: Uncovering Investment Potential in Saudi Arabia and China” at the Capital Market Forum — CONNECT Hong Kong, Mohammed Al-Rumaih expressed confidence in the future trajectory of the Saudi Exchange.
"We can see a very healthy pipeline of IPOs, not just small or large ones, but across different sectors and cycles, tracing their journey from being private to going public," Al-Rumaih said.
The CEO attributed this to the Saudi Exchange’s new measures aimed at attracting international investors.
“We’ve been doing a lot of work in the past few years, major projects every year, to accommodate the needs of international investors and the asset managers,” he explained.
These include the introduction of Market Making and the debut of Single Stock Options.
In 2022, it launched a market-making framework for its stock and derivatives markets, aimed at enhancing liquidity and improving price determination efficiency.
Al-Rumaih also highlighted the upcoming launch of the second phase of the Saudi Exchange’s post-trade development program, expected in the third quarter of 2024.
Moreover, the CEO elaborated on Tadawul’s close collaboration with the Kingdom’s Capital Market Authority.
“So, when it comes to technology, we have state-of-the-art infrastructure similar to global exchanges, but it’s not only about technology; there’s a major element which is the regulations. We’ve been working closely with regulators, particularly the CMA because they are leading the development of the capital market,” he stressed.
In addition, Al-Rumaih also addressed how the Saudi Exchange views Hong Kong as an ally.
“We believe Hong Kong is a great partner for us. They’ve been doing a great job in the past few years, and I think they’ve established themselves as a destination for international investors looking to invest in Asia,” the CEO affirmed.
“So, for us, as a country that is gearing up to become thriving economy and having the biggest stock market, or the biggest skeletal market, within that time zone, I think Hong Kong is a great partner to connect the Middle East with the East,” he underlined.
Also speaking at the same panel, Loai Bafaqeeh, head of securities at SNB Capital, explained what the Kingdom is doing to encourage international investors.
“With the market evolving and focusing on listing companies and bringing more and more companies to the market, I think what’s happening in Saudi in terms of encouraging international investors basically we are addressing some of the key fundamentals that international investors are looking for,” Bafaqeeh said.
He added: “One thing, for instance, is the introduction of Market Making. Today, if you want to get an ETF or another product, or if you want to ensure good liquidity in the market, your first question should be: ‘Do you have a Market Making?’”
During the same panel discussion, Ding Chen, CEO of CSOP Asset Management Limited, talked about the emergence of the Kingdom as an investment prospect.
“Saudi Arabia, the Kingdom, has already done a great job promoting itself and also bringing itself in the spotlight globally by providing quite a lot of conference and events; nowadays, a lot of people travel to Riyadh,” Chen underscored.
“But we constantly do seminars and also do client educations with clients,” the CEO added.
She went on to note that in order to provide Saudi Arabia with more opportunities and make it more appealing to regional investors, conducting massive education sessions for clients is crucial.
“CSOP probably will do around 2,000 seminars annually, and we hope that through doing this continually client education, we can make more people know more about Saudi opportunities,” Chen concluded.
Saudi Arabia’s Capital Market Forum aims to bolster connections with China’s capital markets by extending its reach beyond borders to host the event in Hong Kong.
In 2023, the Saudi Exchange saw a significant influx of IPOs and listings, introducing various industries to the Main Market and the Nomu Parallel Market.
On the Main Market, nine IPOs raised SR11.6 billion ($3 billion), with an additional SR5.04 billion raised across nine further offerings. Meanwhile, the Nomu Parallel Market saw 27 IPO listings raising SR1.2 billion, along with six companies completing direct listings.
In April, the Saudi Exchange welcomed its 400th listing across all securities, underlining the growing prominence of the bourse in the capital market.
As of March 27, the exchange had 216 securities listed on the Tadawul All Share Index, with the parallel market Nomu featuring 83 listings.
Saudi Arabia leads Q1 IPO activity in MENA: EY report
RIYADH: Saudi Arabia emerged as a dominant force in initial public offering activity for the region in the first quarter of 2024, according to multinational professional services EY.
With nine IPOs launched during this period, the Kingdom, along with the UAE, contributed to a total of 10 listings, generating combined proceeds of $1.2 billion, as detailed in the MENA IPO Eye Q1 2024 report.
Saudi Arabia maintained its stronghold on the listing front with a diverse array of offerings across a range of sectors.
Modern Mills Co. led the pack with a substantial IPO amounting to $724 million, followed by MBC Group with $222 million and Middle East Pharmaceutical Industries Co. with $131 million.
These companies were predominantly listed on the Tadawul Main Market, while the remaining six took place on the parallel market Nomu, raising a collective total of $57 million.
“The region has retained a robust pipeline, with several companies in the GCC (Gulf Cooperation Council) and North Africa having announced their intentions to list,” Brad Watson, EY MENA Strategy and Transactions Leader, added.
The largest IPO in the region during the first quarter of 2024 came from the UAE’s Parkin Co. PJSC, totaling $400 million.
Oversubscribed 165 times, the listing marked the third Roads and Transport Authority asset to be floated, following Salik and the Dubai Taxi Co.
Additionally, significant upcoming listings in the UAE, including Spinneys, LuLu Group, and Etihad Airways, underscore the country’s vibrant IPO market.
The region is witnessing a growing emphasis on environmental, social, and governance alongside stock market growth.
The UAE’s introduction of mandatory ESG reporting guidelines for companies listed on the Abu Dhabi Securities Exchange reflects a commitment to transparency and sustainability.
This move aligns with broader moves, such as the Saudi Green Initiative which aims to plant 10 billion trees by 2030 and transition toward renewable energy sources, highlighting the region’s dedication to a greener future.
Gregory Hughes, EY MENA IPO Leader, emphasized the continued strength of stock market debuts activity in the region, and said: “The successful listing of Parkin Co. PJSC on the DFM demonstrated a continued commitment toward the Dubai government’s privatization program that involves listing state-owned companies as part of the nation’s economic diversification drive.”
