RIYADH: Saudi Arabia’s Kingdom Holding Co. said Thursday it has bought a stake in car ride-hailing business Careem, its latest venture in the booming sector.
Kingdom Holding, chaired by Prince Alwaleed bin Talal, acquired a seven percent share in the firm, valuing the transaction at $62 million.
Dubai’s Abraaj Group said in a separate statement that it has divested its shareholding in Careem.
It did not give the size of the stake but confirmed it has been acquired by Kingdom Holding, a diversified Riyadh-based global investor.
The firm has stakes in a variety of sectors, including banking, through Citigroup, and media with Time Warner.
In 2015, Kingdom Holding invested more than $100 million in Lyft, a San Francisco-based rival to another US-based ride-hailing operation, Uber, which is a smartphone app that connects passengers and drivers.
“Our investment in Careem is a continuation of our strategy to invest in new technologies,” as it has already done with Lyft and stakes in Twitter and JD.com, Kingdom Holding’s CEO Talal Al-Maiman said in a statement.
“Careem sets an example for regional businesses by providing employment opportunities to locals and developing talent,” he said.
Car booking apps are popular in Saudi Arabia.
Diversification
As part of a wide-ranging plan to diversify its economy and give more jobs to Saudis, the Kingdom is trying to develop its digital infrastructure and broaden its investment base.
In December, the largest Saudi telecommunication firm, STC, said it would buy a 10 percent stake in Careem for $100 million.
Uber announced in June last year that Saudi Arabia’s Public Investment Fund would inject $3.5 billion to help the app’s global expansion.
Rival Careem operates in the Middle East and surrounding region.
Kingdom Holding buys 7% of Careem ride app
Kingdom Holding buys 7% of Careem ride app
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
