Saudi Aramco IPO may drag real estate prices down

In this file photo taken on November 03, 2019 shows a sign of Saudi Aramco's initial public offering (IPO) during a press conference by the state company in the eastern Saudi Arabian region of Dhahran. (AFP)
Updated 11 November 2019
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Saudi Aramco IPO may drag real estate prices down

  • Saudi Arabia’s economy has ‘entered a new stage’

JEDDAH: The long-awaited initial public offering (IPO) for Aramco is expected to attract Saudi individuals and investors thanks to encouraging locals to invest in the giant company.
Each Saudi will be entitled to one free share for every 10 shares, provided that they do not dispose of the shares for 180 days from the date of listing. The number of shares for each Saudi investor shall not exceed 100.
Jamal Bennoun, a Saudi columnist who writes on economic issues, told Arab News that the Kingdom’s economy had entered a new stage. This would attract small investors and individuals as well as companies to buy shares from Aramco, especially since millions of shares will be offered by one of three mega-companies in oil and gas in the world.
Bennoun believes that the real estate sector will be the most affected by the IPO since people are looking for liquidity to buy shares and thus land prices are expected to drop. This, he said, would be of benefit to people wanting to buy land or units at less than market price.
Olfat Kabbani, a Saudi businesswomen investing in the downstream sector, and also the deputy head of the industrial committee at Jeddah Chamber of Commerce and Industry, said that the Aramco IPO is the largest economic event in the world now and described it as an important step in the economic reform led by Crown Prince Mohammed bin Salman.
As an investor in the local market, she believes that this move is a great opportunity for Saudi citizens to invest in one of the world’s leading companies in the oil and gas industry. She is optimistic since Aramco confirmed that there will be incentives for the first subscribers and access to free shares.
Through this move the Saudi government has considered citizens as partners in building the economy and is making history by opening up this opportunity, which will diversify the economy, enhance the market and create more job opportunities, she said.
A number of businessmen in Makkah also believe that the Kingdom is going through the most important economic event in its recent years, the media center of the Makkah Chamber of Commerce and Industry (MCCI) reported.
“This event will establish a new history in the evolution of the Saudi economy, enhance the performance of related sectors, improve the financial situation of the citizens, and build a dynamic and diverse Saudi economy within the ambitious Vision 2030,” the businessmen said.

Through this move the Saudi government has considered citizens as partners in building the economy.

Olfat Kabbani Saudi businesswoman

Hisham bin Mohammed Kaaki, MCCI chairman of the board of directors, explained that Aramco’s plan to sell part of its shares in local and international markets will give the Saudi economic sector greater transparency and will contribute to fighting corruption as Aramco is one of the most profitable companies in the world.
He said that the Kingdom was ranked first globally in the number of reforms and development processes and stood out as one of the most progressing countries as per a World Bank report, spearheading 190 countries. He said that this reflected the achievements of Vision 2030.
Nayef Meshal Al-Zaidi, MCCI deputy chairman, said: “It is an established fact that Saudi Aramco is the world’s largest integrated energy and chemical company. It produces about one in every eight barrels of crude oil produced globally. It also operates on the most reliable operational system, making this initial public offering a great opportunity for a safe subscription for shares.”
He said that the world is considering Aramco’s IPO with the intention to advance toward safe investment. “The company’s IPO at this time will be effective in attracting global funds to invest in the safe Kingdom, and this will silence those who are poisoning the world’s ears. The world today races to buy shares of the world’s biggest energy company, Saudi Aramco,” he said.
Marwan Abbas Shaaban, MCCI deputy chairman, stressed that “the IPO is a great opportunity for the Kingdom to offer safe investment on a silver platter by placing the Saudi jewel, Saudi Aramco, in the hands of its people to make direct profits.”
“Many sectors will benefit from this scheme and its impact on the public scene is visible,” he said. “The biggest beneficiary will be the Saudi economy and the financial market, which will undoubtedly double in size. The IPO will also increase the overall investment rate in the Kingdom, therefore contributing to the achievement of Vision 2030, which seeks to reach a prosperous economy that benefits Saudi citizens and create a thriving society.”
Ibrahim Bardisi, MCCI secretary-general, thanked the Saudi leadership for their directives. “Whoever misses the IPO train has missed a lot of good that he deserves more than others, especially as the company is determined to continue to provide value to its customers, partners and major shareholder, including the Saudi government and the new shareholders,” he said.
“The benefits of listing on the Saudi market will create added value in this market and attract foreign money to invest in a company the size of Aramco, which is worth $2 trillion, manages oil reserves estimated at more than 265 billion barrels (15 percent of the world’s reserves) and gas reserves of 288 trillion cubic feet, and employs about 65,000 employees.”


Kingdom assumes presidency of Arab League science, education body

Updated 6 sec ago
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Kingdom assumes presidency of Arab League science, education body

  • Saudi Arabia pledges regional cooperation, backs Palestinian cause and cultural heritage

JEDDAH: Saudi Arabia has assumed the presidency of the Executive Council of the Arab League Educational, Cultural and Scientific Organization until 2026.

The official announcement was made on Friday during the 27th session of the ALECSO, which was held in Jeddah under the presidency of Saudi Arabia. During the session, Iraq handed over the presidency to the Kingdom.

In a speech delivered on behalf of Minister of Culture Prince Badr bin Abdullah bin Farhan, Minister of Education and Chairman of the Saudi National Committee for Education, Culture and Science Yousef Al-Benyan welcomed the ministers and heads of national committees for education and science participating in the session.

Al-Benyan stressed the Kingdom’s humanitarian and fraternal support for the Gaza Strip within the framework of Arab cooperation and solidarity.

He affirmed Saudi Arabia’s support for Khalid Anan, the only Egyptian and Arab candidate for the position of director-general of the organization.

Al-Benyan concluded the speech by praising the efforts of Arab countries in supporting ALECSO, and building bridges of communication to achieve common regional goals.

Saudi Deputy Minister of Education Mohammed Al-Sudairi confirmed that holding the ALECSO meetings in Jeddah coincides with an increase in the role of Saudi national institutions to support the work of the organization.

He added that the number of Saudi initiatives exceeded 45, reflecting Saudi Arabia’s interest and belief in the importance of working with international organizations and its regional environment.

Iraqi Minister of Education Ibrahim Al-Jabouri, head of the 26th session, pointed out achievements made in the previous session, and various programs aimed at building bridges of cooperation between Arab culture and the rest of the world.

Director General of ALECSO Mohammed Ould Omar thanked King Salman and Crown Prince Mohammed bin Salman for hosting the event in Jeddah.

He presented the most prominent programs, initiatives, and projects implemented by the organization between the 26th and 27th sessions with international organizations, such as UNESCO, the work of the Arab Summit in Algeria, the Francophone Summit, the 13th Conference of Arab Ministers of Education in Rabat, and the International Conference on Adult Education, also held in Morocco.

At the end of the 27th session, ministers and heads of the Arab delegations agreed on the importance of supporting the Palestinian cause, condemning and denouncing the displacement that the Palestinian people, as well as the destruction of Palestinian antiquities.

They also addressed the importance of supporting culture, education, innovation, and science in the Arab world. 


Pakistan praises Saudi Arabia over facilitating Hajj for its nationals

Updated 18 May 2024
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Pakistan praises Saudi Arabia over facilitating Hajj for its nationals

  • Pakistani pilgrims have been arriving in Madinah since May 9 when pre-Hajj flight operations were launched
  • Pakistani minister is currently visiting Madinah to oversee Hajj arrangements for his nationals

RIYADH: Pakistani Minister of Religious Affairs and Interfaith Harmony Chaudhry Salik Hussain expressed his appreciation to Saudi Arabia for the exceptional services and facilities provided to Pakistani pilgrims who will be taking part in Hajj this year.

Minister Hussain’s remarks came in a statement delivered in Madinah, where he is currently visiting to oversee Hajj arrangements for Pakistani pilgrims, the Saudi Press Agency reported.

Pakistan has a Hajj quota of 179,210 pilgrims this year, of whom 63,805 will perform the pilgrimage under the government scheme while the rest will use private tour operators. This year’s Hajj is expected to run from June 14-19.

Pakistani pilgrims have been arriving in Madinah since May 9 when pre-Hajj flight operations were launched. Over 20,000 Pakistani pilgrims have so far arrived in Madinah under the government scheme.

The Pakistani official particularly praised the Saudi leadership for launching the Makkah Route Initiative at Karachi International Airport, mirroring the program already established at Islamabad International Airport.

Hussain said he was confident the initiative would be extended to Lahore Airport in the coming year.


KSrelief continues aid projects in Sudan, Yemen and Greece

Updated 18 May 2024
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KSrelief continues aid projects in Sudan, Yemen and Greece

  • 26 neurosurgeries were done in Sudan
  • 330 relief trucks delivered 5,752 tonnes of aid to Yemen

RIYADH: The Kingdom’s aid agency KSrelief continued its projects in Sudan, Yemen, and Greece.

In Sudan, KSrelief implemented a medical volunteer project for neurosurgery and spine surgery from May 12 to May 17.

About 15 volunteer specialists from various medical fields assisted in performing 26 surgeries, the Saudi Press Agency reported. 

In Yemen, KSrelief provided a convoy of 330 relief trucks, which delivered over 5,752 tonnes of critical supplies to people across 14 Yemeni governorates.  

The aid included food, medical supplies, and shelter materials. 

Additionally, KSrelief donated 10 tonnes of dates to Greece, which were presented by Saudi Ambassador to Greece Saad Al-Ammar to Athens.


How forest conservation is helping Saudi Arabia achieve its green objectives

Updated 18 May 2024
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How forest conservation is helping Saudi Arabia achieve its green objectives

  • By planting trees and protecting forests, the Kingdom promotes biodiversity and sustainable development
  • Forests provide habitats for hundreds of animal species and play a pivotal role in combating climate change 

JEDDAH: With its low annual rainfall, much of Saudi Arabia’s vast landscape is covered by desert, broken by occasional oases. In its mountainous regions, valleys, and along its coastline, however, the Kingdom is home to multiple forest ecosystems.

Forests play a pivotal role in combating climate change by acting as carbon sinks — storing carbon both above and below ground, thereby extracting it from the atmosphere, where it would otherwise contribute to the greenhouse effect.

Their significance in climate change adaptation and mitigation is also underscored by their role in creating local microclimates, providing habitats for a wealth of biodiversity, locking in freshwater resources, and preventing flash floods, landslides, and soil degradation.

Riyadh residents take part in a tree-planting project as part of the Greener Home initiative. (@Riyadh_Green/File)

Saudi Arabia’s National Center for Vegetation Cover Development and Combating Desertification is at the forefront of implementing the Kingdom’s strategic goals outlined in Vision 2030.

“Forests play a crucial role in mitigating climate change,” Samir Malaika, assistant director-general of the general administration of forests at NCVC told Arab News. “Saudi Arabia’s dry climate and geography hinder its efforts to conserve forests and promote plant growth.

“With most areas receiving minimal rainfall, forests struggle to thrive. The escalating impact of climate change exacerbates environmental stressors, hampering forest growth and regeneration efforts.”

The NCVC aims to elevate living standards by reducing pollution and facilitating the restoration of degraded environments. It is also committed to building resilience against natural hazards and defenses against harmful pests that could pose risks to vegetation.

Simultaneously, it prioritizes the sustainable development of the Kingdom’s natural resources. With seven ongoing initiatives, it aims to ensure the responsible and lasting utilization of resources in line with the nation’s sustainability objectives.

Among the center’s key initiatives under the Saudi Green Initiative is a scheme to plant some 10 billion trees — representing a significant step in the Kingdom’s reforestation effort.

The initiative for forest management and sustainable development by 2030 underscores a long-term commitment to nurturing and preserving woodland environments.

The phased approach to preserving and restoring vegetation in pasture areas reflects a strategic focus on addressing the specific ecological challenges faced by different ecosystems.

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Furthermore, the initiative for developing vegetation and infrastructure for 50 national parks highlights the importance of creating protected natural spaces while promoting biodiversity and ecotourism.

Moreover, the initiative to plant 7 million wild trees in royal reserves demonstrates a targeted effort to enhance the natural habitats within these pristine areas.

Engagement by the public and private sectors in vegetation development and combating desertification underscores the collaborative approach needed in order to achieve sustainable environmental goals.

One initiative of the National Center for Vegetation Cover Development and Combating Desertification with the aim of achieving sustainable forest management is to tap local community participation in agroforestry projects and by promotingecotourism. (Photo Courtesy: NCVC)

By harnessing the collective resources and expertise of various stakeholders, these initiatives aim to create a resilient and thriving ecosystem that benefits both present and future generations.

According to Malaika, Saudi Arabia boasts a forest coverage spanning approximately 2,768,050 hectares, primarily concentrated in the southern and southwestern regions, along riverbeds, and on the coastlines of the Red Sea and the Arabian Gulf.

These forest ecosystems are categorized into three primary types: mountain, valley, and mangrove.

Mountain forests

Mountain forests are predominantly located in the region spanning the Hijaz Mountains in Taif to Jazan in the south. These areas have neutral soil acidity and receive the highest rainfall and humidity levels, particularly evident in the southwest with denser forest cover.

The juniper tree has proudly stood as a symbol of picturesque beauty in Al-Baha region, adorning its slopes and mountain peaks with vibrant green hues. (SPA)

Forests are made up of several Juniperus plant species, typically found at altitudes of 2,000 meters and above. Additionally, Olea chrysophylla forests, characterized by wild olive trees with golden leaves, thrive at altitudes of 1,500 to 2,000 meters.

At lower altitudes, between 1,000 to 1,500 meters, Acacia plant species dominate the landscape.

Notably, terraced agriculture is a common feature of mountainous regions, facilitating crop fruit tree cultivation while aiding in water retention and soil protection. However, improper management can lead to land degradation, adversely affecting the surrounding forests.

DID YOUKNOW?

• Saudi Arabia is home to more than 63 unique ecosystems, ranging from mountainous regions to coastal lowlands.

• The Kingdom boasts a diverse array of wildlife, including 78 terrestrial mammal species and 499 species of bird.

• Coral reefs in Saudi Arabian waters host an impressive 266 species, contributing to marine biodiversity.

• With more than 6,500 species, Saudi Arabia’s invertebrate population testifies to the richness of its ecosystems.

• Saudi Arabia boasts three distinct forest ecosystems: mountain forest, valley forest, and mangrove forest.

Valley forests

Saudi Arabia’s topography features 179 valleys distributed across the country. Valley forests, mainly situated in semi-arid regions, are characterized by species such as Acacia ehrenbergiana, Acacia tortilis, Maerua crassifolia, several species of Commiphora, and Salvadora persica.

Additionally, oases and valleys are abundant with various Acacia species, Ziziphus spina-christi, Salvadora persica, Haloxylon persicum, trees, shrubs, and Hyphaene thebaica. 

Saudi Arabia’s topography features 179 valleys distributed across the country. (AN file photo)

Mangrove forests

Mangroves and coastal ecosystems tolerant to saltwater are predominantly located along the Red Sea coast, with other stretches found along the Arabian Gulf coast.

Despite the lack of comprehensive forest data, studies indicate significant degradation of the mangrove ecosystem.

Avicennia marina is the most prevalent species in mangrove forests, with Rhizophora mucronata being less common.

Besides these natural forests, the Kingdom is also host to many urban and cultivated woodlands in its parks and residential neighborhoods, planted to provide shade, reduce temperatures, and beautify city streets.

Despite the Kingdom’s diverse ecosystems, it faces significant challenges in preserving and expanding its forests, including limited resources, poor local management, insufficient nursery production to meet seedling demand, a lack of awareness about dumping and unauthorized grazing, and other irresponsible human activities.

The Saudi National Center for Wildlife is working to protect, develop, and restore ecosystems and biodiversity around the Kingdom, in addition to addressing risks related to plant and animal life.

Red Sea Global implemented a nursery project with the goal to have 50 million trees of Mangroves by 2030. (Red Sea Global photo/File)

According to Abdulmanea Al-Qahtani, invertebrates department director at the NCW, the Kingdom has 63 distinct ecosystems, encompassing a diverse range of landscapes, including mountains, plains, deserts, valleys, forests, seas, wetlands, plateaus, coastal areas, and marshes, all teeming with biodiversity.

The Kingdom is home to 78 species of terrestrial mammal, 499 species of bird, 136 species of reptile, seven species of amphibian, and more than 6,500 species of invertebrate.

In its waters, the Kingdom also offers habitats to 19 species of marine mammal, eight species of freshwater fish, 1,248 species of saltwater fish, and 266 species of coral

Unknown to many, Saudi Arabia is home to 78 species of terrestrial mammal, 499 species of bird, 136 species of reptile, seven species of amphibian, and more than 6,500 species of invertebrate. (NCW collage image)

The Saudi Green Initiative, launched by Crown Prince Mohammed bin Salman in 2021 under the Vision 2030 framework, aims to tackle threats to this rich biodiversity and foster sustainable development.

Key goals include transitioning to a sustainable economy by reducing carbon emissions, boosting renewable energy production, and bolstering conservation efforts.

Additionally, the initiative aims to enhance environmental protection, promote green technologies, and create green jobs to drive economic diversification and growth.
 

 


Saudi fund signs two loan agreements, inaugurates Hulhumale Island development in Maldives

Updated 17 May 2024
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Saudi fund signs two loan agreements, inaugurates Hulhumale Island development in Maldives

  • Al-Marshad participated in the partial inauguration of the Hulhulmale Island Development Project

MALE: CEO of the Saudi Fund for Development Sultan bin Abdulrahman Al-Marshad signed on Friday two development loan agreements with the Maldives’ Minister of Finance Dr. Mohammed Shafiq. These agreements will contribute to financing the Velana International Airport development project with a value of $100 million and the healthcare sector development project in the Maldives with a value of $50 million, provided by fund.

Additionally, Al-Marshad participated in the partial inauguration of the Hulhulmale Island Development Project, which the SFD is contributing to financing through a soft development loan worth $80 million. The event was also attended by Saudi Ambassador to the Maldives Matrek bin Abdullah Al-Ajalin.