Saudi retailer BinDawood’s stock falls despite profit growth to $17m

Its stores in Makkah and Madinah benefited from the government’s decision to lift restrictions on pilgrims performing Umrah. (Supplied)
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Updated 23 May 2022
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Saudi retailer BinDawood’s stock falls despite profit growth to $17m

RIYADH: BinDawood Holding Co., a leading retail operator in the Kingdom, has recorded a drop in its share price, hours after it announced a surge in first-quarter profit.

Shares of the company were down 0.9 percent to SR91.4 ($24.4) as of 1:07 p.m. Saudi time on Monday.

The group reported SR65.5 million in profit, a slight increase from SR62 million in the same period of 2021, thanks to the ease of pandemic restrictions.

Along with the profit increase, revenues reached SR1.18 billion, up from SR1.12 billion a year earlier, mainly boosted by a rise in sales during the back-to-school season.

Stores in Makkah and Madinah benefited from the government’s decision to lift restrictions on pilgrims performing Umrah, the company noted.

“We are finally beginning to see a marked improvement in trading,” CEO Ahmad BinDawood said, commenting on the results.

“Greater freedom of movement for the local population has led to higher consumer spending in general, and more specifically, an increase in footfall through our stores,” he added.


Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

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Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

RIYADH: Saudi Arabia processed more than 1,000 chemical permit requests in November and awarded exploration rights for 172 mining sites in what the government described as its largest licensing round on record. 

The Ministry of Industry and Mineral Resources said it handled 1,095 chemical clearance requests during the month, including 1,041 approvals for non-restricted chemicals and 54 for restricted substances, covering 2,081 product classifications, the Saudi Press Agency reported. 

It forms part of ongoing efforts to accelerate the discovery and development of mineral resources valued at over SR9.4 trillion ($2.51 trillion), aligning with Vision 2030’s objective to position mining as the third pillar of the national industrial sector.   

Ministry spokesperson Jarrah Al-Jarrah explained that the chemical clearance service enables industrial investors to obtain import or export permits for chemicals used in manufacturing through the “Sanaei” digital platform.  

“He clarified that the service aims to ensure that chemical clearances for industrial facilities are granted through streamlined procedures and in a timely manner, thus serving investors and facilitating the entry of their materials through ports of entry,” the SPA report stated. 

Al-Jarrah explained that the service plays a critical role in enhancing industrial output by developing and automating permit procedures for production-related chemicals as part of the ministry’s digital services.  

In a separate development, the ministry announced that 24 domestic and international companies and consortiums won exploration licenses across 172 mining sites in Saudi Arabia, with 76 of those sites awarded through a multi-round public auction.   

These sites span three mineral belts in the Riyadh, Madinah, and Qassim regions, with committed exploration spending exceeding SR671 million during the first two years of project implementation.  

The ministry described this licensing round as the largest mining tender in the Kingdom’s history.   

The competition covered more than 24,000 sq. km across regions known for strategic minerals including gold, copper, silver, zinc, and nickel.   

Additionally, the ministry noted that 26 qualified companies participated through the electronic bidding platform, progressing through a transparent process that began with prequalification and culminated in competitive multi-round auctions.  

The ministry confirmed that these investments aim to develop untapped exploration zones and enhance the utilization of Saudi Arabia’s mineral wealth, strengthening global supply chains.   

It also announced plans to launch further exploration license tenders covering 13,000 sq. km across Madinah, Makkah, Riyadh, Qassim, and Hail, with additional opportunities to be revealed at the 5th Future Minerals Forum in Riyadh from Jan. 13 to 15.  

These efforts, the ministry stated, reflect a broader mining strategy focused on maximizing resource potential, attracting foreign investment, creating employment opportunities, and integrating value chains to establish Saudi Arabia as a global mining hub.