RIYADH: Driven by various housing options, Saudi Arabia’s rental index rose by 12.5 during July 2023, compared to the same period a month before, said an official report.
According to the report issued by the electronic rental service network Ejar, which is connected with the Sakani platform in covering 160 cities and governments countrywide, the rental index revealed that over 275,000 residential and commercial rental transactions were recorded during July, compared to 240,000 deals in June.
Notably, June 2023 saw a 137 percent growth in residential rental deals compared to the same month last year.
The report showed the trend continued in July with residential rental deals increasing by 15 percent and commercial transactions going up by 11 percent as compared to June.
Among all the Saudi cities, Riyadh took the lead with more than 58,000 residential and commercial rental transactions during July valued at more than SR900 million ($240 million). Jeddah followed the Saudi capital with over 35,000 deals while Makkah and Madinah recorded more than 13,000 transactions each. Dammam recorded
According to the index, Riyadh topped Saudi cities in rental deals with more than 58,000 residential and commercial rental transactions during July, with a total value of more than SR900 million ($240 million). Jeddah followed the capital city with over 35,000 deals, while Madinah and Makkah came next with more than 13,000 deals each. Dammam, on the other hand, recorded over 12,000 deals.
The rental indicators allow beneficiaries to identify the price ranges of residential and commercial units.
Speaking to Arab News last January, Abdulaziz bin Yousef, CEO and chairman of Fay, a Riyadh-based private property management company, said there had been a huge growth in the Kingdom’s residential market.
“We have witnessed a huge demand for residential properties, and the growth has been exponential over the past 10 years, especially with the introduction of mortgages and the growth of the Saudi population,” he added.
Saudi Arabia’s commercial property market is one of the sector’s “leading lights” worldwide, according to a new survey by the Royal Institution of Chartered Surveyors.
RICS said in a recent press release that Saudi Arabia’s commercial property market remains one of the leading lights in both the Middle East and North Africa and the world, adding that confidence in future market conditions remains high.
Saudi Arabia’s rental index rises by 12.5 during July
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Saudi Arabia’s rental index rises by 12.5 during July
SABIC sells European petrochemicals, engineering plastics units in $950m portfolio restructuring
RIYADH: Saudi Basic Industries Corp. is selling two overseas businesses for a combined $950 million as the world’s biggest petrochemicals maker continues to streamline its portfolio and redeploy capital toward higher-return segments.
The Riyadh-based company agreed to sell its European petrochemicals business to investment firm AEQUITA for $500 million and its engineering thermoplastics operations in the Americas and Europe to turnaround specialist Mutares for $450 million, SABIC said in a release.
The plastics deal includes an earn-out linked to future cash flow and a potential resale.
The transactions are part of SABIC’s portfolio optimization program launched in 2022, which has already seen divestments including Functional Forms, Hadeed and Alba. The company aims to sharpen its focus, improve returns, and free up capital for higher-growth opportunities.
Abdulrahman Al-Fageeh, CEO of SABIC, said: “This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape.”
He added: “I am pleased that both AEQUITA and Mutares will work with us in the future to ensure that we continue to serve our global customers in a seamless manner.”
The European petrochemicals business produces ethylene, propylene, various grades of polyethylene, polypropylene and polymer compounds. Its manufacturing footprint includes sites in the UK, the Netherlands, Germany and Belgium.
The engineering thermoplastics business in the Americas and Europe produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene. Its facilities are located in the US, Mexico, Brazil, Spain and the Netherlands.
“The Board endeavored to achieve these transactions, which represent a significant milestone in the execution of our strategy to further optimize our portfolio and maximize shareholder value by enhancing the Company’s cash generation capacity and achieving the highest possible return on our global businesses,” said Khalid Al-Dabbagh, chairman of the board of directors of SABIC.
Chief Financial Officer Salah Al-Hareky said the transactions demonstrate a “disciplined approach” to capital allocation and active portfolio management, aimed at improving return on capital employed and free cash flow.
Despite the divestments, SABIC said it will maintain strategic market access through exports to Europe and the Americas, while preserving its focus on technology, innovation and customer service.
Both buyers have committed to ensuring business continuity, retaining workforce expertise and maintaining high safety and customer service standards during the transition.
Axel Geuer, president and co-CEO of AEQUITA, said: “This transaction represents a further step in the expansion of our European chemicals platform.”
He added: “The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LYB; with complementary markets, infrastructure and operational capabilities, we see substantial potential to realize synergies and drive operational improvements across both businesses.”
Geuer, noted that under AEQUITA’s active ownership model, the focus will be on supporting the teams on the ground, ensuring a seamless integration, and building a scaled, competitive platform positioned for long-term, sustainable value creation.
Robin Laik, co-founder and CEO of MUTARES, said: “The Engineering Thermoplastics (ETP) business in the Americas and Europe has a highly skilled workforce and strong customer relationships.”
He added: “Under focused ownership, our priority is to ensure continuity, support employees through the transition, and unlock the full potential of our asset base as a standalone ETP platform.”
The deals are subject to customary closing conditions, regulatory approvals, and, where applicable, employee consultation processes.
