Saudi Arabia strengthens industrial ties with the Netherlands to drive economic growth 

Saudi Industry Minister Bandar AlKhorayef visited FrieslandCampina Innovation Center in Wageningen, and discussed plans to establish a dairy production and export hub for the region in the Kingdom. Supplied
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Updated 30 May 2024
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Saudi Arabia strengthens industrial ties with the Netherlands to drive economic growth 

RIYADH: Saudi-Dutch ties in the industrial and mining sector are set to strengthen, as the Kingdom’s industry minister visited some of the leading manufacturing firms in the Netherlands. 

Bandar Alkhorayef visited the Philips Medical Devices factory in Eindhoven, where he met with Edwin Paalvast, the executive board member and head of international markets at Philips. They discussed enhancing cooperation in the medical devices field and localizing this vital industry within Saudi Arabia. 

The Saudi minister’s visit to the Netherlands aimed to bolster cooperation and develop partnerships in various industrial activities between the two countries. 

Alkhorayef also visited FrieslandCampina, a leader in dairy products and their derivatives. In discussions with Marchel Gorselink, the general manager of research and development at FrieslandCampina, they explored the potential for establishing a research and development center in the Kingdom to enhance local production quality and food processing. 

Additionally, the minister met with David Haines, CEO of Upfield, to discuss cooperation in consumer products and plant-based food production. They shared expertise to contribute to food security goals and environmental sustainability. 

This visit aligns with Saudi Arabia’s ongoing efforts to enhance the role of its industrial and mining sectors in the national economy and promote growth pathways between the two countries in promising industries. It also seeks to attract quality investments and increase the penetration of Saudi non-oil exports into Dutch and European markets. 

During his meetings with Dutch ministers, including the Minister of Foreign Trade and Development, Liesje Schreinemacher, and the Minister of Economic Affairs and Climate Policy, Micky Adriaansens, Alkhorayef focused on strengthening bilateral trade relations and exploring cooperation opportunities in industry, mining, trade, and investment.  

They also discussed developing strategic partnerships in various sectors, including manufacturing, advanced technology, and renewable energy. 

The visit highlights Saudi Arabia’s unique opportunities and capabilities in the industrial and mining sectors, along with its environmental conservation efforts and climate change initiatives, such as the Saudi Green and Middle East Green Initiatives. 

Additionally, Alkhorayef held discussions with officials at the Dutch Port of Rotterdam on ways to enhance cooperation in logistics, the Saudi Press Agency reported.  

During these sessions, they explored the Kingdom’s role as a supplier of vital minerals in the global supply chain and discussed investment cooperation with Dutch companies in metal processing and recycling. 

Earlier in May, Saudi Arabia’s General Authority for Survey and Geospatial Information served as a strategic partner in the Geospatial World Forum, a global event featuring over 300 speakers specializing in geospatial information.  

During the opening session, Mohammed Al-Sayel, president of the authority, emphasized the importance of geospatial information for decision-making in the rapidly growing Saudi economy.


What changed in Saudi stocks on the first day of foreign entry 

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What changed in Saudi stocks on the first day of foreign entry 

RIYADH: Saudi Arabia’s stock market saw foreign non-strategic investors reduce their ownership in nearly half of the companies listed on the main Tadawul All Share Index, or TASI, on the first day of implementing the decision to open the market to all categories of foreign investors, according to Tadawul data reflecting ownership positions as of Feb. 1  

According to the Financial Analysis Unit at Al-Eqtisadiah, foreign ownership declined in 120 companies, increased in 97 others, and remained unchanged in the rest, with no variation in the number of shares held by foreign investors. 

Foreign investors favor growth stocks 

Looking at the changes purely through valuation multiples — without factoring in operational or sectoral considerations — foreign investors appear to be reallocating ownership toward growth stocks at the expense of value stocks, with higher multiples used as an approximate indicator of growth. 

Ownership declines were concentrated in companies with lower valuation multiples, where the median price-to-earnings ratio stood at about 17.1 times and the median price-to-book ratio was around 2 times. 

Conversely, ownership rose in companies with higher multiples, with a median price-to-earnings ratio of 23.3 times and a median price-to-book ratio of 2.6 times. 

Mid- and small-cap firms see biggest changes 

Raoom, Entaj, and Obeikan Glass saw the largest declines in foreign ownership, dropping between 10 percent and 16 percent. In contrast, Tamkeen, SACO, and Abo Moati led gains, with foreign stakes rising 10 to 20 percent. 

In terms of overall foreign ownership, Al-Babtain, Rasan, and Etihad Etisalat topped the list at roughly 34 percent, 29 percent, and 24 percent, respectively.

Gradual foreign inflow and delayed impact 

The initial changes remain insufficient to reflect a major impact of the full foreign access decision, especially as the first day coincided with the weekend. Additionally, entry is expected to be gradual until financial institutions are fully ready to open accounts, particularly for individuals. 

Mohammed Al-Shammasi, CEO of Derayah Financial, has told Asharq that the firm received around 500 individual investor applications on the first day of full foreign access. 

Meanwhile, foreign institutions managing under $500 million can now invest directly in the market with easier access, joining more than 4,000 qualified foreign investors who already hold assets worth SR377 billion ($100.5 billion)