Saudi Arabia launches bid for seven mining exploration licenses

The exploration sites span various regions and are rich in valuable minerals. The Umm Qasr site in Riyadh, covering over 20 sq. km., is known for its deposits of gold, silver, lead, and zinc. File
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Updated 08 August 2024
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Saudi Arabia launches bid for seven mining exploration licenses

RIYADH: Saudi Arabia has launched a competitive bid for seven new mining exploration licenses, covering an area of approximately 1,000 sq. km.

Announced on Aug. 7 by the Ministry of Industry and Mineral Resources, this initiative seeks to attract both local and international investors to explore these promising sites.

The exploration sites span various regions and are rich in valuable minerals. The Umm Qasr site in Riyadh, covering over 20 sq. km., is known for its deposits of gold, silver, lead, and zinc.

Another site, Jebel Sabha in Riyadh, extends over 171 sq. km. and contains silver, lead, zinc, and cobalt. Wadi Doush in Asir, which spans more than 157 sq. km., holds deposits of gold, silver, and copper.

The Shuaib Marqan site in Riyadh covers over 92 sq. km and is rich in copper, silver, and gold. The Wadi Al-Jouna site in Asir, the largest of the sites, encompasses 425 sq. km. and contains copper, zinc, silver, and gold.

The Hazm Shubat site in Asir, covering over 93 sq. km., is noted for its gold deposits. Lastly, the Huwaimdhan exploration site in Makkah covers an area of more than 34 sq. km. and also contains gold.

This competition is part of the broader Exploration Enablement Program, designed to accelerate the exploration and development of Saudi Arabia's estimated mineral wealth, valued at SR9.3 trillion ($2.48 trillion). The initiative supports Vision 2030’s goal of establishing mining as a crucial pillar of the national industry.

Interested parties must submit their technical bids by early September 2024, with the winners expected to be announced by the end of the month. The ministry has made geological and technical data available through a dedicated platform to assist bidders.

The evaluation process for the bids will be both transparent and fair, with 70 percent of the evaluation based on the technical work program and expertise, and the remaining 30 percent based on community contributions and innovation.

To further encourage investment, new incentives include support of up to SR7.5 million for companies holding exploration licenses for less than five years, allowing 100 percent foreign ownership, and financing up to 75 percent of capital costs through the Saudi Industrial Development Fund.

Investors interested in participating can visit the ministry’s mining platform to review detailed information and download relevant technical and geological reports.

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Herfy: key shareholder Savola requests vote on board member dismissal

Updated 09 October 2024
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Herfy: key shareholder Savola requests vote on board member dismissal

  • On Monday, Herfy announced that it had arranged a general assembly for Nov. 4

RIYADH: Herfy’s biggest shareholder has requested a meeting of stock owners to vote on the dismissal of a board member, the Saudi food services firm announced on Tuesday.
Savola Group requested the meeting so shareholders can vote on removing Mohammed Abdulaziz Alshetwey from his board seat.
Savola owns a 49 percent stake in the Saudi food services company, according to a company profile on the Saudi stock exchange.
Herfy, founded in 1982, owns an extensive set of restaurants and is one of the Kingdom’s first fully integrated food services company with its own bakery factory.
On Monday, Herfy announced that it had arranged a general assembly for Nov. 4 and invited shareholders to participate to decide whether to dismiss Chairman Mutaz Qusai Alazzawi.
The company said Ahmad Hamad Alsaid, a shareholder and a former chairman of Herfy, requested the meeting to vote on the chairman’s removal.
Herfy issued a statement addressing what it called “rumors” against the company, including accusations by Alsaid of “misrepresentation in the financial statements” of the Saudi firm.
The letter to shareholders, outlined a list of 11 statements regarding the conduct of Alsaid, including hiring relatives and supplying products to firms “not affiliated with Herfy outside of Riyadh”.
“The company’s management affirms that it did not intend to engage in these disputes, but in light of what is being circulated on social media regarding the company, it was the company’s duty to clarify the facts and take the necessary measures to move the company forward and strive to achieve everything that is in its best interest and the interest of its shareholders,” the statement said.


Saudi Arabia’s Bahri Chemicals set for 56.9% cargo transportation surge in 2024

Updated 08 October 2024
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Saudi Arabia’s Bahri Chemicals set for 56.9% cargo transportation surge in 2024

  • Fleet expansion and rising demand is fueling the increase, company’s president tells conference

RIYADH: Cargo transported by Bahri Chemicals is set to hit 9.1 million tonnes this year — a 56.9 percent rise from 2022, according to a top official.

During a keynote session at the 19th ICIS Middle Eastern Base Oils and Lubricants Conference in Riyadh, Faisal Al-Husseini, president and board member of the firm, noted fleet expansion and rising demand was fueling the increase.

Bahri Chemicals was launched in 1990 and is a joint venture between Saudi Basic Industries Corp. and Bahri — the national shipping carrier of Saudi Arabia.

Al-Husseini said: “Bahri Chemicals is seeking to continue its growth and expand its fleet, and we intend to focus on the types of vessels that can transit through the Red Sea, because they add the most value to our customers.”

As well as reflecting on Bahri Chemicals’ growth, the official used his address to flag up the challenges to vessels caused by tensions in the Red Sea.

He said the company estimates the total cost of disruption to global shipping through the Bab Al-Mandab Strait since November has reached $323 billion and is “increasing every day.”

Concerns over the using the shipping lane increased dramatically at the end of 2023, when Houthi militants stepped up attacks on vessels in the wake of the escalation of the Israel-Hamas conflict. 

Al-Husseini stated that Bab Al-Mandab Strait — the narrowest entry point to the Red Sea — is a critical choke point for global trade.

“With the attacks on shipping, we’re seeing the majority of ship owners avoiding the Bab Al-Mandab Strait, going a much longer route around the Cape of Good Hope in order to reach their destinations. In so doing, disrupting supply chains in the region,” Al-Husseini said.

The official compared the impact of recent disruptions in the Red Sea to the Ever Given incident that blocked the Suez Canal in March 2021.

While that blockage lasted just six days and cost the global economy $6-$10 billion per day, the Red Sea disruptions have lasted nearly 11 months.

“To date, at the time of preparing this presentation, there were 100 incidents that have been reported of attacks on civilian merchant vessels transiting the Red Sea,” Al-Husseini said.

He continued: “Today, that number is actually higher. It’s 103 incidents ranging in severity from threats or hostile warnings to actual attacks on vessels where there have been civilian casualties and damage to the vessels.”

Al-Husseini ended his address with a warning, saying: “The attacks against shipping in the Red Sea is ongoing, and it remains severe. I wish I could give you some good news and tell you that it’s improving, but with the ongoing geopolitical turmoil that we see, it is actually becoming more severe.”

During the opening remarks of the conference, Majed Hindi Al-Uteibi, deputy minister for oil and gas and regulatory affairs, stated that the Ministry of Energy is looking to secure international investors to help develop local expertise and increase localization.

He said government departments were working with the Royal Commission for Jubail and Yanbu, the National Industrial Development Center, Luberef, and international investors to develop the Lubricants Value Park at Yanbu.

This facility was launched in February 2020 by Saudi Aramco Base Oil Co., also known as Luberef, which is 70 percent owned by Saudi Aramco, while Jadwa Industrial Investment Co. holds the remaining 30 percent stake.

“The Ministry of Energy is working through this special team to localize new technologies in this sector and attract global investors to transform the Kingdom into the largest manufacturer and exporter of these products,” Al-Uteibi said.

Al-Uteibi explained that this will help increase localization rates and meet the growing local and regional demand for these products.

“Saudi Arabia is also positioning itself as a logistical hub for the region, supported by its strategic location, which comes at the crossroads of economic interdependence and trade flows,” Al-Uteibi said.

He continued: “This unique positioning is creating a growing local demand for fit-for-purpose lubricants, reinforcing the Kingdom’s position as a key player in the global lubricants market.”

He further highlighted the potential and growth of the global lubricants market, valued at $140 billion in 2023 and expected to grow at an annual rate of 3.8 percent through 2030.

“Those numbers are more than just figures – they represent the momentum of our industry and the vast opportunities that lie ahead. It is a call for action by all of us to push the boundaries beyond what is possible today and to be at the forefront of innovation,” Al-Uteibi said.

Saudi Arabia’s Vision 2030 aims to position the country as a global leader in industries such as lubricants and base oils.

He stressed that several sectors, including mining and industrial manufacturing, are expected to experience significant growth, helping to enhance the Kingdom’s leadership in the lubricants market.

“The renewable energy sector is also emerging as a key area of focus for us, with the expansion of renewable energy projects in the Kingdom,” Al-Uteibi said.

He continued: “This growth will drive demand for lubricants designed to improve the efficiency and durability of wind turbines, ensuring sustainable and reliable energy production.”

These developments reflect Saudi Arabia’s commitment to energy diversification and industrial advancement.


Bahrain’s economy grows 1.3% in Q2, ministry report reveals

Updated 08 October 2024
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Bahrain’s economy grows 1.3% in Q2, ministry report reveals

  • Overall GDP was affected by a 6.7% decline in the oil sector’s GDP compared to the same period last year
  • Real GDP growth is projected to accelerate to 3.8% in 2025

RIYADH: Growth in Bahrain’s non-oil sectors boosted its economy by 1.3 percent year-on-year, reaching 3.7 billion dinars ($9.8 billion) in the second quarter of this year, according to newly released figures.

Issued by the country’s Ministry of Finance and National Economy, citing preliminary data from the Information and eGovernment Authority, the newly released report shows that non-oil gross domestic product grew by 2.8 percent during the period and contributed more than 85 percent to the overall GDP. 

The analysis further indicated that the Gulf country’s overall GDP was affected by a 6.7 percent decline in the oil sector’s GDP compared to the same period last year.

The rise reflects Bahrain’s diversification efforts, aligning with the country’s Economic Vision 2030, a comprehensive development plan to transform the economy.

Being one of the most indebted economies and a small oil producer in the region, Bahrain has introduced reforms to facilitate doing business, create more jobs, and attract foreign investment to boost economic growth.

The Ministry of Finance expects Bahrain’s economy to grow by 3 percent in 2024, driven mainly by non-oil sectors as the government accelerates efforts to diversify sources of income and economic sectors away from hydrocarbons. 

The growth will be driven primarily by a diverse range of non-oil activities, which is forecasted to expand by 3.8 percent during this year.

Looking ahead to 2025, real GDP growth is projected to accelerate to 3.8 percent. The non-oil activities are anticipated to experience an even stronger expansion of 4.5 percent during 2025, as expected progress around the Bapco Modernization Program will be fully seen.

The program’s objective is to increase refining capacity and improve energy efficiency, with a vision of becoming one of the most competitive and environmentally compliant oil refineries regionally, providing a solid foundation for realizing the country’s Vision 2030. 

Bahrain’s real GDP grew by 3.3 percent year on year in the first quarter of 2024, according to a government report released at the time. 

National accounts estimates issued by the Information and eGovernment Authority at the time showed that the Gulf state’s non-oil GDP rose by 3.3 percent during that period, contributing about 85.9 percent of GDP.  

The report added that oil GDP grew 3.4 percent, with accommodation and food services, financial activities, and insurance among the best-performing sectors.

The economies of the Gulf Cooperation Council countries have demonstrated positive performance in non-oil activities during the year despite the global challenges, while oil activities declined due to supply cuts implemented by OPEC+. However, factors such as interest rate cuts and the gradual increase in oil production are expected to persist in GCC countries.


Saudi expat remittances see 10% growth to reach $3.16bn

Updated 08 October 2024
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Saudi expat remittances see 10% growth to reach $3.16bn

  • Transfers sent abroad by Saudi nationals rose by 19% year on year, totaling SR5.83 billion
  • Kingdom ranks among the largest remittance-sending countries globally, says US State Department

RIYADH: Expatriate remittances from Saudi Arabia reached SR11.86 billion ($3.16 billion) in August, marking a 10 percent annual increase, according to recent data. 

Figures from the Saudi Central Bank, also known as SAMA, also revealed that transfers sent abroad by Saudi nationals rose by 19 percent year on year, totaling SR5.83 billion. 

As one of the world’s largest sources of remittances, Saudi Arabia plays a crucial role in shaping the financial well-being of millions of households worldwide. 

With nearly 75 percent of the Kingdom’s labor force consisting of foreign workers, Saudi Arabia’s policies and job market conditions significantly influence the flow of remittances, highlighting not just the country’s economic strength but also its deep interconnectedness with the global financial system. 

This relationship underscores how labor migration and cross-border financial support have become vital for communities far beyond Saudi borders. 

According to the US Department of State, the Kingdom ranks among the largest remittance-sending countries globally, benefiting from an open financial system with no restrictions on converting or transferring funds related to investments, including dividends or earnings. 

This regulatory environment enables a seamless flow of money across borders, eliminating delays in sending funds through legal channels. 

At the heart of this remittance system is the Wage Protection System, implemented by the Ministry of Human Resources and Social Development. This system ensures that expatriate workers, who are the backbone of the remittance ecosystem, receive their wages as per their contracts. 

Employers are required to transfer wages through local Saudi bank accounts, giving expatriates easy access to their earnings for remittance to their home countries. 

The transparency provided by this system not only protects workers’ rights but also offers an efficient legal framework for expatriates to support their families abroad. 

The rise of digital platforms, independent of traditional banks and exchange houses, has also driven growth in the sector.  

With widespread smartphone and Internet access, digital remittances have become more accessible, allowing users to send funds anytime, anywhere. These platforms offer advantages such as competitive exchange rates, lower fees, and faster processing times, enabling near-instant access to funds for recipients. 

Financial institutions and fintech companies have further contributed by developing innovative solutions, including mobile apps and digital wallets. 

Additionally, supportive regulations from Saudi and regional authorities have created a secure environment for digital services, fostering competition while protecting user interests. 


Closing Bell: Saudi main market closes in green at 12,027

Updated 08 October 2024
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Closing Bell: Saudi main market closes in green at 12,027

  • MSCI Tadawul Index also saw an increase, gaining 16.72 points to end the day at 1,508.72
  • Parallel market faced a setback, dropping 105.82 points to close at 24,543.25

RIYADH: The Tadawul All Share Index in Saudi Arabia experienced a positive surge on Tuesday, rising by 113.55 points, or 0.95 percent, to close at 12,027.17.

The benchmark index recorded a total trading turnover of SR8.22 billion ($2.19 billion), with 111 stocks gaining ground while 116 declined.

The MSCI Tadawul Index also saw an increase, gaining 16.72 points to end the day at 1,508.72. In contrast, the parallel market faced a setback, dropping 105.82 points to close at 24,543.25.

A significant factor in the main index’s performance was the impressive 29.97 percent surge in Al Majed Oud Co.’s share price, which reached SR158.80. Other notable performers included Al-Baha Investment and Development Co., whose shares rose by 9.09 percent to SR0.36, and Fawaz Abdulaziz Alhokair Co., with a 7.19 percent increase to SR10.58.

Dar Alarkan Real Estate Development Co. saw its share price hit an all-time high of SR14.58 during the day, the highest since October 2022. It closed at SR14.54, marking a 5.82% increase from the previous session.

On the downside, Saudi Fisheries Co. was the worst performer, with its share price declining by 4.19 percent to SR27.45.

Additionally, Arabian Mills for Food Products Co. began trading on Tadawul on Oct. 8, marking the 10th listing on the Kingdom’s main market this year. The food company started trading at SR66 but closed Tuesday’s session at SR65.80, a decrease of 0.30 percent.

On the announcements front, United Electronics Co., known as eXtra, reported a net profit of SR356.7 million for the first nine months of the year, representing a 34.91 percent increase compared to the same period in 2023.

The company attributed this growth to increased retail segment sales driven by stable demand in the Saudi market. Following the announcement, eXtra’s share price rose by 2.96 percent to SR93.90.

Tamkeen Saudi Human Resources Co. has announced plans for an initial public offering to list its ordinary shares on Tadawul.

The company will offer 7.9 million shares, which constitutes 30 percent of its total issued shares. The final share price will be set after the order book-building period concludes.

Tamkeen is 25 percent owned by Sulaiman Al Habib Medical Services Group, which is also listed on Tadawul. Headquartered in Riyadh, Tamkeen provides human resources and domestic work services across nine branches in Saudi Arabia.