Saudi Arabia’s Arabian Mills eyes raising $271m from IPO

Arabian Mills has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes. Arabian Mills
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Updated 02 September 2024
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Saudi Arabia’s Arabian Mills eyes raising $271m from IPO

  • It will offer 15.4 million shares, or 30% of its capital, at a price range of SR62 to SR66
  • Arabian Mills’ listing comes as the Kingdom continues to dominate IPO activities in the region

RIYADH: Saudi wheat flour producer Arabian Mills for Food Products Co. plans to raise up to SR1.01 billion ($271 million) through its initial public offering on the Tadawul main market. 

The company announced it will offer 15.4 million shares, or 30 percent of its capital, at a price range of SR62 to SR66. The institutional book-building period began on Sept. 1 and will close on Sept. 5. 

Arabian Mills’ listing comes as Saudi Arabia continues to dominate IPO activities in the region. 

A report by the Kuwait Financial Center in July revealed that the Kingdom led the Gulf Cooperation Council IPO market, raising $2.1 billion in the first half, a 141 percent increase from the same period in 2023. 

“The decision to go public is a decisive one toward accelerating our growth trajectory,” said Rohit Chugh, CEO of Arabian Mills. “Looking ahead, the growing market for wheat flour, feed, and bran in the Kingdom presents compelling opportunities, and we are well-positioned to capitalize on robust demand through continuous innovation and quality enhancements.”  

He added: “By going public, we are also committing to higher standards of transparency and corporate governance, which we believe will ultimately benefit our shareholders and other stakeholders alike.” 

The total offering size is expected to be between SR954 million and SR1.01 billion, implying a market capitalization ranging between SR3.18 billion and SR3.38 billion. 

The final offering price will be determined on Sept. 11, with the retail subscription period running from Sept. 18 to 19. 

The company added that the final allocation of offer shares will be on Sept.26, with a refund of excess monies scheduled on Oct. 3. 

HSBC Saudi Arabia has been appointed as the financial adviser, global coordinator, bookrunner, underwriter, and lead manager for the listing. 

Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi will serve as receiving agents for retail investors. 

Arabian Mills has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes, according to its website. 

By the end of 2023, the company held a 28.4 percent market share in Saudi Arabia, a 1.2 percent increase from 2021. 

“This IPO is a catalyst for Arabian Mills to achieve sustainable, long-term growth and to continue our purpose of driving milling excellence and delivering nutrition,” added Chugh. 


Saudi cement exports reach 8.48m tonnes in 2023 as industry eyes sustainable growthSaudi cement exports reach 8.48m tonnes in 2023 as industry eyes sustainable growth

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Saudi cement exports reach 8.48m tonnes in 2023 as industry eyes sustainable growthSaudi cement exports reach 8.48m tonnes in 2023 as industry eyes sustainable growth

  • In 2023, foreign sales of the resource reached over 8.48 million tonnes
  • Launch of City Cement Co.’s sustainability report marks a significant step toward a more eco-conscious future for the sector

RIYADH: Saudi Arabia’s cement and clinker exports have stayed above 8 million tonnes for four years in a row — double the amount recorded in 2018, according to the latest figures.

New data showed that in 2023, foreign sales of the resource reached over 8.48 million tonnes.

The Minister of Industry and Mineral Resources, Bandar Alkhorayef, emphasized this during the launch of “Madinah Cement Co’s” first sustainability report, reported the Saudi Press Agency.

During the launch, Alkhorayef discussed the Kingdom’s position as the leading cement producer in the Arab world and the 10th largest globally, with an annual production capacity exceeding 80 million tonnes. 

Saudi Arabia’s cement industry is supported by 20 factories across the country. 

The minister said that domestic demand for cement reached approximately 47.3 million tonnes in 2022, driven by ongoing large-scale development projects. With construction sector investments expected to hit SR6 trillion ($1.6 trillion) by 2030, demand is projected to rise further.

Alkhorayef emphasized the efforts of leading companies to adopt the latest manufacturing technologies, which improve production efficiency. Several firms have recently upgraded their production lines to enhance the quality of products.

Saudi Arabia’s cement industry is vital in supporting the Kingdom’s ambitious Vision 2030 initiatives, including NEOM, the Red Sea Project, and Qiddiya. 

These undertakings, aimed at diversifying the economy away from oil dependency, are driving significant demand in the construction and infrastructure sectors, leading to a surge in the consumption of building materials such as cement.

This positions the Kingdom as a key player in the regional and global cement markets, meeting domestic needs and increasing exports to international markets, reflecting the sector’s competitive edge.

Alkhorayef further outlined the ministry’s strategic recommendations to make the cement sector more sustainable. These undertakings, developed in collaboration with relevant authorities, include the Industrial Competitiveness Program and the Liquid Fuel Displacement Program. 

Their implementation is expected to boost energy efficiency, lower production costs, and reduce carbon emissions, particularly within the cement sector. 

The minister also mentioned an initiative involving the Cement Companies National Committee, King Abdullah University of Science and Technology, and other stakeholders to research to minimize industry carbon emissions and produce environmentally friendly cement.

The launch of City Cement Co.’s sustainability report marks a significant step toward a more eco-conscious future for the sector. The study highlights the firm’s efforts to convert waste into alternative fuels for cement production and its recent agreement with a leading company to incorporate green technologies. 

The release of the inaugural sustainability report aligns with the Vision 2030 goals, reinforcing the organization’s role as a responsible leader in the sector. 

It also outlines tangible governance, social responsibility, and environmental protection initiatives, further enhancing its reputation as a company that adheres to global best practices.


NEOM to set up $187m concrete factory to support THE LINE project

Updated 46 min 39 sec ago
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NEOM to set up $187m concrete factory to support THE LINE project

RIYADH: Saudi Arabia’s upcoming linear city project THE LINE is set to benefit from a new ready-mix concrete factory valued at SR700 million ($186.7 million). 

NEOM has partnered with Asas Al-Mohileb to develop and operate this facility, which will focus on producing sustainable concrete primarily for the construction of the smart city, which is designed to accommodate 9 million residents within a compact 34 sq. km footprint. 

The multi-plant factory will have the capacity to produce over 20,000 cubic meters of green concrete daily. 

Scheduled to begin operations in November, the facility aims to reach peak production by 2025 and is projected to create over 500 local jobs, contributing to the region’s economic growth. 

THE LINE, extending 170 km from the mountains of NEOM to the Red Sea, features a mirrored structure rising 500 meters above sea level while spanning just 200 meters in width. This innovative design underscores NEOM’s ambition to redefine urban living. 

Nadhmi Al-Nasr, NEOM CEO, said: “The delivery of these concrete plants is another testament to the rapid progress happening at NEOM. It also underscores the strength of the Kingdom’s construction industry, and the critical role local partnerships play in delivering this transformational project efficiently and sustainably.” 

The $500 billion giga-project NEOM, a key component of Saudi Arabia’s Vision 2030, aims to diversify the economy beyond oil by establishing a sustainable, tech-driven region in the country’s northwest.

Key initiatives include developing renewable energy, smart cities like THE LINE, and advanced industries while attracting global investors and fostering innovation in sectors such as biotech, robotics, and mobility. 

“This partnership emphasizes our firm commitment to advancing economic growth in the Kingdom by employing the latest technologies and innovative construction solutions,” said Sulaiman Al-Mohileb, CEO of Al-Mohileb.  

He noted that this initiative aligns with Vision 2030’s goals to strengthen the manufacturing sector and drive national development. 

The advanced concrete facility will integrate carbon capture and utilization technology and other energy-saving measures. 

Most of its output will support the construction of THE LINE, where concrete is essential for both substructure and superstructure elements. 

As construction progresses, the facility is poised to play a crucial role, with nearly 1,000 of the planned 30,000 foundation piles alrady completed.


Saudi Arabia’s fisheries, aquaculture production jumps 55.56% in 2023

Updated 08 October 2024
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Saudi Arabia’s fisheries, aquaculture production jumps 55.56% in 2023

  • Total catch from marine fisheries in the Red Sea and Arabian Gulf reached 74,700 tonnes
  • Kingdom annually exports 59,844 tonnes of fish and shrimp, totaling SR1.1 billion

JEDDAH: Saudi Arabia’s fisheries and aquaculture production rose by 55.56 percent in 2023 to over 140,000 tonnes, underscoring the Kingdom’s commitment to food self-sufficiency and sustainable development.

The Ministry of Environment, Water, and Agriculture said that the country has set new records in saltwater and inland aquaculture projects, achieving unprecedented production levels compared to the 90,000 tonnes recorded in 2021, according to the Saudi Press Agency.

MEWA added that the total catch from marine fisheries in the Red Sea and Arabian Gulf reached 74,700 tonnes, marking a 16.2 percent increase from 64,300 tonnes at the end of 2022, bringing the combined production from aquaculture projects and marine fisheries to 214,000 tonnes last year.

Saudi Arabia’s National Fisheries Development Program is focused on sustainably boosting the economic role of the fisheries and aquaculture sector. The initiative emphasizes optimizing natural resource use, increasing the division’s contribution to the gross domestic product, achieving self-sufficiency in seafood, and diversifying income sources.

Aquaculture in the Kingdom began in 1982 and has evolved significantly, positioning the nation as a leading exporter of white shrimp. The country has set an ambitious target to produce 600,000 tonnes of fish by 2030 while fostering local investments and generating job opportunities.

The ministry is implementing strategic programs to boost fish product self-sufficiency, improve quality standards, introduce new species for farming, and attract investments. It also aims to raise individual fish consumption to 13 kg annually.

The authority said that key fish species produced in Saudi Arabia include Nile tilapia, sea bass, sea bream, shrimp, and varying proportions of other groups.

The ministry said the fisheries sector is experiencing rapid growth due to its developmental efforts and increased investments. It highlighted a significant rise in aquaculture projects across marine, inland waters, and closed systems. Furthermore, expanding development loans in aquaculture and marine fisheries has contributed to this progress.

The ministry also underscored its focus on promoting modern technologies, supporting and facilitating investment procedures, and enhancing the capabilities of small-scale fishermen.

MEWA said that these efforts are designed to empower the private sector and enhance agriculture’s contribution to the national economy, aligning with the objectives of Saudi Vision 2030.

The Kingdom annually exports 59,844 tonnes of fish and shrimp, totaling SR1.1 billion ($293 million), shipping the seafood to international markets. 


ACWA Power secures $150m deal to finance wind power plants in Uzbekistan 

Updated 08 October 2024
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ACWA Power secures $150m deal to finance wind power plants in Uzbekistan 

RIYADH: Saudi utility giant ACWA Power has signed a letter of intent with the Asian Infrastructure Investment Bank to provide $150 million for three wind power plants in Uzbekistan. 

According to a press statement, the financing covers the Kongrad 1, 2, and 3 facilities, each with a capacity of 500 megawatts. 

The Tadawul-listed firm added that the financing term is four years and will be backed by an institutional guarantee provided by ACWA Power. 

Uzbekistan is one of the key foreign markets for the utility firm, with the company significantly involved in the Central Asian nation’s renewable energy sector in recent years. 

Its current portfolio in Uzbekistan comprises 11.6 gigawatts of power, of which 10.1 GW is renewable, as well as the country’s first green hydrogen project, with a capacity of 3,000 tonnes per year. 

“This announcement marks an important step forward in our commitment to delivering clean, reliable and affordable energy in Uzbekistan,” said Mohammad Abunayyan, founder and chairman of ACWA Power. 

He added: “The Kungrad wind projects are expected to significantly contribute to Uzbekistan’s renewable energy goals, and we look forward to working with our long-standing partner AIIB to bring this vision to life.” 

Jin Liqun, president of AIIB, stated that the Kungrad wind project is expected to catalyze Uzbekistan’s energy transition journey. 

The country aims to produce 40 percent, or 27 GW, of its overall electricity demand from renewable sources such as wind and solar photovoltaic. 

“By enhancing energy efficiency and transitioning to renewable energy resources, these climate mitigation projects support Uzbekistan’s ambitious renewable energy targets and align with AIIB’s commitment to sustainable infrastructure,” added Liqun. 

In July, ACWA Power signed financing deals worth $373.1 million for Tashkent’s Riverside power plant, which aims to generate 200 MW of solar photovoltaic energy and store 500 MW per hour using batteries. 

In March, the Saudi company also secured a $255.12 million power purchase agreement with Uzbekistan’s National Electric Grid for the Nukus 2 200-MW wind project. 

Established in 2004, ACWA Power currently operates in 13 countries across the Middle East, Africa, Central Asia, and Southeast Asia. 

The company stated that it currently manages a portfolio of 90 projects valued at $94.3 billion, capable of generating 65.6 GW of power.


Saudi Arabia leads Arab region in green building projects with 2k registrations

Updated 08 October 2024
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Saudi Arabia leads Arab region in green building projects with 2k registrations

  • Surge in green building projects aligns with Saudi Arabia’s rapid population growth and heightened environmental awareness
  • Saudi green building market is projected to generate $16.4 billion in revenue this year

RIYADH: Saudi Arabia has made significant strides in sustainable construction, registering 2,000 of the 5,000 green building projects across the Arab world, according to a top official. 

Speaking at the opening of the 14th annual Saudi Green Building Forum, held in Riyadh from Oct. 6-8, Minister of Municipalities and Housing Majed Al-Hogail highlighted the Kingdom’s numerous milestones in this sector, reported the Saudi Press Agency. 

The surge in green building projects aligns with Saudi Arabia’s rapid population growth and heightened environmental awareness, driving the shift toward energy-efficient structures and the increased use of green building materials. 

The Saudi green building market is projected to generate $16.4 billion in revenue this year and is expected to grow at a compounded annual rate of 12.3 percent, reaching $33.0 billion by 2030, according to market research firm Prescient & Strategic Intelligence. 

During his speech, Al-Hogail said that these developments reflect the Kingdom’s commitment to sustainable practices, fostering a qualitative transformation in urban development. 

He added that this initiative underscores Saudi Arabia’s dedication to enhancing the efficiency of natural resource utilization, reducing carbon emissions, and creating healthy and safe urban environments. 

Al-Hogail also underscored the importance of this year’s forum, stating it addresses critical issues for the future of environmental sustainability. He noted that green buildings are essential for achieving sustainable development goals, aligning with Saudi Vision 2030 objectives. 

During the same event, Aramco’s Deputy Chief Engineer, Waleed Al-Naim, announced that the oil giant had launched a $1.5 billion sustainability fund to address climate challenges. 

This year’s forum focused on the optimal operation of cities in alignment with green building standards while addressing the connection between the construction and infrastructure sectors and environmental, climate, and desertification issues. 

To achieve this, the emphasis will be on strengthening the role of the government sector and cultivating partnerships with the private sector to support the localization of sustainable development goals in alignment with Saudi Vision 2030. 

Since its inception in 2010, the Saudi Green Building Forum has established the Kingdom as a leader in sustainable development, recognized by the UN Economic and Social Council. 

As a vital platform for dialogue and collaboration, the forum continues to drive Saudi Arabia’s sustainability agenda and shape the future of green building and urban development in the region.