RIYADH: Turkish construction giant Yuksel Insaat has won a SR2.29 billion ‘Riyadh Rapid Bus Transit System’ (BRT) project, which is part of the impressive King Abdulaziz Transport System plan.
Ar-Riyadh Development Authority (ADA) has awarded the contract to Yuksel, while the local Alinma Bank has extended SR872 million project financing facility to implement project.
Yuksel has received the letter of intent.
“The project mainly includes road rehabilitation schemes, construction of 21 pairs of Bus Rapid Transit System Stations, 2574 community bus stops and 7 pedestrian bridges in the Saudi capital city,” said Ahmet Halavuk, Yuksel’s general manager.
As is typical of the BRT systems, he said that the new line would allow rush-hour buses to travel in bus-only lanes specifically highway shoulder lanes with the aim of reducing traffic period and easing the time of commute.
Ahmet said that the BRT would be an efficient, high capacity, and cost effective transit solution that many global cities are using at the moment.
Through the utilization of exclusive lanes, off-board fare payment and platform level boarding; well-planned and delivered BRT systems with clean buses can provide metro-quality service at a fraction of the cost.
This will be generating enormous shift from private car to public transportation systems, explained Ahmet, who has taking keen interest in promoting Saudi-Turkish harmonious bilateral relations.
Arab News caught up with Ahmet to know more about new project, Yuksel’s other projects in Saudi Arabia and GCC countries as well as the company’s pioneering role in constructions of dams and implementation of key infrastructure projects across the length and breadth of the country.
Here are the excerpts
of the interview:
Q: Many congratulations for winning the SR2.29 billion prestigious BRT project from ADA. How confident you are to implement this project?
A: We are quite confident and we will complete and deliver it on time.
According to ENR (Engineering News Record) rankings, Turkish contractors has big share in the world in which Yüksel is also listed.
With high quality commitment capability and massive experience in the international construction market, we are always encouraging Turkish contractors to invest in Saudi Arabia considering its market stability and long term infrastructure and housing projects as well as we are also trying to increase our market share.
As being Saudi-Turkish contractor with our experience exceeding 30 years in the Saudi market, we play a key role in business between the two countries.
In fact, Yuksel name is well known with its quality and on time construction ability in the Saudi construction market.
Our strong name has an added value to help us on implementation of this prestigious project.
We have already mobilized workers and in fact the workers’ mobilization has been started before the project was even formally awarded to us. So we are committed to successfully execute this significant project.
Q: Yuksel has been playing a pioneering role in the construction sector of the Kingdom. On the other hand, your company and you in person have evinced keen interest to promote Saudi-Turkish ties. What is your perception about the relations between the two countries now?
A: Engineers are uniquely qualified to be managers and leaders, in large part because they understand systems-thinking so well.
Once you understand that organizations are simply systems of people, then you’ve got it made.
This is what I do with the company and with Saudi agencies.
Recently, the number of tourists visiting Turkey from Saudi Arabia recorded an increase by 30 percent.
I understand that once Saudis become fully aware of the historical and cultural beauties of Turkey as well as the hospitable nature of our people, the people-to-people interaction will grow by manifold.
In the meantime, we know that Saudi citizens are investing in Turkey mainly in real estate sector by having land and apartments in Istanbul, Bursa, Trabzon etc.
On the other hand, Saudi companies are also investing in agriculture and energy sectors in Turkey.
So, we believe that by knowing each other Saudi-Turkish relations will become much stronger.
Q: I would like to know the specifics of the BRT project, as it will change the landscape of the capital city. What is the strategy and how do you plan to handle this key project— the third phase of Riyadh Bus Rapid Transit System (BRT)?
A: Thank you. Yes, indeed it is a key project. With a manpower of more than 300 members at the initial stage, we aim to consolidate our position as the time progresses providing value based qualified services, because it is an important project for the city, which will end its traffic congestion and ensure smooth traffic in the capital and can attract more favorable economic impact for the city.
We are very much hopeful to finish it well on time.
The project, once implemented, will alleviate the sufferings of daily commuters.
Bus and Metro transport, which is connected to each other logistically as there is huge congestion on busy roads, will help to solve the traffic problems which will be compounder further with the consistent growth of Riyadh city.
We wish to complete the BRT project in the given period of time.
Q: What is the time frame to complete the BRT project ? Don’t you think it is very short time, keeping in view the value, the scope of work and the technical skills required for the project?
A: It is 24 months’ period and Insha’Allah we will finish this task for this premium transport system for Riyadh city on time.
We are planning to add 4,500 employees in addition to available 3,500 work force of the company to complete the ambitious transport plan on time.
Q: Besides this BRT system, are there some other projects currently being executed by Yuksel?
A: Yes, there are flyover and bridge projects for smooth traffic system and the progress has reached about 50 percent.
It will be completed by May 2016,
which is also on time.
Moreover, we have one pipeline project for the Ministry of Water valued at SR610 million and an infrastructure project for Dammam University, which is worth SR350 million.
We are also executing infrastructure project in King Faisal University which is worth SR245 million.
We also have four renovation projects for hospital development, including in Al-Kharj and Al-Ahsa worth around SR430 million.
Furthermore, we have almost completed SR220 million desalination plants in the Kingdom and a major SR550 million project to develop King Khalid Air Base with an American company.
This is in addition to the ongoing SR630 million project of Riyadh governorate.
Q: In all, how many projects Yuksel has so far implemented in Saudi Arabia? What will be the cumulative value of all these projects?
A: The number of projects we have finished so far is 39 worth SR8.12 billion.
We are eyeing more projects in Saudi market and the Gulf market at the moment.
We started working in the Kingdom way back in 1983.
In fact, our technical capabilities, our on-time performance, our manpower strength and eventually delivery of projects in stipulated timeframe have impressed our valuable clients not only in Saudi Arabia, rather across the globe.
Q: Is Yuksel working to cut reliance on foreign workers and provide more employment to Saudis? How far you are following the Nitaqat program guidelines?
A: Yuksel is probably one of the few companies enjoying platinum level of acceptance as per Nitaqat guidelines.
We rank highest in terms of Saudization.
We will be hiring about 400 Saudi nationals for the BRT project alone.
We are working with more focus on Saudization program and at the core of it is our training of the Saudi youth and employing them as per Nitaqat guidelines.
Our motto is expansion in the Kingdom within the framework and the guidelines of the Saudization program including inclusive growth for citizens of this country.
We have made professional arrangements to fulfill this aspiration.
We have issued necessary instructions to our HR department to recruit suitable Saudi youth as per the norms.
Q: Besides Saudi Arabia, is Yuksel also working in other GCC countries? Which are the major projects, you have undertaken in those countries?
A: Yes, We are also working in other GCC countries on several projects including AED795 million infrastructure development projects in Abu Dhabi as well as highway and metro projects in Qatar and Oman.
In Qatar, we are executing a part of Doha metro worth QR2.38 billion and construction of a part of Lusail development project worth QR1.67 billion.
In Oman, we have started two road projects worth $220.8 million and negotiating on third project. So we have our presence in all the GCC countries.
We are also looking at some projects in Bahrain at the moment.
Q: As a major Turkish company, what kind of projects you are currently doing in Turkey and in adjoining countries?
A: In fact, Yuksel has been a market leader in terms of building dams, marine structures, transport systems and executing industrial projects across the globe including Turkey.
Recently, Yuksel signed contract concerning the construction of TANAP (Trans-Anatolia Natural Gas Pipeline Project), one of the largest energy infrastructure projects in Turkey.
The second of the first three packages of the tender for the pipeline to carry Azerbaijani natural gas to Turkey will be carried out by a consortium comprising Sicim (Italy), Yuksel (Turkey) and Akkord (Azerbaijan).
The scope of the $540 million contract covers the construction of a 450 km-long pipeline 56 inches in diameter.
The project is planned to be completed in 36 months. Starting at the Georgian border and running through Turkey transversely on an east-west axis, the TANAP will be connected to the TAP (Trans Adriatic Pipeline) on the Greek border.
Around 1,900 km in length, this pipeline is the largest-scale pipeline project of Turkey.
The first gas flow through the TANAP will take place in 2018.The aim is to gradually increase the annual capacity from 16 billion m3 in 2020 gradually to 23 billion and 31 billion m3 by 2026.
Q: Can you please brief me on your CSR part? Has Yuksel tied up with some charitable or social organizations to do community works?
A: As the Corporate Social Responsibility or CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others, we too are equally engaged in such activities.
We are also closely working with Turkish embassy on such initiatives as and when needed.
Like when there was a typhoon in Philippines, we have responded with some help to the devastated section.
Moreover, we wholeheartedly contributed during the series of quakes that devastated lives and properties in Nepal.
We are also participating with some charitable organizations and donate handsomely.
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Yuksel wins Riyadh’s SR2.29bn rapid bus transit system deal
Saudi Arabia and Austria sign MoU for economic cooperation
VIENNA: Saudi Arabia’s economy ministry and its Austrian counterpart signed a memorandum of understanding to boost economic cooperation between the two nations.
The Saudi Ministry of Economy and Planning Austria’s Ministry of Labor and Economy in the deal on the sidelines of the Saudi-Austrian Joint Committee held in the Austrian capital.
The MoU was signed by the Saudi Minister of Economy and Planning Faisal bin Fadel Al-Ibrahim, and the Austrian Minister of Labor and Economy, Martin Kocher.
The MoU aims to diversify and strengthen economic ties, exchange experiences and information, and encourage cooperation in a number of fields, including trade, industry, research and development, tourism, small and medium enterprises.
Among the content of the MoU is the organization of conferences, seminars and the exchange of visits between experts, in addition to cooperation between government institutions and the private sector.
The parties are also committed to protecting intellectual property rights and exchanging information for the purposes specified in the MoU.
This MoU comes within the framework of a cooperation agreement in the economic, commercial, industrial and technical fields signed between the two governments in 2004.
Xi calls for more jobs for youth, migrant workers
- (We should) insist that employment of young people including college graduates is a top priority: Chinese president
BEIJING: China’s President Xi Jinping called on Monday for efforts to promote high-quality and sufficient jobs for college graduates and migrant workers, while presiding over a Politburo group study session, state media Xinhua reported on Tuesday.
“(We should) insist that employment of young people including college graduates is a top priority,” the Xinhua report quoted Xi as saying at a group study session of the Politburo, a top decision-making body of the ruling Communist Party.
The Xinhua report did not give details on job promotion support measures or plans.
The survey-based jobless rate for 16-24 year-olds, excluding college students, was 14.7 percent in April, down from 15.3 percent in March, official data showed last week.
China’s statistics bureau revised its methodology by removing college students from the survey pool after youth jobless rate surged to around 20 percent last year.
Xi also said the government should take steps to promote the employment of migrant workers, guide them to return to their hometowns and for people to start businesses in the countryside.
He called for stabilizing the income of people who had been lifted out of poverty and preventing large-scale return to poverty due to unemployment, Xinhua said.
Companies and industries with strong job creation capabilities will be supported, the report said.
China created 4.36 million new urban jobs in the first four months, Human Resources Ministry data showed, 36 percent of its annual job creation target.
Saudis spent more money on electronic devices during the 4th week of May: SAMA data
RIYADH: Saudi Arabia’s point-of-sale spending reached SR11.2 billion ($2.98 billion) in the fourth week of May, official figures showed.
The latest data from the Saudi Central Bank, also known as SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.
Beverages and food, which accounts for the largest share at 14.9 percent, saw a 5.9 percent decline, reaching SR1.66 billion, during the week from May 19 to 25.
Meanwhile, transactions at restaurants and cafes, holding a 14.6 percent share, recorded a slower decline of 4.8 percent, amounting to SR1.64 billion.
Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 5.1 percent decline that week, reaching SR1.36 billion.
Despite composing only 1 percent of the week’s overall POS value, spending on education recorded a minimal increase of 0.1 percent to SR152.48 million.
In the past few years, this sector has been allocated the largest share of government expenditure in comparison to other divisions of the economy.
Efforts are underway to revamp the education system, aiming to equip the national workforce with the necessary skills to thrive in a technological and information-centric global economy.
The hotel sector experienced the largest decline in POS transaction value, dropping 10.9 percent to SR227.13 million.
According to data from SAMA, 35.44 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.97 billion. However, this represents a 1.6 percent decrease from the previous week.
Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.
Spending in Jeddah followed closely, accounting for 14.3 percent of the total and reaching SR1.60 billion; however, it marked a 3.1 percent weekly drop.
The two cities that registered the highest declines in POS spending were Makkah and Madinah, with decreases of 11 percent and 6.8 percent, respectively. The value of transactions in Makkah reached SR380.98 million, while in Madinah, it was SR393.26 million.
Saudi healthcare to advance with major digital tech partnership
RIYADH: The Saudi healthcare system is set to advance as two of the country’s major companies partner to leverage digital technologies to enhance the Kingdom’s capabilities.
SAMI Advanced Electronics Co., a wholly owned subsidiary of SAMI, the nation’s defense and digital solutions provider, has signed a cooperation agreement with the National Unified Procurement Co., a Public Investment Fund company.
The agreement, signed on May 27, will provide solutions for medication tracking and IT infrastructure and increase local content through medical devices manufacturing and maintenance.
This partnership demonstrates SAMI-AEC’s unremitting efforts to build a harmonious and applicable healthcare system in Saudi Arabia based on digital technologies.
Ziad Al-Musallam, CEO of SAMI-AEC, commented on the agreement, saying that they are honored to collaborate with NUPCO, as this deal underscores the unwavering commitment of both entities to bolstering efforts aimed at enhancing the healthcare ecosystem in Saudi Arabia.
“At SAMI-AEC, we firmly believe in the significance of augmenting public health services through digital solutions and delivering e-health services. This involves integrating effective, fast technologies to empower the healthcare sector, aligning with the objectives of Saudi Vision 2030,” he said.
Fahad Al-Shebel, CEO of NUPCO, highlighted the agreement’s importance and its role in fortifying the healthcare infrastructure and facilitating access to the integrated technology offered by SAMI-Advanced Electronics Co.
Aiming to upgrade the healthcare sector by improving its facilities in all public hospitals and medical centers in the Kingdom, NUPCO is the country’s largest central company providing medical purchasing, storage, and distribution services for medicines, devices, and supplies.
With a workforce of over 3,320 individuals, 85 percent of whom are Saudi nationals, SAMI-AEC has positioned itself as a leader in electronics, technology, engineering, and manufacturing. Its services span sectors such as defense and aerospace, digital, energy, and security.
Over 800 of the company’s employees are engineers and certified experts, reaffirming the dedication of SAMI-AEC, which was established in 1988, to excellence and innovation.
On the other hand, NUPCO was established in 2009 with SR1.5 billion in capital. It is the leading company in Saudi Arabia in procurement, logistics, and supply chain management for pharmaceuticals, medical devices, and supplies for governmental hospitals.
Closing Bell: Saudi main index continues downward trend to close at 11,660
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward movement for the third consecutive session this week, as it shed 171.28 points to close at 11,659.94 on Tuesday.
The total trading turnover of the benchmark index was SR5.34 billion ($1.42 billion), with 23 stocks advancing and 202 declining.
The Kingdom’s parallel market, Nomu, also slipped by 0.81 percent to 26,234.79, while the MSCI Tadawul Index shed 20.97 points to close at 1,449.44.
The best-performing stock on the main index was Sustained Infrastructure Holding Co. The firm’s share price soared by 6.2 percent to SR34.25.
Other top performers were the Mediterranean and Gulf Insurance and Reinsurance Co. and AYYAN Investment Co., whose share prices edged up by 3.98 percent and 3.63 percent respectively.
The worst-performing stock on the benchmark index was Saudi utility giant ACWA Power, as its share price slid by 4.68 percent to SR456.60.
On the announcements front, Etihad Atheeb Telecommunication Co. said that it was awarded two projects worth SR45.51 million by Technical and Vocational Training Corp. to provide dedicated Internet services in 77 locations.
In a Tadawul statement, the telecommunication provider said that the first project has a value of SR23.64 million, while the second one amounts to SR21.87 million.
Meanwhile, Mouwasat Medical Services Co. announced that its shareholders have approved the board’s recommendation to distribute a 17.5 percent cash dividend, or SR 1.75 per share for 2023.
In March, Mouwasat Medical Services Co. had revealed that its net profit witnessed a growth of 10 percent in 2023 to SR657.7 million, compared to the previous year.
Al Moammar Information Systems Co., on Tuesday, revealed that it received new orders to increase the capacity of data centers at a total value of SR 75.2 million.
In a statement to Tadawul, the company added that further developments of the order will be unveiled in due course.
