MADRID: Talgo said on Wednesday Saudi Arabia had cancelled a contract for six high-speed trains, suggesting the Gulf state is scaling back some infrastructure projects in a climate of low oil prices.
The Spanish trainmaker won the $201 million contract in February, following on from a feasibility study into building a high-speed rail line between Riyadh and Dammam, capital of the country's oil-rich Eastern Province.
Talgo, whose share price tumbled 12 percent after its statement, gave no explanation for the cancellation, and Saudi officials responsible for the project could not be reached for comment.
The world's top oil exporter is spending tens of billions of dollars on upgrading its transport infrastructure as part of efforts to diversify the economy.
In September, Spanish transport consultancy Consultrans said it had won a contract for a 10-month feasibility study into the rail project. The high-speed link would cut the rail travel time between Riyadh and Dammam to under three hours from 4-1/2 hours. In May, the government in Riyadh awarded a $2.1 billion contract to operate a new bus system in the capital.
Talgo said the canceled contract would not materially affect its financial projections for 2015 and 2016.
Saudi transport plans in focus as Talgo says train deal scrapped
Saudi transport plans in focus as Talgo says train deal scrapped
Saudi Arabia opens January ‘Sah’ sukuk sale with 4.73% return
RIYADH: Saudi Arabia has opened subscriptions for its January issuance of the government-backed “Sah” savings sukuk, offering an annual return of 4.73 percent, up from 4.68 percent in the previous month.
In a post on X, the Kingdom’s National Debt Management Center said the subscription window opened at 10 a.m. Saudi time on Jan. 4 and will close at 3 p.m. on Jan. 6.
The latest offering forms part of the NDMC-managed 2026 issuance calendar and reflects Saudi Arabia’s ongoing efforts to promote financial inclusion and encourage personal savings.
Launched under the Financial Sector Development Program, a key pillar of the Vision 2030 agenda, “Sah” aims to raise the national savings rate to 10 percent by 2030, up from about 6 percent currently.
The NDMC said the minimum subscription amount for the January offering is SR1,000 ($266.56), while the maximum is capped at SR200,000 per investor.
The sukuk carries a one-year maturity and offers fixed returns paid at redemption.
Sukuk are Shariah-compliant financial instruments that grant investors partial ownership in an issuer’s underlying assets, serving as a popular alternative to conventional bonds.
Subscriptions are available exclusively to Saudi nationals aged 18 and above through approved investment platforms, including SNB Capital, Aljazira Capital and Alinma Investment, as well as SAB Invest and Al-Rajhi Capital.
Unlike conventional bonds, the sukuk’s returns are structured to comply with Shariah principles. Designed as a secure, low-risk savings instrument, it carries no fees and offers easy redemption, with returns aligned to prevailing market benchmarks.
Earlier this month, the NDMC announced the successful arrangement of a seven-year syndicated loan amounting to $13 billion, aimed at supporting power, water and public utilities projects.
Last month, the center revealed it raised SR7.01 billion through its December sukuk issuance.
The December issuance was divided into five tranches. The first, valued at SR1.23 billion, is set to mature in 2027. The second tranche amounted to SR335 million and will mature in 2029.
The third tranche was valued at SR1.18 billion and will mature in 2032, while the fourth tranche, worth SR1.69 billion, is set to expire in 2036.
The fifth tranche was valued at SR2.57 billion and will mature in 2039.
