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ENVIRONMENT-
Our friends at Hassan Allam Construction Saudi are set to build the primary coral nursery of the world’s largest coral reef restoration project in Neom under a freshly-inked agreement with the King Abdullah University of Science and Technology (Kaust), according to a statement. The agreement sees Hassan Allam in charge of carrying out external and internal infrastructure works on a total built-up area of 24.7k square meters.
About the project: The Kaust Coral Restoration Initiative is designed to counter the negative impact of climate change and rising sea water temperatures on coral reefs. It covers Neom’s Haddah beach.
Background: Our friends at Hassan Allam Holding, the regional construction, engineering, and infrastructure giant, opened in March their regional headquarters in Riyadh after securing an investment license from the Investment Ministry. The new headquarters comes as part of the group’s ongoing expansion in the Middle East and Africa.
M&A-
The board of homegrown supermarket group BinDawood has approved the full acquisition of Jumeirah Trading in a transaction worth as much as SAR 186.5 mn, it said in a disclosure to Tadawul. This acquisition is still subject to both shareholder ad regulatory approval; BinDawood hopes to conclude the transaction in the second half of this year.
The rationale: The acquisition comes under BinDawood’s strategy to expand distribution operations, reduce supply chain risks, and improve profit margins through vertical integration.
About Jumeirah: It is engaged in the wholesale, retail and distribution of food, household products, toys and luggage across Saudi. Its net income nearly doubled y-o-y in 2023 to report SAR 22.2 mn, while its revenues were up 28.7% y-o-y last year to SAR 142.9 mn.
INVESTMENT WATCH-
Local venture builder BIM Ventures signed an MoU with Tokyo-based financial group SBI Holdings to establish a USD 100 mn joint investment fund dedicated to supporting startups in Saudi, according to a statement (pdf). The statement said the Investment Ministry will support the efforts which “will create new opportunities for Saudi and Japanese startups, as well as create jobs in the Kingdom.”
SBI Holdings has been looking to expand its footprint here and beyond: It signed in December an MoU with oil giant Aramco to explore investments in digital assets. It set up in February a regional HQ in Riyadh “as a base of operations for conducting business in the Middle East.”
HOSPITALITY-
Hong Kong-based airport lounge operator Plaza Premium Group (PPG) plans to invest USD 70 mn to develop its services in the local market, Deputy CEO Ali Bora Isbulan told Aleqisadiah. Isbulan said that PPG discussed opening at King Salman International Airport in Riyadh and the Red Sea project.
About PPG: PPG is currently active in over 250 locations across more than 70 airports around the world, with three lounges in Saudi — on each in Riyadh, Jeddah, and Dammam, according to its website.
STARTUP WATCH-
Homegrown fintech Hala has secured undisclosed funding from US-based private equity firm TPG, Menabytes reported, citing a report by The Information. No further details were provided on the investment from TPG, which has previously injected capital into global players including Spotify, Airbnb, Box, and Calm. Hala’s last-disclosed financing round was a USD 6.5 mn Series A led by local Impact46 in 2021.
About Hala: The Riyadh-based startup provides banking services to SMEs and freelancers, including POS solutions, bank accounts, debit cards and budget management options, according to its website.
REAL ESTATE-
Bonyan REIT has completed the transfer of a mixed-use commercial center in Riyadh at a transaction estimated at SAR 200 mn, fund manager Saudi Fransi Capital said in a disclosure to Tadawul. The 1991 Center, which is located in the Hittin neighborhood, spans 8k sqm, featuring 7 showrooms and 31 offices, the disclosure read. Saudi Fransi Capital said announcements on the signing of lease contracts would follow.
MANUFACTURING
Naqi Water signed a 20-year leasing contract with the Saudi Authority for Industrial Cities and Technology Zones (Modon) for industrial land to set up a bottled drinking water factory in Jazan Industrial City, it said in a disclosure to Tadawul. The total contract value for the 15.1k sqm was set at SAR 301k excluding value-added tax, according to the disclosure. The move comes under Naqi Water’s strategy to expand production lines.
REMEMBER- Naqi Water transferred earlier this year land lease rights to PepsiCo for SAR 9.5 mn in Riyadh’s second industrial city after saying it found a better-suited location for its planned factory.
EDUCATION-
King Saud University signed an MoU with the University of Tokyo for economic cooperation in physics, chemistry and geoscience, state news agency SPA reported. They also discussed future partnerships between the two universities.
TRANSPORTATION-
Saudi has secured membership in the International Transport Forum (ITF) on the sidelines of this year’s edition hosted in Germany’s Leipzig, state news agency SPA reported. Transport and Logistics Services Minister Saleh bin Nasser AI Jasser said Saudi’s membership will allow it to enact legislation and regulation to help enhance and develop transportation globally.
Saudi in the global logistics scene: Saudi Arabia has made substantial progress in logistics, notably rising 17 places to the 38th rank in the World Bank’s Logistics Performance Index 2023. It also advanced to 13th place in IATA’s international air connectivity index.
