Sign in
MANUFACTURING-
#1- Tadawul-listed Sahara International Petrochemical Company (Sipchem) has awarded EPC contracts worth SAR 701.5 mn (USD 187 mn) for the expansion of a chemicals manufacturing facility owned by an affiliate company, it said in a disclosure to Tadawul. The 40-month contracts were awarded to South Korean construction engineering firm SGC E&C and SGC Arabia. It will help boost production capacity by 70k tons to bring total capacity to 290k tons annually. The chemical products is a key input in the manufacturing of solar power encapsulants, hot melt adhesives and others, according to Sipchem.
#2- Arabian Pipes to supply pipes for Jafurah gas field expansion: Tadawul-listed Arabian Pipes was awarded a SAR 293 mn, 10-month contract earlier this week to supply steel pipes to local contractor Denys Arabia for the second phase of Aramco’s Jafurah gas field development, according to a disclosure to Tadawul. Denys Arabia is a joint venture between Belgian construction group Denys and local contractor Civil Works Company.
What’s Jafurah? The Jafurah gas field is the largest unconventional, non-oil-associated gas field in the Kingdom and is the largest shale gas development outside the US. The field is expected to produce 630k barrels of gas liquids and condensates a day and over 420 mn standard cubic feet of ethane a day by 2030. Aramco signed earlier this week contracts worth over USD 25 bn for the development of the second phase of Jafurah as it looks to boost natural gas production by 60% in 2030 from 2021 levels.
RETAIL-
Less expensive furniture from Ikea: Alsulaiman Group (ASG), the Ikea franchisee for Saudi, will invest SAR 70 mn to launch more affordable products in the market this year, according to a statement. It will offer 3k new lower price goods under its strategy to ensure “products reach customers at affordable prices without compromising on stringent quality requirements.” The discounted range will be offered at Ikea’s nine showrooms in Saudi or online.
REMEMBER- ASG has big plans for Ikea here: It plans to open 21 new Ikea branches by 2029, bringing the total number of outlets here to 30 from nine today, according to company officials earlier this year.
EXPANSION WATCH-
#1- Egyptian asset manager Azimut expects to make its Saudi debut by early 2025, once it secures approval from the Capital Market Authority, CEO Ahmed Abo El Saad told Asharq Business. The asset manager intends to focus on “asset management, whether in equities or fixed-income instruments,” according to Abo El Saad.
#2- Egyptian lighting manufacturer Futek is looking to set up a plant to make energy-efficient lighting fixtures in the Kingdom, CEO Mohamed Helal told Egyptian newspaper Al Borsa.
#3- Egypt-born health-focused e-commerce marketplace WellPal has set up shop in Saudi, it said in a post on Linkedin. No further details were provided but WellPal’s Co-Founder and CEO Mohamed Ali (Linkedin) said in statements that the platform has moved its headquarters and operations to Riyadh. Information about the potential investments earmarked for the local market were not disclosed, but Ali said a major investment would be announced soon.
About WellPal: The e-commerce platform offers a range of healthy foods products from local and international brands including nuts, coffee, honey, herbs, natural spices, and dates.
FINANCIAL SERVICES-
Jadwa Investment said it expects the potential sale of its Al Yaum Tower in Dammam to have a negative short-term impact on the financials of its Jadwa REIT Saudi Fund, according to a disclosure to Tadawul. If completed, the sale of the corporate tower — which is estimated to be worth SAR 190 mn — will see short-term losses amounting to SAR 11.1 mn. However, the fund manager said it expects a positive impact on the long term from the transaction.
MINING-
Tadawul-listed Al Masane Al Kobra Mining (Amak) said it was awarded a manganese ore exploration license from the Industry and Mineral Resources Ministry, according to a disclosure to Tadawul. The five-year license covers exploration works spanning an area of 20.7 square km in Al Baha province.
This is Amak’s third exploration license in less than a week: It received in late June from the ministry two exploration licenses in Jabal Qaran and Al Hijra which hold reserves of gold, copper and zinc.
REFRESHER- The ministry unveiled earlier this year a fresh incentives package worth SAR 685 mn as part of efforts to expand the sector and tap reserves of gold, phosphate and others. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016, officials said in January.
AGRICULTURE-
Iyris (formerly RedSea) will sell its SecondSky-brand greenhouse covers in the UAE under an exclusive agreement with Abu Dhabi-based Sherwood Middle East, a subsidiary of UAE agritech company Silal, according to a statement.
What’s special about the product: The technology developed by iyris is a heat-blocking roof that blocks near infrared heat radiation, helping lower energy consumption by over 40% and water use by 30%, Iyris says. It aims to improve yield and quality of crops amid scorching heat.
AUTOMOTIVE
PIF-backed EV maker Lucid is rolling out summer incentives in a bid to attract Saudi buyers. The incentives run until the end of August. You can learn more about them here (pdf).
