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MINING-
The Industry and Mineral Resources Ministry is offering five exploration licenses to foreign and domestic investors in what state news agency SPA says are the “largest mineralized belts” to be offered so far. Three exploration licenses are being offered in the Jabal Sayid mining site in Madinah, with the remaining two are reserved for Al Hajjar mining site in Aseer. Both sites could include deposits of gold, silver, copper, zinc and lead, according to the ministry. At 4.7k square kilometers in total, the licenses cover the largest exploration zone offered to date, the ministry said. The bidding round comes nearly a month after the ministry handed exploration licenses at six mining sites to five companies.
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What’s next: The pre-qualification stage for local and global firms runs from July to October 2024, with the ministry evaluating offers in December 2024, according to SPA. The licenses would be awarded in January 2025.
REMEMBER- Saudi is ramping up investment in mineral exploration: The Industry and Mineral Resources Ministry unveiled earlier this year a fresh incentives package worth SAR 685 mn to boost mineral exploration in the Kingdom. The program was rolled out in collaboration with the Investment Ministry and aims to reduce early-stage risk for exploration companies. It comes 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 earlier in January.
EARNINGS WATCH
Sipchem earnings drop on higher feedstock costs: Tadawul-listed petrochemicals firm Sipchem ’s net income fell 61.2% y-o-y to SAR 121.5 mn in 2Q 2024 on the back of higher feedstock prices — including those of natural gas, ethane, butane, ethylene, and propane — it said in a disclosure to Tadawul. The company’s revenues for the quarter rose 4% to SAR 1.8 bn thanks to higher sales volumes despite a periodic turnaround maintenance at several of its affiliates.
The company’s bottom line fell 61.3% in 1H 2024 to SAR 303 mn on revenues of SAR 3.7 bn (-2.5%).
REAL ESTATE-
#1- Alandalus Property affiliate breaks ground on a SAR 831 mn project: Masat Property, an affiliate of Tadawul-listed Alandalus Property, has broken ground on a SAR 831 mn shopping center southwest of Mecca, after tapping Hamat Holding to develop the project, according to a disclosure to Tadawul. Commercial operations at the center, which will be mainly financed through bank loans, are slated to kick off in 2Q 2027.
The two-storey center will feature 350 rental units, including retail outlets, coffee shops, restaurants, and a hypermarket. It will also have a multi-level parking garage that can accommodate up to 1.8k vehicles.
#2- Hassana Investment to develop real estate project in Riyadh: Hassana Investment — the investment manager of the General Organization of Social Ins. — signed an MoU with Dar wa Emaar Real Estate Investment and Development Co. to develop a 1.2 mn sqm real estate project in Qadisiyah in northern Riyadh, according to a statement. The planned project will feature up to 4k modern residential units and 100k sqm of retail space, offering residential, educational, entertainment, and retail facilities. They will also plan and develop the infrastructure, public amenities, and potential anchor real estate assets for the project.
