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RIYADH: Saudi oil giant Aramco has given out an order worth SR60 million ($16 million) to homegrown Arabian Pipes Co. to supply steel pipes.
The contract will be valid for one year, the Riyadh-based pipe manufacturer said in a statement to the Saudi stock exchange, Tadawul.
Arabian Pipes expects the transaction to impact its financial statements starting from the second quarter of 2023.
This comes as an extension to two contracts awarded by Aramco to Arabian Pipes so far this year, worth SR368 million in total.
RIYADH: Saudi Arabia and the US have concluded 18 new agreements spanning sectors such as space, investment, energy and health, the Saudi Press Agency reported early on Saturday. — More to follow.
JEDDAH: When US President Franklin Roosevelt presented a Douglas DC-3, a propeller-driven airline, as a gift to King Abdul Aziz in 1945, the occasion marked the starting point of Saudi Arabia’s civil aviation industry. The Kingdom’s flag carrier Saudi Arabian Airlines, now known as Saudia, was founded in September 1945 as a wholly-owned government agency under the Ministry of Defense. Nearly eight decades later, as US President Joe Biden’s flight hits the tarmac on July 16, there is a growing sense that the visit will mark the beginning of world-class commercial aviation infrastructure in the Kingdom. His predecessor, Donald Trump’s visit to the Kingdom in 2017, led to a windfall in aviation deals between the two countries.
The event formed defense and commercial agreements for Boeing, worth over $50 billion, which further strengthened the Boeing-Saudi Arabia partnership, according to a statement issued by Boeing. Among the deals signed was the sale of 16 widebody jets to Dammam-based carrier Saudi Gulf; the carrier later ceased operations in 2020 due to the COVID-19 outbreak. The deals came during the Saudi US CEO Forum, where Saudi King Salman and Trump met with CEOs, including Boeing Chairman, President and CEO Dennis Muilenburg. “I appreciate the efforts of King Salman, President Trump and his administration to support American manufacturers as we seek to grow at home and around the world,” Muilenburg said in a statement during the visit.
Taking on the headwinds Boeing has had a crucial presence in the Kingdom since 1962, when the national carrier took delivery of two narrow-bodied Boeing 720s, becoming the first airline in the Middle East to operate commercial jet airplanes. Over the years, Saudia has taken delivery of most Boeing aircraft, including VIP airplanes. Today the Kingdom represents about 70 percent of its business jet purchases in the Gulf Cooperation Council.
The airline operated its first Boeing 747s service in 1977 when three Jumbo Jets were leased from Lebanon’s national carrier Middle East Airlines. Saudia’s all-cargo flights between the Kingdom and Europe witnessed the introduction of American Lockheed L-1011s and Fairchild FH-27s in the region. The US-Saudi aviation relationship scaled new heights when Boeing became a member of the King Abdullah University of Science and Technology industrial collaboration program in 2019. The program facilitates local and international industrial collaboration.
The Obama-Biden Administration widened the scope of aviation in the region. For instance, GE Aviation Services, a leading US manufacturer of jet and turboprop engines, signed an exclusive 10-year material agreement with Saudia to cover its fleet of CFM56-5B engines in 2009. Flynas, the Kingdom’s low-cost carrier, uses GE engines in their A320 aircraft. “This ecomagination-certified engine has a 15 percent lower fuel burn during cruise than the platform it replaces,” GE stated. As part of the Saudi localization efforts, GE announced that the company would use its facility, located at King Abdulaziz International Airport in Jeddah, to launch overhaul services on the GE90 engines in the region. The Royal Saudi Air Force is another major GE Aviation customer, the GE’s Military Systems Operation team partnered with SAEI to establish engine overhaul capability within the Kingdom. The project includes organic capabilities for the disassembly, inspection, repair, assembly and testing of the company’s engines undertaken at Saudia Aerospace Engineering Industries’ facility in Jeddah. In 2014, Boeing Research & Technology opened an office at KAUST to increase academic engagements with professors and resident companies interested in collaboration, research, and development. The same year Boeing and King Abdulaziz City for Science and Technology launched the Decision Support Center in Riyadh. The center has been serving as an experimentation hub between customers and partners in the Kingdom, offering more informed interoperability decisions for aerospace and defense products. In 2015, Boeing signed an agreement with Saudia Aerospace Engineering Industries to create the Saudi Rotorcraft Support Co. The company offers rotorcraft maintenance, repair, overhaul and support in the Kingdom. The Trump-Pence Administration further bolstered the aviation space when Boeing and the Saudi National Industrial Development signed a memorandum of understanding to further the development of the aerospace industry in the Kingdom.
In January 2021, SAEI, the maintenance, repair and overhaul division of Saudia, signed a bilateral agreement with the US Spartan College of Aeronautics and Technology for exchanging training experiences and qualifying national cadres in the field of aircraft maintenance. The agreement included providing consultations for SAEI’s employees and supporting its technical school with specialized expertise and trainers to enhance the quality of the school’s outputs. Saudi aviation opportunity Saudi Arabia expects to triple the contribution of its aviation sector to the national gross domestic product from SR80 billion ($21.3 billion) in 2018 to SR280 billion by 2030. President of the Kingdom’s General Authority of Civil Aviation Abdulaziz Al-Duailej confirmed at the Dubai Airshow in 2021 its intention to top the Middle East in the aviation sector. Subsequently, Saudi Arabia’s Crown Prince Mohammed bin Salman announced his plans to launch a second national airline as part of a broader strategy to turn the Kingdom into a global logistics hub as it seeks to diversify from oil.
The official state media reported that creating another flag carrier would catapult the Kingdom into the fifth largest nation in terms of air transit traffic. “We heard about this and will be excited to compete and race our products with any airlines in Saudi Arabia,” Omar Arekat, Boeing’s Middle East and Africa vice president of commercial sales and marketing, told Arab News. “The Saudi market has a lot of growth potential, and we are working with them for different opportunities, “Arekat added.
Saudi Arabia’s sovereign wealth fund will become the second-largest shareholder of Aston Martin with a nearly 17 percent stake in a capital raise aimed at paying off debt and shoring up its business, the British luxury carmaker said on Friday.
The company, faced with with high debt, a torrid stock fall and a struggling Formula One team, said it planned to raise £653 million ($773.15 million) through PIF’s £78 million investment and a separate rights issue of £575 million.
The Saudi fund will own 16.7 percent stake in Aston Martin, behind the 18.3 percent holding by Chairman Lawrence Stroll’s Yew Tree will have after the rights issue, and will be entitled to two board seats at the carmaker.
Current second-largest shareholder, German carmaker Mercedes-Benz AG, will own about 9.7 percent after the capital increase. The firm was looking to lift it stake to up to 20 percent by 2023.
Frequently featured in the James Bond movie franchise, Aston Martin has had a bumpy ride since its initial public offering in late 2018. Its London-listed shares have fallen nearly 73 percent so far this year. They jumped 10 percent on Friday morning after hitting a record low earlier.
Half of the new capital will be used to repay debt, Aston Martin said. The company had a debt of 957 million pounds at the end of March. It will also serve to accelerate future capital expenditure.
The Financial Times reported on Thursday that Aston Martin was closing in on a deal to raise over 500 million pounds by, bringing in the Saudi fund as a major shareholder.
PIF, which owns stakes in electric carmaker Lucid and British supercar group McLaren, did not immediately respond to a Reuters’ request for comment.
Separately, Aston Martin also reported wholesale volumes of 2,676 in the first half of 2022, down from 2,901 a year ago. It expects to sell more than 6,660 units for the full-year.
US companies have a “huge opportunity” to develop trade with Saudi Arabia, the President of the Federation of Saudi Chambers said on the eve of President Joe Biden’s visit to the Kingdom.
Ajlan bin Abdul Aziz Al-Ajlan has insisted there are potential avenues for increased business between the two countries, with Saudi-US trade reaching SR114 billion (£30 billion) last year alone.
The energy sector was flagged as one area of possible growth, as were tech and space.
Speaking to Asharq, Al-Ajlan said: “The Saudi-US relationship is old, extended and fruitful for both sides, even on economic level where trade reached SR114 billion last year, and over SR600 billion in the past five years, and today, in line with Vision 2030, there are huge opportunities for US companies in the Kingdom.”
A recent report by the Federation of Saudi Chambers showed the US ranks sixth for countries to which the Kingdom exports, while it comes in second to the countries from which the Kingdom imports.
The most important non-oil exports of goods to the US in 2021 were organic chemical products, at SR1.9 billion; fertilizers at SR1.6 billion; and aluminum and its products at SR1.3 billion.
The most important commodities imported from the US during the same year were machines, devices, tools, and mechanisms and their parts at an amount of SR9.6 billion; transportation equipment and its parts such as vehicles at SR8.5 billion; and arms, ammunition and their parts and fittings with an amount of SR7.7 billion.
The US and Saudi Arabia already share more than $100 billion in active foreign military sales, and defense ties have been further cemented by Lockheed Martin’s space technology partnership with the Kingdom.
Other key areas of trade involve electrical equipment, the digital economy, and e-commerce.
RIYADH: Dubai's residential market saw transcations rise 33.3 percent in June compared to 2021, driven by off-plan and secondary market sales, a report showed.
The total number of transactions stood at 7,941, US CBRE said in its Dubai Residential Market Snapshot.
Off-plan sales increased by 46.7 percent and secondary market sales rose by 24.4 percent.
For the year to date, total transaction volumes reached 38,901, the highest total recorded since 2009.
Average prices increased by 10.1 percent in the year to June 2022, including apartment prices that went up by 8.7 percent and villa prices that went up by 19.3 percent.
As at June 2022, average apartment prices in Dubai stood at 1,103 dirhams ($300) per square foot and average villa prices stood at 1,324 dirhams per square foot, reflecting 25.8 percent and 8.3 percent below the peak rates, respectively, compared to late 2014.
Jumeirah recorded the highest average sales rate per square foot at 2,079 dirhams, in the apartments segment of the market, while Palm Jumeirah recorded the highest average sales rate per square foot at 3,365 dirhams, in the villas segment.
Average rents in the 12 months to June 2022 have increased by 21.7 percent, with average apartment and villa rents increasing by 21.2 percent and 24.7 percent respectively,
As at June 2022, average apartment and villa rents stood at 85,294 dirhams and 255,437 dirhams per annum respectively, according to CBRE.
Palm Jumeirah witnessed the highest average annual apartment and villa rents, where asking rents on average were 218,413 dirhams, followed by Al Barari, where asking rents on average were 889,225 dirhams.