Category: Business Affairs

Dammam, The King Abdulaziz Port in Dammam has set a new record for container throughput on a single vessel, handling an impressive 20,645 TEUs on the COSCO SHIPPING AQUARIUS 036E. This achievement underscores the port's pivotal role in supporting trade and the logistics sector, in line with the objectives of the National Transport and Logistics Strategy (NTLS), helping cement the Kingdom's position as a global logistics hub. It also highlights the success of the Saudi Ports Authority (Mawani) in increasing the operational efficiency and maintaining the competitive edge of the King Abdulaziz Port. According to Mawani, the King Abdulaziz Port witnesses continuous expansion of its infrastructure, to increase its capacity. In 2024, it received 21 quay cranes (QC) and RTG cranes as part of the commercial attribution contracts signed by Mawani with Saudi Global Ports (SGP), with an investment value of SAR7 billion. Additionally, a contract was signed between SGP and the leading Chinese heavy equipment manufact urer SANY to supply the port with 80 electric trucks. This represents the largest single contract signed globally by SANY for the manufacture and supply of electric trucks. Mawani also reported that King Abdulaziz Port set a new container throughput record of 292,612 TEUs in May 2024. The port serves as a key gateway for goods from around the world to the eastern and central regions of the Kingdom, connected by rail to the Riyadh dry port. It also has 43 fully equipped berths with a handling capacity of up to 105 million tons of cargo and containers. Source: Saudi Press Agency

Shaqra, The fourth Shaqra Pepper Festival, which concluded yesterday, was a resounding success, helping sell large quantities of the region's distinctive peppers and pepper-based products. The event drew significant attention from government entities and enjoyed a massive turnout of over 91,000 visitors from all over the Kingdom. Attendees enthusiastically engaged in the diverse activities at the festival, which helped increase sales and profits for farmers. Organized by the National Agricultural Services Company, the 10-day festival generated noticeable economic and social activity. It featured sales and marketing of peppers and various agricultural products, alongside a wide array of events, activities and programs that appealed to visitors of all ages. Source: Saudi Press Agency

Dhahran, Aramco issued a press release today informing that it had signed a definitive agreement to acquire from Sumitomo Chemical an additional stake of approximately 22.5%, worth $702 million, in Rabigh Refining and Petrochemical Co. (Petro Rabigh), the complex located on the Kingdom of Saudi Arabia's west coast. According to the release, Aramco and Tokyo-headquartered Sumitomo Chemical own each 37.5% of shares in Petro Rabigh, which was listed on the Saudi Exchange in 2008. Upon the completion of the transaction, in which a share is priced at SAR7, Aramco will become Petro Rabigh's largest shareholder with an equity stake of approximately 60%, while Sumitomo Chemical will retain an equity stake of 15%. The transaction, which is subject to customary closing conditions, including regulatory approvals and other third-party approvals, is part of a package of financial measures intended to reinforce Petro Rabigh's financial position. Under the terms of the share sale and purchase agreement, all proceeds rece ived by Sumitomo Chemical from the sale will be injected into Petro Rabigh, through a mechanism to be agreed upon with Petro Rabigh. Aramco will provide additional funds to Petro Rabigh, via a mechanism also to be agreed upon, matching the $702m from Sumitomo Chemical, to improve Petro Rabigh's financial position and support its future strategy, bringing the aggregate injection amount to US$1.4 billion, according to the release. Aramco and Sumitomo Chemical have agreed to a phased waiver of shareholder loans of $750m each, which will result in a $1.5 billion direct reduction in Petro Rabigh's liabilities. These measures, said the release, are expected to improve Petro Rabigh's balance sheet and cash liquidity, as part of a remedial plan that Aramco and Sumitomo Chemical intend to explore with Petro Rabigh, which also includes initiatives to upgrade the refinery to help improve the profitability of its business. The agreement is also in line with Aramco's downstream expansion and Sumitomo Chemical's move a way from commodity chemicals toward specialty chemicals. Aramco Senior Vice President of Fuels Hussain Al Qahtani said: "Aramco continues to identify opportunities to strengthen its downstream value chain, secure placement of its upstream crude oil with affiliated refineries, and convert more of its hydrocarbons into high-value materials. By increasing our shareholding, we expect to achieve even closer integration with Petro Rabigh and facilitate its turnaround strategy." Sumitomo Chemical Senior Managing Executive Officer Seiji Takeuchi said that amid the evolving business landscape in the refining and petrochemical sectors, Aramco and Sumitomo Chemical have considered options to find an appropriate turnaround strategy for Petro Rabigh and identify an appropriate framework to facilitate its future plans. According to him, the transaction will significantly enhance Petro Rabigh's financial position. Source: Saudi Press Agency

Riyadh, The Saudi Stock Exchange main index ended trading higher today, gaining 44,87 points to close at 12109,52 points. The total value of trading reported was SAR6.3 billion. The Saudi Parallel Market Index (NOMU) ended the day by losing 20.90 points to close at 26651,19 points, valued at SAR46 million. The total number of shares traded was 2 million. Source: Saudi Press Agency

Jeddah, The General Secretariat of the Organization of Islamic Cooperation (OIC) has held a meeting of the Standing Finance Committee today at its headquarters in Jeddah. The meeting served as preparation for the 50th session of the Council of Foreign Ministers (CFM) of the OIC Member States, to be held in Yaoundé, the capital of the Republic of Cameroon, on August 29-30, 2024. Assistant Secretary-General for Administrative and Financial Affairs Ambassador Musa Kulaklikaya delivered the address on behalf of Secretary-General of the OIC Hissein Brahim Taha. In his address, Taha highlighted that the Committee's meeting, which concludes on August 3, 2024, takes place amidst numerous challenges. He emphasized the importance of the OIC utilizing this meeting to strengthen and enhance its institutions and effectiveness to enable it to address these challenges. Source: Saudi Press Agency

Seoul, The Saudi Business Center concluded its participation in the Saudi-Korean Business Forum, which was organized by the National Competitiveness Center, the Council of Saudi Chambers, and the Korea Chamber of Commerce and Industry (KCCI), in the Korean capital, Seoul. Taking part in the forum were Minister of Commerce and Chairman of the Board of Directors of the center Dr. Majid bin Abdullah Al-Qasabi, Korean Minister of Trade, Industry and Energy Inkyo Cheong, government officials, leaders from the business sector and of major companies from the two sides. The goal of the meeting was to boost the economic partnership between the two countries. The center participated to increase the Korean business sector awareness about the government services to the business sector, which, in line with the goals of Saudi Vision 2030, facilitates the procedures for conducting economic business in the Kingdom. The Saudi Business Center highlighted its role in fostering an attractive business environment in the Kingd om, through pertinent regulations, by constantly reviewing these procedures to ensure that they are easier and less costly to carry out, and function in accordance with the best international practices. The Saudi Business Center works seamlessly with 74 government agencies to provide their services at a single destination, on its business platform. It has 18 branches in 14 cities in the Kingdom. Source: Saudi Press Agency