ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
ACWA Power inks $1.78bn agreements to boost renewable energy, R&D /node/2577384/business-economy
ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
Deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa. Supplied
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Updated 30 October 2024
Nirmal Narayanan
ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
First agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities
ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp.
Updated 30 October 2024
Nirmal Narayanan
RIYADH: Saudi utility giant ACWA Power signed four agreements valued at SR6.69 billion ($1.78 billion) on the first day of the eighth Future Investment Initiative in Riyadh.
The deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa, highlighting the company’s expanding global reach.
The first agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities, supporting ACWA Power’s project pipeline in Ƶ, Kuwait, and other target markets.
Additionally, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund two solar projects in Uzbekistan.
“These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors,” said Marco Arcelli, CEO of ACWA Power.
Uzbekistan has become a key market for ACWA Power, which has been active in the Central Asian nation’s renewable energy sector in recent years.
Located in Samarkand, the Sazagan 1 and 2 projects each include 500 megawatts of solar photovoltaic and 334 MW of battery energy storage systems. ACWA Power noted that both projects are expected to commence commercial operations between the third quarter of 2025 and the fourth quarter of 2026.
The company also signed a joint development agreement with Gotion Power Morocco, a battery solutions provider. Under this agreement, ACWA Power will develop a 500 MW wind power plant incorporating a 2,000 MWh battery energy storage system.
The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, slated to start production in the first half of 2026. The initial investment for the project is $800 million.
ACWA Power also signed a $54 million research and development agreement with China’s Lujiazui Administration Bureau to establish an R&D center in Shanghai. The center will focus on advancing technologies in solar, wind, energy storage, green hydrogen, and desalination.
“Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future,” concluded Arcelli.
UrbanV joins forces with Cluster2 to revolutionize air mobility in Ƶ
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Saudi airports under Cluster2’s management will soon begin feasibility studies to explore the implementation of advanced air mobility solutions.
This initiative is part of a new partnership with UrbanV, an Italian vertiport operator.
The two sides have signed a memorandum of understanding aimed at developing both advanced air mobility and urban air mobility services within Ƶ.
The agreement, signed by Ali Masrahi, CEO of Cluster2, and Carlo Tursi, CEO of UrbanV, focuses on creating an integrated ecosystem for AAM across Cluster2’s network of airports.
Beyond feasibility studies, the partnership will establish a framework for the design, development, and management of AAM and UAM solutions. This will ensure compliance with regulations set by the Kingdom’s General Authority of Civil Aviation, as well as safety standards and environmental sustainability goals.
UrbanV will contribute its expertise in AAM operations, providing technical training, knowledge transfer, and collaboration with key stakeholders.
As part of the collaboration, pilot programs will be launched to test electric vertical take-off and landing services in areas such as medical emergencies, VIP transport, and logistics. These trials will allow the partners to assess the operational feasibility of AAM in real-world conditions.
The companies have committed to supporting Ƶ’s Vision 2030, including the use of zero-emission eVTOL vehicles and the development of environmentally sustainable vertiports.
“We are pleased to sign this partnership,” said Masrahi. “Through such collaborations, we aim to lead the way in creating advanced air mobility solutions and building an integrated ecosystem for airports across the Kingdom, while ensuring environmental sustainability at all our facilities.”
Tursi shared a similar sentiment, stating, “At UrbanV, we aim to improve people’s lives by enabling a fast, efficient, safe, and clean alternative for short-distance transport solutions for both people and goods by air. We are ambitious to become a global leader in operating vertiport networks and pioneering some of the world’s first AAM routes. We are excited to partner with Cluster2, a key player in airport management, and look forward to exploring the vast potential of introducing advanced air mobility in Ƶ.”
Cluster2’s strategic objectives include increasing annual passenger traffic, expanding airport capacity, connecting Asia, Europe, and Africa via Ƶ, and increasing the number of international routes in the Kingdom.
The company currently manages 22 airports across Ƶ, including AlUla International, King Abdullah bin Abdulaziz Airport in Jazan, and King Saud bin Abdulaziz Airport in Al-Bahah.
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif met Saudi Investment Minister Khalid Al-Falih in Riyadh on Monday to discuss the progress of recently signed business agreements between the two countries, according to the Prime Minister’s Office.
On Oct. 10, Pakistani and Saudi businesses signed 27 memorandums of understanding worth $2.2 billion during Al-Falih’s visit to Islamabad. Later, during Sharif’s visit to Ƶ on Oct. 30, Al-Falih announced that the number of agreements would be increased from 27 to 34, and the total value would rise to $2.8 billion.
Sharif is in Riyadh to attend the Arab-Islamic Summit. On the sidelines of the summit, he also met with Mohammed Al-Tuwaijri, the royal court’s adviser.
According to the Prime Minister’s Office, the meeting focused on reviewing the progress of economic cooperation initiatives between the two countries. Sharif praised the ongoing efforts of Pakistani and Saudi technical teams working on these major projects.
The meeting comes as Pakistan seeks to strengthen trade and investment ties with its allies, particularly Ƶ. The Kingdom has pledged a $5 billion investment package, which is crucial for Pakistan as it grapples with a dire balance of payments crisis and dwindling foreign reserves.
To tackle its economic challenges, Pakistan established the Special Investment Facilitation Council in 2023. This hybrid civil-military body aims to expedite foreign investments in key sectors like agriculture, mining, tourism, and minerals.
Sharif has been actively engaging in economic diplomacy in recent months, seeking increased investments and fostering trade and regional connectivity. Pakistan is positioning itself as a key trade and transit hub linking Central Asia with the global market, while also seeking mutually beneficial partnerships with Gulf countries.
Cityscape Global 2024 to pave the way for innovation in real estate, minister says
Updated 11 November 2024
REEM WALID
RIYADH: Cityscape Global 2024 is expected to drive innovation and sustainable advancements within Ƶ’s real estate market, broadening growth opportunities, according to a top official.
The opening day of the event, which is taking place in Riyadh from Nov. 11 – 14, saw the Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, explain that the Kingdom is working to develop the sector further to achieve the nation’s ambitions.
This comes as Ƶ’s real estate is a vital element of the country’s economy, contributing around 7 percent of gross domestic product and supporting numerous additional sectors.
“The Kingdom’s hosting of the Cityscape Global for the second time is an affirmation of the Kingdom’s position, which has become a leading model in the field of innovation and real estate development and a global center that leaves a clear imprint in building the cities of the future,” Al-Hogail said.
“Today, we are not only hosting a real estate event, but we are opening the doors to new horizons of innovation and sustainable advancement to achieve the future of our ambitious country under the slogan ‘The Future of Life,’” he added.
Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail speaking at the event. X/@CSGlobalKSA
The minister went on to say that the number of local developers at the exhibition has doubled to more than 100, and the total of high-level real estate firms participating is up from from 54 to 69.
“Of course, this increase comes in light of the accelerating growth witnessed by the sector since the beginning of this year,” he added.
Al-Hogail further highlighted that this growth has brought about a rise in real estate deals, the value of which has exceeded SR630 billion ($167 billion) since the beginning of the year, making this sector one of the most important economic engines contributing to the development of the economy.
“All these efforts aim to accelerate the development of real estate refinancing market programs in the Kingdom and expand through local and international capital market channels so that we can ensure the continued growth of this sector, which I undoubtedly expect to reach more than SR1.3 trillion, for the housing sector alone, in 2030,” he said.
Toward the conclusion of his speech, the minister also underlined that the total value of launches and strategic agreements in Cityscape Global 2024 exceeds SR180 billion.
In terms of announcements, Saudi National Housing Co. launched a new identity and strategy, which CEO Mohammad Saleh Al-Buty said included a “major expansion in pioneering projects.”
He added: “Today, from this place, I am pleased to inform investors about investment opportunities for the year 2025 with a value exceeding SR75 billion in residential projects and others.”
Saud-based Retal Urban Development Co. also announced major projects for 2024.
“In the name of ambition and achievement, and out of our keenness to achieve and realize hopes, Retal announces a group of projects for the year 2024 worth more than SR14 billion,” the firm’s CEO Abdullah Al-Braikan said.
Retal Urban Development Co. CEO Abdullah Al-Braikan. X/@CSGlobalKSA
Moving on to Diriyah Development Co., the developer announced the launch of 59 new luxury apartments and villas for the Signature Collection of The Ritz-Carlton Residences, Diriyah, marking the latest release of its luxury branded residences.
This launch follows the successful sell-out of the initial 106 Ritz Carlton Residences.
Diriyah Development Co. also launched the first luxury residential group, “Raffles Residences Diriyah”, affiliated with Raffles Hotels and Resorts, during its participation in the Cityscape Global exhibition in Riyadh, as part of the company’s continued provision of high-quality living standards with international standards in Diriyah.
The new residence will offer 90 luxury residences, ranging from one, two and three-bedroom suites to duplex villas and townhouses, with residents enjoying full access to the hotel’s world-class facilities.
During the announcement, Mohamed Saad – from the firm’s DevCo. division – introduced a new collection featuring 59 fully furnished apartments and villas, available in one- to four-bedroom configurations.
Mohammad Al Habib Real Estate Co. also announced a new development during the event, which will be located in Riyadh, while founder and Chairman of Mountain View Amr Soliman also shed light on his firm’s first project to date in the Kingdom.
“Mountain View One”, situated in the north of Riyadh, will have an investment value of $320 million, with 500 villas.
Mohammad Al-Othman, CEO of Kaden, used the event to announce the Jeddah Front project which spans 1 million sq. meters and involves total investments of up to SR10 billion.
“The waterfront will feature 5,000 residential units, housing approximately 20,000 residents. It also includes recreational spaces covering 140,000 sq. meters and a business sector area reaching 138,000 sq. meters,” Al-Othman said, adding that there will also be around 800,000 hotel units.
CEO of Tilal Real Estate Co. Abdulrahman Al-Bassam, who also spoke during the event, tackled the “Heart of Khobar” project, which is set to be valued at above SR6 billion upon completion of its phases.
“On this occasion, we are pleased to announce the signing of the operational agreement for the project with 25Hours from the Accor Group. This project will be the second of its kind after Trojena in NEOM,” Al-Bassam said.
Co-founder of Flow Adam Neumann also disclosed the company’s first local real estate fund worth SR1.1 billion, with Sico and Safa as partners.
PIF’s EV maker Ceer secures advanced drive systems through new partnership
Partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications to large-scale projects
Venture marks Rimac’s first partnership in the GCC region
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Ƶ’s first electric vehicle brand, Ceer, is set to equip its flagship models with high-performance, fully integrated Electric Drive Systems through a newly announced partnership with Croatia-based Rimac Technology.
The automobile manufacturer, a joint venture between Ƶ’s Public Investment Fund and Foxconn, aims to leverage Rimac’s expertise in performance powertrain technology to enhance its upcoming EV lineup.
The agreement was formalized at a signing ceremony in Croatia attended by Ceer CEO James DeLuca and Rimac Technology CEO Mate Rimac.
“We are delighted to be the first company and large-scale project in the GCC to partner with Rimac Technology to equip Ceer flagship vehicles with the most advanced high-performance electric drive systems and solutions,” said DeLuca.
“Rimac’s global reputation and know-how in designing leading-edge performance powertrain systems aligns perfectly with our strategic objectives of partnering with global industry leaders as we fulfill our commitment to delivering world-class, high-performance electric vehicles and revolutionizing the automotive industry in Ƶ,” he added.
The partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications, such as the Rimac Nevera and Aston Martin Valkyrie, to large-scale projects.
Rimac has recently increased its focus on electrification partnerships, including a long-term collaboration with BMW to supply high-voltage battery systems.
“The collaboration with Ceer further solidifies Rimac Technology’s global electrification ambitions,” said Rimac.
“This year alone we’ve announced several key partnerships, including with the BMW Group and Ceer, which will produce tens of thousands of electric drive systems and battery systems for leading OEMs (original equipment manufacturers) worldwide.” he added.
This venture marks Rimac’s first partnership in the Gulf Cooperation Council region, positioning it to support Ceer’s vision of advancing the EV market in Ƶ.
Closing Bell: Saudi main index gains, closes at 12,106 points
MSCI Tadawul Index increased by 2.44 points, or 0.16%, to close at 1,521.20
Parallel market, Nomu, dropped by losing 87.15 points, or 0.30%, to close at 29,161 points
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Ƶ’s Tadawul All Share Index rose by 0.03 percent or 3.25 points to reach 12,106.41 points on Monday.
The total trading turnover of the benchmark index was SR7.49 billion ($1.99 billion), as 92 stocks advanced, while 133 retreated.
The MSCI Tadawul Index increased by 2.44 points, or 0.16 percent, to close at 1,521.20.
The Kingdom’s parallel market, Nomu, dropped by losing 87.15 points, or 0.30 percent, to close at 29,161 points. This comes as 39 stocks advanced, while as many as 41 retreated.
The index’s top performer, Alandalus Property Co., saw a 5.47 percent increase in its share price to close at SR24.70.
Other top performers included Rasan Information Technology Co. and Dar Alarkan Real Estate Development Co., with share prices rising by 5.16 percent to SR83.60 and 5.09 percent to SR17.76, respectively.
Al-Omran Industrial Trading Co. and Dr. Soliman Abdel Kader Fakeeh Hospital Co. also recorded positive trajectories today, with share prices rising by 4.18 percent to SR39.85 and 3.74 percent to SR61.10, respectively.
On the announcement front, Arabian Drilling has secured a 10-year contract extension for one of its land rigs with Saudi Aramco, the company announced today in a bourse filing.
The extension is set to commence immediately after the current agreement concludes in the fourth quarter of the year. The estimated backlog associated with the new contract is valued at approximately SR440 million.
Ghassan Mirdad, CEO of Arabian Drilling, highlighted the significance of the extended partnership with Saudi Aramco.
“We are very pleased with the contract extension as we continue to build on our long-term partnership with Aramco and deliver exceptional service,” Mirdad said.
“The material backlog of approximately SR440 million will support our future growth,” he added.
Arabian Drilling closed Monday’s trading session with a 2.11 percent increase in its share price to reach SR116.20.
The Middle East Paper Co. announced that its subsidiary, Juthor, has signed an agreement with Austria-based Andritz AG for the procurement, supply, and installation of a main production line machine.
The contract encompasses the purchase of a complete tissue paper production line, with an annual capacity of 60,000 tonnes and a speed of 2,100 meters per minute.
The agreement value represents less than 25 percent of MEPCO’s total revenue, as reported in its most recent audited financial statement. The duration of the deal is set for 24 months, with the monetary impact expected to begin in the fourth quarter of 2026.
MEPCO also released its financial results for the first nine months of the year, recording SR775.4 million in revenue, a 20 percent increase compared to the same period last year.
The company recorded losses of SR33.7 million, an improvement on the SR50.1 million last year.
MEPCO’s share price dropped by 0.51 percent by Monday’s close to settle at SR38.95.
Middle East Specialized Cables Co. also released its financial results for the same period to record a 24.9 percent year-on-year revenue increase.
The company saw SR830.4 million in sales and SR68.7 million in net profits, a 78.9 percent increase from last year.
Revenue growth was mainly driven by higher sales order volumes across all sectors, particularly in the oil and gas segment. The company secured a greater number of bids and orders compared to the same period last year.
The net profit surge was attributed to increased sales volume, improved profit margins, and enhanced operational efficiency during the current period.
The company’s share price dropped 2.37 percent by Monday’s close to settle at SR37.10.
