“Saudi giga-construction can be a lifeline and as business advice goes, the best that you can do at present is to get in line to serve an upcoming market in Saudi Arabia.”
–Avin Gidwani, CEO of Industry Networks at BNC, commenting on the estimated $19 billion in new projects announced by Saudi Arabia in Q1 2021. [Trade Arabia]
“If you compare today against five years ago, it’s a whole other world. The development was extremely rapid, extremely quick; so what you’re seeing today is a large influx of capital in the market, meaning there’s also a lot more startups than when we first started.”
–Ammar Alkhouli, investment analyst at Saudi Technology Ventures, the largest technology VC fund in the Middle East, discussing the growing interest in startups in Saudi Arabia. In 2020 alone, the country raised a record of $152 million in VC funding, with a 55% increase in total funding from the Middle East and North Africa deployed to Saudi startups. [Rest of the World]
“We face the need of globalization to build new cities for 3 billion people for the next 30 to 40 years. There are places around the world that are thinking about city design, and THE LINE could be a blueprint.”
-Florian Lennert, head of mobility in NEOM, in an interview with Chinese news site Xinhua. [Xinhua]
“Although ESG has proven its worth, much remains to be done to ensure we use it to its full potential. The low level of inclusion and participation of emerging markets in the development of ESG frameworks is counterproductive to global sustainability. Perhaps the most challenging task, and one that we will address during this event, is how we push ourselves to think beyond ESG as a risk management tool and deploy it to create a truly sustainable future.”
–Richard Attias, chief executive of the Future Investment Initiative (FII), in comments at the FII’s ESG (environmental, social, and governance) virtual event on Thursday. The PIF has already incorporated ESG principles into its $400 billion worth of global investments as the sector gains in prominence throughout the region. [Arab News]
“We have gone digital… [Tawakkalna] is an application that will allow you into establishments and commercial establishments across Saudi Arabia. If you are vaccinated and you are fully immune, then it is a darker green color. If you just received one jab then it is a lighter green. If you just arrived from the US it could either be a blue or purple color and that could (mean) you need you to isolate.”
-Rawan Radwan, Arab News deputy section editor and regional correspondent, discussing public health protocols and the mandated smart phone app, Tawakkalna, that displays a barcode along with the name of the user, an ID number and a color that reflects the health status of the individual. [Arab News]
“It’s a great deal for Aramco, but also a new kind of investment strategy, in that it is “giving up” much more in terms of investor access to information, control over operations than an IPO does. It is a real partnership, a long-term effort with outsiders, which is an entirely new level of trust outside of the firm and the government.”
–Karen Young, resident scholar at the American Enterprise Institute in Washington, commenting on the recent $12.4 billion lease agreement signed between an EIG-led consortium to acquire a 49% equity stake in Aramco Oil Pipelines Co., a newly formed entity. The deal gives EIG rights to 25-years of tariff payments for oil transported through Aramco’s stabilized crude oil pipeline network. [Yahoo Finance]
“Smart investors should enter the (hotel) market now to gain bigger yields.”
-Hurriyah El Islamy, executive board member of Indonesia’s Haj Fund Management Agency which has more than $10 billion in funds and is considering investments either in Saudi hotel equity or in rooms. It expects minimum returns of approximately 8%, rising to as high as 20%, and is targeting either Makkah, Jeddah or Madinah. [Salaam Gateway]
“Over 6.1 million vaccine doses have been administered in the Kingdom so far, at a rate of 175,000 daily doses, which means 17.5 percent of the Kingdom has received at least one dose.”
–Deema Al-Khudair reports for Arab News that the Ministry of Health has postponed second dose appointments as of April 11 in order to ensure more of the Kingdom’s residents can receive their first dose. The ministry noted that a global shortage in vaccine manufacturing and delivery required more room for first timers, especially those in high risk categories, to receive theirs. [Arab News]
“The transaction represents a continuation of Aramco’s strategy to unlock the potential of its asset base and maximize value for its shareholders.”
–Saudi Aramco, in a Friday statement confirming it had entered into a $12.4 billion deal with a consortium investors led by EIG Global Energy Partners that would give the investor group a 49% stake in Aramco’s pipeline assets. [Reuters]
“The setup that we have, the market momentum, our financial performance, all of these indicators just give us the comfort to say this is the right time to float the company and to be among developed exchanges and listed also on their platforms.”
-Khalid Al Hussan, Saudi Tadawul Group CEO, speaking with CNBC’s Hadley Gamble after the Tadawul announced its conversion into a holding company with four subsidiaries as it prepares for an initial public offering this year. [CNBC]
