Month: March 2025

China’s President Xi Jinping urged a gathering of multinational CEOs on Friday to protect global industry and supply chains, as Beijing seeks to assuage foreign firms’ concerns over the Chinese economy’s health amid threats of more US tariffs.

Beijing is battling to dispel fears that a renewed trade war with US President Donald Trump will further pinch growth in the world’s second-largest economy, which has been struggling to recover since the pandemic.

Longstanding unease over China’s tightening regulations, abrupt crackdowns on foreign firms, and an uneven playing field favoring state-owned Chinese companies are also sapping business sentiment.

“We need to work together to maintain the stability of global industry and supply chains, which is an important guarantee for the healthy development of the world economy,” Xi told the business leaders, who included the bosses of AstraZeneca, FedEx, Saudi Aramco, Standard Chartered and Toyota.

Around 40 executives joined the meeting, the majority of whom represented the pharmaceuticals sector. The meeting ran for just over 90 minutes and seven companies were invited to speak, a source with direct knowledge of its planning said.

“The CEOs I spoke with, and I spoke with a lot of them, felt it was worth it,” said Sean Stein, president of the US-China Business Council and one of the meeting’s attendees. “Not only did the president acknowledge various challenges facing companies and industry, in many cases he pledged the government would take action.”

The executives sat in a horseshoe formation, with Mercedes-Benz CEO Ola Kallenius and FedEx’s Raj Subramaniam sitting directly across from Xi.

HSBC CEO Georges Elhedery, SK Hynix boss Kwak Noh-jung, Saudi Aramco president and CEO Amin Nasser, and chair of Hitachi Toshiaki Higashihara also sat in the first row.

“This meeting is a big illustration of business diplomacy. Now there is not just dialogue between bodies, WTO entities and states, but diplomacy being led by companies that are not just representing themselves, but also their sectors,” said Frank Bournois, VP and dean of the China Europe International Business School in Shanghai, adding that its success would depend on future actions and not just words.

The frequency of meetings between foreign executives and high-level Chinese officials has picked up over the past month, after official data showed foreign direct investment plummeted 27.1 percent year-on-year in local currency terms in 2024.

That marked the biggest drop in FDI since the 2008 global financial crisis.

“Foreign enterprises contribute one-third of China’s imports and exports, one-quarter of industrial added value and one-seventh of tax revenue, creating more than 30 million jobs,” Xi said.

“In recent years, foreign investment in China has also been interfered with by geopolitical factors … I often say that blowing out other people’s lights does not make you brighter.”

Trump has renewed his trade war with China since taking office and has announced a wave of fresh “reciprocal” tariffs to take effect on April 2, targeting countries with trade barriers on US products, which could include China.

He imposed 20 percent tariffs on Chinese exports this month, prompting China to retaliate with additional duties on American agricultural products.

“The essence of China-US economic and trade relations is mutually beneficial and win-win,” Xi told the meeting.

The Chinese leader last year singled out American business leaders for an audience after the China Development Forum, but USCBC’s Stein said such meetings were unlikely to become a routine fixture at the annual business summit, which this year ran from March 23-24.

“China’s messaging is that it isn’t an annual event and that businesses shouldn’t expect it to be.”

Source:https://www.arabnews.com/node/2595157

Mergers and acquisitions in Saudi Arabia recorded a 55 percent annual rise in 2024 as deal value hit $9.6 billion, fueled by foreign investors and key sector activity.

According to Marsh’s Transactional Risk Insurance report, 59 M&A transactions closed in the Kingdom, with 25 percent of deal activity concentrated in the industrial sector, 20 percent in technology, and 14 percent in consumer and retail — all areas aligned with the country’s Vision 2030 economic transformation strategy.

This helped to fuel an increase in transactional risk insurance across the Gulf Cooperation Council region, with demand climbing 78 percent, the analysis showed.

The robust M&A industry throughout the Middle East and North Africa in 2024 was in contrast to trends in other regions, with a report released by GlobalData in December showing such transactions — as well as those involving private equity and venture financing — recording an annual fall of 8.7 percent during the first 11 months of the year.

In an interview with Arab News, Luke Sutton, head of transactional risk for the Middle East and Africa at Marsh, said: “Foreign investors accounted for 32 percent of Saudi Arabia’s $9.6 billion in M&A activity, including several deals involving consortiums of local and international buyers.”

He added: “The most active non-Saudi acquirers were from the US, UAE, and UK, with 25 percent of inbound investment concentrated in tech, 15 percent business services, 15 percent industrials, 10 percent energy and natural resources, and 10 percent transportation.”

Across the wider GCC, inbound investment accounted for 25 percent of all insured M&A transactions, reflecting a growing presence of foreign buyers in regional dealmaking.

“Saudi Arabia is a market with very significant and well-hedged M&A potential; and government-sponsored capital expenditure is expected to bring opportunities to market as the country focuses on diversification,” Sutton said.

He also highlighted the effect of recent regulatory changes, noting that efforts to boost foreign direct investment have opened up Saudi Arabia to global buyers.

“Warranty and indemnity is a staple feature of M&A transactions in the US, Europe, and Asia. So it is natural that those buyers have imported this trend into the Saudi market,” he said.

According to the expert, the Saudi Insurance Authority’s approval of W&I insurance for the Kingdom’s incorporated buyers is also expected to significantly increase domestic adoption.

Sutton said that transactional risk insurance not only reduces risk, but also plays a key role in expediting deal execution. By covering potential post-sale liabilities, W&I insurance allows parties to avoid lengthy negotiations over indemnities.

When asked if insurance helps speed up closure, he replied: “Yes — very significantly. Buyers and sellers — and their legal advisers — can focus on other facets of the transaction, knowing that the insurance market can back-stop seller representations and indemnities.”

According to Sutton, as Saudi Arabia pursues diversification, warranty and indemnity insurance is increasingly used to manage deal risks — giving buyers protection from hidden issues and sellers a clean, liability-free exit.

As part of Vision 2030, Saudi Arabia has made attracting foreign investment a national priority.

Reforms such as 100 percent foreign ownership in select sectors, streamlined licensing procedures, and a new law that places local and foreign companies under a unified regulatory framework are aimed at boosting the Kingdom’s global competitiveness and reducing its dependence on oil revenue.

The launch of special economic zones, privatization of state assets, and incentives for international companies to establish regional headquarters in Riyadh have all contributed to rising foreign direct investment flows.

Saudi Arabia is targeting an increase in annual FDI from $26 billion in 2023 to $100 billion by 2030. This openness has coincided with the region’s rise as a global investment hub, largely driven by sovereign wealth funds.

The Public Investment Fund, alongside other major Gulf sovereign wealth funds, is no longer just a passive investor, but a key player in cross-border M&A, frequently taking controlling stakes and co-leading big-ticket international transactions.

M&A insurance activity in the GCC
Marsh reported that it had placed more than $550 million in insurance capacity for insured transactions in Saudi Arabia and the UAE, representing a total deal value of $2.25 billion, with a median deal size of $450 million.

SWFs were instrumental in driving deal activity, according to the firm, with 2024 marking the highest level of global deal making by these organizations in more than a decade.

While insured deals still leaned toward the domestic, Marsh noted a growing shift. The investment mix is evolving toward a 50/50 split between domestic and inbound capital, fueled by international partnerships and increased foreign participation in strategic sectors.

The rising presence of private equity funds has also influenced the demand for risk insurance. Their focus on clean exits and post-deal protection has made W&I insurance an increasingly standard part of deal structuring.

“While historically many deals were completed without insurance due to limited insurer appetite and perceived high costs; in the last two years, there has been a significant increase in requests for quotes on deals within GCC,” said Nirav Modi, private equity and mergers and acquisition services practice leader at Marsh.

Regionally, while the total number of M&A deals in the Middle East and Africa fell 13 percent in 2024, deal value jumped 42 percent to $33 billion, as investors prioritized larger, more strategic transactions, according to the report.

Saudi Arabia played a major role in this growth, particularly through infrastructure and public-private partnership initiatives under Vision 2030.

These trends have been matched by a notable evolution in the region’s insurance landscape, as market capacity and competition have grown in response.

According to the report, the number of insurers underwriting deals rose from five in 2021 to nearly 15 in 2024, resulting in broader coverage options and a sharp decline in premiums. Marsh reported a mean premium rate of just over 1.3 percent, down more than 60 percent from three years ago.

Strategic sponsors, including SWF-backed corporates, made up 66 percent of insured buyers, highlighting the role of institutional investors in driving deal flow and relying on insurance to manage complex transactional risks.

As global M&A rebounds in 2025, Saudi Arabia is expected to remain a top destination for international capital, particularly in clean energy, logistics, digital infrastructure, and advanced manufacturing.

With continued regulatory support and a strong push for diversification, M&A insurance is poised to play a pivotal role in facilitating secure, high-value transactions across the Kingdom.

SOurce:https://arab.news/wtj6x

In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector, the Saudi Press Agency reported.

The decision followed a study carried out by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which assessed the challenges facing the market in the Saudi capital.

A key aspect of the directive will be the lifting of restrictions on land transactions and development in northern Riyadh.

The move will allow for the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, SPA reported.

The areas affected include a 17-square-kilometer section north of Riyadh, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south, as well as a 16.2-square-kilometer area north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and Al-Qayrawan District.

These additions, combined with previously lifted suspensions covering 48.28 square kilometers, bring the total area now available for development in Riyadh to 81.48 square kilometers.

To increase housing accessibility, the RCRC has been tasked with providing planned and developed residential lands for citizens.

Between 10,000 and 40,000 plots will be made available annually over the next five years, at a capped price of 1,500 riyals per square meter. These plots will be offered to married citizens or individuals over the age of 25, provided they do not own any existing real estate.

Strict regulations will govern the issuance of this land, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.

To further stimulate real estate supply, amendments to the white land fees system — a policy designed to encourage the development of vacant land — will be introduced within 60 days.

Additionally, regulatory measures will be implemented within 90 days to ensure a fair balance between landlords and tenants.

Finally, the General Authority for Real Estate and RCRC have been assigned the task of monitoring and controlling property prices in Riyadh.

They will submit periodic reports to assess the effectiveness of these measures and ensure that the real estate market remains stable and accessible.

Source:https://arab.news/j7hvs

In a groundbreaking scientific effort, researchers have leveraged artificial intelligence to unlock a powerful new tool in the fight against microplastic pollution — microscopic protein fragments known as peptides.

These AI-engineered peptides can bind to plastic particles, making it possible to remove microplastics from water more efficiently.

Microplastics — tiny plastic fragments smaller than five millimeters — are now alarmingly widespread in oceans, rivers, soil, and even human bodies. These particles persist in the environment for centuries, threatening ecosystems and public health.

Traditional cleanup methods have struggled to address this growing crisis. Now, a team of scientists from Saudi Arabia, the US and beyond has unveiled a revolutionary solution: biodegradable peptides that latch onto microplastic particles with impressive precision.

Discovered using advanced deep learning models, these peptides could mark a turning point in the global fight against plastic pollution.

“We combined advanced biophysical simulations, which show how short proteins behave on plastic surfaces, with deep learning or AI to spot hidden patterns in those simulations,” Abdulelah Al-Shehri, assistant professor of chemical engineering at King Saud University and the study’s co-author, told Arab News.

“This allowed us to pinpoint specific peptides that latch onto microplastics up to 34 percent more effectively than older methods.”

Unlike conventional filtration methods, these AI-guided peptides offer a scalable, biodegradable alternative that could transform microplastic remediation.

“Essentially, AI guided us to protein sequences that traditional approaches might miss, leading to stronger and more efficient cleanup capabilities,” Al-Shehri added.

While this discovery was initially made in a computational setting, laboratory tests have confirmed the peptides’ real-world potential.

“We recently ran experiments to evaluate how strongly the AI-designed peptides bind to plastic,” Michael Bergman, a PhD candidate at the Department of Chemical and Biomolecular Engineering at North Carolina State University, told Arab News

“No one has designed plastic-binding peptides before, and we relied solely on computational predictions for peptide design, so we were curious to see how our computational predictions bear out in experiment.

“Excitingly, the AI-designed peptides did very well. The peptides had much higher affinity for plastic compared to random sequences of amino acids and performed as well as our best biophysical designs.

“This work will hopefully be published in the coming months. Having checked this box, the next step is to apply the peptides to remediate microplastic pollution.”

Bringing these peptides from the lab to real-world applications presents a major challenge: scalability.

“A major obstacle is producing these specialized peptides on a large scale while ensuring they remain stable and effective in different aquatic environments, whether in fresh, salt or even grey water,” Al-Shehri said.

“Beyond manufacturing, there needs to be close collaboration among researchers, policymakers and industry to streamline regulations, secure funding and ensure safe, cost-effective deployment where pollution is most critical.”

Bergman agrees, highlighting the vast potential applications of these peptides.

“We see many possible applications, such as detecting (and perhaps quantifying) microplastic pollution in water using a biosensor, removing microplastics either through filtration or by inducing aggregation, and aiding the adhesion of plastic-degrading organisms to microplastics,” he said.

This breakthrough is particularly relevant for Saudi Arabia, which is balancing its ambitious sustainability goals with its role as a global petrochemical leader.

Maher Al-Rashed, associate professor in plastics science at King Saud University, sees this dual role as an opportunity rather than a conflict.

“Saudi Arabia’s ongoing transition toward sustainability, particularly through Vision 2030, offers a fertile ground for the integration of AI-driven biodegradable peptides as part of a multifaceted strategy to combat plastic pollution,” he told Arab News.

“A practical application could involve incorporating these peptides into wastewater treatment plants in cities like Riyadh and Jeddah, where microplastic contamination in water sources has been documented.”

He also referenced international benchmarks such as France’s Carbios and Japan’s Ideonella sakaiensis as models for Saudi Arabia to adapt and lead in this space.

“Saudi Arabia could adopt similar AI-engineered enzymatic solutions, particularly in industrial zones like Jubail and Yanbu, where high plastic waste output necessitates sustainable disposal methods,” he said.

While peptides offer a powerful new tool for microplastic cleanup, experts stress that they are not a replacement for reducing plastic waste at its source. “Reducing plastic use is crucial to stem the flow of new pollutants,” said Al-Shehri.

“However, we already have a staggering amount of microplastics in circulation, some of which may persist for centuries. AI-powered strategies like our peptide designs serve as a necessary complement to source reduction, actively targeting and removing existing contaminants while broader efforts to improve recycling continue.”

Al-Rashed agrees but adds that for these peptides to be effective long term, they must be optimized for various types of plastics and environmental conditions.

“One fundamental challenge is ensuring that these peptides exhibit substrate specificity… meaning they must effectively degrade a variety of plastic polymers such as polyethylene, polypropylene and PET without harming natural organic matter,” he said.

He also emphasized the importance of ensuring environmental safety.

“AI-driven peptides must degrade into environmentally safe byproducts. Research conducted by Saudi Arabia’s King Abdulaziz City for Science and Technology is exploring how peptide-mediated polymer degradation can be designed for maximum ecological safety.”

Bringing these peptides from theory to widespread use requires clear regulatory frameworks. Al-Rashed stressed the need for biosafety and industrial scalability.

“From a regulatory perspective, Saudi Arabia would need to establish stringent biosafety and environmental risk assessment protocols before approving the environmental release of AI-engineered peptides,” he said, referencing the role of the Saudi National Center for Environmental Compliance.

On an industrial level, he pointed out that cost efficiency and integration with existing waste management systems would be key factors in success.

“Saudi Arabia’s municipal waste collection and processing facilities are currently optimized for mechanical and chemical recycling, meaning that transitioning to bioenzymatic plastic degradation would require significant infrastructure modifications,” he said.

As Saudi Arabia explores this innovation, researchers like Al-Shehri emphasize the importance of framing the message carefully — especially in a country where the plastics industry is economically significant.

“In essence, microplastic research is as critical as the plastics industry itself,” Al-Shehri said. “We must balance the lifesaving benefits of plastic with urgent research to eliminate and remove these tiny particles from our environment.

“Propelled by innovative academic efforts, short peptides now shine as a new technology in the global effort to combat microplastic pollution. Yet forging true progress — and preserving the plastics industry’s long-term viability — demands concerted efforts and research among governments, industries, academic institutions, and communities alike.”

As researchers worldwide explore how AI can revolutionize science and sustainability, the development of microplastic-binding peptides stands out as a clear example of how data, biology, and innovation intersect.

“There are almost endless possibilities in combining AI with biophysics,” said Bergman. “Of particular relevance to plastic and microplastic pollution is the development of enzymes that break down plastics.

“In recent years, biophysics-guided AI helped optimize an enzyme that rapidly breaks down the plastic PET. Other researchers are looking to optimize similar enzymes for other common plastics like polystyrene and polyethylene.”

From the lab benches of Riyadh to simulation labs in North Carolina, one message rings clear: AI has the potential to reshape how we approach one of the planet’s most pressing environmental challenges — and Saudi Arabia is ready to lead the charge.

Source:https://arab.news/9sknk

Saudi Arabia’s industrial sector experienced a 63 percent increase in new investments in 2023, amounting to a SR15 billion ($3.99 billion) rise compared to the previous year.

According to the annual report from the Saudi Authority for Industrial Cities and Technology Zones, the cumulative funding last year reached SR415 billion, distributed across 891 projects encompassing both local and foreign ventures.

Notably, international inflows soared by 85 percent compared to the previous year, underscoring the Kingdom’s growing appeal as a prime destination for global investors.

The authority, also known as Modon, noted that the developed land area in these industrial cities now exceeds 209 million sq. m., accommodating 6,443 factories and 7,946 industrial, logistical, and investment establishments.

“We always take pride in creating success stories within and outside the authority; during 2023, Modon’s teams managed to achieve success and manage over 7,900 industrial, investment, and logistical contracts, with growth nearly 10 percent over 2022,” Modon’s CEO, Majed Al-Argoubi, stated in the report.

“In addition, there was an active movement for attracting and facilitating the journey of current and potential partners. Concurrently, the digital transformation index rose by 9 percent to a rate of 85.77 percent, according to a continuous improvement journey for internal procedures tailored for partners and stakeholders,” he added.

The report also revealed a 13 percent growth in new manufacturing establishments, along with a 6 percent increase in the number of producing factories.

Furthermore, there are 1,301 ready-to-use factory units and facilities, signifying a significant expansion in the Kingdom’s industrial infrastructure.

This growth reflects the nation’s growing economic dynamics and its successful push toward manufacturing and technological advancement.

The authority also inaugurated the Modon Oasis in Yanbu and a new industrial city in Asir last year. Additionally, it completed 48 development projects, with a total investment exceeding SR1.3 billion.

Moreover, the government agency executed 260 ready-made factories in strategic industrial locales across the Kingdom, with significant private sector involvement, aligning with the Saudi Arabia National Industrial Development and Logistics program.

The strategy aims to bring supply chains closer to the domestic economy, reducing costs and boosting sustainability.

Further enhancing the operational capacity of these industrial zones, Modon introduced significant upgrades in utility services. This included the addition of 724 maximum fuse amps of electrical capacity and the expansion of potable water and wastewater services. These upgrades bolster the infrastructure to support increased industrial activity.

The report also highlighted Modon’s commitment to digital transformation and cybersecurity. It showcased a high level of compliance with information security controls and a substantial number of data exchange operations, reflecting the authority’s dedication to modernizing and safeguarding its industrial sectors.

Established in 2001, Modon plays a pivotal role in shaping Saudi Arabia’s manufacturing landscape. It oversees 36 industrial cities and various technological oases across the nation, aligning with the Kingdom’s Vision 2030 to diversify its economy and enhance its global industrial standing.

Source:https://arab.news/bqdea

Saudi Arabia’s growth in the industrial sector is progressing, with the Kingdom creating policies to attract investments and boost local content production, according to a vice minister.

Speaking in a panel discussion at the Multilateral Industrial Policy Forum in Riyadh, Saudi Arabia’s Vice Minister of Industry Affairs, Khalil bin Salamah, said that effective implementation of policies is crucial to meet the goals outlined in the Kingdom’s National Industrial Strategy.

Events like MIPF are necessary for Saudi Arabia, as the Kingdom is on a path of economic diversification by strengthening the industrial sector and reducing the revenue dependence on crude.

The vice minister described Saudi Arabia’s National Industrial Strategy as “very ambitious” as it aims to build a thriving industrial ecosystem that attracts investment, enhances economic diversification, and develops its gross domestic product and non-oil exports.

“What we have done in the last 60 or 70 years, we have to triple in the next 10 years. The only way to really achieve these ambitious targets is by focusing on the policy part. The local content law is very critical. So, our production can have an outlet market, either from the demand we have in Saudi Arabia or to play in the value chain with large procurement companies,” said Bin Salamah.

He added: “Procurement companies always look for quality, delivery of time and cost competitiveness. So, there is a government role to play, and there is a play of policies to bridge between the product and companies who will buy. And there are also other ministries within the ecosystem of government, each one will play its role.”

The vice minister also underscored the vitality of cross-country policies and added that they are essential for the Kingdom to expand its industrial reach to other nations.

He added: “The National Industrial Strategy is created keeping in mind what we have succeeded in the petrochemical sector. To be a global player, we have to see the value chain not only all done in Saudi Arabia, but also has to play a bigger role in other countries.”

During the same panel discussion, Khalid Al-Salem, CEO of the Royal Commission of Jubail and Yanbu, said that it has almost $1.3 trillion ($350 billion) of investments made by national and international private companies.

He added: “The investments, SR1.3 trillion, it is either under discussion or in design, or construction. We have SR500 billion worth of investments now in the pipeline within the coming five years. Imagine these cities will be doubled. We will continue to upgrade our systems.”

The CEO added that the Royal Commission is also adopting green initiatives in these cities, which include the use of green hydrogen, renewables, and carbon capture technologies.

“In Royal Commission, we have all the sensors for environmental control and looking at the traffic and utilities. We are connecting all of that to create smart cities, making our cities more efficient and we can respond immediately to the requirement of investors,” said Al-Salem.

He added: “The creation of the Ministry of Industry and Mineral Resources and all the required system is clearly a great recipe for success. We are now looking to implement the National Industrial Strategy and National Mining Strategy. We are now working to achieve these targets.”

Source:https://arab.news/n5vfs

Saudi Arabia has taken another step toward opening its economy to international investors by allowing foreign ownership in real estate companies with projects in Mecca and Medina. This marks a significant shift in policy, as investment in these two Holy Cities has traditionally been highly restricted. By enabling foreign participation through listed companies on the Saudi stock exchange, the government aims to enhance market liquidity, attract global capital, and support ongoing development initiatives.

This decision builds upon earlier reforms, such as the 2021 allowance for non-Saudis to invest in real estate funds focused on these areas. For businesses and investors tracking opportunities in the Gulf region, this move signals Saudi Arabia’s broader commitment to increasing foreign investment in its key economic sectors.

In this article, we explore the implications of Saudi Arabia’s decision to allow foreign investors to acquire stakes in real estate companies operating in Mecca and Medina. Additionally, we assess the potential market impact, investor interest, and what this shift means for businesses looking to engage with Saudi Arabia’s evolving real estate sector.

What foreign investors need to know about the new regulations
The new regulations introduced by Saudi Arabia’s Capital Market Authority (CMA) allow foreign investors to invest in listed Saudi companies owning real estate in Mecca and Medina. Here’s what foreign investors need to know about the policy:

Eligible investment options: Foreign investors can invest in shares or convertible debt instruments of Saudi-listed companies that own real estate in Mecca and Medina.
Ownership limits: Foreigners can own up to 49 percent of the shares in these companies. Strategic foreign investors are excluded from these investment options.
Excluded strategic investors: Strategic foreign investors are not allowed to own shares or convertible debt instruments in these companies under the new rules.
Experts insights and market reaction
The announcement that Saudi Arabia is allowing foreign investment in companies owning real estate in Mecca and Medina has sparked significant interest among global investors and industry experts. Faisal Duranni, head of research for MENA at Knight Frank, described the move as a major step toward easing international ownership laws in Saudi Arabia, signaling a broader strategy to attract foreign capital into the kingdom’s real estate market.

Ziad El Chaar, CEO of London-listed Dar Global, echoed these sentiments, noting that the relaxation of foreign ownership restrictions in the Holy Cities of Mecca and Medina would significantly impact the market. Developers are already preparing to capitalize on the increased interest from international investors, anticipating a boost in real estate activity and development projects, particularly in areas linked to the pilgrimage economy. The expansion of foreign investment opportunities is expected to bring international capital and expertise into these sacred cities, further enhancing the value and appeal of the local real estate market.

Market reactions have been overwhelmingly positive, with significant gains in the share prices of companies focused on real estate in Mecca and Medina.

On the day of the announcement, 13 out of 14 real estate companies listed on the Saudi Stock Exchange saw an average rise of 3.59 percent in their stock prices. The companies with a direct focus on Mecca and Medina, such as Taiba Investments Co., Makkah Construction and Development Co., Knowledge Economic City, and Jabal Omar Development Co., experienced even larger increases, ranging from 9 percent to 10 percent. These strong market reactions suggest that investors are optimistic about the potential for further development and the opportunity to tap into the lucrative real estate market tied to the religious and cultural significance of these cities.

In summary, the decision is viewed as a catalyst for both short-term market activity and long-term strategic shifts in Saudi Arabia’s real estate landscape. The easing of foreign investment restrictions is likely to attract a wider pool of international investors, from private equity firms to individual investors, all eager to engage with the booming real estate market in Mecca and Medina. As the Kingdom continues to open up to global capital, experts anticipate a broader trend of increased foreign participation in Saudi Arabia’s economic growth, underpinned by projects that align with the country’s Vision 2030 agenda.

Outlook for Saudi Arabia’s real estate sector
Saudi Arabia’s real estate market is undergoing rapid transformation, driven by Vision 2030 initiatives that aim to boost home ownership, expand urban infrastructure, and diversify economic activity beyond oil. The government’s focus on large-scale housing, commercial, and tourism projects is reshaping the sector, with growing investor interest in key cities beyond Riyadh, such as Mecca and Medina.

Mega projects such as NEOM, Qiddiya, and The Red Sea Project are reshaping the investment landscape, attracting global interest in newly emerging economic hubs. Riyadh has seen the most significant price increases, particularly in the residential and rental markets, but the latest regulatory changes in Mecca and Medina could lead to a surge in demand in the Holy Cities as well.

Source:https://www.middleeastbriefing.com/news/saudi-arabia-to-allow-foreign-ownership-in-real-estate-companies-with-projects-in-mecca-medina/

Oman signs agreements for 100 new industrial projects with an investment volume of nearly OMR1.5 billion in the renewable energy, food and medical industries, air conditioning equipment industries, construction and building, metals and plastics industries, and in several industrial, economic and free zones.

The Sultanate of Oman, represented by the Ministry of Commerce, Industry and Investment Promotion, celebrated Oman Industry Day, which falls on 9 February every year.

The slogan of this year is “Oman at the Centre of Global Supply Chains”. It reflects the Royal interest attached to this sector due to its vital role in enhancing diversification and spurring economic growth.

The ceremony was held under the patronage of HH Sayyid Dr. Fahad bin Al Julanda Al Said, Vice Chancellor of Sultan Qaboos University (SQU), in the presence of Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion and some undersecretaries. A number of officials and businessmen in the industrial sector and Omani companies also attended the ceremony.

Dr. Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said that the latest data issued by the National Center for Statistics and Information (NCSI) indicate an increase in the output of the converting sector by 8.5 percent to reach OMR2.686 billion by the end of September 2024 at constant prices compared to the same period in 2023.

He said in his speech that the Global Competitive Industrial Performance Report issued by the United Nations Industrial Development Organization (UNIDO) indicates that the Sultanate of Oman achieved third place in the Arab world and 53rd globally, which reflects the acceleration of industrial competitiveness capabilities over the past years.

He affirmed that the industrial sector has managed to achieve the targets of the Industrial Strategy 2040 during 2022 and 2023, as OMR3.44 billion was set as a target contribution for converting industries to the GDP for the year 2022.

The contribution of this sector witnessed a growth of 19 percent between 2020 and 2023, reflecting the continuous progress towards achieving the goals of the strategy, thanks to the joint cooperation between the public and private sectors, he added.

The industrial sector also provided about 26,000 job opportunities for Omanis since 2020, achieving a growth rate of 79 percent compared to 2020, reflecting its prominent role in supporting the national workforce, said Dr. Saleh.

Dr. Saleh pointed out that non-oil commodity exports recorded a remarkable increase, reaching about OMR7.5 billion by the end of 2023, compared to OMR3.4 billion by the end of 2020, reflecting the accelerated growth in the industrial performance of the Sultanate of Oman.

In his turn, Faisal bin Abdullah Al Rowas, Chairman of the Board of Directors of Oman Chamber of Commerce and Industry (OCCI) affirmed that the industrial sector enjoys tremendous opportunities for growth, sustainability and empowerment of the private sector in the Sultanate of Oman.

He pointed out that the OCCI supports the empowerment of the private sector by anticipating challenges and attracting investments, in addition to empowering the Omani product and raising its competitiveness in local and foreign markets.

During the ceremony, three memoranda of understanding (MoUs) were inked.

The first one, signed with the International Centre for Industrial Transformation in Singapore, is related to supporting and encouraging factories to adopt the technologies of the Fourth Industrial Revolution (4IR). The second MoU, signed with the Gulf Organization for Industrial Consulting, pertains to providing consultations to establish a center for advanced automation, while the third MoU announced a strategic partnership with the United Nations Industrial Development Organization (UNIDO).

The Ministry of Commerce, Industry and Investment Promotion launched, during the ceremony, the service of obtaining the national product identity certificate within the Made in Oman platform. It aims to promote Omani industries and highlight national products.

The advanced automation centre was also launched, which aims to develop industrial capabilities to transform Omani industries into leading factories in digital transformation.

A programme to qualify certified assessors using the Siri methodology was also launched to ensure that assessments are conducted accurately and professionally by training assessors on the latest methods and tools necessary to assess the readiness of facilities for industrial transformation.

The ceremony also saw the announcement of the Certificate Verification Programme (Professional Accreditation), which provides a reliable service to companies to facilitate the process of verifying academic and professional documents. The Ministry also launched the Industrial Sector Enablers Guide, with the aim of enabling partners to identify the opportunities available in the industrial sector in the Sultanate of Oman and how to utilize them.

Meanwhile, Abdulaziz bin Ahmed Al Qasmi, Head of the Local Content Office at the Ministry of Commerce, Industry and Investment Promotion, gave a visual presentation in which he reviewed the industry’s achievements and contributions in the Sultanate of Oman.

Dr. Ahmed bin Khalfan Al Badawi, Director of the Industrial Strategy Implementation and Evaluation Department at the Ministry of Commerce, Industry and Investment Promotion, also gave a visual presentation on the Industrial Observatory and its aspirations.

On her turn, Anfal Zaher Al Afani, Head of Markets and Trade Facilitation Department at Oman Logistics Center, gave a visual presentation on supply chain improvement methodologies and how to use connectivity and integration to improve the supply chain to reduce costs and increase efficiency.

During the ceremony, a dialogue session was held on supply chains and their importance with the participation of a number of specialists from the public and private sectors.

Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, held a dialogue session with the Omani industrialists. The session addressed means of enhancing local content and focused on the importance of strengthening supply chains in the industrial sector.

They exchanged views on the challenges and opportunities available to Omani companies. It also highlighted how to enhance cooperation among various stakeholders to support sustainable growth in the sector.

Gerd Muller, Director-General of the United Nations Industrial Development Organization (UNIDO), lauded the Sultanate of Oman’s pioneering role in the field of sustainable manufacturing.

He pointed out that these efforts reflect Oman’s keenness to promote economic and social development in line with the organization’s mandate, affirming that Oman has proven its ability to take serious steps towards developing a sustainable industrial sector, making it a role model to be emulated in the region.

In his turn, Jesmond Hong, Chief Operating Officer of the International Centre for Industrial Transformation, said that the centre looks forward to strengthening cooperation with the Sultanate of Oman to drive industrial transformation and enable the manufacturing sector to achieve a prosperous future.

The centre is a non-profit and independent organisation that aims to promote manufacturing transformation through collaboration with the public and private sectors.

Source:https://timesofoman.com/article/154913-oman-signs-agreements-for-100-new-industrial-projects-worth-omr15bn