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May 7, 2018

Aramco, Total said to eye Saudi fuel stations such as Tas’helat

Saudi Arabian Oil Co. and Total are weighing jointly buying businesses such as Tas’helat Marketing Co. to gain access to networks of retail fuel stations in the Gulf kingdom, according to people with knowledge of the matter.

The state-owned company, known as Aramco, and the French oil giant are also looking at a range of options from consolidating some service stations to potentially starting the business from scratch, the people said, asking not to be identified as the matter is private.

French lender Credit Agricole SA and local investment bank Saudi Fransi Capital are advising the firms on their plans, which are still in the early stages, they said.

No final decisions have been taken and the group may decide against acquiring Tas’helat, which operates fuel stations under the Sahel brand, or any other business, they said. Representatives for Total and Credit Agricole declined to comment. Spokesmen for Aramco and Saudi Fransi didn’t respond to requests for comment.

Aramco and Total this month entered into a preliminary accord to study the joint purchase of a retail service station network in Saudi Arabia, and another worth about $9 billion for the potential expansion of a refinery and petrochemicals complex in Jubail, according to a statement April 10.

A division of Aramco, known as Saudi Aramco Retail Co., may enter into a joint venture with the French company to operate the business following a takeover, one of the people said.

Aramco, which is planning what could be the world’s largest initial public offering, is scouting for acquisitions as it seeks to become an integrated energy company with operations spanning the full spectrum of activities in the industry.

The company asked banks to pitch for roles to help identify natural gas assets globally, people familiar with the matter said this month.

Other large energy majors are looking to divest distribution assets and focus more on core exploration activities. Abu Dhabi National Oil Co., another Middle East state-owned explorer, raised 3.1 billion dirhams ($844 million) from the sale of a stake in its fuel retail unit this year.

Source:http://www.arabianbusiness.com/retail/395040-aramco-total-said-to-eye-saudi-fuel-stations-such-as-tashelat

May 7, 2018

Saudi-led group wins deal to build key Oman water project

A consortium led by Saudi-based ACWA Power has been awarded the Salalah Independent Water Project by the Oman Power and Water Procurement Company.

The plant will be located in Salalah, Dhofar region and will have a capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology.

The consortium also includes Veolia and Veolia Middle East and Dhofar International Development & Investment Holding Co (DIDIC), a statement said.

The project is being procured by OPWP under a build-own-operate framework on the back of a 20 year water purchase agreement, it added.

Dhofar Desalination Company, the project company, will be owned by ACWA Power, Veolia Middle East and DIDIC.

Paddy Padmanathan, president and CEO of ACWA Power, said: “Water is the most vital commodity for human life as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desalinated water and power.”

The engineering, procurement, and construction of the plant will be handled by a consortium of Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente while the operations and maintenance of the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman and DIDIC.

Thamer Al Sharhan, managing director at ACWA Power, said: “Oman is a strategic country for ACWA Power – our portfolio of six plants can generate over 4,300 MW of power and 42 million gallons per day of desalinated water. ACWA Power is committed to ensuring the success of this project while creating real value for the local communities.”

Demand for water in Oman is expected to rise by about six percent per annum over the next seven years.

Source:http://www.arabianbusiness.com/industries/construction/385461-saudi-led-group-wins-deal-to-build-key-oman-water-project

May 7, 2018May 7, 2018

Oman forecast to see double digit growth in tourists to 2021

Tourism arrivals to Oman will increase at a compound annual growth rate (CAGR) of 13 percent between 2018 and 2021, according to a new report.

The Colliers International data, released ahead of Arabian Travel Market 2018 (ATM), which takes place at Dubai World Trade Centre next month, predicts the rise will be fuelled by visitors from across the GCC, who accounted for 48 percent of guests in 2017.

In addition, arrivals from India (10 percent), Germany (6 percent), the UK (5 percent) and Philippines (3 percent) are also expected to contribute heavily to the growth, supported by new visa processes and improved flight connections, the report said.

Historically, the Middle East has been the largest source market for Oman, with arrivals from this group increasing at an annual rate of 20 percent between 2012 and 2017, it added.

Simon Press, senior exhibition director, ATM, said: “The latest data demonstrates the growth in visitors to Oman will continue, supported by strategic investment from the government as it turns to tourism to diversify its income streams.

“Oman is a fantastic destination with responsible, eco, cultural and heritage attractions, as well as being a key travel hub, with significant opportunity to capitalise on transit itineraries for stopover visitors.”

Accommodating the predicted influx, a number of major hotel chains have recently announced properties in Muscat, driving the 12 percent CAGR over the next three years – from 10,924 rooms in 2017 to 16,866 keys in 2021.

Supply in Muscat is dominated by five-star properties, accounting for 21 percent, and four-star, accounting for 24 percent.

Press said: “With strong existing demand from GCC leisure and business travellers, Oman is preparing for even more 4- and 5-star guests over the coming years as work completes on the Oman Exhibition and Convention Centre and Muscat Opera. Occupancy could rise by as much as 5 percent in 2018, so Oman really is one to watch.”

Complementing its hotel pipeline, Oman has made significant investments in other tourism infrastructure, including airports, the report said, adding that expansions at Muscat and Salalah International Airports pushed passenger figures to 12 million and 1.2 million in 2016.

Source:http://www.arabianbusiness.com/travel-hospitality/391937-oman-forecast-to-see-double-digit-growth-in-tourists-to-2021

May 7, 2018May 7, 2018

Kuwait’s Global exits controlling stake in Omani steel company

Kuwait-based Global Capital Management (GCM) has concluded a successful exit of its controlling stake in Al Jazeera Steel Products Company, a Omani company listed on Muscat Securities Market.

The transaction was made with Sheikh Suhail Bahwan and Sheikha Amal Suhail Bahwan, chairman and vice chairperson of Suhail Bahwan Group.

Sulaiman Mohammed Al-Rubaie, deputy CEO of Global Investment House and managing partner of GCM said: “We are extremely delighted to have completed this exit and provide our investors with liquidity in such challenging geopolitical and economic environment. We expect to distribute the proceeds from this transaction to clients investing in the fund within the second quarter of 2018”.

The fund acquired 51 percent stake of Jazeera Steel in 2007 and the management team of GCM implemented a growth program for the company. The program focused on enhancing its penetration in regional and international markets namely Saudi Arabia and North America.

During the past five years, Jazeera Steel managed to maintain its growth trajectory despite tough financial and economic times, Al-Rubaie said.

He added: “We are confident that the commitment, track record and expertise of the acquirers will provide Jazeera Steel with the required support and guidance to further grow the company.”

The Global team said it has concluded 33 exits, the highest among all private equity firms in the region, and distributed more than $360 million to its clients, raising the total distributions since inception to more than $580 million.

Source: http://www.arabianbusiness.com/banking-finance/393052-kuwaits-global-exits-controlling-stake-in-omani-steel-company

May 7, 2018May 7, 2018

Oman Oil Co, BP reveal further plans for giant Khazzan gas field

The Oman Oil Company Exploration and Production (OOCEP) and its partner, BP, announced on Monday that they will proceed with the development of Ghazeer, the second phase of the giant Khazzan gas field.

Around 350 kilometres south-west of Muscat, the Khazzan field was discovered in 2000 with development beginning in 2014. OOCEP holds a 40 percent interest in the field, in Oman’s Block 61, with BP, the operator, holding 60 percent in 2016.

The final investment decision for Ghazeer follows the successful start-up of Khazzan’s first phase of development in September 2017, state news agency WAM reported.

This project, which started production ahead of schedule and under budget, is now producing at design capacity of around one billion cubic feet (bcf/d) of gas a day and around 35,000 barrels a day of condensate.

The Ghazeer project is expected to come on-stream in 2021 and deliver an additional 0.5 bcf/d and over 15,000 bpd condensate production. Drilling on the first three development wells has begun, following appraisal drilling on Ghazeer last year.
Initial construction work has already started at Khazzan to accommodate a third gas train and associated infrastructure.

The Khazzan and Ghazeer developments are expected to deliver total production of 10.5 tcf of gas and around 350 million barrels of condensate up to the end of the concession agreement in 2043.

Source:http://www.arabianbusiness.com/energy/393822-oman-oil-co-bp-reveal-further-plans-for-giant-khazzan-gas-field

April 29, 2018

Bahrain’s economy now fastest growing in the Gulf region

The rate of growth of Bahrain’s non-oil economy reached 4.8 percent in the first nine months of 2017, outperforming previous expectations, according to the Bahrain Economic Development Board’s (EDB) Bahrain Economic Quarterly.

According to figures included in the report, 2017’s non-oil growth is expected to exceed the 4 percent recorded in 2016.

The overall economies growth reached a pace of 3.6 percent for the first three quarters of the year, compared to 3.2 percent during 2016 as a whole. The report notes that the rate of growth makes Bahrain’s economy the fastest growing in the GCC.

“Bahrain’s economy continues to deliver at the upper end of growth expectations thanks to a combination of robust structural and countercyclical drivers,” said Dr Jarmo Kotilaine, Chief Economic Advisor of the Bahrain EDB. “We expect this positive dynamic to continue into 2018 as the regional environment becomes more supportive of growth and as the diversified economy continues to expand, supported by an unprecedented investment pipeline.”

According to Kotilaine, Bahrain has increasingly undertaken efforts to take advantage of emerging growth drivers, such as fintech – most notably through the Bahrain fintech Bay – and ICT infrastructure.

“As growth becomes increasingly underpinned by improvements in productivity, Bahrain’s investment in infrastructure, regulatory reform and development of human capital will play a vital role in ensuring long-term, sustainable prosperity and expansion,” he added.

Notably, Bahrain’s non-oil growth is almost entirely driven by the private sector, which has resulted in broad-based, strong performances in sectors including hospitality, F&B, social, personal and financial services and communications, all of which recorded over 6 percent year-on-year real growth during the first nine months of 2017.

Additionally, the report notes that non-oil growth has been boosted by a number of large-scale infrastructure investments, despite subdued oil prices and low government spending growth.

Bahrain’s overall investment pipeline is estimated to have increased by nearly 20 percent in 2017, led by $32 billion worth of ‘priority’ projects such as an airport modernisation project and expansion of the Alba aluminum smelter.

Throughout 2017, the valued of tendered projects as part of the GCC Development Fund rose from $3.9 billion to over $4.1 billion, with the cumulative amount of funds disbursed rising from $751 million in Q4 2016 to $1.4 billion in the same quarter of 2017.

Source:
http://www.arabianbusiness.com/politics-economics/389786-bahrains-economy-now-fastest-growing-in-the-gulf-region

April 29, 2018

Bahrain’s Gulf Air says first Dreamliner to launch on London route

Exporter of Rock N Roll Moulding Machine

Bahrain’s national carrier Gulf Air has announced that its first Boeing 787-9 Dreamliner will serve its double daily London Heathrow service.

The new aircraft, which conducted a fly pass before the Bahrain Grand Prix race on Sunday, will join the fleet on June 15, the airline said in a statement.

A total of five Dreamliner aircraft will enter Gulf Air’s fleet by the end of 2018 with an additional two aircraft arriving during 2019 and three arriving by the end of 2020.

Gulf Air CEO Krešimir Kucko said: “We are only weeks away from officially taking delivery of Gulf Air’s first Boeing 787-9 Dreamliner – a historic moment for Gulf Air and Bahrain and yet another important step in our strategic direction towards furthering Gulf Air’s fleet modernization process and supporting our network and overall passenger experience enhancement strategies.

“Only a few weeks ago, we unveiled a new Gulf Air corporate strategy, 2018 network expansion plans to 8 new routes, details surrounding our incoming fleet, new, best in class products and services, our new overall direction and where we hope the future will take us all. It is time for change and we are embracing change today.”

This summer, Gulf Air will also expand its network with flights to Bangalore, Alexandria, Casablanca, Baku, Abha and Tabuk in Saudi Arabia, Calicut, and Sharm El Shaikh.

Gulf Air’s Boeing 787-9 Dreamliners will offer 282 seats in a two-class configuration, with 26 Falcon Gold Class seats and 256 Economy Class seats.

Marty Bentrott, vice president, Boeing Commercial Airplanes Sales for Middle East, Turkey, Russia, Central Asia and Africa, said: “The number of airlines operating this super-efficient airplane is increasing across the world and we look forward to the Dreamliner joining Gulf Air’s fleet.”

Source:http://www.arabianbusiness.com/transport/393801-bahrains-gulf-air-says-first-dreamliner-to-launch-on-london-route

April 29, 2018

Tourism to contribute ‘double digits’ to Bahrain’s GDP in coming years

Manufacturer and Exporter of Scrap Grinder Machine

Bahrain hopes that the tourism and hospitality sector will contribute “double digits” to its GDP over the next several years, according to Ali Ghunam Murtaza, the director of real estate, tourism and leisure business development at the Bahrain Economic Development Board (EDB).

According to official figures, tourism contributed 6.3 percent to Bahrain’s GDP in 2017.

Speaking to Arabian Business at the Arabian Travel Market, Murtaza said that the figure is likely to grow as ongoing tourism projects are completed.

“We foresee the contribution to go up for many reasons. Part of that is that we are actively working towards it. We want the contribution of tourism to increase along with other sectors in Bahrain,” he said. ” It’s an active strategy.”

“Through direct and indirect investment to tourism, I think it will be a big part of GDP,” he added. “Our aim is to get into double digits soon.”

In the longer term, Murtaza said he hopes that tourism’s contribution to GDP will reach as high as 20 percent, as much as other sectors such as banking.

“We aim to get it there in the long run,” he noted, adding that the county also hopes to attract 15 million tourists a year by 2020, up from approximately 12.7 million in 2017.

Additionally, Murtaza noted that investment in Bahrain’s tourism sector has reached $13 billion, a figure which encompasses 14 separate projects in the country’s tourism and leisure sector.

The tourism projects, in turn, form part of a larger infrastructure development campaign across a number of sectors, which is collectively valued at more than $32 billion.

“We have fantastic five-star resorts coming in, such as the Address, the Vida, the Jumeirah [Royal Saray], and so forth,” he said. “In addition to that, we’ve also started adding to our retail offerings, such as The Avenues, and we have a couple of others.”

To encourage more visitors to come to Bahrain, Murtaza noted that Gulf Air has invested nearly $7.2 billion to expand its fleet and “modernise the Gulf Air brand”, as well as $1.1 billion investments into expanding and improving Bahrain’s national airport, a project which Murtaza said is approximately 60 percent complete.

Looking to the future, Murtaza said that partnering with foreign investors is a key pillar of Bahrain’s strategy to increase visitor numbers and revenue from tourism.

“We work with them [companies based outside of Bahrain] very closely to identify opportunities where they can bring synergy to the table, where they bring quality investment, quality operations,” he said. “There are a lot of firms around the world with a lot of specific experiences.”

“We work to identify the top ones, and we work to get them to like Bahrain, get them to understand the opportunities, and then we enable the investment,” he added. “We are partners for the long-run.”

Source:http://www.arabianbusiness.com/travel-hospitality/394790-tourism-to-contribute-double-digits-to-bahrains-gdp-in-coming-years

April 29, 2018

Kuwait’s Jazeera Airways sees Q1 loss despite 42% revenue jump

Kuwait-based Jazeera Airways on Wednesday announced double digit growth in both revenue and flown passengers in the first quarter of 2018.

The airline recorded an operating revenue of KD14.3 million, up 42.7 percent from Q1 2017, and a net loss of KD0.3 million, an improvement of KD0.636 million from Q1 2017.

Passenger numbers in the first three months of 2018 totalled 403,863, up 43.1 percent from the year-earlier period.

Load factor on flights reached 75.8 percent, up 5.4 percent from Q1 2017, the airline added in a statement.

Jazeera Airways chairman Marwan Boodai said: “Despite the first quarter being a low travel season historically, we saw a 43.1 percent increase in flown passengers this year, a 42.7 percent growth in topline earnings, and significant improvement in our bottom line earnings.

“Looking head, the rest of the year is looking incredibly exciting for our business with our very own dedicated terminal coming on-line in mid-May, in addition to new routes, and new additions to the fleet.”

Source:http://www.arabianbusiness.com/transport/395095-kuwaits-jazeera-airways-sees-q1-loss-despite-42-revenue-jump

April 29, 2018

Uber to invest indefinitely in Middle East market, says Harford

Uber’s chief operating officer Barney Harford said the company will increase its investment in key growth markets like the Middle East, which might include a bid for Dubai-based Careem, its rival in the region.

The US-based ride-hailing firm recently sold its South-East Asia business to Singapore-based rival Grab and now has “resources available that are allowing us to double down in critical competitive markets in particular India and the Middle East North Africa”, Harford told CNBC television.

Responding to CNBC question about the possibility of acquiring Careem – its rival in the Middle East – Harford said that the company has ruled out “transactions for minority stakes.”

“We’ve been very clear about is that going forward we have no interest in doing transactions for minority stakes,” he told the broadcaster.

“It would be crazy for us as a hypergrowth company to not engage in conversations about potential partnerships

“But we’ve been very clear, the markets that we remain in today are core markets for us.

“We’re doubling down on our investment and we’re very committed to these markets,” he added.

Harford said that the situation in the Middle East with Careem “is very different” to Southeast Asia, where Uber got a 27.5 percent stake in Grab – valued at roughly $6 billion – in return for its operations there.

“There were three players in that market. We had a smaller position,” he said. “We…operate in a position of very clear strength here in the Middle East and North Africa market.”

Uber made a loss of $4.5bn last year, despite a 61 percent increase in sales. He said the profitable markets it operates in will allow Uber to invest indefinitely in markets like the Middle East and North Africa.

“We actually are in a fortunate position that a good number of the markets that we operate the ride sharing business today are already profitable. We are able to use the profits from those markets to allow us to invest on an indefinite basis in key growth markets such as the Middle East and North Africa where we’ve announced plans to double down investments,” Harford said.

Source:http://www.arabianbusiness.com/395174-uber-to-invest-indefinitely-in-middle-east-market-says-harford