Saudi Arabia issues first aircraft maintenance licenses

RIYADH: A €160 million ($167 million) joint venture between the Public Investment Fund’s Alat and TK Elevator has been announced to advance mobility development in Saudi Arabia. 

The partnership will introduce products, end-to-end solutions, and manufacturing to the Kingdom, supported by a local development center. This marks the first elevator and escalator production operation in Saudi Arabia by a global firm, according to a statement.

This falls in line with PIF’s strategy to diversify the Saudi economy and develop key sectors, thereby contributing to the realization of Vision 2030’s objectives for sustainable urban development and economic growth. 

It also aligns well with the fact that the Kingdom’s elevator and escalator market is anticipated to reach $1.84 billion by 2030, according to Markets and Data.

“Alat’s partnership with TK Elevator is a cornerstone of our commitment to create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics,” CEO of Alat Amit Midha said. 

Under the new deal, Alat will also become a direct TK Elevator shareholder and member of the current investment consortium with a 15 percent stake. This move further cements the firm’s operational strength and its attractive value creation prospects.

CEO of TK Elevator Uday Yadav said the company is “privileged” to form a joint venture with Alat to support the Kingdom’s vision and power his firm’s future organic growth.

Yadav added: “This partnership marks another important milestone in our transformation journey and represents a new era that underscores TK Elevator’s active participation in the upcoming development super cycle in the Kingdom of Saudi Arabia while reinforcing our capabilities in building smart cities of the future across the globe.” 

The CEO went on to say that the firm is pleased to welcome Alat as a direct shareholder and long-term investor in the company and that they are looking forward to benefiting from their engagement. 

The statement further revealed that the transaction is expected to close by the end of the third quarter of 2025, subject to customary statutory and regulatory approvals.

The new venture also reflects TK Elevator’s commitment to enhancing urban living through innovative mobility solutions and services. It will also help TK Elevator benefit from one of the fastest growing and most innovative new installation markets worldwide. 

The newly formed entity will also act as TKE’s sales and service hub in the Kingdom, leveraging the Middle East and North Africa network to drive regional business growth.

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 68.69 points, or 0.55 percent, to close at 12,319.46. 

The total trading turnover of the benchmark index was SR7.02 billion ($1.87 billion), as 51 of the listed stocks advanced, while 189 retreated.  

The MSCI Tadawul Index decreased by 6.54 points, or 0.42 percent, to close at 1,544.95. 

The Kingdom’s parallel market Nomu dipped, losing 77.01 points, or 0.24 percent, to close at 31,397.68. This came as 36 of the listed stocks advanced, while 43 retreated. 

Lumi Rental Co. was the best-performing firm, with its share price surging 4.39 percent to SR76.10. 

This came as it announced its annual financial results for 2024, with the company’s net profit rising to SR180.3 million from SR160.6 million the previous year, driven by elevated interest rates, increased borrowings, and reduced operating expenses. 

Other top performers included Arab National Bank, which saw its share price rise by 2.95 percent to SR22.36, and Ades Holding Co., which saw a 2.77 percent increase to SR17.80. 

CHUBB Arabia Cooperative Insurance Co. saw the biggest decline of the day, with its share price slipping 7.60 percent to SR48.05. 

National Agricultural Development Co. saw a fall of 5.57 percent to SR25.45, while Arabian Pipes Co. dropped 5.39 percent to SR11.58.

Nadec announced its consolidated financial results for 2024, reporting a net profit of SR774.6 million, a sharp 156.4 percent increase from the previous year. 

In a statement on Tadawul, the company attributed the surge to several factors, including gains from the Arabian Mills initial public offering, where Nadec earned SR103.1 million from selling 30 percent of its shares and recognized a fair value gain of SR253.3 million on its remaining holdings. 

Nadec also credited the rise in net profit to higher treasury income and revenue, along with cost efficiencies achieved through reduced selling and marketing expenses and lower financing costs due to decreased borrowings. 

However, these gains were partially offset by a 10.18 percent rise in general and administrative expenses, driven by increased employee benefits for new projects. Additionally, the absence of a SR19.46 million one-time grant received in the previous year and a higher Zakat expense of SR52.50 million weighed on profitability. 

Almasane Alkobra Mining Co. announced its annual financial results for 2024, reporting a net profit of SR177.8 million, up from SR54.5 million the previous year. 

The surge was driven by a SR165 million increase in gross profit, fueled by a SR293 million rise in revenue. 

In today’s trading session, AMAK’s shares gained 2.11 percent on the main market, closing at SR63. 

Ades Holding Co. reported a net profit of SR816.1 million for 2024, marking an 80.5 percent increase from the previous year. 

In a statement on Tadawul, Ades attributed the surge to strong revenue growth, robust earnings before interest, taxes, depreciation, and amortization margins, and lower interest expenses as a percentage of revenue. 

Meanwhile, Lumi Rental Co., the top performer in today’s trading session, announced its annual financial results for 2024. The company’s net profit rose to SR180.3 million from SR160.6 million the previous year, driven by elevated interest rates, increased borrowings, and reduced operating expenses.