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Emaar EC restructures $266bn loan with PIF

Emaar EC restructures $266bn loan with PIF
Emaar, The Economic City is the master developer of King Abdullah Economic City on the Red Sea coast. File
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Updated 1 min 29 sec ago
Nirmal Narayanan 
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Emaar EC restructures $266bn loan with PIF

Emaar EC restructures $266bn loan with PIF
Updated 1 min 29 sec ago
Nirmal Narayanan 
Follow

RIYADH: Saudi developer Emaar, The Economic City, has signed a binding restructuring agreement with the Public Investment Fund for a loan deal valued at SR1 billion ($266 billion). 

Under the terms of the agreement, the availability period of the new loan is 18 months from the signing date of the amendment and restatement deal, according to a Tadawul statement. 

Emaar, the master developer of King Abdullah Economic City on the Red Sea coast, said that the restructuring plan is part of its capital optimization strategy, designed to stabilize the company’s financial and operational stability and optimize its capital to support its growth plans.

“The form of this agreement was an amendment and restatement agreement to the shareholder loan already in place with the PIF in relation to the previous fully utilized SR1,000 million shareholder loan entered into on 19 February 2023,” said Emaar in the statement. 

The company further said that the loan repayment should be made in a lump sum on the day, which marks 24 months from the date of the agreement, including the principal amount and the commission. 

The loan is covered by real estate mortgages valued at no less than SR1.5 billion and promissory notes for the principal and commission amounts.

The statement added that the deal includes an option for the wealth fund to convert the outstanding amounts under the loan to shares within the company’s capital, subject to approvals of the relevant regulatory authorities and the firm’s shareholders. 

PIF is considered a related party in the deal, as it is one of the major shareholders in the company.

In October, Emaar revealed that its net loss widened to SR1.15 billion in the first nine months of 2024, compared to SR49 million in 2023. 

In a Tadawul statement, the company attributed the loss to a 74 percent year-on-year slump in revenue, which reached SR241.16 million in the first nine months of 2024 compared to SR926.35 million in the same period in 2023.

In the third quarter of 2024, the company swung to a net loss of SR459 million, compared to a net profit of SR27 million in the year-ago period. 

Topics: Emaar Emaar The Economic City King Abdullah Economic City (KAEC)

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Saudi Arabia’s weekly POS transactions climb 4% to $3.6bn 

Saudi Arabia’s weekly POS transactions climb 4% to $3.6bn 
Updated 19 March 2025
MIGUEL HADCHITY 
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Saudi Arabia’s weekly POS transactions climb 4% to $3.6bn 

Saudi Arabia’s weekly POS transactions climb 4% to $3.6bn 
Updated 19 March 2025
MIGUEL HADCHITY 

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 4 percent to SR13.6 billion ($3.6 billion) in the week ending March 15, driven by increased spending across multiple sectors. 

The latest data from the Kingdom’s central bank, also known as SAMA, showed jewelry led the growth, registering the largest jump in transaction value — up 31.1 percent to SR419.2 million. The sector also saw a 29.5 percent rise in the number of transactions, reaching 300,000. 

The clothing and footwear sector followed, recording a 22.8 percent increase in transaction value to SR1.5 billion, securing the third-largest POS share. Hotel spending ranked next, rising 19.1 percent to SR352.6 million, with transactions up 20.1 percent to 649,000. 

Transportation spending edged up 12.4 percent to SR889.2 million, while restaurants and cafes saw an 11.5 percent increase, totaling SR1.4 billion. 

The smallest spending gains were in gas stations, rising by 3 percent to SR865.8 million, and health services, which increased by 3.1 percent to SR837.2 million. 

Education saw the steepest decline, dropping 29.9 percent to SR140.6 million, following a 144.6 percent surge the previous week as students returned from winter break. 

Spending on electronics dipped 5.4 percent to SR150.5 million, while recreation and culture dropped 1.7 percent to SR261.9 million. 

Food and beverages — the sector with the biggest share of total POS value — recorded a 6.5 percent decline to SR1.9 billion. Miscellaneous goods and services claimed the second-largest share, with a slight 0.05 percent dip to SR1.66 billion. 

The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 37.4 percent of the week’s total spending, amounting to SR5.1 billion. 

Geographically, Riyadh dominated POS transactions, representing around 34.7 percent of the total, with expenses in the capital reaching SR4.7 billion — a 3.2 percent increase from the previous week. 

Jeddah followed with a 7 percent rise to SR1.9 billion, while Makkah ranked third, up 8.2 percent to SR818.4 million. Abha saw the smallest increase, inching up 2.2 percent to SR142.8 million. 

In transaction volume, Makkah recorded 9.6 million deals, up 6.5 percent, while Buraidah reached 4.2 million transactions, rising 5.2 percent.

Topics: point-of-sale PoS jewelry

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Saudi Arabia raises $704m through sukuk issuances in March 

Saudi Arabia raises $704m through sukuk issuances in March 
Updated 52 min 47 sec ago
Nirmal Narayanan 
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Saudi Arabia raises $704m through sukuk issuances in March 

Saudi Arabia raises $704m through sukuk issuances in March 
  • Issuance divided into four tranches, with first one valued at SR364 million and set to mature in 2027
  • Latest riyal-denominated offering follows an SR3.07 billion issuance in February and SR3.72 billion in January
Updated 52 min 47 sec ago
Nirmal Narayanan 

RIYADH: Saudi Arabia has raised SR2.64 billion ($704 million) through sukuk issuances in March as the Kingdom continues to explore opportunities in debt markets to accelerate economic diversification efforts. 

The latest riyal-denominated offering follows an SR3.07 billion issuance in February and SR3.72 billion in January. 

Saudi Arabia also raised SR11.59 billion in December and SR3.41 billion in November. 

The Kingdom has been playing a pivotal role in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan.

According to a statement by Saudi Arabia’s National Debt Management Center, the issuance for March was divided into four tranches, with the first one valued at SR364 million and set to mature in 2027. 

The second tranche has a value of SR316 million, due in 2029, while the third, at SR1.46 billion, is set to mature in 2032.

The fourth tranche worth SR500 million will expire in 2039.

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership of an issuer’s assets while adhering to Islamic finance principles. 

Saudi Arabia’s debt market has seen significant growth in recent years, attracting investors’ interest in debt instruments amid rising interest rates.

In March, a report released by Kuwait Financial Center, also known as Markaz, said that Saudi-based primary issuances of bonds and sukuk led the Gulf Cooperation Council region in 2024, raising $79.5 billion through 79 issuances.

Markaz added that the Kingdom contributed to 53.7 percent of the overall primary debt issuances in the GCC region in 2024.

In February, Saudi Arabia also raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program.

Affirming the growth of the market of such Islamic bonds, S&P Global, in January, said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets, including Saudi Arabia and Indonesia. 

In December, another report released by Kamco Invest projected that the Kingdom is expected to witness the greatest share of bond and sukuk maturities in the GCC, reaching $168 billion from 2025 to 2029. 

According to Kamco Invest, Saudi Arabia’s maturities will be led by government issuances that are projected to hit $110.2 billion during the period.

Topics: Sukuk National Debt Management Center (NDMC)

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Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire

Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire
Updated 19 March 2025
Reuters
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Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire

Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire
  • Putin agrees to halt on energy facility strikes
  • Ongoing Middle East turmoil limits oil price declines
  • API shows weekly US crude stocks rise, fuel inventories fall
Updated 19 March 2025
Reuters

SINGAPORE: Oil prices fell on Wednesday after Russia agreed to US President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more Russian oil entering global markets.

Brent crude futures fell 19 cents, or 0.3 percent, to $70.37 a barrel by 7:20 a.m. Saudi time. US West Texas Intermediate crude was down 20 cents, or 0.3 percent, to $66.70.

Russian President Vladimir Putin agreed on Tuesday to stop attacking Ukrainian energy facilities but stopped short of endorsing a full 30-day ceasefire that Trump hoped for.

“The agreement marks a positive step toward an eventual resolution, with the halt of attacks on Ukrainian energy facilities reducing further oil supply disruption risks and keeping oil prices under some pressure,” said Yeap Jun Rong, market strategist at IG.

Russia is one of the world’s top oil suppliers, but its output has waned since the beginning of the war, which resulted in sanctions on Russian energy.

A potential ceasefire could lead to an easing of sanctions, which might raise oil supply and ease prices, analysts said.

US tariffs on Canada, Mexico and China have raised recession fears, which also weighed on oil prices as that would have a dampening effect on demand for crude.

Oil markets remain focused on price downside despite rising Middle East tensions, Goldman Sachs analysts said in a note on Wednesday.

“Tariff escalation and high spare capacity skew the medium-term risks to our forecast to the downside,” the analysts said.

Trump vowed to continue his country’s assault on Yemen’s Houthis and said he would hold Iran responsible for any attacks carried out by the group that has disrupted shipping in the Red Sea.

Israeli air strikes in Gaza, meanwhile, killed at least 200 people, Palestinian health authorities said, which ended a week-long ceasefire and elevated risks of oil supply being threatened from the broader region.

US crude oil stocks data, meanwhile, painted a mixed picture, with crude stocks rising while fuel inventories fell.

Crude stocks were up 4.59 million barrels in the week ended March 14, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.71 million barrels and distillate stocks were down 2.15 million barrels, they said.

Official government data is due on Wednesday.

Topics: oil prices oil updates

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PIF-backed AviLease delivers three A320neo aircraft to SDH Wings

PIF-backed AviLease delivers three A320neo aircraft to SDH Wings
Updated 18 March 2025
Nirmal Narayanan
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PIF-backed AviLease delivers three A320neo aircraft to SDH Wings

PIF-backed AviLease delivers three A320neo aircraft to SDH Wings
Updated 18 March 2025
Nirmal Narayanan

RIYADH: AviLease, an aircraft leasing firm owned by the Public Investment Fund, has delivered three Airbus A320neo aircraft to SDH Wings.

SDH Wings is a joint venture between the Saudi firm and the Chinese sovereign fund, where the Kingdom holds a 10 percent stake.

According to a press release, the three new aircraft will be leased long-term to a Saudi-based airline. With this latest addition, SDH Wings now owns a total of 25 aircraft.

Launched in 2022 by PIF, AviLease was created to harness the potential of promising sectors within Saudi Arabia, aiming to drive economic diversification and contribute to the growth of the non-oil GDP.

“This delivery represents a significant milestone in our relationship with SDH Wings. We are proud to support their expansion with these state-of-the-art aircraft,” said AviLease CEO Edward O’Byrne.

This delivery also signals a new phase in the collaboration between AviLease and SDH Wings, following a broader memorandum of understanding to acquire 20 additional, predominantly next-generation aircraft.

Under this agreement, AviLease will further assist SDH Wings in expanding its fleet while strengthening its partnership with Sichuan Development International Holdings, the majority shareholder of SDH Wings.

“By leveraging AviLease’s expertise in leasing and financing modern, fuel-efficient aircraft, SDH Wings is well-positioned to capitalize on emerging opportunities in the aviation financing market,” said the press release.

In October 2024, AviLease acquired nine aircraft from global lessor Avolon, building on the successful purchase of 13 aircraft from Avolon in 2023.

Topics: aviation PIF AviLease

Alphabet to buy cybersecurity startup Wiz for $32bn

Alphabet to buy cybersecurity startup Wiz for $32bn
Updated 18 March 2025
AP
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Alphabet to buy cybersecurity startup Wiz for $32bn

Alphabet to buy cybersecurity startup Wiz for $32bn
Updated 18 March 2025
AP

NEW YORK: Google owner Alphabet will buy cybersecurity firm Wiz for $32 billion — in a deal set to boost the tech giant’s in-house cloud computing amid burgeoning artificial intelligence growth.

If closed, the-cash transaction, announced on Tuesday, will become Google’s most expensive acquisition in the company’s 25-year history. The purchase gives Google new momentum in its efforts to compete in the cloud-computing business by offering more security for its services.

“Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratized, so more organizations can adopt and use cloud and AI securely,” Wiz CEO Assaf Rappaport said in a blog post.

The company says Wiz will join Google Cloud — and that this deal represents a company investment “to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds.”

Google CEO Sundar Pichai said in a statement, Google Cloud and Wiz “will turbocharge improved cloud security and the ability to use multiple clouds.”

Assaf Rappaport, co-founder and CEO, added that the deal will “bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”

Wiz, based in New York, was founded in 2020, makes security tools designed to shield the information stored in remote data centers from intruders.

Google has had its eyes on Wiz for some time. The purchase price announced Tuesday surpasses a reported $23 billion buyout proposal that Wiz rejected last July.

The proposed buyout will get a close look from antitrust regulators. While many expect the Trump administration to be more friendly to business deals, it has also shown skepticism of big tech.

Also, the new Federal Trade Commission Chair Andrew Ferguson has vowed to maintain a tough review process for mergers and acquisitions.

Topics: Alphabet acquisition

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