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RIYADH: Saudi companies led the pack in the annual list of Forbes Top 100 Arab Family Businesses with 37 entries, followed by the UAE and Kuwait with 25 and eight entries, respectively.
According to the Forbes press release, these three countries constituted 75 percent of the top 20 in the list. In addition, all family businesses in the top 10 were diversified companies with operations in multiple sectors.
The Olayan family, which runs one of Saudi Arabia’s biggest conglomerates, was ranked the No. 1 Arab family business for the second year in a row.
Founded in 1947, the Olayan Group comprises more than 50 companies and affiliated businesses. Egypt’s Mansour Group and UAE’s Al-Futtaim Group were the other two groups that clinched the podium finish.
Olayan Financial Co.’s investments in the public sector make the largest portion of the group’s portfolio, as it owned 20.3 percent of the Saudi British Bank in July 2022.
• The release stated that of the top 100 family-run companies in 2022, eight were owned by Arab billionaires.
• Algeria-based Cevital Group’s founder Issad Rebrab had a net worth of $5.1 billion as of August 2022, making him the second richest Arab in the world.
Mansour Group has also been in the spotlight for its humungous reach spanning 100 countries with over 60,000 employees and total revenues exceeding $7.5 billion.
Through its investment arm, ManCapital, Mansour Group has shares in global companies like Spotify, Uber, Airbnb, Meta, Twitter and others.
Other Saudi companies also made it to the top 10, with Al Muhaidib Group ranking fourth, Abdul Laitf Jameel in seventh and Rashed Abdul Rahman Al Rashed and Sons Group ranking 10th.
From a geographical standpoint, Qatar-based companies had seven entries, Egypt had six, Oman six, Bahrain had four, Jordan had two, Morocco had two and Algeria, Lebanon, and Yemen all had one entry each.
At the ninth position, Al Faisal Holding is the only newcomer to this year’s top 10 businesses, up from 11th place in 2021, the press note said. In May 2022, it launched a new subsidiary offering production services, Metaserra, a joint venture with Turkey’s Doludizgin.
Diversified business corporations dominated the ranking with 89 entries. For instance, Al Futtaim Group has built a legacy out of its operations in the automotive, finance, real estate, retail and healthcare sectors.
The group operates in over 20 countries with 35,000 employees and has significant shareholdings in Emirates Investment Bank, Commercial Bank of Dubai and the Dubai Insurance Co.
Abdullah Al Futtaim and his family also had a net worth of $2.5 billion in August 2022.
The release further stated that of the top 100 family-run companies in 2022, eight were owned by Arab billionaires. For instance, Algeria-based Cevital Group’s founder Issad Rebrab had a net worth of $5.1 billion as of August 2022, making him the second richest Arab in the world.
To construct this list, Forbes Middle East only considered private businesses or holding companies jointly owned or operated by Arab families. The conglomerates were ranked on their holding size and performance, business activity, age, legacy, and how diversified the business is in terms of geography and sector.
RIYADH: Saudi Arabia-based Islamic Development Bank has approved $1.12 billion for financing development projects for various sectors in nine member countries, according to a statement.
It has also approved a grant worth $1.79 million for a number of other projects including market access readiness in Yemen and special assistance grants to Muslim communities in three non-member countries.
The bank’s board of executive directors approved this funding during its 347th session held on Sept. 10 in Jeddah.
In the session, headed by the bank’s president and chairman Muhammad Al-Jasser, the bank also discussed the existing financing gap in the energy infrastructure of some of the member countries.
Accordingly, the lender approved two energy sector public-private partnership projects for Uzbekistan and Uganda.
This happens as the countries’ governments use the PPP financing model to attract private sector investment expertise to deliver improved public services and accelerate economic growth.
The 100 million euro ($101 million) Surkhandarya Combined Cycle Power Plant Project in Uzbekistan is expected to meet the growing demand for the country’s energy consumption.
It will also enable the country to phase out its aging and inefficient fleet of gas-fired thermal power plants, the lender said.
With regards to Uganda, the $100 million financing, which is part of the Islamic tranche, will allow the country to capitalize on its oil reserves and export oil to international markets through a 1443-kilometer cross-border buried-heated crude oil pipeline.
In the sustainable transport sector, IsDB approved $601.7 million as sovereign financing for transport projects in Guyana, Uzbekistan, and Uganda.
These projects are expected to enhance transport infrastructure, facilitate market access for farmers and traders, and boost tourism.
In August, the bank’s President Mohammed Al-Jasser met with Uzbekistan President Shavkat Mirziyoyev to discuss strengthening cooperation between both parties, Saudi Press Agency reported.
A letter of intent was signed during the meeting to provide a framework for facilitating cooperation, promoting rapid processing and approval of projects and operations that are part of the work program of the IsDB Group for Uzbekistan in 2022.
During their meeting, the two sides also emphasized the need to facilitate the joining of more co-financiers to participate in financing large projects.
DUBAI: The Dubai Electricity and Water Authority and the World Green Economy Organization have announced the theme of the 8th World Green Economy Summit to be held on Sept. 28-29 in Dubai.
The theme of the event is “Climate action leadership through collaboration: The roadmap to net-zero.” It reflect the UAE’s commitment to accelerating climate action, strengthening partnerships, and achieving international climate goals, according to Emirates News Agency WAM.
The summit will be held at the Dubai World Trade Center and focus on ways to accelerate climate initiatives and ensure a smooth transition to a green economy. It will discuss cooperation and exchange of knowledge and experience among stakeholders and international and regional organizations, the statement added.
The main topics of this year’s event will be energy, finance, food security and youth.
Uzbekistan’s power sector
The Mubadala Investment Co., and the Abu Dhabi National Energy Co., TAQA, have signed agreements to invest in the privatization of two gas-fired power plants at Talimarjan in Uzbekistan.
The two companies will each acquire 40 percent stakes in two gas-fired power plants with a combined capacity of 1.6GW, as well as the operation and maintenance of these plants. Talimarjan Issiqlik Elektr Stansiyasi will retain the remaining 20 percent stakes.
The transaction remains subject to certain conditions, including obtaining any applicable regulatory approvals. The deal will take final shape in the second half of 2023.
ADCB issues debut green bond
Abu Dhabi Commercial Bank, the UAE’s third-largest lender, has launched a 1.8 billion dirham ($500 million) green bond that will help it finance green projects.
According to a statement released by ADCB, the five-year bond carries a 4.5 percent coupon rate.
Local, regional, and international investors ordered $1.9 billion in the transaction, which was oversubscribed 3.8 times, the statement said,
Following a global roadshow, ADCB will issue the bond on Sept. 14 to reflect its approach to managing ESG risks and opportunities, the statement added.
Alaa Eraiqat, ADCB’s group chief executive, said in a statement: “The successful pricing of the first ADCB green bond is a significant milestone in the bank’s implementation of international best practice in ESG.”
In order to facilitate further capital mobilization for green projects, the bank has adopted a green bond framework.
“We look forward to collaborating with clients and other stakeholders to advance in our shared ambition for a net-zero future,” Eraiqat added.
RIYADH: Saudi Arabia’s Raydan Food Co. has shut down one of its branches in Jeddah, which used to contribute 5.5 percent of the company’s total sales.
This was based on decisions by competent authorities to remove some neighborhoods that fall within the food chain operator’s scope, according to a bourse filing.
Raydan said it will take the necessary measures to address the financial impact of the closure on the 2022 fiscal period.
During the first half of the year, the company saw its losses widen by 62 percent to SR22 million ($6 million), while sales surged 22 percent to SR80 million.
The rise in losses was mainly attributed to higher general and admin expenses and marketing costs.
RIYADH: Saudi Arabia’s main index gained ground in the first session of the week following a rise in oil prices on Friday.
TASI gained 1.01 percent to reach 11,953, while the parallel market Nomu started 0.26 percent higher at 20,490, as of 10:07 a.m. Saudi time.
Saudi oil giant Aramco climbed 1.23 percent, while Rabigh Refining and Petrochemical Co. increased 0.76 percent.
Al Rajhi, the Kingdom’s largest valued bank, edged up 1.05 percent, while Alinma Bank advanced 1.64 percent.
The Saudi National Bank, the country’s biggest lender, gained 1.21 percent, while Saudi Arabian Mining Co., known as Ma’aden, increased 2.02 percent.
Saudi Marketing Co. gained 5.06 percent to lead the gainers early in trading, while Riyad REIT Fund edged down 1.4 percent to lead the fallers.
Abdulmohsen Alhokair Group for Tourism and Development edged up 4.78 percent, as it entered negotiations with its unit to acquire hotels currently leased by the group.
Among cement firms, City Cement Co., Northern Region Cement Co., and Al Jouf Cement Co. gained 4.44 percent, 3.83 percent, and 3.27 percent, respectively.
In energy trading, Brent crude futures closed Friday higher at $92.84 a barrel, while US West Texas Intermediate traded at $86.79 a barrel.
RIYADH: Saudi stocks slid last week to end lower on Thursday as oil prices fell to seven-month lows before rebounding on Friday.
TASI exited the week’s final trading session 0.3 percent lower at 11,834, while the parallel market Nomu edged down 0.4 percent to 20,438.
In line with the Kingdom’s bourse, Dubai, Kuwait, and Oman lost between 0.2 and 0.7 percent.
Abu Dhabi and Bahrain stock exchanges advanced 0.7 percent and 0.2 percent, respectively, while the Qatari index closed almost flat.
Apart from the Gulf, the Egyptian stock market inched 0.3 percent higher.
Oil prices rose about 4 percent on Friday after dropping to a seven-month low earlier in the week, supported by threatened cuts to supply.
Brent crude surged to $92.84 a barrel. US West Texas Intermediate crude settled 3.9 percent higher at $86.79 a barrel.
Stock news
Abdulmohsen Alhokair Group for Tourism and Development entered negotiations to acquire hotels currently leased by its parent company Abdulmohsen Alhokair Holding Co.
Raydan Food Co. closed one of its restaurants in Jeddah following a decision by Municipal authorities to clear some neighborhoods
National Fertilizer Co. posted a 22 percent profit drop to SR9.5 million ($2.5 million) for the first half of 2022
Arabian Plastic Industrial Co. set its initial public offering price range at SR24-27 per share as it begins the book-building period
Calendar
September 11, 2022
Start of Arabian Plastic Industrial Co.’s IPO book-building
September 13, 2022
End of Arabian Plastic Industrial Co.’s IPO book-building
September 22, 2022
Tadawul will be closed for the Saudi National Day
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