https://arab.news/4zz5b

RIYADH: Naqi Water Co. has set its initial public offering price range at SR65-69 ($17-18) as it opened for investors on Sunday.

The Saudi-based bottled mineral water producer earlier said it will float a 30-percent stake, or 6 million shares, on Tadawul’s main TASI market.

Participating entities will be allocated all offered shares and the book-building period will run for five days until July 21, according to a bourse filing.

Upon completion of IPO bidding, retail investors will be allowed subscription of up to 600,000 shares.  

RIYADH: The Saudi Exchange announced the launch of its first Shariah-compliant index, the TASI Islamic Index.

The index will track the performance of Shariah-compliant companies listed on the Saudi Exchange under the supervision of an independent Shariah Advisory Committee, the exchange said.

Investors and market participants can use the Index to guide their decisions regarding Shariah-compliant investments, the statement said.

Asset managers can benchmark the performance of their Shariah-compliant investment portfolios. it added.

RIYADH: Zain KSA, formally known as Mobile Telecommunication Co. Saudi Arabia, has managed to more than double its profits to SR214 million ($57 million) in the first half of 2022.

The Saudi telecom operator’s profit surged 157 percent from SR83 million in the same period a year earlier on the back of higher revenue, according to a filing to the Saudi Exchange.

Its revenue rose from SR3.8 billion to SR4.4 billion driven by the growth in B2B, 5G and other revenue streams in addition to a post-pandemic return of international visitors. 

RIYADH: Saudi-based Almarai Co. recorded an 8.4 percent increase in profit for the first half of 2022, primarily due to a recovery from pandemic challenges.

The dairy giant’s net profit increased to SR940 million ($251 million), from SR867 million the same period last year, according to a bourse statement.

The result was driven by a 19 percent revenue growth following the lifting of COVID-19 movement restrictions, new education institutions opening, and an increase in visitor numbers.

JEDDAH: As global supply chain companies are finding ways to tackle the worst maritime congestions, the world’s most efficient port is emerging as a safe harbor to unclog the worldwide logistics pressures.

King Abdullah Port recently reached a milestone of handling 15 million twenty-foot-equivalent in a record time of under nine years since its container terminal operations began. The milestone follows a 31 percent rise in container throughput in 2021.

“We attribute these to our state-of-the-art infrastructure and facilities built to global standards, as well as our highly efficient public-private partnership business model,” said Jay New, CEO of KAP, in an exclusive interview with Arab News.

• Established in 2010, KAP is the first privately owned and operated port in the Middle East and is the flagship project of Ports Development Co.

• PDC is a joint venture between Emaar Economic City and Huta Marine Works Ltd — two of the largest infrastructure developers in the Middle East.

• KAP topped the most efficient container ports among 443 ports in the world on the 2021’s Container Port Performance Index, according to a report.

Established in 2010, KAP is the first privately owned and operated port in the Middle East and is the flagship project of Ports Development Co.

PDC is a joint venture between Emaar Economic City and Huta Marine Works Ltd. — two of the largest infrastructure developers in the Middle East.

“PDC’s decision to introduce this concept did not come easy as it was challenging to convince stakeholders, many of whom were unfamiliar with this business model. The process of simultaneously developing and operating was equally demanding,” said New.

KAP topped the most efficient container ports among 443 ports in the world on the 2021’s Container Port Performance Index, according to a report published by The World Bank and S&P Global Market Intelligence.

“King Abdullah Port is only 15 minutes from the anchorage, allowing easy and fast access to the berths. This, together with our exceptional crane density, helped us remain one of the fastest-growing and most efficient ports with remarkable growth in volumes,” said the CEO.

The port achieved the feat despite the COVID-19 pandemic taking its toll on maritime traffic in 2021, including global supply chain disruptions, high freight rates and inconsistent trade patterns.

“We at King Abdullah Port take great pride in the work we have done to revitalize the logistics sector and maritime trade throughout the global supply chain disruptions of the pandemic and post-pandemic periods,” said New.

The CEO attributed the success of these efforts to the enhanced operational readiness of the port’s stations and terminals, which were equipped during the pandemic to receive a wide variety of food, medication and medical equipment.

We at King Abdullah Port take great pride in the work we have done to revitalize the logistics sector and maritime trade throughout the global supply chain disruptions of the pandemic and post-pandemic periods.

Jay New, CEO of King Abdullah Port

In 2020, the port achieved an import growth rate of 16 percent, where pharmaceutical and medical supply imports increased by a whopping 72 percent.

“During this period, we devised and implemented innovative ways to keep working around the clock without disruption,” he added.

In June 2021, KAP partnered with Maersk, a global logistics and supply chain services provider, to launch the Maersk Integrated Logistics Hub inside the port.

The move aims to cover a critical logistical requirement of exporters who already have access to Maersk’s solutions, such as landside cargo movement, customs clearance, and ocean logistics, thus ensuring a truly integrated logistics offering.

The hub serves as a focal supply chain solution for the Kingdom’s petrochemical exporters, facilitating the storage of export cargo and enabling pallet handling, stuffing, and shuttling.

“The establishment of the hub is part of a major initiative aimed at increasing the performance efficiencies and competitiveness of Saudi Arabia’s logistics sector,” said the CEO.

New believes that automation and digitization are increasingly critical for a thriving port industry.

“We believe the new investments must focus on harnessing new technologies’ potential to improve service offerings and efficiency. We have continued to develop our procedural and operational efficiencies through digital transformation,” New added.

The port’s personal communications service developed by IBM boasts a unified single window gateway, document conversion services, real-time visibility, alert notification, and advanced analytics, providing users with ready access to a range of important information on vessels and cargo.

Its Smart Gate System was integrated with the PCS to create a more efficient interface between gate operations and government authorities such as the Zakat, Tax and Customs Authority and the Border Guard.

“This extensive automation has vastly improved operational efficiencies and turnaround times,” he said.

The Kingdom’s overall ports handle today around 20 percent of the region’s transshipment market, but authorities aim to raise this to 50 percent by 2030.

With four new Special Economic Zones being set up in the Kingdom, the national ports benefit from the resulting surge in foreign direct investment, business activity and trade flows in logistics, manufacturing, financial services, technology, etc.

New believes that KAP is competitively positioned in the industry due to several factors, such as its location on the Red Sea on the main East-West trade route, which accounts for 13 percent of all global trade.

The port forms a part of the King Abdullah Economic City, which gives the port another strategic advantage.

“Our proximity to the Industrial Valley, part of KAEC allows companies to have a base near the port and gives them direct access to extensive external transportation facilities, including an ultramodern highway network and the new Haramain High-Speed Railway,” he said.

The city recently welcomed Lucid’s first electric vehicle plant outside the US, which will produce up to 150,000 electric vehicles annually.

KAP also offers access to the forthcoming Saudi Landbridge Project, which will directly connect Riyadh, Dammam and the rest of the Gulf Cooperation Council countries.

The project will link the western and eastern parts of the Kingdom and could see costs spiral to around SR100 billion ($26 billion) once all factors are accounted for.

The contracts will be signed within a year, and the project implementation will take five to seven years, said the Minister of Transport and Logistics Saleh Al-Jasser.

KAP launched a new international in-transit cargo service last May, supported by inland transportation between Saudi Arabia and the GCC countries, reducing the lead time from 13-16 days by sea to four to six days by land.

The move features a three-hour streamlined the process from the arrival of cargo at the port to its dispatch to the final destination, which will also reduce storage costs, according to a statement issued by KAP.

“With state-of-the-art processing facilities, one of the world’s deepest water berths and a fully-integrated personal communications service, KAP is well on its way to meeting its goal of becoming one of the top ports worldwide,” said New.

RIYADH: Saudi Arabia has been one of the top-performing markets in the venture capital space in the Middle East and North Africa, said a leading venture capital player.

According to Mohammed Al-Zubi, the founder of Saudi venture capital firm Nama Ventures, the Kingdom’s position can be attributed to four main factors.

The first factor was the unparalleled support by the government in facilitating funding programs in the country.

The second was the rise of awareness of family offices and institutions of VC as an asset class. The third was an increasing interest among international investors to invest in Saudi startups and the opportunity they present.

“Lastly, Saudi entrepreneurs had reached a high level of knowledge and sophistication,” explained Al-Zubi.

• According to Mohammed Al-Zubi, the founder of Saudi venture capital firm Nama Ventures, the Kingdom’s position can be attributed to four main factors.

• The first factor was the unparalleled support by the government in facilitating funding programs in the country.

• The second was the rise of awareness of family offices and institutions of VC as an asset class.

Nama Ventures has been an active investor in startups worldwide and is currently focusing on tech-based early-stage ventures.

Furthermore, the Kingdom saw a record 76 investors participating in deals closed in local startups, with 25 percent from investors outside the Middle East and North Africa region in 2021, according to the industry research firm MAGNiTT.

The report also stated that the Kingdom witnessed a 54 percent increase in venture capital deals year-on-year, with $548 million raised across 139 deals in 2021.

Saudi investors have been the most active in the Middle East and North Africa region in terms of participation in deals, in addition to the Kingdom ranking the highest in the amount raised in the first five months of 2022, according to Wamda’s monthly report.

Beginning of a bubble burst?

With huge business traction among Saudi startups, experts are beginning to worry about a global bubble burst.

Seif Shieshakly, co-founder and managing partner at consulting firm Four Principles, told Arab News that the region is experiencing a bubble burst.

Shieshakly explained that people are jumping into startup investment opportunities without making sure of basic business questions such as sustainability and cash flow, adding that this is similar to the dot com bubble in 2000.

“In the end, you had companies that had very questionable business models, but just because they were intact, they were suddenly getting ridiculous valuations,” he added.

Four Principles is ranked as the Middle East’s leading consulting firm for lean and six sigma management practices, supporting large corporations in establishing startups within their company portfolio.

Moreover, experts worldwide expect a massive decline in startup funding in the next half of 2022.

Global venture funding in May 2022 was the first time in more than a year that the market was valued below $40 billion, according to Crunchbase, a startup research company.

The Middle East and North Africa region also experienced a fall in venture capital funding when it witnessed a 40 percent month-on-month decline in investment value in May 2022, according to Wamda Capital, an entrepreneurship research firm.

These signs might be taken as warnings for investors, startups, and economies, but venture capitals are still riding high for the upcoming period.

“We think what is to come is extremely exciting for the startup and VC space in Saudi Arabia. We think many Saudi startups have not realized their full potential and have not had the exposure and value their counterparts in other geographies have enjoyed,” explained Al-Zubi.

Another Saudi venture capital firm, BIM Investment, is doubling down on the Saudi market as it announced in June the launch of its second fund, BIM Investment II, a $32 million fund targeted at the Kingdom.

“We find the Saudi market today to be competitive and rapidly growing, creating qualitative challenges that allow emerging companies to have many opportunities,” Rayan AlSharif, Partner at BIM Investment, said in a statement.