“The resumption of international flights at 1 a.m. on May 17 will exclude 20 countries: Argentina, the UAE, Germany, the US, Indonesia, Ireland, Italy, Pakistan, Brazil, Portugal, the UK, Turkey, South Africa, Sweden, Switzerland, France, Lebanon, Egypt, India and Japan.”
-Saudi Arabia’s Ministry of Interior. [Arab News]
“We have a clear pipeline of transactions. We just need to set the priority for them. We now have a lot more clarity than we did two or three years ago.”
-Rayyan Nagadi, head of the National Center for Privatization, on the completion of the sale of four flour mills which raised $1.54 billion but took five years to complete. Saudi Arabia is also expected to sell part of the Ras Al Khair desalination plant later this year, which could raise several billion dollars. [Bloomberg]
“The Cabinet reiterated that it is closely following the current developments related to Iran’s nuclear program, citing the emphasis of the Kingdom of Saudi Arabia call for Iran to get involved in the current negotiations…The Cabinet underscored the importance of the international community reaching an accord with more stronger and lasting determinants embodying strict monitoring and controlling measures, to prevent Iran from acquiring the nuclear weapon and develop related essential potentials for that.”
–The Saudi Press Agency, in the state news agency’s weekly summary of the Kingdom’s cabinet meeting in which the subject of negotiations with Iran was discussed. King Salman chaired the meeting. [SPA]
“Saudi giga-construction can be a lifeline and as business advice goes, the best that you can do at present is to get in line to serve an upcoming market in Saudi Arabia.”
–Avin Gidwani, CEO of Industry Networks at BNC, commenting on the estimated $19 billion in new projects announced by Saudi Arabia in Q1 2021. [Trade Arabia]
“If you compare today against five years ago, it’s a whole other world. The development was extremely rapid, extremely quick; so what you’re seeing today is a large influx of capital in the market, meaning there’s also a lot more startups than when we first started.”
–Ammar Alkhouli, investment analyst at Saudi Technology Ventures, the largest technology VC fund in the Middle East, discussing the growing interest in startups in Saudi Arabia. In 2020 alone, the country raised a record of $152 million in VC funding, with a 55% increase in total funding from the Middle East and North Africa deployed to Saudi startups. [Rest of the World]
“We face the need of globalization to build new cities for 3 billion people for the next 30 to 40 years. There are places around the world that are thinking about city design, and THE LINE could be a blueprint.”
-Florian Lennert, head of mobility in NEOM, in an interview with Chinese news site Xinhua. [Xinhua]
“Although ESG has proven its worth, much remains to be done to ensure we use it to its full potential. The low level of inclusion and participation of emerging markets in the development of ESG frameworks is counterproductive to global sustainability. Perhaps the most challenging task, and one that we will address during this event, is how we push ourselves to think beyond ESG as a risk management tool and deploy it to create a truly sustainable future.”
–Richard Attias, chief executive of the Future Investment Initiative (FII), in comments at the FII’s ESG (environmental, social, and governance) virtual event on Thursday. The PIF has already incorporated ESG principles into its $400 billion worth of global investments as the sector gains in prominence throughout the region. [Arab News]
“We have gone digital… [Tawakkalna] is an application that will allow you into establishments and commercial establishments across Saudi Arabia. If you are vaccinated and you are fully immune, then it is a darker green color. If you just received one jab then it is a lighter green. If you just arrived from the US it could either be a blue or purple color and that could (mean) you need you to isolate.”
-Rawan Radwan, Arab News deputy section editor and regional correspondent, discussing public health protocols and the mandated smart phone app, Tawakkalna, that displays a barcode along with the name of the user, an ID number and a color that reflects the health status of the individual. [Arab News]
“It’s a great deal for Aramco, but also a new kind of investment strategy, in that it is “giving up” much more in terms of investor access to information, control over operations than an IPO does. It is a real partnership, a long-term effort with outsiders, which is an entirely new level of trust outside of the firm and the government.”
–Karen Young, resident scholar at the American Enterprise Institute in Washington, commenting on the recent $12.4 billion lease agreement signed between an EIG-led consortium to acquire a 49% equity stake in Aramco Oil Pipelines Co., a newly formed entity. The deal gives EIG rights to 25-years of tariff payments for oil transported through Aramco’s stabilized crude oil pipeline network. [Yahoo Finance]
“Smart investors should enter the (hotel) market now to gain bigger yields.”
-Hurriyah El Islamy, executive board member of Indonesia’s Haj Fund Management Agency which has more than $10 billion in funds and is considering investments either in Saudi hotel equity or in rooms. It expects minimum returns of approximately 8%, rising to as high as 20%, and is targeting either Makkah, Jeddah or Madinah. [Salaam Gateway]
