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Saudi, UK Discuss Developing Trade and Investment

A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
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Saudi, UK Discuss Developing Trade and Investment

A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo

The Economic and Social Committee of the Saudi Arabia-UK Strategic Partnership Council held its third meeting in London, headed by Saudi Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, and UK Secretary of State for the Department for Energy Security and Net Zero, Grant Shapps.

The meeting discussed improving bilateral relations and enhancing cooperation in fields agreed upon in the Strategic Partnership, in addition to highlighting the significant economic and social progress recognized since the launch of the Saudi Vision 2030.

It also reaffirmed the continuous commitment to support the goals of the vision and the Saudi program for economic diversification, in addition to working to develop trade and investment between the two kingdoms.

The Saudi-UK Strategic Partnership Council seeks to boost economic relations in several fields, mainly financial services, especially FinTech (financial technology), open banking, green finance, and priority investment sectors.

It also aims at strengthening educational partnerships, cooperation in health care (including preparedness for epidemics) and health technology, and the general development of the entire healthcare system.

This comes in addition to cooperation in carbon capture, utilization and storage, hydrogen production, renewable energy sources, space, mining, pharmaceuticals, and aviation, and partnerships in the film, heritage, arts, tourism, and entertainment sectors.

The Economic and Social Committee held its first meeting in Jeddah in 2019.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.