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ACWA Power Signs $738 Million Worth Agreements to Finance Water Desalination Project in the Emirates

The headquarters of ACWA Power
The headquarters of ACWA Power
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ACWA Power Signs $738 Million Worth Agreements to Finance Water Desalination Project in the Emirates

The headquarters of ACWA Power
The headquarters of ACWA Power

Saudi Arabia’s ACWA Power announced on Thursday the signing of agreements with a group of local and international banks to secure the funding of the Hassyan Independent Water Producer (IWP) plant in Dubai.
In a statement, the company said it secured SAR 2.76 billion from local and international lenders for a period of 32.5 years.
The banks proving the funding include Standard Chartered, MUFG Bank, Emirates NBD, Korea Development Bank, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, China Construction Bank, Agricultural Bank of China, Arab Petroleum Investments Corporation (APICORP), Sumitomo Mitsui Trust Bank, Industrial and Commercial Bank of China, Boubyan Bank, and Saudi EXIM Bank.
The loan agreements were signed by Hassyan Water Company, which is owned 20.40 percent by ACWA Power.

For its part, the Saudi Export-Import Bank announced that it had signed a financing agreement with ACWA Power worth $75 million to finance the Hassyan complex project.

The bank said, in a post on X, that the aim of the financing was “to enable Saudi content in international projects, in a way that enhances the development of Saudi non-oil exports, and stimulates projects that are compatible with the principles of sustainability.”

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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.