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UK Second Largest Foreign Investor in Saudi Arabia

Photo by SPA
Photo by SPA
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UK Second Largest Foreign Investor in Saudi Arabia

Photo by SPA
Photo by SPA

Saudi Minister of Investment Eng. Khalid Al-Falih highlighted the deep-rooted Saudi-British relations, saying the UK is the second largest foreign investor in the Kingdom with approximately $16 billion in investment shares.

This came during a panel session held on Tuesday as part of the Great Futures Initiative Conference at the King Abdullah Financial District. The event was held with United Kingdom (UK) Minister for Business and Trade Lord Dominic Johnson.
“The investment sector relies heavily on banks and economic ventures in the financial field," Al-Falih said, indicating that the Kingdom has the fastest growing economy over the past six years.
For his part, the British minister hailed the Kingdom's achievements in expanding joint economic ventures, noting that economic cooperation between the two countries will continue for many decades to come.
He also explained that economic cooperation between the two kingdoms demonstrates the depth of relations and cooperation, as the UK is keen to participate in Saudi Arabia's development.
The UK minister also commended the remarkable development in the Kingdom and the ease of access to investment in the Saudi market, citing the exceptional opportunities for British investors in Saudi Arabia.

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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.