IPO, Asset Sales to Fund Amaala, Red Sea Project

Amaala, a new global leading destination for wellness tourism (Reuters)
Amaala, a new global leading destination for wellness tourism (Reuters)
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IPO, Asset Sales to Fund Amaala, Red Sea Project

Amaala, a new global leading destination for wellness tourism (Reuters)
Amaala, a new global leading destination for wellness tourism (Reuters)

Funding the second phase of the Red Sea Development Company is being considered through an initial public offering (IPO), asset sales, or tap debt markets, announced CEO John Pagano.

Pagano indicated that the Amaala tourism project may raise up to SR10 billion next year, and he pointed out that the Red Sea project recently closed SR14 billion loans from domestic banks, and proceeds will be used to fund the first phase scheduled for completion by the end of 2023.

The Red Sea project recently announced the completion of its fixed-term loan and credit facility with four Saudi banks that included the Saudi Fransi Bank, Riyad Bank, SABB Bank, and al-Ahli Bank.

Amaala, on the northwestern coast of Saudi Arabia, won’t tap markets until next year, Pagano told Bloomberg, adding that the numbers haven’t yet been finalized, with the amount of debt likely to be in the “range” of SR5-10 billion. The company has awarded more than SR3 billion in contracts.

Meanwhile, recent data revealed a decline in Saudi Arabia's possession of US Treasury bonds for the fourth month in a row, recording the lowest level of ownership in seven months.

Saudi Arabia reduced its holdings of US Treasury bonds to $130.2 billion by the end of March, the lowest level since August 2020.

The recent decline reached 17.7 percent compared to the same month last year, while comparisons indicate a decrease in the level of recent holdings by 4.1 percent during the first quarter of 2021, down $5.6 billion from the fourth quarter of 2020.

With the current level of Sukuk ownership in the US Treasury, Saudi Arabia ranks 14th on the list of investors. Japan tops the list with $1240.3 billion, followed by China with investments of $1100.4 billion, and the UK with $443.2 billion.

In addition, the Public Investment Fund (PIF) increased its US stock holdings to $15.4 billion in the first quarter from nearly $12.8 billion at the end of 2020.

Reuters reported that PIF bought 2.9 million class A shares in SoftBank Group Corp-backed Coupang Inc, equivalent to $141 million, and dissolved its share stake in Suncor Energy, according to a Securities and Exchange Commission filing.



Aramco Inaugurates Regional Center for Sustainable Fishery Development on Abu Ali Island

tthe inauguration of the regional center for sustainable fishery development, Arabian Gulf branch, was made in cooperation with the Ministry of Energy and the Ministry of Environment, Water and Agriculture. Aramco
tthe inauguration of the regional center for sustainable fishery development, Arabian Gulf branch, was made in cooperation with the Ministry of Energy and the Ministry of Environment, Water and Agriculture. Aramco
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Aramco Inaugurates Regional Center for Sustainable Fishery Development on Abu Ali Island

tthe inauguration of the regional center for sustainable fishery development, Arabian Gulf branch, was made in cooperation with the Ministry of Energy and the Ministry of Environment, Water and Agriculture. Aramco
tthe inauguration of the regional center for sustainable fishery development, Arabian Gulf branch, was made in cooperation with the Ministry of Energy and the Ministry of Environment, Water and Agriculture. Aramco

Saudi Aramco announced on Thursday the inauguration of the regional center for sustainable fishery development, Arabian Gulf branch, in cooperation with the Ministry of Energy and the Ministry of Environment, Water and Agriculture.

Through this collaboration, Saudi Aramco aims to highlight its investments in citizenship initiatives and its efforts to drive economic growth, support local fishermen and their livelihoods, build expertise, and adopt the best practices to enhance production and cultivate fish of marketable sizes that can compete globally.

The center is part of the company's broader efforts to protect marine life in the Arabian Gulf. It involves the establishment of a fish hatchery on Abu Ali Island in Jubail, located on the Arabian Gulf coast, designed to produce local fish species that have experienced population declines due to fishing practices and to reintroduce them into Gulf waters.

The center's operations are designed to encompass the complete fish life cycle within designated tanks, from broodstock for egg production to larval rearing using plankton produced on-site and finally to the release of juvenile fish into the Arabian Gulf. The hatchery employs advanced aquaculture technologies to ensure fish health, and it utilizes top-tier water recycling techniques to enhance performance and meet the company's circular economy objectives.

The project aligns with Saudi Aramco's mangrove plantation initiative, under which more than 43 million trees have been planted to date. Mangrove forests provide vital nursery habitats for the juvenile fish released into the Gulf, further supporting the sustainability of marine ecosystems.