Saudi Stock Market Companies Touch $613 Billion in Revenues

Saudi Stock (Tadawul) (Asharq Al-Awsat)
Saudi Stock (Tadawul) (Asharq Al-Awsat)
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Saudi Stock Market Companies Touch $613 Billion in Revenues

Saudi Stock (Tadawul) (Asharq Al-Awsat)
Saudi Stock (Tadawul) (Asharq Al-Awsat)

Saudi companies listed on the stock market recorded a 56.3 percent increase in their business, reaching total revenue of $613.3 billion.

Al-Jazira Capital reported that the Saudi companies on the Saudi Stock Exchange (Tadawul) recorded $613.3 billion in revenues, compared to $392 billion in 2020, while the listed Saudi companies recorded a 57.7 percent increase in total revenues during the fourth quarter of 2021.

Listed Saudi companies recorded $176 billion in revenues during the fourth quarter of last year, compared to $111.4 billion in 2020.

Saudi companies listed on Tadawul increased their revenues by nine percent during the fourth quarter of 2021 compared to their gains in the third quarter.

Meanwhile, the National Agricultural Development Co (NADEC), one of the largest dairy and food companies in the Kingdom, received a letter from the PIF-owned Saudi Agricultural and Livestock Investment (SALIC) to acquire 12.66 million shares, representing 12.46 percent of NADEC’s total outstanding shares.

SALIC looks forward to supplying larger quantities of essential foreign commodities and increasing the operational efficiency of existing investments.

The company also wants to develop relations with leading international companies in grain and food processing and expand its local and global investments following its strategy.

SALIC will include new agricultural technologies to rationalize water use, raise production efficiency, and preserve the environment.

Earlier, the Saudi Agricultural and Livestock Investment Company announcing that it has acquired 35.43 percent of Olam Agri Holdings for $1.24 billion, provided that the transaction is expected to be completed in 2022 after obtaining the required approvals from the relevant international authorities.

SALIC CEO Sulaiman al-Rumaih said that the deal will develop and support SALIC’s mission as PIF’s investment arm in the food and agriculture sector.”

Rumaih added that SALIC has extensive experience in the food and agriculture sector, which contributes to food security in the Kingdom, and the partnership with Olam will enrich its role in delivering food security.

He explained that Olam Agri’s commercial success, expertise, and scale in critical commodity sourcing and processing would add significantly to SALIC’s international portfolio.

The CEO also pointed out that SALIC will continue integrating both existing and future investments.

The main Saudi stock index closed up 162.89 points, at 13,646.12 points, with transactions worth $3.1 billion.

The volume of traded shares reached 240 million shares, divided by more than 470,000 deals, in which the shares of 77 companies recorded an increase in their value, while the shares of 129 companies closed lower.

The Saudi Parallel Shares Index (Nomu) closed up 221.52 points, at 24,268.83 points, with transactions worth $6.9 million, and the volume of traded shares reached more than 200,000 shares divided by 1,532 deals.



Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
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Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo

The Spanish government has given the green light to Saudi Arabia's largest telecoms operator, STC Group, to raise its stake in Telefonica beyond 5% and reach 9.97%, Economy Minister Carlos Cuerpo said on Thursday.

Cuerpo confirmed an earlier report by El Pais newspaper during a news conference following the cabinet's weekly meeting in which the stake increase was approved, Reuters reported.

"Measures and conditions have been set and accepted voluntarily by the Saudi company to ensure that (the operation) takes place," Cuerpo told reporters.

He said the government's decision followed an "exhaustive analysis based not only on compliance with current legislation but also to guarantee the national interest in defense and ensure the strategic element in telecommunications".

Last year, STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder.

The Saudi group said at the time it owned a 4.9% stake in Telefonica and financial instruments giving it another 5% in what it called economic exposure to the company.

The Spanish government had to authorize the deal as Telefonica is considered a defence service provider and therefore a strategic company.

The Saudi company has said it does not intend to gain control of or a majority stake in Telefonica.