Saudi Arabia: Prospective Mergers, Acquisitions in Vital Sectors

Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
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Saudi Arabia: Prospective Mergers, Acquisitions in Vital Sectors

Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser
Cars drive past the Kingdom Centre Tower in Riyadh, Saudi Arabia, January 30, 2018. REUTERS/Faisal Al Nasser

With the increase in the number of mega projects in Saudi Arabia and the economic reforms that have achieved tangible results, experts expected a growth in mergers and acquisitions.

The banking sector would see mergers by the end of 2021, according to the experts, given the volume of financial operations.

Two mergers of local banks are expected to take place in the coming months, while other sectors, such as insurance, real estate and e-commerce are also heading towards the same direction.

Economic Advisor Suleiman al-Assaf told Asharq Al-Awsat that mergers and acquisitions between companies and banks was a prelude to an important stage of work and performance development.

Saudi Arabia is witnessing a modern economic boom under Vision 2030, he emphasized, noting that economic changes would push the Kingdom to the forefront of the international economic scene.

Al-Assaf expected two mergers to take place between Saudi banks, one of which is certain and the other projected soon.

He noted that Saudi banks must keep pace with these developments, which have recently registered one of the largest banking mergers.

“The Saudi economy constitutes 50 percent of the Gulf economy, but Saudi banks account for less than 10 percent of the size of GCC banks in terms of numbers,” he said.

The insurance sector is also likely to witness many mergers, according to Al-Assaf, who pointed to several factors, mainly the large number of companies and the little amount of work, in addition to the financial losses incurred as a result of the pandemic.



Riyadh Metro Begins Operation on Sunday to Ease Traffic in Saudi Capital

The media was given a tour of the new Riyadh Metro ahead of its official opening on Sunday. (Asharq Al-Awsat)
The media was given a tour of the new Riyadh Metro ahead of its official opening on Sunday. (Asharq Al-Awsat)
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Riyadh Metro Begins Operation on Sunday to Ease Traffic in Saudi Capital

The media was given a tour of the new Riyadh Metro ahead of its official opening on Sunday. (Asharq Al-Awsat)
The media was given a tour of the new Riyadh Metro ahead of its official opening on Sunday. (Asharq Al-Awsat)

The Riyadh Metro, the backbone of the capital’s public transport network, will begin operation on Sunday.

The Riyadh Metro project is the largest in the Middle East and boasts the world’s longest driverless metro line in the world.

The metro will help ease 30 percent of traffic in Riyadh, said the Royal Commission for Riyadh City (RCRC) during a media tour of the project on Friday.

Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud had on Wednesday inaugurated the Riyadh Metro.

The network spans 176 kilometers across six lines and 85 stations, including four main ones. It will offer 10 million trips daily and has the capacity for over 3 million passengers. It has already been integrated into the existing bus network.

The Darb app was launched on Thursday to help improve the transport experience in Riyadh.

Maher Shira, Director General of the Smart City Department at the RCRC, told Asharq Al-Awsat during the media tour that the app brings together bus, ticket and metro networks all in one platform.

The app has four main features: the first introduces users to the metro network, including stations, schedules, routes and tickets. The second offers users the option to best plan their trip through suggesting the best routes through the various transportation modes available.

The third offers users the option to purchase tickets, including a pass that covers all modes of transportation in the network. The fourth feature is the customer service option.

Shira said the metro network can be expanded to take in Riyadh’s growing population.

The first phase of the network will open on Sunday. (Asharq Al-Awsat)

The metro project was launched as part of Riyadh’s efforts to bolster sustainable transport and ease traffic, reflecting the Kingdom’s commitment to developing smart transport infrastructure, he added.

Sunday will witness the launch of the blue, yellow and purple lines of the metro network. The blue line spans Olaya Street to Al-Bathaa. The yellow line spans the King Khalid International Airport road and the purple line covers the Abdul Rahman Ibn Awf Road and the Al-Sheikh Hasan Ibn Hussein Ibn Ali Road.

The red and green lines of the metro will be launched by December 15 and the orange line by January 5.

Tickets are available on the Darb app and prices range from 4 to 140 riyals. A two-hour trip costs 4 riyals, a three-day pass is priced at 20 riyals, a one-week pass costs 40 riyals and the 30-day pass costs 140 riyals.