Latest news with #ArbahCapital
Asharq Al-Awsat
24-06-2025
- Business
- Asharq Al-Awsat
Saudi Sovereign Wealth Fund Launches First Global Commercial Paper Program
The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has launched its first-ever global commercial paper program, marking a significant step in strengthening its short-term financing capabilities and expanding its reach in international capital markets. According to an official statement, the program allows for the issuance of commercial paper through Special Purpose Vehicles (SPVs). It consists of two sub-programs: one for the US market and another for the European market. The program has already earned top credit ratings: Moody's assigned it a Prime-1 (P-1) rating, the highest short-term grade, while Fitch Ratings awarded an F1+ rating, also its highest for short-term instruments. Fahad AlSaif, Head of Global Capital Finance and Head of Investment Strategy at PIF, said the launch aligns with the Fund's broader financing strategy. 'This program reflects our flexible and effective approach to funding, designed to support our long-term investment priorities,' he noted. Commercial paper is widely used in global financial markets as a tool for short-term liquidity management. PIF's program is expected to enhance its agility in managing cash flow while complementing its long-term funding plans. Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the initiative highlights PIF's commitment to robust liquidity management and its ambition to lead both domestically and internationally. He called the move a 'strategic addition' to PIF's funding ecosystem, noting that the strong credit ratings will allow the Fund to secure financing at competitive rates, positioning it to capitalize on key investment opportunities without being overly exposed to short-term market volatility or interest rate risks. Al-Farraj added that the launch supports PIF's strategy to diversify its funding sources and balance short-term needs with long-term goals. He pointed out that it will help drive major projects in critical sectors such as renewable energy, future industries, and advanced technology - key pillars of Saudi Arabia's Vision 2030. He also emphasized the program's role in strengthening Saudi Arabia's standing as a global financial hub and increasing its appeal to international investors. The initiative follows PIF's broader financing roadmap, which includes issuing green bonds - such as its landmark $3.5 billion sukuk offering - and reflects its continued pursuit of innovative, sustainable funding solutions to fuel the Kingdom's economic transformation.
Asharq Al-Awsat
05-05-2025
- Business
- Asharq Al-Awsat
SABIC Expects Capital Expenditure of $4 Bn in 2025
Saudi Basic Industries Corporation (SABIC), one of the world's largest petrochemical companies, reported a net loss of 1.21 billion riyals ($322.6 million) for the first quarter of 2025, reflecting continued pressure on the global petrochemical sector. Despite this, the company is maintaining disciplined capital investment management, with capital expenditure expected to range between $3.5 billion and $4 billion in 2025. The loss was primarily attributed to a 1.05 billion riyal decline in gross profit, driven by rising feedstock prices, along with non-recurring costs of 1.07 billion riyals linked to a strategic restructuring initiative aimed at streamlining annual costs by approximately 345 million riyals and improving long-term operational efficiency. SABIC CEO Abdulrahman Al-Fageeh, speaking at a press conference following the release of the company's results, highlighted ongoing challenges in the global economy, including a slowdown in global GDP growth. 'The first quarter business environment was marked by uncertainty, with global economic growth at just 2.97%, along with a slowdown in the manufacturing PMI, which intensified challenges for the sector,' he said. Despite the losses, Al-Fageeh noted SABIC's remarkable resilience, supported by what he described as 'stable demand' for petrochemicals. He emphasized the company's continued focus on operational excellence and its transformation efforts throughout the year. SABIC projects its capital expenditure to range between $3.5 billion and $4 billion in 2025, reaffirming its commitment to creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision. Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, commented to Asharq Al-Awsat that initial forecasts from various research firms prior to the results announcement were mixed. While some expected a significant year-on-year drop in net profit, others predicted revenue growth. 'Looking at the reported results, we see that revenue aligned with expectations, indicating slight year-on-year growth, while the reported net loss was smaller than some estimates, which had anticipated larger losses,' Al-Farraj said. 'However, the results still fall short of profits from the same period last year. It is important to consider the impact of one-time restructuring costs when making comparisons,' he explained.
Wamda
12-02-2025
- Business
- Wamda
Buildnow secures $9.7 million investment led by STV
Saudi Arabia-based contech Buildnow has closed a $9.7 million funding round, led by STV and Arbah Capital, with additional funding from a mix of debt financing, reinforcing the company's expansion plans in the market. Founded in 2022 by Hisham Al Saleh, Rahat Dewan, and Abdulla Sheikh, Buildnow is a build-now-pay-later platform that supplies materials on credit terms tailored for the buyer while paying cash upfront to the SME suppliers. The new funding will support the expansion of the company's operations for small and medium enterprises (SMEs) in the construction and building sector. In March, the company closed an initial seed funding round worth $9.4 million, which included $6.5 million in equity and $2.9 million in debt financing. Source: EntArabi Buildnow, a Saudi-based company specialising in supply chain solutions for the construction sector in the Middle East, has announced the successful closure of a new $9.7 million funding round. The round was led by STV and Arbah Capital, with additional funding from a mix of debt financing, reinforcing the company's expansion plans in the market. Buildnow provides 'Build Now, Pay Later' solutions, aiming to support SMEs in the construction industry through a specialised credit management platform and an integrated supply chain network. In March, the company closed an initial seed funding round worth SAR 35.3 million ($9.4 million), which included $6.5 million in equity and $2.9 million in debt financing. Buildnow leverages advanced digital technologies to analyse the financial data, legal status, and market reputation of buyers. This allows the company to offer flexible financing solutions with tailored credit terms while also providing upfront liquidity to SME suppliers. Founded in April 2022 by Hisham Al-Saleh, Rahat Dewan, and Abdullah Al-Sheikh, Buildnow aims to revolutionise construction financing with innovative solutions that foster growth and sustainability.
