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Arab News
14-04-2025
- Business
- Arab News
Diriyah Co. sets Guinness World Record for largest construction safety lesson
RIYADH: Diriyah Co. secured a Guinness World Record for hosting the largest construction safety lesson, with 2,864 workers participating at its Wadi Safar development. The company said in a statement that the record-breaking lesson, conducted in partnership with Al-Rashid Trading & Contracting Co., underscores its commitment to workplace safety standards. The record was officially certified during a ceremony at the company's headquarters on Monday, attended by Group CEO Jerry Inzerillo and representatives from Guinness World Records. The 30-minute session, led by a single instructor, focused on the 'Top Five Critical Safety Hazards in Construction,' emphasizing risk mitigation and personal accountability. To accommodate the record attempt, a custom outdoor venue with a special stage was constructed. A gated entry-exit system ensured precise attendance tracking, adhering to Guinness guidelines. Inzerillo said: 'This new world record, in which Diriyah's project staff gathered in Wadi Safar, one of Diriyah Company's masterplans covering an area of over 62 sq. kilomters demonstrates our unwavering commitment to safety and our goal of ensuring everyone returns home safely to their families.' He said that their health and safety protocols exceed industry standards to safeguard the wellbeing of all workers, contractors, and teams involved in the Diriyah development. Diriyah Co. reports a total recordable incident rate of 0.015 for its infrastructure projects, far below global averages. The company regularly trains staff and contractors to maintain its safety culture. Wadi Safar, part of Diriyah's urban expansion, features luxury homes as well as hospitality and leisure destinations. In July 2024, a $2.13 billion contract was awarded to develop the Royal Equestrian and Polo Club, four high-end hotels (Aman, Six Senses, The Chedi, Faena), and a Greg Norman-designed 27-hole golf course. As a Public Investment Fund-backed giga-project, Diriyah aims to house 100,000 residents, generate 178,000 jobs, attract 50 million annual visitors, and contribute $18.6 billion to Saudi GDP upon completion. Located near Riyadh, it epitomizes the Kingdom's transformation into a global cultural and economic hub.
Arab News
03-04-2025
- Automotive
- Arab News
PIF's Lucid's quarterly deliveries rise, Amazon-backed Rivian's fall sharply
BENGALURU: Electric automaker Lucid posted a 58 percent jump in first-quarter deliveries on Wednesday as it lowered prices of its vehicles, while peer Rivian Automotive reported a 36 percent decline. The Public Investment Fund-backed Lucid has also offered incentives including cheaper financing to woo customers away from less expensive hybrid vehicles amid high interest rates. However, the company estimated revenue between $232 million and $236 million for the first quarter ended March 31, below Wall Street estimates of $256.3 million, according to LSEG-compiled data. Shares of Lucid and Rivian were down around 5 percent in extended trading. Lucid delivered 3,109 vehicles during the first quarter, compared with 1,967 in the same period last year. It produced 2,212 vehicles during the quarter ended March 31, up 28 percent, with more than 600 additional vehicles in transit to the Gulf country for final assembly. Rivian has been battling tough demand as consumers opt for cheaper hybrid and gas-powered vehicles in an uncertain economic and political environment. 'I would say the sector at the moment is out of favor. Over the medium to long term, EVs are still inevitable, and so it's just going to take some time for these companies to continue to ramp up,' said Andres Sheppard, senior equity analyst at Cantor Fitzgerald. Rivian CFO Claire McDonough had said in February vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles. Demand could be further pressured as US President Donald Trump's tariff policies are expected to accelerate inflation and increase prices of automobiles, making consumers wary of committing to big purchases. Rivian CEO RJ Scaringe had said earlier this year the company expects higher costs from tariffs on Mexico and Canada as it has a supply chain footprint in these countries. The company delivered 8,640 vehicles in the quarter ended March 31, down from 13,588 a year earlier. But the deliveries exceeded analysts' estimate of 8,200, according to Visible Alpha. Rivian produced 14,611 vehicles in the first quarter, compared with 13,980 a year ago. It reaffirmed its annual deliveries forecast. Lucid and Rivian will report their first-quarter results on May 6. In January, Lucid Motors has become the first global automotive company to join the Kingdom's 'Made in Saudi' program, which grants the firm the right to use the 'Saudi Made' label on its products. Lucid's participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023. Located in King Abdullah Economic City, the facility is the Kingdom's first-ever car manufacturing plant and can currently assemble 5,000 Lucid vehicles annually during its first phase. Once fully operational, it is expected to produce up to 155,000 electric cars per year.
Zawya
18-03-2025
- Business
- Zawya
Saudi-listed SAL Logistics launches $1bln logistics zone in Riyadh
Saudi-listed SAL Logistics Services and Public Investment Fund-backed Sela have signed an agreement to develop the SAL Logistics Zone in Falcon City, north of Riyadh. The logistics zone will cover an area of over 1.5 million square metres (sqm) and will be developed at the cost of 4 billion Saudi riyals ($1.1 billion). The project will feature high-quality warehouses, scalable storage solutions, and the latest operational infrastructure, incorporating advanced security systems, climate-controlled storage, and energy-efficient solutions. No construction timeline was given. Spanning 14.4 million sqm in Malham, north of Riyadh, Falcon City will host the Riyadh Exhibition and Convention Centre, an advanced logistics zone for global enterprises, runway and aircraft maintenance facilities to enhance air cargo and logistics operations. The project will also include commercial, residential, hospitality, entertainment, and retail zones. (Editing by Anoop Menon) (
Arab News
13-02-2025
- Business
- Arab News
PIF-backed ewpartners leads $48m investment in Valuable Capital to propel fintech expansion
RIYADH: A $48 million investment in Valuable Capital, led by Public Investment Fund-backed ewpartners, will soon expand the Saudi fintech sector, revealed a top official from the funding firm. Speaking to Arab News on the sidelines of the PIF Private Sector Forum taking place from Feb. 12-13 in Riyadh, co-founder and Managing Partner of ewpartners Jessica Wong explained that the amount would be utilized in the company's initial public offering route. The investment aligns with the Kingdom's Vision 2030 goals of advancing fintech development and economic diversification, with the industry expected to contribute 4.4 percent to the Kingdom's gross domestic product, according to a statement. Valuable Capital Financial Co., a subsidiary of Hong Kong-based financial institution Valuable Capital Group Ltd, received a license in 2022 from Saudi Arabia's Capital Market Authority to provide custody, advice, and dealing services in the Kingdom. 'We invested in this company three and half years ago, and this time, we continue. We launch a new product, targeting $1 billion, and we continue to invest in this company and kick off their IPO procedure,' Wong said. 'It will be in the company's IPO route to support the company, not just kick off the IPO procedure in the target market, but also for further expansion in the GCC (Gulf Cooperation Council) region,' she added. The co-founder explained the importance of PIF's support in enabling their role in the local market, citing how their initial partnership laid the foundation for future investments. 'The reason we will be able to play a significant role and also to focus on the most critical sectors here in the local market is because, you know, five years ago, PIF is playing the role as our anchor LP (limited partner) of our first regional focus, a fund here in the GCC with a $400 million and through the fund, we invest a portfolio company like a Valuable Capital,' Wong said. 'Because our performance is to exceed our expectation, we will be able to launch our second fund, which is also targeting $1 billion,' she added. During the interview, the managing partner also tackled the rise of fintech in the Kingdom. 'Seven years ago, when we first launched this platform to serve the local growth and expansion, actually we identify ourselves as the co-builder of the local ecosystem, and we have invested across different sectors like digital infrastructure, digital enablement and also cross-border service and beyond,' Wong said. 'Fintech, in our eyes, is one of the most important sectors to support the local ecosystem growth in a more sustainable and more healthy way,' she added. 'This is one of the perfect examples how, as a one of the PIF portfolio, we invest in a particular sector, double the commitment and support its fast growth and also leveraging more FDI (foreign direct investment) and more know-how to support the company, play a bigger role in the global market and build themselves as another successful story,' Wong said. The managing director used the interview to shed light on some updates regarding the KSA-Sino Logistics Special Economic Zone. 'This is one of the projects we have been working on for more than five years. Last October, we were able to sign the MOU (memorandum of understanding) together with our strategic partner, which is King Salman International Airport. So, through this framework of our cooperation, we are working very closely with KSIA, the company itself, to make sure that we will be able to build a platform not just for ewpartners portfolio but also for all the ecosystem players, those who are looking to enter Saudi market as a hub or for their global expansion,' she said. 'The pressure is to come from (a) different angle. One of the biggest motivations for us to continue our work and put together our effort is because there is a huge demand here in the market,' the managing partner added. Wong also said: 'So, our project inside the new expansion of the airport will be one of their top choices, and we've already received a lot of requests to further discuss when we can launch and upper running service them, and hopefully, we will start the construction this year.' Now in its third year, the forum — which united more than 90 PIF-backed companies — aims to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.
Arab News
05-02-2025
- Business
- Arab News
Saudi Arabia's retail market driven by youth, digital growth: experts say
RIYADH: Saudi Arabia's retail sector is undergoing a significant transformation, driven by a digitally savvy young population, increasing consumer confidence, and shifting spending habits, according to a senior executive. In an interview with Arab News at Retail Leaders Circle in Riyadh, Abdellah Iftahy, senior partner at McKinsey and Co., said that 75 percent of retail spending will come from Saudi youth by 2035. 'The consumer of tomorrow is not the one that we see today, and that will actually quite dramatically shape and shake the retail industry,' Iftahy said. He continued: 'Brands not relevant to today's youth may struggle to compete. A key consumer trend is the rising importance of value for money, driven by a growing middle class in Saudi Arabia. This will shape the retail industry with a focus on mass-market, value-for-money offerings.' Iftahy noted that Saudi Arabia's e-commerce market is expected to grow significantly, with one in four retail transactions happening online by 2035. This growth will be driven by increasing digital adoption, rising disposable income, and evolving consumer preferences within the Kingdom. 'Consumers are digitally savvy, and the young population actually transacts much more, both in terms of brand discovery but also in terms of clothing, if you will, to purchase online. E-commerce will continue to become a fast-growing channel going forward,' Iftahy said. He mentioned that food service would be another growing channel, with significant investments expected in entertainment, hotels, hospitality, and restaurants. This, he added, would ultimately boost the food service sector for distributors supplying these outlets. Echoing these sentiments, Karl Nader, partner and managing director at AlixPartners, pointed out that while consumer sentiment in the US and Europe is expected to decline in 2025, the Kingdom remains an exception. 'This is coming from a few areas. We're increasing spend in grocery. But actually, within grocery, we expect Saudi consumers, what the data is telling us, is that there is a shift toward more value-added products, value-driven products, more discounters, private labels, and so on,' Nader said. As a result, consumers are adjusting their financial habits to rebalance their budgets. Nader also stated that the increase in Saudi consumer spending on dining out and entertainment reflects strong consumer confidence, or short-term factors like post-pandemic recovery and government stimulus. One reason for this increased spending is the greater availability of entertainment options, driven by government and Public Investment Fund-backed projects that are expanding the sector. Luxury and e-commerce While budget-conscious spending is increasing, the luxury retail sector is also set for expansion, with international brands looking to establish a stronger presence in Saudi Arabia. 'Fundamentally, retail is about demand, and if demand grows with population and expats coming, we see all of the subsectors benefiting from that,' Iftahy said. He added: 'I think some of the subsectors that may grow faster would be luxury, because what we see today is there is a lot of spend from Saudis outside of Saudi. So, if supply comes in, we expect this to grow at a higher rate than the rest of the industry.' Iftahy went on to say that everything related to entertainment and hospitality is growing because people have been spending more time outside of their homes, and that trend is expected to continue. The evolution of Saudi Arabia's retail industry is also changing the role of traditional retail spaces. Challenges vs. opportunities Despite the opportunities, retailers in Saudi Arabia face key challenges, including rising operational costs, workforce productivity gaps, and the need for digital transformation. 'The productivity levels in Saudi retail are lower than global standards,' Iftahy noted. 'Retailers must improve efficiency, leverage consumer data, and explore adjacent market opportunities.' Additionally, the changing role of women in the workforce is influencing consumer behavior. 'With more Saudi women working and managing careers, retailers need to rethink their engagement strategies,' Nader said. Sustainability and ethical consumerism are also gaining traction among younger Saudi shoppers. 'Brands that demonstrate a commitment to sustainability — through eco-friendly packaging, ethical sourcing, and corporate responsibility — will have an edge in building long-term customer loyalty,' Iftahy added. Retail growth Despite economic uncertainties in global markets, both Nader and Iftahy agree that Saudi Arabia's retail sector is poised for continued growth. 'I think the Saudi market across the different sectors is still growing, and there are a lot of opportunities for growth that can be captured by local or international players,' said Iftahy. 'I would say the international players that have a value proposition and products that are differentiated and bring additional value to consumers have higher chances of winning.' He highlighted that Saudi Arabia offered growth opportunities across consumer and retail segments, with the greatest potential for international brands offering unique products or value propositions. As Vision 2030 continues to drive economic transformation, experts believe that businesses that embrace e-commerce, data-driven strategies, and experiential retail will thrive, while those that fail to adapt will struggle in an increasingly competitive market.
