ArabWeeks

SABIC has announced the distribution of SR 6 billion cash dividends to shareholders for the first half of 2016 at SR 2 per share, representing 20 percent of the nominal share value.

Eligibility for the profits will be for shareholders registered in Tadawul by the end of trading on August 25, 2016. The distribution of dividends will begin on September 6.
The company has urged shareholders to update their data and ensure that their bank account numbers are linked with their investment portfolios to enable deposit of the dividends to their bank accounts on the day of distribution.
It is also necessary to deposit all certificates in their investment portfolios at the Securities Depository Center, Tadawul.

SABIC achieves SR 4.74 billion profit in Q2 2016, exceeding analysts’ expectations

SABIC has announced a net profit of SR 4.74 billion for Q2 2016, as against SR 6.17 billion in the same period last year, a decrease of 23.18 percent, and an increase of 39 percent as against SR 3.41 billion in the previous quarter.

The results were revealed in the consolidated financial results for the period ended June 30, 2016. The gross profit for the second quarter amounted to SR11.02 billion, compared to SR 12.72 billion for the corresponding quarter of the previous year, a decrease of 13.36%, and compared to SR 8.39 billion for the previous quarter, an increase of 31.35%. The operational profit during the second quarter amounted to SR 6.95 billion, compared to SR 9.38 billion for the corresponding quarter of the previous year, a decrease of 25.91 percent, and compared to SR 5 billion for the previous quarter, an increase of 39%.

According to SABIC, the net profit for the six months amounted to SR 8.14 billion, compared to SR 10.11 billion for the same period last year, a 19.49% decrease. Dividends per share for the six months were SR 2.71, compared to SR 3.37 for the same period last year. The gross profit during the six months amounted to SR 19.41 billion, compared to 22.17 billion for the corresponding period last year, a 12.45% decrease. The operating profit during the six months totaled SR11.95 billion, compared to SR 15.51 billion for the same period last year, a 22.95% decrease.

SABIC attributed the decline in the 2016 second quarter earnings, compared to the same quarter of 2015, to a drop in the average selling prices of the products. In addition, a loss allocation in the value of machinery and equipment of Ibn Rushd, amounting to SR 761 million, was recorded in the results, of which SABIC share amounted to SR 366 million. A decrease in cost of sales has also been referred to.

SABIC also attributed the decline in profits for the six-month period of 2016, compared to the same period in 2015, to a drop in the average selling prices of the products, with a marked decline in prices in the metals sector. In addition, SR 761 million losses in the value of machinery and equipment of Ibn Rushd were recorded in the results, of which SABIC share amounted to SR 366 million, along with a rise in the Zakat allocation.  SABIC also referred to a decrease in sales cost and a rise in other incomes.

The main reason for the rise in the earnings of Q2 2016, compared to the previous quarter of the same year, is due to an increase in the average selling prices of products, with an improvement in metal prices – in spite of recording SR 761 million losses allocation in the value of machinery and equipment of Ibn Rushd, of which SABIC share amounted to SR 366 million.

Makkah is poised to become one of the world’s leading religious hospitality and tourism destinations as Saudi Arabia boosts tourism efforts and aims to enhance the Umrah and Hajj experience for pilgrims, according to industry experts.

The Holy City is expected to witness a growing hotel supply through 2018, according to Colliers International’s Q1 2016 Saudi Arabia Report, driven in part by a growing demand from affluent religious travellers for world-class service. aedff6ad9bfc553a_org

“The sacred city’s momentous historical sites, such as the Grand Mosque and the Kaaba, as well as significant pipeline projects in Islamic arts and culture, including the recently announced 5,600 square meter Makkah Museum, will offer visitors a host of rich experiences,” said Ismail Sirry, general manager of Conrad Makkah.

“The objective for the majority of travelers to Makkah is to take part in Umrah or Hajj, and because the Holy City receives millions of pilgrims every year, ease of access, convenience, safety, and comfort are top concerns for visitors. This is driving a transformation in Makkah’s tourism industry, one characterized by an overhaul of the traditional approach to hospitality,” Sirry added.

Figures from Saudi Vision 2030 show that in the last decade, the number of Umrah visitors entering the country from abroad tripled, reaching 8 million people. And with ambitious plans by to increase the number of Umrah pilgrims to 15 million by 2020, and 30 million by 2030, the Kingdom is focused on redefining tourism and hospitality in the Holy City.

“Developing intuitive services and a supportive infrastructure at both hotel and city levels is central to this effort,” says Sirry. “The biggest challenges visitors face in Makkah are related to access and capacity, but significant government projects, such as the expansion of the Grand Mosque, and the development of the Haramain High Speed Railway and the Makkah Mass Rail Transit System, will soon resolve many of these issues. However, that same seamless traveler experience then needs to be carried through at a hotel level.”

The recently launched Conrad Makkah is one of the few hotels in the Holy City to offer direct access to the Al Haram via 12 elevators to the religious site, enabling pilgrims to seamlessly reach the Sacred Mosque during peak prayer times. The hotel also offers an on-site Masjid for up to 1,000 guests with audio connection to Al-Haram.

Guests staying at the stunning 438-room facility can receive luxury service the moment they land at the airport, with a private car equipped with Wi-Fi, food, and refreshments, available upon request to transport them to the Holy City. Located in the Jabal Omar development, the hotel also offers private access via a route that is exclusive to guests staying in the district, circumventing roads congested by traffic, and enabling effortless access to and from the property.

The inherited Traditions and customs of the Gulf community are part of the culture and the people are highly attached to it especially during those practiced during Eid period.

During Eid, the people usually scatter Oud and perfumes in their homes, and scent their houses by Burning bakhour when welcoming their guests and upon their departure, and after prayer.

Eid -ul –Fitr is purely spiritual and brings rejoicing and happiness, Muslims gather with their families and relatives to celebrate and Thank God for having given them the will, the strength and the endurance to observe fast and obey His commandment during the holy month of Ramadan.

Bakhour is highly attached to Eid which is a tradition passed down over the generations; people visit the Oud shops to buy Oud and Bakhour, where they can choose from a wide selection that varies according to quality and price, to meet their diversified needs.

People Also tend to buy Oud gifts which is considered a valuable and spiritual gift.

“It is very common that Oud and Oriental perfumes is the best gift during Holidays, as it is an inherited custom that people have maintained over the years and that adds joy to their celebration, and expresses the Saudi generosity and hospitality,” said Mr. Hamad Al- Toeimi, External Procurement Manager, Arabian Oud Company.

Sales at Arabian Oud stores increased by 47% during this period, where Oud tops the sales, followed by Bakhour and Oriental Perfumes, Musk, Rose, Amber, and combinations of Sandal Wood and Taif roses.

Mr. Hamad Al- Toeimi added, “Arabian Oud welcomes their clients at our branches to offer them a wide variety of products where they can choose the best quality that meets their budget.”  

Arabian Oud was keen to offer a wide selection customized for Eid, as we have recently launched several products, Madawi, Kashmir, Royal Blue, Secret Collection, Woody Collection, Princess Musk, and Makhlat Luxury.

It is worth mentioning that Arabian Oud, established in 1982, is the largest company operating in the oriental perfume industry. It was recently ranked first as the most selling perfume company in the MENA region, and the 11th globally as per the certified report issued by Euromonitor. Arabian Oud operates 755 stores in more than 35 countries across the world, and it is recognized as the most famous brand in the world. This was due to its proficiency and uniqueness in producing incense, oriental perfumes and aromatic oils.

The Arab Petroleum Investments Corporation (APICORP) and The National Shipping Company of Saudi Arabia (Bahri) announced the launch of a landmark shipping fund.

An agreement to establish the APICORP Bahri Oil Shipping Fund (ABOSF) between APICORP and Bahri was formally signed at a ceremony held yesterday 17 July in Riyadh, in the presence of His Excellency Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources for the Kingdom of Saudi Arabia and Chairman of Saudi Aramco. The ceremony was attended by Dr. Aabed Bin Abdulla Al Saadoun, Chairman of APICORP, Abdulrahman Mohammed Al Mofadhi, Chairman of Bahri, Dr. Raed Al Rayes, Deputy CEO & General Manager of APICORP, Ibrahim Al Omar, CEO of Bahri and Naser Al-Abdulkareem President of Bahri Oil Transportation. Other senior officials and advisers from both organizations were also present.

The Fund’s target is to acquire approximately 15 Very Large Crude Carriers (VLCCs) over three phases with total investments of up to $1.5 billion composed of debt and equity. APICORP will be the main investor and fund manager, whilst Bahri will be the exclusive commercial and technical manager. APICORP will invest 85% in the Fund with Bahri investing the remaining 15%. The Fund will be a closed-end fund with a 10 years life period, and will deliver returns derived from the commercial employment of the VLCCs.

Dr. Aabed Bin Abdulla Al Saadoun, Chairman of APICORP said: “We are delighted to be launching this fund in partnership with an esteemed organization like Bahri, a leader in the shipping industry. APICORP continues to support the transformation of the energy industry and seek to raise the profile, both locally and internationally, of the sector through such investments.”

Abdulrahman Mohammed Al Mofadhi, Chairman of Bahri said, “Bahri is committed to upholding its leadership position in the Kingdom of Saudi Arabia and the establishment of this fund in partnership with an extremely well-entrenched financial institution such as APICORP, is another step in that direction. This fund will not only reduce Saudi Arabia’s dependence on external crude carriers but also its earnings will be reinvested in the local economy. As with any other initiative, our growth strategy for this investment, firmly falls in line with Saudi Arabia’s plans for future development as laid out in the Kingdom’s Vision 2030.”

This agreement is in line with Saudi Arabia’s long term economic diversification plan, support economic growth and creating employment opportunities. The project is a step in the right direction to enhance maritime sector awareness and augment growth of this industry in the country.   APICORP and Bahri have developed a unique structure that assists Bahri in increasing its VLCC fleet. This will also make Bahri the biggest VLCCs operator in the international VLCC market segment.

Dr. Raed Al Rayes, Deputy CEO & General Manager of APICORP commented: “The launch of this fund is a further example of APICORP’s unrivalled ability to provide innovative financing solutions that meet the demands of the energy sector. A mechanism such as this not only helps the energy industry to meet the logistical challenges presented by the current dynamics, but also has the potential to deliver attractive returns.”

Ibrahim Al Omar, CEO of Bahri said: “At Bahri we remain steadfast in our efforts to contribute to our national vision and goals, and are committed to playing an integral role in further developing and transforming the maritime industry in the Kingdom to strengthen its position as a leading regional logistics hub, thereby creating more employment opportunities for Saudis while continuing to play our part in the economic development of Saudi Arabia. With a current fleet of 36 VLCC’s and 10 new build orders scheduled for delivery in 2017-18, the 15 crude carriers proposed for acquisition under this fund will propel Bahri into becoming the largest operator of VLCC’s in the world.”

Dr. Al Rayes continued: “This fund is APICORP’s second shipping fund. The first shipping fund, APICORP Petroleum Shipping Fund (APSF), was launched as a five year closed-end fund in February 2013 and till today yields attractive returns by leveraging growth opportunities in the petroleum products tanker charter market. The Fund we are launching today will capture a unique opportunity thrown open by the recent changes in the maritime oil logistics market of the region.”

Dr. Al Rayes concluded: “On behalf of APICORP, I would like to thank the Ministry of Energy, Industry and Mineral Resources and His Excellency Khalid Al-Falih for their support, without which this Fund would not have been possible.”

Arabian Oud, the world’s largest retail chain specialized in oriental perfume, launched an initiative that aims at supporting Saudi Scholarship Students, through offering them job opportunities at Arabian Oud’s International stores.

This initiative has already started at Arabian Oud London Branch, and to be executed at Paris and New York Braches.

The initiative stemmed out from the importance of Investing in Human Capital, which is the most successful investment to build a sustainable economy.

Arabian Oud is aware of the challenges faced by the Students abroad, and Arabian Oud is offering them part time jobs at its International Branches in London, Paris and New York.

This opportunity will allow the students to increase their income and utilize their free time, while still focusing on their education.

Mr. Badr AL Kathami said” Arabian Oud is a Saudi company, that represents the Kingdom and accordingly we have worked towards providing part time jobs for Saudi students at our branches in London, which helps them to gain practical work experience, gain many skills like time management, dedication and commitment, and team work, which will affect them positively and increase their productivity while they are abroad in addition to the financial benefits.”

AL Kathami added “Arabian Oud values the role of youth in building a health and strong community and we are helping them to be effective members in the community by giving them the opportunity to shape their future through  actual work experience that will make them confident and self-dependent, thus creating a generation of Future Leaders.”

It is worth mentioning that Arabian Oud, established in 1982, is the largest company operating in the oriental perfume industry. It was recently ranked first as the most selling perfume company in the MENA region, and the 11th globally as per the certified report issued by Euromonitor. Arabian Oud operates 755 stores in more than 35 countries across the world, and it is recognized as the most famous brand in the world. This was due to its proficiency and uniqueness in producing incense, oriental perfumes and aromatic oils.

His Excellency the Minister of Transport and Chairman of the Board of the General Authority for Civil Aviation Mr. Sulaiman Bin Abdulla Al Hamdan, awarded the Air Operator Certificate to the Chairman of the Board of SaudiGulf Airlines, Mr. Tariq Bin Abdulhadi Al Qahtani, Chairman of Abdulhadi Al Qahtani & Sons Group of Companies.

Captain Abdulhakeem Bin Mohammed Al Badr Deputy President for Safety and Security, General Authority for Civil Aviation then proceeded to congratulate SaudiGulf Airlines for obtaining the Air Operator Certificate, and becoming the newest member of the group of Saudi Arabian national airlines, and joining the journey in developing the airline sector in the Kingdom of Saudi Arabia, offering improved services to the citizens and residents of the Kingdom.

Captain Al Badr confirmed that the Air Operator Certificate has been awarded to SaudiGulf Airlines after meeting the requirements to obtain the license, part of which consisted of test flights without passengers in the presence of licensing inspectors of the Authority to ensure that all safety and quality standards are met by the airline. In addition to the company previously fulfilling its financial obligations to ensure continuity in the provision of air passenger services in the Kingdom.

Mr. Tariq Bin Abdelhadi Al Qahtani, Chairman of the Board of SaudiGulf Airlines then proceeded to thank the Leadership of the Kingdom of Saudi Arabia for their continued support, wisdom and guidance. Mr. Al Qahtani then proceeded to thank the Minister of Transport for his support to national companies in fulfilling their part in the development of Air Transport in the Kingdom, and specifically for his diligent interest in the progress of the licensing of SaudiGulf Airlines.

The award ceremony was followed by a press conference in which Mr. Al Qahtani announced the launch of SaudiGulf Airlines to meet the increasing demand for air transport services in the Kingdom, due to the rapid growth of the Saudi Arabian economy.

This was the main driver behind the birth of the SaudiGulf Airlines project, to contribute to boosting air transport capacity both domestically and internationally, at exceptional service levels for the entire travel cycle.

Mr. Al Qahtani then disclosed to the media that the reason behind naming the airline “SaudiGulf” and using the colours of the national flag of the Kingdom, was to highlight its origin as a Saudi Arabian Carrier, and as a symbol of the strong connection between GCC countries.

He also added that the Golden Palm frond logo is a symbol of true Arabian heritage and hospitality, which will be evident in the service which passengers will receive with SaudiGulf Airlines.

Mr. Al Qahtani then expressed his confidence that the airline project will inspire businesses and businessmen alike in the Kingdom to develop similar initiatives to better serve the citizens and residents of the nation, with the support of the government of the Kingdom of Saudi Arabia.

The CEO of SaudiGulf Airlines Mr. Samer Majali then confirmed that 1^st September 2016 will be the start of scheduled services with the introduction of 4 brand new Airbus A320 aircraft all fitted with the latest technology in-flight entertainment systems, and the highest features for comfort and safety.

Mr. Majali further added that these aircraft will connect Dammam to Riyadh and Jeddah with 3 – 4 flights daily, with the introduction of flights between Riyadh and Jeddah the following month with 4 flights daily going up to 7 flights by the year’s end. The first international flight will be from Dammam to Dubai and is expected before the end of the year.

Mr. Majali then stated that the airline will be working hard over the coming period prior to the start of scheduled operations to complete the registration and authorization requirements of the national and international authorities and to commission all of the service features that the airline will introduce from the outset.

Mr. Majali announced that 6 new aircraft will be added to the fleet starting in the second quarter of 2017, with an equivalent number in 2018, reaching a total of 26 aircraft within the next 3 years, to expand the network both locally and internationally.

Following which Mr. Karim Makhlouf, the Chief Commercial Officer of SaudiGulf Airlines, outlined the service strategy concept which involves the total travel cycle from the customers perspective, both internationally and domestically.

On-board the airline is investing in the passenger experience in terms of equipment and service delivery, with latest in-flight entertainment systems, Hollywood movies and games, genuine leather seats, complimentary hot meals for all classes, full on-board connectivity and hi-speed Wi-Fi.

On the ground the experience will include dedicated lounges, Arabic coffee and dates service at the boarding gate and a dedicated travel concierge service.

On-line, service features will include a sophisticated mobile app with live online chat and unique services through the call center and website which will make travelling with SaudiGulf Airline an enjoyable experience.