Latest news with #CapitalMarketsForum2025
Argaam
25-02-2025
- Business
- Argaam
First Mills holds largest market share in flour production, sales; eyes expansion: CEO
First Milling Co. (First Mills) maintains the largest market share in Saudi Arabia's flour production and sales, CEO Abdullah Ababtain told Argaam in an interview. The company also seeks to explore expansion opportunities in other GCC and regional markets after obtaining the approval of the General Food Security Authority (GFSA) for exports, he said on the sidelines of the Capital Markets Forum 2025 in Riyadh. The growth in the company's profits in Q4 2024 was driven by all product lines, as well as the start of tangible impact of newly-launched products. The flour producer also benefited from the increase in its milling capacities, which helped enhance revenues and improve both financial and operational performance. He pointed out that the revenue growth was supported by expanding into new geographical areas and adding new product categories to the company's product portfolio, such as those from Durum Mill and pre-mix plant. In addition, the rise in revenue was buoyed by adding 500 tons per day through increased production capacity of Mills C and A in Jeddah. The CEO highlighted that First Mills maintained strong double-digit profit margins at 25%. Ababtain explained that feed products, which rose 17%, contributed significantly to the annual revenue growth. The company was able to implement effective sales strategies, driven by increased demand and improvements in sales and inventory management. The company also made several updates to its equipment, utilizing advanced technologies, which enhanced its production capabilities, the CEO added. On his expectations for the company's performance in Q1 2025, Ababtain said that the Ramadan season, which shifts 11 days earlier each year, typically sees a noticeable increase in demand for the company's products across all categories. He expected higher demand will continue to impact the company's performance positively in the coming period, expressing his optimism about continuing to achieve outstanding results. The company's board of directors approved expansion projects, including establishing a new flour-grinding unit (Mill C) in Qassim with a production capacity of up to 600 tons per day. Ababtain expected operations to begin by mid-2026, which will support the company's growth and boost its competitive position in the central and northern regions of the Kingdom.
Argaam
19-02-2025
- Business
- Argaam
SNB Capital sees ‘positive' outlook for Tadawul, more IPOs, M&As in 2025
The outlook for the Saudi Exchange (Tadawul) is generally 'positive' for 2025, according to Zaid Al Ghoul, head of Investment Banking at SNB Capital. He stated that 2024 witnessed a robust performance with 14 initial public offerings (IPOs) on the Main Market and 27 on the Nomu-Parallel Market, reflecting increased activity. In an interview with Argaam on the sidelines of the Capital Markets Forum 2025, Al Ghoul said that the market witnessed a number of merger and acquisition (M&A) deals, consistent with previous years, and an ongoing momentum in debt issuances this year. There are great opportunities for M&A activity, especially in the insurance and cement sectors, amid higher private equity activity, as some companies tend to restructure or merge in preparation for a public offering, Al Ghoul said. He expected this trend to continue, especially as the market develops and the quality of listed companies improves. He added that M&A activity has become more vibrant, noting that SNB Capital launched a division specialized in this field in 2024, which successfully closed a large number of deals. Al Ghoul said secondary offerings witnessed remarkable progress in 2024, as some strategic shareholders sold their stakes in listed companies, such as Aramco's $12 billion secondary offering, in addition to the Public Investment Fund's (PIF) $1 billion offering in stc.
Argaam
19-02-2025
- Business
- Argaam
Saudi market likely to continue momentum: Yaqeen Capital CEO
Ahmed AlShabanah. CEO & Managing Director of Yaqeen Capital Co., said that the Saudi stock market witnessed a significant increase in liquidity during the fourth quarter of 2024, whether on the level of the Main Market (TASI) or Nomu-Parallel Market. The Saudi market is expected to maintain this momentum in 2025 and 2026, backed by increasing initial public offerings (IPOs) and investments, including foreign investments, AlShabanah told Argaam on the sidelines of the Capital Markets Forum 2025. Moreover, the Saudi market experiences increasing interest from local and foreign investors, which in turn strengthens its position as a key investment destination in the coming years.
Arab News
18-02-2025
- Business
- Arab News
Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says
RIYADH: Saudi investment firm Derayah Financial saw its assets under management soar to SR17 billion ($4.53 billion) in 2024 as it outpaced growth across the sector in the Kingdom, according to its CEO. Speaking to Arab News at the Capital Markets Forum 2025, Mohammad Al-Shammasi revealed that this rise to a 70 percent year-on-year growth, ranking the company among the top independent firms in Saudi brokerage revenues, with the third-largest market share. Saudi Arabia's asset management industry was set for growth in the second half of 2024 and into 2025, with AUM increasing 13.5 percent year over year to exceed $250 billion by mid-2024, according to a Fitch Ratings report released in October. The Kingdom has the largest asset management industry in the Gulf Cooperation Council, the fifth-largest in the Organisation of Islamic Cooperation, and the second-largest public Islamic funds market globally. 'The overall size of the market is actually growing at a very decent growth rate. So, if you look at retail brokerage or digital brokerage, it is historically growing at a 9 percent CAGR year after year,' he said, adding: 'On the asset management side, that has been growing at around 14 percent year after year.' Oversubscribed IPO Al-Shammasi also discussed Derayah's recent initial public offering, which was 162 times oversubscribed, underscoring the firm's strong market position. 'This is a great testament to the company's performance over the past few years,' he said. Founded 17 years ago as a digital challenger in capital markets, Derayah has grown into Saudi Arabia's third-largest brokerage on of the the largest independent brokers in the region. The IPO allows shareholders to sell 20 percent of the company's shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors. 'We think this will give us huge credibility in the market,' Al-Shammasi said, adding that the transaction could also pave the way for more fintech companies to list on the Saudi stock exchange. The CEO emphasized the strong demand for Derayah's IPO from investors across Asia, Europe, and the US. 'We have seen investors from all over the world submitting bids for our IPO,' he noted. Al-Shammasi further assured that Derayah is well-funded for the near future, with a debt-free balance sheet and a track record of generous dividend distributions. 'The company does not really need any capital in the near term to continue its strategy and growth plans,' he said. 'We have a perfect environment to raise money here in the Kingdom, and I'm more than happy to tap the market if we need it,' Al-Shammasi added. The CEO also revealed that Derayah has partnered with Alpaca, a significant player in international brokerage, to cater to the growing local fintech sector. The partnership aims to provide fintechs in Saudi Arabia with a localized version of Alpaca's services while facilitating international investors' access to the Saudi market. 'Alpaca operates a lot of brokerage houses, and we believe this partnership will pave the way for international investors to come and trade in the local market,' he explained. The Capital Markets Forum 2025, hosted by Saudi Tadawul Group, aims to bring together policymakers, business leaders, and industry experts to discuss trends shaping the Kingdom's capital markets and position Saudi Arabia as a key player in the global financial ecosystem.
Arab News
18-02-2025
- Business
- Arab News
Saudi Arabia's debt capital market still has growth potential, investment minister says
RIYADH: Saudi Arabia's debt capital market has growth potential, as it accounts for less than 4 percent of gross domestic product, compared to the G20 average of over 40 percent, the investment minister revealed. During a panel discussion titled 'Capital Crossroads: Connecting Global Investment Hubs' on the first day of the Capital Markets Forum 2025, held from Feb. 18-20 in Riyadh, Khalid Al-Falih explained that the Kingdom aims to expand its debt capital market significantly. This falls in line with the fact that Saudi Arabia's debt capital market is expected to hit $500 billion by the end of 2025, fueled by the Kingdom's economic diversification efforts under Vision 2030, according to Fitch Ratings. In February, Fitch's latest report highlighted several factors driving this growth, including the government's need for deficit funding, maturing obligations, and ongoing reforms. 'There is a call for action by our corporates, by our mid-markets to come forward and prepare for raising capital through bonds and sukuks and the debt capital market of Saudi Arabia. Many of them have been doing this in places like London and London has been accommodating and very open for Saudi entities,' Al-Falih said. 'We need to channel global capital into the opportunities not just in the Kingdom but in the region,' he added. The minister said that King Abdullah Financial District Business Center has already attracted about 600 global companies and that many of them would require professional and financial services as well as raising capital for their regional growth. 'We don't want them to go and raise that capital internationally. We want them to do it here in Riyadh, aided and enabled by the great Saudi enterprises but also by partnerships from around the world,' Al-Falih said. He further said that capital markets are a reflection of the broader economy and that the Kingdom maintains a balanced and diverse set of global relationships at the macro level. As one of the world's largest trading nations, Saudi Arabia has a varied trade balance, with India and China playing key roles in importing from and exporting to the country. Al-Falih added: 'But we continue to trade in a very strong way on goods and services with the Western nations as well as other developing countries in the South. If you look at the investment of the G20 investors in the Kingdom of Saudi Arabia, six of the top 10 are from the East, and the other four are Western countries.' He also highlighted the strong interest from Asian investors in capital flow into Saudi Arabia. 'The Kingdom in many ways is a connector, as I mentioned, of owners of capital from investors from East and West, and hopefully, we play a significant role in terms of bringing investors, bringing companies together, creating a platform for global cooperation and collaboration which is very much central to how we want to lead going forward to minimize the fragmentation and tension that seems to have emerged the last few years,' the minister said. During the panel discussion, Al-Falih also tackled how Vision 2030 created a massive shift in the basic economy, with significant growth in non-oil sectors being recorded. He added that over the past seven to eight years, there have been typical fluctuations in the oil markets, including price changes and variations in Saudi production, which directly impact government revenues and the balance of payments. However, the other sectors, particularly the non-oil economy, have experienced steady and consistent growth of 4 to 6 percent throughout this period. The minister added: 'Sectors that hardly existed are growing at double-digit year on year for the period since Vision 2030, despite COVID and despite micro volatility globally, as I mentioned. You look at tourism, you look at tech, you look at logistics and transportation, all of these are sectors that are drawing a lot of investments and that is reflected in the capital markets, which is the subject of our gathering today.' The minister also said that over the last two to three years, between 40 and 50 initial public offerings for equity listings have taken place. 'There is still a significant need for this forum and for the capital markets governed by CMA (Capital Market Authority), but really the motor for it and the driver is Tadawul because that is the platform of which everybody works to continue to reflect what is happening in the basic economy, which is diversification and rebalancing of our capital markets,' he said. Baroness Gustafsson of Chesterton of the Order of the British Empire and the UK's Minister for Investment, who was also on the same panel, said that bold strategies are needed to drive investment success. 'You have to be quite clear about what it is that you want to accomplish and make that available to investors, and we have done that with our modern industrial strategy, laying out those sort of key sectors that we think are going to be really contributing to the growth of the UK so the investors can align alongside that to make sure they are supporting that,' Gustafsson said. 'The other aspect that you need is that capability. So, that exists in both terms of the sort of innovation capability. So, we have got some of the best academic institutions in the world with world-class expertise that are going out solving these really complicated world problems,' she added. Organized by the Saudi Tadawul Group and held under the patronage of the Minister of Finance and Chairman of the Financial Sector Development Program Committee, Mohammed Al-Jadaan, the forum will convene top policymakers, business leaders, and industry experts to discuss key trends and developments shaping the nation's capital markets. With a strong focus on the evolving financial landscape, the event is held under the theme 'Powering Connections,' and is set to unlock investment opportunities, foster strategic partnerships, and further position the Kingdom as a key player in the global capital markets ecosystem.
