Latest news with #JadwaInvestment
Argaam
7 hours ago
- Business
- Argaam
Jadwa Acquires Majority Stake in Makhazen Alenaya Through GCC Diversified Private Equity Fund
Jadwa Investment announced the acquisition of a majority stake in Makhazen Alenaya through its flagship blind-pool vehicle, Jadwa GCC Diversified Private Equity Fund. In an emailed statement to Argaam, Jadwa Investment said that Makhazen was founded in 2019. It is a fast-growing Saudi retail concept with 15 branches across the Kingdom. The company has redefined the beauty and personal care sector by pioneering an emerging retail format: the multi-category specialist. Makhazen offers a wide, curated product range at consistently affordable prices. The transaction marks Jadwa's fourth investment under Jadwa GCC Diversified Private Equity Fund (formerly known as GCC Private Equity Fund I). The fund's prior investments include Gissah Perfumes, Blackspoon Group, and Tikkaway. Tariq Al-Sudairy, Managing Director & CEO of Jadwa Investment, commented: 'We are pleased to partner with Makhazen Alenaya in our second investment in the region's retail sector. The transaction reflects our confidence in the Kingdom's evolving consumer landscape, supported by far-reaching economic reforms and a shift toward modern retail formats.' Elie El-Khoury, Head of Private Equity at Jadwa Investment, added: 'Makhazen is a clear category leader in a fast-evolving retail landscape. It pioneered value-driven pricing with premium customer experience, which sets it apart from traditional formats and positions it for significant growth. This investment reflects our strategy to back high-growth businesses with scalable, defensible platforms.' Speaking on behalf of Makhazen Alenaya, Abdullah Almudaihesh, Co-Founder and CEO, stated: 'Partnering with Jadwa Investment marks a defining milestone in Makhazen's journey. We will leverage Jadwa's deep expertise to accelerate our growth, strengthen our operational capabilities and governance, and unlock long-term value. This partnership will reinforce our leadership position in the Kingdom's beauty and personal care sector and lay the foundation to list on the Saudi Exchange's Main Market.' Jadwa Investment is licensed by the Capital Market Authority of Saudi Arabia (CMA) as a capital market institution, with registration number 06034-37.
Zawya
04-06-2025
- Business
- Zawya
After output rise and price fall…what happens to Saudi budget?
When Saudi Arabia released its 2025 budget late last year, it projected oil production at more than 9 million barrels per day (bpd) and prices at around $70/barrel, envisaging a deficit of 101 billion Saudi riyals ($27 billion). Its production forecast is somewhat true as the world's dominant crude exporter is expected to pump around 9.4 million bpd as per estimates by the Riyadh-based Jadwa Investment company. But prices have dipped below that level, reflecting the Gulf Kingdom's failure to foretell their exact direction, which is largely influenced by market conditions and other factors, the latest of which are the planned increase in US tariffs on global imports. 'You cannot predict the exact actual deficit right now…but I don't think it will go down in the current global circumstances…rather it may go up,' said Jamal Banoun, head of the Riyadh-based SMC consultancy centre. In a study sent to Zawya Projects, Jadwa expected Saudi oil output at 9.4 million bd this year, an increase of around 400,000 bpd from 2024. 'We have revised our forecast for Brent crude to $67 a barrel in 2025 as US tariff policy stabilises somewhat, US shale production plateaus and OPEC Plus production growth slows later in the year…higher volumes will offset part, but not all, of lower prices in Saudi Arabia's revenues,' it said. Over the past 10 years, the price of Saudi crude has averaged around $70 a barrel but the breakeven price needed to balance the Gulf Kingdom's budget has remained above $90 a barrel, which is almost impossible to achieve in the present situation, said Saeed Al-Shaikh, a former Shura (appointed parliament) member and ex-chief economist at the National Commercial Bank, now Saudi National Bank (SNB). He told Zawya Projects that the price needed to keep that deficit in check is around $70 provided spending is restrained and non-oil export earnings continue to grow. Another Saudi analyst said the Kingdom's non-oil income has grown enough in the past decade to somehow shield its fiscal system against extreme price fluctuations. 'Reports speak about an average oil prices of $65-75 this year…this is not a high price but we have to note that there has been a radical change over the past 10 years when the Kingdom's Vision 2030 was launched,' said Ihsan Buhlaiga, a former member of Shura council (appointed parliament). 'We can see that the influence of fluctuating oil prices on the Kingdom's public spending and development plans has noticeably receded,' he added. Citing government data, Buhlaiga said non-oil revenues nearly tripled from around SAR 166 billion ($44 billion) in 2015, the year before Vision 2030 was launched, to SAR 503 billion ($134 billion) in 2024. 'What is re-assuring is that non-oil revenues appear on their way up to the targeted level of SAR1 trillion ($266 billion) by the end of Vision 2030,' he added. In a previous study, Jadwa expected the 2025 budget shortfall to edge up to around SAR127 billion ($33.8 billion) by the end of the year but the study was based on an average crude price of around $75 a barrel. Budget performance in the first quarter may have set the direction for the final annual result but all this depends on geo-politics and other factors that may influence prices. During the first quarter, the budget deficit leaped fourfold due to lower oil export earnings. It stood at SAR59 billion ($16 billion) against $3.3 billion a year before. Revenues fell 10 percent to SAR264 billion ($70 billion) while spending swelled by around five percent to SAR322 billion ($86 billion), the Finance Ministry said. Despite its massive overseas assets, now close to $1 trillion, Saudi Arabia has shunned withdrawal from the reserves, opting instead for borrowing. Its public debt has nearly doubled over the past seven years to reach around SAR1.3 trillion ($347 billion) at the end of March from SAR560 billion ($149 billion) at the end of 2018, the Ministry said . The debt is forecast to surge in the next two years due to a projected budget deficit, boosting its ratio to GDP to one of its highest levels of around 33.5 percent at the end of 2026 from 17.6 percent at the end of 2018, Jadwa noted. (Reporting by Nadim Kawach; Editing by Anoop Menon)
Zawya
18-03-2025
- Business
- Zawya
Saudi Arabia ups bond issuance to fund fiscal deficit
Saudi Arabia has intensified bond issuance to cover fiscal deficits, maintaining a policy of avoiding withdrawals from overseas assets to fund mega projects under Vision 2030, according to a report by Jadwa Investment. The report noted that public debt in the world's largest oil exporter increased by 166 billion Saudi riyals ($44.3 billion) in 2024, reaching SAR1,216 billion riyals ($324.3 billion) by year-end. Debt is expected to rise by another SAR127 billion ($33.86 billion) in 2025, pushing the total to SAR1,343 billion ($358.13 billion). Saudi Arabia, along with Mexico, led sovereign bond issuance in January and February 2025, according to a study by the Institute of International Finance (IIF). The IIF study highlighted that the Federal Reserve's messaging has reinforced expectations that interest rates will remain elevated for longer, limiting risk appetite for Emerging Market (EM) assets. However, investor demand for EM debt remains strong, with a preference for local currency bonds in countries with stable policy frameworks. (Writing by Nadim Kawach; Editing by Anoop Menon) (
