Aramco raises $3bn via dual-tranche sukuk /node/2615781/business-economy
Aramco raises $3bn via dual-tranche sukuk
According to the company’s press release, the offering attracted robust demand from top-tier institutional investors. Shutterstock
Short Url
https://arab.news/pydyv
Updated 7 min 46 sec ago
MOHAMMED AL-KINANI
Aramco raises $3bn via dual-tranche sukuk
Updated 7 min 46 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi energy giant Aramco has raised $3 billion through a dual-tranche sukuk issuance, highlighting strong global investor confidence and reinforcing the Kingdom’s standing in international Islamic finance.
Priced on Sept. 10, the securities were listed on the London Stock Exchange, the company said. Proceeds will be used for general corporate purposes, supporting Aramco’s strategy to maintain financial flexibility and operational efficiency.
The new sukuk tranches comprise $1.5 billion maturing in 2030 with a profit rate of 4.125 percent per annum, and $1.5 billion maturing in 2035 at 4.625 percent per annum.
The issuance follows a similar $3 billion two-tranche sukuk in October, which was six times oversubscribed. That sale included a $1.5 billion tranche maturing in 2029 at 4.25 percent and another $1.5 billion tranche due in 2034 at 4.75 percent.
Ziad Al-Murshed, Aramco executive vice president of finance and CFO, said: “We believe this successful issuance reflects the confidence of global investors in Aramco’s exceptional financial resilience and robust balance sheet, as we continue to optimize our capital structure.”
He added: “Our ability to price the offering with a negative new issue premium across both tranches demonstrates Aramco’s unique credit proposition and standing within international capital markets.”
According to the company’s press release, the offering attracted robust demand from top-tier institutional investors.
Rising demand for luxury tourism fueling success of Egypt’s El Gouna, resort CEO says
Updated 16 sec ago
Donia Diaaeddine
CAIRO: Egypt’s tourism sector is entering a new era of growth, driven by rising demand for luxury real estate and diversified experiences, according to the CEO of Red Sea destination El Gouna.
In an interview with Arab News, Mohamed Amer said the resort has become a model for integrated, year-round tourism that is helping the country move beyond its traditional seasonal patterns.
Egypt’s inbound tourism rose 22 percent in the first seven months of 2024 compared with the same period a year earlier, reaching 15.78 million visitors for the year — the highest on record and slightly above 15.7 million in 2023.
The government is targeting 30 million tourists annually by 2028. In June, Prime Minister Mostafa Madbouly highlighted efforts to open new opportunities for foreign investment in tourism to help reach that goal.
“Egypt’s tourism sector is in a very strong phase currently, with a steady expansion in the country’s potential, following the demand for luxury real estate and appetite for leisurely travel,” he said. “Destinations like El Gouna are part of that shift.”
Home to more than 25,000 residents from over 50 nationalities and welcoming over 1 million visitors annually, El Gouna has developed into one of Egypt’s most prominent integrated towns.
The resort currently has 18 hotels totaling 2,800 rooms, with three new luxury properties planned over the next five years that will add 600 –700 rooms.
Amer said the resort’s accessibility is part of its appeal, with short flights from regional hubs such as Dubai, Riyadh, and Jeddah making it attractive to Gulf travelers.
Mohamed Amer. Supplied
Citizens from Gulf Cooperation Council countries can enter Egypt visa-free, while other international guests benefit from electronic or visa-on-arrival options. This, he noted, positions El Gouna as “a natural extension for regional tourism.”
On the investment front, El Gouna is the only destination in Egypt where real estate transactions are conducted in US dollars, a model Amer said strengthens international investor confidence.
“This not only offers protection but also ensures greater financial security for international buyers,” he said.
The town has expanded its infrastructure to support residents and visitors, with a fully equipped hospital already operating and specialized clinics under development.
El Gouna also holds the distinction of being the Middle East’s first recipient of the UN “Green Town Award,” reflecting its sustainability commitments, which include generating 16 percent of electricity from solar power, recycling 75 percent of waste, and reusing 100 percent of wastewater.
“Sustainability is not just a feature here — it’s part of our DNA,” Amer said.
On the residential side, El Gouna is preparing new projects such as Highland by North Bay, Tuban WaterFalls, and Fanadir Shores, a development with marina and sea views. Another project is set to be announced in November.
Amer said demand is anchored in lifestyle rather than speculation, ensuring resilience in property values. “Buyers want to be part of a vibrant community with year-round services, signature events, and strong sustainability standards,” he said.
Cultural and lifestyle programming also play a role in the town’s positioning. International events such as the El Gouna Film Festival, squash tournaments, and new platforms in fashion and culinary arts have raised its profile globally.
The festival alone draws more than 2,000 visitors annually, pushing hotel occupancy to full capacity and boosting activity across retail, dining, and services. “Such events stimulate economic activity and generate international exposure for Egypt,” Amer said.
Looking ahead, Amer said El Gouna will continue to evolve as both a tourism and economic hub, guided by a 35-year master plan that envisions gradual expansion across its 48 percent developed area.
“El Gouna is not just expanding physically but evolving into a dynamic, multi-faceted destination that combines luxury, sustainability, and innovation,” he said. “It is contributing directly to Egypt’s tourism growth story while offering a model for sustainable urban development on the Red Sea.”
GCC central banks cut interest rates by 25 bps following Fed’s move
Updated 27 min 58 sec ago
REEM WALID
RIYADH: Central banks in Gulf Cooperation Council countries cut interest rates by 25 basis points after the US Federal Reserve lowered its benchmark range to 4 percent to 4.25 percent, its first reduction since December.
The Saudi Central Bank, also known as SAMA, reduced its repurchase agreement rate to 4.75 percent and its reverse repo to 4.25 percent. The UAE cut the base rate on overnight deposits from 4.40 percent to 4.15 percent, while Bahrain lowered its overnight deposit rate to 4.75 percent from 5 percent.
With most regional currencies pegged to the US dollar, policymakers across the Gulf mirrored the Fed’s decision.
Vijay Valecha, chief investment officer at Century Financial, said: “Although rate cuts generally reduce returns from traditional investments like fixed deposits, they may encourage gains in the stock market, especially for growth stocks and dividend-paying companies.”
He added: “Dovish expectations have put additional pressure on the US dollar, pushing it below 97. A weaker dollar indirectly supports the UAE’s tourism sector by making travel more affordable for visitors from non-dollar regions. However, businesses in the UAE that rely on imports could face increased costs, as a softer dollar typically raises import prices.”
Repo rates, which represent a form of short-term borrowing primarily involving government securities, underscore the close economic ties and financial dynamics between the GCC countries and the global economic landscape, particularly the US.
Qatar Central Bank reduced the deposit rate by 25 basis points to 4.35 percent, cut the lending rate by 25 basis points to 4.85 percent, and lowered the repo rate by 25 basis points to 4.60 percent.
The Central Bank of Oman also decreased its repo rate for local banks by 25 basis points to 4.75 percent.
The Central Bank of Kuwait cut the discount rate by a quarter percentage point from 4 percent to 3.75 percent, while Jordan’s central bank also mirrored the Fed’s move.
The rate cut is expected to boost economic activity by reducing financing costs, thereby increasing investment and consumption.
Its objective is to maintain a balance between fostering sustainable growth across various economic sectors and reinforcing the financial and monetary stability of regulated banking units.
The Fed’s moves come as recent data show US growth cooling in the first half of the year, with hiring slowing, unemployment edging up, and inflation remaining elevated.
In a statement, the Fed said it would continue to assess incoming data, the economic outlook and risks before adjusting rates further, while remaining committed to bringing inflation back to 2 percent.
“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” it added.
The statement further indicated that the committee will base its evaluations on a broad set of data, including labor market trends, inflation dynamics and expectations, as well as financial and global economic developments.
RIYADH: Ƶ’s cybersecurity sector added SR18.5 billion ($4.9 billion) to the Kingdom’s economy in 2024, marking a 19 percent jump from the previous year, official data showed.
In its latest report, the National Cybersecurity Authority said the sector represented 0.40 percent of the country’s total gross domestic product and 0.71 percent of non-oil activities.
The study noted that the size of the Kingdom’s cybersecurity market — representing total spending by public and private entities — reached SR15.2 billion in 2024, up 14 percent year on year.
Ensuring cybersecurity is a key priority for Ƶ as it seeks to position itself as a regional hub for technology and innovation under Vision 2030.
This comes as Ƶ maintained its position as the top-ranked country in global cybersecurity for 2025, according to the International Institute for Management Development’s World Competitiveness Yearbook.
In a further endorsement of its international standing, Ƶ was designated a Tier 1 “role-modeling” nation in the Global Cybersecurity Index 2024 published by the UN’s International Telecommunication Union.
“This sustained growth (in cybersecurity market) is driven in part by NCA’s ongoing initiatives to enhance the security and resilience of the Saudi cyberspace, which have elevated awareness, regulatory compliance, and investment across the various demand segments,” NCA said in its latest report.
The authoruty, the national reference point for cybersecurity, is tasked with strengthening digital resilience by protecting critical infrastructure, key sectors, and government services. It also sets policies, frameworks, and standards while promoting innovation, investment, and sector growth.
According to the data, public sector spending stood at SR4.8 billion, or 32 percent of the market, while private sector outlays reached SR10.3 billion, accounting for 68 percent.
Expenditure on cybersecurity products made up 51 percent of the total market at SR7.7 billion, while services accounted for 49 percent at SR7.5 billion.
The authority noted that 420 providers were registered in the sector, with 98 percent based in Riyadh, Makkah or the Eastern Province, underscoring the concentration of demand and supply in the country’s main business hubs.
The report also showed that Ƶ’s cybersecurity workforce surpassed 21,000 professionals in 2024, a 9 percent rise from the year before. Women made up 32 percent of the workforce, exceeding the global average of 24 percent.
“This progress is attributed to various programs and initiatives aimed at developing current and future cybersecurity skills and meeting national needs — ultimately supporting the Kingdom’s economic and social development,” said NCA.
In a column for Arab News in August, Majid Rafizadeh, a Harvard-educated Iranian American political scientist, called Ƶ’s cybersecurity model a “blueprint for the future,” adding that the Kingdom’s approach to cybersecurity “stands out so prominently in 2025.”
“The Kingdom has built one of the most advanced, comprehensive, and forward-looking cybersecurity frameworks in the world. It has not only recognized the importance of cybersecurity but has acted decisively, creating institutions, strategies, and educational pipelines that are now viewed as models for other nations to follow,” he said.
Saudi economy minister holds talks with EU officials
Updated 17 September 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi-EU ties have been further strengthened after the Kingdom’s minister of economy and planning held a range of high-level meetings with leading figures from the institution.
Faisal Al-Ibrahim met European Parliament Vice President Pina Picierno in Brussels on Sept. 17 to discuss enhancing collaboration between the Kingdom and the EU on key areas of mutual interest, according to the Saudi Press Agency.
The minister also held talks with the European Commissioner for the Mediterranean Dubravka Suica aimed at boosting cooperation across several sectors and reviewing developments of mutual interest, and with EU Special Representative for the Gulf Luigi Di Maio to strengthen bilateral economic and trade relations.
A day earlier, Al-Ibrahim met European Commissioner for Economy and Productivity Valdis Dombrovskis to discuss bilateral cooperation within the framework of Ƶ’s Vision 2030 and recent global economic developments.
In July, the EU announced a €42.5 billion ($46.4 billion) commitment to renewable energy, border security, and socio-economic development across the Middle East and North Africa from 2028.
The funding, aimed at fostering stability and mutual prosperity, opens further opportunities for Saudi-EU collaboration, particularly in renewable energy and sustainable development initiatives aligned with Vision 2030.
In October, the first EU-Gulf Cooperation Council Summit was held in Brussels, marking a historic moment with Crown Prince Mohammed bin Salman attending.
In May 2024, the European Chamber of Commerce in Ƶ was launched, the first of its kind in the Middle East and North Africa region.
Closing Bell: Saudi main market climbs 1.25% as Aramco shares rise
Updated 17 September 2025
Nadin Hassan
RIYADH: Ƶ’s Tadawul All Share Index ended higher on Wednesday, increasing 131.66 points, or 1.25 percent, to close at 10,650.39.
Total trading turnover reached SR4.64 billion ($1.23 billion). A total of 205 stocks advanced, while 43 declined.
The MSCI Tadawul 30 Index gained 14.30 points, or 1.04 percent, to finish at 1,383.42
The Kingdom’s parallel market, Nomu, however gained 100.63 points, or 0.4 percent, to settle at 25,123.21, with 41 gainers against 44 fallers.
Shares of Saudi Aramco recorded their sharpest increase in two years, rising by 3.21 percent to close at SR24.10 and lifting the Tadawul All Share Index above the 10,600-point mark.
Among the top performers, National Gypsum Co. surged 9.97 percent to SR20.29, while National Metal Manufacturing and Casting Co. climbed 8.86 percent to SR17.7.
Arabian Internet and Communications Services Co. rose 5.44 percent to SR248.20, Derayah Financial Co. gained 4.66 percent to SR26.48, and BinDawood Holding Co. advanced 4.49 percent to SR5.59.
Among those to see decreases, Saudi Cable Co. dropped 2.47 percent to SR138.20, while Leejam Sports Co. fell 1.29 percent to SR138.20.
