Arabian Countries with recent economic Activity:

Bahrain | Kuwait | Oman | Qatar | Saudi Arabia | UAE | Other Arab Countries

Saudi Arabia
 
With the Saudi Arabian General Investment Authority targeting to issue investment licenses for projects worth more than SR300 b this year, the country is well on its path for a fast-paced development. There were few noteworthy joint ventures planned too. And, Air Arabia’s 222% jump in net profits to Dh101m last year compared to Dh31.3m in 2005 highlighted itself.
 
Aptly aiding the flow has been the Islamic Development Bank which will open its first foreign representative office in Dubai and also is launching the USD300m International Islamic Trade Finance Corp. while the Saudi Arabian General Investment Authority joined hands with General Electric and Rakisa Holding to work out a three-phase investment cooperation plan to develop Hail Economic City.
 
Interestingly, many banks increased their paid-up capital in February.
 
The prominent ones being; Saudi Hollandi Bank which increased its paid-up capital from SR2.205bn to SR2.646b by capitalizing SR441m; National Commercial Bank-aid-up capital is to be increased from SR9b to SR15b by capitalizing SR6b from general reserves; Taiba Investment and Real Estate Development Company decided to increase its capital by 21.92% from SR1.23b to SR1.5b.
 
Joint ventures were signed while some had to be altered. Saudi International Petrochemical plans to join a multibillion-dollar project to produce petrochemicals in Saudi Arabia with Mitsui and Co. of Japan., but, Saudi Basic Industries Corporation may need to find another location for a USD5.2b petrochemical plant planned for China. On the other hand, Saudi Aramco Shell Refinery Co .signed contracts for a project to triple the capacity of the Fujian oil refinery in southern China.
 
Steel giant Arcelor Mittal has signed a joint venture agreement with the Bin Jarallah Group of companies for the design and construction of a seamless tube mill in Saudi Arabia and the Shaker Group and LG Electronics announced plans to build a manufacturing plant for air conditioners in the Kingdom.
 
It was a month for dividend announcements with many companies coming out with theirs. Few being National Commercial Bank, Riyad Bank, Saudi British Bank, Tabuk Agricultural Development Co. and Saudi Research & Marketing Group
 
Some expansions were finalized, viz., Al Ahsa Development plans to build a SR1.2b (USD320m) cement plant; Savola Group plans to start up a sugar refinery in Egypt in August and further expand its Saudi facility to meet the rising domestic and regional demand.
 
Eastern Province Cement’s net profits of SR445m in 2006, an increase of 49% against SR299m in 2005, was an important achievement for the industry.
 
Etihad Etisalat will be raising the length of highways covered by its own network to 20,000 kilometers in the whole Kingdom and it also plans to spend around USD500m expanding Pakistan's telephone network.
 
Saudi Arabia shared the limelight with the best in the sector when its Saudi Telecom Company won the award for Best Service Provider IP NGN Infrastructure of the Year at the Cisco Networkers Innovation Awards at Cannes.
 
To sum up, the corporate world of Saudi Arabia aided by favorable policies and decisions from the investment and relevant authorities is making efforts from all fronts to be a major player in the Middle East. Progress has been good and prospects better.