Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Foreign investment in Saudi Arabia

10/24/2018 | 12:32pm EST

DUBAI (Reuters) - Scandal surrounding the killing of Saudi journalist Jamal Khashoggi has shrunk the attendance of senior executives from multinational companies at this week's Future Investment Initiative conference in Riyadh.

But the Gulf's largest economy remains an important market for global businesses, ranging from oil majors to leading banks.

More than $50 billion in deals were signed at the conference on Tuesday, including a deal between Total and Saudi Aramco [IPO-ARMO.SE] to create a retail network in the kingdom.

Following are some of the major existing investments by Western companies in Saudi Arabia:

**In 2008, Aramco and Total announced the Jubail Satorp refinery joint venture, which produces 440,000 barrels per day. Total has a 37.5 percent stake. In April, Aramco and Total signed a $5 billion deal to build a giant petrochemical complex at the refinery.

**In 2009, U.S. aluminium giant Alcoa Corp formed a joint venture with Saudi Arabia's state-owned Saudi Arabian Mining Co (Ma'aden), setting up a $10.8 billion aluminium complex. Alcoa holds 25.1 percent of the project.

**Dow Chemical Co and Aramco announced the formation of the $20 billion joint venture Sadara chemical complex in 2011. In August, Dow agreed to up its share of the project to 50 percent from 35 percent.

**In 2013, U.S. fertilizer company Mosaic Co entered into a joint venture with Ma'aden and Saudi Basic Industries Corp (SABIC) to form a $7 billion complex to make phosphate fertilizer and other products. Mosaic holds 25 percent of the project.

**In May 2017, GE signed $15 billion in business deals with Saudi Arabia, in a range of industries including oil and gas, mining, and healthcare.

**In May 2017, National Oilwell Varco announced a $6 billion joint venture with Aramco to manufacture drilling rigs and equipment.

**In August 2018, Aramco created a gasification and power joint venture with Air Products, an American company that will own a 55 percent share. The joint venture will purchase $8 billion worth of assets from Aramco.

**British banks HSBC Holdings and Royal Bank of Scotland (RBS) both have banking interests in Saudi Arabia. Saudi British Bank (SABB) is 40 percent owned by HSBC and Alawwal Bank is 40 percent owned by a consortium that includes RBS. The two Saudi banks are merging to create the kingdom's third-biggest lender with a market capitalisation of about $17.2 billion.

**Canada-headquartered Barrick Gold Corp has a joint venture with Ma'aden. Both are 50/50 joint partners in the Jabal Sayid copper mine in Saudi Arabia.

**Raytheon has a more than 50 year history in Saudi Arabia and has signed deals with Saudi Arabia Military Industries covering local manufacturing in precision munitions, air and missile defence and cyber defence.

**Six Flags Entertainment Corp is planning to expand into Saudi Arabia with three parks, each costing between $300 and $500 million to build, its executive chairman told Reuters in late 2016.

**Siemens last year won an order worth around $400 million to deliver five gas turbines for a combined heat and power plant being built in Saudi Arabia. Siemens' partners in the kingdom include Saudi Aramco, SABIC and Saudi Electricity Co.

**Italian oil services company Saipem has a framework agreement with Saudi Aramco to 2021 and has a fabrication yard in Saudi Arabia. In July it was awarded a procurement and construction contract for the development of the Haradh gas plant in the east of the country.

(Compiled by Nafisa Eltahir and Tom Arnold; editing by John Stonestreet)


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
ALCOA CORPORATION -2.16% 20.37 Delayed Quote.-5.30%
BARRICK GOLD CORPORATION 1.51% 30.25 Delayed Quote.23.55%
DEERE & COMPANY -1.94% 256.43 Delayed Quote.48.00%
E.ON SE 0.26% 9.174 Delayed Quote.-3.86%
GENERAL ELECTRIC COMPANY 0.48% 10.5 Delayed Quote.-5.91%
HSBC HOLDINGS PLC 1.52% 404.1 Delayed Quote.-32.78%
LETS HOLDINGS GROUP CO., LTD. 1.30% 9.36 End-of-day quote.54.97%
LINE CORPORATION 0.19% 5380 End-of-day quote.0.56%
LOOK HOLDINGS INCORPORATED 2.71% 1063 End-of-day quote.-15.10%
NATIONAL OILWELL VARCO, INC. -2.86% 13.6 Delayed Quote.-45.71%
NATWEST GROUP PLC -0.78% 159.4487 Delayed Quote.-33.35%
SAIPEM S.P.A. -0.19% 2.115 Delayed Quote.-51.47%
SAUDI ARABIAN MINING COMPANY (MA'ADEN) -0.60% 41.2 End-of-day quote.-7.21%
SAUDI ARABIAN OIL COMPANY 0.56% 35.9 End-of-day quote.1.84%
SAUDI BASIC INDUSTRIES CORPORATION -0.82% 96.8 End-of-day quote.3.09%
SAUDI ELECTRICITY COMPANY 1.71% 21.4 End-of-day quote.5.84%
SIEMENS LTD -0.87% 1505.25 Delayed Quote.1.34%
SIX FLAGS ENTERTAINMENT CORPORATION -1.07% 32.51 Delayed Quote.-27.93%
THE GLOBAL LTD. 12.81% 273 End-of-day quote.-42.04%
THE MOSAIC COMPANY -2.63% 22.57 Delayed Quote.4.30%
THE SAUDI BRITISH BANK 0.74% 27.1 End-of-day quote.-21.90%
TOTAL SE -0.76% 37.165 Real-time Quote.-24.05%
Latest news "Economy & Forex"
03:20aSpain retail sales fall 2.7% in October from October 2019
RE
03:18aThailand to see more visitors, 'signal' for reopening - tourism chief
RE
03:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
03:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
03:15aOil drops as supply concerns, vaccine doubts sap rally
RE
03:10aECB's Weidmann warns digital euro would pose challenge, take time
RE
03:09aADVANCED SHARE REGISTRY : Market News 27 NOV 2020
PU
03:06aGermany to double net borrowing for 2021 to fight COVID
RE
03:04aClashes erupt as farmers blocked from entering Delhi to protest over new law
RE
03:02aTIMELINE-Japan's electricity market reforms
RE
Latest news "Economy & Forex"