Finance & Capital Market

Rakez nets record growth in 2024, welcomes 13,000 new firms

Ras Al Khaimah Economic Zone (Rakez) has announced a significant milestone in 2024, with 13,141 new companies joining its thriving ecosystem. 
 
This represents an impressive 66% growth in new registrations compared to 2023. With this achievement, Rakez is now home to nearly 30,000 multinational companies, reinforcing its status as a leading global hub for business excellence.
 
The growth in 2024 has been driven primarily by commercial activities, including general trading, e-commerce, and related businesses, which together accounted for 53% of the new company registrations.
 
This reinforces Rakez’s reputation as a thriving hub for traders and businesses seeking strategic access to regional and global markets.
 
Consultancy followed as a key contributor at 24%, with other notable sectors including media and marketing services, wholesale trading, and manufacturing, among many others. This sectoral diversity highlights Rakez’s ability to cater to the evolving demands of businesses across a wide range of industries, further solidifying its role as a global business enabler.
 
“Over the past five years, Rakez has welcomed double the number of companies to its flourishing business community, reflecting the growing appeal of Ras Al Khaimah as a hub for innovation and global trade,” said Ramy Jallad, Group CEO of Rakez. “This growth highlights our commitment to offering tailored support, streamlined services, and an enabling environment where businesses can expand and reach their full potential. As our community continues to grow, we remain focused on fostering long-term success and unlocking new opportunities for businesses of all sizes and sectors.”
 
Entrepreneurs and companies from around the world contributed to this growth, with India leading the way as the top source of new businesses. This reflects Rakez’s ongoing efforts to strengthen ties with India through strategic initiatives, such as fostering trade relations and leveraging the UAE-India Comprehensive Economic Partnership Agreement (CEPA).

Finance & Capital Market

PIF-backed mega developer Umm Al Qura set for Saudi IPO

Umm Al Qura for Development and Construction, the owner, developer and operator of Masar Destination, one of the largest redevelopment projects in Makkah, today (February 2) announced its plan to proceed with an initial public offering (IPO) and also the listing of its ordinary shares on the Saudi stock exchange Tadawul’s Main Market.
 
On December 24 last year, Umm Al Qura won approval from the Saudi Capital Market Authority (CMA) for registration of its share capital and the offering of 130,786,142 shares, representing 9.09% of the company’s stake post capital increase, by way of the issuance of 130,786,142 new shares through a capital increase.
 
The company also received the Saudi Exchange’s conditional approval on December 08, 2024 to list on the Tadawul.
 
Umm Al Qura said the net proceeds of the IPO will be utilised to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures.
 
In addition to this, the fund will be used for other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing. 
 
Umm Al Qura was established in 2012 for undertaking the development of King Abdulaziz Road in Makkah which originally contained six unplanned settlements neighbourhoods; the project site area is known as Masar Destination. 
 
Its current majority shareholders comprise state-owned entities and Saudi private sector including the Saudi sovereign wealth fund PIF, the General Organization for Social Insurance (GOSI) and Dallah Al Baraka Holding.
 
Masar is one of the largest redevelopment projects in the region, located directly on Makkah's western border. It stretches for more than 3.5km from the 3rd Ring Road intersection with Prince Mohammed bin Salman bin Abdulaziz Road (formerly Umm Alqura Road) to 550m away from Al Haram’s King Fahad Gate, said the company in a statement.
 
It consists of 205 investment plots, with a total area of approximately 641,000 sq m and a total Gross Floor Area (GFA) of 5.7 million sq m, comprising various uses, which the company seeks to transform into a global multi-use destination to serve the residents and visitors of Makkah, it stated.
 
*Serviced apartments represent 31.6% of the total GFA, consisting of 18,000 keys and a total GFA of 1.8 million sq m that will be distributed across the length of the project.
 
*Hotels represent 31.1% of the total floor area, consisting of 23,000 keys and a total GFA of 1.8 million sqm.
*Residential units represent 29.3% of the total gross floor area, consisting of 9,000 units to be developed and sold.
*Retail elements constitute 5.7% of the total GFA, consisting of 330,000 sqm. This includes a shopping mall on the western side of the project, in addition to two retail centres on the Eastern side. Outlets, stores, and stalls will also be distributed along the pedestrian walkway.
 
According to Umm Al Qura, Masar also includes various other elements such as a hospital, a large mosque at the centre of the site as well as office spaces and other complementary services.
 
Chairman Abdullah Saleh Kamel said: "Today marks a significant milestone as we announce our intention to list on the Saudi Exchange’s Main Market. I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors."
 
"Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of Masar, a landmark project in the Kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximize shareholder value," he added.
 
Upon completion, Masar Destination will boast more than 50,000 hospitality and residential units. The total estimated development value is approximately SAR100 billion ($26.6 billion).
 
CEO Yasser Abdulaziz Abu Ateek said: "Umm Al Qura was established to enhance the urban and investment landscape of Makkah through Masar. As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah."
 
"Our IPO is a vote of confidence in our track record of growth to date, as well as our commitment to building state of the art urban destinations that create unparalleled experiences," he added.
 
For the Saudi listing, Umm Al Qura has signed up Albilad Capital as joint financial advisor, lead manager, bookrunner and underwriter; GIB Capital and AlRajhi Capital as joint fnancial advisors, bookrunners and underwriters as well as Alinma Invest as joint bookrunner and underwriter.
 
Lazard has taken up the role of company advisor and FGS Global that of media and communications advisor.-TradeArabia News Service

Finance & Capital Market

Non-oil drives Saudi economic growth

Saudi Arabia recorded real GDP growth of 1.3% in 2024 according to an estimate from the General Authority for Statistics. 
 
With oil production curbs still firmly in place through 2024, growth was driven by a 4.3% expansion in non-oil activity (beating Emirates NBD's predicted 4%) while oil GDP shrank by 4.5% (greater than forecast 4% contraction), said an Emirates NBD report.
 
Government activities recorded 2.6% growth. 
 
For 2025, the report forecast headline GDP growth of 3.3% with both the oil and non-oil sectors driving the expansion.
 
There was positive momentum through the end of the year as Q4 GDP growth hit 4.4% y/y, the strongest pace of growth since Q4 2022. A major contributing factor to this was the return of oil GDP to growth for the first time since Q1 2023 as it expanded 3.4% y/y (Q3 growth was flat). There were no additional Opec+ oil production curbs implemented through the period, meaning that those introduced 12 months earlier started to pass through into the base and no longer exert a drag on headline output. 
 
While oil production in Q4 was down by a moderate 0.6% y/y at 8.95mn b/d in Q4, from 9.00m b/d in Q4 2023, other activity related to hydrocarbons likely provided the positive growth. Condensates and natural gas production is not covered by the Opec+ agreement, while investment in the hydrocarbons sector is also likely powering growth, the Emirates NBD report said.
 
In 2025, the report forecast that oil GDP will return to growth at 2.5% as oil production curbs start to be eased later in the year. It forecast oil production to average 9.2m b/d in 2025. Investment in the hydrocarbons sector will likely also underpin activity, for instance the development of the Jafurah Gas Field which is expected to come online in full in 2027 and will further boost natural gas production in the kingdom thereafter.
 
Non-oil sector picking up speed
The non-oil sector also ended the year strongly, expanding 4.6% y/y in Q4. This is in keeping with the indication given by the Riyad Bank PMI survey for Saudi Arabia, which strengthened to 58.1 in the final quarter, from 55.2 in the previous three-month period. 
 
"Respondents to the PMI surveys have cited a strong flow of new pipeline work that supported new activity and we expect this to remain the case through 2025: our forecast non-oil GDP growth stands at 4.5%," said the report. 
 
There are more than $421 billion worth of projects currently underway in Saudi Arabia with a total $146 billion awarded in 2024. Private household consumption will also remain a growth driver through the year as a growing population, rising employment, and lower interest rates should all prove supportive, it said. 
 
Over January to November 2024, monthly consumer spending in Saudi Arabia averaged y/y growth of 7.1%, far outpacing the average inflation rate over the same period (1.7% y/y) and indicative of robust real growth. - TradeArabia News Service