The Kingdom of Saudi Arabia has seen inflation increase from 1.5% in December 2023 to 1.6% in January 2024.

Price Increase:

The General Authority for Statistics (GASTAT) announced in a report that the monthly consumer price index was influenced by a 1.1% increase in prices for housing, water, electricity, gas and fuel.

The increase was mainly due to the uptick in housing and rent prices, where the market saw a 1.2% increase.

The price of refined petroleum products increased by 12% compared to last year.

This rise in the wholesale price index was driven by basic chemical prices which went up by 34%

Food and beverage prices increased by 0.3% while restaurant prices increased by 0.2% while prices for personal goods decreased by 0.5% in January compared to December.

Additionally, compared to January of 2023, housing, water, electricity, gas and other fuel prices increased by 7.8% last month.

Price decline:

The Price of furnishings, maintenance and household equipment decreased by 3.3%.

The price of clothing and footwear dropped by 4.1%.

Transport and delivery fees decreased by 1.1%.

Quotes:

Announced in the GASTAT report, “Prices for rents were the main driver of the inflation rate in January 2024 due to their high relative importance in the Saudi consumer basket with a weight of 21%”

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The Qatar Civil Aviation Authority (QCAA) has released its aviation statistics for February 2024, which show a significant increase in the number of aircraft movements and passengers.

According to the preliminary air transport data for the month, there was a 30.1 percent increase in aircraft movement compared to February 2023.

The total number of aircraft movements registered in February was 22,736, while the same period in 2023 saw a total of 17,479 flight movements.

The number of passengers also witnessed a huge surge during the month, with a 34.9 percent increase compared to February 2023.

QCAA reported that the country recorded over 4 million passengers in February, with over 3 million arrivals.

In addition, air cargo and mail showed an increase of 15.4 percent last month compared to the same period in 2023.

The air cargo and mail carried 198,639 tonnes during February 2024, as compared to 172,085 tonnes in February 2023.

The data also showed an increase of 23.8 percent in aircraft movements during January 2024 compared to the same period last year.

The region registered 23,994 flight movements in January 2024, while the same period in the previous year saw 19,377 aircraft movements.

Passengers travelling through Qatar’s Hamad International Airport also significantly increased during the month by over 27 percent compared to January 2023.

The month registered 4.5 million passengers, while last year’s data showed a total number of 3.5 million individuals arriving in Qatar.

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The Majid Al Futtaim (MAF) Group, a shopping malls and retail organization in the UAE, reported a marginal increase in its net profit to AED2.7 billion ($735 million) in 2023, up from AED2.4 billion in 2022.

The group’s revenue was impacted by a decline in the retail business due to geopolitical headwinds.

However, the group recorded a consolidated revenue increase of 1% to AED34.5 billion, with its Lifestyle vertical contributing to the growth by crossing AED1 billion for the first time.

MAF Group’s EBITDA increased by 12% to AED4.6 billion, and total assets increased to AED69.7 billion, up from AED66.1 billion in 2022.

MAF Properties was one of the key performers for the company, with revenue growing by 20% year-on-year to AED6.9 billion and EBITDA increasing by 21% to AED3.6 billion.

The growth was attributed to increased footfall and higher occupancy rates, along with growth in its Tilal Al Ghaf development.

The group’s shopping malls business witnessed tenant sales of AED30 billion, an increase in overall occupancy to 96%, and an 8% rise in footfall, to 232 million visitors.

Revenue for its entertainment vertical grew by 7% to AED1.8 billion, with the group stating that the cinemas business was recovering from delays and adjustments to its content pipeline.

This reflected positively on EBITDA, which increased by 53% to AED193 million in 2023.

The group’s retail arm, on the other hand, saw revenues decline by 4% on a restated basis to AED24.7 billion, primarily due to currency devaluations in Egypt, Pakistan, Kenya, and Lebanon.

EBITDA for the retail vertical also declined by 15% to AED1.1 billion year on year. However, at a constant currency rate, MAF added that its revenue grew by 4%, and EBITDA fell 4%.

The group’s retail digital business saw “significant growth,” with revenue increasing 17% to AED2.6 billion, contributing nearly 10% of MAF Retail’s revenues in 2023.

The group said its net debt increased to AED15 billion, primarily due to investments in working capital.

Additionally, MAF retained its “BBB” credit rating with a stable outlook from Standard & Poor’s and Fitch Ratings.

Commenting on the 2024 outlook, Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim, said, “While we are not immune to the impact of the regional macroeconomic challenges, including currency devaluation in Egypt, Lebanon, Pakistan, and Kenya, and the deeply concerning geopolitical events that are shaping market dynamics and consumer behaviors, we are confident in our ability to navigate the path ahead while delivering value to our stakeholders in 2024 and beyond.”

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Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited, announced on Wednesday that it has closed KSA Logistics Fund III for SAR1.8 billion ($500 million).

The fund was backed by a leading sovereign wealth fund from the GCC region and other major institutional investors.

Arcapita Group has already invested a significant portion of the fund in a portfolio of industrial real estate assets across the manufacturing and warehousing sectors.

The company plans to invest the rest of the fund in strategically located assets across Riyadh, Jeddah, and the Eastern Province.

Arcapita will also develop long-term off-take arrangements with tenants, by taking a built-to-suit approach.

This fund is in alignment with Arcapita’s strategy of bringing its international expertise in industrial real estate to the Kingdom’s industrial sector to support its ambitions of becoming a global logistics hub.

Hisham Al Raee, Deputy CEO of Arcapita Group, said, “Today marks an essential milestone in our strategic expansion in Saudi Arabia, the largest economy in the MENA region.

We currently manage over SAR3.8 billion ($1 billion) of industrial warehousing assets in KSA and the GCC region, and our investor base includes pension funds, sovereign wealth funds, and financial institutions.

The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which aims to attract SAR 40 billion ($10.6 billion) in investments.

We look forward to continuing to deploy our expertise in the industrial real estate sector to play a key role in transforming the Kingdom into a global logistics hub.”

Yousif Al Abdulla, Managing Director and Head of MENA Investment at Arcapita Group, has expressed his optimism towards the growth of Saudi Arabia’s industrial real estate market.

He believes that the market will experience substantial growth over the long term, driven by the significant and continued growth of e-commerce across the Kingdom and by strong government-led investment in infrastructure and the industrial sector.

Arcapita Group’s portfolio strategy will leverage opportunities presented by the National Industrial Development and Logistics Program, as well as the Kingdom’s Vision 2030 plan.

Arcapita Group’s management team has managed more than SAR24.3 billion ($6.5 billion) in industrial and logistics real estate transactions globally, including over SAR5.6 billion ($1.5 billion) in the GCC region, over the past 25 years. Furthermore, Arcapita Group has a strong track record of investing in the Kingdom, with nearly SAR1.5 billion ($400 million) in investments over the past 10 years.

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According to the Sovereign Wealth Fund Institute, the Public Investment Fund (PIF) of Saudi Arabia has seen a significant increase in its total assets, reaching $940.26 billion after a surge of $163.6 billion.

This growth can be attributed to Saudi Arabia’s decision to transfer an 8% stake in oil giant Aramco to the portfolio companies of the PIF. As a result, the PIF has risen to become the fifth-largest Sovereign Wealth Fund worldwide.

The value of the stake transferred was estimated at $163.6 billion based on Aramco’s market capitalization, according to LSEG data.

The PIF directly owns a 4% stake in Aramco, which was transferred in 2022, and an additional 4% indirectly, which was transferred last year to its wholly owned unit Sanabil Investments.

The four largest Sovereign Wealth Funds globally are the Norway Government Pension Fund Global ($1.65 trillion), China Investment Corporation ($1.35 trillion), SAFE Investment Company ($1.09 trillion), and Abu Dhabi Investment Authority ($993 billion).

Following this latest transfer, the state now holds an 82.186% stake in Aramco.

About Saudi Aramco outside of the PIF transfer:

Saudi Aramco, based in Dhahran, Saudi Arabia, is the world’s largest oil producer. The company is primarily state-owned and has been officially named the Saudi Arabian Oil Company. It is considered the world’s most profitable company, surpassing even tech giants such as Apple (AAPL) and Alphabet’s Google (GOOGL).

In 1933, the Saudi Arabian government and the Standard Oil Company of California signed a concession agreement, which led to the establishment of Saudi Aramco. The company started drilling operations soon after and began commercial oil production in 1938.

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Dubai International Boat Show 2024:

The event focuses on showcasing and displaying boats to encourage sales of marine shipyards.

Marking this as the event’s 30^th year, it will feature over 200 boats and 1,000 brands from the global market.

Lastly, the event will showcase environmental-friendly projects including the Dubai Reef Project.

• Location: Dubai Harbor
• Active date: February 28^th to March 3^rd

World Police Summit 2024:

Hosted by Dubai Police, the World Police Summit brings together various leading global police such as the FBI and Interpol.

The event will feature seven major conferences with 140 sessions focusing on current challenges and priorities with key speakers from the UAE such as Major General Ahmed Al Mheiri and his Excellency Nasser Ismail.

• Location: Dubai World Trade Center
• Active date: March 5^th to 7^th

Dubai International Wood and Machinery Show:

The event will display the growth of the furniture and construction market in the Middle East.

Aiming to connect suppliers and manufacturers with businesses, the only event made specifically for B2B in the wood industry.

• Location: Dubai World Trade Center
• Date: March 5^th to 7^th

Dubai Entertainment, Amusement and Leisure Exhibition:

The event has been shaping the entertainment business in the Middle East for 30 years, in 2024 (DEAL) will host people from all around the world including the USA, Africa, Asia and the Mediterranean.

Visitors can try out Leisure experiences such as Virtual Reality, 9D Park rides, 12D cinemas and arcades.

• Location: Dubai World Trade Center:
• Date: March 5^th to 7^th

Global Women Leaders Conference:

Returning for its 26^th year, the event is organized by Datamatrix with other global partners, it aims to encourage emerging female figures and instill leadership skills.

The event is planned in a way to coincide with the international women’s day.

• Location: Sheraton Grand Hotel
• Date: March 6^th to 8^th 

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Ford Middle East announced increased sales which surged by 63% compared to 2022 numbers across the region.

The UAE is one of the biggest markets for Ford in the region with vehicles such as:

Taurus, F-150, Territory and Explorer are the most purchased ones, with Ford Territory taking the number one spot in Ford’s collection as the second bestselling vehicle in the Middle East.

The Middle East has 40-plus vehicles that fall in the Small-SUV category, which makes it a highly competitive scene.

Ravi Ravichandran, President of Ford Middle East said “In many ways, 2023 was a milestone year for Ford in the Middle East,” “This is not the result of one year, but the efforts made over two.”

“we developed a strong strategy for our product offerings, working hand in glove with our distributor partners and taking care of our team, all of which contributed to our record sales across the region.

“Last year saw tremendous economic growth in the UAE, and we saw this reflected in the automotive sector’s strong overall growth, “with an estimated 3.5% rise in real GDP – predicted to reach 4% in 2024 – we were privileged to witness the UAE’s success firsthand. At Ford” he added.

“With an estimated 3.5% rise in real GDP – predicted to reach 4% in 2024 – we were privileged to witness the UAE’s success firsthand. He announced.

Saudi Arabia was another destination in the Middle East that the company sale reported increases in, with retail figures increasing by 77% since 2022.

The Data has been collected from the Automotive Manufacturers Business Group (AMBG) in the Middle East.

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Lucid Motors Group is planning to produce nearly 5,000 electric cars per year at its plant in the Western Red Sea port of Saudi Arabia according to its Marketing and communication vice president.

He added that “We will soon launch the second production phase at the plant in Jeddah, with a capacity of 5,000 assembled cars in 2024,”

Firas Kandalaft, Marketing Director of Lucid Motors in the Middle East told the Saudi daily Aliqtisadia at the weekend that the Company has produced mainly car parts and assembled a small number of the Lucid vehicles since it launched its first plant outside the US in the King Abdullah Economic City in 2023.

“We will soon launch the second production phase at the plant in Jeddah, with a capacity of 5,000 assembled cars in 2024,” he announced.

After launching its first international manufacturing facility in Jeddah in 2023, Lucid Motors Vice President in Saudi Arabia, Faisal Sultan said that the plant produced nearly 50 cars in the first week of the plant’s operation.

Following the opening of their Jeddah facility, CEO and CTO of Lucid Group, Peter Rawlinson said

We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy,”

He added “As Saudi charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain.

Lucid Motors is aiming to produce an estimated number of 155,000 vehicles per year is Saudi Arabia

Lucid Motors Group is an American manufacturer of electric spots and luxury cars, headquartered in California, the company was founded in 2007.

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