The Saudi economy is witnessing continuous growth in both the public and private sectors. The indicators are further enhanced through public shareholding companies listed in the Saudi Stock Exchange (Tadawul), to expand new investments, establish and implement projects on the ground, inject more liquidity, that are in line with the Kingdom's Vision 2030 and the National Transition Program.
The Financial Reports Unit today highlights the public shareholding companies listed in the Saudi market, which are required by the regulations and laws of the Capital Market Authority and Tadawul to disclose and transparency about their new projects. Four companies, including within less than four months and specifically since the beginning of the year 2018, revealed eight new projects, the total cost of about 1.152 billion riyals.
Two renewable energy plants
Al Yamamah Steel Industries (Al Yamamah Steel) won the lead in terms of timing in the approval of its board of directors for the implementation of the renewable energy systems project at the end of January.
The start of the implementation procedures for two projects representing two new factories valued at 260 million riyals. The first is the project of manufacturing steel systems for solar energy production systems. And the second is the project of manufacturing steel systems for wind energy systems.
The company explained that the financing of these investments will depend on self-financing, the provision of financing from the Industrial Development Fund, and borrowing from local banks.
Al Yamamah Steel expects to complete the procedures related to detailed engineering studies, and financing arrangements during the second quarter of this year.
Two projects for expanding two hospitals
Dallah Health Services Company (Dallah Healthcare) signed two contracts for the first two projects to expand Dallah Al-Nakheel Hospital and the other to operate Dallah Namar Hospital.
The company signed the contract of finishing works and electrical and mechanical works for the Western expansion of Dallah Al-Nakheel Hospital at the end of last January, with a value of 130.725 million riyals in order to increase the capacity of the hospital by about 150 beds and 30 clinics.
The company expects the contractor, Yusuf Maroun, to finish the contract in mid-June next year, and have a positive impact on the financial results at the end of 2019.
Dallah Healthcare plans to finance the cost of the contract itself from the company's operations as well as through long-term bank facilities.
At the end of March, the Ministry of Health approved the operation of the first phase of Dallah Namar Hospital, and the company set the date of actual operation on April 8. The hospital is located southwest of Riyadh and currently has a capacity of 150 beds.
The company said that the total capacity of the hospital is estimated at about 400 beds, and it is considering raising them in the future. It expects to incur pre-operating expenses and start operating in 2018 during the same year.
3 healthcare projects
In mid-February, Middle East Healthcare Company (Saudi German Hospital) opened an outpatient clinic (Beverly) at a cost of 22 million riyals.
The company explained that the capacity of the complex reaches 21 clinics in various disciplines, and is located in the neighborhood of Khalidiyah in the city of Jeddah. It is expected to have a positive financial impact with the gradual development of operations.
A month later, the company announced the award of two other projects on the establishment of International Hospitals Ltd.. The first is the construction of the outpatient tower and the second is the increase in the clinical capacity of the hypnotherapy sections of the Saudi German Hospital in Riyadh.
The company also pointed out that the outpatient clinics tower would reach 76 clinics. The expansion of the hypnotherapy sections of the Saudi German Hospital will add 147 beds, at a total cost of SR 193.66 million.
The company expected the completion of the projects in three years from the start of work. It noted that the financing of the two projects would be through borrowing from banks in addition to self-financing from the company.
Real estate development agreement
The only real estate project since the beginning of this year was the signing of the Jazan Development Co. (JAZADCO) for the participation and development of its master plan in Jazan with the Salman Bin Saedan Real Estate Group.
The total area of the project is 98,000 square meters, at a total investment cost of 546 million riyals. It aims to develop and build housing units in accordance with the requirements of the Ministry of Housing and marketing them to the beneficiaries through the establishment and structuring of licensed investment real estate funds.
The project cost is estimated at 73.5 million riyals, and its carrying value exceeds 27.6 million riyals by 1.66 percent.
The company estimated the investment returns of the project at 33 million riyals. It expected implementation of investment to be complete within three years.
