ARABIALINK Daily News – SAUDI ARABIA – Excerpts from International Media Reports
[Links to full articles were active on the date posted here]
Saudi Gold Reserves Over Twice Previous Estimate [Jun 21]
“Saudi Arabia’s central bank holds more than twice the amount of gold previously estimated, a shift that analysts said reflected more of an accounting adjustment than an indication the oil rich nation was veering away from its conservative reserve policy. A June report by the World Gold Council, an industry group that tracks gold bullion holdings by nations the world over, showed the Saudi Arabian Monetary Agency’s gold reserve figure climbed to 322.9 tons compared to 143 tons reported in March. The council said its gold data was ‘modified from the first quarter 2008 as a result of the adjustment of the SAMA’s gold accounts.’ Analysts said the change either signaled an accounting revision or that the kingdom, which sits atop the world’s largest proven reserves of conventional crude oil, had stepped up buying gold in 2008 as the metal’s value took a frequent beating during the global economic meltdown. The same financial downturn also pummeled the price of oil, Saudi Arabia’s chief export. Gold prices have gained steadily this year, settling Friday at a record $1,258.30 an ounce..” [Complete Report]
Canadian-Saudi Firms Plan First Ever Property Exchange [Jun 21]
“A Canadian firm has teamed up with a Saudi Arabian company to create the first global real estate securities exchange, with the first group of exchanges slated for autumn of 2012 in Dubai, Canada and London. Saudi’s International Real Estate Exchange Group (IREX) and Canada’s egX announced on Monday the establishment of IREX Group, which will create and operate a securities marketplace for listing and trading of real estate assets in the world’s key financial hubs. For its Middle East and North Africa branch, the company is looking at Dubai as a main option to set up an exchange, but is not ruling out other areas in the Gulf Arab region, Safar al-Harthi, executive chairman of the group, told reporters on the sidelines of a conference. Qatar and Bahrain are among areas being considered..” [Complete Report]
Boeing Plans to Expand Defense, Energy Services in Saudi Arabia [Jun 21]
” Boeing Co. wants to expand in Saudi Arabia by supporting defense systems, energy services and training needed by the world’s largest oil supplier. ‘We are here to support the kingdom’s defensive needs in the long run,’ Kenneth Combs, the president of Boeing Middle East, said in an interview today. ‘We are getting involved with other commercial business to expand what Boeing is doing.’ U.S. companies, including Boeing and General Electric Co., are trying to boost their presence in Saudi Arabia as the Saudi government spends $400 billion over five years to build infrastructure, increase energy production and train its citizens. In May, General Electric won a contract worth almost $300 million from Saudi Electricity Co. Boeing began providing the kingdom with military systems in 1978, when Saudi Arabia bought its first F-15 fighter jets. Now, the company employs about 200 people in the country and has ‘a very good presence on the military side,’ Combs said..” [Complete Report]
Citadel Seeks A$250m for Saudi Arabia Mine [Jun 21]
“ASX-listed Citadel Resources was looking to raise up to A$250-million through an entitlement offer to existing shareholders. Citadel said in a statement on Monday that it would use the funds raised from the rights issue for the development of its Jabal Sayid copper and gold project, in Saudi Arabia, as well as to cover corporate costs, project evaluation and exploration. The Jabal Sayid project was on track for commissioning in mid-2011, the company reported. The mine was expected produce about 57 000 t/y of copper in concentrate, and the average life-of-mine head grade through the concentrator will be 2 3% copper and about 0,3 g/t gold. Citadel is a 70% shareholder in Bariq Mining, which holds the exploitation licence that covers the Jabal Sayid project. The exploitation licence has a 30-year term and does not require any royalty payments to the Saudi Arabian government..” [Complete Report]
Saudi Ups Silo Capacity for Wheat Imports [Jun 21]
“Saudi Arabia’s grains authority plans to increase the capacity of its silos by 21 percent before the end of 2012 as the kingdom prepares for growing reliance on wheat imports. Since 2008 the desert country’s authorities have sought to save water by reducing the amount of wheat they buy from local farmers by 12.5 percent a year, abandoning a 30-year wheat cultivation plan that had helped the country cover its domestic needs. The policy has turned Saudi Arabia’s state-run Grain Silos and Flour Mills Organization (GSFMO) into one of the biggest new buyers in the international grains market. Meanwhile wheat farmers have been abandoning cultivation of the crop at a faster rate than the annual purchasing decline the authorities had targeted. Waleed Al-Khariji, GSFMO’s managing director, said Saudi Arabia’s grain silos now have a capacity of around 2.5 million tonnes. Within a month the organisation would award tenders to expand this capacity by 530,000 tonnes, Khariji told Reuters in a telephone interview..” [Complete Report]
Saudi Group to Invest $300 Million in Katsina [Jun 21]
“A group of investors from Saudi Arabia under the auspices of Foras international investors are to commit about $300million for investment in three areas of agriculture, housing and infrastructure in Katsina State. Leader of the group Mr. Salim Lalani who made the disclosure to newsmen while signing a memorandum of understanding (MOU) with the state government over the weekend said the group will deploy its expertise and resources in the state with a view to boosting the overall economic development. Mr. Lalani who disclosed their intention to spread their tentacles to other parts of the country said the conglomerate will select a pilot project, bring in seed money before inviting other stakeholders and technical people from around the globe to come and put in their resources..” [Complete Report]
