黑料社区

Moody鈥檚 upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support

Moody鈥檚 upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support
Moody鈥檚 upgraded the Kingdom鈥檚 credit rating to Aa3 with a stable outlook in November.听Shutterstock
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Updated 27 November 2024

Moody鈥檚 upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support

Moody鈥檚 upgrades 6 Saudi GRIs to Aa3, citing strong sovereign support

RIYADH: Moody鈥檚 has upgraded the ratings of six major government-related institutions in 黑料社区, including the Public Investment Fund, to Aa3 from A1.

The move reflects strong sovereign backing and stable credit linkages to the government.听

The agency also assigned the Aa3 rating to Saudi Aramco, Saudi Basic Industries Corp., and Saudi Electricity Co., as well as Saudi Power Procurement Co., and Saudi Telecom Co.听

Moody鈥檚 assigns an Aa3 rating to companies with high quality, low credit risk, and strong ability to repay short-term debts, providing an assessment of the creditworthiness of borrowers, including governments, corporations, and other entities that issue debt.听

鈥淭he rating action is a direct consequence of the sovereign rating action and reflects the credit linkages between the Government of 黑料社区 and each of the six entities,鈥 said Moody鈥檚.听

It added: 鈥淲hile several of these corporates benefit to varying degrees from international assets and cash flows, they all have significant credit linkages to the 黑料社区 sovereign and are exposed to the domestic environment including political, economic, regulatory and social factors.鈥澨

The strong ratings received by these firms is an indication of 黑料社区鈥檚 robust economic stability, following Moody鈥檚 upgrade of the Kingdom鈥檚 credit rating to Aa3 with a stable outlook in November.听

In May, Fitch Ratings upgraded 黑料社区鈥檚 credit rating to A+ with a stable outlook.听

PIF




File/AFP

The upgrade of PIF鈥檚 long-term issuer rating to Aa3 from A1 aligns with the Saudi government鈥檚 rating action and reflects the strong credit linkage between the sovereign wealth fund and the Kingdom, according to Moody鈥檚.听

The report also noted that PIF is expected to receive strong and extraordinary support from the Saudi government whenever needed.听

鈥淧IF is closely interlinked with the Kingdom because it is one of the main vehicles of the Kingdom to execute its Vision 2030; PIF continues to receive contributions from the Kingdom via asset transfers; and given the fund鈥檚 investment focus and concentration in domestic markets,鈥 added the US-based agency.听

According to the analysis, PIF鈥檚 rating is in line with that of the Saudi government, meaning the fund鈥檚 rating could be downgraded if the sovereign rating declines.听

In July, PIF鈥檚 consolidated financial statement revealed that the fund generated SR331 billion ($88.3 billion) in revenue in 2023 from its diverse investment portfolio, reflecting over 100 percent growth compared to 2022.听

Saudi Aramco




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The report indicated that Aramco鈥檚 rating upgrade reflects the high likelihood of extraordinary support from the government if needed.听

The US-based agency also noted that the energy company has access to nearly all of 黑料社区鈥檚 vast hydrocarbon resources and significant petrochemical operations.听

Earlier in November, Aramco reported a net profit of SR103.37 billion for the third quarter of 2024, surpassing analyst expectations, which had projected a median net income of SR101.06 billion.听

SABIC




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According to Moody鈥檚, SABIC鈥檚 rating upgrade is due to its strong reliance on the government and the high probability of receiving government support in the event of financial distress.听

The report also highlighted the company鈥檚 strong global position in the petrochemical and fertilizer markets as another key factor behind the credit rating upgrade.听

In the third quarter of this year, SABIC reported a net profit of SR1 billion, a turnaround from the net loss of SR2.87 billion in the same period last year.听

SEC

Describing SEC as the 鈥渄ominant vertically integrated electricity utility in 黑料社区,鈥 Moody鈥檚 stated that the company served over 11.23 million customers as of Sept. 30, 2024.听

鈥淪EC鈥檚 rating reflects the significant credit linkages between SEC and its ultimate shareholder, the Government of 黑料社区. All of SEC鈥檚 assets are in 黑料社区 and the company benefits from supportive government policies,鈥 said the US-based agency.听

In the third quarter of this year, SEC reported a net profit of SR4.7 billion, a 19.8 percent increase compared to the same period last year.听

SPPC

Moody鈥檚 stated that SPPC has a clear public policy mandate that aligns its interests and objectives with those of the government.听

As the sole licensed principal buyer of electricity in 黑料社区, the company has significant credit linkages with the government, which played a crucial role in the latest rating action.听

Moody鈥檚 also noted that the rating reflects SPPC鈥檚 low business risk profile, its monopoly position in the Kingdom, and its ability to maintain a strong liquidity profile despite high working capital seasonality.听

stc

According to the report, the rating upgrade of stc 鈥 the leading integrated telecommunications and ICT operator in 黑料社区 鈥 reflects the company鈥檚 strategic importance to the government, as well as the state鈥檚 high level of control through PIF.听

Moody鈥檚 added that stc generates over 90 percent of its revenue in the Kingdom and plays a key role in supporting the government鈥檚 technological and digital ambitions, a crucial goal outlined in Vision 2030.听

Affirming stc鈥檚 dominance in the Saudi market, the company reported a net profit of SR11.23 billion in the first nine months of this year, a 2 percent increase compared to the same period in 2023.


黑料社区 to sustain 4.5%鈥5.5% non-oil growth over next decade: Moody鈥檚听

黑料社区 to sustain 4.5%鈥5.5% non-oil growth over next decade: Moody鈥檚听
Updated 10 October 2025

黑料社区 to sustain 4.5%鈥5.5% non-oil growth over next decade: Moody鈥檚听

黑料社区 to sustain 4.5%鈥5.5% non-oil growth over next decade: Moody鈥檚听

RIYADH: 黑料社区 is on course to sustain non-oil sector annual growth of 4.5 percent to 5.5 percent through the next five to 10 years as its Vision 2030 diversification program gathers pace, Moody鈥檚 have forecast. 

The rating agency cited strong momentum from services, tourism, and a pipeline of mega events including the 2027 AFC Asian Cup, the 2030 World Expo, and the 2034 FIFA World Cup, all of which are expected to reinforce the Kingdom鈥檚 non-oil expansion and attract sustained private investment.  

Other rating agencies and consultancies share a similar outlook. Fitch Ratings expects 黑料社区鈥檚 non-oil growth to average around 4.5 percent through the medium term, while BMI and Strategic Gears forecast continued expansion in tourism and exports, reflecting broad confidence in the Kingdom鈥檚 Vision 2030 diversification momentum. 

This comes on the back of 黑料社区鈥檚 latest estimate, released on Sept. 30, in which the Ministry of Finance forecast real gross domestic product growth of 4.6 percent in 2026, supported by continued expansion in non-oil activities. 

The ministry鈥檚 pre-budget statement set the 2025 projection at 4.4 percent, driven by a 5 percent increase in non-oil output, underpinned by robust domestic demand, rising employment, and expanding private-sector investment. 

In its latest report, Moody鈥檚 stated: 鈥淣on-oil economic growth, particularly in the services sector, will remain robust as the large-scale projects are implemented and gradually commercialize.鈥 

The agency cautioned that progress on some flagship projects is uneven amid supply bottlenecks, engineering challenges and tighter funding conditions.  

Moody鈥檚 expects authorities to keep diversification outlays relatively high even as oil prices soften, leading to 鈥渕oderate fiscal deficits鈥 and a rise in government debt to more than 36 percent of GDP by 2030 from about 26 percent at end-2024. 

In a separate report on the banking system, Moody鈥檚 said strong credit demand linked to Vision 2030 projects and mortgages has outpaced deposit growth, pushing the sector鈥檚 loan-to-deposit ratio above 100 percent for the first time since 2021 and sustaining reliance on alternative funding.  

鈥淲hile domestic deposits are increasing, mainly supported by inflows from government entities and large companies, credit demand continues to grow at a faster pace,鈥 said the agency.

It noted that Saudi banks have diversified into capital-market issuance and syndicated loans; total bank issuance reached SR56 billion ($14.93 billion) in 2024, up from SR21 billion in 2023, with similar levels expected this year before easing as loan and deposit growth re-align. 

The report added that the Saudi Central Bank has moved to bolster resilience, introducing a 100-basis-point countercyclical capital buffer effective in 2026 and monitoring foreign-currency liquidity and stable-funding ratios 鈥 steps that could moderate loan growth at some institutions.  

Moody鈥檚 also highlighted the role of the Saudi Real Estate Refinance Co. in easing liquidity pressures, with SRC鈥檚 acquired portfolio rising to about 4 percent of the mortgage market and the launch of the Kingdom鈥檚 first residential mortgage-backed security in August, initially for local investors.  

Market funding brings its own risks, Moody鈥檚 said, pointing to a near-doubling of foreign funding as a share of liabilities since 2020 and the banking system鈥檚 net foreign-asset position turning negative in 2024.  

While the agency sees a loss of confidence as unlikely over the next 12 to 18 months, it warned that an abrupt shift could pressure renewals; measured diversification by tenor and geography would help mitigate that risk.  

Another new report by Moody鈥檚 on nonfinancial companies revealed that investment and reforms are lifting multiple non-oil sectors 鈥 hospitality and retail, manufacturing, mining and real estate among them 鈥 even as borrowing needs rise and credit outcomes diverge.  

Moody鈥檚 estimates that cumulative private-sector investments of close to SR8 trillion will be needed by 2030 to sustain growth, with the Public Investment Fund remaining central to catalyzing co-investment.  

PIF鈥檚 direct role is set to remain substantial. Moody鈥檚 projects up to SR1 trillion of PIF investment by 2030 鈥 on top of about SR642 billion over the past five years 鈥 while around SR7 trillion from other private participants will be required to maintain non-oil momentum.  

The scale and complexity of projects such as Neom introduce execution risk, but phased investment and tighter oversight should support delivery.  

Utilities will carry some of the heaviest capital burdens as the energy mix targets a 50/50 split between renewables and gas by 2030. 

Moody鈥檚 estimates at least SR750 billion of sector investment across 2019 to 2030, with the National Renewable Energy Program having launched roughly SR440 billion of projects since 2019. The Ministry of Energy plans to tender about 130 gigawatts of renewable capacity by 2030.  

As of mid-2025, renewables accounted for around 9 GW 鈥 about 10 percent of total generation capacity.  

Saudi Electricity Co., the sole transmitter and distributor, is accelerating grid expansion and interconnections and expects its regulated asset base to grow with elevated capital spending 鈥 rising from an average SR29.4 billion per year since 2019 to about SR50 billion to SR55 billion annually in 2025-30.  

Higher investment needs will strain free cash flow and liquidity, though a supportive regulatory framework and increased indirect subsidies 鈥 SR10.8 billion in 2024, or 12 percent of revenue 鈥 provide offsets.  

Across capital markets, Moody鈥檚 expects more Saudi corporates to tap equity and debt as regulatory upgrades broaden participation, with national champions and private companies aiming to balance expansion with prudent leverage.  

That trend, it said, should gradually deepen the domestic market, diversify funding sources and support a more resilient financing ecosystem. 


Saudia, Alrajhi Bank, Albaik lead 黑料社区鈥檚 most 鈥榩ersuasive鈥 brands: YouGov

Saudia, Alrajhi Bank, Albaik lead 黑料社区鈥檚 most 鈥榩ersuasive鈥 brands: YouGov
Updated 09 October 2025

Saudia, Alrajhi Bank, Albaik lead 黑料社区鈥檚 most 鈥榩ersuasive鈥 brands: YouGov

Saudia, Alrajhi Bank, Albaik lead 黑料社区鈥檚 most 鈥榩ersuasive鈥 brands: YouGov

RIYADH: Saudia, Alrajhi Bank, and Albaik are the top three most persuasive brands in 黑料社区 when it comes to getting people to buy their products, according to a new survey. 

A report from market research and data analytics firm YouGov analyzed shopping attitudes in the Kingdom and compiled a list of companies leading in convincing consumers to spend on their brands. 

The analysis found that retail banks, beauty firms, and telecoms and handset providers are the most successful at converting people who would consider buying their products into those who intend to do so.  

According to the report, Saudia topped all brands across every category, with 72 percent of respondents intending to use the airline once it was considered as an option. 

Alrajhi Bank came second with a conversion rate of 70 percent, followed by Albaik at 65 percent, Almarai at 65 percent, and Apple at 62 percent.  

Toyota followed with a conversion rate of 55 percent, while Samsung and Hilton recorded conversion rates of 49 percent and 47 percent, respectively, once customers began considering their products. 

The survey also found that Huda Beauty has a conversion rate of 45 percent, followed by Dior Beauty at 43 percent. 

Category breakdown  

Among non-carbonated beverage brands, Almarai secured the top spot among Saudi buyers, followed by Saudia, Nadec, Lipton Ice Tea, and Nova. 

Almarai鈥檚 top position comes just months after the company signed an agreement to acquire Pure Beverages Industry Co. for SR1.04 billion ($277 million), aiming to diversify its offerings and strengthen its market position. 

Pure Beverages Industry Co. is a bottled drinking water producer in the Kingdom, known for its 鈥淚val鈥 and 鈥淥ska鈥 brands. 

In the retail banking category, Alrajhi Bank is the most successful at converting customers considering its services into those who intend to use them. 

Alrajhi Bank is followed by Saudi Awwal Bank, Saudi National Bank, Alinma Bank, and Riyad Bank. 

In September, Alrajhi Bank earned an 鈥淎A鈥 rating from MSCI鈥檚 global environmental, social, and governance benchmark, becoming the only financial institution in 黑料社区 to achieve this distinction. 

The recognition also placed the financial institution among the top five banks worldwide with an 鈥淎A鈥 or higher ESG rating, underscoring its leadership in sustainable practices.  

Among beauty brands, Huda Beauty garnered the top spot for conversions, while Dior Beauty, Mac Beauty, Chanel Beauty, and Makeup Forever Beauty made up the remaining popular companies in the segment. 

With a conversion rate of 38 percent, Amazon was named the most persuasive retailer in the Kingdom, followed by Al Othaim, Panda, Lulu Hypermarket, and Shein.  

Apple topped the list among consumer electronics and appliances brands, with Samsung, Huawei, LG and PlayStation grabbing the remaining slots in the top five list.  

Albaik was named the most persuasive brand in the dining, restaurants and eateries category. Other entrants in the list include Hungerstation, McDonald鈥檚, Al Tazaj, and KFC.  

According to YouGov, Toyota is the most persuasive vehicle brand among Saudi customers, followed by Mercedes-Benz, Land Rover, Lexus, and BMW.  

Among hotels and resorts, Hilton topped the list, while the remaining entrants included InterContinental, Movenpick, Hyatt, and Ritz-Carlton.  

Saudia was named the most persuasive travel and airline brand among Saudi customers, followed by Egypt Air, flynas, Emirates, and Almosafer.  

Affinity toward home-made brands 

According to the YouGov survey, six out of 10 residents in 黑料社区 prefer to buy products made in their home country.  

The report revealed that 63 percent of the survey participants aged above 55 prefer products made in 黑料社区.  

Among people aged from 18 to 24, 58 percent prefer buying homemade products, and this figure rises to 60 percent among people between the ages of 25 and 34, and 61 percent among 35- to 44-year-olds.  

The report further said that 58 percent of the participants between the ages of 45 to 54 prefer buying products made in the Kingdom. 


Closing Bell:听Saudi stock market听ends week in green with 11,583 points听

Closing Bell:听Saudi stock market听ends week in green with 11,583 points听
Updated 09 October 2025

Closing Bell:听Saudi stock market听ends week in green with 11,583 points听

Closing Bell:听Saudi stock market听ends week in green with 11,583 points听

RIYADH: 黑料社区鈥檚 Tadawul All Share Index closed higher on Thursday, rising 24.04 points, or 0.21 percent, to end at 11,583.31. 

The total trading turnover for the main index stood at SR4.70 billion ($1.24 billion), with 254.9 million shares changing hands. A total of 119 stocks advanced, while 127 declined. 

The MT30 index, which tracks the performance of the top 30 companies by market capitalization, edged up 2.13 points, or 0.14 percent, to 1,509.75. The Nomu parallel market also climbed 112.17 points, or 0.44 percent, to close at 25,805.42, with 47 gainers and 37 losers. 

Saudi Automotive Services Co. was the session鈥檚 top performer, surging 9.96 percent to SR65.15. 

It was followed by Aldrees Petroleum and Transport Services Co., which gained 6.93 percent to SR142, and Riyadh Cables Group Co., which rose 5.48 percent to SR136.60. 

Other notable gainers included Dallah Healthcare Co., advancing 3.24 percent to SR153, and Liva Insurance Co., which added 2.90 percent to SR13.50. 

On the losing side, Gas Arabian Services Co. fell 4.02 percent to SR16.24, while Methanol Chemicals Co. dropped 3.08 percent to SR10.39. 

Halwani Bros. Co. declined 2.23 percent to SR39.54, followed by Batic Investments and Logistics Co., which slipped 2.16 percent to SR2.27, and National Metal Manufacturing and Casting Co., down 1.93 percent at SR17.30. 

On the announcement front, Rabigh Refining and Petrochemical Co. announced the resignation of two board members, including Noriki Takanishi, vice chairman of the board, and Tetsuo Takahashi, a member of the Audit Committee. 

The company said the resignations are linked to the recent completion of Saudi Aramco鈥檚 acquisition of Sumitomo鈥檚 22.58 percent stake in Petro Rabigh, following a share sale transaction between Saudi Aramco and Sumitomo Chemical Co. Ltd. 

The board also approved the appointment of Abdullah Al-Suwehfer and Hamad Al-Daghther as new non-executive members, pending ratification by the general assembly. Shares of Petro Rabigh closed 2.47 percent higher at SR7.90. 


Arab Energy Organization firms post record $280m profit

Arab Energy Organization firms post record $280m profit
Updated 09 October 2025

Arab Energy Organization firms post record $280m profit

Arab Energy Organization firms post record $280m profit

JEDDAH: Arab energy companies posted record net profits of over $280 million in 2024 鈥 their highest ever 鈥 driven by strong business volumes and strategic initiatives, according to the Arab Energy Organization. 

The achievement reflects the resilience of Arab energy firms amid volatile markets and follows efforts to modernize operations and strengthen coordination across member states, said Secretary-General Jamal Al-Loughani during the opening of the organization鈥檚 54th Annual Coordinating Meeting. 

He stressed the importance of providing necessary support to foster growth, enhance prosperity, and achieve their founding objectives, the Kuwait News Agency, or KUNA, reported. 

鈥淎l-Loughani underscored the need to build on previous meetings and their positive outcomes, moving toward a new phase that opens avenues for cooperation among affiliated companies and with national companies of a similar nature and activity in member states,鈥 KUNA reported. 

The official commended the companies鈥 efforts, describing them as a catalyst for deeper Arab cooperation.  He highlighted their 鈥減ivotal and constructive role鈥 in fostering collaboration and creating opportunities to strengthen the petroleum industry across member states, despite challenges arising from regional and global market conditions. 

Al-Loughani also highlighted the 鈥渃ontinuous and constructive鈥 communication maintained between the General Secretariat and the affiliated firms through designated liaison officers, KUNA reported. 

During the meeting, representatives of the organization鈥檚 affiliated companies reviewed major activities for 2024 and the first half of 2025, including commercial and technical operations, financial results, human resources activities, and training programs.  

They also presented several plans and projects aimed at enhancing performance, adapting to current market fluctuations, and maximizing revenue. 

The meeting was attended by representatives of the Arab Shipbuilding and Repair Yard Co., or ASRY, the Arab Energy Fund, the Arab Petroleum Services Co., the Arab Drilling and Workover Co., and the Arab Well Logging and Well Services Co. 

The Arab Energy Organization, formerly known as the Organization of Arab Petroleum Exporting Countries, was restructured and renamed in December following a Saudi-led proposal to broaden its mandate beyond oil to cover the wider energy sector. 

黑料社区鈥檚 ACWA Power, a major renewable energy firm and one of the region鈥檚 key players, reported a 2024 net profit of SR1.75 billion ($466 million), up 5.7 percent year on year, underscoring the Arab energy sector鈥檚 gradual shift toward sustainable growth. 


Aramco raises Petro Rabigh stake to 60% in $702m deal with Sumitomo听

Aramco raises Petro Rabigh stake to 60% in $702m deal with Sumitomo听
Updated 09 October 2025

Aramco raises Petro Rabigh stake to 60% in $702m deal with Sumitomo听

Aramco raises Petro Rabigh stake to 60% in $702m deal with Sumitomo听

RIYADH: Saudi Aramco completed the acquisition of an additional 22.5 percent stake in Rabigh Refining and Petrochemical Co., known as Petro Rabigh, from Japan鈥檚 Sumitomo Chemical Corp. for $702 million.  

The acquisition, valued at SR7 ($1.87) per share, raises Aramco鈥檚 total ownership to 60 percent and makes it the largest shareholder, while Sumitomo retains 15 percent, the company said in a press release.

The transaction, first announced in August 2024, includes a $1.4 billion capital injection jointly provided by Aramco and Sumitomo to partly prepay Petro Rabigh鈥檚 debt and bolster its balance sheet.

The acquisition marks a significant step in Aramco鈥檚 ongoing strategy to expand its integrated refining, chemicals, and marketing operations.

Hussain Al-Qahtani, Aramco senior vice president of fuels, said: 鈥淧etro Rabigh is a key player in the Kingdom鈥檚 downstream sector and this additional investment by Aramco reflects strong belief in its long-term prospects. It also underscores Aramco鈥檚 focus on downstream expansion and value creation.鈥

He added: 鈥淲e look forward to exploring closer integration with Petro Rabigh, with the aim of unlocking new opportunities and complementing Petro Rabigh鈥檚 broader transformation objectives, which include upgrading its product mix, enhancing asset reliability and optimizing operations.鈥 

The company said the deal underscores its commitment to value creation, business integration, and portfolio diversification across the downstream sector.

It also enhances Aramco鈥檚 capacity to support Petro Rabigh鈥檚 transformation program, which targets operational upgrades, improved yields of high-margin products, and greater plant reliability. 

The Petro Rabigh deal follows a series of acquisitions underscoring Aramco鈥檚 strategy to expand its downstream and international footprint. In 2025, the company acquired a 50 percent stake in Blue Hydrogen Industrial Gases Co. to strengthen its position in low-carbon hydrogen production. 

Late last year, Aramco purchased a 10 percent stake in Horse Powertrain Ltd., advancing its presence in hybrid and internal combustion powertrain technologies, and completed the full acquisition of Chile鈥檚 Esmax Distribucion SpA 鈥 its first downstream retail investment in South America. 

As part of the August 2024 deal, the funding will be executed through Class B shares, fully subscribed by both shareholders, allowing Petro Rabigh to receive new capital without altering its governance framework or diluting other shareholders鈥 voting rights. 

Aramco and Sumitomo also waived $1.5 billion in shareholder loans in two stages 鈥 August 2024 and January 2025 鈥 improving Petro Rabigh鈥檚 capital structure and remediating accumulated losses.

The waiver improves the company鈥檚 capital structure and helps remediate accumulated losses, providing a stronger foundation for future growth.

As of 12:08 p.m. 黑料社区 time, Aramco鈥檚 share on the Saudi Exchange gained 0.38 percent to reach SR92.95, while Petro Rabigh鈥檚 shares rose 1.82 percent to SR7.84.