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RIYADH: Saudi utility giant ACWA Power is moving forward with its SR7 billion ($1.8 billion) capital increase as part of a broader strategy to expand its footprint in energy transformation, water desalination, and green hydrogen production, according to its chief financial officer.

In an interview with Al-Ekhbariya, Abdulhameed Al-Muhaidib described the capital raise as a critical step to reinforce the company’s leadership both domestically and internationally in sustainable infrastructure.

ACWA Power’s investment portfolio currently stands at around SR400 billion, encompassing over 78 gigawatts of production capacity and more than 9.5 million cubic meters per day in water desalination capacity. In line with long-term objectives, the company’s board approved a plan two years ago to triple assets under management to over SR937.5 billion by 2030.

The initiative also aligns with ��������’s national goal of achieving a balanced energy mix by 2030, targeting an equal split between gas and renewable sources for electricity generation.

“The company decided to increase its capital through a rights issue rather than expanding into debt markets, with the aim of strengthening its financial position and enhancing credit flexibility. A large portion of the proceeds will be used to expand its project portfolio both inside and outside the Kingdom,” said Al-Muhaidib.

He noted that 60 percent of ACWA Power’s current investments are located in the Kingdom, with the remaining 40 percent spread across international markets. Between 75 percent and 85 percent of the new capital will be allocated to greenfield projects, while acquisitions will account for no more than 20 percent.

“ACWA Power’s infrastructure projects rely primarily on debt, with shareholders’ equity covering 20 percent to 25 percent of the financing structure. The company will continue this financing strategy while maintaining net debt at approximately SR20 billion, despite the significant growth expected through 2030,” he added.

Highlighting the company’s geographical expansion, Al-Muhaidib said ACWA Power added new projects worth SR34 billion in 2024 across ��������, Egypt, Azerbaijan, Uzbekistan, and China.

He also pointed out the firm’s active presence in China, with more than 90 employees based in its Shanghai office to support growth in that market.

ACWA Power successfully achieved nine financial closings in 2024, amounting to SR34.6 billion. The CFO said a dedicated internal team has been established to streamline project execution from inception to operation.

He confirmed that the Capital Market Authority has approved the capital increase, with the final offering price set to be announced during the company’s general assembly on June 30.

“Seventy-seven percent of shareholders have submitted their subscription pledges,” Al-Muhaidib noted, adding that the high participation rate underscores investor confidence in the company’s long-term strategy.

ACWA Power reported a net profit of SR1.75 billion in 2024, a 5.74 percent increase year on year, according to a Tadawul filing issued in February. The gain was attributed to higher revenues from operations and maintenance, increased electricity sales, and improved earnings from equity-accounted investees, capital recycling, and net finance income.

RIYADH: Oman’s residential property prices climbed 7.3 percent year on year in the first quarter of 2025, led by a sharp increase in residential land values, official figures showed.

According to data from the National Center for Statistics and Information, the jump was driven by a 6.5 percent rise in residential land prices, which form the largest component of the real estate index. 

The gain reflects a broader regional upswing in property activity during early 2025. In the Kingdom, residential property prices rose 4.3 percent in the first quarter. The UAE continued to post strong gains, with Dubai prices climbing 16.5 percent and Abu Dhabi villa prices increasing 4.4 percent over the same period. In Qatar, real estate transactions reached 1.27 billion Qatari riyals ($350 million) in March alone.

Oman is working to ramp up housing supply as part of its Vision 2040 strategy, aiming to deliver 62,800 new residential units by 2030. Some 5,500 of these are expected to hit the market in 2025, according to consultancy Cavendish Maxwell.

NCSI data also showed strong momentum within individual property types. Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and prices for other residential units increased 2.2 percent. The overall residential real estate price index grew 5.5 percent quarter on quarter in the first three months.

On an annual basis, land prices climbed 5.5 percent, apartment prices rose 4.3 percent, and villa prices increased 4.5 percent. Other home types saw the steepest gains, rising 13.4 percent compared to the same period last year.

At the governorate level, Muscat led the price growth with a 17.4 percent increase in residential land values year on year in the first quarter. Musandam followed with a 12.8 percent rise, while Al-Batinah North and South recorded gains of 7.3 percent and 6.1 percent, respectively. Dhofar and Ash Sharqiyah South posted more moderate increases.

However, the gains were not uniform across the country. Al Buraimi saw residential land prices plummet 35.1 percent, followed by declines in Al Dhahirah at 25.3 percent, Al Wusta at 20.4 percent, Ad Dakhiliyah at 3.7 percent, and Ash Sharqiyah North at 0.8 percent.

Oman’s real estate market ended 2024 on a strong note, with total transaction values rising 28.1 percent year on year to 3.13 billion Omani rials ($8.13 billion) by November, according to NCSI.

In a bid to attract foreign capital and stimulate development, the sultanate has rolled out a series of reforms, including relaxed ownership restrictions for non-citizens and new tax incentives aimed at boosting investor confidence.