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RIYADH: ��������’s national shipping carrier Bahri has ordered six Ultramax bulk carriers from International Maritime Industries, marking the Kingdom’s first large-scale commercial vessel project. 

The ships will be built at IMI’s Ras Al-Khair yard, the largest maritime facility in the Middle East, and are designed for efficiency and access to ports with limited infrastructure, according to a press release. 

The move to build its first Saudi-made vessels comes as part of Bahri’s ongoing fleet modernization program. 

The initiative recently saw a significant boost in August, when the company signed a $1 billion deal to purchase nine very large crude carriers from Greece-based Capital Maritime and Trading Corp.

Ahmed Ali Al-Subaey, CEO of Bahri, said: “This agreement marks a strategic milestone for Bahri and a defining moment for the maritime industry in the Kingdom.” 

He added: “Through our partnership with International Maritime Industries to launch the first large-scale national shipbuilding program, we are not only modernizing our fleet but also laying the foundations for a sustainable and globally competitive maritime sector.” 

Al-Subaey noted that the construction of these new carriers will allow the company to expand into strategic markets, elevate service levels, strengthen supply chain resilience, and create long-term value for customers and stakeholders. 

The newly designed Ultramax carriers are engineered for high levels of flexibility and operational efficiency. A key feature is their ability to access ports with limited infrastructure, which will allow Bahri’s dry bulk sector to expand into specialized markets and emerging trade routes. 

This capability is expected to reduce exposure to market volatility and enhance the resilience, competitiveness, and sustainability of the rapidly evolving shipping industry. 

The agreement reflects Bahri’s support for the Kingdom’s maritime industry and its role in strengthening the national economy and supply-chain capabilities to enhance ��������’s trade competitiveness.

The company posted solid financial results in the first quarter of 2025, with net profits increasing 18 percent year on year to SR533 million ($142 million), supported by fleet efficiency, proceeds from vessel sales, and diversified shipping operations.

RIYADH: Gulf banks delivered stronger profits and healthier balance sheets in the first half of 2025 even as lower interest rates began to weigh on lending margins, a new report showed. 

According to the EY GCC Banking Sector Outlook, average return on equity rose to 13.2 percent, driven by higher non-interest income and tighter cost controls. 

Operating efficiency improved, with the cost-to-income ratio falling to 32 percent, while asset quality strengthened as non-performing loans declined to 2.4 percent from 2.8 percent a year earlier, the report added.  

This strong performance is underpinned by a positive macroeconomic forecast for the GCC, with economic growth projected at 3 percent in 2025 before accelerating to 4.1 percent in 2026, supported by infrastructure spending, economic diversification, and vibrant private sector activity. 

This comes as Kamco Invest reported that GCC-listed banks posted a record $16.2 billion in net profit in the second quarter, driven by higher revenues and efficiency gains that offset rising impairment charges. 

Mayur Pau, EY MENA financial services leader, said: “With solid capital buffers, healthier balance sheets and improved efficiency, banks are well-positioned to navigate near-term pressures and pursue long-term opportunities.” 

The sector also maintained strong capital buffers, with an average Tier 1 capital ratio of 17.5 percent and a capital adequacy ratio of 18.9 percent, reinforcing its ability to withstand potential economic shocks. 

The report also flagged emerging challenges. Net interest margins contracted to 2.6 percent from 2.8 percent in the first half of 2024, reflecting the impact of interest rate cuts. Liquidity conditions have also tightened, with the loan-to-deposit ratio rising to 94.1 percent.

EY noted that these factors are squeezing traditional revenue streams, prompting banks to focus on diversifying income and enhancing operational efficiency. 

“Bank profitability remains intact, underpinned by rising non-interest income and stable asset quality,” Pau said, adding that net interest margins are under pressure following rate reductions implemented in late 2024, which triggered loan repricing at lower yields.

“This trend is expected to persist with further rate cuts announced in September 2025,” he said.