Riyadh Air taps Saudi Awwal Bank and HSBC to handle MEA payment systems

AVIATION-

#1- PIF-backed Riyadh Air picked Saudi Awwal Bank (SAB) and HSBC to handle its Middle East and Asia payment systems, Saudi Gazette reports. The two companies will manage the airline’s financial operations, including payments and e-commerce transactions, with SAB taking on operations at home and HSBC supporting the wider Middle East and Asia markets.

ICYMI- Riyadh Air tapped US-based travel technology company Sabre as its first global distribution partner last week, enabling it to provide personalized travel offers to travel agents, corporate buyers, and customers through Sabre’s New Distribution Capabilities (NDC) and traditional content.

#2- Air France’s first direct flight between Paris and Riyadh landed at King Khaled International Airport on Tuesday, it said in a press release. The French air carrier is currently operating three weekly flights, planning to add another two starting Wednesday, 18 June.

M&A WATCH-

AWJ Investment, a subsidiary of AWJ Holding, acquired a 40% stake in Oud Real Estate, kicking off a partnership focused on developing branded residential, commercial, and hospitality projects in key urban centers like Riyadh and Jeddah, with investments of SAR 8 bn over the next five years, AWJ Holding said in a statement. The value of the transaction was not disclosed.

The rationale: The partnership builds on AWJ’s financial resources and Oud Real Estate’s development experience to deliver authentic Saudi destinations with contemporary urban living. The move also aims to accelerate Oud’s expansion plans and reinforce its position in the luxury real estate sector, the company’s Managing Director Mohammed Al Duraibi said.

TECH-

Two Saudi-US tech agreements sealed: Homegrown data center firm DataVolt signed agreements with US-based companies Vertiv, a multinational provider of critical infrastructure and services, and global energy tech company Baker Hughes, on the sidelines of the Saudi-US Investment forum on 13 May, it said in two posts on LinkedIn (here and here).

The details: The agreement with Vertiv aims to develop scalable, energy-efficient data center infrastructure in the Kingdom, while Baker Hughes will collaborate with DataVolt to advance sustainable energy solutions for its future digital infrastructure.

ICYMI- The White House revealed plans earlier this month for DataVolt to invest USD 20 bn in US-based AI data centers and energy infrastructure, alongside commitments from companies like Google, Oracle, Salesforce, AMD, and Uber totalling USD 80 bn in joint technology investments in the Kingdom and the US.

FOOD-

Jazan City forPrimary and Downstream Industries signed an MoU valued at more than SAR 100 mn with China’s Shandong Seahisun to grow the city’s food industry and increase local exports and market presence in China, the Royal Commission for Jubail and Yanbu said in a post on LinkedIn.

What we know: The investment — announced at the Saudi-Chinese Forum last Friday — also includes the construction of a meat and poultry processing plant in Jazan’s Animal Protein Zone, with an annual export target exceeding 50k tons. No timeline for the projects was disclosed.

IN CONTEXT– The Saudi-Chinese Forum for Product Export and Agricultural Sustainability saw the signing of 57 agreements worth over SAR 14 bn (USD 3.7 bn). Among them was an agreement to establish an industrial city in Jazan for basic and transformational industries, designed to strengthen supply chains and foster agri-linked manufacturing and investment.

DEBT WATCH-

Sinad Holding Company renewed and increased shariah-compliant baking facilities with the Saudi Investment Bank for a total of SAR 400 mn, according to a disclosure to Tadawul.

The breakdown: The funding includes SAR 200 mn in renewed short-term facilities and an additional SAR 200 mn in medium-term facilities to back working capital and investments.The arrangement, backed by a promissory note and stock pledge, expires on 30 September and carries an option for annual renewal.

DEFENSE-

The Kingdom gets a new defense manufacturer: BAE Systems Arabian Industries officially launched yesterday, setting up shop at AlArid Business Centre, it said in a statement. The company was formed by merging BAE Systems Saudi Development and Training with the Saudi Maintenance and Supply Chain Management in January to localize defense manufacturing and develop the Kingdom’s military industrial base.

REMEMBER- The Kingdom eyes a target of localizing over 50% of its military equipment spending by 2030. Saudi Arabian Military Industries (Sami) inked 11 agreements and MoUs last year with global defense firms during the World Defense Show in Riyadh.