Construction is back on track at Makkah’s Masar Destination

Umm Al Qura is set to deliver seven hotels and two shopping hubs in less than three years, tapping Mounes Mohammed Elshayeb and Partners for Civil Construction Company (Mopco) and Bec Arabia Contracting Company to complete superstructure works at Makkah’s Masar destination, it said in a Tadawul disclosure.

IN CONTEXT- The SAR 4.1 bn construction contracts come two months after Umm Al Qura terminated the previous contractor, citing “material breaches,” without providing further details. The contracts are managed by Umm Al Qura’s fully owned SPVs — Al Inma First Development Company and Al Inma Second Development Company.

The details: Scheduled to be signed on 29 January, the 30-month project is split into two packages. The SAR 3.2 bn Package A will see Mopco deliver four hospitality towers and two shopping centers spanning six land plots in Zone 1. Meanwhile, Bec Arabia will develop Package B, which comprises three hospitality towers on two plots in Zone 3 for SAR 899 mn.

Northern Graphite to set up 25k-ton battery material plant in Yanbu –

Canada’s Northern Graphite and Al Obaikan Investment Group will together build a USD 200 mn battery anode material facility in Yanbu, after signing a term sheet to form a joint venture to build the facility, Northern Graphite said in a press release. The plant will have an initial capacity of 25k tons per year, with construction slated to kick off this year and production targeted for 2028.

More details: Al Obaikan will own a 51% share and lead the arrangement of local debt financing through Saudi government financing agencies and international commercial banks, while Northern Graphite will hold 49% and receive a royalty on net sales. A final feasibility study is due by June 2026, with definitive shareholder agreements targeted for 4Q 2026.

Why it matters: The scalable facility creates a non-Chinese graphite supply chain for Western markets, leveraging Yanbu’s port to meet rising EV-driven battery material demand. With advanced offtake talks underway, the project aims to help countries, including the US, reduce dependence on China’s dominant graphite anode production.

PIF partners with RSAH to build aluminum complex in Yanbu

The Public Investment Fund (PIF) and Red Sea Aluminium Holdings (RSAH) will develop a fully integrated aluminum industrial complex in Yanbu, after reaching a preliminary agreement, the fund said in a statement. RSAH is a JV between Innovation Global Industries, Innovation New Materials, and Shandong Innovation Group.

Why it matters: The Red Sea Aluminium Industrial complex will bring smelting technology to the Kingdom, building one of the Middle East’s largest casting facilities to manufacture aluminum products.

Saudia + Air India sign off on codesharing arrangement

Saudi Arabia’s national carrier Saudia and Air India signed a codeshare agreement to improve last-mile connectivity for their passengers, according to a press release. The move opens intercity connections for Air India passengers, allowing those arriving in Jeddah or Riyadh to continue onward to Dammam, Madinah, Abha, and Taif under a single-ticket booking. The agreement, which comes into effect in February, also unlocks access for Saudia clients to tier 2 markets in India.

Why it matters: By offering single-ticket bookings, coordinated schedules, and seamless baggage transfers, the airlines aim to boost passenger convenience as tourism, business, and diaspora travel continue to surge.

Red Sea International subsidiary secures SAR 200 mn from SNB-

Fundamental Installation for Electric Work Co., a Red Sea International subsidiary, renewed its SAR 200 mn credit facility with the Saudi National Bank (SNB), it said in a Tadawul disclosure. The updated agreement, which reduces the original facility by SAR 80 mn, runs for an additional year and is backed by a SAR 200 mn promissory note alongside corporate and personal backing. The company will use the funding to issue advance payment bonds, performance bonds, and letters of credit.

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