RIYADH: China stocks fell on Thursday as worries over fresh COVID-19 outbreaks and mortgage-payment boycott overshadowed gains in tech shares. 

China’s blue-chip CSI300 lost 1.1 percent, while the Shanghai Composite Index declined 1 percent. In Hong Kong, the benchmark Hang Seng was down 1.5 percent.

China’s video games sector revenue declined in the first half of 2022 for the first time since the data was made available 14 years ago, as the world’s biggest video games market continues to reel from Beijing’s tightening oversight.

The industry’s combined revenue declined 1.8 percent to 147.7 billion yuan ($21.8 billion) in the six months ended June, according to a report published by the China Audio-Video and Digital Publishing Association, a state-backed industry group, on Thursday.

It marks the first drop since the data began being published in 2008 and reflects how China’s massive gaming industry, once marked by unbridled growth, has been heavily bruised by Beijing’s efforts to tighten its oversight of the sector, including by reducing the number of gaming licenses given out and limiting play time for teens.

The report also shows that the number of gamers nationwide fell for the first time, dropping to 665.69 million from 666.57 million reported in December.

Chinese gaming companies’ domestic revenue fell 4.25 percent to 124.5 billion yuan. With heavy regulations at home, companies have been turning to overseas markets for growth, where revenue rose 6.16 percent to nearly $9 billion in the period.

China fines Didi Global $1.2 billion

China’s cybersecurity regulator on Thursday fined Didi Global Inc. $1.2 billion, concluding a probe that forced the ride-hailing leader to delist from New York within a year of its debut and made foreign investors wary about China’s tech sector.

Didi ran afoul of the Cyberspace Administration of China, when it pressed ahead with its US stock listing even though it was urged to wait while a cybersecurity review of its data practices was conducted, sources previously told Reuters.

The CAC said Didi had violated three major laws concerning cybersecurity, data security and personal information protection, a regime that the country revised and expanded last year as part of efforts to regulate its cyberspace and require companies to improve their handling of data.

The regulator also said its investigation found Didi had illegally collected millions of pieces of user information over a seven-year period starting in June 2015 and carried out data processing activities that seriously affected national security.

RIYADH: Saudi Arabia's Ministry of Industry and Mineral Resources has launched a program that aims to move 4,000 factories away from relying on low-skilled workers to instead automating their manufacturing.

Alongside raising the competitiveness, efficiency and quality of industry, the Future Factories Program will create quality jobs, the ministry said in a statement. 

It has also announced the adoption of the Smart Industry Readiness Index methodology to assess the operational readiness of factories. 

Launched in two tracks, the program’s first path targets new factories to be designed and built according to high standards in manufacturing and production efficiency.

The second element of the strategy targets existing factories, seeking to convert them into ones adopting standards of operational excellence and advanced technologies. 

This comes as part of the ministry’s continuation of the digital transformation policy adopted by Saudi Vision 2030.

RIYADH: Saudi stocks continued to rebound, ending the week’s final session with a positive tone, as investors awaited strong earnings results.

The main index, TASI, gained 1.04 percent reaching 11,987, while the parallel market, Nomu, rose 0.96 percent to 20,960.

Alujain Corp. gained 7.55 percent, leading gainers, followed by Development Works Food Co. with a gain of 6.62 percent.

Leading the fallers was United Cooperative Assurance Co. with a 9.95 percent decline, followed by Alinma Retail REIT Fund dropping 3.40  percent.

Saudi oil giant Aramco declined 0.64 percent, while Saudi British Bank, which was voted the best bank in 2022, fell 0.47 percent,

The Kingdom’s largest valued bank Al Rajhi rose 1.71 percent, while Saudi National Bank, one of the Kingdom’s biggest lenders, climbed 1.75 percent.

Among the biggest information technology companies, Elm Co. was up 2.48 percent, while Al Moammar Information Systems Co. was down 3 percent.

Saudi Kingdom Holding increased 1.11 percent, following the announcement that it has invested SR1.01 billion ($268 million) in UK-based M&G plc.

Aldrees Petroleum and Transport Services Co. ended Thursday’s session flat, after its first-half profit soared 44 percent.

Arabian Centres Co. rose 1.24 percent, after it inked a SR970 million deal to develop a mall in Al-Khobar.

RIYADH: On a macro level, China solar installations have jumped by 137 percent during the first half of 2022, compared to a year earlier. 

Zooming in, Dubai Electricity & Water Authority is planning to invest 40 billion dirhams ($10.8 billion) in electricity and water projects over the next five years, as the emirate’s demand for energy rises.  

Looking at the bigger picture:

China's solar installations have more than doubled during the first half of 2022, Reuters reported, citing the China Photovoltaic Industry Association.

Up 137 percent from a year earlier, China has built nearly 31 gigawatts of new solar power capacity from January to June, with full-year installations on course to hit a record high. 

Japan has lowered its gasoline subsidy for oil distributors to 36.6 yen ($0.26) a litre, down from 36.9 yen a week earlier, Reuters reported, citing the industry ministry.

The temporary subsidy plan was adopted in January to cushion the blow from high crude prices because of tight global supplies, later exacerbated by the Ukraine conflict.

The Emirates Nuclear Energy Corp. has completed the pre-operational testing of the last unit of the Barakah Nuclear Energy Plant, edging closer towards fully operating the four-unit complex.

The Abu Dhabi-owned firm said it finished the Hot Functional Testing of Barakah’s Unit 4, where components were checked for thermal expansion and vibration, Emirates News Agency reported. 

Once UAE’s powerhouse Barakah Plant is fully operational, all four units will produce up to 25 percent of the country’s electricity needs and will prevent 22.4 million tons of carbon emissions every year.

Dubai Electricity & Water Authority is planning to invest 40 billion dirhams ($10.8 billion) in electricity and water projects in the emirate over the next five years.

The new investment will cover the Hassyan Power Complex and water projects at Hassyan, as well as completing other continuing projects in infrastructure and smart systems, Dubai Media Office reported.

This comes as energy demand in Dubai continues to grow, increasing 6.3 percent year-on-year in the first half of 2022. 

RIYADH: Abu Dhabi- based National Marine Dredging Co. has outperformed its first-half net profits in 2021 by 74 percent, hitting $110 million in the first half of 2022.  

NMDC’s revenues also reached $965.5 million, and its assets stand at $3.63 billion, an 8.5 percent and 3 percent increase respectively from the same period last year, reported MEED.

This came after decisions to allow non-UAE investors to own more shares—up to 49 percent—of the company’s capital.

“NMDC’s ambitious expansion plans and strong global position have also increased the percentage of revenues generated from projects outside the country to 42 percent of total revenues in the first half of 2022,” NMDC said in a statement.

Alpago sells Framed Allure villa for $35m

Alpago Properties, a real estate developer headquartered in Dubai, has placed its $35 million Framed Allure villa on the market for sale.

Located in Palm Jumeirah, the five-bedroom villa spreads over 16,000 square feet and is encircled by the Arabian Gulf, reported Trade Arabia. 

Uniquely designed by Emre Arolat Architecture firm, the estate offers many luxurious services such as a home cinema, a private gym, and an infinity pool.

"Partnering with Emre Arolat has allowed us to create another masterpiece perfectly suited to complement the needs of both the market and end-users," remarked Alpago Group founders Murat Ayyildiz and Ridvan Ayyildiz.

Al Hamra begins second phase of Falcon Island

Ras Al Khaima-based lifestyle and hospitality developer Al Hamra has announced the commencement of the second phase of Falcon Island.  

The residential community project will give investors the opportunity for a post-handover payment plan, for units valued at 6.2 million dirhams — this allows buyers to pay once the property has reached completion.

This decision follows the booming sales of phase one units which included different types of villas and townhouses valued at 1.2 million dirhams and higher, reported Trade Arabia. 

"The strong international investor response to phase one reflects on the quality of the offering, long-term returns assured by Falcon Island and the popularity of Ras Al Khaimah as a preferred destination for living and holidaying." disclosed Benoy Kurien, group CEO of Al Hamra.

"We are confident of a similar response to phase two,” he added.

RIYADH: International investors have a “unique opportunity” to tap into Saudi Arabia’s growing private education sector, according to a partner at L.E.K. Consulting’s Global Education Practice.

The comments came following a report by the firm that revealed the Kingdom’s private K-12 education sector — the time from kindergarten to 12th grade — showed resilience to the impact of COVID-19 by growing at a compound annual rate of one percent over the past six years. 

The international segment of the private education sector was particularly strong, seeing a growth of 8 percent from assessment years 2015-20.

Reflecting on the report’s findings, L.E.K.’s Chinmay Jhaveri said: “The private K-12 education market in Saudi Arabia is highly fragmented, with top global K-12 school chains accounting for less than 20 percent of the overall private education sector enrolment. 

“A number of prominent global K-12 school chains are yet to establish a presence in Saudi Arabia. 

“The Kingdom’s largely local demand for K-12 education presents an opportunity for international operators as it ensures a steady student base.  

“This also presents a unique opportunity for investors looking to gain long-term value in Saudi Arabia’s K-12 education sector.”

L.E.K. Consulting’s report noted that the population enrolled in private K-12 schools constitute 15 percent of the overall 5.9 million market in Saudi Arabia.