Riyadh Opens Second Real Estate Balance Program With Land Price Cap

Saudi Arabia's offshore drilling sector is signaling a robust recovery, with major players ADES Holding and Arabian Drilling announcing the resumption of operations at their temporarily suspended rigs. This move marks a significant step in restoring the sector's operational capacity, bringing a substantial portion of the offshore fleet back into service. The suspensions, attributed to regional developments rather than weak demand, had temporarily halted activity. The restart is poised to revive demand across a broad spectrum of related industries, including logistics, technical services, and equipment suppliers, underscoring the resilience of the Gulf offshore drilling market. ADES Holding, backed by the Public Investment Fund, reported over 90% utilization for its contracted jack-up rigs and maintained its 2026 EBITDA guidance, highlighting the sector's financial stability. Arabian Drilling anticipates reaching 100% offshore fleet utilization by the end of the third quarter of 2026, signaling a strong market recovery. Both companies emphasized the improvement in the regional situation as a key factor for resuming operations, while prioritizing the safety of their employees and assets.

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The development reflected an improvement in the regional situation and the readiness of the company’s teams to resume operations, while stressing that the safety of employees and assets remained its top priority.