Royal Bank of Scotland (RBS) said on Sunday the completion of a merger between Alawwal bank and Saudi British Bank would lead to RBS shedding $5.9 billion of risk weighted assets and boost its core capital.
RBS, through Dutch subsidiary NatWest Markets N.V., was part of a consortium including NLFI and Banco Santander S.A. that held an aggregate 40% equity stake in Alawwal bank, the British bank said in a statement. RBS also had an interest equivalent to a 15.3% stake in Alawwal bank.
RBS said that as a result of the merger completion, it would recognise an income gain on disposal of the Alawwal bank stake for shares received in Saudi British Bank of almost $503 million and a reduction in risk weighted assets of nearly $5 billion.
RBS also said the deal would extinguish legacy liabilities of almost $377.
The changes would increase the bank's CET1 core capital ratio by 60 basis points, it said.
The merger will also help RBS to focus on its target markets, RBS chief executive Ross McEwan said in a statement.
RBS, which was rescued in 2008 with a nearly $57 billion capital injection by the British government, has been shrinking its overseas operations since the financial crisis to focus on its UK lending operations.
RBS says Saudi bank merger boosts its core capital
RBS says Saudi bank merger boosts its core capital
- RBS had a 15.3% interest in Alawwal bank
- The changes would boost the banks CET1 core capital ratio by 60 basis points
UAE to double FDI to $65.3bn with new investment strategy
RIYADH: The UAE is planning to double its foreign direct investments to 240 billion dirhams ($65.35 billion) annually by 2031 — up from the 112 billion dirhams it saw in 2023.
As part of the nation’s newly approved National Investment Strategy, the scheme aims to grow the country’s total FDI stock from 800 billion dirhams to 2.2 trillion dirhams over the coming years, with a focus on key sectors such as industry, logistics, and financial services, as well as renewable energy and information technology.
Sheikh Mohammed bin Rashid Al-Maktoum, vice president, prime minister, and ruler of Dubai, chaired the UAE cabinet meeting at Qasr Al Watan in Abu Dhabi, where the investment strategy was approved, according to a report by the Emirates News Agency.
“The UAE continues to develop its economy, expand global markets, attract investments, and create the most business-friendly environment in the world,” the vice president said.
The strategy comprises of 12 new programs and 30 initiatives, including the Financial Sector Development Program, the One-Market Program, and InvestUAE, aimed at enhancing investment promotion and economic diversification.
The cabinet also reviewed the UAE’s strategic partnerships with African nations, reporting that 95 percent of previously approved initiatives have been implemented.
As a result, total trade volume with sub-Saharan Africa has increased from 126.7 billion dirhams in 2019 to 235 billion dirhams over five years, marking an 87 percent rise.
“The UAE will continue to build new economic bridges across the world and reinforce its role as a global trade hub, connecting markets worldwide,” Al-Maktoum said.
The cabinet reviewed progress on the National Digital Economy Strategy, which seeks to raise the sector’s contribution to the gross domestic product from 9.7 percent to 19.4 percent over the next six years.
The meeting also addressed advancements in industrial technology, approving the Industrial Technology Transformation Index, a first-of-its-kind indicator designed to measure specialized progress and sustainability practices in UAE factories.
“The UAE now has more than 13 licensed transplant centers, with a 30 percent increase in transplant procedures. Kidney, liver, heart, lung, and pancreas transplants are now being performed in the UAE,” Sheikh Al-Maktoum said.
The body also approved the restructuring of the Emirates Research and Development Council, chaired by Sheikh Abdullah bin Zayed Al Nahyan, with a mandate to define national research priorities and enhance collaboration between government entities, the private sector, and academia.
In social affairs, the government announced an increase in the social support budget by 29 percent to 3.5 billion dirhams, with a 37 percent rise in beneficiaries, while 3,200 individuals have transitioned from financial aid recipients to the workforce.
A new remote work system for federal government employees outside the UAE was also approved, allowing the country to leverage global expertise for specialized tasks and projects.
Additionally, the cabinet ratified 28 international agreements, including comprehensive economic partnership agreements with Malaysia, New Zealand, and Kenya, alongside security, logistics, and government cooperation pacts with various nations.
As part of its sustainability initiatives, the cabinet launched the National Green Certificates Program for buildings, a voluntary classification system to certify sustainable structures across commercial, industrial, hospitality, and residential sectors.
Other regulatory approvals included new laws on plant variety protection, commercial fraud prevention, and the practice of health care professions by non-physicians and pharmacists.
Al-Maktoum reaffirmed the UAE’s commitment to economic growth and global engagement, stating: “The teams continue their work, our growth trajectory accelerates, and every day, we witness our nation’s future becoming greater, stronger, and more prosperous — driven by the dedication of thousands of exceptional teams across all sectors.”
Saudi private sector powers $314bn investment boom, outpacing Vision 2030 target
RIYADH: Saudi Arabia’s gross fixed capital formation rose to SR1.18 trillion ($313.68 billion) in 2024, marking a 5.3 percent annual increase, recent data showed.
A report from the Ministry of Investment attributed this growth to rising non-government sector investments, which expanded by 7.6 percent during the year.
The Kingdom’s GFCF has outperformed expectations, with cumulative investments from 2021 to 2024 reaching SR4.11 trillion — 28 percent above the initial target of SR3.22 trillion for the period.
By 2030, the National Investment Strategy, a key driver of Vision 2030, aims to push total annual GFCF to SR2 trillion, contributing 30 percent to gross domestic product. The plan also targets SR1.7 trillion in domestic investments within GFCF, reinforcing Saudi Arabia’s commitment to private sector expansion and sustainable economic growth.
GFCF, which measures the net increase in physical assets within an economy, is a crucial component of GDP as it reflects capital accumulation supporting future production capabilities and economic growth.
In 2024, the private sector accounted for 88 percent of total GFCF, reaching SR1.03 trillion. Meanwhile, the government sector, which made up 12 percent, saw an 8.3 percent decline to SR144.3 billion, signaling a strategic shift toward private sector-led growth.
Foreign direct investment has also exceeded projections, with total inflows from 2021 to the third quarter of 2024 reaching SR391 billion, including SR104 billion from the Aramco deal, according to the ministry. This surpasses the SR295 billion target for the period by 33 percent, reflecting strong investor confidence and Saudi Arabia’s success in attracting capital under Vision 2030.
The Kingdom has implemented a range of pro-business reforms, including regulatory streamlining, tax incentives, and the Regional Headquarters Program to attract multinational corporations. Giga-projects like NEOM, the Red Sea, and Qiddiya, along with public-private partnerships and sovereign investment initiatives, are also drawing investor interest across sectors.
In a recent milestone, the Kingdom approved the organization of the Saudi Investment Promotion Authority to enhance its investment ecosystem and attract global capital. Endorsed during a Cabinet meeting chaired by Crown Prince Mohammed bin Salman earlier in March, the authority will promote investment opportunities domestically and internationally while working closely with key stakeholders.
Investment Minister Khalid Al-Falih noted that the initiative strengthens Saudi Arabia’s position as a premier investment hub, leveraging its strategic location, investor-friendly policies, and world-class infrastructure.
Oil Updates — prices inch up despite tariff concerns, slowdown fears
SINGAPORE: Oil prices pared earlier losses to inch up during trade on Tuesday, despite concerns over a potential US recession, the impact of tariffs on global growth and as OPEC+ sets its sight on ramping up supply.
Brent futures edged up 18 cents, or 0.3 percent, to $69.46 a barrel at 9:40 a.m. Saudi time after falling in early trade. US West Texas Intermediate crude futures rose 9 cents, or 0.1 percent, to $66.12 a barrel after previous declines as well.
Despite the market noise, Brent at around $70 a barrel is quite a strong support and oil prices may look to stage a technical bounce at current levels, said Suvro Sarkar, energy sector team lead at DBS Bank, adding that the OPEC+ supply response will continue to remain flexible depending on market conditions.
“If oil prices fall below the $70 per barrel mark for an extended period, output hikes may be paused in our opinion. OPEC+ will also keep a careful eye on Trump’s Iran and Venezuela policies,” he said.
“The US has already taken back Chevron’s license to operate in Venezuela and it remains to be seen whether Iran sanctions will be intensified. However, in the interim, worries about global growth amid policy uncertainties and trade wars will dominate.”
US President Donald Trump’s protectionist policies have roiled markets across the world, with Trump imposing and then delaying tariffs on his country’s biggest oil suppliers, Canada and Mexico, while also raising duties on Chinese goods. China and Canada have responded with tariffs of their own.
Over the weekend, Trump said a “period of transition” for the economy is likely but declined to predict whether the US could face a recession amid stock market concerns about his tariff actions.
“Trump’s comments triggered a wave of selling as investors started pricing in the risk of weaker growth in demand,” Daniel Hynes, senior commodity strategist at ANZ said.
Stocks, which crude prices often follow, slumped on Monday, with all three major US indexes suffering sharp declines. The S&P 500 had its biggest one-day drop since Dec. 18 and the Nasdaq slid 4 percent, its biggest single-day percentage drop since September 2022.
US Commerce Secretary Howard Lutnick said on Sunday Trump would not let up pressure on tariffs on Mexico, Canada and China.
On the supply front, Russia’s Deputy Prime Minister Alexander Novak said on Friday the OPEC+ group agreed to start increasing oil production from April, but could reverse the decision afterwards if there were market imbalances.
In the US, crude oil stockpiles were expected to have risen last week, while distillate and gasoline inventories likely fell, a preliminary Reuters poll showed on Monday.
The poll was conducted ahead of weekly reports from industry group the American Petroleum Institute, due at 11:30 p.m. Saudi time on Tuesday, and the Energy Information Administration, the statistical arm of the US Department of Energy, at 5:30 p.m. Saudi time on Wednesday.
Pakistan oil regulator in crosshairs of refineries, marketing firms over ‘take or pay’ clause
- OMCs strongly oppose proposal due to fear of liquidity crises, supply disruptions and potential market exits
- Refineries say oil marketing firms failing to lift product disrupts operations, threatens supply chain stability
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) said this week it would mediate between refineries and Oil Marketing Companies (OMCs) to reach a “mutually agreeable” resolution on differences over the authority’s proposal to impose a “take or pay” clause in purchase agreements with refineries, which OMCs argue would unfairly burden them.
Pakistan has five oil refineries that process crude oil to produce refined petroleum products. Around 30 OMCs are licensed by the Oil and Gas Regulatory Authority (OGRA) to ensure the availability of petroleum products in the country.
A conflict emerged between local oil refineries and OMCs over OGRA’s proposal to include a take or pay clause in Sales Purchase Agreements (SPAs), with OMCs strongly opposing the move fearing liquidity crises, supply disruptions and potential market exits. Under the new contracts, oil marketing companies would have to pay at least cost to refineries if they are unable to pick up their allocated quantities of product.
The chairman of the Oil Marketing Association of Pakistan (OMAP), a body representing two dozen small and medium-sized Oil Marketing Companies (OMCs), wrote a letter to OGRA Chairman Masroor Khan this week to formally oppose the proposed clause, saying it would serve the interests of refineries and large OMCs at the expense of smaller players, further consolidating the monopolistic control of big fish in the oil sector.
OGRA spokesperson Imran Ghaznavi told Arab News refineries and OMCs had been asked to enter into written sale and purchase contracts.
“The take or pay clause means if an OMC does not buy the contracted quantity, it will still have to pay the purchase price or a penalty and vice versa,” he said.
OMAP chairman Tariq Wazir Ali told Arab News on Monday the body had “expressed our grave concerns regarding the proposed imposition of the take or pay clause in the SPAs between refineries and OMCs as it poses significant risks to the financial sustainability of OMCs.”
He said imposing a take or pay clause would hamper competition, discourage new entrants, and ultimately harm the overall efficiency of the petroleum supply chain. He also said the proposed clause overlooked refineries’ opportunistic behavior as they often withheld supply when prices were expected to rise, forcing OMCs into costly imports, and offloaded maximum stock when prices fell, causing financial losses to OMCs.
Given these circumstances, it was unreasonable to expect OMCs to bear inventory losses while refineries remained insulated from the market’s volatility, Ali said.
“The proposed mechanism must be accompanied by a robust enforcement framework ensuring that refineries adhere to the same rules of fair play and supply commitments, regardless of market price trends,” he added, urging OGRA to convene an inclusive consultative meeting with equal representation of all stakeholders, including small and medium OMCs, before finalizing a decision.
“MUTUALLY AGREEABLE CONTRACTS“
The conflict has emerged after five leading oil refineries wrote a letter to the OGRA chairman, arguing that OMCs had frequently failed to pick up agreed quantities of High-Speed Diesel (HSD) and Motor Gasoline (MOGAS), which had disrupted refinery operations and threatened supply chain stability. The refineries said while they maintained commercial agreements with OMCs, it was OGRA’s responsibility to enforce compliance with these contracts.
The refineries pointed to Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016, which mandates that local production must be prioritized before allowing imports. Keeping this in mind, they have supported OGRA’s suggestion of introducing a take or pay clause to ensure product uplift but say it should be implemented through mutual agreement and strict regulatory oversight.
“The engagement sessions with the OMCs will start soon,” OGRA spokesperson Ghaznavi said, “and OGRA will, in the best national interest and for achieving efficiency in the oil supply chain, mediate between refineries and OMCs for a mutually agreeable sale and purchase contracts.”
Aramco’s CEO calls for new global energy model during CERAWeek address
- ‘Investments in all sources is needed,’ says Amin Nasser
DHAHRAN: Aramco’s president and CEO has called for a fundamental shift in global energy transition planning, warning that the current approach risks severe economic and energy security consequences.
The planning of global energy transitioning needs a fundamental shift as the current approach is a severe economic risk, said Amin Nasser.
Delivering a keynote speech at CERAWeek 2025 in Houston on Monday, Nasser stressed the urgent need for a new global energy model that balanced sustainability, security, and affordability.
He pointed to annual funding needs of up to $8 trillion that would be required for global climate action and cautioned that neglecting conventional energy sources in the transition process could lead to dire outcomes, describing it as a “fast track to dystopia.”
Criticizing the belief that traditional energy sources could be rapidly phased out, Nasser said: “The greatest transition fiction was that conventional energy could be almost entirely replaced, virtually overnight. Hydrocarbons still provide over 80 percent of primary energy in the US, almost 90 percent in China, and even in the EU it is more than 70 percent.”
He added: “New sources add to the energy mix and complement existing sources; they do not replace them. New sources cannot even meet the growth in demand, while the proven sources needed to fill the gap are demonized and discarded. It is a fast track to dystopia, not utopia.”
Nasser also stressed that a new global energy model was essential to meet rising energy demand.
He said: “First, all sources must play a growing role in meeting rising energy demand in a balanced, integrated manner. Certainly, that includes new and alternative energy sources but they will complement conventional energy, not replace it in any meaningful way.
“So, we need investments in all sources. And to further free up such investments globally, we need extensive deregulation and greater incentives for financial institutions to provide unbiased financing. Second, the model must genuinely serve the needs of developed and developing nations alike, as originally promised, especially when it comes to technology. Third, and crucially, this has to be about delivering real results.”
Addressing the importance of reducing emissions, Nasser added that environmental concerns should remain at the forefront but must be approached pragmatically.
He said: “Let me be absolutely clear: This does not mean stepping back from our global climate ambitions. Reducing greenhouse gas emissions must still get the highest possible priority.
“That means prioritizing technologies that drive efficiency, lower energy use, and further reduce greenhouse gas emissions from conventional energy — and AI (artificial intelligence) will clearly be a game-changing enabler. But the future of energy is not only about sustainability; security and affordability must share the stage, with all energy sources working in harmony as one team, delivering real results.”
CERAWeek is one of the world’s most influential energy conferences, bringing together industry leaders, government officials, policymakers, and CEOs to discuss critical issues such as energy security, supply, climate, technology, and sustainability.
More than 10,000 participants from over 2,000 companies and 80 countries are attending this year’s event, which features over 1,400 expert speakers.
