HONOLULU: In an eleventh-hour push for environmental protection before he leaves office, President Barack Obama is placing an indefinite ban on oil drilling in huge swaths of the Arctic and Atlantic oceans.
The move helps put some finishing touches on Obama’s environmental legacy while also testing President-elect Donald Trump’s promise to unleash the nation’s untapped oil and natural gas reserves. Environmental groups were hoping the ban, despite relying on executive powers, would be difficult for a future president to reverse.
A permanent ban would mark the culmination of a slow reversal by Obama’s administration, which had been considering opening a broad area of the Atlantic Coast to drilling, but then backed away from that idea. Earlier this year, the administration removed potential Atlantic lease sales from its blueprint for offshore drilling. But that ban only applies to a five-year period starting in 2017, and could be more easily reversed by Trump in his own five-year blueprint.
In issuing a permanent ban, Obama appears to be trying to tie the hands of his successor. Trump has vowed a domestic energy revolution and is filling his Cabinet with nominees deeply opposed to Obama’s environmental and climate change actions.
Along the Atlantic seaboard, states have had mixed reactions to the possibility of drilling. In Florida, the administration of Gov. Rick Scott, a Trump supporter, has raised concerns about the possible effects to the state’s beaches and fishing industry, and residents in North Carolina’s Outer Banks protested a move toward ocean drilling. But officials in South Carolina and Virginia have expressed support for the economic benefit of new oil jobs.
Environmental groups were calling for a permanent ban even before the presidential election, but Trump’s victory has provided greater urgency for them and for businesses that rely on tourism and fishing. Trump has said he intends to use all available fuel reserves for energy self-sufficiency — and that it is time to open up offshore drilling.
Industry groups are confident that the ban will not stand and Trump can simply issue a new proclamation after taking office that would allow for oil and gas production in the Atlantic. They point to President George W. Bush, who in July 2008 lifted some executive bans on Outer Continental Shelf leasing and drilling.
“There is no such thing as a permanent ban,” said Erik Milito, a policy director at the American Petroleum Institute.
But Niel Lawrence, a senior attorney at the Natural Resources Defense Council, said the result of a Trump proclamation is not so clear-cut. He said the statute says a president can withdraw waters from the country’s leasing plans and “it does not say you can put back in.”
If Trump does issue an order reversing Obama’s proclamation, it would be up to environmental groups or others to challenge his actions in court. If he does not, then it would be up to Congress to intervene.
“My guess is that Congress has better things to do,” Lawrence said. “The industry is not clamoring to get into these places. Any return on investment is decades away.”
The Trump administration could also take a more gradual approach of changing the nation’s five-year leasing plan to put the waters back in play. That would buy groups on both sides time to make their case about the need or lack thereof to drill off the Atlantic coast.
Milito said keeping oil and gas production in the Atlantic as an option is important in the event US reserves elsewhere are depleted. The US should not have to rely on other countries for oil and gas supplies to ensure affordability and availability, he said.
“We have to look to the future so that we can maintain our status as an energy superpower and so that we can continue to rely on US oil and gas production to fulfill our economic needs,” Milito said.
Fourteen senators have signed a letter calling on Obama to ban offshore drilling permanently. Sen. Robert Menendez, D-N.J., disputed the notion that future administrations could undo Obama’s order without congressional approval.
“Declaring the Atlantic and the Arctic off-limits to Big Oil is a step the president can take immediately to show that we as a nation are committed to the future of our shore towns, our beaches and our environment,” Menendez said.
Obama bans oil drilling in Arctic, Atlantic oceans
Obama bans oil drilling in Arctic, Atlantic oceans
Egypt sees 181% growth in financial inclusion over 8 years
- Central bank initiatives boost access to financial tools for millions
RIYADH: Financial inclusion in Egypt has surged by 181 percent over the past eight years, with 71.5 percent of eligible citizens gaining access to banking services by mid-2024, according to an official report.
The Central Bank of Egypt revealed that the number of citizens with access to transactional accounts — including bank accounts, Egypt Post accounts, mobile wallets, and prepaid cards — has risen to 48.1 million out of 67.3 million eligible individuals aged 16 and above.
A range of tailored initiatives, such as the CBE’s financial inclusion events, held six times a year since 2017, have played a crucial role in broadening access. These events have waived fees, eliminated minimum balance requirements, and targeted underserved populations, including women, youth, and persons with disabilities.
The report highlights that these initiatives have resulted in the issuance of 7.5 million prepaid cards, 2.5 million mobile wallets, and 7.5 million bank accounts.
One of the key initiatives is a program supporting smallholder farmers in collaboration with the UN World Food Programme. This effort integrates small farmers into the formal financial sector by providing tailored financial solutions that enhance their economic and social capabilities.
In addition, the CBE has partnered with the National Council for Women and the Agricultural Bank of Egypt to expand digital savings and lending groups aimed at increasing women’s financial inclusion. These groups promote savings, raise awareness of fintech applications, and encourage the adoption of digital financial services.
The financial inclusion drive is aligned with Egypt’s Decent Life initiative, launched in July 2021. This program focuses on improving living standards for rural populations, reaching 20 governorates, 52 centers, and 1,667 villages by expanding access to financial services and supporting underserved communities.
Since its launch, the program has seen the installation of 1,254 new ATMs, the opening of 651,900 bank accounts, and the issuance of 993,000 prepaid cards.
The CBE’s emphasis on financial inclusion has also had a significant impact on Egypt’s broader economic landscape. Between December 2015 and June 2024, financing for micro, small, and medium-sized enterprises grew by 388 percent. Microfinance portfolios in both banking and non-banking sectors have expanded by over 1,350 percent, thanks to CBE-backed initiatives.
In underserved areas, funding has increased substantially. Facilities directed toward the Delta region grew by 72 percent, while Upper Egypt saw a 59 percent rise in funding from December 2020 to June 2024. Financing for the industrial sector also rose by 61 percent during this period, reflecting targeted efforts to channel capital into job-creating sectors and reduce unemployment.
As of June 2024, Egypt’s total microfinance portfolio reached 93.2 billion Egyptian pounds ($1.8 billion).
This robust growth in financial inclusion underscores Egypt’s commitment to expanding economic opportunities, reducing poverty, and fostering inclusive development across the nation.
Pharmaceuticals and food sectors key focus of Saudi ministers’ Egypt trip
RIYADH: Boosting pharmaceutical ties was the centerpiece of a visit by leading Saudi ministers to Egypt as the two countries sought to enhance industrial cooperation and explore investment opportunities.
The Kingdom’s Minister of Industry Bandar Alkhorayef traveled to the north African country on Dec. 15, with a focus on boosting collaboration in the industrial and mining sectors while identifying mutual opportunities in areas such as food and pharmaceuticals, according to a statement.
He was joined by Deputy Minister Khalil bin Salamah, Saudi Export-Import Bank CEO Saad Al-Khalb, and Saudi Export Development Authority CEO Abdulrahman bin Sulaiman Al-Thukair.
During the visit, Alkhorayef met with senior Egyptian officials and major private sector leaders to highlight Saudi Arabia’s competitive investment environment, incentives for investors, and strategic industrial priorities, the Saudi Press Agency reported.
The official visit aims to strengthen the countries’ strategic partnership. In 2023, Saudi Arabia’s non-oil exports to Egypt amounted to SR9.9 billion ($2.6 billion), while non-oil imports from Egypt totaled SR9.6 billion.
A key highlight of the trip was a tour of Almarai’s “Beyti” factory in Beheira Governorate, where Alkhorayef reviewed its role in local community development and supply chain localization. He also visited several pharmaceutical facilities to gain insights into Egypt’s manufacturing expertise.
Bin Salamah held bilateral talks with Mohamed Zaki El-Sewedy, chairman of Egypt’s Federation of Industries, with the discussions focused on encouraging the private sector to capitalize on available industrial investment opportunities across both countries.
The deputy minister also met with executives from leading pharmaceutical companies, including Minapharm, to discuss localizing medical industries in Saudi Arabia and exploring potential collaboration in biopharmaceutical manufacturing.
He also held talks with officials from Eva Pharma around opportunities in generic pharmaceutical production and veterinary vaccines.
Additionally, there were discussions with the chairman of Medical Union Pharma regarding the integration of active pharmaceutical ingredients in the Saudi market, with a focus on both chemical and biological components.
Moreover, Bin Salamah met with the chairman of the British Egyptian Co. for General Development, also known as Galina, to explore potential investment opportunities in Saudi Arabia and discuss the growth of the frozen and packaged fruits and vegetables trade.
The meeting also emphasized leveraging Industry 4.0 technologies to boost productivity in both nations’ industrial sectors.
Pakistan stocks cross 116,000 mark as interest rate cut expected today
- Central bank has already slashed interest rates by 700 basis points in four consecutive meetings since June
- Poll by Topline Securities shows 71 percent participants expect central bank to announce minimum rate cut of 200bps
ISLAMABAD: The Pakistan Stock Exchange (PSX) smashed past the 116,000 mark during intraday trading on Monday on anticipation that the central bank will slash the interest rate at the monetary policy meeting today, analysts said.
The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities published earlier this month, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps.
The benchmark KSE-100 index climbed 1,932.63 or 1.69 percent to reach an intraday high of 116,234.43 points at 2:58 p.m. from the previous close of 114,301.80.
“Anticipation of a sharp interest rate cut together with strong liquidity with mutual funds is driving the market up,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. “It is a broad-based increase, with only banks in the red today on fears of higher taxation.”
The upward surge was driven by the anticipation of a “sharp interest rate cut” by the State Bank, boosting economic growth, corporate profitability and strong liquidity in mutual funds fueled by increased investor confidence and higher savings rates.
Pakistani stocks have been performing significantly well this month, closing at record highs multiple times.
“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
Middle East holds highest growth potential for private capital in 2025: Report
- Asset managers surveyed private equity and venture capital as the top investment opportunities
- Survey was carried out on the sidelines of Apex Invest Abu Dhabi in November
RIYADH: The Middle East region is offering the highest growth potential for private capital in 2025, driven by government initiatives and sectoral reforms, according to a survey.
The Apex Group, the London-based financial solutions provider behind the poll, said asset managers surveyed private equity and venture capital as the top investment opportunities in the Middle East.
As detailed in the survey, which was carried out on the sidelines of Apex Invest Abu Dhabi in November, 39 percent of the attendees shared bright prospects for private capital deployment in the region.
A report released by Wamda this month revealed that startups in the Middle East and North Africa region raised $258 million in November, representing a 92 percent rise compared to the previous month.
“The Middle East remains an attractive proposition for asset managers. Various government initiatives, private sector reforms, and strong capital inflows are driving investment into the region’s domestic markets,” said Christiane El Habre, regional managing director, Middle East at Apex Group.
“This is creating opportunities for asset managers who can allocate capital productively and create returns via active management strategies,” she also said.
El Habre added that the survey results directly reflect the growing maturity of the asset management landscape in the Middle East region.
Despite the optimistic outlook, attendees highlighted several challenges in achieving portfolio diversification goals, with 54 percent underlining access to quality assets as a key constraint.
Some 21 percent of the attendees who took part in the survey said that market volatility is also a major factor that is impeding progress, while 13 percent opined regulatory constraints and capital-raising challenges as causes of concern.
The survey report revealed that 30 percent of the poll participants considered the Asia-Pacific region as a good destination for private capital deployment, while 22 percent preferred North America.
Europe, Africa, and South America were rated less in the survey for deployment of private capital due to various socioeconomic and geopolitical factors, said Apex Group.
Some 88 percent of the survey panelists said that public equity and venture capital firms are increasingly engaged with portfolio companies to drive returns and safeguard impact.
The Apex Invest Abu Dhabi event witnessed the participation of senior representatives from prominent regional asset managers, including Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and Abu Dhabi Investment Authority, as well as key members from family offices and investor institutions.
Saudi Arabia spotlights private sector’s role in driving logistics transformation
- Kingdom is seeking to become a global logistics hub by leveraging its strategic location at the crossroads of Asia, Africa, and Europe
- Saudi Arabia currently ranks first globally for road connectivity
RIYADH: Saudi Arabia’s private sector is playing a pivotal role in driving the Kingdom’s transformation into a global logistics hub, a top official said.
Speaking at the sixth edition of the Supply Chain And Logistics Conference in Riyadh, Rumaih Al-Rumaih, vice minister of transport and logistics services and president of the Transport General Authority, highlighted the critical contributions from businesses.
“The main player in achieving anything in the logistics sector is the private sector. Truly, the private sector is the one delivering results. The government’s role is to enable,” Al-Rumaih said.
He added: “If we visit the exhibition, we’ll see the private sector at the forefront, not the government because they are the real achievers.”
Saudi Arabia is seeking to become a global logistics hub by leveraging its strategic location at the crossroads of Asia, Africa, and Europe. Through its Vision 2030 plan, the Kingdom is investing in transport, infrastructure, and technology to reduce oil dependence and modernize supply chains.
Al-Rumaih credited the economic diversification initiative for providing a structured roadmap, stating: “This did not happen by chance; it was a clear vision and target. The Kingdom’s strategic location connects three continents, making it a natural global logistics hub.”
He also emphasized the private sector’s role in forging strategic partnerships with major global players, saying: “The private sector responded to Vision 2030 by growing rapidly and forming partnerships with major players like CEVA, DSV, and DB Schenker.”
Building infrastructure
Bader Al-Dulami, vice minister of transport and logistics services for road affairs, underscored the importance of infrastructure in enabling success.
“The road sector is undoubtedly one of the most significant enablers of the logistics sector. There is no logistics sector without roads that connect various destinations,” Al-Dulami said.
He added: “There is no successful logistics sector without a network of safe, high-quality roads that can accommodate the increasing demand in this sector.”
Saudi Arabia currently ranks first globally for road connectivity, a milestone Al-Dulami attributed to sustained investment and strategic planning.
“Through joint efforts, we have managed to reduce accident rates significantly. From 2016 to the present, the accident rate has decreased by more than half — a 50 percent reduction,” he said.
The vice minister continued: “In 2016, there were 28 deaths per 100,000 people; today, it is less than 13 deaths per 100,000. However, our journey is far from over, as we aim to achieve the target of reducing this number to five by 2030”
Road maintenance
Al-Dulami announced plans for phase two of performance-based maintenance contracts, which will incorporate advanced technologies to enhance road sustainability.
“The private sector will play a key role, especially in the operation and maintenance of roads. By the end of this month, we will launch phase two of performance-based maintenance contracts,” he said.
“These contracts will incorporate a wide range of modern technologies that will be applied to roads. Many privatization projects have also been initiated,” Al-Dulami added.
He emphasized the importance of collaboration with the private sector, describing it as a reliable and dynamic partner.
“The private sector is a true partner that communicates its needs to us. We are not rigid when it comes to making changes that could benefit this sector,” Al-Dulami said.
He continued: “On the contrary, we are extremely agile, and what you see today in terms of change and development is a result of this openness to everything new and everything that contributes to advancing this sector.”
Ambitious goals
Concluding the session, Al-Rumaih reaffirmed the Kingdom’s ambitious goals.
“We will not stop here. Our aspirations are sky-high, and the journey to position Saudi Arabia as the top global logistics hub continues,” he said.
The two-day Supply Chain And Logistics Conference brought together industry leaders, government officials, and stakeholders to showcase Saudi Arabia’s achievements and explore further opportunities for public-private collaboration in the logistics sector.
In his keynote speech on the conference’s second day, Ahmed Al-Hassan, assistant minister of transport and logistics services, highlighted the ministry’s expanded role.
“The ministry has transitioned from executing projects to supervising strategies that align with national goals and enhance global competitiveness,” he said.
Al-Hassan praised initiatives like the Global Logistics Forum – held in Riyadh in October – describing it as a key platform for attracting international investments and strengthening Saudi Arabia’s role as a leader in the sector.
