SINGAPORE: The UAE Energy Minister Suhail Al-Mazrouei said on Friday he hopes that global supplies will start tightening in the second half of the year when demand picks up.
“We have seen healthy demand and a flattening of rig counts in the United States,” Al-Mazrouei told reporters.
“This is the beginning of the third quarter and demand picks up in the third quarter and I hope the agreement will have a significant impact in the third and fourth quarter.”
Brent crude oil prices remain just under the key $50 per barrel mark on concerns about high supplies from the Organization of the Petroleum Exporting Countries (OPEC) despite a pledge to cut output in a bid to tighten the market.
OPEC, together with some non-members like Russia, has extended a deal to cut production by 1.8 million barrels per day (bpd) to March 2018.
However, OPEC’s compliance slumped to 78 percent in June as higher-than-allowed output from Algeria, Ecuador, Gabon, Iraq, the UAE and Venezuela offset strong compliance from Saudi Arabia, Kuwait, Qatar and Angola, the International Energy Agency said last week.
“The UAE is committed to its cut,” Al-Mazrouei said.
“We have seen some increase in production in some of the countries that were not part of the agreement because of their special stance.”
Oil traders are looking ahead to Monday’s meeting between OPEC and non-OPEC members to see if it will address rising production from Nigeria and Libya, which have been exempted from the cuts.
OPEC’s Joint Ministerial Committee monitors compliance with the supply pact and will meet in St. Petersburg, Russia.
OPEC’s supply cuts have also been countered by rising US production, which has increased almost 12 percent since mid-2016 to 9.4 million bpd.
The number of rigs drilling for new US oil supply has also climbed since last year though the pace has slowed in recent weeks.
UAE energy minister hopes global oil supplies will begin tightening in second half
UAE energy minister hopes global oil supplies will begin tightening in second half
Australian-Saudi Business Council hosts joint forum to help boost trade
- Event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment
RIYADH: The Australian-Saudi Business Council hosted a joint forum on Thursday to discuss the enhancement of collaboration and trade between the two countries.
Led by Daniel Jamsheedi, the council’s country director, the event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment.
The event, a collaboration with the Federation of Saudi Chambers, aimed to build on the success of the first Australian Pavilion at the Future Minerals Forum in Riyadh this week, and further strengthen the economic partnership between the two countries, organizers said.
Sam Jamsheedi, the president of the council, thanked the federation for the vital role it played in the success of the forum.
“The Federation of Saudi Chambers is one of our key stakeholders and our partner within the Kingdom,” he said.
“As a business council, we appreciate the efforts put in to enable this joint business forum to succeed.”
Closing Bell: Saudi main index rises to close at 12,256
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 43.82 points, or 0.36 percent, to close at 12,256.06.
The total trading turnover of the benchmark index was SR6.14 billion ($1.63 billion), with 104 stocks advancing and 129 retreating.
Similarly, the Kingdom’s parallel market Nomu gained 198.90 points, or 0.64 percent, to close at 31,498.71, as 51 of the listed stocks advanced and 37 retreated.
The MSCI Tadawul Index also rose, gaining 9.13 points, or 0.60 percent, to close at 1,535.78.
The best-performing stock of the day was Shatirah House Restaurant Co., which debuted on the main market. Its share price surged 5.31 percent to SR22.62.
Other top performers included Fourth Milling Co., with its share price rising 4.49 percent to SR4.19, and Saudi Paper Manufacturing Co., whose share price surged 3.36 percent to SR67.70.
Riyadh Cables Group Co. recorded the biggest drop, falling 2.88 percent to SR141.80.
National Co. for Learning and Education also saw its stock price fall 2.73 percent to SR185.40.
Buruj Cooperative Insurance Co. also saw a drop in its stock price, falling 2.63 percent to SR22.22.
On the announcements front, the Arab National Bank has launched the offer of its SR-denominated additional tier 1 capital sukuk under its sukuk program.
According to a Tadawul statement, the amount, terms, and return on the sukuk will be determined later based on market conditions. The minimum subscription and par value are set at SR1 million.
The targeted investors are institutional and qualified clients in line with the Capital Market Authority’s regulations. HSBC Saudi Arabia and ANB Capital Co. are joint lead managers for the sukuk issuance.
Arab National Bank ended the session at SR21.10, with no change in price.
Tam Development Co. received a purchase order for a project worth SR29.45 million as part of a framework agreement with a government agency announced in March, with a total value of SR200 million.
Tam Development Co. ended the session at SR200, up 3.45 percent.
Saudi Real Estate Co. secured Shariah-compliant banking facilities from Bank Al-Jazira worth SR700 million. The facilities will finance ongoing and new projects, as well as expansion investments.
Part of the financing, up to SR100 million, will support working capital requirements. The loans have a one-year short-term tenure and a maximum of ten years for long-term loans, with promissory notes and real estate mortgages as guarantees.
Saudi Real Estate Co. ended the session at SR27.30, down 2.01 percent.
Saudi Ma’aden awards $921m contracts for its 3rd phosphate fertilizer plant
- Project designed to add 3 million metric tonnes annually to Kingdom’s phosphate production capacity
- Contracts align with Saudi Arabia’s broader strategy to diversify its economy and expand its industrial base
JEDDAH: Saudi Arabian Mining Co. has awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, reinforcing the Kingdom’s position in the global market.
In a filing with the Tadawul stock exchange, the national mining firm, also known as Ma’aden, named the contractors as China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co.
First announced in 2016, the project is designed to add 3 million metric tonnes annually to Saudi Arabia’s phosphate production capacity. Estimated to cost SR24 billion, the facility is being developed in phases and was initially projected to reach full capacity by 2024, the company said at that time.
The contracts align with Saudi Arabia’s broader strategy to diversify its economy and expand its industrial base. As part of Vision 2030, the Kingdom is capitalizing on its vast reserves of phosphate, gold, copper, and bauxite to reduce its reliance on oil.
Valued at approximately $2.5 trillion, the Saudi mining sector is regarded as the fastest-growing globally and is positioned as the third pillar of its industrial economy.
The three contracts awarded include an SR1.22 billion agreement for general construction at Ras Al-Khair with China National Chemical Engineering. A second contract, worth SR1.36 billion, was awarded to Sinopec’s subsidiary for construction at Wa’ad Al-Shamal. Tekfen Construction secured the third contract at SR877 million, with work at Wa’ad Al-Shamal included.
The development aligns with Ma’aden’s 2016 announcement of a feasibility study for a world-class phosphate fertilizer production complex in Wa’ad Al-Shamal Minerals Industrial City, situated in Saudi Arabia’s Northern Province.
Ma’aden announced significant discoveries of gold and copper in the Arabian Shield region during the Future Minerals Forum 2025 in Riyadh, further advancing its mining ambitions.
The discoveries include extensive gold deposits at Wadi Al-Jaww and copper reserves at Jabal Shayban. Mineralization at these sites extends from shallow depths of 20 meters to depths of up to 200 meters, highlighting their potential for large-scale extraction, the company added.
Ma’aden also unveiled promising developments at its Mansourah-Massarah gold mine, where drilling has revealed high-grade gold mineralization beyond the current pit design.
The financial impact of these discoveries is yet to be determined, Ma’aden said in a statement to the stock exchange.
MENA economic growth to accelerate to 2.9% in 2025, says Moody’s
RIYADH: Oil production and large investment projects will accelerate annual economic growth across the Middle East and North Africa by 0.8 percentage points in 2025, according to Moody’s.
The global credit rating agency forecasts growth of 2.9 percent this year, up from 2.1 percent in 2024, and also maintained a stable outlook for the credit fundamentals of sovereigns in the region over the next 12 months.
The agency emphasized that the impact of large investments will be most evident in Saudi Arabia, driven by high government and sovereign wealth fund spending linked to the Vision 2030 diversification program.
The projections align with those of global consultancy Oxford Economics, which expects regional gross domestic product to grow by 3.6 percent in 2025, outpacing the firm’s global forecast of 2.8 percent.
Moody’s added that the pickup in the MENA economy will be driven primarily by “stronger growth in the region’s hydrocarbon exporters because of a partial unwinding of strategic oil production cuts under the OPEC+ agreement.”
Alexander Perjessy, vice president and senior credit officer at Moody’s, said: “Large-scale investment projects, many of them part of longer-term government development and diversification agendas, will support non-hydrocarbon economic activity across the region.”
According to the credit rating agency, real gross domestic product growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in the previous year, as Saudi Arabia, the UAE, Iraq, Kuwait, and Oman ease the oil production cuts implemented in 2023.
In Qatar, growth in the small, gas-rich nation will be bolstered by the development of the petrochemical industry and construction activities related to the expansion of liquefied natural gas production capacity, set to come online between 2026 and 2030.
In Kuwait, non-hydrocarbon growth will be mainly driven by major projects, including the construction of a new port and a new airport terminal.
Meanwhile, Iraq’s non-hydrocarbon growth is expected to remain above pre-COVID levels, provided that improved domestic security conditions are sustained, driven by the gradual implementation of several transport and energy projects.
In the UAE, non-hydrocarbon growth will moderate slightly due to the completion of some infrastructure projects; however, it will remain robust, at around 5 percent in 2025.
Saudi ports handle 320.78m tonnes of cargo in 2024, up 14.45% year on year
JEDDAH: Saudi Arabia’s ports saw a significant surge in cargo handling in 2024, with a total of 320.78 million tonnes of goods processed, representing a 14.45 percent year-on-year increase. This growth underscores the enhanced operational efficiency of the Kingdom’s maritime infrastructure.
According to the Saudi Ports Authority, container exports rose by 8.86 percent, reaching more than 2.8 million twenty-foot equivalent units, up from 2.59 million TEUs in 2023. Meanwhile, total cargo processed across the Kingdom’s ports in 2023 stood at 300.54 million tonnes.
Mawani highlighted that the results reflect the ongoing improvements in Saudi ports’ infrastructure and operational capabilities, which are pivotal in fostering a sustainable maritime sector and supporting the nation’s economic and trade growth. These advances align with the National Transport and Logistics Strategy under Saudi Vision 2030, positioning the Kingdom as a global logistics hub.
Container imports also saw significant growth, increasing by 13.79 percent to reach 2.98 million TEUs, up from 2.62 million TEUs in 2023. Mawani’s announcement on Jan. 15 further noted that Saudi Arabia has climbed to 15th in the global ranking for container handling, as reported by the 2024 Lloyd’s List, reaffirming the Kingdom’s role as a key player in international logistics.
Three Saudi ports have now secured positions in the global top 100. Jeddah Islamic Port jumped from 41st to 32nd, King Abdullah Port advanced from 71st to 70th, and King Abdulaziz Port in Dammam improved from 90th to 82nd.
The overall volume of general cargo grew by 30.39 percent, reaching nearly 10 million tonnes, compared to 7.65 million tonnes in 2023. Solid bulk goods saw a 6.23 percent rise, totaling 52.12 million tonnes, up from 49.06 million tonnes. Liquid bulk goods grew by 16.29 percent, reaching 177.44 million tonnes, up from 152.58 million tonnes. Additionally, livestock imports saw a 19.63 percent increase, totaling 9.72 million heads, up from 8.12 million in 2023.
However, the total number of containers handled fell by 10.93 percent, amounting to 7.52 million TEUs compared to 8.44 million TEUs in 2023. Transshipment containers also declined by 46.74 percent, totaling 1.72 million TEUs, down from 3.24 million TEUs in 2023.
Maritime traffic decreased by 4.56 percent, with a total of 11,579 vessels visiting Saudi ports, compared to 12,132 vessels in 2023. Passenger traffic also dropped by 27.02 percent, totaling 736,177 passengers, down from 1.01 million the previous year. The number of vehicles handled at Saudi ports fell by 4.38 percent, with 1.09 million cars processed, compared to 1.14 million in 2023.
In December 2024, Saudi ports saw a 9.27 percent increase in cargo volume, reaching 27.46 million tonnes, compared to 25.13 million tonnes in the same month the previous year. Container handling also rose by 5.77 percent, totaling 711,170 TEUs, up from 672,373 TEUs in December 2023.
Mawani also announced several major initiatives in 2024, including agreements and groundbreaking projects to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with a combined private sector investment of approximately SR2.9 billion ($773 million). These efforts are part of a broader strategy to enhance the attractiveness of Saudi ports and reinforce the Kingdom’s position as a global trade and logistics center.
These initiatives are included in a larger SR10 billion investment plan aimed at developing 18 logistics parks across Saudi terminals, all overseen by Mawani. Notably, Mawani highlighted the opening of Maersk’s largest global logistics investment at Jeddah Islamic Port, a project worth SR1.3 billion, spanning 225,000 sq. meters.