Uber targets business users in Saudi Arabia with new platform

Ride hailing app Uber is targeting more business customers in Saudi Arabia, where it competes with regional rival Careem. (AFP)
Updated 24 August 2017
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Uber targets business users in Saudi Arabia with new platform

LONDON: Uber has launched a new version of its platform that targets business users in Saudi Arabia as the ride hailing app looks to boost its Gulf footprint.
It claims the new version of Uber for Business will save companies money by automating business travel.
The technology company’s original focus with the platform was to help Saudi firms' transportation costs and logistics, with features such as monthly billing.
But thanks to businesses experiences of using the platform Uber has updated it and released a new version, claiming it will, among other things, help employees stay safe when leaving the office at night and offer perks for efficient commuting.
An Uber spokesperson said: “Our customers were asking us to solve some of their most pressing business challenges. We are excited to introduce a new version of Uber for Business aimed at making it easier for organizations in Saudi Arabia to manage everything they need to do with Uber. “This means cost savings, because they can ensure that employees travel within company policy.”
Despite the relatively low cost of public taxis in the Gulf, companies such as Uber and regional rival Careem have rapidly expanded over the last two years.
Among the new features that Uber hopes will improve the lives of employees in the Kingdom and save costs for their companies are Set-and-Forget travel programs. This tool allows for managers to set up automated programs for business travel.
For example, the platform allows managers to set up a ‘late night rides’ policy that only works for trips taken between work and home after 8p.m.,” an Uber spokesperson said.
“The company can choose how much to fund per trip, and if employees need to take longer trips, it’s no problem, everything over the spend allowance will be charged to their payment method of choice.”
Another new tool allows companies to set rules for employees, clients and customers, deciding the type of car they can ride in or the time of day the trip has to take place.
“Businesses can provide customized levels of Uber access depending on each person’s needs,” the Uber spokesperson added.
“For example, you can give all of your employees $10 or more for their daily commute, while giving recruiters special access to call rides for candidates via Uber Central. By segmenting your organization by team, level, or location, you can take your transportation policies out of the back office and easily bring them to life.”
Uber generated $6.5 billion in revenue in 2016 after gross bookings doubled to more than $20 billion, the company said in April.
Still, it reported an adjusted net loss of $2.8 billion. The private company is thought to be worth about $68 billion.


Saudi Arabia raises $910m in November sukuk offering 

Updated 9 sec ago
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Saudi Arabia raises $910m in November sukuk offering 

RIYADH: Saudi Arabia’s National Debt Management Center has completed its riyal-denominated sukuk issuance for November, raising SR3.41 billion ($910 million), a 28.19 percent year-on-year increase. 

In October, the Kingdom issued sukuk worth SR7.83 billion, while the figures for September and August were SR2.6 billion and SR6.01 billion, respectively.  

Sukuk, also known as Islamic bonds, are Shariah-compliant debt products that allow investors to gain partial ownership of an issuer’s assets until maturity. 

Saudi Arabia’s consistent sukuk issuances align with a report released by Moody’s in September, which stated that the global markets for these Islamic bonds are expected to remain strong in 2024.  

The report also projected that the issuance of Shariah-compliant bonds could reach between $200 billion and $210 billion this year, up from just under $200 billion in 2023. 

According to a statement by the NDMC, the November sukuk issuance was divided into five tranches. The first tranche, valued at SR2.52 billion, is set to mature in 2029. 

The second tranche was valued at SR434 million and will mature in 2031, while the third tranche amounted to SR137 million, with a maturity date in 2034. 

NDMC stated that the fourth tranche, sized at SR10 million, is scheduled to mature in 2036. The fifth tranche, valued at SR310 million, will mature in 2039. 

A report by Fitch Ratings in October highlighted that sukuk issuances are on the rise, driven by improving financing conditions following the US Federal Reserve’s rate cuts to 5 percent in September. 

Fitch noted that global sukuk outstanding reached $900 billion by the end of the third quarter of 2024, an 8.5 percent increase compared to the same period in 2023.  

The report further projected that interest rates could decline to 4.5 percent by the end of 2024 and 3.5 percent in 2025, likely boosting sukuk issuances in the short term. 

In August, Fitch reported that the UK remains a significant hub for Islamic finance, with the London Stock Exchange ranking as the third-largest listing venue for US dollar sukuk globally. 

Saudi Arabia’s continued momentum in sukuk issuances reflects its commitment to developing the Islamic finance market as a core component of its Vision 2030 economic diversification strategy.


Developing nations push for action on COP29 financing shortfalls

Updated 19 November 2024
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Developing nations push for action on COP29 financing shortfalls

RIYADH: Developed nations are facing growing pressure at COP29 to honor their climate finance commitments, as developing countries push for action to address the severe shortfalls in adaptation funding and the escalating environmental challenges they face.

The ongoing dispute centers around how much support developed nations will provide to poorer countries in their efforts to combat the impacts of climate change.

Representatives from vulnerable nations have emphasized the urgent need for concrete financial commitments, highlighting the widening gaps in adaptation funding.

Financing gaps undermine efforts

Kenya called for an end to the adaptation finance gap, urging increased financial flows to meet the continent’s needs. “Developing countries are not receiving the resources they need,” said Kenya’s representative. “Africa’s adaptation needs are the highest globally, estimated at $845 billion between 2020 and 2035, yet we receive less than a quarter of that annually.”

Bangladesh echoed these concerns, revealing a stark $5.5 billion annual shortfall in funding for resilience projects. “This gap must be filled through grant-based and external finance,” said Bangladesh’s representative.

Several developed nations have outlined their efforts to scale up adaptation financing. Germany highlighted that 30 percent of the EU’s current seven-year budget is allocated to climate-related initiatives, including $30 billion for nationally determined contributions and climate goals, and $12 billion for public climate adaptation finance.

France pledged €2 billion annually by 2025 for adaptation in developing countries, exceeding its previous commitments. Canada reported progress toward its goal of doubling adaptation finance by 2025, as per the Glasgow Climate Pact, but acknowledged the need for more expansive action. “Public finance alone won’t suffice,” said Canada’s representative. “We need coordinated global efforts, innovative instruments, and stronger policy signals to ramp up climate-resilient investments,” the representative continued.

UAE calls for scaling up adaptation finance

“The outcome of the first global stocktake under the UAE consensus underscores a stark reality: we are not on track to meet the adaptation needs of developing countries,” said the UAE’s representative. “Climate change disproportionately affects vulnerable communities who have contributed the least to global emissions. Adaptation is not a choice, but a necessity,” he continued.

The UAE underscored the widening adaptation finance gap, which is estimated to reach hundreds of billions of dollars annually by 2030.

“A critical component of COP28 was the UAE framework for global climate resilience, establishing targets for adaptation planning and implementation,” the representative noted. The UAE consensus calls for all parties to have national adaptation plans in place by 2025, with tangible progress on implementation by 2030.

“We urge developed countries to significantly scale up adaptation finance beyond the doubling committed at COP26,” the UAE added.

“This scaling up is crucial to meet the urgent and growing needs of developing countries.”

Rejecting allegations of involvement in the Sudanese conflict, the UAE reaffirmed its commitment to humanitarian aid and efforts to support a legitimate, civilian-led government in Sudan.

“We reject these baseless claims and emphasize our continued support for de-escalation, ceasefires, and aiding Sudanese civilians,” said the representative.

Jordan called for “predictable and transparent commitments” and expedited disbursements, emphasizing the challenges faced by water-scarce nations grappling with severe droughts.

Sudan urged for technological transfer and funding to recover from devastating floods, which caused $48 million in damages this year. Palestine raised concerns about barriers to accessing climate funds, citing “non-technical issues” that prevent direct support despite eligibility.

Kazakhstan stressed the importance of concessional financing, saying, “We need mechanisms that are accessible and predictable to address vulnerabilities and ensure funds flow directly to communities.”

Developing countries call for urgent action

“Adaptation is not a choice but a necessity,” reiterated the UAE representative, highlighting the disproportionate burden borne by vulnerable nations.

Qatar called for creative solutions to close the adaptation finance gap, urging developed countries to double financial support and focus on the implementation phases to maximize impact.

China demanded that developed countries clarify timelines for doubling adaptation financing, stating, “They must deliver on their commitments and prioritize vulnerable nations.”

As COP29 unfolds, the debate over adaptation financing underscores the urgent need to bridge the gap between pledges and tangible action. The world’s most vulnerable communities are watching closely, demanding that words translate into real solutions.


GAMI showcases achievements at maritime forum in Dhahran

Updated 19 November 2024
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GAMI showcases achievements at maritime forum in Dhahran

RIYADH: Saudi Arabia’s General Authority for Military Industries highlighted its achievements in local military ship and boat manufacturing, as well as maintenance capabilities, at the 3rd International Saudi Maritime Forum.

In a press statement, GAMI noted that its pavilion also showcased specialized expertise in hull construction and system integration. Established in 2017, GAMI is tasked with regulating, monitoring, enabling, and licensing the Kingdom's military and security industries.

As part of its mission to strengthen the defense sector, GAMI aims to support the growth of Saudi Arabia's military industries and contribute to the country's economic development. The authority also plays a key role in achieving Saudi Vision 2030 by aiming to localize more than 50 percent of government defense spending by 2030.

The GAMI pavilion, inaugurated by Abdullah bin Abdulaziz Al-Hammad, GAMI’s deputy governor for strategic planning and execution, was presented to over 55 national and international organizations from 22 countries, including military specialists and academics from both Saudi Arabia and abroad.

The 3rd Saudi International Maritime Forum, organized by the Royal Saudi Naval Forces, kicked off on Nov. 19 in Dhahran and will run through Nov. 21.

The forum is focusing on key developments in regional and international maritime security, while also highlighting the latest technologies, equipment, and maritime systems at both local and global levels.

 


Saudi Arabia pledges support in combating global financial crimes

Updated 19 November 2024
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Saudi Arabia pledges support in combating global financial crimes

RIYADH: The global fight against money laundering, terrorism financing, and the proliferation of arms remains a pressing issue, as Saudi Arabia’s central bank governor emphasized the need for international collaboration to address these challenges.

Ayman Al-Sayari, governor of the Saudi Central Bank, reiterated the Kingdom’s commitment to advancing these efforts, stating, “We affirm Saudi Arabia’s keenness to unify joint regional efforts in combating money laundering, financing terrorism and the proliferation of arms, and overcoming the challenges facing all countries.”

His comments came during the conference on “The Latest Developments in Combating Money Laundering, Financing Terrorism, and the Proliferation of Arms,” held on the sidelines of the 39th General Meeting of the Middle East and North Africa Financial Action Task Force in Riyadh.

Marking the 20th anniversary of MENAFATF’s establishment, Al-Sayari highlighted its role in raising awareness and supporting regional adherence to international standards. “Today we celebrate the 20th anniversary of the establishment of the MENAFATF group, which has contributed to raising awareness, deepening understanding of international requirements at the regional level, and helping relevant authorities enhance their commitment to these requirements,” he said.

Al-Sayari also praised Saudi Arabia’s domestic initiatives aimed at strengthening compliance and combating financial crimes.

“We commend the efforts of the relevant authorities in Saudi Arabia through standing committees to enhance efforts and raise commitment to international requirements,” he added.

According to a UN report, an estimated 2 to 5 percent of global gross domestic product—equivalent to $800 billion to $2 trillion—is laundered each year. However, the clandestine nature of money laundering makes it difficult to determine the exact volume of illicit funds in circulation.

Acknowledging the evolving nature of financial crimes, Al-Sayari emphasized the need for proactive legislative and regulatory measures. “In light of the rapid development of money laundering, terrorism financing, and arms proliferation methods, countries must strengthen their legislative and regulatory frameworks to keep pace with these fast-evolving challenges,” he said.

Al-Sayari also affirmed Saudi Arabia’s alignment with the Financial Action Task Force under Mexico’s presidency, reinforcing the Kingdom’s support for global efforts to combat illicit financial flows. “Saudi Arabia participates actively in the FATF’s discussions to ensure that cross-border transfers are more efficient, transparent, and comprehensive without compromising due diligence obligations and measures,” he added.

Elisa Madrazo, president of the FATF, also addressed the conference, highlighting the importance of coordinated global efforts to combat financial crimes. Her remarks underscored FATF’s ongoing commitment to fostering collaboration among member countries and ensuring adherence to international standards.

During the conference, Al-Sayari met with Madrazo to discuss recent developments and shared interests in anti-money laundering efforts, combating terrorist financing, and addressing the financing of arms proliferation.


Aramco signs agreement to advance SASREF expansion

Updated 19 November 2024
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Aramco signs agreement to advance SASREF expansion

RIYADH: Energy giant Saudi Aramco and China-based Rongsheng Petrochemical Co. have signed a framework agreement to boost the expansion of a subsidiary of the state-owned oil company.

According to a press statement, the tripartite agreement outlines a cooperation framework and detailed plans to design and develop Saudi Aramco Jubail Refinery Co. or SASREF. The initiative is expected to enhance SASREF’s refining and petrochemical capabilities.

The deal follows an announcement made in April that Aramco and Rongsheng Petrochemical had signed a partnership agreement related to the planned formation of a joint venture in SASREF. 

Aramco’s long-standing relationship with China spans more than three decades.

This new framework agreement is part of the company’s broader strategy to solidify its position in the global energy landscape while supporting the Kingdom’s economic growth.

“By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders,” said Aramco Downstream President Mohammed Al-Qahtani.

He added: “This development framework agreement underscores Aramco’s intentions to foster closer collaboration with key partners and progressing its strategic downstream expansion, both in Saudi Arabia and internationally. It also highlights the potential of the Kingdom’s downstream sector to attract overseas players.”

Li Shuirong, chairman of Rongsheng Petrochemical, said that the collaborative project will contribute to Saudi Arabia’s Vision 2030 program and China’s Belt and Road initiative. 

“The signing of the development framework agreement sets the stage for Rongsheng Petrochemical’s in-depth participation in the SASREF expansion project,” said Shuirong. 

He added: “Saudi Arabia has abundant energy resources and significant market potential, and Rongsheng Petrochemical will bring strong momentum to the partnership through our excellent operation and management capabilities and market competitiveness.” 

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in the Kingdom’s Eastern Province. 

The project, which is currently in the pre-front-end engineering design stage, envisages the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex, enhancing its ability to meet the growing demand for high-quality petrochemical products, the statement added. 

Earlier in November, Aramco, in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., started the construction of a refinery and petrochemical complex in the Asian nation’s Fujian province. 

The undertaking, which is expected to be fully operational by the end of 2030, includes an oil refinery with a capacity of 320,000 barrels per day, according to a press statement.

It will also have a 1.5 million tonnes-per-year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.