HANOI: Vietnam’s leading property developer Vingroup said on Saturday it launched construction of a car factory in a project worth $1 billion-$1.5 billion in the first phase.
The project is part of Vingroup’s expansion plan into the heavy industry of Vietnam, its vice chairman was quoted as saying in a statement, following similar moves in other major sectors such as retail and health care.
Vingroup said it hopes to become a top car manufacturer in the Southeast Asian region, making 500,000 cars per year by 2025.
The company expects to produce 100,000-200,000 vehicles per year in the first phase, including 5-seat sedans, 7-seat SUV and electric motorbikes.
Vingroup’s spokeswoman told Reuters the factory would introduce the first electric motorbikes in 12 months and first cars in 24 months.
Its construction brand VINFAST signed a memorandum to borrow $800 million from Credit Suisse to build the 335-hectare factory, located in Vietnam’s northern city of Haiphong.
VINFAST plans to buy blueprints of car engines and main mechanical systems from top European and American designers.
Vietnam’s Vingroup starts construction on car factory
Vietnam’s Vingroup starts construction on car factory
Saudi Arabia launches duty exemption for industrial inputs to boost exports
RIYADH: The Saudi Export Development Authority has launched a new service, “Exemption for Export,” aimed at enhancing Saudi Arabia’s industrial competitiveness.
The initiative, developed in collaboration with the Ministry of Industry and Mineral Resources, allows industrial companies to benefit from customs duty exemptions on inputs used for the production of export goods, aligning with the Kingdom’s Vision 2030 goal of diversifying the economy and boosting non-oil exports.
The service, which applies to industrial inputs such as labor, raw materials, fuel, equipment, and buildings, is designed to provide a competitive advantage to Saudi manufacturers by reducing costs associated with exports.
To qualify, companies must hold a valid industrial license and submit a request for exemption for materials listed under the Ministry of Industry and Mineral Resources’ approved industrial capacities. Additionally, the materials must match those specified in the company’s industrial license.
Eligibility for the exemption is also determined by a company’s export performance over the past 12 months. Once approved, the process is quick and efficient, with exemption requests typically processed within five business days.
Companies can access the service via the “Sina’ai” platform, provided by the Ministry of Industry and Mineral Resources, where they can apply for the customs exemption under the export category.
This new service addresses key challenges faced by Saudi Arabia’s industrial sector, streamlining the export process and encouraging businesses to expand their reach to international markets.
According to the Saudi Export Development Authority, the initiative is in line with efforts to support exporters and help achieve Saudi Vision 2030 objectives.
“This initiative aims to diversify the Kingdom’s income sources, strengthen non-oil exports, and foster sustainable growth by offering innovative solutions that meet the needs of exporters and promote the competitiveness of national industries,” the statement said.
The Kingdom’s ongoing push for economic diversification, under Vision 2030, has led to significant investments in non-oil sectors. Enhancing the industrial sector's global competitiveness is a cornerstone of this vision, and non-oil exports have steadily increased in recent years.
The Saudi Export Development Authority, in partnership with the Ministry of Industry and Mineral Resources, has introduced several initiatives to facilitate the expansion of Saudi-made products in international markets.
Key programs include the National Industrial Development and Logistics Program, which focuses on improving infrastructure, streamlining customs procedures, and providing export incentives.
By removing financial and logistical barriers, Saudi Arabia aims to position itself as a global trade hub, driving sustainable growth in key sectors such as manufacturing, petrochemicals, and construction materials.
PIF’s Diriyah Co. awards $202m contract for 2nd phase excavation works
RIYADH: An excavation contract worth SR758.5 million ($201.8 million) has been awarded to China Harbor Engineering Co. by Diriyah Co., as development of the city continues ahead of schedule.
The work, spanning 6.3 sq. km in the second phase of the project, will prepare the site for major cultural assets, including the Royal Diriyah Opera House and the 20,000-seat Diriyah Arena.
More than 600 heavy machines will be used during the excavation, and the awarding of the contract marks a significant milestone in the realization of the Public Investment Fund’s Diriyah Co. masterplan for the area.
With more than 40 hotels, arts districts, museums, and world-class sporting venues planned, Diriyah will serve as a cultural and economic hub on the outskirts of Riyadh, supporting the Kingdom’s Vision 2030 goals.
“We are excited to begin bulk excavation works in the second phase of the Diriyah project, marking another key milestone in the development of ‘The City of Earth,’” said Jerry Inzerillo, Group CEO of Diriyah Co.
“Progressing ahead of schedule, this excavation will enable smooth and efficient development of major cultural assets that will attract millions of visitors annually to Diriyah and inspire the world,” he added.
The development is projected to create 178,000 direct jobs and contribute SR70 billion to the national economy, aiding the Kingdom’s goals of economic diversification and job creation.
By 2030, Diriyah is expected to host over 100 restaurants and educational institutions, attracting 50 million visits annually.
Diriyah Co. will apply circular economy principles to the project, repurposing excavated materials for road bases, landscaping, and backfill in accordance with international sustainability guidelines.
This approach aims to enhance environmental performance and sustainability across the development.
Yang Zhiyuan, CEO of China Harbor Engineering Co. Ltd., emphasized the project’s alignment with sustainable development goals.
“We are honored to collaborate with Diriyah Co. on the execution of the Bulk Excavation Works project. We will focus on environmental protection awareness and sustainable development concepts during implementation, ensuring the timely delivery of the project, contributing to the preservation of Diriyah’s heritage, cultural exchange and the development goals of Saudi Vision 2030,” Zhiyuan said.
The excavation contract is the latest in a series of significant awards by Diriyah Co. in 2024, including a $1.55 billion joint venture for the Qurain Cultural District in November, a $2.08 billion agreement for the Northern District in July, and a $2.13 billion deal for four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar, also in July.
UAE’s economic resilience to continue in 2025: report
- Growth to be driven by spending, FDI, and diversification
JEDDAH: Despite ongoing regional challenges, the UAE is expected to maintain strong economic resilience in 2025, fueled by robust consumer spending, record-breaking foreign direct investment, and successful diversification efforts, according to a new industry report.
The UAE’s strategic position as a global trade hub connecting Europe, Africa, and Asia, along with its status as a prime real estate destination, continues to drive its growth trajectory.
The report, from FOREX.com, a subsidiary of StoneX Group Inc., a global US-based financial services firm, emphasizes that these factors will help sustain the country’s economic momentum.
One key indicator of this resilience is the UAE’s thriving real estate market. In October, the country saw a record 19,390 residential transactions, bringing the year-to-date total to 140,000 units — an increase of 36 percent compared to the previous year.
“The UAE is on track to maintain robust economic growth in 2025, with GDP growth forecasts ranging from 6.2 percent by the Central Bank of the UAE, 5.1 percent by the International Monetary Fund, and 4.1 percent by the World Bank,” said Razan Hilal, market analyst and chartered market technician at FOREX.com.
Hilal further noted that inflation in the UAE has been steadily decreasing, dropping to 2.4 percent year on year in October, the slowest pace since August 2023.
“With the Federal Reserve’s ongoing monetary easing, mirrored by the Central Bank of the UAE, interest rates are expected to decline further, which should help stimulate economic growth in 2025,” she added.
While the outlook remains positive, the report does acknowledge potential risks stemming from local, regional, and global factors. These include pressures on oil revenues due to falling oil prices, challenges from oversupply risks from non-OPEC countries, and the economic slowdown in China.
On the global stage, China’s anticipated shift to a more accommodative monetary policy in 2025 — the first such move since 2011 — could stabilize demand.
Meanwhile, the UAE’s non-oil sectors, aligned with the country’s ambitious D33 Agenda, are expected to continue driving economic expansion. These sectors include trade, tourism, and technology, with the UAE aiming for foreign trade worth 25.6 trillion dirhams ($6.97 trillion) and FDI inflows of 60 billion dirhams annually by 2033.
Hilal also highlighted that Dubai’s role as a global innovation hub will be further reinforced by initiatives like the 2030 artificial intelligence and sustainable development strategies, along with the launch of “Sandbox Dubai,” which aims to foster the testing and commercialization of new technologies. These efforts will strengthen Dubai’s leadership in technological advancements and further fuel the UAE’s economic growth.
The report also touched on the potential impact of a future US presidential term under Donald Trump, predicting that fiscal spending, tax cuts, a stronger US dollar, and rising geopolitical uncertainties could have mixed effects. While US stock indices have reached record highs in anticipation of Trump’s policies, the UAE’s MSCI index is also nearing its 2024 peaks.
However, these market gains remain vulnerable to volatility, particularly given the increasing geopolitical tensions and potential disruptions in global trade caused by Trump’s policies, tariffs, and regional decisions.
Furthermore, gold prices are expected to remain crucial in 2025, with potential gains reflecting heightened demand for safe haven assets amid global uncertainties.
This presents a challenge for the UAE, which must navigate these global economic and political risks while maintaining its status as a regional safe haven.
In conclusion, the report emphasizes that staying attuned to global political and economic developments will be vital for shaping an accurate perspective on the UAE's financial performance in the years ahead.
Egypt cuts fuel consumption by 6.04%, saving $23.6m monthly
JEDDAH: Egypt has cut fuel consumption by 6.04 percent, resulting in monthly savings of 1.2 billion Egyptian pounds ($23.6 million) while advancing its green energy goals for sustainability and efficiency.
In collaboration with the private sector, fuel use was cut from 182 grams per kilowatt-hour to 171 g/kWh, the country’s Minister of Electricity and Renewable Energy Mahmoud Esmat revealed.
The move reflects Egypt’s commitment to focusing on renewable sources and decreasing its dependence on fossil fuels, alongside a drive to enhance efficiency by upgrading networks and lighting systems, promoting energy-saving devices among citizens, and providing incentives for the private sector.
Speaking at the Energy Transition and Sustainable Development conference on behalf of Prime Minister Mostafa Madbouly, Esmat emphasized ongoing efforts to integrate renewable energy capacity and battery storage systems into the national grid.
Esmat added that his ministry is actively implementing a strategy with concrete action plans to maximize the utilization of renewable energy resources. He also highlighted that the strategy aims for a 42 percent renewable energy contribution to the overall energy mix by 2030 and 60 percent by 2040 through partnerships with the private sector.
He emphasized the government’s support for local manufacturing, particularly in electrical equipment for renewable energy, including the localization of modern technologies to improve efficiency, reduce losses, and enhance the quality of domestically produced goods to ensure their competitiveness in the global market.
According to Esmat, this reduces the burden on traditional fuels, eases pressure on foreign currency reserves, and curtails carbon emissions.
Addressing the conference, organized by the Al-Ahram Foundation to discuss the present and future strategies of Egypt’s electricity and renewable energy sector, Esmat emphasized the significance of the event, highlighting its focus on the connection between energy and development.
The minister reaffirmed Egypt’s commitment to the peaceful use of nuclear energy, calling it a key element in achieving the country’s Vision 2030.
He pointed to the El-Dabaa Nuclear Power Plant as an example of a strategic national project that will contribute to sustainable development by meeting the growing electricity demand and enhancing security.
Esmat also outlined efforts to stabilize the national grid, including the transition to a smart grid with remote monitoring and control. He reiterated the country’s commitment to sustainability by reducing reliance on traditional energy sources, increasing renewable energy capacity, and incorporating battery storage through public-private partnerships.
The minister stressed the importance of electrical interconnection projects, highlighting existing links with Jordan, Sudan, and Libya, as well as a new interconnection with Saudi Arabia that allows for the exchange of up to 3,000 megawatts, leveraging varying peak demand periods.
He added that the interconnection with Italy and Greece will position Egypt as a vital energy bridge between Africa and Europe.
He also detailed plans to improve the sector’s operational quality and efficiency by managing resources, maximizing returns, and enhancing the sustainability of electricity supply. This includes reducing technical and commercial losses, boosting performance, ensuring adequate service, and addressing electricity theft.
Esmat concluded by stating that the time has come for private investment to play a key role in electricity generation and distribution. He highlighted the importance of knowledge sharing, capacity building, and training for personnel to improve efficiency and productivity.
Saudi Arabia’s economy to expand by 3.7% in 2025: Mastercard Economics Institute
RIYADH: Saudi Arabia’s gross domestic product is expected to grow 3.7 percent in 2025, driven by a rise in the Kingdom’s non-oil activities, according to an analysis.
In its latest report, Mastercard Economics Institute said Saudi Arabia’s rapid expansion of its GDP will outperform the projected global average, which is estimated at 3.2 percent in 2025.
The Kingdom’s robust growth in the non-oil sector signifies the nation’s steadily progressing economic diversification journey aimed at reducing reliance on crude revenues.
According to the analysis, Saudi Arabia’s projected economic growth in 2025 is higher than that of major players, including the US, Germany, and Japan, as well as the UK, France, and Australia.
“With robust non-oil economic activity and continued investments aligned with Vision 2030, Saudi Arabia is set to maintain its strong growth trajectory, outpacing global markets,” said Khatija Haque, chief economist of Mastercard for the Eastern Europe, Middle East and Africa region.
She added: “As we move into 2025, a year shaped by evolving fiscal and monetary policies, the Kingdom’s diversification efforts and supportive economic reforms will solidify its position as a key driver of regional economic expansion. These structural shifts will continue to redefine economic landscapes, charting new pathways for sustainable growth.”
In November, a report released by the International Monetary Fund projected that Saudi Arabia’s economy is expected to remain resilient, with the Kingdom’s GDP set to expand by 1.5 percent and 4.6 percent in 2024 and 2025, respectively.
In September, another study released by credit-rating agency S&P Global said that Saudi Arabia’s GDP will expand by 1.4 percent in 2024 before accelerating to 5.3 percent in 2025.
The Mastercard analysis revealed economic diversification efforts in the Kingdom will continue in 2025 as the government leverages strong balance sheets to finance investment in infrastructure.
The report added that private sector investments should also benefit from lower interest rates, supporting employment and domestic consumption.
Regionally, the tourism sector is expected to remain a bright spot for the economies in the Gulf Cooperation Council region.
“The GCC’s strong push to develop its tourism offerings has positioned it as one of the fastest-growing destinations in the world. In addition, the strength of the region’s US dollar-pegged currencies is fueling the demand for outbound travel,” said Mastercard Economics Institute.
Steady inflation levels
The Mastercard Economics Institute further projected that Saudi Arabia’s inflation is expected to stay at a healthy level of 2 percent in 2025, while consumer spending in the Kingdom is projected to expand by 4.5 percent.
Earlier this month, a report released by Saudi Arabia’s General Authority for Statistics revealed that the Kingdom’s annual inflation rate reached 2 percent in November compared to the same month in 2023.
Saudi Arabia’s inflation rate is one of the lowest in the Middle East region and globally, indicating the Kingdom’s effective measures to stabilize the economy and combat global price pressures.
In October, the World Bank projected that Saudi Arabia’s inflation level is expected to stay at 2.1 percent in 2024 and 2.3 percent in 2025, lower than the Gulf Cooperation Council average.
Globally, Mastercard Economics Institute projected that the average inflation level will remain at 3.2 percent next year.
“Inflation across major economies eased significantly in 2024, underpinned by lower prices of durable goods and reduced inflation for non-durable goods. While upside risks to good prices remain due to tariffs, moderating wage growth is expected to decrease services inflation,” said the report.
Rising female workforce and population growth
The study highlighted that population growth in the Kingdom also acts as an essential driver for economic activity and, particularly, private consumption.
According to the analysis, inbound migration into Saudi Arabia has greatly enriched the human capital of the country, with the next inflow of migrants contributing 4.9 percent of the population growth between 2019 and 2023.
In November, a report released by the BlackRock Investment Institute also echoed similar views, highlighting that Saudi Arabia’s young and growing workforce and abundant natural resources could play a crucial role in determining the Kingdom’s economic growth in the future.
Mastercard added that the participation of women in Saudi Arabia’s labor force is growing, driven by enabling government policies, increasing job creation in female-dominated sectors, and flexible work arrangements.
The Kingdom, aligned with Vision 2030 goals, had initially targeted 30 percent of women’s participation in the workforce by the end of this decade.
Speaking at the Future Investment Initiative in Riyadh in October, Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan said that Saudi Arabia aims to achieve 40 percent female workforce participation by the end of this decade, surpassing its Vision 2030 target of 30 percent.
“The latest World Bank data shows that women’s representation in the Saudi workforce grew from 18 percent in 2017 to 34.5 percent in 2023. This marked increase is mainly due to the easing of social and other restrictions in the Kingdom in recent years, driven by its ambitious Vision 2030 that seeks to build a thriving economy where everyone has the opportunity to succeed,” said Mastercard Economics Institute.
It added: “Women’s labor force participation likely reflects the disproportionate job creation in female-dominated sectors, such as health care and education. In addition, the rise of remote work and the flexibility it brings tends to help women, who are often still the primary caregivers, as it makes it easier to raise children while working.”
Global outlook
According to the analysis, the UAE is expected to witness an economic expansion of 5 percent in 2025, while inflation is set to average 2.5 percent.
India’s GDP is projected to expand by 6.6 percent next year, while the economy of the US and the UK is expected to grow by 2.3 percent and 1.2 percent, respectively.
France is expected to witness an economic growth of 0.8 percent in 2025, while the economies of Germany, Italy, and Canada are set to expand by 0.6 percent, 0.7 percent, and 1.8 percent, respectively.
