TOKYO: Japan’s transport ministry said on Wednesday it had carried out spot inspections at two plants producing Nissan vehicles as part of a probe into final checks, days after irregularities forced the automaker to recall 1.2 million cars sold in Japan.
The two inspections on Tuesday followed inspections at four more factories last week, the ministry said. The initial four found the automaker had conducted unauthorized final vehicle checks for most domestic models that had not yet been sold, prompting Nissan to suspend new vehicle registrations with the government.
By Monday, Japan’s second-biggest automaker had discovered problematic checks of more vehicles, and said it would recall all new passenger cars sold in Japan over the past three years.
This is the second major instance of misconduct involving a Japanese automaker in less than two years, after Mitsubishi Motors Corp. said it tampered with fuel economy tests for some domestic-market models. While the recall is unlikely to have a significant impact on profitability, it is a blow to Nissan’s reputation just as it enjoys strong domestic sales, analysts said.
In inspecting Nissan’s factories, the ministry found names of certified technicians used on documents to sign off final vehicle checks conducted by non-certified technicians, two people with knowledge of the matter told Reuters.
It was possible the practice occurred at most or all of the six plants, said the people, who declined to be identified as they were not authorized to speak with media on the matter.
Vehicles sold in Japan must be registered with the government. As part of this process, during final checks, vehicles must undergo an additional procedure performed by plant technicians who can be certified by the automakers.
Nissan confirmed the latest two ministry inspections were at its Tochigi plant and at the Auto Works Kyoto plant owned by an affiliate.
“We are currently conducting an investigation into the nature of this vehicle inspection issue at our plants,” spokesman Nick Maxfield said in an e-mailed statement. A third-party is also involved in its probe.
Nissan’s recall includes all of the 386,000 new passenger vehicles it sold in Japan in 2016, roughly 10 percent of its global sales. It excludes Nissan-branded mini-vehicles produced by Mitsubishi Motors, which comprise roughly one-third of Nissan’s annual domestic sales.
Nissan shares have fallen more than 2 percent since Friday. They closed down 1.2 percent on Wednesday at ¥1,089.5.
Japan transport ministry raids two Nissan plants over improper checks
Japan transport ministry raids two Nissan plants over improper checks
Arab-China trade surges to $400bn, paving way for housing cooperation
RIYADH: Trade between Arab countries and China has surged by more than 1,000 percent over the past two decades, reaching approximately $400 billion in 2024, according to Ali bin Ibrahim Al-Maliki, assistant secretary-general of the Arab League.
Al-Maliki made the statement during the inaugural Arab-China Ministerial Meeting on Housing and Urban Development, held alongside the 41st session of the Arab Ministers of Housing Council in Algeria. The event aims to lay the groundwork for a strategic partnership that will benefit both sides, as reported by the Kuwait News Agency.
China, the world’s second-largest economy, continues to draw global attention due to its economic reforms and growth. In May, the China-Arab States Cooperation Forum in Beijing gathered leaders from Saudi Arabia, the UAE, and Egypt, culminating in the Beijing Declaration, which emphasized strengthening China-Arab cooperation and building a shared future.
“China has become the second-largest trading partner for Arab countries, with trade volume increasing from $36 billion in 2004 to nearly $400 billion in 2024,” Al-Maliki stated. He also highlighted the vital role of the housing and construction sectors in driving socioeconomic development and underscored the importance of China-Arab economic ties.
Al-Maliki stressed that the partnership between Arab states and China in the fields of construction and urban development could offer innovative, sustainable solutions to address global challenges, such as rapid population growth, climate change, and the need for sustainable resource management.
Algerian Housing Minister Mohamed Belaribi, who currently chairs the Arab Housing Ministers Council, described the meeting as a significant step toward forging high-level partnerships built on mutual benefit.
“Arab-Chinese relations have evolved since the 1950s, serving mutual interests and strengthening their positions regionally and globally,” Belaribi said.
He added that the meeting provided an opportunity to exchange expertise on key issues like housing sustainability, smart cities, earthquake-resistant construction, and urban renewal.
Chinese Minister of Housing and Urban-Rural Development, Ni Hong, emphasized the vast potential for enhanced cooperation between Arab countries and China in the construction and development sectors. “This opens the door for strengthened exchanges and marks the beginning of a new chapter in our collaborative efforts,” he said.
Ni also commended Arab countries for their achievements in urban development and expressed optimism for mutually beneficial outcomes.
He highlighted China’s ongoing commitment to forging stronger ties with Arab nations through initiatives such as signing memorandums of understanding and conducting seminars and training programs.
These developments align with China’s broader global strategy, particularly the Belt and Road Initiative, a major element of its international cooperation efforts.
Launched in 2013 by Chinese President Xi Jinping, the BRI aims to enhance global connectivity and foster cooperation in areas such as infrastructure, trade, finance, and cultural exchange, drawing inspiration from the ancient Silk Road.
Over the past decade, the BRI has expanded its scope to include over 150 countries and 30 international organizations, supporting projects ranging from railways and ports to green energy and digital infrastructure. The ongoing collaboration between China and Arab countries, particularly in the housing and construction sectors, reflects the growing strength and scope of the BRI’s global ambitions.
Saudi Arabia’s KACARE signs MoUs to propel energy innovation and empower women
RIYADH: Saudi Arabia’s King Abdullah City for Atomic and Renewable Energy has signed new agreements to advance innovation, localize solutions, and empower women.
The first memorandum of understanding, inked with King Saud University, will focus on developing and localizing innovative technologies in the energy sector, the Saudi Press Agency reported.
The agreement also emphasizes building human capacity through training programs and the exchange of expertise, with a particular focus on technical and advisory services.
This partnership supports Saudi Arabia’s Vision 2030, which aims to increase the Kingdom’s use of renewable energy and promote sustainability.
It also aligns with Saudi Arabia’s goal of 50 percent of its electricity coming from renewable sources by the end of the decade.
In addition to these technological advancements, the MoU includes the development of educational programs and scholarships to help meet the growing demand for skilled professionals in the energy sector.
The agreement also includes joint research initiatives in renewable energy, atomic energy, hydrogen technologies, and artificial intelligence applications within the energy field. This will provide valuable opportunities for students and researchers to contribute to the Kingdom’s energy transformation, the SPA report added.
KACARE also signed a second MoU with the Saudi Women and Energy Association, further reinforcing the Kingdom’s commitment to empowering female workers in the sector.
This agreement focuses on launching comprehensive initiatives and programs aimed at supporting women to become leaders and innovators in energy. It includes training and development opportunities, such as the WE Spark program, which is dedicated to training women in renewable energy.
This program is in partnership with King Abdullah University of Science and Technology and seeks to equip women with the skills necessary to excel in a rapidly evolving industry.
The MoU also includes conducting studies to assess women’s participation in the energy sector. The research will identify key challenges and propose solutions to enhance women’s roles, ensuring equal opportunities in the workplace and supporting their development into leadership positions.
In a further effort to empower women in the energy industry, KACARE signed another MoU with Princess Nourah University. This agreement aims to enhance female competencies in renewable energy through tailored training programs for female students pursuing engineering degrees.
It also seeks to improve the capabilities of faculty members in providing specialized programs in solar energy, as well as upgrading infrastructure to support hydrogen production plants and solar photovoltaic energy projects.
GCC debt capital market hits $1tn, poised for continued growth: Fitch Ratings
- Saudi Arabia leads the region followed by the UAE and Qatar
RIYADH: The debt capital market in the Gulf Cooperation Council region has surpassed the $1 trillion mark in outstanding debt as of November, fueled by strong oil revenues, according to a recent analysis.
Fitch Ratings’ latest report highlights the growth trajectory of the GCC’s DCM, with expectations that it will remain one of the largest issuers of emerging-market dollar-denominated debt in 2025 and 2026.
The DCM refers to markets where securities like bonds and promissory notes are traded, offering governments and companies a means of securing long-term funding.
Saudi Arabia leads the region’s DCM, followed by the UAE and Qatar. In September, Fitch projected that the Kingdom’s DCM would exceed $500 billion in outstanding debt, driven by the financing needs for mega-projects under the Kingdom’s Vision 2030 and its broader economic diversification strategy.
Bashar Al-Natoor, global head of Islamic Finance at Fitch Ratings, noted that the DCM had grown by 11 percent year on year, reaching the $1 trillion milestone by the end of November 2024. Of this, approximately 40 percent is in the form of sukuk.
“The market is set for further expansion in 2025, driven by the need to finance government initiatives, maturing debt, fiscal deficits, diversification efforts, and ongoing regulatory reforms,” Al-Natoor explained. “We rate about 70 percent of GCC US dollar sukuk, of which 81 percent are investment-grade, with no defaults.”
The report also forecasts that the Federal Reserve is likely to cut rates by 125 basis points to 3.5 percent by the fourth quarter of 2025. This is expected to prompt most GCC central banks to follow suit, creating a more favorable funding environment.
However, Fitch warned that ongoing geopolitical instability in the Middle East could hinder the region’s DCM growth. “While four out of six GCC sovereigns maintain investment-grade ratings with stable outlooks, any escalation in regional conflicts could pose risks,” the agency stated.
Fitch also flagged potential risks related to Sharia compliance, particularly concerning AAOIFI Standard 62, which governs the structure of Islamic finance transactions. The guidelines cover a range of issues, including Shariah-compliant issuance requirements, asset backing, ownership transfers, investment structures, and trading procedures.
The DCM landscape in the GCC remains uneven. While Saudi Arabia and the UAE boast the most developed markets, Qatar, Bahrain, and Oman follow, with Kuwait having the least mature market. Kuwait is reportedly working on updating its liquidity law to facilitate borrowing in capital markets, though the timeline for this reform remains unclear.
Middle East and Africa region among smallest fallers as global deal activity drops 8.7% YoY
RIYADH: Transactions in mergers and acquisitions, private equity, and venture financing fell during the first 11 months of the year, with the Middle East and Africa experiencing the smallest decline in deal activity.
According to a new report from GlobalData, while worldwide deal volume dropped 8.7 percent year-on-year to 45,921 transactions compared to 50,308 during the same period in 2023, the Middle East and Africa region saw a relatively modest 5 percent decline.
This contrasts with sharper decreases in regions such as North America and South and Central America, highlighting the Middle East and Africa’s comparative stability amid broader global challenges.
Meanwhile, mergers and acquisitions and private equity transactions experienced smaller declines of 2.8 percent and 3 percent, respectively.
Aurojyoti Bose, lead analyst at GlobalData, attributed the overall decline in global deal activity to a steep drop in venture financing, which fell 18.7 percent year-on-year.
“Even though all deal types experienced decline, the overall setback was primarily driven by a massive fall in the number of venture financing deals,” Bose said.
The broader global slowdown in deal activity was felt across major markets. North America, which accounted for approximately 40 percent of worldwide deals, saw a significant 12.5 percent decline in overall deal activity, contributing heavily to the international contraction.
Europe recorded an 8.8 percent decline, while Asia-Pacific and South and Central America saw decreases of 3.6 percent and 17.5 percent, respectively.
The subdued environment extended to several major markets globally. Among the hardest-hit countries, China and France experienced year-on-year declines of 21.9 percent and 21 percent, respectively.
The US, the largest single market for deals, saw an 11.7 percent drop, while Canada and Germany recorded declines of 18.9 percent and 12.1 percent, respectively.
Other countries reporting notable decreases included Italy with 6.8 percent, the Netherlands with 13.8 percent, and Spain with 14.2 percent, as well as Sweden with 9.7 percent, and Singapore with 15 percent.
In the travel and tourism sector specifically, a total of 649 deals were announced globally between January and November, representing a 5.9 percent year-on-year decline compared to 690 deals in the same period of 2023.
While the Middle East and Africa saw an 18.2 percent drop in deal volume in the sector, North America registered a steeper decline of 31 percent.
South and Central America followed with a 20 percent decrease, and Asia-Pacific experienced a smaller drop of 2.3 percent.
In contrast, Europe stood out as the only region to record growth, with deal volume increasing by 15.9 percent during the same period.
Considering regional conflicts such as the changes in Syria’s regime, the conflict in Yemen, and Israel’s war on Lebanon and Palestine, the 18.2 percent drop in travel and tourism deal volume in the Middle East and Africa is relatively moderate.
This performance suggests resilience in the region’s travel and tourism sector, which continues to attract investment despite these significant challenges.
“The travel and tourism sector deal activity showcased a mixed trend across the different deal types during the specified timeframe. And similarly, the trend across different regions and key markets remained a mixed bag during the review period,” Bose said.
Saudi Arabia, Turkiye explore construction sector partnerships in roundtable
RIYADH: Saudi Arabia and Turkiye explored investment opportunities and partnerships in the construction sector during a roundtable, focusing on enhancing supply chains and fostering collaboration between public and private sectors.
The event, led by Minister of Investment Khalid Al-Falih and joined by Minister of Municipalities and Housing Majid Al-Hogail, brought together key stakeholders from both nations, representing the public and private sectors.
This follows a significant rise in trade between the two countries, with the total volume reaching SR25.4 billion ($6.75 billion) in 2023, a 15.5 percent increase. Saudi exports amounted to SR15.6 billion, while Turkish imports to the Kingdom totaled SR9.8 billion.
“We reviewed the significant investment and partnership opportunities between public and private sector institutions in both countries, as well as the development of supply chains in this vital sector,” said Al-Falih in a post on X, formerly Twitter.
The meeting explored key investment opportunities, and discussed enhancing cooperation and localizing supply chains, according to a statement issued by the Ministry of Investment.
The ministers were joined by senior representatives from some of the largest construction firms in both nations.
Regarding the roundtable, the ministers emphasized the significant partnership opportunities between public and private sector institutions. They noted the strategic importance of strengthening supply chains to support the development of this essential sector.
The meeting followed the Saudi-Turkish Business Forum held in Riyadh last week, where business groups from both nations explored export opportunities across multiple economic sectors.
The forum, organized by the Federation of Saudi Chambers, witnessed the participation of a delegation from the Exporters Assembly, comprising 40 Turkish companies, along with several firms from the Kingdom.
The event spotlighted opportunities for joint ventures in agriculture, food, and tourism, along with potential collaborations in advanced manufacturing, construction, and infrastructure. Other key areas included technology, innovation, and logistics, the Saudi Press Agency reported.
Also organized by the Foreign Economic Relations Board of Turkiye, the event attracted over 450 companies and several government agencies from both nations at the time.
Last year, Turkiye’s exports totaled $255.8 billion, and the country aims to increase this figure to $400 billion by 2028, working closely with exporters to accelerate the growth of foreign trade.
