DUBAI: World leaders from business, politics, academia, the arts and media have begun the snowy journey up the Swiss Alps — by car, train or helicopter — to attend the 48th annual meeting of the World Economic Forum (WEF) in Davos.
Amid what the WEF organizers called an “unprecedented participation by global leaders,” the meeting will welcome 70 heads of state, including US President Donald Trump, who surprised them with a late acceptance of an invitation he declined last year.
Trump will address the meeting on Friday, in virtually the last event before it ends.
About 2,500 people will attend the gathering, themed around the subject “creating a shared future in a fractured world,” to discuss major issues affecting world politics, economics, business and the environment.
“The meeting will focus on reinvigorating international collaboration as a way of solving shared challenges in an era increasingly defined by societies under strain and competition between nations,” the WEF said.
The issue of women’s’ greater participation in world and national politics and economics is a major item on the agenda, and the WEF has made a statement of its own by appointing an all-female board of co-chairs to oversee the proceedings.
Men still outnumber women in the official participation lists, however. Only 21 percent are female, but this is a higher level than ever before, WEF said.
There is a high level of involvement from the Middle East and North Africa. Mirek Dusek, the WEF’s director for the region, said: “We are really seeing engagement deepen from the economies and countries of the Middle East. There is an even stronger delegation this year from Saudi Arabia.”
The changes within the Kingdom last year under the Vision 2030 strategy to reduce oil dependence have prompted renewed interest in the country’s affairs. There are several high-ranking Saudi ministers at Davos, and it will feature on at least a dozen panels, discussion sessions and cultural events at the meeting.
Business will also be conducted in separate events outside the formal WEF structure, with Saudi Aramco, the national oil company expected to launch an initial public offering this year, taking part in many of them.
Among other Saudi organizations represented at Davos will be the ministries of commerce and investment, economy and planning, finance, foreign affairs, transportation, and communications. The Saudi banking authorities and Riyadh stock exchange are also listed among participants, as are sports and other investment organizations.
A big delegation is also expected from the UAE, traditionally a big participant in WEF, while eight other regional heads of state are expected to attend.
Dusek said the presence of Trump helped make the event “historic.” The last-minute acceptance by the American president — the first by a White House incumbent since 2000 — has created some stir at the Swiss town, 1,560m up in the Alps. Its normal population of about 11,000 rises dramatically each January, with armies of support staff looking after the delegates.
Security, provided by the Swiss police and army, will be tighter than ever because of the US presidential presence. Sources said some of Trump’s own large security entourage will have to be housed in Zurich, a two-hour car ride away, because the town itself is full.
Professor Klaus Schwab, the WEF’s founder and executive chairman, said: “Our world has become fractured by increasing competition between nations and deep divides within societies. Yet the sheer scale of the challenges our world faces makes concerted, collaborative and integrated action more essential than ever.
“Our annual meeting aims to overcome these fault lines by reasserting shared interests among nations and securing multi-stakeholder commitment to renewing social contracts through inclusive growth,” he added.
The world of celebrity will be represented by pop singer Elton John, Hollywood actress Cate Blanchett, and Indian actor and director Shah Rukh Khan. All have received WEF awards for their charitable and humanitarian work.
World leaders gather in Davos for ‘unprecedented’ economic forum
World leaders gather in Davos for ‘unprecedented’ economic forum
Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations
LONDON: Oil prices slipped on Thursday after a surge in the previous session on a larger-than-expected draw in US gasoline stocks, as markets weighed macroeconomic concerns against firm near-term demand.
Brent futures fell 5 cents to $70.9 a barrel by 7:26 a.m. Saudi time, while US West Texas Intermediate crude futures shed 10 cents to $67.58 a barrel.
Both benchmarks rallied about 2 percent on Wednesday as US government data showed tighter-than-expected oil and fuel inventories.
US gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel draw expected by analysts, while distillate stocks also dropped more than anticipated — despite gains in crude stocks.
“Declining US gasoline inventories raised expectations for a seasonal demand increase in spring, but concerns about the global economic impact of tariff wars weighed on the market,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.
“With strong and weak factors progressing simultaneously, it has become difficult for the market to lean decisively in one direction or the other,” he added.
Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on EU goods, as major US trading partners said they would retaliate for trade barriers already erected by the US president.
Trump’s hyper-focus on tariffs has rattled investors, consumers and business confidence and raised US recession fears.
Meanwhile, the Organization of the Petroleum Exporting Countries said on Wednesday that Kazakhstan led a sizeable jump in February crude output by the wider OPEC+, highlighting a challenge for the producer group in enforcing adherence to agreed output targets.
Worries about fumbling jet fuel demand weighed further on markets, JP Morgan analysts said, adding that US Transportation Security Administration data showed passenger volumes for March have decreased by 5 percent year-over-year, following stagnant traffic in February.
However, firm demand expectations limited overall market weakness.
Signs of robust US demand and Ukraine’s deployment of 377 drones targeting Russian energy infrastructure and military installations supported prices, said JP Morgan analysts in a client note.
“As of March 11, global oil demand averaged 102.2 million barrels per day, expanding 1.7 million barrels per day year-over-year and exceeding our projected increase for the month by 60,000 barrels per day,” they added.
Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions
RIYADH: Saudi Arabia has opened applications for pre-qualification for mining exploration licenses across three mineral-rich belts in the Riyadh and Madinah regions, covering nearly 50 percent of the total area.
This initiative spans 24,946 sq. km. and is part of the Ministry of Industry and Mineral Resources’ broader plan to offer exploration licenses for over 50,000 sq. km. in 2025, following an announcement made at the 4th International Mining Conference in January.
The ministry is inviting both local and international exploration companies to compete for these licenses, aiming to accelerate mineral exploration and development.
This move is expected to harness Saudi Arabia’s mineral wealth, estimated at SR9.3 trillion, and strengthen value-added mineral supply chains to support economic diversification, according to a ministry post on X.
The targeted mineralized belts include Nuqrah and Sukhaybrah Al-Safra in the Madinah region, as well as Nabitah in Riyadh. These areas are rich in resources like gold, copper, silver, zinc, and nickel, presenting substantial investment opportunities.
The pre-qualification application deadline for exploration licenses is set for May. To ensure transparency, geological and technical data for these sites are available on the Tadeen platform, providing investors with insights from previous licenses and geological surveys conducted by the Saudi Geological Survey Authority.
In line with efforts to streamline the licensing process, the ministry has designed this year’s mining exploration competition to be fully automated, transparent, and fair.
The process will consist of three key phases: the pre-qualification phase, which evaluates the technical capabilities of applicants; the site selection and bidding phase; and the final award and licensing phase. The pre-qualification phase began in January during the International Mining Conference and will continue until early May.
The ministry has ensured that all essential geological and technical data is accessible on Tadeen, ensuring a level playing field for all competitors, as reported by the Saudi Press Agency.
This initiative is expected to drive exploration spending, enhance the national geological database, generate new jobs, and contribute to sustainable economic growth. It also aligns with Saudi Arabia’s commitment to developing the mining sector in line with global best practices, with a focus on environmental sustainability and social responsibility.
In a related move, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, launched the second phase of the Mining Exploration Empowerment Program in January.
This initiative offers financial support of up to SR7.5 million per project to companies with valid exploration licenses that have been held for less than five years, according to SPA.
The program is designed to reduce risks for early-stage exploration companies, encourage investment in the mining sector, and complement existing incentives under the Mining Investment Law, which allows 100 percent foreign ownership and provides financing of up to 75 percent of capital costs through the Industrial Development Fund.
Saudi Arabia has allocated over 10,000 sq. km. for mining exploration in recent years. The upcoming 50,000 sq. km. for 2025 further underscores the Kingdom’s commitment to fostering a transparent and attractive investment environment, as reported by SPA.
This initiative plays a key role in the Kingdom’s Vision 2030, which seeks to position mining as a vital pillar of economic diversification and a driver of sustainable growth.
Egypt secures $1.2bn IMF disbursement amid reforms
- Cairo tackles fiscal hurdles with strategic reforms, international support
RIYADH: Egypt has secured a $1.2 billion disbursement from the International Monetary Fund following the completion of the fourth review of its economic reform program.
This disbursement, approved by the IMF’s Executive Board under the Extended Fund Facility, brings Egypt’s total funding under the program to approximately $3.2 billion.
In addition, the IMF has approved a $1.3 billion arrangement under the Resilience and Sustainability Facility to support Egypt’s climate-related reforms.
The 46-month EFF arrangement, which was initially approved in December 2022, is designed to promote macroeconomic stability and drive structural reforms to support sustainable growth. The IMF has acknowledged Egypt’s progress in stabilizing its economy, despite external challenges such as regional conflicts and trade disruptions.
“Since March 2024, the authorities have made considerable progress in stabilizing the economy and rebuilding market confidence despite a challenging external environment,” said Nigel Clarke, deputy managing director and chair of the IMF executive board.
Macroeconomic indicators show a mixed recovery for Egypt. Gross domestic product growth, which slowed to 2.4 percent in the fiscal year 2023-24 from 3.8 percent the previous year, rebounded to 3.5 percent in the first quarter of the fiscal year 2024-25.
Inflation, which had surged in recent years, has been gradually moderating since September 2023, alleviating some pressure on household incomes.
Meanwhile, the government achieved a primary fiscal surplus of 2.5 percent of GDP in 2023-24, marking a one-percentage-point improvement from the previous year. This was primarily driven by expenditure controls, which helped offset weaker domestic revenue performance.
Despite several improvements, Egypt continues to face significant fiscal challenges, including high debt levels and substantial financing needs. The country’s current account deficit widened to 5.4 percent of GDP in 2023-24, largely due to a $6 billion drop in Suez Canal receipts in 2024, caused by trade disruptions in the Red Sea.
However, remittances from Egyptian workers abroad and strong tourism revenues have provided crucial foreign exchange inflows.
To ensure fiscal sustainability, the IMF has recommended that Egypt expand its tax base, streamline tax incentives, and improve compliance. As IMF spokesperson Clarke noted, “Broadening the tax base, streamlining tax incentives, and enhancing compliance are essential to creating fiscal space for priority development and social needs.”
Additionally, the IMF stressed the importance of a comprehensive debt management strategy, which includes deepening the domestic debt market and enhancing fiscal transparency, particularly concerning off-budget entities.
In response to external challenges, the Egyptian government has adjusted its medium-term fiscal targets.
OPEC upholds global demand projections, reports output boost
RIYADH: The Organization of the Petroleum Exporting Countries reiterated its forecast for robust global oil demand growth in 2025, citing strong support from air and road travel.
In its monthly report released on Wednesday, OPEC projected that global oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026, with both forecasts remaining unchanged from the previous month.
OPEC noted that while trade concerns are expected to introduce volatility as new trade policies are rolled out, the global economy is expected to adapt.
In the same report, OPEC revealed that the broader OPEC+ group increased production by 363,000 bpd in February, with a significant boost coming from Kazakhstan, which has struggled to meet its OPEC+ output targets.
According to OPEC’s data, Kazakhstan’s production increased to 1.767 million bpd in February, up from 1.570 million bpd in January.
Although Kazakhstan has pledged to cut its output and compensate for overproduction, it has ramped up production at the Chevron-operated Tengiz oilfield, the country’s largest.
Meanwhile, Russia’s crude oil output slightly decreased by 0.04 percent to 8.973 million bpd in February, from 8.977 million bpd in January.
This was marginally below Russia's production target of 8.98 million bpd under the OPEC+ agreement. Russia’s quota is expected to rise to 9.004 million bpd starting in April as part of OPEC+'s planned gradual output increase.
Deputy Prime Minister Alexander Novak announced last week that OPEC+ had agreed to begin raising oil production in April, though this decision could be reversed if market imbalances arise.
Closing Bell: Saudi main index continues to decline on third consecutive day
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the third consecutive day on Wednesday as it shed 13.03 points or 0.11 percent to close at 11,704.93.
The total trading turnover of the benchmark index was SR5.42 billion ($1.44 billion), with 155 stocks advancing and 83 declining.
The MSCI Tadawul index also declined by 0.43 percent to 1,476.91.
However, Saudi Arabia’s parallel market Nomu increased 410.19 points to close at 31,173.41.
The best-performing stock on the main market was Al-Baha Investment and Development Co. The company’s share price increased by 8.33 percent to SR0.39.
The share price of Al-Babtain Power and Telecommunication Co. also rose by 7.08 percent to SR41.60.
ARTEX Industrial Investment Co. also saw its stock price rising by 6.54 percent to SR14.
Conversely, the share price of Saudi Industrial Investment Group declined by 3.96 percent to SR15.02.
On the announcements front, Arabian Drilling Co. said that its net profit for 2024 reached SR321.3 million, representing a decline of 46.85 percent compared to 2023.
In a Tadawul statement, the company said that the decrease in net profit was mainly due to start up cost of the new unconventional rigs, as well as higher net finance expenses and depreciation costs, partially offset by higher revenue.
The share price of the company edged down by 0.54 percent to SR91.40.
Savola Group said that its net profit witnessed a surge of 1009.2 percent year on year to reach SR9.97 billion.
This was primarily driven by the distribution of its 34.52 percent stake in Almarai to shareholders, resulting in a net gain of SR11.3 billion.
The retail segment also contributed to the profit surge, with net earnings climbing from SR47 million in 2023 to SR154 million in 2024. This growth was fueled by the positive impact of the CXR program and an expanded store network.
The share price of the company closed on SR32.70, decreasing 3.54 percent, as it was the second worst performer of the day.
Theeb Rent a Car Co. said that the firm’s net profit for 2024 stood at SR182.7 million, representing an increase of 28.6 percent compared to 2023.
In a Tadawul statement, the company revealed that its net profit increased due to the improved utilization rate of short and long-term rental segments.
This is in addition to the reduction of certain operational costs items, alongside with the increase in total revenues by 14.73 percent reached SR2.34 billion in 2024, marking a year on year rise of 4.01 percent.
Theeb Rent a Car Co.’s share price increased by 4 percent to SR73.
AlSaif Stores for Development and Investment Co. also revealed its net profit decrease by 61.7 percent, reaching SR37.53 million.
The decrease was due to an increase in the cost of goods sold, the impact of exceptional offers and an increase in financing interest expenses.
Its share price edged up by 1.05 percent to SR7.60.
