DAVOS: US Energy Secretary Rick Perry told oil super-powers Russia and Saudi Arabia he believed US shale oil boom would not become a spoiler for oil markets because new production would be absorbed by fast rising global demand.
Perry, a former governor of Texas, the heartland of the US shale oil boom, was speaking at a rare joint panel with Russian and Saudi energy ministers, Alexander Novak and Khalid Al-Falih, at the World Economic Forum in Davos.
“I don’t think American shale production will be a spoiler. There is a lot of reforms going on around the world — in the kingdom (of Saudi Arabia), in Mexico, in India — those reforms have the potential to really drive the consumption,” he said.
OPEC led by Saudi Arabia and non-OPEC Russia have reduced production during 2017-2018 to prop up oil prices.
The United States, which rivals Russia and Saudi Arabia for the position of the world’s largest oil producer, is not participating in cuts as its industry is represented by private producers who can be sued for collusion if they join the deal.
Perry said President Donald Trump’s slogan “America First” meant first of all competition with rivals including in oil markets.
“We have a bit of a feast rather than famine now but it is good for the world,” he added.
Novak and Falih both said the markets were too much focused on the swings in US shale production, which still represented a fairly modest portion of the global output.
Falih said Mexican and Venezuelan output were declining and predicted that global oil demand would soar in the next 25 years to 120 million barrels per day from the current levels of just under 100 million.
US shale output is expected to rise by 1 million bpd this year, to take US total production well above 10 million bpd.
Novak also said demand was rising fast and old oilfields around the world were depleting, meaning US production growth was unlikely to tip oil markets back into a surplus.
Russia has previously voiced concerns oil prices might have risen too fast and were encouraging shale oil growth too much.
Novak said oil producers would ultimately go back to direct competition when the OPEC/non-OPEC deal expires but did not say when it could happen.
Falih said OPEC and its non-OPEC allies would exit from oil production cuts very gradually and smoothly in order not to shock markets in the early part of 2019, when demand will seasonally slow.
He said it was very unlikely cuts could be exited in June when OPEC meets next time and added that he believed they could be just adjusted at some point. He also said OPEC could change the level of stocks it was targeting by its output reductions.
He also said the strategy of maximizing production during the previous minister Ali Al-Naimi in 2014-2015 had caused too much pain for both producers and consumers when oil prices fell too steeply and became unpredictable. (Reporting by Dmitry Zhdannikov, Editing by David Evans and Alison Williams)
US tells Russia, Saudi shale oil won’t be oil market ‘spoiler’
US tells Russia, Saudi shale oil won’t be oil market ‘spoiler’
Egypt to offer Hurghada airport to private sector by end of 2025
RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.
The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations.
The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership.
In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities.
“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added.
El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth.
The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.
El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.
The project is designed in line with international standards for safety, security, and environmental sustainability.
The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights.
According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity.
Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show.
Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa.
The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers.
The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality.
These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience.
Oman’s GDP grows 4.7% as non-oil sectors expand
- Agriculture, services, and construction exports lead economic growth
RIYADH: Oman’s gross domestic product at current prices grew by 4.7 percent year on year in the first quarter of 2025, reaching 10.53 billion Omani rials ($27.3 billion), compared with 10.06 billion rials during the same period in 2024.
Preliminary data released by Oman’s National Centre for Statistics and Information attributed the increase primarily to stronger performance in non-oil activities, which grew 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.
Across economic sectors, agriculture and fisheries posted the highest growth rate, expanding 11.1 percent to 326.6 million rials.
Industrial activities rose 2.8 percent to 1.97 billion rials, while services activities grew 4.2 percent with a total contribution of 4.84 billion rials to GDP.
Oil activities also contributed to the overall expansion, recording a 6.8 percent increase in value-added, reaching 3.71 billion rials by the end of the first quarter of 2025, up from 3.47 billion rials in the same period of 2024.
While crude oil activities declined 7.5 percent to 2.74 billion rials, natural gas activities saw a marked increase of 89 percent, with value-added rising to 970.8 million rials.
This performance comes as Oman continues to strengthen non-oil sectors and diversify its economy.
Earlier in June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, a 6 percent increase from the same period last year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.
Overall, the sultanate’s broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.
The government is also pursuing fiscal reforms to support long-term growth. Under a royal decree, Oman will become the first Gulf country to introduce personal income tax, imposing a 5 percent levy on taxable income exceeding 42,000 rials per year starting in 2028.
The measure is expected to apply to about 1 percent of the population.
Earlier in June, the country’s residential property market was reported to have shown renewed strength.
Official data from Oman’s National Centre for Statistics and Information indicated that residential property prices rose 7.3 percent year over year in the first quarter, led by a 6.5 percent increase in residential land values, which form the largest component of the real estate index.
Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and other residential units increased 2.2 percent. The overall residential real estate price index advanced 5.5 percent quarter over quarter.
The gains reflect a broader regional upswing in property activity during early 2025.
Saudi FDI net inflows jump 44% in Q1 to $5.9bn
RIYADH: Saudi Arabia attracted SR22.2 billion ($5.9 billion) in net foreign direct investment in the first quarter of 2025, up 44 percent year on year, driven by rising inflows and sharply lower capital outflows.
According to figures released by the General Authority for Statistics, this compares to SR15.5 billion during the same period last year. The figure, however, marked a 7 percent drop from the final quarter of 2024, when inflows totaled SR24.0 billion.
Gross inflows — the total foreign capital entering the Kingdom — stood at SR24 billion, up 24 percent from SR19.4 billion in the first quarter of 2024, but down 6 percent from the SR25.6 billion recorded in the preceding quarter.
Net FDI reflects the actual retained investment after subtracting outflows such as dividends, loan repayments, or capital exits — making it a more accurate indicator of lasting foreign capital in the economy.
The FDI boost coincides with Saudi Arabia’s growing appeal among global investors. In April, the Kingdom climbed to a record 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index while maintaining its rank as the third most attractive emerging market, underscoring strong investor confidence.
In its latest release, GASTAT stated: “The volume of outflows amounted to about SAR 1.8 billion during Q1 of 2025. It achieved a decrease of 54% compared to Q1 of 2024, where the volume of outflows reached SAR 3.9 billion.”
The report noted that this represented a 7 percent increase from the fourth quarter of 2024, when outflows stood at SR1.7 billion.
The narrowing gap between inbound and outbound foreign capital underscores the resilience of the Kingdom’s investment environment amid ongoing economic transformation efforts.
It also reflects a growing trend of multinational companies establishing regional headquarters in the Kingdom. Under new localization rules linked to government contracts, several global firms have set up or expanded their presence in Riyadh.
In March, Dell Technologies became one of the latest tech giants to open a regional office in the Saudi capital, joining companies such as PepsiCo, Schneider Electric, Morgan Stanley, PwC, and Deloitte — all of which have ramped up operations to tap into the Kingdom’s rapidly evolving market and $1.1 trillion giga-project pipeline.
The Kingdom’s performance comes against a backdrop of global declines in foreign direct investment.
According to the UN Conference on Trade and Development, inward FDI inflows in Saudi Arabia fell 31 percent in 2024 to $15.73 billion, while outflows rose 27.1 percent to $22.04 billion.
The report attributed the downturn to persistent trade tensions, geopolitical uncertainty, and weakening investor sentiment worldwide.
Earlier this month, S&P Global said it expects FDI into Gulf Cooperation Council countries to slow further in 2025, citing lower oil prices and a more gradual rollout of economic diversification plans across the region.
Saudi unemployment rate hits historic low of 2.8% in Q1: GASTAT
RIYADH: Saudi Arabia’s overall unemployment rate fell to a record low of 2.8 percent in the first quarter of 2025, down 0.7 percentage points from the previous quarter, official data showed.
According to figures released by the General Authority for Statistics, the jobless rate also declined by 0.7 points year on year. The labor force participation rate for both Saudis and non-Saudis increased to 68.2 percent, marking a rise of 1.8 points from the previous quarter and 2.2 points from the same period last year.
The Kingdom’s strengthening labor market aligns with Vision 2030, the nation’s strategic roadmap focused on creating job opportunities for citizens and driving economic growth. Curbing joblessness remains a core pillar of the broader socio-economic reform agenda.
In its latest release, GASTAT stated: “The employment-to-population ratio for Saudis increased by 0.5 percentage points compared to the fourth quarter of 2024, reaching 48.0 percent, and increased by 0.5 percentage points compared to the first quarter of 2024.”
Among Saudi nationals, the jobless rate fell to 6.3 percent in the first quarter — a 0.7-point drop from the earlier quarter and 1.3 points lower year on year. Participation in the workforce among Saudis edged up to 51.3 percent, a quarterly improvement of 0.2 points.
To support job seekers and streamline employment efforts, the Kingdom continues to promote digital platforms such as Jadarat, a unified national system for connecting Saudis to job opportunities.
The share of Saudi women engaged in the labor force rose to 36.3 percent in the first quarter, up 0.3 percentage points from the preceding quarter.
“Additionally, the employment to population ratio of Saudi females increased by 0.7 percentage points, reaching 32.5 percent. At the same time, the unemployment rate of Saudi females decreased by 1.4 percentage points, recording 10.5 percent, compared to the previous quarter of 2024,” GASTAT added.
Among Saudi men, participation in economic activity increased slightly to 66.4 percent, while their unemployment rate declined by 0.3 percentage points to 4.0 percent.
GASTAT’s report also revealed that 94.8 percent of unemployed Saudis are open to working in the private sector. Of these, 76.1 percent of women and 86.3 percent of men expressed willingness to work at least eight hours a day.
Additionally, 58.7 percent of Saudi women seeking employment and 40.4 percent of their male counterparts expressed willingness to commute for one hour or more to reach their workplace.
Alongside the survey findings, GASTAT also published register-based labor market statistics for the same timeframe.
The number of Saudis registered with the General Organization for Social Insurance and the Civil Service rose to 2.92 million in the first quarter of 2025, up from 2.89 million in the previous quarter. Of these, 2.42 million were employed in the private sector and 492,620 in the public sector.
Meanwhile, the total number of registered workers in the Kingdom — including Saudis and non-Saudis — increased to 12.8 million, compared to 12.4 million in the fourth quarter of 2024.
Saudi Arabia eyes untapped opportunities in Mauritania, Morocco
JEDDAH: Saudi Arabia is strengthening its trade and investment ties with Africa as more than 30 top investors and officials visit Mauritania and Morocco to explore opportunities across multiple sectors.
The delegation, led by the Federation of Saudi Chambers, began an official visit to Northwest Africa on June 29. The agenda includes meetings to highlight investment incentives, assess the business climate, and identify partnership opportunities in key economic sectors, according to the Saudi Press Agency.
The mission aims to promote the Kingdom’s investment prospects and foster collaboration between Saudi companies and their African counterparts, thereby advancing trade and economic cooperation.
This initiative is part of the FSC’s broader efforts to enhance international economic ties and align with Saudi Arabia’s Vision 2030 strategy, which focuses on diversifying the Kingdom’s economic base and expanding global partnerships. It also reflects Riyadh’s growing interest in deepening commercial engagement with African nations.
“Both sides hope that this visit will open new horizons for trade and investment relations,” SPA reported, noting that trade with Mauritania reached SR119 million ($32.13 million), with Saudi exports accounting for 99 percent.
Trade with Morocco totaled SR5 billion, with 13 percent of this amount representing imports, signaling untapped investment opportunities that the visit aims to uncover.
Led by FSC Chairman Hassan Moejeb Al-Huwaizi, the delegation will hold talks with Mauritanian officials and business leaders in Nouakchott. The two-day mission aims to strengthen bilateral economic ties and foster strategic partnerships across various sectors.
A joint Saudi-Mauritanian business forum will be held to explore cooperation opportunities, featuring participation from the Ministry of Industry and Mineral Resources, the Ministry of Investment, the General Authority of Foreign Trade, and the Saudi Fund for Development.
Saudi exports currently dominate the trade balance with Mauritania, while imports remain limited at around SR100,000. Mauritania is Saudi Arabia’s 88th largest export destination and 196th in terms of imports.
Key Saudi exports to Mauritania include metals, rubber products, dairy and animal-based goods, and machinery. Imports from the West African country primarily consist of fish and shellfish, tea and spices, textiles and unstitched garments, as well as medical and optical instruments.
Trade volume with Morocco stands at SR5 billion, with imports making up 13 percent.
In 2024, Riyadh and Rabat signed a cooperation agreement between their chambers of commerce aimed at deepening economic ties. The pact facilitates financial collaboration, information exchange, joint events, trade delegations, and dispute resolution, all designed to promote stronger business partnerships.
With this African outreach, the FSC continues its international expansion efforts, having recently completed trade missions to 17 countries as part of its Vision 2030-driven strategy to open new markets and boost trade and investment.
