RIYADH: An American expert on US-Saudi business affairs believes that the withdrawal of some senior business leaders from the investment conference that opens in Riyadh today does not reflect the Kingdom’s commercial attractions.
Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” told Arab News that there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative in the Saudi capital, and that many business people were still looking to do business there.
“I think the big pull out of CEOs is not really reflective of the corporate interest in the Kingdom because we see them sending their next level of executives along. So to some degree it (the CEO pullout) is symbolic. I think what they experience here this week will have an effect,” she said.
Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to potential business partners in other parts of the world.
“In terms of attracting foreign investment, Saudi Arabia could have strategic leverage with Russia and China, and a unique opportunity to work on cutting edge technolgies,” she said.
Wald was speaking at an event organized by the King Abdullah Petroleum Studies and Research Center to discuss her book. She said that Saudi Arabia had a greater need for technology and know-how than for cash investment.
“With regard to foreign investment, it is not about extracting money, but about extracting expertise. The Saudi model has been to hire outside industrial talent, for example the Public Investment Fund and its cinema partner AMC. They are buying expertise in the same way that the Saudis bought in expertise with Aramco, all those years ago. Eventually they (PIF) will buy the cinemas out or bring in somebody else to run them,” she added.
‘Saudi Inc’ author says no shows won’t dent KSA investment appeal
‘Saudi Inc’ author says no shows won’t dent KSA investment appeal
- Ellen Wald said there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative
- Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to other potential business partners
Oman’s GDP grows 2.6% in Q2, driven by non-hydrocarbon sector
- Real GDP also saw an increase of 1.9%, with the non-hydrocarbon sector contributing 4.2%
- etrochemical and plastics sector saw a 58% increase, while the mining industry dropped by 42%
JEDDAH: Oman’s nominal gross domestic product grew by 2.6 percent at the end of the second quarter of the year compared to the same period in 2023.
The growth was primarily driven by a 5 percent increase in the non-hydrocarbon sector. However, it was partially offset by a 1.4 percent reduction in hydrocarbon sector production, according to preliminary data from the National Center for Statistics and Information.
Real GDP also saw an increase of 1.9 percent, with the non-hydrocarbon sector contributing 4.2 percent to this expansion.
As of October, the average price of Omani oil increased by 2.5 percent to $82.6 per barrel, while oil production decreased by 5.4 percent to nearly 994,000 barrels per day. Additionally, the Consumer Price Index reflected a modest 0.6 percent year-on-year inflation as of October.
Non-oil exports, insured sales grow 5% in Q3
The sultanate’s non-oil exports and domestic sales insured by Credit Oman grew by 5 percent in the third quarter, reaching 272.8 million Omani rials ($708.8 million).
Domestic sales rose 15 percent to 126.9 million rials, while non-oil exports declined slightly by 2 percent to 145.9 million rials, according to official data reported by the country’s news agency.
The petrochemical and plastics sector saw a 58 percent increase, while the mining industry dropped by 42 percent. In the domestic market, packaging led growth with a 156 percent rise, while building materials declined by 12 percent. Consumer goods and food sales grew by 13 percent.
133 maritime tourism licenses issued
The Ministry of Transport, Communications, and Information Technology has said that the number of licenses issued for maritime tourist trips from the beginning of January to the end of August reached 133.
Eight firms are currently managing and operating the tourist marine docks in the governorates of Musandam, South Al-Batinah, Muscat, and Dhofar.
The Director General of Ports, Muhanna bin Moosa bin Baqir, said that the ministry oversees Oman’s maritime affairs, focusing on monitoring operational performance and ensuring compliance with international standards for ship security and port facilities. He added that his ministry aims to enhance the operational efficiency of these terminals.
Gas production and imports up 4.5% to 47.1bn cubic meters
The total domestic production and import of natural gas in Oman reached 47.1 billion cubic meters by the end of October, marking a 4.5 percent increase compared to 45.1 billion cubic meters in the same period last year.
According to statistics from the NCSI, industrial projects accounted for 51.1 percent of natural gas usage in the country by the end of October, totaling approximately 24.1 billion cubic meters.
The total natural gas usage reached 9.9 billion cubic meters in oil fields, 12.9 billion cubic meters in power stations, and 208.3 million cubic meters in industrial areas.
Non-associated natural gas production, including imports, amounted to 37.5 billion cubic meters, while associated production stood at 9.6 billion cubic meters by the end of the current year.
Oil exports reach 256.3m barrels by October
According to the same statistics, Oman’s total oil exports reached approximately 256.3 million barrels by the end of October, with an average price of $82.6 per barrel.
Oil exports accounted for 84.6 percent of the total oil production, which was 303.1 million barrels.
The data also revealed that crude oil production decreased by 6.6 percent, totaling 232.1 million barrels by the end of October. However, condensate production increased by 0.2 percent, reaching 71.1 million barrels. The average daily oil production was 993,900 barrels.
Japan, GCC strengthen economic ties with 1st round of FTA talks
RIYADH: Economic ties between Japan and the Gulf Cooperation Council advanced with the successful completion of the first round of Free Trade Agreement negotiations in Riyadh on Dec. 12.
Led by Saudi Arabia’s General Authority for Foreign Trade, the discussions aimed to lay the groundwork for future trade agreements, covering key areas such as trade in goods and services, customs procedures, digital trade, rules of origin, intellectual property, and general provisions.
This milestone marks a significant step towards deeper economic collaboration between the two regions. Fareed Al-Asaly, deputy governor of International Organizations and Agreements at GAFT, underscored the importance of the talks, emphasizing that the agreement could lead to increased trade volumes and closer economic integration. He also noted that Japan is a key market for GCC exports.
The Saudi delegation included representatives from multiple ministries and government bodies, such as the ministries of energy, investment, environment, water and agriculture, industry and mineral resources, economy and planning, and interior.
Additionally, officials from the Saudi Authority for Intellectual Property, the Zakat, Tax, and Customs Authority, the National Cybersecurity Authority, the Saudi Export Development Authority, and the Saudi Central Bank participated in the discussions.
The conclusion of this first round of negotiations marks the beginning of a broader process aimed at strengthening trade relations and fostering economic cooperation between the GCC and Japan.
This year has already seen significant strides in the economic partnership between Saudi Arabia and Japan. In May, both nations agreed to collaborate on building global supply chains for clean energy resources, including hydrogen and ammonia. The goal is to establish a robust international network for clean energy.
In July, during Japanese Prime Minister Fumio Kishida’s visit to Saudi Arabia, the two countries exchanged 26 pre-signed economic agreements covering sectors such as healthcare, clean energy, mining, and digital innovation. Energy Minister Prince Abdulaziz bin Salman highlighted the long-standing energy partnership, noting that Saudi Arabia supplied around 40 percent of Japan’s oil in 2021.
In October, the Saudi Public Investment Fund signed five memorandums of understanding with Japanese financial institutions, with agreements worth up to $51 billion.
These deals aim to boost bilateral capital flows through both debt and equity, further solidifying the financial relationship between the two nations.
This continued collaboration signals a growing and mutually beneficial partnership between Japan and the GCC, with the potential to reshape regional economic dynamics and create new opportunities for growth and innovation.
Egypt partners with UAE’s AMEA Power to launch renewable energy projects in Aswan, Gulf of Suez
- $600 million investment expected to reduce carbon emissions, create job opportunities, and enhance energy security
- Prime Minister Mostafa Madbouly said initiative aligns with Egypt’s strategic vision to increase reliance on renewable energy
RIYADH: Egypt has signed two agreements with UAE-based AMEA Power to develop a 500-megawatt wind farm in the Gulf of Suez, further strengthening the nation’s renewable energy sector.
The partnership, valued at $600 million, was formalized during the inauguration of the Abydos 1 solar power plant in the southern city of Aswan.
The agreements highlight Egypt’s commitment to diversifying the sector and advancing its national renewable energy strategy, according to a statement from the Cabinet.
The new wind project in the Gulf of Suez, located at the northern end of the Red Sea, will contribute 500 MW to Egypt’s energy grid, supporting the country’s goal of generating 42 percent of its electricity from renewable sources by 2030.
The $600 million investment is expected to reduce carbon emissions, create employment opportunities, and enhance Egypt’s energy security.
Prime Minister Mostafa Madbouly said the initiative aligns with Egypt’s strategic vision to increase reliance on renewable energy.
He also said that enhancing the role of renewable sources in the country’s energy mix is a national priority, particularly given the nation’s abundant natural resources, emphasizing the government’s commitment to creating a favorable environment for international investments and advancing sustainable development.
Inauguration of the Abydos 1 Solar Plant
The ceremony marked the launch of the Abydos 1 solar power plant in the Kom Ombo desert region of Aswan. Developed by AMEA Power, the solar facility is expected to significantly enhance Egypt’s renewable energy output.
The Cabinet said the project is part of a broader effort to stabilize the national electricity grid, reduce dependency on fossil fuels, and minimize power outages.
Egypt’s Minister of Electricity and Renewable Energy Mahmoud Esmat praised the Abydos 1 project, saying that it reflects the country’s commitment to promoting clean energy and reducing greenhouse gas emissions.
He highlighted the government’s ongoing efforts to support renewable energy initiatives and attract global investment.
Egypt’s renewable energy ambitions
The signing of the agreements and the inauguration of the solar plant are integral to Egypt’s broader strategy for energy diversification.
Madbouly said the projects are crucial steps in Egypt’s journey toward becoming a regional leader in renewable energy and the government was focused on harnessing the natural potential to support its energy needs and ensure long-term sustainability.
The prime minister also acknowledged the strategic partnership with AMEA Power, praising the UAE company’s role in delivering innovative and sustainable energy solutions. He expressed gratitude to President Abdel Fattah El-Sisi for his leadership in supporting Egypt’s transition to clean energy.
Uzbekistan inaugurates largest wind farm in Central Asia
RIYADH: Uzbekistan has officially inaugurated Central Asia’s largest wind farm, the 500-megawatt Zarafshan facility, as part of its efforts to expand clean energy capacity.
Developed by Abu Dhabi Future Energy Co., known as Masdar, the wind farm was launched by Uzbekistan’s President, Shavkat Mirziyoyev, in a ceremony attended by Sultan Al-Jaber, the UAE minister of industry and advanced technology.
The Zarafshan wind farm aligns with Uzbekistan’s target to generate 40 percent of its electricity from renewable sources by 2030. It is also a key step in the country’s ambitious plan to achieve 20 gigawatts of clean energy capacity by the decade’s end.
“The UAE and Uzbekistan’s enduring relationship is critical to a shared commitment to drive low-carbon socioeconomic progress and clean energy capacity growth,” said Al-Jaber, who is also the chairman of Masdar.
He added: “Uzbekistan has become a leading investment destination and a clean energy hub for the region as we work to deliver our shared goal of tripling global renewable energy capacity by 2030, as outlined in the historic UAE Consensus.”
Masdar has pledged $2 billion to Uzbekistan’s clean energy initiatives, which include projects with a combined capacity of over 2 GW. The company also has a pipeline of 4 GW of renewable projects in early development stages, according to a statement.
UAE Minister of Energy and Infrastructure Suhail Mohamed Faraj Al-Mazrouei hailed the wind farm as a testament to Uzbekistan’s climate leadership and energy transition efforts.
“The UAE and Uzbekistan share a common vision of sustainable development and renewable energy and Zarafshan is (a) testament to the strength of our partnership in advancing clean, emissions-free energy in Uzbekistan,” Al-Mazrouei also said.
Masdar CEO Mohamed Jameel Al-Ramahi highlighted the project’s significance, describing it as a reflection of Uzbekistan’s bold renewable energy ambitions.
“Uzbekistan has built upon its legacy as a vital artery on the ancient Silk Road – the historic trade route uniting east and west – becoming a key hub for renewables in the region, moving at pace and at scale to develop landmark clean energy projects and attract investment,” added Al-Ramahi.
During the recent UN Climate Change Summit, COP29, Uzbekistan’s Ministry of Energy and Masdar signed an agreement to develop another 1-GW wind farm in the Mingbulak region.
The Mingbulak wind farm is expected to create 1,000 jobs during construction and 60 operational roles. Once completed, it will provide clean energy to 300,000 homes in the region, the statement added.
Saudi Arabia’s inflation holds steady at 2% in November: GASTAT
- On a monthly basis, the consumer price index rose slightly by 0.3 percent from October
- GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index for November
RIYADH: Saudi Arabia’s annual inflation rate remained stable at 2 percent in November compared to the same month in 2023, driven primarily by higher housing costs, official data showed.
According to data released by the General Authority for Statistics, housing rents increased by 10.8 percent year on year in November, while apartment rental prices surged 12.5 percent during the same period.
Overall, costs for housing, water, electricity, gas, and other fuels rose by 9.1 percent compared to the previous year, underscoring the sector’s influence on inflation.
Saudi Arabia’s inflation rate remains among the lowest in the Middle East and globally, highlighting the Kingdom’s effective measures to maintain economic stability and address global price pressures.
A World Bank report released in October projected that Saudi Arabia’s inflation will remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, well below the Gulf Cooperation Council average.
“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for November 2024 due to the weight formed by this section, which amounted to 25.5 percent,” GASTAT stated.
The cost of personal goods and services rose by 2.7 percent year on year, driven by a 23.7 percent increase in the prices of jewelry, watches, and antiques. Restaurant and hotel expenses edged up by 1.5 percent, while the education sector saw a 2.7 percent annual increase.
Food and beverage prices recorded a marginal rise of 0.3 percent year on year, supported by a 1.9 percent increase in meat and poultry costs.
However, some sectors saw declines. Furnishing and home equipment prices dropped 2.9 percent year on year, with furniture, carpets, and flooring costs falling by 4.4 percent. Clothing and footwear prices decreased by 2.3 percent, while transportation costs slipped by 2.5 percent.
On a monthly basis, the consumer price index rose slightly by 0.3 percent from October.
“This monthly inflation index was influenced by a 0.9 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” said GASTAT.
The authority noted that personal goods and services prices rose by 0.5 percent month on month in November, driven by a 6.5 percent increase in insurance expenses.
Food and beverage prices recorded a slight monthly rise of 0.2 percent, while recreation and culture costs edged up by 0.1 percent. On the other hand, expenses for clothing and footwear dropped 0.3 percent in November compared to October.
Prices for furnishing and home equipment and communication services also declined slightly, down by 0.3 percent and 0.1 percent, respectively. Transportation and education costs showed no significant changes during the same period.
Last month, Moody’s projected that Saudi Arabia’s inflation would remain under control, at 1.6 percent in 2024 and 1.9 percent in 2025, before slightly accelerating to 2 percent by 2026.
Wholesale Price Index
In a separate report, GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index for November. The rise was largely driven by a 2.7 percent increase in other transportable goods, including a 12 percent jump in refined petroleum product prices.
Agriculture and fishery product prices rose by 3.3 percent, while metal products, machinery, and equipment saw a modest 0.2 percent increase. Conversely, food products, beverages, and textiles declined by 0.4 percent, weighed down by a 4.7 percent drop in costs for meat, fish, and dairy products.
The report indicated that prices of ores and minerals dropped 3 percent year on year in November, driven by a similar decline in the costs of stones and sand.
On a monthly basis, Saudi Arabia’s WPI rose by 0.2 percent in November, supported by a 1.8 percent increase in agriculture and fishery product prices.
Food products, beverages, tobacco, and textiles saw a marginal 0.2 percent monthly rise, while expenses for transportable goods increased by 0.3 percent during the same period.
Conversely, costs for metal products, machinery, and equipment dipped 0.2 percent, and prices of ores and minerals remained largely unchanged from October.
Average Price Index
In another report, GASTAT highlighted significant shifts in the average prices of goods and services across Saudi Arabia in November.
The price of Lebanese peaches surged 27.03 percent compared to October, while local onion prices rose 17.86 percent. Green local peppers and white cabbage also saw significant increases, climbing 15.83 percent and 10.95 percent, respectively.
Local grapes recorded a 10.46 percent rise, and the cost of Pakistani mandarins increased by 7.47 percent month on month.
Conversely, the price of local zucchini dropped by 14.30 percent in November. Medium Africa lemon and local cucumbers also saw declines of 11.45 percent and 8.67 percent, respectively.
In non-food goods, prices of Chilean wood decreased by 2.79 percent, while Romanian wood costs fell by 0.86 percent compared to the previous month.
