DEAD SEA: There are many divides in Palestine — but for the territory’s largest bank that is, for once, the subject of some good news.
The Bank of Palestine says its board will have a fifty-fifty gender split within a couple of years — and its chairman has called for Norway-style quota systems for women in top management positions across the Middle East.
Hashim Shawa, group chairman of the Bank of Palestine, said 44 percent of the bank’s entire workforce are women, and that the board is on track for an equal divide.
“We will be the first bank I think in the Middle East and Arab world, and maybe one of the first in the world, to have a 50-50 quota at the board level. And that will be in the next board elections, which will be in a couple of years,” he said at the World Economic Forum meeting in Jordan.
“About 10 years ago, I looked at the workforce gender balance and we were at 12 percent female … no women on the board, no women in senior positions, managers, departments, or executive levels.
“Today we have three women out of 11 on the board, we’re about 44 percent gender balanced, and we have women branch managers, women heads of department. In the C-suite, our chief credit officer, risk management, chief of HR (are) women.”
Shawa said having more women employees, including those facing customers, had broad benefits to society.
“When men have to actually approach a woman to ask for a loan, this is how you change mindsets, and you change culture. And you achieve the goal of lifting the entire society,” he said.
The Middle East has woefully low levels of women in top management positions.
In the UAE, for example, just 1.5 percent of board seats in listed companies were held by women as of mid-2016 — well below the global average.
Shawa said that he advocates a quota system in the Middle East, whereby listed companies would be obliged to have a certain proportion of women on boards.
In 2003, Norway became the first country in the world to impose a gender quota, requiring listed firms to raise the proportion of women on their boards to at least 40 percent.
“It’s a really poor excuse to say, ‘ah there are not enough women with experience.’ And fundamentally, if you don’t mobilize 50 percent of your population you’ll always be 50 percent underdeveloped,” Shawa told Arab News.
“A lot of people talk about climate change and all the challenges we face, AI and all that stuff. But we need to really address this imbalance issue.”
Palestine banker calls for Mideast quotas for women board members
Palestine banker calls for Mideast quotas for women board members
- More than two in five Bank of Palestine employees are women
- Norway became first country to impose gender quotas
Dubai sees 7.4% surge in international visitors through August 2024
RIYADH: Dubai recorded a 7.4 percent year-on-year increase in international visitors from January to August 2024, reaching a total of 11.93 million, according to recent data from the Dubai Department of Economy and Tourism.
The report highlights that Western Europe, South Asia, and the Gulf Cooperation Council remain the top three source markets for the emirate, collectively accounting for more than 50 percent of all international visitors.
This growth in tourism mirrors Dubai’s strong market performance, with both the average daily rate and revenue per available room seeing year-on-year increases of 2.5 percent and 2.7 percent, respectively, between January and September.
Meanwhile, according to the latest JLL report, Dubai’s hotel inventory grew by 240 rooms in the third quarter, bringing the total to approximately 155,400 rooms. The report also anticipates an additional 4,800 rooms will be added by the end of 2024, mainly in the four- and five-star categories.
Major projects like Marsa Al-Arab, The Island by Wasl, and Dubai Islands are expected to set new benchmarks for luxury beachfront real estate, further driving growth in the hospitality sector.
However, the JLL report also noted an emerging trend of price sensitivity within the luxury hotel segment. Increased competition from other regional and global tourist destinations has led to a shift in the spending behavior of high-end travelers.
In response, luxury hotel operators are adjusting their ADR to maintain higher occupancy levels, a strategy that is also being adopted by mid-scale and budget hotels.
As competition in the hospitality market intensifies, hotel operators are focusing on improving guest experiences, food and beverage offerings, and overall service quality to attract visitors and stay competitive. Price fluctuations in the luxury segment are expected as operators align rates with changing demand patterns.
In another sign of Dubai’s growing global appeal, Dubai International Airport reported a record 44.9 million passengers in the first half of 2024. CEO Paul Griffiths emphasized the airport’s strategic importance as a global aviation hub and reiterated Dubai’s position as a leading destination for business, tourism, and talent. With these strong indicators of growth, Dubai is well on track to solidify its place as one of the world’s top travel and tourism destinations.
Saudi Arabia’s logistics centers surge 267% amid Vision 2030 push
RIYADH: Saudi Arabia’s logistics sector has seen notable growth, with the number of facilities increasing by 267 percent since 2021, according to a report by the General Authority for Statistics.
In 2023, the Kingdom had 22 hubs spanning over 34 million sq. meters, underscoring the nation’s push to become a regional logistics leader under its Vision 2030 plan.
The Eastern Region topped the list in terms of the number of logistics centers, with six hubs covering an area of 6.3 million sq. meters.
However, the Makkah Region occupied the highest total area, with five centers spanning 20 million sq. meters, followed by Riyadh with five centers covering 4.9 million sq. meters.
The report also highlighted that the Kingdom had 12,451 warehouses in 2023, covering a total area of 22.8 million sq. meters.
Riyadh accounted for 52.9 percent, occupying 10.6 million sq. meters, followed by Makkah with 17.9 percent, the Eastern Province with 14.3 percent, and other regions making up the remaining 14.9 percent.
According to the report, general warehouse licenses were the most prevalent, totaling 6,923 and making up 55.6 percent of all licenses. Humidity-controlled warehouses followed with 2,115 licenses, representing 17 percent of the total, while refrigerated warehouses accounted for 16 percent with 2,006 licenses.
The maritime sector dominated cargo transport by quantity with 308.7 million tonnes, followed by 24.9 million tonnes transported via land, 14.3 million tonnes by rail, and 918,000 tonnes via air.
The report also revealed that the goods transport segment registered 7,963 valid licenses, with Riyadh region leading the way with 1,996 active licenses.
Saudi Arabia’s warehousing and logistics sector is undergoing a transformative surge, driven by Vision 2030 and supported by significant government and private investments.
According to a November report by Maersk, a leader in integrated logistics, the Kingdom is poised to become a global trade and logistics powerhouse. The market is projected to reach $38.8 billion by 2026, growing at a compound annual growth rate of 5.85 percent.
This growth reflects Saudi Arabia’s strategic positioning as a regional logistics hub, supported by its $106.6 billion commitment to expanding land, air, and sea cargo capacities.
The Saudi Ports Authority’s $4.5 billion investment into maritime logistics in 2023 is a testament to this vision. Coupled with giga-projects like NEOM and the National Industrial Development and Logistics Program, the country aims to capture 55 percent of the Gulf Cooperation Council’s logistics market while exponentially increasing non-oil exports.
According to Knight Frank’s Industrial and Logistics Market Review for the first half of 2024, warehouse occupancy in Saudi Arabia reached a record 97 percent nationally in mid-2024, underscoring strong demand for storage and light industrial facilities.
Riyadh and Jeddah have emerged as focal points, with high lease rates and increasing global interest from firms like Maersk, DB Schenker, and DP World.
Additionally, the rise of e-commerce and digital logistics solutions has catalyzed innovation and competition, positioning Saudi Arabia at the forefront of logistics advancements in the region.
Digital transformation
According to the report, the postal and parcel sector in Saudi Arabia handled over 140 million items in 2023, supported by 1,300 sales outlets, with an average delivery time of just 2.45 days — highlighting the sector’s growing efficiency.
Meanwhile, customs and digital transport advancements continue to reshape the logistics landscape. Customs clearance activity licenses totaled 170 in 2023, with airports accounting for 47 licenses.
Additionally, 37 delivery app companies were licensed for freight transport, signaling a significant shift toward digital innovation in the sector.
Egypt pays off $38.7bn in debts in 2024
RIYADH: Egypt has successfully repaid $38.7 billion in debts during 2024, including $7 billion in November and December, demonstrating its commitment to meeting financial obligations despite significant economic challenges.
The announcement was made by Egyptian Prime Minister Mostafa Madbouly during a Cabinet meeting, where he emphasized the government’s efforts to manage debt repayments in the face of a volatile global economic environment.
As Egypt continues to tackle its economic difficulties, the country is also set to receive around $1.2 billion from the International Monetary Fund under a staff-level agreement for the Extended Fund Facility program. The agreement, which is pending approval from the IMF’s executive board, aims to provide crucial financial support to stabilize Egypt’s economy.
This funding is part of Egypt’s broader strategy to stabilize its economy amid soaring inflation and lower-than-expected revenues, including a significant drop in earnings from the Suez Canal.
“The Egyptian authorities have consistently implemented key policies to maintain macroeconomic stability, despite the ongoing regional tensions and the sharp decline in Suez Canal receipts,” said Ivanna Vladkova Hollar, who led the IMF mission to Egypt.
Egypt’s Foreign Minister Badr Abdelatty revealed last month that the country had lost $8 billion in Suez Canal revenues, underscoring the broader economic challenges.
In response, the IMF and Egyptian authorities have agreed to revise the country’s fiscal consolidation strategy, allowing for crucial social programs aimed at supporting vulnerable groups and the middle class, while ensuring long-term debt sustainability.
“Special attention will be required to manage fiscal risks related to state-owned enterprises in the energy sector, and to enforce the strict implementation of the public investment ceiling, which includes capital expenditures from public entities operating outside the general government budget,” added Hollar.
The reduction in external debt is a significant achievement, reflecting the Egyptian government’s commitment to managing its financial obligations despite the ongoing global economic turbulence.
Despite economic hurdles like rising inflation and fiscal deficits, Egypt has worked to balance addressing external debt with fostering sustainable growth. This reduction in debt is expected to improve Egypt’s creditworthiness, sending a positive signal to international markets and potentially attracting more global investment.
In an effort to stimulate further economic growth, Madbouly also announced plans to privatize several airports and banks, with the aim of boosting private sector involvement in the economy.
UAE, China lead Saudi Arabia’s Non-oil exports in October
- China was the second-largest destination for Saudi Arabia’s non-oil exports during the month, receiving shipments worth SR2.35 billion
- King Fahad Industrial Sea Port in Jubail was the top exit point, processing exports valued at SR3.77 billion
RIYADH: Saudi Arabia’s non-oil exports surged in October, with the UAE and China emerging as the Kingdom’s top trading partners, showcasing its ongoing efforts to diversify the economy under Vision 2030.
Outbound shipments to the UAE reached SR5.86 billion ($1.56 billion), a rise of 54.2 percent compared to the same month last year, according to the latest report by the General Authority for Statistics. Mechanical and electrical equipment topped the list of exports to the UAE, valued at SR3.11 billion, followed by transport parts worth SR713.5 million and chemical products at SR503.8 million.
China was the second-largest destination for Saudi Arabia’s non-oil exports during the month, receiving shipments worth SR2.35 billion. Chemical products accounted for SR826.3 million of these exports, followed by plastic and rubber goods valued at SR795.1 million. Mineral products worth SR300.5 million were also exported to China in October.
Strengthening the non-oil sector is a cornerstone of Saudi Arabia’s Vision 2030, which aims to reduce the Kingdom’s reliance on crude revenues. The initiative has been a key driver of economic policy since its launch in 2016, and officials have pointed to tangible progress in this direction.
Speaking at the World Economic Conference in Riyadh last month, Saudi Arabia’s Minister of Economy and Planning, Faisal Al-Ibrahim, highlighted that the non-oil sector now accounts for 52 percent of the Kingdom’s real gross domestic product. He further noted that non-oil economic activities have been growing at an annual rate of 20 percent since the Vision 2030 reforms began.
This diversification push has been underscored by recent economic indicators. Saudi Arabia’s Purchasing Managers’ Index, which measures business activity in the non-oil private sector, rose to 59.0 in November from 56.9 in October.
A PMI reading above 50 indicates expansion, and November’s figure represents the fastest pace of growth since July.
India was another key destination for Saudi Arabia’s non-oil goods in October, with exports totaling SR2.11 billion. Other significant markets included Singapore, which received SR947.5 million in shipments, and the US, which accounted for SR829.6 million.
European markets also featured prominently among Saudi Arabia’s export partners. Belgium imported SR820.7 million worth of non-oil products, while Egypt and Turkiye received SR808.8 million and SR767.9 million, respectively.
Overall, Saudi Arabia’s non-oil exports reached SR25.38 billion in October, reflecting a 12.7 percent year-on-year increase compared to the same period in 2022.
Export channels
Maritime routes continued to play a vital role in facilitating the Kingdom’s non-oil trade, handling shipments worth SR15.41 billion in October. King Fahad Industrial Sea Port in Jubail was the top exit point, processing exports valued at SR3.77 billion, followed by Jeddah Islamic Sea Port at SR3.53 billion.
Other key ports included Jubail Sea Port, which handled outbound shipments valued at SR1.86 billion, and King Abdulaziz Sea Port, which processed SR2.36 billion worth of exports.
Land routes accounted for SR5.20 billion of non-oil exports, while air shipments contributed SR4.75 billion. Among airports, King Khalid International in Riyadh and King Abdulaziz International in Jeddah handled exports valued at SR2.25 billion and SR2.38 billion, respectively.
Imports trends
While non-oil exports experienced robust growth, Saudi Arabia’s imports declined by 3.8 percent year on year to SR72.01 billion in October. Machinery and equipment topped the list of imported goods, comprising 25.7 percent of total imports and reflecting a 6.9 percent annual increase.
However, transportation equipment imports fell sharply by 21.6 percent, accounting for 15.3 percent of total imports. This decline in transport-related imports highlights shifting priorities in the Kingdom’s procurement patterns as it continues to diversify its economy.
China remained the Kingdom’s largest source of imports, supplying goods worth SR17.58 billion in October. These included mechanical and electrical equipment valued at SR7.54 billion, transport equipment at SR2.28 billion, and base metal products at SR1.73 billion.
The US was the second-largest source of imports, with shipments totaling SR5.69 billion, followed by the UAE at SR4.34 billion. Other notable trading partners included India, which supplied goods worth SR4.11 billion, and Germany, which accounted for SR3.21 billion in imports.
Saudi Arabia’s sea routes handled 60.6 percent of its total imports in October, amounting to SR43.67 billion. King Abdulaziz Sea Port in Dammam was the primary entry point, receiving SR21.16 billion worth of goods.
Air routes accounted for SR19.38 billion of imports, while land shipments contributed SR8.94 billion. Among land ports, Al Bat’ha Port was the most significant, handling SR3.84 billion worth of inbound goods.
Merchandise exports
Despite the positive performance in the non-oil sector, Saudi Arabia’s overall merchandise exports fell 10.7 percent year on year in October, reaching SR92.78 billion. This decline was primarily driven by a 17.3 percent drop in oil exports, which still account for a majority of the Kingdom’s trade.
Oil’s share of total exports fell to 72.6 percent in October, down from 78.3 percent in the same month last year. This shift underscores Saudi Arabia’s commitment to reducing its reliance on crude sales as part of its long-term economic strategy.
China remained the top recipient of Saudi exports overall, importing goods worth SR14.95 billion. India was the second-largest market, receiving SR8.79 billion in shipments, followed by Japan at SR8.70 billion and South Korea at SR8.31 billion.
Other major export destinations included the UAE, which received SR7.05 billion worth of goods, and Egypt, which accounted for SR3.49 billion. Poland and Singapore were also significant markets, importing SR3.43 billion and SR2.68 billion, respectively.
Saudi Arabia’s ongoing investments in economic diversification are expected to sustain growth in the non-oil sector. A recent report by PwC Middle East projected that the Kingdom’s non-oil economy will expand by 4.4 percent in 2025, building on the current momentum.
The report also noted that the non-oil private sector grew by 4.9 percent in the second quarter of this year, contributing to an overall expansion of 3.8 percent in the non-oil economy.
As the Kingdom advances its Vision 2030 goals, non-oil exports and trade partnerships will remain critical to driving sustainable economic growth.
Oil Updates — prices edge higher on hopes for more China stimulus
TOKYO: Oil prices edged higher on Thursday in thin holiday trading, driven by hopes for additional fiscal stimulus in China, the world’s biggest oil importer, while an anticipated decline in US crude inventories also provided support, according to Reuters.
Brent crude futures rose 22 cents, or 0.3 percent, to $73.80 a barrel by 07:50 a.m. Saudi time. US West Texas Intermediate crude was at $70.34 a barrel, up 24 cents, or 0.3 percent, from Tuesday’s pre-Christmas settlement.
China plans to boost fiscal support for consumption next year by increasing pensions and medical insurance subsidies for residents and expanding trade-ins for consumer goods, according to a finance ministry announcement on Tuesday.
Meanwhile, Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive a faltering economy.
“Crude oil prices have risen this week, driven by news that Chinese authorities are implementing a record-breaking 3 trillion yuan fiscal stimulus to boost their struggling economy,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“Additionally, a decrease in US crude oil inventories, which indicates healthy demand, has also supported prices.”
Satoru Yoshida, a commodity analyst at Rakuten Securities, said expectations of increasing fossil fuel production and demand after US President-elect Donald Trump takes office next month are also bolstering oil prices.
An extended Reuters poll showed on Tuesday that crude inventories are expected to have fallen by about 1.9 million barrels in the week to Dec. 20. Gasoline and distillate inventories are seen falling by 1.1 million barrels and 0.3 million barrels, respectively.
US crude oil and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
The latest data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 9:00 p.m. Saudi time on Friday.
On the supply side, Libya's National Oil Corp (NOC) said on Wednesday that the country's average crude production in 2024 exceeded its target of around 1.4 million barrels per day.
