LONDON/BRUSSELS: The EU made clear on Monday that Britain could not expect a zero-tariffs and zero-quotas deal trade with the bloc unless London agrees to terms that ensure there is fair competition with the European single market.
European Union Brexit negotiator Michel Barnier, laying out his mandate for negotiations with the UK following its exit from the EU last week, said there should be a level playing field over the long term on social, state aid and environmental standards.
He told a news briefing that all sides needed to prepare for the prospect of a “cliff edge” no deal at the end of the year.
Barnier was speaking shortly before British Prime Minister Boris Johnson was due to lay out his negotiating terms for talks with the EU. He is expected to say that Britain will prosper even if he cannot strike his preferred trade deal.
After marking Britain’s departure from the EU at a party in his Downing Street residence on Friday, Johnson will use a speech to ram home his message that Brexit, for him, means that sovereignty trumps the economy.
The sides have until the end of the year, when a transitional period expires, to try to secure a deal on trade and future relations — something London and Brussels both say they want to do, but on very different terms.
Trade talks will begin in March. After criticizing his predecessor Theresa May’s approach in negotiating a divorce deal with the EU, Johnson is striking a much tougher tone, saying Britain will not adhere to the bloc’s rules and regulations.
And he will say that, if the EU fails to grant a trade deal allowing for tariff- and quota-free trade in goods, similar to the terms the bloc now has in place with Canada, Britain will pursue a much looser arrangement, like one Australia has.
“There is no need for a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment, or anything similar, any more than the EU should be obliged to accept UK rules,” Johnson will say, according to excerpts of his speech distributed by his office.
Promising to maintain “the highest standards,” Johnson will suggest the EU has already offered a free trade deal along the lines of the one it has with Canada, which does not have to follow the bloc’s rules.
“We have made our choice: we want a free trade agreement, similar to Canada’s, but in the very unlikely event that we do not succeed, then our trade will have to be based on our existing Withdrawal Agreement with the EU,” he will tell businesses, think tanks and ambassadors.
“The choice is emphatically not ‘deal or no-deal’. The question is whether we agree a trading relationship with the EU comparable to Canada’s – or more like Australia’s.”
At the moment, much of EU-Australia trade runs along basic World Trade Organization rules, though there are specific agreements for certain goods. Australia is in the process of negotiating a trade deal with the EU, however.
One British source who declined to be named has said UK negotiators are furious because they believe the EU, Britain’s biggest trading partner, is going back on the divorce deal by suggesting that London would have to adhere to the bloc’s rules to secure a free trade agreement.
Post-Brexit: EU sets out red lines as UK’s Johnson talks tough on trade deal
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Post-Brexit: EU sets out red lines as UK’s Johnson talks tough on trade deal
- After criticizing his predecessor’s approach in negotiating a divorce deal with the EU, Boris Johnson is striking a much tougher tone
- ‘We have made our choice: we want a free trade agreement, similar to Canada’s’
Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan
- ACWA Power has been significantly involved in Uzbekistan’s renewable energy sector in recent years
- Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030
JEDDAH: Saudi utility giant ACWA Power launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, marking a $3 billion investment in the country’s energy transition.
On Dec. 18, Uzbekistan’s President Shavkat Mirziyoyev and the Kingdom’s Minister of Energy, Prince Abdulaziz bin Salman, who joined virtually, inaugurated the projects.
The initiatives include the Bash and Dzhankeldy Wind Power Plants with a total capacity of 1,000 megawatts and a transmission line, the Samarkand 1 and 2 solar projects with 1,000 MW of solar power and a 1,000 MWh battery energy storage system, and the Tashkent BESS Project, which consists of a 500 MWh BESS.
Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its broader plan to achieve 20 gigawatts of clean energy capacity by the decade’s end.
Mohammad Abunayyan, the chairman of ACWA Power’s board of directors, who also chairs the Saudi-Uzbek Business Council, emphasized the significant progress in his company’s collaboration with the Uzbek government, highlighting its role as a key strategic investor in the country’s rapidly growing clean energy sector.
Abunayyan said: “Today’s groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country’s energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan’s key regions and communities.”
Prince Abdulaziz commended the robust relationship between the Kingdom and Uzbekistan and said the alliance has nurtured deep collaboration across multiple sectors, with a particular focus on energy, which has brought mutual benefits to both nations, according to a statement from the company.
The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030. He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as the Kingdom’s growing investment in Uzbekistan’s electricity sector amid the country’s energy transition.
In October, ACWA Power announced it signed a letter of intent with the Asian Infrastructure Investment Bank to secure $150 million for the development of three wind power plants in Uzbekistan, namely the Kungrad 1, 2, and 3 plants in the Karakalpakstan region.
The company, listed on the Saudi Stock Exchange, said in a press release that the financing will support the three facilities, each with a capacity of 500 MW.
The financing term is set at four years and will be backed by an institutional guarantee from ACWA Power.
Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country’s renewable energy sector in recent years.
The company’s current portfolio in Uzbekistan includes 11.6 GW of power, with 10.1 GW from renewable sources, along with the country’s first green hydrogen project, which has an annual capacity of 3,000 tonnes.
Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented, with an ongoing portfolio of initiatives valued at $15 billion, ACWA Power said in the statement.
Saudi Arabia unveils enhanced e-guide to boost exports
JEDDAH: The Kingdom’s businesses now have access to an enhanced support system through the newly launched electronic guide by the Saudi Export Development Authority.
SEDA has introduced the first digital version of its Export Incentive Service, or Incentives, which provides a comprehensive overview of key benefits, application procedures, and eligibility criteria aimed at promoting exports.
The initiative is designed to help Saudi companies expand into global markets by offering nine distinct incentives that adhere to World Trade Organization regulations, according to the Saudi Press Agency.
This launch is part of SEDA’s ongoing efforts to enhance the export environment, raise awareness of export practices, develop human capital within the sector, and create new opportunities for Saudi exporters.
Additionally, the program seeks to address the challenges faced by exporters through collaboration with both public and private sector stakeholders. By supporting these efforts, the program aligns with the Kingdom’s Vision 2030 goals of diversifying sources of national income.
The guide caters to the specific needs of exporters, covering a wide range of activities, including e-commerce platform registration, product certification, participation in international trade shows, marketing, advertising, product registration, and facilitating visits to potential buyers. It also offers legal consultations and specialized training.
A notable feature of the program is its cost-sharing component. The initiative compensates companies for a portion of the costs associated with entering new markets, offering reimbursement ranging from 50 percent to 75 percent, depending on specific terms and conditions.
In the third quarter of 2024, Saudi Arabia’s non-oil exports reached SR79.48 billion ($21.17 billion), marking an impressive 16.76 percent increase compared to the same period in 2023, according to data from the General Authority for Statistics.
Notably, the Kingdom’s exports to the UAE amounted to SR19.58 billion, followed by India at SR6.78 billion and China at SR6.48 billion.
Chemical products led the Kingdom’s non-oil exports, representing 25.5 percent of total shipments, with a 5.3 percent year-on-year increase. Plastic and rubber products followed, accounting for 24.9 percent of exports, reflecting an 8.9 percent growth compared to the previous year.
In addition to the export incentives program, SEDA recently introduced another initiative exempting industrial inputs from customs duties.
Developed in collaboration with the Ministry of Industry and Mineral Resources, this service provides industrial companies with customs duty exemptions on inputs used to produce export goods. This move aligns with Vision 2030’s broader goal of diversifying the economy and increasing non-oil exports.
The service covers industrial inputs, such as raw materials, labor, fuel, equipment, and buildings, enabling Saudi manufacturers to reduce costs associated with production for export. By improving cost efficiency, the initiative aims to enhance the global competitiveness of Saudi industries.
Together, these programs are designed to diversify income sources, enhance non-oil exports, and promote sustainable growth, offering innovative solutions tailored to the needs of exporters while supporting the competitiveness of the Kingdom’s industrial sector.
Closing Bell: Saudi indices close in green
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 12.33 points, or 0.10 percent, to close at 11,961.05.
The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 117 of the listed stocks advanced, while 106 retreated.
The MSCI Tadawul Index increased by 0.40 points, or 0.03 percent, to close at 1,498.37.
The Kingdom’s parallel market Nomu also gained 95.94 points, or 0.31 percent, to close at 31,196.25. This comes as 47 of the listed stocks advanced, while 39 retreated.
The best-performing stock of the day was Savola Group, with its share price surging by 9.98 percent to SR33.60.
Other top performers included United International Holding Co., which saw its share price rise by 9.01 percent to SR171.80, and Batic Investments and Logistics Co., which saw a 6.05 percent increase to SR3.68.
Alkhaleej Training and Education Co. saw its share price surge by 4.35 percent to SR32.35, while Fitaihi Holding Group recorded a 3.58 percent rise, closing at SR4.34.
Red Sea International Co. saw the biggest decline of the day, with its share price dropping 7.05 percent to SR56.70.
Jahez International Co. for Information System Technology saw its shares drop 5.07 percent to SR29, while Zamil Industrial Investment Co. declined 3.95 percent to SR32.80.
Moreover, Sumou Real Estate Co. dropped 3.83 percent to SR46.50, while Al-Baha Investment and Development Co. fell 3.12 percent to SR0.31.
On the parallel market Nomu, the top performer was View United Real Estate Development Co. with its share price surging by 30 percent to reach SR9.88.
Leen Alkhair Trading Co. saw a 9.62 percent surge in its share price to SR25.65, placing second, followed by Yaqeen Capital Co., which rose 8.13 percent to SR26.60.
Dar Almarkabah for Renting Cars Co. saw a 7.71 percent increase, reaching SR17.75, while Abdulaziz and Mansour Ibrahim Albabtin Co. rose 7.59 percent to SR17.80.
Nomu’s two biggest decliners for the day were Enma AlRawabi Co., with its share price falling 11.65 percent to SR22, and Knowledge Net Co., which dropped 8.70 percent to SR31.50.
Leaf Global Environmental Services Co. followed with a dip of 8.40 percent in its share price reaching SR97.10.
Bena Steel Industries Co. and Advance International Company for Communication and Information Technology were also among the worst performers with a 7.16 percent and 6.25 percent decline respectively.
On the announcement front, Saudi Arabia’s Capital Market Authority has approved Saudi Fisheries Co.’s request to reduce its capital from SR400 million to SR66.99 million, representing a reduction in the number of shares from 40 million to 6.7 million. The move aims to restructure the company’s capital base.
Saudi Fisheries Co.’s share price closed Wednesday with a 0.44 percent drop to settle at SR22.56.
Additionally, the CMA has approved Makkah Construction and Development Co.’s request to increase its capital from SR1.65 billion to SR2 billion.
The capital increase will be achieved by issuing 0.213 bonus shares for every existing share owned by registered shareholders, with a total of 35.18 million new shares to be issued.
The increase will be funded by transferring SR351.84 million from the company’s statutory reserve account to its capital.
Makkah Construction and Development Co.’s share price dropped 1.46 percent on Wednesday to settle at SR107.80.
In a separate announcement, Yaqeen Capital Co., acting as the financial advisor and lead manager for ITMAM Consulting Co., disclosed the firm’s intention to offer 3 million ordinary shares, representing 14.29 percent of its total capital, in an initial public offering.
The company plans to list its shares on the parallel market, subject to regulatory approval.
Cairo-Jeddah named second-busiest international air route for 2024
- Airline capacity on this route has surged by 14% compared to 2023, and has increased by 62% compared to 2019
- Expansion contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade
RIYADH: The Cairo-Jeddah air route has been ranked as the second-busiest international flight corridor in 2024, with approximately 5.5 million available seats, according to a new report.
The analysis, conducted by global travel data provider the Official Airline Guide, revealed that airline capacity on this route has surged by 14 percent compared to 2023, and has increased by 62 percent compared to 2019.
This growth is aligned with Saudi Arabia’s broader efforts to enhance its aviation sector, which is a key part of its Vision 2030 strategy.
These efforts include strengthening the country’s airlines, logistics services, cargo infrastructure, and other support industries to boost tourism and make the Kingdom a global aviation hub.
The expansion also contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade.
John Grant, chief analyst at OAG, attributed the rapid growth of the Cairo-Jeddah route to significant investments under Vision 2030, as well as longstanding ties between the two cities, which have historically seen high volumes of worker traffic and, more recently, increased business activity in consultancy and services.
He also noted that the easing of travel restrictions for entry into Saudi Arabia and the rise of low-cost carriers have contributed to the route’s growth.
The report also highlights a 19.1 percent capacity gap between the second and first-place routes. Hong Kong-Taipei holds the title of the world’s busiest international route in 2024, with 6.8 million available seats.
The Seoul Incheon-Tokyo Narita route ranks third with 5.4 million seats, just 58,818 seats behind Cairo-Jeddah, while Kuala Lumpur-Singapore Changi follows closely in fourth place with 5.4 million seats, only 28,293 behind third.
The Bangkok-Hong Kong route has made a significant leap into the Top 10 Busiest International Routes for 2024, ranking seventh with 4.2 million seats. This marks a 29 percent increase in capacity compared to 2023, although it still lags 13 percent behind the 2019 levels.
Asia dominates the top 10, with seven of the busiest routes located in the region. Other notable routes include New York JFK to London Heathrow and two Middle Eastern routes: Cairo-Jeddah and Dubai-Riyadh. The Jeddah-Riyadh route has also seen impressive growth, with capacity increasing by 10 percent in 2024 compared to the previous year.
These trends highlight the growing demand for air travel in and out of the Middle East, particularly in Saudi Arabia, which continues to make strides toward achieving its ambitious goals under Vision 2030.
King Fahd Airport sees 15% growth in passenger traffic, reaching 12m in 2024
- Airport set new daily records for the number of passengers, surpassing 50,000 in a single day
- Saudi Arabia’s civil aviation sector experienced a 17% annual surge to 62 million passengers in the first half of 2024
JEDDAH: Saudi Arabia’s King Fahd International Airport reported a 15 percent annual increase in passenger traffic in 2024, reaching 12 million, according to official statistics.
Dammam Airports Co, the managing and developing firm of the facility, reported that the Eastern Province-based airport achieved this milestone between January and mid-December, adding that it handled over 99,000 flights during the same period, reflecting a 5 percent growth compared to 2023.
The airport also set new daily records for the number of passengers, surpassing 50,000 in a single day, a new peak for daily traffic since it started operations.
On June 13, the airport reached a record daily air traffic volume, with 374 flights operated on the day, according to the report by the Saudi Press Agency.
This aligns with the Kingdom’s aviation goals, including tripling annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from its 29 airports, and increasing air freight capacity to 4.5 million tons of cargo annually by 2030.
Breaking the 12 million passengers record is part of the series of successes accomplished by the KFIA’s operating and managing company, aligning with the goals of the National Transport and Logistics Strategy, represented by the National Aviation Strategy.
Saudi Arabia’s civil aviation sector experienced a 17 percent annual surge to 62 million passengers in the first half of 2024, amidst increasing domestic and international travel demand.
According to official statements the General Authority of Civil Aviation issued in July, the period also saw 446,000 flights, reflecting a 12 percent increase compared to 2023. Additionally, air cargo traffic through the Kingdom’s airports rose by 41 percent, reaching 606,000 tons during the same period.
King Khalid International Airport in Riyadh led the growth, handling 17.7 million passengers, a 21 percent year-on-year increase, and 132,000 flights, marking a 15 percent rise from the previous year.
Jeddah’s King Abdulaziz International Airport recorded 24 million passengers, a 16 percent increase, and 148,000 flights, showing a 13 percent rise compared to 2023.
