WASHINGTON: Iraq expects to sign an agreement with US oil company Chevron Corp. on Wednesday, Iraqi Foreign Minister Fuad Hussein said, without providing details.
“Regarding the signing of a memorandum of understanding or an agreement with Chevron, I believe that it will be signed today, yes,” Hussein told a joint news conference with US Secretary of State Mike Pompeo.
The Wall Street Journal reported on Monday that Chevron tentatively planned to sign a memorandum of understanding with Iraq to develop one of the country’s large oil fields, citing people familiar with the matter.
Chevron and the Iraqi government are discussing the potential execution of exploration work in Iraq’s southern Nassiriya oilfield, which is estimated to hold about 4.4 billion barrels of crude, the newspaper report said.
On Monday, Chevron said it does not comment on market speculation or matters of a commercial nature.
Iraq, Chevron seen signing deal Wednesday - Iraqi foreign minister
https://arab.news/vrdfr
Iraq, Chevron seen signing deal Wednesday - Iraqi foreign minister
- One of Iraq's largest oilfields, Nassiriya, could benefit from the deal
Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges
RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.
The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.
This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.
It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.
The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.
This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.
There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.
In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.
Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.
According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.
Oil exports propel Oman’s trade surplus to $19.4bn
- Saudi Arabia ranked second for Omani non-oil exports at 849 million rials
RIYADH: Oman’s trade surplus reached 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, largely driven by the oil and gas sector, according to a new report.
Preliminary data from the National Centre for Statistics and Information indicated that the increase was primarily due to higher export revenues, especially from oil and gas, despite a rise in imports.
The total value of merchandise exports in December amounted to 24.23 billion rials, reflecting a 6.8 percent increase compared to the same period in 2023, when exports were valued at 22.69 billion rials.
The growth was predominantly attributed to a rise in oil and gas exports, which reached 16.29 billion rials, an 18.4 percent increase from 13.76 billion rials in December 2023.
Meanwhile, Oman’s merchandise imports increased by 12.1 percent year on year, reaching 16.71 billion rials in December, up from 14.91 billion rials the previous year.
Despite the increase in imports, the trade balance remained positive, supported by the robust performance of the country’s energy exports.
Within Oman’s oil and gas exports, crude oil exports totaled 9.91 billion Omani rials by the end of December, marking a 0.8 percent increase from the same period in 2023.
Refined oil exports saw a significant surge of 185.5 percent, reaching 3.85 billion rials. However, liquefied natural gas exports declined by 1.9 percent to 2.53 billion rials.
Meanwhile, non-oil merchandise exports fell by 16.3 percent to 6.23 billion rials in December, down from 7.44 billion rials the previous year.
Among these, mineral products accounted for the highest value at 1.78 billion rials, but this figure represented a 36.8 percent year-on-year drop.
Exports of base metals and their products remained stable at 1.32 billion rials, increasing slightly by 0.1 percent, while plastic and rubber product exports grew by 13.3 percent to 996 million rials.
Chemical industry exports declined by 19.6 percent to 804 million rials, and exports of live animals and animal products fell 11 percent to 350 million rials. Other exports totaled 981 million rials, a decrease of 5 percent.
Re-exports from Oman increased by 14.9 percent to 1.71 billion rials by the end of December. Within this category, re-exports of food and beverage products saw a notable 30.6 percent rise to 184 million rials, while re-exports of mineral products climbed 21.3 percent to 120 million rials.
However, re-exports of transport equipment fell by 0.6 percent to 401 million rials, and electrical machinery and equipment declined by 5.4 percent to 376 million rials. Re-exports of live animals and related products also dropped by 10.1 percent to 97 million rials.
On the import side, mineral products accounted for the largest share, totaling 4.67 billion rials, an 11.3 percent increase from December 2023.
Imports of electrical machinery and equipment surged 28.9 percent to 2.93 billion rials, while base metals and their products rose 1 percent to 1.61 billion rials.
Imports of chemical products rose 3.1 percent to 1.52 billion rials, and transport equipment imports increased by 13.5 percent to 1.52 billion rials. Other imports totaled 4.47 billion rials.
The UAE remained Oman’s top trading partner for non-oil exports, with trade value rising 11 percent year-on-year to 1.05 billion rials.
The UAE also led in re-exports from Oman, which amounted to 569 million rials, and was the top source of imports into the country, totaling 3.94 billion rials.
Saudi Arabia ranked second for Omani non-oil exports at 849 million rials, followed by India at 659 million rials.
Iran was the second-largest destination for Omani re-exports at 359 million rials, with Kuwait in third at 117 million rials.
China was the second-largest exporter to Oman, with trade valued at 1.83 billion rials, followed by Kuwait at 1.69 billion rials.
In the oil sector, total crude oil exports until the end of January stood at approximately 25.82 million barrels, with an average price of $72.5 per barrel.
Oil exports accounted for 84.3 percent of total oil production, which reached 30.61 million barrels during the same period. However, crude oil exports declined by 1.5 percent compared to January 2024, when they totaled 26.2 million barrels.
Oil production also saw a 2 percent year-on-year drop, standing at 31.24 million barrels in January.
The country’s total crude oil production fell by 2.2 percent in January to 23.39 million barrels, while condensate production reached 7.22 million barrels. The daily average oil output for January stood at 987,500 barrels.
In the banking sector, total credit provided by conventional commercial banks in Oman grew by 4.8 percent by the end of December. Private sector credit rose by 3.6 percent, reaching 20.7 billion rials.
Investment by conventional banks in securities also saw a notable increase, rising 20.5 percent to approximately 6 billion rials.
This included a 7.3 percent rise in investments in government development bonds to 2 billion rials and a 30.3 percent surge in foreign securities investments to 2.3 billion rials.
On the liabilities side, total deposits at conventional commercial banks increased by 6.2 percent to 25.1 billion rials by the end of December.
Government deposits rose by 5.3 percent to 5.3 billion rials, while public sector institution deposits grew by 11 percent to 2.5 billion rials. Private sector deposits, which made up 65.3 percent of total deposits, climbed 4.9 percent to 16.4 billion rials.
Saudi Arabia’s top body reviews economic performance, global outlook
JEDDAH: Saudi Arabia’s Council of Economic and Development Affairs hosted a virtual meeting to discuss financial performance and global developments, focusing on improving public sector contributions.
Operating under the Council of Ministers, CEDA oversees the governance framework, mechanisms, and policies essential to achieving Saudi Vision 2030. It addresses key domestic sectors, including health, labor, education, and Islamic affairs.
Held on March 15, the meeting covered a range of reports and topics, including the quarterly economic report from the Ministry of Economy and Planning.
According to the Saudi Press Agency, the report is “an in-depth analysis of the drivers and challenges affecting national economic growth across various sectors, along with proposed solutions.” It also highlighted Saudi Arabia’s strong economic performance in the third and fourth quarters of 2024, supported by projections from both local and international institutions.
CEDA also reviewed the Ministry of Finance’s fourth-quarter budget performance report for the 2024 fiscal year. The report noted that total expenditures reached SR1.37 trillion ($365.3 billion), reflecting a 6 percent annual rise, while the budget deficit widened to SR115.63 billion — a 43 percent increase from 2023, in line with previous forecasts.
The report outlined revenue, expenditure, and public debt indicators, noting a “21 percent increase in non-oil revenues, reaching SR132 billion, compared to SR109 billion during the same period of the previous year,” SPA said.
It credited government reforms and diversification efforts for driving growth, aligning with Saudi Vision 2030’s aim to expand non-oil sectors.
The report also underscored the Kingdom’s “continued support for development and service projects, as well as its commitment to enhancing social welfare and protection systems,” according to SPA.
The meeting further discussed Saudi Arabia’s upcoming participation in the 2025 World Economic Forum in Davos, emphasizing the Kingdom’s rising role among the world’s leading economies.
CEDA reviewed additional presentations on policies and administrative frameworks, including the Supreme National Investment Committee’s guiding principles for green investments and the Ministry of Media’s organizational structure and regulations.
The council also examined data from the General Authority for Statistics, covering import substitution indicators, the Consumer Price Index, and the Wholesale Price Index. It further reviewed the 2024 Monthly Foreign Trade Report.
The meeting concluded with CEDA issuing decisions and recommendations on the discussed matters.
Hail region unveils 23 investment opportunities to drive economic growth
RIYADH: Saudi Arabia’s Hail region has launched 23 new investment opportunities for the first quarter of 2025, aiming to accelerate economic growth, boost private sector participation, and enhance service quality.
The Municipality of Hail unveiled various projects spanning residential, commercial, and service sectors. Among them are 11 sites earmarked for mixed-use residential and commercial developments, the Saudi Press Agency reported.
The plans include vehicle service centers, cafes, and commercial kiosks. They also feature a park, an educational facility, and a retail shop alongside an educational complex and a fuel station.
The initiative aligns with the Kingdom’s Vision 2030 strategy, designed to diversify the economy, empower the private sector, and improve urban living standards.
“These investment opportunities aim to meet the needs of the local community by providing advanced services that contribute to enhancing economic growth and attracting investments,” said Saud bin Fahd Al-Ali, assistant secretary for media and institutional communication at the Municipality of Hail, as quoted by SPA.
He emphasized the municipality’s commitment to helping investors, stating that they are providing “all necessary facilities and support to investors, with the aim of enhancing the investment environment in the region and achieving comprehensive and sustainable economic development” as part of efforts to align with the Kingdom’s Vision 2030.
He also encouraged local and international investors to visit the “Foras” platform to explore project details and learn how to apply.
The push comes as Hail emerges as a growing hub for business and tourism. The region welcomed more than 1.1 million visitors in the first half of 2024, including 170,000 international tourists. According to the Ministry of Tourism, over 907,000 of those arrivals were domestic travelers.
The surge in tourism has fueled demand for hospitality services, with licensed accommodations in Hail now offering around 2,600 rooms. This expansion supports the Kingdom’s broader efforts to strengthen tourism infrastructure and attract global visitors.
Hail is also set to become the fifth destination developed by the Saudi Tourism Investment Co., known as ASFAR — a Public Investment Fund-owned entity tasked with advancing tourism and leisure projects across the Kingdom.
Prospective investors can visit the “Foras” platform for application procedures, underscoring the municipality’s push to cultivate new business ventures and drive long-term regional development.
Global trade hits record $33tn in 2024, growing by 3.7%: UNCTAD
RIYADH: Global trade reached a record high of $33 trillion in 2024, marking a 3.7 percent increase from the previous year, driven by an uptick in the services sector.
According to the latest Global Trade Update from the UN Conference on Trade and Development, services drove growth, rising 9 percent for the year and adding $700 billion — nearly 60 percent of total exchange expansion.
Meanwhile, trade in goods grew 2 percent, contributing $500 billion.
“This positive momentum is expected to continue into Q1 (first quarter) 2025, building on a global trade value of nearly $33 trillion in 2024,” the report said.
UNCTAD’s analysis highlighted a continued shift in global trade dynamics, with developing countries — particularly China and India — outperforming their developed counterparts.
While many advanced economies faced exchange contractions, emerging markets sustained momentum, bolstered by strong exports and domestic demand.
China’s trade surplus expanded significantly in 2024, fueled by robust exports. Meanwhile, the US trade deficit widened, reflecting its growing reliance on imports. South-South trade, involving exchanges between developing economies, remained a key driver of global trade growth.
Services trade booms
Services trade outpaced goods trade in 2024, increasing by 9 percent and contributing approximately $700 billion to global exchange expansion. This sector’s resilience contrasts with goods trade, which rose by just 2 percent, adding around $500 billion. The fourth quarter saw services trade maintain strong momentum, while goods trade growth decelerated.
Tariffs and trade barriers
Despite overall growth, UNCTAD warns of significant trade barriers. High tariffs continue to hinder market access for developing countries, particularly in agriculture and manufacturing.
“High import tariffs raise costs for businesses and consumers, potentially curbing growth and competitiveness,” the report said.
It added that tariff escalation — where higher duties are imposed on processed goods than raw materials — remains a major obstacle to industrialization in developing economies.
Agricultural exports from developing countries still face steep import duties, averaging nearly 20 percent under most-favored-nation treatment. Meanwhile, textile and apparel exports continue to be subjected to some of the highest tariff rates, limiting competitiveness.
Uncertainty clouds 2025
Looking ahead, UNCTAD warned that mounting geopolitical tensions, trade disputes, and protectionist policies could disrupt global exchange in 2025. The report identified several risk factors, including:
Shifts in trade policy: Increasing protectionist measures, such as new tariffs targeting specific industries, may reshape global supply chains.
Ongoing trade tensions: Major economies, including the US and China, continue to impose retaliatory tariffs, affecting global trade flows.
Subsidies and industrial policies: Governments are prioritizing national industries, particularly green energy and critical minerals, which could impact international trade relations.
Economic slowdown risks: Indicators such as declining demand for container shipping suggest potential trade contraction in the coming quarters.
However, the analysis also noted potential tailwinds, including China’s planned economic stimulus and the expected easing of global inflation, which could support trade expansion.
Sectoral trade trends
Trade growth varied significantly across sectors in 2024. Office equipment and pharmaceuticals saw above-average growth, while the energy sector faced a sharp decline. In the third quarter, agri-food, communication equipment, and transport surged, whereas apparel and extractive industries weakened.
Global trade imbalances
The report highlighted growing trade imbalances, with the US maintaining the world’s largest trade deficit and China recording the highest surplus. The EU, which ran a deficit in previous years, returned to surplus in 2024, aided by shifts in energy trade.
Bilateral trade imbalances, particularly between the US and China, remain significant, contributing to global economic uncertainty.
As global trade enters 2025, policymakers face the challenge of balancing growth with rising protectionism. UNCTAD emphasized the importance of multilateral cooperation and strategic trade policies to sustain momentum and navigate emerging risks.
