Australian envoy to Saudi Arabia hails successful presidency of G20 amid pandemic

Australia’s battle with the coronavirus pandemic took a step closer to ending after the New South Wales state relaxed health restrictions. (AFP)
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Updated 08 November 2020
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Australian envoy to Saudi Arabia hails successful presidency of G20 amid pandemic

  • Balancing health measures and economic growth will be focus of November’s Riyadh Summit

LONDON: Australian Ambassador to Saudi Arabia Ridwaan Jadwat congratulated Saudi Arabia on its presidency of the G20 during the coronavirus pandemic.

“It’s been a very difficult year for everybody. We congratulate not only the authorities but all the frontline health care workers who have been doing their very best to keep people safe,” Jadwat told Arab News.

Jadwat remarked on how the meetings scheduled between working groups, engagement groups and ministers hardly skipped a beat this year and praised the decision of the Saudi presidency to continue the G20 meetings virtually.

“The decision for leaders to meet virtually in November was appropriate, given the logistical and health challenges in the current context,” he said. “We hope that the leaders will have another opportunity in the future to visit the Kingdom.

“The G20 is an institution that comes into its own when most needed; it is more a rough-weather friend than a fair-weather one.”

Under the Saudi Arabian presidency, the G20 is bringing members together to address response and recovery measures to COVID-19. “Leaders met earlier this year in March to discuss the crisis at the extraordinary G20 leaders’ summit … and COVID-19 continues to be the key focus leading into the summit in November.”

Jadwat stressed the importance of strong multilateral institutions, such as the G20, in a time of unprecedented global challenges.

“They’re vital to international stability. It is more important now than ever for leaders to have open lines of communication. And this is doubly true for the G20, which brings together the world’s biggest economies, given the significant economic impact of the pandemic.”

Jadwat said that the G20 has a key role in creating the conditions for future prosperity.

“Australia is focused on job creation through supply-side reforms and on restoring demand and enabling a private sector-led recovery, which is very important. The G20 has a key role in promoting the importance of the multilateral trading system and in providing political guidance and support for World Trade Organization reform.”

In commenting on the summit’s theme for this year, “Realizing Opportunities of the 21st Century For All,” the ambassador said that it has taken on a new meaning during the pandemic.

“Saving lives has to be our top priority. Australia is committed to equitable access to a vaccine once it’s developed and is actively engaged in international efforts to this end, through the Gavi-led COVAX facility. We need to support the health capacity of all vulnerable and low-income countries across regions, including the small states in our region closer to Australia,” he said.




Australian Ambassador to Saudi Arabia Ridwaan Jadwat. (Supplied)

Jadwat emphasized prioritizing economic growth as part of the G20 agenda while also ensuring that the global financial safety net is adequate, well-resourced, and responsive, adding that women’s participation will be vital to an inclusive and sustainable economic recovery.

“This is a key priority for Australia across the G20. We want to hold the pandemic-induced backsliding and resume progress toward the Brisbane 25 by 25 goal,” he said, referring to the 2014 G20 initiative to reduce the gender gap in labor force participation by 25 percent by 2025.

Jadwat applauded the Women 20 (W20) engagement group for hosting a successful summit, which he said will feed strong outcomes into the leaders’ meeting.

“I had the great pleasure of meeting with W20 Sherpa Salma Al-Rashid and Chair Dr. Thoraya Obaid. We are very happy with the work they have been doing over the course of this year, including working with W20 representatives from Australia.”

Since Jadwat first assumed his position as ambassador to Saudi Arabia, strengthening relations between Australia and the Kingdom has been a priority. 

FASTFACT

Australia’s consumer price index for 2020 rose 1.6% this quarter.

“It’s been an important mission for me to help build bridges between our two peoples. Australia’s relations with Saudi Arabia have been consistently friendly and constructive, but we can do even more together.”

Jadwat said that although the two countries are relatively far away from each other geographically, both economies have strong complementarities. With similarly sized populations, large desert areas, and abundant natural resources, Jadwat pointed out that the cornerstone of Australia’s relations with Saudi Arabia is strong trade-economic ties.

“We have natural strengths in the energy sector, but we are not competitors. We both value technology and finding innovative ways to solve problems. We have much to offer Saudi Arabia in education mining, agriculture and tourism, especially as it diversifies its economy.”

Jadwat highlighted that a goal of Vision 2030 is to develop the tourism sector and that Australia has much experience in managing sustainable, environmentally friendly tourism projects, like in the Great Barrier Reef and other places throughout the country.

“I think we have a lot to offer in terms of our expertise in tourism and environmental management. Australia is a mining superpower that has helped make us the 13th largest economy in the world. I know there are a lot of unexplored natural resources in Saudi Arabia. So in terms of engineering and mineral exploration, Australia has a lot to offer.

“One of the things that I’m most proud of is the education relationship and the number of alumni from Australian universities who are here in Saudi Arabia. We also have thousands of Saudi students who continue to study every year in Australia. I think that’s a testament to the relationship between the two societies. I feel that those Saudi students who come back to the Kingdom become ambassadors for Australia as well,” he said.

 


Egypt’s non-oil sector sees minor setback in March, Lebanon’s PMI declines: S&P Global 

Updated 6 sec ago
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Egypt’s non-oil sector sees minor setback in March, Lebanon’s PMI declines: S&P Global 

RIYADH: Egypt’s non-oil private sector saw a slight decline in business conditions in March, with the country’s Purchasing Managers’ Index easing to 49.2 from 50.1 in February, according to S&P Global. 

In Lebanon, the PMI slipped to a five-month low of 47.6, reflecting softer economic activity amid regional uncertainty and subdued tourism. 

A PMI reading above 50 indicates expansion, while a figure below that signals contraction.

The trends in Egypt and Lebanon contrast with broader regional performance, where Saudi Arabia, the UAE, and Kuwait maintained expansionary momentum in February, with PMIs of 58.4, 55, and 51.6, respectively. 

Egypt’s non-oil sector slips in March 

Weakened demand drove Egypt’s non-oil private sector into contraction territory, prompting firms to cut back on activity and purchases. 

David Owen, senior economist at S&P Global Market Intelligence, said: “The non-oil sector suffered a minor setback in March, with a decline in business conditions undermining the more expansionary tone set in the first two months of the year.” 

However, he noted that Egypt’s PMI remained above its long-run trend, suggesting businesses were still in a relatively stable position. 

The latest PMI survey indicated a significant easing of inflationary pressures, with input costs rising marginally — the slowest pace in nearly five years. 

S&P Global also noted that firms reported only a slight increase in selling prices, signaling a more stable pricing environment. 

“Firms will be particularly buoyed by the improved picture for inflation. Although headline inflation plummeted from 24 percent to 12.8 percent in February mostly due to base effects, a softening of input cost increases according to the March PMI data suggests there could be further reductions going forward,” said Owen. 

He added: “Part of this softening was linked to a weaker US dollar, which remains greatly influenced by the evolving state of US trade policy.” 

According to the report, non-oil companies in Egypt saw a drop in business activity for the first time this year, primarily due to weaker new order intakes. 

S&P Global also highlighted that both domestic and international demand remained subdued in March, prompting firms to cut operations and spending. 

Surveyed companies reported a reduction in headcounts as weak demand and limited capacity pressures dampened workforce needs. 

On a positive note, the construction sector performed well in March, with survey data showing robust growth in both output and new work. 

However, business activity in the manufacturing and wholesale and retail sectors remained subdued. 

Looking ahead, companies expressed concerns about the economic outlook, with output expectations falling to one of the lowest levels on record. 

“The outlook for the local economy is therefore somewhat unclear, which is reflected in a diminishing level of business expectations,” added Owen. 

Egypt is implementing a series of reforms under its the International Monetary Fund-backed economic program. 

In March, it secured a $1.2 billion disbursement from the IMF, bringing total funding under its economic reform program to $3.2 billion. The IMF also approved a $1.3 billion facility for climate-related reforms. 

While the country’s gross domestic product growth rebounded to 3.5 percent in early 2024-25 and inflation has eased, fiscal challenges remain. A $6 billion drop in Suez Canal receipts widened the current account deficit to 5.4 percent of GDP in 2023-24, despite spending controls helping achieve a 2.5 percent fiscal surplus. 

Lebanon’s PMI falls to five-month low 

A separate S&P Global report, published in association with BLOMINVEST Bank, revealed that Lebanon’s PMI declined to 47.6 in March, down from 50.5 in February and 50.6 in January. 

The drop was attributed to weaker output and new orders, driven by subdued tourism and ongoing regional instability. 

Surveyed companies reported that restrained client purchasing power and consumer hesitancy toward non-essential spending led to a contraction in new order intakes at the end of the first quarter. 

“The BLOM Lebanon PMI for March 2025 fell to a five-month low at 47.6, indicating a change of course in the economy toward instability,” said Ali Bolbol, chief economist and head of research at BLOMINVEST Bank. 

He added: “The spillover effects from clashes on the Syrian coast, to renewed escalation between Israel and Hezbollah, to delays in the disarming of the latter have all left their de-stabilizing imprint on the Lebanese private sector.” 

According to the report, Lebanese firms saw a decline in foreign sales, with challenging shipping conditions, high export costs, and regional instability acting as headwinds for international trade. 

S&P Global noted that the drop in new business intakes helped firms clear backlogs of work for the first time this year. 

Signs of spare capacity also prompted businesses to trim their workforce, though job cuts remained mild, affecting just 1 percent of surveyed firms. 

Regarding purchasing activity, Lebanese private sector firms exercised more caution than in February, with buying volumes largely unchanged. However, surveyed companies reported faster shipping times for newly purchased items. 

Despite the slowdown, business sentiment remained optimistic, with growth expectations reaching their highest level since the survey began in May 2013. 

“The only worthwhile news from the March PMI results is that expectations of a better outlook are still positive, though at a more subdued level,” concluded Bolbol. 

Last month, the IMF welcomed Lebanon’s request for support in tackling its economic crisis. 

After more than two years without a president, Lebanon elected a new head of state in January and formed a government led by Prime Minister Nawaf Salam. In February, the IMF signaled openness to a new loan agreement following talks with the finance minister. 

The previous caretaker administration failed to implement the reforms required for an IMF bailout to rescue the collapsed economy. 


Saudi Arabia has highest number of Arab billionaires: Forbes

Updated 31 min 36 sec ago
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Saudi Arabia has highest number of Arab billionaires: Forbes

RIYADH: Saudi Arabia has solidified its position as the leading hub for billionaires in the Arab world with 15 making it onto the Forbes global 2025 list — the highest in the region. 

According to the Forbes World’s Billionaires ranking, the wealth of the Saudis featured totaled $55.8 billion, representing 43.4 percent of the combined net worth of all Arab billionaires.

Leading the Saudi — and Arab — billionaire rankings is Prince Alwaleed bin Talal, with a net worth of $16.5 billion. 

In the Middle East and North Africa region, the number of Arab billionaires has risen to 38, spread across nine countries, with a combined fortune of $128.4 billion— more than double last year’s total of $53.7 billion.

Globally, the billionaire population has surpassed 3,000 for the first time, reaching 3,028 individuals— an increase of 247 from 2024. Their total net worth has also climbed to $16.1 trillion, up nearly $2 trillion from the previous year. The US remains the leader with 902 billionaires, followed by China and India.

“It’s another record-breaking year for the world’s richest people, despite financial uncertainty for many and geopolitical tensions on the rise,” said Chase Peterson-Withorn, Forbes senior editor, wealth, adding: “And, from Elon Musk to Howard Lutnick and the other billionaires taking over the U.S. government, they’re growing more and more powerful.”

Saudi resurgence driven by new wealth

The Kingdom’s strong showing comes after a surge in initial public offerings on the Saudi Exchange post-COVID-19, propelling 14 new billionaires onto the list.

Other prominent Saudi figures include healthcare magnate Sulaiman Al-Habib, with a fortune of $10.9 billion, and diversified business leaders Emad and Essam Al-Muhaidib, whose wealth stands at $3.8 billion and $3.6 billion, respectively.

The UAE followed with five billionaires holding a combined $24.3 billion, including real estate tycoon Hussain Sajwani at $10.2 billion and newcomers Hussain Binghatti Aljbori and Hussain Mohamed Alabbar.

Egypt also has five billionaires, led by construction and investment mogul Nassef Sawiris, with a net worth of $9.6 billion.

Top Arab billionaires reflect diverse industries

The wealthiest Arabs span industries from real estate and healthcare to telecom and investments.

Among the top names are the UAE’s Abdulla Al-Futtaim, with $4.7 billion in the automotive industry, and Qatar’s Sheikh Hamad bin Jassim Al-Thani, with $3.9 billion in the investment sector.

This year’s rankings underscore the Kingdom’s growing economic influence, with its billionaire count outpacing other Arab nations. The rise in regional wealth highlights the expanding opportunities in Gulf markets, particularly in real estate, healthcare, and finance.

Elon Musk, pictured here with a Cheesehead hat as he speaks during a town hall in Green Bay, Wisconsin, is the world’s richest person. AFP

Elon Musk retained his position as the world’s richest person with a net worth of $342 billion, fueled by his ventures in electric vehicles, space exploration, and artificial intelligence. 

Close behind is Meta CEO Mark Zuckerberg at $216 billion, followed by Amazon founder Jeff Bezos at $215 billion, as technology giants continue to dominate the upper echelons of wealth. 

Oracle co-founder Larry Ellison ranks fourth with $192 billion, while Bernard Arnault, the French luxury magnate behind LVMH, rounds out the top five with $178 billion. 

These five individuals represent a combined net worth of over $1.1 trillion, underscoring the influence of tech innovation and global consumer markets in shaping modern fortunes.


PIF’s Lucid’s quarterly deliveries rise, Amazon-backed Rivian’s fall sharply

Updated 03 April 2025
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PIF’s Lucid’s quarterly deliveries rise, Amazon-backed Rivian’s fall sharply

BENGALURU: Electric automaker Lucid posted a 58 percent jump in first-quarter deliveries on Wednesday as it lowered prices of its vehicles, while peer Rivian Automotive reported a 36 percent decline.

The Public Investment Fund-backed Lucid has also offered incentives including cheaper financing to woo customers away from less expensive hybrid vehicles amid high interest rates.

However, the company estimated revenue between $232 million and $236 million for the first quarter ended March 31, below Wall Street estimates of $256.3 million, according to LSEG-compiled data.

Shares of Lucid and Rivian were down around 5 percent in extended trading.

Lucid delivered 3,109 vehicles during the first quarter, compared with 1,967 in the same period last year. It produced 2,212 vehicles during the quarter ended March 31, up 28 percent, with more than 600 additional vehicles in transit to the Gulf country for final assembly.

Rivian has been battling tough demand as consumers opt for cheaper hybrid and gas-powered vehicles in an uncertain economic and political environment.

“I would say the sector at the moment is out of favor. Over the medium to long term, EVs are still inevitable, and so it’s just going to take some time for these companies to continue to ramp up,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.

Rivian CFO Claire McDonough had said in February vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles.

Demand could be further pressured as US President Donald Trump’s tariff policies are expected to accelerate inflation and increase prices of automobiles, making consumers wary of committing to big purchases.

Rivian CEO RJ Scaringe had said earlier this year the company expects higher costs from tariffs on Mexico and Canada as it has a supply chain footprint in these countries.

The company delivered 8,640 vehicles in the quarter ended March 31, down from 13,588 a year earlier. But the deliveries exceeded analysts’ estimate of 8,200, according to Visible Alpha.

Rivian produced 14,611 vehicles in the first quarter, compared with 13,980 a year ago. It reaffirmed its annual deliveries forecast.

Lucid and Rivian will report their first-quarter results on May 6.

In January, Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program, which grants the firm the right to use the “Saudi Made” label on its products.

Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023. 

Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and can currently assemble 5,000 Lucid vehicles annually during its first phase.

Once fully operational, it is expected to produce up to 155,000 electric cars per year. 


Oil Updates — crude slumps as Trump’s higher-than-expected tariffs expected to crimp demand

Updated 03 April 2025
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Oil Updates — crude slumps as Trump’s higher-than-expected tariffs expected to crimp demand

  • Brent, WTI sink as much as 3 percent, biggest percentage drop in a month
  • Trump to impose 10 percent minimum tariff on most import goods
  • Imports of oil, gas, refined products exempted from new tariffs

SINGAPORE: Oil prices fell by as much as 3 percent on Thursday after US President Donald Trump announced sweeping new tariffs that investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.

Brent futures were down $1.97, or 2.63 percent, to $72.98 a barrel by 9:35 a.m. Saudi time after dropping by as much as 3.2 percent earlier, the biggest daily percentage decline since March 5.

US West Texas Intermediate crude futures were down $2.01, or 2.80 percent, to $69.70 after slipping by as much as 3.4 percent earlier.

Trump on Wednesday unveiled a 10 percent minimum tariff on most goods imported to the US, the world’s biggest oil consumer, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall US and worldwide economic growth.

“The US tariff announcement clearly caught markets off guard. Pre-announcement speculation suggested a flat 15-20 percent tariff, but the final decision was more hawkish,” Yeap Jun Rong, market strategist at IG, said in an email.

“For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs,” he added.

Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.

The tariffs sent markets reeling on Thursday, with Japan’s Nikkei plunging to an eight-month low, China’s yuan dropped to its lowest levels in seven weeks and stock markets slumped in early Asia trade.

“We know it will be negative for trade, economic growth and thus oil demand growth. But we don’t know how bad it will be as the effects come a little bit down the road,” said Bjarne Schieldrop, chief commodities analyst at SEB.

On Wednesday, UBS analysts cut their oil forecasts by $3 per barrel over 2025-2026 to $72 per barrel, citing weaker fundamentals.

Traders and analysts now expect more price volatility in the near term, as the tariffs may change as countries try to negotiate lower rates or enact retaliatory levies.

Market participants are also waiting for clarity on OPEC+ production outlook as the group is meeting on Thursday.

The group is set to proceed with its schedule to raise oil output by 135,000 barrels per day in May, and discuss how to convince Kazakhstan to stop exceeding its output quota and plans to compensate for overproduction, sources told Reuters.

Reinforcing the bearish sentiment, the Energy Information Administration data on Wednesday showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts’ forecasts for a decline of 2.1 million barrels.

Inventories gained amid a surge in imports from Canada, which had expected to be hit with tariffs on its crude shipments to the US

The EIA data also showed gasoline demand was lower last week and refinery runs were lower at a time of year that plants should be producing more fuel ahead of the summer driving season. 


OPEC+ to meet over excess Kazakh oil output

Updated 02 April 2025
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OPEC+ to meet over excess Kazakh oil output

  • OPEC+ members are scheduled to raise oil output by 135,000 barrels per day in May

LONDON: Eight members of OPEC+, the oil producers group led by Saudi Arabia and Russia, will meet on Thursday to discuss how to convince Kazakhstan to stop exceeding its output quota and how it can compensate for overproduction.

Record Kazakh output has angered several other members of the group. The meeting “is just to make the new Kazakhstan minister aware of the importance of meeting his required production and compensating for the surplus,” one delegate said. Erlan Akkenzhenov was appointed Energy Minister last month.

OPEC+ members are scheduled to raise oil output by 135,000 barrels per day in May, and the group is expected to proceed with this plan. The May increase is the next increment of a plan agreed by Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Algeria, Kazakhstan and Oman to gradually unwind their most recent output cut of 2.2 million barrels a day, which came into effect this month.
OPEC+ also has 3.65 million barrels a day of other output cuts in place until the end of next year. This week Russia ordered the Black Sea terminal handling Kazakhstan’s oil exports to close two of its three moorings, a move which is widely expected to slash the country’s production as a result.