NEW DELHI: The Indian government said on Twitter it has received multiple bids for its stake in state-run carrier Air India, the auction for which ended on Monday evening.
“Multiple expressions of interest have been received for strategic disinvestment of Air India. The transaction will now move to the second stage,” according to a tweet from the secretary, Department of Investment and Public Asset Management.
Tata Sons, India’s autos-to-steel conglomerate, is expected to have submitted an initial bid for the loss-making airline, sources aware of the matter said.
A Tata spokesperson declined to comment.
A group of more than 200 Air India employees have also submitted an initial bid for the carrier in partnership with a private financier, Business Standard newspaper reported earlier on Monday.
Prime Minister Narendra Modi’s government in January renewed its push to sell its entire interest in the loss-making airline, which has been kept aloft by a bailout since 2012.
An effort to auction a majority stake almost two years ago drew no bids, forcing the government to ease terms. It has also extended the deadline multiple times this year due to COVID-19 and further eased the terms to attract bidders.
The airline industry around the world has been hammered by a slump in travel due to restrictions aimed at containing the coronavirus.
Tata already operates two airlines in India – full-service carrier Vistara, which is in partnership with Singapore Airlines, and budget airline AirAsia India along with Malaysia’s AirAsia Group.
A successful bidder would win control of Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.
It would also get 100 percent of the low-cost arm Air India Express and 50 percent of AISATS, which provides cargo and ground handling services at major Indian airports, the bid document showed.
India receives multiple initial bids for state-run carrier Air India
https://arab.news/veg8p
India receives multiple initial bids for state-run carrier Air India
- Prime Minister Narendra Modi’s government in January renewed its push to sell its entire interest in the loss-making airline
- The airline industry around the world has been hammered by a slump in travel
UAE’s money supply M1 increases 1.5% to $247.7bn
RIYADH: The UAE’s M1 money supply saw a monthly rise of 1.5 percent at the end of October, reaching 909.9 billion dirhams ($247.7 billion), according to the latest figures released by the country’s central bank.
The summary report revealed the rise was primarily driven by a 14.9 billion dirhams increase in monetary deposits, which offset a 1.3 billion dirhams decline in currency circulating outside banks.
M1 supply includes liquid money that can be used for spending or transactions. It consists of cash, including coins and paper bills, and funds in checking accounts that are readily accessible for daily transactions.
The UAE’s M2 money supply, which includes M1 and quasi-monetary deposits, rose by 0.9 percent, reaching 2.27 trillion dirhams at the end of October, up from 2.25 trillion dirhams in September.
This growth was driven by an increase in M1 and a 7.5 billion dirhams rise in quasi-monetary deposits.
The country’s M3 money supply, which encompasses M2 and government deposits, grew by 1.3 percent, reaching 2.75 trillion dirhams at the end of October, compared to 2.72 trillion dirhams in September.
The report highlighted that the increase was largely attributed to the expansion of M2 and a 13.8 billion dirhams rise in government deposits.
The M3 money supply is calculated by adding government deposits held at banks operating in the UAE and the Central Bank to the M2 money supply.
The UAE’s monetary base saw a slight decline of 0.1 percent, falling to 743 billion dirhams at the end of October from 743.5 billion dirhams in September.
The decrease was primarily driven by a 11.4 percent drop in banks’ and other financial corporations’ current accounts and overnight deposits with the central bank.
This decline overshadowed increases in currency issuance by 0.8 percent, reserve accounts by 0.05 percent, and monetary bills and Islamic certificates of deposit by 6.2 percent.
The UAE’s gross banking assets, including bankers’ acceptances, grew by 1.3 percent, reaching 4.46 trillion dirhams at the end of October, up from 4.4 trillion dirhams in September.
The UAE’s gross credit rose by 0.6 percent, reaching 2.17 trillion dirhams at the end of October, compared to 2.16 trillion dirhams in September.
This increase was driven by a 0.6 percent rise in domestic credit and a 0.7 percent increase in foreign credit.
Domestic credit growth was driven by a 0.2 percent increase in lending to the government sector, a 3.0 percent rise in lending to the public sector, and a 0.1 percent increase in lending to the private sector, which outweighed a 1.8 percent decline in credit to non-banking financial institutions.
The country’s total bank deposits climbed by 1.5 percent, reaching 2.80 trillion dirhams at the end of October, up from 2.76 trillion dirhams in September.
This growth was driven by a 1.2 percent rise in resident deposits and a 4.7 percent increase in non-resident deposits.
The increase in resident deposits was attributed to higher deposits from the government sector by 2.3 percent, government-related entities by 3.6 percent, and the private sector by 1.1 percent, which offset a 13 percent decline in funds from non-banking financial institutions.
Kuwait’s CPI rises 2.5% in December amid inflationary pressures
- CPI saw 0.45% increase compared to November
- Some sectors witnessed significant price hikes, others remained stable or saw minor changes
RIYADH: Kuwait’s Consumer Price Index climbed 2.5 percent year on year in December, reaching 135.2, fueled by higher costs across miscellaneous goods and services, food and beverages, and clothing and footwear.
The CPI showed relatively marginal growth monthly, recording a 0.45 percent increase compared to November, reflecting inflationary pressures across various sectors, according to the country’s Central Statistical Bureau.
While the Gulf state’s annual inflation rate remains among the lowest globally, it outpaced several Gulf Cooperation Council countries, including Saudi Arabia, where the CPI rose by 1.9 percent year on year in December.
This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent increase from November, according to data from the Ministry of Commerce and Industry.
“This indicator is used as a measure of the changes in the purchasing power of the currency, to determine the interest rates and liquidity by the Central Bank of Kuwait, to support the adoption of appropriate economic decisions by the official bodies, and for the preparation of national accounts at constant prices,” the Central Statistical Bureau report said.
The prices of miscellaneous goods and services rose by 5.43 percent year-on-year in December, while the food and beverages category saw a 5 percent annual increase.
The cost of essential food items, including cereals, bread, meat, poultry, fish, and seafood, all experienced price hikes. Dairy products, oils, fats, and fresh produce also saw growth. Monthly inflation in this category was 0.39 percent compared to November.
Housing services, which include rent and maintenance, increased by 0.90 percent annually and 0.41 percent monthly, reflecting higher housing costs across the country.
Clothing and footwear prices witnessed a 5.13 percent annual increase and a 0.35 percent rise from November.
The health sector recorded a 4 percent annual rise in costs, with outpatient and hospital services driving the increase. Monthly, this category saw a 0.73 percent rise.
Transportation saw a 0.57 percent monthly increase, though its annual rate decreased by 1.47 percent, indicating a mixed trend in fuel and vehicle costs.
While some sectors witnessed significant price hikes, others remained stable or saw minor changes.
Cigarettes and tobacco prices remained stable monthly, increasing by a mere 0.07 percent annually. Communication costs also held steady, with an annual rise of just 0.88 percent.
Education costs rose slightly by 0.71 percent year-on-year. Recreation and culture recorded a 2.64 percent annual increase, with a 0.53 percent rise compared to November.
Restaurants and hotels saw a 2.03 percent annual increase, while miscellaneous goods and services took the lead among all non-food categories.
In a recent report, the International Monetary Fund highlighted Kuwait’s recovery in the non-oil sector amid easing inflation, but noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.
The central bank held interest rates at 4 percent in September, citing the continued stability and strength of the country’s monetary and financial conditions.
Portuguese firms Etermar and Microsaur to establish regional headquarters in Riyadh
RIYADH: Saudi Arabia’s regional headquarters program continues to attract foreign companies, with two firms from Portugal announcing plans to establish offices in the Kingdom.
During the recently concluded Saudi-Portuguese Business Council in Lisbon, Microsaur, a technology solutions and protection systems firm, and Etermar, a port operations specialist, announced that they will set up bases in the Kingdom, the Saudi Press Agency reported.
The report added that more than 260 companies from Portugal also expressed their readiness to enter the Saudi market during the gathering.
The Kingdom’s regional headquarters program provides benefits for international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities for companies, as well as discounts and support services.
Earlier this month, Saudi Arabia’s Investment Minister Khalid Al-Falih said that 571 international companies have opened their regional headquarters in the Kingdom — exceeding the original target of 500 firms by 2030.
As a part of the visit to Lisbon, the Saudi delegation met with key Portuguese officials, including the European nation’s ministers of economy, agriculture, and parliamentary affairs, as well as sports, infrastructure, and housing, and discussed ways to elevate economic cooperation between both nations.
The body also witnessed the signing of an agreement between the Saudi-Portuguese Business Council, the Arab-Portuguese Chamber of Commerce and Industry, and the Portuguese Business Council.
The agreement aims to strengthen economic relations and explore collaborations in multiple sectors, including aviation, tourism, sports investment, and media.
Additional sectors under the agreement include education, health care, agriculture, and fish farming.
During the visit, the delegation, led by the Chairman of the Council Alwaleed bin Khaled Al-Baltan, also met with Saudi Arabia’s Ambassador to Portugal Prince Saud bin Abdul Mohsen.
Established in August, the Saudi-Portuguese Business Council, endorsed by the General Authority for Foreign Trade, aims to elevate trade and economic relationships between both countries, as well as promote investment opportunities.
The formation of this Council also aligns with the Kingdom’s broader goal to attract more European firms into the nation’s market.
According to the General Authority for Statistics, Saudi Arabia’s exports to Portugal in the third quarter of 2024 amounted to SR373.4 million ($99.52 million).
GASTAT added that the Kingdom exported non-oil goods worth SR191.4 million in the third quarter to the European country, while importing shipments valued at SR253 million.
Oil Update — crude slips as investors eye Trump move on Russian export curbs
- New US sanctions hit near-term supply, limits ship availability
- Trump may relax Russia energy curbs for accord on Ukraine war, analysts say
SINGAPORE: Oil prices fell on Monday as expectations of US President-elect Donald Trump relaxing curbs on Russia’s energy sector in exchange for a deal to end the Ukraine war offset concern of supply disruption from harsher sanctions.
Brent crude futures dropped 16 cents, or 0.2 percent, to $80.63 a barrel by 7:53 a.m. Saudi time after closing down 0.62 percent in the previous session.
The more active US West Texas Intermediate crude April contract fell 6 cents to $77.33 a barrel. The front-month contract, which expires on Tuesday, was at $78.03 a barrel, up 15 cents, or 0.19 percent, after settling down 1.02 percent on Friday.
Trump, who will be inaugurated later on Monday, is widely expected to make a flurry of policy announcements in the first hours of his second term, including an end to a moratorium on US liquefied natural gas export licenses — part of a wider strategy to strengthen the economy.
“There is a fair amount of uncertainty across markets coming into this week given the inauguration of President Trump and the raft of executive orders he reportedly is planning to sign,” ING analysts said in a note.
“This combined with it being a US holiday today, means that some market participants may have decided to take some risk off the table.”
Both contracts gained more than 1 percent last week in their fourth successive weekly ascent after the Biden administration sanctioned more than 100 tankers and two Russian oil producers. That led to a scramble by top buyers China and India for prompt oil cargo and a rush for ship supply as dealers of Russian and Iranian oil sought unsanctioned tankers to ferry their load.
While the new sanctions could impact the supply of nearly 1 million barrels per day of oil from Russia, recent price gains could be short lived depending on Trump action, ANZ analysts said in a client note.
Trump has promised to help end the Russia-Ukraine war quickly, which could involve relaxing some curbs to enable an accord, they said.
Analyst Tim Evans said the new sanctions are seen curtailing supply, at least in the near term.
“Higher tanker rates on unencumbered vessels and a widening backwardation in crude oil calendar spreads have been among the notable ripple effects, reinforcing the concern over supplies,” he said in his newsletter Evans on Energy.
Backwardation refers to prompt prices being higher than those in future months, indicating tight supply.
The prompt Brent monthly spread widened in backwardation by 5 cents to $1.27 a barrel on Monday. The WTI spread was at 63 cents a barrel, up 14 cents.
Easing tension in the Middle East also kept a lid on oil prices.
Hamas and Israel exchanged hostages and prisoners on Sunday that marked the first day of a ceasefire after 15 months of war.
Separately, investors are watching out for the impact from a cold snap in Texas and New Mexico which may affect US oil production, analysts at ANZ and ING said.
Cloud technology set to transform Saudi Arabia’s mining industry, says Ma’aden executive
RIYADH: Saudi Arabia’s mining industry is set for a major transformation, driven by the rapid adoption of advanced technologies such as cloud computing, according to a senior executive.
In an interview with Arab News on the sidelines of the Oracle CloudWorld Tour Riyadh event, Abdullah Al-Osaimi, senior vice president of procurement and business support at Ma’aden, emphasized the critical role of cloud technology in the future of mining operations.
“I think the nature of mining is one of the industries that is going to be heavily dependent on Cloud,” Al-Osaimi said.
He added: “You are exploring unknown territories that do not even have any population. It’s in the remote areas. This is where most of the minerals and discoveries we have.”
Al-Osaimi highlighted the unique challenges faced by the sector, particularly in exploration activities conducted in less inhabited areas.
“If you don’t incorporate a cloud strategy, operating in such environments will be extremely difficult,” he said.
“Cloud solutions, along with mobility and edge computing, are crucial for achieving faster and more accurate exploration and production results.”
With Saudi Arabia’s Vision 2030 strongly emphasizing mining as a key economic driver, Ma’aden is aggressively adopting new technologies to support its ambitious growth plans.
“We are planning to grow tenfold by 2040. Very few companies in the world have such an aggressive growth strategy,” said Al-Osaimi.
He continued: “To achieve this, we are focusing on scalability, cost-effectiveness, and operational efficiency through advanced cloud-based solutions.”
Al-Osaimi also emphasized Saudi Arabia’s commitment to integrating advanced technologies into its development strategy, highlighting the country’s proactive approach to adopting and experimenting with innovations, even relatively new ones globally.
“We are keeping this in the heart of our strategy. We are pushing so hard in every single technology. We are even testing technologies that are very new in the world. We are bringing it here in Saudi Arabia,” Al-Osaimi said.
He continued: “One of our main objectives is to localize these technologies, not only test them but also bring them here in Saudi Arabia, so they will grow from Saudi Arabia, not just we use them and that’s it. We are bringing these technologies, we are investing in them, and we are growing them with us.”
Al-Osaimi pointed out that cloud technology offers mining companies the flexibility to analyze vast amounts of exploration data in real time, reducing the traditional timeline of discovering and processing mineral resources.
“In the mining sector, it usually takes around 15 years to go from exploration to full production. Our goal is to reduce that to at least half by adopting new technologies,” he said.
Al-Osaimi added: “AI is one of the key technologies we are adopting. It is not just a buzzword; it is an essential tool that helps us enhance productivity and accuracy.”
He further explained that technology adoption in mining is not just about implementing systems but also about ensuring data quality and developing the right skillsets among employees.
Talking to Arab News, the managing director and country leader for Oracle Saudi Arabia, Reham Al-Musa, underlined the company’s commitment to the Kingdom’s digital economy, stating: “Our CEO Safra Catz announced an investment of $1.5 billion to expand cloud capacity in Saudi Arabia during her visit two years ago.”
Al-Musa continued: “Oracle was the first cloud provider to open a data center in the Kingdom in 2021, starting in Jeddah, followed by a second region in NEOM and a third in Riyadh, which went live a few months ago.”
She also underlined that Saudi Arabia aims to become a hub for artificial intelligence, and Oracle is supporting this goal by providing technology that integrates generative AI and other capabilities.
“Cloud is the future, and it will come like for everyone. However, there is a regulated industry that they cannot go to the public cloud,” Al-Musa said.
She continued: “We have the capability to build the sovereign cloud, and this is what we did and announced with stc, stc alloy, so this is providing an extra layer of security to give the privilege for the regulated industry to utilize the benefit of the cloud and the latest technology on the cloud.”
In April 2024, Oracle and Saudi Telecom Co. launched sovereign cloud services in the Kingdom, using Oracle Alloy to help accelerate Saudi Arabia’s digital transformation with over 100 Oracle Cloud Infrastructure services for public sector and enterprise customers.
During the event, Oracle celebrated 30 years of supporting the nation’s digital transformation.
For the first time, the annual CloudWorld Tour, typically held in Las Vegas, is being hosted in Riyadh.
“Bringing the CloudWorld Tour to Riyadh for the first time in our 30th year in the Kingdom underscores our commitment to empowering Saudi organizations with cutting-edge cloud and AI technologies,” Al-Musa said during the opening remarks.
The event highlights how Oracle will help customers maximize the benefits of its cloud solutions, and the new data centers the company has opened in Saudi Arabia.
Oracle also announced that the Al-Madinah Development Authority achieved a significant milestone by implementing the Oracle Fusion cloud applications suite.
MDA implemented Oracle Fusion Cloud Enterprise Resource Planning, Oracle Fusion Cloud Supply Chain and Manufacturing, and Oracle Fusion Cloud Human Capital Management.
A custom application for managing supplier payments has also been developed. This achievement is part of the authority’s efforts to enhance operational efficiency, boost productivity, and adopt the latest digital technologies.
