EILAT: Israeli environmentalists are warning that a UAE-Israeli oil pipeline deal threatens unique Red Sea coral reefs and could lead to “the next ecological disaster.”
The agreement to bring Emirati crude oil by tanker to a pipeline in the Red Sea port of Eilat was signed after Israel normalized ties with the Gulf Arab nation late last year and should come into force within months.
With experts warning of possible leaks and spills at the aging Eilat port, and the Israeli environmental protection ministry demanding “urgent” talks on the deal, activists mobilized last week.
They held a protest in a parking lot overlooking Eilat’s oil jetty against what they see as a disaster waiting to happen, chanting that profits will be made “at the expense of corals.”
“The coral reefs are 200 meters (yards) from where the oil will be unloaded,” said Shmulik Taggar, an Eilat resident and founding member of the Society for Conservation of the Red Sea Environment.
“They say the tankers are modern and there won’t be any problem,” he said, warning however that “there’s no way there won’t be a malfunction.”
He predicted that with the projected arrival of two to three tankers a week, traffic will be “back-to-back.”
This, he said, would also impact the aesthetic of a city promoting ecological tourism.
“You can’t sell green tourism when you have oil tankers by the dock,” he said.
The Jewish state and the UAE established ties last year as part of the US-brokered “Abraham Accords.”
One of the deals that followed was a Memorandum of Understanding between Israel’s state-owned Europe-Asia Pipeline Company (EAPC) and a new entity called MED-RED Land Bridge Ltd. — a joint venture between Abu Dhabi’s National Holding company and several Israeli firms.
In October, EAPC announced a “binding MoU” with MED-RED to bring crude from UAE to Eilat and then transport it by pipeline to Israel’s Mediterranean city of Ashkelon for onward export to Europe.
Taggar argued that deals benefitting the fossil fuel industry at the expense of the environment are “not in the spirit of our times.”
“It might have been appropriate in the 1960s and 1970s, before we were a developed state,” he said.
Activists argue the deal evaded tough regulatory scrutiny because of EAPC’s status as a state-owned firm working in the sensitive energy sector.
While coral populations around the world are under threat from bleaching caused by climate change, the reefs in Eilat have remained stable due to their unique heat resistance.
Eilat’s coral beach reserve extends some 1.2 kilometers (almost a mile) off the city’s coast, protecting reefs that are home to a rich variety of marine life.
But their proximity to the EAPC port puts them at grave risk, Nadav Shashar, professor of marine biology at Beersheba’s Ben Gurion University, told AFP.
The infrastructure is not set up to prevent accidents and only designed “to treat pollution once it’s already in the water,” said Shashar, who is also head of marine biology and biotechnology at Eilat’s Interuniversity Institute for Marine Science.
Shashar, one of 230 experts who petitioned Prime Minister Benjamin Netanyahu against the deal, argued that with the increase of shipments, “the result will be a constant leak of oil pollution.”
After the agreement was struck in October, EAPC said it could increase oil flow through Eilat by “tens of millions of tons per year.”
Contacted by AFP, the company declined to discuss the deal’s specifics but stressed that its equipment was “state of the art” and up to international standards.
The environmental protection ministry said it had fulfilled its oversight role but also called for an “urgent discussion of all relevant governmental bodies” to review the deal.
The talks, a statement said, “would examine all angles — including the environmental ones — of increasing the volume of crude oil being transported.”
Shashar said the goal was not to close down EAPC but to “limit the extent of its use to something that can be handled.”
Some activists have voiced more militant views, including Michael Raphael of the international Extinction Rebellion movement.
Raphael, who came to the recent rally armed with a bullhorn, said he was aiming to set up an Extinction Rebellion chapter in Eilat to resist the UAE deal.
“If the problem isn’t solved, we’ll have to get in the way of things,” he said. “We don’t just demonstrate ... we disrupt the work of those who pollute.”
Red Sea coral reefs ‘under threat’ from Israel-UAE oil deal
https://arab.news/vwm6v
Red Sea coral reefs ‘under threat’ from Israel-UAE oil deal
- Activists held a protest in a parking lot overlooking Eilat’s oil jetty against what they see as a disaster waiting to happen
- Eilat’s coral beach reserve extends some 1.2 kilometers (almost a mile) off the city’s coast, protecting reefs home to rich marine life
UAE and Australia finalize trade deal to boost exports and investment
RIYADH: Australia has finalized a Comprehensive Economic Partnership Agreement with the UAE, which could boost its exports by A$678 million ($458 million) annually.
In a press statement, Australia’s Trade Ministry noted that the deal will eliminate tariffs on about 99 percent of his country’s products, leading to savings of A$135 million in the first year and increasing to A$160 million annually once fully implemented.
As Australia’s first trade agreement with a country in the Middle East and North Africa region, the CEPA aims to enhance bilateral trade and investment by streamlining trade processes, removing tariffs on a wide range of goods and services, and encouraging private-sector collaboration in key sectors.
The agreement builds on the strengthening economic ties between the UAE and the southern hemisphere country with bilateral non-oil trade reaching $2.3 billion in the first half of 2024 — a 10 percent increase from the same period in 2023.
Australia’s Trade Minister Don Farrell stated that, as a trading nation, the country is committed to opening up new opportunities for its exporters, farmers, producers, and businesses.
“Under this trade agreement, Australian exports are expected to increase by $460 million per year, but this deal means more for Australia than just numbers. A trade agreement with the UAE will facilitate investment into key sectors, which is important to achieving our ambition of becoming a renewable energy superpower,” added Farrell.
The trade agreement is also expected to unlock UAE investment in sectors such as renewable energy and the supply chain for critical minerals, thereby catalyzing Australia’s energy transition.
“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households,” explained Farrell.
The UAE is the country’s top trade partner in the Middle East and 20th globally. By 2023, the two nations had committed $14 billion to each other’s economies, with over 300 Australian businesses active in sectors including construction, financial services, agriculture, and education.
“This CEPA will unlock significant opportunities for UAE businesses and provide Australian companies with a gateway to new markets across the MENA region. I look forward to collaborating with my Australian counterpart to swiftly ratify the CEPA and deliver its benefits,” said UAE Trade Minister Thani bin Ahmed Al-Zeyoudi.
He added: “This milestone not only reaffirms our commitment to building strong relations with key partners, but to expanding the reach of our trading network into key regions such as Asia-Pacific.”
According to the statement, the agreement is expected to benefit Australian farmers and food producers, with estimated tariff savings of A$50 million annually for the country’s food and agriculture exports.
It also includes a framework to boost UAE investment in critical minerals, aiding the mining industry through tariff cuts on alumina exports.
Australia’s Trade Ministry noted that the agreement would reduce import tariffs on UAE-produced furniture, copper wire, glass containers, and plastic, resulting in lower costs for businesses and households, with estimated savings of around $40 million a year.
The deal encompasses commitments to promote labor rights, protect the environment, and ensure sustainable development.
Australia and the UAE are working to finalize the legal treaty text, which is expected to be signed later this year.
UK firms to expand businesses in Saudi Arabia amid top ministerial meeting
RIYADH: UK-based companies are set to expand their operations in Saudi Arabia as both countries discussed strengthening their trade partnership in a top ministerial meeting.
During the gathering, the Kingdom’s Minister of Commerce and Chairman of the Economic and Social Committee of the Saudi-British Strategic Partnership Council, Majid Al-Qasabi, met with the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, and his accompanying delegation in Riyadh, to discuss elevating economic partnership in priority sectors.
The two parties also tackled stimulating and financing emerging companies in promising fields based on research and innovation, the Saudi Press Agency reported.
This falls in line with the two countries’ target to increase bilateral trade to £30 billion ($39.6 billion) by 2030.
According to data from the UK government’s Department for Business and Trade, total trade in goods and services between with Saudi Arabia reached £17.6 billion in the four quarters to the end of the first quarter of 2024.
“Today I met with His Excellency the Minister of State for Business and Trade and Chairman of the British Council, Mr. Jonathan Reynolds, and we discussed the progress of the negotiations for the Free Trade Agreement between the GCC countries and the United Kingdom and enhancing opportunities for trade cooperation between our two friendly countries,” Al-Qasabi said in a post on X.
“Economic growth is this government’s driving mission, and boosting trade and investment with some of the world’s biggest economies is crucial to that,” Reynolds said, the UK government reported.
“I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region, and increases choice for consumers — so it’s great to be here to discuss exactly that,” the business and trade secretary added.
Al-Qasabi also highlighted in the meeting the follow-up of the implementation of 79 initiatives in 13 economic sectors to strengthen the Saudi-British partnership, noting that the level of growth in bilateral trade reached more than 30 percent from 2018 to 2023.
He added that 1,139 British investors operate in the Kingdom and benefit from the facilities resulting from the development reforms related to facilitating the practice of economic business.
During his visit to Riyadh, Reynolds also met with the Saudi Minister of Industry and Mineral Resource, Bandar Alkhorayef, to discuss opportunities to enhance industrial and mining cooperation between the two countries and promising investment opportunities for UK companies in the two sectors.
The ministers also held talks focused on encouraging British investors to take advantage of the Kingdom’s business-friendly environment, which offers numerous incentives, competitive advantages, and the availability of natural resources. They emphasized Saudi Arabia’s advanced infrastructure in addition to its diverse energy sources.
The Kingdom was ranked the UK’s 23rd largest trading partner in the four quarters to the end of the year’s first quarter, accounting for 1 percent of total UK trade.
UAE banking sector’s liquid assets surpass $218bn: CBUAE
RIYADH: The UAE banking sector’s liquid assets reached 801.52 billion dirhams ($218.2 billion) by the end of the second quarter of 2024, reflecting a 20.2 percent year-on-year increase, official data showed.
According to the latest report from the Central Bank of the UAE, the increase reflects a jump from 666.6 billion dirhams in the same period last year. On a quarter-on-quarter basis, it increased by 2 percent, or 14.9 billion dirhams, compared to 786.6 billion dirhams at the end of the first quarter of this year.
Liquid assets accounted for 18.9 percent of the sector’s total assets, which reached 4.2 trillion dirhams by June.
This comes as the UAE banking sector demonstrates strong growth and resilience amid global challenges. The CBUAE has supported this expansion with record increases in assets, credit, deposits, and investments, while maintaining robust capital efficiency and reserves.
The report also highlighted the UAE banking system’s strong capitalization, with a total capital adequacy ratio of 18.3 percent at the end of the second quarter, improving from 18 percent in the first three months of the year, and 17.9 percent in the last quarter of 2023.
This ratio remained significantly above the minimum regulatory requirement of 13 percent, including a 2.5 percent capital buffer and a minimum Tier 1 capital ratio of 8.5 percent.
This metric, which measures core capital, stood at 17 percent at the end of the second quarter of 2024, up from 16.7 percent in the first three months of the year and 16.6 percent in the fourth quarter of 2023.
Meanwhile, the Common Equity Tier 1 ratio, a key measure of a bank’s financial strength, rose to 15.3 percent, up from 15 percent in the inaugural quarter of 2024 and 14.9 percent in the last quarter of 2023.
The UAE banking sector has demonstrated growth and stability in recent months, with the net international reserves seeing a surge of 29 percent, totaling 1.23 trillion dirhams by the end of May. This total includes 763.88 billion dirhams held by the CBUAE and 472.68 billion dirhams held by other banks operating in the UAE.
In conjunction with this, CBUAE’s gold reserves grew by 19.7 percent year on year, reaching 20.61 billion dirhams. The gold reserves also saw a 1.3 percent increase in May compared to April.
Time deposits increased by 17 percent to 842.98 billion dirhams, while demand deposits grew over 10 percent to 1.04 trillion dirhams. UAE Funds Transfer System transactions reached 7.9 trillion dirhams by May, up 17 percent from the previous year.
Oil Updates – prices climb on US output concerns, potential crude inventory drop
SINGAPORE: Oil prices extended gains on Tuesday as the market eyed US output concerns in the aftermath of Hurricane Francine and expectations of lower US crude stockpiles.
Brent crude futures for November were up 36 cents, or 0.5 percent, at $73.11 a barrel, as of 9:35 a.m. Saudi time. US crude futures for October climbed 53 cents, or 0.8 percent, to $70.62 a barrel.
Both contracts settled higher in the previous session as the impact of Hurricane Francine on the output in the US Gulf of Mexico countered Chinese demand concerns ahead of the US Federal Reserve’s interest rate cut decision this week, which should prove positive for investor sentiment in oil.
More than 12 percent of crude production and 16 percent of natural gas output in the US Gulf of Mexico remained offline, according to the US Bureau of Safety and Environmental Enforcement on Monday.
“Oil prices managed to recover slightly ... (An) extreme bearish state over the past weeks called for some near-term stabilization, with prices previously touching their lowest level since 2021,” said Yeap Jun Rong, market strategist at IG.
“But a weaker-than-expected run in China’s economic data lately could still be a source of caution, while the lead-up to the upcoming FOMC interest rate decision may limit some risk-taking,” Yeap added, referring to the Federal Open Market Committee.
The Fed is expected to start its easing cycle on Wednesday, with Fed funds futures showing markets are now pricing in a 69 percent chance the central bank will cut rates by 50 basis points.
“Growing expectations of an aggressive rate cut boosted sentiment across the commodities complex,” ANZ analysts said in a note, adding that supply disruptions also supported oil markets.
A lower interest rate will reduce the cost of borrowing and can potentially lift oil demand by supporting economic growth.
Investors also eyed an expected drop in US crude inventories, which likely fell by about 200,000 barrels in the week ended Sept. 13, based on a Reuters poll.
Still, lower-than-expected demand growth in China, the world’s largest crude importer, have capped price gains. China’s oil refinery output fell for a fifth month in August amid declining fuel demand and weak export margins, government data showed on Saturday.
Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes
ABU DHABI, Sept 16 : Wizz Air expects 15-20 percent growth in passenger volume next year, its CEO told Reuters, with new low-cost routes to the Middle East, such as from Europe to the UAE, adding an extra boost.
“Globally, we are expecting 15-20 percent (growth), but I think Abu Dhabi is going to grow beyond this,” Jozsef Varadi said.
Hungary-based Wizz Air, which carried a record 62 million passengers during the year ended in March 2024, set up operations in the UAE in 2019 as a joint venture with Abu Dhabi’s third biggest sovereign wealth fund ADQ.
In the Middle East, where concerns of a wider flare up of the war in Gaza have prompted international airlines to suspend flights or avoid air space, Wizz Air is monitoring every development, Varadi said.
He added that Wizz Air wants to develop Saudi Arabia as an inbound market rather than setting up a local carrier there.
The airline, which flies an all-Airbus fleet, last week announced it would deploy its first A321XLR, a single-aisle aircraft that will allow it to cover longer distances, to operate a route between London’s Gatwick airport and Saudi Arabia’s Jeddah starting from March 2025.
Another A321XLR aircraft will operate a daily flight between Milan Malpensa airport and Abu Dhabi starting from June next year.
“Certainly we are very excited about Jeddah,” Varadi said. “We are seeing that more European operations might be flown inbound to Saudi in the future.”
He said, however, that all new routes were subject to regulatory approvals and capacity constraints due to troubles with Pratt & Whitney engines, which forced
Wizz Air to ground part of its fleet, contributing to a 44 percent drop in first-quarter operating profit.
As the aviation sector struggles with delays from manufacturers Boeing and Airbus, European airlines have also faced a difficult first half of the year because of rising and softening demand after an initial post-pandemic boom.
Wizz Air’s London-listed shares dropped almost 42 percent over the last 12 months.
“I don’t think that the share price is reflective of the actual performance of the business,” said Varadi.
He said the market was over-reacting and Wizz Air was being “disproportionately affected” by factors such as geopolitics and problems with Pratt and Whitney’s engines.
Asked about fares, Varadi said summer data showed Wizz Air was not seeing as huge price declines as those that some rivals had flagged.
