ALGIERS: Algeria’s state energy firm is ready to supply Europe with more gas in view of a possible decline due to the Russian invasion of Ukraine, its CEO said Sunday.
Sonatrach CEO Toufik Hakkar said the firm was ready to pump additional gas to the EU from its surplus via the Transmed pipeline linking Algeria to Italy.
Sonatrach is “a reliable gas supplier for the European market and is willing to support its long term partners in the event of difficult situations,” Hakkar was quoted as saying in the daily Liberte.
Hakkar nonetheless said this would be contingent on the availability of a surplus of gas or liquified natural gas (LNG) once the national demand and “contractual engagements” are met.
He pointed to an “unused capacity” in the Transmed pipeline that could be used to “increase the supplies to the European market.”
The Transmed pipeline, jointly operated with Italy’s ENI, has a capacity of some 32 million cubic meters per year — four times that of the Medgaz pipeline to Spain.
The top executive added that Sonatrach could expand its supplies to countries not currently served by existing pipelines via LNG tankers.
Hakkar said Europe is the “natural market of choice” for Algerian gas, which accounts for about 11 percent of Europe’s gas imports.
Former Algerian energy minister Abdelmajid Attar meanwhile told AFP that “Algeria exports a maximum of 22 billion cubic meters (of gas) via the Transmed pipeline,” leaving a capacity of 10 billion cubic meters.
He nonetheless noted that Algeria alone will not be able to “compensate for the decline in Russian gas supply,” noting that it can offer a maximum of two or three million additional cubic meters.
Attar, who also previously served as Sonatrach’s CEO, added that LNG can also be transported via tankers, noting that existing liquefaction plants are only operating at 50-60 percent capacity.
The former minister said that in the medium term, “in four or five months, Algeria can send larger quantities,” however noting that the country must first “develop new reserves” of shale gas.
Sonatrach announced in January that it would invest $40 billion into oil exploration, production and refinement, as well as gas prospecting and extraction, between 2022 and 2026.
Algeria say ready to supply EU with extra gas amid Ukraine crisis
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Algeria say ready to supply EU with extra gas amid Ukraine crisis
- Hakkar said Europe is the “natural market of choice” for Algerian gas, which accounts for about 11 percent of Europe’s gas imports
Saudi Arabia boosts R&D spending to $6bn in 2023 amid Vision 2030 push
RIYADH: Saudi Arabia ramped up its research and development spending to SR22.61 billion ($6.02 billion) in 2023, marking a 17.4 percent increase from the previous year, according to official data.
The General Authority for Statistics reported a rise in R&D personnel, with the workforce reaching 49,337 by the end of 2023, up 12.2 percent year on year. Researchers accounted for 36,832 of this figure, representing a 22.1 percent annual growth.
The Kingdom is prioritizing R&D across sectors like energy, technology, and sustainability as part of its Vision 2030 strategy to diversify its oil-dependent economy.
“The percentage distribution of employees in the field of R&D at the level of different sectors indicates that the number of employees in higher education reached 37,540 employees, representing 76.1 percent, followed by the private sector, with 8,810 employees, at 17.9 percent, then the government sector, with 2,987 employees. at 6.1 percent,” GASTAT noted.
The authority also revealed that Saudi Arabia had 32,209 researchers in higher education by the end of 2023. The private and government sectors employed 2,790 and 1,883 researchers, respectively.
In terms of funding, the government sector accounted for the largest share of R&D spending at SR12.12 billion in 2023, representing 53.6 percent of the total. The private sector contributed SR9.31 billion, while the higher education sector received SR1.17 billion.
When it comes to expenditure, the private sector led with SR8.70 billion spent on R&D, followed by the government sector at SR8.66 billion and the higher education sector at SR5.24 billion.
In August, energy giant Saudi Aramco announced a $100 million commitment to fund research and development at King Abdullah University of Science and Technology over the next decade.
The partnership aims to accelerate innovation in Saudi Arabia and develop commercially viable solutions that support the global energy transition and sustainability goals, according to a press statement.
The agreement will focus on areas including energy transition, sustainability, materials science, upstream technologies, and digital solutions.
Saudi Arabia’s Industrial Development Fund injects $3.19bn into the sector, minister confirms
RIYADH: The Industrial Development Fund provided SR12 billion ($3.19 billion) in financing to the Kingdom in 2024, boosting its global competitiveness, according to leading minister.
Speaking during a panel discussion at the Budget Forum 2024, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the vital role of financing in driving industrial development.
“The Industrial Development Fund alone financed projects worth SR12 billion for 2024, but the total value of these projects exceeds SR60 billion,” Alkhorayef said.
He continued: “We have key indicators for the industrial sector: First, there are the licenses, which have seen significant growth. By the end of this year, more than 1,100 opportunities have been issued, and 900 factories have entered production. This is a very important key indicator.”
The minister went on to say: “The second key indicator is financing. Financing is a crucial driver for the industrial sector. The third key indicator is infrastructure. It is unimaginable to have a thriving industrial sector without properly developed industrial lands, primarily provided by the government.”
These key indicators are of great importance because they ensure the continued flow of investments into the sector, he added.
Alkhorayef also pointed to the Kingdom’s focus on promoting exports and supporting new sectors.
“Exports grew from SR458 billion in 2023 to SR528 billion this year, a 15 percent increase. This growth is largely driven by non-traditional sectors, showcasing the diversification of our economy beyond petrochemicals,” he said.
The minister highlighted the broader integration of industries, particularly between the industrial and mining sectors.
He praised Saudi Arabia’s streamlined approach to mining licenses, reducing wait times from eight to 10 years in advanced economies to just six months in the Kingdom, with plans to further reduce this to 90 days.
Alkhorayef emphasized the long-term vision of transforming Saudi Arabia into a hub for mining services and technology companies.
“Our investment in geological surveys has increased the estimated value of the Kingdom’s mineral wealth from $1.3 trillion to $2.5 trillion. This achievement positions the Kingdom as a future leader in mining and industrial innovation,” he added.
The industrial and logistics sectors have experienced significant momentum, with the government’s efforts driving a surge in private and foreign investment.
By aligning with Vision 2030, these initiatives aim to create a thriving, diversified economy that maximizes the nation’s geographic and resource advantages.
Transport sector achieves record growth and job creation
The Minister of Transport and Logistics Services Saleh Al-Jasser underscored the transport industry’s role as a key enabler of economic activity. He revealed that the sector achieved a 17 percent growth rate in just two years.
“International indicators also confirm this progress, such as the Logistics Performance Index, which saw an improvement of 17 ranks, as well as indicators for air connectivity, maritime connectivity, and road service quality,” Al-Jasser said.
He added: “Among other significant indicators is the reduction in fatalities and severe accidents on roads, achieved through an integrated national effort with other government entities. There is no doubt that progress has also been made across different modes of transport.”
The minister also highlighted that Saudi Arabia’s aviation sector is undergoing significant improvements, with a 50 percent increase in the number of international and domestic destinations connected to the Kingdom compared to pre-pandemic levels.
This reflects the sector’s rapid growth and its role in enhancing connectivity and economic activity.
A key goal of Vision 2030 is to create jobs and provide dignified employment opportunities for citizens.
“Saudi Arabia’s transport sector is at the core of our economic diversification efforts, providing critical infrastructure for all other industries,” Al-Jasser said.
He continued: “Investments exceeding SR447 billion have been made in the sector since the launch of the strategy. This includes more than 300 new aircraft ordered by national airlines, the highest in the Kingdom’s history, alongside significant expansions in logistics zones, maritime infrastructure, and other key areas.”
Al-Jasser highlighted the sector’s role in creating jobs, with 122,000 new employment opportunities generated by the third quarter of this year compared to the same period in 2023.
Additionally, women’s participation in transport has risen to 29 percent, a notable increase in a traditionally male-dominated field.
“The focus on developing local content has been equally impactful,” he emphasized. “The transport system has increased local content from 39 percent to 50 percent, putting us on track to achieve our Vision 2030 target of 60 percent.”
During the same session, the Minister of Communications and Information Technology Abdullah Al-Swaha highlighted Saudi Arabia’s rapid progress in the technology sector, attributing this success to investments in artificial intelligence-native companies and digital transformation.
“Today, companies like Mozn and Amplify are leading the charge in AI and innovative solutions. The Kingdom is positioning itself as a global powerhouse for tech-driven growth,” Al-Swaha said.
He continued: “The next phase will focus on technology manufacturing and exports. With the support of His Royal Highness the Crown Prince, we will further strengthen our National Program for Technology Development to ensure Saudi Arabia’s technological sovereignty and prosperity.”
Al-Swaha emphasized the Kingdom’s commitment to leveraging resources and infrastructure to build a globally competitive tech economy.
“This is a clear message to all tech professionals: we are ready to lead,” he concluded.
Saudi Arabia to introduce VAT refunds for tourists starting in 2025
JEDDAH: In a move aimed at boosting tourism, Saudi Arabia will begin offering refunds on value-added tax for eligible purchases made by tourists starting in 2025, the government announced.
The Zakat, Tax, and Customs Authority proposed changes to the VAT Implementing Regulations in August, which were open for public consultation via the Istitlaa platform until Sept. 17. The proposed amendments cover the definition of eligible goods, the refund process, and the role of authorized service providers in handling claims.
This initiative is part of Saudi Arabia’s efforts to enhance its global appeal as a tourist destination under the ambitious Vision 2030 plan. The National Tourism Strategy aims to attract 150 million visitors by the end of the decade and increase tourism’s contribution to the Kingdom’s gross domestic product from 6 percent to 10 percent.
In its 2025 budget statement, the Ministry of Finance noted: “The introduction of VAT refunds for tourists in Saudi Arabia is designed to improve the traveler experience while ensuring tax compliance.”
According to the proposed changes, tourists will be able to claim VAT refunds on goods purchased in Saudi Arabia for personal use, provided the items are taken out of the country. Certain goods, including vehicles, tobacco products, and food, will be excluded from the refund scheme.
Refunds will be processed through authorized service providers, who will verify eligibility, manage claims, and maintain the necessary records. These providers may charge a commission for their services, while ZATCA will retain the authority to review and reject claims if necessary.
The proposal defines a tourist as someone who is not a permanent resident of Saudi Arabia or any other Gulf Cooperation Council state that applies VAT. Transport crew members and other specific categories will be excluded. Tourists from GCC countries will be treated as non-GCC visitors until a unified VAT refund system is established across the region.
ZATCA’s governor will oversee the implementation of the refund system, including setting the conditions for eligible goods, processing refund requests, and authorizing service providers.
The VAT refund initiative is part of broader efforts to position Saudi Arabia as a leading global tourism destination. By refining tax policies and enhancing the shopping experience for international visitors, the Kingdom aims to attract higher spending and stimulate growth in the tourism sector.
This move also reflects Saudi Arabia’s focus on economic diversification and robust tax governance, reinforcing its competitiveness as a global hub for both tourism and investment.
Saudi Arabia sets new unemployment rate target of 5% by 2030, minister reveals
RIYADH: Saudi Arabia has revised its unemployment rate target to 5 percent by 2030, down from the previous goal of 7 percent, as part of Vision 2030’s ambitions, an official revealed.
During a panel discussion at the Budget Forum 2024, the Minister of Human Resources and Social Development Ahmed Al-Rajhi detailed the Kingdom’s strides toward improving employment figures.
“The unemployment rate among Saudis was 12.8 percent in 2018, and today it has dropped to 7.1 percent. The Vision 2030 target was to reduce Saudi unemployment to 7 percent by 2030, a milestone we have achieved six years ahead of schedule,” Al-Rajhi said.
He added: “For this reason, His Royal Highness the Crown Prince directed a review of this target, and now we have a new ambition: to reduce the unemployment rate among Saudis to 5 percent by 2030.”
The move highlights Saudi Arabia’s progress in building a robust labor market and achieving economic diversification under its reform agenda.
The human resources and social development system is deeply involved in implementing Vision 2030, contributing to eight of its 11 key programs and managing six specific workforce and social development strategies.
“One of the achievements of the system, and the government as a whole, is that this year we have achieved an overall unemployment rate of 3.3 percent, down from 6 percent in 2018,” Al-Rajhi said.
Regarding women’s involvement, the economic participation rate of females has reached 35 percent, exceeding the Vision 2030 target of 30 percent by 2030.
“We have surpassed the goal by 5 percent seven years ahead of schedule, and we now have a new target to aim for,” the minister said.
He continued: “The Ministry of Human Resources and Social Development has implemented 84 percent of the Labor Market Strategy over the past four years, creating 300,000 jobs in specialized professions such as engineering, accounting, pharmacy, and radiology. These efforts align with Vision 2030’s emphasis on building a future-ready workforce.”
Al-Rajhi explained that the Kingdom has been tasked with updating this strategy, and the ministry submitted a new ambitious plan to elevate the Saudi labor market to one of the strongest globally.
“The second phase of this strategy is now awaiting government approval,” he said.
To further strengthen the labor market, the ministry has launched initiatives like the Waad program in partnership with the private sector, which has provided over 1.3 million training opportunities to date.
Additionally, labor regulations have been overhauled, with more than 38 articles amended to ensure a modern and adaptable workforce framework.
New insurance products, such as domestic worker insurance and labor market insurance, have also been introduced to safeguard employees and employers.
“Regarding beneficiary satisfaction: previously, the ministry in the labor sector received 60,000 visitors to its branches across the Kingdom each month,” Al-Rajhi said.
He added: “After launching the automation service and targeting zero visits, the number has now dropped to 3,000 beneficiaries per month.”
The Minister of Education Youssef Al-Benyan highlighted the ministry’s efforts in aligning its strategies with Vision 2030.
He emphasized the cumulative nature of transformation in the education sector, pointing out that the ministry has been building on progress from previous years to achieve sustainable development.
“The allocation for the 2025 budget exceeds SR200 billion ($42.09 billion),” Al-Benyan said, underscoring the government’s significant investment in education.
He explained that this funding reflects the ministry’s comprehensive approach to enhancing spending efficiency, institutional performance, and transformation.
“Today, if we talk about 2025, we must also briefly discuss 2024 and previous years, where the Ministry of Education has been building on cumulative progress,” Al-Benyan said.
He continued: “This reflects a professional culture that needs to be strengthened within the government system— that work is cumulative, and transformation is a gradual, ongoing process.”
Al-Benyan also mentioned the ministry’s focus on embedding a professional culture of long-term planning within government systems.
He said: “Spending efficiency is not solely the responsibility of the financial sector but a collaborative effort across various sectors. This is why we have revisited the operational system’s role in the ministry to ensure alignment with broader national goals.”
The minister highlighted the importance of education as a foundational pillar for Saudi Arabia’s economic and social development.
This includes investing in academic and operational infrastructure, supporting the Kingdom’s workforce needs, and ensuring the education system meets global standards.
Closing Bell: Saudi main index slips to close at 11,590
RIYADH: Saudi Arabia’s Tadawul All Share Index ended lower on Wednesday, losing 145.28 points, or 1.24 percent, to close at 11,590.79.
The benchmark index saw a total trading turnover of SR6.02 billion ($1.6 billion), with 65 stocks advancing and 168 declining. The Kingdom’s parallel market, Nomu, also experienced a decline, dropping 438.11 points, or 1.43 percent, to close at 30,164.72, as 30 stocks advanced and 52 retreated. The MSCI Tadawul Index fell 22.41 points, or 1.52 percent, to finish at 1,451.98.
Tamkeen Human Resource Co. was the best performer of the day, with its share price rising 30 percent to SR65. Other notable gainers included United International Transportation Co., whose stock rose 6.54 percent to SR76.60, and Anaam International Holding Group, which saw a 5.98 percent increase to SR1.24.
On the other hand, Saudi Cable Co. recorded the biggest loss, falling 6.67 percent to SR90.90.
SHL Finance Co. also saw a decline of 4.74 percent, closing at SR16.90, while Filing and Packing Materials Manufacturing Co. dropped 4.12 percent, ending the day at SR43.
On the announcements front, Saudi Awwal Bank announced the launch of its riyal-denominated additional tier-1 sukuk offering.
The terms and amount of the sukuk will be determined at a later stage, based on market conditions. The minimum subscription is set at SR1 million, with a par value of SR1 million.
The return will also be determined later, depending on market conditions. The targeted investors are institutional and qualified clients in accordance with the Capital Market Authority’s rules. HSBC Saudi Arabia has been appointed as the sole lead manager for the sukuk issuance. The bank’s stock closed down 2.95 percent at SR32.15.
Tamkeen Human Resource Co. also released its interim financial results for the period ending Sept. 30, reporting a net profit of SR69.1 million for the first nine months of 2024. This marks a 40.7 percent increase compared to the same period in 2023.
The growth was primarily driven by a 40 percent rise in revenues, a 28 percent increase in gross profit, and a SR10.3 million rise in general and administrative expenses. Non-operating income also grew by SR10.1 million, highlighting the company’s strong financial performance and effective management of its operations and risks.
