Saudi Arabia needs private investments to keep logistics on the move: NIDLP CEO

Saudi Arabia's Jeddah port (Shutterstock)
Short Url
Updated 14 June 2022
Follow

Saudi Arabia needs private investments to keep logistics on the move: NIDLP CEO

RIYADH: “Saudi Arabia’s logistics sector needs a huge investment combined between the government and private sector by 2030, as Vision 2030 targets to become a global logistic hub,” said Sulaiman Al-Mazroua, CEO of the National Industrial Development and Logistics Program.

During an exclusive interview with Arab News, Al-Mazroua said that upgrading the existing ports will help the Kingdom serve three continents: Asia, Africa, and Europe. He added that the Kingdom would provide the right environment and regulations to attract world transportation companies which will help Saudi Arabia emerge as one of the world’s busiest logistics centers.

He added: “We still need more upgrading to some of our facilities, including our airports and ports.” 




Suliman Al-Mazroua, CEO of the National Industrial Development and Logistics Program. (AN)

The vitality of SMEs

Al-Mazroua added that small and medium enterprises in the Kingdom should develop innovative technological ideas to fill gaps in logistics. 

He noted that tapping into cutting-edge technologies is necessary to achieve the Vision 2030 goal of becoming an industrial powerhouse and global logistics hub.

“This area (technology) in logistics, specifically, is very attractive to small and medium businesses, and innovation in that area is extremely open. So with more SMEs coming in to fill gaps in logistics, you will need less time and cost to produce. And whenever there’s competition, innovation comes to play,” Al-Mazroua told Arab News.

We will be capitalizing on our smart youth

Suliman Al-Mazroua, CEO of the National Industrial Development and Logistics Program

Prime Movers of Logistics

He also noted that  Saudi Arabia is capitalizing on its youth to revolutionize the sector, in addition to cooperating with private companies.

“We will be capitalizing on our smart and capable youth. And our government will enable this logistic hub with the infrastructure requirements. The private sector be an important partner with its technologies. We have seen Apple and Amazon come up with own their technologies. We also have major Saudi companies in the technology field developing their own.”

Strategic Location for A Global Logistics Hub

According to Al-Mazroua, Saudi Arabia’s geographical location is a crucial factor that could elevate the country’s spot on the logistics map in the future.

The Kingdom lies in a strategic location between the three continents, on the coast of the Red Sea, where more than 13 percent of the world’s logistic traffic passes yearly

Talking about the plans to transform the Kingdom into a top global logistics hub, he said, “Privatization of the ports with free zones will attract the right investments, build the right regulations and policies for investors to come and get connected with the world through trade agreements. So that is just a summary of our plans guided by Vision 2030, an ambitious yet achievable blueprint for our future.”


Six arrested in Makkah for fake Hajj campaigns

Updated 6 min 17 sec ago
Follow

Six arrested in Makkah for fake Hajj campaigns

JEDDAH: Makkah security patrols arrested four Chinese nationals for fraud after they were suspected of promoting fake Hajj campaign adverts on social media, falsely offering accommodation and transportation within the holy sites, according to the Saudi Press Agency.

In a separate incident, Makkah police also arrested a Yemeni and an Egyptian for similar fraud. The suspects a few accused of posting misleading advertisements for fake Hajj campaigns, falsely promising services for pilgrims.

All were detained, legal procedures were initiated, and they were referred to the Public Prosecution, the SPA added.

The General Directorate of Public Security urged citizens and residents to follow Hajj regulations and report violations by calling 911 in Makkah, Riyadh, and the Eastern Province, or 999 in other regions.

The Ministry of Interior also emphasized that domestic pilgrims must obtain permits through the Nusuk platform, while international pilgrims must use authorized entities via the Tasreeh digital platform.

The ministry announced penalties for those performing Hajj without a permit or facilitating such violations. From April 29 to June 10, the following penalties will apply:

A fine of up to SR20,000 ($5,300) will be imposed on anyone caught performing or attempting to perform Hajj without a permit, including visit visa holders entering or staying in Makkah or the holy sites during this period.

A fine of up to SR100,000 will be imposed on those who apply for visit visas on behalf of individuals who violate these regulations. The same penalty applies to those who transport, shelter, or attempt to shelter such individuals in any accommodation, including hotels, apartments, private residences, or pilgrim housing. Fines will multiply per violator involved.

Illegal infiltrators — residents or overstayers — attempting to perform Hajj will be deported and banned from reentering the Kingdom for 10 years.

The court will be requested to confiscate any land vehicle used to transport violators to Makkah or the holy sites, if owned by the transporter, facilitator, or accomplice.


Bangladeshi music stars prepare to light up the stage in Dammam

Updated 18 min 32 sec ago
Follow

Bangladeshi music stars prepare to light up the stage in Dammam

  • Lineup features heartthrob Imran Mahmudul and rock legend James
  • James debuted in Saudi Arabia during last year’s Riyadh Season

DHAKA: Some of Bangladesh’s most popular artists are showcasing their pop culture to an international audience as they headline a cultural festival in Saudi Arabia this week.

Organized by the Kingdom’s General Entertainment Authority, the month-long event, “Your Passport to the World,” is held in the city of Alkhobar in the Dammam metropolitan area.

The festival, which began April 9, is focused on showcasing the rich cultural heritage of four countries: Sudan, India, the Philippines and Bangladesh.

The last leg of the event, which began Wednesday, features Bangladeshi artists, with the lineup of musicians saying they are ready to put on a spectacular show in the Kingdom.

“I am well-prepared now for the show. As a part of preparation, I have made some new compositions for some of my popular numbers as the audience will listen to my live performance for the first time,” singer and composer Imran Mahmudul told Arab News.

Mahmudul, who will perform in Dammam on Thursday and at another iteration of the festival in Jeddah on May 8, is performing for the second time in Saudi Arabia, after making his debut in 2023 at the Riyadh Season — an annual series of entertainment, cultural, and sporting events running in the Saudi capital throughout winter months.

“That was a hugely good experience for me. More than half a million people enjoyed that show. Half of the audience couldn’t enter into the show as it was fully packed. It’s the biggest concert I have ever performed,” he said. “It’s a nice initiative to showcase Bangladeshi culture for the international audience.”

Imran Mahmudul poses with the audience at a concert in Riyadh, Saudi Arabia on Dec. 8, 2023. (Supplied)

The 33-year-old heartthrob was looking forward to playing for some of Bangladesh’s 3 million expats who are living and working in the Kingdom.

“Most of the Bangladeshi crowd are very emotional, especially when they find the Bangladeshi stars at their places … Whenever they get the opportunity to experience this kind of show with Bangladeshi stars, they don’t miss it.”

For her first-ever live performance in Saudi Arabia, singer Dilshad Nahar Kona said she is looking forward to putting on a show for fellow Bangladeshis in the Kingdom.

“I am feeling very proud to be a part of this grand event initiated by the Saudi government,” Kona told Arab News.

“With this initiative, I would be able to reach our people (Bangladeshis) in the Kingdom. It’s a big initiative where Bangladesh will be showcased for 3 to 4 days. Definitely, it’s a nice initiative by authorities in the Kingdom.”

Kona said she has been preparing to put on a great show. “We are fully prepared to offer the audience a marvelous show. With my performance, even if I can entertain them for a few moments, that will bring satisfaction in my mind as our efforts are nothing compared to the hard labor of our migrants’ work.”

The concerts will also feature other popular musicians from Bangladesh, including rock legend James, one of the most popular artists performing in Bengali, who has been widely celebrated since the 1990s and who debuted at Riyadh Season last year.

Ahead of the concerts, the Bangladesh expat community has been brimming with enthusiasm.

“I am a great fan of James and Imran. I am very excited to watch the live performances of these Bangladeshi music stars,” Abdul Hannan, a construction worker who lives in Dammam, told Arab News.

“We will join the Bangladesh events all four days as we get this sort of entertainment opportunities here very rarely. It’s kind of a get-together also for all the Bangladeshi migrants who have been living in this part of the Kingdom.”

Salma Hossain, who has been living in Saudi Arabia for the last three years, is planning to make the most of the festival.

“I have been counting the days for this Bangladesh event,” Hossain told Arab News.

“As a Bangladeshi citizen, I feel proud of this event. With the shows, now the people in my neighborhood will come to know that we also have a rich culture and heritage. We also have world-class music stars.”


Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

Updated 17 min 55 sec ago
Follow

Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

RIYADH: Saudi Arabia’s minister of industry and mineral resources has urged Kuwaiti investors to seize untapped opportunities in the Kingdom’s mining sector.

The encouragement was given during Bandar Alkhorayef’s meeting on April 30 with a group of Kuwaiti businessmen at a gathering organized by the Saudi Embassy as part of the minister’s official visit to the Gulf country. 

The trip was designed to strengthen economic ties, enhance cooperation in the industrial and mining sectors, and attract high-quality investments to the Kingdom, according to a statement.

During his meeting with the investors, the minister highlighted the crucial contribution of the industrial and mining sectors to the Kingdom’s economic diversification, aligning with Saudi Vision 2030’s aim to establish the country as a global industrial leader and a key hub for mineral production and processing.

This aligns with developments across the Saudi mining sector in order to maximize its impact on the national economy and exploit mineral resources, estimated at more than SR9.3 trillion ($2.47 trillion), Alkhorayef noted.

“He pointed out that the National Industrial Strategy focuses on developing and localizing 12 vital industrial sectors, most notably food, pharmaceuticals, automotive, and aviation, as these sectors provide promising investment opportunities for local and international investors,” the newly released ministry statement said.

“His Excellency pointed out the Kingdom’s endeavor to enable industrial transformation by adopting the latest manufacturing technologies, including applications of the Fourth Industrial Revolution, developing digital infrastructure in the industrial sector, and developing human capabilities and qualifying them to deal with advanced technologies,” it added.

During the meeting, Alkhorayef highlighted the Kingdom’s launch of the Factories of the Future program, which aims to automate industrial facilities and transform them into smart factories.

The minister also indicated that the General Geological Survey Program for Mining Exploration currently covers 60 percent of the Arabian Shield region and that the sector offers promising investment opportunities in all stages of mining.

He highlighted Saudi Arabia’s strategic advantages that position it as a prime global investment hub, such as its location connecting three continents, advanced infrastructure, and abundant natural resources, as well as varied energy options and streamlined government processes and licensing.

Toward the end of the meeting, Alkhorayef encouraged Kuwaiti companies and investors to explore the distinctive opportunities in the Kingdom’s industrial and mining sectors, emphasizing the nation’s supportive capabilities and incentives designed to facilitate and enhance the investor experience.

Saudi Arabia, Kuwait to bolster collaboration in oil, commerce, industry

Bandar Alkhorayef meeting with Minister of Oil Tariq Sulaiman Al-Roumi. X/@BAlkhorayef

During his official visit to Kuwait, Alkhorayef also held bilateral meetings with the Minister of Commerce and Industry Khalifa Abdullah Al-Ajeel and the Minister of Oil Tariq Sulaiman Al-Roumi.

During the meeting with Al-Ajeel, the Saudi minister praised the longstanding and robust ties between the Kingdom and Kuwait, emphasizing that these historical relations serve as a solid foundation for strategic economic partnerships, particularly in the industrial sector.

The discussion also emphasized the need to bolster industrial integration between the two sides in order to advance sustainable industrial development and promote economic diversification in both nations.

The meeting with Sulaiman saw the crucial role of the crude oil sector highlighted as a key driver of development in both countries. It also explored strategic opportunities to expand collaboration in the petrochemical industry and discussed ways to increase trade exchange and direct joint investments toward emerging, high-potential sectors.

In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event in January, Alkhorayef said that Saudi Arabia is taking a flexible approach to distributing its SR10 billion standardized incentive program — which provides financial support to industrial projects — to maximize its impact.

At the time, the minister said the program is designed to align with investor demand and deliver optimal returns.


‘Strive for peace’: Saudi Arabia seeks de-escalation of Pakistan-India tensions

Updated 9 min 6 sec ago
Follow

‘Strive for peace’: Saudi Arabia seeks de-escalation of Pakistan-India tensions

  • Riyadh urges neighbors to resolve disagreements through diplomatic channels, strive for stability and peace for their people and region 
  • Tensions have surged following attack on tourists in Indian-administered Kashmir that New Delhi blames on Pakistan, which denies the charge 

ISLAMABAD: Saudi Arabia has expressed concern over heightened tensions between nuclear-armed neighbors Pakistan and India amid exchanges of fire along their disputed border separating Kashmir and fears of an Indian military incursion, state news agency SPA reported on Wednesday.

Relations have plummeted following a deadly attack on tourists in Indian-administered Kashmir on Apr. 22 that New Delhi has said Pakistan was involved in. Islamabad denies the charges. Fears have risen since that India may conduct limited airstrikes or special forces raids near its border with Pakistan.

Pakistan’s information minister said on Tuesday night the country had “credible intelligence” India intended to carry out military action against it in the “next 24-36 hours on the pretext of baseless and concocted allegations of involvement in the Pahalgam incident.”

“The Kingdom appealed to both nations to de-escalate, avoid further escalation, resolve their disagreements through diplomatic channels, uphold the principles of good neighborliness, and strive for stability and peace for the welfare of their people and region,” SPA said.

Meanwhile United Nations Secretary-General Antonio Guterres spoke separately on Tuesday with Pakistan’s Prime Minister Shebaz Sharif and India’s Foreign Minister Subrahmanyam Jaishankar.

“The Secretary-General also expressed his deep concern at rising tensions between India and Pakistan and underscored the need to avoid a confrontation that could result in tragic consequences. He offered his Good Offices to support de-escalation efforts,” UN spokesperson Stephane Dujarric said. 

The US State Department has also said Washington was in touch with both India and Pakistan while urging them to work toward what it called a “responsible solution.” 

In public, the US government has expressed support for India after the attack but has not criticized Pakistan.

Since the attack, in addition to soldiers shooting over the Line of Control frontier that divides disputed Kashmir between the two nations, India and Pakistan have announced tit-for-tat diplomatic measures that included cancelation of visas and a recall of diplomats. 

New Delhi also suspended a crucial water-sharing treaty with Islamabad and ordered its border shut with Pakistan. In response, Pakistan has closed its airspace to Indian airlines.

Kashmir is disputed between India and Pakistan since 1947, with both ruling it in part but claiming it in full. 


GCC share of emerging-market dollar debt jumps to 35% in Q1 

Updated 47 min 37 sec ago
Follow

GCC share of emerging-market dollar debt jumps to 35% in Q1 

RIYADH: Gulf Cooperation Council countries accounted for over 35 percent of all emerging-market US dollar debt issued in the first quarter of the year— excluding China— marking a sharp increase from around 25 percent in 2024, a new report revealed. 

In its latest analysis, Fitch Ratings forecast that the share is expected to continue rising through 2025 and 2026 as regional governments and corporations increasingly turn to debt capital markets for funding diversification, project finance, and budget support amid fiscal pressures and global economic uncertainty. 

The report stated that the total value of the GCC DCM exceeded $1 trillion across all currencies by the end of the first quarter, marking a 10 percent year-on-year increase.

Issuance reached $89 billion in the first three months of the year, up 11 percent from the previous quarter but down 3 percent compared to the same period of 2024. 

Despite a slowdown in activity since early April, Fitch noted “a healthy pipeline” is developing, supported by strong regional and Islamic investor liquidity. 

“The GCC DCM continues to be fragmented among its six member countries in its maturity, depth, and credit profile, with Saudi Arabia and the UAE the most mature,” the report stated. 

“In Kuwait, Qatar, Bahrain, and Oman, the lack of a link with international central securities depositories such as Euroclear or Clearstream partly hinders foreign-investor participation in the local-currency DCMs,” it added. 

According to the global investment banking firm State Street Global Advisors, other regions saw divergent trends. Brazil led the emerging market in local bond returns with a 13.7 percent gain, driven by currency appreciation and rate hikes. 

In contrast, Turkiye posted an 8.7 percent decline, reflecting political instability and currency depreciation. These shifts underscore varying macroeconomic dynamics across emerging markets. 

In the Kingdom, foreign investors increased their participation in local government debt, accounting for 7.7 percent of the investor base at the end of the first quarter of the year, up from 4.5 percent in 2024. 

Fitch noted that pressure from declining oil prices — forecast at $65 per barrel for 2025 and 2026 due to OPEC+ cuts and trade-related volatility — could widen fiscal deficits and lead to increased borrowing. 

Among the most vulnerable are Bahrain and Saudi Arabia, while Qatar, Kuwait and Abu Dhabi benefit from substantial sovereign wealth assets. Oman is seen as relatively well-positioned fiscally. 

Interest rate expectations are also playing a role in shaping the DCM outlook. Fitch projects the US Federal Reserve to lower rates to 4.25 percent by end of 2025, with GCC central banks expected to follow suit. 

Lower rates could support further issuance, as banks and corporates across the region continue to diversify their funding strategies. 

Sukuk remains a cornerstone of the GCC’s DCM, comprising around 40 percent of the total outstanding by the first quarter of the year. 

The region holds over 40 percent of the global sukuk market, though issuance fell 51 percent year on year in the first quarter to $18.2 billion. 

Conventional bonds rose 29 percent over the same period. Fitch reported that 83.5 percent of Fitch-rated GCC US dollar sukuk are investment-grade, with 57.8 percent in the “A” category and the majority holding stable outlooks. 

Environmental, social and governance financing is also gaining traction in the region, with GCC countries’ ESG DCM surpassing $50 billion in all currencies by the end of the quarter. 

National-level regulatory reforms are also reshaping local markets. In Kuwait, the cabinet’s approval of a long-delayed financing and liquidity law is expected to unlock new borrowing capacity. 

In the UAE, the apex bank continues to advance the Dirham Monetary Framework, with the currency’s share in the domestic DCM growing to 24.9 percent from just 0.5 percent in 2020. 

Sustainable finance is also gaining momentum, with the UAE developing a Sustainable Islamic M-Bills program and Qatar unveiling a sustainable finance framework. 

Despite global uncertainty, Fitch emphasized the resilience of the region’s credit quality, noting that no Fitch-rated GCC sukuk or bonds defaulted in 2024 or the first quarter of 2025.