Putin asserts strong, sovereign Russia against sanctions ‘blitzkrieg’

Russian President Vladimir Putin gives a speech at a plenary session of the Saint Petersburg International Economic Forum in Saint Petersburg on June 17, 2022 (AFP)
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Updated 25 May 2023
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Putin asserts strong, sovereign Russia against sanctions ‘blitzkrieg’

  • President accuses West of denying Russia its sovereign rights
  • Speech restates determination to take Donbas out of Ukraine
  • Putin says Russia is strong, and Western sanctions will rebound

President Vladimir Putin asserted Russia’s strength and resilience on Friday against a Western world that he accused of colonial arrogance and trying to crush his country with an economic “blitzkrieg” of sanctions, Reuters has reported.

Addressing the St. Petersburg International Economic Forum, a showcase event being held this year with almost no Western participation, he returned time and again to the theme of Russia’s sovereignty in a new global order:

“We are strong people and can cope with any challenge. Like our ancestors, we will solve any problem, the entire thousand-year history of our country speaks of this.”

Putin drew applause when he reaffirmed his determination to continue the “special military operation” in Ukraine that has unleashed a barrage of Western economic sanctions.

He said the main aim was to defend “our” people in the largely Russian-speaking Donbas region of eastern Ukraine — a justification that Kyiv and the West dismiss as a baseless pretext for a campaign that has already cost

thousands of lives and led to the occupation of parts of Ukraine far beyond the Donbas.

In his 73-minute speech, Putin said Russian soldiers were also fighting to defend Russia’s own “rights to secure development.”

“Against a backdrop of increasing risks for us and threats, Russia’s decision to conduct a special military operation was forced — difficult, of course, but forced and necessary.”

’New World Order' 

A recorded video address by Chinese President Xi Jinping praising Chinese-Russian cooperation underlined Putin’s contention that an era of American domination is at an end.

Putin said the UnS considered itself “God’s emissary on Earth,” and that Russia was taking its place in a new world order whose rules would be set by “strong and sovereign states.”

He called the campaign in Ukraine the action of a “sovereign country that has the right to defend its security,” and accused the West of “active military appropriation of Ukrainian territory.”

But he appeared to acknowledge the scale of destruction being wrought, while absolving Russian forces.

In a two-hour question-and-answer session after his speech, he evoked Stalingrad, the Soviet city razed by attritional urban warfare in World War Two, now renamed Volgograd.

“We must not turn those cities and towns that we liberate into a semblance of Stalingrad,” he said. “This is a natural thing that our military thinks about when organizing hostilities.”

Putin also said strikes against residential areas were crimes against humanity.

Ukraine says Russian forces are responsible for thousands of civilian deaths, the obliteration of towns such as Mariupol, and the displacement of a third of its peacetime population.

Russia denies attacking civilian targets, and says allegations that it has perpetrated war crimes are based on Ukrainian and Western fabrications.

Cyber Attack 
Shortly before Putin was due to begin speaking, the Kremlin said a “denial of service” cyberattack had disabled the Forum’s accreditation and admission systems, forcing him to delay the scheduled start by an hour.

Putin dismissed suggestions that Russia was responsible for a surge in global prices of basic foodstuffs with the phrase that a failure to export five or six tons of Ukrainian wheat and six or seven tons of corn “doesn’t change the weather.”

He said Russia was ready to guarantee the transit of ships exporting Ukrainian grain across the Black Sea, but that Ukraine had five or six alternative routes — through Belarus, Poland or Romania.

Ukraine has been using much more cumbersome road, rail and river routes to try to get around the closure notably of Odesa, its main deep-sea port, where it fears a Russian attack.

But their capacity is at best a third of the more than 6 million tons a month of grain and oilseeds that were shipped from Odesa in the past. 


Growth of Saudi banking sector accelerated by diversification initiatives: Moody’s

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Growth of Saudi banking sector accelerated by diversification initiatives: Moody’s

RIYADH:Saudi Arabia’s efforts toward economic diversification are fueling the growth of its banking sector, with industries such as construction and tourism offering appealing lending opportunities, according to a recent analysis.

In its latest report, the US-based credit rating agency Moody’s said that the performance of the banking sector’s loan portfolio has continued to improve, particularly following the rollout of the Kingdom’s national diversification agenda aimed at reducing dependence on hydrocarbon revenue.

Emphasizing the banking sector’s growth, the Saudi Central Bank, also known as SAMA, reported that the aggregate profit before zakat and tax of banks operating in the Kingdom reached an unprecedented SR7.83 billion ($2.1 billion) in July, reflecting a 23 percent annual increase.

“We expect this trend to persist over the coming 12 to 18 months, further boosting the non-hydrocarbon economy where banks largely operate. Saudi borrowers’ repayment capacity is also supported by government policies and reforms,” said Lea Hanna, an analyst at Moody’s.

She added: “Saudi banks are enjoying lower delinquencies in their loan portfolios, while provisions cover nonperforming loans fully.”

According to Moody’s, Saudi Arabia’s real non-hydrocarbon gross domestic product is expected to grow robustly, by approximately 5.5 percent in both 2024 and 2025, driven by government investments in large infrastructure projects that will increase demand for credit during these years.

The agency also highlighted that construction, along with sectors such as tourism and entertainment, will play a vital role in shaping the growth of Saudi banks’ loan books.

“Although the contribution of giga projects, such as Red Sea and Qiddiyah, to total corporate lending will remain significant, diversification into new sectors, such as tourism, entertainment and renewable energy provide attractive lending opportunities,” said Moody’s.

The report further indicated that lending to small and medium enterprises in Saudi Arabia has increased, although it still represents a small fraction of the overall sector loan book.

Moody’s also pointed out potential risks that could impact the asset quality of banks, including a prolonged period of low oil prices and possible changes in government policy.

“They (banks in Saudi Arabia) remain exposed to downside risks should there be a reversal in economic momentum or a relaxation in authorities’ active support in managing system asset risks,” said Hanna.

In July, another report from Moody’s stated that Saudi banks are likely to see their client base expand due to government-backed economic diversification efforts that are promoting innovation and boosting productivity in the Kingdom.

The analysis also noted that Saudi Arabia and Oman were the top two Gulf Cooperation Council countries with the lowest volatility in non-oil sector expansion from 2020 to 2023.


UAE mandates private firms to reserve board seats for women

Updated 13 min 24 sec ago
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UAE mandates private firms to reserve board seats for women

JEDDAH: The UAE has mandated private joint-stock companies to reserve at least one board seat for women, reinforcing the nation’s commitment to gender equality in leadership.

The Ministry of Economy issued this new directive, which will take effect once the current board terms expire, aligning with the Gulf state’s goal of enhancing global competitiveness. This initiative highlights the leadership’s dedication to empowering women and advancing sustainable development goals.

The ministerial resolution, which regulates the governance and operations of private joint-stock companies, builds on a similar mandate introduced for public joint-stock firms in 2021. This earlier measure has yielded positive results by improving institutional performance and economic outcomes.

The UN Development Program recently announced that the UAE has climbed to 7th place in the 2024 Gender Inequality Index, a significant rise from 49th in 2015 and 11th in 2022. This announcement was made during the 68th session of the Commission on the Status of Women in New York.

In 2015, the Gulf country established its Gender Equality Council, a federal entity tasked with developing and implementing the gender equality agenda. The council aims to close the gender gap across all government sectors, positioning the UAE as a global model for equality.

The UAE also leads the world in women’s parliamentary representation, with women occupying 50 percent of positions in the Federal National Council. Additionally, women are highly represented in the labor market, specialized professions, and emerging fields, according to the UAE government portal.

Minister of Economy Abdullah bin Touq Al-Marri emphasized that, under the guidance of the UAE’s leadership, the country is committed to enhancing women’s contributions across various fields, particularly in economic development.

“The decision will reinforce the UAE’s vision to enhance gender balance, empowering women in the business sector and increasing their presence in leadership and decision-making roles,” he was quoted as saying by the UAE’s official news agency.

The minister added that the initiative will further strengthen the Gulf nation’s global competitiveness and its position as a leader in gender equality.

Al-Marri pointed out that women in the UAE have consistently demonstrated their capabilities over the past decades, making significant contributions to the business, financial, and investment sectors.

“Today, they are indispensable partners in economic growth and vital to the UAE’s global competitiveness. This decision will bring added value to private joint-stock companies, enhancing their institutional performance by drawing on the insights and experiences of successful businesswomen in the country,” he said.

He expressed his deep gratitude to Sheikha Manal bint Mohammed bin Rashid Al-Maktoum, president of the UAE Gender Balance Council, for her efforts to enhance women’s participation in the economy.

Mona Ghanem Al-Marri, vice president of the council, emphasized the strategic collaboration between the Ministry of Economy and the council, noting that the ministry’s decision will significantly advance gender balance.

She added that the decision reflects the productive partnership between the ministry and the council, underscoring the country’s unwavering commitment to empowering women economically and increasing their participation in the workforce.

The Ministry of Economy announced that the implementation of this decision will commence in January 2025 and urged relevant companies to integrate this requirement into their future board restructuring plans.


Closing Bell: Saudi main index closes in green at 11,920 

Updated 16 min 32 sec ago
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Closing Bell: Saudi main index closes in green at 11,920 

RIYADH: Saudi Arabia’s Tadawul All Share Index surged on Wednesday, gaining 35.28 points, or 0.30 percent, to close at 11,920.94.   

The total trading turnover of the benchmark index was SR5.65 billion ($1.50 billion), as 140 of the listed stocks advanced, while 81 retreated. 

The MSCI Tadawul Index increased by 6.50 points, or 0.44 percent, to close at 1,486.63. 

The Kingdom’s parallel market Nomu slipped, losing 20.70 points, or 0.08 percent, to close at 25,596.22. This comes as 34 of the listed stocks advanced, while 35 retreated.  

The best-performing stock of the day was Red Sea International Co., with its share price surging by 9.96 percent to SR53. 

Other top performers included Alistithmar AREIC Diversified REIT Fund, which saw its share price rise by by 8.02 percent to SR10.10, and Batic Investments and Logistics Co., which saw a 5.22 percent increase to SR3.63. 

The worst performer of the day was Gulf Insurance Group, whose share price fell by 2.59 percent to SR32. 

Tanmiah Food Co. and Walaa Cooperative Insurance Co. also saw declines, with their shares dropping by 2.56 percent and 2.55 percent to SR144.40 and SR22.20, respectively. 

On the announcement front, Saudi Fransi Capital announced the successful retail offering for Almajed for Oud Co.’s initial public offering, which saw an 821.33 percent oversubscription on Sept. 15.  

Priced at SR94 per share, the retail tranche attracted 236,127 investors, generating SR1.16 billion in demand, the company said in a Tadawul statement. 

It explained that each retail investor will receive a minimum of six shares, with additional shares allocated on a pro-rata basis. The institutional tranche will be reduced to 6 million shares, or 80 percent of the total offering. 

Savola Group has concluded its rump offering, reaching 814.2 percent subscription. A total of 35,102,497 unsubscribed shares were sold, generating proceeds of SR943.45 million. The average sale price per share was SR26.88, according to an official statement. 

In total, SR592.43 million will be distributed as net compensation to rights issue and fractional share owners. Share deposits into shareholders’ accounts will be completed by Sept. 26. The firm said that any excess proceeds beyond the offer price will be distributed to entitled parties by Oct. 13. 


Saudi Arabia’s PIF launches company to foster immersive heritage experiences

Updated 21 min 57 sec ago
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Saudi Arabia’s PIF launches company to foster immersive heritage experiences

RIYADH: Saudi Arabia’s Public Investment Fund has launched the National Interactive Entertainment Co. to create immersive storytelling experiences rooted in the Kingdom’s heritage and Islamic history.

The newly established firm, known as QSAS, will focus on developing, owning, and operating world-class interactive exhibitions throughout the Kingdom, according to a statement.

This initiative aligns with the Kingdom’s goal of balancing the preservation of cultural heritage with the creation of thriving business opportunities. It also supports PIF’s strategy to strengthen the local private sector through partnerships in construction, event management, and technology.

Mishary Al-Ibraheem, head of entertainment, leisure, sports, and education at PIF, said: “The tourism and entertainment sector is a strategic local priority for PIF, as we focus on enriching the tourism and entertainment experience.”  

He added: “QSAS will contribute to strengthening Saudi Arabia’s position as an attractive tourist destination with storytelling inspired by history, culture and heritage, and will invest in local talent to build new economic activity focused on providing interactive experiences; a sector which is witnessing significant global growth.”  

The statement also revealed that QSAS will play a key role in localizing knowledge and technology within the private sector content creation industry, with expectations to generate over 11,000 direct and indirect jobs by 2030.

The firm plans to offer a variety of interactive exhibitions, including both permanent and touring displays, designed to provide multisensory immersive experiences that enhance local culture and boost the tourism sector.

This initiative is part of the Pilgrim Experience Program, a Vision 2030 project aimed at accommodating 30 million pilgrims by 2030. It also complements the Ministry of Tourism’s National Tourism Strategy, which aims to attract 150 million visitors annually by the same year.


Saudi Arabia needs EV charging stations every 100 km to support growth, says industry executive

Updated 24 min 9 sec ago
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Saudi Arabia needs EV charging stations every 100 km to support growth, says industry executive

RIYADH: Saudi Arabia’s electric vehicle ecosystem requires charging stations every 100 km along highways to support its growth, said a senior executive.  

Speaking to Arab News at the EV Auto Show in Riyadh, Mohamed Al-Mubarak, general manager of Charging Arabia, emphasized that the widespread availability of refueling infrastructure is essential to reducing range anxiety, ultimately benefiting the e-mobility sector. 

This comes as Saudi Arabia aims to convert 30 percent of Riyadh’s vehicles to electric by 2030, as part of a broader strategy to cut emissions in the capital by 50 percent and achieve carbon neutrality by 2060.

Al-Mubarak said: “It is important to have it (EV charging stations) on highways, so people can travel with their cars. As you know, the electric car ranges between 300 to 400 km, now up to 500 km. At least every 100 km, there should be a charging station.”  

Charging Arabia, which operates in Europe, Asia, Africa, and Saudi Arabia, focuses on EV charging station operations, AC and DC charger installations, and mobile charging services. 

He said the company is concentrating on the Saudi market because “the government is helping people in the EV charging business.”  

Al-Mubarak added: “Although there are only 1,000 cars in the market, it is not a big number. But it’s on the right track, and I think it’s going with the vision. By 2030, I think there will be thousands of electric cars in Saudi.” 

He revealed that the company has partnered with Saudi-based charging manufacturer Alfanar to enhance the Kingdom’s EV infrastructure. 

“As a charging station operator, we need to have chargers everywhere — public places, petrol stations, shopping malls, and public parking — so people can charge their cars,” said Al-Mubarak. 

Currently, Charging Arabia operates two stations in Riyadh and plans to expand with over 100 facilities in the Eastern Province. Al-Mubarak also identified electricity load management as a challenge as the number of EVs grows. 

Al-Mubarak suggested that the government could implement a scheme to help individuals purchase home AC chargers, allowing them to charge their cars overnight and wake up with a fully charged vehicle.