Iraq oil minister expects exports ceiling to reach 3.8 million bpd in June, 3.85 million bpd in July

(File/AFP)
Short Url
Updated 20 June 2022
Follow

Iraq oil minister expects exports ceiling to reach 3.8 million bpd in June, 3.85 million bpd in July

Iraqi Oil Minister Ihsan Abdul Jabbar said on Sunday that the ceiling for exports will reach 3.8 million barrels per day in June and 3.85 million bpd in July.

He also told reporters that Iraq is 100 percent committed to its participation in OPEC.

The Iraqi oil ministry has said that average crude exports reached 3.3 million bpd in May.

Also, Abdul Jabbar stated that Iraq would implement a ruling from its federal court in February in which it deemed a Kurdish oil and gas law unconstitutional.

In February, Iraq’s federal court deemed an oil and gas law regulating the oil industry in Iraqi Kurdistan unconstitutional and demanded that Kurdish authorities hand over their crude supplies.

Abdul Jabbar added that Iraq's Basra Oil Company will acquire the biggest share in Exxon Mobil's stake in the southern West Qurna 1 oilfield after approving the 2022 budget.

Iraq's oil ministry formally asked to purchase U.S. energy giant.

Exxon's shares in the oilfield in May 2021, which is one of the world's largest with recoverable reserves estimated at more than 20 billion barrels.


Saudi, Egypt step up investment ties with incentives across key sectors

Updated 10 sec ago
Follow

Saudi, Egypt step up investment ties with incentives across key sectors

RIYADH: New incentives to boost trade, investment, and cooperation were discussed at the Saudi-Egyptian Business Forum in Cairo.

Organized by the Federation of Saudi Chambers and Egypt’s General Authority for Investment and Free Zones on May 5, the business forum focused on sectors including industry, real estate development, tourism, and special economic zones, the Saudi Press Agency reported. 

The renewed push comes after Egypt’s parliament ratified a bilateral investment protection agreement with the Kingdom in March, aimed at enhancing capital inflows, creating jobs, and strengthening economic cooperation. 

It also marks a continuation of Saudi financial support for Egypt, including a $5 billion deposit in 2022 that brought total deposits from the Kingdom in the north African country’s central bank to $10.3 billion. 

“Assistant Minister of Investment and CEO of the Saudi Investment Promotion Authority Ibrahim Al-Mubarak stated that the investment protection and promotion agreement between Saudi Arabia and Egypt created a reality for investment cooperation,” the SPA report stated. 

“He emphasized that Saudi Arabia will remain a leading investment partner for Egypt, noting that SIPA has granted 7,000 licenses for Egyptian investments in the Kingdom while trade between the two countries reached SR60 billion ($15.9 billion) in 2024, marking a 29 percent increase,” it added. 

Egypt is working to strengthen its investment climate with policy and infrastructure reforms, said Hossam Heiba, CEO of Egypt’s General Authority for Investment and Free Zones. He noted that a dedicated unit has been created to manage Saudi investment affairs and facilitate project delivery. 

At the forum, officials from the Kingdom highlighted plans to boost investment via special economic zones focused on sectors such as cloud computing, logistics, and automotive manufacturing, as well as shipbuilding, food, mining, and pharmaceuticals. 

Saudi Arabia is also pushing its National Initiative for Global Supply Chains to strengthen regional and global connectivity in key sectors. 

The event builds on momentum from April’s Saudi-Egyptian Industrial Forum in Riyadh, where officials emphasized industrial integration and trade facilitation.

At the time, the Kingdom’s Industry Minister Bandar Alkhorayef said the Saudi Export-Import Bank had completed SR1.3 billion in operations with Egypt, underlining the depth of bilateral ties.


Egypt’s non-oil business activity weakens in April; Lebanon’s PMI ticks higher

Updated 35 min 31 sec ago
Follow

Egypt’s non-oil business activity weakens in April; Lebanon’s PMI ticks higher

RIYADH: Egypt’s non-oil private sector contracted further in April according to S&P Global, while Lebanon saw its economic decline slow across the month.

The north African country’s Purchasing Managers’ Index hit 48.5 in the period, down from 49.2 in March.

This contraction was driven by a reduction in domestic and foreign demand, which caused new orders to fall for the second consecutive month. 

Any figure below 50 indicates a decline, while above that number shows growth.

Lebanon’s PMI report, produced by S&P Global in association with BLOMINVEST Bank, showed a rise in April to 49, up from 47.6 in March. 

Despite this marginal increase, the figure is still lower than earlier this year, when the country registered a healthy reading of 50.6 in January and 50.5 in February. 

The figures for the countries come as PMI figures across the Middle East and North Africa have generally been reflecting the rapid expansion and growth of private firms.

In April, Saudi Arabia’s PMI stood at 55.6, while it was 54 in the UAE and 54.2 in Kuwait. 

Reflecting on Egypt’s decline, David Owen, senior economist at S&P Global Market Intelligence, said: “Business activity weakened for the second month running in April as firms highlighted an additional drag from falling sales.”

He added: “Some companies signalled that weakness in international markets had hit business confidence and spending, amid wider concerns that rising global economic uncertainty and changing trade policy could soften demand across several markets.”

Business optimism up in Egypt

In January, Egypt’s non-oil business activities entered the expansion zone, with the PMI hitting 50.7. It was followed by another healthy month of growth in February, where the PMI stood at 50.1. 

According to the survey, the rate of contraction of non-energy business activity quickened from March and was the fastest seen in four months. 

The report revealed that lower levels of activity and new work led non-oil companies to rein in input purchases for a second month in a row. 

Due to limited business activities, companies in Egypt were also keen to limit headcounts, with the latest data signalling a decline in employment for the third successive month. 

S&P Global further said that input prices in the country’s non-oil economy rose at their fastest pace in four months in April, marking a notable reversal from March, when inflation dropped to a 58-month low. 

“Subdued pressure on input costs in recent months helped firms to steady their own prices in April, which should bring some reassurance that inflation headwinds are easing,” said Owen. 

He added: “Although input costs rose at a much sharper pace over the month, this was mainly attributed to the roughly 15 percent uplift in fuel prices, rather than underlying inflationary pressures.”

Regarding the future outlook, non-oil firms in Egypt expressed more confidence, with optimism ticking up to a three-month high. 

Firms that expressed future confidence hoped that market conditions at home and abroad would strengthen in the coming months. 

In February, global credit rating agency Moody’s affirmed Egypt’s Caa1 long-term foreign and local currency issuer rating with a positive outlook, driven by prospects for improvement in the country’s debt service burden. 

The report said that the positive outlook was given due to the country’s strengthening foreign exchange buffers. 

Moody’s awards a Caa1 rating to countries with poor quality and very high credit risks. 

Private sector activity in Lebanon falls at slower pace

According to the latest report, Lebanon’s private sector economy remained under pressure at the start of the second quarter, as new orders and business activity shrank. 

Purchasing activity and stock levels also dipped slightly in April, while firms’ expectations for the next 12 months fell into pessimistic territory for the first time since November. 

“The BLOM Lebanon PMI recorded 49.0, implying a decline in private sector business activity for the second month in a row, but at a slower pace. This decline was mainly down to the marginal decline in new orders, reflecting weaker export demand,” said Helmi Mrad, senior research analyst at BLOM Bank. 

The latest study also indicated a reduction in the volume of incoming new business received by private sector companies in Lebanon, due to factors including market conditions, security concerns, regional instability, and weak customer purchasing power. 

“The debate regarding the surrendering of Hezbollah’s weapons escalated in the last couple of weeks as some of Hezbollah’s leaders stated that no one can forcefully remove their weapons. In the meantime, Israel’s breaches of the ceasefire agreement continue,” said Mrad. 

He added: “This stalemate is having negative effects on business activity in the short-run, despite the progress made on the enactment of laws essential for financial restructuring.”

S&P Global also highlighted a fractional decline in employment across the Lebanese private sector at the start of the second quarter. 


Flynas to float 30% stake in Saudi IPO after record profit 

Updated 06 May 2025
Follow

Flynas to float 30% stake in Saudi IPO after record profit 

RIYADH: Saudi low-cost carrier flynas plans to float 30 percent of its share capital in an initial public offering on the Kingdom’s main stock market, becoming the country’s first airline to list on Tadawul.

The IPO, approved by the Capital Market Authority, will involve 51.26 million shares, including both newly issued shares and those offered by existing shareholders. Book-building for institutional investors is set to begin on May 12, with retail subscriptions to follow at the end of the month, the company said in a release. 

Flynas will also become the first Gulf airline to go public in nearly two decades, reflecting renewed investor interest in the region’s fast-growing aviation sector and ongoing market liberalization. 

The move comes amid a buoyant IPO environment in the Middle East and North Africa, where regional markets saw a surge in listings and capital-raising activity in early 2025. According to an EY report, 14 IPOs raised $2.4 billion in the first quarter — marking a 106 percent increase in proceeds compared to the same period in 2024. 

Bander Al-Mohanna, CEO and managing director of flynas, said: “This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030. Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.” 

The company said the retail subscriptions for flynas shares will run from May 28 to June 1, following institutional book-building. Share allocation and refunds are scheduled for early June, with trading expected to commence after formal listing procedures are complete. 

Flynas, which launched in 2007, holds a 23 percent share of Saudi Arabia’s domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an on-time performance rate of 88 percent in 2024. 

The carrier plans to use proceeds from the IPO to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations. 

“With an all-Airbus fleet and a significant orderbook, we are poised to meet the increasing air travel demand within, to, and from the Kingdom, supported by our strategic bases in the Kingdom’s busiest international airports,” said Al-Mohanna. 

The offering comes on the back of record financial results in 2024, with flynas reporting revenue of SR7.56 billion ($2.02 billion), a 19 percent year-on-year increase, while earnings before interest, taxes, depreciation, and amortization rose 31 percent to SR2.18 billion. 

Net profit reached SR434 million, up 8 percent from the previous year. The airline’s operational efficiency and expanding network contributed to these results, with passenger numbers growing by 31 percent to 14.7 million in 2024. 

The airline is a key beneficiary of Saudi Arabia’s Vision 2030, which aims to transform the Kingdom into a global aviation and tourism hub. Targets include 330 million passengers and 120 million visitors by 2030. 

“As a leading pan-regional LCC, we are well-positioned to benefit from the robust demand driven by Saudi Arabia’s aviation and tourism strategy, as well as the strong growth in passenger traffic across the GCC and MENA markets,” Al-Mohanna added. 


Saudi Arabia explores helicopter manufacturing partnership with Airbus 

Updated 06 May 2025
Follow

Saudi Arabia explores helicopter manufacturing partnership with Airbus 

RIYADH: Saudi Arabia is exploring joint manufacturing opportunities with Airbus Helicopters as part of its broader effort to localize advanced aviation technologies and strengthen the domestic industry.

The discussions were held during the “Industrial Day” event at Airbus Helicopters’ headquarters in Marignane, France, in the presence of the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef, company executives, Saudi aviation suppliers, and Airbus’s global network of partners. 

The visit marks a key milestone in the Kingdom’s push to become a global hub for the aerospace industry under Vision 2030. 

In a post on X, Alkhorayef said the event “emphasized the importance of localizing technology, strengthening international partnerships, and leveraging the Kingdom’s assets and mineral resources to become a pivotal hub for the aviation industry.”

During the gathering, the Saudi delegation met with Airbus Helicopters CEO Bruno Even, reviewed the company’s advanced aircraft production technologies, and explored potential areas for investment and joint manufacturing in helicopters and related sectors.

Alkhorayef emphasized the strategic importance of the aviation industry to Saudi Arabia’s industrial development plans, calling it one of the most promising advanced sectors for localizing capabilities and developing high-value technologies. 

He added that Saudi Arabia is focused on building a globally competitive manufacturing base, highlighting the country’s commitment to localizing the aviation sector through industrial partnerships and foreign investment. 

The minister said the Kingdom offers robust fundamentals for industrial growth, including mineral wealth, energy resources, skilled labor, and a business-friendly investment environment. 

He stated that Saudi Arabia’s aerospace strategy includes the localization of helicopter production, unmanned aerial vehicles, and the development of maintenance, repair, and overhaul services. 

The market for these capabilities is projected to exceed $10 billion. 

By 2035, the aerospace sector is expected to contribute $88 billion to the Kingdom’s gross domestic product and support more than 377,000 jobs, according to a statement from the ministry. 

During the meeting, Airbus Helicopters executives presented the company’s manufacturing capabilities and expressed interest in deepening collaboration in areas such as assembly, aviation maintenance, and innovation in rotorcraft technology. 

The discussions also addressed opportunities for technology transfer and industrial training to support Saudi Arabia’s ambition of becoming a regional aerospace center. 

The Saudi delegation included senior officials such as the National Industrial Development Center CEO Saleh Al-Sulomi and was part of a broader official visit to France. 

The visit aimed to strengthen bilateral ties and explore strategic cooperation in mining, aviation, and industrial development. Meetings were also held with French government representatives and business leaders to discuss expanding investment flows and industrial partnerships. 

Alkhorayef stressed that the Kingdom’s long-term goal is to diversify its economy by accelerating the growth of high-tech industries and integrating into global manufacturing value chains. 

The nation’s unique competitive advantages — including its strategic location, mineral reserves, energy capacity, and logistics infrastructure — position it as a compelling destination for industrial investment.


Oman sovereign wealth authority in preliminary pact with Algeria for investment fund

Updated 06 May 2025
Follow

Oman sovereign wealth authority in preliminary pact with Algeria for investment fund

CAIRO: The Oman Investment Authority signed a preliminary agreement with Algeria’s Finance Ministry to establish an investment fund worth 115 million Omani riyals ($298.79 million).

The fund, announced by the sultanate’s sovereign wealth fund, will focus on mining, food security and pharmaceutical industries, according to a statement by the OIA.

The agreement was signed on the sidelines of an official visit by Oman’s Sultan Haitham bin Tariq Al-Said to the North African country.

Several agreements were signed during the visit, including a term sheet between Algeria’s state oil and gas firm Sonatrach and Oman’s oil and gas drilling services firm Abraj Energy Services to evaluate setting up a joint venture for oil services.

The term sheet outlines the technical, legal and economic and commercial conditions to evaluate establishing an oil services joint venture company in Algeria between the two companies, Sonatrach said in a statement on Monday.

The joint venture will focus on drilling, well services and management of integrated projects in the Algerian market, according to the statement.