Saudi Mawani partners with Maersk, Refad to operate huge cold storage center in Dammam

King Abdulaziz Port (File)
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Updated 27 December 2022
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Saudi Mawani partners with Maersk, Refad to operate huge cold storage center in Dammam

RIYADH: Saudi Arabia’s food security drive is set to take a huge leap forward after the Kingdom’s port authority signed a deal with Danish shipping company Maersk to operate a 30,000 sq. m refrigerated storage center in King Abdulaziz Port in Dammam city.

According to the Saudi Press Agency, the authority – also known as Mawani — reached an agreement with the firm, as well as Saudi Arabian Refad Real Estate, to run the facility, which is projected to have an annual capacity for 168,000 exported and imported pallets of frozen goods and processed food, as well as dairy products and seasonal fruits.

Moreover, the new center will also be equipped in accordance with international standards for temperature and humidity and greenhouse gas emissions will be minimized by a solar panel plant with a capacity of up to 600 kilowatts.

In addition to this, the center is expected to generate at least 15 percent of the energy requirements at the start of operations.

It will also include a water treatment plant in an attempt to meet local demand without having to opt for external plants; thus, bringing down the number of carbon emissions from the external plans by an estimated 87,600 kilometers per year.

This falls in line within the framework of further strengthening the food security system and supporting the Kingdom’s food imports and exports, 20 percent of which come through the King Abdulaziz Port.

In keeping with the Saudi Green Initiative, the trucks transporting goods between the center and the King Abdulaziz Port station will be replaced with electric ones.

The refrigerated storage services will contribute to elevating the level of logistics services and supply chains in line with the goals of the national strategy for transport and logistics which aims to position Saudi Arabia as a global logistics center and a hub for connecting three continents.

Earlier this month, Mawani and Medlog, the logistics arm of the Mediterranean Shipping Co., signed an agreement to build the first integrated logistics park and a re-export zone at King Abdulaziz Port in Dammam, the Saudi Press Agency reported. 

The deal, worth more than SR100 million ($27 million), will help achieve Mawani’s goals of increasing the number of national re-export logistics centers to 30 and raising the Kingdom’s logistics performance index ranking to 4.01 by 2030. 

Over the past two years, Mawani, the primary developer of the Kingdom’s maritime transport sector, has struck strategic agreements with local and international partners to establish six integrated logistics parks with more than SR2 billion in investments, creating at least 6,000 direct and indirect job opportunities in the first phase.


Oil Updates — crude slips on rising OPEC+ output, despite Canadian supply concerns

Updated 7 sec ago
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Oil Updates — crude slips on rising OPEC+ output, despite Canadian supply concerns

LONDON: Oil prices slipped in Asian trade on Wednesday, weighed down by concerns of increasing OPEC+ output and tariff tension that threatens the global economic outlook, though worries about Canadian supply provided a floor.

Brent crude futures dipped 17 cents, or 0.3 percent, to $65.46 a barrel by 9:44 a.m. Saudi time, while US West Texas Intermediate crude was down 19 cents, or 0.3 percent, at $63.22 a barrel.

Both benchmarks climbed about 2 percent on Tuesday to a two-week high, driven by worries over supply disruption from Canadian wildfires and expectations that Iran would reject a US nuclear deal proposal key to easing sanctions on the major oil producer.

“Despite fears over Canadian supply and stalled Iran-US nuclear talks, oil markets are struggling to extend gains,” said Tsuyoshi Ueno, senior economist at NLI Research Institute, adding that the OPEC+ increases were capping the upside.

Ueno said hopes for progress in US-China trade talks were overshadowed by profit-taking, as investors stayed cautious over the broader economic fallout from tariffs.

US President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating a deal to roll back tariffs and trade curbs.

On Tuesday, the Organization for Economic Co-operation and Development cut its global growth forecast as the fallout from Trump’s trade war takes a bigger toll on the US economy.

Analysts weighed the impact of OPEC+ increases and the Canadian wildfire situation on oil supply.

“The current backwardation in the front of the crude oil futures curve is a result of low inventory balances observed since the beginning of the year,” BofA analysts told clients in a note.

“In contrast, the contango further out on the curve suggests the market anticipates future slack due to OPEC’s planned supply increases and a broader deceleration of the global economy.”

Markets were still expecting the wildfires that have swept Canada since May to crimp supply, despite a temporary respite from wet weather.

“However, this relief could be short-lived amid forecasts for drier and warmer weather toward the end of this week,” ING analysts said in a client note.

Some analysts expect the loss in Canadian supply to offset more than half the increases next month planned by OPEC+.

“Estimates suggest around 350,000 barrels per day have been affected and shut in,” said SEB analyst Ole Hvalbye, referring to the impact of the wildfires.

“To put this in context, the disruption exceeds three-quarters of the volume OPEC+ agreed to add to the market in July.” 


Lebanon embraces digital transformation as key to reform and recovery

Updated 04 June 2025
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Lebanon embraces digital transformation as key to reform and recovery

  • Aoun calls it a ‘sovereign decision’ to combat corruption and modernize governance

BEIRUT: Lebanon has pledged to pursue comprehensive digital transformation, with President Joseph Aoun framing it as the nation’s best hope to tackle corruption, moderne governance, and engage its skilled diaspora in rebuilding efforts.

Speaking at the “Smart Government, Diaspora Experts for Lebanon” conference in Beirut on June 3, Aoun described the initiative as a “sovereign decision to build a better future.”

The event, organized by the Lebanese Executives Council, aimed to connect Lebanon’s global talent pool with efforts to revitalize both public and private sectors.

The conference’s core themes included smart governance, public sector reform, and private sector collaboration, all driven by digital innovation. Aoun emphasized that Lebanon must abandon outdated and corrupt administrative structures in favor of efficient, transparent systems.

“Digital transformation is not a technical choice. Digitalization is not just a government project; it is a national project.” He also announced Lebanon’s application to join the Digital Cooperation Organization, a global body founded in 2020 to promote inclusive growth in the digital economy.

Aoun criticized systemic corruption that forces citizens to navigate bureaucracy through bribery or political favors. He highlighted the need for a government that serves all Lebanese equally, free from sectarian or partisan influences.

“We want Lebanon to open up to regional and international partnerships and to be eligible for foreign investments. This goal is an absolute necessity, indispensable and unavoidable,” Aoun said. “The time has come for them (the diaspora) to achieve it for their homeland and in their homeland.”

The day-long conference brought together ministers, private sector leaders, and diaspora experts for panel discussions on digitizing Lebanon’s institutions. Topics included the creation of a national digital ID, policy harmonization, and leveraging technology to reconstruct public services.

In an interview with Arab News, LEC President Rabih El-Amine highlighted the importance of engaging the Lebanese diaspora.

“We know by fact that diaspora is willing to help, but they don’t have the medium to offer this help, and we know by fact that the government needs this help, but they don’t know how to reach the diaspora,” he said.

El-Amine stressed that despite weak governance, Lebanon’s private sector and diaspora have helped sustain the country. However, implementing modern laws and digital systems is now critical. He called the digital ID system a foundational step toward enabling services like passport renewals and license issuance.

“This is probably the starting point. But I think the biggest challenge for us is how we can make the government and the parliament work together in order to issue modern laws for this system to take place,” he added.

Hajar El-Haddaoui, director general of the DCO, expressed strong confidence in Lebanon’s digital potential, citing the country’s talent pool and expansive diaspora.

“We trust that Lebanon does have all the ingredients to succeed during this digital economy transformation,” she told Arab News.

She said the DCO’s support will focus on investment, public-private partnerships, and capacity-building, including the Digital Economy Navigator program, which helps countries assess and close gaps in digital readiness.

El-Haddaoui underscored the importance of aligned policies, strong infrastructure, and openness to international cooperation.

“Any digital economy or digital transformation needs harmonization of policies. That’s really important and critical. Working on a regulation and standard of regulation is really one of the pillars of successful digital transformation,” she said.

Speaking to Arab News, Fadi Makki, Lebanon’s minister of state for administrative development affairs, outlined key reforms to upgrade the country’s administrative structures.

“We’re far behind in digital readiness. We’re trying to catch up through digital transformation, skilling, and reskilling programs,” he said.

Makki explained that Lebanon lacks planning and performance monitoring units that are standard in functional governments. He proposed modernizing human resources and encouraging the private sector to deliver services, while the government ensures oversight.

“We don’t want to compete with them (the private sector), but at the same time, we want to create opportunities for them while ensuring we provide the necessary oversight like any government,” he told Arab News..

“One of the missing functions in government is planning and performance monitoring. We don’t have that. So, part of our work is creating these basic units, not just centrally but eventually in every ministry. Without them, we’re building on weak foundations,” he added.

The event also featured remarks from Lebanese American University’s Chaouki Abdallah and panels with Minister of Technology and Artificial Intelligence Kamal Shehadi, along with global figures like Jad Bitar of the Boston Consulting Group.

In closing, Prime Minister Nawaf Salam thanked all participants for their contributions and reaffirmed the government’s resolve.

“Digital transformation in Lebanon is not a luxury but a necessity and a reform,” he said. “It directly serves the citizens, reduces corruption, and enhances the quality of life. It is also a prerequisite for economic growth.”

Salam called for full inter-ministerial coordination, asserting, “Lebanon cannot remain outside the digital world or on its margins.”

He concluded: “We are determined to be part of the regional and global digital economy and to reconnect Lebanon with the chains of knowledge and production in the 21st century.”

As Lebanon continues to navigate a complex political and economic crisis, the conference marked a clear call for reform. The message from both domestic and diaspora leaders was unambiguous: digital transformation is not only possible—it is imperative.


Saudi Arabia’s non-oil sector growth continues in May as PMI climbs to 55.8

Updated 03 June 2025
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Saudi Arabia’s non-oil sector growth continues in May as PMI climbs to 55.8

RIYADH: Saudi Arabia’s non-oil private sector registered an improvement in operating conditions in May, as the Riyad Bank Purchasing Managers’ Index rose to 55.8, signaling continued economic expansion, a new analysis showed.

According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the index edged up from 55.6 in April, remaining well above the 50 mark that separates growth from contraction.

However, the figure remained below the recent high of 60.5 recorded at the beginning of 2025.

The latest data pointed to a sharp increase in new order volumes, which rebounded after weakening in April.

Companies linked the increase to stronger customer demand, improved sales performance, industrial development, and marketing efforts. Foreign orders also rose, but at the slowest pace in seven months.

“Saudi Arabia’s non-oil economy maintained solid momentum in May, with the PMI rising slightly to 55.8 from 55.6. While the pace of output growth eased to its softest since September 2024, overall activity remained robust,” Naif Al-Ghaith, chief economist at Riyad Bank, said.

He added: “Firms reported improvements in demand, new project starts, and greater labor capacity as key drivers. This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter.”

The survey showed that output continued to grow, though at a softer rate for the fourth straight month. The construction sector recorded the strongest rises in both output and new business.

Employment in the non-oil sector rose sharply in May, with the increase in staffing levels among the fastest seen in over a decade. Surveyed businesses attributed this to expansion efforts and higher output needs.

“Looking ahead, sentiment among non-oil firms has strengthened visibly. Business expectations looking forward reached their highest level since late 2023. Hiring momentum remained strong as companies expanded teams to support output growth, particularly in operations and sales,” Al-Ghaith said.

Meanwhile, purchasing activity surged to a 14-month high. However, firms showed greater caution toward stockpiling, resulting in a slower accumulation of inventories compared to April.

The report also indicated that input prices rose sharply, mainly due to increased supplier charges for raw materials.

Wage-related inflation, however, eased. Despite cost pressures, companies reduced their selling prices, largely driven by a decline in service sector charges and competitive market conditions.

The survey data were collected from around 400 private sector companies across the manufacturing, construction, wholesale, retail, and services sectors.


Closing Bell: Saudi main index closes in red at 10,832 

Updated 03 June 2025
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Closing Bell: Saudi main index closes in red at 10,832 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 17.66 points, or 0.16 percent, to close at 10,832.43. 

The total trading turnover of the benchmark index was SR3.55 billion ($946 million), with 123 of the listed stocks advancing and 106 declining.  

The Kingdom’s parallel market Nomu gained 65.84 points to close at 27,049.84.  

The MSCI Tadawul Index edged down by 0.08 percent to 1,383.41.  

The best-performing stock on the main market was Fawaz Abdulaziz Alhokair Co., with its share price surging by 6.71 percent to SR17.50.  

The share price of Naseej International Trading Co. also rose by 6.14 percent to SR83.  

Saudi Research and Media Group also saw its stock price rising by 5.92 percent to SR150.40.  

Conversely, the share price of United Carton Industries Co., dropped by 3.98 percent to SR41.  

On the announcements front, Meyar Co. said that it received a contract worth SR1.67 million from the Municipality of Unaizah.  

In a Tadawul statement, the company revealed that the agreement includes the supply of curbs stones and interlock tiles to the municipality. It added that there are no related parties involved in the deal.  

The share price of Meyar Co. edged up by 0.93 percent to SR54.  

Dar Almarkabah for Renting Cars Co. said that it signed a chauffeur-driven car rental contract valued at SR6.98 million with Wareed Health Medical Co.  

In a Tadawul statement, the company revealed that the contract period is valid for 24 months, adding that the impact of the deal will be visible in the firm’s financials during the second quarter of this year.  

The share price of Dar Almarkabah for Renting Cars Co. was unchanged at SR2.47.  


Qatar records $137m budget deficit in Q1, ending 3-year surplus streak

Updated 03 June 2025
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Qatar records $137m budget deficit in Q1, ending 3-year surplus streak

RIYADH: Qatar posted its first budget deficit in more than three years — a 500 million Qatari riyal ($137 million) shortfall in the first quarter of 2025, the Ministry of Finance reported. 

Ministry figures show the same period last year registered a 2.06-billion-riyal surplus. 

This comes as Doha undertakes a cautious fiscal recalibration mid-way through its Third National Development Strategy, relying on conservative oil-price assumptions, program-based budgeting, and a long-anticipated value-added tax rollout to diversify revenue. 

In a series of posts on X, the ministry stated: “The State Budget recorded a deficit of QR 0.5 bn in Q1 2025, and the deficit was financed through debt instruments.”  

It added: “The value of contracts with foreign companies reached QR 1.5 billion in the first quarter of 2025, representing a 50 percent increase compared to the same quarter last year.” 

The budget figures showed that revenue fell 7.5 percent year on year to 49.4 billion riyals, with hydrocarbons supplying 42.5 billion riyals while non-oil receipts held at 6.9 billion riyals. 

Spending slipped 2.8 percent to 49.9 billion riyals, comprising 6.9 billion riyals for salaries and wages, 18.5 billion riyals in other current costs, and a combined 14.3 billion riyals for major and minor capital projects. 

Despite the tighter envelope, procurement remained brisk: state entities awarded about 6.4 billion riyals in tenders and auctions, including 1.5 billion riyals to overseas contractors — up 50 percent on the same period last year. 

The ministry’s Sector Business Index showed the busiest spending concentrations in municipality and environment, health, energy and the General Secretariat of the Council of Ministers. 

The International Monetary Fund’s February 2025 assessment said Qatar’s economy was moving past the post-World Cup slowdown. 

Real gross domestic product is expected to grow about two percent in 2024-25, then average roughly four-and-three-quarters percent once the planned expansion of liquefied natural gas output and the early reforms of the Third National Development Strategy take effect. 

Inflation should fall to 1 percent this year and settle near 2 percent over the medium term, it added. 

Lower hydrocarbon prices cut the 2023 current-account and budget surpluses to 17 percent and five-and-a-half percent of national output, with a further easing underway; however, both balances should remain positive as gas export volumes rise. 

Banks remain sound, holding capital equal to about one-fifth of risk-weighted assets, while problem loans stay below four percent and are well provisioned.  

The IMF urged Doha to introduce a value-added tax, adopt a medium-term budget anchor, sharpen the efficiency of public spending, deepen financial-sector oversight, and accelerate private sector-led diversification to secure long-run resilience.