Investment opportunities to be center stage at Arab-British summit in London

Arab business and leaders seek closer ties with the UK and benefit from the huge potential on both sides. File photo
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Updated 19 November 2023
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Investment opportunities to be center stage at Arab-British summit in London

  • E-commerce, finance and sustainable tourism to be main highlights of the annual event

LONDON: Stakeholders from across the Arab world and the UK are set to gather in London for the third Arab-British Economic Summit, of which Arab News is a media partner.

Organized by the Arab-British Chamber of Commerce at the Hilton Metropole, government officials, senior executives, thought leaders and decision-makers will share ideas and debate trade and emergent investment opportunities in tech-based industries.

Among the industries highlighted by the event, set for Nov. 20, are e-commerce, finance, franchising and sustainable tourism.

The summit comes amid an evolution in Gulf-British trade, with the Lord Mayor of the City of London, Nicholas Lyons, noting an ever-widening pool of opportunities, and ABCC CEO Bandar Ali Reda keen to stress the “ambitious vision” of Arab governments.

“Many thousands of UK companies and businesspeople are looking keenly to the Gulf to grow their businesses,” Ali Reda told Arab News.

“In looking to the Gulf, UK businesses are attracted by the dynamism of its economies and the growing opportunities opening up as a result of the spectacular transformation we’re witnessing across the Gulf.”

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Organized by the Arab-British Chamber of Commerce at the Hilton Metropole, government officials, senior executives, thought leaders and decision-makers will share ideas and debate trade and emergent investment opportunities in tech-based industries.

The summit comes amid an evolution in Gulf-British trade, with the Lord Mayor of the City of London, Nicholas Lyons, noting an ever-widening pool of opportunities.

He said this transformation is driven by both a vision and “determined forward thinking” of Gulf leaderships aimed at securing future sustainable prosperity for their peoples.

That effort has resulted in both seismic population growth — doubling across the Gulf Cooperation Council member states from 26 million in 1995 to more than 52 million at last count in 2021 — and rapid industrial development.

 Ali Reda said the changes have rendered “most sectors open to foreign investment, involvement of the private sector and business partnerships.”

He added that while questions remain over the ease of travel and availability of visas for Arabs wishing to bring their expertise to the UK, the ABCC has held briefings on the electronic travel authorization rules being introduced by the Home Office.

“We can expect to see growing opportunities for Arab tech entrepreneurs within the UK’s innovative sector and vice versa,” he said. 

“The ABCC is playing its role in facilitating closer partnerships and engagement in these areas that are drivers of the economy of the future.

“Indeed, one of the senior civil servants with responsibilities for the ETA is speaking at the summit.”

That flow of expertise comes with a sense that the Arab world is migrating from purely a consumer to a contributor across a range of fields.

Ali Reda said there is “great expertise and talent” in the Gulf regarding artificial intelligence, “and youth in the Arab world are particularly inspired by the opportunities presented by AI.”

He added: “Policymakers are keeping ahead of the game by adopting new regulatory frameworks that will enable the benefits of AI to be made available to wider sections of the population, while not losing sight of the challenges that AI presents.”

With Ali Reda noting its already “hugely transformative” effect on Arab economies, AI will be featured in the summit’s third session.

As Arab economies become stronger and more diverse, he said he expects to see the continuing evolution and emergence of new opportunities, describing the possibilities as “immeasurable.” 

He added: “Both sides can gain a great deal from each other as each side has much to offer. In many ways, our economies complement each other.”

Ali Reda said: “The core bilateral relationships between the UK and the Arab world are today founded on greater equivalence, synergies and reciprocity.

“It’s a more diverse partnership, and not simply about buying and selling and boosting exports, as it possibly was in the past.”

He acknowledged the UK’s participation in growing the GCC’s domestic talent pool, pointing to the many top British universities, schools and educational establishments that have set up branches in the Gulf and cater to the region’s growing student base.

“English qualifications remain very well regarded and are in increasing demand across the Arab world,” he said.

“UK universities are attracting increasing numbers of students from the Gulf countries to come and complete their studies in the UK. These trends of collaboration and partnership seem unlikely to diminish.”


Oman’s oil exports hit 230.6m barrels by September: official data

Updated 7 sec ago
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Oman’s oil exports hit 230.6m barrels by September: official data

JEDDAH: Oman’s oil exports totaled approximately 230.6 million barrels by the end of September, averaging $82.60 per barrel and accounting for 84.6 percent of total production, which exceeded 272.4 million barrels.

According to statistics from the country’s National Center for Statistics and Information, as reported by the state news agency, oil exports increased by 0.1 percent compared to September 2023, when total exports were nearly 230.3 million barrels. This rise occurred alongside a 5.1 percent decrease in production, which was recorded at over 287 million barrels during the same period last year.

Total crude oil production declined by 6.7 percent, reaching over 208.5 million barrels by the end of September, while condensate production saw a slight increase of 0.6 percent, totaling more than 63.86 million barrels. The NCSI noted that the average daily oil production was 994,200 barrels through the end of September.

The World Bank forecasts Oman’s economic growth will rise to 2.7 percent in 2025 and 3.2 percent in 2026, driven by a rebound in oil and gas production as the Duqm refinery reaches full capacity, alongside a revival in agricultural and construction activities and a strong services sector.

The report also indicated that inflation is expected to remain low, averaging 1.3 percent from 2024 to 2026, largely due to the country’s currency being pegged to the US dollar and regulated fuel prices.

According to the Oman News Agency, China was the top importer of Omani oil, with imports totaling approximately 219.6 million barrels, marking a 4.5 percent increase compared to September 2023.

Japan followed with nearly 4 million barrels, a decline of 46.4 percent, while South Korea imported around 3.8 million barrels, an increase of 31.8 percent. Exports to India totaled 2,002,000 barrels, down 26.3 percent.

Overall, Oman’s oil exports during the first half of 2024 increased by 0.3 percent to 153,362,300 barrels, with the average price per barrel at $82.20, according to the NCSI.

Oil exports constituted 84.6 percent of the total oil production volume, which was over 181 million barrels, down 5.3 percent from 191.4 million barrels in the same period in 2023. Total crude oil production also fell by 7.4 percent to over 138.7 million barrels by the end of the first half of 2024, while oil condensate production rose by 2.3 percent to 42.5 million barrels. The average daily oil production at that time was reported at 842,700 barrels. During this period, China remained the leading country importing oil from Oman, with nearly 148 million barrels.


Saudi Arabia’s PIF to acquire 54% stake in MBC Group

Updated 03 November 2024
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Saudi Arabia’s PIF to acquire 54% stake in MBC Group

  • Share price of MBC Group increased by 9.98% to SR45.75
  • Its net profit for the second quarter witnessed a rise of 66.5% to SR116.4 million

RIYADH: Saudi Arabia’s sovereign wealth fund is set to acquire a 54 percent stake in media giant MBC Group for SR7.46 billion ($1.99 billion). 

In a bourse filing, MBC Group, listed on the Kingdom’s main market, said that it was notified by Istedamah Holding Co., one of its major shareholders, on the finalization of a sale and purchase agreement with the Public Investment Fund on Nov. 1.

According to the agreement, Istedamah will sell its entire stake in MBC, valued at 179.55 million shares, representing 54 percent of the company’s total capital, to PIF through a private transaction. 

Touted to be Saudi Arabia’s economic engine, PIF is spearheading the Kingdom’s Vision 2030 journey by making strategic investments in various sectors. 

Some prominent telecom, media, and technology firms backed by the wealth fund include Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., Elm Co., and Saudi Telecom Co. 

“The completion of the transaction is subject to a number of conditions, including obtaining the necessary approvals and non-objections that might be required from the relevant entities,” said MBC Group. 

It added: “The transaction will be executed as a negotiated deal in accordance with the Saudi Exchange’s trading and membership procedures at the completion of the transaction.” 

Followiing the announcement, the share price of MBC Group increased by 9.98 percent to SR45.75 as of 11:.37 a.m. Saudi time. 

Established in 1991 and formerly known as the Middle East Broadcasting Center, MBC Group currently owns several television channels, including Al Arabiya, MBC Max, and MBC Bollywood, as well as the OTT platform Shahid. 

In August, the media giant said its net profit for the first six months of this year surged 359.8 percent to SR237.8 million compared to the same period in 2023. 

The company added that its net profit for the second quarter witnessed a rise of 66.5 percent to SR116.4 million, compared to the same period of the previous year. 

PIF is set to reach $2 trillion in assets under management by 2030, propelling it from fifth to second place globally among sovereign wealth bodies, according to a report by Global SWF in April. 

As per SWF’s release, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals in 2023, representing a 33 percent increase from the prior year.

In March, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth-largest global sovereign wealth fund. 


Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism

Updated 03 November 2024
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Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism

JEDDAH: Saudi Arabia has made a remarkable leap, climbing 15 places to rank 12th in global tourist spending for 2023, according to the latest UN Tourism report. This is the largest jump among the top 50 countries.

The ranking follows a September report from the UN Tourism, which highlighted the Kingdom’s leadership among G20 nations with a 73 percent increase in international visitor growth and a staggering 207 percent rise in international tourism receipts from January to July 2024 compared to the same period in 2019.

These achievements reinforce Saudi Arabia’s status as a premier global tourism destination, showcasing travelers’ growing confidence in the Kingdom's diverse and appealing offerings. In a bid to capitalize on this momentum, the tourism sector has raised its target for 2030 from 100 million to 150 million visitors, with potential for further increases if this goal is met ahead of schedule, according to Mahmoud Abdulhadi, deputy minister of destination enablement at the Ministry of Tourism.

Speaking at the Future Hospitality Summit in Riyadh last week, Abdulhadi noted that targets are continually assessed and adjusted based on sector performance.

The UNWTO praised the Kingdom’s tourism progress as a “significant milestone” in its quest to become a global leader in the industry. The report indicated that tourism-related spending surpassed $37 billion in 2023, accompanied by substantial growth in hotel capacity across the country.

In the first seven months of 2024, Saudi Arabia welcomed approximately 17.5 million international tourists. For 2023, the Kingdom hosted 27.4 million visitors, marking a 56 percent increase from 2019. This surge has placed Saudi Arabia at the top of the UN’s list for tourism growth among major destinations.

Additionally, the Kingdom’s tourism surplus reached a record SR48 billion ($12.8 billion) in 2023, a 38 percent year-on-year increase.

The International Monetary Fund, in its 2024 Article IV Consultation report released in September, commended the significant progress made by Saudi Arabia’s tourism sector under the Saudi Vision 2030 initiative. The IMF underscored the sector’s vital role in diversifying the Kingdom’s economic base, particularly within the services sector, where it has become a key growth driver in terms of visitor numbers, spending, job creation, and contribution to GDP.

According to the latest UNWTO Barometer report, global international tourist arrivals have rebounded to 96 percent of pre-pandemic levels from January to July 2024, totaling approximately 790 million — an 11 percent increase compared to the same period in 2023. The UNWTO also noted that the Middle East led global growth with a 26 percent rise in international arrivals compared to 2019 levels.


Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

Updated 03 November 2024
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Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

RIYADH: Saudi Arabia has launched the ninth round of its subscription-based savings product, Sah, for November, offering a competitive return of 4.89 percent.

This initiative aims to promote financial stability and growth among citizens.

The Shariah-compliant, government-backed sukuk began on Nov. 3 and will remain open until Nov. 5. Redemption amounts are expected to be paid within a year, as announced by the National Debt Management Center on X.

Organized by the NDMC and issued by the Ministry of Finance, these fee-free savings products provide low-risk returns and are available through the digital platforms of various approved financial institutions.

Sah is the first savings product specifically designed for individuals, taking the form of bonds within the Kingdom’s local bonds program, denominated in Saudi riyals. It supports the Financial Sector Development Program, part of Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international standard of 10 percent by 2030.

The minimum subscription amount is set at SR1,000 ($266), corresponding to the value of one bond, while the maximum is SR200,000 for total issuances per user during the program period. The product is aimed at individuals, with monthly returns provided according to the issuance calendar.

The saving period lasts one year, with a fixed return, and accrued yields are disbursed at the end of the sukuk’s term. Future returns will be influenced by month-to-month market conditions.

The product is open to Saudi nationals aged 18 and above, who must open an account with one of the following: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.

In October, the Kingdom launched its eighth round of the Sah program, offering a 4.92 percent return, while the seventh round in September provided a return of 5.31 percent.

NDMC CEO Hani Al-Medaini has emphasized that the sukuk aims to foster private sector collaboration. Future initiatives will focus on developing tailored savings products for various individual categories through banks, fund managers, fintech companies, and other institutions.

Al-Medaini noted that the issuance of Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion, ensuring access to products and services that meet the needs of individuals, such as savings accounts like Sah.


Newcleo aims to transform nuclear energy with innovative safety solutions, says CEO

Updated 03 November 2024
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Newcleo aims to transform nuclear energy with innovative safety solutions, says CEO

  • Stefano Buono outlined the company’s approach to safer, more sustainable nuclear energy
  • He highlighted Newcleo’s distinct approach to waste recycling

RIYADH: French start-up Newcleo is progressing in the clean energy sector, aiming to transform nuclear technology with a focus on safety and sustainability, said the company’s CEO. 

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh last week, Stefano Buono outlined the company’s approach to safer, more sustainable nuclear energy as an alternative to fossil fuels. 

Founded in 2021, Newcleo specializes in small, advanced reactors designed to tackle key nuclear sector challenges, including waste management and plant safety.

Backed by the French government’s France 2030 plan, Newcleo has developed a lead-based cooling technology that enhances reactor safety and facilitates waste recycling, setting it apart from many competitors. 

“I started working on new technologies in the 1990s, especially after the Chernobyl accident,” Buono told Arab News. “Since then, we have been working to develop technologies that can deal with any nuclear accident, with an emphasis, of course, on the safety of facilities, to develop solutions that guarantee that nuclear accidents cannot happen.” 

One of Newcleo’s innovations is the use of lead as a coolant, which Buono says allows for cost-effective cooling while enabling compact reactor designs and recycling of radioactive waste. “This is why we have chosen to develop equilibrium solutions for reactor cooling,” Buono said. 

“It’s now possible to cool reactors with liquid metals like lead,” he said, adding that this method allows for the cooling of compact batteries at a very low financial cost. “Our technology also makes it possible to recycle radioactive waste.” 

According to the International Energy Agency, the nuclear sector could help reduce global greenhouse gas emissions by providing an alternative to fossil fuels. 

A key strength of nuclear power is its ability to generate electricity without emitting carbon dioxide during operation, making it a valuable ally in the push to meet emissions reduction targets. 

However, nuclear energy also presents challenges. Radioactive waste management, plant safety, and public perception are issues that demand clear solutions and technological innovation — areas where French start-up Newcleo aims to make a difference. 

Buono highlighted Newcleo’s distinct approach to waste recycling, describing it as a competitive advantage over American companies. “Recycling is one aspect, and the fact that there is no nuclear waste is a good thing,” he said, adding that the company’s methods make it easier to collaborate with industrial partners and data centers. 

Buono emphasized the importance of implementing technology already established in the region, citing the example of Italian company Fincantieri, a key partner for Newcleo. “These platforms also represent a meeting point between nuclear technology and industry, two worlds that have everything in common to make this collaboration a success,” he said. 

According to Buono, Newcleo’s technology is designed not only to generate electricity but also to provide heat and support industrial processes, which he described as “the beauty” of their approach. 

Commenting on the FII, Buono said Newcleo aimed to gain insights into Saudi Arabia’s nuclear landscape. “Our company is very European, and our aim is to raise awareness of our technology because we want to see it developed in the Kingdom,” he said. “For us, this was really a reconnaissance mission.” 

While nuclear sector growth is relatively slow, Buono believes demand for decarbonization is growing faster. “Growth and competition in the nuclear sector are slow, but we need to decarbonize a lot,” he added. “The demand is faster than the sector’s growth, and I do not think there are many players capable of innovating in these systems.” 

Newcleo’s ambitions are further bolstered by French government support, which Buono considers essential for its global aspirations. “Our start-up is directly supported by the French government as part of its France 2030 plan,” he said. “This is crucial support, and when we go to other countries, we can count on government backing through embassies, export ministries, and Business France.” 

As Newcleo looks to expand internationally, its innovative reactor technology aims to position nuclear energy as a viable, safe solution for future energy needs.