Saudi Arabia strengthens ties with OECD, inks new agreement at WEF 

The agreement encompasses various policy domains in alignment with Saudi Arabia’s Vision 2030. Shutterstock
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Updated 22 January 2024
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Saudi Arabia strengthens ties with OECD, inks new agreement at WEF 

RIYADH: Energy security and the low-carbon transition are among the areas covered by a new collaboration-focused agreement signed by Saudi Arabia and the Organization for Economic Cooperation and Development. 

The memorandum of understanding, inked at the World Economic Forum in Davos, signified a strategic partnership aimed at consolidating association across various policy domains in alignment with Saudi Arabia’s Vision 2030. 

The agreement, encompassing 19 areas, outlined a framework for future collaboration, paving the way for joint efforts in substantive areas to promote the development and coordination of public policy. 

Signatories to the MoU included OECD Secretary-General Mathias Cormann and Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim.  

The agreement builds upon the longstanding collaboration between the OECD and Saudi Arabia within the context of the G20 and the MENA-OECD Initiative on Governance and Competitiveness for Development since 2005.  

Over the years, the two entities have executed numerous projects and initiatives spanning taxation, anti-corruption and public governance as well as education and development cooperation. 

During the signing ceremony, Cormann expressed the OECD’s enthusiasm for deepening cooperation with Saudi Arabia, highlighting previous collaborations on diverse issues such as taxation, education, energy, and public governance.  

He added: “Saudi Arabia’s Vision 2030 recognizes that long-term growth will depend on a policy framework to support economic diversification.” 

Saudi Arabia is already an active participant in nine OECD committees and adheres to seven of the organization’s legal instruments.  

The Kingdom’s desire to bolster cooperation is evident in its commitment to engaging more deeply with the international organization across multiple policy areas, including public governance, regulatory policy, skills and education, as well as corporate governance and finance, anti-corruption, and trade facilitation.  

To ensure a cohesive approach, Saudi Arabia has established an inter-Ministerial Committee, comprising the Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Economy and Planning.  

This committee will oversee and coordinate the Kingdom’s collaboration with the OECD. 


Aramco signs agreement to advance SASREF expansion

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Aramco signs agreement to advance SASREF expansion

RIYADH: Energy giant Saudi Aramco and China-based Rongsheng Petrochemical Co. have signed a framework agreement to boost the expansion of a subsidiary of the state-owned oil company.

According to a press statement, the tripartite agreement outlines a cooperation framework and detailed plans to design and develop Saudi Aramco Jubail Refinery Co. or SASREF. The initiative is expected to enhance SASREF’s refining and petrochemical capabilities.

The deal follows an announcement made in April that Aramco and Rongsheng Petrochemical had signed a partnership agreement related to the planned formation of a joint venture in SASREF. 

Aramco’s long-standing relationship with China spans more than three decades.

This new framework agreement is part of the company’s broader strategy to solidify its position in the global energy landscape while supporting the Kingdom’s economic growth.

“By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders,” said Aramco Downstream President Mohammed Al-Qahtani.

He added: “This development framework agreement underscores Aramco’s intentions to foster closer collaboration with key partners and progressing its strategic downstream expansion, both in Saudi Arabia and internationally. It also highlights the potential of the Kingdom’s downstream sector to attract overseas players.”

Li Shuirong, chairman of Rongsheng Petrochemical, said that the collaborative project will contribute to Saudi Arabia’s Vision 2030 program and China’s Belt and Road initiative. 

“The signing of the development framework agreement sets the stage for Rongsheng Petrochemical’s in-depth participation in the SASREF expansion project,” said Shuirong. 

He added: “Saudi Arabia has abundant energy resources and significant market potential, and Rongsheng Petrochemical will bring strong momentum to the partnership through our excellent operation and management capabilities and market competitiveness.” 

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in the Kingdom’s Eastern Province. 

The project, which is currently in the pre-front-end engineering design stage, envisages the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex, enhancing its ability to meet the growing demand for high-quality petrochemical products, the statement added. 

Earlier in November, Aramco, in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., started the construction of a refinery and petrochemical complex in the Asian nation’s Fujian province. 

The undertaking, which is expected to be fully operational by the end of 2030, includes an oil refinery with a capacity of 320,000 barrels per day, according to a press statement.

It will also have a 1.5 million tonnes-per-year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.


COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

Updated 16 min 40 sec ago
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COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

RIYADH: Azerbaijan has launched the Baku Harmoniya Climate Initiative, a program designed to help farmers combat global warming while ensuring food security.  

The initiative, which prioritizes knowledge sharing and climate finance solutions, was announced during a press conference by Azerbaijan’s Minister of Agriculture, Majnun Mammadov, at COP29. 

This effort aligns with Azerbaijan’s revised Nationally Determined Contributions, which pledge a 40 percent reduction in emissions by 2050, conditional on international support. The energy sector, responsible for over half of the country’s greenhouse gas emissions, remains a focal point of Azerbaijan’s climate strategy.   

“I am proud to officially announce the launch of the Baku Harmonia Climate Initiative for farmers. It is an inclusive platform designed particularly for women and youth, and aims to strengthen global collaboration,” Mammadov said. 

He highlighted that the initiative will focus on promoting technology investments, sustainable practices, and crop diversification. 

“Harmonia focuses on sharing knowledge, facilitating climate finance, and addressing the unique challenges farmers face,” he added.  

Mammadov emphasized the importance of enhancing farmers’ participation, advancing research and innovation, improving water management systems, and implementing subsidy programs to encourage sustainability. 

Also speaking during the conference, COP29 Lead Negotiator Yalchin Rafiyev underlined the initiative’s significance, noting the momentum gained from international cooperation.  

“We have been encouraged by the positive signals from the G20 to our ongoing efforts,” Rafiyev said. However, he stressed that current climate finance levels remain insufficient and require scaling up.  

As a significant producer of fossil fuels, Azerbaijan’s hosting of COP29, like last year’s host, the UAE, signifies a shift toward sustainable climate policies.  

COP29 President Mukhtar Babayev recently told Arab News that hosting the conference reflects his country’s commitment to driving change. 


Closing Bell: Saudi main index closes in green at 11,876

Updated 19 November 2024
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Closing Bell: Saudi main index closes in green at 11,876

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Tuesday, as it gained 45.53 points or 0.38 percent to close at 11,875.91. 

The total trading turnover of the benchmark index was SR6.09 billion ($1.62 billion) with 138 stocks advancing, while 90 declining. 

The parallel market, Nomu, however, marginally slipped by 0.09 percent to 29,570.56. 

The MSCI Tadawul Index gained 4.76 points to close at 1,491.83.

The best-performing stock of the day was Shatirah House Restaurant Co., also known as Burgerizzr. The company’s share price increased by 9.98 percent to SR22.26. 

The share price of Fawaz Abdulaziz Alhokair Co. increased by 8.29 percent to SR14.10, while the stock price of Development Works Food Co. surged by 6.85 percent to SR131. 

Conversely, the share price of Al-Baha Investment and Development Co. slipped by 9.68 percent to SR0.28. 

On the parallel market, the best performer was Knowledge Tower Trading Co., whose share price surged by 9.61 percent to SR10.84.

On the announcements front, Molan Steel Co. said it signed a memorandum of understanding with Yara International Limited Co. to acquire 100 percent of Mayar International Industry. 

In a Tadawul statement, the company said that the financial consideration for the transaction depends on the results of the financial evaluation and due diligence.

The company added that the transaction will be financed through Molan Steel’s cash flows and resources. 

According to the statement, the acquisition will be subject to a number of regulatory approvals including relevant authorities in the Kingdom. 

Molan Steel Co.’s share price increased by 2.84 percent to SR3.26. 


Saudi Arabia’s Tabuk targets development with over $67m investment deals 

Updated 19 November 2024
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Saudi Arabia’s Tabuk targets development with over $67m investment deals 

JEDDAH: Investment contracts worth SR252 million ($67.2 million) have been signed to boost Saudi Arabia’s Tabuk region, focusing on healthcare, logistics, housing, entertainment, and education to spur economic growth. 

The agreements, finalized during a visit by Minister of Municipalities and Housing Majid Al-Hogail, are expected to stimulate the local economy while generating both direct and indirect employment opportunities, the Saudi Press Agency reported. 

During his tour to the region, Al-Hogail held discussions with regional investors and business leaders, focusing on expanding opportunities in municipal and housing development.  

The minister underscored the government’s commitment to fostering investments that align with the aspirations of Tabuk’s residents and contribute to Vision 2030’s broader economic goals. 

The inspection visit included reviews of key infrastructure projects, including road upgrades, traffic system enhancements, and housing developments.   

Al-Hogail emphasized the importance of ensuring high-quality services for residents and visitors, stressing that these initiatives are integral to achieving the ministry’s strategic objectives.  

He also witnessed the delivery of 533 new housing units to beneficiaries of the Development Housing Program, a key initiative supporting low-income families in Saudi Arabia.   

This latest distribution brings the total number of housing units delivered under the program to 2,479, highlighting the government’s commitment to addressing housing needs.

At the start of his tour, Al-Hogail met with municipal leaders and heads of municipalities to discuss progress on ongoing projects, emphasizing the need for continuous improvements in service delivery. 

He also visited the Prince Fahd bin Sultan Promenade, where redesigned storefronts inspired by Tabuk’s heritage have transformed the area into a vibrant destination for locals and tourists.  

Al-Hogail inaugurated a branch of the Real Estate Developer Services Center, Etmam, which streamlines government services for beneficiaries in one location. He engaged with citizens to gather feedback and suggestions for further enhancing municipal services in the region.  

The visit coincided with the announcement by the Ministry of Municipalities and Housing’s investment arm, the National Housing Co., of 11 new residential projects in Khuzam, north of Riyadh. These developments, featuring over 10,000 modern-designed units, are aimed at achieving the Kingdom’s homeownership goals. 

This visit is part of a series of inspections the minister is conducting across Saudi Arabia to oversee municipal and housing sector initiatives, review ongoing projects, and ensure their progress aligns with Vision 2030’s transformative goals. 


Pakistan Stock Exchange crosses 96,000 to hit record intraday high

Updated 19 November 2024
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Pakistan Stock Exchange crosses 96,000 to hit record intraday high

  • Higher remittances, exports, foreign investment credited for bullish activity, analysts say
  • Stock Exchange witnessing bullish trend since government slashed policy rate this month

ISLAMABAD: The Pakistan Stock Exchange on Tuesday surged past 96,000 points to hit a record high in intraday trading, with analysts attributing the rally to a current account surplus in October due to higher remittances, exports and foreign direct investment.

The benchmark KSE-100 index climbed to a record 935.66 points or 0.98 percent to stand at 95,931.33 from the previous close of 94,995.67 points. It touched the 96,036.48 mark for the first time at 2:44pm PST. 

Ahsan Mehanti at the Arif Habib Corporation told Arab News potential investors had weighed surging foreign reserves as well as government decisions over reforms for loss-making state-owned enterprises, independent power producers and energy pricing.

“Stocks bullish on reports of current account surplus of $349 million in Oct. 2024 on higher remittances, exports and FDI rising by 32pc to $904m for Jul-Oct. 2024,” he said. “The next triggers could be easing political noise amid protest calls by opposition.”

Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments. 

A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.

A bullish trend has been observed at the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. It’s economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.

Before this, the country went through a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.

Last year, Pakistan narrowly avoided a sovereign default by clinching a last-gasp $3 billion IMF bailout deal.