King Abdulaziz Port in Dammam achieves record monthly throughput 

King Abdulaziz Port in Dammam is the primary entryway for cargo headed to the country’s eastern and central regions from all over the world. File
Short Url
Updated 06 February 2024
Follow

King Abdulaziz Port in Dammam achieves record monthly throughput 

RIYADH: Saudi Arabia’s maritime sector is witnessing significant growth, with the King Abdulaziz Port in Dammam achieving its highest monthly throughput in January, handling 215,179 twenty-foot equivalent units.   

The facility has surpassed its previous record, set in July 2023 when it processed 211,202 TEUs, the Saudi Press Agency reported.   

This underscores the port’s pivotal role in advancing the maritime sector, enhancing logistics services, supporting national imports and exports, and contributing to raising the Kingdom’s rank in international standings.  

It also signifies the success of development projects and their anticipated impact on increasing container throughput, enhancing the port’s competitive capacity, and expanding communication channels with international ports.   

Furthermore, these achievements align with the Saudi Ports Authority’s ongoing efforts to strengthen the Kingdom’s leadership in the maritime sector, maximize its capabilities, and enhance its economic and developmental role. This is in line with the National Transport and Logistics Strategy.   

Additionally, these advancements are the outcome of initiatives spearheaded by the authority, also known as Mawani, in collaboration with the strategic partner Saudi Global Ports and various other partners, including national and international operating companies at King Abdulaziz Port in Dammam.    

The goal is to transform it into a leading harbor with long-term sustainability objectives, emphasizing automation, digitization, and an integrated supply chain. 

In October, it was announced that the facility is set to receive a fully integrated logistics park worth SR1 billion ($266 million). 

Mawani signed a contract agreement with Saudi Global Ports to construct the park spanning 1 million sq. meters, as reported by SPA at the time.    

According to Mawani President Omar Hariri, the deal falls within the authority’s efforts to expand the number of logistics parks within Saudi ports to 12. 

The expansion is expected to propel the Kingdom’s position in the global logistics services performance index, moving from 38th to 10th place, he stated. 

In alignment with the National Strategy for Transport and Logistics Services and Vision 2030, the announced development aimed to bolster the logistics sector’s role in supporting the national economy, reinforcing Saudi Arabia’s status as a global logistics hub connecting three continents. 


Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

Updated 14 November 2024
Follow

Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

RIYADH: Saudi Arabia’s annual inflation rate reached 1.9 percent in October compared to the same month last year, driven primarily by higher housing costs, official data showed.

According to the General Authority for Statistics, actual housing rents saw an annual increase of 11.6 percent, with apartment rents rising by 11.3 percent. 

Overall, expenses for housing, water, electricity, gas, and other fuels rose by 9.6 percent compared to the same period in 2023. 

Saudi Arabia’s inflation rate remains among the lowest in the Middle East, highlighting the nation’s effective measures to stabilize the economy and mitigate global price pressures. 

A World Bank report last month noted Saudi Arabia’s economic resilience, projecting the Kingdom’s inflation rate to remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, lower than the Gulf Cooperation Council average.

“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for the month of October 2024 due to the weight formed by this section, which amounted to 25.5 percent,” stated GASTAT. 

The report also highlighted that prices for personal goods and services rose by 2.3 percent in October, led by a 24.1 percent rise in the costs of jewelry, watches, and precious antiques. 

Restaurant and hotel expenses saw a 1.9 percent annual increase, while education costs rose by 1.1 percent. Food and beverage prices saw a slight increase of 0.1 percent in October, driven by a 2.6 percent rise in vegetable prices. 

In contrast, prices for furnishings and home equipment fell by 3.1 percent year on year in October, while expenses for clothing and footwear declined by 2.7 percent. Transportation prices also dropped by 3.1 percent annually, influenced by a 4.2 percent decrease in vehicle purchase prices. 

Compared to September, Saudi Arabia’s Consumer Price Index experienced a modest 0.3 percent rise. 

“This monthly inflation index was influenced by a 0.8 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” added GASTAT. 

Prices for personal goods and services rose 0.4 percent month on month in October, while transportation expenses increased by 0.3 percent. Food and beverage prices and health expenses, however, saw slight declines of 0.2 percent and 0.1 percent, respectively. 

The World Bank projects GCC inflation to reach 2.2 percent in 2024 and 2.7 percent in 2025. Saudi Arabia’s gross domestic product is forecast to grow by 1.6 percent this year and accelerate to 4.9 percent in 2025. 

Wholesale Price Index 

In a separate report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 2.4 percent in October year on year. 

“This increase is mainly attributed to a 5.4 percent increase in the prices of other transportable goods, affected by a 12 percent increase in the prices of refined petroleum products, as well as a 9.6 percent increase in furniture and other transportable goods,” the authority stated. 

Agricultural and fishing product prices saw an annual rise of 0.8 percent, as agricultural product costs increased by 2 percent. Metal products, machinery, and equipment also saw a 0.5 percent increase in October, led by a 3.5 percent rise in basic metals. 

Conversely, prices for ores and minerals dropped by 2.7 percent due to a decline in costs for stones and sand. 

Food, beverages, tobacco, and textiles decreased by 0.1 percent, driven by a 4.6 percent decline in the prices of meat, fish, fruits, vegetables, oils, and fats. 

Compared to September, the WPI declined by 0.2 percent, influenced by a 0.6 percent drop in prices of other transportable goods. 

Average Price Index 

In an additional report, GASTAT noted shifts in the average prices of goods and services across Saudi Arabia in October. 

Prices of Abu Sorra Egyptian oranges increased by 7.29 percent compared to the previous month, while green bean prices rose by 6.98 percent. Turkish plums and imported honey also saw monthly increases of 5.38 percent and 4.58 percent, respectively. 

In contrast, the price of imported barley fell by 6.16 percent, and the costs of hay and local melon dropped by 4.93 percent and 4.02 percent, respectively, in October. 


Oil Updates – prices ease on fears of higher output, sluggish demand

Updated 14 November 2024
Follow

Oil Updates – prices ease on fears of higher output, sluggish demand

LONDON: Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains, weighed down by worries of higher global production amid slow demand growth, with a firmer dollar exacerbating the declines.

Brent crude futures fell 35 cents, or 0.5 percent, to $71.93 a barrel by 7:00 a.m. Saudi time. US West Texas Intermediate crude futures declined 42 cents, or 0.6 percent, to $68.01.

“Oil is tackling the (earlier) weaker demand forecast narrative by OPEC, who deferred rolling back additional production for yet another month, fearing the adverse effect on prices,” said Phillip Nova’s senior market analyst Priyanka Sachdeva in an email.

On Tuesday, OPEC cut its global oil demand growth forecast to 1.82 million bpd in 2024, down from 1.93 million bpd forecast last month, on weak demand in China, India and other regions, sending oil prices to their lowest in nearly two weeks.

Meanwhile, the US Energy Information Administration has slightly raised its expectation of US oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last year’s record 12.93 million bpd, and up from 13.22 million bpd forecast earlier.

The agency also raised its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously.

The EIA’s oil demand growth forecasts are weaker than OPEC’s, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd.

Market participants are now waiting for the International Energy Agency’s oil market report, due later in the day, and the EIA’s US crude oil and product stockpile data for further trading cues.

Concerns about China’s demand remains a key contributor to softening prices, analysts say.

“Despite various stimulus measures implemented by Chinese authorities, there has been little to no improvement in economic activity or sentiment within mainland China,” said Phillip Nova’s Sachdeva.

China continues to be the “sore joint” for oil demand and the primary reason why oil markets are bracing for an oversupply in 2025, she added.

Also weighing on prices, the US dollar rose to near a seven-month high against major currencies on Wednesday after data showed US inflation for October increased in line with expectations, suggesting the Federal Reserve will keep cutting rates.

“..the stronger USD is creating strong headwinds for commodities,” ANZ Research said in a note.

A firmer dollar makes commodities priced in the greenback expensive for buyers using other currencies.


Mizuho to launch Saudi ETF with sovereign fund PIF

Updated 14 November 2024
Follow

Mizuho to launch Saudi ETF with sovereign fund PIF

TOKYO: Japan’s Mizuho Financial Group is partnering with Saudi Arabia’s Public Investment Fund to create a Tokyo-listed exchange-traded fund featuring Saudi shares, providing retail investors easier access to a promising emerging market.

A report from leading Japanese business publication Nikkei says Asset Management One, a joint venture between Mizuho and Dai-ichi Life Holdings, plans to create an ETF this fiscal year, linked to the FTSE Saudi Arabia Index.

The fund will mainly track large, creditworthy stocks such as banks and Saudi Aramco, making it accessible for inexperienced retail investors. The minimum investment is expected to be in the thousands to tens of thousands of yen, putting it under $1,000.

The goal is to attract capital for the fund from a wide range of investors, with PIF and Mizuho Bank as the anchors. Mizuho also will aid PIF’s efforts to raise capital overseas as it aims to strengthen ties with the Saudi finance sector. The Japanese bank will use its fundraising expertise to coach personnel from the sovereign wealth fund, as well as provide support for the country’s transition away from oil.

In April, PIF announced a partnership with BlackRock, the world’s largest asset manager, under which the fund will contribute up to $5 billion to an investment platform that aims to draw money for domestic and overseas investment. Mizuho is the first Japanese private-sector financial institution to partner with PIF.

Nikkei describes Saudi Arabia as “increasingly appealing as an investment destination,” noting how the country’s stock market ranked eighth in the world by market capitalization last year.

This article also appears on Arab News Japan


Saudi PIF raises over $1bn with 2% stc stake sale 

Updated 14 November 2024
Follow

Saudi PIF raises over $1bn with 2% stc stake sale 

RIYADH: Saudi Arabia’s Public Investment Fund has raised SR3.86 billion ($1.03 billion) through the sale of a 2 percent stake in telecom firm stc. 

The offering, consisting of 100 million shares priced at SR38.6 each, was met with strong demand from both local and international institutional investors, according to a statement. 

The transaction represents the largest accelerated bookbuild offering ever conducted in Saudi Arabia and the broader Middle East and North Africa region, underscoring robust investor appetite for exposure to the region’s telecom sector and strategic assets managed by PIF. 

“PIF reiterates the strategic importance of its ownership in stc and its diverse partnerships with the company through a number of PIF portfolio companies,” the statement said.  

“PIF looks forward to supporting stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors,” it added.  

Following the sale, PIF retains a 62 percent ownership in stc, equivalent to 3.1 billion shares.  

The sale aligns with PIF’s broader strategy to recycle capital into emerging sectors within the local economy, as the fund moves toward its vision of becoming a global investment powerhouse.  

Currently managing around $925 billion in assets, PIF aims to drive economic transformation in Saudi Arabia and influence global markets. 

In a disclosure on the Saudi Exchange on Wednesday, it was noted that Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF in the transaction. The was to be executed as off-market negotiated deals on Nov. 14, under the Negotiated Deals Framework set by the Saudi Exchange. 

PIF has actively invested in both public and private sectors since its re-launch in 2017, establishing 99 companies and supporting a shift towards a sustainable economy.  

This approach positions Saudi Arabia as an emerging leader in economic and social transformation, providing avenues for both local and global stakeholders to engage in the Kingdom’s evolution. 

With this latest transaction, PIF continues to underscore its dual objectives of capital growth and strategic reinvestment, supporting both economic diversification in Saudi Arabia and the fund's role as a catalyst for sustainable global investment. 


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Updated 14 November 2024
Follow

Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.