ISLAMABAD: The Islamic Trade Finance Corporation (ITFC) will provide Pakistan a loan of $3 billion, the Pakistani government said on Thursday.
The statement came after Finance Minister Muhammad Aurangzeb’s meeting with a delegation of the ITFC, a member of the Islamic Development Bank (IsDB) Group that aims to advance trade among Organization of Islamic Cooperation (OIC) member countries, in Washington.
Aurangzeb is currently in the US to attend the annual World Bank and International Monetary Fund (IMF) meetings, where global finance leaders have convened to address challenges such as sluggish international growth, managing debt distress and financing the transition to green energy.
“He appreciated ITFC’s support for providing commodity financing worth USD 3 billion through a Framework Agreement over the next three years, including the immediate provision of USD 269 million through a mix of direct financing and syndication,” the Pakistani government’s Press Information Department (PID) said in a statement.
During the meeting, the ITFC delegation, led by its CEO Eng. Hani Salem Sonbol, expressed its commitment to diversify its portfolio in Pakistan, according to the PID. The Pakistani finance minister assured his government’s full support in this regard.
Separately, Aurangzeb attended a roundtable with institutional investors organized by Jefferies International, where he briefed the investors on positive economic indicators of Pakistan, according to Pakistani state media.
He also attended a meeting of IMF Managing Director Kristalina Georgieva with finance ministers, central bank governors, and heads of regional financial institutions in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region.
Pakistan to get $3 billion loan from Islamic Trade Financing Corporation
https://arab.news/mvt55
Pakistan to get $3 billion loan from Islamic Trade Financing Corporation
- The ITFC, a member of Islamic Development Bank Group, aims to advance trade among Organization of Islamic Cooperation members
- Muhammad Aurangzeb assured the ITFC of his government’s full support in helping diversify the ITFC portfolio in the South Asian country
Oil Updates – crude heads for weekly gain as Middle East tensions keep market on edge
SINGAPORE: Oil prices nudged higher on Friday and are on track for a weekly gain of more than 1 percent, as tensions in the world’s top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge.
Brent crude futures climbed 18 cents, or 0.2 percent, to $74.56 a barrel by 6:42 a.m. Saudi time while US West Texas Intermediate crude was at $70.34 a barrel, up 15 cents, or 0.2 percent.
“We remain of the view that the right price for crude oil currently is around $70 where it is now, as we await fresh price drivers, including the outcome of China’s NPC Standing Committee meeting as well as Israel’s response to Iran’s October 1 missile attack,” IG market analyst Tony Sycamore said in a note, referring to WTI prices.
Both benchmarks settled down 58 cents a barrel in the previous session after prices fluctuated against expectations of heightened or reduced tensions in the Middle East.
Oil traders are waiting for Israel’s response to a missile attack by Iran on Oct. 1 that may involve hitting Tehran’s oil infrastructure and disrupt supplies, although reports said Israel would strike Iranian military, not nuclear or oil, targets.
US and Israeli officials are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days. Previous attempts to reach a deal have failed.
US Secretary of State Antony Blinken said on Thursday that Washington does not want a protracted Israeli campaign in Lebanon, while France has called for a ceasefire and focus on diplomacy.
Ceasefire talks have a small net negative impact on oil prices, Sycamore said, adding the focus is more on the conflict in Lebanon and Israel’s potential response to Iran.
Investors are also eyeing more clarity on Beijing’s stimulus policies, although analysts do not expect such measures to provide a major boost to oil demand from China, the world’s No. 2 consumer.
Goldman Sachs on Thursday left its oil, natural gas, and coal price forecasts unchanged, estimating Chinese stimulus boosts to energy prices that are modest relative to bigger drivers such as oil supply from the Middle East and winter weather for natural gas.
It forecasts Brent in the $70 to $85 range.
UN official issues urgent warning about growing global inequality
JEDDAH: In a world increasingly marked by disparity, a senior UN official has issued a pressing warning: the gap between rich and poor nations must not continue to widen.
Speaking at the conclusion of the Multilateral Industrial Policy Forum in Riyadh on Oct. 24, Gerd Muller, director general of UNIDO, emphasized the critical need for global collaboration to tackle urgent challenges such as hunger, climate change, and economic inequity.
Muller expressed appreciation for Saudi Arabia’s role in organizing the “successful” event, highlighting the enthusiasm and commitment shown by participants. “That is really great. It helps confirm my basic optimism,” he remarked.
He underscored that effective solutions exist to confront today’s challenges, asserting that addressing hunger, fostering decent job creation, and promoting sustainable industrialization are essential for future progress.
“In a globalized world, everything is interconnected, and the crises we face are universal,” Muller noted, stressing that solidarity among nations is vital to bridge the growing divide.
He urged global leaders to prioritize fair and sustainable supply chains, declaring that multilateral cooperation is key to overcoming these issues. The insights gained from this forum will contribute to the Riyadh Declaration, which is slated for adoption at the next general conference in 2025.
In a significant development, Muller and Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef signed an agreement to establish a framework for strategic cooperation aimed at enhancing industrial development in Saudi Arabia. This partnership will focus on crafting effective industrial policies, improving data analysis, and boosting investments in key sectors.
The agreement also emphasizes the adoption of advanced technologies and sustainable practices to integrate local industries into global value chains.
Alkhorayef highlighted the collaborative spirit of the conference, stating, “We have spent a couple of days discussing serious issues with a focus on solutions.”
He appreciated the expertise shared during ministerial roundtables, which tackled crucial topics such as sustainable development goals and the impact of industrial policies on economic advancement.
He pointed out the significance of exploring how digitalization, including AI and automation, can transform industries and supply chains.
Addressing supply chain resilience, Alkhorayef called for cooperation to mitigate disruptions while seizing opportunities for economic growth. He extended an invitation to participants for the upcoming UNIDO General Conference in Riyadh, which will further build on the discussions held at the forum and contribute to the declaration.
IMF says size of Egypt’s loan program is still appropriate
WASHINGTON: The International Monetary Fund stated on Thursday that Egypt’s $8 billion loan program remains “still appropriate” and highlighted the urgent need to evaluate the effectiveness of the country’s social protection initiatives.
During a recent address, Egyptian President Abdel Fattah El-Sisi warned that the nation might need to reconsider its expanded loan program if international institutions fail to acknowledge the extraordinary regional challenges Egypt is facing.
The support package, signed in March, mandates Egypt to cut subsidies on fuel, electricity, and other commodities while allowing its currency to float freely—steps that have ignited public discontent.
In a briefing, Jihad Azour, IMF Director for the Middle East and Central Asia, emphasized the need for collaboration with Egyptian authorities to enhance the reach and sufficiency of social protection programs. “This will be a priority issue for discussion with the managing director,” he noted.
Azour underscored the importance of maintaining currency exchange rate flexibility, a key condition of the loan agreement.
IMF Managing Director Kristalina Georgieva announced plans to visit Egypt in about 10 days to assess the country’s challenging economic landscape firsthand and reinforce the necessity of adhering to reform commitments.
She pointed out that Egypt continues to face repercussions from conflicts in Gaza, Lebanon, and Sudan, resulting in a 70 percent decline in Suez Canal revenues.
“We are open to adjusting the Egyptian program or any other program to best serve the people,” Georgieva said. “However, we cannot fulfill our responsibilities if we ignore necessary actions.”
BRICS payments system
Georgieva also commented on a proposed alternative cross-border payments system from the BRICS nations, indicating she requires more details to assess its potential impact but dismissed any immediate threat to the IMF.
Leaders from Brazil, Russia, India, China, and other BRICS nations recently pledged to enhance cooperation on cross-border payments, grain exchanges, and additional initiatives during a summit in Russia.
“The concept of a payment system among a group of countries is not new,” Georgieva stated. “What we need now is more specifics on how this idea may come to fruition before we can evaluate its implications. While various member states form different alliances, all members continue to support the IMF.”
Saudi Arabia, Tunisia to strengthen industrial cooperation through joint ventures: vice minister
- Kingdom is in talks with two neighboring Arab countries to integrate policies that could boost industries
- Saudi vice minister of industry affairs highlighted a broader vision of industrial collaboration, such as in the auto industry
RIYADH: Saudi Arabia is set to strengthen regional industrial ties by partnering with Tunisia on a series of joint ventures, according to a top official.
Speaking to Arab News on the sidelines of the UN Multilateral Industrial Policy Forum in Riyadh, the Kingdom’s Vice Minister of Industry Affairs, Khalil bin Salamah, confirmed upcoming collaboration with Tunisia, saying it’s now a matter of selecting which products to begin with and how to proceed.
“It’s out of the question that, whether there will be or not, there will be because no one will succeed alone. Sustainable success and growth only come with collaboration,” said Bin Salamah.
He continued: “We understood that. We have seen it in the petrochemical, and we will see it in other multiple sectors.”
The vice minister said that Saudi Arabia is in talks with two neighboring Arab countries to integrate policies that could boost industries such as pharmaceuticals.
He emphasized the importance of establishing common policies among Arab nations as a foundation for regional collaboration in various industrial sectors.
Rather than focusing solely on producing specific products, the countries aim to align their industrial policies first, creating a unified platform that can later be applied to different goods.
“There are many, so each group of countries will focus on different products, but with the same policy platform. We want to capture those common policies before it translates to products and keep them at that level between the countries,” Bin Salamah said.
He added: “When we talk about API (active pharmaceutical ingredients), one country is Egypt (and a) potential country could be Jordan, because the maturity of manufacturing of medicine does exist. But now we have to utilize the chemicals, especially the fine chemicals into API, and that goes to serve all of our country’s demand for the medicine.”
The vice minister also highlighted a broader vision of industrial collaboration, such as in the auto industry, where countries, including the UAE, Morocco, Tunisia, and Egypt, are already contributing various components and capabilities.
“We have already multiple countries of interest. When we go to component-wise, there is already in the UAE. In Morocco, there is very good industrialization. In Tunisia, in Egypt, there is a good integration, no repetition but value addition,” Bin Salamah said.
Regarding Tunisia, the vice minister underlined that the collaboration would not be limited to the auto industry, a key sector of focus, but would extend to other divisions with high potential, including the phosphate and power generation sectors.
He shed light on the human capital aspect of the collaboration, underscoring the potential for shared expertise and workforce development between the two countries.
Bin Salamah said Saudi Arabia’s industrial strategy is transitioning from basic and intermediate chemicals to downstream sectors, including fine chemicals and API.
The move is seen as crucial for expanding the Kingdom’s industrial base and supporting its Vision 2030 objectives.
“When I look at Tunisia, from even previous experiences, there is the phosphate industry, there is the power generation,” the vice minister said.
The conversation also touched upon a broader Arab industrial integration, a key topic during a recent meeting in Morocco. Bin Salamah said that this cooperation would take shape not only in Tunisia but also in other Arab nations.
His remarks underscore Saudi Arabia’s commitment to regional cooperation as part of its broader industrial strategy.
Reaffirming this collaboration, Tunisian Minister of Industry, Mines and Energy Fatma Thabet Chiboub said that her country has a distinctive type of mining resource that could be open to investment from the Saudi side.
“This is part of the discussions we have had. I believe the automotive components sector could be one of the promising sectors for investment, and the pharmaceutical industry could also be a fruitful area for cooperation between both sides,” she told Arab News.
Chiboub added: “Tunisia has significant advantages in the health care sector, both in services and manufacturing. Tunisia boasts important competitive advantages and skilled professionals, many of whom have been working in Saudi Arabia for around 50 years.”
She said that despite the resources available in the Kingdom, the current level of investment in Tunisia does not reflect the full potential of the relationship between the two countries.
“We believe there is room to significantly enhance this cooperation to serve the interests of both nations,” she said.
She added: “As Arab countries, our goal should be deeper integration and collaboration, which is the primary objective of this forum — to strengthen cooperation and foster greater unity between Arab nations.”
In terms of promising sectors, Tunisia is open to foreign investment across all industries, focusing on food, metal, textiles, clothing, automotive and aerospace components, and pharmaceuticals.
“We continue to support the presence of foreign and national investments. We consider foreign investment to be equivalent to domestic investment under Tunisian investment law, offering the same preferential advantages to foreign investors as we do to Tunisian investors,” Chiboub said.
“Tunisia has had relations with Saudi industries, and the goal is to further develop these networks. Tunisia is currently open in the energy transition sector, and I believe that the Saudi side has made remarkable progress in the field of alternative energy,” she also said.
Closing Bell: Saudi main index slips to close at 11,886
- Parallel market Nomu gained 438.38 points, or 1.66%, to close at 26,818.29
- MSCI Tadawul Index lost 0.45 points, or 0.03%, to close at 1,494.90
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 15.71 points, or 0.13 percent, to close at 11,886.06.
The total trading turnover of the benchmark index was SR4.37 billion ($1.16 billion), as 59 of the stocks advanced and 161 retreated.
The Kingdom’s parallel market Nomu gained 438.38 points, or 1.66 percent, to close at 26,818.29. This comes as 33 of the listed stocks advanced, while 38 retreated.
The MSCI Tadawul Index lost 0.45 points, or 0.03 percent, to close at 1,494.90.
The best-performing stock of the day was Rasan Information Technology Co., whose share price surged 10 percent to SR68.20.
Other top gainers were Arabian Mills for Food Products Co. and Al Taiseer Group Talco Industrial Co., whose share prices surged 2.95 percent and 2.38 percent to SR59.30 and SR56.00, respectively.
The worst performer was Al-Baha Investment and Development Co. for Industry., whose share price dropped by 6.67 percent to SR0.28.
Other notable underperformers included Umm Al-Qura Cement Co. and Fawaz Abdulaziz Alhokair Co., with share prices falling 3.78 percent to SR16.30 and 3.31 percent to SR12.86, respectively.
On the announcements front, Rasan Information Technology Co. released its interim financial results for the period ending Sept. 30.
According to a statement from Tadawul, the firm recorded a net profit of SR54.93 million in the first nine months of the year, reflecting a 52.6 percent increase compared to the same period in 2023.
The growth is primarily attributed to a 32.5 percent rise in gross profit year on year, with a profit margin of 60.2 percent compared to 58.7 percent during the same period last year, driven by enhanced operational efficiency and reduced sales costs.
The increase is linked to a 47.5 percent growth in operating profits compared to the previous year, along with a 40.6 percent rise in earnings before interest, taxes, depreciation, and amortization, achieving a margin of 28.2 percent versus 25.9 percent during the first nine months of 2023.
Yanbu Cement Co. released its interim condensed consolidated financial results for the period ending Sept. 30. A bourse filing revealed that the firm recorded a net profit of SR129.17 million in the first nine months of the year, reflecting a 26.8 percent increase compared to the same period in 2023.
The growth is primarily attributed to rising local sales revenues and other income, despite higher administrative, selling, financing, and Zakat expenses.
In market activity, Yanbu Cement Co. closed the session at SR23.00, down 0.78 percent.
The Capital Market Authority announced its approval of SAB INVEST’s request to offer units of the “SAB Invest Hang Seng Hong Kong ETF” on the Saudi Stock Exchange as an Exchange Traded Fund.
