JEDDAH: Saudi Arabia’s Vision 2030 and National Transformation Program (NTP) 2020 have generated tremendous interest among investors and the private sector.
The programs are being looked upon as a great opportunity for boosting the inflow of foreign direct investment as also for the private sector to play a contributory role in the Kingdom’s long-term goal of becoming the world’ major powerhouse.
“In fact, the programs are a golden opportunity for us to contribute to realizing the long-term goals of the Vision document and the NTP plan,” an investor and head of a major Saudi business entity, said echoing the sentiments of fellow businessmen.
Other business leaders are of opinion that both Vision 2030 and the NTP 2020 have unfolded tremendous potential for boosting the inflow of both local and foreign investors, and also for the thriving private sector to play a significant role in realizing the set goals.
The private sector in general has already swung into swift action with a view to making their contribution in the success of Vision 2030 announced by Deputy Crown Prince Mohammed bin Salman in recent months.
One of the major private sector entities is E.A. Juffali & Brothers Co. whose Managing Partner and Vice Chairman Khaled bin Ahmed Juffali affirmed at a recent roundtable discussion that the company was looking at localizing much more in the Kingdom than before, specifically by training young Saudis and students.
The roundtable on "The future of mobility and the development of the automotive aftermarket in Saudi Arabia" was hosted by Uwe Thomas, chairman of the automotive aftermarket divisional board at Robert Bosch GmbH, Khaled Juffali and Andreas Bodemer, vice president of the Middle East and Africa Region in celebration of Bosch’s longstanding presence in the Kingdom, and 50 years of partnership with Juffali Auto Parts Co.
Thomas gave a presentation on the aftermarket sector in the region and the Bosch’s solutions at the roundtable.
Juffali said: “What the company is doing now is to further intensify its efforts toward realizing the goals of Vision 2030. The capacity of the training center on Makkah Road has been raised to 800 students. We are training Saudi employees to bring them into the system. We are training young Saudis as mechanics and electricians.”
Juffali added that the company is depending on Bosch’s knowledge and entrepreneurial skills to assist training of young Saudis.
Thomas said Saudi Arabia with a population of over 30 million inhabitants and a GDP of $752 billion is the largest economy in the Middle East. “Saudi Arabia will continue to be the most important consumption market in Middle East and remain strategically the most important market in the region,” he added.
Bosch AA & Juffali will continue to invest in Saudi Arabia with the objective of increasing their market share. Juffali plans to have 23 branches to serve 2020 parts outlets by 2020. Bosch will setup a representative office in the fourth quarter of 2016 in support of local partners.
Thomas mentioned that the Middle East continues to be a key market for Bosch, although the current geopolitical situation and low oil price have a challenging impact on the economic development.
“We are however confident that the momentum created by mega events like the Jeddah Metro, Dubai Expo 2020, and the World Cup in Qatar 2022 will contribute toward positive business developments and a continued demand for our products and services. Vision 2030 will also promote continued positive developments,” Thomas added,
There are three mega trends ringing in this new era. They will shape and change mobility permanently: Increase in efficiency of combustion engines and electric powertrains, highly automated driving and connected driving, which is closely linked to the other two, according to Thomas.
The future holds good for connected mobility, and it will change the automotive aftermarket, said Thomas who heads the aftermarket in Bosch division.
"The Internet of Things (IoT) and the increasing digitalization have impacted and changed the way we live permanently. Today, we use our phones for a variety of things without even thinking about it; it has become normal,” he added.
Bosch has strong growth plans across the Kingdom as it is looking to have 46 Bosch car service centers by 2020 while maintaining quality service, reasonable price of original equipment and products with specification, and standardized look and feel in-service offerings across Saudi Arabia.
“Also, fleets are among the target customer segments for our connected solutions in the Kingdom. We would soon initiate discussions with private and government run fleets in order to introduce these solutions to the market,” Thomas said.
According to the vehicle type, the Kingdom remains the biggest market for automotive parts and services in the Middle East.
“Currently, we are supplying complete units; product portfolio expansion planned during the course of 2017-2018 to ensure supply of spare parts as well as service solutions,” he said.
“We have strong growth plans reflecting a strong signal for the Saudi market. We had 23 Bosch car service centers in Saudi Arabia in 2015. By 2020, we will have 46 Bosch car service centers across the Kingdom,” Thomas added.
Bosch AA is represented in the Kingdom by Juffali group since 1965. Diesel Electric Co. was the first Bosch sales and workshop office in Jeddah in 1966.
Since then, there have been lots of developments in infrastructure and organization. Business partnership in AA & Power tools has grown successfully over the last 50 years.
At present, Juffali Auto Parts Co. is serving 755 outlets through 13 JAPCO-owned branches. Bosch eXtra, which is the company’s online loyalty program and considered unique in the region’s automotive sector, is running successfully since 2014 with 400 enrolled customers.
Bosch AA maintains strong market shares in diesel and auto electricals in the commercial vehicle segment. A focused approach will help grow market shares in trade goods like braking, batteries, wipers, etc.
Vision 2030, NTP 2020 offer big hope for private sector, investors
Vision 2030, NTP 2020 offer big hope for private sector, investors
Pakistan to unveil Economic Survey 2024-25 on Monday
- The survey will include details about performance and trends of various sectors in outgoing fiscal year
- The survey will be followed by federal budget, which is expected to lay out targets for macroeconomic stability
ISLAMABAD: Pakistan will unveil its Economic Survey 2024-25 tomorrow, Monday, and detail major socio-economic achievements of the outgoing fiscal year, Pakistani state media reported.
The survey will include details about performance and economic trends of various sectors, including agriculture, industry, services, energy, information technology and telecommunications, capital markets, health, education and transport.
Annual trends of major economic indicators regarding inflation, trade and payments, public debt, population, employment, climate change, and social protection will also be part of the survey.
“Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad,” the Radio Pakistan broadcaster reported.
The survey will be followed by the presentation of the national budget. The earlier dates for the announcement of Economic Survey 2024-25 and federal Budget 2025-26 were June 1 and June 2, respectively, but the government extended the dates to June 6 and June 7.
Pakistan is currently bolstered by a $7 billion International Monetary Fund (IMF) program and is navigating a long path to economic recovery. The country’s annual inflation rate rose to 3.5 percent in May, though its macroeconomic outlook has improved in recent months, supported by a stronger current account balance and increased remittances.
The Pakistani government says it remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.
Earlier this month, Planning Minister Ahsan Iqbal announced the government has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26.
Saudi ports post 13% rise in container volume in May: Mawani
- Imported containers rose 15.84% from a year earlier to 292,223 TEUs
- Exported volumes increased 9.38% to 279,318 TEUs
RIYADH: Saudi Arabia’s seaports handled 720,684 twenty-foot equivalent units in May, a 13 percent year-on-year jump, driven by growth in imports, exports, and transshipment activity, official figures showed.
According to data from the Saudi Ports Authority, also known as Mawani, imported containers rose 15.84 percent from a year earlier to 292,223 TEUs, while exported volumes increased 9.38 percent to 279,318 TEUs.
Transport, or transshipment, containers also climbed 12.89 percent to 149,143 TEUs, reflecting the Kingdom’s growing role as a regional trade hub.
The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the country. It also supports the goals of Saudi Arabia’s National Transport and Logistics Strategy, which seeks to position the Kingdom as a global logistics center under Vision 2030.
In a release, Mawani stated: “The total tonnage handled — general cargo, solid bulk cargo, and liquid bulk cargo — increased by 1.40 percent to reach 21,337,699 tonnes compared to 21,042,684 tonnes during the same period last year.”
It added: “The total general cargo amounted to 935,932 tonnes, solid bulk cargo 5,059,899 tonnes, and liquid bulk cargo 15,341,868 tonnes.”
The ports received 1.63 million heads of livestock, up 61.22 percent compared to 1.01 million during the same period last year.
Maritime traffic also picked up, with vessel calls rising 9.39 percent to 1,083 ships, while the number of passengers grew 68.15 percent to reach 95,231. The number of vehicles handled increased by 13.09 percent year on year to 84,352 units.
The positive momentum follows a strong performance in April, when Saudi ports handled 625,430 standard containers, up 13.4 percent from a year earlier.
In 2024, Mawani announced several major initiatives, including agreements and groundbreaking projects to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with a combined private sector investment of approximately SR2.9 billion ($773 million).
These efforts are part of a broader strategy to enhance the competitiveness of Saudi ports and reinforce the Kingdom’s position as a global trade and logistics hub.
The initiatives form part of a larger SR10 billion investment plan to develop 18 logistics parks across Saudi terminals, all overseen by Mawani.
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Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini
- Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, report says
- Global HNWI population increased by 2.6% year on year in 2024
RIYADH: Next-generation high-net-worth individuals consider the Middle East as their preferred investment destination, thanks to geopolitical security and economic stability, according to an analysis.
In its latest report, consulting firm Capgemini revealed that Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, thanks to the Vision 2030 economic diversification program.
The findings by the Paris-based company align with the views shared by Henley & Partners in April, which said that Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires.
According to Henley & Partners, more than 20,000 people with liquid investable wealth of $1 million or more are now based in the Saudi capital, while Jeddah is home to 10,400 millionaires.
According to Capgemini, the UAE is also capitalizing on this trend and is attracting international HNWI investors.
“Investors are targeting high-growth emerging economies for specific thematic investment options, tax regulation, economic and political stability, better wealth management services, and enhanced market connectivity. As a result of this search for geopolitical security and economic diversification, Asia and the Middle East have become appealing destinations,” said the report.
It added: “Singapore, Hong Kong, the UAE, and recently Saudi Arabia have established themselves as prime alternatives, utilizing advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.”
The analysis added that enhanced market connectivity and improved wealth management options are among the other crucial factors that make the Middle East a desirable investment destination among next-gen HNWIs.
Saudi focus
The report said the Kingdom “has introduced new residency programs aimed at HNWIs, positioning itself as a regional wealth hub.”
It added: “As global wealth patterns shift, Saudi Arabia is actively enhancing its legal and financial frameworks to compete with traditional wealth hubs.”
In 2019, Saudi Arabia introduced the premium residency visa option, which allows eligible foreigners to reside in the Kingdom and enjoy benefits such as exemption from expat and dependents’ fees, visa-free international travel, and the right to own real estate and operate a business without requiring a sponsor.
In January 2024, the Kingdom added five new products to its premium residency program. Under the new addition, the most notable one was the ability to own residential real estate assets worth a minimum of SR4 million ($1.07 million) within the Kingdom.
The rise in the number of HNWIs in Saudi Arabia coincides with the extensive Vision 2030 economic reform program launched in 2016.
Efforts to diversify the Kingdom’s economy have also included a push to attract international companies to establish their regional headquarters in Riyadh, and as of March, over 600 global firms have opened their regional base in Saudi Arabia.
Affirming the growth of Saudi Arabia, Knight Frank, in April, said that HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah.
The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the end of this decade.
Growth of Middle East region
The report also said the Middle East and Africa registered modest growth in HNWI wealth in 2024, gaining 0.9 percent and 4.7 percent, respectively, compared to the previous year.
In 2024, the HNWI population in the Middle East witnessed a decline of 2.1 percent, while it grew by 3.4 percent in Africa.
“In the Middle East, OPEC’s extension of oil production cuts and comparatively low oil prices, well below their peak in 2022, contributed to weak growth,” said Capgemini.
Global outlook
According to the report, the global HNWI population increased by 2.6 percent year on year in 2024.
Capgemini said the increase was driven by the growth in the population of ultra-HNWIs — those who hold at least $30 million in assets — which grew by 6.2 percent, as strong stock markets and artificial intelligence optimism boosted portfolio returns.
North America saw the biggest gains, with the HNWI population rising by 7.3 percent.
Europe’s HNWI population declined 2.1 percent due to economic stagnation in major countries like the UK and France, while Latin America also witnessed a drop of 8.5 percent, due to currency depreciation and fiscal instability.
Asia-Pacific’s HNWI population increased 2.7 percent year on year in 2024.
Within the largest individual markets, the US topped the list, adding 562,000 millionaires as the country’s HNWI population grew by 7.6 percent to 7.9 million.
India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires, respectively, last year.
The HNWI population in China declined by 1 percent.
Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week
- Benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment
- Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week
RIYADH: The Muscat Stock Exchange extended its rally for a fifth consecutive week, with market capitalization rising to 28 billion Omani rials ($72.8 billion) in the week ending June 7.
Driven by gains in key services and industrial stocks, the benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment and increased activity across sectors, the Oman News Agency reported. The bourse recorded a weekly market capitalization gain of 79.3 million rials.
This comes as markets across the Middle East and North Africa rallied in early 2025, with the Arab Monetary Fund’s May report showing its Composite Index rising 4.37 percent year on year, supported by reforms to boost liquidity and attract foreign investment.
“Last week witnessed a good performance for the stock market, with 34 securities rising, 30 declining, and 17 remaining stable,” the Oman News Agency report stated.
It added: “Muscat Gases recorded the highest increase, rising 18 percent to close at 118 baisas. Galfar Engineering and Contracting rose to 72 baisas, up 9 percent. National Gas recorded an 8.8 percent increase to close at 86 baisas.”
National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co., which operates in the bottling and distribution of liquefied petroleum gas in Dhofar Governorate. The acquisition is expected to strengthen its presence in Oman’s LPG market and boost group-level revenues and net profits.
Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week, while average daily transactions climbed to 2,149 from 1,787. The trading week was shortened to four days due to the Eid Al-Adha holiday, with the exchange set to resume operations on June 10.
The services sector led gains, with its index rising five points on the back of strong performances from Ooredoo, Omantel, and OQ Gas Networks. In contrast, the industrial index fell 17 points, the financial index dropped 10 points, and the Shariah index edged lower by less than one point.
Last week, investors concentrated on OQ Base Industries shares, which traded 10.584 million rials — 24 percent of the total 44 million rials traded. The stock saw 1,678 transactions and closed at 122 baisas, up 4 baisas.
Bank Muscat’s shares recorded 5.48 million rials in trades, accounting for 12.4 percent of the total trading value. OQ Gas Networks ranked third, with trades worth approximately 5.1 million rials.
Sohar International Bank was fourth, with trading valued at 5.03 million rials. OQ Exploration and Production came fifth, with trades totaling 4.30 million rials, representing 9.7 percent of the total trading value.
GCC exceeds global average in 2024 Carbon Circular Economy Index
- Region’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies
- Expansion reflects increased investments in solar, wind, and other clean energy projects
RIYADH: Gulf Cooperation Council countries have outperformed the global average in the 2024 Carbon Circular Economy Index, scoring 41.5 points, latest data showed.
Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions through a balanced approach that incorporates mitigation technologies and enabling tools.
It also measures their transition to a carbon-neutral future based on circular economy principles, the Oman News Agency reported.
The GCC’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies.
Its push toward a circular carbon economy aligns with broader economic diversification goals, as the region seeks to reduce its reliance on hydrocarbons while tackling environmental challenges.
“The contribution of the design capacity of renewable energy plants in the GCC countries to the total design capacity of renewable energy plants worldwide also increased, reaching 0.43 percent in 2024, compared to 0.03 percent in 2015,” the ONA report stated.
This expansion reflects increased investments in solar, wind, and other clean energy projects across the region.
With some member states ranking among the world’s highest per capita emitters, the shift to sustainable practices — such as waste recycling, renewable energy development, and carbon capture — aims to balance continued energy leadership with climate commitments.
According to the Jeddah-based Gulf Research Center, rapid urbanization and resource-intensive consumption patterns have further driven the need for circular solutions, particularly in water and waste management, as the GCC works to mitigate its ecological footprint while fostering green investment and job creation.
Currently, the GCC operates three commercial carbon capture and storage facilities, with a combined capacity of 3.8 million tonnes of CO2 per year. These facilities play a crucial role in reducing industrial emissions, the ONA report noted.
Looking ahead, the region is projected to capture and store up to 65 million tonnes of CO2 annually by 2035. CCS technology is a key component of the GCC’s strategy to limit global temperature rise to 2 degrees Celsius and achieve carbon neutrality by 2050.
GCC’s leadership
During its G20 presidency in 2020, Saudi Arabia introduced the Circular Carbon Economy Framework, which was endorsed by G20 leaders as a sustainable and cost-effective approach to tackling climate change while ensuring energy security.
Building on this momentum, the Kingdom launched its CCE National Program in 2021, focusing on emissions reduction through four key strategies: reduce, reuse, recycle, and remove.
Saudi Arabia has since implemented over 30 CCE initiatives across its energy sector, aligning with Crown Prince Mohammed bin Salman’s 2021 pledge to achieve net-zero emissions by 2060.
The UAE has also emerged as a regional leader in circular economy policy. Its Circular Economy Agenda 2031 serves as a national blueprint, outlining 22 policies across four key sectors — manufacturing, food, infrastructure, and transportation — to drive advanced recycling, economic growth, job creation, and resource efficiency.
As host of COP28, the UAE reaffirmed its global sustainability commitment, leveraging its strengths in green finance, clean energy, and climate innovation.
