https://arab.news/645xg
RIYADH: Four special economic zones are to be established in Saudi Arabia, Crown Prince Mohammed bin Salman announced on Thursday.
The aim of the new zones, which will be located in Riyadh, Jazan, Ras Al-Khair and King Abdullah Economic City, is to open up new opportunities for international investors, the Saudi Press Agency reported.
“Saudi Arabia is open for business and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer,” the crown prince said.
“The new special economic zones launched today will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our gross domestic product.”
The zones will take advantage of the Kingdom’s strategic location to create new hubs for businesses across key growth sectors so that they can launch and expand companies and technologies that will help shape the future, according to the SPA.
They will support existing national strategies and create new links with international frameworks, building on the competitive advantages of each region of the country to support key sectors such as logistics, advanced manufacturing, technology, and other priority sectors in the Kingdom, it added.
The benefits to companies of operating in the zones will include: competitive corporate tax rates; exemption from customs duties on imports, production inputs, machinery and raw materials; 100 percent foreign ownership of companies; and flexibility to attract and hire the best talent worldwide.
The zones will also provide tremendous opportunities for developing the local economy, generating jobs, and localizing supply chains, officials said. They are said to represent a continuation of long-running initiatives that aim to transform the Kingdom into a global investment destination and a vital hub for global supply chains, by capitalizing on its position at the heart of global trade routes.
Thanks to a detailed program of regulations and incentives, the zones will offer rewarding and attractive benefits to foreign investors, officials said. The program will also allow for the acceleration of reforms required to facilitate business in all parts of the Kingdom, they added.
The new zones build on previous free-zone initiatives in the Kingdom, including the recent launch of an integrated special zone for logistics at King Salman International Airport in Riyadh. Together, they represent the first phase of a major, long-term program designed to encourage foreign direct investment, attract the most talented professionals from around the world, and promote entrepreneurship and economic development within the Kingdom, officials said.
The zones, which will be regulated by the Economic Cities and Special Zones Authority, will provide fresh solutions to the challenges many global businesses face as they attempt to localize and strengthen supply chains, they added, and help the Kingdom take advantage of key macroeconomic shifts to create a truly differentiated business environment, activating new sectors and value chains.
Saudi Minister of Investment Khalid Al-Falih, who is the chairman of the Economic Cities and Special Zones Authority, said: “This is an exciting moment. We are proud to see the launch of these four special economic zones that offer the chance for foreign investors to have a stake in the world’s fastest growing economy.”
The Secretary-General of the authority, Mr. Nabil Khoja, added, “With hugely attractive financial incentives, world-class infrastructure, business-friendly regulations and streamlined procedures for investors, there has never been a better time to be part of Saudi Arabia’s economic success story. The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology and improving our global links.”
Special economic zones – or SEZs – are geographically defined areas that facilitate specific economic activities, such as investment, trade and employment, by providing competitive advantages and legislative frameworks that differ from the base economy.
The zones launched today cover a wide range of industries:
King Abdullah Economic City (KAEC) SEZ
The premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods, ICT to MedTech. Set in a prime location on the Red Sea, less than 90 minutes from Jeddah Airport, this 60km2 site offers unrivaled access to global trade routes through King Abdullah Port, ranked the world’s most efficient by the World Bank in 2022. Anchor investor Lucid, a leader in the global EV industry, will produce 150,000 EVs a year from its base in KAEC SEZ.
Jazan SEZ
An industrial center and key platform for trade with fast-growing markets in Africa and Asia. Jazan SEZ offers access to the largest port in the region for export of goods and import of materials, helping investors benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world, backed by easy access to both natural and industrial resources. Jazan is part of the Kingdom’s fertile southwestern region, providing opportunities for the manufacturing, processing and distribution of food products to cater for growing regional demand and meet food security challenges across the region.
Ras Al-Khair SEZ
A launchpad on the Arabian Gulf for leaders in the maritime industry, Ras Al-Khair SEZ is a fully integrated marine ecosystem, with a rich network of existing investors – 40% of the zone is already reserved – and myriad opportunities across shipbuilding and repair, offshore drilling and maritime value chains.
Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST)
In King Abdulaziz City for Science and Technology (KACST), a new Cloud Computing SEZ will serve as a hub for emerging and disruptive technologies. A direct manifestation of the Kingdom’s ‘Cloud First’ policy, the Cloud Computing SEZ underlines the Kingdom’s commitment to digital innovation and the fast-growing tech sector. The Zone is based around an innovative hybrid model that allows investors to establish physical data centers and cloud computing infrastructure in multiple locations within the Kingdom.
TOKYO : Japan’s automakers are facing a sales crisis in China, data shows, as a rapid shift to electric vehicles (EVs) has upended the world’s largest auto market and led to a plunge in purchases of gasoline-powered cars.
Total sales of Japanese auto brands in China were down 32 percent year-on-year in the first quarter, more than double the pace of the overall market contraction, industry data analyzed by Reuters showed.
While other automakers like Volkswagen AG have also been caught out by the sharp shift in China, Japanese automakers stand out because of their limited showing in the fast-growing category of electric and plug-in hybrid sales.
Production and margins will come under pressure in China as automakers cut output and prices of gasoline-powered cars to keep inventories in check, analysts say, in a worrying sign of the competition Japanese automakers could increasingly face outside their home market.
“Especially Japanese automakers face a little bit more inventory of new cars,” in China, Yasushi Matsui, chief financial officer at parts supplier Denso Corp, said last week. “They are making adjustments.”
Mitsubishi Motors Corp, said last week it had suspended production of its Outlander SUV in China for three months and would take a charge of $77 million for slowing sales at its joint venture with state-owned GAC Group.
Mitsubishi, like some other Japanese automakers, does not break out China sales figures. Industry data analyzed by Reuters showed its first-quarter sales in China fell by 58 percent from a year earlier.
In another shift, Nissan’s Sylphy, a sedan that had been China’s top-selling vehicle for three years, was edged out last year by the BYD Song, a plug-in hybrid made by BYD, China’s top automaker.
In emailed comments, Nissan said it had sold over 5 million Sylphys in China over the years, adding that an electric-drive hybrid version was eligible for incentives in Guangzhou.
The company said it was working with other cities on similar support. The e-Power electric-drive hybrid version of the sedan would be central to Nissan’s brand transformation in China, it said.
’Japan is the biggest loser’
Toyota Motor Corp. has said its go-slow approach to all-electric cars protects consumer choice, but the strategy is costing sales in China, analysts say.
“Japan is the biggest loser of the price war so far,” said Bill Russo, founder and CEO of Automobility, a Shanghai-based consultancy.
“As EVs get more affordable, they become more attractive to the core buyers who have been resisting so far, the buyers of foreign brands. So, you can see the writing is on the wall.”
Japan’s share of car sales in China slumped to 18.5 percent in the first quarter, down from 24 percent in 2020, industry data from the China Association of Automobile Manufacturers analyzed by Reuters showed.
Toyota and its luxury brand Lexus posted a 14.5 percent drop in first-quarter sales, company data showed.
“We need to increase our speed and efforts to firmly meet the customer expectations in the Chinese market,” Toyota CEO Koji Sato said in an interview last month.
Nissan Motor Co. Ltd. posted a 45.8 percent drop in China sales and Mazda Motor Corp. sales were down 66.5 percent in the first quarter. Honda Motor Co. Ltd. had a 38.2 percent drop, industry data showed.
Honda Chief Executive Toshihiro Mibe acknowledged the automaker lagged Chinese rivals in some software technologies.
China’s automakers are “further ahead of us than we expected,” Mibe told reporters at a presentation in Tokyo focused on Honda’s efforts in autonomous driving and services like gaming.
Japanese automakers built their reputation on factors like durability, but the shift in China shows the draw of lower-priced electric cars and new offerings based on software, said Masatoshi Nishimoto, principal research analyst at S&P Global Mobility in Tokyo.
“Japanese automakers could face a similar struggle in the United States as in China,” he said.
DUBAI: The relationship between France and the Gulf countries has undergone significant political, economic, and cultural developments over the past few years.
In an interview with Arab News en Francais, Axel Baroux, trade and invest commissioner of Business France Middle East, introduces the upcoming event “Vision Golfe 2023.”
The anticipated conference of the year: “Vision Golfe”
“In the era of ‘visions,’ I am pleased to announce that we are organizing the first edition of ‘Vision Golfe’ on June 13 and 14,” declared Axel Baroux.
The two-day event, held in Paris, aims to become the economic conference of reference for France and the Gulf Cooperation Council countries. “Vision Golfe” will take place at the Ministry of Economy, Finance, Industry and Industrial and Digital Sovereignty, under the patronage of President Emmanuel Macron.
“Vision Golfe” is the new platform promoting business cooperation in high growth potential markets, and an opportunity to meet key economic players — ministers, SME managers, start-ups, and senior executives, among others.
Despite the challenges facing the global economy, the GCC countries’ economic diversification strategy, geared towards sustainable development and energy transition, offers an environment conducive for attracting talents and investments in various sectors such as energy, healthcare, technology, agri-food, and tourism.
“France is fully committed to participating and contributing to the visions of the Gulf countries with its expertise in key sectors and its strong decarbonization strategy,” Baroux said.
Saudi Arabia and the UAE are the largest markets in a region marked by considerable growth in trade. Baroux highlighted that the French exports to the GCC were valued at €15 billion ($16.5 billion) in 2022.
Best practices and success stories
“Vision Golfe” will be an opportunity to present “success stories” and major partnerships’ contributions to the strategies of Gulf countries.
On the agenda is an opening speech by Laurent Saint Martin, the director general of Business France, in the presence of French and regional ministers, and a “Doing Business” in the Gulf countries session, moderated by the GCC Secretary-General Jasem Al-Budaiwi.
Thematic discussions and round tables are planned, with a list of topics including but not limited to:
– Best practices for building lasting partnerships;
– Opportunities for cooperation and investment in various sectors;
– France as the most attractive destination in Europe for foreign direct investment.
Trade relations between France and the GCC countries
“The commercial partnership between the GCC countries and France is an important element and a priority for the French government,” said Baroux.
To this end, Business France Middle East organizes more than 70 business meetings, acceleration programs and France pavilions per year to connect French companies and local entities and facilitate investment opportunities.
“A good example of a partnership which will be effective in the coming weeks is E-Fusion. A cooperation agreement specializing in the nuclear sector organized jointly with the Emirati operator, GIFEN, CSFN (the strategic committee for the nuclear sector) and Business France. An incubation program leading to the development of the French economic presence in the UAE,” declared Baroux.
French know-how: Strong potential in the Gulf region
The French presence in the region is well established. In the energy sector, Veolia and Engie invested in the energy transition of the Gulf countries.
France is also stepping up its investments in renewable and nuclear energy in line with the France 2030 Plan, and “its declared ambition to become the first major carbon-free economy in Europe by achieving carbon neutrality by 2050,” explains Baroux.
In the healthcare sector, French pharmaceuticals such as Ipsen, Air Liquide, and Sanofi are present in the Kingdom and in the UAE.
In the food industry, the UAE is becoming an attractive destination for French companies establishing a strong presence in the country with more than 400 restaurants and points of sale of French products (Philibon, St Michel, Isigny Ste Mere, etc.)
Baroux emphasizes the rise of French-style concepts in Saudi Arabia, where French know-how has managed to position itself as a reference in catering focused on quality and excellence.
In the logistics and transport sector, the France-GCC collaboration aims to improve infrastructure. One of the largest railway projects in the world, the project between Makkah and Madinah, was carried out by a French consortium (SNCF, RATP and Alstom).
Investments from the Middle East to France
France has always been a preferred destination for investors from the Gulf states, including sovereign wealth funds, historically active in real estate, hotels, infrastructure, and the acquisition of minority stakes in French groups.
Investments from the Gulf states are directed towards economic diversification and the opportunities represented by new technologies.
France has been able to attract this new type of investments from both institutional investors and private groups from the Gulf region.
Through its US subsidiary GlobalFoundries, the Abu Dhabi sovereign wealth fund Mubadala launched the creation of a semiconductor plant in 2022. An investment of €5.7 billion in partnership with the STMicroelectronics group.
The private Saudi group BinDawood has, through its French subsidiary (Future Retail for Information Technology Co.), acquired a majority stake in the French digital marketing company Ykone, to develop its e-commerce strategy.
“FDIs from the Near and Middle East region to France are estimated at €13.7 billion, but these figures are underestimated given the financial investments often made indirectly,” confirmed Baroux.
France and Saudi Arabia: A historic partnership
“France is a historic partner of Saudi Arabia. We are keen to further develop France’s position and its contribution to the realization of the megaprojects under Vision 2030,” added Baroux.
The Business France team in Saudi Arabia supports French companies in their development projects in the Kingdom. The second edition of the French Fab Booster is set to serve as a Franco-Saudi accelerator program focused on innovative companies in the areas of Industry 4.0.
“Vision Golfe” is anchored in this dynamic of accelerating commercial partnerships between France and key players in the region, namely Saudi Arabia, to promote new opportunities and foster potential synergies across various sectors.
RIYADH: Saudi Arabia’s Tadawul All Share Index gained 45.60 points or 0.41 percent to close at 11,118.77, driven by oil prices that rebounded after plunging consecutively for three days.
While the parallel market Nomu rose 224.72 points to 20,895.57, the MSCI Tadawul Index also inched up slightly by 0.34 percent to 1,497.92.
The total trading turnover of the benchmark index was SR4.67 billion ($1.25 billion).
On Thursday, Brent futures rose by 30 cents to $73.63 a barrel at 3:40 p.m. Saudi time, while West Texas Intermediate crude also climbed 8 cents to $68.68.
National Medical Care Co. was the top performer of the day, as its share price went up by 5.7 percent to SR98.30.
Other top performers were Salama Cooperative Insurance Co. and Fawaz Abdulaziz Alhokair Co., whose share prices climbed by 5.19 percent and 4.13 percent, respectively.
The worst performer of the day was Retal Urban Development Co., whose share price dropped by 4.61 percent to SR12.
On the announcements front, energy giant Saudi Arabian Oil Co.’s base oil subsidiary Luberef revealed that its net profit rose 47 percent to SR445.7 million in the first quarter of 2023 from SR302.6 million in the same period a year ago.
However, Americana Restaurants International announced that its net profit went down 19 percent to SR218 million in the first quarter of 2023 from SR270 million in the same period of 2022.
In a statement to Tadawul, Americana Restaurants said that the fall in profit was due to higher commodity prices and lower sales volumes in March due to Ramadan.
Power and Water Utility Co. for Jubail and Yanbu also reported a 25.34 percent drop in net profit in the first quarter of this year to SR106.7 million, from SR143 million in the same quarter of 2022.
Meanwhile, Jamjoom Pharmaceuticals Co. announced its plans to opt for an initial public offering on the Saudi exchange’s primary market.
The company said in a statement that it is planning to offer 21 million of its existing shares, equivalent to 30 percent of its issued share capital.
RIYADH: Air travelers to the UAE can now experience more than one destination with a single itinerary as its two flag carriers, Emirates and Etihad Airways, announced an interline agreement to boost tourism in the country.
The UAE airlines signed a memorandum of understanding which will see passengers of each carrier able to book a single ticket into either Dubai or Abu Dhabi, with a return through another airport.
As a result, travelers will have more freedom to organize their travel schedule at their convenience by removing the need to fly home via their arrival airport.
“We are pleased to be working again with Etihad Airways — this time to allow each carrier to offer a new range of seamless travel options in and out of the UAE. Emirates and Etihad are leveraging on our strengths to expand our respective customer offerings and boost UAE tourism,” Emirates President Tim Clark said in a statement on Thursday.
The arrangement will initially concentrate on encouraging tourists from specific locations in Europe and China to the UAE.
Travelers will also have the option of multi-city flights, where they can travel from one point on the carriers’ networks and conveniently return to another point served by them.
Etihad Airways CEO Antonoaldo Neves added: “Our interline agreement will make it more convenient for our guests to experience the best of Abu Dhabi and Dubai on one ticket while promising to deliver an exceptional flying experience whether they fly with Etihad Airways or Emirates. It’s a win-win proposition for travelers to the UAE.”
Emirates Chief Commercial Officer Adnan Kazim and Etihad Chief Operating Officer Mohammad Al-Bulooki signed the MoU on Thursday at the Arabian Travel Market in Dubai, noted the statement.
The two airlines’ collaboration shows their shared commitment to advancing tourism in the UAE and improving its standing as a top travel destination.
Clark added: “We believe this new agreement provides a strong foundation to develop further opportunities between both airlines and is an example of our commitment to the UAE’s vision for continued economic diversification.”
RIYADH: Saudi Arabia is widening its hospitality mix by introducing the luxury boutique hotel brand Kimpton to Riyadh in June 2024.
The confirmation came after the King Abdullah Financial District, the Public Investment Fund-owned project management company, signed a management agreement with IHG Hotels and Resorts on Thursday to launch a 200-room hotel in the capital.
The debut comes as part of IHG’s strategy to cater to a growing number of business travelers and meet the tourism objectives of the Vision 2030 blueprint.
The Kimpton Riyadh will be built in the heart of KAFD. It will offer five food and beverage options, including an all-day dining restaurant, a specialty restaurant, a lobby lounge, a lobby living room cafe and a pool bar.
Kimpton Riyadh will also host an outdoor amphitheater terrace, health club and swimming pool.
“We have identified a trend toward blended travel, with those traveling for work or business also seeking a lifestyle element to their stay,” said Haitham Mattar, managing director, IHG Hotels & Resorts for India, the Middle East and Africa.
Kimpton Hotels & Restaurants operates over 60 hotels and 75 restaurants, bars and lounges across the US, Canada, Europe, the Caribbean and Greater China.
“Saudi Arabia is one of the few countries worldwide that saw a rise in tourism investment and expenditure during the COVID-19 pandemic, with domestic tourism increasing by 33.6 percent and over SR80 billion ($21.33 billion) spent by tourists,” said Gautam Sashittal, CEO at KAFD Development and Management Co.
“As we look to make KAFD an essential part of the business landscape of the Kingdom, Kimpton Riyadh at KAFD will enable us to welcome diverse visitors for work, leisure or both,” he added.
Through this new property, IHG will focus on corporate executives and affluent Saudi families looking for a luxury lifestyle.
IHG currently operates 37 hotels across five brands in Saudi Arabia, including InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites, and voco, with 31 hotels in the development pipeline set to open within the next three to five years.