The Saudi government is leading a shift in food production that can effectively address climate change, while ensuring a sustainable future for agriculture.
This transformation was presented by the Saudi Minister of Economy and Planning, Faisal Al-Ibrahim, during his speech on Wednesday, at the annual meeting of the new “Davos Summer” of the World Economic Forum, held in Tianjin, China.
Al-Ibrahim highlighted the Kingdom’s initiatives to combat global food insecurity, including challenging food ecosystems in arid climates, launching the Green Initiative and the Food Security Strategy.
Focusing on three main facts about global food security, the minister revealed that 830 million people suffered from hunger, while the number of people living in acute food insecurity increased by 150 percent since 2019. He also pointed to the possibility that 700 million people will be displaced due to drought by 2030.
The minister of Economy and Planning said that immediate action was necessary to face multiple challenges, including the supply chain that promotes healthy consumption and reduces food loss.
During a session on innovation for food security, the minister emphasized the importance of access to smart capital, guidance and partnerships to stimulate innovation.
More than 1,500 global leaders from various sectors, including experts in the science and technology fields, are participating in the meeting. The agenda included more than 100 sessions that covered various issues, mainly global debt, financial stability and generative Artificial Intelligence.
During the meeting held in China, Saudi Arabia launched an innovative challenge for the participants – the Open Innovation Platform of the World Economic Forum – which was announced by the Ministry of Economy and Planning last January, in partnership with UpLink.
The ministry also launched another innovative challenge, represented by mobilizing transformative solutions that contribute to the provision of local food in countries affected by scarcity of rain, drought and desertification.
The winning startups will receive CHF 100,000 to develop their projects in order to encourage positive change for people and the planet.
Deputy premier Saade Chami said on Friday deputy governors of Lebanon’s central bank should run it if no governor is appointed by the end of the month, calling their threat to collectively resign “dangerous”.
Longtime governor Riad Salameh’s term expires at the end of July and one of the deputy governors told Reuters on Thursday they were considering quitting together if no successor is named, raising the possibility of the central bank being left leaderless amid a deep financial crisis.
Lebanon’s breakdown in governance and political tensions have hamstrung efforts to find a successor to Salameh, whose 30-year tenure has been stained by charges at home and abroad of embezzlement of public funds in Lebanon. He denies the charges.
In a statement to Reuters, Chami said the deputy governors should “assume their responsibility in case this appointment is not possible…The threat of resignation implied by the statement is quite dangerous at this critical juncture.”
The central bank leadership is appointed according to the sectarian power-sharing system that governs other top posts.
The governor must be a Maronite Catholic, while the four deputies – a Shiite Muslim, a Sunni Muslim, a Druze and an Armenian Catholic – must have the approval of the political chiefs representing their respective sects.
Some analysts wondered whether the resignation threat would push the political elite, which worked closely with Salameh for decades, to consider prolonging his tenure. Salameh has said he will leave when his term ends.
Asharq Al-Awsat has learned that the Saudi private sector is currently preparing a comprehensive report on the challenges encountered by investors in Egypt. The objective is to overcome these obstacles through collaboration with relevant entities in Cairo.
Saudi Arabia and Egypt have established over 160 bilateral agreements that promote economic growth between the two nations. Trade volume between the countries reached a historic high of approximately SAR 54 billion ($14.4 billion) in 2021, reflecting an impressive growth rate of 87% compared to 2020.
As per information obtained by Asharq Al-Awsat, the Council of Saudi Chambers has urged all companies and institutions operating in the Kingdom to identify the hurdles faced by investors in Egypt.
This initiative is part of the final preparations for the inaugural Gulf-Egyptian Business Forum, set to take place in November. The event is under the auspices of Egyptian President Abdel Fattah Al-Sisi.
The new measures were implemented under the directives of the General Secretariat of the Gulf Cooperation Council (GCC) Chambers of Commerce, which aim to overcome all the difficulties faced by Gulf companies in collaboration with relevant authorities in Egypt prior to the forum.
The Council of Saudi Chambers has set a deadline of July 20 to address all the challenges faced by investors, in order to take necessary actions and enhance the economic relations between the two countries.
Saudi exports to the Egyptian market reached approximately SAR 38.6 billion ($10.2 billion) in 2021, while Egyptian imports to the Saudi market amounted to SAR 15.7 billion ($4.1 billion), marking a record growth of 60%.
The Kingdom’s investments in Egypt have surpassed $32 billion, with more than 6,800 Saudi companies involved.
On the other hand, Egyptian investments in Saudi Arabia reached around $5 billion, with over 802 Egyptian companies operating in the Kingdom.
OPEC Secretary General Haitham Al-Ghais said he expected the organization’s market share to increase from 30% to more than 40% by 2040.
The increase will come from production decreases from non-OPEC+ countries, Al-Arabiya quoted Al-Ghais as saying.
“This will happen after production decreases from countries outside OPEC+ or outside OPEC. The US production is expected to decrease by 2029-2030, as well as other countries,” he told the agency.
For his part, Kuwaiti Oil Minister Saad Al-Barrak told the Emirates News Agency (WAM) on Thursday that his country would invest more than $300 billion in the energy sector by 2040.
The OPEC energy ministers held a meeting on Wednesday to attend the eighth international OPEC conference in Vienna.
Participants in the meeting reviewed the market conditions and agreed to continue consultations with their non-OPEC counterparts, through the approved mechanisms, including the Meetings of the Joint Ministerial Monitoring Committee, and the ministerial meeting of OPEC and non-OPEC countries, in continuation of their efforts to support the stability and balance of oil markets.
During the meeting, the ministers expressed their appreciation to Saudi Arabia for extending its voluntary cut of one million barrels per day, to the month of August.
They also thanked Russia for the additional voluntary cut of 500,000 barrels per day in exports, and Algeria for the additional voluntary cut of 20,000 barrels per day in August.
Meanwhile, the Iraqi Oil Ministry said that Oil Minister Hayan Abdul Ghani met with his Saudi counterpart, Prince Abdulaziz bin Salman, on the sidelines of the OPEC conference.
The two officials underlined the importance of joint coordination between the member states of the OPEC and OPEC Plus to achieve stability in global oil markets.
The world’s largest green hydrogen project in Saudi Arabia’s NEOM has formally entered the construction stage.
In a statement, ACWA Power said that its affiliate NEOM Green Hydrogen Co. issued a full award notice to proceed with the engineering, procurement and construction, which has been approved.
ACWA Power further pointed out that its SR1.12 billion ($300 million) contribution in the limited notice to proceed will become part of its equity contribution to the project.
The statement added that all project agreements have been signed, and partners have agreed to manage certain execution risks related to the EPC contract.
The green hydrogen facility will be based at Oxagon within the Saudi futuristic city NEOM and is due for completion by the end of 2026.
Qatar Airways has reported a record annual revenue of 76.3 billion riyals ($21 billion), underpinned by a higher customer base after the Doha-based carrier hosted the FIFA World Cup as its official partner and airline.
Net profit for the fiscal year 2022-2023 stood at 4.4 billion riyals ($1.21 billion), the company said in a statement, when the airlines carried 31.7 million passengers, a 71% jump year-on-year.
The airline recorded a load factor of 80% and yields, both the highest in the company’s history.
During the World Cup, Qatar Airways operated about 14,000 flights, bringing in more than 1.4 million fans to the Gulf country.
The airline could expand its number of destinations by more than 255 from 170 under plans for rapid growth, CEO Akbar Al Baker said in May, but its ability to do so depends on the delivery of additional aircraft.
Red Sea Global has announced the installation of 750,000 solar panels and five solar stations dedicated to the operation of the first phase of the “Red Sea Project,” which consists of 16 hotels, retail, and entertainment venues, and supporting infrastructure facilities to be powered entirely by renewable energy.
John Pagano, the CEO of Red Sea Global, explained that since the beginning, the company has been committed to adopting a different approach in its operations and projects.
Its development of the world’s largest tourism destination that is fully powered by renewable energy falls within such commitment, he said.
Pagano added that the installation of electroluminescent (EL) panels at the five solar stations had been completed as part of the first phase of the Red Sea Project, and the complete independence of the mega venture from the national grid makes it not only the largest but also the first of its kind in the world.
One of the solar stations is located near the Six Senses Southern Dunes, the Red Sea Resort, and Spa, the first solar-powered resort and hotel to be inaugurated of the 16 hotels of the first phase of the Red Sea Project.
Two solar stations are located near the Desert Rock mountain resort and the Sheybarah Resort on Sheybarah Island. Two other solar stations of larger capacity will power the remaining resorts and the 15 beach villas in the Turtle Bay Village.
Red Sea Global is also implementing the world’s largest battery storage facility at a capacity of 1,200MWh, which will enable the mega tourism project to achieve 100% grid independence, all within the commitment of the company in sustainability and development and to contributing to realizing the targets of the Saudi Vision 20230.
All vehicles transporting visitors of the Red Sea Tourism Project will be fully powered by solar energy, starting with their arrival at the Red Sea International Airport and continuing through their movements within the sites and between the nearby islands.
Red Sea Global is also investing in human capital. It has provided vocational training scholarships to 500 people in cooperation with the Human Resources Development Fund, of which 50 people have received training in renewables. Providing specialized training to a total of 10,000 Saudi citizens by 2030 is the target of the company.
Lebanon’s deputy central bank governors could all resign if no successor is appointed when current chief Riad Salameh’s term ends this month, one of the deputies said Thursday, raising the prospect of a leaderless central bank amid a financial crisis.
Salameh, whose 30-year tenure as governor has been stained lately by charges at home and abroad of embezzlement of public funds in Lebanon, is expected to leave his post when his term ends in late July. He denies the charges.
Lebanese authorities have not named a successor, with political factions stuck in a stalemate that has also left the presidency unfilled for more than eight months and cabinet operating in a caretaker capacity for over a year.
“In the absence of a comprehensive plan which allows us as monetary policymakers to take the required actions to protect the best interest of the country, it becomes urgent to take difficult choices,” deputy governor Salim Chahine told Reuters.
“Resignation is a possible outcome,” he said. Another central bank source familiar with the thinking of Wassim Mansouri, the first deputy governor, told Reuters that all four would resign if there was no successor to Salameh.
That source said Mansouri, who would have been first to take over should a governor not be appointed, saw the job as “a ball of fire” given the prolonged economic meltdown.
Chahine and the source spoke to Reuters following a rare statement signed by all four deputy governors saying the central bank could not be run in a caretaker capacity at such a sensitive time and that authorities must appoint a new head.
“We see it as our duty to stress the necessity of appointing a governor… as soon as possible, otherwise we will be forced to take the action we deem appropriate for the public interest,” the statement said, without explaining what the action may be.
Lebanon’s economy began to unravel in 2019 following decades of corruption and profligate spending by ruling politicians.
The nearly four-year economic meltdown has cost the local currency roughly 98% of its value, seen GDP contract by 40%, pushed inflation into triple-digits and drained two-thirds of the central bank’s foreign currency reserves, according to the International Monetary Fund.
Egypt is preparing to announce a considerable program of public offerings soon and is putting the final touches ahead of providing a comprehensive program with international standards that attract investments.
During the past months, authorities postponed several IPOs because of bad timing during a widespread economic downturn or a disagreement between the Egyptian government and foreign investors on the offerings.
The currency value is the biggest reason for the recent disagreements. A wide gap between the dollar price in the official and parallel markets, which sometimes reached about 30 percent, played a significant factor in the divergence of views.
Official ministerial sources revealed to Asharq Al-Awsat that extensive work is underway to bridge the gaps that hindered understanding of the IPO program.
The sources that asked not to be named indicated that the final details are being worked out on the comprehensive program, which will be presented during a huge conference under high-level sponsorship.
Cairo needs to accelerate the program of government offerings amid a stressful economic situation due to the decline of foreign reserves, and before the due dates and interests of some of the debts.
According to the data, the proposals program may include about 32 state-owned companies in stages during the coming months, including three banks, four government real estate companies, several hotels under government management, and insurance, energy, and transportation companies.
The offerings could reportedly be led by the army-owned Wataniya and Safi companies, perhaps during the month of July.
Meanwhile, the head of the Egyptian Stock Exchange (EGX), Rami el-Dokany, indicated in a televised statement that there are talks with an extensive list of private companies to be listed on the stock exchange.
Dokany pointed out the focus on companies that have dollar resources, export their products, or work in energy and tourism.
However, Bank of America’s head of EMEA equity capital markets, James Palmer, said he believed foreign investors continue to have appetite for Middle East IPOs.
“The pipeline is encouraging although we are not expecting a huge wave for the second half. Many situations are more focused on early or mid next year, rather than the back end of this year,” said Palmer.
Some Middle Eastern issuers “feel very good about a belief in the structural shift in the region, broadly defined; that is, the commitment in the region to develop and advance the capital markets, and commitments from local entities to show financial support for them,” he added.
Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ would do whatever is necessary to support the oil market.
The Minister was speaking on the sidelines of the 8th OPEC International Seminar in Vienna on Wednesday.
On Monday, Saudi Arabia said it would extend the one million-barrel-per-day (bpd) production cut it had initially flagged for July into August, while Russia announced a 500,000-bpd decline in exports next month.
The Minister said Saudi Arabia makes voluntary cuts “because there was another, more urgent demand from the market, or another, more necessary expectation that OPEC + should act.”
“If we want to be fair to everyone and if we want everyone to work together, we have to make sure that they maintain their focus on the most important topics and long-term issues. Deviating attention to another issue will lead to imbalances, which is why we chose to take this job on a provisional basis,” he said.
The Minister noted that in June 2020, Saudi Arabia, UAE, Kuwait, and Oman made a voluntary contribution for a month and voluntary reduction that began in February 2021 and lasted for three months.
“We made by gradually easing this reduction until July 2021.”
“I ask you where we would have been today had it not been taken these steps at the time. I have reassured the market that there is a necessity for this position,” he added.
Prince Abdulaziz explained that Russia’s reduction was voluntary, pointing out that the simultaneous decrease in supply by the Kingdom and Russia shows the strong cooperation between the two nations.
“Russia’s oil cut is meaningful because it affects exports,” he said.
The Minister said that Saudi Arabia is no longer playing the role of a heavyweight producer, but instead, OPEC + plays this role.
He added that enhancing transparency depends on seven independent external bodies accredited to follow up on the countries’ production in the oil cut agreement.
A recent report from the International Energy Agency (IEA) indicated that Russia did not comply with production cuts during May, and the Saudi Energy Minister warned that the data could disrupt the market.
In turn, UAE Energy Minister Suhail al-Mazrouei stressed that oil-producing countries have a more comprehensive view of the market and present a realistic outlook of the supply-demand balance.
Mazrouei explained that the periodic meetings of OPEC and OPEC+ help limit fluctuations and restore market balance and stability through cooperation and joint efforts, especially as OPEC and OPEC+ member countries account for around 40 percent of the global oil output.
“We are constantly working to monitor markets and relevant shifts to ensure taking timely and effective measures, which help boost stability across the market and drive economic development worldwide,” Mazrouei added in a statement carried by WAM news agency.
He promised that the additional oil production and export cuts announced by Saudi Arabia and Russia earlier this week would help balance the market.
The total production cuts currently amount to more than 5 million bpd, or the equivalent of five percent of global oil production of about 100 million bpd.
Aramco CEO, Amin al-Nasser, pointed out that the corrective measures taken by Saudi Arabia will impact in the coming months, announcing plans to increase gas production by 50 to 60 percent by 2030.
Also at the conference, the OPEC Secretary-General, Haitham al-Ghais, said that the organization is keen on stabilizing the market, reducing the environmental footprint, and moving towards a sustainable and comprehensive energy transition.
In his welcome speech at the conference, Ghais added that “sustainability” revolves mainly around balance and meeting current generations’ needs without compromising that of future generations.
He reviewed the importance of oil in global energy, the industry’s primary role in reducing carbon emissions, and OPEC’s efforts to achieve market stability, reduce the environmental footprint, and move towards a sustainable and comprehensive energy transition.
Private non-state oil-producing companies in Saudi Arabia and the UAE witnessed a powerful resurgence in June, fueled by a surge in production and new orders.
The notable surge in production and new orders in Saudi Arabia, reaching the highest levels in several years, prompted companies in the Kingdom to ramp up their purchasing activities swiftly, aiming to meet the growing demands for inventory support.
These insights are based on Riyad Bank Saudi Arabia Purchasing Managers’ Index report, compiled by S&P Global.
June’s headline PMI number came in at 59.6, up on May’s 58.5 and again indicative of a strong, above trend rate of growth.
According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.
“The Kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities,” said Naif Al-Ghaith, the chief economist at Riyad Bank.
The sub-index for new orders rose to 69.5 in June from 67.3 in the previous month, marking its highest level since September 2014. This increase was driven by strong demand and favorable market conditions.
The Saudi government is injecting billions of dollars into the development of non-oil sectors, aiming to diversify revenue sources away from hydrocarbons. Special emphasis is placed on creating employment opportunities for the youth.
“Ultimately, government-backed investments, especially in construction and infrastructure projects, remain crucial for the business sector,” said Al-Ghaith.
He further added that the sentiment towards future activity remains positive.
Commenting on the recent figures, Saudi Shura Council member Fadhel Al-Buainain told Asharq Al-Awsat that the Saudi economy has entered an important phase of growth after recovering from the coronavirus pandemic.
According to Al-Buainain, the witnessed recovery is a result of the government’s measures to mitigate the pandemic’s negative impacts on the economy.
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