Lebanon’s ‘lung’ to Arabian Gulf markets choked by politics

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Workers close the doors of a refrigerator truck loaded with fruits for export from Lebanon to the Gulf and other Arab countries, at a packaging warehouse, in Bar Elias town, in Bekaa Valley, Lebanon. (AP/Hussein Malla)
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A Lebanese customs officer walks past trucks waiting to cross into Syria from the Lebanese border crossing point of Al-Masnaa, in Bekaa Valley, Lebanon. (AP/Hussein Malla)
Updated 13 November 2018
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Lebanon’s ‘lung’ to Arabian Gulf markets choked by politics

  • Lingering disputes between Lebanon and Syria, and political gridlock in Beirut, mean that many Lebanese businesses still rely on longer and costlier transport by sea
  • Lebanon’s exports plunged from a high of 78 percent of GDP in 2008 — three years before the start of Syria’s civil war — to a low of 36 percent in 2017

AL-MASNAA, Lebanon: Lebanese exporters rejoiced last month when the Syrian government opened a key land crossing with Jordan that had been closed by years of war, restoring a much-needed overland trade route to lucrative Arabian Gulf markets.
But lingering disputes between Lebanon and Syria, and political gridlock in Beirut, mean that many Lebanese businesses still rely on longer and costlier transport by sea, further stalling efforts to restore an economy battered by years of war in its larger neighbor.
The reopening of the Naseeb-Jaber crossing allowed Mohammed Araji, owner of a trucking firm in Lebanon’s Bekaa Valley, to retrieve two trucks that had been stranded in Jordan since 2015, when Syrian rebels captured the crossing. Two other of his refrigerator trucks had been parked in front of his house for the last three years.
Even before the crossing officially closed, his brother was briefly abducted by rebels while driving a truck through Syria, underscoring the perils they faced in trying to keep the route open.
The crossing was Lebanon’s “lung,” Araji said, and its closure was a “death blow” to the economy, affecting farmers, merchants, industrialists and drivers. So he was pleased when Syrian government forces reopened the crossing and secured the route.
But for weeks he was unable to find exporters ready to give him shipping contracts. Finally, on Saturday, he sent his first truckloads to Saudi Arabia after offering an exporter an attractive price.
“People are still waiting to see what will happen,” he said.
The land route through Syria, Jordan and Iraq is vital to Lebanon, which is squeezed between Syria, the closed border with Israel, and the sea. Lebanon’s exports plunged from a high of 78 percent of GDP in 2008 — three years before the start of Syria’s civil war — to a low of 36 percent in 2017.
Before Naseeb’s closing, more than 250 trucks a day headed from Lebanon to markets in Syria, Jordan, Iraq and the Gulf. After the closure, that dropped to some 300 trucks in a good month, bound only for Syria, customs officials said.
An estimated 550,000 tons of vegetables and fruits a year used to be exported through the Syria-Jordan crossing, according to Ibrahim Tarshishi, head of the Bekaa farmer’s union. Since the shutdown, that flow has dropped by nearly 40 percent, to no more than 330,000 tons. Exports from Bekaa to Saudi Arabia have dropped by 60 percent, according to figures from the Bekaa chamber of commerce.
After the crossing reopened, Syria and Jordan imposed new transit tariffs on trucks heading to the Gulf. The Syrian increase alone was five-fold, Tarshishi said. Lebanon meanwhile subsidizes transport by sea.
Traders hope improved ties between Syria and Lebanon will lead to reduced tariffs, but Lebanon’s political leaders are fiercely divided between supporters and opponents of President Bashar Assad, and they have been unable to form a government since elections in May.
Contacts among Lebanese and Syrian officials remain personal and partisan — and some complain Syria is using the tariffs to force normalization. Experts say opaque policies and decision-making have also hindered trade.
Charles Zarzour, the head of the government agency for agricultural exports and imports, said the opening of the crossing has at least offered “psychological relief” to traders.
“God willing, when we have a government in Lebanon, it lays down a wise policy that serves the country’s interest,” including tariff reductions, he told The Associated Press.
Syrian officials had no immediate comment.
Tarshishi has pressed for an end to the sea shipping subsidies and other government action to revive land exports, but in the caretaker government “no one wants to take responsibility,” he said.
On a recent afternoon at Al-Masnaa, the Lebanese side of the crossing into Syria, nearly a dozen trucks loaded with bananas were bound for Damascus. Just one truck, carrying cleaning supplies, was heading to Jordan. None were bound for the Gulf.
Talal Darwish, a produce exporter, is still sending his grapes, apples and pears by sea, and on a recent day, workers raced to prepare a shipment bound for Kuwait. By land would be cheaper and faster — a five-day trip as opposed to 25.
He has heard talk of efforts to reduce tariffs, but says “we still don’t know officially, so there is no rush.”


Open Forum Riyadh to discuss digital currency, AI, and mental health

Updated 26 April 2024
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Open Forum Riyadh to discuss digital currency, AI, and mental health

  • The event will run in parallel to the WEF’s Special Meeting on Global Collaboration

LONDON: The Open Forum Riyadh — a series of public sessions taking place in the Saudi capital on Sunday and Monday — will “spotlight global challenges and opportunities,” according to the organizers.

The event, a collaboration between the World Economic Forum and the Saudi Ministry of Economy and Planning, will run in parallel to the WEF’s Special Meeting on Global Collaboration, Growth and Energy for Development, taking place in Riyadh on April 28 and 29.

“Under Saudi Vision 2030, Riyadh has become a global capital for thought leadership, action and solutions, fostering the exchange of knowledge and innovative ideas,” Faisal F. Alibrahim, Saudi minister of economy and planning, said in a press release, adding that this year’s Open Forum being hosted in Riyadh “is a testament to the city’s growing influence and role on the international stage.”

The forum is open to the public and “aims to facilitate dialogue between thought leaders and the broader public on a range of topics, including environmental challenges, mental health, digital currencies, artificial intelligence, the role of the arts in society, modern-day entrepreneurship, and smart cities,” according to a statement.

The agenda includes sessions addressing the impact of digital currencies in the Middle East, the role of culture in public diplomacy, urban development for smart cities, and actions to enhance mental wellbeing worldwide.

The annual Open Forum was established in 2003 with the goal of enabling a broader audience to participate in the activities of the WEF, and has been hosted in several different countries, including Cambodia, India, Jordan and Vietnam.

The panels will feature government officials, artists, civil-society leaders, entrepreneurs, and CEOs of multinationals.

This year’s speakers include Yazeed A. Al-Humied, deputy governor and head of MENA investments at the Saudi Pubic Investment Fund; Princess Reema Bandar Al-Saud, Saudi Arabia’s ambassador to the US; and Princess Beatrice, founder of the Big Change Charitable Trust and a member of the British royal family.

Michele Mischler, head of Swiss public affairs and sustainability at the WEF, said in a press release that the participation of the public in Open Forum sessions “fosters diverse perspectives, enriches global dialogue, and empowers collective solutions for a more inclusive and sustainable future.”


Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

Updated 26 April 2024
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Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

SHANGHAI: Chinese food delivery giant Meituan is seeking to hire staff for at least eight positions based in Riyadh, in a sign it may be looking to Saudi Arabia to further its global expansion ambitions, according to Reuters.

The jobs ads, which is hiring for KeeTa, the brand name Meituan uses for its food delivery operations in Hong Kong, is seeking candidates with expertise in business development, user acquisition, and customer retention, according to posts seen by Reuters on Linkedin and on Middle Eastern jobs site Bayt.com.

Meituan did not immediately respond to a request for comment by Reuters on its plans for Saudi expansion.

Bloomberg reported earlier on Friday that the Beijing-based firm would make its Middle East debut with Riyadh as the first stop.

Since expanding to Hong Kong in May 2023, Meituan’s first foray outside of mainland China, speculation has persisted that its overseas march would continue as the firm searches for growth opportunities, with the Middle East rumored since last year to be one area of possible expansion.

“We are actively evaluating opportunities in other markets,“ Meituan CEO Wang Xing said during a post-earnings call with analysts last month.

“We have the tech know-how and operational know-how, so we are quietly confident we can enter a new market and find an approach that works for consumers there.” 


IMF opens first MENA office in Riyadh

Updated 26 April 2024
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IMF opens first MENA office in Riyadh

RIYADH: The International Monetary Fund has opened its first office the Middle East and North Africa region in Riyadh.

The office was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and regional integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

Additionally, the office will facilitate closer collaboration between the IMF and regional institutions, governments, and other stakeholders, the SPA report noted, adding that the IMF expressed its appreciation to Saudi Arabia for its financial contribution aimed at enhancing capacity development in its member countries, including fragile states.

Abdoul Aziz Wane, a seasoned IMF director with an extensive understanding of the institution and a broad network of policymakers and academics worldwide, will serve as the first director of the Riyadh office.

 


Saudi minister to deliver keynote speech at Automechanika Riyadh conference

Updated 26 April 2024
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Saudi minister to deliver keynote speech at Automechanika Riyadh conference

RIYADH: Saudi Arabia’s Deputy Minister of Investment Transaction Saleh Al-Khabti is set to deliver the keynote speech at a global automotive aftermarket industry conference in Riyadh.

Set to be held from April 30 April to May 2 in the Saudi capital’s International Convention and Exhibition Center, Automechanika Riyadh will welcome more than 340 exhibitors from over 25 countries.

Al-Khabti will make the marquee address on the first day of the event, which will also see participation from Aftab Ahmed, chief advisor for the Automotive Cluster at the National Industrial Development Centre, Ministry of Industry and Mineral Resources.

Saudi Arabia’s automotive sector is undergoing a transformation, with the Kingdom’s Public Investment Fund becoming the major shareholder in US-based electric vehicle manufacturer Lucid, and also striking a deal with Hyundai to collaborate on the construction of a $500 million-manufacturing facility.

Alongside this, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Kingdom’s first electric vehicle brand in November 2022.

Commenting on the upcoming trade show, Bilal Al-Barmawi, CEO and founder of 1st Arabia Trade Shows & Conferences, said: “It is a great honor for Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministry of Investment, and we’re grateful for their continued support as the event goes from strength-to-strength.

“The insights and support we’ve already received have been invaluable, and we look forward to continuing this relationship throughout the event and beyond.”

This edition of Automechanika Riyadh will feature seven product focus areas, including parts and components, tyres and batteries, and oils and lubricants.

Accessories and customizing, diagnostics and repairs, and body and paint will also be discussed, as well as care and wash. 

Aly Hefny, show manager for Automechanika Riyadh, Messe Frankfurt Middle East, said: “The caliber of speakers confirmed to take part at Automechanika Riyadh is a testament to the event’s growth and prominence within the regional automotive market.

“We have developed a show that goes beyond the norm by providing a platform that supports knowledge sharing and networking while promoting the opportunity to engage with key industry experts and hear the latest developments, trends and innovations changing the dynamics of the automotive sector.”


Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

Updated 26 April 2024
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Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

SEOUL: South Korea’s S-Oil forecast on Friday that second-quarter refining margins will be steady, supported by regular maintenance in the region, then trend upward in tandem with higher demand as the summer season gets underway, according to Reuters.

Over the January-March period, the refiner said it operated the crude distillation units  at its 669,000-barrel-per-day oil refinery in the southeastern city of Ulsan at 91.9 percent of capacity, compared with 94 percent in October-December.

S-Oil, whose main shareholder is Saudi Aramco, plans to shut its No. 1 crude distillation unit sometime this year for maintenance, the company said in an earnings presentation, without specifying the time.