I met Raja Al-Mazrouei in the glittering new FinTech Hive at the Dubai International Financial Center (DIFC), all open-plan workspaces, break-out areas and coffee machines.
There is even a sound-proofed pod suspended from the ceiling that looks like a football cut in half, where you can make mobile calls without being disturbed by the background noise from the young entrepreneurs who will be working there.
I remarked to her that it was all “pretty hip,” and she replied, “Yes, I suppose you could call it hip.”
Since May this year, Al-Mazrouei has been in charge of the DIFC’s financial technology (fintech) initiative, which the center sees as a crucial part of its ambitious plan to triple in size by 2024, helping maintain Dubai’s lead as the premier financial marketplace in the region.
Last week, it officially opened the FinTech Hive at DIFC, and marked that by announcing the names of 11 successful applicants to its “accelerator” program, designed to attract fast-growing fintech companies to Dubai. “It’s been very busy,” Al-Mazrouei said.
Fintech is as hip as it gets in the sometimes dull world of financial services. Essentially, it is the application of new technology to the finance industry, ranging from mobile-based personal banking services through to huge global systems like the blockchain digital accounting system and cryptocurrencies like bitcoin.
Fintech has attracted an army of smart young entrepreneurs, all keen to win a slice of the estimated $50 billion that has been invested in fintech in recent years, according to a recent analysis by consultants Accenture. The DIFC’s Hive is the latest bid to create a fintech hub in the Arabian Gulf region, to rival more established centers like New York, London and Singapore.
“We want to create an ecosystem of partners to encourage ‘growth stage’ fintech firms to use DIFC as their hub,” Al-Mazrouei said.
The issue, however, is that virtually every other financial center in the Middle East has the same ambition. While the region came pretty late to fintech, compared to the big global financial markets, there has been a clamor to catch up.
In early 2016, Abu Dhabi declared its ambition to be the fintech capital of the Gulf, and has since set up and is operating its own fintech hub in the Abu Dhabi Global Market, the UAE’s new financial free zone.
Bahrain has also established a fintech hub, while Saudi Arabia has declared fintech to be an integral part of the Vision 2030 strategy to transform the economy, and has the financial firepower to back up that ambition. There is speculation in the Kingdom of a big investment in fintech by one of its funds.
Even Cairo has highlighted fintech as a growth area, and set up two units to encourage financial entrepreneurship in the sector.
So is the fintech market in the region sufficiently big to satisfy all those aspiring new entrants? “I think the market is there. Dubai has some other advantages, apart from the fact DIFC is the leading financial hub in the region. The fintech initiative coincides with the government’s innovation program, and with the whole ‘smart city’ strategy. It makes a compelling case for Dubai,” said Al-Mazrouei.
In theory, the Gulf should be a magnet for fintech investment. The Middle East, Africa and South Asia (MEASA) region — of which it is the hub — has a population of 3 billion, a big youth demographic, and high rates of cellphone usage. Underbanked in the traditional sense, the theory is that young people in the region will miss out altogether on traditional branch banking, and go straight to mobile services.
These factors would seem to make it a natural fintech hub, but investment has so far lagged global levels. Only 1 percent of the $50 billion estimated by Accenture has gone into the Middle East.
The FinTech Hive at DIFC is designed to help bridge that gap. Its “accelerator” program, which advanced significantly last week with the unveiling of the 11 successful participants, is a crucial part of that strategy.
The 11 “winners” are what Al-Mazrouei calls “growth stage” firms. “They are already doing business but they might need some fine-tuning, for example to upgrade their technologies to take into account the special needs of the MEASA region — products that address the access for younger populations of the Middle East, Africa and Asia who are the most likely potential customers of fintech products for personal finance. The firms all have either a financial history, or they have raised investment already. Some of them have funds and a working product,” she explained.
The accelerator program involves a three-stage “curriculum” over the coming 12 weeks. In the first phase, the 11 firms will meet with executives from the accelerator’s financial partners — 10 prominent banks — to identify industry challenges and possible solutions to address them.
In the second phase, they will receive direct “mentoring” from the financial institutions and from the DIFC, on technology, legal and regulatory affairs, and Islamic finance.
The third phase will involve the companies preparing to pitch ideas at an “investor day” in mid-November, when they will present their products to a group of private investors, bankers and government officials. The countdown to investor day has already begin in the DIFC, with posters showing the number of days remaining until the 11 aspirants learn their fate.
Then, assuming they make the cut, there are several possible outcomes, Al-Mazrouei explained. “They will be acquired by one of the banks; they will attract more funding to invest more in their development; or they will have contracts to provide services to financial firms,” she said.
Any of those would seem to be attractive propositions for young fintech-savvy entrepreneurs. Of the 11 chosen for the accelerator, two are from the UAE, three are from the US, and there is one each from the UK, Sweden, Jordan, India, Singapore and Azerbaijan.
The Azerbaijan team, which has developed a fintech product for Islamic finance, was especially enthusiastic and insisted on attending all the interviews in person, rather than via Skype, Al-Mazrouei said.
There is interest from Saudi entrepreneurs too, which may show through in the next accelerator round. “Some young Saudis recognized me in the DIFC and began explaining about their payments system. It’s very ambitious and I’m sure it has a future,” Al-Mazrouei said.
She hopes the changes going on in Saudi Arabia under the Vision 2030 strategy for economic diversification will being benefits for the whole region. “I think all the signs are pointed in the right direction and are aligned with the overall economic strategy. The dynamics of the region are changing but Saudi Arabia is in tune with those plans. The recent appointments of women to senior positions in the financial industry was a very good indicator of the way things are going,” she said.
Another reason Al-Mazrouei is confident there is a market for fintech in the region despite the growing number of centers focusing on it is the level of response DIFC got to its accelerator program. “It was overwhelming. We thought we’d get between 70 and 80 applicants, not 111 as we (did get),” she said.
On the tricky question of whether she and the DIFC would cooperate with other centers, rather than competing for business as seems to be the case now, Al-Mazrouei responds: “I am always willing to cooperate. But all the other centers are each doing it slightly differently. I think the accelerator program is unique in that we have offered them the opportunity to partner with 10 big financial institutions in the region.”
DIFC’s fintech initiative has the potential to add significantly to its expansion plans. Under the center’s 10-year strategy announced in 2014, it aims to triple the number of regulated financial firms in a decade, with a target set of 1,000 members. At the last estimate in June, that sat at 463 firms regulated by the Dubai Financial Services Authority (DFSA).
Between now and 2024, one could expect to see around 70 new fintech DIFC member firms via the accelerator scheme, assuming the target of 10 per year is met. “Fintech fits in well with the DIFC’s 10-year strategy. The aim is to triple the size of the DIFC by 2024 — in physical space, member firms and assets under management. The new fintech entrants will add to all three of those categories,” Al-Mazrouei said.
Of course, there is nothing to stop fintech firms applying to become immediate full members of the DIFC; they could also apply for a special innovation testing license, which gives them one-year membership of the DIFC on competitive terms, under regulation of the DFSA. If after one year they and the DIFC agree it is beneficial, they can move to full DIFC membership, Al-Mazrouei said.
Al-Mazrouei is a prime example of the new generation of Emirati women who are forging an executive path in the higher echelons of UAE business life. Her background seems to make her perfectly suited for the Hive job.
After education in the UAE and a degree in business information technology, she graduated from the Harvard Business School’s advanced management program in the US, and then came back to work in Dubai in IT-related posts for National Bonds, and for Dubai Holding, the government-owned conglomerate. At the DIFC, she spent time as the head of marketing and communications at the center, in addition to IT roles.
“I have experience in IT and in marketing, so it comes together well in this new role. I’m an engineer by background, so I understand technology. The combination works really well in the fintech space. Plus I have experience of international marketing and how it supports development,” Al-Mazrouei said.
Of the current elite global fintech hubs — New York, London and Singapore — Al-Mazrouei believes the UK capital is the one Dubai must seek to emulate. “I think we learned most from London, which I see as the center of global fintech. It’s the biggest and most innovative,” she said.
Dubai financial center’s Hive creates buzz in regional fintech market
Dubai financial center’s Hive creates buzz in regional fintech market
Point-of-sale spending in Saudi Arabia hits record $16bn, SAMA reveals
RIYADH: Food and beverages transactions helped drive point-of-sale payments in Saudi Arabia to a record SR59.68 billion ($15.91 billion) in March, official data has revealed.
Figures released by the Saudi Central Bank, also known as SAMA, show an 8 percent annual increase in spending across all sectors, with outlays during the holy month of Ramadan likely responsible for driving the uptick, alongside an expanding market with flexible payment options.
Spending on food and beverages in March made up the largest portion, accounting for 17 percent of total payments for the month.
Expenditures on restaurants and cafes, along with miscellaneous goods and services, each represented 12 percent of overall spending.
In February, Redseer Strategy Consultants predicted a heightened eagerness among consumers in Saudi Arabia to explore new attractions and destinations during Ramadan.
Their survey, probing changes in shopping behavior for Ramadan 2024 compared to the previous year, revealed that 62 percent of Saudi respondents planned to increase their spending, surpassing the 48 percent of respondents from the UAE.
The report highlighted that this surge is driven by factors related to platforms and experiences, particularly flexible payment options and the launch of exclusive products of high quality.
The research showed that in the UAE, where the market has matured, consumers are placing a growing emphasis on affordability, prioritizing products with the lowest prices.
Factors such as product variety, fast delivery, and quality no longer serve as significant brand differentiators, as the market has leveled the playing field.
Conversely, in Saudi Arabia, a market experiencing growth, there is a notable focus on platform and experience-related aspects. Flexible payment options and strong customer support are becoming increasingly important, indicating a shift in consumer preferences.
According to data from SAMA, the primary drivers of growth during this period were increased spending on miscellaneous goods and services, which include personal care supplies and cleaning products.
This category represented the second-highest share of March spending at 12 percent, having grown by 28 percent to reach SR7.06 billion. This growth accounted for 36 percent of the overall annual increase in POS spending.
The second-highest contributor to the rise is clothing and footwear, with an increase that contributed 26 percent to the overall growth, reaching SR5.8 billion in March. This was followed by food and beverages, contributing 13 percent, with spending reaching around SR10 billion, marking a 6 percent increase from the same month last year.
Research from Redseer indicated a strong inclination among Saudi respondents towards purchasing groceries, fashion, and beauty or personal care products during the month of Ramadan.
According to the survey, 93 percent of respondents were open to buying groceries, 84 percent to buying fashion, and 72 percent to buying beauty and personal care products.
This period is often associated with heightened social engagements, hospitality, and generosity, leading to increased consumer spending on food, gifts, and charitable donations. Additionally, businesses often offer special promotions and discounts during Ramadan, further stimulating consumer spending.
In Saudi Arabia, there has been a notable shift towards online payments and digitalization, driven by the country’s commitment to providing cutting-edge technologies for its tech-savvy population.
With the rise of e-commerce accessibility and the increasing convenience of online shopping platforms, consumers are opting for digital transactions more than ever before. This trend is not only reshaping the retail landscape but also significantly impacting consumer behavior.
The ease of comparing prices and product options online has empowered consumers, fostering increased competition among retailers and ultimately driving down expenses.
As a result, the adoption of digital payment methods continues to grow rapidly, reflecting a fundamental shift in how transactions are conducted in Saudi Arabia’s dynamic and rapidly evolving marketplace.
One challenge that arises with this growth is the proliferation of fraudulent sites and platforms attempting to deceive interested users. During Ramadan and Eid Fitr, the increase in retail and online transactions provides more opportunities for cybercriminals.
These fraudulent entities have targeted major Saudi platforms by creating fake websites designed to intercept two-factor authentication or one-time passcode codes.
According to Cyber Security News, this sophisticated phishing tactic aims to bypass security measures and gain unauthorized access to victims’ accounts.
Consumers are therefore strongly advised to avoid sharing personal and payment information on questionable sites or with individuals posing as bank or government employees.
Reporting suspicious resources to local law enforcement and designated contacts within these organizations is crucial in helping to mitigate potential fraud risks.
Nearly all Gazans in poverty, Palestinian Authority facing ‘imminent fiscal collapse’ - World Bank
RIYADH: Nearly every Gazan is living in poverty as the Israel-Hamas war continues to have a “devastating impact” on the Palestinian economy, according to the World Bank.
An analysis by the organization sets out how the economic consequences of the conflict have spread beyond Gaza and into the West Bank, with widespread unemployment and underemployment combined with inflation causing a rapid decline in purchasing power for households in both areas.
Nearly half a million jobs across the territories have been lost since October 2023, and per capita gross domestic product declined by 12 percent in 2023.
Israel has bombarded the densely populated Gaza Strip following the Oct. 7 Hamas attack on Israeli communities. Israel says Hamas killed some 1,400 people including children, and took more than 200 hostages, some of them infants and older adults.
The fiscal situation of the Palestinian Authority has dramatically worsened, according to the World Bank, with a financing gap expected to reach $1.2 billion heightening the risk of disorderly adjustments and a potential imminent fiscal collapse.
In May 2023, the World Bank forecast the Palestinian economy to grow about 3 percent by the end of the year, after a 4 percent post-COVID-19 boost in 2022.
That analysis has been completely reversed by the conflict, with the organization now forecasting the Palestinian economy will contract anywhere between 6.5 percent and 9.4 percent during 2024.
“The northern governorates of Gaza are experiencing a full-blown famine, with food insecurity reaching catastrophic levels, particularly in the northern areas and extending southward,” said the World Bank’s latest report, adding: “At least one in four Gazan is experiencing catastrophic hunger, and 95 percent of the population is suffering from food insecurity.”
Most children in Gaza are at risk of “stunting” because of the famine, the analysis added.
Reflecting on the economic impact of the conflict, the report said the outlook of the Palestinian territories for the full year of 2024 “remains highly uncertain, depending on the severity and duration of the conflict, changes in Israeli policies in the West Bank, including those related to access to the Israeli labor market, and the outcome of the clearance revenue dispute.”
The Palestinian Authority is facing a significant decrease in clearance revenue transfers and shrinking domestic resource mobilization, coupled with a rigid current expenditure envelope, the World Bank said.
“The PA’s financing gap after aid for 2023 reached $682 million or 3.9 percent of GDP, and the situation is expected to worsen further in 2024, with a potential financing gap of up to $1.2 billion. A focus on fiscal policies, especially those improving spending efficiency, particularly regarding the unsustainable wage bill and enhancing tax mobilization, must remain a top priority in the reform agenda,” said the report.
The World Bank argued that the banking sector across the territories is “well regulated” by the Palestine Monetary Authority, which has “steadily been building the capabilities and resilience of local banks.”
The report added: “Presently, the banking system is well capitalized, liquid, and compliant with the Capital Adequacy Requirements set by the PMA. At the same time, institutional and economic difficulties are tilting the risks upward for the financial sector. Actively avoiding further instability is crucial to allow the financial sector to maintain its established function as a stable pillar during periods of economic challenges.”
Startup Wrap – regional startup activity flourishes
CAIRO: The startup ecosystem in the Middle East and North Africa region saw a flurry of activity as venture investments and acquisitions bloom.
Saudi Arabia-based Software-as-a-Service provider Merit has raised $12 million in its pre-series B funding round, led by Alistithmar Capital i-Cap and followed by existing series A investors Tech Invest Com and Hambro Perks Oryx Fund.
Founded in 2016 by Julie Barbier-Leblan and Thrishan Padayachi, Merit assists businesses in increasing customer and employee engagement via a suite of cloud-based SaaS platforms, enterprise solutions, applications, and software.
This new round will help Merit develop its technology to enhance customer engagement. In 2021, Merit raised $5 million in a series A round led by Saudi Arabia’s Impact46, along with Tech Invest Com, Arzan VC, Hambro Perks Oryx, and several regional angel investors.
Riyad Capital launches 1957 Ventures to support digital transformation
Riyad Capital, backed by Riyad Bank, has launched the 1957 Ventures investment fund to drive transformative growth in Saudi Arabia’s fintech sector.
The fund aims to accelerate the Kingdom’s digital transformation by creating opportunities for innovative fintech business models.
Abdullah Alshwer, CEO of Riyad Capital, stated, “The 1957 Ventures Fund embodies a forward-thinking financial vision aligned with the Kingdom’s ambitious digital transformation goals; this fund signifies a strategic investment in the future of Saudi fintech.”
“Our institutional approach will unlock new levels of innovation, driving both sector growth and sustainable economic impact,” he added.
Saudi logistics startup MDD closes $1.3m series A round
Saudi Arabia-based logistics startup MDD has closed its series A round with $1.3 million in funding for a 5 percent stake with a valuation of $26 million.
Founded in 2019, MDD provides supply chain solutions for businesses.
Saudi startup Sorbet’s raises funding round from web3 VC Adverse
Saudi web3 startup Sorbet raised an investment round from the Kingdom’s recently announced venture capital firm Adverse.
Founded by Rami Djebari and Maher Ayari, Sorbet aims to simplify business processes for freelancers by cutting fees and intermediaries.
“Receiving support from an experienced partner like Adverse will accelerate our development and enhance our market strategy. This collaboration is a milestone in breaking down financial barriers and enabling limitless growth opportunities for professionals in the region,” Djebari said.
Egyptian fintech e-Finance acquires stakes in Al Ahly Momken and EasyCash
Egypt-based fintech e-Finance for Digital and Financial Investments has acquired a 25 percent stake in Al Ahly Momken and a 13 percent stake in EasyCash for Digital Payments for an undisclosed deal value.
Founded in 2005, e-Finance is involved in the development of digital payment infrastructure and digital space to help achieve social development goals.
Al Ahly Momken, based in Egypt, is a digital payment provider, serving over 90,000 merchants and more than 5 million customers.
Meanwhile, EasyCash, also based in the north African country, provides payment services for individuals, merchants, and businesses.
These acquisitions align with e-finance’s strategy to expand its footprint in the digital payments market and support Egypt’s Vision 2030 for digital transformation.
Egypt’s OneOrder closes $16m series A round
Egypt-based logistics startup OneOrder has raised $16 million in a series A round in a mix of equity and debt, led by Delivery Hero Ventures, with participation from Norrsken22 and existing investors, Nclude and A15.
Founded in 2022 by Tamer Amer and Karim Maurice, OneOrder is a tech-enabled supplier and wholesale distributor that offers the food and beverages industry a supply of quality goods with embedded financing.
The company plans to expand into the Gulf Cooperation Council region by the fourth quarter of 2024. In December 2022, OneOrder closed a seed round at $3 million.
Jordan’s fintech liwwa takes $5m loan
Jordan-based fintech liwwa has secured a $5 million loan from the US International Development Finance Corp..
Founded in 2013 by Ahmed Moor and Samer Atiani, liwwa is a peer-to-peer lending network that connects investors and small businesses through smart business loans.
The latest cash influx will enable liwwa to finance further small and medium sized enterprises across various sectors. Liwwa’s last funding round was in 2022, when it raised $18.5 million in a pre-series B round of equity and debt.
Egyptian investment bank EFG Hermes acquires stake in Danish wealth management firm
Egypt’s investment bank, EFG Hermes, a subsidiary of EFG Holding, has acquired a minority stake in the Danish digital wealth manager Kenzi Wealth for an unknown value.
The new partnership will enhance EFG Hermes’ digitalization vision. By combining EFG Hermes’ client network and Kenzi Wealth’s AI tools, EFG Hermes will be able to offer its clients a more efficient and personalized investment experience.
Founded in 2021 by Mohamed El-Masri, Kenzi Wealth specializes in tailoring investment features to meet the needs of investors.
UAE’s Plain Tiger raises funding round
UAE-based business-to-business marketplace Plain Tiger has raised an investment from UAE’s venture capital firm AngelSpark for an undisclosed amount.
Founded in 2021 by Alexandra Polson and Oliver Baillie, Plain Tiger connects hotels with eco-friendly suppliers, saving them time, money, and reducing their environmental impact.
The investment is part of Plain Tiger’s $1.5 million seed round, which will be used to expand into Saudi Arabia and accelerate more hotels’ pathway to net zero procurement.
UAE’s Revent closes $900k in pre-seed round
UAE-based electronics marketplace Revent has raised $900,000 in a pre-seed round, provided by Techstars and a group of angel investors.
Founded in 2022 by Baldeep Singh and Dhananjay Choubey, Revent offers SMEs pre-owned devices on monthly subscriptions across the UAE and Saudi Arabia.
The funds will be used to build a self-service platform for businesses, along with growing Revent’s client base in Saudi Arabia.
UAE’s proptech Keyper closes $4m equity round
UAE-based proptech Keyper has raised $4 million in equity in a pre-series A round, led by BECO Capital and Middle East Venture Partners, with participation from existing investors Vivium Holding, Jabbar Group, Signature Developers, and new investors Annex Investments, Pin Investment, and Al Qahtani Investment, among other angels.
The company has also received an additional $30 million in Shariah-compliant sukuk financing from global asset manager Franklin Templeton Investments Ltd., bringing its cumulative capital raised to-date to over $40 million.
Founded by Omar Abu Innab and Walid Shihabi in 2022, Keyper offers a property management platform where tenants can track their expenses and charge online, and investors get real estate portfolios and access to data-driven insights.
Keyper will invest the fresh funds into digitizing the rental experience in the UAE and scaling its innovative rent now, pay later solution. Last October, Keyper raised a $6.5 million seed round.
UAE’s proptech Huspy raises investment round
UAE-based property technology firm Huspy has raised a fresh investment round led by Balderton Capital, with further participation from existing investor Fifth Wall, amongst other investors.
Founded in 2020 by Jad Antoun and Khalid Ashmawy, Huspy facilitates the home buying and financing process through its online marketplace.
The company claims that this round of funding is at a higher valuation than the $37 million series A raised in 2022. The newly acquired capital will be deployed to build a super app for real estate.
Egypt’s proptech Birdnest raises pre-series A round
Egypt-based proptech Birdnest has closed an undisclosed pre-series A funding round for a 20 percent stake in the company, led by Beltone Venture Capital and CI Venture Capital.
Founded in 2020 by Mostafa El-Nahawy and Ahmed Fadda, Birdnest offers furnishing services and rental management solutions to ensure maximum returns for real estate investors and value for tenants.
The funds are earmarked for the expansion of the regional quality team, the enhancement of proprietary technologies, and marketing initiatives to reinforce Birdnest’s market position.
Oil Updates – crude steady as investors weigh US rate fears, firmer seasonal demand
SINGAPORE: Oil prices were stable on Friday as investors considered the latest comments from the US Federal Reserve on interest rates amid sticky inflation, while signs of firming seasonal US fuel demand lent support, according to Reuters.
Brent crude futures rose 2 cents at $81.38 a barrel at 6:15 a.m. Saudi time, while US West Texas Intermediate crude futures were down 1 cent at $76.86.
Both benchmarks settled at multi-month lows on Thursday, with Brent crude futures closing at their weakest point since January and US crude futures hitting a three-month low.
Brent futures were headed for weekly declines of more than 3 percent, while WTI futures were poised for a slide of nearly 4 percent from last week as ongoing macroeconomic constraints in the US held prices in the balance.
“The sore demand sentiment owing to the hawkish Fed outlook at rates and the backdrop of ‘possibly higher-for-longer rates’ weighed significantly on oil prices this week,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Minutes released on Wednesday from the Fed’s latest policy meeting showed policymakers questioning whether current interest rates are high enough to tame stubborn inflation.
Some officials said they would be willing to hike borrowing costs again if inflation surged. However, Fed Chair Jerome Powell and other policymakers have since said they feel further rate hikes are unlikely.
Higher rates could slow economic growth and crimp fuel demand.
Meanwhile, strengthening US gasoline demand was helping to stabilize prices ahead of the Memorial Day holiday weekend, which is considered the start of the US summer driving season.
Gasoline demand in the US reached its highest level since November, the Energy Information Administration said on Wednesday. That helped support the market as US drivers account for around a tenth of global oil demand, “making the upcoming driving season a pillar of the recovery in global demand growth,” ANZ analysts said in a note.
All eyes are now on the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, set to meet on June 1, where they are expected to discuss whether to extend voluntary oil output cuts of 2.2 million barrels per day.
“The market is also tentative about taking an aggressive positioning ahead of next week’s OPEC meeting, where supply policy will be discussed,” ANZ analysts added.
Oil creeps back up after three days of losses
Oil prices crept up on Thursday, clawing back some of the previous three days’ losses.
The gains were made despite the US Federal Reserve entertaining a further tightening of interest rates if inflation remains sticky, a move that could hurt oil demand.
Brent crude futures were up 92 cents, or 1.1 percent, at $82.82 a barrel by 1317 GMT. US West Texas Intermediate crude futures were 97 cents, or 1.3 percent, higher at $78.54. Both benchmarks fell more than 1 percent on Wednesday for their third straight day of losses.
Saudi crude exports
Saudi Arabia’s crude exports reached 6.41 million barrels per day in March, according to an analysis from the Joint Organizations Data Initiative.
This figure increased by 96,000 bpd, or 1.52 percent, compared to the previous month, marking a nine-month high. Furthermore, the data indicated that the Kingdom’s crude production fell to 8.97 million bpd, reflecting a monthly decrease of 0.42 percent.
This can be linked to the voluntary oil production cuts adopted by members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+. Saudi Arabia announced in March the extension of its 1 million bpd cut, initially implemented in July 2023, until the end of the second quarter of 2024.
The Ministry of Energy said that the Kingdom’s production will be approximately 9 million bpd until the end of June.
Meanwhile, refinery crude output, representing the processed volume of crude oil yielding gasoline, diesel, jet fuel, and heating oil, fell by 4 percent compared to the previous month, reaching 2.56 million bpd, according to JODI data.
