LONDON: An oil price at its highest for two years — at about $63 per barrel — has allowed Saudi Arabia to deliver a budget that targets growth and investment, while also maintaining fiscal restraint that will see the deficit reduce further.
The Kingdom has been able to pull this off after last month’s accord by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to retain production cuts of 1.8 million barrels per day (bpd) throughout 2018, albeit with a review halfway through the year.
First agreed at the end of 2016, these cuts have reduced global stockpiles and revived the price after the worst slump in decades in 2014/15 when the price fell below $30 per barrel. This has allowed Saudi Arabia to ease austerity for the poorest and furnished it with funds to diversify and grow the economy. Global investment banks have raised their forecast for the oil price next year, encouraged by the cuts agreement, on the assumption the price will still be low enough to encourage consumption which, in turn, has helped to bring about robust growth in the global gross domestic product (GDP) in 2017.
Goldman Sachs has estimated that Brent crude — the international oil benchmark — will trade at an average of $62 a barrel in 2018.
Another bull, JPMorgan, said “solid fundamentals and tightening balances,” as well as OPEC’s willingness to balance markets, are reasons for its positive outlook. It reckons on an average of $60 per barrel next year.
“OPEC’s decision to extend cuts through 2018 to take OECD oil inventories down to the 5-year average is clearly supportive of prices,” said the bank in a note to clients on Dec. 8.
RBC Capital Markets has forecast $62.30, while UBS increased its 2018 Brent projection to $60 from $55. Citigroup is most bearish, warning in a recent note that the bullish supply and demand dynamic will run out of steam, and an upsurge in US shale production could spook the market. For Barclays, crude’s rally will encourage the US and other non-OPEC producers to boost output in 2018, helping tip the scales toward a gain in inventories once again.
On Dec. 18, the International Energy Agency (IEA) said it expected the early part of 2018 to see a surplus of 200,000 bpd and a deficit of the same order at the end of the year, inferring the market would not be broadly balanced until the concluding months of 2018.
The IEA also said US shale producers were more active now that the oil price is back over $60. It said US drilling and well completion rates have picked up as prices have rebounded.
The worry will always be that a big supply response by US shale producers could depress the price next year. Russian companies are worried that the cuts agreement — though good for their budgets — could mean conceding market share to rivals in America and elsewhere.
But at a recent forum in London, OPEC Secretary-General Mohammed Barkindo said the global oil market was tightening at an “accelerating pace,” and he cited a sharp reduction in worldwide inventories as evidence that last year’s agreement by producers to cut supply was having an effect.
He added: “OPEC stocks in September were about 160 million barrels above the five-year average, down from 340 million in January. There has been a massive drainage of oil tanks across all regions, a balanced oil market was fully in sight.”
OPEC and other producers want to get stocks down to the five-year average in order to remove the glut built up when the price was above $100.
Oil production cuts bring budget boost in Saudi Arabia
Oil production cuts bring budget boost in Saudi Arabia
Saudi Arabia welcomes independent committee’s report on UNRWA’s performance
- Saudi Ministry of Foreign Affairs stresses importance of the commitment of donor countries to the organization
RIYADH: Saudi Arabia has welcomed an independent committee’s report on the performance of the UN Relief and Works Agency for Palestine Refugees, the Saudi Press Agency reported on Wednesday.
The Saudi Ministry of Foreign Affairs said the Kingdom backed the report, which confirmed UNRWA’s main role in supporting the relief, humanitarian and developmental efforts of the Palestinian people.
The ministry further reiterated Saudi Arabia’s emphasis on the importance of the commitment of donor countries to UNRWA to ensure the sustainability and effectiveness of all forms of support for refugees in a way that reduces their suffering, especially in light of the Israeli occupation’s continued violations of international law and international humanitarian law.
EU Embassy, Arab News honor makers of Saudi ‘Horizon’ documentary
- Princess Lamia: ‘Screening is a reminder of our shared responsibility to protect precious ecosystems’
- Ambassador Farnaud: ‘The Saudi Green Initiative and the European Green Deal have shared goals’
- Abbas: ‘We are delighted to partner with the EU envoy to showcase Saudi Arabian wildlife in a captivating manner’
RIYADH: The makers of a recently produced, highly acclaimed documentary on Saudi wildlife were honored at a special screening of the film “Horizon” at the residence of the EU ambassador in Riyadh.
The new documentary, produced by the Konoz Initiative, is part of a collaboration between the Saudi Ministry of Media’s Center for Government Communication and the National Center for Wildlife.
It explores the ecological treasures and unique habitats of the Kingdom.
Princess Lamia bint Majed Saud Al-Saud, secretary-general of Alwaleed Philanthropies, was a guest of honor. Princess Lamia, through her work with Alwaleed Philanthropies, has recently announced an initiative called Atlai, an innovative artificial intelligence platform to support global efforts to combat deforestation.
The screening was followed by a presentation of an honorary certificate to Abdullah Alahmari, CEO of Konoz initiative, and Yazeed Albader, associate producer of “Horizon.” This was presented by EU Ambassador to Saudi Arabia Christophe Farnaud, Princess Lamia and Arab News Editor-in-Chief Faisal Abbas.
Farnaud said: “The ‘Horizon’ documentary captures the breathtaking beauty of Saudi Arabia’s diverse natural landscapes and wildlife.
“For centuries, much of the Arabian Peninsula, including Saudi Arabia, held a mysterious attraction for European explorers and travelers.”
The ambassador spoke of the significance of protecting the environment due to basic human needs such as food and water, and dependency on the health of our global environment.
“The Saudi Green Initiative and the European Green Deal have shared goals. We all depend on nature for our food, air, water, energy and raw materials. Nature and biodiversity make life possible, provide health, and drive our economy. Nature is also our best ally in tackling the climate crisis,” he said.
“Climate change, economic diversification and transitioning to renewables remain priority areas for both the EU with its policy of European Green Deal as well as for Saudi Arabia with its Vision 2030.”
Princess Lamia gave her thoughts on Saudi Arabia’s fascinating natural wonders that are featured in the film.
“Through ‘Horizon’ we are transported to the breathtaking beauty and rich biodiversity of Saudi Arabia. This documentary promises to immerse us in the heart of the Kingdom’s diverse wildlife and scenery,” she said.
“Tonight’s screening is not only a celebration of Saudi Arabia’s rich natural heritage but also a call to action — a reminder of our shared responsibility to protect and conserve the precious ecosystems that define our world.
“In a time where our forests and natural ecosystems are disappearing at an alarming rate, Atlai, created by Alwaleed Philanthropies, is a testament to the power of innovation and collaboration. It’s about igniting a passion for preservation, a fervor for conservation, and a commitment to safeguarding our planet for generations to come.”
Abbas expressed appreciation for the Saudi team behind the “Horizon” documentary, saying: “We are delighted to have partnered with the EU delegation to host a special screening of this remarkable documentary which showcases Saudi Arabian wildlife in a truly captivating manner.”
He added: “As part of Arab News Green and Blue initiative, which focuses on environment and sustainability, we are also proud to present the Saudi team behind the ‘Horizon’ documentary with a certificate of appreciation, and thank them for their contribution in preserving and showcasing the wonders our beloved Kingdom has to offer.”
Arab News has recently launched its Green And Blue, an initiative which discusses environmental subjects regarding climate change, desertification, wildlife preservation, sustainability, and green energy, with a close emphasis on the environment in Saudi Arabia.
The CEO of Konoz initiative expressed how thrilled he was to attend the screening of the movie.
“This documentary sheds light on the beauty of Saudi Arabia, its versatile terrain and highlights the wildlife we are blessed to have in the Kingdom,” Said Alahmari.
He expressed his appreciation to the Minister of Media Salman bin Yousef Al-Dossary for his constant support in ensuring that the movie highlights the Kingdom and reaches a broader audience.
The associate producer of the work explained how the documentary took more than 260 days of shooting and more than 2,000 hours of recording because it covered all the regions.
“If you want to shoot some of the animals, you may not get luck on the spot. So, you have to do some scouting, you have to arrive a couple of days before, stay for weeks to spot a nice shot, or to get that perfect skyline with the clouds, sunset or sunrise,” said Albader.
“I was honored to be here, the screening was great. It is a pleasure to be here with the ambassadors, and to see how a lot of people care about nature and wildlife. This is just the beginning of many events to come.”
“Horizon” is now available on Netflix internationally.
Inaugural Umrah and Ziyarah Forum focuses on innovative ways to enhance pilgrim experience
- The 3-day event, which concluded on Wednesday, included 6 discussion sessions and 24 workshops led by 29 experts
JEDDAH: The inaugural Umrah and Ziyarah Forum concluded on Wednesday at the King Salman International Convention Center in Madinah. During the three-day event, participants discussed ways to foster collaborations, enhance the pilgrimage experience and improve the services provided for pilgrims.
The agenda for the forum, organized by the Ministry of Hajj and Umrah in partnership with the Pilgrim Experience Program, included six discussion sessions and 24 workshops led by 29 experts and specialists.
The topics they covered included services for pilgrims and other visitors, advancements in air travel services for pilgrims, financial systems in the Umrah and ziyarah sectors, and development opportunities in housing and hospitality services.
Other discussions focused on services at ports, the automation of operations, ways to improve the efficiency of workers, and the important role of services provided for visitors at holy sites and throughout their journeys in Makkah and Madinah.
One of the key topics was air travel services, with discussions about the growth in flight numbers and the need to provide a comprehensive range of services throughout pilgrims’ journeys beyond those purely focusing on their rituals. For example, participants highlighted plans for the expansion of Madinah Airport to better accommodate the increasing numbers of pilgrims and other visitors arriving there.
Another discussion examined financial services in the Umrah and ziyarah sector, and explored the options for international money transfers, ways to develop financial procedures, and innovative digital solutions for processing transactions.
Other topics included development opportunities in housing and hospitality services, during which speakers emphasized the importance of transparency and the need for full compliance by service providers with the terms of their contracts.
The final day of the event featured two panel discussions, one about the role of technology in finding solutions to the challenges in guest services, and the other on ways to carefully develop historical sites to enrich the historical and spiritual experiences for visitors to Makkah and Madinah.
Who’s Who: Swaied Al-Zahrani, CEO of Saudi Credit Bureau
Swaied Al-Zahrani has been the CEO of the Saudi Credit Bureau, also known as SIMAH, since March 2018.
As CEO, Al-Zahrani has guided SIMAH’s short and long-term strategies, ensuring a competitive landscape within the market.
He led major restructuring to enable a future-proof operating model and enhance customer experience. He is focused on improving the governance, risk management, and data management framework and practices.
Al-Zahrani is also a board member of Qarar, a decision analytics company specializing in tailored customer management and lending process automation solutions based in Riyadh, and a board member at Tassnief, the first local credit rating agency licensed by the Capital Market Authority.
He has nearly two decades of experience in the financial sector and is known for his ability to maximize shareholder value through effective strategies, committed to driving innovation and excellence in the financial industry.
Prior to his current role, he worked as chief operations officer at the Social Development Bank in Riyadh from January 2016 to March 2018. He led the bank’s transformation program, focusing on building a new strategy, organizational restructuring, automation and digitalization, customer experience, and risk controls while promoting a savings culture aligned with national strategies.
Al-Zahrani worked for nine years at Al-Rajhi Bank in various domains including IT, business, and banking operations groups, where he participated in major transformation programs.
He holds a bachelor’s degree in computer science from King Abdulaziz University in Jeddah.
Saudi embassy in Cairo receives Kingdom’s first female astronaut
Saudi Arabia’s Ambassador to Egypt Osama Nugali on Wednesday received Saudi astronaut Rayyanah Barnawi, who is currently visiting Egypt, at the embassy in Cairo.
Nugali congratulated Barnawi, the first Saudi female astronaut, on her achievement which affirmed the progress Saudi Arabia is witnessing in all fields, including the space sector and its technologies, in light of its ambitious Vision 2030.
Barnawi, who is a scientist specializing in cancer stem-cell research, traveled into space as part of the Axiom Mission 2 to the International Space Station last year.
