DUBAI: More than 14,000 Omani men and women have been employed by private sector companies across the country according to the Ministry of Manpower, national daily Times of Oman reported.
Out of the total 14,883 employed, 10,092 were men while 4,791 were women.
Construction took in the most at 5,025 (3,974 men and 1,051 women) followed by retail and wholesale trade at 2,103 (1,117 men and 986 women) and manufacturing industries at 2,043.
These people were employed between December 2017 and March 2018.
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More than 14,000 Omanis get private sector jobs
More than 14,000 Omanis get private sector jobs
Energy investment in Middle East to hit $175bn in 2024: IEA report
RIYADH: Energy investment in the Middle East is projected to reach approximately $175 billion in 2024, with clean resources accounting for around 15 percent of the total, a new report disclosed.
The International Energy Agency’s analysis highlighted that clean energy investment in the announced pledges scenario is expected to more than triple by 2030 compared to 2024.
The report indicated that by the end of the decade, every dollar invested in fossil fuels in this scenario would be matched by 70 cents going to clean energy.
At present, spending on fossil fuel supply predominates; for every dollar invested in fossil fuels, only 20 cents is allocated to clean energy investment, representing approximately one-tenth of the average global ratio of clean resources to fossil fuel investment.
Five of the 12 countries in the region have set net zero emission targets. The UAE and Oman aim to achieve net zero emissions by 2050, while Saudi Arabia, Bahrain, and Kuwait have set a target for 2060.
Additionally, the UAE has committed to reducing emissions by 19 percent by 2030 from 2019 levels. It also pledged $30 billion in catalytic capital to launch a climate-focused investment initiative at the 2023 UN Climate Change Conference, or COP28.
Furthermore, the region’s power sector holds a distinct opportunity for increasing investment in clean energy technologies, notably for solar.
Harnessing these resources could substantially decrease reliance on both oil and gas in the power sector.
Saudi Arabia, for example, is targeting 130 gigawatts of renewable capacity by 2030, up from less than 5 GW today.
Similarly, projects are underway, including the large Al-Shuaibah Solar Power Plant in Saudi Arabia and the Mohammed bin Rashid Al-Maktoum Solar Park in the UAE.
Various countries have also announced blue and green hydrogen investments and intensified funding for critical minerals.
Saudi Arabia, for instance, has established a $182 million mineral exploration incentive program.
The UAE is also expanding its efforts in the sector, including through a $1.9 billion mining partnership in the Democratic Republic of the Congo and securing new agreements in copper-rich Zambia.
A global shift
Global energy investment is set to exceed $3 trillion for the first time in 2024, with $2 trillion going to clean energy technologies and infrastructure, the report noted.
Investment in clean energy has accelerated notably since 2020, and spending on renewable power, grids, and storage is now higher than total spending on oil, gas, and coal.
As the era of cheap borrowing comes to an end, higher financing costs are holding back certain kinds of investment.
However, the impact on project economics has been partially offset by easing supply chain pressures and falling prices.
For example, solar panel costs have decreased by 30 percent over the last two years, and prices for minerals and metals crucial for energy transitions, especially the metals required for batteries, have also sharply dropped.
Clean energy investments are set to approach $320 billion in 2024, up by more than 50 percent since 2020.
This is similar to the growth seen in advanced economies, which recorded a 50 percent increase, although trailing China, which witnessed a surge of 75 percent in renewable investments since 2020.
The report noted that the gains primarily come from higher investments in renewable power, representing half of all power sector investments in these economies.
Progress in India, Brazil, parts of Southeast Asia, and Africa reflects new policy initiatives, well-managed public tenders, and improved grid infrastructure, it added.
Africa’s clean energy investments in 2024, at over $40 billion, are nearly double those in 2020, the IEA further explained.
Yet, according to the report, much more needs to be done. In most cases, this growth comes from a very low base, and many of the least-developed economies need to be included, with disadvantaged nations facing acute problems due to high levels of debt.
Saudi banks’ real estate loan portfolios hit $213.5bn in Q1 2024
RIYADH: Saudi banks’ real estate loan portfolios reached SR800.5 billion ($213.5 billion) in the first quarter of 2024, a 13 percent increase from the same period last year, the latest official data showed.
Figures released by the Saudi Central Bank, also known as SAMA, revealed that 78 percent of these loans were retail, while the remaining 22 percent were corporate.
Despite constituting the largest share of real estate lending from banks, loans to individuals recorded a slower annual growth rate of 10 percent compared to the 26 percent growth for the corporate sector.
Several factors, including high interest rates, could have dampened individual borrowing due to the increased cost of credit.
In contrast, the rapid implementation of the Kingdom’s giga-projects in line with Vision 2030 has likely spearheaded the rapid growth in corporate real estate lending. These large-scale projects require substantial financing, driving significant demand for corporate loans and accelerating their growth rate.
Additionally, data released by the General Authority of Statistics indicated that residential real estate prices increased by 1.2 percent during the first quarter of the year, while prices in the commercial real estate sector decreased by 0.5 percent.
This difference in price trends likely made commercial properties more appealing and affordable for corporate investors, boosting demand for commercial real estate loans. Conversely, it may have tempered individual borrowers, resulting in a slower growth rate for retail real estate lending.
According to SAMA data, new residential mortgages issued by banks to individuals totaled SR27.44 billion in the first four months of 2024, marking an increase of 2 percent from the same period last year.
Despite making up 67 percent of the new loans at SR18.25 billion, lending for houses fell by 1 percent. In contrast, lending for apartments increased by 9 percent, reaching SR7.6 billion, while land credit grew by 5 percent to SR1.62 billion.
According to a study by PwC, Saudi Arabia has ambitious plans to double Riyadh’s population and attract 9 million people to The Line, a revolutionary urban development project, by 2045.
Many of these newcomers will be expatriates, supported by recent visa reforms. The Premium Residency Program — which offers benefits such as property and business ownership and the right to work without a sponsor — aims to attract highly skilled expats, investors, and entrepreneurs to create jobs and bring in investment.
In a survey conducted earlier this year by global property consultancy Knight Frank, 77 percent of 241 Saudi-based expats expressed a desire to buy property. The primary motivation for real estate purchases in the Kingdom, especially among millennials, was its perceived status as a good investment.
The shift from villas to apartments among the majority of respondents was likely influenced by factors such as the higher costs associated with villas, affordability considerations, and possibly differing cultural preferences compared to Saudi nationals, the firm said.
Additionally, in the wake of the global financial crisis, over-collateralized security and full-recourse financing have become more common, according to Baker McKenzie Research Hub. Borrowers now face stricter requirements, including lower loan-to-value ratios, meaning they cannot borrow as much as they could before the crisis.
SAMA has capped the loan-to-value ratio on residential mortgage loans at 90 percent. This policy aims to balance promoting homeownership with maintaining a stable and sustainable housing market and financial system.
Therefore, according to the research, despite the strong demand for housing, Saudi Arabia’s mortgage finance market is still developing, and consumer lending practices remain strict. This strict lending environment is expected to become even more stringent once the Registered Real Estate Mortgage Law is fully implemented and enforced.
Saudi main index edges up to close at 11,560
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 7.23 points, or 0.06 percent to close at 11,560.39
The total trading turnover of the benchmark index was SR6.45 billion ($1.72 billion) as 70 stocks advanced, while 155 retreated.
Similarly, the MSCI Tadawul Index surged by 4.65 points, or 0.32 percent, to close at 1,450.46.
The Kingdom’s parallel market, Nomu, also increased by 304.90 points or 1.18 percent, to close at 26,230.43. This comes as 36 stocks advanced, while as many as 26 retreated.
The best-performing stock of the day was Miahona Co., as the company’s share price surged by 29.91 percent to SR14.94.
According to Al-Ekhbariya, the stock surged to its maximum limit on its debut on the Saudi main market.
Miahona is a Saudi joint-stock company that began operations in 2008 and was one of the first developers of water and wastewater infrastructure under the public-private partnership model in the Kingdom.
On May 27, Miahona announced the allocation of a minimum of 10 shares per individual subscriber, representing about 20 percent of the total offering.
The individual investor subscription, which included 9.65 million shares, was 6.1 times oversubscribed, ensuring each individual subscriber received at least 10 shares.
The remaining shares will be proportionally allocated at approximately 11.6 percent, based on each subscriber’s requested amount relative to the total shares offered. The final offering price was set at SR11.5 per share.
Consequently, the number of shares allocated to institutional investors will be reduced to 38.62 million, representing 80 percent of the total offering.
Other top performers included Saudi Cement Co. and Taiba Investments Co., whose share prices soared by 3.82 percent and 2.71 percent, to stand at SR44.85 and SR41.65 respectively.
The worst performer was Saudi Cable Co. whose share price dropped by 7.87 percent to SR59.70.
Alkhorayef Water and Power Technologies Co. as well as Etihad Atheeb Telecommunication Co., did not perform well and their share prices dropped by 7.62 percent and 4.83 percent to stand at SR157.60 and SR106.40, respectively.
Etihad Airways and China Eastern Airlines forge JV for enhanced air connectivity
RIYADH: Travellers are set to enjoy enhanced air connectivity between the UAE and China as the Emirate’s flagship carrier, Etihad Airways, has formed a joint venture with China Eastern Airlines.
Signed at Etihad Airways headquarters in Abu Dhabi, the first such commercial deal between a Middle Eastern and Chinese airline is scheduled for implementation in early 2025, according to a press release.
The partnership aims to offer “seamless travel experiences” for passengers, connecting major Chinese cities like Shanghai, Beijing, Xi’an, and Kunming with key cities in the UAE and across the region.
Antonoaldo Neves, CEO of Etihad Airways, said: “This JV marks a significant milestone in our partnership with China Eastern. The JV will allow Etihad and China Eastern to offer travelers enhanced travel options and exceptional value.”
He said the JV will “unlock a new era of travel opportunities, while also boosting the economic growth of Abu Dhabi and the UAE.”
Additionally, both airlines plan to implement full reciprocity to their existing frequent flyer programs in the final quarter of 2024. This will enable passengers to easily earn points and redeem rewards when flying with either airline, the release added.
China Eastern Airlines Chairman Wang Zhiqing highlighted that this year marks the 40th anniversary of diplomatic relations between China and the UAE.
“Both countries continue to develop and strengthen the high-value, strategic collaboration on the Belt and Road Initiative, and this momentum creates opportunities and motivation for deepening cooperation between China Eastern Airlines and Etihad Airways,” he said.
Zhiqin added the signing of this JV signifies a new level of collaboration, and said: “China Eastern is eager to work with Etihad Airways to expand the cooperation in the various business areas, and thereby enhance the strategic partnership between both airlines."
Meanwhile, Mohamed Ali Al-Shorafa, chairman of Etihad Aviation Group, praised the agreement as a significant milestone, emphasizing that this joint venture reflects a strong commitment to enhancing the relationship between the UAE and China, and promoting closer cultural and economic connections.
“We look forward to welcoming a greater number of Chinese tourists to explore the rich cultural heritage and vibrant experiences that the UAE has to offer. This partnership is more than the expansion of routes; it is about creating lasting and meaningful connections between our two nations which will stand for decades to come.” the chairman said.
China Eastern Airlines’ chairman pointed out that the cooperation between the airlines is highly complementary, covering a broad scope, and possessing great potential, given the strength of their global hubs.
“We look forward to our collaboration creating more synergies, not only in facilitating passenger travel but also in building deeper economic, trade, and cultural exchanges between China and the UAE,” he concluded.
Business summit in Karachi highlights women’s achievements, challenges
- Industry leaders say less than 5 percent women in Pakistan have launched or are running their own businesses
- Estimates suggest national GDP can grow by three times if women become equal contributors to economy
KARACHI: Pakistani women entrepreneurs and industry leaders this week highlighted their achievements and challenges at a business summit held in Karachi, pointing out that despite strides, securing finances and being taken seriously by market players and state institutions remained a key issue for women.
Senior members of the business community attending the ‘Shevolution’ business summit in Pakistan’s commercial hub of Karachi on Wednesday said only 15 percent of the country’s women were professionals, out of which less than five percent were businesswomen.
This lack of representation and access to finance were described as a “serious dilemma” by participants, with officials at the Women Chamber of Commerce and Industry Korangi, which organized the summit, saying the national GDP could grow three times with equal participation of women in the economy.
Women make up 48 percent of Pakistan’s population but female employment participation is 20 percent, official data shows. The World Bank says if women’s participation was at par with men, Pakistan’s GDP could increase by 60 percent by 2025.
“The biggest challenge for women is to make a case to raise finances to scale up their businesses, to prove to the financiers that they can also be relied on in terms of returning those loans and making good money for themselves from those investments,” Mehvish Waliany, CEO of Alkaram Studio, a major textile company, told Arab News on the sidelines of the event.
“There are plenty of women entrepreneurs out there but they all exist in very small spaces.”
Saima Nadeem, a former member of the National Assembly of Pakistan, said women wished to come forward but lacked recognition.
“We haven’t been able to give that access, that direction to women even if they have been given loans,” Nadeem said.
One solution, according to Sahibzadi Mahin Khan, patron-in-chief and founding president of the Women Chamber of Commerce and Industry Korangi, was more women in leadership positions, who could make women-focused policies and allow more room for female participation and growth.
“We need more women in leadership roles, and I think I am just trying to contribute some of my efforts to this ecosystem where we want to bring in more women,” Khan told Arab News. “We want to train, we want to facilitate and bring them to a level where they can hold the hands of those who come after them and be able to mentor them. We are trying to make a circle out of it.”
Individuals and institutions also needed to take women more “seriously,” Khan added:
“The SECP [Securities and Exchange Commission of Pakistan] says there should be more than one woman [in the top management]. But when we talk to the corporate sector, they say they have taken one woman onboard. What happens is, they [companies] aren’t giving women the power of decision making.”
But conditions had improved in recent years, according to Naushaba Shahzad, Executive Vice President at the National Bank of Pakistan, who said there had been a “significant improvement” in the ecosystem provided to businesswomen by the government and other financial institutions.
“[The] State Bank [of Pakistan] and other banks have been coming forward with specific women-focused policies for empowering women and providing finances to women,” Shahzad, a senior banker with 30 years of experience, said.
“There is a significant increase in the number of businesswomen … Especially after the [coronavirus] pandemic, a lot of women have started online businesses. They are coming forward and doing really well.”
Saquib Fayyaz Magoon, senior vice president of the Federation of Pakistan Chamber of Commerce and Industry, quoted the finance minister and said women entrepreneurs were likely to get subsidies in the upcoming budget, either in terms of tax breaks or other support for their ventures.
“Without women participation, it is not possible to improve the economy,” he said. “If we ignore 51 percent of our population and move ahead, it will be the dream of a fool. It is not possible. We have to involve women to grow our economy.”
And men needed to be part of the change, said Andreas Wegner, deputy head of mission at the German Consulate Karachi, who was attending the event:
“What really could bring women forward as well, and men, is when men open up to the idea that the 50 percent of the population that are not men can bring diversity, new ideas and bring other solutions and benefits.”
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