LONDON: The British pound recovered Friday from weakness prompted by a Russian decision to expel British diplomats, as the world rallied in support for London in a crisis sparked by the poisoning of a double agent, analysts said.
World stocks, meanwhile, rose slightly at the end of a volatile week as fears lingered of a global trade war, tarnishing a positive economic outlook.
“Yesterday morning the pound fell on headlines that Russia was going to retaliate and expel British diplomats,” said Fawad Razaqzada, market analyst at Forex.
The pound then “started to recover” after the leaders of France, Germany and the US blamed Russia for a nerve agent attack on former spy Sergei Skripal, saying there was “no plausible alternative explanation” for the assault.
“There is nothing like a Russian boogieman to bring EU and UK political adversaries together,” wrote Jasper Lawler, head of research at the London Capital Group.
European and US stocks rose Friday, after Donald Trump’s appointment this week of Larry Kudlow — a supporter of the president’s “America First” agenda but who has criticized his tariffs move — appeared to limit worries of an imminent trade war, at least on the European front.
In Germany, the EU’s economic powerhouse, the DAX was up as shares in Siemens’ Healthineers unit surged after the industrial giant raised €4.2 billion ($5.1 billion) in an initial public offering.
For the bloc as a whole, the main event was the final eurozone inflation reading for February, which came in at 1.1 percent.
“Clearly whatever the (European Central Bank) ECB is doing to get that (consumer price index) CPI figure creeping higher isn’t working, news that helped send the...DAX and CAC up,” Connor Campbell, analyst at Spreadex traders.
Attention now turns to the Federal Reserve’s monetary policy meeting next week. A rate rise is expected but its statement and new bank boss Jerome Powell’s comments will be pored over for clues about future hikes with speculation it could announce three more this year.
“It’s shaping up to be arguably one of the most critical central bank policy events in some time as Jay Powell gets set to dictate the course of Fed policy for the remainder of 2018 and beyond,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
Further uncertainty has been fanned by reports that Trump is planning to sack his National Security Adviser HR McMaster, just days after Secretary of State Rex Tillerson was ousted and not long since Trump’s chief economic adviser Gary Cohn resigned.
Elsewhere on Friday, bitcoin was stable around $8,470 after heavy losses in recent days.
Pound recovers as world supports Britain in spy case
Pound recovers as world supports Britain in spy case
Saudi barcode agency enhances product tracking to international standards
RIYADH: Saudi Arabia is poised to have an enhanced product tracking system providing accurate production-to-consumption information as its barcode agency expands, adhering to international standards.
GS1 Saudi Arabia, locally known as the Saudi Barcode Center, has unveiled its latest expansion plans and development initiatives, aimed at offering reliable details about national and international products, tracking their production, storage, distribution, and reaching the end consumer.
This will aid in product recalls, reduce commercial fraud, and promote e-commerce.
The center, operating under the Federation of Saudi Chambers, made the announcement during the inaugural meeting of the board of directors, attended by Hassan Al-Huwaizy, chairman of the center and head of the FSC, the Saudi Press Agency reported.
The meeting discussed the center's plans and initiatives to strengthen its position and improve its services to both the public and private sectors. The gathering also saw the approval of the Product Traceability System and the National Products Catalog projects, based on international barcoding standards.
Board member Saad Al-Turaif emphasized the significant potential for the center to expand its capabilities in serving both the government and private sectors. He also underscored the pivotal role of barcoding in facilitating exports and protecting products.
In order to boost the center’s effectiveness, the board of directors proposed refining its organizational structure and implementing comprehensive governance guidelines to regulate all administrative and financial procedures.
According to its website, GS1 Saudi Arabia is the sole authorized entity providing GS1 international barcodes for the local market, serving as a foundational tool for automation in inventory, warehouse management, and point-of-sale systems.
The Saudi center began operations in 1999, aiming to heighten awareness among local businesses about supply chain automation and foster their adoption to enhance logistics workflows.
The center adheres to the specifications of the international organization and aims to increase awareness and promote the adoption of barcoding, utilizing the global barcode system to establish a common international language for economic activities.
GS1, a neutral and global collaboration platform, has over 2 million registered companies worldwide utilizing its standards.
AI key to crossing Vision 2030 finish line in Saudi Arabia: PwC executive
RIYADH: In a rapidly evolving digital landscape, the push for transformative strategies has become a cornerstone for businesses across Saudi Arabia, according to a top PwC Middle East executive.
Following the launch of the firm’s latest report – “Digital acceleration: Fueling the ambition for transformation success in Saudi Arabia” – Marwan Khamis, a partner at PwC Middle East, emphasized to Arab News the pivotal role of emerging digital technologies in achieving sustainable growth and strategic objectives for organizations within the Kingdom.
Khamis highlighted that organizations are actively pursuing transformation initiatives at the halfway mark to Saudi Vision 2030, with a keen focus on leveraging emerging technologies like generative artificial intelligence, referred to as GenAI, to enhance decision-making, efficiency, resource utilization, and compliance.
Speaking on the sidelines of the Global Project Management Forum in Riyadh, he said: “AI is coming into play. According to a recent survey that we have done, 73 percent of CEOs in the Middle East that were surveyed believe that they need to adopt AI within the next three years in order to make sure that they are delivering outcomes to their beneficiaries.”
GenAI offers significant promise in automating routine tasks and streamlining project management processes, the report added.
This automation liberates organizations to concentrate more on strategic growth initiatives and cultivating robust client relationships.
By integrating real-time data and advanced training programs, GenAI empowers businesses to analyze extensive datasets, identify operational efficiencies, and redefine industry best practices.
According to the report, resource availability and timely decision-making emerged as the primary challenges for C-suite executives, cited by 90 percent of respondents, a fact that can be supplemented through the use of emerging technologies.
This was closely followed by resistance to change, at 80 percent, and data availability, which was cited by 7 percent of respondents.
Therefore, overcoming these hurdles requires a strategic approach, one that embraces technological advancements while addressing cultural and economic factors that influence the pace and scale of transformation.
Khamis highlighted the critical importance of project management in the transformation journey of entities, saying: “As organizations are moving into their transformation journey, project management is becoming more and more important as a key driver for them to move into that transformation.”
The executive also addressed the growing recognition of the need for advancement among Middle East CEOs, stating, “According to the recent CEO report that we’ve published in PwC, 48 percent of all Middle East CEOs believe that their businesses need to transform within the next few years.”
In order for these sought-after transitions to come to life, Kamis outlined the most result-proven strategies based on PwC research.
“The most effective transformation management offices and project management offices usually focus on two things. One is fostering a positive work culture where all project managers and experts collaborate effectively. The second is the adoption of digital solutions within the transformation journey,” he said.
Khamis further emphasized that as it pertains to the Saudi market, specifically as it nears the 2030 mark, quality execution has become paramount in achieving successful transformation across both public and private sectors.
The success story of the Saudi National Events Centre, known as NEC, serves as a testament to the transformative power of digital technologies.
Leveraging PwC Middle East’s Transform Hub, the NEC has emerged as a frontrunner in delivering world-class events and experiences in Saudi Arabia and the region.
This underscores the potential for digital innovation to drive operational efficiency, innovation, and long-term success in the Kingdom’s dynamic business environment.
Aramco to woo global investors with multi-city roadshows for $12bn share sale: Bloomberg
RIYADH: Saudi energy giant Aramco is launching a series of events in London and the US aiming to generate interest in its $12 billion share sale, according to Bloomberg.
The news agency said that Amin Nasser, Aramco’s CEO, “will be among officials attending at least one of the events in London this week,” citing people familiar with the matter.
It added that Chief Financial Officer Ziad Al-Murshed will also be present in the city over the next few days.
Simultaneously, plans are underway for a separate event in the US, hinting at the company’s keenness to tap into diverse pools of investment.
According to Bloomberg Intelligence, investors could stand to gain from a $124 billion annual payout, offering a dividend yield of 6.6 percent. This enticing proposition, despite the company’s resilient valuation and the absence of buybacks, underscored Aramco’s confidence in attracting global capital.
Post-offering, the Saudi government will retain its ownership stake of approximately 82 percent in Aramco, with the Kingdom’s sovereign wealth fund securing an additional 16 percent share.
Riyadh Municipality and The Helicopter Co. sign MoU to enhance air mobility
RIYADH: Riyadh is on track to enhance its air mobility thanks to a new agreement between the city’s municipality and The Helicopter Co.
The memorandum of understanding between with the Public Investment Fund-owned company aims to develop a future vision for air mobility in Riyadh, according to a statement.
It also seeks to enhance and diversify investment opportunities in the city in accordance with the highest international standards.
This falls in line with Saudi Arabia’s goal of increasing passenger numbers and expanding flight routes.
It also aligns well with the Riyadh Municipality’s mission to elevate the city by promoting sustainable urban development, providing high-quality services, and building effective partnerships toward a vibrant community.
Moreover, the newly signed MoU is set to enhance visitors’ access to tourist destinations, enhancing their experience.
Saudi Arabia issues 127 regional HQ licenses for companies in Q1
RIYADH: More than 120 international firms received licenses to relocate their regional headquarters to Saudi Arabia during the first quarter of 2024, representing a 477 percent year-on-year increase.
In its quarterly report, Saudi Arabia’s Ministry of Investment revealed that the 127 permits issued in the first three months of the year underscores the Kingdom's attractive and favorable business environment.
The drive to attract regional bases to Saudi Arabia plays into the Vision 2030 initiative to diversify the Kingdom’s economy, and includes new tax incentives for multinational companies who secure a relocation license.
These perks include a 30-year exemption on corporate income tax and withholding tax related to headquarters activities, alongside discounts and support services.
According to the recently approved laws in Saudi Arabia, companies with state contracts must have a regional headquarters in the Kingdom with a minimum of 15 employees.
The Ministry of Investment’s report added that the Kingdom processed 445 applications for investor visit visas during the first quarter of this year, allowing overseas businesspeople to visit Saudi Arabia and explore opportunities.
During the first quarter, the ministry also closed 64 investment deals. Additionally, investment licenses issued reached 3,157 in the first quarter, representing a 92.9 percent increase compared to the preceding year.
According to the report, 864 investment licenses were issued in the construction sector during the first three months of this year, followed by 620 permits in the manufacturing industry.
The ministry issued 396 licenses for vocational, educational, and technical activities, while 263 permits were granted in the information and communication technologies sector.
A significant number of investment licenses were also issued in other sectors including accommodation and food, wholesale and retail, and real estate.
“In Q1 2024, real estate recorded the highest growth in investment licenses by 253.3 percent year-on-year, followed by vocational, educational and technical activities, and agriculture, forestry and fishing by 141.5 percent and 129.4 percent respectively,” said the ministry.
Moreover, more than 58,000 services were provided through the department’s electronic platform in the first quarter, marking a rise of 29 percent over the same period in the previous year.
In May, a report released by S&P Global stated that the opening of free economic zones and the regional headquarters program could accelerate foreign direct investment inflows into the Kingdom.
“Future FDI inflows could offer upside on the back of growing investment opportunities and government efforts to improve regulatory and business conditions. These efforts include the opening of free economic zones and a 30-year tax break for multinational companies opening regional headquarters in the country,” said the credit rating agency.
In February, a report by Saudi Arabia’s Small and Medium Enterprises General Authority highlighted that the Kingdom’s Regional Headquarters Program has played a crucial role in accelerating the economic growth of Riyadh.
In November 2023, Minister of Investment Khalid Al-Falih announced that Saudi Arabia has outperformed its target for attracting regional headquarters, with over 180 companies now established in the Kingdom.
