SINGAPORE: Oil prices edged up on Wednesday following a report of tightening US fuel inventories amid an outage at Syncrude Canada oil sands facility in Alberta, which usually supplies the US.
Prices were also pushed up by looming US sanctions against Iran, which threaten to cut supplies to an already tight market despite pledges by producer cartel OPEC to raise output to make up for the disruptions.
US West Texas Intermediate (WTI) crude futures rose 46 cents, or 0.6 percent, to $74.60 a barrel at 0343 GMT, compared with their last settlement. On Tuesday, WTI hit its highest since November 2014 at $75.27.
Brent crude futures were changing hands at $78.10 per barrel, up 34 cents, or 0.4 percent, from their last close.
Trading activity is expected to be limited on Wednesday by the US Independence Day holiday.
US crude inventories fell by 4.5 million barrels to 416.9 million barrels in the week to June 29, the American Petroleum Institute (API) said on Tuesday. Gasoline and distillate stocks, which include diesel and heating oil, also fell, the API said.
“The draw in distillates was against expectations,” said Sukrit Vijayakar, managing director of energy consultancy Trifecta.
The decline in fuel inventories was largely down to the outage at Syncrude Canada’s 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta. The outage is expected to last through July.
But brokerage Phillip Futures said the lower stocks come “as gasoline demand spikes on peak driving season in the northern hemisphere.”
Outside North America, looming US sanctions against major oil exporter Iran were the focus of attention.
The US government has demanded that all countries stop buying Iran’s oil from November.
To make up for potential shortfalls in supply from Iran and other disruptions including in Libya and Venezuela, the Organization of the Petroleum Exporting Countries (OPEC) has agreed with Russia and other oil-producing non-OPEC members to raise output from July.
OPEC-member Iran, however, has warned it would not accept other producers reaping the benefits by taking its market share.
Iran’s President Hassan Rouhani on Tuesday said it was “unwise to imagine that some day all producer countries will be able to export their surplus oil and Iran will not be able to export its oil.”
Oil prices edge up as US supply tightens, Iran sanctions loom
Oil prices edge up as US supply tightens, Iran sanctions loom
Closing Bell: TASI edges down to close at 12,372 points
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 0.61 points, to close at 12,372.50.
The total trading turnover of the benchmark index was SR7.36 billion ($1.96 billion) as 116 stocks advanced, while 110 retreated.
Similarly, the MSCI Tadawul Index decreased by 2.63 points, or 0.17 percent, to close at 1,549.13.
On the other hand, the parallel market, Nomu, increased, gaining 0.85 points, to close at 26,791. This comes as 20 stocks advanced while as many as 39 retreated.
The best-performing stock was Bupa Arabia for Cooperative Insurance Co. as its share price surged by 10 percent to SR275.
Other top performers included the Mediterranean and Gulf Insurance and Reinsurance Co. and Al-Rajhi Company for Cooperative Insurance, whose share prices soared by 9.97 percent and 9.93 percent, to stand at SR33.10 and SR148.40 respectively.
The worst performer was Arabian Internet and Communications Services Co., whose share price dropped by 4.46 percent to SR334.4.
Saudi Cable Co. as well as Gulf Insurance Group, did not perform well, as their share prices dropped by 3.55 percent and 3.01 percent to stand at SR76 and SR33.85, respectively.
On the announcements front, Bupa Arabia for Cooperative Insurance Co’s profits surged to SR359 million, during the first quarter of 2024, up 91 percent from SR189 million in the same quarter of the previous year.
According to Al-Ekhbariya, net investment income reached SR158 million in the first quarter compared to SR102 million in the same quarter of the previous year, marking a 54 percent increase.
Insurance revenues for the current quarter amounted to SR4.37 million, compared to SR3.75 million in the same quarter of the previous year, reflecting a significant increase of 16.63 percent.
This growth is primarily attributed to operational expansion and an increase in the number of insured individuals, as reported by the channel.
Al-Rajhi Company for Cooperative Insurance also announced its interim financial results for the period ending March 31 with revenues increasing to SR1.4 million from to SR865,298 during the similar quarter of the previous year.
This marked an increase of 50.6 percent attributed the increase to a growth in overall business volume, according to a Tadawul statement.
Similarly, net profit after zakat attributable to shareholders for the current quarter amounted to SR111,376, compared to SR61,282 during the similar quarter in previous year, an increase of 81.7 percent.
According to the company, the improvement stemmed from increased net insurance service results, rising to SR113,229 from SR97,616 in the previous year, a 16 percent surge due to business growth.
Pakistan ‘high priority' economic opportunity for us, Saudi top minister says in Islamabad
- 50-member Saudi delegation with representatives from 30 companies in Pakistan for investment conference
- 125 Pakistani companies negotiating with Saudi companies visiting Pakistan, petroleum minister says
ISLAMABAD: Pakistan is a “high-priority economic investment and business opportunity” for Saudi Arabia, the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak said on Monday, as a two-day Pak-Saudi investment conference kicked off in Islamabad with a focus on business-to-business engagements.
A 50-member delegation led by Al-Mubarak arrived in Pakistan on Sunday, comprising some 30 Saudi companies from the fields of IT, telecoms, energy, aviation, construction, mining exploration, agriculture and human resource development.
“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” Al-Mubarak said as he addressed the investment summit.
“We believe in the great potential of Pakistan's economy, demographics and talent as well as location and natural resources.”
Al-Mubarak said this was his second visit to Pakistan in two weeks and many influential leaders from globally renowned Saudi companies were part of his delegation.
“Today, we want to connect you [Pakistan] all to Saudi companies who desire to continue building their international presence, for Saudi Arabia's ambitions do not stop at our borders and we would like to see Pakistan as one of our leading international partners,” the Saudi official added.
“So, this gathering provides a wonderful opportunity for them [Saudi companies] to develop a deeper understanding of the great opportunities available for investment in Pakistan and to learn about related regulations, requirements, and incentives.”
Addressing a press conference in Islamabad, Petroleum Minister Dr Musadik Malik said 125 Pakistani companies were negotiating with the Saudi companies who were visiting Pakistan.
“First, there were government-to-government agreements during the visit of the Saudi foreign minister [last month] and now there will be business-to-business agreements,” he said.
“To facilitate the visiting Saudi companies, the Pakistani commerce ministry has affiliated one focal person with each Saudi company.”
Minister for Commerce Jam Kamal Khan said Pakistani and Saudi companies were discussing joint ventures and collaboration in diverse sectors.
“This delegation includes high officials of more than 32 Saudi companies … Saudi businessmen will invest in Pakistan in different stages,” Khan said at the press conference.
“Pakistani companies are present here, in the energy sector, in the food sector, in the construction sector, in the renewable section, in the ports and shipping section, and the IT services and general services.”
He said the visit by the Saudi delegation was “just the beginning” and now a Pakistani delegation would visit the Kingdom “to move forward towards the implementation phase.”
INVESTMENT PUSH
Pakistan and Saudi Arabia have been closely working in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.
The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum.
On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.
This was Sharif’s second meeting with the crown prince in a month. Before that he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh.
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country. During the first half of the current financial year, bilateral trade between Pakistan and Saudi Arabia was recorded at $2.482 billion, with Pakistan’s exports of $262.58 million and Saudi exports of $2.219 billion.
Saudi Arabia has often come to Pakistan’s aid in the past, regularly providing it oil on deferred payments and offering direct financial support to help stabilize its economy and shore up forex reserves.
As things stand, Pakistan desperately needs to shore up its foreign reserves and is in talks with the International Monetary Fund (IMF) for a new bailout deal, for which it needs to signal that it can continue to meet requirements for foreign financing which has been a key demand in previous loan packages.
Last year Pakistan set up the Special Investment Facilitation Council, a body consisting of Pakistani civilian and military leaders and specially tasked to promote investment in Pakistan. The council is so far focusing on investments in the energy, agriculture, mining, information technology and aviation sectors and specifically targeting Gulf nations.
Saudi domestic tourism records steady growth in Q1 2024
RIYADH: Domestic tourism in Saudi Arabia witnessed steady growth during the first four months of 2024, an industry report showed.
The report, based on the data extracted from Almosafer’s consumer travel platforms, showed that 53 percent of the total bookings accounted for local tourist destinations.
The top domestic destinations were Makkah, Riyadh, Jeddah, Alkhobar, and Abha while people also showed keen interest in visiting AlUla, Tabuk, and Hail.
The sustained interest in domestic tourism showcases the success of government and private sector initiatives to boost local tourism, resulting in a 29 percent increase in total domestic booking volume across Almosafer channels.
Flights saw a 27 percent increase compared to the same period last year while hotel bookings rose by nearly double at 40 percent in the same duration.
With Saudi Arabia’s tourism sector booming, travelers are keen to make the most of their breaks as they focus on in-destination experiences.
The addition of more flight routes, an increase in capacity, and the opening of new airports in the Kingdom has led to more affordable flight options on low-cost carriers, while Saudi travelers are willing to spend on luxury stays with 51 percent of hotel bookings on the platform being for 5-star properties and experiences, they are taking advantage of budget-friendly flight options.
Data showed an overall jump from 55 percent in 2023 to 62 percent among travelers opting to fly low-cost this year.
Internationally this year 46 percent of total bookings were done for low-cost carriers compared to 44 percent in 2023.
In terms of international destinations, Dubai, Doha, Manama, Cairo, and Istanbul remain the top favorites among Saudis. At the same time, there has been a significant shift of focus toward South Asia and the Far East with Tokyo, Singapore, and Bangkok increasingly seeing more footfall from Saudi travelers.
European capitals including Madrid and Amsterdam are also emerging as trending destinations for bookings made in the first four months of 2024.
It is worth noting that the Kingdom hosted 27.4 million international and 79.3 million domestic tourists in 2023, witnessing 65 percent and 2 percent growth compared with 2022, respectively.
The tourism sector has become important to the national economy, as spending on tourism by domestic and international tourists exceeded SR250 billion ($66.7 billion) in 2023. The sector is set to contribute 10 percent to the non-oil gross domestic product and create 1 million job opportunities by 2030. This spending represented more than 4 percent of the Kingdom’s GDP and 7 percent of the non-oil GDP, highlighting the significance of the tourism sector to the Kingdom’s economy.
According to a World Tourism Barometer report released in January 2024, Saudi Arabia topped UN Tourism’s ranking for the growth of international tourist arrivals in 2023 compared with 2019 among large destinations, achieving a 56 percent increase in international tourist arrivals.
Additionally, the report indicated that Saudi Arabia recorded a remarkable tourism recovery rate of 156 percent in international tourist arrivals in 2023 compared with 2019.
These notable achievements have positioned the Kingdom as a leader in the Middle East’s global tourism recovery. It was the only region to surpass pre-COVID-19 pandemic levels, with a 122 percent recovery rate in international tourist arrivals in 2023 compared with 2019.
Saudi private sector employment reaches 11.27m in April: official data
RIYADH: Saudi Arabia’s private sector has created more job opportunities, with the total number of employees reaching 11.27 million workers in April, official data showed.
According to the Saudi National Labor Observatory report, there was a net increase in citizen employment for April, with 18,535 individuals newly joining the private sector workforce.
Among these figures, there are over 2.35 million Saudi nationals, comprising more than 970,200 female workers and over 1.38 million male employees.
On the other hand, NLO data showed that the total number of residents employed in the private sector exceeded 8.91 million individuals, comprising over 8.55 million male workers and only 364,900 female employees.
The report provides an overview of the Saudi private sector, highlighting a dynamic workforce of over 9.9 million male workers and more than 1.3 million female workers, representing diverse nationalities and playing integral roles in sector operations.
In February, the total number of employees in the Saudi private sector reached 11.1 million, marking a 0.9 percent increase from the previous month, according to an NLO release.
The national observatory report revealed that out of the total, 2.3 million were Saudi nationals, while 8.8 million were residents of the Kingdom belonging to different nationalities.
That data reflected a positive trend in the employment industry as the private sector continues to expand its workforce, creating opportunities for Saudi citizens.
Moreover, an analysis of the Saudi national workforce revealed that while 961,690 employees were females, 1.4 million were males.
Meanwhile, among the 8.8 million non-Saudi workers, 348,892 were women, while 8.4 million were men.
In February alone, the net growth in jobs for Saudi nationals as well as residents stood at 26,694, indicating a steady increase in employment within the private sector.
Saudi Arabia’s economic diversification efforts have transformed the Kingdom into a hub for employment opportunities, propelled by bold giga-projects such as NEOM, which attract fresh talent into the construction sector.
NLO, a governmental organization, is tasked with monitoring and analyzing labor market trends and dynamics in the country. It serves as a crucial resource for policymakers, researchers, and stakeholders interested in understanding and addressing issues related to employment, workforce development, and labor market regulations.
Saudi Arabia’s NHC signs deal with Chinese company to boost building materials supply
RIYADH: Saudi Arabia’s building materials supply is set to get a boost with the signing of a deal between the National Housing Co. and a leading Chinese construction firm.
The agreement with China’s CITIC Construction Group seeks to establish an industrial city and logistic zones for building materials, comprising 12 factories, with the objective of securing supply chains for the NHC’s housing projects.
NHC CEO Mohammad Albuty finalized the deal during the official visit of Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail to China.
In a statement, the NHC said the agreement with the Chinese construction group are part of its efforts to secure supply chains for its housing projects and ensure their timely completion and high quality.
The Saudi company said the deal entails the construction of 12 factories specializing in building materials, harnessing Chinese expertise, and involving local factories to uplift business standards.
It added that the deal also aims to draw top-tier service providers across various sectors of the company, its subsidiaries, and other projects.
The company pointed out that the agreement is expected to maximize the economic and developmental impact of the real estate sector in the Kingdom, develop housing projects, enhance their quality, and promote national transformation in the construction sector through these industrial cities and logistic zones.
The statement also highlighted that this collaboration will facilitate the expansion of small and medium factories in the Kingdom, establish direct production lines for the company’s projects, and foster the growth of the local industry. Additionally, it will create numerous job opportunities in the sector.
The company said the agreement strengthen the comprehensive strategic partnership between Saudi Arabia and China, established during the Chinese president’s visit to the Kingdom in December 2022.
