French state-owned bank drops plan to aid trade with Iran

French state-owned bank Bpifrance has abandoned its plan to set up a mechanism to aid French companies trading with Iran. (AFP)
Updated 24 September 2018
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French state-owned bank drops plan to aid trade with Iran

  • US-imposed sanctions sanctions iare making trade with Iran increasingly difficult for European companies - such as Volvo
  • US is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Tehran and world powers

PARIS: French state-owned bank Bpifrance has abandoned its plan to set up a mechanism to aid French companies trading with Iran, in the face of US sanctions against Tehran.
Earlier this year, the bank had said it was working on a project to finance French companies that wished to export goods to Iran despite US sanctions.
“It’s put on hold,” said Nicolas Dufourcq, Bpifrance’s chief executive. “Conditions are not met (...) Sanctions are punitive for companies.”
Bpifrance was working on establishing euro-denominated export guarantees to Iranian buyers of French goods and services. By structuring the financing through vehicles without any US link, Bpifrance thought it was possible to avoid the extraterritorial reach of US legislation.
Dufourcq’s latest comments show how the scope of the sanctions is making trade with Iran increasingly difficult for European companies.

Swedish truckmaker Volvo has been forced to stop assembling trucks in Iran as it can no longer get paid with US sanctions taking bite.
Volvo spokesman Fredrik Ivarsson said due to the sanctions Volvo could no longer get paid for any parts it shipped and therefore had taken the decision to not operate in Iran.
"With all these sanctions and everything that the United States put.. the bank system doesn't work in Iran. We can't get paid... So for now we don't have any business (in Iran)," he said.
The US is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Tehran and world powers. Washington reimposed some of the financial sanctions from Aug. 6, while those affecting Iran’s petroleum sector will come into force from Nov. 4.
Even though several European countries have said they are seeking to protect their companies from the sanctions, several major companies including oil company Total, Air France-KLM and British Airways have announced they would suspend activities in Iran.
German officials have in recent weeks advocated for the creation of an independent system for cross-border payments to make trade with Iran possible even with the US sanctions.
European Union diplomats have said US President Donald Trump’s positions on trade and on Iran were fueling a rethink about the EU’s dependency on the US financial system.
However, European countries appear to be struggling to find or agree on effective options to tackle the issue.


IsDB annual meeting sees signing of several deals

Updated 9 sec ago
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IsDB annual meeting sees signing of several deals

RIYADH: The 2024 annual meeting of the Islamic Development Bank Group saw the signing of several agreements, boosting the telecommunications sector in its member countries.

The Islamic Corporation for the Insurance of Investment and Export Credit, known as ICIEC, which specializes in providing Shariah-compliant insurance services and is a member of the IsDB, announced the inking of a memorandum of understanding with Huawei Technologies Ltd., the Saudi Press Agency reported. 

The memorandum was signed by ICIEC CEO Osama Al-Qaisi and the chief operations officer of Huawei Technologies, Silas Zhang. 

Under the agreement, ICIEC continues its collaboration with Huawei to enhance the telecommunications infrastructure and leverage advanced communication technology in IsDB member countries.

According to SPA, ICIEC will provide insurance solutions to support the provision of advanced communication network equipment and offer training to key telecommunications operators in member countries. 

Al-Qaisi emphasized that the MoU with Huawei represents a significant roadmap toward supporting the enhancement of vital communication framework in member countries through the integration of advanced technology, extensive expertise, and distinguished insurance solutions offered by ICIEC.

He stated: “We are laying the foundation for strong growth and a qualitative leap in the telecommunications sector in member countries, where this collaboration rises to the level of partnership, enabling member countries to harness their full potential to establish a better and more innovative communications sector.”

The ICIEC also signed a MoU with the Federation of Contractors in Islamic Countries, known as FOCIC.

It was signed by Al-Qaisi, and FOCIC President  Zakaria Abdul Rahman Al-Abdul Qadir on the sidelines of the IsDB event. 

Al-Qaisi explained that the memorandum stems from the institution’s commitment to enhancing understanding and implementation of Islamic insurance in all member countries, aiming to establish a comprehensive framework for cooperation in the areas of knowledge exchange and technical capabilities in the insurance and contracting sectors.


Digital advancements propelling Saudi Arabia toward Vision 2030 goals: top official 

Updated 27 sec ago
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Digital advancements propelling Saudi Arabia toward Vision 2030 goals: top official 

RIYADH: Digital advancements in Saudi Arabia have significantly enhanced efficiency across key sectors, reducing the need for physical visits to government departments and leading to considerable savings, said a top official. 

Addressing the annual meetings of the Islamic Development Bank Group, Ahmed Al-Suwaiyan, governor of the Digital Government Authority, highlighted major improvements made through digitalization as part of Saudi Arabia’s Vision 2030 initiatives aimed at enhancing basic services.  

He underscored the tangible benefits of increased productivity and decreased expenses for governments, citizens, and businesses. 

“In Saudi Arabia, as part of the various programs and objectives of Vision 2030 for basic services, whether it is the issuance or renewal of national IDs, driving licenses, or even passports, before digitalization, it took more than four hours, including the waiting time at government departments,” said Al-Suwaiyan. 

Today, he added, it actually takes less than two minutes without the need to visit the government department, requiring only three clicks.  

“This has actually made us save more than 160 million trips and more than SR23 million annually,” said Al-Suwaiyan.   

He emphasized that “this is the value that we are talking about,” highlighting how increasing productivity and reducing costs benefit not only governments but also citizens and enterprises through digitization. 

The governor emphasized how digital transformation has influenced each pillar of the Vision 2030 goals, enabling swift advancements within the Kingdom. 

“I would like to speak about Vision 2030, where digital transformation is a key enabler that we can see cross-cutting all the different sectors and all objectives in the development of Vision 2030. If we talk about a “vibrant society,” we can see a clear link with the participation and engagement for every citizen. And the same goes for a thriving economy,” he said. 

The official further expressed that merely adopting digitization to do so is not the goal. Instead, the authorities’ efforts are simply a “means” to create a more efficient society.  

In the Kingdom’s justice sector, a similar transformation has occurred with the establishment of fully operational virtual courts, where 95 percent of all hearings are conducted online. 

However, the primary focus is not solely on the implementation of virtual courts, but rather on achieving specific outcomes. 

One notable outcome has been the significant reduction in the time taken for case processing, with the average duration decreasing from 217 days to just 30 days, from the opening of the case to the issuance of the resolution. 

This reduction in processing time exemplifies the tangible value derived from digital transformation efforts. 
 


IsDB chief vows to support private sector in member states

Updated 56 min 47 sec ago
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IsDB chief vows to support private sector in member states

RIYADH: Since its establishment over 30 years ago, the Islamic Development Bank has supported its member states with $151 million in the form of investments and trade deals, said the top executive of the bank.

In his opening remarks at the 12th Private Sector Forum held on the sidelines of the 18th IsDB annual meetings in Riyadh on Sunday, the bank’s president, Mohammed Sulaiman Al-Jasser, said the financial institution has pumped in over $108 billion to support development projects in member states since its inception.

Speaking about the event, the IsDB chief said it offers potential investors an opportunity to network, exchange experiences, establish partnerships, and launch trade initiatives. 

Al-Jasser said it is “a very good opportunity” to explore different opportunities and services provided by various IsDB institutions to support the private sector’s development.

He said the IsDB’s body to support the private sector in its member countries has initiated 451 projects worth $6.9 billion across various sectors such as the financial sector, agriculture, and energy.

“It has different investment operations in 50 countries. In 2023, it focused on supporting small and medium enterprises in member states,” Al-Jasser said.

He said the International Islamic Trade Finance Corp. was established in 2008 and has been supporting member states since then with financing facilities. “In 2023 alone, it issues loans worth over $75 million.”

The IsDB president said the bank strongly believed in supporting the private sector in member states.

Al-Jasser went on to say that the IsDB has “also signed many agreements and conventions to make use of the opportunities in the field of investment and trade” in member states. 

The annual meetings coincide with IsDB’s golden jubilee, as the institution celebrates 50 years of promoting economic and social development in 57 member countries, under the slogan ‘Taking pride in our past, shaping our future: authenticity, solidarity, and prosperity’ that reflects the bank’s legacy and future goals.

Finance ministers, financial institutions’ representatives, Islamic finance experts, private sector, and non-governmental organizations are participating in the meetings.

Among the annual meetings’ prominent events are the Governors’ Roundtable, the 18th IsDB Global Forum on Islamic Finance, the IsDB Group Private Sector Forum 2024, the Philanthropy Forum, and the Future Vision Symposium, reported SPA.

Discussions address pressing issues such as multidimensional poverty, South-South cooperation, and financing the Sustainable Development Goals.

Meanwhile, the CEOs of the bank’s entities will meet in a strategic session titled ‘Unlocking Economic Potential’ which reflects IsDB’s commitment to promoting economic growth.


Mawani announces first container shipment from Jubail Commercial Port to Riyadh Dry Port 

Updated 28 April 2024
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Mawani announces first container shipment from Jubail Commercial Port to Riyadh Dry Port 

RIYADH: Saudi sea and rail transport links are set to be enhanced with the commencement of the first container shipment from Jubail Commercial Port to Riyadh Dry Port. 

This voyage was made possible through collaborative efforts between the Saudi Ports Authority, known as Mawani, the Tax and Customs Authority, Saudi Railway Co., and Mediterranean Shipping Co., according to a statement. 

Moreover, the containers were transported through the railway connecting Jubail Commercial Port and the East Railway network, carrying a load of 78 receptacles. The maximum cargo capacity for one trip on the railway is 140 standard containers. 

This move falls within the framework of cooperation between Mawani and other concerned parties, especially SAR, which contributes to achieving integration in transporting crates, bulk materials, and general goods by connecting ports using trains.  

This comes with the SAR networks linking the Riyadh Dry Port with King Abdulaziz Port in Dammam, King Fahd Industrial Port in Jubail, Jubail Commercial Port, and Ras Al-Khair Port. 

This development adds a competitive advantage for these terminals and supports the growth of ship loading and unloading services. 

“The launch of the first container shipment from the Jubail Commercial Port via railways to the Riyadh Dry Port and linking the ports to train networks will contribute to enhancing integration between sea and rail transport modes, raising the efficiency of logistical operations, developing the efficiency of exports and imports, and enhancing the competitiveness of the ports to consolidate the Kingdom’s position as a global logistics center in accordance with Saudi Vision 2030,” Minister of Transport and Logistics Saleh Al-Jasser said in a post on X. 


Saudi Aramco and China’s Rongsheng explore JV in petrochemicals 

Updated 28 April 2024
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Saudi Aramco and China’s Rongsheng explore JV in petrochemicals 

RIYADH: Saudi-Chinese investments are set to strengthen as Aramco explores a joint venture with Rongsheng Petrochemical Co. to advance its liquids-to-chemicals strategy. 

According to a press statement, this joint venture is expected to be established in Saudi Aramco Jubail Refinery Co., also known as SASREF. 

Located in Jubail Industrial City within the Kingdom, the facility currently processes crude oil into petroleum products with a production capacity of 305,000 barrels per day.  

Rongsheng recently signed a cooperation framework agreement to explore the potential acquisition of a 50 percent stake in SASREF. 

The agreement also lays the groundwork for the development of a liquids-to-chemicals expansion project at SASREF. Additionally, the press statement mentioned Aramco’s potential acquisition of a 50 percent stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. 

Aramco Downstream President, Mohammed Y. Al-Qahtani, said: “These discussions highlight our ambition to advance our liquids-to-chemicals strategy with strategic partner Rongsheng, both in the Kingdom of Saudi Arabia and China.”  

He added: “In building on our existing relationship, we aim to advance our expansion in a key geography and attract new investment to the Saudi downstream sector.”  

In July 2023, Aramco acquired a 10 percent interest in Rongsheng through its subsidiary Aramco Overseas Co., based in the Netherlands. 

Rongsheng, in turn, holds a 100 percent equity interest in ZJPC, which operates an aromatics production complex and expresses interest in a joint venture focused on producing purified terephthalic acid. 

Earlier in April, Saudi Aramco disclosed that it is in talks to acquire a 10 percent stake in China’s Hengli Petrochemical, aiming to strengthen Aramco’s growing downstream presence in the Asian country.  

In a statement, Saudi Aramco mentioned signing a memorandum of understanding for the proposed transaction, pending regulatory approvals.