LONDON: If China and the US cough, other countries can catch the flu; so significant is the economic ripple effect of these two behemoths.
Trade tariffs and diverging policies toward North Korea are among a growing list of issues that will likely drive discord this year. Energy stakeholders cannot afford to ignore the yo-yo of cooperation and frustration between these two titans.
China is the world’s biggest buyer of oil, surpassing the US in annual gross crude oil imports in 2017 with 8.4m bpd compared to the US’ 7.9m bpd.
Last December, preliminary data from China’s General Administration of Customs showed that China’s crude oil imports rose 15.7% year-on-year to a record high of 10.48m bpd in November.
Plus, the Asian Development Bank expects energy demand to almost double in the Asia and Pacific region by 2030; music to Middle Eastern energy exporters’ ears.
To the west, the boomerang nature of the US’ energy industry suggests more surprises await in the 2020s.
The US has been a net energy importer since 1953, but the continued growth in petroleum and natural gas production means the country will be a net energy exporter by 2020, according to the US’ Energy Information Administration (EIA).
This is an astonishing turnaround, especially considering UN data shows that the country’s population more than doubled from 158 million in 1950 to 324 million in 2017.
Take the LNG market alone: having become a net natural gas exporter on an annual basis in 2017, the US could be the world’s largest exporter by the mid-2020s.
When it comes to economic growth, China takes the crown. Beijing will manage the world’s largest GDP by 2050, while the US’ position on the global scoreboard slips one spot to third place, detailed PwC.
Yes, China is experiencing its lowest growth rate since 1990 and some justifiably anticipate another deceleration post-2020, toward 5% annual growth.
But perspective is vital; President Trump would be delighted if the US steadily posted 5% annual growth. For now, the International Monetary Fund (IMF) expects China’s GDP growth this year to be 6.2% versus the US’ growth of 2.5%.
Simmering tensions between the two will undoubtedly persist. Beijing tends to act without much political fanfare, while President Trump is more vocal but often has less of a bite.
Still, the consensus among Middle Eastern energy stakeholders is that codependence will prevail over strategic mistrust – for now. Making more friends is the Middle East’s best hedging tool. With some strategic quid pro quo, a worst-case scenario can see the region grappling with a cold while isolationists battle the flu.
How can Middle Eastern energy stakeholders plot a safe path through this year’s geopolitical wilderness to remain competitive and have energy security? Ignore isolationists and make more friends. Middle Eastern countries are relatively small; the entire economy of the GCC roughly equates to that of India.
While it’s important to be friends with the US, it’s no longer enough. Alliances with China, India, wider Asia, Europe and the fastest-growing hubs in Africa are also critical.
For example, the Middle East must attract investments from China’s One Belt, One Road initiative (OBOR), as well as India’s Think West policy.
Popular estimates for Chinese investment under the OBOR initiative range from $1 trillion to $8 trillion, according to the Center for Strategic and International Studies. Comparatively, the Marshall Plan after World War II provided the equivalent of $800 billion in reconstruction funds to Europe.
Meanwhile, India’s efforts to integrate itself deeper into geopolitical dimensions, economies and transnational networks are gaining traction.
The country’s $2 trillion economy recently overtook France to become the world’s sixth largest economy, according to Acuité Ratings and Research. PwC expects India’s GDP growth to overtake the US by 2050, securing the number two spot behind China.
Clearly, nurturing friendships in such high places – the world’s fastest growing economies and biggest energy consumers – can support the Middle East’s coffers while minimizing the bruises caused by the sharp elbows of geopolitics.
Saudi Arabia-based Apicorp said the Middle East and North Africa (MENA) must invest $260 billion in its power sector alone to meet rising electricity demand in 2018-2022. This is just one example of where friends with deep pockets and a reliance on imports can help the Middle East scale its cliff of energy demand.
Saudi Energy Forum 2019: How Middle East stakeholders can remain competitive, secure
Saudi Energy Forum 2019: How Middle East stakeholders can remain competitive, secure
Basic Electronics Co. breaks ground on Al-Asasyah Advanced Industry HVAC Smart Factory in Dammam
In light of the industrial renaissance witnessed by Saudi Arabia under Vision 2030, and Saudi Green Initiative, which aims to reduce carbon emissions by 2030 and pave the way toward zero neutrality by 2060, Basic Electronics Co., Ltd. laid the foundation stone for the Al-Asasyah Advanced Industry HVAC Smart Factory in Dammam. The facility, covering an area of more than 70,000 square meters in the first stage, specializes in the manufacture of sustainable air conditioners, directly contributing to reducing carbon emissions. More than 2,000 employees will work at this factory.
The groundbreaking ceremony took place in the presence of Dong Meng Zhu, chairman and CEO of Gree Electric Appliances Inc., on April 23.
Since its establishment in 1961, the company has been engaged in the manufacture and sales of household appliances, commercial electronic appliances, air conditioners, monitoring and control devices, medical devices and others.
In a bid to support the localization of industry by the company’s management, the basic factory for smart meters was established and operated in the Kingdom’s Eastern Province, with a production capacity of more than 300,000 meters per year. The company is celebrating the laying of the foundation stone of the industrial complex for the manufacture of air conditioners in cooperation with its strategic partner Gree. The company is on a journey to target new sectors to localize industry in the Kingdom, through the use of the best international technologies.
The first phase of the industrial complex will produce high-efficiency smart air conditioners with VRF technology, integrated with photovoltaic energy production technology. The first phase also includes smart and innovative laboratories for testing devices, as well as a research and development center and a training center.
The second phase of the industrial park includes the production of all technologies of air conditioning solutions using the latest industrial technologies such as artificial intelligence and digitization systems produced by strategic partner Gree, which holds many patents.
Investing in the development of Saudi talent, capacity building, technology transfer and localization is one of the most important objectives of the company’s vision.
Jameel Motorsport, SAMF drive Saudi racing talent forward
As part of its commitment to nurturing sporting talent in the Kingdom, Jameel Motorsport collaborated with the Saudi Automobile and Motorcycle Federation to launch the GR Saudi Driving School Future Co-Driver Program. This initiative will discover the next generation of professional co-drivers who will partake in cross-country rallies, bolstering Saudi Arabia’s presence on the regional and international motorsports stages.
The Future Co-Driver Program took place recently in Jeddah, bringing together the chosen participants with international industry experts. Led by renowned motorsports racer Captain Abdullah Bakhashab, the program provided aspiring co-drivers with a unique opportunity to undergo rigorous training to hone their skills and prepare them for the challenges ahead.
From a pool of around 600 applicants, the top 32 individuals were handpicked from four regions: the western region, Eastern Province, northern region, and central region. This selection process ensured that only the most deserving candidates progressed to the next stage.
Prince Khalid bin Sultan Al-Abdullah Al-Faisal, chairman of the SAMF, said: “The launch of the GR Saudi Driving School Future Co-Driver Program marks a significant milestone in our efforts to empower the youth of the Kingdom. This initiative underscores our dedication to fostering a new generation of skilled professionals, equipped to navigate the challenges of the racing world with precision and proficiency. Through strategic collaboration and innovative training, we are laying the foundation for a future where Saudi talent shines on the global stage, driving our nation toward a thrilling era of success in motorsports.”
The program’s curriculum encompassed a comprehensive range of essential skills tailored to prepare participants for the dynamic role of a co-driver in motorsports. Candidates delved into the intricacies of their role, understanding the crucial responsibilities of navigating alongside the driver. They learned to read roadbooks with precision, utilize devices such as ERTF and Stella and gain valuable knowledge to navigate rulebooks effectively. Participants also learned about time management, including handling timecards and administrative tasks, as well as effective communication and collaboration techniques with drivers, fostering a cohesive team dynamic essential for success on the track.
Hassan Jameel, chairman of the board of managers of Abdul Latif Jameel Motors, said: “The GR Saudi Driving School Future Co-Driver Program marks a pivotal moment in our ongoing commitment to nurturing talent and promoting excellence and leadership in motorsports. Our collaboration with the Saudi Automobile and Motorcycle Federation focuses on cultivating promising young talents in the Kingdom, in line with Vision 2030’s Quality of Life program. By empowering aspiring co-drivers with world-class training and mentorship, this initiative not only elevates the standards of motorsports in Saudi Arabia but also paves the way for an even brighter future in the sport, fostering a culture of innovation and success.”
Upon completion of the program, all participants were awarded certificates, recognizing their dedication and accomplishment in mastering the complexities of co-driving.
With the launch of the Future Co-Driver Program, Jameel Motorsport and the SAMF are poised to inspire a new generation of motorsports enthusiasts, driving innovation and excellence across the Kingdom and beyond.
Saudi Awwal Bank reports 16 percent growth in Q1 net profit at SR2 bn
Lubna S. Olayan, chair of the board of directors of Saudi Awwal Bank, announced the bank’s financial results for the period ending March 31.
SAB recorded a net profit after zakat and income tax of SR2.04 billion ($543.9 million) for the period ending March 31, representing an increase of 16 percent compared to the same period of 2023. The total operating income rose 7 percent to SR3.44 billion.
Commenting on the financial results, Olayan said: “I am delighted to share with you the highlights of our achievements in the first quarter of 2024. It has been an exceptional period for SAB, marked by achieving significant milestones and continued success.
“Our loan growth has been remarkable, outpacing the market with a solid 6 percent year-to-date increase. This growth has been primarily driven by institutional and large corporate businesses, showcasing the strength of our offerings in these segments. Notably, our mortgage growth has also been a key component of growth, with a commendable 16 percent origination market share.”
She said SAB’s trade-related business has experienced a similar upward trajectory, rising by 6 percent, with multinational activity continuing to expand, underscoring the bank’s global reach and influence.
Olayan added: “In addition, I am pleased to announce that we have achieved record revenue of SR3.4 billion, representing an impressive 8 percent quarter-on-quarter growth. This exceptional performance has contributed to a return on tangible equity of 16.5 percent, reflecting a 16 percent year-on-year increase in net income.
“Our commitment to excellence underlies these results and has garnered industry recognition, as we were honored with the esteemed ‘Best Trade Finance Provider in Saudi Arabia’ award by Global Finance and the prestigious ‘Best Domestic Private Bank in Saudi Arabia’ award by Euromoney Private Banking Awards. These accolades highlight the strength and diversity of our services and our unwavering dedication to meeting our customers’ needs with efficiency and innovation.”
She said that amidst a challenging global environment, SAB has also experienced success in furthering its sustainability agenda.
“As we look toward the next three years from a business perspective, we have strengthened our ESG governance, sustainable finance practice, and focus on climate change. Our commitment to sustainability has been recognized by Global Finance designating SAB the ‘Best Bank for Sustainable Finance in Saudi Arabia.’“
Olayan said that the bank’s strategy positions it as a future-ready institution, a leader in the digital and ESG realms, and a clear leader outpacing the lending market.
“We also aim to be a formidable player in corporate banking and treasury, while continuing to enhance our reputation as the bank of choice for an even broader range of customers.
“Lastly, our partnership with HSBC remains instrumental to our success and journey, further solidifying our position as one of the leaders in the banking industry in the Kingdom of Saudi Arabia,” she added.
Olayan thanked the bank’s board members, senior management committees, and the entire SAB staff. “I extend my sincerest gratitude to them for their contributions. I would also like to express our appreciation to HSBC for their unwavering support and to the Saudi leadership and our regulators, the Saudi Central Bank and the Capital Market Authority, for their continued guidance and assistance,” she added.
LuLu festival celebrates 24 varieties of Saudi mangoes
LuLu Hypermarket’s “Saudi Mango Festival” has turned the spotlight on the different varieties of the sweet fruit grown in Saudi Arabia. Twenty-four local varieties of Saudi mango are on display in the aisles of all Lulu outlets across Saudi Arabia for the duration of the festival, running from May 1-7.
The festival was inaugurated simultaneously in three cities — in LuLu Atyaf Mall, Riyadh by Muhammad Al-Abdullatif, assistant undersecretary for agricultural facilities and supportive services, and M. Suleiman bin Saleh Al-Jutaili, director general of the General Administration of Marketing and Agricultural Associations; in LuLu Al-Ruwais, Jeddah, by Majid bin Abdullah Al-Khalifa, director general of the Ministry of Environment, Water and Agriculture, Makkah region branch, and his deputy Walid Al-Daghis; and in Dammam’s LuLu Hypermarket, Ash Shatea Ash Sharqi District, where the festival was organized in cooperation with the Alrowia Cooperative Society for Agricultural Marketing, and inaugurated by Fahd bin Ahmed Al-Hamzi, general manager of the Ministry of Environment and Agriculture, Eastern Province branch.
The festival is part of a long-term program to promote Saudi agricultural products and support Saudi farmers. It presents shoppers with an opportunity to bite into the juicy goodness of popular Saudi mango varieties such as Sudani, Baladi (Kabeer, Koora and Zibta varieties), Zill, Thoomi, Keeth, Selastion, Shila, Zibta Ahler and others. Also on offer are varieties from other countries that were painstakingly grafted and cultivated in Saudi soil, such as the Langra, Thai and Indian varieties, some South American and African mangoes, and more.
The Saudi Mango Festival 2024 presents the juicy harvest in many celebrated forms, ripe and raw, cooked and lightly salted or dusted with complementary spices, in addition to desserts, curries, pickles and smoothies. There are also promotions galore and treats in the Lulu Hot Food and Cold Food section, including items such as mango fish curry, mango chicken curry, stuffed chicken breasts, traditional delicacies like aamras (mango puree) and puri bread, and healthy drinks.
“I am very pleased to inaugurate the mango festival this year. The Saudi mango has seen a bumper harvest this year and LuLu has highlighted this delicious fact,” said Al-Abdullatif. “We will keep innovating in our Saudi agricultural arena and hope to have many varieties of popular fruit and vegetables for the health-alert and taste-conscious Saudi shopper through LuLu.”
“Lulu Hypermarket is once again pleased to bring the goodness and deliciousness of mango to fans in Saudi Arabia and especially promote the 24 Saudi varieties,” said LuLu Saudi Director Shehim Mohammed. “Full of vitamins, fiber and taste, this is a great summer fruit and this promotion is a great way to applaud the efforts and success of Saudi farmers. We wish all our shoppers happy mango tasting!”
Also present at the Riyadh inauguration were Dr. Ibrahim Al-Turki; Nayef Al-Masoudi, director of agricultural projects at the Council of Associations; and Khaled Hanifat, Jordanian minister of agriculture.
The accompanying delegation in Jeddah consisted of Assistant Director General for Technical Affairs Dr. Abdul-Mane bin Issa Al-Khaibari, Director of the Agriculture Department at the Ministry’s branch in Makkah Muhammad bin Ali Al-Shehri, Director of the Office of the Minister of Environment in Jeddah Governorate Ahmed bin Al-Harithi, and his deputy Reem bint Ahmed Bahamdeen.
ArabExpo: A pioneering journey in Middle East’s exhibition industry
Established in 2013, ArabExpo has emerged as a trailblazer in the Middle Eastern exhibition industry. Headquartered in Saudi Arabia, the company has since grown into a multi-faceted enterprise, providing a wide range of services to support the region’s thriving exhibition landscape.
In its formative years, ArabExpo made a significant mark when it secured the role of official contractor for DMG Events and shortly after for Reed-Sunaidi. These partnerships paved the way for the company’s expansion, as it established a dedicated office in Dubai in 2014 to better serve the growing demands of the region.
The year 2016 witnessed a significant milestone for ArabExpo, as it unveiled new production facilities in Dubai. These state-of-the-art facilities enabled the company to enhance its capabilities and deliver high-quality event solutions to its clients. This strategic move solidified ArabExpo’s position as a reliable and versatile player in the industry.
In 2017, ArabExpo secured a groundbreaking contract with the Turkish authorities to construct the Turkiye country pavilion. Soon after a similar contract with Germany saw ArabExpo as the main contractor for the German pavilions. These achievements showcased the company’s expertise in large-scale project management and demonstrated its ability to collaborate seamlessly with international partners.
The year 2018 marked another pivotal moment in ArabExpo’s history, as it was appointed as the official contractor for all shows organized by Informa Markets in Saudi Arabia. This prestigious contract strengthened the company’s reputation as a trusted and reliable partner in the region’s exhibition industry.
The following year saw a significant expansion of ArabExpo’s premises in Dubai, Jeddah, and Riyadh. This move allowed the company to accommodate its growing client base and enhance its service offerings, solidifying its position as a dominant player in the Middle Eastern exhibition landscape.
The challenges posed by the COVID-19 pandemic in 2020 did not deter ArabExpo’s momentum. The company was contracted by the Dubai authorities to facilitate vaccination efforts and implement comprehensive COVID-19 safety protocols, demonstrating its adaptability and commitment to supporting the community during unprecedented times. Additionally, ArabExpo was awarded various production and fit-out contracts for Expo 2020 Dubai, further cementing its reputation as a reliable partner in large-scale event execution.
As the growth in Dubai continued, so did the activities in Saudi Arabia; ArabExpo won a major contract and became the official contractor for the World Defense Show in Riyadh. The excellent planning, partnership and expertise demonstrated by ArabExpo ensures that they remain the exclusive service provider for WDS in the 2024 edition as well.
In 2023, ArabExpo continued its growth trajectory, expanding its offerings in the realm of fit-outs and interior decorations with the launch of “ArabDeco.” Furthermore, the company secured a contract with Sela, the leading venue management company, to provide comprehensive venue services through its innovative “Venue Hive” branch.
As ArabExpo looks to the future, its growth strategy remains firmly focused on developing and supporting the exhibition industry in the Middle East. By leveraging its expertise, innovative solutions, and deep understanding of the region’s needs, the company aims to add significant value to Vision 2030, contributing to the transformation of the Saudi capital into a vibrant global hub for trade, investment, and cultural exchange.
