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
Al-Gharbia Company launches ‘Roshan’ project in Jeddah
Al-Gharbia Development and Investment Company, the development arm of real estate company Tatweer Group in the western region, announced the launch of its first project in Jeddah at a ceremony in the city. The event was attended by real estate developers, businessmen and investors.
The project, named Roshan, is an ambitious urban and commercial development project located in the north of Jeddah. It consists of residential and commercial buildings and will be constructed in accordance with the highest design and engineering standards.
Boasting a strategic location, Roshan, to be built on a total area of 1 million square meters, will be located close to urban development projects, hotels, residential and commercial complexes, and government facilities.
Expressing delight at the launch of the new project, Mohamed Habes, CEO of Al-Gharbia Development and Investment Company, said Roshan represents “a wonderful start for the company.” He said: “The project embodies the company’s ambitious standards in construction and real estate development, which take into account the creation of a comprehensive and integrated community environment that guarantees its customers the enjoyment of quality of life in a balanced and harmonious society.”
The (Roshan) project supports the company’s ambitions to contribute to Saudi Arabia’s Vision 2030.
Mohamed Habes, CEO of Al-Gharbia Development and Investment Company
Habes added: “The project supports the company’s ambitions to contribute to Saudi Arabia’s Vision 2030, which aims to improve the quality of life, enhancing real estate development projects, playing a pivotal role in shaping a vibrant society and a thriving economy.”
Comprising 20 commercial plots and 614 residential plots, Roshan will also include green spaces and a central park built on an area of 29,000 square meters, offering an enjoyable healthy environment for its residents.
HIGHLIGHT
Roshan, to be built on a total area of 1 million square meters, will be located close to urban development projects, hotels, residential and commercial complexes, and government facilities.
Habes said the project’s infrastructure facilities, such as electricity, water and sewage networks, and communication and internet services, will be developed to guarantee comfort and luxury for the residents. Roshan will also include seven public parks, seven schools, seven mosques, a health center, and a main park in the heart of the project, consisting of sports areas and cycling tracks.
Petal Ads and talabat partner to boost regional expansion
Huawei has announced its partnership with talabat, a regional platform for everyday deliveries. Through this partnership, talabat will use Petal Ads, Huawei’s digital advertising platform, to propel its business expansion through cutting-edge targeting capabilities.
The collaboration was officially initiated with a signing ceremony, which took place on May 7 at the Petal Ads booth during the Arabian Travel Market 2024 in Dubai. This alliance between two industry leaders signifies a commitment to revolutionizing digital advertising and enhancing user engagement.
talabat will integrate targeted advertising initiatives powered by Petal Ads. Furthermore, the talabat app will be featured in Virtual Preload, a unique lifestyle folder on all Huawei devices. This first-of-its-kind initiative for talabat will ensure faster access to the app for Huawei users.
“Partnering with talabat, a leader in the food delivery and q-commerce industry, is a significant step for Petal Ads,” said William Hu, managing director of Huawei Consumer Business Group, Middle East and Africa Eco Development and Operation. “This collaboration offers an exciting opportunity to leverage our digital advertising expertise and contribute to the success of the talabat platform, creating new avenues for businesses to connect with their audiences.”
Stefano Vecchio, vice president, strategy and innovation at talabat, expressed enthusiasm about the collaboration: “We’re excited to partner with Petal Ads to utilize Huawei’s media and third-party channels, as well as have the talabat app pre-installed onto millions of Huawei mobile devices across the region. This partnership will help us further simplify the everyday life of customers in the region by delivering food, groceries and more to their doorstep.”
This collaboration will empower talabat and Petal Ads to leverage the strengths of both platforms, providing a unique opportunity to connect with their respective target audiences in a more personalized and effective manner. Additionally, users and businesses alike can expect an enhanced experience from this partnership.
Dyson unveils first dedicated wet floor cleaner
Dyson has unveiled its latest floorcare technology, designed to pickup wet and dry debris in one go to deliver a hygienic clean on hard floors, across large spaces. With 1-liter clean water tank to cover flooring up to 290 square meters, the Dyson WashG1 uses a combination of hydration, absorption, and extraction technologies to remove wet and dry debris in one go — automatically separating it out, so maintenance is more hygienic.
Charlie Park, vice president of Dyson Home Engineering at Dyson, said: “Wet cleaning is considered a necessary chore globally and the perceived burden has been the target of a vast array of wet floor cleaning formats. Despite this, users’ expectations are often left unfulfilled when it comes to stain removal, pickup performance, and floor finish. Dyson engineers solve the problems others ignore and we thrive on the challenge of creating better technology. The Dyson WashG1 is the result of this; our first dedicated wet machine to wash hard floors, properly and hygienically.”
Two individually powered rollers counter-rotate whilst a pulse-modulated pump distributes water evenly across 26 precisely positioned hydration points, along the full width of each roller.
Each roller is made up of a highly absorbent microfiber, with 64,800 filaments per cm2. This combination of high-density microfiber and consistent application of clean water ensures liquid spills are absorbed, whilst dry dirt, debris, and hair is enveloped by the millions of filaments. By positioning two rollers at the front and back of the machine, Dyson engineers also achieved longer dwell time on stains with each pass, for powerful and fast stain removal.
Dyson’s unique separation technology divides debris and dirty water at source, for hygienic, no-touch disposal. Dirty water is extracted from the rollers by durable extraction plates, whilst secondary nylon-bristled inner brush bars remove dirt and debris from the microfiber rollers, flicking it straight into a removable debris tray.
The debris tray has been designed with a 500-micron mesh to separate dirty water from the large debris. Powered by an extraction pump, dirty water is immediately collected in a 0.8 liter capacity dirty water tank, without allowing large debris to pass through the machine. Keeping the dirt and debris in the head of the machine, and the dirty water in a separate tank allows for easy and hygienic disposal.
The Dyson WashG1 wet floor cleaner is available from August priced at SR2,799 ($746) exclusively through Dyson Direct.
ILF Saudi Arabia: Improving quality of life in Kingdom for over 40 years
It has been more than four decades since ILF Consulting Engineers first set foot on Arab soil. Originally known as Ingenieurgemeinschaft Lässer-Feizlmayr, ILF was a modest sized company when it was first commissioned by the Saline Water Conversion Corporation to engineer a revolutionary pipeline system.
This system, stretching 467 km from Jubail on the Arabian Gulf to Riyadh, heralded the world’s inaugural closed high-pressure pipeline system for water transportation. With the start of this pioneering project, the journey of ILF in the Gulf region began.
Since then, ILF has continued to expand its presence in Saudi Arabia, winning contracts for some of the region’s largest and most ground-breaking water transfer projects with a total length of close to 15,000 km.
Today, in the face of climatic challenges, the creation of sustainable infrastructure and utilities is one of the country’s most important tasks.
Building on its impressive history in the provision of excellent engineering services in the Kingdom for many decades as well as its global expertise in the fields of energy and climate protection, water and environment, transportation and urban spaces as well as resources and sustainable industry, ILF is able to provide both engineering and advisory services to help meet current and future challenges for today’s society and future generations.
The introduction of Saudi Vision 2030 serves as a strategic framework aimed at diversifying the country’s economy and reducing its dependency on oil revenue. The core objectives encompass economic diversification, privatization, promotion of investment, enhancement of education, social and cultural development, and governance reform, and include significant public and private investments in sustainable infrastructure and utilities.
In alignment with Vision 2030, and through its commitment to its core values of improving the quality of life through the provision of excellent engineering and advisory services, ILF Saudi Arabia not only supports the Saudization, localization and regional headquarters initiatives but also provides its services to a wide range of public and private clients for projects in the following fields:
• Water and environment (water treatment, sewage treatment, industrial waste water treatment, water transmission, water storage, water distribution, water reuse, urban irrigation, irrigation, greening initiatives, parks and natural reserves.)
• Energy and climate protection (renewable power generation — solar, wind and geothermal, battery energy systems, energy storage — pumped storage, power transmission and distribution)
• Transportation and urban development (urban infrastructure)
• Resources and sustainable industry (mining infrastructure, carbon capture)
ILF’s commitment to sustainability is reflected not only in the company’s project portfolio, where they support their clients in their efforts to achieve sustainable development through a wide range of projects, but also in the local training program the company has been running for over 10 years, something ILF regards as a sustainable contribution to society. ILF is also a member of the global movement of companies that measure and disclose their environmental, social, economic and governance impacts in accordance with international reporting standards, helping them to evolve in a sustainable way.
“At ILF Consulting Engineers in Saudi Arabia, we take great pride in our contributions to current and future projects. Our commitment to improving the quality of life permeates our daily endeavors and drives our continued growth in both staff and project scope,” the company said in a statement.
A ‘floating resort’: Bookings open for Saudi Arabia’s first cruise line ‘AROYA Cruises’
Cruise Saudi, a 100 percent Public Investment Fund owned business, responsible for the creation and development of the cruise industry in the Kingdom, has announced the commercial launch of its owned cruise line, AROYA Cruises, with trips now available to purchase via its website.
As the first Arabian cruise line, AROYA Cruises is leading the way offering remarkably Arabian experiences for guests at sea and onshore. Pioneering in its design, AROYA Cruises reflects Arabian generosity and Saudi Arabia’s famous “hafawa” (hospitality), providing a unique experience with passenger comfort at its heart.
With the ability to accommodate 3,362 passengers, AROYA Cruises is a floating resort, 335 meters in length, with 1,678 cabins, including stunning balcony and sea view cabins, suites, and villas. The entertainment concept has been curated to offer activities for all passenger groups. The ship has 20 entertainment venues across 18 decks that will allow passengers to indulge in an array of experiences, including shopping in the Souq AROYA retail area, and enjoy performances in the 1,018-seater AROYA Theater, which will captivate guests with headline entertainment, movies, and dedicated shows for children. Families can connect in the Atrium Area, which will host “Gathering Hubs” and “Variety Acts,” and enjoy the 1,858-square-meter “kids zone,” with a splash area equipped with water slides.
For those looking to relax and unwind whilst onboard, the “Blossom by AROYA” spa will have all passenger wellness needs covered. With a focus on immersion of the five senses — sound, sight, taste, aroma and touch — the facilities include a thermal suite, snow room, relaxation room, and treatment room, as well as a beauty clinic, beauty salon, men’s barbers and gym.
With five complimentary restaurants, 11 specialty restaurants, and 12 cafés and lounges, Aroya offers a wide variety of F&B options from across the globe, spanning Lebanese, Italian and Asian. Amongst these dining outlets is IRTH, the first Saudi restaurant at sea, featuring traditional Arabian dining.
Dr. Joerg Rudolph, president of AROYA Cruises, said: “The launch of our cruise line to commercial markets is an important milestone for both AROYA Cruises, and for the tourism landscape in Saudi. We are thrilled that the public can now book sailings with us as we strive to reinvent the meaning of holidays in Arabia. We have been steadfast in our mission to create a ‘Remarkably Arabian’ cruise line offering for guests at sea and onshore, commercially and sustainably, and we look forward to sharing this with our passengers.”
For an elevated offering, the AROYA VIP package provides exclusive designated areas for a premium experience. With spacious and unique accommodation, outdoor lounges and exceptional dining, the AROYA exclusive experience provides the very best amenities and services for guests.
With inaugural sailings scheduled in the Red Sea for December 2024, itineraries will include time at the Cruise Saudi-owned private island, as well as visits to major destinations along the Red Sea, including Egypt and Jordan.
Cabins fares start from SR558 ($150) per person, per night.
