MOSCOW: The Organization of the Petroleum Exporting Counters and its allies, known as OPEC+, may consider wrapping up their oil output reduction in 2020, Russian Energy Minister Alexander Novak said on Friday.
“As far as the production cuts are concerned, I repeat once again, this is not an indefinite process. A decision on the exit should be gradually taken in order to keep up market share and so that our companies would be able to provide and implement their future projects,” Novak told Rossiya 24 TV.
“I think that we will consider that this year.”
Russia’s energy ministry said that Novak was referring to 2020 when talking about a possible decision to wrap up production curbs “this year.”
OPEC+ has been capping its output since 2017 in order to balance out the supply and demand on the global oil market as well as prop up oil prices.
Novak praised the cooperation between OPEC and non-OPEC producers, saying that global oil markets are currently more or less stable. He said that the oil demand may rise in the summer when more fuel is required by motorists.
OPEC+ this month decided to prolong its oil output restriction deal until the end of March and to deepen the cuts in order to balance out the oil market.
Russia’s Novak says OPEC+ may consider ending oil output cuts this year
https://arab.news/m6y7v
Russia’s Novak says OPEC+ may consider ending oil output cuts this year
- He said it’s necessary for companies to be able to implement their future projects
- OPEC+ has been capping its output since 2017 in order to balance out the supply and demand on the global oil market as well as prop up oil prices
Middle East IPO market set for continued growth in 2024: PwC report
RIYADH: Initial public offerings in the Middle East are poised for continued positive aftermarket performance this year, following significant post-IPO gains in the first quarter, a new report stated.
PwC’s latest IPO+ Watch report highlighted the Saudi Stock Exchange’s emergence as a dominant force in Gulf Cooperation Council equity market launches activity, hosting the majority during the quarter, underscoring the region’s attractiveness to investors seeking dynamic opportunities.
“Tadawul is reported to remain the most active exchange in the GCC with all but one IPOs taking place on either Tadawul main market or the Nomu parallel market,” the report stated.
On the primary market, three IPOs garnered a combined total of $667 million, while on the secondary market, six offerings raised $57 million in total.
Notable among the recent successes are MBC Group Co. and Avalon Pharma, both witnessing substantial market gains.
However, the report noted that the market’s attention has been captured by the demand for Dubai Parking, which set a new record for subscription levels at the Dubai Financial Market, being oversubscribed by 165 times.
The offerings landscape in the Middle East during the first three months of this year was characterized by activity across various sectors, showcasing a diverse range of investment opportunities.
From consumer markets with companies like Parkin Co. and Modern Mills for Food Products Co., to health industries represented by Avalon Pharma, and technology, media, and telecommunications with MBC Group Co., the IPO wave has touched multiple sectors.
Additionally, smaller-scale market debuts were observed in the financial services, industrials, manufacturing, and automobile sectors.
Muhammad Hassan, capital markets leader at PwC Middle East, expressed optimism, citing Parkin’s oversubscription and double-digit post-IPO gains as indicators of sustained positive momentum.
“We expect the privatization agenda across the GCC, combined with the ambition of private family businesses to go public, will continue to drive issuance supporting positive momentum in GCC IPO activity in 2024,” he added.
Looking ahead, the report anticipated continued strength in the public flotation landscape for the remainder of 2024, buoyed by a robust pipeline.
Private sector companies seeking liquidity and access to capital are expected to drive much of this activity, with Saudi Arabia and the UAE leading the charge. Nevertheless, there’s growing momentum in markets like Oman and Qatar, signaling a broader regional expansion of IPO activity.
Qatar Investment Authority commits to supporting France’s semiconductor sector
RIYADH: Qatar will venture into France’s tech industry as a major investment body announced its intent to anchor a financial commitment in Ardian Semiconductor.
This move marks the Qatar Investment Authority’s participation in a pioneering thematic fund designed to enhance the semiconductor industry in Europe. It highlights its role as a preferred financial partner in key technology subsectors, including supply chain developments.
QIA’s strategic focus on this sector reflects its belief in the critical role semiconductors play in driving digital and green transformations across vital industries such as artificial intelligence, mobility, and consumer technology, according to an official release.
This initiative is part of QIA’s broader investment strategy to engage with leading businesses at the forefront of innovation.
Notably, QIA’s interest in the semiconductor value chain includes a recent minority stake in Japan’s Kokusai Electric Corp., a leader in semiconductor manufacturing, taken in June 2023, underscoring its ongoing commitment to significant investments in this area globally.
Furthermore, on May 13, QIA announced its plan to significantly expand its investment partnership with Bpifrance by as much as €300 million ($323 million), reinforcing their joint commitment to stimulating economic growth and innovation in France.
This enhancement marks a pivotal development in their collaboration, initially established through the Future French Champions joint venture.
The first phase of this partnership, concluded in 2021, effectively channeled almost €300 million into supporting job creation, economic development, and particularly bolstering the French small and medium-sized enterprises sector.
Building on these achievements, both entities progressed to the second phase of their collaboration in January 2023, committing an additional €300 million.
They now plan to embark on a third phase, pledging up to another €300 million once the current funds are fully deployed.
The renewed partnership will focus on strategic priorities such as artificial intelligence, semiconductors, quantum computing, healthcare, aerospace, and energy transition.
These investments are intended to advance technological capabilities, enhance competitiveness across various sectors, and promote sustainable growth, reflecting both parties’ commitment to driving significant innovations and supporting France’s long-term economic objectives.
OPEC sticks to oil demand view, sees improvement in global economy
RIYADH: The Organization of The Petroleum Exporting Countries stuck to its forecast for relatively strong growth in global oil demand in 2024 on Tuesday and said there was a chance the world economy could do better than expected this year.
In its monthly report, OPEC said world oil demand will rise by 2.25 million barrels per day in 2024 and by 1.85 million bpd in 2025. Both forecasts were unchanged from last month.
Demand for members of the Organization of Economic Co-operation and Development is projected to expand by nearly 0.3 million bpd, while the non-OECD is forecast to grow by about 2 million bpd.
This is the last report before OPEC and its allies, known as OPEC+, meet on June 1 to finalize output policy. The oil alliance, in its report, sounded an upbeat tone on the economic outlook.
“Despite certain downside risks, the continued momentum observed since the start of the year could create additional upside potential for global economic growth in 2024 and beyond,” OPEC said.
The world economic growth forecasts for 2024 and 2025 remain unchanged at 2.8 percent and 2.9 per, respectively.
The report slightly revised up the US growth forecast for 2024 and 2025 to 2.2 percent and 1.9 percent respectively.
“The economic growth forecast for the eurozone remains at 0.5 percent for 2024 and 1.2 percent for 2025,” it added.
It kept China’s economic growth forecast at 4.8 percent in 2024 and 4.6 percent in 2025. Russia’s economic growth for 2024 is revised up slightly to 2.3 percent, while the forecast for 2025 remains at 1.4 percent.
According to the report, refinery margins in April continued to trend downward as the recovery in refinery processing rates and stronger product output weighed on product markets.
ITFC’s new initiative promises to boost economic and trade growth in Central Asia
RIYADH: Economic and regional integration among the six Organization of Islamic Cooperation member countries is set to grow with a new program from the International Islamic Trade Finance Corp.
The Trade Connect Central Asia+ Program, also known as TCCA+, was launched recently by ITFC, a member of the Islamic Development Bank Group, during the third Tashkent International Investment Forum. It is poised to enhance economic growth in Kazakhstan, Kyrgyzstan, and Tajikistan, as well as Turkmenistan, Uzbekistan, and Azerbaijan.
The region, which boasts one of the world’s largest energy resources and significant production capacities in energy and agriculture, currently lacks the trade markets needed to harness its full potential, according to a press release.
In a statement at the launch, Hani Sonbol, CEO of ITFC, said: “We are immensely proud to launch the TCCA+ Program, which represents a significant step forward in enhancing economic cooperation and boosting trade across the Central Asia region and beyond.”
He stated that this initiative is designed to unlock the vast economic potential of the region by facilitating increased regional trade and investment.
“With a focus on the energy and agriculture sectors, we are committed to fostering sustainable economic growth and regional integration that benefits all member countries involved,” added Sonbol.
Focused on boosting regional trade and expanding the export base toward higher value-added products, the TCCA+ Program is anticipated to foster inclusive and sustainable economic growth, alongside promoting regional economic integration among the six targeted countries, the release added.
Qiddiya Investment Co. incorporates SEVEN to advance Saudi entertainment industry
RIYADH: Leisure firm Saudi Entertainment Ventures is set to be incorporated into Qiddiya Investment Co., an affiliate of the Kingdom’s sovereign wealth fund.
The integration of the firm, also known as SEVEN – another subsidiary of the Public Investment Fund – into QIC will strengthen the objectives of advancing the entertainment concept, nurturing local talents and capabilities, and improving the quality of life across the Kingdom, the Saudi Press Agency reported.
SEVEN aims to revolutionize leisure nationwide by enhancing visitor experiences through the development and operation of 21 entertainment destinations across 14 cities in the Kingdom, with investments surpassing SR50 billion ($13.3 billion).
Abdullah Al-Dawood, managing director of QIC and chairman of SEVEN, underscored the significance of the entertainment firm’s integration into QIC. He emphasized that this move supports their ability to foster a culture of playfulness and joy among all members of society, including citizens, residents, and visitors, thus contributing positively to societal well-being.
“The step also aims to nurture knowledge, skills, and creativity among individuals, ultimately targeting to create a new concept of fun and improving quality of life through the development of an integrated and unprecedented entertainment system, capable of contributing significantly to the Kingdom’s economic diversification plan,” Al-Dawood added.
