Bumper melon harvest sweetens Uzbekistan’s pandemic woes

A woman prepares melons to be hanged for storage in the village of Vazir in the northwest of Uzbekistan. (AFP)
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Updated 28 October 2020
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Bumper melon harvest sweetens Uzbekistan’s pandemic woes

  • The coronavirus pandemic hit Uzbekistan hard, just when it was on an economic upswing

VAZIR, Uzbekistan: In the giant shed of Uzbek farmer Sanat Kalandarov, a bountiful melon harvest hangs suspended from wooden beams, promising profits through a difficult winter ahead.

Kalandarov is practicing a type of storage that is centuries-old — the shed has been in his own family for three generations — and he is dismissive of younger farmers who are turning to refrigerators.

“Melons need fresh air to breathe,” 35-year-old Kalandarov said, indicating narrow slits for ventilation in the shed walls, which are thick enough to shield the fruits from the cold of winter and the early spring heat.

“When the days are frosty, we insulate the room. Plus, this method requires no electricity. It is very economical.”

These thick-skinned varieties of Uzbekistan’s favorite fruit — some shaped like torpedoes, others more spherical — are planted in May, two months after the melons that ripen in summer.

They are then stored and sold during the winter, when their value can grow 15-fold on the domestic market and even more abroad.

This year, the melon growing season has been especially good, and it is just as well.

The coronavirus pandemic hit Uzbekistan hard, just when it was on an economic upswing.

Remittances sent by migrants working abroad fell by half, according to a report by the United Nations Development Program published in July, straining hundreds of thousands of family budgets that depended on them.

Strict lockdowns triggered massive layoffs around the landlocked country of 33 million, with small businesses especially affected.

Kalandarov, by contrast, has been able to hire 12 people who would have otherwise been unemployed from his village of Vazir in the arid northwest of the country.

He is also planning to send his first batch of melons for export to neighboring Kazakhstan by the end of October.

“With COVID-19 and all the unemployment (it has caused), these winter melons are a lifeline,” he said, noting that he had 50 tons of the crop to sell in the off season.

According to the ministry of agriculture, an average of 700,000 tons of melons are grown annually in Uzbekistan on 35,000 hectares of land.

Shohruh Tolibov, an expert from the ministry, said that exports represent less than 10 percent of that total — some of the sweetest varieties do not travel well. But they will more than double this year and have grown five-fold over the last three years.

Such growth has been triggered by the agricultural reforms of President Shavkat Mirziyoyev, who broke up monopoly interests that dominated the export of fruit and vegetables and allowed smallholders the chance to determine their own clients.

Kazakhstan, Russia, Kyrgyzstan, Latvia and Ukraine are the top destinations for Uzbek melons, said Tolibov.

This month, the locally-based Jahon Exim Group claimed it had overseen the first exports of Uzbek melons to Britain.

“We hope that Uzbek melons, known for their taste and health benefits, will be appreciated by local consumers,” said the company’s director Jahongir Giyasov in comments to local media.

Uzbekistan grows more than 50 types of melons.

Khorezm, a region in the lower reaches of the Amu Darya river that benefits from temperate winters, grows at least 12 and they all share a common characteristic — deliciousness.

While other crops fail in this area, “melons grow sweeter on saline land,” said Kalandarov, whose employees feasted hungrily on some of his produce, slicing up the green-skinned bounty like sticky birthday cakes at the end of a long, warm, autumn day.

Kalandarov grew up on the melon fields, and has been growing his own fruit since he was a teenager.

But he is no longer satisfied with this work alone. Instead, his dream is the same as the avowed policy of the national government — to move from selling raw produce to products with value added.

“I have a business plan. I want to create new products — melon jam, melon conserve, dried melon. There is a big demand for these products on foreign markets,” he said.


Saudi Tadawul Group and Chinese Shenzhen Stock Exchange sign MoU to boost cooperation 

Updated 11 December 2023
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Saudi Tadawul Group and Chinese Shenzhen Stock Exchange sign MoU to boost cooperation 

RIYADH: Cooperation efforts between Saudi Arabia and China’s capital markets are on track to flourish thanks to an agreement signed by the Saudi Tadawul Group. 

Inked with the Chinese Shenzhen Stock Exchange, the memorandum of understanding aims to enhance collaboration and explore new opportunities in several areas, including joint listing and financial technology, by leveraging the advantages of both parties, according to a statement. 

This move aligns with the Shenzhen Stock Exchange’s plans to bolster partnerships with foreign exchanges to attract more long-term funds from outside China. 

It also poses a crucial step in promoting the development of the Saudi capital market.

Moreover, fostering the growth of capital markets emerges as a shared objective for both nations as it is believed that issuers and investors from the joint countries will benefit from the deep cooperation between the capital markets, according to officials from Saudi Tadawul Group. 

Under the terms of the agreement, both parties will work hand in hand to study the joint listing of exchange-traded funds and stocks. 

In addition, they will also exchange experiences and mutual learning in various fields, including environmental, social, and governance, financial technology, investor assistance, and corporate incubation services. This will help in supporting the high-quality development of both markets.

Moreover, both sides will jointly research and promote cooperation in products such as indices, funds, and real estate investment trusts. 

The two entities will also jointly build a cross-border capital service mechanism to promote the participation of market entities from both sides in cross-border investments and further advance the connectivity and integration of the capital markets between China and Saudi Arabia.

In September, the Saudi Tadawul Group and the Shanghai Stock Exchange signed an MoU to bolster cooperation and promote mutual development.

At the time, the agreement focused on dual listings of exchange-traded funds, initiatives related to investor relations and infrastructure development, as well as fintech, environmental and social practices. 

There was also support for family businesses and small-medium enterprises, corporate governance, and data exchange and research, according to a statement released at the time.


Closing Bell: TASI edges up 84 points, reaches $2bn trade volume  

Updated 11 December 2023
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Closing Bell: TASI edges up 84 points, reaches $2bn trade volume  

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward trend on Monday, as it gained 84.23 points, or 0.75 percent, to close at 11,380.95.    

The total trading turnover of the benchmark index was SR7.52 billion ($2 billion) as 84 stocks advanced, while 133 retreated.    

Parallel market Nomu performed negatively as it dropped by 170.41 points, or 0.71 percent, to finish at 23,705.39. However, the MSCI Index edged up by 14.78 points to 1,463.16.    

The best-performing stock on the main index was Alkhorayef Water and Power Technologies Co., whose share price soared by 7.79 percent to SR168.80.    

Other top performers of the day included Naseej International Trading Co. and United Wire Factories Co., with their share prices surging by 6.34 percent and 4.23 percent, to reach SR57 and SR28.35, respectively.    

The worst performer of the day was Al-Baha Investment and Development Co. The share price of the company dipped by 7.14 percent to SR0.13.    

Saudi Enaya Cooperative Insurance Co. and Amana Cooperative Insurance Co. were also amongst the worst performers with their stocks dropping by 6.35 percent and 4.37 percent, to close at SR15.34 and SR12.70, respectively.  

In Monday’s trading session, ACWA Power, one of Saudi Arabia’s leading utility companies, saw its shares climb by 4 percent, reaching SR242.   

This marked the stock’s highest closing value since its initial listing, with approximately 500,000 shares traded. The company’s shares peaked at SR243.60 during the day.  

On the announcement front, Al Sagr Cooperative Insurance Co. disclosed today that it has received approval from the Insurance Authority to increase its capital from SR140 million to SR300 million through a rights issue, as per a statement on Tadawul.  

The approval also encompasses modifications to the company’s bylaws regarding the capital article, adapting them to reflect the new capital structure.   

This authorization from the IA holds validity for one year from the date of the letter, within which the capital increase must be completed.  

Al Sagr noted that it is facing difficulties determining the expected completion date for this event with the financial impact to be announced later.   

Additionally, Al Sagr emphasized its commitment to meeting the requirements of all other pertinent regulatory authorities in the course of this capital increase process. 


Saudi sovereign fund launches Dan Co. to promote ecotourism in Kingdom

Updated 11 December 2023
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Saudi sovereign fund launches Dan Co. to promote ecotourism in Kingdom

RIYADH: Saudi Arabia’s Public Investment Fund has launched a company dedicated to promoting ecotourism in the Kingdom.

In a press statement, the sovereign wealth fund said the newly launched firm Dan Co. plans to develop and operate high-end resorts and lodges in the Kingdom to partner with the local community and promote agritourism.

While agritourism refers to visitor experiences related to traditional farming, ecotourism focuses on experiencing nature and minimizing environmental impact. 

The fund revealed that the first project by Dan Co. would be located in the Al-Ahsa region, across 1.8 million sq. meters, featuring an eco-resort, an agritourism retreat and an adventure spot. 

The agritourism retreat will celebrate the unique produce of Al-Ahsa, which is especially famous for its rice and dates.

On the other hand, the eco-resort will utilize local materials with low carbon emissions, preserving the region’s flora and fauna.

The adventure resort will offer activities for travelers, including horse riding, star gazing and hill climbing. 

The press statement added that Dan Co. is expected to contribute SR6 billion ($1.6 billion) to Saudi Arabia’s non-oil gross domestic product by 2030. 

“The establishment of Dan Co. encapsulates one element of PIF’s strategy to further strengthen tourism,” said Khalid Johar, co-head of the fund’s local real estate portfolio department, in the statement.

He added: “It will boost economic development and contribute to national economic growth. The company will operate novel business models that integrate sustainability and embrace nature, involving the private sector and local farmers in agritourism and ecotourism.”

Johar further noted that establishing Dan Co. will also create new job opportunities in the local communities. 

Developing the tourism sector is crucial for Saudi Arabia, as the Kingdom is diversifying its economy away from oil, aligned with the goals outlined in Vision 2030. 

Saudi Arabia’s National Tourism Strategy aims to attract over 150 million visitors by the end of this decade, and the fund has been spearheading this journey after the launch of Vision 2030. 

The fund’s portfolio initiated several strategic investments to strengthen Saudi tourism and boost city economies nationwide.

These include the Soudah Development, which will create a year-round luxury mountain tourism resort in the Aseer region.

On the other hand, Boutique Group is developing historical palaces into luxury boutique hotels.

The fund’s Saudi Downtown Co. also aims to establish and develop urban centers across the Kingdom. 


UAE’s green bonds and sukuk value surges over $4bn in 11 months

Updated 11 December 2023
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UAE’s green bonds and sukuk value surges over $4bn in 11 months

RIYADH: The total value of sukuks, green and sustainability-linked bonds registered with the UAE’s Securities and Commodities Authority reached about 15.45 billion dirhams ($4.2 billion) between January and November, according to a top official.

SCA Chairman Mohamed Al-Shorafa disclosed the figures in an interview with the Emirates News Agency, or WAM, on the sidelines of the UN climate change conference in Dubai.

He appreciated the UAE’s commitment to sustainable development, aligning with the vision of the late founding father, Sheikh Zayed bin Sultan Al-Nahyan, and actively pursued under current leadership guidance.

The UAE’s ambitious target is to achieve net-zero emissions by 2050, with Dubai planning a 50 percent reduction in carbon emissions by 2030. 

Al-Shorafa emphasized the SCA’s pivotal role in regulating the issuance of green and sustainability-linked bonds and sukuk. 

Al-Shorafa said: “Issuing green bonds and sukuk is one of the transformational projects in supporting the efforts to make the UAE the new global economic hub for the next ten years.” 

In a significant move, the SCA exempted companies listing sustainability-linked bonds from registration fees for 2023, reflecting a positive response to the growing demand for these instruments.

Additionally, SCA CEO Maryam Al-Suwaidi highlighted the importance of green bonds in the country’s transformative journey.

“These performance agreements represent forward-looking quality projects that will enhance the country’s competitiveness, and the transformational projects will greatly impact all sectors over short periods and ensure the implementation of the new government action model of the UAE government,” Al-Suwaidi told WAM. 

The UAE has facilitated its green transition by encouraging local companies to raise capital through green sukuk. 

This move included DP World’s successful $1.5 billion green sukuk offering in October, listed on Nasdaq Dubai and the London Stock Exchange, oversubscribed by 2.3 times.


Saudi Arabia’s initiatives help boost industrial licenses by 84%

Updated 11 December 2023
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Saudi Arabia’s initiatives help boost industrial licenses by 84%

RIYADH: Saudi Arabia granted 412 new industrial licenses in the third quarter, marking an 83.9 percent surge compared to the corresponding period in the previous year, according to the latest Investment Ministry data.

The ministry attributed this increase, along with a 1.5 percent rise in capital for newly licensed factories, to the Kingdom’s efforts to enhance the competitiveness of the industrial environment, elevate the value of local content and support domestically manufactured products.

These initiatives fall under the National Industrial Development and Logistics Program and the Saudi Export Development Authority, which introduced the “Made in Saudi” program in 2021 to promote local talent and innovation.

The program seeks to boost the economy, position Saudi products internationally, and attract investments by supporting businesses locally and globally.

Businesses collaborating in this initiative can use the “Saudi Made” logo to enhance the country’s global image.

In alignment with Vision 2030, the initiative strives to build a diversified and sustainable Saudi economy, targeting an increase in non-oil exports to 50 percent of non-oil gross domestic product by 2030.

The ministry issued 2,202 licenses in the third quarter, including those granted as part of anti-concealment law enforcement, representing an 89 percent increase over the same period last year. 

The construction sector led in investment licenses with 654 licenses, a 170 percent increase, over the third quarter of last year.

On the other hand, the manufacturing sector bagged 360 licenses, reflecting a 94 percent increase. 

Professional, scientific, and technical activities saw a boost with 216 new licenses, a 93 percent increase, while the information and communication sector obtained 204 licenses, indicating a 115 percent increase.

Notably, public administration and support services witnessed the most substantial growth in investment licenses, with an increase of 294.3 percent.

Following closely, the electricity, gas, steam, and air conditioning sector saw a rise of 175 percent in granted licenses.

The construction sector also experienced a notable increase of 170 percent during this period.

According to MISA investment data, the third quarter closed 19 deals, with the education & training and culture sectors attracting the highest investor interest, each securing four agreements. 

China led in the origin of investments with five deals in the third quarter, followed by Japan with three in Saudi Arabia. The remaining deals were distributed among 12 other countries.