WASHINGTON: The White House said on Friday it is concerned about the impact of rising oil prices on US consumers but believes producers have ample ability to pump enough crude.
“Currently we believe that there is enough spare oil production capacity globally,” White House Press Secretary Jen Psaki told reporters. “Because of the restart of (the) global economy and resumption of normal consumer activity there is some impact on oil market conditions,” she said.
Psaki did not answer a question about whether anyone in the Biden administration had spoken with allies engaged in OPEC+ talks about whether to increase oil output.
OPEC+, a group of producers including Saudi Arabia and the United Arab Emirates, which are OPEC members, and Russia and other countries, extended talks on Friday about whether to ease production cuts that had been put in place earlier in the coronavirus pandemic.
The UAE blocked a deal, which could delay plans to pump more oil through the end of the year. Russia recommended delaying the talks by one or two days, sources said late on Friday.
US West Texas Intermediate crude futures were up 1 cent $75.34 a barrel, having jumped 2.4 percent on Thursday to close at their highest since October 2018.
In April, US Energy Secretary Jennifer Granholm said on Twitter that she had called on Saudi Arabia to keep energy affordable for consumers. After the call, OPEC+ agreed to gradually ease production cuts from May. The Department of Energy did not immediately respond to a request for comment on whether Granholm would repeat the call this time.
Psaki said President Joe Biden had opposed raising a gasoline tax in the infrastructure bill because of concern about consumers.
US crude production is about 11 million barrels per day. It peaked in January 2020 at nearly 13 million bpd.
White House worried about high oil prices; sees enough production capacity
https://arab.news/wjgkj
White House worried about high oil prices; sees enough production capacity
- Would not say if administration had spoken with allies from OPEC+
Egypt sees 30.2% surge in foreigners acquiring work licenses in 2023
RIYADH: Egypt’s private and investment sector experienced an annual increase of 30.2 percent in the number of foreigners acquiring work licenses in 2023.
Data from the Central Agency for Public Mobilization and Statistics revealed a significant surge in the total count of foreign nationals granted licenses, reaching 17,357 individuals, a leap from the previous year’s 13,331.
Of these permits, 7,973 were issued for the first time in 2023, constituting a significant portion of the total influx at 45.9 percent.
GCC healthcare sector to reach $135bn by 2027: JLL
RIYADH: The value of the healthcare sector in the Gulf Cooperation region is projected to reach $135 billion by 2027 driven by rising investor confidence, an analysis showed.
In its latest report, real estate and investment management firm JLL noted that investors are increasingly becoming more optimistic about the healthcare market in the region as Gulf states push for the transformation of the sector in line with their economic diversification plans.
The study also pointed out that regional governments are pushing for increased localization to attain self-sustainability in the healthcare sector, a crucial factor that elevates investor confidence.
Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, said that sector spending within GCC alone is poised to reach $124 billion in 2028.
“Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector with infrastructure development, clinical capabilities, human capital development, digital transformation, and establishment of healthcare innovation hubs,” said Sinha.
He added: “This has attracted more private equity companies and witnessed an increase in active deal-making, further positioning the region as a key healthcare player on the global stage.”
According to the analysis, more regional players in the GCC’s healthcare landscape are acquiring local companies or international brands to build their portfolios and transform their business models.
In April, an additional report released by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC region reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2023 to hit $118.6 billion.
According to that release, the rising adoption of digital health technologies, the increase in sedentary lifestyles, and the escalating aging population are factors propelling the market.
Earlier in May, Adeel Kheiri, a partner in Oliver Wyman’s India, Middle East, and Africa health and life sciences practice, told Arab News that Saudi Arabia’s bold healthcare reforms promise valuable lessons for the region and beyond.
He added that the Kingdom has embarked on a journey to prioritize the health and well-being of its citizens, laying a robust foundation for progress.
“Saudi Arabia’s ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA region and beyond,” said Kheiri.
Moreover, in May, at the GREAT Futures Conference in Riyadh, experts from Saudi Arabia and the UK said that implementing advanced technologies like artificial intelligence will reshape the Kingdom’s healthcare sector.
Saudi Arabia predicted to lead IPO drive in MENA: report
RIYADH: Saudi Arabia will lead the initial public offerings in the Middle East and North Africa region in 2024, with 27 companies eyeing to list on the Kingdom’s main market, an analysis showed.
In its latest report, Dubai International Financial Center, in association with the London Stock Exchange Group, said that the IPO pipeline in the MENA region seems promising this year, as several companies postponed their listings from 2023 to early and mid-2024 in anticipation of more favorable market conditions.
“Deals will be driven mainly by Saudi Arabia, where 27 companies have expressed intent to list on the Saudi Exchange (Tadawul), in addition to expected follow-on issuances from Aramco and Savola,” said DIFC.
It added: “Meanwhile, the IPO pipeline in the UAE includes listings from Parkin, Lulu Group and Tabby.”
According to the report, the privatization of government-backed entities is resulting in greater economic diversification, private sector development and sovereign liquidity creation in the MENA region.
“Driven by the rise in IPOs, capital markets across the MENA region have seen significant growth, with reforms dedicated to improving market infrastructure, attracting even greater foreign investment flows,” said Arif Amiri, CEO of DIFC Authority.
In the report, Nadim Najjar, managing director for Central, Eastern Europe, Middle East and Africa at LSEG, said that the MENA IPO market witnessed a surge in 2022, driven by privatization programs in the UAE and Saudi Arabia amid market challenges.
“The growing trend of both public and private enterprises looking to list publicly has spurred global investment banks to broaden their advisory and underwriting services in the emirate. These emerging investment prospects are consequently drawing a wave of private capital, accompanied by wealth and asset managers to oversee these investments,” said Najjar.
According to the analysis, IPO activity in 2024 will depend largely on global economic stability and a positive track record for recent post-IPO performances.
The report added that improved economic conditions would boost optimism that there will be a revival in the market in 2024, while other variables such as interest rates and market volatility will have a greater influence on market sentiment later in the year.
DIFC further pointed out that the debt market in the MENA region will follow the global trend, and will grow at a marginal pace this year as interest rates remain high, along with high costs of refinancing.
“Interest rates will be the main determinant of debt issuance growth in 2024, with major central banks approaching the end of their rate hike cycles. However, interest rates will likely remain elevated for longer than markets have been anticipating, thereby keeping markets subdued throughout the year,” said DIFC.
According to the study, governments will continue to drive issuance in the region to cover expected budget deficits from lower oil prices, to refinance maturing debt, and to fund major development projects.
However, corporate debt issuance is expected to slow as the cost of borrowing remains high.
Saudi tech firm MIS invests $1m in Elon Musk’s AI venture, xAI Corp.
RIYADH: Saudi tech firm Al-Moammar Information Systems Co. plans to invest $1 million in a controlling stake in Elon Musk’s artificial intelligence company, xAI Corp., according to Al-Ekhbairya.
The Saudi company clarified that this investment constitutes a portion of xAI’s Series B funding round, with a pre-money valuation of $18 billion.
As per its website, Musk’s xAI is focused on developing AI to accelerate human scientific discovery.
“We are guided by our mission to advance our collective understanding of the universe,” it says.
Al-Ekhbariya reported that in January, MIS’s board of directors approved the allocation of SR40 million ($10.6 million) to establish an investment portfolio through self-financing in global AI companies, aiming to capitalize on growth opportunities in this promising sector.
Additionally, MIS has achieved the Cisco Master Security Specialization in Saudi Arabia, showcasing its capacity to deliver advanced, value-added Cisco solutions through its comprehensive sales expertise, technical skills, and service offerings.
In recognition of this achievement, the company is set to be listed as a holder of the Cisco Master Security Specialization in the Cisco Partner Locator.
Under the title “Understand the Universe,” Musk, CEO of Tesla and SpaceX, aims to advance the sector following the introduction of major initiatives such as AlphaStar, AlphaCode and Inception as well as Minerva, GPT-3.5, and GPT-4.
The tech firm, launched in July 2023 to rival existing AI models, works closely with X Corp to deliver its technology to over 500 million users of the X app, formerly Twitter.
Saudi Arabia continues to invest in the tech sector, aiming for sustainable global development by playing a pivotal role in AI.
At the third G7 finance ministers’ meeting under the Italian presidency in Stresa, Italy, Saudi Finance Minister Mohammed Al-Jadaan highlighted the Kingdom’s dedication to advancing AI technology for inclusive growth.
This effort aligns with Saudi Arabia’s National Strategy for Data and AI, which seeks to establish the Kingdom as a global tech leader by 2030.
Moreover, the minister took part in a session titled “Addressing Financing Needs of Vulnerable Countries,” emphasizing the potential of a proposed multidimensional approach to managing debt vulnerabilities.
Saudi Arabia begins sale of triple-tranche sukuk
RIYADH: Saudi Arabia has started selling its triple-tranche benchmark-sized Islamic bonds, or sukuk, with tenors of 3, 6 and 10 years, fixed-income news service IFR reported on Tuesday.
Initial guidance has been placed around 85 basis points over US Treasuries for the three-year sukuk, 100 bps over UST for the 6-year portion, and 110 bps for the 10-year tranche, said IFR.
Benchmark-sized is typically understood to mean at least $500 million. Pricing is expected on Tuesday.
The Kingdom is facing a projected budget deficit of SR79 billion this year amid lower oil revenue mainly due to voluntary output cuts as per OPEC+ policy, and increased spending to bolster non-oil growth and meet objectives of its Vision 2030 economic transformation plan.
On Friday, ratings agency Moody’s upgraded Saudi Arabia's local and foreign currency rating to Aa1 from Aa2, citing increased predictability of the government’s decision-making processes affecting the private sector.
BNP Paribas, Citi and Goldman Sachs International have been appointed as global coordinators and joint book-runners to manage the debt sale.
Aljazira Capital, HSBC Bank, JPMorgan and Standard Chartered have been selected as the passive joint lead managers and book-runners on the offering, IFR said.
Saudi Arabia’s last bond issue in January saw the Kingdom issue dollar-denominated bonds worth $12 billion.
