BENGALURU: US investment bank Goldman Sachs said the OPEC+ deal to boost oil supply supports its view on oil prices and expects modest “upside” to its summer forecast for Brent to reach $80 a barrel.
OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and other producers, agreed on Sunday to boost oil supply from August to cool prices which have climbed to 2-1/2 year highs.
“The agreement had two distinct points of focus: a moderate increase in production which will keep the market in deficit in the coming months, as well as guidance for higher capacity which will be needed in coming years given growing under-investment,” Goldman Sachs said in a note.
Goldman said the deal is in line with its view that “OPEC should focus on maintaining a tight physical market all the while guiding for higher future capacity and disincentivizing competing investments.”
The OPEC+ deal represents $2 per barrel “upside” to its $80 per barrel summer Brent price forecast and a $5 upside to its $75 per barrel forecast for next year, Goldman said.
However, Goldman expects oil prices to gyrate in the coming weeks due to the risks from the Delta variant and the slower velocity of supply developments relative to recent mobility gains.
With most of its expected summer demand gains already achieved and with growing headwinds from the Delta COVID-19 variant, Goldman said the catalyst for the next leg higher in prices is shifting from the demand to the supply side, with upside risks to price forecasts in the coming months.
Oil prices fell more than $1 a barrel on Monday, after the OPEC+ group of producers overcame internal divisions and agreed to boost output, sparking concerns over a supply glut amid a surge in COVID-19 cases.
Goldman Sachs sees ‘upside’ to oil price forecasts from OPEC+ supply deal
Goldman Sachs sees ‘upside’ to oil price forecasts from OPEC+ supply deal
Saudi-UK economic symphony hits high note with Vision 2030, Lord Mayor of City of London tells Arab News
- Michael Mainelli: ‘With the amazing changes under Vision 2030, we’re anticipating yet more investment both ways’
RIYADH: Business and investment between Saudi Arabia and the UK are flourishing under the “amazing” Vision 2030 reform plan, with expectations for further collaborations on the horizon, the Lord Mayor of the City of London told Arab News in Riyadh.
Michael Mainelli said of the business and investment connections between Saudi Arabia and the City of London: “The Gulf is our fourth-largest trading partner with about £65 billion ($81.47 billion) in trade every year, and Saudi is the largest chunk of that to well over £17 billion, so trade is very good.”
Saudi investment in the City of London has always been “very, very strong, and British investment in Saudi has also been strong. I don’t think there’s anything other than growth, and with the amazing changes under Vision 2030, we’re anticipating yet more investment both ways,” he added.
“The great thing about Vision 2030 is that it’s almost like a pyramid, with the entire nation working together towards a whole series of goals.”
The UK is “the world’s premier professional financial services sector, so there will always be opportunities for us to collaborate with Saudi Arabia” in this field, Mainelli said. “I think less appreciated is our recognition of Saudi intellect.”
He said he is “trying to make connections” in Riyadh, adding that Saudi academia, science, technology and research “are growing very well.”
Mainelli outlined three main avenues of Saudi investment in the City of London: property development, operational businesses, and science and technology. He added that Saudis are also investing in areas such as media distribution and packaging.
“I’m looking forward to a tremendous amount of Saudi investment in science and technology, particularly in areas like hydrogen, where Saudi Arabia is very strong, as well as in desalination and biotech,” he said.
Emphasizing initiatives aimed at bolstering economic cooperation between Saudi Arabia and the UK, he said: “The British government is hosting a two-day conference here in Riyadh from May 14 to 15. We’re bringing over about 400 to 500 British firms to look at areas where they’re looking at technology.
“Equally, in June we have our Net Zero Delivery Summit, where Saudi Arabia will be present, and on June 24 the UK-Saudi infrastructure meeting, where we’ll discuss infrastructure projects both ways.”
Providing insight on how the UK can further strengthen economic relations with Saudi Arabia, especially after having left the EU, Mainelli said: “The Brexit vote was over eight years ago, and in the City of London we’ve grown from 525,000 workers to 615,000 workers — a net gain of 90,000.
“Also, assets under management globally have increased from just over 12 percent to about 15 percent of global assets. So the City of London has been doing very well post-Brexit.”
Mainelli highlighted the value of conferences such as the World Economic Forum in Riyadh, which he attended, as catalysts for business deals, often beginning with conversations between individuals.
“It’s great to have this event. It focuses very much on cooperation, particularly in the energy sphere, which is fundamental to economic growth,” he said.
“Britain is a petrostate in its own right, not as strong as Saudi Arabia. Both countries have to work on what’s their energy transition going to be in a net zero world.”
Besides geopolitical tensions, trade restrictions pose significant barriers to global collaboration, Mainelli said.
“These are present in both goods and services, particularly in professional services, and the way to address them … is through standards. These are ISO (International Organization for Standardization) standards, which I’m promoting for artificial intelligence and space sustainability, for example,” he added.
“These are mutual recognition standards for professionals working, so a Saudi accountant could work in Britain and vice versa, and similarly for lawyers etc.
“The third area concerns governance standards and how organizations are managed. So I believe probably the biggest thing to constantly work at is standards.”
Mainelli stressed the need to address geopolitical tensions, “but as a business community we’re not deeply involved in those negotiations, decisions or military actions, so it’s important for us to understand how we should be reacting to and how we can support peace through trade.”
Global ‘Center for Space Futures’ announced at World Economic Forum
- The center aims to facilitate public-private discussions on space collaboration, incorporating best practices from the WEF and its communities into the global space sector
RIYADH: The World Economic Forum and the Saudi Space Agency signed an agreement to establish the Center for Space Futures, a Centre for the Fourth Industrial Revolution.
Hosted by the SSA, the center is expected to open later this year and will be the first in the C4IR network to focus exclusively on space. It will operate alongside the existing national center, C4IR Saudi Arabia, to advance Saudi Vision 2030.
Jeremy Jurgens, the WEF managing director, told Arab News: “Historically, many people assume that space is the exclusive domain of a few countries that have a fully integrated space technology stack. What we’ve seen over the last few years is that space is something that should be available to the whole globe.
“By launching the Center for Space Futures here in Saudi Arabia, we’re actually demonstrating that space is something for all humanity, and that we can actually unlock those benefits and use them anywhere and everywhere.”
The center aims to facilitate public-private discussions on space collaboration, incorporating best practices from the WEF and its communities into the global space sector, and generating contributions to accelerate space technologies.
Dr. Mohammed Al-Tamimi, CEO of the SSA, told Arab News: “This center is part of a global platform that will engage everyone to make sure that we’ll be activating public and private discussions, especially in this era.” As the world experiences a shift from a government-centered space sector to a private-centric sector, Al-Tamimi said that the center offers “great potential to collaborate and engage more with the private sector and government initiatives.”
The officials said they are committed to harnessing the vast opportunities of the space industry and creating a sustainable economy globally through best practices, governance, policies, innovation and valuable technologies to encourage further cross-sector engagement.
Mishaal Ashemimry, managing director of the Center for Space Futures, told Arab News: “Space generally has seen no boundaries when it comes to development, and you need the input of international countries with their expertise, their backgrounds, their achievements in space, to work together, whether it’s towards a mission or achieving governance policies … Space cannot move forward without international collaboration.”
The center will join 19 others that make up the C4IR network, a platform for multistakeholder collaboration, bringing together public and private sectors to maximize technological benefits to society while minimizing the risks.
The WEF launched the first C4IR in San Francisco in 2017, followed soon after by others in Japan and India. The network now includes the Centre for Trustworthy Technology, in Austin, the US Centre for Advanced Manufacturing, in Detroit, Germany’s Global Government Technology Centre, Norway’s HUB Ocean, and others in Rwanda, Saudi Arabia, Serbia, South Africa, India, Turkiye and the UAE.
Saudi Arabia likely to meet tourism targets ahead of 2030, says top official
RIYADH: Based on Saudi Arabia’s extraordinary achievements in the tourism sector, the Kingdom is likely to achieve its targets ahead of 2030, said a top tourism official.
During a panel at the Future Hospitality Summit held in Riyadh, Gloria Manzo, chief special adviser at the Ministry of Tourism, likened Saudi Arabia’s approach toward the development of the sector to the private sector with clear goals with key performance indicators reviewed quarterly.
She added: “We have goals, we have quarterly meetings that review our KPIs quarterly. You better be on the plan and if not, you have to explain why, so most likely it will achieve those numbers, before 2030. Absolutely!.”
Manzo noted that increasing the target indicates that Saudi Arabia is progressing faster than expected, which reflects a positive momentum in achieving tourism goals.
She said for Saudi Arabia “the sky is the limit.” The development process in the Kingdom, she added, is supported by unprecedented levels of government investment.
“What the government is doing in this country, there’s no other example in the world. I have never seen something like this in my 30 years of career,” the official said.
She also highlighted challenges facing the tourism sector such as geopolitical issues and weather-related crises, which can disrupt operations.
The official identified the development of human resources for the sector as a challenge for which the government is taking several measures.
“We wish we could do that faster. The ministry is training Saudis abroad. We announced a (training) academy. We’re partnering with universities here. That is very important, but it will be wonderful if we can train them faster. The private sector is also helping us to train these Saudis,” she said.
Manzo also expressed optimism about more Saudi women joining the tourism industry.
The official said interestingly the Saudi government “moves faster than the private sector” unlike any other country in the world where the latter tends to act quicker. She said small and medium enterprises require more support to keep pace with the ongoing development in the sector.
“I would say the SMEs need more support, and of course, we wish we can support them so that they can accelerate in this transition,” Manzo added.
“We’re working with them. We have a plan and the ecosystem is very structured,” the tourism official said.
Saudi chemicals giant SABIC targeting net zero by 2050, CEO says
- SABIC aims to convert 1 million tons of waste into feedstock for the petrochemical industry by 2030, Al-Fageeh said
RIYADH: Saudi Arabia’s top chemicals company is turning to circular economy solutions to reach carbon neutrality by 2050 and advance the Kingdom’s net-zero agenda, its CEO has said.
Abdulrahman Al-Fageeh, CEO of the Saudi Basic Industries Corporation, was speaking at the “Demand for Energy ... Transforming Costs into Gains” panel during the special meeting of the World Economic Forum in Riyadh.
SABIC aims to convert 1 million tons of waste into feedstock for the petrochemical industry by 2030, he said.
The circular carbon economy has helped the chemicals sector expand its investment horizon since 2020, he added.
Al-Fageeh said that SABIC marked achievements in energy efficiency and reduced its carbon footprint at the end of 2023 by 12.74 percent. The company is targeting carbon neutrality by 2050.
SABIC has also adopted alternative energy from plastic waste, seeking to produce 1 million tons of sustainably sourced chemicals by 2030.
Energy efficiency
Al-Fageeh said that his company had started sustainability programs at an early stage, improved reliability, developed 90 initiatives and projects, and closed a number of sites due to ineffectiveness.
In 2023, SABIC had more than 200 patents, 40 percent of which related to sustainability in energy efficiency.
Concierge robots set to become reality in the hospitality sector
RIYADH: A personal robot concierge is set to become a reality as a new wave of technological innovation takes the spotlight during the Future Hospitality Summit in Riyadh.
In an interview with Arab News during the event, Janet Adams, chief operating officer of global artificial intelligence company SingularityNET, shared details about a new humanoid robot expected to revolutionize the hospitality sector.
“One of our projects which we are pioneering right now is the development of a new class of humanoid robots specifically designed for the service industries,” Adam told Arab News.
“Imagine going to stay in a hotel where you’ve connected with your robot before you go there. They know everything you want. They can greet you at the door because you’ve been chatting as an avatar,” she said.
“And then after you leave, they can stay in touch with you and they can be like a loyalty ambassador, robotic avatar, friend for life who understands your needs, who understands what you enjoy, who makes everything perfect for you in your stay in the hospitality industry,” Adams added.
She further explained that the development, known as the Mind Children project, will roll out its pilot in early 2025.
Furthermore, Adams shared that the company is working on a new breed of technological advancement for AI in language models in the Middle East.
The company is working with Zarqa, a Middle Eastern AI firm part of SingularityNET’s ecosystem, to significantly improve AI language models.
“What we’re doing is we’re taking the best of today’s large language model technology, and we’re infusing it with the best of tomorrow’s artificial general intelligence technology, because we’re leaders in the field of artificial general intelligence,” Adams explained.
“And sometime within the next 12 to 24 months, we expect to see enormous breakthroughs where the limitations of today’s language models are overcome, where we can bring human level reasoning or human style reasoning into our robots and therefore give them the capability to be creative, to understand their environment, to really, truly contribute as a, for example, to hospitality services,” she added.
During the event, SingularityNET also showcased Desdemona, a humanoid robot and the lead vocalist of the Jam Galaxy Band.
“She runs up a huge array of advanced artificial intelligence models. She’s working with vision, with speech processing. We work with toxicity filters. We work with emotion recognition, facial recognition. We have a variety of AI models, including Markov decision-making and generative adversarial networks,” she explained.
“And a bunch of the most advanced AI that’s available on the planet. Together. All work together in this, in what looks like a seamless operation of multiple modules working together. She’s truly a highly advanced miracle of modern AI,” Adams added.
