https://arab.news/p24ns
RIYADH: Dr. Faleh bin Abdullah Al-Saleh Al-Sulaiman has been appointed Govenor of the General Authority for Defense Development in the role of minister by a royal decree issued by King Salman, Saudi Press Agency reported on Tuesday.
The decree also set out that the appointment be communicated to the relevant authorities for approval and implementation.
The department was established in September during a Cabinet session, overseen by King Salman.
RIYADH: North East England is poised to receive a significant economic boost with investments worth £3 billion ($3.7 billion) from Saudi Arabia, as highlighted by the British deputy prime minister.
During the opening of the two-day GREAT Futures Initiative Conference in Riyadh on Tuesday, Oliver Dowden announced new figures, stating that this investment is expected to sustain approximately 2,000 jobs in the region.
Following virtual remarks from UK Prime Minister Rishi Sunak and Saudi Crown Prince Mohammed bin Salman, Dowden said: “Our collaboration has enabled an exponential increase in our mutual prosperity and demonstrated that our modern, forward-looking partnership can meet the challenges of the 21st Century.”
The event serves as the launchpad for a year-long campaign designed to highlight British expertise and capabilities in sectors that support Saudi Arabia’s Vision 2030.
Furthermore, the conference features a UK business delegation exceeding 450 members, representing the largest turnout in over 10 years.
A key highlight of the event is the fireside chat between Dowden and Saudi Commerce Minister Majid Al-Qasabi.
Dowden expressed optimism about the future of the UK-Saudi relations: “GREAT FUTURES will be an important moment for British business. We’re opening up our markets to one another so that investment, exports, tourism, and collaboration flow in both directions. Britain doesn’t just endorse Vision 2030, we want to be a part of it,” he stated in an official release.
Among the announcements, Dowden revealed that Saudi companies have raised £56.1 billion in London’s capital markets since 2022, with £10.3 billion classified as green and sustainable finance.
The prime minister also announced the first overseas expansion of the UK’s Office for Investment in the Gulf, a joint venture between 10 Downing Street and the Department for Business and Trade.
This expansion is aimed at connecting public and private expertise to facilitate capital flows and address potential barriers, enhancing the investment landscape between the two nations.
Today, the UK will also sign an updated memorandum of understanding with the Kingdom, renewing a joint commitment to further investment.
Strengthening cultural and educational ties, the University of Strathclyde will become the first English university to establish a physical presence in Saudi Arabia at the Princess Nourah bint Abdulrahman University.
Considered the largest institute for women globally, this new partnership will enable female students to study a broader range of subjects, including business and STEM.
Additionally, the UK and Saudi Arabia have agreed to establish an Education Task Force, chaired by Sir Steve Smith and Saudi Education Minister Yousef Al-Benyan, to promote further cooperation in higher education.
This initiative has already resulted in 40 partnerships being signed between the two nations.
As part of the ongoing dialogue and cooperation, Dowden is scheduled to visit the culturally significant city of AlUla to discuss sharing cultural expertise and collaborations.
Ministers accompanying the prime minister at the conference include the British secretary of state for business and trade, the secretary of state for culture, media and sport, the minister for investment, and the parliamentary undersecretary of state for health.
This visit coincides with the commencement of the 7th round of negotiations between the UK and the Gulf Cooperation Council on a modern and ambitious trade deal.
Building on a robust £59 billion trading relationship, this exchange could potentially add £1.6 billion to the UK economy, facilitating easier trade with all six Gulf countries, including Saudi Arabia, and enhancing mutual investment opportunities.
Key partners include British Airways, which plays a pivotal role in promoting the UK as a leading destination for business, tourism, and investment.
An additional lead partner, HSBC UK Bank Plc, brings its global financial expertise to support regional firms in achieving their growth ambitions.
Further partners include North Highland, a change and transformation consultancy, TAG, a content production agency and Innovo, an urban development firm.
SINGAPORE: Oil prices were little changed on Tuesday as investors eyed fresh drivers, including upcoming US inflation indicators and a monthly report from the Organization of the Petroleum Exporting Countries this week, according to Reuters.
Brent crude futures inched 4 cents higher to $83.40 a barrel at 6:15 a.m. Saudi time, while US West Texas Intermediate crude futures rose 5 cents to $79.17 a barrel.
The benchmark contracts settled higher on Monday on signs of improving demand in the US and China, world’s top two oil consumers.
“Oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming US inflation data keeping some reservations in place,” said Yeap Jun Rong, market strategist at IG.
Investors are watching the US Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates.
“Ahead, the OPEC monthly oil report will be in focus to provide any updates on global oil demand, with some eyes on whether the previous optimistic guidance around the summer travel season will continue to hold,” said Yeap.
The latest OPEC monthly oil market report is due to come later Tuesday, based on the organization’s website.
Meanwhile, the market is also watching wildfires in remote western Canada that could disrupt the country’s oil supply.
Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country’s oil sands industry.
No operational disruptions had been reported. But Alex Hodes, analyst at energy brokerage StoneX, said Canada’s 3.3 million barrel per day production capacity is “very likely to be affected.”
The market also continued to react to bullish comments from Iraq’s oil minister, Hayyan Abdul Ghani, over the weekend, according to a note from ANZ analysts.
Ghani said on Sunday that Iraq would honor voluntary output cuts made by OPEC+, which includes the Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers, at its upcoming meeting on June 1.
That reversed course from his Saturday comments that Iraq had made enough voluntary reductions and would not agree to any new output cuts.
KARACHI: Key ministers of the government, including Finance Minister Muhammad Aurangzeb this week vowed to ensure efficiency and sustainable growth in Pakistan’s public entities as Islamabad moves to privatize state-owned enterprises (SOEs) that have accumulated losses worth billions over the years.
Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda.
“The meeting concluded with a commitment to fostering transparency, efficiency, and sustainable growth within the State-Owned Enterprises, reflecting the government’s dedication to ensuring the optimal utilization of public resources,” the finance ministry said.
Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the ministry said.
“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”
The finance minister noted that there were gaps in the governance and financial management of some companies which needed to be addressed. He directed the vacancies on the Board of Directors (BoD) of some companies to be filled and for others to have their accounts audited.
“The Chairman emphasized that continued losses & fiscal haemorrhage had to be stopped as a national priority,” the finance ministry said. “Therefore SOEs restructuring & privatization agenda needed to be expedited in order to improve the efficiency of these entities.”
Prime Minister Shehbaz Sharif has assured the business community that the privatization process would be a transparent one and has warned the country’s bureaucracy that the government would not tolerate any delays in it.
RIYADH: Saudi Arabia’s Tadawul All Share Index wrapped up Monday’s trading session at 12,259.60 points, witnessing an increase of 42.55 points, or 0.35 percent.
Nomu, the parallel market, ended the day at 26,859.37 points, shedding 336.56 points or 1.24 percent. Concurrently, the MSCI Tadawul Index grew by 5.34 points to close at 1,535.83, a 0.35 percent increase.
TASI reported a trading volume of SR7 billion ($1.86 billion), with 85 stocks making gains and 134 witnessing declines.
Nomu, on the other hand, saw a trading volume of SR28 million.
On the announcements front, ADES reported a substantial revenue increase of 60.5 percent year on year to SR1.53 billion in the first quarter of 2024, fueled by significant contributions across its operational regions.
According to its financial results, the deployment of all 19 rigs for the Aramco megaproject beginning in March, up from only four in the same period last year, was a key driver.
Additionally, Kuwait’s operations generated SR152 million following the activation of all recently awarded contracts, achieving a total of 10 operational rigs, according to a bourse filing.
In India, the gradual deployment of three rigs contributed SR40 million.
The company’s net profit saw a remarkable surge of 124.6 percent year on year to SR200.9 million, benefiting from strong revenue performance and enhanced earnings before interest, taxes, depreciation, and amortization margins.
Abdullah Al Othaim Markets Co. also released its financial results for the first quarter of 2024, witnessing a 3 percent drop in profits despite an increase in revenue.
The company reported profits of SR116.4 million, down from SR120 million during the same period in 2023.
This decline was attributed to higher expenses linked to new branches, including a SR4.7 million increase in leasing finance costs, a SR2.3 million decrease in the performance of associate companies, and a SR4.8 million decrease in profits from Sharia-compliant liquidity investments.
Despite the decrease in profits, the company experienced a 9 percent growth in sales, bolstered by both existing and newly opened branches during the quarter.
Saudi Ground Services Co. also saw an increase in revenue with total earnings reaching SR653.2 million for the current quarter, marking a 15.8 percent rise from SR563.9 million recorded in the same quarter of the previous year.
This surge was primarily driven by an uptick in domestic and international flights and an increased number of Umrah pilgrims.
Consequently, the company’s net profit soared by 77.7 percent, amounting to SR71.2 million, compared to SR40 million in the prior year’s corresponding quarter.
The rise in profits was attributed to the significant revenue growth and effective cost management strategies, including a reduction in administrative expenses and a boost in other income.
Riyadh Cables Group Co. also closed the first quarter in green, with revenues leading to significant financial growth.
The company reported a profit increase to SR169 million in the first quarter of 2024, up 35.3 percent from SR124.8 million in the same quarter last year.
The company attributed this robust growth primarily to an increase in sales revenues and the volume of quantities sold, bolstered by a diversification of the products sold.
Moreover, the operating profit for the first quarter reached SR208.2 million, marking a 34 percent increase from SR155.5 million in the corresponding quarter of the previous year.
Saudi Arabian Mining Co., also known as Ma’aden, saw a significant increase in net profits despite a drop in revenue for the first quarter of 2024.
The company’s sales decreased to SR7.3 billion, a 9 percent drop compared to the same quarter of the previous year, primarily due to lower commodity prices across all products except gold and alumina.
However, this was partially offset by higher sales volumes of primary aluminum, ammonia, and gold.
Net profits surged by to reach SR981 million, a 134 percent increase compared to Q1 2023, largely attributed to a SR828 million, 52 percent, increase in gross profit.
This improvement was driven by higher sales volumes, reduced raw material costs, lower depreciation expenses, and a one-time insurance claim of SR199 million for relining pots within smelter plants.
RIYADH: Oman’s public debt stood at 15.1 billion Omani rials ($39.23 billion) by the end of March, marking a slight decrease from 15.3 billion rials at the close of 2023.
This update comes as the Ministry of Finance disbursed over 206 million rials in dues to the private sector through the financial system during the first quarter of the year, the Oman News Agency reported.
Recent developments in the public debt domain have been positive, according to ONA. This is thanks to continued government measures aimed at rationalizing spending, diversifying revenue sources, and directing additional revenues toward debt repayment.
These efforts, including the repurchasing of sovereign bonds, settling high-cost loans, and issuing local sukuk and bonds for trading on the Muscat Stock Exchange, have contributed to an improvement in Oman’s credit rating and future outlook, according to ONA.
International credit rating agencies have praised the government’s efforts in managing financial obligations and reducing the size of public debt, the agency reported.
However, the Ministry of Finance’s financial performance data for the first quarter indicated a 12 percent decrease in the state’s public revenues, primarily due to reductions in net oil and gas revenues.
By the end of March, revenues had amounted to around 2.8 billion rials, down from 3.2 billion rials in the same period of 2023.
Net oil revenues also saw a marginal 1 percent decrease, totaling 1.6 billion rials compared to 1.7 billion rials in the first quarter of last year.
Meanwhile, net gas revenues experienced a significant 38 percent decline, amounting to 444 million rials, down from 720 million rials in the corresponding period of 2023.
Public spending until the end of the first quarter of 2024 amounted to 2.6 billion rials, reflecting a decrease of 103 million rials, or 4 percent, compared to the actual spending during the same period of the previous year.
Similarly, current expenditures of civil ministries totaled about 1.97 billion rials, a decrease of 49 million rials compared to the first quarter of 2023.
Total contributions and other expenditures reached 486 million rials, marking a 78 percent increase compared to 273 million rials during the same period last year.
This increase is mainly attributed to the social protection system, with support for petroleum products of 72 million rials and 140 million rials, respectively.
