Saudi ports record 13% growth in container handling: Mawani 

In March, Saudi Arabia’s general shipment volumes reached 804,837 tonnes. Shutterstock
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Updated 09 April 2024
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Saudi ports record 13% growth in container handling: Mawani 

RIYADH: Ports in Saudi Arabia recorded a 12.48 percent increase in the number of received containers in March compared to the same period last year, official data showed. 

The Saudi Ports Authority, also known as Mawani, disclosed that terminals in the Kingdom received 265,148 standard containers in the third month of 2024, marking an annual increase from 235,738.

Furthermore, the maritime facilities experienced a 3.77 percent uptick in the volume of handled tonnage, reaching 19.64 million tonnes, in contrast to 18.93 million tonnes recorded in March 2023.  

“This reflects the scale of efforts made to develop port infrastructure and provide the highest levels of logistics services,” Mawani stated in a statement.  

The Kingdom’s general shipment volumes reached 804,837 tonnes, solid bulk cargo reached 3.94 million tonnes, and liquid bulk freight reached 14.74 million tonnes.   

The container handling operations saw a decrease of 9.85 percent, totaling 561,484 containers compared to 622,856 containers in the previous year. 

Furthermore, the harbors recorded a discharge rate of 961,131 of livestock, indicating a 54.12 percent increase compared to the 623,644 recorded during the corresponding period in 2023.  

However, maritime traffic witnessed a 3.01 percent decrease, totaling 968 ships compared to 998 in 2023.

Similarly, the number of passengers decreased by 51.01 percent to 62,507, compared to the 127,599 recorded last year.  

Vehicles also decreased by 17.34 percent to 67,638 compared to 81,826 in 2023.  

Additionally, outgoing containers increased 8.56 percent to 212,672 compared to 195,895 last year. 

According to a report from the UN Conference on Trade and Development, Mawani climbed from 76.16 points in the second quarter of 2023 to 77.66 points in the third quarter of last year, affirming the Kingdom’s progress in the maritime sector.  

In 2023, Saudi Arabia climbed 17 global ranks in the Logistics Performance Index issued by the World Bank to reach the 38th spot globally.


Deals worth $28bn across various sectors expected at FII8, says Attias

Updated 19 sec ago
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Deals worth $28bn across various sectors expected at FII8, says Attias

RIYADH: Deals worth $28 billion are expected to be announced at this year’s Future Investment Initiative, said FII Institute CEO Richard Attias.

He was speaking at a press conference held in Riyadh on Tuesday to announce details about the eighth edition of the conference.

Attias said the event will bring together entrepreneurs and startups from around the world and serve as a bridge of communication between them.

The summit is committed to fostering positive change through effective solutions across various domains, including global connectivity, mining, AI, health-tech, sports, circular economy, food, economies of the future, art, culture, and other key areas.


Saudi Arabia, Italy enhance mining ties through investment talks

Updated 23 min 48 sec ago
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Saudi Arabia, Italy enhance mining ties through investment talks

  • Official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy

JEDDAH: Saudi-Italian mining relations are set to strengthen following meetings between senior officials in Rome focused on sustainable solutions, clean energy, and attracting investment to the Kingdom’s expanding exploration sector. 

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef commenced his three-day visit on Oct. 14, meeting with Italy’s Minister of Environment and Energy Security Gilberto Pichetto Fratin. 

The meeting, attended by Prince Faisal bin Sattam bin Abdulaziz, Saudi ambassador to Italy, and Saleh Al-Sulami, CEO of the National Industrial Development Center, emphasized the importance of collaborative development and the strategic partnership between the two nations across various sectors, the Saudi Press Agency reported. 

The official trip aims to bolster industrial and mining cooperation and explore joint opportunities aligned with the Kingdom’s National Industrial Strategy. 

This comes on the back of Saudi Arabia’s increasing non-oil exports to Italy, which reached SR2.8 billion ($747 million) in 2023, while total non-oil imports from Italy amounted to SR21.8 billion. 

In a post on his X account, Alkhorayef said: “At the beginning of my visit to Italy, I met the minister of environment and energy security, and we talked about the important partnership between Saudi Arabia and Italy in various sectors.” 

He underscored the “mutual desire” to strengthen collaboration for the benefit of both countries. 

During the talks, Alkhorayef outlined the promising prospects within the Kingdom’s mining sector, detailing all stages from exploration to processing. He highlighted Saudi Arabia’s untapped mineral resources, estimated at approximately $2.5 trillion, and emphasized the availability of 80 years’ worth of geological data to support informed investment decisions. 

The minister also explored opportunities to enhance collaboration, share expertise, and attract joint investments in renewable energy, stressing the need for improved supply chain integration to meet local, regional, and global demands. He encouraged Italian companies to expand their operations in the Kingdom, urging the private sector to leverage significant developmental projects. 

Alkhorayef extended an invitation to Fratin to attend the International Mining Conference in Riyadh in early 2025, anticipating substantial participation from Italy given its crucial role in the global mining sector. 

The Italian Ministry of Environment and Energy Security expressed its commitment to supporting the transition to a low-carbon economy while promoting sustainable mineral resource management, SPA reported. 

On the same day, Alkhorayef engaged in bilateral meetings with major Italian and global companies, focusing on localizing electric vehicle manufacturing opportunities, enhancing cooperation in the aviation and shipbuilding sectors, and exploring smart manufacturing solutions. 

Discussions highlighted the unique opportunities presented by 12 strategic sectors central to the National Industrial Strategy and incentives designed to attract global investors, facilitating value creation for the national economy. 

In his meeting with the founder and CEO of Swiss electric vehicle manufacturer Piech, Alkhorayef discussed the potential for transferring advanced automotive manufacturing technologies to the Kingdom. 

He emphasized the country’s commitment to nationalizing this industry, referencing the Lucid project, which aims to produce 155,000 electric vehicles annually by 2027, and the Ceer company, targeting 170,000 vehicles by 2034. 

The minister outlined Arabian Tiger Holding Co.’s plans to localize aviation manufacturing technologies in the Kingdom during discussions with its CEO, focusing on establishing a facility for aircraft component production after acquiring Piaggio Aerospace, a leader in commercial and drone aircraft. 

Alkhorayef also met with officials from Fincantieri, an Italian shipbuilding firm, to explore collaboration in the maritime industry, addressing all stages of the value chain from design to delivery. 

In a meeting with the international market director at AlmavivA, he discussed the latest automation solutions for industrial facilities aimed at enhancing productivity and promoting smart manufacturing cooperation between the Kingdom and Italy, with a particular focus on integrating robotics into manufacturing processes. 

Alkhorayef also engaged in talks with Yousef Al-Mimni, vice chairman of the Saudi-Italian Business Council, commending the Council’s role in strengthening trade and economic ties between the Kingdom and Italy. 

He encouraged Italian private sector companies to invest in promising sectors in Saudi Arabia, particularly in industrial and mining. 


Saudi-South African Business Forum sees $25m credit agreement signed to help exporters 

Updated 30 min 23 sec ago
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Saudi-South African Business Forum sees $25m credit agreement signed to help exporters 

RIYADH: A $25 million credit agreement involving the Saudi Export-Import Bank and a major South African financial institution was among the deals struck at a special business forum in Johannesburg.  

The arrangement with Standard Bank Group will see companies in the Kingdom given extra funding support to trade with the African country.  

The deal was signed during the Saudi-South African Business Forum, which saw 420 business leaders and officials discuss how to boost economic ties between the nations – with an emphasis on the mining sector, the Saudi Press Agency reported.   

Bloomberg cited Naif Al-Shammari, Saudi EXIM’s deputy CEO, as saying that the agreement with Standard Bank Group will bolster trade links between the two countries.  

Another memorandum of cooperation was signed between the Saudi Export Development Authority and Skytower Development Co.  

Commerce between Saudi Arabia and South Africa was estimated at about $3.5 billion in 2023. The Kingdom also ranks first among South Africa’s trading partners in the region.   

The high-level Saudi delegation attending the forum was led by the Minister of Commerce and Chairman of the National Competitiveness Center, Majid bin Abdullah Al-Qasabi, and was organized by the NCC in collaboration with the Federation of Saudi Chambers and the South African Ministry of Trade and Industry, according to SPA.  

One panel at the event addressed cooperation in the mining sector, while the another discussed expanding the economic partnership between the Kingdom and South Africa in light of promising opportunities.   

It also introduced the mechanisms used by relevant authorities to resolve challenges facing the business sector.   

The forum also falls in line with the Kingdom’s commitment to strengthening its trade and economic relations with the African continent, which was announced by the Crown Prince and Prime Minister of Saudi Arabia at the Saudi-African Summit held in Riyadh last November.

The gathering included a presentation on the key reforms implemented to enhance the Kingdom’s competitiveness, delivered by the Vice Minister of Commerce and NCC CEO Iman bint Habas Al-Mutairi.  

Al-Mutairi reviewed the positive outcomes witnessed in Saudi Arabia’s economy and business environment, such as implementing more than 820 economic reforms carried out by 65 government entities since 2016 across nine key sectors. 

About 1,200 regulations and laws have been issued or updated, boosting the legal framework and contributing to making the Kingdom’s business environment one of the leading global destinations for companies and entrepreneurs.

She further underlined that Saudi Arabia allows 100 percent of foreign ownership in most business sectors and has established the Saudi Business Center, which has helped re-engineer procedures for starting and operating enterprises, reducing licensing requirements by 55 percent.  

During the visit, Al-Qasabi participated in the inauguration of the operations center of SMSA Express in South Africa, which will contribute to providing logistical solutions for the business sectors in the two countries.

He also held discussions with several South African ministers, including Parks Tau of trade, industry, and competition; Stella Ndabeni-Abrahams of small business development; Patricia de Lille of tourism; and John Steenhuisen of agriculture.  

Key topics included ways to strengthen trade relations, promising business opportunities in both countries, facilitating trade in goods and services, and South African companies’ participation in the Biban24 forum. 

The meetings also addressed initiatives aimed at supporting and empowering small-and medium-sized enterprises and proposed collaboration in areas of common interest.


Egypt’s external debt drops to $152.9bn by end of June

Updated 15 October 2024
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Egypt’s external debt drops to $152.9bn by end of June

  • Long-term external debt decrease to $126.9 billion by the end of June
  • External debt decreased to $80.2 billion from $84.8 billion in December

RIYADH: Egypt’s external debt decreased to $152.9 billion by the end of June, a significant reduction from $160.6 billion at the end of March and $168 billion at the close of December 2023, official data showed. 

The country, which has a fiscal year running from July 1 to June 30, saw long-term external debt decrease to $126.9 billion by the end of June, down from $138.6 billion the previous year. Short-term debt also dropped to $26.02 billion, compared to $29.5 billion before, according to the Central Bank of Egypt. 

The Egyptian government’s external debt decreased to $80.2 billion from $84.8 billion in December. The CBE’s own debt also saw a significant reduction, falling to $34.67 billion from $45.3 billion at the end of 2023. However, debt owed by Egyptian banks rose slightly to $20.67 billion by the end of June, up from $20.1 billion at the close of last year. 

The overall decline in external debt highlights the Egyptian government’s ongoing efforts to manage its financial obligations amid a challenging global economic environment. 

The country’s economic challenges, including inflation and fiscal deficits, have necessitated a careful balance between managing external obligations and sustaining growth. 

The reduction in overall external debt is viewed as a positive signal to international markets and may bolster future creditworthiness, particularly as Egypt seeks international assistance and investment.

In a push to further boost the country’s economic growth, Prime Minister Mostafa Madbouly stated that the government is aiming to offer several airports and banks to the private sector soon.

In an official meeting on Oct. 14, Madbouly emphasized the government’s commitment to its privatization program, underlining that significant announcements will be made in the near future as part of the initiative, which is being implemented in cooperation with the International Finance Corp.

The meeting of the Coordinating Council for Monetary and Financial Policies, which included CBE Governor Hassan Abdalla, focused on strategies to stabilize the economy amid regional conflicts. 

Abdalla highlighted the success of efforts to stabilize the exchange rate of the US dollar, supported by steady remittances from Egyptians abroad. 

The council also reviewed initiatives aimed at encouraging further remittances, including the successful “Beit Al-Watan” program, which has contributed to a stable inflow of foreign currency into the banking system. 

According to the report released by the Central Agency for Public Mobilization and Statistics in September, Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion due to falling prices for wheat and other commodities. Imports fell by 3.3 percent to $6 billion during the month. 

The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent. 

This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values.

In its fiscal year for 2023/24, Egypt achieved a primary budget surplus of 6.1 percent, bolstered by a landmark sale of coastal land to the UAE, said the country’s finance minister. 

At a press conference in August, Ahmed Kouchouk disclosed that Egypt’s total expenditure amounted to 3.016 trillion Egyptian pounds ($61.3 billion), with a budget deficit of 3.6 percent. 

In February, the UAE, through a consortium led by Abu Dhabi’s sovereign wealth fund ADQ, signed an agreement to invest $35 billion in Ras El-Hekma, a Mediterranean region 350 km. northwest of Cairo. This deal represents the largest foreign direct investment in Egypt’s history. 

The minister highlighted that no new taxes were imposed last year, and tax revenues increased by 30 percent year on year for the financial year 2023/24. 

This aligns with the International Monetary Fund’s objective for Egypt to boost tax revenue in its 2025/26 budget. 


Saudi Arabia’s global pension index score rises amid ongoing reforms: Mercer 

Updated 50 min 34 sec ago
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Saudi Arabia’s global pension index score rises amid ongoing reforms: Mercer 

RIYADH: Saudi Arabia’s Global Pension Index score improved to 60.5 in 2024, up from 59.5 last year, driven by ongoing reforms, a new analysis showed. 

According to the latest Mercer CFA Institute Global Pension Index, the Kingdom’s pension system rating upgraded to C+ from C, placing it alongside the US, the UAE, and Spain. 

The index defines C+ as a system with good features but significant risks that need addressing.

Saudi Arabia’s retirement system includes an earnings-based pension and lump-sum award – while those who do not qualify for monthly payouts receive just the one-off benefit.

In July, the Kingdom raised the retirement age from 60 to 65 for both public and private sector employees, as part of a key Vision 2030 reform aimed at ensuring sustainability and improving retirees’ living conditions. 

The reform also raised the required contribution period for early retirement from 25 to 30 years, a move aimed at encouraging longer workforce participation, thereby reducing the financial strain on the pension system. 

Tarek Lotfy, president of Mercer in India, the Middle East and Africa, said: “Saudi Arabia continues to make steady progress in reforming and enhancing its pension system and stands to benefit as more private pension options are provided to complement existing retirement programs.” 

He added: “As these reforms are rolled-out, they will provide an important tool to retain talent in the Kingdom’s buoyant job market and support the wider aims of the Vision 2030 strategy by contributing to the financial well-being of its citizens.” 

Saudi Arabia held its position at 28th in the index, which compares 48 pension systems globally. Its sustainability score rose to 58 from 54.9, driven by factors like increased female workforce participation, updated demographic data, and clarity on retirement arrangements. 

The Kingdom ranked 20th in the sustainability sub-index but was lower in adequacy at 32nd and integrity at 42nd. Mercer highlighted that the Kingdom could improve its score by increasing support for low-income retirees and boosting labor participation among older workers. 

Mercer’s ranking analyzes factors such as system design, government support, and home ownership to calculate scores in the adequacy sub-index, while the sustainability index considers elements like pension coverage, government debt, and economic growth. 

The integrity sub-index evaluates regulation, governance, protection, along with communication and operating costs. 

“With a youthful population and increasing labor force participation, Saudi Arabia is in an ideal position to observe the challenges that many of its global peers are facing and guide the development of its pension system accordingly,” said Claudia Maldonado, head of savings and pensions at Mercer Middle East. 

Mercer also outlined several measures the Kingdom could implement to improve its overall index score, including increasing the minimum support provided to low-income seniors and raising the labor force participation rate among older individuals as life expectancies rise. 

The report further noted that enhancing communication with members regarding private pension arrangements could also play a crucial role in boosting the Kingdom’s overall index score in the coming years. 

A report released by the World Bank in July also lauded Saudi Arabia’s pension reforms and called it a groundbreaking development for the Middle East and North Africa region. 

The international financial institution added that achieving a robust system also requires further measures including diversifying pension funds, designing adjustment mechanisms, and enhancing private savings options.

“These measures can offer greater flexibility and security, addressing the diverse needs of the population. By adopting a holistic approach that balances fiscal sustainability with social equity, countries can better protect against economic, demographic, and political risks,” said the World Bank’s blog. 

It added: “Such initiatives set a precedent for forward-thinking policies that other nations can follow to enhance their social security frameworks, and Saudi Arabia, with its most recent reform, sets a great example for the rest of the region.” 

Emerging trends 

The Mercer report revealed that most retirement systems worldwide are increasingly moving away from defined benefit plans and shifting toward defined contribution arrangements. 

“The ongoing shift to defined contribution pension plans introduces many financial planning challenges, which are falling squarely on the shoulders of tomorrow’s retirees,” said Margaret Franklin, president and CEO of CFA Institute. 

She added: “DC plans require individuals to make complex financial planning decisions that may significantly impact their financial circumstances, and yet many individuals are not well prepared to manage the required decisions.” 

Despite these challenges, the report noted that as people live longer, the increased flexibility and personalization offered by DC programs will be critical. 

Mercer also highlighted that the concept of retirement is evolving, with many individuals gradually transitioning into retirement or rejoining the workforce in different capacities after their initial retirement. 

The report pointed out that these plans also offer essential benefits to gig and contract workers, who are often excluded from traditional DB schemes. 

“Significant retirement income system reforms are needed to meet the financial needs of retirees and their evolving work expectations. There is no single solution to getting retirement systems onto more solid ground,” said David Knox, lead author of the study and senior partner at Mercer. 

He added: “Now is the time for governments, policymakers, the pension industry and employers to work together to ensure that older populations are treated with dignity and can maintain a lifestyle similar to what they experienced through their working years.” 

The analysis noted that increasing longevity, high interest rates, and rising costs of care have placed additional pressure on government budgets to support pension programs, leading to slightly lower overall scores this year. 

Global outlook 

According to Mercer, the Netherlands retained the top spot in the index with an overall score of 84.8 and a grade of A, followed by Iceland and Denmark in second and third place, with scores of 83.4 and 81.6, respectively. 

“The Netherlands’ pension system has continued to be the best system, as it moves from a DB structure to a more individual DC approach. The system also features strong regulations and offers participants guidance regarding their pensions,” said Mercer. 

Israel secured the fourth position, while Singapore, Australia, and Finland ranked fifth, sixth, and seventh, respectively. 

Norway placed eighth, followed by Chile in ninth and Sweden in tenth. 

China ranked 31st on the list, while India and Japan were positioned at 48th and 36th, respectively.