Algeria joins the BRICS New Development Bank

President of the New Development Bank Dilma Rousseff speaks during a press conference in Cape Town on Aug. 31, 2024 at the Ninth Annual Meeting of the NDB, a multilateral development bank established by BRICS. (Reuters)
Short Url
Updated 01 September 2024
Follow

Algeria joins the BRICS New Development Bank

  • Membership was secured thanks to ‘the strength of the country’s macroeconomic indicators,’ said finance ministry
  • It will offer Algeria ‘new prospects to support and strengthen its economic growth in the medium and long term’

ALGIERS: Algeria has been approved for membership in the BRICS New Development Bank, the country’s finance ministry has announced.

The decision was taken on Saturday and announced by NDB chief Dilma Roussef at a meeting in Cape Town, South Africa.

By joining “this important development institution, the financial arm of the BRICS group, Algeria is taking a major step in its process of integration into the global financial system,” the Algerian finance ministry said in a statement

The bank of the BRICS group of nations — whose name derives from the initials of founding members Brazil, Russia, India, China and South Africa — is aimed at offering an alternative to international financial institutions like the World Bank and IMF.

Algeria’s membership was secured thanks to “the strength of the country’s macroeconomic indicators” which have recorded “remarkable performances in recent years” and allowed the North African country to be classified as an “upper-tier emerging economy,” the finance ministry said.

Membership in the BRICS bank will offer Algeria — Africa’s leading exporter of natural gas — “new prospects to support and strengthen its economic growth in the medium and long term,” it added.

Created in 2015, the NDB’s main mission is to mobilize resources for projects in emerging markets and developing countries.

It has welcomed several countries as new members, including Saudi Arabia, Egypt, the UAE, and Iran.


Rafid initiative drives innovation in Saudi industry via academic partnerships

Updated 4 sec ago
Follow

Rafid initiative drives innovation in Saudi industry via academic partnerships

JEDDAH: Saudi Arabia’s industrial sector is poised for significant growth through the Rafid program, a strategic initiative that collaborates with academic institutions to spearhead innovation and research in manufacturing.

Led by the Ministry of Industry and Mineral Resources, this comprehensive effort aims to enhance the Kingdom’s advanced national industry by engaging local universities and technical colleges to align with the National Industrial Strategy.

Anchored in the principles of the Fourth Industrial Revolution, the Rafid program focuses on advancing digital manufacturing capabilities. It leverages cutting-edge technologies such as 3D printing, design and engineering analysis, and simulation to drive progress.

Saudi Arabia envisions expanding its factory count to 36,000 by 2035, with 4,000 of these being fully automated, thereby transforming the production landscape. The incorporation of advanced technologies—including artificial intelligence, 3D printing, and robotics—positions the Kingdom’s industries to emerge as global leaders in this industrial revolution.

“We have launched the Rafid program, aiming to establish strategic partnerships with leading Saudi universities and set up innovative factories on their campuses,” Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef wrote in a post on his X account.

The minister highlighted that the Rafid program is dedicated to leveraging research outcomes and innovations, particularly in key sectors outlined in the country’s national industrial strategy. The program will support various initiatives and accelerated adoption of Fourth Industrial Revolution technologies. This includes the Future Factories Program, which aims to establish a robust technology ecosystem and modernize the manufacturing sector.

The launch event was attended by prominent figures from the industrial and mining sectors, university presidents, and representatives from private sector companies.

In his address at the official launch, Alkhorayef underscored the critical role of advancing the national industry in achieving Vision 2030 and fostering a diverse and sustainable economy. He stressed the need for technological progress, innovation, and the development of human resources, emphasizing that Rafid is a strategic solution to meet these challenges.

During the event, several pivotal agreements and memorandums of understanding were signed under the Rafid program. Among these was a partnership between Princess Nourah bint Abdulrahman University and Autonomous Technologies, aimed at advancing drone manufacturing capabilities. King Abdulaziz University also forged a deal with Haven Scientific to establish an advanced medical products factory. Meanwhile, Qassim University entered into a memorandum of understanding with United Defense to develop an advanced drone systems manufacturing facility. Additionally, Umm Al-Qura University, represented by Wadi Makkah Technology, signed an agreement with Abdullah Abuljadayel Company to set up a food production plant.

The agreements outlined the creation of four innovative factories at these local universities. Specifically, Princess Nourah bint Abdulrahman University will host a drone manufacturing plant, Qassim University will develop an advanced drone systems facility, King Abdulaziz University will establish a medical products factory, and Umm Al-Qura University will set up a food production plant.

The event also announced the allocation of significant industrial lands. King Faisal University was granted 1.4 million sq. meters for food and environmental industries, while Umm Al-Qura University received 1.5 million sq. meters for industries related to pilgrimage.

The launch of the Rafid program was attended by an array of distinguished guests, including Mohammed Al Hayaza, President of Al-Faisal University; Khalid Al-Mudaifer, Deputy Minister of Industry and Mineral Resources for Mining Affairs; Abdullah bin Ali Al-Ahmari, Assistant Minister of Industry and Mineral Resources for Planning and Development; Inas Al-Issa, president of Princess Nourah bint Abdulrahman University; Bassam bin Abdullah Al-Bassam, secretary-general of the Council of University Affairs; Majed Rafed Al-Argoubi, CEO of the Saudi Authority for Industrial Cities and Technology Zones; and Muhammad bin Fahd Al-Sharikh, president of Qassim University.

Officials from the signing entities were also present, underscoring the collaborative effort driving the Rafid program forward.


Saudi Arabia opens main command and control center to enhance maritime, cargo operations

Updated 35 min 5 sec ago
Follow

Saudi Arabia opens main command and control center to enhance maritime, cargo operations

  • Center contributes to crisis management in collaboration with the relevant authorities
  • It coordinates and integrates all activities and operations across various government sectors and levels to ensure business continuity

JEDDAH: Saudi Arabia has opened a command and control center to ensure seamless maritime and cargo operations, enhancing readiness to handle risks such as natural disasters.

The Minister of Transport and Logistic Services Saleh Al-Jasser, who is also chairman of the Saudi Ports Authority, known as Mawani, inaugurated the center on Aug. 16 at the organization’s Riyadh-based headquarters.

The initiative aligns with Mawani’s commitment to enhancing the Kingdom’s ports by ensuring continuous excellence in maritime operations, including improving cargo procedures, the readiness of assets, and preparedness for challenges such as natural and environmental disasters. 

It supports the objectives of the National Transport and Logistics Strategy, aiming to solidify Saudi Arabia’s position as a global logistics hub connecting three continents.

The center contributes to crisis management in collaboration with the relevant authorities, utilizing advanced programs and systems that assist in data collection and analysis. It helps to issue appropriate guidance for decision-makers, fostering trust and sustainable relationships.

The center coordinates and integrates all activities and operations across various government sectors and levels to ensure business continuity. Its responsibilities include corresponding efforts among different entities and training and developing human resources to ensure their high efficiency in addressing various risks.

In June, Al-Jasser inaugurated a similar base at Jeddah Islamic Port, emphasizing the crucial role of command and control centers and capacity building in boosting operational efficiency and resilience in the port sector.

He said the center would enhance long-term institutional performance, improve coordination and cooperation among government and private entities, facilitate information exchange, enable joint decision-making, and help achieve Mawani’s strategic objectives.

Al-Jasser also said the Kingdom’s leadership supports projects and initiatives within the transport and logistics system to maximize service and developmental roles while ensuring the security and safety of maritime transport and the port sector.

Omar Hariri, president of Mawani, said that the Jeddah center aids in crisis management in collaboration with relevant authorities. It leverages advanced programs and systems for data collection and analysis, issuing directives, and fostering trust among stakeholders, thereby contributing to a positive and sustainable relationship.

According to Mawani, command and control centers offer several competitive advantages, including integrating and coordinating operations across various sectors and governmental levels to ensure business continuity. They also facilitate efforts between entities and support the training and development of human resources to manage risks effectively.


UAE and Australia finalize trade deal to boost exports and investment

Updated 17 September 2024
Follow

UAE and Australia finalize trade deal to boost exports and investment

RIYADH: Australia has finalized a Comprehensive Economic Partnership Agreement with the UAE, which could boost its exports by A$678 million ($458 million) annually. 

In a press statement, Australia’s Trade Ministry noted that the deal will eliminate tariffs on about 99 percent of his country’s products, leading to savings of A$135 million in the first year and increasing to A$160 million annually once fully implemented. 

As Australia’s first trade agreement with a country in the Middle East and North Africa region, the CEPA aims to enhance bilateral trade and investment by streamlining trade processes, removing tariffs on a wide range of goods and services, and encouraging private-sector collaboration in key sectors. 

The agreement builds on the strengthening economic ties between the UAE and the southern hemisphere country with bilateral non-oil trade reaching $2.3 billion in the first half of 2024 — a 10 percent increase from the same period in 2023. 

Australia’s Trade Minister Don Farrell stated that, as a trading nation, the country is committed to opening up new opportunities for its exporters, farmers, producers, and businesses. 

“Under this trade agreement, Australian exports are expected to increase by $460 million per year, but this deal means more for Australia than just numbers. A trade agreement with the UAE will facilitate investment into key sectors, which is important to achieving our ambition of becoming a renewable energy superpower,” added Farrell. 

The trade agreement is also expected to unlock UAE investment in sectors such as renewable energy and the supply chain for critical minerals, thereby catalyzing Australia’s energy transition. 

“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households,” explained Farrell. 
 
The UAE is the country’s top trade partner in the Middle East and 20th globally. By 2023, the two nations had committed $14 billion to each other’s economies, with over 300 Australian businesses active in sectors including construction, financial services, agriculture, and education. 

“This CEPA will unlock significant opportunities for UAE businesses and provide Australian companies with a gateway to new markets across the MENA region. I look forward to collaborating with my Australian counterpart to swiftly ratify the CEPA and deliver its benefits,” said UAE Trade Minister Thani bin Ahmed Al-Zeyoudi. 
 
He added: “This milestone not only reaffirms our commitment to building strong relations with key partners, but to expanding the reach of our trading network into key regions such as Asia-Pacific.” 
 
According to the statement, the agreement is expected to benefit Australian farmers and food producers, with estimated tariff savings of A$50 million annually for the country’s food and agriculture exports. 

It also includes a framework to boost UAE investment in critical minerals, aiding the mining industry through tariff cuts on alumina exports. 

Australia’s Trade Ministry noted that the agreement would reduce import tariffs on UAE-produced furniture, copper wire, glass containers, and plastic, resulting in lower costs for businesses and households, with estimated savings of around $40 million a year. 

The deal encompasses commitments to promote labor rights, protect the environment, and ensure sustainable development. 

Australia and the UAE are working to finalize the legal treaty text, which is expected to be signed later this year. 


UK firms to expand businesses in Saudi Arabia amid top ministerial meeting 

Updated 17 September 2024
Follow

UK firms to expand businesses in Saudi Arabia amid top ministerial meeting 

RIYADH: UK-based companies are set to expand their operations in Saudi Arabia as both countries discussed strengthening their trade partnership in a top ministerial meeting.

During the gathering, the Kingdom’s Minister of Commerce and Chairman of the Economic and Social Committee of the Saudi-British Strategic Partnership Council, Majid Al-Qasabi, met with the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, and his accompanying delegation in Riyadh, to discuss elevating economic partnership in priority sectors.

The two parties also tackled stimulating and financing emerging companies in promising fields based on research and innovation, the Saudi Press Agency reported.

This falls in line with the two countries’ target to increase bilateral trade to £30 billion ($39.6 billion) by 2030.

According to data from the UK government’s Department for Business and Trade, total trade in goods and services between with Saudi Arabia reached £17.6 billion in the four quarters to the end of the first quarter of 2024. 

“Today I met with His Excellency the Minister of State for Business and Trade and Chairman of the British Council, Mr. Jonathan Reynolds, and we discussed the progress of the negotiations for the Free Trade Agreement between the GCC countries and the United Kingdom and enhancing opportunities for trade cooperation between our two friendly countries,” Al-Qasabi said in a post on X. 

“Economic growth is this government’s driving mission, and boosting trade and investment with some of the world’s biggest economies is crucial to that,” Reynolds said, the UK government reported.

“I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region, and increases choice for consumers — so it’s great to be here to discuss exactly that,” the business and trade secretary added.

Al-Qasabi also highlighted in the meeting the follow-up of the implementation of 79 initiatives in 13 economic sectors to strengthen the Saudi-British partnership, noting that the level of growth in bilateral trade reached more than 30 percent from 2018 to 2023. 

He added that 1,139 British investors operate in the Kingdom and benefit from the facilities resulting from the development reforms related to facilitating the practice of economic business.

During his visit to Riyadh, Reynolds also met with the Saudi Minister of Industry and Mineral Resource, Bandar Alkhorayef, to discuss opportunities to enhance industrial and mining cooperation between the two countries and promising investment opportunities for UK companies in the two sectors. 

The ministers also held talks focused on encouraging British investors to take advantage of the Kingdom’s business-friendly environment, which offers numerous incentives, competitive advantages, and the availability of natural resources. They emphasized Saudi Arabia’s advanced infrastructure in addition to its diverse energy sources.

The Kingdom was ranked the UK’s 23rd largest trading partner in the four quarters to the end of the year’s first quarter, accounting for 1 percent of total UK trade. 


UAE banking sector’s liquid assets surpass $218bn: CBUAE 

Updated 17 September 2024
Follow

UAE banking sector’s liquid assets surpass $218bn: CBUAE 

RIYADH: The UAE banking sector’s liquid assets reached 801.52 billion dirhams ($218.2 billion) by the end of the second quarter of 2024, reflecting a 20.2 percent year-on-year increase, official data showed. 

According to the latest report from the Central Bank of the UAE, the increase reflects a jump from 666.6 billion dirhams in the same period last year. On a quarter-on-quarter basis, it increased by 2 percent, or 14.9 billion dirhams, compared to 786.6 billion dirhams at the end of the first quarter of this year. 

Liquid assets accounted for 18.9 percent of the sector’s total assets, which reached 4.2 trillion dirhams by June.  

This comes as the UAE banking sector demonstrates strong growth and resilience amid global challenges. The CBUAE has supported this expansion with record increases in assets, credit, deposits, and investments, while maintaining robust capital efficiency and reserves.   

The report also highlighted the UAE banking system’s strong capitalization, with a total capital adequacy ratio of 18.3 percent at the end of the second quarter, improving from 18 percent in the first three months of the year, and 17.9 percent in the last quarter of 2023.  

This ratio remained significantly above the minimum regulatory requirement of 13 percent, including a 2.5 percent capital buffer and a minimum Tier 1 capital ratio of 8.5 percent. 

This metric, which measures core capital, stood at 17 percent at the end of the second quarter of 2024, up from 16.7 percent in the first three months of the year and 16.6 percent in the fourth quarter of 2023.  

Meanwhile, the Common Equity Tier 1 ratio, a key measure of a bank’s financial strength, rose to 15.3 percent, up from 15 percent in the inaugural quarter of 2024 and 14.9 percent in the last quarter of 2023. 

The UAE banking sector has demonstrated growth and stability in recent months, with the net international reserves seeing a surge of 29 percent, totaling 1.23 trillion dirhams by the end of May. This total includes 763.88 billion dirhams held by the CBUAE and 472.68 billion dirhams held by other banks operating in the UAE.  

In conjunction with this, CBUAE’s gold reserves grew by 19.7 percent year on year, reaching 20.61 billion dirhams. The gold reserves also saw a 1.3 percent increase in May compared to April.   

Time deposits increased by 17 percent to 842.98 billion dirhams, while demand deposits grew over 10 percent to 1.04 trillion dirhams. UAE Funds Transfer System transactions reached 7.9 trillion dirhams by May, up 17 percent from the previous year.