Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector
Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector/node/2380056/business-economy
Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector
Total capital investments by manufacturers operating in Abu Dhabi have increased by 12.42 billion dirhams to 384.06 billion dirhams in the year ending June 2023. Shutterstock
Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector
Updated 25 September 2023
Arab News
RIYADH: Abu Dhabi is embarking on an economic transformation with a 10 billion dirhams ($2.7 billion) investment plan to bolster its manufacturing sector through six strategic programs.
The goal is to more than double the sector’s size, reaching 172 billion dirhams, creating 13,600 skilled jobs and boosting non-oil exports by 2031, said top executives at a workshop organized by the Ministry of Industry and Advanced Technology on Sunday.
Speaking at the workshop, Industrial Development Bureau Executive Director Arafat Al-Yafei said: “The programs include talent development, ecosystem enablement, industry 4.0, circular economy, homegrown supply chain and value chain development.”
According to Al-Yafei, the number of new industrial licenses has grown by 16.6 percent since the Abu Dhabi Industrial Strategy was launched in June 2022.
Moreover, total capital investments by manufacturers operating in the emirate have increased by 12.42 billion dirhams to 384.06 billion dirhams in the year ending June 2023.
During the workshop, Al-Yafei emphasized the importance of the collaboration of MoIAT and Abu Dhabi Chamber of Commerce and Industry in raising awareness about programs and incentives designed to attract talent and investments, capitalizing on the abundant opportunities within the emirate’s industrial sector.
Abu Dhabi Chamber CEO Ahmed Khalifa Al-Qubaisi reaffirmed the institution’s commitment to supporting the local business community and facilitating the growth of the industrial sector.
He emphasized the sector’s consistent progress, particularly after Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed launched the ADIS.
ADIS aims to solidify Abu Dhabi’s position as the most competitive industrial hub in the region.
Salama Al-Awadhi, director of the National In-Country Value Program at the Ministry of Industry and Advanced Technology, also underscored MoIAT’s collaboration with public and private partners.
She said: “MoIAT collaborates with public and private sector partners to strengthen the role of the national industrial and technological landscape. This aligns the sector with the direction of global transformation.”
Al-Awadhi added: “The ministry is committed to supporting this direction, which aligns with the UAE’s development goals.”
Abu Dhabi’s substantial investment in its manufacturing sector, along with strategic partnerships and initiatives, is poised to catalyze economic growth, job creation and increased exports, firmly positioning the emirate as an industrial hub in the region.
American Express targets 90% Saudi POS coverage following rapid growth: CEO
American Express has achieved a 180% increase in its point-of-sale acceptance in Saudi Arabia in the last two years
Company’s strategy involved partnering with banks to integrate American Express into their systems
Updated 04 September 2024
MANAL AL-BARAKATI and REEM WALID
RIYADH: Card payment provider American Express has achieved a 180 percent increase in its point-of-sale acceptance in Saudi Arabia over the past two years, according to CEO Fahad Mubarak Al-Guthami.
The company aims to reach 90 percent coverage by the end of 2025.
Speaking on the sidelines of the 24 Fintech conference in Riyadh, Al-Guthami said that this growth aligns with Saudi Arabia’s goal to achieve 70 percent non-cash transactions by 2030, under the Financial Sector Development Program.
“Right now, many places around the Kingdom are accepting American Express…it’s part of our strategy,” Al-Guthami told Arab News.
He revealed that the company’s strategy, which began about two years ago, involved partnering with banks to integrate American Express into their systems.
“In 2024, we’ve already increased the number of points of sale accepting American Express by 180 percent. Our objective is to reach 90 percent by the end of 2025,” Al-Guthami said.
“We want to be leading for the global American Express and the local as well,” he added.
On small and medium enterprises, Al-Guthami said: “Globally, we’ve been very strong with SMEs. In Saudi Arabia, as part of our strategy, the key is to ensure we have acceptance across the country. This will give SMEs the opportunity to use either digital or plastic cards for any purchases they want.”
He added that SMEs value transaction transparency, audit compliance, and return on investment. “So, all of that is something that we’re building on based on what we have already. So, it’s nothing new; it’s just a tweak and we already started that journey,” the CEO added.
Regarding fintechs, he said that they fundamentally represent innovation and one could either develop solutions independently or partner with a fintech.
For instance, he said applications and data analytics are examples of fintech solutions, with the company managing these aspects in-house.
“But then, if I go into the open banking area, I can integrate; it’s faster speed to market and provides us a win-win situation. It gives us access to all financial institutions at the press of a button, and we get access to the customers so we can service them better,” Al-Guthami said.
He added that the same principles apply to personal finance management. These features allow users to view their spending on the application’s dashboard and analyze their expenditures. He explained that while they have the data, the challenge is to analyze and present it in an attractive way for the customer.
The 24 Fintech conference, co-organized by Tahaluf — a joint venture between Informa PLC, the Saudi Federation for Cybersecurity, Programming and Drones, and the Events Investment Fund — aims to establish Saudi Arabia as a global fintech leader in line with Vision 2030.
The event, running from Sept. 3-5, is expected to attract over 30,000 participants, 300 exhibitors, and more than 350 investors, underscoring the Kingdom’s rapid growth in the fintech sector.
IMF highlights Saudi Arabia’s economic gains and Vision 2030 progress in latest review
Non-oil sector demonstrated robust growth of 3.8%
Inflation in the country has decelerated significantly, dropping from a peak of 3.4% in January 2023 to 1.6% in May
Updated 04 September 2024
MIGUEL HADCHITY
RIYADH: The International Monetary Fund executive board has finalized its 2024 review of Saudi Arabia, recognizing the country’s major progress in its economic transformation through Vision 2030.
The consultation, held on July 31, focused on evaluating the Kingdom’s developments and policies, as well as the nation’s fiscal and monetary outlook.
According to the IMF, Saudi Arabia’s economic evolution continued to progress effectively, with modernization and diversification efforts advancing as planned.
Despite a 0.8 percent contraction in the overall gross domestic product in 2023 due to oil production cuts, the non-oil sector demonstrated robust growth of 3.8 percent, fueled mainly by private consumption and investment.
Saudi experienced robust non-oil growth of 3.8% in 2023 driven mostly by private consumption & investment. Still, the economy contracted by 0.8%, reflecting lower oil output & voluntary oil production cuts. Our latest health check of 's economy explains: https://t.co/8qhEoSqI87pic.twitter.com/MA77LEiUTb
The unemployment rate in the Kingdom has hit historic lows, particularly with female labor force participation surpassing the 30 percent target set for 2030.
Inflation in the country has decelerated significantly, dropping from a peak of 3.4 percent in January 2023 to 1.6 percent in May, aided by an appreciating nominal effective exchange rate.
However, rent prices have surged by about 10 percent, driven by the influx of expatriate workers and significant redevelopment projects in Riyadh and Jeddah. Wholesale prices have also edged up, reflecting increased input costs and rising wages for skilled workers.
The current account surplus narrowed to 3.2 percent of GDP in 2023, primarily due to lower oil exports and strong growth in investment-related imports.
However, this was partially offset by a record surplus in the services balance, including a significant 38 percent increase in net tourism income.
Saudi Arabia’s reserves remain ample, covering 15.8 months of imports by the end of 2023.
The banking sector in the Kingdom is on a solid footing, with stress tests indicating that banks and non-financial corporates are resilient even under severe adverse scenarios.
While bank credit growth has moderated, it surpasses deposit maturation, particularly in the corporate sector. However, increased interlinkages between financial institutions and the sovereign could amplify systemic shocks, especially in response to fluctuations in oil prices.
The IMF projected the non-oil growth to reach 4.4 percent in the medium term, driven by stronger domestic demand as project implementation under Vision 2030 picks up.
The phase-out of oil production cuts is expected to boost overall growth to 4.7 percent in 2025, with inflation remaining contained. The current account is anticipated to shift to a deficit, reflecting declining oil prices and continued strong investment-related imports.
The IMF emphasized the importance of maintaining fiscal prudence, safeguarding financial stability, and continuing structural reforms to support sustainable and inclusive growth in Saudi Arabia.
The recalibration of investment spending under Vision 2030 was praised for mitigating overheating risks.
The IMF also recommended further fiscal adjustments, including efforts to mobilize non-oil revenue and contain the wage bill to maintain strong buffers and meet intergenerational needs.
The organization commended Saudi Arabia’s commitment to achieving net zero emissions by 2060 and highlighted the progress in renewable energy and power efficiency. However, it said that additional efforts are needed to support these targets fully.
Saudi Arabia suspends municipal fees for commercial licenses of hotels, resorts
Decision aims to provide an attractive investment environment for investors and enhance competitiveness in the sector
It will play a role in developing the tourism sector’s infrastructure
Updated 04 September 2024
Arab News
RIYADH: Saudi Arabia has decided to suspend municipal fees for issuing licenses for commercial activity of hotels, hotel apartments ,and residential resorts, effective from Sept. 4.
The decision was issued by Minister of Municipalities and Housing Majid Al-Hogail as an extension of the continuous efforts to facilitate municipal procedures and services in Saudi cities, to develop the tourism sector, and to raise the quality of tourism services, the ministry said in a statement.
It also aims to provide an attractive investment environment for investors and enhance competitiveness in the sector.
The decision comes in line with the goals of Saudi Vision 2030 to turn the Kingdom into one of the most prominent tourist destinations in the world and to encourage investment in the tourism sector to benefit from the promising opportunities.
It will also play a role in developing the tourism sector’s infrastructure, especially hospitality facilities and reducing operating costs.
The ministries of municipalities and housing and tourism called on investors in the sector to benefit from the decision by issuing or renewing a commercial activity license for hotels, hotel apartments and residential resorts through the Balady platform. They also called on investors to adhere to the requirements and work to improve and develop their facilities to ensure sustainability and quality in tourism services.
The ministries said they are organizing a group of workshops and introductory and awareness sessions for owners of hotels, hotel apartments and residential resorts to explain and clarify the decision, and provide the necessary support and advice to investors in the tourism sector.
The decision comes as a strategic step to support investors and encourage them to pump more investments into the tourism sector, which contributes to creating new job opportunities and increasing the sector’s contribution to the gross domestic product.
It is also one of the investment enablers initiatives in the tourism sector that was launched in March to facilitate investment in Saudi tourism.
Analysis: Riad Salameh arrest – turning point or strategic maneuver by former Lebanese central bank chief?
Updated 04 September 2024
reina takla
RIYADH: The arrest of Riad Salameh, Lebanon’s former central bank governor, has sent shockwaves through Lebanon’s financial and political spheres.
After over a year of intense scrutiny and numerous allegations of financial misconduct, Salameh’s apprehension is being closely analyzed from multiple perspectives.
Some believe his arrest might be an attempt to deflect attention from systemic failures within Lebanon’s financial sector, while others regard the arrest as a significant development many hold both views.
One banker, who chose to remain anonymous, provided a nuanced interpretation of the situation when speaking to Arab News.
“My initial reaction is that the government is seeking a scapegoat to avoid taking responsibility for the financial crash,” he said.
Despite this, he acknowledged that Salameh was not entirely blameless.
The banker expressed skepticism about the effectiveness of the Lebanese judiciary in tackling high-profile financial crimes.
“The Lebanese judiciary lacks impartiality,” he stated. “Their attempts to bring criminals to justice have been ineffective, and the judges’ lack of experience in financial investigations is significant.”
He also questioned the credibility of seeing the arrest as a gesture toward international bodies like the Financial Action Task Force and the International Monetary Fund.
“I don’t believe this will help,” he said, referring to Lebanon’s tarnished reputation due to inaction.
His concern reflects a broader skepticism about whether the arrest will lead to substantive reforms or merely serve as a symbolic act.
On the topic of investor confidence, the banker was pessimistic. He argued that the damage to Lebanon’s financial system had already been done and meaningful changes are needed to ensure a true recovery.
“Politicians need to take responsibility and move forward, even if it means making difficult decisions,” he said.
The entrance of Lebanon's central bank in March 2023, covered in graffiti by protesters over the liquidity crisis which started in 2019. Shutterstock
While Lebanon’s central bank is supposed to be an independent organization, the banker highlighted that the governor’s tenure was marked by a preoccupation with political decisions rather than focusing on the financial management crucial to the institution.
This raises a critical question: Is Salameh solely to blame for Lebanon’s financial turmoil, or is he just one component in a much larger system of mismanagement and corruption?
According to the banker, the situation reflects a broader systemic issue.
“The simple words to describe this are mismanagement and corruption to the highest level,” he said, adding: “The irony is that it hasn’t really stopped.”
This perspective suggests that while Salameh’s arrest might address one aspect of the crisis, it does not tackle the deep-seated issues that have plagued Lebanon’s financial and political systems for years.
George Kanaan, honorary chairman of the Arab Bankers Association, echoed some of the sentiments expressed by the anonymous banker but also provided a critical perspective on Salameh’s alleged misconduct.
Kanaan expressed a clear stance on the matter, and said:: “I think he deserves to be in jail, and I think he has clearly committed theft.”
He lamented that the more substantial issue of financial mismanagement, which he believes is not prosecutable, is overshadowed by Salameh’s individual actions.
Another anonymous banker provided a detailed analysis of the political context surrounding Salameh’s arrest, suggesting several possible scenarios that could explain the timing and nature of this high-profile event.
He posited that Salameh’s arrest might be linked to broader political maneuvers and speculated on three primary scenarios.
Firstly, the banker suggested that Salameh’s arrest might be part of a larger political deal, potentially positioning him as a scapegoat for the pervasive corruption among Lebanese politicians. “His arrest might be part of a broader political deal,” he said.
This theory hinges on the idea that Salameh could be sacrificed to placate public outrage and international pressure, thereby protecting other, more powerful figures who may be equally or more culpable.
The banker pointed out that Ali Ibrahim, the financial prosecutor of Beirut — who is reportedly a protégé of the head of the country’s parliament Nabih Berri — has just pressed charges of fraud and money laundering against Salameh.
Berri was once one of Salameh’s major protectors, which adds a layer of complexity to the current political dynamics.
Another scenario proposed is that Salameh might have felt personally endangered and decided to turn himself in as a form of self-preservation.
The banker highlighted that Salameh had been publicly summoned over the past 13 months but had consistently failed to attend hearings.
His arrest, surrounded by high levels of secrecy and occurring without the presence of his legal team, could indicate that he feels safer in jail.
“He might be feeling endangered due to threats, and he decided to turn himself in so he would be protected behind cell bars,” he noted.
The third scenario was that Salameh’s arrest could be a prelude to a future clearing of his name.
According to this view, the arrest might be part of a strategy to demonstrate that the Lebanese judiciary is taking significant actions against high-profile figures.
If Salameh is eventually declared innocent, it could imply that the Lebanese judiciary system has conducted a thorough investigation and that Salameh’s arrest was a procedural step rather than an indictment of his guilt.
“He was arrested to be cleared and declared innocent at a later stage,” the banker suggested.
This would signal that the judiciary is making a concerted effort to address corruption, albeit in a way that ultimately exonerates Salameh.
The banker emphasized that Salameh’s role as the central figure in Lebanon’s financial system adds considerable weight to these scenarios.
“He is the secret keeper of all the financial transactions that happened in Lebanon,” he said, underscoring the pivotal role Salameh played in managing and orchestrating financial dealings.
His deep involvement in the financial system and knowledge of sensitive transactions make him a key figure in understanding Lebanon’s financial mismanagement, which further complicates the political and legal landscape surrounding his arrest.
Legal analysis: implications and challenges
Jihad Chidiac, a Lebanon-based attorney, said the country was “positively surprised” by the arrest, but raised questions about its broader implications.
He noted that Salameh’s prosecution in Lebanon could potentially preclude further international legal actions due to the principle of non bis in idem, or double jeopardy.
Lebanon-based attorney Jihad Chidiac. File
Chidiac highlighted the significance of the arrest in the context of Lebanese judicial capacity, saying: “Riad Salameh’s arrest represents a crucial step toward accountability of high-profile figures for alleged financial crimes.”
He also addressed the potential for the arrest to influence Lebanon’s relationship with international bodies.
According to the attorney, the arrest could be a strategic move to align with international expectations and potentially improve Lebanon’s standing with the FATF and IMF.
However, he cautioned that the arrest alone might not significantly advance Lebanon’s negotiations with these bodies, given the slow progress on reforms.
Chidiac expressed concerns about the broader impact of Salameh’s arrest on corruption and financial mismanagement in Lebanon. “Addressing these systemic problems will require a more comprehensive and sustained approach,” he said, emphasizing the need for effective legal actions and institutional reforms.
The attorney emphasized that while this case sets a new precedent — given that no other high-ranking figures have faced similar legal actions before — the eventual outcome remains uncertain.
He highlighted the concern that if Salameh were to disclose crucial information, it could potentially jeopardize a large number of public and prominent figures.
This adds an extra dimension to the case, as the ramifications of his revelations could be far-reaching.
“The possibility of such disclosures raises significant concerns about the stability of Lebanon’s political and financial institutions, and how they might react to protect themselves from further exposure,” Chidiac explained.
As Lebanon grapples with these developments, the effectiveness of the judiciary in handling such high-profile cases will be closely watched.
It could serve as a litmus test for the country’s commitment to tackling corruption and restoring public trust in its institutions.
The coming days will be crucial in determining whether this arrest will lead to meaningful reform or merely serve as a symbolic gesture.
Closing Bell: Saudi Arabia’s TASI concludes in red, drops to 12,128 points
Nomu parallel market ended at 25,946.20, marking a decrease of 98.75 points, or 0.38%
MSCI Tadawul also dropped by 5.55 points, or 0.37%, ending at 1,511.82
Updated 04 September 2024
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index closed Wednesday’s trading at 12,128.14 points, recording a drop of 52.23 points, or 0.43 percent.
The Nomu parallel market ended at 25,946.20, marking a decrease of 98.75 points, or 0.38 percent.
The MSCI Tadawul also dropped by 5.55 points, or 0.37 percent, ending Wednesday’s session at 1,511.82.
By the end of trading, TASI recorded a trade value of SR7.4 billion ($1.9 billion), with 46 stocks advancing and 180 declining. In contrast, Nomu had a trading volume of SR32.8 million.
Saudi Fisheries Co. stood out as the leading performer, registering a surge of 9.92 percent and closing at SR24.38. This comes on the heels of the company’s latest appointment of a new chairman and vice chairman of the board.
Al-Baha Investment and Development Co. ended on a positive note with a growth of 7.69 percent, settling at SR0.14.
Another notable performer, Saudi Steel Pipe Co. observed a 5.92 percent rise, concluding its trading at SR76.90. The National Co. for Glass Industries and Wataniya Insurance Co. also performed well, both rising by 4.33 percent to end at SR51.80 and SR32.50, respectively.
Alistithmar AREIC Diversified REIT Fund experienced the most significant drop, plunging 5 percent to SR9.50.
Shares of AlAhli REIT Fund 1 and Knowledge Economic City followed suit, declining to SR7.85 and SR15.38, translating to a dip of 3.33 percent and 3.27 percent, respectively.
Americana Restaurants International PLC and Amlak International Finance Co. also reported downturns.
In Nomu, Al Ashghal Al Moysra Co. was the top performer, reaching SR57, an increase of 8.16 percent.
Leaf Global Environmental Services Co., Mohammed Hasan AlNaqool Sons Co., and Alhasoob Co. were also among the top gainers clinching 7.69, 6.19, and 4.63 percent changes to close at SR70, SR36.90, and SR52, respectively.
Advance International Co. for Communication and Information Technology also closed the day in green with SR5, an increase of 4.17 percent.
Natural Gas Distribution Co. was the worst performer on Nomu, closing at SR43.70, a 10.45 percent drop.
Al Rashid Industrial Co. and Naba Alsaha Medical Services Co. followed dropping by 6.14 and 4.95 percent to close at SR38.95 and SR90.30, respectively.
MOBI Industry Co. and Sure Global Tech Co. were also among Nomu’s worst performers.
