Qatari private sector exports fall 28% to $5bn in first 9 months

Qatari private sector exports fall 28% to $5bn in first 9 months
Private sector exports for the third quarter slumped 47 percent to 3.25 billion riyals compared to 6.1 billion riyals accrued between May and June. Shutterstock
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Updated 11 December 2023
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Qatari private sector exports fall 28% to $5bn in first 9 months

Qatari private sector exports fall 28% to $5bn in first 9 months

RIYADH: Qatar’s private sector exports declined 28 percent to 18.5 billion Qatari riyals ($5.08 billion) in the first nine months, the official data showed.

According to the Qatar Chamber, the private sector exports for the first nine months of 2022 were 26 billion riyals.

The organization’s recent trade report found that private sector exports for the third quarter slumped 47 percent to 3.25 billion riyals compared to 6.1 billion riyals accrued between May and June. 

It also nosedived 65 percent compared to 9.3 billion riyals earned in the corresponding period of 2022.

In terms of certificates of origin, 65 percent of the exports in the third quarter were done through general model certification.

While the Gulf Cooperation Council model constituted 19 percent of the exports, the Arab region framework and the united certificate for Singapore comprised 12 percent and 5 percent, respectively.

Notably, there were no recorded exports through the agricultural or animal certificate model, and exports were suspended through the preferences model.

The report highlighted iron products experienced a 158 percent surge in export value in the third quarter, followed by a 5 percent increase in aluminum products.

Chemical fertilizers had a modest increase of 0.6 percent, the report added.

However, essential and industrial oils experienced a 69 percent slump in export value. Fuel products saw a 54 percent fall. While paraffin dropped by 40 percent, low-density polyethylene recorded a 15 percent decline. 

Qatari private sector exports also reached 100 nations during the third quarter compared to 99 countries in the same period last year. 

Among economic regions, Asian countries, excluding the GCC and Arab countries, emerged as the top destination, accounting for 34.6 percent of the total export value.

The EU followed with 27.3 percent, trailed by the GCC countries at 22.6 percent. Arab countries secured the fourth position with 12.7 percent, and the US claimed the fifth spot with 1.7 percent.


COP16: A turning point for global land restoration and drought resilience  

COP16: A turning point for global land restoration and drought resilience  
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COP16: A turning point for global land restoration and drought resilience  

COP16: A turning point for global land restoration and drought resilience  

RIYADH: The 16th session of the Conference of the Parties to the UN Convention to Combat Desertification is set to be a pivotal moment in the global fight against desertification and land degradation. 

Scheduled for Dec. 2-13, 2024, in Riyadh, COP16 carries the theme “Our Land. Our Future.”  

This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 

Why COP16 matters 

As one of the three Rio Conventions, alongside climate change and biodiversity, UNCCD plays a critical role in global environmental governance. COP16 aims to catalyze unprecedented ambition and investment to restore degraded lands and enhance drought resilience. 

The conference will focus on several key objectives:  

Scaling up land restoration: Accelerating efforts to restore 1.5 billion hectares of degraded land by 2030. 

Strengthening drought resilience: Enhancing global and national policy frameworks to better withstand and manage droughts. 

Promoting people-centered solutions: Ensuring the participation of local communities, women, and youth in land management and restoration efforts.  

“The COP16 plans to combat land degradation present exciting opportunities,” said Vijay Valecha, chief investment officer of Century Financial, in an interview with Arab News. 

“Land restoration will promote job growth, encourage sustainable development, and support local economies. According to the UNCCD, every dollar invested in restoring degraded lands yields between $7 and $30 in economic returns,” he added.  

Valecha underscored the importance of collaboration in achieving these ambitious goals, stating: “The target to reforest 1.5 billion hectares will require close collaboration among experts, universities, NGOs, government organizations, and the private sector. This collaboration will strengthen knowledge transfer to local communities and grassroots organizations, making development more sustainable in the long term.”  

HIGHLIGHTS

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation.

‘Missed calls from the land’  

As COP16 in Riyadh approaches, the presidency announced the launch of the global campaign, “Missed calls from the land.”  

This initiative, supported by a campaign film, highlighted Saudi Arabia’s commitment as the UNCCD COP16 Presidency to raise global awareness about the urgent issues of land degradation, drought, and desertification.  

Currently, 40 percent of the world’s land is degraded, affecting 3.2 billion people. The UNCCD’s target aims to restore 1.5 billion hectares of degraded land by 2030.  

Valecha elaborated on how land restoration will have far-reaching impacts: “Restoration also improves water retention in the soil, enhances agricultural output, stimulates the livestock economy, and increases water availability for human consumption.”  

He added: “These efforts will create more green jobs, making economies more resilient in the face of climate challenges.”  

Ministerial dialogues  

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

“COP16 in Riyadh is a critical moment for the international community to address land degradation, drought and desertification,” said Osama Faqeeha, deputy minister for environment and adviser to the UNCCD COP16 Presidency.  

In a press release, he added: “From food and water insecurity to climate change, conflict, instability, and forced migration, how we treat our land has a profound impact on lives and livelihoods around the world.” 

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

“At the same time, we are engaging policymakers from around the world in a range of high-profile discussions to deliver decisive multilateral action. This dual-pronged approach is vital to accelerating the land restoration and drought resilience initiatives our planet and its people so desperately need,” said Faqeeha.

FAO’s central role  

The Food and Agriculture Organization will play a key role at COP16, reflecting its commitment to sustainable land management and food security. Abdul Hakim Elwaer, FAO’s assistant director-general, emphasized in remarks to Asharq Al-Awsat the organization’s active participation, including leading discussions on transforming food systems and coordinating thematic days like Food Day and Governance Day.  

Valecha tied land restoration directly to food security, emphasizing: “Land restoration is crucial for ensuring we have enough food for the future. Sustainable methods like agroecology and regenerative agriculture can improve soil health, reduce carbon emissions, and boost productivity, creating robust food supply chains that adapt to climate change.”  

Strengthening drought resilience  

Building resilience to drought will be a key focus of COP16, emphasizing the role of policies and technologies, with Valecha advocating for proactive measures. 

“To improve drought resilience, a comprehensive framework is needed. This includes identifying vulnerable areas, implementing early warning systems, and enacting policies to prevent water overuse,” he said.  

“Measures such as promoting drought-resistant crops and establishing drought management funds will provide essential protection for affected communities,” Valecha added. 

The integration of local and indigenous knowledge into these efforts is equally vital.   

Valecha said: “Indigenous communities, as key stakeholders in land restoration, possess deep understanding of their ecosystems. Their involvement can significantly reduce deforestation rates, as seen in countries like Nepal and regions in the Americas.”  

A regional and global impact  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation. COP16 will provide an opportunity for regional countries to showcase their resilience strategies and contribute to shaping global policies.  

“The Gulf and MENA region, owing to its demographics, have been at the center of environmental challenges,” said Valecha. “However, initiatives such as drought and disease-resistant crop varieties by GCC nations demonstrate the region’s commitment to combating these challenges.”  

Moreover, COP16 will offer a platform to showcase innovative solutions, from advanced land management practices to cutting-edge technologies in water conservation.  

Youth and community engagement  

For the first time, COP16 will see Saudi Arabia host a Green Zone alongside the formal Blue Zone program. This inclusive public space will promote environmental awareness through family-friendly and cultural activities. 

The emphasis on inclusivity is central to COP16, with forums and training sessions for youth, women, and indigenous communities. The Green Zone will host discussions on sustainable land stewardship while featuring workshops, exhibitions, and interactive art installations.  

Valecha highlighted the potential of youth engagement at COP16: “Selected youth negotiators will participate in the Youth Negotiators Academy, equipping them with skills to advocate for actionable policies. These efforts promote intergenerational dialogue and foster solutions for sustainable livelihoods.”  

“Globally, women account for nearly 50 percent of agricultural labor in small-scale farming. Gender-inclusive policies across the value chain are critical to the success of restoration initiatives,” said Valecha. 

Innovative solutions and partnerships  

COP16 is expected to unveil groundbreaking initiatives, with Valecha anticipating significant developments. He added: “The conference could lead to the establishment of financing mechanisms and restoration funds. Cross-border partnerships can help maintain the Land Degradation Neutrality target and prevent further degradation of land resources.” 

Valecha emphasized the critical role of the private sector in achieving COP16’s goals, highlighting the potential contributions of international financial institutions and private companies. He pointed to favorable loans, green bonds, and funding for sustainable practices such as no-till farming and rotational grazing as key areas of support.  

He also stressed that public-private partnerships are vital for scaling up land restoration efforts. 

A call to action  

As COP16 commences, the world stands at a crossroads. This conference is not just a meeting but a call to action — a chance to turn ambition into tangible solutions for land, livelihoods, and the planet’s future. 

 


Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 
Updated 7 min 57 sec ago
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Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

JEDDAH: Saudi Arabia has launched the 10th round of its subscription-based savings product, Sah, for December, offering a competitive return of 4.83 percent. 

The initiative, aimed at fostering financial stability and supporting economic growth, is Shariah-compliant and government-backed.  

The sukuk opened for subscription on Dec. 1 and will remain available until Dec. 3. Allocations are scheduled for Dec. 10, with redemption from Dec. 15 to 18, and payment due on Dec. 22, according to the National Debt Management Center’s 2024 product issuance calendar.  

Organized by the NDMC and issued by the Ministry of Finance, the fee-free savings product offers low-risk returns and is accessible through the digital platforms of approved financial institutions.  

Sah is the first savings product in Saudi Arabia specifically designed for individuals, structured as bonds within the Kingdom’s local bonds program and denominated in Saudi riyals.  

It aligns with the Financial Sector Development Program under Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international benchmark of 10 percent by the end of the decade. 

The minimum subscription amount is SR1,000 ($266), equivalent to one bond, while the maximum is capped at SR200,000 per user during the program period. The product is exclusive to Saudi nationals aged 18 and above, with returns provided monthly based on the issuance calendar.  

The savings period spans one year, offering fixed returns, with accrued yields disbursed at the sukuk’s maturity. Returns for future issuances will be influenced by market conditions. 

Eligible individuals must hold accounts with one of five financial institutions: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Bank. 

The 9th round of Sah, launched on Nov. 3, offered a slightly higher return of 4.89 percent. That issuance closed with total allocations reaching SR3.415 billion ($990 million).  

The sukuk issuance for the 9th round was divided into five tranches, each with different maturities. The first tranche, worth SR2.524 billion, will mature in 2029. The second, valued at SR434 million, will mature in 2031. The third tranche, amounting to SR137 million, will mature in 2034. The fourth, totaling SR10 million, will mature in 2036. The fifth tranche, sized at SR310 million, will mature in 2039. 

The NDMC has emphasized that the Sah sukuk program is designed to strengthen collaboration with the private sector. Future initiatives will focus on developing customized savings products tailored to different individual categories in partnership with banks, fund managers, fintech companies, and other institutions. 

The launch marks a significant step by the Saudi government to promote savings and enhance financial inclusion, ensuring citizens have access to products and services that meet their financial needs.


Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report
Updated 44 min 5 sec ago
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Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

RIYADH: Saudi Arabia’s banking sector recorded a 3.7 percent sequential increase in loans and advances in the third quarter of 2024, driven by a 4.4 percent surge in corporate and wholesale banking, according to Alvarez & Marsal. 

Deposit growth lagged behind, rising 1.4 percent during the same period, as credit demand continued to outpace deposit mobilization.   

“The continued positive performance in the third quarter of 2024 reflects a balance of growth and improved cost efficiencies among Saudi banks. Profitability has increased primarily due to an increase in non-interest income amid a moderate rise in impairment charges,” Asad Ahmed, managing director of A&M Financial Services, said. 

He added: “As the Saudi Central Bank maintains interest rates in line with the US Fed, potential further rate cuts in the coming quarters are likely to affect interest margins. Focus on non-interest income and improved cost efficiencies will remain central going forward.” 

Time deposits grew by 4.2 percent, underscoring the high-interest rate environment. The loan-to-deposit ratio exceeded 100 percent, indicating that credit demand outpaced deposit mobilization. 

Operating income increased by 6.0 percent during the quarter, driven by a 15.2 percent rise in non-interest revenue. This contributed to an overall improvement in the cost-to-income ratio, which fell by 31 basis points to 31.0 percent. 

Net income rose by 5.3 percent, reaching SR20.5 billion, even as impairment charges surged by 30.4 percent. 

The Saudi Central Bank reduced repo rates by 50 basis points in line with the US Federal Reserve’s actions. Despite this, net interest margins remained steady at 2.95 percent, supported by an 18-basis-point increase in the yield on credit to 8.6 percent and a slight rise in the cost of funds to 3.5 percent.   

Saudi Arabia’s Vision 2030 continues to drive non-oil economic growth, spurring consumer spending, tourism, and construction activities.  

Financial institutions are also prioritizing digital transformation. For example, Al Rajhi Bank’s acquisition of a controlling stake in “Drahim,” a management platform, highlights the growing integration of traditional banking and fintech. 

According to the report, Saudi banks are well-positioned for sustainable growth as they focus on enhancing non-interest income and operational efficiency in a dynamic economic environment. 

While geopolitical challenges and oil market fluctuations present risks, the Kingdom’s banking sector remains resilient, playing a key role in advancing the broader economic objectives outlined in Vision 2030.


Japan’s Saudi crude oil imports reach 41.8% of October total

Japan’s Saudi crude oil imports reach 41.8% of October total
Updated 01 December 2024
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Japan’s Saudi crude oil imports reach 41.8% of October total

Japan’s Saudi crude oil imports reach 41.8% of October total

TOKYO: Japan’s imports of Saudi oil in October 2024 amounted to 27.8 million barrels, a significant 41.8 percent of the total, according to the Japanese Ministry of Economy, Trade and Industry’s Agency of Natural Resources and Energy.

During October, Japan imported 66.53 million barrels, of which the Arab share was 97.8 percent or 65.06 million barrels.

The strategic importance of Arab countries in Japan’s energy security is highlighted by their significant contribution to Japan’s oil imports. The main contribution was from four Arab countries — the UAE, Saudi Arabia, Kuwait, and Qatar — as well as the neutral zone between Saudi Arabia and Kuwait.

The UAE emerged as the largest supplier, providing 31.8 million barrels, which accounted for 47.8 percent of the total imports. Qatar and Kuwait followed, contributing 2.7 million barrels (4.1 percent) and 2.04 million barrels (3.1 percent), respectively. The neutral zone, a smaller supplier, provided 1.1 percent of Japan’s total imports.

Japan’s geopolitical decisions continue to shape its oil imports. With a ban on oil imports from Iran and Russia, the rest of its oil imports in October were sourced from Central and South America (0.9 percent), Southeast Asia (0.8 percent), Oceania (0.3 percent), and the US (0.2 percent).

This article also appears on Arab News Japan


Startup Wrap – Early-stage funding continues to capture interest

Startup Wrap – Early-stage funding continues to capture interest
Updated 30 November 2024
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Startup Wrap – Early-stage funding continues to capture interest

Startup Wrap – Early-stage funding continues to capture interest

CAIRO: Early-stage startups across the Middle East and North Africa region secure investments to drive innovation in sectors such as logistics, fintech, and climate tech.

Saudi-based Nama Ventures co-led Egypt’s Nowlun $1.7 million seed funding round along with venture capital firm A15.

The round also saw participation from Sanabil 500 Global and other angel investors.

Founded in 2021 by Moataz Khamis, Ahmed Emara, and Mahmoud Khaled, Nowlun’s platform provides businesses with access to real-time pricing across major shipping lines, enabling them to make faster and more informed decisions.

The company plans to utilize the raised capital for expansion and the development of its technology.

Mohammed Al-Zubi, founder of Nama Ventures, and Bassem Raafat, principal at A15, lauded the company’s mission and strategy.

Naif Al Rajhi acquires stake in Jordan’s Mawdoo3

Saudi investment firm Naif Al Rajhi Investment has acquired a strategic stake in Jordan-based artificial intelligence Arabic content platform Mawdoo3 for an undisclosed amount.

Founded in 2010 by Mohammad Jaber and Rami Al-Qawasmi, Mawdoo3 specializes in AI technologies and large language models tailored to the Arabic language.

The deal aligns with Naif Al Rajhi Investment’s focus on emerging sectors, while providing the Jordan-based firm with the resources to expand into the Saudi market.

Mawdoo3, which has raised $25 million over three funding rounds – including a $10 million series B in 2019 – is poised to strengthen its regional presence through this partnership.

Geidea expands SoftPos solution to Egypt after success in Saudi Arabia and UAE

Geidea, a prominent Saudi provider of digital payment solutions, is set to launch its SoftPos service in Egypt after successful rollouts in Saudi Arabia and the UAE.

The SoftPos technology enables merchants to accept secure contactless payments via smartphones, eliminating the need for traditional point-of-sale devices.

This expansion is part of Geidea’s strategy to drive digital transformation across the region by enhancing payment efficiency and accessibility for businesses of all sizes.

SoftPos allows merchants to process secure payments directly from smartphones, adhering to global data protection and transaction safety standards, the company explained.

Flat6Labs backs 10 Saudi startups in Riyadh Seed Program cycle

Flat6Labs, a seed and early-stage venture capital firm operating in the MENA region, has invested in 10 Saudi startups as part of its fourth Riyadh Seed Program cycle.

The startups span a variety of sectors, including e-commerce, logistics, Software-as-a-Service, and cybersecurity, and each received $133,000 in funding.

The initiative is supported by the Saudi Venture Capital Co., Jada Fund of Funds, and Riyadh Valley Company, with additional backing from the National Technology Development Program.

Since launching its Riyadh program in 2023, Flat6Labs has funded 41 startups, solidifying its role in fostering innovation in Saudi Arabia’s entrepreneurial ecosystem.

Sylndr secures $7.46m to boost Egypt’s used car marketplace

Egypt-based used car marketplace Sylndr has raised $7.46 million in a capital facility to support its operations and growth.

EFG Hermes acted as the sole financial advisor for the transaction, with financing provided by EFG Corp-Solutions, Bank NXT, and EG Bank, among others.

Founded in 2021 by Amr Mazen and Omar El-Defrawy, Sylndr enables users to buy and sell used cars while offering financing solutions.

The new capital will be used to enhance customer experience, diversify inventory, and expand financing options. This follows a $12.6 million pre-seed round in 2022, led by RAED Ventures and Algebra Ventures.

Morocco’s PTS raises $500k to scale fintech solutions

Premium Technology & Services, a Morocco-based fintech startup, has secured $500,000 from BMCE Capital Investments, the private equity arm of BMCE Capital Group.

The funding will be used to advance PTS’s solutions for digitizing traditional banking cards, which are tailored to meet the evolving needs of banks and businesses.

Founded in 2020 by Samir Younes and two others, PTS plans to leverage the investment to drive innovation and scale operations to meet increasing demand in the region.

Watercycle Technologies raises $5.6m to advance MENA expansion

UK-based climate tech company Watercycle Technologies has closed a $5.6 million series A investment round led by Par Equity, alongside participation from Aer Ventures, Greater Manchester Combined Authority, and the University of Manchester Innovation Factory.

Founded in 2020 by Ahmed Abdelkarim and Sebastian Leaper, Watercycle Technologies focuses on sustainable critical mineral recovery while producing clean, drinkable water.

This investment will help the company expand its operations, with plans to extend services into the MENA region to support global Net Zero initiatives.

Iraq-based edtech Eduba acquired by a regional telecom giant

Eduba, an Iraq-based education tech startup, has been acquired by an undisclosed telecommunications conglomerate in a seven-figure deal.

Founded in 2019 by Azad Hassan, Haider Shaaban, and Raed Kadhem, Eduba began as a school management app and gained traction among private schools, securing accreditation from Iraq’s Ministry of Education.

This acquisition highlights the growing value of edtech solutions in the region and positions Eduba for further expansion under its new ownership.

Japan’s AI startup Recursive Inc. inks MoU with Saudi Arabia’s KAIMRC

Japan-based AI startup Recursive Inc. has signed a memorandum of understanding with the King Abdullah International Medical Research Center in Saudi Arabia to jointly develop an advanced system for the early detection of tuberculosis.

The partnership, formalized during the Riyadh Global Medical Biotechnology Summit, aims to leverage Recursive’s AI expertise and KAIMRC’s medical research capabilities to improve TB screening accuracy and diagnosis speed in the Kingdom.

This collaboration, supported by the Ministry of National Guard-Health Affairs, aligns with Saudi Arabia’s Vision 2030 goals to transform its healthcare system and improve public health.

Using chest X-ray imaging data, the AI solution will enable timely TB diagnosis and treatment, reducing mortality and transmission risks.

“We are truly honored to partner with KAIMRC on this groundbreaking initiative,” said Tiago Ramalho, CEO of Recursive Inc.

“By combining KAIMRC’s pioneering medical research with our AI expertise, we are confident we can make a meaningful impact, not only in Saudi Arabia but also in regions worldwide that face the increasing challenge of TB and other infectious diseases,” he added.

The initiative also supports Saudi Arabia’s National Tuberculosis Program, which seeks to reduce TB mortality and incidence rates by 95 percent and 90 percent, respectively, by 2035 compared to 2015 levels.

Through this collaboration, Recursive and KAIMRC aim to create a scalable TB screening model for broader application in high-burden regions while exploring the use of AI to address other infectious diseases.