You are here

  • Home
  • Companies flock to Riyadh as Saudi economy diversifies

Companies flock to Riyadh as Saudi economy diversifies

Spearheaded by Crown Prince Mohammed bin Salman, the country is systematically strengthening its non-oil private sector. Bolstered by business-friendly reforms, the capital city, Riyadh, is establishing itself as a major global business hub. Shutterstock
Spearheaded by Crown Prince Mohammed bin Salman, the country is systematically strengthening its non-oil private sector. Bolstered by business-friendly reforms, the capital city, Riyadh, is establishing itself as a major global business hub. Shutterstock
Short Url

https://arab.news/5433a

Updated 31 December 2023
Nirmal Narayanan
Follow

Companies flock to Riyadh as Saudi economy diversifies

Companies flock to Riyadh as Saudi economy diversifies
Updated 31 December 2023
Nirmal Narayanan
Follow

RIYADH: In a major stride toward global business prominence, Saudi Arabia is fast emerging as a powerhouse through its regional headquarters program. 

Spearheaded by a collaborative effort between the Ministry of Investment and the Royal Commission for Riyadh City, the initiative offers foreign companies establishing their Middle East bases in the Kingdom a 30-year exemption from corporate income tax, as announced in December 2023. 

These efforts have led to more than 180 foreign firms securing licenses to establish their headquarters in the Kingdom, surpassing the original target of attracting 160 international firms by the end of 2023, as revealed by Saudi Investment Minister Khalid Al-Falih, in a November interview. 

Speaking to Bloomberg, Al-Falih emphasized that the regional headquarters program is a long-term endeavor. Saudi Arabia is actively collaborating with international entities to cultivate the “right ecosystem” for them to establish their offices in the Kingdom.  

Despite the current challenges in Europe and the Middle East, he expressed confidence that people will recognize Saudi Arabia as the premier destination for investment.  

FASTFACTS

More than 180 foreign firms secured licenses to establish their headquarters in the Kingdom.

The numbers surpassed the original target of attracting 160 international firms by the end of 2023.

The initiative offers foreign companies establishing their bases in the Kingdom a 30-year exemption from corporate income tax.

He noted that this transition is already underway and believes that Saudi Arabia will maintain its status as a highly attractive investment destination. 

Saudi Arabia’s economy, long reliant on crude oil, has undergone a remarkable transformation since the launch of Vision 2030.  

Spearheaded by Crown Prince Mohammed bin Salman, the country is systematically strengthening its non-oil private sector. Bolstered by business-friendly reforms, the capital city, Riyadh, is progressively establishing itself as a major global business hub. 

This has attracted leading global players to move their headquarters to Riyadh — from German consultancy firm TUV Rheinland and Norwegian group Technal to global real estate firm JLL and IHG Hotels & Resorts. 

Here’s a roundup of some notable firms that opened their regional headquarters in Saudi Arabia in 2023:  

TUV Rheinland 

In November 2023, the German consultancy firm TUV Rheinland inaugurated its regional headquarters in Riyadh.  

Following the launch, Michael Fubi, CEO, and chairman of the executive board at TUV Rheinland Group, expressed the company’s unwavering commitment to Saudi Arabia. He added that the new office would facilitate the firm’s growth and expansion in the region. 

“TUV Rheinland Arabia’s mission and guiding principles are to achieve sustained development of safety and quality to meet the challenges arising from the interaction between man, technology, and the environment,” said Fubi. 

Tarjama 

In the same month, Tarjama, a leading smart language services provider in the Middle East and North Africa region, opened its headquarters in Riyadh as part of Saudi Arabia's ongoing transformation from an oil-dependent economy to a diversified global business hub.  

The company said the relocation of top executives to Saudi Arabia reflects Tarjama’s commitment to catalyzing growth and strengthening the local business landscape.  

“As we witness Saudi Arabia’s emergence as a thriving hub for international enterprises, we are delighted to introduce our proprietary suite of innovative language solutions, meticulously crafted for the Arabic language, to the Saudi market,” said Nour Al-Hassan, founder and CEO of Tarjama.   

JLL 

In October, global real estate firm JLL solidified its commitment to Saudi Arabia’s property market by opening its regional headquarters at the King Abdullah Financial District in Riyadh.  

JLL said it sees the Kingdom as a crucial player in its long-term and continued growth in the region.  

Christian Ulbrich, JLL’s president and global CEO, expressed the company’s goal to elevate the standards of real estate services in the Kingdom and beyond through close collaboration with stakeholders.   

IHG Hotels & Resorts 

In a significant move reflecting Saudi Arabia’s growing influence in the travel and tourism sector, hospitality giant IHG Hotels & Resorts established its regional headquarters in Riyadh in October. 

IHG not only opened its regional headquarters but also revealed plans for substantial expansion in the Kingdom, with 50 percent of its Middle East development focused on Saudi Arabia. The company emphasized alignment with Saudi Arabia’s Saudization goals, with a commitment to increasing the number of Saudi nationals in its workforce from 1,700 to 6,000 by the end of the decade.  

GE Healthcare 

During the Global Health Exhibition in October, US-based GE Healthcare announced the establishment of its regional headquarters in Riyadh. This move followed the recent launch of GE Healthcare’s online service shop in the region.  

The new headquarters is strategically positioned to address the evolving healthcare demands in Saudi Arabia and the broader region.  

Bechtel 

In September, the US-based engineering, procurement, construction, and project management company Bechtel opened its regional headquarters in Saudi Arabia.  

With a history of activity in the Kingdom dating back to 1945, Bechtel is actively involved in several key projects, including Jubail, Ma’aden, NEOM, Trojena, the Riyadh Metro Project, and the New Murabba.  

The newly established headquarters in Riyadh is designed to support Bechtel’s expanding team, enabling the successful delivery of these iconic projects, as stated in the company’s press release. 

Technal 

In July, Technal, a brand of Norsk Hydro, the Norwegian group specializing in aluminum extrusions, inaugurated its regional headquarters in Saudi Arabia. 

Following the opening, the company expressed its commitment to offering low-carbon technologies for the construction sector in the Kingdom.  

Operating in Saudi Arabia for over 44 years, Technal has been providing low carbon footprint aluminum, energy-efficient, and high-performance solutions for windows, doors, and facades.  

With the establishment of the new headquarters, Technal aims to further serve its Saudi-based customers, including architects, consultants, contractors, and developers.  

As Saudi Arabia continues to offer incentives and benefits to international companies relocating their regional headquarters, the coming months may witness more firms entering the Kingdom to establish a base.

Topics: SaudiVision2030 HQ program Riyadh business 2023 year in review Year in Review

Related

Rise of international HQs in Saudi Arabia driving up quality office space demand: CBRE
Business & Economy
Rise of international HQs in Saudi Arabia driving up quality office space demand: CBRE

The urgency of climate finance: Is the world ready to commit?

The urgency of climate finance: Is the world ready to commit?
Updated 16 November 2024
MANAL AL-BARAKATI
Follow

The urgency of climate finance: Is the world ready to commit?

The urgency of climate finance: Is the world ready to commit?
Updated 16 November 2024
MANAL AL-BARAKATI

BAKU: As global leaders gather in Baku for the COP29 UN climate change conference, the focus on climate finance has never been more pressing. This year’s conference theme, “Accelerating Climate Action for Sustainable Development,” suggests that climate action must advance economic stability as well as address environmental concerns.

Yalchin Rafiyev, Azerbaijan’s lead negotiator for COP29, has said that “trillions of dollars” are needed to fund the fight against climate change — a significant increase from the longstanding annual target of $100 billion, which itself remains unmet. Vulnerable nations are especially affected by this shortfall, lacking the resources to build resilience against climate impacts.

The need for equitable financing

Delegates from developing regions, including African representatives, have called for climate finance to reflect the distinct economic realities faced by less developed countries.

Shaimaa Al-Sheiby, senior director of strategic planning at OPEC, spoke to Arab News about the importance of ensuring that climate finance meets the needs of developing economies

“In many countries, it’s difficult for governments to sustain economic progress without accessible financing,” Al-Sheiby said. She advocated for wealthier nations and financial institutions to play a greater role in “de-risking” investments in developing markets to attract private capital for renewable projects.

Yusuf Idris Amoke, a Nigerian climate adviser, said: “The Global South is on the receiving end of climate impacts while contributing far less to emissions.”

For these countries, the push to phase out fossil fuels often clashes with immediate economic needs, especially given that alternatives are limited and expensive.

“Financing third world countries or the Global South is key,” Amoke added, saying that transitioning without robust financial support is neither equitable nor feasible.

Voluntary carbon markets and climate solutions

Voluntary carbon markets have been gaining traction as a flexible solution for reducing emissions, especially in regions where compulsory systems have struggled to achieve significant results.

These markets encourage companies to take part in climate initiatives by creating financial incentives, which, as Al-Sheiby said, are essential for involving the private sector.

“Private capital is very shy,” she added, saying that risk-reduction strategies could help attract these funds to where they are most needed.

The success of voluntary markets, however, depends on strong regulatory support, transparency and accountability.

Global initiatives and South-South collaboration

The COP29 Presidency has launched the Baku Initiative for Climate Finance, Investment and Trade, a collaborative platform designed to align climate finance and trade with sustainable development priorities. By convening leaders from developed countries and the Global South, the initiative aims to foster equitable climate solutions.

In Africa, Saudi Arabia’s “Empowering Africa Initiative” exemplifies South-South collaboration. Minister of Energy Prince Abdulaziz bin Salman has signed agreements with Ethiopia, Chad, Senegal and other countries to promote energy equity as well as accelerate the continent’s energy transition. These agreements are set to harness Africa’s vast renewable energy potential, including its 10 terawatts of solar capacity.

Abid Malik, ACWA Power’s geo head for Central Asia, highlighted the importance of fostering local expertise during an interview with Arab News. “Our projects in Africa don’t just bring renewable energy; they create jobs, enhance technical skills and empower local communities to take charge of their energy futures,” he said.

The intersection of climate finance and conflict recovery

The recently announced Baku Call on Climate Action for Peace, Relief and Recovery highlights the role of climate action in stabilizing conflict-affected regions. “Climate-induced challenges such as water scarcity and food insecurity are catalysts for conflict,” said Mukhtar Babayev, COP29 president. “Peace-sensitive climate action is crucial for the most vulnerable.”

Gilles Carbonnier, vice president of the International Committee of the Red Cross, highlighted the environmental fallout in conflict zones like Gaza. “In places like Gaza, where infrastructure has been decimated, renewable energy offers a lifeline,” he told Arab News. “Solar microgrids in refugee camps are providing critical electricity for healthcare and other essential services.”

Charting a path forward

The commitments announced at COP29 reflect a growing recognition of the interconnected challenges of climate finance, energy equity and conflict recovery. With asset owners controlling $10 trillion pledging to accelerate private capital deployment and initiatives like BICFIT gaining momentum, the foundations for transformative change are being established.

For vulnerable nations, these efforts offer a glimmer of hope. However, achieving a just transition will require sustained political will and a reimagining of global financing systems. As COP29 unfolds, the world is watching to see if the pledges made in Baku will translate into tangible action.

Topics: COP29 UN climate change

Related

COP29: Clean energy a catalyst for stability, recovery in conflict zones
Business & Economy
COP29: Clean energy a catalyst for stability, recovery in conflict zones
World’s most polluting cities revealed at COP29 as frustration grows at fossil fuel presence
World
World’s most polluting cities revealed at COP29 as frustration grows at fossil fuel presence

Saudi Fund for Development marks 50 years with efforts in emerging economies

Saudi Fund for Development marks 50 years with efforts in emerging economies
Updated 16 November 2024
Nirmal Narayanan
Follow

Saudi Fund for Development marks 50 years with efforts in emerging economies

Saudi Fund for Development marks 50 years with efforts in emerging economies
Updated 16 November 2024
Nirmal Narayanan

RIYADH: As the world is being divided by geopolitical tensions and wars, Saudi Arabia’s development fund is extending a helping hand to emerging nations through soft loans and grants.

Established in 1974, the Saudi Fund for Development has supported more than 800 projects worth $20 billion in over 100 countries.

As it celebrates 50 years since it was founded, the fund’s offerings for developing nations show no signs of slowing down.

Here are the highlights of its activities in the first nine months of 2024.

Water project to Benin

In February, SFD signed a memorandum of understanding with Benin to allocate a $5 million grant to support the implementation of the fifth phase of the Saudi Program for Drilling of Wells and Rural Development.

According to a press statement, the water project is expected to overcome the effects of drought in 37 villages across the West African nation.

“The project will contribute to the growth and prosperity of the infrastructure sector, provide access to water and food security, maintain public health, and reduce environmental pollution, to help achieve the Sustainable Development Goals, specifically SDG 6, clean water and sanitation,” said SFD.

The fund’s development cooperation with Benin started in 2008, with it providing soft loans to finance six development projects and programs worth more than $145 million in the country over the past sixteen years.

Supporting Turkiye’s education sector

In February, SFD signed a $55 million loan agreement with Turkiye to rehabilitate five public schools covering an area of approximately 55,000 sq. meters.

The project will equip these schools with the necessary equipment and resources to protect them against earthquake damage, ensuring the continuity of their quality and efficiency, according to a statement.

Over the past four decades, SFD has financed nine development projects and programs in Turkiye, worth over $300 million, in multiple sectors including energy, health, agriculture, and education.

Empowering transport sector in Tunisia

Earlier this year, the fund signed a development loan agreement worth $55 million to renew and develop the railway network for phosphate transportation in Tunisia.

According to a press statement, the project will help renew approximately 190 km of the system, support increasing the capacity for transporting phosphate, and contribute toward Tunisia’s economic growth by creating direct and indirect job opportunities.

Loan to support clean energy growth in Pakistan

In March, SFD signed two development loan agreements totaling to $101 million to finance the establishment of the Shounter Hydropower and the the Jagran-IV Hydropower Projects in Pakistan.

A loan worth $66 million is intended to construct the 48-megawatt Shounter Hydropower station and connect it to the country’s national electricity grid.

This project also involves dam construction, water diversion and purification structures, powerhouse development and discharge tunnel construction.

The second loan, amounting to $35 million, will help establish the Jagran-IV Hydropower Project, which is set to have a capacity of 22 MW. This project entails the construction of dam, powerhouse, water diversion and purification building, as well as the provision of generators, transformers, necessary equipment, and transmission lines.

“These two agreements mark a continuation of efforts to boost clean energy projects in Pakistan, addressing challenges posed by conventional energy and its associated financial costs,” said SFD.

It added: “Additionally, they underscore the significance of clean energy and its contribution to fostering vital opportunities for sustainable development, aiming to support social development, stimulate economic growth, and meet population basic needs.”

In 2023, SFD financed oil derivatives worth $1 billion for Pakistan, when the South Asian nation was facing a tough economic situation amid dwindling forex reserves and rapidly depreciating national currency.

Supporting energy sector in Saint Kitts and Nevis

In April, SFD signed another development loan agreement worth $40 million to bolster the energy sector in Saint Kitts and Nevis.

According to a press statement, the loan centers on the financing of the expansion of the Needsmust Power Plant Project in the island nation. The project entails the establishment of a state-of-the-art dual-fuel power generation station with a capacity of 18 MW.

“This initiative is poised to significantly enhance the country’s energy production capabilities, contributing to a flexible hybrid power generation platform. It emphasizes efficiency improvements, utilization of clean fuel, and a pivotal step toward sustainable energy practices,” said SFD.

Aid to disaster-affected communities in Saint Vincent and the Grenadines

To support the disaster-affected communities in Saint Vincent and the Grenadines, the SFD in April signed a $50 million developmental loan agreement with the Caribbean nation.

According to a press statement, the agreement aims to finance the construction and rehabilitation of buildings and facilities affected by natural disasters in the country.

“The goal is to enhance the sustainability and resilience of these structures to withstand future disasters and climate change effects. The project encompasses furnishing and equipping buildings with necessary equipment, including the establishment of four health care facilities, construction of primary and secondary schools, government buildings, and rehabilitation of damaged houses by volcano, among other infrastructure works,” said SFD.

SFD enters El Salvador and Nicaragua

In June, SFD forayed into El Salvador and Nicaragua by signing developmental loan agreements with these nations.

The fund signed a $83 million deal with El Salvador to fund a water treatment and biogas power generation project in the Central American country.

“The project will treat wastewater that currently flows into the Acelhuate River, while also producing biogas for renewable electricity generation. Expected to benefit over 1.2 million people, it will significantly increase El Salvador’s renewable energy capacity, and contribute to environmental sustainability,” said SFD.

 

 

In the same month, the fund signed another developmental loan agreement worth $103 million with Nicaragua to finance the development of the Carlos Centeno Departmental Hospital in the Central American nation.

According to a press statement, the fund will be used to construct a 25,000-sq.-meter hospital with a capacity of 300 beds, serving the surrounding regions.

The facility will also include specialized clinics for surgery, comprehensive child immunization, training and qualification of medical personnel, emergency departments, and a full range of integrated health care services.

Supporting socio-economic growth in Dominica

In September, SFD signed a developmental loan agreement worth $41 million with Dominica to enhance socio-economic growth in the country.

The agreement aims to rehabilitate seven main streets in Roseau, which will help improve road connectivity, reduce congestion, enhance safety and access to basic services, as well as facilitate the smoother movement of people and goods, according to a press statement.

 

 

The loan will also contribute to commercial and residential development and create numerous job opportunities.

In the same month, SFD also signed a deal worth $25 million to co-finance the development of renewable energy infrastructure in the Solomon Islands.

The financing initiative aims to reduce dependency on fossil fuels and promote sustainable development in the Oceanian nation. 

Topics: Saudi Fund for Development Saudi Arabia

Related

Serbia secures $205m loan from Saudi Fund for Development
Business & Economy
Serbia secures $205m loan from Saudi Fund for Development
Saudi Fund for Development finances over $20bn global projects in 50 years — minister
Saudi Arabia
Saudi Fund for Development finances over $20bn global projects in 50 years — minister

Startup Wrap — Proptech leads startup investment in region as sector sees funding drop

Startup Wrap — Proptech leads startup investment in region as sector sees funding drop
Updated 16 November 2024
Nour El-Shaeri
Follow

Startup Wrap — Proptech leads startup investment in region as sector sees funding drop

Startup Wrap — Proptech leads startup investment in region as sector sees funding drop
Updated 16 November 2024
Nour El-Shaeri

RIYADH: Saudi Arabia’s real estate tech platform Ejari secured the largest startup investment across the Middle East and North Africa in October as the region faced a funding slowdown.

The firm benefited from a $14.65 million seed financing round led by PFG and BECO Capital, underscoring the importance of early-stage investments.

This success came against a backdrop of a funding fall for the MENA region, which saw $134 million secured across 56 deals.

This represented a 52 percent month-on-month decline and a 13 percent decrease from the same period last year, indicating ongoing challenges in the region’s investment climate, according to Wamda’s monthly report.

Debt financing played a notable role, accounting for $28.4 million, or 21 percent of the total amount.

UAE-based startups led the region, raising $61.8 million across 15 deals, while Saudi Arabia followed closely with $50 million raised across 21 transactions.

Kuwait’s position was boosted by property technology firm Sakan’s $12 million round, contributing to a total of $13.5 million secured by Kuwaiti entrepreneurs.

The Egyptian startup scene struggled, with only eight startups raising a combined $1.6 million, highlighting a sharp downturn.

Meanwhile, Tunisian and Qatari startups performed comparatively well, securing $3 million and $2.7 million, respectively.

Fintech, which had dominated the region’s funding landscape earlier in the year, fell to second place in October.

Proptech took the lead, attracting $38 million over five deals.

The e-commerce sector raised $14.6 million, while education technology startups secured $11 million across seven deals.

Investor preference leaned toward early-stage startups, with seed funding accounting for $40 million, or 30 percent of the total raised.

Series A investments reached $20 million across three deals, and pre-seed funding contributed $15.5 million. Notably, nine startups secured $25.8 million without disclosing their stage.

The business-to-consumer model was the favored choice, garnering $83.8 million across 19 startups, while business-to-business ventures attracted $42.4 million over 27 deals.

Ten startups operating a hybrid model received nearly $8 million.

Female-founded firms saw an encouraging rise, collectively raising $10.5 million across four transactions. 

However, male-founded startups continued to dominate, securing $115 million across 31 deals.

Saudi open banking startup Lean closes $67.5m in series B round

Lean Technologies, a Saudi-based open banking platform, has raised $67.5 million in a series B funding round led by US-based General Catalyst.

This round marks one of the largest equity investments by a US venture capital firm in Saudi Arabia’s fintech sector. Other participants included Bain Capital Ventures, Duquesne Family Office, and Arbor Ventures.

Founded in 2019 by Hisham Al-Falih, Ashu Gupta, and Aditya Sarkar, Lean provides businesses with access to bank data and payment solutions.

The company, regulated by the Abu Dhabi Global Market, claims it has processed over $2 billion in transactions through its account-to-account payment offerings, serving clients like e&, DAMAC, and Careem.

In Saudi Arabia, Lean’s launch of data services under the Saudi Central Bank’s regulatory sandbox has facilitated nearly 1 million bank account verifications, supporting clients in sectors such as insurance, lending, and e-commerce, including companies like Tawuniya, Abdul Latif Jameel Finance, and Salla, as well as Tabby, and Tamara.

Al-Falih, CEO of Lean Technologies, stated that the funding will be used to expand Lean’s product offerings and support its growth strategy across the Middle East.

“Our aim is to enhance the financial ecosystem by providing accessible solutions that meet the needs of businesses and consumers alike,” Al-Falih said.

Neeraj Arora, managing director at General Catalyst, said: “Lean has demonstrated a strong commitment to solving local market needs and has earned significant customer loyalty. We see Lean as a key player in building the infrastructure needed for the region’s fintech growth.”

The new funding is expected to bolster Lean’s pay-by-bank and open banking solutions, allowing the company to scale operations and deepen its market presence in the region.

UnifyApps secures $20m to fuel ME expansion

UAE-based Software-as-a-Service solutions provider UnifyApps has closed a $20 million series A funding round led by Iconiq Growth, with participation from Elevation Capital.

The round brings UnifyApps’ total funding to $31 million since its inception in 2023. The company, co-founded by Pavitar Singh, Abhishek Khurana, focuses on automating enterprise workflows across multiple applications.

“UnifyApps understands that you need a holistic approach to achieve trusted, effective AI agents,” said Matt Jacobson, general partner at Iconiq Growth.

“By aligning every data source and application to an enterprise use, they are enabling AI to actually understand and orchestrate work,” he added.

Pavitar Singh, CEO of UnifyApps, emphasized the strategic value of the new partnership: “UnifyApps is deeply grateful for the opportunity to work with Iconiq Growth. Their deep network and partnership will be instrumental in our next stage of growth as we bring our AI agent platform to enterprises everywhere.”

UAE’s Epik Foods raises $15.5m

Epik Foods, a UAE-based food and beverage group, has raised $15.5 million in private capital funding from Ruya Private Capital I, LP, a fund managed by Ruya Partners.

The funding will be used for acquisitions, working capital, and supporting the company’s expansion plans, particularly into Saudi Arabia, as well as strengthening its presence in the UAE.

Established by Khaled Fadly and Ranya Basyuni, Epik Foods was formed in 2023 following a merger of three F&B entities – KR&CO, Sweetheart Kitchen, and Happy Platters Kitchens – in partnership with Gulf Islamic Investments, a Shariah-compliant global investment firm which manages over $4.5 billion in assets.

Epik Foods currently oversees a portfolio of 60 food and beverage brands operating across 50 locations in the UAE and Saudi Arabia, with an additional 20 outlets slated to open as part of its ongoing expansion strategy.

Efreshli advances interior design tech with new funding round

Egyptian interior design startup Efreshli has raised an undisclosed amount in its latest seed round, led by Algebra Ventures.

The round also saw participation from 500 Startups, Dar Ventures, and various angel investors.

Founded in 2019 by Heba El-Gabaly, Efreshli leverages virtual decor tools to help customers visualize room setups before making purchases.

CEO El-Gabaly expressed optimism about the company’s growth trajectory, saying: “I’m excited about this significant milestone for Efreshli. With new funding and with Dina El-Haddad joining as co-founder and CPO (chief product officer), we can accelerate our tech-driven growth and take Efreshli to new heights.”

El-Haddad added: “I’m thrilled to be part of Efreshli’s journey to revolutionize the home furnishing experience. Efreshli’s future is more than just furniture; it’s about building an entire ecosystem. With innovations like Efreshli Pro, we’re connecting the dots for everyone, from customers to designers.”

The new funding will be directed toward enhancing Efreshli’s offerings and expanding its product line, reinforcing its mission to make interior design accessible across the region.

Topics: startups

Related

Startup Wrap – Saudi VC space continues to play pivotal role in SMEs growth as Biban 24 delivers deals
Business & Economy
Startup Wrap – Saudi VC space continues to play pivotal role in SMEs growth as Biban 24 delivers deals
Startup Wrap – Saudi VCs pour capital into ventures through strategic investments  
Business & Economy
Startup Wrap – Saudi VCs pour capital into ventures through strategic investments  

Yemen and Iraq lead call for more crisis finance

Yemen and Iraq lead call for more crisis finance
Updated 16 November 2024
ARAB NEWS 
Follow

Yemen and Iraq lead call for more crisis finance

Yemen and Iraq lead call for more crisis finance
Updated 16 November 2024
ARAB NEWS 

BAKU: A group of conflict-affected countries led by Iraq and Yemen is pushing at the COP29 climate talks to double financial aid to more than $20 billion a year to combat the natural disaster and security crises they face.
States mired in conflict or its aftermath have struggled to access private investment, because they are seen as too risky. That means UN funds are even more critical to their people, many of whom have been displaced by war and weather.
In response, the COP29 Azerbaijan presidency on Friday launched launch a new “Network of Climate-vulnerable Countries,” including Iraq, Yemen, Burundi, Chad, Sierra Leone, Somalia and Timor-Leste. They all belong to the g7+, an intergovernmental group of fragile countries that first sent the appeal.
The network aims to advocate as a group with climate finance institutions, build capacity in member states so they can absorb more finance, and create country platforms so investors can more easily find high-impact projects in which to invest, said think tank ODI Global, which helped the countries create the network.
“My hope is it will create a real platform for the countries in need,” said Abdullahi Khalif, chief climate negotiator for Somalia.

Half of UK businesses impacted by Middle East conflict

Half of UK businesses impacted by Middle East conflict
Updated 15 November 2024
Arab News
Follow

Half of UK businesses impacted by Middle East conflict

Half of UK businesses impacted by Middle East conflict
  • British Chambers of Commerce survey shows companies faced increased costs, shipping disruption
Updated 15 November 2024
Arab News

LONDON: Half of British businesses say they have been affected by the conflict in the Middle East, according to a survey from the British Chambers of Commerce.

The findings show that on top of the devastating human impact of the fighting in Gaza and Lebanon, the economic repercussions are being felt around the world.

Houthi militants in Yemen began attacking shipping in the Red Sea shortly after the Oct. 7 Hamas attacks sparked Israel’s war on Gaza.

The militants claim they are targeting ships linked to Israel and its allies in solidarity with Palestinians. The result has been a huge reduction in traffic through one of the world’s busiest maritime trade routes.

The BCC said shipping container rates have risen sharply since the conflict began. The cost of shipping a 40-ft (12-meter) container from Shanghai to Rotterdam has risen from just over $1,000 at the start of the conflict to just under $4,000 now. Prices peaked at more than $8,000 in July.

Most shipping companies operating between Asia and Europe have opted to send vessels around the longer Cape Horn route rather than through the Red Sea and Suez Canal.

In the survey of about 650 businesses published this week by the BCC’s Insights Unit, UK firms said the conflict had led to increased costs, shipping disruption and delays, and uncertainty over oil prices. 

Half of those asked said the conflict had affected them, compared to just over a quarter in a similar survey in October 2023. This suggests more businesses worldwide have been affected by the fighting the longer it has gone on.

William Bain, the BCC’s head of trade policy, said: “Alongside the grim human impact of the ongoing conflict in the Middle East, the situation continues to have economic reverberations around the world.

“The effect on businesses here in the UK has continued to ratchet up the longer the fighting has continued.

“If the current situation persists, then it becomes more likely that the cost pressures will build further.”

Economists have warned that while the effects on the global economy have so far been largely limited to shipping costs and delays, further escalation could have a much wider impact.

The biggest concern would be a disruption to oil and gas supplies that would lead to a surge in global energy prices, fueling inflation.

Topics: Battlefield Lebanon War in Gaza Red Sea attacks

Related

Yemen’s Houthis launch drones and missiles at US warships near the Red Sea but do no damage
Middle-East
Yemen’s Houthis launch drones and missiles at US warships near the Red Sea but do no damage
A suspected attack by Yemen’s Houthi rebels sees explosions near ship in Red Sea
Middle-East
A suspected attack by Yemen’s Houthi rebels sees explosions near ship in Red Sea

Latest updates

Israeli troops reach deepest point in Lebanon since October 1 invasion
Israeli troops reach deepest point in Lebanon since October 1 invasion
Iran ‘categorically’ denies envoy’s meeting with Musk
Iran ‘categorically’ denies envoy’s meeting with Musk
The urgency of climate finance: Is the world ready to commit?
The urgency of climate finance: Is the world ready to commit?
Indian private university opens first international campus in Dubai
Indian private university opens first international campus in Dubai
Riyadh falcon auction soars with $1.6m in sales
Riyadh falcon auction soars with $1.6m in sales

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.