Saudi EXIM Bank and SABIC sign letter of credit insurance policy

The Saudi Export and Import Bank signed an agreement with Saudi Basic Industries Corporation. (SPA)

Short Url

https://arab.news/22zd2

Updated 17 January 2024

Arab News

January 17, 2024 00:40

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Updated 17 January 2024

Arab News

January 17, 2024 00:40

RIYADH: The Saudi Export and Import Bank has signed an agreement to insure Saudi Basic Industries Corporation’s sales on a letter of credit basis across 40 countries against non-payment risks posed by the issuing banks, the bank said in a statement on Tuesday.

It is considered to be the largest policy ever issued in the Middle East and the first of its kind to be offered directly to exporters to insure unconfirmed LCs from issuing banks.

It also significantly amplifies the prospects for growth and penetration into new regional and international markets and enhances the competitiveness of Saudi petrochemical exports.

CEO of Saudi EXIM Bank Saad Al-Khalab, and Salah Al-Hareky, SABIC’s executive vice president of corporate finance, signed the agreement.

Riyadh | #SaudiEXIM and #SABIC have signed an agreement to insure SABIC’s sales on a Letter of Credit basis across 40 countries. It is considered the largest policy ever issued in the Mideast and the first of its kind to be offered to exporters to insure unconfirmed LCs from… pic.twitter.com/9jiKSG4xm8

— بنك التصدير والاستيراد السعودي (@SaudiEXIM) January 16, 2024

Al-Khalab said: “This milestone agreement with SABIC aligns with the bank’s ongoing commitment to bolster the Saudi non-oil economy and enhance its contribution to the gross domestic product.

“The bank focuses on encouraging companies to broaden their export operations and venture into new international markets.

“The letter of credit insurance policy is the newest addition to our product offerings provided to Saudi exporters, which was designed to enable SABIC (to) realize its vision of becoming a world leader in petrochemicals and achieve more stability of cover and pricing in very critical export markets with (a) high degree of geopolitical and economic challenges.”

SABIC’s CEO Abdulrahman Al-Fageeh said: “We expect the letter of credit insurance policy provided by the Saudi EXIM Bank to play a key role in driving our export expansions as it strengthens our ambitions toward realizing our strategic objectives and multiplying our investments, considering the growth in new global markets for our products.

“We are committed to contributing to the objectives of Saudi Vision 2030, which focuses on augmenting the share of non-oil products in the Kingdom’s gross domestic product and promoting the Made in Saudi initiative.”

The Saudi EXIM Bank plays a significant role in strengthening the Kingdom’s non-oil economy on the global stage and focuses on bridging credit gaps and mitigating the risks faced by exporters. This approach aligns with the Kingdom’s Vision 2030 objectives, which aim to elevate the share of non-oil exports in GDP.

Topics: Saudi Arabia Saudi Export-Import Bank Saudi Basic Industries Corporation (SABIC)

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

Updated 26 sec ago

Nour El-Shaeri

December 03, 2024 13:20

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

Updated 26 sec ago

Nour El-Shaeri

December 03, 2024 13:20

RIYADH: Three renewable energy projects are set to be developed in Saudi Arabia with the involvement of French companies, according to Minister of Investment Khalid Al-Falih.

The initiatives, which will be officially announced by the Saudi Energy Minister Prince Abdulaziz bin Salman in the presence of French President Emmanuel Macron, are part of the Kingdom’s growing efforts to lead the global transition toward sustainable energy.

“I don’t know if the news is out, but I’ll break it in. There will be three major renewable projects announced by His Royal Highness Prince Abdulaziz and signed in the presence of President Macron,” Al-Falih said during the Saudi Green Initiative Forum held in Riyadh at COP16.

Speaking on the broader shift toward sustainability, Al-Falih emphasized that green finance is central to the future of global investment, highlighting its alignment with Saudi Arabia’s vision for sustainable development.

“Globally, I think the world today is really moving toward financing, investing, and supporting sustainability and energy and materials,” he said, emphasizing key areas such as water management and combating desertification.

According to Al-Falih, trillions of dollars in annual investments are required globally to address these challenges.

The minister remarked that the amount of capital across the world available for sustainable investments is vast and growing rapidly.

“We estimate that as of last year, $3 trillion was the pool of money available last year. And I think what is more astonishing, what is more wow to me is it is projected to grow by a factor of seven of the $3 trillion by 2033, eight years. So the funds are there,” he said.

He added that governments must play a key role in making investments attractive by de-risking them for private capital.

“It needs to go to a place where there is demand, and demand is key,” he explained. “It needs governments and systems that (investors) can trust and that has all of the elements of stability, predictability. And we believe Saudi Arabia is that place for them to look at,” he said.

The Kingdom is positioning itself as a global hub for green investment, backed by robust demand, investor trust, and stable governance.

“The future of finance is green. It is green, which happens to be the color of our flag. It happens to be the theme of this great initiative His Highness has launched — Green Saudi, Green Middle East,” Al-Falih said, adding that the country provides a stable environment for investors by managing risks and offering predictable opportunities.

Al-Falih also pointed to Saudi Arabia’s advances in renewable energy production, particularly wind and solar power, describing these sectors as a “win, win, win” for the nation.

“The lowest hanging fruit, which we started with, and His Royal Highness Prince Abdulaziz is doubling down on in a massive way, is the green electrons producing electricity from wind and solar,” he said, explaining that these projects not only boost sustainability but also create economic opportunities.

“This is for us, you know, win, win, win because we displace liquids that can be exported to places that need liquid hydrocarbons for that economic longevity.”

In addition to renewable energy, Al-Falih highlighted the Kingdom’s rapid growth in venture capital and its efforts to foster a startup ecosystem.

He also underlined that Saudi Arabia has risen to become the leading venture capital market in the Middle East, with VC growing “by a factor of 21 over the last few years.”

The government has supported this growth through initiatives such as Biban, LEAP, and the Garage, a flagship incubator inspired by France’s STATION F.

“We are awarding thousands of premium residencies to all of these entrepreneurs because we want them to feel at home,” he added.

“The system of venturing and startups is not only linked to Saudi companies. I think what’s exciting is when we have our conferences. We just had Biban. A few months earlier, we had LEAP; hundreds, if not thousands, of startups came from around the world, and we’re licensing them at MISA (Ministry of Investment).”

Al-Falih also underscored the Kingdom’s commitment to driving global green investment, envisioning Saudi Arabia as the primary hub for sustainable finance.

“We will be launching many investment schemes around green investments. And as I mentioned, the future for finance is green, and the hub of that green investment is going to be in Saudi Arabia. And those funds will naturally flow to where the hub is, where the center of gravity is going to be,” he said.

Topics: COP16 Green & Blue Saudi Green Initiative (SGI)

AI will help Saudi Arabia achieve ambitious growth targets: expert

Updated 11 min 52 sec ago

Arab News

December 03, 2024 13:09

AI will help Saudi Arabia achieve ambitious growth targets: expert

Updated 11 min 52 sec ago

Arab News

December 03, 2024 13:09

RIYADH: Artificial intelligence will help Saudi Arabia to achieve its ambitious goals for growth, while reducing its reliance on other targets, according to a top executive.

Jad Haddad, partner and global head of consultancy Oliver Wyman’s AI division Quotient, spoke to Arab News recently about how technological advances are reshaping the workforce.

“Today, there is a shortage of labor, particularly in Saudi Arabia,” he said. “If the Kingdom’s going to reach its very ambitious targets of growth, in a way AI and the embracement of AI will basically help achieving those very aggressive, but also achievable, as we’ve seen, targets, with less dependency on others.”

Saudi workplaces are already well advanced in using generative AI tools, such as text generator Chat GPT, with 68 percent of employees surveyed by Oliver Wyman making use of the technology compared with a global average of 55 percent.

Haddad noted how another survey found that more than 90 percent of CEOs at New York Stock Exchange-listed companies also invest heavily in AI and believe in its promise. “But yet we haven’t seen a lot of disruption to jobs.”

He added: “Will we see disruption in the job market? Probably. I think AI already is augmenting a lot of the things that we do, and as we have applications that are implemented and scaled within organizations, things are going to change.

“But at the same time, we can look at it from the other way around. I think it is already creating a lot of jobs as well.”

The forward-looking Gulf is a leader in the adoption of AI technologies, according Haddad, who highlighted the fact that some of the region’s biggest companies are employing the technology.

National oil companies such as Aramco and ADNOC “are really taking up AI, and that’s also great because they are a big part of the society but also of the economy,” he said.

“I think the region is really embracing AI, much faster than any other region, and is really seeing the benefit and the promise of AI.”

Saudi Arabia’s early focus on the new technology was evidenced when the Kingdom founded its government AI agency SDAIA in 2019.

The entity employs around 3,000 people, and is focused on establishing governance related to AI, and positioning the country as a leader in the field.

A November report from SDAIA highlighted Saudi Arabia’s global leadership in AI, as evidenced by its top ranking in the pillar of government strategy in the 2023 Global AI Index by Tortoise Media.

In 2023, the Kingdom joined the UN AI Advisory Body, aiming to promote the responsible use of AI.

Government spending on technologies, including AI, grew at a compound annual growth rate of 59 percent between 2019 and 2023, according to the Saudi Press Agency.

In September 2024, at the third edition of SDAIA’s Global AI Summit, the authority unveiled the AI Adoption Framework Document, providing a guiding reference for adopting AI in the public and private sectors.

SDAIA also recently announced the activation of AI offices in 23 government entities.

Topics: artificial intelligence Saudi Arabia

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Updated 03 December 2024

Reuters

December 03, 2024 11:05

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Updated 03 December 2024

Reuters

December 03, 2024 11:05

CAIRO: Conditions in Egypt’s non-oil private sector declined more slowly in November as output and new orders dropped at a slower pace, according to the latest Purchasing Managers’ Index (PMI) data from S&P Global.

The PMI edged up to 49.2 in November from 49 in October, inching closer to the 50 threshold that separates growth from contraction. Despite the improvement, the index still indicated a marginal downturn in business conditions.

“Declines in output and new business slowed across the non-oil sector in November, indicating that business conditions are close to stabilising,” said S&P economist David Owen.

Output levels fell for the third consecutive month, attributed to persistently weak customer demand. However, some firms reported a pick-up in new work, hinting at signs of recovery.

The output sub-index improved to 49.1 from 47.9 in October, while the new orders sub-index climbed to 48.7 from 47.6.

The manufacturing sector showed modest growth in goods orders, which helped offset declines in construction, wholesale & retail, and services.

Employment numbers decreased in November, their first reduction after four months of expansion. Companies cited reduced sales volumes and weaker confidence as reasons for not replacing voluntary leavers.

Input prices, at 55.9, rose at the slowest pace since July, with lower wage growth contributing to a four-month low in cost inflation. However, purchase prices continued to climb, partly due to a stronger US dollar.

Firms remained cautious about future business activity. Output expectations for the year ahead, at 50.5, was the second-lowest the series’ history.

Topics: Egypt economy Egypt PMI

Oil Updates – prices nudge higher ahead of OPEC+ meeting

Updated 03 December 2024

Reuters

December 03, 2024 10:49

Oil Updates – prices nudge higher ahead of OPEC+ meeting

Updated 03 December 2024

Reuters

December 03, 2024 10:49

SINGAPORE: Oil prices nudged higher on Tuesday but remained within a narrow trading range, as traders awaited the outcome of an OPEC+ meeting later this week.

Brent crude futures rose 31 cents, or 0.4 percent, to $72.14 a barrel by 10:04 a.m. Saudi time, after dropping 1 cent in the previous session. US West Texas Intermediate crude climbed 26 cents, or 0.4 percent, to $68.36, following a 10 cent gain on Monday.

Sources from the producer group said it will extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting.

“Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC+ production cuts till April,” Goldman Sachs analysts said in a note.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been looking to unwind production cuts by the first quarter of 2025. However, the outlook for surplus supply has put pressure on prices. The group accounts for about half of the world’s oil production.

“I think there’s no other option but to defer it,” Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that it could only be for just a month or so as there is a lot of pressure from participating nations to ramp up output.

Amid a lack of bullish catalysts and lacklustre demand, Sachdeva expects oil prices to trade in a limited range with a bias toward the downside.

The consumption outlook remains weak with China’s crude imports expected to peak as soon as next year as transport fuel demand begins to decline for the world’s top crude buyer, researchers and analysts said, further exacerbating the gap between demand and supply.

Concerns that the US Federal Reserve may not cut rates at its December meeting have also capped oil prices, offsetting positive signals from China, where the purchasing managers’ index rose to a seven-month high in November.

Oil prices on both sides of the Atlantic fell more than 3 percent last week.

Federal Reserve Governor Christopher Waller, whose views are often a bellwether for US monetary policy, said he was inclined to support another rate cut this month, but Atlanta Federal Reserve President Raphael Bostic maintained that the Fed still needed to consider upcoming jobs data.

In the Middle East, holes continued to appear in a US-brokered ceasefire between Israel and militant group Hezbollah, with nine people killed in strikes on two southern Lebanese towns shortly after Hezbollah fired missiles on an Israeli military position in the disputed Shebaa Farms area on Monday.

US crude oil stockpiles are expected to have fallen last week while gasoline and distillate inventories likely rose, a preliminary Reuters poll showed on Monday. The American Petroleum Institute and Energy Information Administration will release weekly data on Tuesday and Wednesday, respectively.

Topics: oil updates oil prices

Saudi PMI hits 59 in November as non-oil sector grows

Updated 03 December 2024

SYED AMEEN KADER

December 03, 2024 09:42

Saudi PMI hits 59 in November as non-oil sector grows

Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns
Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads

Updated 03 December 2024

SYED AMEEN KADER

December 03, 2024 09:42

RIYADH: Saudi Arabia’s non-oil private sector ended November with robust momentum, as business activity expanded at its fastest pace since July 2023, latest business survey showed.

The Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 59.0 in November from 56.9 in October, marking the fourth consecutive monthly increase, buoyed by accelerated growth in new orders, purchasing activity, and staff recruitment.

The headline PMI — calculated as a weighted average of sub-indices covering new orders, output, employment, supplier delivery times, and stock levels — reflected a substantial improvement in operating conditions, with all five components contributing to the uptick.

Naif Al-Ghaith, chief economist at Riyad Bank, said: “The strong growth in Saudi Arabia’s non-oil private sector helped the PMI to reach 59.0 in November, demonstrating the continued success of economic diversification efforts.”

He added: “This robust expansion, marked by accelerated output and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independently of oil price fluctuations.”

Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns. New order inflows, including foreign sales, rebounded after a modest pullback in the previous survey period.

Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads.

“Employment growth indicates a rising capacity of non-oil sectors to absorb labour, further supporting socioeconomic objectives like increasing national employment,” Al-Ghaith noted.

Firms ramped up input purchases at the strongest rate since March to build inventories in anticipation of higher sales. However, this strained supply chains, resulting in the slowest improvement in vendor performance in 15 months.

Inflationary pressures

The report noted that the sector’s rapid expansion brought inflationary pressures to the forefront. Input costs rose at the sharpest pace in over four years, driven by higher wages, geopolitical tensions, and increased transport costs. Wage inflation hit a ten-year high, while firms raised their selling prices at the fastest rate since January to offset these pressures.

“Stronger purchasing activity and inventory expansion suggest businesses are gearing up for continued growth in demand,” Al-Ghaith said.

“This performance aligns with broader economic trends showing Saudi Arabia’s ability to attract foreign investments, boost consumer confidence, and enhance trade partnerships,” he added.

The strong November PMI underscores the resilience of Saudi Arabia’s non-oil economy despite global uncertainties. Companies remain optimistic about future growth, supported by government initiatives to diversify the economy under Vision 2030.

“Maintaining this momentum will be essential to achieving Vision 2030 goals and ensuring long-term economic growth,” Al-Ghaith concluded.

Topics: PMI Riyad Bank manufacturing

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Saudi commerce minister speaks of shift in trade focus at World Economic Forum

Saudi investment minister: Energy, stability key to future Gulf prosperity

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

AI will help Saudi Arabia achieve ambitious growth targets: expert

AI will help Saudi Arabia achieve ambitious growth targets: expert

How AI could help keep Saudi Arabia’s homes safer

Saudi AI authority reports Kingdom’s major advancements ahead of global summit

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

IMF mission concludes visit to Egypt for the 4th review of loan program

Saudi PMI hits 59 in November as non-oil sector grows

Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – crude rises on upbeat China data, shaky Israel-Lebanon ceasefire

Oil Updates – prices set to end week over 3% lower as supply risks ease

Saudi PMI hits 59 in November as non-oil sector grows

Saudi PMI hits 59 in November as non-oil sector grows

Saudi PMI reveals strong non-oil sector performance, despite price pressures

Saudi PMI rises to 57.2 in September as non-oil private sector grows

Latest updates

How French and Saudi architects are redesigning the cities of tomorrow

Cambodian court jails 13 pregnant Filipino surrogates

Riyadh to host talks on philosophy, quality of life

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

Japanese artist Takayuki Mori’s interpretation of Saudi culture on display at Noor Riyadh

Recommended

What to expect from French President Emmanuel Macron’s state visit to Saudi Arabia

Will shaky ceasefire hold in Lebanon as tensions simmer in the neighborhood?

How researchers in Saudi Arabia are turning desalination waste into valuable resources

Search form

Print Edition

Search form

Search form

You are here

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Saudi EXIM Bank and SABIC sign letter of credit insurance policy

Related

Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

AI will help Saudi Arabia achieve ambitious growth targets: expert

Related

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Related

Oil Updates – prices nudge higher ahead of OPEC+ meeting

Related

Saudi PMI hits 59 in November as non-oil sector grows

Related

Latest updates

Recommended

Search form

Print Edition