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SAR, Maersk collaborate to increase container transport via trains 

SAR, Maersk collaborate to increase container transport via trains 
The deal, signed by SAR’s CEO, Bashar bin Khalid Al-Malik, and Maersk Saudi Arabia’s CEO, Mohammad Shihab, aims to increase the movement of containers between the two points. It intends to provide innovative transport solutions that enhance the Kingdom’s competitiveness. SPA
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Updated 10 March 2024
Arab News
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SAR, Maersk collaborate to increase container transport via trains 

SAR, Maersk collaborate to increase container transport via trains 
Updated 10 March 2024
Arab News
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RIYADH: The transport network between the Dammam and Riyadh ports is poised for improvement as Saudi Railways Co. partners with shipping firm Maersk to increase container movement via trains.

SAR has signed a three-year contract with the Danish shipping firm to increase the number of containers transported via its trains between King Abdulaziz Port in Dammam and Riyadh Dry Port.

The deal, signed by SAR CEO Bashar bin Khalid Al-Malik and Maersk Saudi Arabia’s CEO Mohammad Shihab, aims to increase the movement of containers between the two points. It intends to provide innovative transport solutions that enhance the Kingdom’s competitiveness, according to the Saudi Press Agency.

The agreement aligns with the National Transport and Logistics Strategy, a key component of the country’s Vision 2030. It directly improves the country’s rankings on the Logistics Performance Index and enhances operational efficiency. The initiative also reduces truck traffic between Dammam and Riyadh, lowers carbon emissions, and maintains road infrastructure and safety, the SPA report added.

Al-Malik emphasized that partnering with one of the world’s largest shipping companies strengthens the nation’s logistics sector and its services. 

“The agreement also highlights SAR’s commitment to delivering innovative, safe, and sustainable transport solutions aimed at enhancing operational efficiency at King Abdulaziz Port in Dammam and the Riyadh Dry Port. These efforts accelerate container movements for both exports and imports, thereby enhancing the Kingdom’s logistics performance,” Al-Malik- said.

Shihab also expressed confidence that the deal will effectively facilitate collaborative solutions between Maersk and SAR for digital transformation and sustainable logistics.

“This will raise the status of King Abdulaziz Port as a regional hub for global trade routes from the East to local markets, with potential expansion to other countries in the region in the near future,” he said.

Focusing on directly integrating with global shipping lines to boost efficiency in logistical operations, SAR has recently signed numerous agreements and memorandums of understanding with local and international entities.

According to SAR’s official website, the cargo route extends over 566 km, starting from King Abdul Aziz Port in Dammam and reaching its destination in Riyadh, making stops in Al-Ahsa, Abqaiq, Al-Kharj and Haradh, as well as Al-Tawdhihiyah. 

Topics: SAR shipping ports

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

 UK firms to expand businesses in Saudi Arabia amid top ministerial meeting 
Updated 5 sec ago
REEM WALID 
Reem Walid
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 UK firms to expand businesses in Saudi Arabia amid top ministerial meeting 

 UK firms to expand businesses in Saudi Arabia amid top ministerial meeting 
Updated 5 sec ago
REEM WALID  Reem Walid

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

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

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

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

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

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

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

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

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

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

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

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

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

Topics: main UK-Saudi relations Minister of Commerce and Investment Majid Al-Qasabi UK Secretary of State for Business and Trade Jonathan Reynolds UK Secretary of State for Business and Trade Jonathan Reynolds

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

UAE banking sector’s liquid assets surpass $218bn: CBUAE 
Updated 48 min 4 sec ago
MIGUEL HADCHITY 
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UAE banking sector’s liquid assets surpass $218bn: CBUAE 

UAE banking sector’s liquid assets surpass $218bn: CBUAE 
Updated 48 min 4 sec ago
MIGUEL HADCHITY 

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

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

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

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

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

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

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

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

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

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

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

Topics: Finance UAE banking Central Bank of the UAE

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Oil Updates – prices climb on US output concerns, potential crude inventory drop

Oil Updates – prices climb on US output concerns, potential crude inventory drop
Updated 17 September 2024
Reuters
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Oil Updates – prices climb on US output concerns, potential crude inventory drop

Oil Updates – prices climb on US output concerns, potential crude inventory drop
Updated 17 September 2024
Reuters

SINGAPORE: Oil prices extended gains on Tuesday as the market eyed US output concerns in the aftermath of Hurricane Francine and expectations of lower US crude stockpiles.

Brent crude futures for November were up 36 cents, or 0.5 percent, at $73.11 a barrel, as of 9:35 a.m. Saudi time. US crude futures for October climbed 53 cents, or 0.8 percent, to $70.62 a barrel.

Both contracts settled higher in the previous session as the impact of Hurricane Francine on the output in the US Gulf of Mexico countered Chinese demand concerns ahead of the US Federal Reserve’s interest rate cut decision this week, which should prove positive for investor sentiment in oil.

More than 12 percent of crude production and 16 percent of natural gas output in the US Gulf of Mexico remained offline, according to the US Bureau of Safety and Environmental Enforcement on Monday.

“Oil prices managed to recover slightly ... (An) extreme bearish state over the past weeks called for some near-term stabilization, with prices previously touching their lowest level since 2021,” said Yeap Jun Rong, market strategist at IG.

“But a weaker-than-expected run in China’s economic data lately could still be a source of caution, while the lead-up to the upcoming FOMC interest rate decision may limit some risk-taking,” Yeap added, referring to the Federal Open Market Committee.

The Fed is expected to start its easing cycle on Wednesday, with Fed funds futures showing markets are now pricing in a 69 percent chance the central bank will cut rates by 50 basis points.

“Growing expectations of an aggressive rate cut boosted sentiment across the commodities complex,” ANZ analysts said in a note, adding that supply disruptions also supported oil markets.

A lower interest rate will reduce the cost of borrowing and can potentially lift oil demand by supporting economic growth.

Investors also eyed an expected drop in US crude inventories, which likely fell by about 200,000 barrels in the week ended Sept. 13, based on a Reuters poll.

Still, lower-than-expected demand growth in China, the world’s largest crude importer, have capped price gains. China’s oil refinery output fell for a fifth month in August amid declining fuel demand and weak export margins, government data showed on Saturday.

Topics: energy oil updates oil prices

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Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes

Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes
Updated 17 September 2024
Reuters
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Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes

Wizz Air expects 15-20% growth in passenger volume next year thanks to Mid East routes
Updated 17 September 2024
Reuters

ABU DHABI, Sept 16 : Wizz Air expects 15-20 percent growth in passenger volume next year, its CEO told Reuters, with new low-cost routes to the Middle East, such as from Europe to the UAE, adding an extra boost.

“Globally, we are expecting 15-20 percent (growth), but I think Abu Dhabi is going to grow beyond this,” Jozsef Varadi said.

Hungary-based Wizz Air, which carried a record 62 million passengers during the year ended in March 2024, set up operations in the UAE in 2019 as a joint venture with Abu Dhabi’s third biggest sovereign wealth fund ADQ.

In the Middle East, where concerns of a wider flare up of the war in Gaza have prompted international airlines to suspend flights or avoid air space, Wizz Air is monitoring every development, Varadi said.

He added that Wizz Air wants to develop Saudi Arabia as an inbound market rather than setting up a local carrier there.

The airline, which flies an all-Airbus fleet, last week announced it would deploy its first A321XLR, a single-aisle aircraft that will allow it to cover longer distances, to operate a route between London’s Gatwick airport and Saudi Arabia’s Jeddah starting from March 2025.

Another A321XLR aircraft will operate a daily flight between Milan Malpensa airport and Abu Dhabi starting from June next year.

“Certainly we are very excited about Jeddah,” Varadi said. “We are seeing that more European operations might be flown inbound to Saudi in the future.”

He said, however, that all new routes were subject to regulatory approvals and capacity constraints due to troubles with Pratt & Whitney engines, which forced

Wizz Air to ground part of its fleet, contributing to a 44 percent drop in first-quarter operating profit.

As the aviation sector struggles with delays from manufacturers Boeing and Airbus, European airlines have also faced a difficult first half of the year because of rising and softening demand after an initial post-pandemic boom.

Wizz Air’s London-listed shares dropped almost 42 percent over the last 12 months.

“I don’t think that the share price is reflective of the actual performance of the business,” said Varadi.

He said the market was over-reacting and Wizz Air was being “disproportionately affected” by factors such as geopolitics and problems with Pratt and Whitney’s engines.

Asked about fares, Varadi said summer data showed Wizz Air was not seeing as huge price declines as those that some rivals had flagged.

Topics: Tourism & Transport Wizz Air Saudi aviation

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Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal

Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal
Updated 16 September 2024
Nour El-Shaeri
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Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal

Ma’aden, Bahrain’s Alba to form global aluminum powerhouse with new deal
Updated 16 September 2024
Nour El-Shaeri

RIYADH: Saudi Arabian Mining Co., known as Ma’aden, has signed a non-binding agreement with Aluminium Bahrain B.S.C., or Alba, to potentially create a global aluminum producer.

The agreement, dated Sept. 16, outlines plans to merge Ma’aden’s aluminum operations with Alba’s, forming a force in the global aluminum market.

The deal aims to leverage over 75 years of combined operational and financial expertise to enhance their competitive edge on the global stage, according to a press release.

Under the terms of the agreement, Ma’aden will transfer the entire share capital of Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to Alba, including the rights to market and sell products from Ma’aden Aluminum Co.

In exchange, Ma’aden will acquire newly issued shares in Alba. The specifics regarding the number of shares and Ma’aden’s ownership stake in Alba will be determined at a later date, as noted in a bourse filing.

This announcement comes on the heels of a deal made just a day earlier, in which US industrial giant Alcoa Corp. agreed to sell its stakes in Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to Ma’aden.

In this transaction, Alcoa will receive $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma’aden’s share capital after the deal is completed.

The agreement with Alba also includes the possibility of a cross-listing on the Saudi Stock Exchange, pending further negotiations. The deal is effective immediately and will remain valid until Dec. 31.

It aligns with Ma’aden’s growth and sustainability strategy, aiming to strengthen its presence in Saudi Arabia and the broader Middle East region.

“Harnessing the combined scale and expertise of both businesses to forge a new global champion will not only advance Ma’aden’s ambitions for aluminum but also significantly boost the economic ties between Bahrain and Saudi Arabia,” Ma’aden CEO Bob Wilt said.

“By bringing together two of the region’s most experienced players in the sector, we are setting the stage for stronger economic growth, enhanced job creation, and increased aluminum production capacity. This partnership will elevate our competitive edge on a global scale,” he added.

Echoing Wilt’s sentiments, Alba Chairman Khalid Al-Rumaihi said this partnership will cement the company’s position as the largest regional aluminum producer.

“Our partnership will not only deepen the strong ties between Bahrain and Saudi Arabia but also contribute to Bahrain’s economic diversification and job creation. This is a compelling proposition and an exciting moment for Alba, Ma’aden, and our respective stakeholders, and we look forward to sharing further updates in due course,” Al-Rumaihi said.

The financial impact of the transaction will be assessed following a comprehensive due diligence process.

Completion of the deal is not guaranteed and depends on the satisfactory conclusion of financial, tax, legal, technical, and commercial evaluations, as well as obtaining necessary regulatory and corporate approvals.

Ma’aden has engaged Merrill Lynch Kingdom of Saudi Arabia as its financial adviser and AS&H Clifford Chance as its legal adviser. Alba has appointed Moelis & Co. UK LLP as its financial adviser.

This development comes as Ma’aden reports strong financial performance, with a net profit of SR2 billion ($532 million) for the first half of the year, marking a 160 percent increase compared to the same period in 2023.

Topics: main

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