UK and Turkiye launch talks on a new free trade deal 

UK and Turkiye launch talks on a new free trade deal 
Britain already has an FTA with Turkiye, which was rolled over when Britain left the EU, but a review by both sides last year concluded there was room for improvement under a new deal. Shutterstock
Short Url
Updated 14 March 2024
Follow

UK and Turkiye launch talks on a new free trade deal 

UK and Turkiye launch talks on a new free trade deal 

LONDON: The UK and Turkiye will formally launch negotiations on a new Free Trade Agreement on Thursday with a view to including services as well as goods in a new deal. 

Britain already has an FTA with Turkiye, which was rolled over when Britain left the EU, but a review by both sides last year concluded there was room for improvement under a new deal. 

“We already have a thriving trade relationship that will only get stronger with a new, modernised trade deal,” Trade Secretary Kemi Badenoch said in a statement. 

Badenoch said a new deal could give Britain’s services sector “a competitive edge in this growing market and has the potential to support jobs across the UK.” 

The trade ministry said the first round of negotiations with Turkiye, a NATO ally, was expected to take place in the summer. 

Any deal could increase access for British consumers to Turkish goods such as bulgur wheat and tomatoes, as well as provide opportunities for British firms to increase services industry exports. 

Britain is currently in trade talks with the likes of India, the Gulf Cooperation Council and South Korea. Talks on a new FTA with Canada were put on hold earlier this year after the two sides failed to agree on removing barriers for agriculture. 


Saudi Arabia calls for robust action against land degradation

Saudi Arabia calls for robust action against land degradation
Updated 48 sec ago
Follow

Saudi Arabia calls for robust action against land degradation

Saudi Arabia calls for robust action against land degradation
  • Kingdom’s incoming UNCCD presidency aims to increase the number of participating countries and the ambition of their goals
  • More than 71,000 square km of land expected to face deterioration before the Dec. 2nd start of the conference

RIYADH: Saudi Arabia is encouraging urgent action to combat drought, as vast areas of land — larger than the size of Ireland — are projected to face degradation globally in the near future.

With less than one month remaining until the 16th session of the Conference of Parties of the UN Convention to Combat Desertification begins in Riyadh, the Kingdom’s incoming UNCCD presidency has urged the international community to take decisive measures on drought resilience and land restoration. 

Recent data underscores the urgency of this appeal, with more than 71,000 square km of land expected to face deterioration before the Dec. 2nd start of the conference, according to the UNCCD. 

“COP16 in Riyadh is a critical moment for the international community to address land degradation if we are to meet the UNCCD target of restoring 1.5 billion hectares of land by 2030,” said the Deputy Minister for Environment at the Ministry of Environment, Water and Agriculture and adviser to the COP16 presidency, Osama Faqeeha. 

Faqeeha added: “As the hosts, we are calling for all parties to come to Riyadh ready to increase their ambition by strengthening land restoration targets, bolstering drought resilience initiatives, and enhancing land tenure rights.” 

Since 2015, countries have been aligning with voluntary Land Degradation Neutrality targets as part of the UN Sustainable Development Goals. 

Over 130 nations have engaged in the LDN Target Setting Programme, with more than 100 already defining their objectives.

Saudi Arabia’s incoming UNCCD presidency aims to increase the number of participating countries and the ambition of their goals. 

The UNCCD has estimated that more than $44 trillion in economic output, representing over half of global gross domestic product, is moderately or highly dependent on natural capital. 

Restoration investments are highlighted as economically beneficial, with projections that each dollar invested could yield up to $30 in returns, presenting a significant opportunity for a trillion-dollar restoration economy. 

COP16 in Riyadh will mark the first time the UNCCD will introduce a Green Zone, a dedicated space for businesses, scientists, and financial institutions, as well as NGOs, the public, and impacted communities to collaborate on sustainable solutions. 

The conference will also feature seven thematic days focused on key topics such as land restoration, governance, and agri-food systems, as well as resilience, finance, and advancements in science, technology, and innovation. 


Oman’s oil exports hit 230.6m barrels by September: official data

Oman’s oil exports hit 230.6m barrels by September: official data
Updated 13 min 8 sec ago
Follow

Oman’s oil exports hit 230.6m barrels by September: official data

Oman’s oil exports hit 230.6m barrels by September: official data

JEDDAH: Oman’s oil exports totaled approximately 230.6 million barrels by the end of September, averaging $82.60 per barrel and accounting for 84.6 percent of total production, which exceeded 272.4 million barrels.

According to statistics from the country’s National Center for Statistics and Information, as reported by the state news agency, oil exports increased by 0.1 percent compared to September 2023, when total exports were nearly 230.3 million barrels. This rise occurred alongside a 5.1 percent decrease in production, which was recorded at over 287 million barrels during the same period last year.

Total crude oil production declined by 6.7 percent, reaching over 208.5 million barrels by the end of September, while condensate production saw a slight increase of 0.6 percent, totaling more than 63.86 million barrels. The NCSI noted that the average daily oil production was 994,200 barrels through the end of September.

The World Bank forecasts Oman’s economic growth will rise to 2.7 percent in 2025 and 3.2 percent in 2026, driven by a rebound in oil and gas production as the Duqm refinery reaches full capacity, alongside a revival in agricultural and construction activities and a strong services sector.

The report also indicated that inflation is expected to remain low, averaging 1.3 percent from 2024 to 2026, largely due to the country’s currency being pegged to the US dollar and regulated fuel prices.

According to the Oman News Agency, China was the top importer of Omani oil, with imports totaling approximately 219.6 million barrels, marking a 4.5 percent increase compared to September 2023.

Japan followed with nearly 4 million barrels, a decline of 46.4 percent, while South Korea imported around 3.8 million barrels, an increase of 31.8 percent. Exports to India totaled 2,002,000 barrels, down 26.3 percent.

Overall, Oman’s oil exports during the first half of 2024 increased by 0.3 percent to 153,362,300 barrels, with the average price per barrel at $82.20, according to the NCSI.

Oil exports constituted 84.6 percent of the total oil production volume, which was over 181 million barrels, down 5.3 percent from 191.4 million barrels in the same period in 2023. Total crude oil production also fell by 7.4 percent to over 138.7 million barrels by the end of the first half of 2024, while oil condensate production rose by 2.3 percent to 42.5 million barrels. The average daily oil production at that time was reported at 842,700 barrels. During this period, China remained the leading country importing oil from Oman, with nearly 148 million barrels.


Saudi Arabia’s PIF to acquire 54% stake in MBC Group

Saudi Arabia’s PIF to acquire 54% stake in MBC Group
Updated 03 November 2024
Follow

Saudi Arabia’s PIF to acquire 54% stake in MBC Group

Saudi Arabia’s PIF to acquire 54% stake in MBC Group
  • Share price of MBC Group increased by 9.98% to SR45.75
  • Its net profit for the second quarter witnessed a rise of 66.5% to SR116.4 million

RIYADH: Saudi Arabia’s sovereign wealth fund is set to acquire a 54 percent stake in media giant MBC Group for SR7.46 billion ($1.99 billion). 

In a bourse filing, MBC Group, listed on the Kingdom’s main market, said that it was notified by Istedamah Holding Co., one of its major shareholders, on the finalization of a sale and purchase agreement with the Public Investment Fund on Nov. 1.

According to the agreement, Istedamah will sell its entire stake in MBC, valued at 179.55 million shares, representing 54 percent of the company’s total capital, to PIF through a private transaction. 

Touted to be Saudi Arabia’s economic engine, PIF is spearheading the Kingdom’s Vision 2030 journey by making strategic investments in various sectors. 

Some prominent telecom, media, and technology firms backed by the wealth fund include Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., Elm Co., and Saudi Telecom Co. 

“The completion of the transaction is subject to a number of conditions, including obtaining the necessary approvals and non-objections that might be required from the relevant entities,” said MBC Group. 

It added: “The transaction will be executed as a negotiated deal in accordance with the Saudi Exchange’s trading and membership procedures at the completion of the transaction.” 

Followiing the announcement, the share price of MBC Group increased by 9.98 percent to SR45.75 as of 11:.37 a.m. Saudi time. 

Established in 1991 and formerly known as the Middle East Broadcasting Center, MBC Group currently owns several television channels, including Al Arabiya, MBC Max, and MBC Bollywood, as well as the OTT platform Shahid. 

In August, the media giant said its net profit for the first six months of this year surged 359.8 percent to SR237.8 million compared to the same period in 2023. 

The company added that its net profit for the second quarter witnessed a rise of 66.5 percent to SR116.4 million, compared to the same period of the previous year. 

PIF is set to reach $2 trillion in assets under management by 2030, propelling it from fifth to second place globally among sovereign wealth bodies, according to a report by Global SWF in April. 

As per SWF’s release, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals in 2023, representing a 33 percent increase from the prior year.

In March, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth-largest global sovereign wealth fund. 


Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism

Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism
Updated 03 November 2024
Follow

Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism

Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism

JEDDAH: Saudi Arabia has made a remarkable leap, climbing 15 places to rank 12th in global tourist spending for 2023, according to the latest UN Tourism report. This is the largest jump among the top 50 countries.

The ranking follows a September report from the UN Tourism, which highlighted the Kingdom’s leadership among G20 nations with a 73 percent increase in international visitor growth and a staggering 207 percent rise in international tourism receipts from January to July 2024 compared to the same period in 2019.

These achievements reinforce Saudi Arabia’s status as a premier global tourism destination, showcasing travelers’ growing confidence in the Kingdom's diverse and appealing offerings. In a bid to capitalize on this momentum, the tourism sector has raised its target for 2030 from 100 million to 150 million visitors, with potential for further increases if this goal is met ahead of schedule, according to Mahmoud Abdulhadi, deputy minister of destination enablement at the Ministry of Tourism.

Speaking at the Future Hospitality Summit in Riyadh last week, Abdulhadi noted that targets are continually assessed and adjusted based on sector performance.

The UNWTO praised the Kingdom’s tourism progress as a “significant milestone” in its quest to become a global leader in the industry. The report indicated that tourism-related spending surpassed $37 billion in 2023, accompanied by substantial growth in hotel capacity across the country.

In the first seven months of 2024, Saudi Arabia welcomed approximately 17.5 million international tourists. For 2023, the Kingdom hosted 27.4 million visitors, marking a 56 percent increase from 2019. This surge has placed Saudi Arabia at the top of the UN’s list for tourism growth among major destinations.

Additionally, the Kingdom’s tourism surplus reached a record SR48 billion ($12.8 billion) in 2023, a 38 percent year-on-year increase.

The International Monetary Fund, in its 2024 Article IV Consultation report released in September, commended the significant progress made by Saudi Arabia’s tourism sector under the Saudi Vision 2030 initiative. The IMF underscored the sector’s vital role in diversifying the Kingdom’s economic base, particularly within the services sector, where it has become a key growth driver in terms of visitor numbers, spending, job creation, and contribution to GDP.

According to the latest UNWTO Barometer report, global international tourist arrivals have rebounded to 96 percent of pre-pandemic levels from January to July 2024, totaling approximately 790 million — an 11 percent increase compared to the same period in 2023. The UNWTO also noted that the Middle East led global growth with a 26 percent rise in international arrivals compared to 2019 levels.


Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return
Updated 03 November 2024
Follow

Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return

RIYADH: Saudi Arabia has launched the ninth round of its subscription-based savings product, Sah, for November, offering a competitive return of 4.89 percent.

This initiative aims to promote financial stability and growth among citizens.

The Shariah-compliant, government-backed sukuk began on Nov. 3 and will remain open until Nov. 5. Redemption amounts are expected to be paid within a year, as announced by the National Debt Management Center on X.

Organized by the NDMC and issued by the Ministry of Finance, these fee-free savings products provide low-risk returns and are available through the digital platforms of various approved financial institutions.

Sah is the first savings product specifically designed for individuals, taking the form of bonds within the Kingdom’s local bonds program, denominated in Saudi riyals. It supports the Financial Sector Development Program, part of Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international standard of 10 percent by 2030.

The minimum subscription amount is set at SR1,000 ($266), corresponding to the value of one bond, while the maximum is SR200,000 for total issuances per user during the program period. The product is aimed at individuals, with monthly returns provided according to the issuance calendar.

The saving period lasts one year, with a fixed return, and accrued yields are disbursed at the end of the sukuk’s term. Future returns will be influenced by month-to-month market conditions.

The product is open to Saudi nationals aged 18 and above, who must open an account with one of the following: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.

In October, the Kingdom launched its eighth round of the Sah program, offering a 4.92 percent return, while the seventh round in September provided a return of 5.31 percent.

NDMC CEO Hani Al-Medaini has emphasized that the sukuk aims to foster private sector collaboration. Future initiatives will focus on developing tailored savings products for various individual categories through banks, fund managers, fintech companies, and other institutions.

Al-Medaini noted that the issuance of Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion, ensuring access to products and services that meet the needs of individuals, such as savings accounts like Sah.