Bahrain’s economy shows resilience with 2.4% growth, official data shows
Updated 09 April 2024
Arab News
RIYADH: Bahrain’s economy registered an annual increase of 2.4 percent in 2023 to hit 13.66 billion dinars ($36.24 billion), driven by financial project expansions, official data showed.
According to figures from the Information and eGovernment Authority, national account estimates indicate that these developments contributed 17.8 percent to the real gross domestic product, making them one of the largest non-oil sectors, followed by the manufacturing industry at 13.6 percent.
The rise reflects Bahrain’s diversification efforts, aligning with the country’s Economic Vision 2030, a comprehensive development plan aimed at transforming the economy.
The report also revealed that the sectors with the highest non-oil growth were the hotels and restaurants sector, with a growth rate of 8 percent. This was followed by government services with a growth rate of 6 percent, and financial projects with a rate of 5.7 percent at constant prices.
While comparing the estimates of the fourth quarter of 2023 with the corresponding quarter of 2022, positive growth in GDP is evident, estimated at 3.45 percent and 3.36 percent at constant and current prices, respectively.
The non-oil sector recorded a growth of 4.03 percent at constant prices and 3.89 percent at current prices.
While comparing the economic performance of the final quarter of 2023 with the third quarter, a real growth in Bahrain’s GDP by an estimated rate of 4.61 percent is disclosed.
On a quarter-on-quarter basis, Bahrain recorded a real growth in GDP by an estimated rate of 4.61 percent in the final three months of 2023.
This is primarily attributed to the rise achieved by the non-oil sector, which grew by 5.14 percent at constant prices and 6.19 percent at current prices.
Meanwhile, investments in financial services helped Bahrain register a 55 percent year-on-year increase in funding during 2023, as reported by the country’s official news agency in February. This surge led to the securing of a record $1.7 billion across its economy.
According to the Bahrain News Agency, this “massive influx” generated by the country’s Economic Development Board stemmed from 85 local and international projects. These deals are projected to generate more than 5,700 jobs over a three-year period.
COP16: Over $12bn pledged for drought resilience and land restoration on 2nd day
Updated 19 sec ago
SYED AMEEN KADER
RIYADH: More than $12 billion has been pledged for drought resilience, land restoration, and combating land degradation at the 16th Conference of the Parties to the UN Convention to Combat Desertification.
The Arab Coordination Group contributed an additional $10 billion to address desertification, land degradation, and drought, according to a press release.
This follows the launch of the Riyadh Global Drought Resilience Partnership, with $1 billion each from the OPEC Fund and Islamic Development Bank, and $150 million from Saudi Arabia.
The pledges were made during the Ministerial Dialogue on Finance, a key segment of COP16 focused on unlocking public and private sector funding.
“With over $12 billion pledged for major land restoration and drought resilience initiatives in just the first two days, COP16 in Riyadh is already proving a landmark moment in the fight against drought,” said Osama Faqeeha, deputy minister for Environment, Ministry of Environment, Water and Agriculture, and advisor to the UNCCD COP16 Presidency.
“I hope this is just the beginning, and over the coming days and weeks, we see further contributions from international private and public sector partners, that further amplify the impact of vital drought resilience and land restoration initiatives,” Faqeeha added.
He also called for the redirection of Official Development Assistance funds to address land degradation and drought. “As shown by the UNCCD’s latest report, there is a dire need for additional international funding,” Faqeeha added.
Speaking on behalf of the Arab Coordination Group, Muhammad Al-Jasser, chairman of the Islamic Development Bank Group, said: “Recognizing the critical role of finance in advancing these efforts, we commit to allocate up to $10 billion in financing approvals by 2030. These funds will target global land restoration, desertification prevention, and nature positive development projects aligned with the objectives of the Riyadh Global Drought Resilience Partnership.”
The UNCCD’s latest financial needs assessment report revealed that $355 billion annually is required from 2025 to 2030 to meet land restoration targets, but only $77 billion in investments are projected.
On the second day of COP16 in Riyadh, the UNCCD released its financial needs assessment report, which also highlighted the private sector’s limited involvement. It contributes just 6 percent of global funding, despite the potential to generate up to $1.8 trillion annually from restoring over one billion hectares of land.
As COP16 progresses, there is growing pressure for international stakeholders to close the financing gap and accelerate efforts to combat land degradation and boost drought resilience.
Aramco, Linde, and SLB partner on major carbon capture hub in Jubail
Under the agreement, Aramco will hold a 60 percent equity stake, with Linde and SLB each owning 20 percent
The initiative supports Aramco’s broader ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050
Updated 22 min 45 sec ago
SYED AMEEN KADER
RIYADH: Saudi energy giant Aramco has signed a shareholders’ agreement with Linde and SLB to advance the development of a major carbon capture and storage hub in Jubail,
Under the agreement, Aramco will hold a 60 percent equity stake, with Linde and SLB each owning 20 percent, according to a press release.
Located in Saudi Arabia’s Eastern Province, the project is set to be among the largest of its kind globally. It marks a critical step toward Aramco’s emission mitigation goals and aligns with its 2035 interim climate objectives.
Phase one of the hub aims to capture and store up to 9 million tonnes of CO2 annually, with construction expected to be completed by the end of 2027. Future phases will further expand its capacity.
“CCS plays a critical role in furthering our sustainability ambitions and our new energies business. This announcement represents a step forward in delivering on our strategy to contribute to global carbon management solutions and achieve our emission mitigation goals,” said Ashraf Al-Ghazzawi, executive vice president of strategy & corporate development at Aramco.
He added: “Aramco’s collaboration with SLB and Linde demonstrates the importance of global partnerships in driving technological innovation, reducing emissions from conventional energy sources and enabling new, lower-carbon energy solutions.”
Executives from Aramco, Linde, and SLB at the signing ceremony. Supplied
The executive noted that the CCS hub was among several programs that would enable them to meet the rising demand for affordable, reliable, and more sustainable energy.
The initiative supports Aramco’s broader ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned operated assets by 2050, as well as its interim target to reduce upstream carbon intensity by 15 percent by 2035.
Oliver Pfann, Linde’s executive vice president for Europe, the Middle East and Africa, noted the project’s significance to Saudi Arabia’s climate goals. “Carbon capture and sequestration is essential for achieving the Kingdom’s emission reduction targets. Linde is proud to collaborate with Aramco and SLB, contributing Linde’s innovative technology and experience in delivering world-scale decarbonization projects,” he said.
Announced during the Saudi Green Initiative Forum in Riyadh, the project reflects Saudi Arabia’s commitment to achieving its 2060 net-zero target.
Phase one will capture CO2 from three Aramco gas plants and other industrial sources. The CO2 will be transported through a pipeline network and stored in a saline aquifer, leveraging the region’s geological capacity for carbon storage.
Gavin Rennick, SLB’s president of new energy, highlighted the hub’s potential to reduce emissions. “Leveraging our proven portfolio of CCS technologies and extensive experience in complex CCS projects around the world, we are confident that SLB will play a critical role in advancing this important initiative. This project aligns perfectly with our commitment to industrial decarbonization, and we look forward to collaborating closely with Aramco and Linde to make it a success.”
The hub also complements Aramco’s blue hydrogen and ammonia initiatives, reinforcing its efforts to support a circular carbon economy and contribute to the Kingdom’s energy transition.
Oil Updates — prices inch up on geopolitical tensions, OPEC+ supply plans
Brent crude futures rose 23 cents, or 0.3%, to $73.85 a barrel
Analysts expect a 700,000 barrel decline in crude and a 639,000-barrel increase in gasoline
Updated 04 December 2024
Reuters
SINGAPORE: Oil prices firmed on Wednesday as market participants weighed up geopolitical tensions and the prospect of OPEC+ extending supply cuts against weaker demand, according to Reuters.
Brent crude futures rose 23 cents, or 0.3 percent, to $73.85 a barrel by 10:00 a.m. Saudi time, while US West Texas Intermediate crude futures gained 19 cents, or 0.3 percent, to $70.13.
On Tuesday, Brent posted its biggest gain in two weeks, rising 2.5 percent.
A shaky ceasefire between Israel and Hezbollah, South Korea’s curtailed declaration of martial law and a rebel offensive in Syria that threatens to draw in forces from several oil-producing countries, all lent support to oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Oil markets, however, are largely discounting an abundantly supplied 2025 amid sluggish demand signals from the US and China, the world’s top two economies, she added.
“Weaker demand signals from mainland China are raising concerns about demand in the oil market ... The world’s largest crude oil importer may struggle to maintain its significant share of global demand by 2025.”
Meanwhile, crude oil inventories in the US rose 1.2 million barrels last week, market sources said, citing data from the American Petroleum Institute.
Gasoline inventory also rose, by 4.6 million barrels, even though the week included Thanksgiving when demand typically rises as families travel by car for holiday get-togethers.
Official data on oil stocks from the US Energy Information Administration is due on Wednesday at 6:30 p.m. Saudi time. Analysts polled by Reuters expect a 700,000 barrel decline in crude and a 639,000-barrel increase in gasoline.
Also supporting prices, the Organization of the Petroleum Exporting Countries and allies, or OPEC+, will likely extend output cuts until the end of the first quarter of next year when members meet on Thursday, industry sources told Reuters. OPEC+ has been looking to gradually phase out supply cuts through next year.
“The main issue facing any return of OPEC+ supply is that non-OPEC supply growth in 2025 is expected to eclipse the growth in global oil demand,” said Commonwealth Bank of Australia analyst Vivek Dhar in a note.
“The International Energy Agency expects non-OPEC supply growth, led by the US, Canada, Guyana and Brazil, to increase supply by 1.5 million barrels per day next year. Global oil demand is only expected to lift about 1 million bpd as China’s oil demand is expected to remain subdued.”
In the Middle East, Israel said on Tuesday it would return to war with Hezbollah if their truce collapses, and its attacks would go deeper into Lebanon and target the state itself. The comment followed the deadliest day since Israel and Hezbollah agreed to a ceasefire last week.
In neighboring Syria, rebels advancing against government forces pushed close on Tuesday to the major city of Hama, rebels and a war monitor said, after their surprise capture of Aleppo last week.
Saudi Crown Prince unveils National Red Sea Sustainability Strategy to drive blue economy
Covering 186,000 sq. km and featuring 1,800 km of coastline, the area is home to diverse marine ecosystems, including the world’s fourth-largest barrier reef system and 6.2 percent of global coral reefs
The initiative reflects Saudi Arabia’s broader efforts to integrate environmental sustainability into its economic agenda while developing its marine-based industries
Updated 36 min 13 sec ago
SYED AMEEN KADER
RIYADH: Saudi Crown Prince Mohammed bin Salman has launched the National Red Sea Sustainability Strategy, an initiative aimed at safeguarding the marine environment, supporting local communities, and advancing the Kingdom’s transition to a blue economy.
The strategy is part of Saudi Vision 2030 and ties into national priorities for research, development, and innovation, particularly in environmental sustainability, the Saudi Press Agency reported.
“The Kingdom of Saudi Arabia continues to unleash its enormous economic, geographical and cultural potential, and its pioneering efforts in sustainability and environmental conservation,” said the Crown Prince, who also serves as prime minister and chairman of the Council of Economic and Development Affairs.
He added: “Through this strategy, the Kingdom positions the blue economy as a fundamental pillar of its diversified economy and aspires for the Red Sea region to become a global reference for leading blue economy activities, and for the Kingdom to become a global leader in the field of research, development and innovation in blue economy.”
His Royal Highness the Crown Prince launches the National Red Sea Sustainability Strategy (#NRSSS), which will safeguard the #RedSea and also unlock the vast potential of #SaudiArabia’s blue economy.
Covering 186,000 sq. km and featuring 1,800 km of coastline, the area is home to diverse marine ecosystems, including the world’s fourth-largest barrier reef system and 6.2 percent of global coral reefs.
The strategy outlines measures to protect these resources while developing industries such as ecotourism, fisheries, renewable energy, and water desalination.
By 2030, the plan seeks to expand marine and coastal protected areas from 3 percent to 30 percent, increase the share of renewable energy in the energy mix to 50 percent, and create new jobs in the blue economy. It also aims to protect investments in coastal tourism, which are expected to contribute to the national economy.
The strategy focuses on five main objectives: environmental sustainability, economic development, social development, safety and security, and governance. It includes 48 initiatives designed to balance economic activity with environmental preservation and address climate challenges, the SPA added.
The Crown Prince emphasized the Kingdom’s commitment to a sustainable future for the Red Sea, adding, “We look forward to everyone’s cooperation in protecting our Red Sea coast and the nature and communities that depend on it.”
The initiative reflects Saudi Arabia’s broader efforts to integrate environmental sustainability into its economic agenda while developing its marine-based industries.
How Saudi Arabia and France aligned national visions for prosperity at Riyadh investment forum
Deals struck at Saudi-French Investment Forum deemed an important milestone in bilateral relations
French President Emmanuel Macron highlights the synergy between Saudi Vision 2030 and France 2030
Updated 03 December 2024
Zeina Zbibo
RIYADH: The Saudi-French Investment Forum that took place in Riyadh on Tuesday marked an important milestone in bilateral relations, with the signing of multiple memorandums of understanding and investment agreements worth billions of dollars.
Held to coincide with the state visit of French President Emmanuel Macron, the event brought together officials, policymakers, and business leaders from both nations, aiming to align their national visions for a prosperous future.
In his opening remarks, Saudi Minister of Investment Khalid Al-Falih welcomed French stakeholders, emphasizing the strong ties between the two countries. He lauded Macron as a “good friend of the Kingdom, leading a strong delegation.”
Al-Falih highlighted the enduring economic partnership, the breadth of sectors covered, and the presence of French companies in Saudi Arabia. “Every time there is an event involving Saudi Arabia and France, there is a special magic and attraction,” he said, noting France’s early support for Riyadh’s bid to host EXPO 2030.
In his opening remarks, Saudi Minister of Investment Khalid Al-Falih lauded Macron as a “good friend of the Kingdom, leading a strong delegation.” (Supplied)
Among the agreements signed were collaborations with French oil giant TotalEnergies and Al Jumeih Energy and Water for the Rabigh 2 solar power plant. Additionally, power purchase agreements for the Al Masa’a and Al Hnakia 2 solar projects involved EDF, SPIC, and the Saudi Power Procurement Company.
Another major deal involved the Public Investment Fund, Saudi Investment Recycling Company (SIRC), and Veolia, focusing on waste management and recycling initiatives in the Kingdom.
In his own remarks at the Forum, Macron highlighted opportunities for collaboration in clean energy, mobility, technology, culture, and artificial intelligence, noting the synergy between Saudi Vision 2030 and France 2030.
“For all the French business-people and investors, I want to encourage them to invest more in this country because investing here is investing in the cornerstone of the whole region,” he said.
The Saudi-French Investment Forum brought together officials, policymakers, and business leaders from both nations, aiming to align their national visions for a prosperous future. (AN Photo)
On Monday, Macron and Crown Prince Mohammed bin Salman signed a strategic partnership aimed at boosting cooperation in defense, energy, and AI.
The partnership aims at “multiplying co-operation and concrete achievements in all areas,” the Elesee Palace said in a statement. It also includes plans to co-host a Summit for Action on AI in Paris in February, according to the Elysee.
Tuesday’s Forum built on a long history of cooperation, highlighted by reciprocal delegations at major events like VivaTech in Paris and Saudi Arabia’s LEAP conference. Al-Falih emphasized the shared history, values, and mutual respect underpinning the partnership.
“Saudis love anything French — French design, French furniture, French technology,” he said.
A major deal involving the Public Investment Fund, Saudi Investment Recycling Company (SIRC), and Veolia, focusing on waste management and recycling initiatives in the Kingdom, was signed during the event. (AFP)
Al-Falih noted that Saudi Arabia, the Gulf Cooperation Council’s fastest-growing economy, achieved 3 billion euros in French investment in 2023. France is the Kingdom’s second-largest foreign investor.
“We are ahead of targets in overall investment, and (France) was a significant part in achieving our targets,” said Al-Falih.
“The value of our trade relations exceeded 10 billion euros last year; and with roughly 3 billion euros of French investment into the Kingdom in 2023, and the nation’s accumulated foreign direct investment in Saudi Arabia reached 17 billion euros.”
He added: “We are proud to be hosting in Saudi Arabia close to 500 leading French companies. Significantly, around 30 of these companies have established their regional headquarters here in Riyadh because their target is not just the Saudi market but to use Saudi Arabia as a platform to reach further beyond.
“We stand today as the world is changing so fast in a new era of partnership. There is alignment of our interests and complementarity in our capabilities. And we also have shared worldviews that are lifting this partnership to a new height, culminating in the signing of our strategic partnership.”
French President Emmanuel Macron speaks during the Saudi-French Investment Forum during an official visit in Riyadh on December 3, 2024. (AFP)
Green energy was a central theme, with agreements supporting renewable energy projects and emphasizing sustainability’s role in economic growth. French biopharma leader Sanofi also signed agreements to expand its healthcare projects in Saudi Arabia.
French expertise continues to play a significant role in Saudi Arabia’s development, from Riyadh Metro to the innovative tram systems in AlUla. The historic region, home to Saudi Arabia’s cherished heritage sites, is set to welcome Macron on Wednesday, reflecting ongoing cultural cooperation led by the French Agency for AlUla Development (Afalula).
French experts have been deeply involved with development in the historic region of northwestern Saudi Arabia. “Sharaan” by Jean Nouvel and Villa Hegra by Lacaton and Vassal are just two examples of cultural and heritage cooperation.
Tuesday’s Forum hosted six panels, featuring 50 keynote speakers, and facilitated hundreds of bilateral meetings. Themes included net-zero policies, urbanization, technology, entertainment, and fostering innovation.
The Saudi-French Investment Forum hosted six panels, featuring 50 keynote speakers, and facilitated hundreds of bilateral meetings. (Supplied)
French Minister Delegate for Industry Marc Ferracci underscored the Forum’s importance in strengthening ties amid Saudi Arabia’s unprecedented transformation.
“The Kingdom is undergoing one of the biggest transformations in recent history,” Ferracci told the Forum. “And as the second largest investor in the Kingdom, France supports the Kingdom in different sectors.
“Saudi Vision 2030 and France 2030 are transformative blueprints designed to tackle the challenges of our time, creating sustainable growth for the future, and the development of smart inclusive cities,” he added.
The objectives of France’s National Vision include achieving carbon neutrality and cooperation on green energy.
Ferracci added that France views Saudi Arabia as a vital partner, emphasizing shared goals of carbon neutrality and innovation. “The forum is a testament to our economic relationship and an opportunity to shape the future of our partnership,” he said.
Macron was received at Al-Yamamah Palace in Riyadh by Crown Prince Mohammed bin Salman on Monday. (X/@Bandaralgaloud)
The French economy is viewed as a gateway, offering access to the wider European market, making it an attractive investment destination.
“The relationship between Saudi Arabia and France is not new, rather dates back to centuries not decades,” Prince Faisal bin Abdulaziz bin Ayyaf, the mayor of Riyadh, told the Forum.
He highlighted historical milestones, including the meeting between Saudi King Faisal and French President Charles de Gaulle in 1967, which marked the debut of stronger ties, evolving through personal contacts and visits at the highest levels.
King Khalid visited France in 1978 and 1981, and King Fahd visited twice when he was crown prince, in 1975 and 1981.
Prince Faisal bin Abdulaziz bin Ayyaf, the mayor of Riyadh, highlighted historical milestones, including the meeting between Saudi King Faisal and French President Charles de Gaulle in 1967, which marked the debut of stronger ties. (AFP)
“Saudi Arabia’s Vision 2030 represents an ambitious roadmap towards a more prosperous and sustainable future,” said Prince Faisal.
“Riyadh, as the capital of the Kingdom, plays a pivotal role in achieving that Vision. The city is undergoing an unprecedented economic developmental transformation. The city today stands as a workshop … the future is greater than what we can imagine.”
Prince Faisal highlighted the examples of King Salman Park, which aspires to be the largest urban park in the world, and New Murrabbaa, which is set to become the world’s largest urban development.
“It’s not our journey alone,” said Prince Faisal. “We invite everyone to join.”
