Saudi Arabia’s King Abdulaziz Port enhances connectivity with new shipping service

Saudi Arabia’s King Abdulaziz Port enhances connectivity with new shipping service
King Abdulaziz Port features 43 fully serviced and equipped berths, with an annual handling capacity of up to 105 million tons of goods and containers. (File/SPA)
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Updated 11 August 2024
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Saudi Arabia’s King Abdulaziz Port enhances connectivity with new shipping service

Saudi Arabia’s King Abdulaziz Port enhances connectivity with new shipping service
  • Mawani announced the launch of the 2-MGX service, operated by Qatari navigation company Milaha
  • New service to link port to 7 strategic regional and international ports

RIYADH: Saudi Arabia’s King Abdulaziz Port in Dammam is set to enhance its maritime links with key ports in India and China with the introduction of a new shipping service. 

The General Authority for Ports, also known as Mawani, announced the launch of the “Milaha Gulf Express 2,” or 2-MGX service, operated by Qatari navigation company Milaha. 

The strategic move is set to enhance the port’s role in global trade, benefiting exporters, importers, and shipping agents by offering improved access to major international markets, a release by the body said. 

The introduction of the 2-MGX service is a testament to King Abdulaziz Port’s growing significance within the global logistics network. 

As Saudi Arabia continues to advance its National Strategy for Transport and Logistics Services, which aims to position the Kingdom as a leading global logistics hub, the port’s enhanced connectivity with India and China represents a key step in achieving these objectives. 

The strategy is part of the broader Vision 2030 initiative, designed to diversify the economy and develop infrastructure that connects the Kingdom to international markets across three continents. 

King Abdulaziz Port, known for its robust operational and logistical capabilities, is well-prepared to support this new service, according to a press release. 

The port, located in the Eastern Province, features 43 fully serviced and equipped berths, with an annual handling capacity of up to 105 million tonnes of goods and containers. 

Its advanced infrastructure, including specialized stations and state-of-the-art equipment, enables the efficient management of a wide range of cargo types, further strengthening the Kingdom’s position in global trade. 

The new 2-MGX shipping service will link King Abdulaziz Port to seven strategic regional and international ports, including Ningbo, Shanghai, and Shekou in China; Nhava Sheva and Mundra in India; Sohar in Oman; and Hamad in Qatar. 

The service will operate on a bi-monthly basis, with a capacity of up to 9,000 standard containers, ensuring regular and reliable trade routes that enhance the port’s competitiveness. 

In line with its ongoing modernization efforts, the port has seen significant upgrades throughout the year, including the acquisition of 21 coastal and bridge cranes and the addition of 80 electric trucks. 
These improvements are designed to increase the port’s flexibility and sustainability, enabling it to accommodate advanced and larger vessels with full productivity and efficiency. 
The implementation of the 2-MGX service not only strengthens Saudi Arabia’s maritime links with vital Asian markets but also aligns with the Kingdom’s broader economic diversification goals. 


UAE, Jordan sign $2.3bn agreement to build railway

UAE, Jordan sign $2.3bn agreement to build railway
Updated 8 sec ago
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UAE, Jordan sign $2.3bn agreement to build railway

UAE, Jordan sign $2.3bn agreement to build railway

RIYADH: The UAE has signed a $2.3 billion deal to develop a 360-km railway network linking Jordan’s Aqaba port to the country’s mining hubs at Al-Shidiya and Ghor Al-Safi. 

The project, to be developed and operated by UAE’s Etihad Rail, is part of a $5.5 billion investment package agreed between the two countries in November 2023, according to a press release. 

The railway infrastructure in Jordan will be modernized under the agreement, including the manufacture and supply of new trains built to international standards. 

The project will also feature the construction of terminals for loading and unloading mineral products at Aqaba, Ghor Al-Safi, and Shidiya. 

The railway will take five years to reach operational status, with completion set for 2030. 

The UAE, one of Jordan’s largest foreign investors, has injected around $22.5 billion into the Kingdom’s economy over the past decade. 

“The Investment Memorandum with Jordan showcases our commitment to leveraging our collective and bilateral efforts to drive economic growth, while enhancing resilience and promoting economic diversification in both of our brotherly nations,” said Mohamed Hassan Al-Suwaidi, UAE’s minister of investment. 

Etihad Rail also signed separate agreements with Jordan Phosphate Mines Co. and Arab Potash Co. to transport 16 million tons of phosphate and potash annually from mining sites to Aqaba via the Jordanian railway network. 

“Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities, all within the framework of our vision to achieve comprehensive and sustainable economic growth,” Al-Suwaidi added. 

Jordanian Prime Minister Bisher Al-Khasawneh noted that these agreements with the UAE underscore the deep and amicable bond between the two nations. 

He further highlighted that these developments symbolize the fraternal and strategic relations between Jordan and the UAE and serve the mutual interests of both nations. 

“We are always pleased with the enduring strategic partnership and close fraternal ties between Jordan and the UAE, which reflect the strong bond between King Abdullah II and his brother, Sheikh Mohammed bin Zayed Al Nahyan,” said Al-Khasawneh. 

He also mentioned that detailed studies on railway tracks and handling requirements for potash and phosphate will be completed by the end of 2025, with bids for construction work expected to be issued in early 2026. 

Shadi Malak, CEO of Etihad Rail, said the agreements and MoUs reinforce the company’s commitment to strengthening its presence in the region. 

“We are keen to leverage our proven expertise in developing and operating the UAE National Railway Network to support Jordan’s ambitious plans for advancing its rail infrastructure and driving economic growth. This aligns with the strong and cooperative relationship between our two nations,” added Malak. 


Oil Updates – crude prices edge up as OPEC+ may delay supply hike, US stockpiles fall

Oil Updates – crude prices edge up as OPEC+ may delay supply hike, US stockpiles fall
Updated 05 September 2024
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Oil Updates – crude prices edge up as OPEC+ may delay supply hike, US stockpiles fall

Oil Updates – crude prices edge up as OPEC+ may delay supply hike, US stockpiles fall

SINGAPORE: Oil prices edged up after plunging to multi-month lows previously as major producers may delay an output increase planned for next month and US inventories fell, though the gains were limited by persistent demand concerns.

Brent crude futures for November rose 35 cents, or 0.48 percent, to $73.05 a barrel at 9:07 a.m. Saudi time after dropping 1.4 percent in the previous session to their lowest close since June 27, 2023.

US West Texas Intermediate crude futures for October were up 35 cents, or 0.51 percent, to $69.55 after dropping 1.6 percent on Wednesday to the lowest settlement since Dec. 11.

“Pessimistic sentiments in oil markets seem to ease after robust API data and news of OPEC+ reconsidering output jump surfaced and boosted hopes,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. 

OPEC and its allies including Russia, known as OPEC+, is discussing delaying its oil output increase scheduled to start in October as prices have tanked, four sources from the producer group told Reuters on Wednesday.

Last week, OPEC+ was set to proceed with its 180,000 barrels-per-day output hike in October, part of a plan to gradually unwind its most recent cuts of 2.2 million bpd. But the potential end to a dispute halting Libyan exports and soft Chinese demand has pushed the group to reconsider.

Prices on Thursday also found support after American Petroleum Institute data showed US crude oil fell by 7.431 million barrels last week. This was more than analysts’ expectation in a Reuters poll of a 1 million barrel draw.

“API numbers released overnight were constructive,” said ING analysts in a client note, adding that if official government data shows the same decline later it could be “the largest weekly drop since June.”

Weekly US oil stocks data from the Energy Information Administration is due on Thursday at 5:30 p.m. Saudi time. 

Markets were also awaiting further US macroeconomic data indicators that will be released later on Thursday.

“In the short-term, as there are impending key US economic growth data out today and tomorrow ... short-term speculators may be hesitant to take on fresh bearish positions on WTI crude, coupled with oversold readings seen in short-term momentum indicators,” OANDA Senior Market Analyst Kelvin Wong said in an email.

Persistent demand worries in China, the world’s largest oil importer, capped gains.

Data published over the weekend by the Chinese government revealed that manufacturing activity sank to a six-month low last month as factory gate prices tumbled and owners struggled for orders.

“Economically, the slowdown in the Chinese economy and weak oil demand there, which has surprised some in the market, have damaged market confidence,” Citi analysts said in a note. 


American Express targets 90% Saudi POS coverage following rapid growth: CEO

American Express targets 90% Saudi POS coverage following rapid growth: CEO
Updated 04 September 2024
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American Express targets 90% Saudi POS coverage following rapid growth: CEO

American Express targets 90% Saudi POS coverage following rapid growth: CEO
  • American Express has achieved a 180% increase in its point-of-sale acceptance in Saudi Arabia in the last two years
  • Company’s strategy involved partnering with banks to integrate American Express into their systems

RIYADH: Card payment provider American Express has achieved a 180 percent increase in its point-of-sale acceptance in Saudi Arabia over the past two years, according to CEO Fahad Mubarak Al-Guthami. 

The company aims to reach 90 percent coverage by the end of 2025. 

Speaking on the sidelines of the 24 Fintech conference in Riyadh, Al-Guthami said that this growth aligns with Saudi Arabia’s goal to achieve 70 percent non-cash transactions by 2030, under the Financial Sector Development Program. 

“Right now, many places around the Kingdom are accepting American Express…it’s part of our strategy,” Al-Guthami told Arab News. 

He revealed that the company’s strategy, which began about two years ago, involved partnering with banks to integrate American Express into their systems. 

“In 2024, we’ve already increased the number of points of sale accepting American Express by 180 percent. Our objective is to reach 90 percent by the end of 2025,” Al-Guthami said. 

“We want to be leading for the global American Express and the local as well,” he added. 

On small and medium enterprises, Al-Guthami said: “Globally, we’ve been very strong with SMEs. In Saudi Arabia, as part of our strategy, the key is to ensure we have acceptance across the country. This will give SMEs the opportunity to use either digital or plastic cards for any purchases they want.” 

He added that SMEs value transaction transparency, audit compliance, and return on investment. “So, all of that is something that we’re building on based on what we have already. So, it’s nothing new; it’s just a tweak and we already started that journey,” the CEO added.

Regarding fintechs, he said that they fundamentally represent innovation and one could either develop solutions independently or partner with a fintech. 

For instance, he said applications and data analytics are examples of fintech solutions, with the company managing these aspects in-house. 

“But then, if I go into the open banking area, I can integrate; it’s faster speed to market and provides us a win-win situation. It gives us access to all financial institutions at the press of a button, and we get access to the customers so we can service them better,” Al-Guthami said. 

He added that the same principles apply to personal finance management. These features allow users to view their spending on the application’s dashboard and analyze their expenditures. He explained that while they have the data, the challenge is to analyze and present it in an attractive way for the customer. 

The 24 Fintech conference, co-organized by Tahaluf — a joint venture between Informa PLC, the Saudi Federation for Cybersecurity, Programming and Drones, and the Events Investment Fund — aims to establish Saudi Arabia as a global fintech leader in line with Vision 2030. 

The event, running from Sept. 3-5, is expected to attract over 30,000 participants, 300 exhibitors, and more than 350 investors, underscoring the Kingdom’s rapid growth in the fintech sector. 


IMF highlights Saudi Arabia’s economic gains and Vision 2030 progress in latest review

IMF highlights Saudi Arabia’s economic gains and Vision 2030 progress in latest review
Updated 04 September 2024
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IMF highlights Saudi Arabia’s economic gains and Vision 2030 progress in latest review

IMF highlights Saudi Arabia’s economic gains and Vision 2030 progress in latest review
  • Non-oil sector demonstrated robust growth of 3.8%
  • Inflation in the country has decelerated significantly, dropping from a peak of 3.4% in January 2023 to 1.6% in May

RIYADH: The International Monetary Fund executive board has finalized its 2024 review of Saudi Arabia, recognizing the country’s major progress in its economic transformation through Vision 2030.

The consultation, held on July 31, focused on evaluating the Kingdom’s developments and policies, as well as the nation’s fiscal and monetary outlook.

According to the IMF, Saudi Arabia’s economic evolution continued to progress effectively, with modernization and diversification efforts advancing as planned. 

Despite a 0.8 percent contraction in the overall gross domestic product in 2023 due to oil production cuts, the non-oil sector demonstrated robust growth of 3.8 percent, fueled mainly by private consumption and investment. 

The unemployment rate in the Kingdom has hit historic lows, particularly with female labor force participation surpassing the 30 percent target set for 2030.

Inflation in the country has decelerated significantly, dropping from a peak of 3.4 percent in January 2023 to 1.6 percent in May, aided by an appreciating nominal effective exchange rate. 

However, rent prices have surged by about 10 percent, driven by the influx of expatriate workers and significant redevelopment projects in Riyadh and Jeddah. Wholesale prices have also edged up, reflecting increased input costs and rising wages for skilled workers.

The current account surplus narrowed to 3.2 percent of GDP in 2023, primarily due to lower oil exports and strong growth in investment-related imports. 

However, this was partially offset by a record surplus in the services balance, including a significant 38 percent increase in net tourism income. 

Saudi Arabia’s reserves remain ample, covering 15.8 months of imports by the end of 2023.

The banking sector in the Kingdom is on a solid footing, with stress tests indicating that banks and non-financial corporates are resilient even under severe adverse scenarios. 

While bank credit growth has moderated, it surpasses deposit maturation, particularly in the corporate sector. However, increased interlinkages between financial institutions and the sovereign could amplify systemic shocks, especially in response to fluctuations in oil prices.

The IMF projected the non-oil growth to reach 4.4 percent in the medium term, driven by stronger domestic demand as project implementation under Vision 2030 picks up. 

The phase-out of oil production cuts is expected to boost overall growth to 4.7 percent in 2025, with inflation remaining contained. The current account is anticipated to shift to a deficit, reflecting declining oil prices and continued strong investment-related imports.

The IMF emphasized the importance of maintaining fiscal prudence, safeguarding financial stability, and continuing structural reforms to support sustainable and inclusive growth in Saudi Arabia. 

The recalibration of investment spending under Vision 2030 was praised for mitigating overheating risks. 

The IMF also recommended further fiscal adjustments, including efforts to mobilize non-oil revenue and contain the wage bill to maintain strong buffers and meet intergenerational needs.

The organization commended Saudi Arabia’s commitment to achieving net zero emissions by 2060 and highlighted the progress in renewable energy and power efficiency. However, it said that additional efforts are needed to support these targets fully.


Saudi Arabia suspends municipal fees for commercial licenses of hotels, resorts

Saudi Arabia suspends municipal fees for commercial licenses of hotels, resorts
Updated 04 September 2024
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Saudi Arabia suspends municipal fees for commercial licenses of hotels, resorts

Saudi Arabia suspends municipal fees for commercial licenses of hotels, resorts
  • Decision aims to provide an attractive investment environment for investors and enhance competitiveness in the sector
  • It will play a role in developing the tourism sector’s infrastructure

RIYADH: Saudi Arabia has decided to suspend municipal fees for issuing licenses for commercial activity of hotels, hotel apartments ,and residential resorts, effective from Sept. 4.

The decision was issued by Minister of Municipalities and Housing Majid Al-Hogail as an extension of the continuous efforts to facilitate municipal procedures and services in Saudi cities, to develop the tourism sector, and to raise the quality of tourism services, the ministry said in a statement.

It also aims to provide an attractive investment environment for investors and enhance competitiveness in the sector. 

The decision comes in line with the goals of Saudi Vision 2030 to turn the Kingdom into one of the most prominent tourist destinations in the world and to encourage investment in the tourism sector to benefit from the promising opportunities.

It will also play a role in developing the tourism sector’s infrastructure, especially hospitality facilities and reducing operating costs. 

The ministries of municipalities and housing and tourism called on investors in the sector to benefit from the decision by issuing or renewing a commercial activity license for hotels, hotel apartments and residential resorts through the Balady platform. They also called on investors to adhere to the requirements and work to improve and develop their facilities to ensure sustainability and quality in tourism services.

The ministries said they are organizing a group of workshops and introductory and awareness sessions for owners of hotels, hotel apartments and residential resorts to explain and clarify the decision, and provide the necessary support and advice to investors in the tourism sector.

The decision comes as a strategic step to support investors and encourage them to pump more investments into the tourism sector, which contributes to creating new job opportunities and increasing the sector’s contribution to the gross domestic product. 

It is also one of the investment enablers initiatives in the tourism sector that was launched in March to facilitate investment in Saudi tourism.