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Saudi-Singaporean ties to strengthen in sustainability, SMEs, and manufacturing

Saudi-Singaporean ties to strengthen in sustainability, SMEs, and manufacturing
Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef at the Port of Singapore. SPA
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Updated 04 September 2024
MOHAMMED AL-KINANI
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Saudi-Singaporean ties to strengthen in sustainability, SMEs, and manufacturing

Saudi-Singaporean ties to strengthen in sustainability, SMEs, and manufacturing
Updated 04 September 2024
MOHAMMED AL-KINANI
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JEDDAH: Saudi-Singaporean industrial ties are set to strengthen after senior officials from the countries met to explore cooperation in sustainable growth, small and medium enterprises, and advanced manufacturing technology.

During his official visit to the Asian island, the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef met with heads of agencies and institutions, including Singapore Economic Development Board Chairman Png Cheong Boon where the two discussed leveraging the EDB’s expertise.

The minister also met with Enterprise Singapore Executive Chairman Lee Chuan Teck to discuss cooperation in capacity building, innovation, and transformation, and Meinhardt Group’s head of the fourth industrial revolution division to explore modern technologies to enhance efficiency and innovation in the sector.

The meetings were also attended by the Kingdom’s Assistant Minister for Planning and Development Abdullah Ali Al-Ahmari, CEO of the National Industrial Development Center Saleh Al-Sulami, and Majed Rafed Al-Argoubi, CEO at the Saudi Authority for Industrial Cities and Technology Zones.

The discussions are part of an economic tour of East Asia, where Alkhorayef is leading his ministry’s delegation to enhance bilateral ties, attract high-quality investments to Saudi Arabia, and explore mutual opportunities in the industrial sector.

In October 2023, the Kingdom and Singapore signed seven memorandums of understanding to facilitate investment opportunities across multiple sectors, inked during the third session of the Saudi-Singapore Joint Committee held in Riyadh at that time.

The two countries have a robust partnership, with trade volume reaching SR45.2 billion ($12.05 billion) in 2022, a 50 percent increase from the previous year.

In his discussion with the Agency for Science, Technology and Research CEO, Alkhorayef explored ways to strengthen cooperation with the organization, which is considered one of the top innovative government bodies globally in the field of science and technology.

The minister and delegation members also toured the Port of Singapore, which stands as the world’s largest automated maritime terminal.

During his visit, the transfer of expertise, including the port’s model for handling the world’s largest container ships, adopting new technologies, and training were discussed. 

Tuas Port was also toured, which opened in 2022 and is slated to be fully operational by 2040. 

Covering an area roughly equivalent to 3,300 football fields, the terminal will include 66 automated docks extending 26 km to accommodate the largest container ships. Its projected throughput is 65 million twenty-foot equivalent units.

Topics: main Saudi-Singapore Minister of Industry and Mineral Resources Bandar Alkhorayef

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Saudi Arabia seeks to establish specialized courts to resolve business disputes 

Saudi Arabia seeks to establish specialized courts to resolve business disputes 
Updated 17 sec ago
Nadin Hassan
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Saudi Arabia seeks to establish specialized courts to resolve business disputes 

Saudi Arabia seeks to establish specialized courts to resolve business disputes 
Updated 17 sec ago
Nadin Hassan

RIYADH: Saudi Arabia plans to establish specialized courts to address investment disputes, enhance market confidence, and support its Vision 2030 strategy of becoming a global business hub. 

The initiative, revealed through a survey conducted by the Ministry of Investment and shared with the Federation of Saudi Chambers, is aimed at evaluating the need for such judicial bodies across key sectors, Al Arabiya reported. 

These courts are expected to bolster trust in the Kingdom’s legal framework, aligning with its broader legislative and judicial reforms designed to accelerate progress under Vision 2030 and the National Investment Strategy. 

The specialized courts are part of the strategy’s fourth pillar, launched by Crown Prince Mohammed bin Salman in 2021, which seeks to mobilize SR12 trillion ($3.19 trillion) in economic activity through transformative projects, improved infrastructure, and job creation. 

In August, Saudi Arabia announced a major overhaul of its investment laws, reaffirming its commitment to creating a business-friendly environment for global enterprises. 

Revised laws integrate existing commercial rights into a unified framework, prioritizing transparency and simplifying regulatory processes. They offer enhanced protections, including property and intellectual property rights, streamlined registrations, and the establishment of dedicated service centers to expedite government interactions. 

These updates build on previous measures such as the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law, and the introduction of Special Economic Zones. 

At the time, Saudi Investment Minister Khalid Al-Falih stated that the law underscored Saudi Arabia’s dedication to fostering a secure and investor-friendly environment, bolstering economic growth, and solidifying the Kingdom’s status as a leading global investment hub.  

He noted that Vision 2030’s policy framework offered investors the confidence and stability needed to thrive, particularly as other markets faced significant volatility. 

The law also seeks to create a competitive market by encouraging fair competition and guaranteeing equal opportunities for both domestic and international investors. 

Earlier this year, Saudi Arabia launched its regional headquarters program, offering businesses incentives such as a 30-year exemption from corporate income tax and withholding tax on headquarters activities, along with access to discounts and support services. 

In October, Al-Falih confirmed the success of the initiative, announcing that the Kingdom had attracted 540 international companies to establish regional headquarters in Riyadh, surpassing its 2030 target of 500. 

Topics: Saudi Investment

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Oman launches food security projects to ensure supply, sustainability

Oman launches food security projects to ensure supply, sustainability
Updated 34 min 13 sec ago
MOHAMMED AL-KINANI
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Oman launches food security projects to ensure supply, sustainability

Oman launches food security projects to ensure supply, sustainability
  • Food security is a top priority for Oman, particularly in light of the increasing risks that climate change poses to global supplies
  • Production will be distributed locally, regionally, and globally to meet increasing demand
Updated 34 min 13 sec ago
MOHAMMED AL-KINANI

JEDDAH: Oman has launched new food security initiatives, partnering with government entities and the private sector to strengthen supply chain operations and enhance sustainability.

The scheme, announced by the sultanate’s Ministry of Agriculture, Fisheries, and Water Resources, reflects the Gulf state’s commitment to long-term food security and economic diversification as part of its broader development goals.

Food security is a top priority for Oman, particularly in light of the increasing risks that climate change poses to global supplies. 

The government has launched several initiatives, including the Food Security Strategy 2010-2020, which focuses on three key areas such as managing demand, boosting local production, and ensuring reliable imports, with specific goals to promote sustainable agriculture, rural development, and fisheries.

The country also launched the National Nutrition Strategy 2020-2030, introduced by the Ministry of Health in 2021, aligning with Oman’s Vision 2040. The initiative aims to improve nutrition, eliminate malnutrition, and enhance food security, which aligns with the World Health Organization’s Regional Nutrition Strategy.

Oman also unveiled the Sustainable Agriculture and Rural Development Strategy 2040, which aims to enhance the productivity and sustainability of agriculture, forestry, and fisheries. To further these goals, the sultanate also launched the Million Date Palm Plantation Project.

Salem bin Abdullah Al-Ghufaili, the agriculture ministry’s director general of food security, said that these projects include a sugar refining project — the first of its kind in the country, adding that it will be located on an area of 18,000 sq. meters at Sohar Port, with an annual production capacity of approximately 1 million tons, as reported by Oman News Agency.

Al-Ghufaili said that the plant will be equipped with state-of-the-art, European-made production lines, utilizing the latest technological advancements to produce refined sugar of the highest quality from raw sugar. 

He also said the production will be distributed locally, regionally, and globally to meet increasing demand, adding that the project’s rapid progress, with 91 percent completion, is bringing it closer to the final stages.

In a statement to ONA, the director general added that Salalah Mills Co. is currently implementing a food industries center project in the Khazaen Economic City, with an estimated cost of 18.5 million Omani rials ($48.08 million) and a production capacity of around 1.4 million units per day in its first phase.

He added that the initiative includes an industrial bakery, production lines for frozen and semi-cooked pastries, equipment and silos for storing raw materials, and refrigerated and dry storage facilities for products.

Al-Ghufaili said that the undertakings include constructing wheat silos at Sohar Port, increasing storage capacity to 160,000 tons to ensure sufficient supplies for the population.

He also highlighted a new partnership between Khazaen Economic City and Zircon Food Industries Co. to build an integrated industrial complex for filtering, sorting, and packaging rice, sugar, and spices, along with large-scale food storage units.

He stressed the ministry’s efforts to secure essential foodstuffs and storage to ensure availability during emergencies while maintaining price stability and shielding the market from fluctuations caused by global economic crises. 

The ministry also strategically stockpiles key items such as rice, wheat, and sugar, as well as lentils, powdered milk, cooking oil, and tea.

Topics: Oman oman economy food security

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UAE’s AD Ports Group doubles credit facility to $2.13bn

UAE’s AD Ports Group doubles credit facility to $2.13bn
Updated 35 min 41 sec ago
Nour El-Shaeri
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UAE’s AD Ports Group doubles credit facility to $2.13bn

UAE’s AD Ports Group doubles credit facility to $2.13bn
Updated 35 min 41 sec ago
Nour El-Shaeri

RIYADH: The UAE’s Abu Dhabi Ports Group has successfully refinanced and more than doubled its revolving credit facility from $1 billion to $2.13 billion. The move extends the facility’s maturity from 2026 to 2028, with an option for further extension until 2030.

This expansion is aimed at optimizing financing costs by improving interest margins and securing long-term liquidity. The facility, which is denominated in both Emirati dirhams and US dollars, has garnered significant interest from a diverse group of local, regional, European, Asian, and international banks. As a result, the facility was oversubscribed by more than 2.5 times.

The bank syndicate backing AD Ports Group has expanded from nine to 18 financial institutions, reflecting growing confidence in the company’s financial health and strategic direction.

“The overwhelming interest in our new RCF and the resulting oversubscription underscore the confidence that the banking community has in AD Ports Group’s robust financial health and strategic direction,” said Martin Aarup, chief financial officer of AD Ports Group.

“This refinancing initiative will optimize our financing costs, strengthen liquidity, and provide enhanced flexibility to support the company’s growth plans in the short and medium term. Additionally, the extended maturity of the facility will enable better financial planning.”

AD Ports Group holds strong investment-grade ratings of “AA-” with a stable outlook from Fitch, and A1 with a stable outlook from Moody’s.

In mid-December, AD Ports Group appointed Egypt’s Hassan Allam Construction, a subsidiary of Hassan Allam Holding, to develop the infrastructure for the Noatum Ports-Safaga Terminal in Egypt.

This terminal, located on the Red Sea coast, will be the first internationally operated port facility in Upper Egypt. Spanning approximately 810,000 sq. meters, the terminal will handle an annual capacity of 450,000 twenty-foot equivalent units of container cargo, 5 million tonnes of dry bulk and general cargo, and 1 million tonnes of liquid bulk.

The Safaga Terminal is a key part of AD Ports Group’s broader strategy to invest in major infrastructure projects that drive economic growth and strengthen its international market position.

In the same month, AD Ports Group also inaugurated the CMA Terminals Khalifa Port, a new $843 million (3.1 billion dirham) container terminal. The launch ceremony was led by Sheikh Khaled bin Mohamed bin Zayed Al-Nahyan, crown prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council.

The terminal is operated by a joint venture between CMA CGM Group’s subsidiary CMA Terminals, which holds a 70 percent stake, and AD Ports Group, with a 30 percent share.

During the ceremony, a memorandum of understanding was also signed to enhance maritime training in the UAE and the Gulf Cooperation Council. The CMA CGM Group will support cadet placements and training through the Abu Dhabi Maritime Academy.

Topics: UAE Abu Dhabi port credit

Saudi Arabia’s bond maturities to surge to $168bn, outpacing GCC peers by 2029

Saudi Arabia’s bond maturities to surge to $168bn, outpacing GCC peers by 2029
Updated 22 December 2024
Nirmal Narayanan
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Saudi Arabia’s bond maturities to surge to $168bn, outpacing GCC peers by 2029

Saudi Arabia’s bond maturities to surge to $168bn, outpacing GCC peers by 2029
Updated 22 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia is poised to account for the largest share of bond maturities in the Gulf Cooperation Council region from 2025 to 2029, with a projected total of $168 billion, according to a recent analysis by Kamco Invest.

The Kuwait-based financial firm’s report highlights that most of these maturities will come from bonds and sukuk issued by the Saudi government, which is expected to reach $110.2 billion over the five-year period.

This comes after Saudi Arabia’s Capital Market Authority approved its most significant regulatory overhaul in November, aimed at revamping the sukuk and debt instrument market.

The reforms include simplifying the prospectus requirements for public, private, and exempted offerings, streamlining processes, and reducing regulatory burdens.

Following Saudi Arabia, the UAE and Qatar will also see significant bond maturities, projected at $153.2 billion and $79.5 billion, respectively, over the same period.

In the UAE, a substantial portion of these maturities—around $120 billion—will be from corporate issuances. Meanwhile, Kuwait, with limited government bond issuances, will see the smallest maturities in the region, totaling just $15.1 billion.

Kamco Invest, referencing Bloomberg data, noted that sovereign bond maturities in the GCC will reach $232 billion between 2025 and 2029, while corporate bond maturities are expected to total $235 billion during the same timeframe.

Both sukuk and bond maturities are anticipated to remain high through 2025-2029 before gradually tapering off. The elevated maturities in the coming years are largely attributed to a surge in short-term issuances (with maturities of less than five years) in 2020 and 2021, as governments raised funds to cover budget deficits during the pandemic.

The report also revealed that banks and other financial sectors in the GCC face $169.9 billion in maturities over the next five years, making up approximately 72.3 percent of total corporate maturities. The energy sector follows with $25.3 billion in maturities, while the utilities and materials sectors account for $13.1 billion.

As of mid-December 2024, the aggregate value of bond and sukuk issuances reached $182.7 billion, up from $116.2 billion in 2023. The increase was driven by a 48.5 percent year-on-year rise in corporate issuances, which grew from $71 billion in 2023 to $105.4 billion in 2024. Government issuances also surged to $77.3 billion, marking a 71.1 percent increase compared to the previous year.

Kamco Invest further emphasized that while GCC economies will not be immune to the broader trends in the global fixed-income market, their relatively low levels of government borrowing, strong credit profiles, and substantial sovereign wealth funds should help mitigate potential negative impacts.

“Compared to other emerging markets, the GCC economies are in a more favorable position, as they are not burdened by the massive interest payments that other nations are facing on the $29 trillion of debt accumulated over the past decade,” the report concluded.

Topics: bonds Sukuk GCC

Folk Maritime expands sustainability and connectivity in Middle East shipping 

Folk Maritime expands sustainability and connectivity in Middle East shipping 
Updated 22 December 2024
Ghadi Joudah 
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Folk Maritime expands sustainability and connectivity in Middle East shipping 

Folk Maritime expands sustainability and connectivity in Middle East shipping 
Updated 22 December 2024
Ghadi Joudah 

RIYADH: Trade facilitation specialist Folk Maritime Services has secured a strategic agreement with Shanghai CIMC Yangshan Logistics Equipment to purchase 5,600 advanced, fully recyclable shipping containers, revealed the company’s CEO.  

The move is part of the Public Investment Fund-owned company’s broader strategy to promote sustainability and drive technological innovation in the Middle East's maritime industry. 

Poul Hestbaek emphasized the company’s role as a leader in the regional liner and feeder sector, focusing on sustainability and the implementation of advanced technologies. “These containers have a capacity of 6,700 TEUs (twenty-foot equivalent units) and are 100 percent recyclable,” Hestbaek told Arab News in an interview. 

Poul Hestbaek, CEO of Folk Maritime, emphasized the company’s role as a leader in the regional liner and feeder sector. Supplied

“We have only chosen materials that, once the containers have gone through their lifecycle, can be fully recycled and put back into the production line. This is a significant sustainability element,” he added. 

The containers, designed to last 15 to 20 years, are part of Folk Maritime’s broader efforts to reduce its environmental footprint. Hestbaek said, “By designing containers with full recyclability in mind, we’re closing the loop on waste and contributing to a more sustainable shipping industry.”  

Innovative Tracking Technology 

In addition to sustainability, Folk Maritime is investing in cutting-edge tracking technology to enhance customer experience. The company is installing sensors in its containers that will allow customers to monitor their cargo in real-time.  

“We are installing trackers so that our customers can, at any given time, follow their container’s location and monitor their cargo,” Hestbaek said.  

These trackers include sensors that provide real-time updates and alerts if the container’s door is opened or closed, ensuring that customers can detect potential compromises to their shipments. 

“This feature is relatively new technology. While it may be used in some very big global trade, it’s the first of its kind in the Middle East area. We are the first to offer that, and we believe it will be a big help for our customers,” Hestbaek said. 

Expanding regional connectivity 

Folk Maritime is expanding its services to improve regional trade connectivity and connect key ports, in line with Saudi Arabia’s Vision 2030.

“Our first services connected Jeddah to Egypt and Jordan. We also opened the first weekly direct connection between Jeddah and NEOM, along with a sea connection to Yanbu, which offers safer transportation of heavy containers and reduces road wear and tear,” Hestbaek said. 

Additionally, Folk Maritime has launched services in Port Sudan, further strengthening trade relations between Saudi Arabia and the African nation, and is facilitating cargo transport from India to Jeddah and surrounding countries.  

India-Middle East trade corridor 

With trade between India and the Middle East expanding rapidly, Folk Maritime is positioning itself to capitalize on this growing corridor.  

“Our service connects India directly to Dammam, offering faster and more reliable transit times. Unlike competitors, we skip ports like Jebel Ali and Abu Dhabi to ensure quicker delivery for Saudi customers,” Hestbaek said. 

India, increasingly a major supplier of goods to the Middle East, has seen Saudi Arabia account for half of the region’s consumption, further underscoring the strategic importance of this new service. 

Commitment to sustainability 

Sustainability remains a cornerstone of Folk Maritime’s strategy. The company operates fuel-efficient vessels and optimizes services to run at lower, more cost-effective speeds, reducing both fuel consumption and carbon emissions. 

“Our vessels are specifically designed to operate efficiently at lower speeds, which significantly reduces our environmental impact,” Hestbaek said.  

Looking ahead, Folk Maritime is exploring carbon capture technology to further reduce its environmental footprint. “If we can find a way to capture the carbon footprint of fossil fuel use, it will be a game changer, especially for this part of the world,” Hestbaek emphasized. 

Driving Vision 2030 goals 

As part of Saudi Arabia’s Vision 2030, Folk Maritime is focused on transforming the Kingdom into a global logistics hub. By connecting key ports and streamlining trade flows, the company aims to facilitate greater regional trade while supporting the country’s broader economic objectives. 

“Saudi Arabia generates a significant amount of the region’s cargo. Our goal is to serve this growing market and align with Vision 2030’s objectives to create seamless trade networks across the region,” Hestbaek concluded. 

Folk Maritime’s focus on sustainability, technological innovation, and expanding regional connectivity positions it as a key player in reshaping Middle East, East Africa, and India trade routes, setting a new benchmark for the shipping industry. 

Topics: Folk Maritime shipping business

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