SYDNEY: New Zealand on Thursday reached a trade deal with the UAE, which it said would unlock economic opportunities for exporters and boost supply chains with one of its most important trading partners in the Middle East.
The trade deal will remove duties on 98.5 percent of New Zealand’s exports with that proportion expected to rise to 99 percent within three years, Trade Minister Todd McClay said in a statement.
“This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years,” McClay said.
Two-way trade between the countries was valued at 1.3 billion New Zealand dollars ($813.5 million) in the year to June 2024.
The agreement was concluded in over four months following the beginning of talks in May, making this New Zealand’s fastest-ever trade agreement negotiation, McClay said.
Australia and the UAE concluded a similar trade deal earlier this month.
Saudi Arabia emerging as an economic ‘powerhouse,’ says top IMF official
Updated 27 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s role in the international financial system is growing, solidifying its position as an emerging economic “powerhouse,” according to a senior executive.
In an interview with Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Jihad Azour, director of the Middle East and Central Asia department at the International Monetary Fund, stated that the Kingdom took a leadership role following the G20 summit in 2020.
“The role of Saudi in the international financial system is growing. It’s an emerging global power. Now, after the G20 in 2020, Saudi is chairing the IMFC, which is the government body of the IMF,” Azour said.
He continued: “Also, Saudi is very active in a certain number of global initiatives, like the debt relief initiative through the common framework, as well as also a certain number of important initiatives related to the role of emerging markets” and their contribution in setting global priorities.
Azour also noted that despite enduring multiple global economic shocks over the past five years, beginning with the COVID-19 crisis, the Kingdom has sustained strong economic growth.
This resilience is largely attributed to government policies aimed at diversifying the economy beyond its reliance on oil. Fiscal policies have played a crucial role in strengthening economic management and stability.
“Accelerating economic transformation has been beneficial to the GCC countries, in particular to Saudi. It helped maintain a high level of growth despite the various shocks that the region and Saudi economy faced over the last five years, starting from the COVID crisis and going on with several other global shocks,” he said,
Azour added: “The investment in structural reforms that has increased women participation in the economy, improved the quality of infrastructure accelerated the trend in digitalization, has also contributed to accelerate the level of growth.
Furthermore, large-scale infrastructure and development projects have played a key role in building a more prosperous future for the Kingdom by fostering economic expansion and modernization, Azour further elaborated.
The conference is set to deliver key recommendations to bolster financial stability and drive sustainable growth in emerging economies.
Experts will also delve into the role of artificial intelligence and digital transformation in accelerating economic development across these markets.
Discussions will focus on strategies to enhance economic resilience, fostering stronger collaboration between emerging and advanced economies to pave the way for a more equitable and sustainable global future.
Closing Bell: Saudi main index slips to close at 12,372
Parallel market Nomu gained 121.76 points, or 0.39%, to close at 31,737
MSCI Tadawul Index lost 1.11 points, or 0.07%, to close at 1,537.16
Updated 16 February 2025
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 12.93 points, or 0.10 percent, to close at 12,372.07.
The total trading turnover of the benchmark index was SR4.1 billion ($1.09 billion), as 85 of the stocks advanced and 137 retreated.
However, the Kingdom’s parallel market, Nomu, gained 121.76 points, or 0.39 percent, to close at 31,737, as 44 stocks advanced while 40 declined.
The MSCI Tadawul Index lost 1.11 points, or 0.07 percent, to close at 1,537.16.
The best-performing stock of the day was AYYAN Investment Co., whose share price surged 4.67 percent to SR17.48.
Other top performers included Tanmiah Food Co., which climbed 4.27 percent to SR132, and Ash-Sharqiyah Development Co., which surged 4.16 percent to SR22.52.
Saudi Reinsurance Co. declined 3.28 percent to SR56.00, while Savola Group slipped 2.84 percent to SR37.65.
On the announcements front, Dr. Sulaiman Al-Habib Medical Services Group reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company posted a net profit of SR2.3 billion in 2024, marking a 13.16 percent increase from 2023. The growth was driven by higher revenue, attributed to a surge in patient numbers and increased inpatient occupancy.
The firm also announced its board of directors’ recommendation to distribute SR430.5 million in cash dividends to shareholders for the fourth quarter of the 2024 fiscal year.
A bourse filing showed that 350 million shares are eligible for dividends, with a payout of SR1.23 per share. The statement further noted that the dividend-to-par value ratio stood at 12.3 percent.
Dr. Sulaiman Al-Habib Medical Services Group closed at SR300, down 0.87 percent.
Umm Al-Qura for Development and Construction Co. announced the start of the institutional book-building period for its initial public offering, which comprises 130.7 million new ordinary shares for public subscription, representing 9.09 percent of the company’s shares post-capital increase.
A Tadawul statement revealed that the price range for the offering has been set between SR14 and SR15 per share. The minimum subscription for participating parties is 100,000 ordinary shares, while the maximum allocation is 71.9 million shares.
Meanwhile, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR95.8 million in 2024, marking a 26.2 percent increase from the previous year. The rise in profit was primarily driven by operational efficiencies and cost optimization.
Gulf economies more resilient amid high energy prices: QCB governor
Bandar bin Mohammed bin Saoud said strong oil and gas revenues have allowed Gulf nations to build financial buffers over the past few decades
He was speaking at the AlUla Conference for Emerging Market Economies in Saudi Arabia
Updated 16 February 2025
Reem Walid
RIYADH: High energy prices have strengthened the economies of Gulf Cooperation Council countries, making them less vulnerable compared to other regions, according to the governor of the Qatar Central Bank.
Speaking at a panel discussion titled “Resilience of the Financial System in Emerging Markets” on the first day of the AlUla Conference for Emerging Market Economies, Bandar bin Mohammed bin Saoud Al-Thani attributed this resilience to sovereign wealth funds, disciplined fiscal policies, and ongoing economic diversification efforts.
The remarks align with projections that the region’s gross domestic product growth will nearly double to 3.6 percent in 2025, compared to a global forecast of 2.8 percent, according to Oxford Economics. Credit rating agency S&P Global also expects GCC banks to maintain strong asset quality, profitability, and liquidity through 2025.
“In our region, which is the Middle East and North Africa, I look at it in two parts. The first part is GCC countries. GCC countries are less vulnerable, and they’re more resilient because of several factors,” Al-Thani said.
The Director General Chairman of the Board of Executive Directors at the Arab Monetary Fund, H.E. Dr. Fahad Alturki, says to manage cybersecurity risks in financial digitalization, it should not be slowed down but rather policymakers should "couple it with the right policy".… pic.twitter.com/Y5EhOqRfVR
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
He said that strong oil and gas revenues have allowed Gulf nations to build financial buffers over the past few decades, supporting their economies in times of uncertainty. “The third is the fiscal disciplines. Most of the GCC countries have a disciplined fiscal policy. Fourth, in my point of view, is that most of the GCC countries came up with a plan of diversifying their economies and they started to execute this plan,” he said.
Al-Thani also provided a global comparison, noting that while the US economy remains strong, with robust job markets and contained — but still elevated — inflation, other regions face different challenges.
The panel also explored financial sector trends in the Arab region, with Fahad Al-Turki, director general chairman at the Arab Monetary Fund, highlighting the dominance of banks.
“The financial sector within the Arab region is dominated by the banking sector — around 93 percent of the financial sector is banking, which represents around 145 percent of the GDP from the region; this compares to 220 percent in advanced economies,” Al-Turki said.
He said in the GCC, the banking sector’s contribution reaches about 240 percent of GDP. “There are three countries that account for almost two-thirds of the banking sector in the whole Arab region, and these countries are Saudi Arabia, the UAE, and Qatar,” he said.
The Governor of the Central Bank of the Republic of Azerbaijan, Mr. Taleh Kazimov @TalehKazimov_T, highlights the rise of digital assets, driving accelerated regulation. Compliance has advanced over the past three years, balancing economic activity with global standards and… pic.twitter.com/xNzDdoAHEU
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
The governor of the Central Bank of Azerbaijan, Taleh Kazimov, addressed the broader economic implications of geopolitical tensions, citing inflation, changes in international settlements, and regulatory shifts as key concerns.
Meanwhile, Andriy Pyshnyi, governor of the National Bank of Ukraine, underscored the distinct challenges facing his country’s financial system.
“Their activity and operations of the National Bank of Ukraine are defined by the war. The country that has been resisting a full-scale invasion for three years and therefore all processes that in one way or another define the logic of our actions, our policies, decisions, position are determined with the aim to ensure macro-financial stability in the conditions of the full-scale war,” Pyshnyi said.
The AlUla Conference for Emerging Market Economies, organized by the International Monetary Fund and Saudi Arabia, aims to tackle global economic challenges. The two-day event brings together finance ministers, central bank governors, policymakers, and leaders from the public and private sectors, alongside international institutions and academic experts.
Iran ready to strengthen economic ties with Saudi Arabia, says minister
Iran’s minister of economic affairs and finance said specific agreements would be necessary to facilitate trade between the two nations
He emphasized Iran’s commitment to strengthening ties with neighboring countries, particularly Saudi Arabia, Qatar, and Oman
Updated 39 min 51 sec ago
Nadin Hassan
RIYADH: Iran is prepared to enhance its economic and investment ties with Saudi Arabia, including the potential for joint projects. However, progress is contingent upon mutual willingness, according to a senior Iranian official.
In an interview with Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Abdolnaser Hemmati, Iran’s minister of economic affairs and finance, said specific agreements would be necessary to facilitate trade between the two nations.
“We are ready to boost our economic relation and investment relation between the two countries and joint investment projects between the two countries. But this depends on them, and I think the situation of the region is going to that era. We must start to have good relations with all together,” Hemmati said.
He added: “For starting and upgrading trade between two countries, we need to have some agreements. The main agreements is about eliminating double tax, bilateral investment, and also custom rules.”
Hemmati also emphasized Iran’s commitment to strengthening ties with neighboring countries, particularly Saudi Arabia, Qatar, and Oman.
The aim is to bolster both political and economic relations, with a strong focus on enhancing trade and commerce.
He added: “The first important matter is that growing political relations needs to upgrade our economic relations especially in the field of commerce and trade between two countries.”
Hemmati stressed the importance of fostering economic relations among countries in the region to safeguard against external interference. He highlighted that strong economic cooperation is essential for maintaining regional autonomy and stability.
At the conference, a key topic of discussion was the challenges and opportunities facing regional nations, with a particular emphasis on building economic resilience.
Hemmati reiterated that robust economic ties between neighboring countries are vital in order to prevent outside influence in their affairs.
Economic resilience, according to the minister, depends on strengthening cooperation among neighboring countries.
“The future of the region needs to have good economic relations between the member countries of the region,” Hemmati concluded.
Therefore, the future of the region depends on fostering strong economic ties between member countries to ensure long-term stability, security, and prosperity.
China’s central bank governor highlights key challenges for emerging markets at AlUla conference
Pan Gongsheng emphasized need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience
He said increasing geopolitical conflicts and protectionism disrupt international value chains and restrict flow of capital, technology, and labor
Updated 16 February 2025
NOUR EL-SHAERI
RIYADH: Emerging market economies are facing escalating challenges, including geopolitical tensions, sluggish global growth, financial volatility, and increasing public debt, according to the governor of the People’s Bank of China.
Speaking at the two-day AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the International Monetary Fund, Pan Gongsheng emphasized the need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience.
“In my view, emerging markets face four key challenges,” Gongsheng said. “The first challenge is geopolitical tension.” He highlighted how increasing geopolitical conflicts and protectionism disrupt international value chains and restrict the flow of capital, technology, and labor.
“There has been a drop in global growth and productivity gains and the rising divergences in key industries across countries, mainly due to uneven development and resource misallocation,” he said.
Pan Gongsheng, the governor of the People’s Bank of China, speaks during the AlUla Conference for Emerging Market Economies. AN Photo
Gongsheng’s remarks align with the IMF’s recent report, which warns that friendshoring — the practice of countries trading primarily with geopolitical allies — could reduce global economic output by up to 1.8 percent.
Emerging markets, particularly in Asia, may experience up to 6 percent declines due to this shift.
Despite these warnings, a Financial Times report said China has intensified its control over technology and resources, including restricting key battery technology exports, disrupting global value chains, and escalating geopolitical tensions.
Gongsheng identified the second challenge as the slower medium-term growth of the international economy.
“We are now facing policy uncertainties in some economies. If protectionism escalates, rising trade fluctuations will drive up inflation expectations and undermine medium-term growth,” he added.
Pan Gongsheng, the governor of the People’s Bank of China, warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility. AN Photo
Citing IMF forecasts, he said global economic growth is projected to hover at just 3 percent in the medium term, the lowest level since 2000.
Financial market volatility and capital outflows represent the third major challenge.
“The trajectory of the interest rate in major advanced economies remains highly uncertain,” Gongsheng said.
“Markets have become particularly sensitive to unexpected economic data. If rates differ and rise significantly from market expectations, market repricing may increase asset price volatility in emerging markets.”
This aligns with a recent Reuters report, which said emerging markets are facing significant challenges due to a strong US dollar and high treasury yields.
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
These factors have led to weaker local currencies, increased costs for servicing dollar-denominated debt, reduced capital inflows, and dampened economic growth.
Policymakers in these regions find it difficult to counteract these pressures effectively, which are further heightened by new US tariff and trade policies.
The fourth issue Gongsheng discussed was the burden of high public debt and its implications for financial stability.
“The IMF points out that global public debt risk has risen significantly due to political and other factors. Those risks not only exist in developing countries — the level of public debt in some advanced economies also merits close attention,” he said.
He warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility, with potential spillover effects on other asset classes, liquidity risks, and financial stability.
According to a report by the Institute of International Finance, the global debt stock increased by over $12 trillion in the first three quarters of last year, reaching nearly $323 trillion.
Pan Gongsheng, the governor of the People’s Bank of China, stressed the importance of multilateralism and global financial governance reform. AN Photo
The IIF attributes the rise to declining borrowing costs and a heightened risk appetite among investors, underscoring concerns similar to those expressed by the governor.
To address these challenges, Gongsheng outlined key policy responses for emerging markets.
“First, we should continue improving monetary policy frameworks, enhancing the efficiency of monetary policy transmission, increasing policy transparency, and improving policy communication,” he said.
He also advocated for increased exchange rate flexibility, stronger public debt management, improved macroprudential regulations, and the development of local currency markets to mitigate capital flow risks.
Gongsheng stressed the importance of multilateralism and global financial governance reform.
“The IMF has made great progress in surveillance and governance reform. At the same time, there is still more work to be done for us to advance global financial governance reform,” he said.
He called on the IMF to enhance support for developing countries, promote trade and investment liberalization, and establish comprehensive policy tools to help emerging markets address capital flow risks and external shocks.
“The current quota shares can no longer reflect the actual position of emerging markets in the global economy,” Gongsheng said, urging the IMF to establish a “concrete and binding timetable” for future quota realignments, with discussions on fiscal realignment plans set by June.
