Saudi Arabia part of China trial of yuan digital currency payments
Saudi Arabia part of China trial of yuan digital currency payments/node/2574848/business-economy
Saudi Arabia part of China trial of yuan digital currency payments
The central bank wants to promote interconnectivity in global financial infrastructure and the new trial aims to find solutions to issues that arise in cross-border settlements. (AFP)
Saudi Arabia part of China trial of yuan digital currency payments
Cut costs by 50%, takes seconds, says People’s Bank of China
New trial comes as the digital yuan is facing problems at home
Updated 13 October 2024
Arab News Japan
TOKYO: China has started a trial for cross-border payments using central bank digital currencies with Saudi Arabia, the UAE, and other partners as it looks at alternative uses for the digital yuan amid its struggles in the home market, Nikkei Asia has reported.
The CBDCs use blockchain technology to record transactions. They can allow cross-border payments to be completed within seconds and cut costs by up to 50 percent, according to the People’s Bank of China.
The central bank wants to promote interconnectivity in global financial infrastructure and the new trial aims to find solutions to issues that arise in cross-border settlements.
Currently, international payments pass through so-called correspondent banks based on orders placed via the SWIFT messaging platform. The process can take a few days to about a week.
Cross-border payments are also typically made in dollars. Low-cost transfers using CBDCs could help promote non-dollar transactions and reduce China’s dependence on the dollar.
Seven central banks — including in Japan, the US and Europe — also announced a joint trial for CBDC payments in April with private-sector partners.
The new trial comes as the digital yuan is facing problems at home. China has also experimented with using the digital yuan for salary and tax payments, and digital yuan transactions totaled 7 trillion yuan ($992 billion) at the end of June, according to the PBOC.
However, Chinese users see little advantage to the digital yuan over popular private-sector payment apps, such as WeChat Pay and Alipay. More than 80 percent of payment transactions in China are believed to be cashless.
Oil Updates – crude slips on China stimulus concerns, oversupply outlook
Updated 11 sec ago
Reuters
BEIJING: Oil prices eased on Tuesday as investor disappointment over China’s latest stimulus plan and oversupply concerns weighed on the market, along with a stronger dollar.
Brent crude futures fell 17 cents, or 0.2 percent, to $71.66 a barrel, by 8:50 a.m. Saudi time. US West Texas Intermediate crude futures were at $67.84 a barrel, down 20 cents or 0.3 percent.
Both contracts had fallen by more than 5 percent over the previous two trading sessions.
China unveiled a 10-trillion-yuan ($1.4 trillion) debt package on Friday to ease local government financing strains, as the world’s biggest oil importer faces fresh pressure from the re-election of Donald Trump as US president.
But analysts said it fell short of the amount of stimulus that would be needed to boost growth.
While crude oil prices extended losses on a stronger US dollar, concerns also emerged over demand in China, ANZ Research analysts said in a note.
“Data released over the weekend showed anaemic consumer inflation in October and another decline in factory gate prices,” they said.
The market is now looking ahead to the release of monthly oil market reports from OPEC, the International Energy Agency and the Energy Information Administration, the analysts added.
“Any further downgrades on demand, particularly from OPEC, could weigh on sentiment.”
The OPEC monthly report is set to be released later on Tuesday.
The market will be looking out for further downward revisions in demand from the group’s outlook through 2025, which would add to downward pressure on prices.
“We think OPEC+ will be forced to keep delaying the decision to roll back their voluntary cuts. This decision will still result in surplus pressures building,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia.
“The key risk to our outlook is that OPEC+ look to unwind their voluntary supply cuts from January, thereby exacerbating oversupply pressures,” he added.
“Any hint that OPEC+ are opting to defend market share over targeting higher oil prices has the potential to see oil prices tumble.”
The US dollar held around four-month highs on Tuesday, as it is expected to benefit from policies that are likely to keep US interest rates relatively higher for longer.
Markets are also bracing for further signals from US inflation data and Federal Reserve speakers this week.
A stronger dollar makes commodities denominated in the US currency, such as oil, more expensive for holders of other currencies, and tends to weigh on prices.
UrbanV joins forces with Cluster2 to revolutionize air mobility in Saudi Arabia
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Saudi airports under Cluster2’s management will soon begin feasibility studies to explore the implementation of advanced air mobility solutions.
This initiative is part of a new partnership with UrbanV, an Italian vertiport operator.
The two sides have signed a memorandum of understanding aimed at developing both advanced air mobility and urban air mobility services within Saudi Arabia.
The agreement, signed by Ali Masrahi, CEO of Cluster2, and Carlo Tursi, CEO of UrbanV, focuses on creating an integrated ecosystem for AAM across Cluster2’s network of airports.
Beyond feasibility studies, the partnership will establish a framework for the design, development, and management of AAM and UAM solutions. This will ensure compliance with regulations set by the Kingdom’s General Authority of Civil Aviation, as well as safety standards and environmental sustainability goals.
UrbanV will contribute its expertise in AAM operations, providing technical training, knowledge transfer, and collaboration with key stakeholders.
As part of the collaboration, pilot programs will be launched to test electric vertical take-off and landing services in areas such as medical emergencies, VIP transport, and logistics. These trials will allow the partners to assess the operational feasibility of AAM in real-world conditions.
The companies have committed to supporting Saudi Arabia’s Vision 2030, including the use of zero-emission eVTOL vehicles and the development of environmentally sustainable vertiports.
“We are pleased to sign this partnership,” said Masrahi. “Through such collaborations, we aim to lead the way in creating advanced air mobility solutions and building an integrated ecosystem for airports across the Kingdom, while ensuring environmental sustainability at all our facilities.”
Tursi shared a similar sentiment, stating, “At UrbanV, we aim to improve people’s lives by enabling a fast, efficient, safe, and clean alternative for short-distance transport solutions for both people and goods by air. We are ambitious to become a global leader in operating vertiport networks and pioneering some of the world’s first AAM routes. We are excited to partner with Cluster2, a key player in airport management, and look forward to exploring the vast potential of introducing advanced air mobility in Saudi Arabia.”
Cluster2’s strategic objectives include increasing annual passenger traffic, expanding airport capacity, connecting Asia, Europe, and Africa via Saudi Arabia, and increasing the number of international routes in the Kingdom.
The company currently manages 22 airports across Saudi Arabia, including AlUla International, King Abdullah bin Abdulaziz Airport in Jazan, and King Saud bin Abdulaziz Airport in Al-Bahah.
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif met Saudi Investment Minister Khalid Al-Falih in Riyadh on Monday to discuss the progress of recently signed business agreements between the two countries, according to the Prime Minister’s Office.
On Oct. 10, Pakistani and Saudi businesses signed 27 memorandums of understanding worth $2.2 billion during Al-Falih’s visit to Islamabad. Later, during Sharif’s visit to Saudi Arabia on Oct. 30, Al-Falih announced that the number of agreements would be increased from 27 to 34, and the total value would rise to $2.8 billion.
Sharif is in Riyadh to attend the Arab-Islamic Summit. On the sidelines of the summit, he also met with Mohammed Al-Tuwaijri, the royal court’s adviser.
According to the Prime Minister’s Office, the meeting focused on reviewing the progress of economic cooperation initiatives between the two countries. Sharif praised the ongoing efforts of Pakistani and Saudi technical teams working on these major projects.
The meeting comes as Pakistan seeks to strengthen trade and investment ties with its allies, particularly Saudi Arabia. The Kingdom has pledged a $5 billion investment package, which is crucial for Pakistan as it grapples with a dire balance of payments crisis and dwindling foreign reserves.
To tackle its economic challenges, Pakistan established the Special Investment Facilitation Council in 2023. This hybrid civil-military body aims to expedite foreign investments in key sectors like agriculture, mining, tourism, and minerals.
Sharif has been actively engaging in economic diplomacy in recent months, seeking increased investments and fostering trade and regional connectivity. Pakistan is positioning itself as a key trade and transit hub linking Central Asia with the global market, while also seeking mutually beneficial partnerships with Gulf countries.
Cityscape Global 2024 to pave the way for innovation in real estate, minister says
Updated 11 November 2024
REEM WALID
RIYADH: Cityscape Global 2024 is expected to drive innovation and sustainable advancements within Saudi Arabia’s real estate market, broadening growth opportunities, according to a top official.
The opening day of the event, which is taking place in Riyadh from Nov. 11 – 14, saw the Saudi Minister of Municipalities and Housing, Majid bin Abdullah Al-Hogail, explain that the Kingdom is working to develop the sector further to achieve the nation’s ambitions.
This comes as Saudi Arabia’s real estate is a vital element of the country’s economy, contributing around 7 percent of gross domestic product and supporting numerous additional sectors.
“The Kingdom’s hosting of the Cityscape Global for the second time is an affirmation of the Kingdom’s position, which has become a leading model in the field of innovation and real estate development and a global center that leaves a clear imprint in building the cities of the future,” Al-Hogail said.
“Today, we are not only hosting a real estate event, but we are opening the doors to new horizons of innovation and sustainable advancement to achieve the future of our ambitious country under the slogan ‘The Future of Life,’” he added.
Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail speaking at the event. X/@CSGlobalKSA
The minister went on to say that the number of local developers at the exhibition has doubled to more than 100, and the total of high-level real estate firms participating is up from from 54 to 69.
“Of course, this increase comes in light of the accelerating growth witnessed by the sector since the beginning of this year,” he added.
Al-Hogail further highlighted that this growth has brought about a rise in real estate deals, the value of which has exceeded SR630 billion ($167 billion) since the beginning of the year, making this sector one of the most important economic engines contributing to the development of the economy.
“All these efforts aim to accelerate the development of real estate refinancing market programs in the Kingdom and expand through local and international capital market channels so that we can ensure the continued growth of this sector, which I undoubtedly expect to reach more than SR1.3 trillion, for the housing sector alone, in 2030,” he said.
Toward the conclusion of his speech, the minister also underlined that the total value of launches and strategic agreements in Cityscape Global 2024 exceeds SR180 billion.
In terms of announcements, Saudi National Housing Co. launched a new identity and strategy, which CEO Mohammad Saleh Al-Buty said included a “major expansion in pioneering projects.”
He added: “Today, from this place, I am pleased to inform investors about investment opportunities for the year 2025 with a value exceeding SR75 billion in residential projects and others.”
Saud-based Retal Urban Development Co. also announced major projects for 2024.
“In the name of ambition and achievement, and out of our keenness to achieve and realize hopes, Retal announces a group of projects for the year 2024 worth more than SR14 billion,” the firm’s CEO Abdullah Al-Braikan said.
Retal Urban Development Co. CEO Abdullah Al-Braikan. X/@CSGlobalKSA
Moving on to Diriyah Development Co., the developer announced the launch of 59 new luxury apartments and villas for the Signature Collection of The Ritz-Carlton Residences, Diriyah, marking the latest release of its luxury branded residences.
This launch follows the successful sell-out of the initial 106 Ritz Carlton Residences.
Diriyah Development Co. also launched the first luxury residential group, “Raffles Residences Diriyah”, affiliated with Raffles Hotels and Resorts, during its participation in the Cityscape Global exhibition in Riyadh, as part of the company’s continued provision of high-quality living standards with international standards in Diriyah.
The new residence will offer 90 luxury residences, ranging from one, two and three-bedroom suites to duplex villas and townhouses, with residents enjoying full access to the hotel’s world-class facilities.
During the announcement, Mohamed Saad – from the firm’s DevCo. division – introduced a new collection featuring 59 fully furnished apartments and villas, available in one- to four-bedroom configurations.
Mohammad Al Habib Real Estate Co. also announced a new development during the event, which will be located in Riyadh, while founder and Chairman of Mountain View Amr Soliman also shed light on his firm’s first project to date in the Kingdom.
“Mountain View One”, situated in the north of Riyadh, will have an investment value of $320 million, with 500 villas.
Mohammad Al-Othman, CEO of Kaden, used the event to announce the Jeddah Front project which spans 1 million sq. meters and involves total investments of up to SR10 billion.
“The waterfront will feature 5,000 residential units, housing approximately 20,000 residents. It also includes recreational spaces covering 140,000 sq. meters and a business sector area reaching 138,000 sq. meters,” Al-Othman said, adding that there will also be around 800,000 hotel units.
CEO of Tilal Real Estate Co. Abdulrahman Al-Bassam, who also spoke during the event, tackled the “Heart of Khobar” project, which is set to be valued at above SR6 billion upon completion of its phases.
“On this occasion, we are pleased to announce the signing of the operational agreement for the project with 25Hours from the Accor Group. This project will be the second of its kind after Trojena in NEOM,” Al-Bassam said.
Co-founder of Flow Adam Neumann also disclosed the company’s first local real estate fund worth SR1.1 billion, with Sico and Safa as partners.
PIF’s EV maker Ceer secures advanced drive systems through new partnership
Partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications to large-scale projects
Venture marks Rimac’s first partnership in the GCC region
Updated 11 November 2024
Nour El-Shaeri
RIYADH: Saudi Arabia’s first electric vehicle brand, Ceer, is set to equip its flagship models with high-performance, fully integrated Electric Drive Systems through a newly announced partnership with Croatia-based Rimac Technology.
The automobile manufacturer, a joint venture between Saudi Arabia’s Public Investment Fund and Foxconn, aims to leverage Rimac’s expertise in performance powertrain technology to enhance its upcoming EV lineup.
The agreement was formalized at a signing ceremony in Croatia attended by Ceer CEO James DeLuca and Rimac Technology CEO Mate Rimac.
“We are delighted to be the first company and large-scale project in the GCC to partner with Rimac Technology to equip Ceer flagship vehicles with the most advanced high-performance electric drive systems and solutions,” said DeLuca.
“Rimac’s global reputation and know-how in designing leading-edge performance powertrain systems aligns perfectly with our strategic objectives of partnering with global industry leaders as we fulfill our commitment to delivering world-class, high-performance electric vehicles and revolutionizing the automotive industry in Saudi Arabia,” he added.
The partnership represents a significant milestone for Rimac Technology as it expands its scope from low-volume, high-performance applications, such as the Rimac Nevera and Aston Martin Valkyrie, to large-scale projects.
Rimac has recently increased its focus on electrification partnerships, including a long-term collaboration with BMW to supply high-voltage battery systems.
“The collaboration with Ceer further solidifies Rimac Technology’s global electrification ambitions,” said Rimac.
“This year alone we’ve announced several key partnerships, including with the BMW Group and Ceer, which will produce tens of thousands of electric drive systems and battery systems for leading OEMs (original equipment manufacturers) worldwide.” he added.
This venture marks Rimac’s first partnership in the Gulf Cooperation Council region, positioning it to support Ceer’s vision of advancing the EV market in Saudi Arabia.
