Riyadh aims for global status with strategic infrastructure, major events
Riyadh mayor said the city’s infrastructure now rivals that of the world’s most advanced cities
Major projects continue to be the key drivers behind Riyadh’s urban growth
Updated 11 November 2024
Miguel Hadchity
RIYADH: Saudi Arabia’s capital is rapidly transforming into a global urban hub, driven by ambitious infrastructure projects and a strategic focus on economic diversification, according to the city’s mayor.
Speaking at the Cityscape Global 2024 conference, Riyadh Mayor Prince Faisal bin Abdulaziz bin Ayyaf emphasized the city’s significant development, noting that its infrastructure now rivals that of the world’s most advanced cities.
“Riyadh is building on a very solid foundation with infrastructure that rivals cities worldwide,” Prince Faisal said, highlighting the city’s pivotal role in Saudi Arabia's broader economic diversification efforts.
The mayor pointed to the substantial impact of government spending on the city, particularly in job creation. He revealed that the cost of creating employment opportunities in Riyadh is around 30 percent lower than in other parts of the Kingdom.
Major projects, he added, continue to be the key drivers behind Riyadh’s urban growth. This transformation is particularly evident in the ongoing development of the Riyadh Metro, which is slated to become fully operational later this year. The $22.5 billion transport system will connect critical areas of the city, enhancing mobility through an expansive metro network.
Prince Faisal also underscored Riyadh’s growing ability to host and manage large-scale events, which are crucial to solidifying the city’s global identity.
“I believe that hosting millions of visitors has an impact on every resident of Riyadh, and the way the city manages them is fascinating,” he said.
As part of its global ambitions, Riyadh is preparing to host major international events such as Expo 2030, alongside numerous sports tournaments. These events not only contribute to the city’s economic growth but also help foster a sense of community among its residents.
Looking ahead, Prince Faisal shared a bold vision for Riyadh’s role as a global city by 2030. He envisions a seamless experience for visitors, from flying with Riyadh Air and taking the metro to the New Murabba Project, to attending events in Qiddiya and relaxing in the expansive green spaces of King Salman Park.
The Cityscape Global 2024 conference, held from Nov. 11-14 in Riyadh, further highlights the city’s drive to become an international business hub, with over 400 exhibitors and more than 500 speakers showcasing the future of urban living.
More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties
Updated 18 sec ago
MOHAMMED AL-KINANI
JEDDAH: Representatives from 72 Saudi firms are part of a group visiting Poland and Slovakia in a bid to increase trade with the European countries.
Delegates from Federation of Saudi Chambers are also part of the trip, which will see high-level economic meetings involving senior government officials and private sector representatives. Their objective is to explore investment opportunities and sign several agreements and commercial partnerships.
The delegation, led by Chairman of the Federation of Saudi Chambers Hassan bin Mujib Al-Huwaizi, includes over 72 business representatives from various economic sectors, along with governmental entities and authorities, according to the Saudi Press Agency.
In August, the Kingdom and Poland established a joint business council for the 2024-2028 term to boost trade and investment between the two countries. The move is part of the nation’s broader strategy to deepen economic ties with Europe, with a particular focus on Poland, one of the continent’s largest economies.
Poland has seen impressive growth in its agri-food sector, with exports reaching a record €47.9 billion ($51.1 billion) in 2023 — a €10 billion increase from the previous year.
In 2023, Saudi Arabia’s trade exchange with Poland reached SR33.7 billion. The Kingdom’s primary exports to Poland include mineral products and plastics, while Poland’s main exports to the Arab country consist of tobacco, machinery, and mechanical appliances.
The relationship between Saudi Arabia and Slovakia has also witnessed growth following the official opening of the Slovak Embassy in Riyadh in recent years. Additionally, bilateral trade has increased significantly, highlighting untapped investment opportunities.
The delegation will begin its visit to Poland by holding the Saudi-Polish Business Council meeting, a joint forum, and bilateral meetings between representatives.
In Slovakia, the delegation will host the Saudi-Slovak Business Forum, conduct meetings between companies from both sides and sign an agreement to establish a joint business council.
Through its recent series of international visits to ten countries, the federation is leading efforts to open new markets and opportunities for the Kingdom’s backers and to boost trade and investment exchanges with countries worldwide, in alignment with the aspirations of Saudi Vision 2030.
Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia
Updated 4 min 28 sec ago
Mohammed Al-Kinani
JEDDAH: Saudi Arabia’s Black Arrow Tire Co., or Blatco, has partnered with Thailand’s Golden Star Rubber Co. to build the Middle East’s largest tire manufacturing facility in Yanbu, with a $470 million investment.
The plant will initially produce 4 million tires annually for passenger vehicles, with plans to expand production to 6 million tires per year, including truck and bus tires. The agreement see the facility supplied with the natural rubber required for tire production in the Kingdom.
The Yanbu facility is set to boost Saudi Arabia’s industrial capabilities and will create more than 2,000 local jobs. The partnership will supply the facility with the natural rubber required for tire production in the Kingdom.
The Saudi tire market, which produced 22.6 million units in 2023, is projected to grow at a compound annual growth rate of 1.26 percent, reaching 25.5 million units by 2032, according to market research firm IMARC Group.
Largely import-driven, the sector is dominated by Chinese tire brands due to their affordability and availability. However, flagship brands have gained traction in recent years, thanks to their higher quality and longer product lifecycles, the report added.
The ceremony to mark the deal, signed by Blatco Chairman Abdullah Al-Wahibi and Golden Star Rubber Chairman Amir Zafar, was also attended by Hassan Al-Huwaizi, president of the Federation of Saudi Chambers of Commerce, Al-Ekhbariya reported.
The agreement aligns with Vision 2030’s goals to localize industries, transfer knowledge, and support domestic content. The partnership is also supported by the Saudi-Thai Business Council, aimed at strengthening commercial and investment ties between Saudi Arabia and Thailand.
The plant will be situated in the Kingdom’s industrial city on the Red Sea, under the Royal Commission for Jubail and Yanbu. Blatco officials anticipate that 50 percent of production will be consumed locally, with the remainder to be exported to regional markets.
Earlier this year, Blatco signed a 20-year technology export agreement with South Korea’s Kumho Tire. As part of the deal, Kumho Tire agreed to supply Blatco with the technology to produce passenger car tires for the Middle East, including Saudi Arabia.
Founded in Riyadh in 2019, Blatco aims to become a key player in automotive manufacturing and distribution in the region. The company focuses on contributing to Saudi Arabia’s economy, creating jobs, and supporting technology transfer initiatives, according to its website.
In October 2023, the Kingdom’s Public Investment Fund announced a separate $550 million tire factory in a joint venture with Italy’s Pirelli.
PIF holds a 75 percent stake in the venture, with Pirelli providing technology and commercial support. The facility, set to begin operations in 2026, will produce tires for passenger vehicles under the Pirelli brand and a new local brand for domestic and regional markets.
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for all sectors to fulfill their tax obligations, emphasizing that economic development hinges on collective responsibility and adherence to tax laws.
The government has set an ambitious target to increase the tax-to-GDP ratio from less than 10 to 13 percent over the next three years, describing the current revenue generation level as “unsustainable.”
Faced with persistent tax evasion, authorities are implementing reforms aimed at automating the tax collection system, broadening the tax base, and enforcing strict compliance measures.
The prime minister raised the issue while chairing a meeting to review the economic situation in the country.
“Economic development is only possible when everyone fulfills their share of responsibility,” he was quoted as saying in a statement released after the meeting by his office. “All sectors must pay taxes to contribute to national progress.”
During the meeting, he noted that inflation had decreased from 38 percent to seven percent, and the interest rate had been reduced from 22 percent to 15 percent. He maintained these developments were expected to boost business activity and create new employment opportunities in the country.
The prime minister also commended the provincial administrations for their reforms in the agricultural sector, pointing out it had contributed to Pakistan’s economic stability.
Pakistan’s economy has faced significant challenges in recent years, including high inflation and fiscal deficits.
The government’s focus on tax reforms and economic stabilization measures aims to address these problems and set the country on a path toward sustainable growth.
Dubai’s annual inflation rate slows to hit lowest level in 14 months
Updated 2 min 10 sec ago
REEM WALID
RIYADH: Dubai’s annual inflation rate slowed again in October, reaching its lowest level in 14 months, official figures showed.
According to data released by the Dubai Statistics Center, the emirate’s inflation rate reached 2.4 percent in October, driven by a deeper deflation in transport prices, which fell by 10.6 percent compared to an 8 percent decline in September.
Dubai’s inflation rate has been relatively low compared to other major cities in the region, reflecting the government’s proactive measures to manage price stability and sustain economic growth.
Amid global inflationary pressures, the emirate’s economy has remained resilient, benefiting from diversified sectors such as tourism, real estate, and trade.
In light of global and domestic factors, the UAE Central Bank projects inflation in the country as a whole for 2024 at 2.3 percent, compared to 1.6 percent in 2023, due to a moderate increase in commodity prices, wages, and rents.
The data further indicated a deflation in the tobacco price category to 3.63 percent, similar to that recorded in September.
The figures also showed slower deflation in the information and communication category, which saw an annual fall of 1.92 percent, compared to a decline of 2.05 percent in September.
Recreation, sport, and culture prices witnessed a year-on-year drop of 1.74 percent in October, a smaller decrease than the 2.66 percent seen in the previous month.
The data also revealed that the housing, water, electricity, gas, and other fuels sector witnessed a price increase, with a 7.16 percent surge, compared to 7.02 percent in September.
The insurance and financial services sector also witnessed a rise in prices, with a 5.83 percent rise in October, compared to 5.20 percent in the previous month.
Prices in education, health, and food and beverages also advanced in October. Education rose by 2.94 percent, health by 1.87 percent, and food and beverages by 1.85 percent.
In comparison, September’s increases were 2.94 percent for education, 1.88 percent for health, and 1.81 percent for food and beverages.
The personal care, social protection, and miscellaneous goods and services sector recorded a 1.67 percent jump in prices, while clothing and footwear was up 1.15 percent. Both of these were lower rises than in September.
In 2023, Dubai announced a plan aiming to boost foreign trade and investment in the UAE’s financial hub and “double the size” of its economy by 2033.
Arab stock markets up 2.14% in Q3, surpassing $4.3tn in market capitalization
Updated 31 min ago
Miguel Hadchity
RIYADH: Arab stock markets saw a 2.14 percent growth in the third quarter of 2024, driven by strong performances in Beirut, Egypt, and Damascus, according to the Arab Monetary Fund’s composite index.
The AMF’s quarterly report highlighted annual growth of 1.5 percent in the index, reflecting gains in 13 of the 16 tracked markets, while three recorded declines.
Regional reforms, such as Egypt’s privatization initiatives and Saudi Arabia’s Vision 2030 projects, played a significant role in bolstering market activity.
The UAE’s diversification efforts also contributed to the strength of its financial markets, particularly in renewable energy and technology sectors.
The AMF said: “The positive sentiment in Arab financial markets reflects investor confidence in ongoing economic reforms and robust corporate performances.”
Top performers
The Casablanca Stock Exchange. Shutterstock
The Beirut Stock Exchange led the gains with a 29.03 percent rise, marking the highest performance among Arab exchanges despite ongoing Israeli attacks on various Lebanese regions, including the capital.
According to the World Bank, the violence in the country has caused $8.5 billion in damages and losses, including $3.4 billion in physical damages and $5.1 billion in economic losses.
BSE was followed by the Egyptian Exchange, which increased by 13.76 percent, and the Damascus Securities Exchange, with a 12.66 percent rise.
In the UAE, Dubai Financial Market recorded an 11.75 percent gain, reflecting strong investor activity.
Other markets also posted significant performances. The Casablanca Stock Exchange grew by 8.06 percent, while stock markets in Qatar and Iraq posted increases of 6.52 percent and 5.35 percent, respectively.
The Saudi Exchange, known as Tadawul, saw healthy growth of 4.68 percent, underpinned by gains in non-oil sectors aligned with Vision 2030 objectives. Algeria and Oman reported smaller but steady increases of 4.9 percent and 0.49 percent, respectively.
Despite the positive trend in most markets, three exchanges reported declines, with Bahrain’s stock market falling by 0.63 percent, Amman’s by 0.82 percent, while Palestine’s saw the steepest drop at 7.78 percent.
Market capitalization
The combined market capitalization of Arab financial markets grew by 2.54 percent in the third quarter of 2024, reaching $4.30 trillion, up from $4.19 trillion in the previous three-month period. This represented an increase of $106.55 billion.
Abu Dhabi Securities Exchange contributed the most to this growth, adding $37.30 billion, followed by Dubai Financial Market with a $21.35 billion rise. Other notable increases came from Saudi Arabia, Qatar, and Morocco.
In terms of individual exchanges, the Saudi Exchange retained its position as the largest contributor, representing 62.7 percent of the total Arab market capitalization.
The UAE’s markets, including Abu Dhabi and Dubai, collectively accounted for 18.6 percent, while Qatar, Kuwait, and Morocco contributed notable shares. The rest of the Arab markets showed varying levels of growth, with Beirut and Cairo posting sharp rises in market value.
Trading volumes
The value of traded shares across Arab markets soared by 47.46 percent in the third quarter of 2024, reaching $328.92 billion compared to $223.06 billion in the previous three-month period.
The Iraq Stock Exchange reported the highest surge in trading volumes, increasing by 67 percent. The Egyptian Exchange followed with a 51.50 percent rise, while the Saudi Exchange and Abu Dhabi Securities Exchange also saw substantial gains of 25.73 percent and 21.01 percent, respectively.
Some markets experienced a downturn in trading activity. Palestine, Algeria, and Casablanca saw declines in traded volumes, attributed to specific local economic factors.
Across the Arab region, key sectors such as real estate, technology, and financial services performed strongly, attracting both local and foreign investments.
The financial results of listed companies and the announcement of quarterly dividends boosted investor confidence.
Key factors
Despite global economic uncertainties — ranging from fluctuating oil prices to geopolitical tensions — Arab markets demonstrated resilience. The AMF noted that the easing of monetary policies by major central banks, such as the US Federal Reserve and the European Central Bank, helped boost global liquidity flows into emerging markets, including the Arab region.
Oil price volatility played a role in shaping market performance in Q3. While oil-exporting countries like Saudi Arabia and the UAE experienced steady market performance, oil-importing nations such as Egypt and Jordan benefited from reduced energy costs, helping to ease inflationary pressures and stabilize their economies.
Global view
Arab stock markets’ 2.14 percent growth in the third quarter of 2024, with a total market capitalization surpassing $4.3 trillion, is relatively a great performance, especially when compared to other global equity markets.
For instance, the S&P 500 Index rose by 5.9 percent, while the Russell 2000 Index gained 9.3 percent, according to the investment consulting firm NEPC.
Internationally, emerging markets outpaced the Arab region, with the MSCI Emerging Markets Index rising by 8.7 percent and the MSCI China Index soaring by 23.5 percent.
However, the Arab markets’ performance is notable for its resilience, especially amid geopolitical tensions and fluctuating oil prices, reflecting the ongoing impact of structural reforms and regional initiatives like Saudi Arabia’s Vision 2030 and Egypt’s privatization efforts.
Outlook
The AMF emphasized the role of continued economic reforms and diversification in shaping the outlook for Arab financial markets.
“The ongoing efforts to attract foreign investment, improve market transparency, and support non-oil sectors are crucial for sustaining growth and enhancing the competitiveness of Arab financial markets,” AMF said.
