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US businesses eye opportunities in Saudi market at Riyadh forum

The forum was attended by Waleed Al-Orainan, secretary-general of the FSC, and Alison Dilworth, deputy chief of mission at the US Embassy. SPA
The forum was attended by Waleed Al-Orainan, secretary-general of the FSC, and Alison Dilworth, deputy chief of mission at the US Embassy. SPA
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Updated 09 December 2024
MOHAMMED AL-KINANI
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US businesses eye opportunities in Saudi market at Riyadh forum

US businesses eye opportunities in Saudi market at Riyadh forum
  • Kingdom is third-largest source of imported oil to the US, supplying approximately half a million barrels per day
  • Forum’s discussions centered on Saudi Arabia’s Vision 2030
Updated 09 December 2024
MOHAMMED AL-KINANI
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JEDDAH: US companies are eager to capitalize on the Kingdom of Saudi Arabia's rapidly growing market, with new opportunities in energy, transportation, tourism, and healthcare highlighted at the Saudi-US Business Forum held in Riyadh.

Organized by the Federation of Saudi Chambers in collaboration with the US Department of Commerce, the event took place on Dec. 8, according to the Saudi Press Agency.

The forum was attended by Waleed Al-Orainan, secretary-general of the FSC, and Alison Dilworth, deputy chief of mission at the US Embassy, alongside representatives from both the Saudi and US governments and private sectors.

According to the US Department of State, the two nations share a strong economic relationship, with the US being Saudi Arabia’s second-largest trading partner and Saudi Arabia ranking as one of the US’ top trading partners in the Middle East.

The Kingdom is also the third-largest source of imported oil to the US, supplying approximately half a million barrels per day, as reported in the 2023 bilateral relations report. The two countries have a Trade and Investment Framework Agreement in place to foster deeper economic cooperation.

The forum’s discussions centered on Saudi Arabia’s Vision 2030, which aims to diversify the Kingdom’s economy and increase trade and investment opportunities with the US and other global markets. The event provided a platform for 72 US-based companies to explore export prospects in Saudi Arabia and investment opportunities in Vision 2030 mega-projects.

A key highlight was the anticipated $7 trillion in government spending through specialized development funds, creating significant opportunities for US businesses.

Special attention was given to innovative US exports, products, and services, with a number of participating companies being women-owned, aligning with Vision 2030’s focus on empowering Saudi women in the workforce.

Both sides expressed optimism that forums like the Saudi-US Business Forum would strengthen bilateral economic ties, enhancing cooperation through continuous dialogue between public and private sector representatives from both countries.

Trade between Saudi Arabia and the US reached $34 billion in 2023. The Kingdom’s leading exports to the US included mineral products and fertilizers, while machinery and mechanical appliances were among the top US exports to Saudi Arabia, according to SPA.

Topics: economy trade US Saudi Arabia

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Robust manufacturing sector lifts Saudi industrial index by 5%: GASTAT

Robust manufacturing sector lifts Saudi industrial index by 5%: GASTAT
Updated 18 min 21 sec ago
MIGUEL HADCHITY 
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Robust manufacturing sector lifts Saudi industrial index by 5%: GASTAT

Robust manufacturing sector lifts Saudi industrial index by 5%: GASTAT
Updated 18 min 21 sec ago
MIGUEL HADCHITY 

RIYADH: Saudi Arabia’s industrial production index rose by 5 percent year on year in October, driven by robust growth across key economic sectors, official data showed. 

According to figures from the General Authority for Statistics, the index also edged up 0.4 percent month on month, reaching 106.9 points. 

The mining and quarrying sub-index, which includes oil production, recorded a slight 0.4 percent annual increase, with oil output ticking up to 8.97 million barrels per day from 8.94 million a year earlier. 

Despite the annual increase, monthly performance for this sector remained stable with no significant changes recorded between September and October. 

The manufacturing sector continued its robust growth, recording a 12.4 percent year-on-year increase in October. This expansion was primarily driven by a 32.6 percent surge in the production of coke and refined petroleum products compared to the same month of 2023. 

Saudi Arabia’s industrial production, central to Vision 2030, is driving economic diversification through manufacturing and non-oil growth. 

Other contributors to the sector’s growth included the manufacture of chemicals and chemical products, which rose by 0.6 percent, and food products, which grew by 4.8 percent. 

On a month-to-month basis, the manufacturing sub-index advanced by 1.1 percent, driven by a 2.7 percent increase in coke and refined petroleum products and a 0.2 percent rise in chemicals and chemical products.  

Other manufacturing activities exhibited varied growth rates. The manufacture of non-metallic mineral products increased by 1.8 percent year-on-year and 0.8 percent month-on-month. 

Basic metals manufacturing expanded by 4.3 percent annually and 1 percent compared to the previous month. 

Paper and paper product manufacturing saw an 11 percent annual rise and a 1.1 percent monthly increase, while the production of electrical devices grew by 9.2 percent year-on-year and 0.1 percent month on month. 

Furniture manufacturing posted notable growth, rising 14.4 percent annually and 0.5 percent monthly. Other economic activities within the manufacturing sector recorded a 4.3 percent year-on-year increase and a 0.3 percent monthly uptick. 

In the utilities sector, the sub-index for electricity, gas, steam, and air conditioning supply rose by 6.2 percent year on year. Similarly, the sub-index for water supply and sewerage as well as waste management activities climbed by 8.4 percent over the same period. 

These sectors also recorded positive monthly growth. The sub-index for electricity, gas, steam, and air conditioning supply rose by 0.9 percent compared to September 2024, while the water supply, sewerage, and waste management sub-index increased by 1.4 percent. 

In October, oil-related activities expanded by 5.4 percent year on year and 0.5 percent month on month. 

Non-oil activities also showed solid growth, rising 4 percent annually and 0.3 percent monthly. This highlights Saudi Arabia’s commitment to diversifying its industrial base as part of its Vision 2030 initiative. 

The IPI tracks changes in industrial output, using the International Standard Industrial Classification framework to monitor sectors such as mining, manufacturing, utilities, and waste management. 

Topics: manufacturing General Authority for Statistics (GASTAT) Industrial Production Index

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Pakistan stock market crosses 111,000 points on hopes of interest rate cut 

Pakistan stock market crosses 111,000 points on hopes of interest rate cut 
Updated 10 December 2024
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Pakistan stock market crosses 111,000 points on hopes of interest rate cut 

Pakistan stock market crosses 111,000 points on hopes of interest rate cut 
  • KSE-100 index climbed 1,482.06 points, or 1.35 percent, to reach 111,452.44 points
  • Pakistan slashed interest rates by 250 basis points in November to revive economy
Updated 10 December 2024
Hasaan Ali Khan

ISLAMABAD: The Pakistan Stock Exchange (PSX) crossed 111,000 points during intra-day trading on Tuesday, analysts said, amid hopes of an interest rate cut.
The benchmark KSE-100 index climbed 1,482.06 points, or 1.35 percent, to reach 111,452.44 points from the previous close of 109,970.38 points, making it the 10th consecutive session when shares traded in green at the market.
Analysts credited the rally to positive sentiment prevailing in the market amid an optimistic overall outlook.
“Not unusual to see profit-taking come through after the steep recent increase,” Raza Jafri, head of equities at Intermarket Securities, told Arab News. “The overall outlook remains bullish though on reducing interest rates and the government’s commitment to reforms.”
Pakistan had slashed interest rate by 250 basis points in November to help revive a sluggish economy, amid a major drop in the annual inflation rate. The State Bank has slashed interest rate by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps at the upcoming Monetary Policy Committee meeting on Dec. 16.
Arif Habib Corporation CEO Ahsan Mehanti said stocks remained bullish after National Savings Schemes rates were cut, amid speculation of further reductions.
“Robust economic indicators, rupee stability and recovery in global equities on receding geo-political tensions played a catalyst role in record surge at the PSX,” he told Arab News.
Pakistan’s annual consumer inflation also dropped to 4.9 percent in November below government projections, primarily due to a high base from the previous year. This marked a decline from 7.2 percent in October and a significant fall from the nearly 40 percent multi-decade high recorded in May 2023.

Topics: Pakistan Interest Rate Pakistan Stock Exchange

UAE to impose 15% minimum top-up tax on large multinationals from January

UAE to impose 15% minimum top-up tax on large multinationals from January
Updated 10 December 2024
Reuters
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UAE to impose 15% minimum top-up tax on large multinationals from January

UAE to impose 15% minimum top-up tax on large multinationals from January
  • DMTT is part of the OECD’s global minimum corporate tax agreement which has 136 signatories
  • UAE’s finance ministry said it is also considering introducing several corporate tax incentives
Updated 10 December 2024
Reuters

DUBAI: The UAE will impose a minimum top-up tax (DMTT) of 15 percent on large multinational companies operating in the country starting in January, the finance ministry said on Monday as the government seeks to boost non-oil revenue.
The DMTT is part of the OECD’s global minimum corporate tax agreement which has 136 signatories, including the UAE, to ensure big companies pay a minimum 15 percent and to make tax avoidance harder.
In amendments to the corporate tax law, the UAE’s finance ministry said the DMTT will apply to companies with consolidated global revenue of 750 million euros ($793.50 million) or more in at least two out of the four financial years preceding the ones in which the tax comes into effect.
The UAE, including Dubai, is a hub for multinationals in the Middle East and the tax amendments come a year after the UAE began rolling out a 9 percent business tax, with exemptions for the many free zones that power it's economy.
The DMTT comes under the Organization for Economic Co-operation and Development’s Two-Pillar Solution, which stipulates that large multinational enterprises pay a minimum effective tax rate of 15 percent on profits in each country where they operate.
The UAE’s finance ministry said it is also considering introducing several corporate tax incentives, including one for research and development that would apply for tax periods starting in 2026.
The expenditure-based incentive would offer a potential 30 percent to 50 percent refundable tax credit depending on the size of the company’s operations in the UAE and revenue, the ministry added.
A refundable tax credit for high-value employment activities that would be granted to companies as a percentage of eligible income costs for employees is also being considered and could be applied as early as Jan. 1 2025, the ministry said.
Such proposed incentives remain subject to legislative approval.

Topics: UAE tax Organization for Economic Cooperation and Development (OECD)

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Oil Update – prices ease, but China policy stance checks losses

Oil Update – prices ease, but China policy stance checks losses
Updated 10 December 2024
Reuters
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Oil Update – prices ease, but China policy stance checks losses

Oil Update – prices ease, but China policy stance checks losses
Updated 10 December 2024
Reuters

LONDON: Oil prices slipped on Tuesday as concerns eased about the fallout from Syrian President Bashar Assad’s overthrow, but the market found support in China’s vow to ramp up policy stimulus, which could boost the top global crude buyer’s demand.

Brent crude futures fell 26 cents, or about 0.4 percent, to $71.88 per barrel. US West Texas Intermediate crude futures were down 30 cents, also 0.4 percent lower, at $68.07 at 10:07 a.m. Saudi time. Both benchmarks climbed more than 1 percent on Monday.

“The tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption,” said IG market strategist Yeap Jun Rong.

Syria’s rebels were working to form a government, restore order after Assad ouster with the country’s banks and oil sector set to resume work on Tuesday.

While Syria itself is not a major oil producer, it is strategically located and has strong ties with Russia and Iran, and regime change could raise regional instability.

The power transfer followed 13 years of civil war and brought an end to over 50 years of brutal rule by the Assad family.

The market is also focused on the likelihood of a rate cut by the US Federal Reserve next week, which could boost oil demand in the world’s biggest economy.

The Fed is expected to cut rates by 25 basis points at the conclusion of its meeting on Dec. 17-18, but traders are waiting to see if inflation data this week could derail that outlook.

“Oil markets have been a function of demand more than supply-side narratives this year and as a result, investors are hesitant to take speculative positions in oil ahead of key policy decisions from the Fed,” said Phillip Nova senior market analyst Priyanka Sachdeva.

Declines were capped by positive expectations on China’s economy, following reports the country will adopt an “appropriately loose” monetary policy next year — the first easing of its stance in some 14 years, to spur economic growth in the world’s top oil importer.

While market hopes are high for aggressive policy stimulus, oil price gains may be limited until there is more clarity on what impact Beijing’s measures will have on the country’s crude demand outlook, IG’s Yeap said.

In a positive sign, China’s crude oil imports jumped in November from a year earlier in the first annual growth in seven months, data showed on Tuesday, as lower prices of Middle East supplies and stockpiling demand boosted buying.
 

Topics: oil update oil prices

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Egypt’s annual urban consumer price inflation at 25.5% in November 

Egypt’s annual urban consumer price inflation at 25.5% in November 
Updated 10 December 2024
REUTERS 
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Egypt’s annual urban consumer price inflation at 25.5% in November 

Egypt’s annual urban consumer price inflation at 25.5% in November 
Updated 10 December 2024
REUTERS 

DUBAI: Egypt’s annual urban consumer price inflation rate was 25.5 percent in November, slowing from 26.5 percent in October, data from statistics agency CAPMAS showed on Tuesday. 

Inflation began climbing precipitously in early 2022 following the Russian invasion of Ukraine, which prompted foreign investors to withdraw billions of dollars from Egyptian treasury markets. 

Headline inflation climbed to a record high of 38.0 percent in September 2023. By October 2024 it had fallen to 26.5 percent. 

The median forecast of 15 analysts in a Reuters poll had been for annual inflation to inch down to 26.4 percent last month. 

On a monthly basis, headline inflation rose by 0.5 percent in November, down from 1.1 percent in October, CAPMAS data showed.  

Food prices dropped by 2.8 percent on the month compared with 1.1 percent in October to stand 23.3 percent higher than they were a year earlier.  

Inflation has been fueled largely by an expansion of the money supply. Egypt’s M2 money supply grew by 29.54 percent year on year in October, central bank data showed. 

Topics: Egypt Inflation CPI CAMPAS

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