Paris Hosts Summit for a New Global Financing Pact

Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
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Paris Hosts Summit for a New Global Financing Pact

Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)
Paris, the capital of France, is hosting a global summit on Thursday and Friday under the theme “New Global Financing Pact” (Reuters)

The summit for a New Global Financing Pact, held in Paris for two days starting on June 22, gathers 50 heads of state and government, along with numerous ministers, high-ranking officials from international organizations, global financial institutions, and civil society organizations.

It is considered one of the largest forums worldwide, second only to the United Nations.

The international summit was launched by French President Emmanuel Macron in 2022.

It represents an expansion of a similar initiative proposed by Mia Mottley, the Prime Minister of the Caribbean island of Barbados, known as the “Bridgetown Initiative.”

The purpose of this initiative was to facilitate access to international financing sources for the countries most affected by climate change, enabling them to confront the environmental challenges faced by nations and islands primarily.

On the sidelines of the G20 Summit, Macron announced the organization of the current summit for a New Global Financing Pact, initially aimed at “exploring all means and methods to enhance international solidarity.”

However, the primary objective later expanded to encompass addressing the consequences of climate change, global crises, and discussing key issues related to the reform of multi-party development banks, debt crisis, poverty, health, innovative financing, international taxation, and Special Drawing Rights (SDRs).

As the gap widens between countries in the North and the South, this summit comes into play.

Its presumed objective is to provide the means to respond to the growing needs of most Southern countries in combating poverty and dealing with climate change, which leads to desertification, migration, wars, and environmental disasters.

The broader goal, which no one expects to be achieved in this summit, is to restructure a more just international financial system instead of the one established by the West following World War II.

According to the French presidency, the summit will examine the “restructuring” of financial institutions born out of “Bretton Woods” in the US, specifically referring to the International Monetary Fund (IMF) and the World Bank.

Saudi Arabia’s Crown Prince Mohammed bin Salman will participate in the summit. The presidents of Egypt, Tunisia, and Mauritania are also attending the summit.

Other Arab countries are represented at the ministerial level or through their diplomatic missions in Paris.

Among the notable attendees are the Secretary-General of the UN and the Presidents of Switzerland, South Korea, South Africa, Brazil, and several African countries.

Also present are the Prime Minister of China, the German Chancellor, the Italian Prime Minister, the President of the EU, and the President of the European Commission.

The US is represented by Treasury Secretary Janet Yellen. Notably absent from the summit is Russia, which was not invited to participate.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.