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Algeria Calls on Europe to Increase Investments in Energy

Two workers in an Algerian oil field (Sonatrach)
Two workers in an Algerian oil field (Sonatrach)
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Algeria Calls on Europe to Increase Investments in Energy

Two workers in an Algerian oil field (Sonatrach)
Two workers in an Algerian oil field (Sonatrach)

Algerian Energy Minister Mohamed Arkab has called on Italian and European companies to increase investments in the energy sector in Algeria.

Speaking at an energy conference in Ravenna, Arkab said Algeria is engaged in talks to develop a southern European corridor for hydrogen.

For his part, CEO of the Algerian company Sonatrach Rachid Hachichi said Algeria is committed to supplying gas to Italy through the Italian energy group Eni, but investments are needed to meet demand.

Hachichi said at the conference that Algeria's natural gas production reached 100 billion cubic meters annually, and consumption is 45 billion cubic meters, making the rest available for export.

The CEO of the Italian company Eni, Claudio Descalzi, explained that Italy is not concerned about gas supplies despite the current crisis in the Middle East.

Descalzi added that the conflict in the Middle East does not impact gas supplies but its prices.

Gas prices in Europe have risen by more than 30 percent since Oct. 7, after the outbreak of the conflict between Israel and Gaza, but they declined on Monday evening, driven by expectations that moderate weather will prevail for the rest of October.

Benchmark futures moved slightly higher after falling 6.4 percent earlier on Monday.

The contracts are about 30 percent higher than before the Oct. 7 attack.

Traders are watching every headline on how the situation in the region develops amid risks that could impact fuel flows.

Demand remains below normal after last year's energy crisis forced companies and households to reduce usage.

On Monday, Arkab said that the Sonatrach Petroleum Corporation has plans for a project aimed at natural carbon storage with an investment estimated at $1 billion.

The minister added that the project includes planting 420 million trees over ten years.

Arkab said it was necessary to continue producing fossil energy, especially gas, according to strict rules to reduce its environmental impact, reduce emissions, and promote investment in new and renewable energy.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.