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Saudi Arabia Tops MENA Venture Capital Rankings for 2023

King Abdullah Financial Center in the capital, Riyadh (SPA)
King Abdullah Financial Center in the capital, Riyadh (SPA)
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Saudi Arabia Tops MENA Venture Capital Rankings for 2023

King Abdullah Financial Center in the capital, Riyadh (SPA)
King Abdullah Financial Center in the capital, Riyadh (SPA)

Saudi Arabia achieved first rank across MENA for the first time regarding the amount of Venture Capital (VC) funding in 2023, according to MAGNiTT, the MENA-based venture data platform.
The data confirmed that the Kingdom captured the highest share of total VC funding in the MENA region in 2023, accounting for 52% of the total capital deployed, up from 31% in 2022.
The funding deployed to Saudi Arabian startups grew by 33% in 2023 compared to 2022, confirming the attractiveness of the Saudi market, enhancing its competitive environment, and consolidating the strength of its economy as the largest in the MENA region.
CEO and Board Member at Saudi Venture Capital (SVC) Nabeel Koshak stated that the Kingdom's ascent in the regional VC landscape directly results from various government initiatives aimed at energizing the VC and startup ecosystem, part of Vision 2030 programs.
Koshak explained that the rise is further supported by enhancing the legislative and regulatory environment for the ecosystem, coupled with the emergence of dynamic investors from the private sector and innovative entrepreneurs.
He added that SVC plays a strategic role in advancing the VC ecosystem in the Kingdom, which has risen from being ranked fourth in the region for VC funding in 2018 to the top position in 2023.
The investment in Saudi startups has grown 21-fold in 2023 compared to 2018, the year SVC was established.
At SVC, "we remain committed to spearheading the evolution of the VC ecosystem in Saudi Arabia by encouraging private investors to support startups and SMEs, facilitating rapid and substantial growth," said Koshak.
He noted that the approach is integral to diversifying the national economy and realizing the objectives of Saudi Vision 2030.
SVC, established in 2018, is an investment company and an SME Bank subsidiary affiliated with the National Development Fund.
SVC's mission is to foster and sustain financing for startups and SMEs, from pre-seed to pre-IPO stages, through investments in funds and co-investment in startups and SMEs.

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Business

Red Sea Global Announces Cooperation with Oracle

Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
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Red Sea Global Announces Cooperation with Oracle

Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)
Red Sea Global (RSG) announced a cooperation with Oracle to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time. (SPA)

Red Sea Global (RSG) announced on Monday a cooperation with Oracle, a company specialized in hospitality, to introduce its technology solutions, including OPERA Cloud Central Hospitality platform, in the Kingdom for the first time.

Through this cooperation, RSG said it will establish premier luxury resorts such as Thuwal Private Retreat, Shebara, and Desert Rock, which are set to become the first resorts in the Kingdom to leverage Oracle's advanced cloud hospitality technology solutions.

Group CEO at Red Sea Global John Pagano said: "The Oracle Hospitality OPERA Cloud Central platform truly is best in class, but until now, it has not been accessible to the Saudi Arabian industry."

"Oracle was eager to be part of the exciting transformation happening in the Kingdom, especially in the hospitality industry. With their expertise and support, we now have the technology in place to deliver exceptional guest experiences, responding to our discerning visitors' needs before they know what they want," he added.

Executive Vice President and General Manager at Oracle Hospitality Alex Alt said: "Saudi Arabia is one of the world's most exciting hospitality market stories today, and by pioneering a regenerative approach to tourism, Red Sea Global is at the heart of that transformation. Now, Oracle will also be a part of shaping the sector's future in the region."

Business

Jeddah Historic District Program, Cruise Saudi Sign MoU to Take in Rising Number of Int'l Cruise Visitors

The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
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Jeddah Historic District Program, Cruise Saudi Sign MoU to Take in Rising Number of Int'l Cruise Visitors

The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)
The Jeddah Historic District Program and Cruise Saudi signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors. (SPA)

The Jeddah Historic District Program and Cruise Saudi, a company fully owned by the Public Investment Fund, signed a memorandum of understanding (MoU) to accommodate the increasing number of international cruise visitors who will enjoy exploring the authentic sites of the historic district.

"Central to the goals of the Jeddah Historic District Program and Cruise Saudi is introducing the region's historical landmarks and cultural identity, enlivening its commercial outlets, encouraging entrepreneurs to invest in the region, and supporting Saudi tourist guides to enhance the tourist experience," said the Jeddah Historic District Program in a statement carried by the Saudi Press Agency on Monday.

Jeddah Historic District Program Director General Abdulaziz bin Ibrahim Al-Issa said: "The tourism sector is experiencing growth and prosperity, which contributes to boosting the Kingdom's presence on the global tourism map, in line with Saudi Vision 2030."

"Our strategic partnership with Cruise Saudi aims to drive economic growth and actively engage in the district's revitalization. We are committed to protecting the tangible and intangible heritage that earned the district its UNESCO status, recognizing its profound cultural impact," he added.

"Jeddah’s Historic District is one of our most popular Shorex destinations, and we continue to witness how much international passengers enjoy exploring its unique historic sites through the tours and experiences we offer," said Cruise Saudi CEO Lars Clasen.

"This MoU represents our shared vision and marks an exciting new chapter, paving the way for collaborative efforts to draw even more visitors to this enchanting destination while protecting its heritage and authenticity," he added.

Business

Saudi Arabia’s flynas Reports 51% More Passengers in Q1 2024, 43% Seat Capacity Increase

flynas hit a record 43% increase in overall seat capacity in Q1 2024 over the same period in 2023. (SPA)
flynas hit a record 43% increase in overall seat capacity in Q1 2024 over the same period in 2023. (SPA)
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Saudi Arabia’s flynas Reports 51% More Passengers in Q1 2024, 43% Seat Capacity Increase

flynas hit a record 43% increase in overall seat capacity in Q1 2024 over the same period in 2023. (SPA)
flynas hit a record 43% increase in overall seat capacity in Q1 2024 over the same period in 2023. (SPA)

Saudi Arabia’s flynas announced on Monday the operational results for Q1 of 2024 as it continues to deliver on its ambitious growth strategy and expand its fleet size to accommodate strong passenger demand.

In Q1 2024, flynas welcomed 3.7 million passengers on board its flights, marking an increase of 51% over Q1 2023, the airline said in a statement.

flynas hit a record 43% increase in overall seat capacity in Q1 2024 over the same period in 2023, driven by domestic and international routes which were up 45% and 40% respectively.

“The strong start to the year underscores the effectiveness of our ambitious growth strategy. By tapping into the Kingdom’s economic growth and responding to increased passenger demand, we have successfully expanded our customer base,” said flynas Managing Director and CEO Bander Almohanna.

“Our progress is driven by leveraging exceptional talent, expanding our fleet, launching new destinations, introducing new products and enhancing our loyalty program,” he added.

“Looking ahead, we will continue building on our growth plans, through which we aim to connect the world with the Kingdom and support the development of the tourism and aviation sectors. We plan to capitalize on their growth potential by aligning with the National Civil Aviation Strategy and the Pilgrims Experience Program.”

flynas plays a key role in carrying out the Kingdom’s National Civil Aviation Strategy, which aims to connect Saudi Arabia with 250 international destinations, accommodate 330 million passengers, and host 100 million tourists annually by 2030.

During 2023, flynas launched 39 new routes to 18 destinations in 10 new countries and inaugurated its fourth operations base at Prince Mohammed bin Abdulaziz International Airport in Madinah.

flynas operates more than 1,500 weekly flights to more than 70 domestic and international destinations.

It received the Skytrax International Award as the 4th “Best LCC worldwide” and the “Best Low-cost Airline in the Middle East” in 2023 for the sixth time in a row. It won the “Best Low-cost Airline Award” in the Middle East from the World Travel Awards in 2024 for the tenth consecutive year.

Business

Iraq Stresses Commitment to OPEC+, Does Not Oppose Extending Production Cuts

Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
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Iraq Stresses Commitment to OPEC+, Does Not Oppose Extending Production Cuts

Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)
Iraqi Oil Minister Hayyan Abdul-Ghani during his participation in the licensing round for 29 oil and gas exploration areas on Saturday. (Reuters)

Iraqi Oil Minister Hayyan Abdul-Ghani resolved a debate that arose on Saturday after comments he made about his country’s refusal to agree to any new cuts in production, when the OPEC+ alliance meets in June.

In remarks to Iraq's state news agency INA, the minister said the country is committed to voluntary oil production cuts agreed by OPEC and is keen to cooperate with member countries on efforts to achieve more stability in global oil markets.

On Saturday, both Bloomberg and Reuters reported that Abdul-Ghani stated, at a press conference in Baghdad during the launch of a licensing round for oil and gas exploration, that Iraq would not support extending the reduction in oil production during the upcoming OPEC Plus meeting.

INA quoted the minister as saying that the Ministry of Oil “is keen on the cooperation of member states and working to achieve greater stability in the global oil market by agreeing on voluntary reduction programs.”

A high-level source had previously informed Asharq Al-Awsat that what was reported about Abdul-Ghani was inaccurate, adding that a clarification statement would be issued in this regard.

The members of the OPEC+ alliance are scheduled to meet in early June to decide on oil production during the third quarter of the year. OPEC and its allies, led by Russia, are widely expected to extend current quotas to help boost the oil market.

Iraq has faced difficulties in complying with its target of 4 million barrels per day (bpd) in recent months, which includes a voluntary reduction of 223,000 bpd of oil below production levels for December 2023.

In April, Iraq pumped 4.24 million bpd of crude oil, including 200,000 bpd from the semi-autonomous Kurdistan region, over which the Iraqi federal government says it has no control.

Business

Tadawul Attracts Six New Listings in May

Trading screen in the Saudi financial market (Reuters)
Trading screen in the Saudi financial market (Reuters)
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Tadawul Attracts Six New Listings in May

Trading screen in the Saudi financial market (Reuters)
Trading screen in the Saudi financial market (Reuters)

The current month of May is witnessing momentum in new IPOs in the Saudi financial market, as two companies and a real estate fund were listed during the first two weeks, while three other companies are preparing to be listed in the main and parallel markets.
Since the beginning of 2024, the shares of three companies have been listed on the main market, and 10 on the parallel market (Nomu). The Capital Market Authority is also working to maintain the pace of IPOs by offering 24 new companies.
In the first week of May, shares of Yaqeen Capital were listed on the Nomu-Parallel Market, at SAR 40 per share. The shares offered for subscription represent 20 percent of the capital, which amounts to SAR 150 million divided into 15 million shares.
In parallel, subscription began to units of Alistithmar AREIC Diversified REIT Fund. Qualified investors include institutional investors such as companies, investment funds and commercial entities, to whom 80% of the offered units will be allocated, while the second tranche includes retail investors, who will be entitled to a maximum of 20% of the offered units.
The minimum subscription amount is SAR 1,000 ($266.6), while the unit price upon offering is SAR 10 ($2.67).
Meanwhile, the subscription for Horizon Educational began on Sunday on the Nomu-Parallel Market at a price range of SAR 54 per share.
Shares offered for subscription represent 20 percent of the post-IPO capital and 25 percent of the company’s shares before the capital hike. The company intends to increase its capital from SAR 20 million to SAR 25 million through offering 500,000 shares.
Fitch Ratings Agency expects the momentum of IPOs in the Gulf countries to continue during the current year, supported by government pledges for privatization, including the sale of minority stakes by government-related entities and the establishment of public subscription funds, as well as reducing trading commissions to improve market liquidity and attract more local companies.

Business

Saudi Coffee Co. to Open its First Factory in Jazan

The Jazan region is known for the Saudi coffee plant. (Asharq Al-Awsat)
The Jazan region is known for the Saudi coffee plant. (Asharq Al-Awsat)
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Saudi Coffee Co. to Open its First Factory in Jazan

The Jazan region is known for the Saudi coffee plant. (Asharq Al-Awsat)
The Jazan region is known for the Saudi coffee plant. (Asharq Al-Awsat)

The coffee market in Saudi Arabia is expected to grow by 5 percent in the coming years, providing great investment opportunities for the Saudi Coffee Company, which is owned by the Public Investment Fund (PIF).

The company received approval to begin operations in Jazan, marking the establishment of the first production facility for the product in the Kingdom. The project falls within the efforts to empower the industry and promote the production and export of the national coffee worldwide.

Jazan is famous for its high-quality Saudi coffee plant, the cultivation of which represents an important source of income for the residents.

In remarks to Asharq Al-Awsat, Executive Director of Sales and Distribution at the Saudi Coffee Co. Rakan Hariri pointed to four elements that consolidate the role of the new factory.

They include strengthening the local economy by increasing production and empowering farmers, generating job opportunities in multiple fields such as agriculture, manufacturing, marketing, and retail, promoting local culture, as coffee is part of the Saudi cultural identity, and finally, encouraging sustainable agriculture and the use of resources in a way that preserves the environment for future generations.

The company’s priority is to meet the local demand for coffee, including distribution to various regions, with a focus on the quality of the product, Hariri added.

“To ensure the success of Saudi coffee in international markets, we will adhere to the highest quality standards in the factory and achieve compliance with international health and safety standards,” he remarked.

Hariri revealed that the company plans in the future to increase local production, through model farms, cooperate with farmers, through contract farming, and follow a program to empower coffee farmers to reach the target of 5 million trees by 2030.

He explained that the company is working on gradual geographical expansion based on market studies and careful analysis of demand, stressing that efforts are underway to invest in technology to improve production processes and increase efficiency. This includes modernizing equipment, improving farming practices, and adopting advanced management systems for quality control and traceability.

In November, the Saudi Coffee Co. signed four memorandums of understanding with leading institutions and organizations from the public and private sectors at the Jazan Investment Forum as part of its efforts to achieve a qualitative shift in the coffee industry sector in the Kingdom.

Business

Saudi Arabia Registers Highest PMI Performance among G20 in December

Riyadh’s Financial Center (SPA)
Riyadh’s Financial Center (SPA)
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Saudi Arabia Registers Highest PMI Performance among G20 in December

Riyadh’s Financial Center (SPA)
Riyadh’s Financial Center (SPA)

A recent report revealed that Saudi Arabia ranked first among the G20 countries as it had the highest performance in the Purchasing Managers’ Index (PMI) in December.
This was supported by the positive performance of the non-oil private sector and strong domestic demand, while the performance of most of the G20 countries declined during the same period as a result of weak global demand, high financing costs and excess inventory in some sectors, as well as the impact of monetary tightening policy.
According to a report issued by the Saudi Ministry of Economy and Planning for the fourth quarter of 2023, on Sunday, the positive economic performance in this period was reflected in the purchasing managers’ indices and the labor market.
The report confirmed that the proactive measures taken by the government limited the rise in prices last year, as the average consumer price index in the Kingdom recorded an increase of 2.3 percent from 2022.
The labor market witnessed a noticeable improvement, with a decline in unemployment rates among Saudis in the last quarter of 2023 to 7.7 percent, from 8 percent in the previous year.
The ministry pointed to the impact of the growth of the total labor market size and the demand for labor, successful nationalization policies, the empowerment of women, and the state’s continued implementation of major projects.
The report also showed a surge in corporate activity during the month of December, with the continued growth witnessed in purchases in recent months, especially in industrial products.
With the implementation of financial policies aimed at achieving Vision 2030, the state’s public revenues increased by 12 percent on an annual basis, reaching SAR 358 billion ($95.4 billion) in the fourth quarter of 2023, while the state’s public expenditures rose by 8.6 percent in the same period, reaching SAR 395 billion. Thus, the general budget recorded a financial deficit of SAR 37 billion.
The report stated that chemical industry products ranked first in non-oil exports during the fourth quarter of 2023, with a value of SAR 22.2 billion ($5.9 billion), representing 31.2 percent of total non-oil exports, despite their decline of 18.3 percent on an annual basis.
It added that according to the state’s general budget statement for 2023, total revenues reached SAR 1.212 trillion, and expenses SAR 1.293 trillion, with a deficit of SAR 80.9 billion.
According to the report, the deficit in the non-oil trade balance widened by 24.8 percent to reach SAR 93.2 billion, due to a decrease in non-oil exports by 1.2 percent to SAR 71.1 billion.

 

 

Business

Oil Extends Fall on Signs of Weak Fuel Demand, Strong Dollar

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
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Oil Extends Fall on Signs of Weak Fuel Demand, Strong Dollar

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo

Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from US Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp fuel demand in the world's biggest economy.
Brent crude futures slid 25 cents, or 0.3%, to $82.54 a barrel by 0505 GMT, while US West Texas Intermediate crude futures were at $78.07 a barrel, down 19 cents, or 0.2%, Reuters reported.
"Oil markets shrugged off the impact of the Middle East conflicts and shifted attention to the world economic outlook again," Auckland-based independent analyst Tina Teng said.
China's producer price index (PPI) contracted in April, suggesting that business demand remained sluggish, she said, adding that recent US economic data signaled a slowdown as well.
Both benchmarks settled about $1 lower on Friday as Fed officials debated whether US interest rates are high enough to bring inflation back to 2%, offsetting gains earlier last week from the Israel-Gaza conflict.
Analysts expect the US central bank to keep its policy rate at the current level for longer, supporting the dollar. A stronger greenback makes dollar-denominated oil more expensive for investors holding other currencies.
Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as US gasoline and distillate inventories rose in the week ahead of the start of the US driving season.
Refiners globally are struggling with slumping profits for diesel as new refineries boost supplies and as mild weather in the northern hemisphere and slow economic activity eat into demand.
Still, the market remained supported by expectations that the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, could extend supply cuts into the second half of the year.
Iraq, the second-largest OPEC producer, is committed to voluntary oil production cuts agreed by OPEC and is keen to cooperate with member countries on efforts to achieve more stability in global oil markets, its oil minister told the state news agency on Sunday.
The minister's comments followed his suggestion on Saturday that Iraq had made enough voluntary reductions and would not agree to any additional cuts proposed by the wider OPEC+ producer group at its meeting in early June.
Earlier this month, OPEC+ called out Iraq for pumping over its output quota by a cumulative 602,000 barrels per day in the first three months of 2024. The group said that Baghdad had agreed to compensate with additional production cuts over the rest of the year.
In the US, the oil rig count fell by three to 496 last week, their lowest since November, Baker Hughes said in its weekly report on Friday.

Business

Unemployment Down, Number of Women up in Saudi Labor Market in 2023

A general view of Riyadh, Saudi Arabia. (Getty Images)
A general view of Riyadh, Saudi Arabia. (Getty Images)
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Unemployment Down, Number of Women up in Saudi Labor Market in 2023

A general view of Riyadh, Saudi Arabia. (Getty Images)
A general view of Riyadh, Saudi Arabia. (Getty Images)

The Saudi Ministry of Human Resources and Social Development unveiled a series of impressive achievements in the pursuit of a more efficient and effective labor market.

The achievements align with the Kingdom's Vision 2030 and show that priority was given to achieve several key goals: protect workers’ rights, ensure safe and healthy workplaces, nurture national talent, and achieve a sustainable balance in the labor market. To achieve these goals, the ministry has in place appropriate laws and regulations, reported the Saudi Press Agency on Sunday.

The year 2023 witnessed significant progress. Over 1,000 government employees received training at international agencies, which helped improve their work effectiveness. The job engagement index for civil servants surpassed the 2022 target, reflecting a more engaged public sector workforce.

The National Training Campaign (Waad) incentivized the private sector to train workers, with over 16,000 trainees benefiting in various sectors. The skills accelerator program focused on boosting the efficiency of Saudi employees in the private sector, targeting industries with the greatest impact on the national economy.

More than 10,000 individuals benefitted from programs fostering self-employment and specialized skills development. Over 500 people with disabilities were integrated into the workforce in 2023, encouraging them to participate in and contribute to the economy.

The launch of a comprehensive program for reporting work-related accidents underlines the ministry's commitment to workers’ well-being.

The "On Time" campaign has been promoting timely wage payment, with over 700,000 establishments complying with the wage protection system for more than nine million private sector employees.

The ministry's efforts have yielded significant results. The unemployment rate dropped from 12.8% in 2017 to 8.6% in the third quarter of 2023. Working conditions for expatriate workers saw a 73% improvement in 2023 compared to 2020.

The percentage of establishments implementing safety and health measures soared from a mere 15% in 2019 to 71.27% in 2023. Compliance with the wage protection system rose significantly, from 50% in 2017 to 86.9% in the third quarter of 2023.

The percentage of employed individuals with disabilities increased from 7.7% in 2016 to 12.6% in the first half of 2024.

The ministry actively supports working women through dedicated programs. The Wusool transportation program has provided transportation to 234,344 women employed in the private sector.

The Qurrah program, establishing centers for children of working women, has enabled 26,363 women to access childcare services through accredited centers.

Over 25,000 women trainees participated in programs designed to equip them with the skills needed to thrive in the job market.

These initiatives have demonstrably increased women’s participation in the labor market. By the third quarter of 2023, the share of women in the labor market has risen to 34.2%, compared to just 21.2% in 2017. Moreover, the number of women in senior and middle management positions has also seen a significant rise, jumping from 28.6% in 2017 to 43.7% by the third quarter of 2023.

The Ministry of Human Resources and Social Development’s commitment to a more efficient and inclusive labor market is fostering positive change in Saudi Arabia. As these efforts continue, they are expected to have an even greater impact on the Kingdom's workforce and overall economic progress.

Business

Chinese Companies Win More Bids to Explore for Iraq Oil and Gas

A representative of a foreign oil and gas company walks to drop his contract documents in the box during a ceremony of sixth licensing round for oil and gas projects at the Iraqi ministry of oil in Baghdad, Iraq, 11 May 2024. (EPA)
A representative of a foreign oil and gas company walks to drop his contract documents in the box during a ceremony of sixth licensing round for oil and gas projects at the Iraqi ministry of oil in Baghdad, Iraq, 11 May 2024. (EPA)
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Chinese Companies Win More Bids to Explore for Iraq Oil and Gas

A representative of a foreign oil and gas company walks to drop his contract documents in the box during a ceremony of sixth licensing round for oil and gas projects at the Iraqi ministry of oil in Baghdad, Iraq, 11 May 2024. (EPA)
A representative of a foreign oil and gas company walks to drop his contract documents in the box during a ceremony of sixth licensing round for oil and gas projects at the Iraqi ministry of oil in Baghdad, Iraq, 11 May 2024. (EPA)

Chinese companies won four bids to explore Iraqi oil and gas fields, Iraq's oil minister said on Sunday as the Middle Eastern country's hydrocarbon exploration licensing round continued into its second day.

The oil and gas licenses for 29 projects are mainly aimed at ramping up output for domestic use, with more than 20 companies pre-qualifying, including European, Chinese, Arab and Iraqi groups.

Chinese companies have been the only foreign players to win bids, taking nine oil and gas fields since Saturday, while Iraqi Kurdish company KAR Group took two.

There were notably no US oil majors involved, even after Iraqi Prime Minister Mohammed Shia al-Sudani met representatives of US companies on an official visit to the United States last month.

China's CNOOC Iraq won a bid to develop Iraq's Block 7 for oil exploration that extends across the country's central and southern provinces of Diwaniya, Babil, Najaf, Wasit and Muthanna, said oil minister Hayan Abdul Ghani.

ZhenHua, Anton Oilfield Services and Sinopec won bids to develop the Abu Khaymah oilfield in Muthanna, the Dhufriya field in Wasit and the Summer field in Muthanna respectively, the minister said.

Iraq's main goal with its sixth licensing round was to increase gas output that it wants to use to fire power plants that rely heavily on gas imported from Iran.

However, no bids were made on at least two fields with large gas potential, potentially undermining those efforts.

Iraq, OPEC's second-largest oil producer behind Saudi Arabia, has been hampered in its oil sector development by contract terms viewed as unfavorable by many major oil companies as well as recurring military conflict and growing investor focus on environmental, social and governance criteria.