Trafigura Conducts Risk Assessment in Red Sea Following Tanker Attack

Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
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Trafigura Conducts Risk Assessment in Red Sea Following Tanker Attack

Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)
Smoke rises from the British oil tanker Marlin Luanda as it transits the Gulf of Aden on January 27, 2024. (AFP)

Commodities trader Trafigura said on Saturday it was assessing the security risks of further Red Sea voyages after firefighters put out a blaze on a tanker attacked by Yemen's Houthi group a day earlier.

The tanker was carrying Russian naphtha purchased below the price cap in line with G7 sanctions, a Trafigura spokesperson said on Friday.

"No further vessels operating on behalf of Trafigura are currently transiting the Gulf of Aden, and we continue to assess carefully the risks involved in any voyage, including in respect of security and safety of the crew, together with shipowners and customers," a Trafigura statement said.

This implies a potential consideration of navigating through the Cape of Good Hope.

Some shipping companies have suspended transits through the Red Sea, which is accessed from the Gulf of Aden, and taken much longer, costlier journeys around Africa to avoid being attacked by Yemen's Iranian-backed Houthi group.

QatarEnergy, the world's second-largest exporter of liquefied natural gas, stopped sending tankers via the Red Sea earlier this month, citing security concerns.

Over several hours early on Saturday the Marlin Luanda's crew battled a blaze in one cargo tank on the vessel's starboard side. By Saturday afternoon, the blaze was extinguished and all crew were safe.

"The vessel is now sailing towards a safe harbor," Trafigura said, adding that the firefighting effort had been supported by Indian, US, and French navy vessels.

The US military said a US Navy ship and other vessels provided assistance after the Marlin Luanda was hit by a Houthi anti-ship missile.

The Houthis began launching waves of exploding drones and missiles at vessels on Nov. 19 in response to Israel's military operations in Gaza. The Houthi attacks have primarily targeted container vessels moving through the Red Sea. Many fuel tankers have kept using the route.

The Marshall Islands-flagged Marlin Luanda issued a distress call on Friday and reported damage, US Central Command said in a post on X, formerly Twitter. The USS Carney and other coalition ships were providing assistance to the tanker, it said.

This follows reports from companies such as Kuwaiti oil majors BP and Shell that have paused transits through the Red Sea as strikes on commercial vessels by the Houthis have stymied trade between Europe and Asia.

Secretary-General of the International Maritime Organization Arsenio Dominguez has stressed that the IMO supports freedom of navigation and calls for calm in the Red Sea region.

During his meeting with Chairman of the Suez Canal Authority (SCA) Admiral Ossama Rabie on Thursday, the IMO secretary-general explained that the current situation in the Red Sea region imposes many challenges on the global trade movement, the maritime transport market, the Suez Canal, and the ports in the region.

He affirmed that navigation in the canal is still open to everyone “especially in light of the logistical and security challenges faced by the vessels that go around the Cape of Good Hope,” noting that the “Cape route is deemed unsustainable for navigation traffic as it lacks essential services.”



Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
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Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)

Saudi Arabia announced on Saturday the allocation of SAR10 billion to activate the Standard Incentives Program for the industrial sector, following approval by the government in December. The initiative seeks to enable industrial investments, spur their growth, and achieve sustainable industrial development in the Kingdom, while elevating the global competitiveness of Saudi industry.

The Ministry of Industry and Mineral Resources and the Ministry of Investment outlined key details of this newly launched incentives package during a ceremony attended by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz; Minister of Investment Khalid Al-Falih; Minister of State and Member of the Council of Ministers Dr. Hamad bin Mohammed Al Al-Sheikh; Minister of Industry and Mineral Resources Bandar Alkhorayef; Minister of Economy and Planning Faisal Alibrahim; and several other ministers, senior officials, and leaders from major local and global companies.

The Standard Incentives Program offers coverage of up to 35% of the initial project investment, capped at SAR50 million for each qualifying project. The support is divided evenly across the project lifecycle, granting 50% during the construction phase and 50% during the production phase.

The program will be introduced in successive phases, with the first targeting investments in transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. Further industry segments are slated for announcement in subsequent phases throughout 2025.

AlKhorayef emphasized that the Standard Incentives Program is the first of its kind in the region, and that it aims to promote the manufacture of products not currently produced in the Kingdom.

The program opens new horizons for high-value industrial investments, accelerates their pace, and ensures their long-term sustainability. It enables both Saudi and international investors to harness the Kingdom’s unique advantages, including its strategic geographic location that links three continents, its open market, and low customs tariffs, he added.

He underscored that the Standard Incentives Program focuses on achieving localization and local content targets as core drivers of sustainable development. By empowering industries that enhance the use of national resources and bolster reliance on Saudi talent, the program contributes to reducing imports and strengthening the balance of payments.

“These incentives were developed through an exceptional effort of governmental collaboration across diverse agencies, particularly the Local Content and Balance of Payments Committee, chaired by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, which played a pivotal role in formulating policies and directing initiatives that support industrial investments and national manpower,” AlKhorayef remarked.

Al-Falih highlighted that the Standard Incentives Program is a significant step toward realizing the ambitions of Vision 2030 and the National Investment Strategy, both of which aim to attract and expand industrial investments while boosting the competitiveness of Saudi industry.

These incentives will accelerate the emergence of new industrial facilities across the entire value chain, thereby offering investors stronger, faster, and more cost-competitive local supply chains, he explained.

Emphasizing the close partnership with the Ministry of Industry and Mineral Resources, he said he was optimistic over building a robust and diversified industrial base that serves domestic and regional markets.

The incentives, in their current form, are expected to energize the industrial movement in the Kingdom, continued the minister. Projections indicate the program could generate an estimated SAR23 billion annually in GDP from the targeted projects, extending its impact beyond the creation of a solid industrial foundation.

During the official launch ceremony, a range of investment opportunities in the targeted sectors was introduced to domestic and international firms. The event featured a ministerial panel discussion and workshops that examined how these incentives can shape the future of Saudi industry, enhance its global leadership, and make the Kingdom’s industrial sector more attractive to both local and foreign investors. The discussions also underscored how the program contributes to the key objectives of the National Industrial Strategy and the National Investment Strategy.

The Standard Incentives Program aligns with the Vision 2030 goals for the industrial sector by focusing on promising fields such as transformative chemicals, aviation, automotive, food, medical devices, pharmaceuticals, and machinery and equipment. These efforts underscore Saudi Arabia’s commitment to achieving integrated and sustainable economic diversification.