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Ministers: Saudi Arabia Continues its Transformational Journey at Accelerated Pace

The annual report for Vision 2030 showed tremendous achievements in all programs and initiatives. (Asharq Al-Awsat) 
The annual report for Vision 2030 showed tremendous achievements in all programs and initiatives. (Asharq Al-Awsat) 
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Ministers: Saudi Arabia Continues its Transformational Journey at Accelerated Pace

The annual report for Vision 2030 showed tremendous achievements in all programs and initiatives. (Asharq Al-Awsat) 
The annual report for Vision 2030 showed tremendous achievements in all programs and initiatives. (Asharq Al-Awsat) 

Ministers and officials in the Saudi government said that the Kingdom is continuing its comprehensive transformational journey at an accelerated pace since the launch of Vision 2030, which laid a basic foundation for a vibrant society and a prosperous economy.
A number of government officials commented on the annual report of Vision 2030, stressing that the achievements were made with resolve and persistence following comprehensive reforms.
Minister of Economy and Planning Faisal Al-Ibrahim said that the Kingdom’s achievements in 2023 demonstrated the strength and flexibility of its economy, as non-oil activities recorded their top contribution to the real gross domestic product at 50 percent, which is its highest historical level.
For his part, Minister of Finance Mohammed Al-Jadaan said that Saudi Arabia was reaping the results of economic reforms, pointing to an accelerated pace to diversify the economy and enhance the efficiency of financial performance, as well as other achievements that lay the foundations of a strong and diversified economy.
The Minister of Human Resources and Social Development, Ahmed Al-Rajhi, touched on some of the accomplishments during the past year, saying that 2.3 million citizens were now working in the private sector, compared to 1.7 million in 2019, in addition to increasing the percentage of women’s participation in the labor market to 35.5 percent.
He added that efforts are underway with all partners to localize specific professions and create a stimulating work environment in promising sectors.
In turn, Minister of Health Fahd Al-Jalajel explained that Saudi Vision 2030 is moving at an accelerated pace.
“Today, we are reaping the fruits of its journey with many accomplishments that support the provision of distinguished health care for the individual and society and the achievement of sustainable health development,” he stated.
For his part, the Minister of Hajj and Umrah, Dr. Tawfiq Al-Rabiah, commenting on the report, stated: “Eight years of successes and transformation, for development and a better future, through Saudi Vision 2030...”
Minister of Transport and Logistics Services, Engineer Saleh Al-Jasser, said: “Today, we are reaping the fruits of extensive national achievements in the transportation and logistics sectors, to enhance economic growth and support sustainable development.”
Moreover, Minister of Industry and Mineral Resources Bandar Al-Khorayef stated that Saudi Vision 2030 contributed to transforming the industrial sector into an attractive investment environment, developing human capabilities in line with the requirements of the modern industrial sector, and unleashing the large and promising capabilities of the mining sector.
Minister of Municipal, Rural Affairs and Housing, Majid Al-Hogail, pointed to the transformation witnessed in the housing sector in 2023, stimulated by Vision 2030, by regulating the real estate market, developing its laws, and increasing the supply.
“We continue our efforts to raise the quality of housing and enable citizens to own properties,” he noted.
The Minister of Tourism, Ahmed Al-Khatib, revealed that the Kingdom has achieved the target of Vision 2030 in 2023 by welcoming 100 million tourists, raising the goal to 150 million tourists, and committing to empowering the sector.
Minister of Sports, Prince Abdulaziz Al-Faisal, also spoke about the report, saying: “Under the leadership of our great nation... and with its unlimited support... the goals of Saudi Vision 2030 will be achieved.”

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Business

Oman Signs 28 Investment Agreements Worth $790 Million

A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
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Oman Signs 28 Investment Agreements Worth $790 Million

A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)
A scene from the signing of investment agreements in Oman's economic zones, free zones and industrial cities (Oman News Agency)

Oman signed 28 investment agreements worth more than 304 million Omani rials ($790 million) on Wednesday to develop industrial, food production, logistics and commercial projects and expand existing facilities across several economic zones, free zones and industrial cities, as the Sultanate seeks to diversify its economy and increase the contribution of non-oil sectors.

The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced that the agreements cover more than two million square meters and span the Special Economic Zone at Duqm, the free zones in Sohar and Salalah, Khazaen Economic City, and the industrial cities of Sohar, Raysut, Ibri and Nizwa.

Industrial cities operated by the Public Establishment for Industrial Estates (Madayn) attracted the largest share of investment, totaling 147.6 million rials ($384 million), followed by Sohar Freezone with 58.5 million rials ($152 million) and the Special Economic Zone at Duqm with approximately 55.08 million rials ($143 million).

Agreements in Salalah Free Zone were valued at 32.95 million rials ($85.7 million), while Khazaen Economic City attracted investments exceeding 10.4 million rials ($27 million).

Steel and Automotive Projects

A steel and iron products plant in Sohar Industrial City topped the list of announced investments, with a value exceeding 112 million rials ($291 million). The project, to be developed by Atlas Steel, will cover an area of 440,000 square meters.

The agreements also included a 20 million rial ($52 million) ceramics factory to be developed by Fujian Mansheng Industry and Investment, alongside projects involving fertilizer, paper and metal products manufacturing, as well as the production, maintenance and servicing of equipment used in the oil and gas sector.

In Sohar Freezone, the agreements included the development of the Oman Automotive Manufacturing and Assembly Complex, with an investment of 38 million rials ($98.8 million).

The project, to be undertaken by Sohar Automotive and Advanced Industries, will cover 317,000 square meters.

It aims to attract automakers, component suppliers and businesses involved in light industries and advanced manufacturing, while developing the facilities and infrastructure needed to support these activities.

Other investments in Sohar included a 15 million rial ($39 million) plant by Voltamp to manufacture high-voltage and distribution transformers, a 1.5 million rial ($3.9 million) expansion of a medical devices factory, and warehousing and re-export projects.

Food Security Investments

In the Special Economic Zone at Duqm, a 40 million rial ($104 million) shrimp feed production plant was among the major projects announced, aimed at supporting aquaculture activities.

Another project, valued at 4 million rials ($10.4 million), will establish quarantine facilities for imported livestock and support the supply of red meat.

The agreements also included a fish canning plant with an investment of 5.36 million rials ($13.9 million) and a planned production capacity of 40 to 60 tons per day.

A separate tuna and squid processing and drying facility, valued at 3.6 million rials ($9.4 million), will have an annual processing capacity of up to 10,000 tons.

Duqm's projects also included a refinery for recycling used oils and petroleum waste, with an investment of 1.92 million rials ($5 million).

In Salalah Free Zone, agreements were signed to establish a steel structures factory worth 19.25 million rials ($50.1 million), a gypsum products plant with an investment of 7.7 million rials ($20 million), and a cheese and dairy products facility valued at 6 million rials ($15.6 million).

Electric Vehicle Chargers

In Khazaen Economic City, investments included a factory to manufacture electric vehicle chargers and their components, valued at more than 3.4 million rials ($8.8 million), and a plant producing precast concrete and construction components with an investment of 2.5 million rials ($6.5 million).

Other agreements covered building materials and ready-mix concrete production, as well as warehousing, logistics facilities and industrial units.

OPAZ also announced the launch of the free zone at Khazaen Economic City through the signing of its first two investment agreements.

Economic Diversification

OPAZ Chairman Qais Al Yousef said the agreements aim to expand the base of specialized industrial projects, attract investments that support economic diversification and create jobs, in line with the objectives of Oman Vision 2040.

He added that the authority is working to improve the regulatory environment, services and infrastructure to enable investors to capitalize on Oman's strategic location and connectivity to regional and global markets.

Madayn CEO Dawood Al Hadabi said the industrial projects would help expand local supply chains, create more opportunities for small and medium-sized enterprises to provide supporting products and services, and strengthen the ability of Omani industries to enter export markets.

The agreements form part of Oman's broader efforts to expand productive investment, strengthen links between industrial zones, ports and logistics services, and increase the value added by economic activities outside the oil sector.

Business

Rising Bread Prices Add to Sudanese Struggles as Production Costs Soar

A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
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Rising Bread Prices Add to Sudanese Struggles as Production Costs Soar

A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)
A worker oversees bread production at a bakery in Omdurman (Asharq Al-Awsat)

A 35% increase in the price of a loaf of bread to 500 Sudanese pounds has placed further pressure on households in Sudan, where purchasing power continues to decline and bakeries face soaring production costs driven by higher prices for flour, yeast and fuel, persistent power outages and the depreciation of the Sudanese pound against the dollar.

While residents are calling for government intervention to ease the burden of rising prices for this essential food staple, industry representatives warn that containing further increases will be difficult amid the ongoing war and deteriorating economic conditions.

Al-Tayeb al-Jaali, a bakery owner in Omdurman, attributed the latest increase in bread prices to rising production costs. He said a sack of flour now costs 190,000 Sudanese pounds, while a carton of yeast has reached 290,000 pounds. Daily labor costs have also risen by 25%.

Speaking to Asharq Al-Awsat, Jaali said 1,000 liters of gas now cost 4.7 million pounds, while electricity outages exceed 12 hours a day, forcing bakery owners to rely on diesel to keep their businesses running at a daily cost of up to 400,000 pounds.

He argued that curbing bread price increases and easing the burden on both bakery owners and consumers would require government measures to stabilize the exchange rate and contain inflation amid the continued depreciation of Sudan's currency.

Declining Purchasing Power

Higher bread prices are affecting households and businesses that rely on bread to serve meals, as consumers struggle with the rising cost of essential goods.

Suleiman Abdullah, a restaurant owner, said more expensive bread was adding to operating costs and limiting restaurants' ability to offer affordable meals.

He explained that serving dishes of fava beans, lentils or liver with two loaves of bread no longer satisfies some customers, particularly because the loaves are relatively small. Customers are therefore forced to buy additional bread, increasing the overall cost of their meals.

Issam al-Taj, a taxi driver, said rising prices for basic necessities amid the continuing war had made it increasingly difficult to provide for his family's daily needs.

He estimated that his household spends about 20,000 pounds a day on bread alone.

Taj added that he sometimes has to wait in fuel lines for as long as three days to refuel his taxi, while his earnings remain insufficient to cover his family's essential expenses.

The pressures are particularly severe for families returning to the capital after being displaced by the war.

Hussein Abdullah said he and his family had returned to Khartoum hoping that basic services, including electricity, water, bread and medicine, would be restored. Instead, they found themselves facing living expenses they could not afford.

Fatima Ahmed said she could no longer afford to provide bread for her children's breakfast before they leave for school.

She explained that her family was struggling to meet the children's needs despite its limited resources and called on authorities to support bakeries and ease the impact of rising prices on consumers.

Efforts to Secure Flour Supplies

In an attempt to address the crisis, Khartoum State Governor Ahmed Othman Hamza visited the Rotana flour mills in the Al-Jaili industrial area north of Bahri last Monday to assess production levels and explore ways to secure flour supplies and maintain deliveries to bakeries.

Hamza pointed to overlapping responsibilities among authorities that were disrupting distribution and ordered tighter oversight and measures to address the problems, with the aim of keeping bakeries operating and ensuring bread remains available to residents.

Rising Production Costs

Essam Okasha, head of the Bakers' Union, attributed the latest price increase to higher global wheat prices, the depreciation of the Sudanese pound and rising costs for fuel, gas and yeast.

The dollar has reached approximately 10,000 Sudanese pounds on the parallel market, driving up the cost of importing production supplies and adding to the pressure on bakeries.

Okasha said addressing the crisis would require importing wheat flour and providing financial support to bakeries. However, he acknowledged that sustainable solutions would be difficult to achieve while the war continues and economic conditions deteriorate.

He noted that Sudan's exports are largely limited to gold, with the proceeds, according to him, going toward financing the war.

Okasha expressed hope that bread prices would not rise beyond their current levels and that two loaves would continue to cost 1,000 pounds, given the difficult living conditions facing Sudanese citizens.

Calls for Strategic Wheat Reserves

Economist Haitham Mohammed Fathi said Sudan's bread crisis reflected structural weaknesses in the production system rather than a temporary surge in inflation.

He explained that flour accounts for approximately 70% of production costs, meaning any increase in its price is immediately reflected in the retail price of bread, particularly in the absence of stable subsidy mechanisms.

Fathi added that fuel price increases exceeding 100% during certain periods had driven up transportation and distribution costs, while higher electricity tariffs had further increased operating expenses.

These pressures, he said, have been compounded by the absence of a clear food security policy.

He called for bread to be treated as an essential commodity through the establishment of strategic wheat reserves and a stronger government role in importing and distributing wheat, rather than leaving the entire process to market forces.

Fathi also highlighted disagreements over the foreign exchange rates applied to wheat and flour imports and the gap between those rates and the parallel-market dollar rate used by private businesses to obtain the foreign currency they need.

Rising bread prices are adding to the hardships of Sudanese already exhausted by war, displacement, hunger and the erosion of their purchasing power.

As production costs continue to rise and household incomes decline, securing one of the most basic daily necessities has become a major challenge.

The authorities' ability to ensure adequate flour supplies and control production costs will remain critical to preventing the crisis from worsening.

Business

Philippines Says in Talks with Saudi Arabia for Oil Storage

Oil storage tanks in the Philippines (X)
Oil storage tanks in the Philippines (X)
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Philippines Says in Talks with Saudi Arabia for Oil Storage

Oil storage tanks in the Philippines (X)
Oil storage tanks in the Philippines (X)

The Philippines is in talks with Saudi Arabia, Russia and the United States to store oil in the country, its energy secretary said on Wednesday, in a bid to hedge against fuel price spikes driven by the Iran war.

The Southeast Asian nation, which imports nearly all its energy needs, also plans to increase diesel and gas-fired power output to make up for an estimated 60% decline in hydropower and 20% fall in solar output in the first half of 2027 due to the El Nino weather phenomenon, Secretary Sharon Garin told Reuters.

The Philippines is also in talks with ⁠Japan, Kuwait, the ⁠United Arab Emirates and Australia on oil storage, Garin said, as it looks to build stockpiles after the US-Israeli strikes on Iran in February disrupted supplies.

"If El Nino finishes in April, that's the time that summer starts for us. So this would be a prolonged pressure for us, which started with the oil crisis in the Middle East," Garin said on the sidelines of the Singapore International Energy Week conference.

Saudi Arabia announced this week an initial agreement to store Saudi crude in Singapore's rock caverns starting 2027.

The Philippines plans to build its first government-owned storage tank next year at Bataan to hold strategic oil reserves, Garin said, adding that the government has been working with Tokyo to build regional oil stockpiles, which would complement its national reserve.

Fuel inventories in the Philippines are currently at 55 days, up from a 15-day minimum requirement, Garin said. The government has 1 million barrels of oil stocks in private facilities, she added.

"We start with 1 million (barrels) and scale it up over the years with the objective of ⁠reaching 60 days," ⁠she said, adding that the volume will be split evenly between crude and fuels.

The country's average daily demand for petroleum products was about 78 million liters, or about 490,600 barrels, as of May, government data showed.