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GCC, UK Agree to Proceed with Free Trade Agreement This Year

Albudaiwi meets with UK Secretary of State for Business and Trade Jonathan Reynolds in London. (SPA)
Albudaiwi meets with UK Secretary of State for Business and Trade Jonathan Reynolds in London. (SPA)
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GCC, UK Agree to Proceed with Free Trade Agreement This Year

Albudaiwi meets with UK Secretary of State for Business and Trade Jonathan Reynolds in London. (SPA)
Albudaiwi meets with UK Secretary of State for Business and Trade Jonathan Reynolds in London. (SPA)

Gulf Cooperation Council (GCC) Secretary-General Jasem Mohamed Albudaiwi said on Wednesday the GCC and United Kingdom are in agreement over the importance of proceeding towards finalizing negotiations for a free-trade agreement (FTA).

He added that the two parties will sign the agreement this year.

Albudaiwi met in London with UK Secretary of State for Business and Trade Jonathan Reynolds.

Albudaiwi said he sensed a strong interest from the new British government and a sincere desire to complete the negotiation rounds for the FTA. Reynolds expressed the desire to have the agreement signed before the end of 2024.

The officials discussed various topics of mutual interest, focusing on economic and trade relations between the GCC and the UK, and ways to boost and develop them.

Both sides aspired to accelerate the pace of FTA negotiations and hold regular meetings between senior officials to finalize its chapters and sign it this year. This is seen as a step to bolster cooperation and the strategic partnership between the GCC and the UK.

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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)
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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.