Iran Exports 4.26 Million Oil Barrels from South Pars

A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, Iran. (Reuters)
A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, Iran. (Reuters)
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Iran Exports 4.26 Million Oil Barrels from South Pars

A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, Iran. (Reuters)
A general view shows a unit of South Pars Gas field in Asalouyeh Seaport, Iran. (Reuters)

Fardin Asadi, the manager for development of oil layers at South Pars, said on Sunday that Iran has exported about 4.26 million barrels of oil from South Pars to international destinations since the beginning of the Iranian calendar year, which began in late March, reported the Iranian Students’ News Agency (ISNA).

South Pars is the world’s largest gas field which also has significant oil reserves. Approximately 25,000 barrels of oil are extracted from South Pars daily, Asadi told ISNA.

France’s Total signed a deal with Tehran in July to develop phase 11 of South Pars, marking the first major western energy investment in Iran since the lifting of sanctions against the country last year.

Total will be the operator with a 50.1 percent stake, alongside Chinese state-owned oil and gas company CNPC with 30 percent and National Iranian Oil Co subsidiary Petropars with 19.9 percent.

Exports of the South Pars field had increased by about 12 percent over the previous year.

In previous statements, an official from Iranian Customs Department said that the field exported about $6.9 billion worth of gas condensate, a 28 percent increase in the value of exports of that product over the same period last year.

Pars's exports also included methanol, propane and polyethylene. The biggest share of the field's exports went to China, Japan, South Korea, India, Indonesia, Turkey, Egypt, the United Arab Emirates and Kuwait.

Iran's oil production is expected to rise to 4.5 million barrels per day within five years, the Iranian Oil Ministry's Website (Shana) quoted Ali Kardor head of the National Iranian Oil Company (NIOC).

Iranian oil exports are likely to reach 2.5 million bpd within five years.

According to Iranian estimates, the production of gas during that period will reach 1.3 billion cubic meters per day, while the production of gas condensates will increase to 864 thousand barrels per day.

The expected growth in Iran's oil production will come as a result of an increase of 420,000 barrels per day in the production of west Karoon fields, in addition to 280 thousand barrels from other fields in central and southern Iran, and from Iranian Offshore Oil Company (IOOC); while the South Pars field will contribute in the expected growth of gas production.



Ukraine Receives $1.5 Bln Funding Tranche Under World Bank Program

A view shows residential buildings damaged during a Russian missile and drone strike, amid Russia's attack on Ukraine, in the city of Kamianske, Dnipropetrovsk region, Ukraine March 29, 2024. Press service of the State Emergency Service of Ukraine in Dnipropetrovsk region/Handout via REUTERS
A view shows residential buildings damaged during a Russian missile and drone strike, amid Russia's attack on Ukraine, in the city of Kamianske, Dnipropetrovsk region, Ukraine March 29, 2024. Press service of the State Emergency Service of Ukraine in Dnipropetrovsk region/Handout via REUTERS
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Ukraine Receives $1.5 Bln Funding Tranche Under World Bank Program

A view shows residential buildings damaged during a Russian missile and drone strike, amid Russia's attack on Ukraine, in the city of Kamianske, Dnipropetrovsk region, Ukraine March 29, 2024. Press service of the State Emergency Service of Ukraine in Dnipropetrovsk region/Handout via REUTERS
A view shows residential buildings damaged during a Russian missile and drone strike, amid Russia's attack on Ukraine, in the city of Kamianske, Dnipropetrovsk region, Ukraine March 29, 2024. Press service of the State Emergency Service of Ukraine in Dnipropetrovsk region/Handout via REUTERS

Ukraine has received a $1.5 billion tranche of funding under a World Bank program, the country's prime minister said on Friday.

"984 million dollars come from Japan and 516 million dollars from the UK. The funds will cover budget spending for social and humanitarian needs and reconstruction," Denys Shmyhal said on X.

In December, Ukraine received $1.34 billion under the World Bank's public expenditures for administrative capacity endurance in Ukraine.

The Ukrainian finance ministry said in a statement the financing consisted of a $1.086 billion loan from the World Bank, $190 million grant from Norway, $50 million grant from the United States and $20 million grant from Switzerland.

The ministry said the funds would be used to partially compensate for non-security and defense-related expenditures of the Ukrainian state budget, including old-age social payments and payments to employees of the state emergency service.


OPEC Secretary General: World’s Need for Oil Will Continue for Years, Decades

Al-Ghais said that the door is still open for Angola to return to the OPEC family (Reuters)
Al-Ghais said that the door is still open for Angola to return to the OPEC family (Reuters)
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OPEC Secretary General: World’s Need for Oil Will Continue for Years, Decades

Al-Ghais said that the door is still open for Angola to return to the OPEC family (Reuters)
Al-Ghais said that the door is still open for Angola to return to the OPEC family (Reuters)

Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Haitham Al-Ghais stressed the importance of the decisions taken by the organization in stabilizing the global oil industry, reiterating that the world’s need for oil will continue for many years and decades.

In an interview with Independent Arabia, Al-Ghais said many official and international agencies, in addition to a large number of specialized advisory bodies in the energy and oil industries, recently praised OPEC’s constructive role, through its proactive, objective and effective decisions aimed at supporting the balance and stability of oil markets and stimulating the growth of the global economy.

He pointed out that in its recent report, OPEC expected that economic growth rates would maintain the better-than-expected improvement witnessed by the world in the second half of 2023, as the organization believes that economic growth for this year will reach the level of 2.8 percent, and 2.9 percent in 2025.

The secretary-general reminded of the success of the organization and its allies in adopting the Joint Cooperation Declaration agreement, in the wake of the outbreak of the Covid-19 pandemic and its repercussions on travel, transportation, and other activities, which led to a sharp decline in demand for global energy and oil.

He said that in order to confront these deteriorating conditions, this group of countries cooperated and reached a unique, historic agreement aimed at curbing oil production to a record level of approximately ten percent of global oil supplies. This agreement was followed by regular routine meetings with the aim of studying market conditions and gradually resume production, he remarked.

On whether OPEC was affected by Angola’s withdrawal and Brazil’s joining the OPEC+ alliance, Al-Ghais noted that since its founding in 1960 by five oil-producing countries (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), OPEC has sought to attract many oil-producing countries that share the same vision and its most prominent goal, which is coordinating efforts and policies to support the stability of global oil markets.

“OPEC is an ideal role model characterized by cohesion, constructive dialogue, cooperation and mutual respect among member states regardless of the geographical locations, languages and different cultures of these countries... There are also countries that withdrew from the organization and then returned to it. As for Angola, the door is still open for its return to the OPEC family,” he remarked.

Al-Ghais also said that OPEC believes that the oil industry needs about $14 trillion by 2045, according to the organization’s annual report.


Fitch Ratings: GCC Bank US Dollar Debt Issuance to Increase Strongly

Year-to-date issuance is USD20.1 billion, already surpassing the 2023 total of USD15.2 billion. Reuters
Year-to-date issuance is USD20.1 billion, already surpassing the 2023 total of USD15.2 billion. Reuters
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Fitch Ratings: GCC Bank US Dollar Debt Issuance to Increase Strongly

Year-to-date issuance is USD20.1 billion, already surpassing the 2023 total of USD15.2 billion. Reuters
Year-to-date issuance is USD20.1 billion, already surpassing the 2023 total of USD15.2 billion. Reuters

Gulf Cooperation Council (GCC) banks’ US dollar debt issuance is on track for its strongest quarter ever in 1Q24, with issuance already exceeding the full-year 2023 total, Fitch Ratings has said.

Year-to-date issuance is USD20.1 billion, already surpassing the 2023 total of USD15.2 billion.

Annual issuance in 2024 and 2025 could exceed the 2020 record of USD25.2 billion, boosting liquidity to meet strong credit demand, Fitch Ratings said on Thursday.

Banks in Saudi Arabia and the UAE account for 33% and 26% of the YTD figure, respectively.

This is the first time that Saudi Arabian banks have issued more US dollar debt than UAE banks. “They have been increasingly active in international debt capital markets since 2020 to support their strong financing growth plans, diversify their funding bases, and more recently, to offset the high cost of liquidity domestically,” said Fitch Ratings.

It expected Saudi banks’ US dollar issuance to continue gathering pace due to the strong credit growth outlook, especially in the corporate segment, and tight liquidity in the banking sector.

“Coupon rates on Saudi banks’ five-year senior unsecured issuance in 1Q24 averaged 5.1%. This is well below the three-month Saudi Interbank Offered Rate of 6.2% ... as the cost of liquidity in the Saudi banking sector is likely to remain high,” it said.

GCC banks have about USD16.9 billion of US dollar debt maturing in 2024, split fairly even between the UAE, Saudi Arabia, Qatar and Kuwait.

GCC banks account for about 10% of the medium-term US dollar debt issued by investment-grade banks in 1Q24.

They are also expanding their investor base through increasing issuance of sukuk. Sukuk accounts for 51% of YTD issuance excluding CDs, reflecting strong investor demand and pricing dynamics.


Fallen Crypto Mogul Sentenced to 25 Years in Prison

Sam Bankman-Fried, second from right, stands flanked by his attorneys, Marc Mukasy, left, and Torrey Young, right, while Judge Kaplan announces his sentence in Manhattan federal court, Thursday, March. 28, 2024, in New York. (Elizabeth Williams via AP)
Sam Bankman-Fried, second from right, stands flanked by his attorneys, Marc Mukasy, left, and Torrey Young, right, while Judge Kaplan announces his sentence in Manhattan federal court, Thursday, March. 28, 2024, in New York. (Elizabeth Williams via AP)
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Fallen Crypto Mogul Sentenced to 25 Years in Prison

Sam Bankman-Fried, second from right, stands flanked by his attorneys, Marc Mukasy, left, and Torrey Young, right, while Judge Kaplan announces his sentence in Manhattan federal court, Thursday, March. 28, 2024, in New York. (Elizabeth Williams via AP)
Sam Bankman-Fried, second from right, stands flanked by his attorneys, Marc Mukasy, left, and Torrey Young, right, while Judge Kaplan announces his sentence in Manhattan federal court, Thursday, March. 28, 2024, in New York. (Elizabeth Williams via AP)

Crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison for a massive fraud on hundreds of thousands of customers that unraveled with the collapse of FTX, once one of the world’s most popular platforms for exchanging digital currency.

Though he described Bankman-Fried as “extremely smart,” US District Judge Lewis A. Kaplan delivered a blistering analysis of Bankman-Fried and his crimes before announcing a sentence that was half of what prosecutors sought and less than a quarter of the 105 years recommended by the court's probation officers, The Associated Press reported.
“There is absolutely no doubt that Mr. Bankman-Fried’s name right now is pretty much mud around the world,” Kaplan said of the 32-year-old California man who seemed atop the cryptocurrency universe before his businesses collapsed in November 2022, leaving customers, investors and lenders short over $11 billion, which the judge ordered him to forfeit.
He was convicted in November of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement, testimony before Congress and celebrity endorsements from stars like quarterback Tom Brady, basketball point guard Stephen Curry and comedian Larry David.
Kaplan imposed the sentence in the same Manhattan courtroom where, four months previously, Bankman-Fried testified that he had intended to revolutionize the emerging cryptocurrency market with his innovative and altruistic ideas, not steal.
The judge said Bankman-Fried repeatedly committed perjury on the witness stand in testimony that was “often evasive, hair-splitting, dodging questions.”
Kaplan said the sentence reflected the risk that Bankman-Fried “will be in position to do something very bad in the future. And it’s not a trivial risk at all.” He added that the sentence was fashioned “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time.”
Kaplan said he would advise the Federal Bureau of Prisons to send Bankman-Fried to a medium-security prison near San Francisco because his notoriety, his association with vast wealth, his autism and his social awkwardness are likely to make him especially vulnerable at a high-security facility.
Assistant US Attorney Nicolas Roos had recommended a prison sentence of 40 to 50 years, saying it was the only way to ensure “the defendant doesn't do it again.”
Prosecutors said tens of thousands of people and companies worldwide lost billions of dollars since 2017 after Bankman-Fried looted FTX customer accounts that he promised were safe to make millions of dollars of illegal political donations, bribe Chinese officials, make risky investments, buy luxury real estate in the Caribbean and live lavishly.
Kaplan agreed with prosecutors Thursday that Bankman-Fried should not be credited because some investors and customers might recover some money. He noted that customers lost about $8 billion, investors lost $1.7 billion and lenders were shorted by $1.3 billion.
When he spoke, Bankman-Fried stood and apologized in a rambling statement: “A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage.”
He added, “My useful life is probably over. It’s been over for a while now, from before my arrest.”


Government Incentives Increase Saudi Arabia’s Foreign Investment Flows

The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
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Government Incentives Increase Saudi Arabia’s Foreign Investment Flows

The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)

Figures of net foreign direct investment (FDI) flows published in the fourth quarter of 2023, which amounted to about 13 billion riyals ($3.4 billion), indicate that the Saudi government succeeded in creating a flexible investment environment in accordance with global standards.

Foreign direct investment flows recorded very high levels in the fourth quarter, according to the figures of the General Authority for Statistics (GASTAT). Those amounted to around SAR 19 billion ($5 billion), with an increase of 16.6 percent compared to the third quarter of 2023.

The Saudi government has recently presented a package of new tax incentives for a period of 30 years to support the program to attract the regional headquarters of international companies, including exemption from income tax.

Economic analyst at King Faisal University Dr. Mohammad bin Dulaim Al-Qahtani told Asharq Al-Awsat that the flow of foreign investment into the country was expected to exceed SAR50 billion in the fourth quarter of 2026, with the completion of the infrastructure for a number of giant projects, including NEOM, the Red Sea tourism projects, and others.

He said the Kingdom will witness a major development as the Saudi economy has multiple resources, including oil, gas, minerals, gold, cultural and religious tourism, as well as sports and non-oil industries.

Dr. Salem Bajajah, an academic at King Abdulaziz University, said that the Saudi market is attractive for investment in several promising sectors, including tourism, entertainment, sports, and nutrition.

He attributed the increase in foreign direct investment flows in the Kingdom to companies making several lucrative returns, in addition to the government incentives that turn the investment environment attractive to international companies.


Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
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Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)

The unemployment rate among Saudis approached the target of 7 percent, which was set in Vision 2030. At the end of the fourth quarter of 2023, unemployment declined to 7.7 percent, supported by a greater female participation in the labor market.

Human resources experts link this positive development to corrective strategies for the labor market and nationalization programs, as well as specialized programs that target the private sector.

Crown Prince Mohammed bin Salman had previously revealed that Vision 2030 sought to achieve an unemployment target of 4 to 7 percent, stressing that the government would attain this goal before the specified date.

According to data from the General Authority for Statistics (GASTAT) on Thursday, the unemployment rate among Saudis decreased in the fourth quarter of 2023 to the lowest level, due to the rise in the number of female workers and growth rates recorded by non-oil activities in the Kingdom, which contributed to providing more job opportunities.

Unemployment among Saudi women decreased to 13.7 percent compared to 16.3 percent during the third quarter, while the rate among Saudi males remained stable at 4.6 percent.

Experts told Asharq Al-Awsat that the strategies of the current human resources system were able to stimulate the private sector to accelerate the rate of employment of Saudis, in addition to the training, empowerment and guidance support programs of the Human Resources Development Fund, which in turn increased the employment process in the labor market.

Dr. Abdullah Al-Jassar, member of the Saudi Economic Society and the Energy Economics Society, explained to Asharq Al-Awsat that the decline in the unemployment rate among Saudis to 7.7 percent was achieved through support programs launched by the Ministry of Human Resources and Social Development, pointing as well to the growth of job opportunities in the private sector and efforts to stimulate investments and create an attractive economic environment.

Human resources expert Ali Al Eid noted that the entry of a large number of local and international companies into the Saudi labor market, in addition to the launch of a number of major government projects, contributed to raising employment rates.


S&P Raises Türkiye’s 2024 Growth Forecast to 3%

In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
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S&P Raises Türkiye’s 2024 Growth Forecast to 3%

In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)

International credit rating agency Standard & Poor’s (S&P) increased its 2024 total growth forecast for Türkiye to 3%.
Also, the credit rating agency Fitch announced Tuesday it upgraded Türkiye Wealth Fund's (TWF) rating from “B” to “B+.”
In its second quarter economic outlook reports for the US and emerging markets, S&P Global said the growth forecast for Türkiye was increased from 2.4% to 3% for 2024 and from 2.7% to 3% for 2025. On the other hand, the growth expectation for the Turkish economy was reduced from 3% to 2.8% for 2026.
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5%, exceeding the government’s forecast of 4.4%.
The economy expanded by 4.0% in the final quarter of the year, maintaining growth performance uninterruptedly for 14 quarters.
National income per capita increased to $13.110.
Meanwhile, Fitch Ratings has upgraded Turkiye Wealth Fund's (TWF) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B+' from 'B' with a positive outlook.
It said the upgrade of the IDRs and the Positive Outlook follow the upgrade of Türkiye's sovereign ratings dated 8 March 2024.
On March 8, Fitch Ratings upgraded the country’s rating to “B+” from “B” and changed its outlook from “stable” to “positive.”
This is because Türkiye has tightened its monetary policy since June 2023.
Senior director in Fitch Ratings’ sovereigns group and primary Türkiye analyst Erich Arispe Morales said Fitch Ratings has “greater confidence” that the country’s current economic policy pivot is “more durable.”
“Regarding the effectiveness of the policy shift, improving reserve levels, reduced contingent liability in terms of effects of protected deposits without increasing dollarization, reduced current account deficit, and easing inflation expectations, these developments warrant the rating that we took,” Morales said.
“Also, with the caveat that we've seen an improvement in the international reserve levels, and we know that if the policy settings are sustained as our base case assumes we will be seeing that reserve coverage will improve to 4.5 months in 2025,” he said. “That would bring Türkiye’s reserve coverage above what is expected for countries with a similar rating which is the B rating category,” the analyst added.
On March 13, Fitch Ratings raised its forecast for the growth of the Turkish economy from 2.5 to 2.8 percent in 2024.
According to the World Economic Outlook report, entitled "Growth expectations improve but inflation continues", the Turkish economy grew in the last quarter of 2023, above expectations, and the increase in private consumption was effective in that.
Fitch expects economic momentum to continue in the first quarter of this year. The Turkish economy is expected to grow by 3.1 percent in 2025.

 


1,200 Brands Ready for Franchising in Saudi Arabia

Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
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1,200 Brands Ready for Franchising in Saudi Arabia

Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)

More than 10,000 business opportunities are available in Saudi Arabia’s franchising market, with over 1,200 brands ready for franchising.
Saudi Arabia is becoming a hotspot for investment in the Middle East due to its favorable market conditions and supportive commercial environment.
The Kingdom has been welcoming hundreds of global brands in recent years, offering franchise opportunities across various regions.
According to a report by the Small and Medium Enterprises General Authority (Monshaat), there are over 1,000 franchising brands in the Kingdom, with 380 being local and more than 600 foreign brands.
The Saudi franchising market mainly focuses on sectors like food and beverage, retail, and services.
Saudi Arabia holds a significant share of the franchising market in the Middle East, making it attractive for global brands, especially after the launch of Vision 2030, which has spurred major investment projects in the country.
The franchising industry allows big international companies to enter local markets, providing opportunities for small investors and entrepreneurs to grow their businesses.
In 2020, the executive regulations of the franchise system were implemented to facilitate the entry of global companies into the Saudi market and to encourage investment opportunities for Saudi entrepreneurs.
The Saudi franchising law aims to ensure transparent relationships between franchisors and franchisees, offering necessary protection throughout the process.
The report from Monshaat highlighted that the Franchising Center, linked to the authority, has been assisting various Saudi brands. Their services include checking if brands are ready for franchising, licensing brokers, offering mediation services, and appointing franchise managers.
The goal of the Franchising Center is to boost the system and empower brands and stakeholders. They aim to make Saudi Arabia a regional and global hub for both local and international brands.
Through a bold program, the Franchising Center aims to help SMEs expand through franchising. This will increase the number of active brands in Saudi Arabia by offering guidance from industry experts.
Their program aims to prepare national brands, set up operational systems, and give new Saudi entrepreneurs and SMEs the chance to grow.
These franchising programs are expected to bring good returns in the short, medium, and long term, supporting fast-growing industries.
The franchising market is predicted to create job opportunities in Saudi Arabia in the coming years. Despite being relatively new in the Kingdom, it has quickly grown and developed.


EBRD to Provide 30 Mln Euros for Türkiye's Earthquake Regions 

A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
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EBRD to Provide 30 Mln Euros for Türkiye's Earthquake Regions 

A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)

The European Bank for Reconstruction and Development (EBRD) will provide 30 million euros ($32.50 million) in long-term financing to Türkiye's Ronesans Gayrimenkul Yatirim to support regions affected by last year's earthquakes.

The loan will be provided to the subsidiary of Türkiye's Ronesans Holding that deals with commercial real estate development and investment, the company said in a statement.

It said the funds will be used to support capex of two shopping centers in the southeastern provinces of Kahramanmaras and Sanlıurfa that were struck by the February 2023 earthquakes. The loan will be backed by a guarantee from the European Union.

The financing will also help to support businesses and livelihoods in the region which faces labor shortages following migration from the area after the disaster, the statement said.

On Tuesday, the Turkish treasury and the EBRD signed a memorandum of understanding for 500 million euro financing to support efforts to revive the earthquake region, Anadolu news agency reported.


New Saudi Initiative Supports Exporters, Stimulates Economic Sustainability in South

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
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New Saudi Initiative Supports Exporters, Stimulates Economic Sustainability in South

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)

In line with the ongoing efforts towards strengthening and sustaining the local economy and expanding trade exchange in the region, the Cluster 2 Company announced a new initiative aimed at supporting farmers and exporters in Jazan, south of the Kingdom.

Jazan is considered one of the most important agricultural regions in the Kingdom, thanks to its arable soil and groundwater. The city is also home to basic and transformational industries, and an ideal center for the growth of business and manufacturing industries.

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops, and to support farmers and exporters in the region, specifically during the current 2024 mango season.

In remarks to Asharq Al-Awsat, Logistics specialist Nashmi Al-Harbi pointed to the importance of this initiative, in terms of reducing export fees, which in turn will help increase the export volume and expand the access of national products to local and international markets.

He added that Jazan City for Basic and Transformative Industries represents a qualitative leap in terms of economic development in the southern region.

Al-Harbi noted that the new initiative was consistent with the objectives of the National Strategy for Transport and Logistics Services, both in improving goods and shipping services, as well as advancing the Kingdom’s ranking on logistics services performance indicators and ensuring its leadership regionally.

Jazan is known for seven important sectors, including agriculture in greenhouses, sustainable evergreen and deciduous fruit trees, the manufacture of agricultural products and their accessories, as well as crops, services, agricultural equipment, natural plants, flowers and roses, and vertical agriculture.

As the Jazan region is a major home to the world’s most famous Arabica coffee, the Public Investment Fund (PIF) announced in May 2022 the launch of the Saudi Coffee Company, with the aim of supporting the local coffee and elevating it to global ranks.

The Cluster 2 Company manages and operates 22 international, tourist and domestic airports in the Kingdom, by applying the best experiences, engaging the private sector, attracting local and international investments to enhance the customer experience, as well as improving sustainable infrastructure, and providing valuable benefits for beneficiaries.

SAL is a national facility specialized in providing ground handling services for air cargo and logistical solutions in the Kingdom. It handles 95 percent of the volume of air shipments at airports, making it a major driver in the development of this sector, according to Vision 2030.