18 MoUs on Energy between Saudi, Iraqi Companies

The Iraqi and the Saudi oil ministers Jabar al-Luaibi and Khalid al-Falih open the Baghdad International Exhibition, in Baghdad, Iraq October 21, 2017. REUTERS/Khalid al-Mousily
The Iraqi and the Saudi oil ministers Jabar al-Luaibi and Khalid al-Falih open the Baghdad International Exhibition, in Baghdad, Iraq October 21, 2017. REUTERS/Khalid al-Mousily
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18 MoUs on Energy between Saudi, Iraqi Companies

The Iraqi and the Saudi oil ministers Jabar al-Luaibi and Khalid al-Falih open the Baghdad International Exhibition, in Baghdad, Iraq October 21, 2017. REUTERS/Khalid al-Mousily
The Iraqi and the Saudi oil ministers Jabar al-Luaibi and Khalid al-Falih open the Baghdad International Exhibition, in Baghdad, Iraq October 21, 2017. REUTERS/Khalid al-Mousily

Saudi and Iraqi companies signed on Tuesday 18 memorandums of understanding in the fields of energy in the Iraqi city of Basra, in the presence of Eng. Khalid Al-Falih, Saudi Minister of Energy, Industry and Mineral Resources and his Iraqi counterpart, Oil Minister Jabbar al-Luaibi.

Al-Falih, in partnership with al-Luaibi, opened the seventh edition of the Iraq International Oil and Gas Conference and Exhibition, where the Kingdom is a guest of honor, within a delegation consisting of 22 exhibitors and participants in energy and sister industries.

In a speech following the signing ceremony of the MoUs, Al-Falih said that great efforts to promote Iraq and invest its resources to achieve comprehensive development make Saudi Arabia look forward to participating in this development process, which meets Saudi efforts to implement Vision 2030.

“Both countries share a determination to build a promising future for their people, develop their economies, invest resources, promote human capacities and establish sustainable national and global partnerships that support these goals,” he said.

The Saudi minister noted that the Kingdom and Iraq enjoyed strategic advantages, including human resources, geographical location, energy, natural and mineral wealth and existing and potential industrial strength, pointing out that the similarity of these advantages was a solid basis for cooperation between the two countries.

The Iraqi oil minister, for his part, highlighted the importance of the outstanding participation of Saudi companies in the Basra Fair and expressed his optimism towards the opening of new horizons of cooperation and partnership in the future.

Al-Luaibi said that Basra was one of the most important energy capitals in the region and the world and that Saudi Arabia was the region’s leading investor, pointing out that the Iraqi government and the Ministry of Oil were looking forward to activating cooperation with Saudi companies to enhance the economy in both countries.



IMF Expects Saudi Non-Oil Growth to Average 5%, Current Account to 10-Year High Surplus

Petrochemical plant in Saudi Arabia (Asharq Al-Awsat)
Petrochemical plant in Saudi Arabia (Asharq Al-Awsat)
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IMF Expects Saudi Non-Oil Growth to Average 5%, Current Account to 10-Year High Surplus

Petrochemical plant in Saudi Arabia (Asharq Al-Awsat)
Petrochemical plant in Saudi Arabia (Asharq Al-Awsat)

The International Monetary Fund (IMF) maintained its positive outlook for the Saudi economy, given the non-oil strong growth momentum, which is expected to to grow at an average five percent in 2023.

The Fund indicated that the current account improved to a ten-year high surplus in 2022 amid higher oil prices and stepped-up production.

The current GDP surplus reached 13.6 percent, and some sectors exceeded the targets under Vision 2030.

Currency strength

In its latest Article IV, the Fund said that the "inflation rate remains low and appears to be easing."

It noted that inflation will be contained in 2023, and at "2.8 percent, the average CPI will be slightly higher than in 2022, even though a strong currency, subsidies, and gasoline price cap offset inflationary pressures from diminishing labor market slack and a booming non-oil economy."

The output gap is estimated to have closed during 2022, and the momentum is continuing in 2023, with nowcasting estimates "suggesting non-oil growth above 5 percent in H1 2023."

The fiscal surplus in 2022 -the first since 2013- was halved relative to the staff's initial projection of 5.5 percent of GDP.

It mainly reflects "increases in goods and services and capital spending."

Public debt

At 23 percent of GDP, public debt is low and sustainable, with fiscal space available to address potential headwinds.

The IMF reported that the "exchange rate peg to the US dollar remains appropriate given the current economic structure. It is a policy that has been serving the country well to support monetary stability."

Mortgage loans

The report pointed out that despite the mortgage boom in recent years, banking sector risks from the housing sector are assessed to be limited so far.

It stated that "achieving strong, sustained, inclusive, and greener growth" and implementing the "Vision 2030 reform agenda is continuing unimpeded towards a productive and green economy."

A "mid-way stocktaking of the objectives set under Vision 2030 has identified progress on digitalization, the regulatory and business environment, female labor force participation, and higher private sector investment, in some cases with targets set for 2030 already surpassed."

Renewable energy

The mission "welcomes ongoing plans to increase renewable energy by an additional 2.1 GW capacity by 2024, generate savings through efficiency programs (tarshid), deploy carbon Capture, Usage, and Storage technologies, and become the world's leading hydrogen exporter."

The Fund stated that the Saudi Central Bank (SAMA) intervention has helped alleviate liquidity strains as interest rate spreads have now normalized to their historical averages.

The Saudi unemployment rate is at a historical low.

Amid an increase in labor force participation, total unemployment dropped to 4.8 percent by end-2022, from nine percent during Covid, reflecting an increase in Saudi workers in the private sector and expatriate workers (mainly in the construction and agricultural sector) rising back above pre-Covid levels.

The fastest-growing economy

According to the Fund, the Kingdom was the fastest-growing G20 economy in 2022.

"Overall growth reached 8.7 percent, reflecting both strong oil production and a 4.8 percent non-oil GDP growth driven by robust private consumption and non-oil private investment, including giga projects."

The importance of initiatives

Experts pointed out that initiatives and programs undertaken by the Saudi government are essential to developing the non-oil sector, which will positively impact the national economy, expecting it to witness significant growth in the next stage.

Project implementation

Economics Professor Salem Baajaja at the University of Jeddah told Asharq Al-Awsat that the IMF confirmed the rapid growth of the Saudi economy among the G20 economies, considering the Kingdom's plans of Vision 2030 toward a prosperous economy.

Baajaja indicated that Saudi Arabia's domestic product increased by 8.7 percent due to the increase in oil and non-oil revenues together, yet consumer spending increased, reflecting the Saudi economy's growth.

Financial stability

Economic analyst Abdulrahman al-Jubairi explained that the Fund's expectations for the five percent growth projection of the non-oil sector in Saudi Arabia confirm the government's role in diversifying income sources and promoting private sector investments.

Jubairi told Asharq Al-Awsat that the Central Bank is making significant efforts to maintain financial stability, raise solvency, and promote technical infrastructure.

He added that the Kingdom could support the banking system due to its large foreign reserves and access to global markets, which reflected positively on the data and indicators of exports from international organizations.

 


OECD Predicts 'Long Road' for Global Economic Recovery

 The logo of the Organization for Co-operation and Development (DPA)
 The logo of the Organization for Co-operation and Development (DPA)
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OECD Predicts 'Long Road' for Global Economic Recovery

 The logo of the Organization for Co-operation and Development (DPA)
 The logo of the Organization for Co-operation and Development (DPA)

The Organization for Economic Cooperation and Development (OECD) expressed some optimism about global growth, but warned of a “long road” before reaching a sustainable recovery.

“The global economy is turning a corner but faces a long road ahead to attain strong and sustainable growth,” OECD chief economist Clare Lombardelli wrote in the OECD’s Economic Outlook.

According to the report, which was issued at an annual ministerial meeting held at the headquarters of the OECD in Paris, the global economy is benefiting from stagnant inflation after the rise in indicators witnessed last year due to the repercussions of the war in Ukraine on energy and food prices.

In May, for example, inflation slowed significantly in the Eurozone, to 6.1 percent year on year. In the United States, it reached 4.4 percent in April, much lower than the levels reached in 2022.

This slowdown means that central banks can limit interest rate hikes, which facilitates access to credit for households and businesses, leading to a rise in consumption and thus growth.

The recent recovery of Chinese economic activity after the strict zero Covid policy is enough to revitalize the global economy, according to the organization, which expects growth in China this year to reach 5.4 percent, an increase of 0.1 points compared to March expectations, and 5.1 percent next year (+ 0.2 points).

The OECD expects growth of 0.9 percent in the Eurozone this year, up slightly by 0.1 points, after reassessing Italian GDP growth to 1.2 percent (+0.6 points).

Growth in France is expected to be 0.8 percent (+0.1 points) and zero in Germany (-0.3 points). The UK could see growth of 0.3 percent. Outside Europe, The GDP in the US is likely to grow by 1.6 per cent, and in India 6 per cent.

“The recovery will be weak by past standards,” Lombardelli wrote, noting that the growth forecast for 2024 remains unchanged at 2.9 percent.

One of the challenges that the OECD referred to is the persistence of non-energy and food inflation, which “is still high”.

“Central banks need to maintain restrictive monetary policies until there are clear signs that underlying inflationary pressures are abating,” the chief economist said.


GASTAT: Saudi Economy Records 3.8% Growth in Q1 of 2023

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
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GASTAT: Saudi Economy Records 3.8% Growth in Q1 of 2023

Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser
Buildings are seen in Riyadh, Saudi Arabia, December 18, 2017. Picture taken December 18, 2017. REUTERS/Faisal Al Nasser

The real GDP of Saudi Arabia grew by 3.8% in the first quarter of 2023, compared to Q1 of 2022.

Estimates of GDP for Q1 of 2023, issued Thursday in a report by the General Authority for Statistics (GASTAT), showed a 5.4% increase in non-oil activities in Q1 of 2022, a 4.9% increase in government activities in Q1 of 2022, and a 1.4% increase in oil activities in Q1 of 2022.

According to the report, seasonally adjusted real GDP decreased by 1.4% in Q1 of 2023 compared to Q4 of 2022.

GASTAT is the only official reference for statistical data and information in Saudi Arabia. It carries out all statistical work, as well as the technical oversight of the statistical sector. It also designs and implements field surveys, conducts statistical studies and researches, analyzes data and information, and documents and archives all works containing information and statistical data on all aspects of life in Saudi Arabia. It writes, classifies and analyses data, and extracts indicators from it.

 

 


GCCIA to Begin Interconnection with Iraq

Minister Ziyad Fadel discussed in Saudi Arabia proceeding with the Gulf interconnection project and proposals for its development (Iraqi electricity)
Minister Ziyad Fadel discussed in Saudi Arabia proceeding with the Gulf interconnection project and proposals for its development (Iraqi electricity)
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GCCIA to Begin Interconnection with Iraq

Minister Ziyad Fadel discussed in Saudi Arabia proceeding with the Gulf interconnection project and proposals for its development (Iraqi electricity)
Minister Ziyad Fadel discussed in Saudi Arabia proceeding with the Gulf interconnection project and proposals for its development (Iraqi electricity)

The Gulf Cooperation Council Interconnection Authority (GCCIA) will launch Thursday the implementation of the electrical interconnection project with the southern Iraq network, which is expected to be operational by the end of next year.

The governor of the Eastern Region, Prince Saud bin Naif bin Abdulaziz, will inaugurate the ceremony in the presence of GCC Sec-Gen Jassim al-Budaiwi, and Gulf and Iraqi ministers.

Chairman of the GCCIA Board Mohsen al-Hadrami asserted the importance of the event at the level of Gulf countries, reiterating that the project will boost cooperation with Iraq.

Hadrami indicated that energy security is one of the most important axes of cooperation developed through exchange between the GCC countries and Iraq, noting that it is the first step to expand outside the Gulf grid system by linking neighboring countries such as Turkey, Jordan, and Egypt.

The project is in line with the vision of the GGCC and the GCCIA to expand connectivity with the neighboring grid, reaching Europe, Africa, and Asia.

CEO of GCCIA Ahmed al-Ebrahim considered the interconnection project a key strategic project in the Gulf and one of the most important infrastructure interconnection projects approved by the GCC leaders.

He indicated that the project aims to achieve its main strategic goals of enhancing energy security, increasing reliability, and ensuring safety for Gulf grids.

Meanwhile, Iraqi Minister of Electricity Zial Fadhil visited the GCCIA headquarters in Saudi Arabia as part of his visit to the Kingdom.

Fadhil discussed the interconnection project and network stability.

He also reviewed the developments related to the required contracts, the stages completed, the implementation plan, and the connecting lines inside Kuwait.

In July 2022, the Gulf Interconnection Authority (GCCIA) signed the contract between its network and the electricity grid of southern Iraq on the sidelines of the Jeddah Security and Development Summit.

The contract includes the authority's construction of lines from its substation in Kuwait to the al-Faw station in southern Iraq to supply it with about 500 megawatts of energy from the Gulf countries. Construction will take about 24 months, with a total transmission capacity of 1,800 megawatts.

Last February, the authority concluded five contracts with the companies executing the project at a total cost of more than $200 million.


Saudi Private Sector Seeks to Expand Business with Arab, Chinese Companies

Photo of the Investment between Saudi Arabia and China workshop, which was recently held in Riyadh (Asharq Al-Awsat)
Photo of the Investment between Saudi Arabia and China workshop, which was recently held in Riyadh (Asharq Al-Awsat)
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Saudi Private Sector Seeks to Expand Business with Arab, Chinese Companies

Photo of the Investment between Saudi Arabia and China workshop, which was recently held in Riyadh (Asharq Al-Awsat)
Photo of the Investment between Saudi Arabia and China workshop, which was recently held in Riyadh (Asharq Al-Awsat)

The Saudi private sector is intensifying efforts to maximize the benefits of the Arab-China Business Conference, which will be held next week in Riyadh.

 

The volume of trade exchange between Saudi Arabia and China is witnessing a remarkable growth, reaching SAR 1.2 trillion ($320 billion) over the past five years.

 

These figures reflect the strength and durability of the strategic economic partnership and the diversity of investment opportunities in both countries.

 

According to information obtained by Asharq Al-Awsat, the Federation of Saudi Chambers has called on the private sector to participate in the conference in order to benefit from opportunities to strengthen economic and trade relations and develop investments between China and Arab countries.

 

Riyadh is scheduled to host the 10th edition of the Arab-China Business Conference on June 11-12.

 

The conference will be held under the theme, Cooperation for Prosperity, and aims to support and strengthen the economic, trade and investment partnership between China and the Arab countries, in a step towards reaching solutions that take into account common interests through strategic cooperation.

 

The conference will provide a space for research and discussion among a group of forward-thinking executives, business leaders, investors and entrepreneurs.

 

According to a report recently issued by the Federation of Saudi Chambers, Saudi-Chinese economic relations are witnessing growth and promising prospects in light of the supportive political will. This provides wide opportunities for economic cooperation and commercial and investment partnerships between the business sectors of the two countries.

 

The report highlighted the bilateral economic relations, which represent an international model for constructive fruitful cooperation and strategic partnership, thanks to their reliance on a solid base of institutional and regulatory frameworks represented by the Saudi-Chinese joint committee, Vision 2030 and the Belt and Road initiative, as well as the Saudi-Chinese Business Council.

 

The report also shed light on the opportunities for economic integration between the Kingdom and China, in light of the Chinese Belt and Silk Road initiative, which is consistent in many aspects with Vision 2030.

 

China exports a number of products and commodities to Saudi Arabia, including electrical equipment, heavy machinery, furniture, vehicles, clothing, plastics, iron and steel, ceramic products, rubber, ready-made construction equipment, and other goods.

 

Oil, chemical industries, plastics and their products, and rubber are the most important Saudi commodities exported to China.

 


Saudi, UK Discuss Developing Trade and Investment

A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
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Saudi, UK Discuss Developing Trade and Investment

A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo
A general view is seen of the London skyline from Canary Wharf in London, Britain, October 19, 2016. REUTERS/Hannah McKay/File Photo

The Economic and Social Committee of the Saudi Arabia-UK Strategic Partnership Council held its third meeting in London, headed by Saudi Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, and UK Secretary of State for the Department for Energy Security and Net Zero, Grant Shapps.

The meeting discussed improving bilateral relations and enhancing cooperation in fields agreed upon in the Strategic Partnership, in addition to highlighting the significant economic and social progress recognized since the launch of the Saudi Vision 2030.

It also reaffirmed the continuous commitment to support the goals of the vision and the Saudi program for economic diversification, in addition to working to develop trade and investment between the two kingdoms.

The Saudi-UK Strategic Partnership Council seeks to boost economic relations in several fields, mainly financial services, especially FinTech (financial technology), open banking, green finance, and priority investment sectors.

It also aims at strengthening educational partnerships, cooperation in health care (including preparedness for epidemics) and health technology, and the general development of the entire healthcare system.

This comes in addition to cooperation in carbon capture, utilization and storage, hydrogen production, renewable energy sources, space, mining, pharmaceuticals, and aviation, and partnerships in the film, heritage, arts, tourism, and entertainment sectors.

The Economic and Social Committee held its first meeting in Jeddah in 2019.


Turkish Lira Down 7% in Biggest Selloff Since 2021 Crisis 

People walk past the Eminonu New Mosque the day after the second round of presidential elections, in Istanbul, Türkiye, 29 May 2023. (EPA)
People walk past the Eminonu New Mosque the day after the second round of presidential elections, in Istanbul, Türkiye, 29 May 2023. (EPA)
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Turkish Lira Down 7% in Biggest Selloff Since 2021 Crisis 

People walk past the Eminonu New Mosque the day after the second round of presidential elections, in Istanbul, Türkiye, 29 May 2023. (EPA)
People walk past the Eminonu New Mosque the day after the second round of presidential elections, in Istanbul, Türkiye, 29 May 2023. (EPA)

Türkiye’s lira plunged 7% to a record low on Wednesday in its biggest daily selloff since a historic 2021 crash, as the newly-elected government appeared to loosen stabilising measures in its pivot to more orthodox policies.

The lira has come under pressure since President Recep Tayyip Erdogan was re-elected on May 28. It stood at 22.98 against the dollar at 0735 GMT.

Earlier it touched a record low of 23.16, bringing its losses this year to more than 19%.

Erdogan announced his new cabinet at the weekend and named Mehmet Simsek, a former deputy prime minister who is well regarded by foreign investors, as finance minister. Simsek later said economic policy needed to return to "rational" ground.

Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies.

"We are seeing policy normalization play out," said Tim Ash at BlueBay Asset Management.

"I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy."

For much of this year, authorities have taken a hands-on role in foreign exchange markets, using up tens of billions of dollars of reserves to hold the lira steady.

Bankers say the lira's continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves.

"The lira is getting closer every day to a level that will not need to be defended with reserves. I expect losses to continue for a while," a forex trader said, adding sharp intraday losses show the currency is nearing "expected levels."

Some analysts expect the lira to weaken towards a range of 25-28 against the dollar.

Return to orthodoxy

Under pressure from Erdogan, a self-described "enemy" of interest rates, the central bank slashed its policy rate to 8.5% from 19% in 2021 to boost growth and investment. But it sparked a record lira crisis in December of 2021 and sent inflation to a 24-year high above 85% last year.

The return of Simsek, who was finance minister and deputy prime minister in 2009-2018, signaled a move away from the unorthodox rate cuts despite high inflation that have sparked a more than 80% erosion in the lira's value in five years.

Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported on Monday. Erkan met with Simsek in Ankara on Monday.

Erkan would be the country's fifth central bank chief in four years, after Erdogan fired previous governors as part of frequent policy pivots.

Turkish authorities are now hoping foreign investors will return after a years-long exodus, but market watchers cautioned that Erdogan turned to conventional policies in the past only to change his mind shortly after.

"Even without political interference, the process of getting Türkiye onto a sustainable path is going to be turbulent, and likely involves substantial devaluation and higher yields," said Paul McNamara, director of emerging market debt at asset manager GAM.

"We think fair value for the lira is probably 15% or so lower, but containing a devaluation without substantial external support is going to be a desperately difficult task," he said before Wednesday's decline.

"Orthodoxy would involve (above all) allowing the lira to find a sustainable level without intervention and abandoning the de facto capital controls currently in place."


GCCIA CEO: Wafrah Station is Hub of Electrical Connectivity with Neighboring Countries

Gulf Electrical Interconnection Project model (KUNA)
Gulf Electrical Interconnection Project model (KUNA)
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GCCIA CEO: Wafrah Station is Hub of Electrical Connectivity with Neighboring Countries

Gulf Electrical Interconnection Project model (KUNA)
Gulf Electrical Interconnection Project model (KUNA)

Kuwait's al-Wafrah station is the hub for connecting neighboring countries with the future expansion of the interconnection network, said the CEO of GCC Interconnection Authority (GCCIA), Ahmed al-Ebrahim.

Ebrahim said that the Authority, in cooperation with specialists from the Kuwaiti Ministry of Electricity and Renewable Energy, has conducted technical and economic studies to harness the full potential of grid interconnectivity.

He added that the technical studies confirmed the need to build a new station compatible with the technical specifications of the stations of the Kuwait network at a voltage of 400 kilovolts.

The official noted that the economic goals of establishing the Wafrah station include saving installed capacity, especially with the increased summer electrical loads, and boosting interconnection to pass a larger capacity in support of emergencies to member states.

It also provides more significant opportunities for energy exchange by increasing the electrical interconnection capacity to achieve economical operation, increase the network's security and stability, and enable the integration of renewable energy and maximum utilization.

The CEO explained that the project consists of constructing a 400 kV substation in al-Wafra and constructing double-circuit overhead lines to connect the station with the al-Fadhili station in Saudi Arabia, with a length of approximately 300 km.

The project includes expanding the Fadhili station by adding electrical circuit breakers with a voltage of 400 kV to connect with the Wafra station. It also includes 400KV antennas to 3Z and 4Z stations to link with Kuwait Network.

Ebrahim noted that the project will take 24 months and will be completed at the end of December 2024.

The Authority was established based on the Unified Economic Agreement between the Gulf states, which was approved by the leaders in their second session in 1981, to link the networks of the GCC states, said Ebrahim.

He indicated that the Gulf Interconnection Project is an essential infrastructure linking project, achieving its most important strategic goals in enhancing energy security and raising Gulf electric systems' reliability and safety.

The Interconnection Project was implemented in three phases and consisted of the following principal elements: the interconnection of the Northern Systems in Kuwait, Saudi Arabia, Bahrain, and Qatar, completed in early 2009.

The second phase comprised the internal interconnection of the Southern Systems, including UAE and Oman, to form the UAE National Grid and the Oman Northern Grid, and the last phase, in 2010, interconnected the Northern and Southern Systems.

The Authority's CEO explained that the interconnection objectives include enhancing the security of electric power and achieving economic savings resulting from the possibility of each country benefiting from the reserves of other GCC countries to help reduce their stockpiles.

The benefits also extend to saving the cost of building new power stations, thus reducing operating and maintenance expenses, reducing carbon emissions, and activating and developing electric energy trading markets.


Emirates Says to Make Purchase Order of 150 Jets

An Emirates plane at Dubai International Airport. (Asharq Al-Awsat)
An Emirates plane at Dubai International Airport. (Asharq Al-Awsat)
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Emirates Says to Make Purchase Order of 150 Jets

An Emirates plane at Dubai International Airport. (Asharq Al-Awsat)
An Emirates plane at Dubai International Airport. (Asharq Al-Awsat)

Emirates is close to a substantial aircraft order of as many as 100 to 150 jets as it prepares to replace its fleet of Airbus SE A380 double-decker planes, due to come offline early next decade.

The airline is “close to doing something that will involve buying more Airbus A350s and Boeing Co. 777s,” and “maybe also Boeing’s smaller 787 Dreamliner,” Emirates President Tim Clark said in an interview with Bloomberg TV in Istanbul at the IATA annual general meeting on Tuesday.

“We will be making orders fairly soon,” Clark said. The airline will seek to place the orders for delivery starting 2027 through 2033, with the A380 planes exiting operation in 2032. “It could come next week, it could come at the Dubai Air Show,” he said.

Clark said demand for flying is the strongest it’s been in a long time, with the possibility of some “tapering toward the middle of next year.”

In parallel, IATA boosted its industry profit forecast to $9.8 billion from $4.7 billion cheered by strong travel demand and an easing in oil prices. Revenue is expected to grow to $803 billion, inching closer to 2019's pre-pandemic level of $838 billion.

“The pandemic years are behind us, and borders are open as normal,” said the director general of the International Air Transport Association William Walsh.

“Margins are, however, wafer thin,” he added.

Emirates Group reported a record profit during FY 2022-2023 of 10.9 billion dirhams ($2.96 billion), compared with a 3.8 billion dirhams ($ 1.1 billion) loss in the previous year. The Group’s revenue recorded in the FY ending March an increase of 81% to 119.8 billion dirhams ($32.6 billion).


Saudi Arabia, Latvia Sign MoU to Promote Trade, Joint Investment

The signing ceremonies were held during the Saudi-Latvian Business Forum, which was organized by the FSC - SPA
The signing ceremonies were held during the Saudi-Latvian Business Forum, which was organized by the FSC - SPA
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Saudi Arabia, Latvia Sign MoU to Promote Trade, Joint Investment

The signing ceremonies were held during the Saudi-Latvian Business Forum, which was organized by the FSC - SPA
The signing ceremonies were held during the Saudi-Latvian Business Forum, which was organized by the FSC - SPA

The Federation of Saudi Chambers (FSC) and the Investment and Development Agency of Latvia (LIAA) have signed a memorandum of understanding (MoU) to promote trade and investment between the Kingdom of Saudi Arabia and the Republic of Latvia.

The signing ceremonies were held during the Saudi-Latvian Business Forum, which was organized by the FSC.

The event was headed by the member of the FSCs' Board of Directors and Chairman of Al Ahsa Chamber Abdulaziz Saleh Al Mousa, and Minister for Economics of the Republic of Latvia Ilze Indriksone, with the participation of 20 Latvian companies and several government agencies and Saudi business owners.

The forum highlighted the opportunities available to Latvian companies in Vision 2030 projects, the Saudi market, business environment, and opportunities in Latvia, and prospects for cooperation between the business sectors of the two countries, especially in the sectors of logistics, construction, information and communication technology, digitization, and the food, pharmaceutical, and medical industries.