UAE’s FAB to Shut Qatar Operations

FAB's headquarters in Abu Dhabi. Asharq Al-Awsat
FAB's headquarters in Abu Dhabi. Asharq Al-Awsat
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UAE’s FAB to Shut Qatar Operations

FAB's headquarters in Abu Dhabi. Asharq Al-Awsat
FAB's headquarters in Abu Dhabi. Asharq Al-Awsat

First Abu Dhabi Bank, FAB, has notified the Qatar Financial Center Regulatory Authority, QFCRA, that it will relinquish its Qatar Financial Center, QFC, branch licence and permanently close its QFC branch.

According to a statement issued by FAB, the decision to close its QFC branch follows "many months of baseless actions by the QFCRA that have made it impossible for FAB’s operations to continue in Qatar."

The QFCRA alleges FAB conducted transactions intended to manipulate the Qatari riyal. "These allegations are entirely false and FAB unequivocally denies them. FAB conducts its business in accordance with the highest professional standards and in full compliance with the laws and regulations of all the jurisdictions in which it operates," the statement added.

It went on to say that FAB made good faith efforts to engage with the QFCRA to resolve the matter, with FAB’s QFC branch providing all relevant and responsive information that it was required to disclose pursuant to QFC law.

Despite FAB’s attempts to resolve matters with the QFCRA, it is clear that no solution is attainable. Consequently, FAB has been left with no option but to make a business decision to close its QFC branch.

"Treating FAB QFC branch’s customers fairly is of paramount importance," the statement continued, adding that FAB will safeguard the rights and interests of such customers by effecting an orderly wind-down of the QFC branch’s operations. FAB has already put in place appropriate measures to protect all of its QFC branch employees and customers.

The QFCRA’s actions have no impact outside of FAB’s Qatar branch, which contributed less than 0.03 percent of FAB’s full year 2018 net profit, and relinquishing the QFC branch license is not expected to have any material impact on future Group performance or strategy, the statement concluded.

Last month, FAB officially inaugurated its Saudi Arabia operations during a ceremony at its new Riyadh branch.

The bank has reported solid operating performance for the first quarter, with net profit amounting to AED3.1 bn, up 6 percent sequentially and 4 percent year-over-year.



Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
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Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer revealed that spending on exploration in Saudi Arabia’s mining sector has seen a significant rise, increasing from approximately SAR 100 million ($26.6 million) in 2018 to over SAR 500 million ($133.3 million) annually.

Al-Mudaifer stated that these funds are being invested in local service companies, including drilling and laboratory services, as well as employing Saudi and international professionals.

The deputy minister made these remarks during a press conference held to unveil details of the fourth edition of the International Mining Conference, scheduled to take place in Riyadh from January 14-16.

Al-Mudaifer described the conference as a key platform for addressing challenges in the mining sector and finding practical solutions. The event will host representatives from 85 countries, including mineral producers and consumers, alongside over 50 international organizations, trade unions, and community organizations.

The conference will feature more than 75 sessions with over 250 speakers, including ministers and senior local and international officials, covering pressing topics such as project financing, promoting future mining zones, the role of minerals in community development, and the impact of technology on the sector.

Al-Mudaifer emphasized Saudi Arabia’s ambition to establish international cooperation frameworks in mining, driven by its historical significance and geographic location as a trusted energy supplier. He highlighted the need for a unified global effort to address the sector’s growing challenges, including insufficient exploration spending, which currently falls short of the level required to achieve sustainable growth.

The deputy minister noted that increased exploration investment, technological innovation, and attracting further investment are essential for overcoming these challenges. Despite these obstacles, he remains optimistic, citing the rising global demand for minerals as a significant economic growth driver.

Saudi Arabia is experiencing significant opportunities in mining, particularly in exploration. Al-Mudaifer pointed out that new mineralized zones, covering areas between 2,000 and 4,000 square kilometers, have been announced for 2024—a tenfold increase compared to 2023.

Previously, only 1,000 square kilometers were allocated annually for exploration, but this year, approximately 10,000 square kilometers were offered, he remarked. Several major international companies have entered the latest investment competitions, committing to exploration spending, employing young Saudi geologists, and supporting local communities near exploration sites.

Investments and Regulatory Advancements

According to Al-Mudaifer, Saudi Arabia has seen substantial investments in the mining and minerals sectors, particularly in iron, aluminum, electric vehicle batteries, copper, and chemicals. Current investments exceed SAR 120 billion ($32 billion) and are projected to reach SAR 300 billion ($80 billion) by 2035.

He also noted that the Kingdom, is one of the fastest-advancing countries in developing mining regulations and infrastructure. This progress is attributed to the comprehensive strategies under Saudi Vision 2030, which seek to position the Kingdom as a global leader in all sectors, with a strong focus on sustainability.

Aramco Fields

Al-Mudaifer disclosed that Saudi Arabia successfully extracted lithium from brine samples in Aramco’s fields and is planning to launch a commercial pilot program for direct lithium extraction soon. The project will be led by Lithium Infinity (LihyTech), a startup from King Abdullah University of Science and Technology, in collaboration with Aramco and the Saudi Arabian Mining Company (Ma’aden).

Sustainable Development

Ali Al-Mutairi, General Supervisor of the International Mining Conference, stated that inclusivity will be a cornerstone of the event, which aims to bring together all stakeholders in the global mining industry, including governments, international policy-making organizations, NGOs, and investors with the financial capacity to support major projects.

One of the primary goals of the sector, he added, is to foster community development, aligning with the focus of rights of organizations on environmental sustainability and talent development to create job opportunities and promote sustainable growth.

Global Networks

The upcoming conference will spotlight G20 nations and other resource-rich countries, drawing participation from 85 nations and various organizations, including UN-affiliated ones.

A notable new event on the conference’s sidelines will be a meeting of global centers of excellence and technology to establish a regional and international network aimed at building human capacity, accelerating the adoption of advanced technologies, and transferring expertise from developed to less-developed countries.

The conference will also introduce the Investment Pathway, a two-day program designed to address one of the mining industry’s critical challenges: financing, particularly for early-stage exploration projects.

Knowledge Exchange

The accompanying three-day exhibition will focus on modern mining technologies, Al-Mutairi said, adding that it will feature national pavilions from leading mineral-producing countries, including Australia, Canada, Brazil, and India, fostering technological and knowledge exchange.

For the first time, the conference will host a Knowledge Exchange Day, providing a dedicated platform to share the latest developments in mineral information, geology, technology, sustainability, and talent development, with the aim to enhance collaboration and expertise-sharing among global specialists.