Saudi Arabia: SAGIA to Become an Independent Ministry

Saudi Arabia: SAGIA to Become an Independent Ministry
TT

Saudi Arabia: SAGIA to Become an Independent Ministry

Saudi Arabia: SAGIA to Become an Independent Ministry

Transforming the Saudi General Investment Authority (SAGIA) into an independent ministry represents a fundamental shift in the national economy.

Such a move would diversify production and attract qualitative investments, according to an economist and member of the Saudi Shura Council.

Saudi Arabia announced Tuesday that SAGIA will become the Ministry of Investment, led by former Energy Minister Khalid al-Falih.

Shura member Saeed al-Sheikh told Asharq Al-Awsat that the decision to convert SAGIA into a ministry is important, strategic, and in line with the directions of Vision 2030. It will give the Authority additional powers enjoyed by ministries to increase its effectiveness in attracting local and international investments.

Sheikh believes that there is an urgent need for horizontal diversification in light of the information boom and the fourth industrial revolution, pointing out that transforming the authority into a ministry aims to attract more qualitative investments that achieve high added value and also create job opportunities. 

In addition, the investment sector will be separated from the Ministry of Commerce in a step that confirms the seriousness of the Saudi objective to diversify the economy, involve the private sector in development, and attract more investments that add value to the national economy.

The step also comes within the framework of promoting the government’s performance and pushing it to achieve the goals and initiatives of Vision 2030.

Vision 2030 is based on three axes: A prosperous economy, an ambitious state, and a vibrant society, in order for Saudi Arabia to be a pioneer in investment.

SAGIA sought to attract and enable qualitative investments for sustainable development, as the authority worked to monitor and evaluate the performance of investments and overcome difficulties faced by investors. It has carried out studies, and presented and proposed implementation plans with a view to promoting investments within Saudi Arabia.



Oil Prices Fall More than 1% as Hurricane Rafael Risk Recedes

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT

Oil Prices Fall More than 1% as Hurricane Rafael Risk Recedes

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices fell on Friday on receding fears over the impact of Hurricane Rafael on oil and gas infrastructure in the US Gulf while investors also weighed up fresh Chinese economic stimulus.

Brent crude oil futures lost $1.04, or 1.38%, to $74.59 a barrel by 1243 GMT. US West Texas Intermediate (WTI) crude was down $1.22, or 1.69%, at $71.14.

The benchmarks have reversed Thursday's gains of nearly 1%, but Brent and WTI are still on track to finish 2% up over the week, with investors also examining how US President-elect Donald Trump's policies might affect oil supply and demand, Reuters reported.

Hurricane Rafael, which has caused 391,214 barrels per day of US crude oil production to be shut in, is forecast to weaken and move slowly away from US Gulf coast oilfields in the coming days, the US National Hurricane Center said.

Downward price pressure also came from data showing crude imports in China, the world's largest oil importer, fell 9% in October - the sixth consecutive month to show a year-on-year decline.

"The weakening of oil imports in China is due to weaker demand for oil as a result of the sluggish economic development and rapid advance of e-mobility," said Commerzbank analyst Carsten Fritsch.

China kicked off a fresh round of fiscal support on Friday, announcing a package that eases debt repayment strains for local governments.

The nation's economy has faced strong deflationary pressures in the face of weak domestic demand, a property crisis and mounting financing strains on indebted local governments, limiting their investment capability.

"There were no additional stimulus measures targeting domestic demand, hence the disappointment weighing on prices," UBS analyst Giovanni Staunovo told Reuters.

Prices had risen on Thursday on expected actions by the incoming Trump administration, such as tighter sanctions on Iran and Venezuela, which could limit oil supply to global markets.

"In the short-term, oil prices might rise if the new President Trump is quick on the draw with oil sanctions," said PVM analyst John Evans.

US Federal Reserve Chair Jerome Powell said on Thursday that Trump's proposed policies of broad-based tariffs, deportations and tax cuts would have no near-term impact on the US economy, but the Fed would begin estimating the impact of such policies on its goals of stable inflation and maximum employment.

The Fed cut interest rates by a quarter of a percentage point on Thursday.