Lebanese Pound Hits Record Low of More than 24,000 per US Dollar

Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
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Lebanese Pound Hits Record Low of More than 24,000 per US Dollar

Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)

Lebanon's currency slid to a new low against the US dollar on Thursday amid government paralysis as the country's financial meltdown deepens.

Several Beirut currency exchangers said the Lebanese pound was trading at around 24,200 per dollar, exceeding an all-time low of about 24,000 reached in July, Reuters reported.

The currency has now lost more than 93% of its value since summer 2019, when it began to split from the rate of 1,500 pounds per dollar at which it had been pegged since 1997.

Lebanon is in the throes of an economic meltdown that the World Bank has called one of the worst depressions of modern history.

The crisis is widely blamed on decades of corruption and mismanagement by political elites.

Lebanon formed a new government in September headed by veteran politician Najib Mikati with the aim of negotiating an International Monetary Fund program seen as key to unlocking international aid to stem the crisis.

However, it has not met in more than 40 days - an absence initiated by a push by Iran-backed Hezbollah and its allies to remove the judge investigating the August 2020 Beirut port explosion that killed more than 215 people and caused billions of dollars in damage.



LG Chem, China's Huayou to Make Battery Materials in Indonesia, Morocco

LG Chem, China's Huayou to Make Battery Materials in Indonesia, Morocco
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LG Chem, China's Huayou to Make Battery Materials in Indonesia, Morocco

LG Chem, China's Huayou to Make Battery Materials in Indonesia, Morocco

South Korea's LG Chem Ltd has entered a partnership with China's Huayou Group's subsidiary Youshan, it said on Sunday, to build a joint electric vehicle (EV) battery material plant in Morocco to diversify its portfolio.

Huayou has joined the growing number of Chinese electric vehicle and battery companies seeking to expand overseas to get closer to their foreign clients and benefit from local incentives.

In a separate statement, Huayou's listed unit Zhejiang Huayou Cobalt Co said it intended to build plants with LG Chem in Indonesia and Morocco under a strategic partnership to promote international growth, Reuters reported.

The Morocco plant, set to start production in 2026, aims to produce 50,000 tonnes of lithium-phosphate-iron (LFP) cathode materials annually, enough to be installed in 500,000 entry-class EVs, the South Korean chemical maker said in a statement.

LG Chem, known for manufacturing more expensive nickel-cobalt-manganese (NCM) cathodes, is entering the LFP cathode business to meet growing demand for cheaper LFP batteries as the auto industry seeks to produce more affordable EVs, whose most expensive components are the batteries.

LG Chem said LFP cathodes produced at the Morocco plant will be supplied to the North American market and could be eligible to receive subsidies from the US Inflation Reduction Act (IRA) as Morocco is a free-trade partner with the United States.

The IRA is designed to wean the United States off the Chinese supply chain for EVs.

It requires at least 40% of the value of critical minerals used in an auto battery to be sourced from the United States or a free trade partner to qualify for a $3,750 tax credit per vehicle. South Korea has a free-trade agreement with the United States.

LG Chem and Youshan would need to adjust their respective equity share in compliance with the US Treasury Department's guideline of a "foreign entity of concern," a provision aimed at China, LG Chem said in the statement.

The US Treasury Department has not yet provided a precise definition of "foreign entity of concern" and how it would be applied.

LG Chem also announced an additional investment plan with Huayou Cobalt to build a lithium conversion plant in Morocco, with the aim of starting mass production by 2025 with an annual capacity of 52,000 tonnes of lithium.

In addition, LG Chem said it plans to build two other facilities in Indonesia - a precursor plant with an annual production capacity of 50,000 tonnes and a plant to extract mixed hydroxide from nickel ore for precursor production.

The size of LG Chem's investments for its four facilities with Huayou Group has not been finalised.


Oil Climbs with Tight Supply Back in Focus

FILE PHOTO: Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, US, February 10, 2019. REUTERS/Nick Oxford/File Photo
FILE PHOTO: Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, US, February 10, 2019. REUTERS/Nick Oxford/File Photo
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Oil Climbs with Tight Supply Back in Focus

FILE PHOTO: Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, US, February 10, 2019. REUTERS/Nick Oxford/File Photo
FILE PHOTO: Drilling rigs operate in the Permian Basin oil and natural gas production area in Lea County, New Mexico, US, February 10, 2019. REUTERS/Nick Oxford/File Photo

Oil prices rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.

Brent crude futures climbed 32 cents, or 0.3%, to $93.59 a barrel by 0434 GMT after settling 3 cents lower on Friday.

US West Texas Intermediate crude futures extended gains for a second session, trading at $90.27 a barrel, up 24 cents, or 0.2%.

"Crude oil prices have started the week on the front foot, as the market continues to digest Russia's temporary ban on diesel and gasoline exports, into an already tight market, offset with the Fed's hawkish message that rates will stay higher for longer," IG Markets analyst Tony Sycamore said.

Both contracts fell last week, snapping a three-week winning streak, after a hawkish Federal Reserve stance rattled global financial sectors and raised oil demand concerns, Reuters reported.

Prices had rallied more than 10% in the previous three weeks on forecasts of a wide crude supply deficit in the fourth quarter after Saudi Arabia and Russia extended additional supply cuts to the end of the year.

Last week, Moscow temporarily banned gasoline and diesel exports to most countries in order to stabilize the domestic market, fanning concerns of low products supply especially for heating oil as the Northern Hemisphere heads into winter.

"The Russian fuel export ban news appears to be priced in for the time being but the undercurrent of global oil supply tightness runs deep, with an intense focus on diesel shortages and fears over unanticipated LNG supply disruptions likely to persist, especially in the European markets," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

In the United States, the number of operating oil rigs fell by eight to 507 last week, their lowest since February 2022, despite higher prices, a weekly report from Baker Hughes showed on Friday.

Expectations of better economic data this week from China, the world's largest crude importer, also lifted sentiment. However, analysts flagged that oil prices face technical resistance at the November 2022 highs that were hit last week.

China's manufacturing sector is expected to return to expansion mode in September, with the purchasing manufacturing index forecast to rise above 50 for the first time since March, Goldman Sachs analysts said.

In a positive sign, China's oil demand increased 0.3 million barrels per day (bpd) to 16.3 million bpd last week, partly due to a gradual recovery in jet fuel demand for international flights, they added.


Saudi Arabia Stresses Importance of Cooperation with OPEC+

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah. SPA
Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah. SPA
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Saudi Arabia Stresses Importance of Cooperation with OPEC+

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah. SPA
Saudi Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah. SPA

Saudi Arabia stressed the importance of collective cooperation with OPEC+ for the stability of global oil markets, the Kingdom's Foreign Minister said on Saturday in his speech to the United Nations General Assembly.

"The Kingdom is keen on maintaining the stability, reliability, sustainability and security of global oil markets, and meet the needs of consumers to ensure a healthy global economy that benefits producers and consumers,” said Saudi Minister of Foreign Affairs Prince Faisal bin Farhan.

He added that "Saudi Arabia always underscores the importance of collective cooperation with OPEC+'' to stabilize the global oil markets and enhance their reliability, sustainability and security.

The OPEC+ policy of closely monitoring the markets and adopting a precautionary approach has contributed, he said, to the stability and balance of the oil markets, as was evident in the stability witnessed by the oil markets in 2022, compared to other energy markets, such as natural gas and coal markets.

 

 

 


Oman Refinery Exports First Shipment of High-quality Diesel

Duqm Refinery Project (from the OQ Group website)
Duqm Refinery Project (from the OQ Group website)
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Oman Refinery Exports First Shipment of High-quality Diesel

Duqm Refinery Project (from the OQ Group website)
Duqm Refinery Project (from the OQ Group website)

Oman's Duqm Refinery successfully exported its first shipment of high-quality diesel as per international specifications.

This coincides with the company getting closer to achieving commercial operation, with trial operations continuing to progress, exceeding 81 percent, while the percentage of construction work has exceeded more than 99 percent, Oman's state news agency reported.

The trial operations included testing all supply chains at the Duqm Refinery, including crude oil storage facilities at the Ras Markaz and an 80-kilometre-long crude oil transport pipeline.

In recent months, the Ras Markaz crude oil tanks received more than three million barrels of Omani and Kuwaiti crude oil, which were later pumped from Ras Markaz to the refinery complex in Duqm via the oil transportation pipeline.

The trial operations also included the export of the first shipments of naphtha and fuel oil via product storage and export dock at Duqm Port.

The Duqm Refinery Project is a joint project between the OQ Group and Kuwait Petroleum International Company and is located in the heart of the Special Economic Zone in Duqm.

The project includes three main packages capable of producing diesel, jet fuel, naphtha, liquefied petroleum gas, sulfur, and petroleum coal.

The Duqm Refinery has a capacity of 230,000 barrels per day and is capable of dealing with various types of crude oil, including Omani and Kuwaiti crude.


Five States, Including Saudi Arabia, Launch UN Group of Friends for Digital Cooperation

The initiative aims to lead global support and sustainable growth for the digital economy. SPA
The initiative aims to lead global support and sustainable growth for the digital economy. SPA
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Five States, Including Saudi Arabia, Launch UN Group of Friends for Digital Cooperation

The initiative aims to lead global support and sustainable growth for the digital economy. SPA
The initiative aims to lead global support and sustainable growth for the digital economy. SPA

Five member states of the Digital Cooperation Organization (DCO) including Saudi Arabia, Bahrain, Cyprus, Pakistan, and Rwanda have launched the “United Nations Group of Friends for Digital Cooperation” initiative at the United Nations headquarters in New York.

The event on Saturday was held on the sidelines of the 78th UN General Assembly meetings.

The initiative aims to lead global support and sustainable growth for the digital economy, enabling prosperity and social inclusivity for all on a global scale.

The group emphasized that digital technologies have transformed societies over the past two decades, connecting billions of individuals, governments, and businesses. It underscored the pressing need for digital empowerment makers to achieve the UN Sustainable Development Goals (SDGs). However, the group says, the digital divide still exists and hinders economic growth and sustainable development.

The “Group of Friends for Digital Cooperation” will support collective efforts aimed at enhancing the digital economy and will work on launching initiatives, projects, and events that can stimulate the development of the global digital economy.

The DCO, headquartered in Riyadh, supports the initiative of the group and the launch of its member states.

Secretary-General of the DCO Deemah Al-Yahya emphasized that the Group was established as an initiative from the DCO to facilitate international, multi-stakeholder action and cooperation in the realignment of the 2030 UN SDGs.


Arab Tourism Organization President, Omani Heritage Minister Discuss Cooperation

This picture shows a partial view of the area of Haramil in the Omani capital Muscat on September 18, 2020. (AFP)
This picture shows a partial view of the area of Haramil in the Omani capital Muscat on September 18, 2020. (AFP)
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Arab Tourism Organization President, Omani Heritage Minister Discuss Cooperation

This picture shows a partial view of the area of Haramil in the Omani capital Muscat on September 18, 2020. (AFP)
This picture shows a partial view of the area of Haramil in the Omani capital Muscat on September 18, 2020. (AFP)

Omani Minister of Heritage and Tourism Salem bin Mohammed Al-Mahrouqi received President of the Arab Tourism Organization (ATO) Bandar bin Fahd Al-Fahid and the accompanying delegation in Muscat, reported the Saudi Press Agency on Friday.

The officials discussed cooperation between the ATO and the Omani ministry.

The ATO provided an explanation of the existing and future cooperation aspects with the ministry on developing Oman’s Arab investments through the organization’s Itqan Tourism Development.

Cooperation aspects between the two sides also include the implementation of a number of events and programs.

The minister gave a presentation on Omani Sur city’s nomination to be named Arab Tourism Capital for 2024, which was submitted to the organization’s general secretariat.


EU Does Not Want to Decouple from China but Must Protect Itself, Says EU Trade Chief

 In this photograph taken on August 25, 2023, Valdis Dombrovskis, Executive Vice President & European Commissioner for Trade of The European Union, addresses the gathering on the first day of the three-day B20 Summit in New Delhi. (AFP)
In this photograph taken on August 25, 2023, Valdis Dombrovskis, Executive Vice President & European Commissioner for Trade of The European Union, addresses the gathering on the first day of the three-day B20 Summit in New Delhi. (AFP)
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EU Does Not Want to Decouple from China but Must Protect Itself, Says EU Trade Chief

 In this photograph taken on August 25, 2023, Valdis Dombrovskis, Executive Vice President & European Commissioner for Trade of The European Union, addresses the gathering on the first day of the three-day B20 Summit in New Delhi. (AFP)
In this photograph taken on August 25, 2023, Valdis Dombrovskis, Executive Vice President & European Commissioner for Trade of The European Union, addresses the gathering on the first day of the three-day B20 Summit in New Delhi. (AFP)

The European Union has no intention to decouple from China but needs to protect itself when its openness is abused, the bloc's Executive Vice President Valdis Dombrovskis said, as both sides look to cool rising tensions over geopolitics and trade.

Relations have become tense due to Beijing's ties with Moscow after Russian forces swept into Ukraine, and the EU's push to rely less on the world's second-largest economy.

The bloc posted record bilateral trade with China last year, but it is "very unbalanced", Dombrovskis said on Saturday in a speech at the annual Bund Summit conference in Shanghai, citing a trade deficit of almost 400 billion euros ($426.08 billion).

Dombrovskis, who is also the bloc's trade commissioner, is on a four-day visit to China seeking more balanced economic ties with the EU.

He arrived just over a week after the European Commission said it would investigate whether to impose punitive tariffs to protect European producers from cheaper Chinese electric vehicle imports it says are benefiting from state subsidies.

The trip is designed to renew dialogue with China after the COVID-19 pandemic with both sides looking to cool tensions over issues ranging from foreign investment, trade and geopolitics as well as Western criticism of Beijing's closer ties with Moscow following Russia's 2022 invasion of Ukraine.

"Creating an open market among its members was one of the EU's founding principles. We are also committed to free and fair global trade. And ‘fair’ is the key word here," he said.

Citing the bloc's trade deficit as an example, he added "the EU also needs to protect itself in situations when its openness is abused."

"This means minimizing our strategic dependencies for a select number of strategic products," but the EU's economic strategy was focused on de-risking, not decoupling, he said.

"The EU has no intention of decoupling from China."

Litmus test

The EU blames its 400-billion-euro trade deficit partly on Chinese restrictions on European companies.

A "thousand" barriers to market access have propelled the trade deficit to its "highest in the history of mankind", EU Ambassador to China Jorge Toledo lamented at a forum in Beijing on Thursday.

The economic and trade dialogue on Monday between Dombrovskis and Chinese Vice Premier He Lifeng, the 10th such discussion since 2008, will be a "litmus test" for the two sides, Chinese nationalist tabloid Global Times said on Thursday.

Dombrovskis told Reuters on the sidelines of the summit that "substantial technical work" preceded the EU probe into Chinese-made EVs and that they would look to engage both Chinese authorities and industry in the investigation.

"We are open for competition including for competition in the electric vehicles sector but competition has to be fair," he said. China has blasted the probe as protectionist and the Chinese Chamber of Commerce to the EU said the sector's advantage was not due to subsidies.

Asked if the EU was looking at other sectors, he added: "there are several areas where we are looking at possible trade irritants and barriers, and actually this is one of the topics I'm going to raise also with my Chinese counterparts... On one hand we must discuss how we advance our relationship, but also we need to be able to discuss if there are some issues or trade barriers to be addressed."

He declined to provide further details.

In his speech, Dombrovskis also said he believed that China faced a "challenging process of macroeconomic adjustment" but stressed that Beijing must broaden access for foreign businesses and maintain a stable business environment for fair trade relations.

He also urged China to take a stance against Russia's "tactic of weaponizing food" and use its influence in reviving the Black Sea Grain Initiative which expired in July after Moscow quit.


Oman GDP Shrinks by 9.5% in Second Quarter

An Omani shopping at the souq in the city of Nizwa, about 160 kilometers southwest of the capital Muscat. (AFP)
An Omani shopping at the souq in the city of Nizwa, about 160 kilometers southwest of the capital Muscat. (AFP)
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Oman GDP Shrinks by 9.5% in Second Quarter

An Omani shopping at the souq in the city of Nizwa, about 160 kilometers southwest of the capital Muscat. (AFP)
An Omani shopping at the souq in the city of Nizwa, about 160 kilometers southwest of the capital Muscat. (AFP)

Oman's gross domestic product (GDP) shrank by 9.5% in the second quarter to around 10.1 billion Omani rials ($26.24 billion) by current prices, the state news agency reported on Saturday.

Omani GDP reached around 11.1 billion Omani rials in the same quarter of last year, the agency added.


Saudi Arabia Elected ASOSAI President for 2027-2030

President of the General Court of Audit Dr. Hussam bin Abdulmohsen Al-Anqari. (SPA)
President of the General Court of Audit Dr. Hussam bin Abdulmohsen Al-Anqari. (SPA)
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Saudi Arabia Elected ASOSAI President for 2027-2030

President of the General Court of Audit Dr. Hussam bin Abdulmohsen Al-Anqari. (SPA)
President of the General Court of Audit Dr. Hussam bin Abdulmohsen Al-Anqari. (SPA)

Saudi Arabia, represented by the General Court of Audit, was elected president of the Asian Organization of Supreme Audit Institutions (ASOSAI) for the period 2027 to 2030.

The Kingdom’s nomination was announced following a vote of the ASOSAI Governing Board during its 59th meeting in Busan city, South Korea from September 19-22.

On the occasion, President of the General Court of Audit Dr. Hussam bin Abdulmohsen Al-Anqari congratulated the Saudi leadership, saying the election was recognition of the Kingdom’s achievements and leading roles in the fields of auditing drawing public financial monitoring policies.

Established in 1978, ASOSAI is one of the Regional Groups of the International Organization of Supreme Audit Institutions. It boasts 48 charter members, members, and associate members.


Saudi Economy Joins Trillion Dollar Club

AAWSAT AR
AAWSAT AR
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Saudi Economy Joins Trillion Dollar Club

AAWSAT AR
AAWSAT AR

The Kingdom of Saudi Arabia has achieved remarkable successes that have immeasurably contributed to improving major economic indicators and upgrading the ranking of the national economy by global institutions, including the International Monetary Fund, which said the Saudi economy was the fastest growing among the Group of Twenty (G20) member states in 2022.
A report by the Federation of Saudi Chambers, issued on the occasion of the Kingdom’s 93rd National Day, stated that the Kingdom’s gross domestic product (GDP) reached SAR 4.155 trillion, exceeding the ceiling of USD 1 trillion for the first time, thus joining the trillion-dollar club and achieving the national goal well ahead of the target date of 2025, said SPA on Friday.
According to the report, the Saudi economy achieved a growth rate of 8.7% -- the highest among the G20 member states -- spurred mainly by its production capabilities, which is reflected in the increase in the self-sufficiency rate of the Saudi economy to 81.2%, and the increase in the investment rate (the invested percentage of output) to 27.3%. Such performance led to increased confidence in the national economy and the Saudi riyal as a store of value by increasing the ratio of local currency deposits to total savings deposits from 66.5% in 2021 to 67.7% in 2022.
The Kingdom was ranked 17th in the global economy out of the world’s 64 most competitive countries. According to the Global Competitiveness Report of the International Center for Management Development (IMD), the Kingdom has ranked second in the world in terms of the growth rate of international tourists, and it ranked 51st in the Global Innovation Index. The rate of integration of the Saudi economy into the global economy increased by 63.1%.
The report indicated that the Saudi private sector will continue its strong role and performance thanks to its status as an effective partner in the comprehensive development process and in achieving the goals of the ambitious Vision 2030. The private sector’s contributions to GDP increased to SAR 1.634 trillion, or 41% of GDP, with a growth rate of 5.3%, according to the report.
The report said non-governmental investments increased to SAR 907.5 billion, with a growth rate of 32.6%, to an 87.3% contribution to the total fixed investments. The number of workers in the private sector has increased from 8.084 million in 2021 to 9.422 million in 2022, with a growth rate of 16.6%, according to the report.
Under the localization endeavor of the labor force, the number of Saudis working in the private sector has increased from 1.910 million in 2021 to 2.195 million in 2022, with a growth rate of 14.9%, which was reflected in an increase in the percentage of Saudi workers in the private sector to 58.2%.
The report highlighted the success of the Kingdom’s policies regarding diversifying the economic base and supporting Saudi exports to global markets. Exports of goods and services increased by 54.4%, and the export capacity of the Saudi economy increased from 33% to 39.3% of the GDP. The value of exports of goods and services rose to 171.9 % of the value of imports of goods and services in 2022, up from 134.5 percent the previous year.
The value of non-oil exports reached SAR 315.7 billion, with a growth rate of 13.7%, accounting for 20.5% of commodity exports, and reaching 178 countries around the world.
The report expected the Saudi economy and the private sector to continue their strong performance, citing various economic indicators, government support packages, and huge projects being implemented in various regions across the Kingdom.