Gulf Countries Look to Form an Integrated Industrial System

Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
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Gulf Countries Look to Form an Integrated Industrial System

Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)
Bahrain’s Minister of Industry, Commerce and Tourism Zayed Al-Zayani (Asharq Al-Awsat)

Bahrain’s Minister of Industry, Commerce, and Tourism Zayed Al-Zayani revealed that Gulf countries were heading towards establishing an integrated industry system by creating a Gulf strategy for the industry.

Al-Zayani said that Gulf countries are working to depend on each other in industries instead of importing raw materials or semi-manufactured materials from abroad.

He noted that this trend will have great positives, in terms of creating jobs, diversifying the base of the economy, and expanding the export value of countries.

“We in the Gulf are heading for a customs and economic union by 2025. The presence of an integrated system for the industry and a unified strategy helps us to talk with global blocs as a bloc,” Al-Zayani told Asharq Al-Awsat.

The minister pointed out that Gulf countries are collectively the 12th economy among the countries of the world.

“This enables us to grow our economy, and to be in the top ten, which sheds more light on the region,” said Al-Zayani.

Speaking about the Gulf trade sector, Al- Zayani said: “We believe that we can enhance and strengthen it by standardizing specifications as much as possible, so that factories produce one product, and they can sell it in all Gulf countries.”

“The flow of goods between Gulf Cooperation Council (GCC) states will be facilitated by 2025, with the activation of the customs union,” revealed Al-Zayani.

“From time to time, we see some obstacles to the flow of materials and goods between borders, and we aspire to find solutions for that,” he added.

“GCC countries are looking to increase free trade agreements.”

“Recently we worked with the United Kingdom, which is an old strategic partner, and we have a large trade volume with them in goods, amounting to about 30 billion pounds ($40.4 billion), and 19 billion pounds in services ($25.6 billion),” noted Al-Zayani.

Stressing that Gulf countries are a major trading partner for the UK, Al-Zayani said that there is hope to establish trade agreements on the collective level, which is the GCC, and not with each member state on its own.

The Bahraini minister talked about how the tourism sector, which aimed to account for 7% of GDP at the GCC between 2015 and 2019, now is aiming at 11.4%.

“The features of the strategy include several factors, but in the end it is aimed at one goal, which is the focus on the contribution of the tourism sector to the domestic product,” said Al-Zayani.



Oil Heads for Weekly Gains on Anxiety over Intensifying Ukraine War

Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
TT

Oil Heads for Weekly Gains on Anxiety over Intensifying Ukraine War

Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo
Pump jacks operate in front of a drilling rig in an oilfield in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo

Oil prices extended gains on Friday, heading for a weekly uptick of more than 4%, as the Ukraine war intensified with Russian President Vladimir Putin warning of a global conflict.
Brent crude futures gained 10 cents, or 0.1%, to $74.33 a barrel by 0448 GMT. US West Texas Intermediate crude futures rose 13 cents, or 0.2%, to $70.23 per barrel.
Both contracts jumped 2% on Thursday and are set to cap gains of more than 4% this week, the strongest weekly performance since late September, as Moscow stepped up its offensive against Ukraine after the US and Britain allowed Kyiv to strike Russia with their weapons.
Putin said on Thursday it had fired a ballistic missile at Ukraine and warned of a global conflict, raising the risk of oil supply disruption from one of the world's largest producers.
Russia this month said it produced about 9 million barrels of oil a day, even with output declines following import bans tied to its invasion of Ukraine and supply curbs by producer group OPEC+.
Ukraine has used drones to target Russian oil infrastructure, including in June, when it used long-range attack drones to strike four Russian refineries.
Swelling US crude and gasoline stocks and forecasts of surplus supply next year limited price gains.
"Our base case is that Brent stays in a $70-85 range, with high spare capacity limiting price upside, and the price elasticity of OPEC and shale supply limiting price downside," Goldman Sachs analysts led by Daan Struyven said in a note.
"However, the risks of breaking out are growing," they said, adding that Brent could rise to about $85 a barrel in the first half of 2025 if Iran supply drops by 1 million barrels per day on tighter sanctions enforcement under US President-elect Donald Trump's administration.
Some analysts forecast another jump in US oil inventories in next week's data.
"We will be expecting a rebound in production as well as US refinery activity next week that will carry negative implications for both crude and key products," said Jim Ritterbusch of Ritterbusch and Associates in Florida.
The world's top crude importer, China, meanwhile on Thursday announced policy measures to boost trade, including support for energy product imports, amid worries over Trump's threats to impose tariffs.