عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Entities Coordinate to Facilitate Issuing 'Entrepreneurship' Licenses in the Kingdom

Saudi Minister of Investment Khalid al-Falih speaking at a panel during GEC (Asharq AL-Awsat)
Saudi Minister of Investment Khalid al-Falih speaking at a panel during GEC (Asharq AL-Awsat)
TT
TT

Saudi Entities Coordinate to Facilitate Issuing 'Entrepreneurship' Licenses in the Kingdom

Saudi Minister of Investment Khalid al-Falih speaking at a panel during GEC (Asharq AL-Awsat)
Saudi Minister of Investment Khalid al-Falih speaking at a panel during GEC (Asharq AL-Awsat)

Saudi Minister of Investment Khalid al-Falih announced that visiting Saudi Arabia in 2030 will be an opportunity for work, stability, investment, and future building.

Falih indicated that the economic development in the Kingdom would lead to the development of the entire region, noting that Ministries of Investment and Commerce are collaborating to create the appropriate environment and facilitate investment licensing procedures that support the entrepreneurship sector.

Supporting the Sector

The minister stressed that Saudi Arabia is interested in investing in entrepreneurship and its activities, providing all means and incentives to support it.

Falih was speaking at a panel as part of the Global Entrepreneurship Congress (GEC) organized by the Small and Medium Enterprises General Authority (Monsha'at) in cooperation with the Global Entrepreneurship Network (GEN).

He said that Saudi Arabia has all the main elements of investments and is considered a fertile land for investors and companies at the international level.

According to the Minister, Crown Prince Mohammad bin Salman led the Kingdom by supporting and diversifying the economy, and oil will not be the only economic tributary.

Economic diversity will not be limited to large companies, said Falih, explaining that entrepreneurs will create job opportunities that contribute to the economy.

E-health has become one of the government's priorities in the country, noted Falih.

The minister asserted that it is essential to encourage entrepreneurs to take bold decisions, noting that by 2030 there will be more young men and women in leadership positions.

AlUla Prospects

CEO of the Royal Commission for AlUla Governorate Amr al-Madani stated that the economy is the primary driver responsible for advancing entrepreneurship to achieve Vision 2030 led by the Crown Prince.

He explained that tourism is an important aspect of the local economy, pointing out that the Crown Prince set a clear goal for tourism to support the growth of the local economy.

AlUla is one of the most important tourist destinations in the Kingdom, asserted Madani, adding that economic growth in the governorate plays a vital role in entrepreneurship.

He pointed out that more job opportunities will be available in more significant markets, indicating that tourism in the Kingdom has improved in recent years.

Madani disclosed that the Commission and Monsha'at cooperate to support entrepreneurs in the governorate, including the business incubator and Vibes AlUla platform.

He expects the capital to grow by more than 40 percent, creating 30,000 jobs and doubling the number of companies, indicating that tourism represents 70 percent in AlUla, and other targeted industries represent 30 percent.

Madani called on entrepreneurs to participate in and benefit from investment opportunities in AlUla.

Entrepreneur Development

ACWA Power Chairman of the Board of Directors Mohammed Abunayyan said that Saudi youth achieved qualitative leaps in all fields, including the energy sector.

Saudi Arabia paid particular attention to Saudi youth and entrepreneurs by developing education and training, said Abunayyan.

He reviewed ACWA Power's growth since 2004, when it started with nine employees, announcing that it now has over 5,000 employees, with a capital of more than $60 billion.

Abunayyan added that entrepreneurs are the basis for economic growth in the Kingdom, calling them to support the economy and local development, stressing that many opportunities are available to young people.

Innovation Initiatives

The Ministry of Investment signed two memoranda of understanding (MoU) with Monsha'at and the Saudi Authority for Data and Artificial Intelligence (Sdaia) to further extend support to start-ups.

The MoU concluded with Monsha'at aims to align the national strategy for small and medium enterprises and the national investment strategy, along with initiatives and programs in the innovation and entrepreneurship sector.

The second memorandum with Sdaia also matches the strategies and objectives of the two entities to enable entrepreneurship and SMEs to develop the data and artificial intelligence sector in the Kingdom.

The agreement seeks to find attractive investments for local and foreign investors to achieve the ambitions, goals, and related strategies.

New companies

Six international companies received entrepreneurship licenses to operate in Saudi Arabia under the ministry's keenness to facilitate business for investors.

The MoUs and the licenses stem from the Ministry of Investment's plan to support innovators and entrepreneurs and facilitate their access to opportunities in the Kingdom.

They also seek to benefit from the facilities Saudi Arabia provides, including addressing challenges that may face the sector during its establishment, which contributes to achieving economic diversity and increasing investment opportunities in new and emerging sectors following Vision 2030.

Sector Financing

The Small and Medium Enterprises Bank announced the approved budget for financing amounting to about $3.20 billion, and the contribution of financing agencies to the financing gateway for 2022 has reached approximately $1.95 billion.

"Etkal" platform

The CEO of the Saudi Organization for Chartered and Professional Accountants (SOCPA), Ahmed al-Maghamis, and the CEO of THIQAH Company, Ayman al-Fallaj, inaugurated the new "Etkal" platform, which provides e-accounting services to beneficiaries and accounting and auditing services providers.

Etkal provides several electronic services that allow SMEs to employ licensed and accredited accountants. It also provides auditing services that offer a contractual outlet for companies with accredited auditing firms.

The authority explained that the platform creates a digital accounting environment that helps businesses grow through several registered and licensed service providers.

The platform will also increase employment offers in the private sector for Saudi accountants, raise localization, and organize the freelance accountant profession and services market.

The Etkal platform is under the supervision of SOCPA and will be developed and operated by Thiqah according to the highest standards of quality and efficiency.

Fourth Industrial Revolution

Meanwhile, the National Industrial Development and Logistics Program (NIDLP) signed two cooperation agreements with the Saudi Basic Industries Corporation (SABIC) and Aramco on the sidelines of the conference.

The agreements seek to contribute to local content development, raise industrial investment, and overcome financing obstacles.

It also aims to include Fourth Industrial Revolution technologies in energy, mining, industry, and logistics, in line with Vision 2030.

The agreement with Aramco set the establishment of a framework to facilitate cooperation and coordination between the parties regarding programs to develop the local entrepreneurship system and other initiatives related to supporting Saudi youth in the region.

It will also support entrepreneurs and investors to take advantage of business opportunities within the programs provided by the specialized centers.

It included facilitating joint work partnerships and achieving the desired results for both parties through cooperation in areas of common interest.

They will also exchange practical and scientific experiences and research ways of cooperation through joint projects or programs that contribute to developing the entrepreneurship environment in the Kingdom.

The agreement with SABIC included cooperation with Nusaned to invest in promising small and medium industrial projects and exchange studies and updated reports on the industrial market.

It will provide the necessary support and solutions to achieve investment opportunities and solve the Nusaned initiative's challenges.

Most Viewed

 
 
Business

Minister of Industry Heads Saudi Delegation to 52nd Meeting of Industrial Cooperation Committee

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef heads the Kingdom’s delegation at the 52nd meeting of the Gulf Cooperation Council's (GCC) Industrial Cooperation Committee in Doha, Qatar. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef heads the Kingdom’s delegation at the 52nd meeting of the Gulf Cooperation Council's (GCC) Industrial Cooperation Committee in Doha, Qatar. (SPA)
TT
TT

Minister of Industry Heads Saudi Delegation to 52nd Meeting of Industrial Cooperation Committee

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef heads the Kingdom’s delegation at the 52nd meeting of the Gulf Cooperation Council's (GCC) Industrial Cooperation Committee in Doha, Qatar. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef heads the Kingdom’s delegation at the 52nd meeting of the Gulf Cooperation Council's (GCC) Industrial Cooperation Committee in Doha, Qatar. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef headed the Kingdom’s delegation at the 52nd meeting of the Gulf Cooperation Council's (GCC) Industrial Cooperation Committee in Doha, Qatar.

The meeting discussed important industrial matters shared among the GCC nations, reported the Saudi Press Agency on Wednesday.

Participants assessed progress on creating a unified definition and standards for GCC-made products. The meeting stressed the importance of both supporting the GCC's industrial sector and coordinating efforts among member nations to grow their national industries.

The committee explored initiatives proposed by Saudi Arabia to boost the GCC industrial sector, including the GCC Industrial Excellence Award. The initiative aims to boost economic growth and tackle obstacles in the sector.

Business

Abdulaziz bin Salman: Countries Lagging Behind Should Follow Our Approach

The Minister of Energy addressing the audience in a panel discussion on the sidelines of the Golden Jubilee celebrations of the Islamic Development Bank Group. (Asharq Al-Awsat)
The Minister of Energy addressing the audience in a panel discussion on the sidelines of the Golden Jubilee celebrations of the Islamic Development Bank Group. (Asharq Al-Awsat)
TT
TT

Abdulaziz bin Salman: Countries Lagging Behind Should Follow Our Approach

The Minister of Energy addressing the audience in a panel discussion on the sidelines of the Golden Jubilee celebrations of the Islamic Development Bank Group. (Asharq Al-Awsat)
The Minister of Energy addressing the audience in a panel discussion on the sidelines of the Golden Jubilee celebrations of the Islamic Development Bank Group. (Asharq Al-Awsat)

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz said that the Kingdom ranks second in terms of the lowest intensity of carbon dioxide emissions, and the same place for methane emissions.
“Our issue is not recognizing the existence of the problem of climate change, but rather how to deal with it in a fair and direct manner, taking into account the differences in national circumstances in countries”, said the Minister.
His remarks came Tuesday during a panel discussion entitled, Security, the Future of Energy and Sustainable Development, on the sidelines of the golden jubilee celebrations of the Islamic Development Bank Group.
He added that countries have unanimously agreed to the Paris Climate Agreement, “but the real problem does not lie in the text of the agreement, but rather in the strange interpretation of its content.”
The discussion on climate change must be realistic and logical to enable all parties to cooperate and confront this global issue, Prince Abdulaziz underlined, saying that energy security cannot be sacrificed in favor of climate change, and vice versa, indicating that governments have a moral responsibility to provide the elements of growth for future generations.
The minister stressed that the issue of inequality was the reason for the faltering of climate change negotiations, referring to the Sharm El-Sheikh and Dubai summits, which he said contributed to mending this gap and dealing with climate change with realism.
He pointed to some hypocrisy in the discourse regarding the distribution of responsibilities towards climate change, noting that it is not possible to ask countries such as Indonesia, which suffers from energy scarcity, or Nigeria, Ghana, or Madagascar, to switch to renewable energy, at a time when they are facing difficulties in obtaining electricity.
During his speech, the Saudi minister referred to a recent statistic, which gives OPEC countries a historical responsibility of 4 percent for carbon dioxide emissions, while the United States bears 24 percent, China approximately 22 percent, and the European Union 16 percent.
“So why should we receive lectures about reducing our emissions,” he asked, noting that countries “lagging behind should follow our approach.”

 

 

Business

Riyadh’s Population Rise to 15 Million Helps Shift City towards Independent Economy

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
TT
TT

Riyadh’s Population Rise to 15 Million Helps Shift City towards Independent Economy

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

Real estate experts said that Riyadh’s goal to increase its population by about 15 million people in 2030 will contribute to its transformation into a city with an independent and sustainable economy.

They added that the Riyadh Season, as well as major projects and government plans will accelerate the realization of the Saudi capital’s objectives by 2030.

According to the official announcement of the Royal Commission for the City of Riyadh, the region aims to reach 15 million people by 2030 thanks to attractive factors and capabilities that further strengthen the Kingdom's efforts to diversify its economic resources.

In remarks to Asharq Al-Awsat, writer and real estate expert Sami Abdulaziz said the latest statistics indicate that the capital is currently home to about 7.5 million people, adding that the average occupancy of residential units reaches seven individuals, thus the number of units required by 2030 is around 350,000.

The Ministry of Housing alone will provide about 300,000 housing units until the target date, he remarked, noting that developers, contracting companies, and investors in the sector will secure the remaining amount, which will contribute to increasing the availability real estate units, therefore leading to price stability.

Abdulaziz pointed to the importance of studying the rest of the market factors, including the number of units required during the next five years, their locations, the construction costs, the public facilities and services needed, the size of the private sector’s participation and others.

He also expected the Riyadh Season and the city’s major projects to become a major contributor to achieving the capital’s goal of reaching 15 million residents in 2030.

Real estate expert Eng. Ahmed Al-Faqih highlighted Riyadh’s status as one of the most developed cities in the Middle East, in addition to the great progress the city is witnessing simultaneously with Vision 2030.

Achieving the target of 15 million residents would transform Riyadh into a city with an independent economy, he added.

Business

Saudi Arabia’s Review of Vision 2030 Proves its Awareness of Global Changes

Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Dr. Jihad Azour. (Photo: Daniel Acker/Bloomberg)
Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Dr. Jihad Azour. (Photo: Daniel Acker/Bloomberg)
TT
TT

Saudi Arabia’s Review of Vision 2030 Proves its Awareness of Global Changes

Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Dr. Jihad Azour. (Photo: Daniel Acker/Bloomberg)
Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Dr. Jihad Azour. (Photo: Daniel Acker/Bloomberg)

Saudi Finance Minister Mohammed Al-Jadaan said the Kingdom will adapt to the current economic and geopolitical challenges and will work to review Vision 2030 to transform its economy based on the current circumstances by reducing the size of some projects and accelerating the pace of others.

Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) Dr. Jihad Azour praised this direction, saying Saudi Arabia was aware of the rapid global changes and must keep pace with them by reviewing its vision.

He underlined the importance of structural reforms that constitute the largest part of the economic transformation process, pointing out that a number of required reforms would facilitate the integration of the entire Gulf Cooperation Council countries.

The annual report of Vision 2030, issued on the anniversary of its launch on April 25, 2016, showed that 87 percent of the goals of this ambitious plan were completed, or on the right track. However, the growing challenges necessitate some adjustments, as announced by Al-Jadaan during the special meeting of the World Economic Forum, which was held in Riyadh.

Azour participated on Tuesday in a panel discussion, “Expectations for the Economies of the Middle East and North Africa... Policies to Overcome Challenges and Harness Opportunities,” organized by the Think Research and Advisory, which is affiliated with the Saudi Research and Media Group.

He said the transformation journey in Saudi Arabia went through three stages: formulating the vision, ensuring the success of implementation, and adapting the strategy to changes and priorities.

“This is what is happening today. Saudi Arabia is aware that there are global changes taking place rapidly, and it must keep pace with them by amending its vision... In addition, Saudi Arabia is focusing on addressing weak points, identifying successful elements, and ensuring the ability to withstand in the face of economic shocks... Moving quickly is an element of success,” the IMF regional director stated.

The IMF had reduced its expectations for the growth of the Saudi economy to 2.6 percent this year from its previous forecast in January of 2.7 percent. In return, it raised its expectations for growth in 2025 to 6 percent, compared to 5.5 percent in the January forecast.

Azour noted that over the past years, the Saudi economy has become more internationally connected, as its membership in the G20 has allowed it to come under the spotlight, and for reforms to be accelerated to make the economy more productive and competitive, through diversification of revenues.

“There is no doubt that there are a number of required reforms that would encourage the entire Gulf Cooperation Council countries to better integrate... It is possible to accelerate this integration by thinking again about the single market, so that the entire GCC countries become more competitive, in a world where competition is now more difficult due to geopolitical developments,” according to Azour.

He went on to say that structural reforms enabled the GCC countries to manage shocks effectively, which demonstrated their strength during the Covid-19 pandemic.

On a different note, Azour said foreign direct investment has witnessed a decline in the past decade in the region, including within the GCC, adding that negative risks affected countries with high levels of debt.

“It is important for countries in the Middle East and North Africa region to reduce their debts to alleviate the effects of inflation,” he underlined.

Azour explained: “The shipping crisis through the Red Sea constitutes a shock, but if measured, the cost of shipping across the MENA region is still relatively low... What is more difficult to measure is the possibility of predicting what will happen to the Suez Canal, through which a third of the world’s shopping containers pass, which reflects its importance at the global level.”

Business

Oil Falls for a Third Day as Middle East Ceasefire Hopes Rise

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
TT
TT

Oil Falls for a Third Day as Middle East Ceasefire Hopes Rise

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)

Oil prices fell for a third day on Wednesday amid increasing hopes of a ceasefire agreement in the Middle East and on rising crude inventories and production in the US, the world's biggest oil consumer.

Both oil price benchmarks were down more than 1% at 0650 GMT. Brent crude futures for July were 88 cents lower at $85.45 a barrel, while US West Texas Intermediate crude futures for June were 90 cents lower at $81.03 per barrel.

Expectations that a ceasefire agreement between Israel and Hamas could be in sight, following a renewed push led by Egypt to revive stalled negotiations between the two, pushed oil prices lower.

"The potential for a ceasefire agreement between Israel and Hamas has eased concerns of an escalation of the conflict and any possible disruptions to supply," ANZ analysts said in a note on Wednesday.

However, Israeli Prime Minister Benjamin Netanyahu vowed on Tuesday to go ahead with a long-promised assault on the southern Gaza city of Rafah, whatever the response by Hamas to the latest proposals for a halt to the fighting and a return of Israeli hostages.

Also pressuring prices were swelling US crude oil inventories and rising crude supply.

US crude oil inventories rose 4.906 million barrels in the week ended April 26, according to market sources citing American Petroleum Institute figures, which defied expectations for a decline of 1.1 million barrels.

Traders will be waiting to see if official data from the Energy Information Administration (EIA) due at 1430 GMT confirms the build.

US production rose to 13.15 million barrels per day (bpd) in February from 12.58 million bpd in January, its biggest monthly increase in about 3-1/2 years, the EIA said on Tuesday.

"Continued signs of inflation also raised concerns about demand for crude oil. This comes ahead of the US driving season, where demand for gasoline rises strongly," analysts at ANZ said.

Business

BlackRock to Launch PIF-backed Saudi Investment Platform

Larry Fink, Chairman and CEO of BlackRock, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 14, 2023. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
Larry Fink, Chairman and CEO of BlackRock, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 14, 2023. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
TT
TT

BlackRock to Launch PIF-backed Saudi Investment Platform

Larry Fink, Chairman and CEO of BlackRock, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 14, 2023. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
Larry Fink, Chairman and CEO of BlackRock, speaks during an interview with CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 14, 2023. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights

The world's largest asset manager BlackRock (BLK.N), said on Tuesday it plans to launch a new investment platform in Saudi Arabia, backed by up to $5 billion from Saudi sovereign wealth fund the Public Investment Fund (PIF).

BlackRock and PIF said they had signed a memorandum of understanding under which BlackRock would establish a Riyadh-based multi-asset investment platform.

The two parties said the platform would accelerate growth of Saudi Arabia's capital markets, with a Riyadh-based investment team looking to raise additional funds locally and overseas.

A BlackRock spokesperson said its platform would be focused on Saudi Arabia but would span investments across the Middle East and North Africa, including infrastructure and credit within private markets and equities in public markets.

BlackRock chairman and CEO Larry Fink said that Saudi Arabia had become an "increasingly attractive" destination for international investment.

PIF's deputy governor Yazeed A. Al-Humied said the agreement would help make the Saudi investment market more internationally diverse and dynamic.

Business

G7 Agree to Quit Coal in Power Generation by 2035

Smoke and steam billow from Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, operated by Polish utility PGE, in Rogowiec, Poland, November 22, 2023. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights
Smoke and steam billow from Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, operated by Polish utility PGE, in Rogowiec, Poland, November 22, 2023. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights
TT
TT

G7 Agree to Quit Coal in Power Generation by 2035

Smoke and steam billow from Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, operated by Polish utility PGE, in Rogowiec, Poland, November 22, 2023. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights
Smoke and steam billow from Belchatow Power Station, Europe's largest coal-fired power plant powered by lignite, operated by Polish utility PGE, in Rogowiec, Poland, November 22, 2023. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights

Energy ministers from the Group of Seven (G7) major democracies agreed on Tuesday to end the use of coal in power generation during the first half of the next decade, but gave leeway to Germany and Japan whose economies depend on the fuel.

The agreement is a further step in the direction indicated last year by the COP28 United Nations climate summit to reduce use of fossil fuels, of which coal is the most polluting.

"It is the first time that a path and a target has been set on coal," said minister Gilberto Pichetto Fratin, who chaired the two-day meeting in a former royal residence near Turin, Reuters reported.

However, the G7 communique also included an alternative goal of phasing out coal-fired power plants "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net-zero pathways".

Limiting temperature rises to 1.5 Celsius (2.7F) above pre-industrial levels, scientists have said, can prevent the most severe consequences of climate change.

The caveat, according to sources who requested anonymity, was included to grant room for manoeuvre to Germany and Japan.

In view of the impact of Russia's invasion on Ukraine on Europe's fuel security, it also offers flexibility in case of a new, unexpected conflict, Italy's energy minister told the closing news conference on Tuesday.

Support from many governments for strong climate action has faded as economic weakness has made them focus on the immediate cost and it remains to be seen how Germany and Japan will move to reduce the use of coal, which produces more than a quarter of their electricity.

Germany has written into its legislation a final target to shut coal plants by 2038, while the current government has expressed the will to phase out coal by 2030, and Japan has not set a date.

German Economy Ministry State Secretary Anja Hajduk told Reuters Tuesday's deal was an important achievement.

Business

Mosaic to Sell Stake in Saudi JV to Ma'aden for $1.5 Billion in Stock

One of the factories affiliated with the Saudi Ma’aden Company (File/AAWSAT)
One of the factories affiliated with the Saudi Ma’aden Company (File/AAWSAT)
TT
TT

Mosaic to Sell Stake in Saudi JV to Ma'aden for $1.5 Billion in Stock

One of the factories affiliated with the Saudi Ma’aden Company (File/AAWSAT)
One of the factories affiliated with the Saudi Ma’aden Company (File/AAWSAT)

Fertilizer maker Mosaic Co (MOS.N) said on Tuesday that Saudi Arabia's firm Ma'aden would acquire the US-based company's stake in a phosphate production joint venture by issuing shares worth about $1.5 billion.

Ma'aden will issue about 111 million shares to buy the 25% stake Mosaic owns in Ma'aden Wa'ad Al Shamal Phosphate Co, a joint venture between Mosaic, Ma'aden and Saudi Basic Industries (2010.SE), opens new tab Corp.

Mosaic had said in February that a lot of the cash generated from the asset had gone into reducing debt and investing in the joint venture was not at the top of its priority, Reuters reported.

The phosphate producer curtailed output after fertilizer prices dropped last year due to lukewarm demand from key markets.

The deal is expected to close by the end of this year.

Business

Riyadh WEF Special Meeting Calls for Tech Use in Global Economic Growth

Saudi Arabia's Minister of Economy and Planning Faisal Alibrahim speaks during the World Economic Forum (WEF) in Riyadh, Saudi Arabia, April 28, 2024. REUTERS/Hamad I Mohammed
Saudi Arabia's Minister of Economy and Planning Faisal Alibrahim speaks during the World Economic Forum (WEF) in Riyadh, Saudi Arabia, April 28, 2024. REUTERS/Hamad I Mohammed
TT
TT

Riyadh WEF Special Meeting Calls for Tech Use in Global Economic Growth

Saudi Arabia's Minister of Economy and Planning Faisal Alibrahim speaks during the World Economic Forum (WEF) in Riyadh, Saudi Arabia, April 28, 2024. REUTERS/Hamad I Mohammed
Saudi Arabia's Minister of Economy and Planning Faisal Alibrahim speaks during the World Economic Forum (WEF) in Riyadh, Saudi Arabia, April 28, 2024. REUTERS/Hamad I Mohammed

Leaders from around the world are stressing the importance of boosting global growth and tackling economic challenges, calling for urgent action to chart a sustainable future.

Riyadh had hosted global leaders for a two-day World Economic Forum (WEF) special meeting in Riyadh.

The Special Meeting on Global Collaboration, Growth and Energy for Development 2024 - held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia - brought together key leaders to exchange perspectives, consider new data, and advance high-impact partnerships.

Attendees at the meeting stressed the importance of working together to boost sustainable economic growth and tackle obstacles.

They highlighted the need to use technology wisely amid global changes, aiming not just for economic growth but also to fix systemic issues.

They urged unified efforts to address economic slowdowns and build resilience by pooling expertise and resources to create new strategies for growth, job creation, and fair opportunities in building stronger economies.

Wide-ranging discussions at the WEF meeting delved into geopolitical and technological developments, with a focus on artificial intelligence, cybersecurity, renewable energy, logistics sectors, and other economic issues confronting the world.

Saudi Economy Minister Faisal Alibrahim stated that the global economy is still facing slow growth. He stressed the need for fair technology distribution, saying it could boost growth in less developed countries.

During the final plenary session, Alibrahim announced that the Kingdom joined the AI Governance Alliance, and will co-launch the ‘Inclusive AI Initiative for Growth and Development’, to develop solutions for AI access and adoption.

Alibrahim also highlighted Saudi Arabia’s fast-growing non-oil sectors since Vision 2030, aiming for a diverse economy led by productivity. He mentioned Saudi Arabia’s adaptability to AI technologies.

Additionally, Alibrahim discussed the recent conflicts in the Middle East, suggesting that peace in the region would help economic progress.

“We may end up with this decade being remembered as the Turbulent Twenties or the Tepid Twenties, and what we actually want is Transformational Twenties,” said Kristalina Georgieva, Managing Director of the International Monetary Fund.

“Over the next 100 years leaders must aim for the same degree of wealth as that created over the past 100 years, but with a much better distribution of the benefits of growth,” she added.

Business

Al-Ghais: It's about Reducing Emissions, Not the Demand for Crude

Workers in an oil field in Hubei Province, China (Reuters)
Workers in an oil field in Hubei Province, China (Reuters)
TT
TT

Al-Ghais: It's about Reducing Emissions, Not the Demand for Crude

Workers in an oil field in Hubei Province, China (Reuters)
Workers in an oil field in Hubei Province, China (Reuters)

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, stressed that the pace at which global demand for energy is increasing means that alternatives cannot replace oil in the same proportion.
Al-Ghais wrote an opinion piece for the media platform Middle East Economic Survey (MEES) entitled, “It’s about reducing emissions, not oil demand”, in which he talked about the spread of terms such as “the end of oil,” which reduce or ignore key details related to current and future demand for oil.
“Such assertions, despite all evidence to the contrary, are all the more dangerous given their potential to foster energy policies that stoke energy chaos,” Al-Ghais said, adding: “What if investments in supply fall as a result, but demand for oil keeps increasing, as we are seeing today?”
He continued: “Although the main goal of the Paris Agreement on climate change is to reduce emissions – not to choose energy sources – it feels like this has been forgotten, replaced by rigid narratives to reduce demand for hydrocarbons without thinking through the effects on energy security, socio-economic development, or reducing energy poverty.”
He stressed that such narratives “forget that oil continues to be irreplaceable in fostering global prosperity and maintaining energy security.”
Touching on the centrality of oil, the OPEC secretary general wrote: “It is sometimes easy to forget just how critical oil is to our everyday lives, but without it we would not have gasoline, heating oil, jet fuel, syringes, soap, computers, car tires, contact lenses, artificial limbs, many types of medicine and much more. The fiberglass, resin and plastic needed to construct most wind turbines and the ethylene for solar panels would not exist either.”
He added: “The reality is that the end of oil is not in sight. Oil continues to make up almost a third of the global energy mix today and global oil demand continues to rise.”
In another article published on the OPEC website, Al-Ghais called on all job seekers, of all generations, to consider working in the oil industry, stressing that it is “an opportunity... to provide energy to the world.”
“The oil and gas industry has a significant role to play in employment globally. In terms of direct employment, the industry recruits highly skilled and specialized workers, but its impact extends far beyond this. For local and national economies, it has significant multiplier benefits, generating opportunities for a wide range of businesses. This includes various other parts of the manufacturing supply chain, transportation companies, hotels, restaurants and shops. All told, the oil industry alone supports around 70 million jobs worldwide,” he stated.
In this context, Al-Ghais voiced concern over reports of a “‘hiring crisis’ facing the industry, an impending labor shortage, that the younger generation is being ‘put off’ from pursuing a career in the industry, and that fewer petroleum related subjects are being offered at universities.”
He noted that a number of factors could be behind these trends, “including the perception that the industry is not a viable long-term employment option, driven by the misguided view that oil is not part of a sustainable energy future.”
He stressed that the oil industry is spread all over the world, and is found in regions, towns, villages and communities, where it has the main say.
“At OPEC, we have a clear and consistent message on oil industry jobs – the world will need more of them! We foresee oil demand growing to 116 mb/d by 2045 and to meet this, and further evolve technologies to reduce emissions, we will need more workers,” Al-Ghais underlined.
He concluded by saying: “And finally, to all jobseekers – of all generations ̶ I encourage you to consider a career in the oil industry. It is one of boundless opportunities for professional fulfillment, and a vital cog in providing energy to the world.”