Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
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Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)

Saudi Arabia and Greece have revealed a strategic partnership between the private sectors in the two countries to work on a cable project that will ensure the smooth digital supply of data worldwide at a time when data traffic is growing by more than 30 percent.

The partnership was announced during the official visit of Crown Prince Mohammad bin Salman to Greece on Wednesday to hold and expand partnerships between the two countries in several fields.

The partnership comes through the leadership of the Saudi Telecom Company (STC) in the East to Med Data Corridor (EMC) project in collaboration with the Greek Telecom Company, the Greek General Energy Company, and the Cyprus Telecom Company.

The agreements will boost the Kingdom's position as a regional digital hub in line with Vision 2030, as Greece is the eastern data gateway to the European Union.

The project aims to position the two countries as an eastern digital station for Europe to reach the Middle East, Africa, and Asia, and the submarine cable comes as part of Greece's strategic digital transformation plan.

It is also part of the Kingdom's ambitions to consolidate its position as a digital hub center at the regional and global levels by taking advantage of its advanced digital infrastructure, its developed cadres and institutions, and geographical location, which allows it to become an international digital hub center by linking East and West.

The project, if completed, will contribute to accelerating the growth of the global digital economy, which is estimated to reach $15 trillion, and supporting new industries and emerging markets based on innovative business models.

Notably, the geographical position of the Kingdom and its many ports have already qualified it to be a center of attraction for the digital economy and investment, as about ten percent of the global capacities of submarine cables pass through the Saudi territory.

Meanwhile, STC Group announced that Mena Hub, a premier digital hub, partnered with Greek telco TSSA to build the EMC undersea and land fiber optic data cable to link Europe with Asia.

The new project demonstrates STC's goal to provide ever-increasing global connectivity and data center capacity to the markets of Asia, Europe, and the rest of the world through Saudi Arabia, which sits at the geographic heart of these key economies.

With increasing digital connectivity comes the need to protect businesses and companies. Sirar, STC's cybersecurity arm, handles and addresses the current and future requirements as they arise.

STC Group CEO Olayan al- Wetaid noted that this vital signing represents another validation of the execution of the DARE2.0 strategy as "we build out our complete digital ecosystem at expanding scope, increasing scale and accelerating pace."

"We are pleased to be building our integrated system even further for the benefit of our clients and customers, as we look to further establish our digital credentials and contribute to Vision 2030 and become a leading digital company and regional digital hub linking three continents,” Wetaid said.



Oil Prices Rise as Iran Suspends Cooperation with UN Nuclear Watchdog

An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
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Oil Prices Rise as Iran Suspends Cooperation with UN Nuclear Watchdog

An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS

Oil futures edged up on Wednesday as Iran suspended cooperation with the UN nuclear watchdog and markets weighed expectations of more supply from major producers next month, while the US dollar softened further. Brent crude was up 55 cents, or 0.8%, to $67.66 a barrel at 1301 GMT, while US West Texas Intermediate crude rose 58 cents, or nearly 0.9%, to $66.03 a barrel.

Brent has traded between a high of $69.05 a barrel and low of $66.34 since June 25, as concerns of supply disruptions in the Middle East have ebbed following a ceasefire between Iran and Israel. Iran enacted a law on Wednesday that stipulates any future inspection of its nuclear sites by the International Atomic Energy Agency needs approval by Tehran's Supreme National Security Council. The country has accused the agency of siding with Western countries and providing a justification for Israel's air strikes, according to Reuters.

"The market is pricing in some geopolitical risk premium from Iran's move on the IAEA," said Giovanni Staunovo, a commodity analyst at UBS. "But this is about sentiment, there are no disruptions to oil." Planned supply increases by the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, appear already priced in by investors and are unlikely to catch markets off-guard again imminently, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova. Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6, a similar amount to the hikes agreed for May, June and July. "We are all talking about additional supply coming to the market, but the supply has not really hit the market," UBS' Staunovo said. "Probably because it's being consumed domestically."

Overall OPEC+ exports are relatively flat to slightly down since March, Staunovo said. He expects this trend to persist over the summer as hot weather drives higher energy demand. The greenback continued to weaken, falling to a 3-1/2-year low against its major peers on Wednesday. A weaker dollar tends to support oil prices, as it can boost demand for buyers paying in other currencies.

The release of the key US monthly employment report on Thursday will shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, said Tony Sycamore, an analyst at IG.

Lower interest rates could spur economic activity, which would in turn boost oil demand. Official US oil stockpile data from the Energy Information Administration is due to be released at 10:30 a.m. EDT (1430 GMT) on Wednesday. American Petroleum Institute data late on Tuesday showed US crude oil inventories rose by 680,000 barrels in the past week at a time when stockpiles are typically drawn down amid summer demand, sources said.