Saudi Arabia, South Africa Hold Meeting to Discuss Qualitative Investments in Entrepreneurial Firms

The Saudi-South African roundtable meeting held in Jeddah on Sunday, October 16, 2022.  (Asharq Al-Awsat)
The Saudi-South African roundtable meeting held in Jeddah on Sunday, October 16, 2022. (Asharq Al-Awsat)
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Saudi Arabia, South Africa Hold Meeting to Discuss Qualitative Investments in Entrepreneurial Firms

The Saudi-South African roundtable meeting held in Jeddah on Sunday, October 16, 2022.  (Asharq Al-Awsat)
The Saudi-South African roundtable meeting held in Jeddah on Sunday, October 16, 2022. (Asharq Al-Awsat)

A Saudi-South African roundtable meeting was held Sunday in the Saudi city of Jeddah.

The meeting aimed at promoting investment relations, bolstering efforts to develop economic ties and qualitative investments for entrepreneurial companies, and enabling the private sector to benefit from the opportunities available in the two countries.

South African President Cyril Ramaphosa, Saudi Minister of Investment Eng. Khalid al-Falih, Minister of Tourism Ahmad al-Khateeb, and Minister of Industry and Mineral Resources Bandar al-Khorayef, as well as South African Minister of Trade, Industry and Competition Ebrahim Patel attended the meeting.

The roundtable talks saw the participation of Saudi and South African entrepreneurship companies, the Federation of Saudi Chambers and representatives of the private sectors and companies from the two sides.

The agenda included presentations by Saudi and South African companies, opportunities to develop their businesses and means to address challenges they are facing in an attempt to enhance business and investments in the fields of energy, renewable energy, mining, agriculture, food, tourism, logistics, and ICT.

The meeting represents a step to support the outcomes of the Saudi-South African Investment Forum that was held Saturday and reviewed bilateral investment opportunities, with the participation of several officials from the two countries and representatives of the private sectors and companies.

Falih underscored the importance of Ramaphosa’s active participation in strengthening investment, trade and business ties.

He pointed out that the two countries and their commercial societies have ambitious plans for investment and economic development.

Falih indicated that the roundtable represents the next step in achieving the aspirations, with two governments working to help provide business growth opportunities for the vibrant and innovative private sector companies in both countries.

On Saturday, the Kingdom’s Ministry of Investment held the Saudi-South African Investment Forum in Jeddah. The event was attended by Ramaphosa and dozens of senior officials from the two countries.

The two countries signed 11 agreements and Memoranda of Understanding to boost investment in energy, water, green hydrogen, waste diversion, and logistics.

The agreements aimed to promote the developing investment sectors between the two nations and between the Middle East and South Africa, and transfer specialized technical knowledge and expertise.

Bilateral trade between the two countries increased from $4.6 billion in 2019 to around $4.8 billion last year, and is expected to exceed $5.3 billion this year, Falih said.

The minister praised the solid and friendly ties between the two countries, including their economic and trade cooperation which has stood for over three decades.

He stated that the priority areas of cooperation between the two countries include renewable and green energy, mining, agriculture and food processing, hydrogen and solar energy, tourism, aerospace, and information technology, among others.



Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.