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Saudi Arabia Launches National Platform to Push Investments in Local Military Industries

Saudi Arabia launched on Monday a number of enablers for local and international investors in the military sector. (Asharq Al-Awsat)
Saudi Arabia launched on Monday a number of enablers for local and international investors in the military sector. (Asharq Al-Awsat)
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Saudi Arabia Launches National Platform to Push Investments in Local Military Industries

Saudi Arabia launched on Monday a number of enablers for local and international investors in the military sector. (Asharq Al-Awsat)
Saudi Arabia launched on Monday a number of enablers for local and international investors in the military sector. (Asharq Al-Awsat)

In a move to push investments in the military industries, Saudi Arabia launched on Monday a number of enablers for local and international investors, allowing them to access the sector’s opportunities.
 
The launching came during a ceremony organized by the General Authority for Military Industries (GAMI), in the presence of the Minister of Investment, Engineer Khaled Al-Falih, Minister of Industry and Mineral Resources Bandar Al-Khorayef, Dr. Faleh Al-Sulaiman, Governor of the General Authority for Defense Development, and a number of CEOs of local companies operating in the sector.
 
The enablers aim to create an attractive and stimulating investment environment for local and international investors in the military industries sector, through the establishment of a national digital platform that achieves integration between all parties operating in the Saudi sector.

The platform will allow investors to access investment opportunities and promote governmental integration between the relevant authorities.
 
Saudi Arabia seeks to localize the military sector, through the development of military industries and technologies, developing national competencies, providing job opportunities for Saudi youth, and increasing the sector’s contribution to the national economy.
 
In a speech on the occasion, GAMI Governor Eng. Ahmed Al-Ohali said that GAMI has focused on enhancing and developing the military procurement mechanism as one of its primary roles since its inception, noting that by working with End Users to optimize the benefits from the Kingdom’s military spending through unifying purchasing power, the Kingdom would gain negotiating power, resulting in savings, localization opportunities, local industry development, and technology transfer.
 
He added that establishing the Military Industries Committee would significantly contribute to supporting the localization of strategic and national military industries and technologies while enhancing communication and knowledge sharing between GAMI and relevant entities.
 
The launching ceremony also saw the announcement of a number of memorandums of understanding aimed at supporting the sector’s directions and achieving its national goals by raising the level of participation of enterprises in developing the sector and supporting its localization process.

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Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
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Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo

A top aide to Ukrainian President Volodymyr Zelensky on Friday said Kyiv would halt the transit of Russian oil across its territory at the end of the year, when the current contract expires and is not renewed.

Mykhailo Podolyak said in an interview with the Novini.Live broadcaster that current transit contracts for Russian supplies that run through the end of the year will not be renewed.

“There is no doubt that it will all end on January 1, 2025,” he said.

Kiev says it is prepared to transport gas from the Central Asian countries or Azerbaijan to Europe, but not from Russia, as it is crucial for Ukraine to deprive Russia of its sources of income from the sale of raw materials after it attacked its neighbor well over two years ago.

The contract for the transit of Russian gas through Ukraine to Europe between the state-owned companies Gazprom and Naftogaz ends on December 31.

Despite the launch of Russia's full-scale invasion of Ukraine in February 2022, the Ukrainians have fulfilled the contract terms - in part at the insistence of its European neighbors, especially Hungary.

But the leadership in Kiev has repeatedly made it clear that it wants the shipments to end.

Meanwhile, the Czech Republic energy security envoy Vaclav Bartuska said on Friday that any potential halt in oil supplies via the Druzhba pipeline through Ukraine from Russia from next year would not be a problem for the country.

Responding to a Reuters question – on comments by Ukrainian presidential aide Mykhailo Podolyak that flows of Russian oil may stop from January – Bartuska said Ukraine had also in the past warned of a potential halt.

“This is not the first time, this time maybe they mean it seriously – we shall see,” Bartuska said in a text message. “For the Czech Republic, it is not a problem.”

To end partial dependency on the Druzhba pipeline, Czech state-owned pipeline operator MERO has been investing in raising the capacity of the TAL pipeline from Italy to Germany, which connects to the IKL pipeline supplying the Czech Republic.

From next year, the increased capacity would be sufficient for the total needs of the country’s two refineries, owned by Poland’s Orlen, of up to 8 million tons of crude per year.

MERO has said it planned to achieve the country’s independence from Russian oil from the start of 2025, although the TAL upgrade would be finished by June 2025.

On Friday, oil prices stabilized, heading for a weekly increase, as disruptions in Libyan production and Iraq’s plans to curb output raised concerns about supply.

Meanwhile, data showing that the US economy grew faster than initially estimated eased recession fears.

However, signs of weakening demand, particularly in China, capped gains.

Brent crude futures for October delivery, which expire on Friday, fell by 7 cents, or 0.09%, to $79.87 per barrel. The more actively traded November contract rose 5 cents, or 0.06%, to $78.87.

US West Texas Intermediate (WTI) crude futures added 6 cents, or 0.08%, to $75.97 per barrel.

The day before, both benchmarks had risen by more than $1, and so far this week, they have gained 1.1% and 1.6%, respectively.

Additionally, a drop in Libyan exports and the prospect of lower Iraqi crude production in September are expected to help keep the oil market undersupplied.

Over half of Libya’s oil production, around 700,000 barrels per day (bpd), was halted on Thursday, and exports were suspended at several ports due to a standoff between rival political factions.

Elsewhere, Iraq plans to reduce oil output in September as part of a plan to compensate for producing over the quota agreed with the Organization of the Petroleum Exporting Countries and its allies, a source with direct knowledge of the matter told Reuters on Thursday.

Iraq, which produced 4.25 million bpd in July, will cut output to between 3.85 million and 3.9 million bpd next month, the source said.