Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)

The Saudi government has raised the minimum limit of annual sales at which entities should notify the authority of economic concentration transactions to SAR 200 million ($53.3 million) from SAR 100 million ($26.6 million).

The decision was based on the annual review made by the General Authority for Competition (GAC), which considered the best international practices.

This came under the approval of GAC’s board of directors to amend Article No. 2 of the executive regulations of the Competition Law to read: “Entities seeking to join an economic concentration transaction – or the persons legally authorized to represent them - must notify the Authority at least 90 days prior to the completion of such transaction, if the total value of the entities' annual sales exceeds SAR 200 million.”

The amendment was approved during the 80th board meeting, with other resolutions adopted.

The GAC board followed up on the preliminary results of investigations into the motor sector, issuing several directives.

It also reviewed the investigation results of a lawsuit related to two entities in the food delivery and restaurants sectors, approving a settlement.

The board approved another settlement between two entities operating in the construction sector and nodded to exempting two entities operating in the electric vehicles (EV) sector for exclusive and unified contracts.

In other news, the Saudi Contractors Authority revealed that over 1,000 e-contracts worth more than SAR 308 million ($82.1 million) have been concluded on the Kingdom’s “Muqawil” platform, launched in 2021.

According to the Authority, 600 contracts have been signed for the implementation of framed structures without materials. Meanwhile, the contracts for implementation with materials reached 300.

The value of the highest contract concluded on Muqawil exceeded SAR 50 million ($13.3 million).

Muqawil also recorded SAR 10,000 ($2.6 thousand) as the lowest value of a typical contract concluded on the platform.



Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73.

During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.

That put both contracts on course for a weekly fall of about 12%.

"The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah.

"The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be."

The OPEC+ members will meet on July 6 to decide on August production levels.

Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst.

Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week.

Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said.

China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.