Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
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Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)

Iranian experts and traders are concerned that the tensions between Iran and the UAE could affect the mutual trade relations, at a time when Tehran is facing an economic crisis due to the impact of sanctions and the coronavirus pandemic.

Iran condemned the recent UAE-Israeli peace treaty, and President Hasan Rouhani gave a strongly worded statement denouncing the agreement.

In response, the Emirati foreign ministry summoned Iran's charge d'affaires in Abu Dhabi and gave him a memo saying Rouhani’s speech was “unacceptable,” warning that it could have serious repercussions for the security and stability of the Arabian Gulf region.

However, Iranian economic and foreign experts ruled out the possibility that the UAE would change its relations with Iran after the peace treaty with Israel, according to the Iranian Ilna Agency.

The chairman of Iran-UAE Joint Chamber of Commerce, Farshid Farzanegan, told the agency that despite economic problems and the spread of the coronavirus, the UAE was the only country to which Iran’s exports increased.

Farzanegan announced that Iran’s exports to the UAE increased by 16 percent in the first four months of the Iranian year that starts on March 21.

He noted that economic relations must be separate from political issues, noting that due to sanctions, Tehran does not have many options for trade, and Turkey and the UAE are two countries where Iranian traders have maintained their activities.

“Iran’s exports to the UAE were $4.5 billion and our imports from this country were $8.9 billion, in other words, the volume of trade between the two countries is $13.4 billion.”

He then pointed to the major imported and exported goods between both countries, saying that till last year, petrochemical and mineral materials as well as industrial products and machinery have been the major exports to the UAE.

The chairman also noted that Iranian agro products are highly important exports for traders.

Farzanegan also pointed out that there is currently no problem regarding forex shops in the UAE and money transactions are done much faster than other countries in the Persian Gulf, including Oman.

He noted that the UAE is not the only vital vein for money arriving into the country but the country is definitely a gateway for it. He explained that all re-exports and re-imports are done through the UAE because it is a regional hub for imports and exports.



Saudi Arabia, Kuwait Discuss Ways to Deepen Cooperation in Energy and Industry

Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz met in Riyadh with Kuwaiti Minister of Foreign Affairs Sheikh Jarrah Jaber Al-Ahmad Al-Sabah. SPA
Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz met in Riyadh with Kuwaiti Minister of Foreign Affairs Sheikh Jarrah Jaber Al-Ahmad Al-Sabah. SPA
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Saudi Arabia, Kuwait Discuss Ways to Deepen Cooperation in Energy and Industry

Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz met in Riyadh with Kuwaiti Minister of Foreign Affairs Sheikh Jarrah Jaber Al-Ahmad Al-Sabah. SPA
Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz met in Riyadh with Kuwaiti Minister of Foreign Affairs Sheikh Jarrah Jaber Al-Ahmad Al-Sabah. SPA

Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz met in Riyadh with Kuwaiti Minister of Foreign Affairs Sheikh Jarrah Jaber Al-Ahmad Al-Sabah.

The two ministers reviewed bilateral relations and discussed ways to deepen cooperation in energy, industry and mineral resources, as well as joint efforts to strengthen energy security and ensure stable supplies.

They also discussed the latest developments in the region and exchanged views on regional and international issues of mutual interest, in support of the shared interests of Saudi Arabia and Kuwait.


TotalEnergies Profit Hits Record on High Oil Prices

(FILES) A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (Photo by JULIEN DE ROSA / AFP)
(FILES) A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (Photo by JULIEN DE ROSA / AFP)
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TotalEnergies Profit Hits Record on High Oil Prices

(FILES) A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (Photo by JULIEN DE ROSA / AFP)
(FILES) A sign of TotalEnergies on a fuel station in Paris, France on October 9, 2022. (Photo by JULIEN DE ROSA / AFP)

French oil and gas giant Total Energies said Thursday that its net profit hit a new record in the third quarter as the war in the Middle East pushed up hydrocarbon prices.

Net profit reached $8.3 billion in the period from July to September, up from $5.4 billion in the preceding three months, AFP reported.

"In a high-price environment characterized by historic refining margin levels and a bull gas market, TotalEnergies is once again fully leveraging its integrated business model and its geographic diversification," chief executive Patrick Pouyanne said in a statement.

The company had already reported a strong rise in its bottom line in the preceding two quarters, similarly driven by soaring oil and gas prices as well as its trading activities.

TotalEnergies said the surge in profits would be reflected in a higher dividend for shareholders.

"The board of directors commended the very good operational performance of all business segments which enabled the company to capture higher market prices," the company said in its earnings statement.

The group will undertake a new capital increase reserved for employees, "who will benefit from a 20 percent discount on the share price.”

The board confirmed a third interim dividend of 0.90 euros per share for 2026, up 5.9 percent compared to 2025.

TotalEnergies will also proceed with share buybacks for cancellation of $2.5 billion "for the fourth quarter as well as for the first quarter 2027.”


Acwa, EIG Announce Strategic Partnership to Invest in US Power Infrastructure

Dr. Samir J. Serhan, Chief Executive Officer of Acwa (left), and R. Blair Thomas, Chief Executive Officer of EIG (right)
Dr. Samir J. Serhan, Chief Executive Officer of Acwa (left), and R. Blair Thomas, Chief Executive Officer of EIG (right)
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Acwa, EIG Announce Strategic Partnership to Invest in US Power Infrastructure

Dr. Samir J. Serhan, Chief Executive Officer of Acwa (left), and R. Blair Thomas, Chief Executive Officer of EIG (right)
Dr. Samir J. Serhan, Chief Executive Officer of Acwa (left), and R. Blair Thomas, Chief Executive Officer of EIG (right)

Saudi Arabia’s Acwa and EIG said Thursday they have entered into definitive agreements to establish Plenum Power, a strategic partnership focused on investment opportunities in the United States.

The parties intend for Plenum Power to target a launch with an initial equity commitment of approximately $4 billion.

“The partnership combines Acwa's global capabilities in developing, financing, constructing, and operating large-scale infrastructure across conventional and renewable power generation and energy storage, with a track record of delivering projects at scale, driving competitive energy costs and maintaining strong operational performance, alongside EIG's experience in sourcing, establishing, financing and scaling energy infrastructure platforms,” the two companies said.

In a statement to Tadawul, Acwa said the agreement sets out the partnership framework, under which it will hold a 49% stake and EIG will own 51%.

Plenum Power is being launched at a time when rising electricity demand, driven by electrification and the rapid expansion of AI data centers, is expected to create significant investment opportunities across the US power sector.

EIG and Acwa believe that meeting this demand affordably and reliably will require new generation capacity, energy storage and investment in existing infrastructure, and that these conditions create opportunities to jointly pursue acquisitions, develop new capacity and support the next phase of growth in US power infrastructure.

“The US power industry is at an inflection point, with demand accelerating as AI, data centers and electrification reshape the market. At the same time, recent dislocation in renewable energy development caused by regulatory changes, supply chain inflation and interest rates in the US creates an attractive entry point for a new entrant at scale in our view,” said R. Blair Thomas, Chief Executive Officer of EIG.

“We believe those dynamics will drive consolidation across the industry and that Acwa's global operating capabilities, combined with EIG's investment, financing and platform-building experience, position Plenum Power well in this evolving market environment. We’re also fortunate to have a deep relationship with Acwa and KSA to build upon as we pursue this new initiative.”

Chief Executive Officer of Acwa Dr. Samir J. Serhan said in the joint statement that the US “represents a significant opportunity for Acwa to bring its global expertise in developing, financing, and operating large-scale power infrastructure to one of the world’s most dynamic energy markets.”

“As electricity demand accelerates, meeting that growth is expected to require substantial investment, reliable generation capacity, and the ability to deliver projects efficiently and at scale.”

“Our partnership with EIG combines complementary strengths in infrastructure investment, development, and operations, creating a strong foundation to pursue opportunities across conventional and renewable power generation and energy storage” he added.

According to Serhan, “this marks an important step in expanding Acwa’s international footprint and supporting the development of resilient, competitive energy infrastructure in the United States.”

As for EIG President Andrew Ellenbogen, he said that the company’s strategic investments business is built around high-conviction theses in sectors undergoing structural change.

“Plenum Power builds on a platform-creation playbook EIG has applied across prior strategic initiatives in oil & gas, LNG and battery storage, combining EIG’s investment origination, capital formation and M&A capabilities with Acwa’s global development and operating expertise. Together, we seek to create a scaled US power platform that can grow through acquisitions and the development of new capacity,” the statement quoted him as saying.

For EIG, the partnership represents an extension of its strategy in US power generation. EIG has committed more than $14.2 billion across power generation, renewable energy, energy storage and related energy-transition infrastructure globally, experience that informs the firm’s approach to building and scaling energy businesses.

With a global portfolio of 111 assets across 16 countries, representing $127 billion in assets under management, Acwa brings extensive capabilities spanning development, investment, financing, construction, operations, and asset optimization. The partnership will draw on these capabilities as it evaluates acquisition and development opportunities in the United States.