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Sharjah Attracts $220Mn in Direct Foreign Investments

A general view of Sharqah, UAE. (WAM)
A general view of Sharqah, UAE. (WAM)
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Sharjah Attracts $220Mn in Direct Foreign Investments

A general view of Sharqah, UAE. (WAM)
A general view of Sharqah, UAE. (WAM)

The Sharjah Emirate has attracted 24 foreign direct investment (FDI) projects worth $220 million (AED808.6 million) during 2020, according to a Wavteq study on Sharjah’s FDI annual performance.

This boost in the economic activity in new and emerging sectors has led to the creation of 1,117 new jobs in the emirate, it said.

It forecast an increase in the FDI in various vital primary sectors during 2021, predicting a 74 percent hike in life sciences, 55.6 percent in Information and Communications Technology (ICT), 49.7 percent in food and agriculture industries and 46.2 percent in logistics and distribution, while the cleaning technology industry is expected to grow at a rate of 30.2 percent.

Secondary sectors, including e-commerce, medical technology, education technology, cybersecurity, financial technology and smart logistics are expected to bring high-yield investment opportunities for innovation-driven SMEs.

There has been a 60 percent increase in the number of FDI projects in H2 2020, compared to the first half, the study showed.

It indicated that the coronavirus pandemic has affected some sectors and revealed the importance of several others, which contributed to advancing the economic activity in the emirate within some emerging sectors.

The study stressed that the pandemic has revealed the resilience of cities like Sharjah, which continued to grow amid crisis by allowing global investors to benefit from the opportunities offered by its diverse economy, business-friendly environment and low operating costs, among other competitive advantages.

During the pandemic, job opportunities in the medical equipment manufacturing sector increased by 53.4 percent, and in life sciences by 45.4 percent, the highest since 2012, said the CEO of Invest in Sharjah (IIS), Mohamed Al Musharrkh.

Jobs in e-commerce, financial technologies and logistics also grew at a quick pace during 2020, he added.

Apart from the need to increase investment in future industries, Al Musharrkh noted that 2020 “taught us that we must focus on SMEs, start-ups and emerging innovation-based businesses, which are the backbone of social capital and economy and have a direct impact on microeconomic indicators.”

An analysis of The Global Entrepreneurship Index showed that countries with high per capita GDP have a higher share of entrepreneurial enterprises, he explained.

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Business

Saudi Arabia Encourages Companies to Import Lebanese Products After Royal Order

Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
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Saudi Arabia Encourages Companies to Import Lebanese Products After Royal Order

Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)

Saudi Arabia has officially begun encouraging its private sector to import Lebanese goods, a concrete step to revive trade between the two countries after years of disruption.

The step implements directives from Prince Mohammed bin Salman, Crown Prince and Prime Minister, and follows a request from Lebanon’s presidency and government.

Beirut port recently saw the first shipment leave for the Kingdom, in a ceremony officials said marked the rebuilding of economic trust, backed by modern and strict security controls to safeguard exports.

According to information obtained by Asharq Al-Awsat, Saudi Arabia’s General Authority of Foreign Trade informed the Federation of Saudi Chambers that a royal order had approved the resumption of Lebanese exports to the Kingdom.

It asked that the decision be circulated across the private sector so companies could benefit from it.

The move is expected to spur Saudi companies to tap the Lebanese market and push trade between the two countries toward broader horizons in line with their ambitions.

First export shipment

Acting on the Saudi royal order, Lebanese products were shipped again to Saudi Arabia on June 20, in the presence of the Saudi Ambassador to Lebanon, Fahd Al-Dosari. The shipment carried more than goods and merchandise.

It carried “a message of trust rebuilt after years of disruption, and an economic opportunity Lebanon eagerly awaits at a time when the need to stimulate production and increase exports is growing.”

The return of the Saudi market, which alone represents about 85% of the Gulf market, is not only a recovery of what was lost when exports stood at about $378 million before the ban. It also opens the door to greater ambitions to expand Lebanon’s presence in this vast market.

Al-Dosari said in a speech: “In implementation of the directives of Crown Prince Mohammed bin Salman to resume Lebanese exports to the Kingdom, and in response to the request of Lebanese President General Joseph Aoun and Prime Minister Nawaf Salam, and in line with the positive steps taken by the government toward rebuilding state institutions and the work completed by the specialized teams, we gather today to witness the departure of the first exports bound for Jeddah Islamic Port through Beirut port.”

He added: “As an embodiment of brotherly relations and out of the Kingdom’s keenness to stand by its brothers, this decision to resume Lebanese exports to the Kingdom confirms beyond doubt its support for Lebanon’s stability, its sovereignty over all its territory and the welfare of its brotherly people.”

Security screening

Prime Minister Nawaf Salam said Lebanon would not be allowed to again become “a launchpad for any harm against its Arab brothers,” and thanked Crown Prince Mohammed for lifting the ban on Lebanese exports.

The attendees then inspected modern scanning devices recently installed at Beirut port to examine goods and containers with precision. The equipment is designed to tighten security controls and speed up customs clearance.

Saudi Arabia had been Lebanon’s top export market before the ban. In 2014 and 2015, it ranked first, accounting for about 12% of Lebanon’s total exports, with a value of around $378 million in 2014, according to Lebanese customs and Chamber of Commerce data.

Bilateral trade was estimated at hundreds of millions of dollars annually.

Business

Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
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Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)

Türkiye's ‌Energy Minister Alparslan Bayraktar said on Wednesday that he met senior Iraqi oil and foreign ministry officials to discuss energy cooperation, including on the Iraq-Türkiye Crude Oil Pipeline that runs from Kirkuk to Ceyhan.

The decades-old Türkiye-Iraq Crude Oil ‌Pipeline Agreement, which governs ‌exports through the ‌pipeline, ⁠is due to ⁠expire on July 27. Baghdad and Ankara are still discussing a new draft agreement.

The Iraqi delegation included Deputy Foreign Minister Hussein Bahr Al-Uloom, Deputy ⁠Oil Minister Naser Azez ‌Jabbar, and ‌Iraq's Ambassador to Ankara Majid Al-Lachmawi.

Bayraktar said in a ‌post on X that Türkiye aims to work closely with the new Iraqi government on more effective ‌use of existing energy infrastructure.

Türkiye also seeks to ⁠support ⁠existing infrastructure with new connections, Bayraktar said.

Baghdad last month asked Ankara to extend the pipeline agreement for at least a year to allow time for more talks, but Ankara said it does not want an extension under current conditions.

Business

Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
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Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)

Gold fell for a third consecutive session on Wednesday, as rising US Treasury yields and growing bets that the Federal Reserve will raise interest rates pressured the non-yielding metal.

Spot gold was down 0.8% at $3,974.75 per ounce as of 0849 GMT, after touching its lowest level since last November at $3,942.99 in the previous session. US gold futures for August delivery lost 1.3% to $3,987.70/oz.

The yellow metal ‌on Tuesday recorded ‌its first quarterly loss since January 2024, Reuters reported.

A selloff ‌in ⁠US Treasuries on ⁠Tuesday pushed the benchmark 10-year yield up as much as 9 basis points before it backed off the highs. By Wednesday, yields were rising again, up 4 bps at 4.465%, outpacing increases in euro zone bond yields.

A stronger US dollar makes bullion less affordable for overseas buyers.

"The weakness is a bit driven by comments from ⁠Fed's Hammack, suggesting a rate hike might be ‌needed and market participants pricing in ‌a bit more rate hikes for this year," said UBS analyst Giovanni Staunovo. Federal ‌Reserve Bank of Cleveland President Beth Hammack said on Tuesday ‌she may advocate for higher rates if inflation pressures don’t moderate. According to CME FedWatch tool, traders see a nearly 67% chance of a rate hike by September.

Expectations for more hikes are not helping investment demand, and ‌ETF holdings have seen renewed outflows in recent days, said Staunovo, noting that price volatility is ⁠expected around economic ⁠data releases this week.

June ADP employment data, due at 1215 GMT, and Thursday's nonfarm payrolls report could give further clues on the Fed's policy path.

Markets will also closely watch the European Central Bank's annual Sintra conference on Wednesday, where Fed Chair Kevin Warsh and ECB President Christine Lagarde are due to speak. On the geopolitical front, concerns persisted over the prospects for US-Iran diplomacy after Tehran said it would not meet senior US envoys who travelled to the region following the recent outbreak of hostilities.

Spot silver fell 1.4% to $57.75 per ounce.

Platinum slipped 0.6% to $1,542.70, after hitting its lowest point since November. Palladium slid 1.4% to $1,187.01.