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Saudi Arabia, Uzbekistan Sign 13 Deals Worth $12 Bn

Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
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Saudi Arabia, Uzbekistan Sign 13 Deals Worth $12 Bn

Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)

Saudi Arabia and Uzbekistan signed 13 agreements worth $12 billion, on the sidelines of the visit of Uzbek President Shavkat Mirziyoyev to Saudi Arabia, at the invitation of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.

The deals were signed on Wednesday between the Saudi and Uzbek private sectors during the Saudi-Uzbek Business Council meeting.

Saudi Minister of Investment Khalid al-Falih and Deputy Prime Minister and Minister of Investment and Foreign Trade of Uzbekistan Jamshid Khojayev attended the signing ceremony.

The agreements come within the framework of strengthening efforts between the two countries, promoting investments, and increasing joint projects between Saudi and Uzbek companies.

The agreements included investment activities in various strategic sectors such as health, energy, aviation, tourism, pharmaceuticals, construction, food, and technology.

The signed agreements aim to explore investment opportunities, advance the partnership between the Saudi and Uzbek private sectors, encourage and enhance mutual investments in targeted sectors, expand the strategic partnership, develop investment, and exchange data on available investment opportunities.

Falih said the partnership with Uzbekistan is vital for both countries, saying Tashkent is witnessing distinct development in Asia.

Trade exchange between the two countries reached good levels during the past years, said Falih, adding that Saudi Arabia looks forward to strengthening it through the current agreements and partnerships.

Saudi Arabia and Uzbekistan have strong economic and trade relations.

The Kingdom was one of the first countries to recognize the independence of Uzbekistan. They signed a memorandum of understanding in December 1991, and in February 1992, they agreed on an exchange of diplomatic missions.

A few months ago, Falih sponsored laying the foundation stone for the Syrdarya power plant. He also launched several projects of ACWA Power to establish a combined-cycle gas turbine power plant in Shirin.

ACWA Power is the only Saudi company investing in Uzbekistan, amounting to $2.6 billion.

ACWA Power has implemented or participated in the implementation of four energy generation projects, both renewable and conventional, with a 20 percent capacity of the country's total production.

The value of trade exchange between Saudi Arabia and Uzbekistan amounted to $16.6 million in 2021.

Saudi exports amounted to $1.6 million, compared to imports worth $15 million, thus tilting the trade balance in favor of Uzbekistan by $13 million.

The volume of Saudi non-oil exports to Uzbekistan in 2021 is about $16 million, while non-oil imports amounted to $14 million.

Petrochemicals are among the Kingdom's most important exports to Uzbekistan, while food products are the highest Uzbek imports to Saudi markets.

In 2022, Uzbekistan presented Saudi Arabia with its proposals for developing bilateral relations, focusing on the economic aspect, increasing the volume of trade exchange to $100 million this year and reaching $400 million in 2024.

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Business

Stocks Slide as Oil Climbs on Mideast Flareup

FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo
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Stocks Slide as Oil Climbs on Mideast Flareup

FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. REUTERS/Richard Carson/File Photo

Oil prices rose Wednesday on fresh concerns about Middle East supplies following a warning that Iran appeared to be stepping up attacks in the Strait of Hormuz, weighing on stock markets.

Crude futures had steadied Tuesday, helping Wall Street to fresh highs, with a large amount of the support coming from a rush back into the AI trade that saw chip titan Nvidia push towards a $6-trillion market value.

But Wall Street stocks pulled back at the opening bell, with a rise in bond yields on US government bonds to fresh 24-year highs as investors worried about inflation and interest rates.

"Rising Treasury yields and oil prices are creating renewed pressure after stocks received some relief from both fronts to start the week," said analysts at Briefing.com.

"In Europe, where there is a lower representation of AI-related names, investors are taking a more cautious stance," noted Russ Mould, investment director at AJ Bell.

"Oil prices remain above $100 a barrel and the inflation risks are clear to see," he added.

Figures have shown Tehran increasing strikes on tankers in the crucial Strait of Hormuz.

UK Maritime Trade Operations on Tuesday said there had been nine attacks this month, representing half of the September total in the waterway and the Gulf combined.

However US Secretary of State Marco Rubio said Wednesday that Iran has "lost complete control" of the Strait of Hormuz.

"There's almost as much oil flowing out now as there was before this conflict began," he told reporters during a visit to Athens.

Chris Weston, head of research at broker Pepperstone, said "reports of increased flows across the (Mideast) region have offered some downside pressure on crude, but this has been offset by varying reports around the scale of attacks on vessels moving through the Strait".

"For now, the market remains highly sensitive to headlines and geopolitical risk," he added.

Indian stocks slipped and the rupee steadied Wednesday as the Indian central bank hiked interest rates for the first time in more than three years.

The euro fell heavily versus the dollar for a second time this week as worries about France's high debt levels spook bond markets.

Marine Le Pen, frontrunner in the race to be France's next president, said Tuesday she would implement 140 billion euros ($157 billion) in cost savings by 2032 if elected next year, warning that without change France was "heading towards default" on its debt.

The pledge "has helped ease bond yields" in France even if "pushing through that level of cuts... would be a hugely difficult task", said Susannah Streeter, chief investment strategist at Wealth Club.

Business

Saudi Arabia Prepares New Pathways for Its Companies to Enter the Syrian Market

Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
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Saudi Arabia Prepares New Pathways for Its Companies to Enter the Syrian Market

Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)
Syrian President Ahmed Al-Sharaa with businesspeople during the Saudi-Syrian Investment Forum in Damascus (SPA)

Asharq Al-Awsat has learned that the Saudi-Syrian Business Council is currently working on around three new pathways that are still being developed as part of an institutional framework aimed at facilitating the entry of Saudi companies into the Syrian market and paving the way for new sector-specific projects in the coming stages.

Saudi-Syrian economic relations have developed since last year, following the arrival in Damascus of a high-level Saudi delegation led by then Investment Minister Khalid Al-Falih. The delegation included more than 130 businesspeople and investors, reflecting the scale of official and economic interest in strengthening trade and investment ties between the two countries.

The visit saw the signing of more than 47 agreements and memorandums of understanding across 11 vital sectors, with total investments exceeding $6.4 billion. They covered real estate, infrastructure, telecommunications and information technology, industry, and other sectors.

Coordination with the “Syrian Sovereign Fund”

According to the information, a mechanism has been established to coordinate with the Syrian Investment Authority to form a joint team to study the development of land and sea logistics corridors. This would include facilitating direct access for exports and temporary admission procedures for equipment used to carry out projects.

In parallel, the Federation of Saudi Chambers has opened a direct channel with the Syrian sovereign fund to follow up on investment opportunities available to the Saudi private sector and support communication with relevant authorities in the Syrian market.

The council was established as Syria prepares for a new phase of reconstruction and development, creating opportunities for the Saudi private sector to participate in investment projects and various economic sectors, drawing on its financing and investment capabilities and its experience in project development.

Since its establishment, the council has begun preparing an action plan for 2025-2030 aimed at strengthening sustainable economic cooperation between Saudi Arabia and Syria, highlighting investment opportunities, supporting strategic partnerships, and facilitating trade and logistics procedures for Saudi companies' exports.

The plan focuses on enabling the Saudi private sector to benefit from reconstruction and development opportunities in Syria by supporting exports, simplifying procedures, and strengthening regulatory frameworks that provide a more favorable environment for investors. It focuses on sectors including infrastructure, trade and export development, real estate development, tourism, industry, and food security.

New Investments

In this context, Mohammed bin Abdullah Abu Nayyan, chairman of the Saudi-Syrian Business Council, said the council includes a number of senior Saudi officials and investors with international business activities, strengthening its ability to support trade and investment relations between the two countries and achieve its objectives.

The Saudi-Syrian Business Council delegation visited the Syrian capital, Damascus, last August, with the participation of 180 Saudi businesspeople. It held joint meetings and more than 15 meetings with government officials, in addition to eight sector-focused meetings and workshops addressing investment opportunities, challenges, and areas of cooperation.

During the visit, the delegation announced the “Sham View” project by Saudi real estate development and investment company Tharaa, with investments exceeding $1 billion. It also launched construction work on the Narcissus Damascus Hotel, owned by Saudi hotel and resort group Boudl.

Business

Iraq Central Bank Devalues Dinar after Mideast War Hurts Oil Exports

An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
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Iraq Central Bank Devalues Dinar after Mideast War Hurts Oil Exports

An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)
An employee arranges stacks of Iraqi dinars at a currency exchange shop in Baghdad on Feb. 14, 2023. (AFP)

Iraq's central bank devalued the dinar currency against the dollar on Wednesday, with the country facing a deepening crisis brought on by the Middle East war.

Crude oil sales account for nearly 90 percent of Iraq's revenue but its exports have been hurt by the outbreak in February of the conflict between Iran and the United States, which choked off the Strait of Hormuz shipping route.

Consumer prices have also risen, while Iraq's foreign currency reserves have fallen by around $20 billion.

The central bank said in a statement late Tuesday that based on a government decision, "it had decided to adopt... a selling price of the US dollar to the public of 1,520 dinars.”

The rate had been fixed at 1,320 dinars since February 2023.

The bank instructed financial institutions to "stop using the previous rate and adopt the new rate as of the start of the business day on October 7,” AFP reported.

Iraq relies heavily on foreign currency generated by oil sales to finance imports, stabilize the dinar, and pay the salaries of public sector employees and retirees.