Saudi to Identify Challenges Facing Construction Permits for Commercial Buildings

Saudi private sector moves to address challenges in obtaining commercial building permits (Asharq Al-Awsat)
Saudi private sector moves to address challenges in obtaining commercial building permits (Asharq Al-Awsat)
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Saudi to Identify Challenges Facing Construction Permits for Commercial Buildings

Saudi private sector moves to address challenges in obtaining commercial building permits (Asharq Al-Awsat)
Saudi private sector moves to address challenges in obtaining commercial building permits (Asharq Al-Awsat)

Efforts are underway to identify the challenges related to obtaining construction permits for commercial buildings in Saudi Arabia.

Proposed solutions are being developed and shared with the Ministry of Municipal, Rural Affairs, and Housing, in anticipation of presenting the final plan at the periodic meeting of the Executive Committee for Improving the Performance of Private Sector Businesses (Tayseer).

The Federation of Saudi Chambers has urged the private sector, business leaders, and engineering offices to participate in a survey designed to document all observations and opinions on the matter.

This initiative aims to address the obstacles facing the sector during the upcoming period.

In the study, which Asharq Al-Awsat reviewed a copy of, the Federation asked participants to identify challenges that business owners face when obtaining construction permits for commercial buildings.

It also inquired about the government entity responsible for the issue.

The Federation is committed to identifying the challenges that the private sector faces in relation to government procedures, regulations, and legislation on an ongoing basis. Its goal is to remove all obstacles that hinder the expansion of companies and institutions in line with the government's current aspirations.

The Federation plays a pivotal role in enhancing the business environment of Saudi Arabia and surmounting challenges confronting the Kingdom's private sector. It endeavors to invigorate and foster economic sectors through its diverse departments and administrations.

The Federation also contributes to the study of regulations, the development of support programs, and provides support to government agencies in the formulation of various related regulations and decisions.

In 2021, the Saudi government was able to address 62.5% of the challenges facing the private sector in regulations and legislation.

Looking to improve the private sector’s business environment, the Tayseer committee participated in 45 meetings and 12 workshops with the private sector during 2021.

The committee was able to identify over 1,200 challenges facing companies and institutions.

Currently, 37.5% of these challenges are still under study.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.