Saudi Private Sector Prepares for GCC-Türkiye Forum

Saudi-Turkish investment forum that was recently held in Jeddah (Asharq Al-Awsat)
Saudi-Turkish investment forum that was recently held in Jeddah (Asharq Al-Awsat)
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Saudi Private Sector Prepares for GCC-Türkiye Forum

Saudi-Turkish investment forum that was recently held in Jeddah (Asharq Al-Awsat)
Saudi-Turkish investment forum that was recently held in Jeddah (Asharq Al-Awsat)

The Saudi private sector is preparing to participate in the GCC-Türkiye Economic Forum held in Istanbul between November 11 and 13.

According to released information, the Federation of Saudi Chambers informed all commercial chambers about the Forum, which aims to strengthen economic cooperation between the Gulf Cooperation Council (GCC) countries and Türkiye, and increase trade value.

The Statistical Center for the Gulf Cooperation Council (GCC-Stat) indicated that trade between GCC countries and Türkiye reached $22 billion in 2021.

Trade between Saudi Arabia and Türkiye also increased to $6.5 billion in 2022, up from $3.7 billion in 2021.

The Turkish Minister of Trade, Omer Bolat, announced that trade between Saudi Arabia and Türkiye reached $3.4 billion during the first half of 2023.

The Gulf-Turkish economy highlights several areas: trade, investment, energy, infrastructure, industry, transport, logistics services, tourism, agriculture, and food.

- Businessmen

Many officials, Gulf businessmen, and their Turkish counterparts are expected to participate in the Forum.

GCC Secretary-General Jasem Albudaiwi is scheduled to speak at the Forum.

The Turkish government has recently increased its efforts to strengthen economic relations with Gulf countries, especially Saudi Arabia.

Turkish President Recep Tayyip Erdogan visited Saudi Arabia in July, describing the Kingdom as one of the region's most important countries, with a special place in trade, investments, and contracting services.

More than 200 businessmen and investors accompanied Erdogan's visit, highlighting the Saudi market's importance and economic relations between the two nations.

- Engaging the Private Sector

The Saudi-Turkish Business Council held a meeting in Jeddah on the sidelines of Erdogan's visit.

Speaking at the meeting's onset, Saudi Minister of Investment Khaled al-Falih emphasized Riyadh's keenness to engage the local and foreign private sectors, primarily Turkish entities.

Falih indicated that Vision 2030 established a new phase in all aspects of life in the Kingdom and fostered an excellent economic environment for promising investments.

"One of the most prominent features of the Vision is the keenness to involve the Saudi and foreign private sectors, including the Turkish private sector," he said, explaining that the National Investment Strategy was aimed at enabling diversified investments with a total estimated volume of $3.3 trillion by 2030.

The Turkish Trade Minister emphasized the necessity to enhance bilateral investment and trade, noting the strong bilateral ties.

He noted that the free trade agreement would serve the two sides' interests: "Türkiye and the Kingdom are two countries that have sufficient energy to strengthen relations and work to develop all cultural, commercial, and industrial sectors."

- Red Sea Project

Bolat revealed that Saudi Arabia's investments in his country exceeded $2 billion, which he said confirmed "the confidence of our Saudi brothers in Türkiye."

Saudi Minister of Industry and Mineral Resources Bandar al-Khorayef visited Ankara last August and participated in a Turkish-Saudi roundtable where he expressed his country's confidence in Turkish investors.

Khorayef hoped Turkish investors would take advantage of the investment opportunities in Saudi Arabia.

Last March, Saudi Arabia agreed to deposit $5 billion into Türkiye's central bank through its Saudi Fund for Development.

The decision demonstrates the Kingdom's commitment to supporting Türkiye's efforts to strengthen its economy following the devastating earthquake that hit Türkiye and Syria last February.



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.