Crown prince upbeat on growing investments

Updated 08 January 2013
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Crown prince upbeat on growing investments

Crown Prince Salman, deputy premier and minister of defense, yesterday held talks with Commerce and Industry Minister Tawfiq Al-Rabiah and business leaders and underscored the growing foreign investments and trade activities in the Kingdom.
Prince Salman attributed the diversified investments and increasing trade activities to the country’s security and stability and to the wise policies adopted by the government.
The crown prince wished every success for the Council of Saudi Chambers’ programs aimed at strengthening the national economy and accelerating the Kingdom’s development.
Earlier, CSC President Abdullah Al-Mubti briefed the crown prince on the Kingdom’s attractive investment climate and the council’s services for boosting economic development with the support of chambers across the country.
“We also try to strengthen Saudi Arabia’s economic and trade relations with other countries and establish partnership with them,” Al-Mubti told the Saudi Press Agency.
According to the Central Department of Statistics and information, the Kingdom’s gross domestic product is estimated to reach SR 2.72 trillion ($ 727.3 billion) in current prices in 2012, reflecting a growth of 8.6 percent compared to 2011. The private sector is estimated to grow by 11.5 percent in current prices in 2012.
“In real terms, the GDP for 2012 is estimated to grow by 6.8 percent, with the oil sector growing by 5.5 percent and nonoil sector by 7.2 percent,” the Finance Ministry said in a recent statement. In real terms, the public sector is estimated to grow by 6.2 percent and the private sector by 7.5 percent.
Total revenues are projected to be SR 1.23 trillion ($ 330.5 billion) in 2012 and expenditure to be SR 853 ($227.5) billion.
According to Saudi Arabia Monetary Agency's (SAMA) preliminary data, total exports of goods are estimated to be worth SR 1.49 trillion ($ 396 billion) in 2012, representing an increase of 9.0 percent over 2011.
Nonoil exports are estimated at SR 183 billion ($ 48.8 billion), reflecting an increase of about 4.0 percent and representing 12 percent of total goods exported. The trade balance is estimated to record a surplus of SR 1 trillion ($ 268 billion) in 2012, an increase of 10 percent compared to 2011.
The talks were attended by Prince Muhammad bin Salman, special adviser to the crown prince, and Gen. Abdul Rahman Al-Binayan, director general of the crown prince’s office.


OPEC struggles for deal to ease supply cuts as Iran resists

Updated 2 min 54 sec ago
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OPEC struggles for deal to ease supply cuts as Iran resists

VIENNA: OPEC will seek agreement on Friday to raise oil production despite opposition from Iran, which has threatened to block the move as it faces export-crippling US sanctions.
OPEC’s de facto leader Saudi Arabia and non-OPEC Russia have said a production increase of about 1 million barrels per day (bpd) or around 1 percent of global supply had become a near-consensus proposal for the group and its allies.
The Organization of the Petroleum Exporting Countries will be gathering in Vienna amid calls from top consumers the United States, China and India to cool down the price of crude and prevent an oil shortage that would hurt the global economy.
“It will be a hard meeting today. I wouldn’t say all will accept the 1 million bpd proposed,” an OPEC delegate said, adding the group could agree on a lower figure.
Iran, OPEC’s third-largest producer, has so far been the main barrier to a deal as it called on OPEC to reject pressure from US President Donald Trump to pump more oil.
Trump imposed fresh sanctions on Tehran in May and market watchers expect Iran’s output to drop by a third by the end of 2018. That means the country has little to gain from a deal to raise OPEC output, unlike arch-rival Saudi Arabia.
“I don’t think we can reach agreement,” Iranian Oil Minister Bijan Zanganeh said on Thursday.
Saudi Energy Minister Khalid Al-Falih said the overwhelming majority of producers had recommended raising output by 1 million bpd, gradually and on a pro-rata basis.
OPEC and its allies have since last year been participating in a pact to cut output by 1.8 million bpd. The measure has helped rebalance the market in the past 18 months and lifted oil to around $74 per barrel from as low as $27 in 2016.
But unexpected outages in Venezuela, Libya and Angola have effectively brought supply cuts to around 2.8 million bpd in recent months.
Brent oil prices were up 1 percent on Friday.
Falih has warned the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018 and that OPEC’s responsibility was to address consumers’ worries.
“We want to prevent the shortage and the squeeze that we saw in 2007-2008,” Falih said, referring to a time when oil rallied close to $150 per barrel.
Earlier this week, Zanganeh left the door open for a deal, saying OPEC members that had overdelivered on cuts in recent months should comply with agreed quotas. That would effectively mean a modest boost from producers such as Saudi Arabia that have voluntarily cut more deeply than planned
Zanganeh has said that if OPEC returned to regular compliance, the group would raise output by around 460,000 bpd.
Falih also said the real increase would be smaller than the nominal gain of 1 million bpd, meaning a compromise with Iran remained possible.
OPEC sources also said Iran had demanded that US sanctions be mentioned in the group’s post-meeting communique, as Tehran has blamed US measures for the recent rise in oil prices.
The United States, which rivals Russia and Saudi Arabia for the position of world No.1 oil producer, is not participating in the current supply pact.