OPEC warns of trade war ‘risks’ for oil market

OPEC Secretary General Mohammed Barkindo. OPEC has warned about the probable negative impact, on the oil market, of escalating ‘trade tensions’ between the US and China. (Reuters)
Updated 11 July 2018
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OPEC warns of trade war ‘risks’ for oil market

  • OPEC said buoyant world trade in 2017 and 2018 had helped impulse economic growth and therefore demand for crude
  • OPEC: ‘If trade tensions rise further and given other uncertainties it could weigh on business and consumer sentiment’

PARIS: The OPEC cartel on Wednesday warned that global trade tensions could have a negative impact on the oil market by pushing down demand for crude.
In its monthly report, the Organization of the Petroleum Exporting Countries said buoyant world trade in 2017 and 2018 had helped impulse economic growth, and therefore demand for crude.
But this may change further down the line, OPEC said, as the United States and China fired the latest shots in their escalating trade war.
Washington on Tuesday threatened to impose new tariffs on another $200 billion in Chinese goods and Beijing vowed to retaliate.
The latest moves in the trade war between the world’s top two economies came just after tit-for-tat duties on $34 billion in goods came into effect.
According to OPEC, “the re-emergence of global trade barriers has thus far only had a minor impact on the global economy.”
However, “if trade tensions rise further, and given other uncertainties, it could weigh on business and consumer sentiment,” the report warned.
“This may then start to negatively impact investment, capital flows and consumer spending, with a subsequent negative effect on the global oil market.”
OPEC’s latest report comes after the cartel and non-member Russia pledged to boost oil production in a meeting in Vienna last month.
The agreement to hike output came after the price of crude soared earlier this year, hitting $80 per barrel in May.
According to the report, which cites secondary sources, OPEC crude production stood at an average of 32.33 million barrels per day in June, an increase of 173,000 barrels per day over the previous month.
“Crude oil output increased mostly in Saudi Arabia, Iraq, Nigeria, Kuwait and UAE, while production showed declines in Libya, Venezuela and Angola,” the report said.


Dubai eyes stronger business, investment ties with Egypt

Competitive advantage: Dubai’s reputation as a wealth generator and investment stronghold continues to drive the city’s growth. (Reuters)
Updated 23 July 2018
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Dubai eyes stronger business, investment ties with Egypt

  • Dubai’s global reputation as a wealth generator and investment stronghold continues to drive the city’s growth and was a matter of interest to the visiting Egyptian delegates

Dubai has moved to further strengthen the emirate’s business and investment ties with Egypt, following meetings with a high-level Egyptian delegation.

During the discussions held in Dubai, Dubai FDI and Egyptian delegates from the General Authority for Investment and Free Zones appraised the many foreign investments coming into the city as a result of the government’s intensive efforts to create a business-friendly environment.
Dubai FDI (the investment agency of the Dubai Economic Development Department) also took the opportunity to explain its mandate and role in creating a business-appropriate landscape to attract international companies and help stimulate capital growth.
Khalid Al-Boom, Deputy CEO of Dubai FDI, who welcomed the Egyptian officials, said that Dubai and Egypt’s joint efforts and deepening relations constitute a significant boost to the government’s initiative to make Dubai one of the most sustainable and competitive business hubs in the world. Al-Boom also said that the visit would further reinforce government-to-government ties and promote sharing of knowledge of expertise.
He noted that the current favorable business environment would further push a new phase of economic and investment cooperation between the two countries to help realize their growth and development goals.
“We at Dubai FDI are fully committed to continue on the path toward success and optimize Dubai’s transformation and potential to make the emirate’s one of the most stable economies in the Middle East and the world,” he concluded. The Egyptian delegates were introduced to local business, government, and legislative processes and procedures. Dubai FDI officials also discussed promising business opportunities and key services that benefit foreign companies operating in the emirate.
The Dubai Government has rolled out a comprehensive program to help foreign companies interested in starting their business in the city. The visiting delegation toured the Dubai Multi Commodities Center and the Dubai Silicon Oasis Authority, during which they were informed about the institutions’ best practices, development strategies, main service offerings, and major investment opportunities.
Dubai’s global reputation as a wealth generator and investment stronghold continues to drive the city’s growth and was a matter of interest to the visiting Egyptian delegates. They were informed that though Dubai moved away from traditional trading and looked to its natural resources for sustenance in the latter half of the 20th century, revenue from oil was soon complemented and later almost replaced with a knowledge-based and services driven economy.
The innovative businesses which establish themselves in Dubai are supported by the Emirate’s ambition to drive technology, pioneer new innovation and foster thought leadership.
Trade, logistics, financial services, hospitality and tourism, real estate, construction and manufacturing now make up more than 90 percent of business activity in the Emirate.
This diversification, along with Dubai’s strategic location, infrastructure and ease of business philosophy, make it a popular choice for local and international organizations to begin operations and expand into the Middle East.