Kingdom executes $300bn worth of projects defying regional recession

The presentation organized by the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) in Riyadh.
Updated 28 September 2016
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Kingdom executes $300bn worth of projects defying regional recession

RIYADH: Defying the global and regional trends of recession, Saudi Arabia is currently executing projects worth $300 billion, said Fahad Mohammed Al-Hammady, chairman of the National Committee for Contractors at the Council of Saudi Chambers (CSC).
The Saudi government is also supporting several projects, while it is reviewing a large number of projects also.
“Whatever the case may be, a better future for construction section is anticipated,” said Al-Hammady, while speaking at a presentation organized by the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) in Riyadh.
The event was organized in cooperation with the CSC and the Germany’s Messe Munchen to introduce the world’s leading trade fair for architecture, materials and systems called ‘BAU Trade Fair’.
This trade fair, to be attended by a large number of Saudi exhibitors and visitors, will be held in the German city of Munich from Jan. 16 to 21.
A German delegation led by Mirko Arend, deputy director of Germany-based Messe Munchen and Oliver Oehms, Gesalo delegate, made the presentation.
Mark Pey, the newly-appointed general manager for Lufthansa, spoke about the airline’s services.
Referring to the current situation of the construction and contracting sector, Al-Hammady said that “the situation will become better in near future.”
Al-Hammady said that he looks forward for cooperation between the Kingdom and Germany in construction sector within the framework of the Saudi Vision 2030.
Despite the regional economic recession, the spending on projects are still continuing in the Gulf states including the Kingdom, he added.
In fact, the GCC’s construction community should expect that the construction business will bounce back in 2017.
This view has also been supported by Ben Hughes, director of capital projects at Deloitte Middle East, according to a report.
Hughes also noted that the region is tracking comparatively well with the relatively buoyant US economy.
“Clearly, there’s been a slowdown of project awards across the Gulf, and that’s a result of governments undertaking spending reviews,” Hughes has been quoted as saying.
In his presentation, Arend also spoke about the construction sector in his country, and made comparison between the Kingdom and Germany.

German BAU fair

Oehms, on his part, also gave details of the German BAU fair that will present “practice-oriented innovations and interdisciplinary solutions for commercial and residential construction and interior work for both new-buildings and renovation.”
Referring to Lufthansa operations on Saudi-German sector, Mark said: “Lufthansa German Airlines operates 24 weekly flights from Saudi Arabia providing a seamless connection between the key cities of the Kingdom and the airline’s hubs in Frankfurt and Munich.”
With these convenient connections, Lufthansa continues its long standing tradition of facilitating the closest of ties between the business communities of Germany and Saudi Arabia, he added.
Operating from Frankfurt and Munich, Europe’s most punctual hubs, Lufthansa offers business and leisure travelers from the Kingdom a global network with over 200 destinations in 76 countries.
Passengers from the Kingdom will find seamless connections throughout the Lufthansa network including those to the US and Canada with 20 destinations offered from Frankfurt, making Lufthansa the leader in linking the Middle East with the North Atlantic’s most important financial centers.


OPEC nears oil output deal ahead of key Vienna meeting

Updated 1 min 58 sec ago
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OPEC nears oil output deal ahead of key Vienna meeting

VIENNA: OPEC energy ministers expressed optimism Thursday they were nearing a compromise on oil output policy, with Saudi Arabia acknowledging that a big production hike would be “politically unacceptable” to archfoe Iran.
OPEC and non-OPEC partner countries are due to hold crunch talks in Vienna on Friday and Saturday to decide the fate of an 18-month-old supply-cut pact that has cleared a global oil glut and lifted crude prices to multi-year highs.
Saudi Arabia, backed by non-member Russia, is now racing to convince the alliance to raise production again in order to meet growing demand in the second half of 2018.
Adding an extra one million barrels per day to the market “sounds like a good target to work with,” Saudi Energy Minister Khalid Al-Falih said at a seminar organized by the Organization of Petroleum Exporting Countries (OPEC).
Regional rival Iran however is fiercely opposed to unwinding the agreed production curbs, as its oil industry is bracing for fresh sanctions following US President Donald Trump’s decision to quit the international nuclear pact.
Several other OPEC members, including Venezuela and Iraq, are also against major changes to the pact as they are unable to immediately boost production.
Signaling that positions might be softening, Saudi’s Falih acknowledged that “not every country can respond to an allocation of higher production” and said it was important to be “sensitive” to those concerns.
Allowing countries like dominant player Saudi Arabia to make up for the shortfalls of other members “may be a technical solution but it may not be politically acceptable to others,” he said at the Vienna seminar.
As the clock ticks down to the upcoming ministerial meetings, a face-saving compromise appeared to be in the works.
“We hope that there will be an agreement,” Iraqi Oil Minister Jabbar Al-Luaibi told reporters.
“Iraq is trying very hard to narrow the gap between the two blocs.”
UAE Energy Minister Suhail Mohammed Al-Mazrouei added: “I am very optimistic.”
Observers say the participating countries could simply agree to stop exceeding their quotas for cutbacks, and stick to the agreed target of trimming production by 1.8 million barrels per day (bpd).
The 24 nations in the pact, known as OPEC+, are currently keeping more than two million bpd off the market.
Most of the shortfall has come from Venezuela, where an economic crisis has savaged the nation’s petroleum production.
Output has also plummeted in Libya, where fighting between rival factions has damaged key oil infrastructure.