Saudi investment authority awards licenses to 10 UK firms

AstraZeneca was one of 10 companies granted Saudi investment licenses by SAGIA. (Reuters)
Updated 09 March 2018

Saudi investment authority awards licenses to 10 UK firms

DUBAI: The Saudi Arabian General Investment Authority (SAGIA) on Friday announced that 10 UK businesses have been granted Saudi investment licenses — enabling them to establish operations in the Kingdom or expand their existing presence.
The 10 companies include AstraZeneca, Unipart Rail, ARC Middle East, Dudley College of Technology, Mott MacDonald Middle East, Standard & Poor’s Credit Market and MEMF REPL Cable Accessories.
Ibrahim Al-Omar, governor of SAGIA, said: “The unprecedented program of reforms being implemented in Saudi Arabia is unlocking an exciting range of opportunities for investors in the Middle East’s largest economy.”
He added: “One of SAGIA’s strategic goals is to act as an advocate for investors and enable them to invest and establish their businesses in Saudi Arabia and in its efforts to ease licenses procedures, SAGIA has extended the license period for foreign investment from one year to a period of up to five years, renewable.
AstraZeneca said: “Since 1980, AstraZeneca Saudi Arabia has been committed to improve patients’ access to innovative medicines across the Kingdom, and we believe that the Kingdom’s medical needs and increasing openness to international investment mean there are considerable opportunities in the sector.”
The announcement was made as the visit to the UK by Saudi Crown Prince Mohammed bin Salman drew to a close.
Britain and Saudi Arabia earlier set out an ambition to build £65 billion ($90.29 billion) of trade and investment ties in coming years, Prime Minister Theresa May’s office said on Wednesday, calling the agreement a vote of confidence in the British economy ahead of Brexit.

Oil up on slowing pace of coronavirus, Venezuela sanctions

Updated 56 min 44 sec ago

Oil up on slowing pace of coronavirus, Venezuela sanctions

  • Financial analysts say epidemic is likely to deal a ‘short-term blow’ to global economy

LONDON: Benchmark Brent oil prices rose for a seventh consecutive day after demand worries eased with a slowing of new coronavirus cases in China and supply was curtailed by a US move to cut more Venezuelan crude from the market.

Brent was up 71 cents at $58.46 a barrel at 1510 GMT. The global benchmark has risen nearly 10 percent since falling last week to its lowest this year. US oil was up 53 cents at $52.58 a barrel.

“Those in doubt of the economic impact from the virus should take heed from Apple’s surprise sales warning ... Put simply, this is the surest sign yet of the coronavirus fallout on the global economy,” said PVM analysts in a note.

S&P Global Ratings said it expected coronavirus would deliver a “short-term blow” to economic growth in China in the first quarter, echoing findings by the International Energy Agency.

Official data showed new cases in China fell for a second straight day, although the World Health Organization said there was not enough data to know if the epidemic was being contained.

The oil market price structure is also showing signs that prompt demand for oil is picking up, as the front-month Brent futures market is moving deeper into backwardation, when near-term prices are higher than later-dated prices.

This week, oil prices were also buoyed by a US decision to blacklist a trading subsidiary of Russia’s Rosneft, which President Donald Trump’s administration said provided a financial lifeline to Venezuela’s government.

Hopes that the Organization of the Petroleum Exporting Countries (OPEC) and allied producers would deepen supply cuts also supported prices.

The grouping, known as OPEC+, has been withholding supply to support prices and meets next month to decide a response to the downturn in demand resulting from the coronavirus epidemic.

But in the US, which is not party to any supply cut agreements, oil production has been rising. US shale production is expected to rise to a record 9.2 million barrels a day next month, the Energy Information Administration said.