Saudi Ministry of Industry affirms protection of local industries from unfair competition

Saudi Ministry of Industry affirms protection of local industries from unfair competition
The ministry is working to create this environment by applying several tools in cooperation and coordination with various government agencies. (File/AFP)
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Updated 07 February 2021

Saudi Ministry of Industry affirms protection of local industries from unfair competition

Saudi Ministry of Industry affirms protection of local industries from unfair competition
  • The ministry indicated that it works through committees and teams and in coordination with the concerned government agencies

The Ministry of Industry and Mineral Resources is working to protect local industries from unfair competition, by enacting policies that contribute to empowering them and increasing their competitiveness, SPA reported.

The ministry stated that this is being done in a manner that does not contradict the Kingdom's obligations arising from its accession to the World Trade Organization (WTO), Gulf and international agreements, in order to create a fair competitive environment and attractive to industrial investments.

The ministry is working to create this environment by applying several tools in cooperation and coordination with various government agencies.

The unfair competition exists in several aspects, including flooding local markets with goods at lower prices than the country of origin, unjustified increase in imports, support provided by the exporting countries’ governments, non-conformity of specifications and standards, in addition to the violation of the standards of origin, as well as the provisions of the competition system and some local regulations.

The ministry indicated that it works through committees and teams and in coordination with the concerned government agencies, such as the General Authority for Foreign Trade; the Saudi for Standards, Metrology and Quality Organization; the Customs Authority; the Food and Drug Authority; and other government agencies related to activating the appropriate protection tools that fall within the powers and responsibilities of each party.

The tools to protect against unfair competition are represented in the application of technical regulations and standard specifications for a number of affected industries, raising the customs tariff for a number of goods to the customs ceilings that are bound by WTO, and the application of the principle of reciprocity on the Kingdom's imports from countries that impose measures or precautionary measures against Saudi exports, in addition to the application of import licenses.

The ministry also emphasized that it is in the process of implementing other protection tools, in coordination with the concerned government entities, to protect the national industry from harmful practices, and to activate the available tools that would contribute to encouraging national industries.


Kuwait’s Boubyan Bank net profits grow by 37%, plans ESG framework

Kuwait’s Boubyan Bank net profits grow by 37%, plans ESG framework
Updated 9 sec ago

Kuwait’s Boubyan Bank net profits grow by 37%, plans ESG framework

Kuwait’s Boubyan Bank net profits grow by 37%, plans ESG framework

RIYADH: Kuwait’s Boubyan Bank net profits rose by 37 percent during the first nine months of 2021 while operating profits recorded a growth of 18 percent to reach 140 million dinars ($145.8 million).

Abdullah Al-Tuwaijri, CEO of personal and digital banking services at the bank, said that fees and commissions were the biggest support for the bank’s performance in the last quarter, as the growth rate exceeded 25 percent, in addition to the financing portfolio, which rose by 18 percent.

In an interview to CNBC Arabia, he said the bank’s current assets have exceeded 7 billion dinars and its market share in individual services sector stands at about 15 percent.

He said the bank plans to expand its digital services with a focus on fintech and also aims to work on developing a framework for environmental, social and governance standards.

He said: “We are still conservative and believe that the economic and operational matters in Kuwait are better, as we noticed during the third quarter business growth, but we still have a conservative view and we are waiting until the end of the year to see the general indicators.”


Oil remains near multiyear highs as energy crunch continues

Oil remains near multiyear highs as energy crunch continues
Updated 4 min 5 sec ago

Oil remains near multiyear highs as energy crunch continues

Oil remains near multiyear highs as energy crunch continues

NEW YORK: Oil edged higher on Tuesday and was near multiyear highs as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world’s biggest energy consumer can meet domestic heating needs.

The Brent crude benchmark rose 34 cents to $84.67 a barrel by 11:11 a.m. EDT (1511 GMT). US West Texas Intermediate futures rose 46 cents to $82.90 a barrel.

Prices have been climbing the last two months. Since the start of September, Brent has risen by about 18 percent, while WTI has

gained by around 21 percent. “Supply-demand balances show that the market is experiencing a supply deficit, which is spurring deep inventory draws and driving prices upward,” said Louise Dickson, senior oil markets analyst at Rystad Energy.

“This market tightness is expected to extend into most of 2022, and crude oil demand will only catch up with crude supply by the fourth quarter of next year.”

With temperatures falling as the northern hemisphere winter approaches and heating demand increasing, prices of oil, coal and natural gas are likely to remain elevated, traders and analysts said.


Greece, Egypt, Cyprus sign energy deal with Europe in mind

Greece, Egypt, Cyprus sign energy deal with Europe in mind
Updated 19 October 2021

Greece, Egypt, Cyprus sign energy deal with Europe in mind

Greece, Egypt, Cyprus sign energy deal with Europe in mind
  • The deal concerns the "interconnection" of the neighbours and transfer of electricity to their respective networks, Greek prime minister said
  • The announcement comes as countries around the world face an energy crisis, with the prices of natural gas, oil and coal rising

ATHENS: Greece, Cyprus and Egypt on Tuesday signed an electricity agreement that could include Egyptian solar power and potentially supply power to other European countries.
The protocol was signed during a meeting between Greek Prime Minister Kyriakos Mitsotakis and the presidents of Egypt, Abdel Fattah El-Sisi, and Cyprus, Nicos Anastasiades, in Athens.
The deal concerns the “interconnection” of the neighbors and transfer of electricity to their respective networks, Mitsotakis said.
“As energy sources diversify, Egypt can become a supplier of electric power, which will be mainly produced by the sun, and Greece will become a distribution station for Europe,” Mitsotakis added.
The announcement comes as countries around the world face an energy crisis, with the prices of natural gas, oil and coal rising.
El-Sisi said the agreement aims to “reinforce energy cooperation.”
In a joint statement, the Mediterranean neighbors said: “This interconnection reinforces cooperation and energy security, not only between these three countries but also with Europe.”
“It will be a way to transfer important quantities of electricity from and to the eastern Mediterranean,” the statement said.
The three countries also expressed their intention of exploring and transferring natural gas in the region.
Energy cooperation between eastern Mediterranean countries regularly irritate Turkey, which has its eyes set on oil and natural gas deposits in the region.
“Unfortunately, Ankara does not understand the message of the times and its aspirations to the detriment of its neighbors are obviously a threat to peace in the region,” Mitsotakis said.
Tensions soared last year when Turkey sent an exploration ship and small navy flotilla to conduct research in waters that Greece considers its own under treaties.
The Turkish foreign ministry later Tuesday lambasted the joint statement as another example of the “hostile policy” toward Turkey and Turkish-held northern Cyprus.
While Ankara supported energy projects which “increased cooperation between regional countries,” the ministry stressed that Turkish and northern Cyprus’ rights and interests “should not be ignored by these projects.”
Cyprus has been divided since 1974 when Turkey seized the north in response to a coup orchestrated by an Athens-backed junta seeking to annex the island to Greece.
Despite attempts this year to normalize relations with Egypt after falling out in 2013, the Turkish ministry also criticized Cairo’s cooperation with Greece and Cyprus.
“The inclusion of Egypt indicates that the Egyptian administration has not yet grasped the real address where it can cooperate in the eastern Mediterranean,” it added in a written statement.


Saudi Arabia raises penalty for violating finance companies law

Saudi Arabia raises penalty for violating finance companies law
Updated 19 October 2021

Saudi Arabia raises penalty for violating finance companies law

Saudi Arabia raises penalty for violating finance companies law

RIYADH: Saudi Cabinet on Tuesday approved raising the penalty for violating the Finance Companies Law to not more than SR2 million ($0.53 million), the Saudi Press Agency reported.

Following the amendment, the penalty shall be SR2 million or 10 percent of the value of finance to which the violation was carried out, or imprisonment for a period of not more than two years, or one of those two penalties.


Route to net zero emissions will cost global economy $5tr annually: Report

Route to net zero emissions will cost global economy $5tr annually: Report
Updated 19 October 2021

Route to net zero emissions will cost global economy $5tr annually: Report

Route to net zero emissions will cost global economy $5tr annually: Report

A report from Bank of America has warned reaching net zero will cost the global economy $5 trillion annually for the next 30 years.

On the eve of the UN’s COP26 environmental conference in Scotland this month, where countries who signed the 2015 Paris Agreement to reduce carbon emissions will review their progress and outline policies to achieve net zero by 2050, the report offers a stark reminder of the cost of transitioning to greener energy.

However, the report also warned that failing to address climate change could lead to the loss of 3 percent of global gross domestic product annually this decade, amounting to around $69 trillion by the end of this century.

A key priority at COP26 is for governments to agree on specific cash-backed policies that will accelerate the transition toward net zero, including a commitment to phase out the use of coal, sharply reduce deforestation, speed up the transition to electric vehicles and green heating systems, and implement fiscal measures to encourage increased investment in renewable energy.

In addition, the summit, which is taking place in Scotland’s former industrial heartland of Glasgow, will also attempt to get western governments to make good the $20 billion a year shortfall in helping emerging nations transition to greener energy.

Developed nations had agreed to provide $100 billion per year to emerging nations. Not only have they fallen short on that commitment, but the UN wants agreement in Glasgow to increase that funding further.

The UN Environment Programme estimates the cost of transition in emerging countries will reach $140-300 billion by 2030, and $280-500 billion by 2050. San Francisco based think tank, the Climate Policy Initiative, estimates Africa on its own may require up to $3 trillion by the end of this decade.

Against this backdrop, Bank of America estimates the total cost of transitioning will be $150 trillion, at least four times the amount that global COVID-19 stimulus packages are forecast to cost governments this decade.

The report states financing the trillions of dollars of investment needed for net zero will require “significant changes in capital allocation.”

As Arab News reported last week, the World Resources Institute said G20 countries still account for 75 percent of global greenhouse gas emissions. Meanwhile, a report by Moody’s Investors Service revealed financial institutions in the G20 were carrying almost $22 trillion of exposure to carbon-intensive sectors.

However, Bank of America said the use of labelled bonds and loans to address environmental issues is expanding rapidly.

It is forecasting more than $1 trillion in labeled bond issuance this year, with $900 billion in green, social and sustainability bonds and a further $100 billion in sustainability-linked bonds.

The report adds that labeled bonds already account for more than 20 percent of European high grade and European high yield issuance for corporates this year, driven by environmental, social and governance (ESG) concerns and EU regulations, more than twice the rate in 2020.

However, while the report is bullish about the ability of Western governments to pay for greening the planet, the report notes that while around 50 countries, along with the EU — which between them account for almost 75 percent of CO2 emissions — have committed to reaching net zero, only 10 countries have so far enshrined that commitment in legislation.

The report adds while a number of the countries have pledged to long-term targets, centered on 2050 or the end of the century, they have failed to make 2030 commitments in line with the Paris Agreement.

The good news? Well, Bank of America’s cost estimate is considerably lower than an earlier forecast, published in the summer, by BloombergNEF’s closely watched New Energy Outlook, which put the figure at $173 trillion, of $5.8 trillion annually.

Progress of sorts as the world heads to Glasgow.