OPEC says general oil market outlook is positive as energy industry gathers

OPEC says general oil market outlook is positive as energy industry gathers
A 3D printed oil pump jack in front of the OPEC logo. (Reuters)
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Updated 02 March 2021

OPEC says general oil market outlook is positive as energy industry gathers

OPEC says general oil market outlook is positive as energy industry gathers
  • Resilient Asia supports oil demand
  • OPEC+ to meet on Thursday

LONDON: OPEC sees the oil market’s outlook as positive in general and the uncertainty that dominated last year is easing, the group’s secretary general said.
“This is a major turnaround from a year ago,” Mohammad Barkindo was quoted as saying on Twitter on Tuesday.
He added that positive global economic developments and resilient demand in Asia were encouraging.
Barkindo spoke ahead of joint technical committee (JTC) meeting for the Organization of the Petroleum Exporting Countries and its allies led by Russia, a group know as OPEC+.
The JTC reviews oil market supply and demand balances as well as compliance of members of the alliance with the agreed cuts.
“It looks good and healthy,” an OPEC delegate said, referring to the latest supply and demand balance for 2021.
“But there are still some thoughts to be cautious,” he added.
Oil company executives at CERAWeek by IHS Markit said that crude demand will rise over the coming decade and that the fossil fuel will remain a crucial part of the energy mix even as renewables draw increasing attention.
Climate change and renewable fuels are taking center stage at this year’s gathering of energy leaders, investors and politicians from around the globe, with oil companies trying to reorient their portfolios after the coronavirus pandemic eroded demand and caused the loss of thousands of jobs.
The industry scaled back investments and cut budgets as prices crashed in 2020, but investments are likely to rebound by next year, said Lorenzo Simonelli, chief executive officer of oil services company Baker Hughes.
“Hydrocarbons are still going to be essential for providing energy to the world,” Simonelli said. “Especially as you look at the near-term future.”
Oil demand may continue to climb over the next decade even as countries work to comply with the Paris climate agreement’s goals for cutting emissions, said Hess Corp. CEO John Hess.
“We don’t think peak oil is around the corner — we see oil demand growing for the next 10 years,” said Hess.
“We’re not investing enough to grow oil and gas in the future,” he said, saying that prices would need to rise to support that investment.


Saudi military industry delegation meets investors in London defense show

Saudi military industry delegation meets investors in London defense show
Updated 17 September 2021

Saudi military industry delegation meets investors in London defense show

Saudi military industry delegation meets investors in London defense show
  • Officials from Saudi Arabia’s General Authority for Military Industries (GAMI) and Saudi Arabian Military Industries (SAMI) met with a number of major international investors in the fields of defense and military security

RIYADH: Saudi Arabia’s military industry delegation concluded on Friday its participation in the four-day Defense and Security Equipment International (DSEI) trade fair held at the ExCel Center in London with meetings with investors.

Officials from Saudi Arabia’s General Authority for Military Industries (GAMI) and Saudi Arabian Military Industries (SAMI) met with a number of major international investors in the fields of defense and military security from the United Kingdom and European countries, as well as a number of people from other countries interested in the defense and security military industries sector, GAMI said in a statement.

These meetings were attended GAMI Governor Eng. Ahmed bin Abdulaziz Al-Ohali, GAMI’s partners in the sector, as well as Saudi and British officials and stakeholders from the industry and investment sectors.

The UK Minister of defense Ben Wallace and a number of official delegations at the regional and international levels also inspected the Saudi pavilion, learning about the key targets of the military industry sector in the Kingdom, its promising investment opportunities and the pursuit of GAMI to reflect the ambitious vision of the wise leadership aiming at the Saudization of more than 50 percent of spending on military equipment and services by 2030.


Saudi Arabia in negotiations to localize vaccine industry: deputy minister

Saudi Arabia in negotiations to localize vaccine industry: deputy minister
Updated 17 September 2021

Saudi Arabia in negotiations to localize vaccine industry: deputy minister

Saudi Arabia in negotiations to localize vaccine industry: deputy minister
  • The Saudi Ministry of Industry and Mineral Resources is working to transfer technology and localize vaccine industries and production platforms

RIYADH: Saudi Arabia plans to follow up its agreements with Pfizer and AstraZeneca to produce vaccines in the Kingdom with further initiatives to localize the pharmaceutical industries and to become a regional center for these companies, said Deputy Minister of Industry and Mineral Resources Osama Al-Zamil.

The Saudi Ministry of Industry and Mineral Resources, the King Abdullah International Center for Medical Research (KIMAR), and the Pfizer Scientific Foundation signed a memorandum of understanding (MoU) on Tuesday, to build the foundations for the manufacture of viral and genetic vaccines in the Kingdom.

The MoU, signed during the activities of the Riyadh Summit for Medical Technology 2021, held in Riyadh, also includes providing technical support for the establishment of a human stem cell platform.

The ministry is working to transfer technology and localize vaccine industries and production platforms to manufacture, accelerate and provide vaccines in what is known as CDMO, as a basis for building suitable industrial clusters in this promising sector, and this is indeed the core of the agreement signed at the summit with Pfizer, Alzamil told Al Arabiya.


The agreements need a follow up as they aim in the long run to establish the infrastructure, not just direct manufacturing or commercial production, he said.

The first aim is to establish a research center through which different types of vaccines will be produced and clinical trials will be conducted, after which work will be done on manufacturing and commercial production.

There are 40 Saudi factories working in the drug manufacturing sector, and there are three or four factories that are ready to manufacture directly with these companies, he said.

The Ministry of Industry was entrusted with the task of achieving pharmaceutical security in the Kingdom, especially after it became a priority amid the effects of the pandemic on supply chains, Al-Zamil said.

Saudi Arabia wants to be the first choice for international companies working in the field of pharmaceuticals, and its platform for access to the countries of the Middle East.

“We are working to secure our needs in cooperation with government agencies and our international partners,” he said.


Lubna Olayan becomes first woman to head a Saudi foreign business council

Lubna Olayan becomes first woman to head a Saudi foreign business council
Updated 17 September 2021

Lubna Olayan becomes first woman to head a Saudi foreign business council

Lubna Olayan becomes first woman to head a Saudi foreign business council
  • Olayan appointed president of the the Saudi-Swedish Business Council

JEDDAH: Prominent Saudi businesswoman Lubna Olayan has become the first woman to head up a foreign business council in the Kingdom following her approval as president of the Saudi-Swedish Business Council by the General Authority for Foreign Trade.

Mohammed Batterjee and Saud Al-Suleiman were named as her deputies.

Olayan has been a major figure in Saudi business for decades and was named as one of the 100 most influential people by Time magazine in 2005 and has featured in the Forbes list of most powerful women many times over the years, most recently at no. 58 in 2018.

She became chairwoman of the Saudi British Bank in 2019 and was reappointed to a three-year term in January 2020 following its merger with Alawwal Bank to create the Kingdom’s third-largest lender.

Olayan was CEO of the Olayan Financing Company, one of Saudi Arabia’s largest conglomerates, until she stepped down in April 2019, but remains on the board. The company, founded by her father in 1947, is a private multinational engaged in distribution, manufacturing, services and investments.

She thanked the members of the council for their trust in her and her two deputies as they assumed their responsibilities, stating that she will continue to work to improve the council’s work and activate its role in developing inter-economic relations between the two countries.

The 36 Saudi foreign business councils operate under the supervision of the General Authority for Foreign Trade, as well as the umbrella of the Federation of Saudi Chambers of Commerce, with the goal of strengthening economic ties between the Kingdom and friendly states, increasing access to foreign markets for Saudi products, and encouraging foreign investment.


Saudi regulator supports Fintech industry with new regulatory measures 

Saudi regulator supports Fintech industry with new regulatory measures 
Updated 17 September 2021

Saudi regulator supports Fintech industry with new regulatory measures 

Saudi regulator supports Fintech industry with new regulatory measures 
  • Amendments to Financial Technology Experimental Permit Instructions have been approved

RIYADH: Saudi Arabia's financial markets regulator is adding new measures aiming at enhancing the fintech regulatory framework. 

The Capital Market Authority (CMA) announced on Thursday the approval of amendments to Financial Technology (Fintech) Experimental Permit Instructions.

The amendments include adding definitions to clarify the nature of the Fintech Lab and adding instructions for business practice in the Fintech Lab.

The amendments also include updating the application form for the Fintech ExPermit.

"The continuous progress in the technical infrastructure development in Saudi Arabia such as wider implementation of digital identity, data privacy laws, and data classification framework will accelerate the wider adoption of digital services extended by banks and Fintechs," Nejoud Al Mulaik, Head of Saudi Fintech, told Arab News.

Amendments will become effective from the date of their publication, the statement on Saudi Stock Market (Tadawul) said.

 


South Africa, Saudi Arabia seek to boost trade following pandemic dip

South Africa, Saudi Arabia seek to boost trade following pandemic dip
Updated 17 September 2021

South Africa, Saudi Arabia seek to boost trade following pandemic dip

South Africa, Saudi Arabia seek to boost trade following pandemic dip
  • Saudi South African Business Council pledges to boost cooperation in infrastructure development, agriculture, mining and energy, tourism

JEDDAH: South Africa and Saudi Arabia are looking to boost trade between the two countries following a pandemic-hit year that saw imports from the Kingdom fall to a four-year low in 2020.

South African imports from Saudi Arabia slid to $2.69 billion in 2020 from $3.66 billion in 2019 and $5.41 billion in 2018, according to data from the UN Comtrade database. The vast majority of that was made up of oil and fuels ($2.27 billion or 84 percent in 2020), followed by fertilizers at $145.3 million and plastics at $124.5 million.

South Africa imports approximately 40 percent of its oil from Saudi Arabia, according to the EIA.

Far fewer goods went the other way, with Saudi Arabia importing $347.8 million from South Africa last year, down from $423.8 million in 2019 and $423.0 million in 2018.

The Saudi South African Business Council under the umbrella of the Federation of Saudi Chambers, held the Saudi South African business webinar on Thursday, co-organized with the Johannesburg Chamber of Commerce.

The two countries have committed to strengthen their ties by working more closely in sectors such as infrastructure development, agriculture, mining and energy, tourism, and other areas.

“Despite the progress in our relations, we look forward to expanding the scope of our cooperation with South Africa in line with our respective capabilities,” said Chairman of the Saudi-South African Business Council Hisham Al-Amoudi. “The Saudi market has the capacity to host more South African investments, namely in mining, health care, small to medium enterprises (SMEs), agriculture and information technology, among others.”

Al-Amoudi said that a number of measures must be taken to achieve this, including activating the agreements and memorandum of understanding (MOUs) signed between the two countries, increasing activities of the Saudi South African Business Council, “developing programs that support our goals, and enhancing our overall dialogue on topics of mutual interest.”

South African President Cyril Ramaphosa made a state visit to the Kingdom in 2018 to meet King Salman and the Crown Prince Mohammed bin Salman to assess relations, focusing primarily on strengthening economic linkages between South Africa and Saudi Arabia.

Saudi Arabia and South Africa are both G20 countries, and the Crown Prince has met with the South African President on the sidelines of the G20 Summit in Argentina.

“Saudi Arabia is also a large investor in South Africa, especially in the area of renewable energy,” said Al-Amoudi.

“We seek to work with our South African friends to facilitate the access of Saudi products to the South African market, and enhance the Saudi-South African balance of trade,” he said. “I hope that these initiatives will elevate a strong relation to a higher level,” he added.