Oil steadies as investors assess omicron’s impact

Oil steadies as investors assess omicron’s impact
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Updated 08 December 2021

Oil steadies as investors assess omicron’s impact

Oil steadies as investors assess omicron’s impact
  • US output up, crude stocks fall modestly

NEW YORK: Oil prices edged lower in choppy trade on Wednesday, taking a breather after gains earlier this week, as investors assessed the impact of the omicron coronavirus variant on the global economy.

The market had a muted reaction to US weekly inventory figures, which showed a smaller-than-anticipated decline in crude stocks and another bump up in overall production, giving credence to expectations that supply will increase in coming months.

Brent crude futures were down 15 cents, or 0.2 percent, to $75.29 a barrel at 10:52 a.m. EDT (1552 GMT). US West Texas Intermediate crude was at $71.94 a barrel, down 16 cents or 0.3 percent.

Brent crude prices have rebounded by over 9 percent since Dec. 1 on signs omicron has had only a limited impact on oil demand, after a 16 percent drop since Nov. 25.

“Around two-thirds of the previous price slide (has) been corrected," Commerzbank said in a note.

"There has been no noticeable slowing effect on oil demand as yet. Even aviation, the sector that should have been hit first, has seen only a marginal decrease in seating capacity.”

The emergence of the variant combined with the US decision to release inventories from its strategic reserve to knock the market back on expectations that supply would outweigh demand by the early months of 2022.

Ultimately, the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, chose to maintain its schedule of boosting supply by 400,000 barrels per day every month — despite fears that the new coronavirus variant would sap demand.

US output, meanwhile, rose to 11.7 million barrels per day in the most recent week, though weekly output figures are volatile. The US Energy Department also said gasoline and distillate inventories rose more than anticipated, while crude stocks fell by a mere 240,000 barrels, less than expected.

“The headline numbers are bearish and the market is not reacting aggressively in either direction,” said Tony Headrick, energy market analyst at CHS Hedging.

The market was also focused on the resumption of talks between Washington and Tehran over Iran’s nuclear program. Western officials have voiced dismay at sweeping Iranian demands. If US sanctions were eased, it could lead to higher exports of Iranian oil, which could add downward pressure on oil prices.

Tensions between Western powers and Russia over Ukraine also remained high after President Joe Biden warned Russian President Vladimir Putin on Tuesday that the West would impose “strong economic and other measures” on Russia if it invades Ukraine, while Putin demanded guarantees that NATO would not expand farther eastward.


Saudi Arabia, Morocco sign deal to enhance cooperation in tourism

Saudi Arabia, Morocco sign deal to enhance cooperation in tourism
Updated 26 November 2022

Saudi Arabia, Morocco sign deal to enhance cooperation in tourism

Saudi Arabia, Morocco sign deal to enhance cooperation in tourism

RIYADH: Saudi Arabia and Morocco signed a memorandum of understanding on Friday to encourage and develop cooperation in tourism, and coordinate efforts to achieve the sustainable development of the industry in both countries, the Saudi Press Agency reported.

The memorandum was signed in the presence of Saudi Minister of Tourism Ahmed Al-Khateeb, and Fatima-Zahra Ammor, the Moroccan minister of tourism, handicrafts, and social and solidarity economy, on the sidelines of the 117th session of the executive council meeting of the UN World Tourism Organization.

Al-Khateeb said: “Saudi Arabia and Morocco enjoy a common commitment to protecting the rich heritage sites and natural marine, mountainous and desert areas in both countries, in addition to their keenness to give priority to youth in their development plans.

“The issue of sustainability occupies an important place in Saudi tourism ambitions, so cooperation with partners who have a similar vision, like Morocco, helps to strengthen the sector in our region and the world as a whole, and contributes to consolidating the sustainability, flexibility, and inclusiveness of the tourism sector for the benefit of people and societies.”

The Moroccan tourism minister said: “The memorandum reflects the strong relations between the two countries and the common vision toward strengthening partnership and raising prospects for cooperation in the tourism sector.

“It will lead to more joint initiatives and the exchange of experiences and best practices, allowing the two countries to develop their capabilities in tourism.”

The agreement will also help to support an increase in training and knowledge-sharing opportunities, and provide new openings for investment.

Saudi Arabia is currently one of Morocco’s largest trading partners in the Arab world. In 2020 the Kingdom invested $26.6 million in its real estate, tourism, and agricultural sectors.


Flurry of R&D cooperation deals signed as Sustainable Partnerships Conference ends

Flurry of R&D cooperation deals signed as Sustainable Partnerships Conference ends
Updated 25 November 2022

Flurry of R&D cooperation deals signed as Sustainable Partnerships Conference ends

Flurry of R&D cooperation deals signed as Sustainable Partnerships Conference ends

RIYADH: More than 50 cooperation and research partnership agreements were signed between universities and various sectors at the Sustainable Partnerships Conference held in Riyadh.

The two-day conference, held under the theme “Research and Innovation Towards A Prosperous Economy” was part of an initiative spearheaded by the Ministry of Education to foster ties between Saudi universities and the industrial and development sectors.

The event hosted 150 ministers, decision-makers, local and international leaders — of which 100 were from the industrial and development sector — and 40 Saudi universities and colleges.

Some 1,000 research products and industrial models for universities were presented, according to the Saudi Press Agency.

On the sidelines of the conference, 40 training workshops specialized in research and innovation were held, along with 25 dialogue sessions, in addition to a presentation of 220 scientific inventions through the “Promising Technologies and Innovations” exhibition for the country’s citizens and graduates of Saudi universities.

The conference also saw the Saudi Minister of Investment Khalid Al-Falih announce a new strategy for research and development would soon be launched in the Kingdom.

Saudi Arabia’s Minister of Industry and minimal resources Bandar Al-Khorayef also addressed the forum, revealing that a budget for research and development will be allocated soon. 

Al-Khorayef pointed out that the innovation strategy will enhance Saudi Arabia’s exports, and will contribute to national gross domestic production. 

According to SPA, the Ministry of Education sought to use the conference — the first of its kind in the Kingdom — to not only strengthen the links between the higher education sector and industry, but also to identify research and innovation needs of national priority and provide effective solutions to them.

The event was held with a growing focus on Saudi Arabia’s R&D sector, as the Kingdom seeks to diversify its economy away from oil in keeping with the Vision 2030 program.

Saudi Arabia is aiming to become one of the top 10 countries in the Global Competitive Index by the end of this decade, increasing from 24th in 2022.


Food delivery orders rise as MENA continues embracing digital economy: Report

Food delivery orders rise as MENA continues embracing digital economy: Report
Updated 25 November 2022

Food delivery orders rise as MENA continues embracing digital economy: Report

Food delivery orders rise as MENA continues embracing digital economy: Report

RIYADH: The appetite for food delivery in the Middle East and North Africa region has continued to grow in 2022 after the pandemic kick-started demand for the services in the region, according to a new report.

According to data in ‘Digital Transformation in MENA 2022’, produced by cloud-based payments platform Checkout.com, over half  — 53 percent — of MENA consumers purchased food online in the past year, with 42 percent consumers saying they are buying food online more frequently this year than in 2021. 

The online food ordering sector has numerous moving parts that need to come together in each transaction, from the restaurants to drivers and aggregators to payment providers. Close collaboration is therefore vital for the many stakeholders, noted Ramzi Alqrainy, chief technology officer at The Chefz, a leading Saudi-based food delivery app. 

“Collaboration allows us to innovate effectively and to reach and serve society in its most inclusive sense. These days, one provider doesn’t need to manage all aspects of a consumer experience from A to Z. We all need to work together. This is the death of ownership,” said Alqrainy. 

The findings fit the trend of the region increasingly embracing digital technology.

Data from the report shows that 91 percent of consumers across MENA bought products online in the past year, with fashion and clothing making up 46 percent of all online purchases in the region. A fifth of consumers across the region purchased retail products online more frequently than last year, with 33 percent shopping more often for fashion and clothing online.  

Paul Carey, executive vice president of Cards & Payments at Al-Futtaim Group said the figures point to a rapidly developing digital ecosystem that allows government agencies, established companies and start-ups to flourish.

“This is particularly evident in payments, where governments have set up regulatory sandbox infrastructure and made it easier for businesses in the region with more flexible visa options and commercial licensing,” he added. 

The survey shows that remittance apps remain the most widely utilized form of fintech in MENA, but as other products increase, so does adoption. 

The report found that 82 percent of consumers in MENA use some form of fintech app in 2022, up from 76 percent in 2021. 

Innovation has been underpinned by solutions such as Visa’s Account Funding Transactions which pull funds from an account and for use on a prepaid card, top up a wallet, or fund a person-to-person money transfer. 

“The secure, reliable, and fast movement of digital money between individuals, businesses and governments is the engine powering today’s global economy”, said Saeeda Jaffar, senior vice President and group country manager for the Gulf Cooperation Council region at Visa.

The findings come from the second phase of Checkout.com’s Digital Transformation in MENA 2022 report. 

Part one, which was released in October, included insights from 15,000 consumers in the region, while the latest publication contains interviews with business leaders in the digital economy.


ACWA Power expands Indonesian portfolio thanks to partnership with state electricity firm

ACWA Power expands Indonesian portfolio thanks to partnership with state electricity firm
Updated 25 November 2022

ACWA Power expands Indonesian portfolio thanks to partnership with state electricity firm

ACWA Power expands Indonesian portfolio thanks to partnership with state electricity firm

RIYADH: Saudi energy firm ACWA Power will work with Indonesia’s state-owned electricity provider to develop battery storage for renewable energy facilities and green hydrogen development in the Asian country.

The firm has announced it signed a Memorandum of Understanding with PT Perusahaan Listrik Negara — known as PLN — at the B20/G20 Summit in Bali and coincided with the state visit of thw Kingdom’s Crown Prince Mohammed Bin Salman to Indonesia.

According to the terms of the MoU, ACWA Power and PLN will jointly investigate several avenues of partnership, including a project study for pump storage for a 600-800MW hydroelectricity facility; investigating the possibility of a 4GW battery energy storage system and the development of a green hydrogen/ammonia facility that is powered by hydroelectricity.  

Paddy Padmanathan, CEO and vice chairman of ACWA Power, said: “As a nation that is fast tracking economic growth, Indonesia is focussed on advancing sustainable development through strategic partnerships. 

“With the signing of this extensive renewable energy and green hydrogen MoU with PT Perusahaan Listrik Negara, we are delighted to extend our collaboration and strengthen our presence in the country. 

“We look forward to partnering with the government in ensuring that its renewable energy goals are realized.”

Indonesia’s National General Energy Plan states that 23 percent of the country’s power should be generated via renewable energy sources by 2025. 

PLN is Indonesia’s sole buyer of electricity produced by independent power projects, including power produced from renewable energy projects. 

As of last year, the enterprise owns or operates nearly two-thirds of Indonesia’s power generation industry, which is approximately 65.5GW of electricity.

Darmawan Prasodjo, president director and CEO of PLN, said: “Dealing with climate change is not only a challenge to preserve the environment, but also a business opportunity. 

“In the future, there will be many PLN agendas in the energy transition that require the collaboration of all parties. ACWA Power and PLN have built a very strong, long-term and productive partnership.”

The agreement comes after ACWA Power and Indonesian energy firm Pertamina New & Renewable Energy signed a joint development agreement on core utilities supplies to Tuban Grass Root Refinery and Petrochemical Project in Java, eastern Indonesia.

This agreement was also signed on the sidelines of the G20 summit.


ROSHN picks up gong for SEDRA development in latest award ceremony success

ROSHN picks up gong for SEDRA development in latest award ceremony success
Updated 25 November 2022

ROSHN picks up gong for SEDRA development in latest award ceremony success

ROSHN picks up gong for SEDRA development in latest award ceremony success

RIYADH: ROSHN, Saudi Arabia’s national real estate developer, picked up the ‘Residential Project of the Year’ award at the Construction Week Middle East 2022 Awards held in Dubai — capping a month of prizes for the firm.

ROSHN won its latest gong for its flagship SEDRA development — located in Riyadh’s northern sector and set to add more than 30,000 residential units to the capital’s housing stock, as well as providing 20 million sq. m. of integrated neighborhoods supported by education, health care, infrastructure, and retail outlet facilities. 

The firm was also highly commended in the ‘Corporate Social Responsibility Initiative of the Year’ category at the awards, held on Nov. 24, and picked up the same ranking in the ‘CSR Initiative of the Year’ section, for the YUHYEEK Zahra Breast Cancer Awareness Campaign during which ROSHN partnered with the Zahra Association to run a nation-wide awareness and support campaign in October.

Those prizes came just weeks after ROSHN picked up prestigious gongs at the Construction Week KSA 2022 Awards.

In addition to winning ‘Developer of the Year’ for its significant contributions to helping transform the Kingdom’s residential sector in line with Vision 2030, ROSHN CEO David Grover was named ‘Real Estate Icon of the Year’ at the prestigious ceremony held on Nov. 9 in Riyadh.

The firm also gained recognition with the title of ‘Highly Commended Female Leader of the Year’, for Group Chief Marketing Officer Ghada Alrumayan, and was shortlisted for ‘Health and Safety Initiative of the Year’. 

Commenting on the awards, ROSHN Group CEO David Grover said, “I am honored to be part of an organization that works day and night to remake and remodel the urban fabric of Saudi Arabia. Not one of these awards would have been possible without our incredibly hardworking team, which is empowering a new generation of Saudi homeowners and boosting overall growth.” 

He continued: “We are humbled that our efforts to build integrated communities with high-quality housing are being recognised and as we continue to be fully committed to bringing Saudis the highest living quality standards in support of the government’s drive to increase homeownership.”

Guided by the Vision 2030, ROSHN strives to increase homeownership in the Kingdom, bringing a new concept of living to the market, but also works to ensure that ROSHN projects and partnerships contribute to quality of life of and benefit of Saudi society at large, according to a press release from the company.