UAE and South Korea sign agreements in defense, hydrogen cooperation

Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, meets with President Moon Jae-in at Expo 2020 Dubai. (WAM)
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Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, meets with President Moon Jae-in at Expo 2020 Dubai. (WAM)
Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, meets with President Moon Jae-in at Expo 2020 Dubai. (WAM)
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Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, meets with President Moon Jae-in at Expo 2020 Dubai. (WAM)
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Updated 16 January 2022

UAE and South Korea sign agreements in defense, hydrogen cooperation

Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, meets with President Moon Jae-in at Expo 2020 Dubai. (WAM)
  • The UAE is the first leg of the South Korean president’s tour that includes stops in Saudi Arabia and Egypt

LONDON: The UAE and South Korea signed several agreements on Sunday during President Moon Jae-in’s official visit to the Emirates to attend the “Day of Korea” ceremony at Expo 2020 Dubai.
Sheikh Mohammed bin Rashid, UAE vice president and prime minister and ruler of Dubai, praised relations between the two countries and their keenness to further boost bilateral ties in various areas, Emirates News Agency reported.
“The strategic partnership between the UAE and Korea provides many opportunities to enhance cooperation in various fields, including economy, trade, food security, health, culture, space, energy and tourism,” he said, adding the Emirates is South Korea’s top trade partner in the region.
The volume of non-oil trade between the two countries reached $4.8 billion in 2020.

“Prominent strategic projects such as the Barakah Nuclear Energy Plant are proof of the depth of relations between the two friendly nations,” Sheikh Mohammed said. “We also appreciate the active participation of the South Korea pavilion at Expo 2020 Dubai.”
During the meeting, a memorandum of understanding was signed between the UAE's Ministry of Defense and South Korea's Defense Acquisition Program Administration on medium and long-term cooperation in the fields of defense industries and technology.
UAE’s Tawazun Economic Council (Tawazun) signed an MoU with Korea’s LIG Nex1 Co. and two MoUs with Hanwha Systems Co.
Abu Dhabi National Oil Company (ADNOC) signed three agreements with a number of Korean entities, and they include a framework agreement between ADNOC and the Export-Import Bank of Korea.
A joint study agreement was signed between ADNOC, the Korea National Oil Corporation and SK Gas on hydrogen, and another agreement between ADNOC and KNOC on ammonia cargo.
“During the next phase, we plan to draw up plans to further expand cooperation in areas of common interest, as well as explore development opportunities in priority sectors,” Sheikh Mohammed said.
Moon will meet Saudi Arabia’s Crown Prince Mohammed bin Salman in Riyadh on Tuesday and the head of the Gulf Cooperation Council Nayef Al-Hajraf on Wednesday, when he is expected to announce the resumption of Gulf free-trade talks. He will meet Egyptian President Abdel Fattah El-Sisi in Cairo on Thursday, South Korean news agency Yonhap said.


BlackRock, Fidelity among bidders for UAE’s Borouge $2bn IPO: Bloomberg

BlackRock, Fidelity among bidders for UAE’s Borouge $2bn IPO: Bloomberg
Updated 20 sec ago

BlackRock, Fidelity among bidders for UAE’s Borouge $2bn IPO: Bloomberg

BlackRock, Fidelity among bidders for UAE’s Borouge $2bn IPO: Bloomberg

RIYADH: Borouge’s $2 billion initial public offering has drawn interest from big investors, including the world’s largest asset manager BlackRock Inc. and Fidelity.

The UAE-based firm received bids from the two international funds for the share sale that could value it at $20 billion at listing, Bloomberg reported citing unnamed sources.

Borouge had generated orders at 17 times the amount offered as of mid-day May 25, the third day of book-building, which will run until May 30, Bloomberg’s sources noted.

Other sources told Al Arabiya that the total requests reached 21 times coverage, representing almost $40 billion, by the end of the third day on May 25.

Borouge, which is a joint venture between Abu Dhabi National Oil Co. and Austria’s chemical producer Borealis, produces plastics used in a wide range of products.

Representatives for Adnoc and BlackRock declined to comment to Bloomberg on the news.


Petrochemical prices to remain the same for the next two years: Tasnee CEO

Petrochemical prices to remain the same for the next two years: Tasnee CEO
Updated 23 min 19 sec ago

Petrochemical prices to remain the same for the next two years: Tasnee CEO

Petrochemical prices to remain the same for the next two years: Tasnee CEO
  • Prices for propane and butane in Saudi Arabia remained unchanged, as those in Japan rose significantly, where propane prices topped $800 per ton

RIYADH: Petrochemical prices are expected to remain the same through 2022, and likely to continue until 2023, CEO of National Industrialization Co., also known as Tasnee, Mutlaq Al-Morished, said.

Al-Morished told Argaam that petrochemical prices are “very good” for all producers at present, while indicating a marginal decline in some prices.

The price of basic materials such as iron, copper, lead, and aluminum is also high, he added.

The GCC region terminal prices reached $8,000, up from $800-850 earlier, resulting in higher prices for end products.

Prices for propane and butane in Saudi Arabia remained unchanged, as those in Japan rose significantly, where propane prices topped $800 per ton — the highest level in 30 years.

Prices have fallen to $600 per ton today, but they are unattractive to investors building new industries, Al-Morished said.

Established in 1985, Tasnee is one of the largest petrochemical and industrial companies in the Kingdom. It also has interests in metals, industrial services, and environmental technologies.


Saudi recycling firm Tadweeer’s shares soars 30% on market debut

Saudi recycling firm Tadweeer’s shares soars 30% on market debut
Updated 24 min 14 sec ago

Saudi recycling firm Tadweeer’s shares soars 30% on market debut

Saudi recycling firm Tadweeer’s shares soars 30% on market debut

RIYADH: Shares in Saudi Arabia’s National Environmental Recycling Co. soared 30 percent after its debut on the parallel market Nomu on Thursday.

Shares surged in afternoon trading, reaching SR84.50 ($22.53), against an initial public offering price of SR65, as of 12:54 p.m. Saudi time.

Established in 2015, Tadweeer deals with the recycling of electrical and electronic waste in line with the Saudi Green Initiative.


Palm oil analyst Mistry urges Indonesia to resume exports immediately

Palm oil analyst Mistry urges Indonesia to resume exports immediately
Updated 42 min 14 sec ago

Palm oil analyst Mistry urges Indonesia to resume exports immediately

Palm oil analyst Mistry urges Indonesia to resume exports immediately
  • Farmers in Indonesia were already burdened with higher levies and taxes of $575 per ton compared to their Malaysian counterparts who pay $125 per ton, Mistry said

KUALA LUMPUR: Leading edible oil analyst Dorab Mistry on Thursday urged Indonesia to immediately resume exports of palm oil, warning that a halt in shipments pending details of a domestic sales rule could spell economic “doom” for farmers.

Mistry, director of Indian consumer goods company Godrej International, is a prominent figure in the palm oil industry and his market-moving outlooks are closely watched by traders.

In an open letter to the Indonesian government shared with some international media outlets, Mistry said the world’s biggest palm oil producer and exporter was heading to a “calamitous situation” as inventories had already reached historical highs surpassing seven million tons.

“If unrestricted exports do not start before the end of May we foresee a situation where all storage tanks will be full and the industry will grind to a halt,” he said, adding that Indonesian farmers would bear the brunt of this.

Indonesia reopened exports of crude palm oil and its derivatives from May 23 after a three-week ban on shipments in a bid to curtail runaway cooking oil prices.

But President Joko Widodo reinstated a policy of mandatory local sales at a certain price level, and exporters have held back on shipments as they await details on the latest rules.

Farmers in Indonesia were already burdened with higher levies and taxes of $575 per ton compared to their Malaysian counterparts who pay $125 per ton, Mistry said.

“But now they face the incredible situation of not being able to harvest their fruit and instead will be forced to watch it rot on the trees,” he said.

The losses are “inevitable” and would be seen in early June even if exports commence immediately, exacerbated by the start of a boom in production due to good rainfall, Mistry said.

“The export ban has also forced countries to look at their reliance on Indonesian palm and find ways of making soft oils available at a cheaper price,” he said, citing India’s decision to allow duty-free imports of crude soyoil and crude sunflower oil.

“The combination of historical record stocks, full storage tanks, boom cycle in production, poor demand, and restricted exports spells almost certain doom for the Indonesian farmer,” Mistry warned.

He said a “complete economic disaster” for farmers could only be avoided if the government adopted an immediate unrestricted export policy, which he described as a win-win solution for both farmers and buyers alike.

Indonesian government officials did not immediately respond to a request for comment.

The administration of President Joko Widodo has been focused on trying to bring down the price of cooking oil derived from palm oil in the domestic market. 


Saudi Aramco joins with Repsol to build synthetic fuel plant in Spain

Saudi Aramco joins with Repsol to build synthetic fuel plant in Spain
Updated 26 May 2022

Saudi Aramco joins with Repsol to build synthetic fuel plant in Spain

Saudi Aramco joins with Repsol to build synthetic fuel plant in Spain
  • Upon completion in 2024, the facility will have a production capacity of 2,100 tons per year

RIYADH: Saudi Aramco and Spanish energy company Repsol have agreed to jointly build a synthetic fuel plant in Bilbao, using the production technology developed by Johnson Matthey and BP, according to a statement.

The statement issued by Johnson Matthey revealed that the plant will be one of the world’s first to use renewable green hydrogen and carbon dioxide as its only raw materials.

Upon completion in 2024, the facility will have a production capacity of 2,100 tons per year.

According to the statement, the plant will produce a sustainable synthetic drop-in fuel that can be blended for existing road vehicle engines, planes and ships.

“Converting CO2 into synthetic, lower-carbon fuels can meaningfully contribute to the reduction of transport emissions and, through this strategic partnership, we aim to harness innovative technologies that can unlock the full potential of both sustainable fuels and chemicals — and demonstrate their competitiveness,” said Aramco Chief Technology Officer Ahmad Al-Khowaiter.

Adriana Orejas, director of Industrial Transformation and Deep Tech at Repsol said, “The development of Bilbao synthetic fuel, where sustainable synthetic fuel shall be produced, represents an important step on our commitment of being a Net Zero Emission company by 2050, aligned with the climate objectives set out in Paris by COP21.”