Inflation rise not caused by traditional factors: FAB chief economist

Special Inflation rise not caused by traditional factors: FAB chief economist
A rise in inflation across the world is not being driven by traditional factors, but due to political reasons, said Simon Ballard, chief economist at the First Abu Dhabi Bank. (AN Photo)
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Updated 18 May 2022

Inflation rise not caused by traditional factors: FAB chief economist

Inflation rise not caused by traditional factors: FAB chief economist

DUBAI: A rise in inflation across the world is not being driven by traditional factors, but due to political reasons, said Simon Ballard, chief economist at the First Abu Dhabi Bank, during the ongoing Top CEO forum in Dubai. 

According to Ballard, some of the factors that contribute to inflation are the ongoing tensions between Ukraine and Russia, supply chain disruptions and lockdown in China due to the Covid-19 pandemic.

He noted that the increase is a double-edged sword that comes as a derivative driven by excessive demand, adding that ongoing inflation is now significantly pushing the costs of daily life. 

 


Algeria to review gas prices with all its clients

Algeria to review gas prices with all its clients
Updated 7 sec ago

Algeria to review gas prices with all its clients

Algeria to review gas prices with all its clients
  • Algeria’s oil and gas earnings are up 70 percent and have reached $21.5 billion in the five first months of 2022

ALGIERS: Algeria is negotiating with all its clients to review gas prices, state oil and gas producer Sonatrach’s CEO, Tewfik Hakkar, told reporters on Sunday.

Hakkar added that the review of the prices is not targeting a single company or country.

The statement comes almost a week after Spain began re-exporting gas to Morocco in reverse flow via the Gazoduc Maghreb-Europe pipeline, marking the first direct flow of piped gas from Europe to Africa.

Spain and Morocco agreed earlier this year to consider using the GME pipeline for reverse flow to the North African country with the gas to be sourced from the global LNG market.

On Nov. 1, Algeria, which has cut off diplomatic ties with Morocco, stopped supplying natural gas to its neighboring country through the GME pipeline.

Algeria is now supplying Spain using the Medgaz undersea pipeline with an annual capacity of 8 billion cubic meters, which does not go through Morocco.

Earnings up

Algeria’s oil and gas earnings are up 70 percent and have reached $21.5 billion in the five first months of 2022, compared to $12.6 billion in the same period last year, an executive at state oil and gas producer Sonatrach told reporters on Sunday.

Along with gas, Algeria is a large oil producer with 12.2 billion barrels of proven oil reserves. The country exports 540,000 barrels per day of its total production of about 1.1 million bpd. All proven oil reserves are held onshore, though offshore exploration is in the early stages.


NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May
Updated 03 July 2022

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

RIYADH: On a macro level, Germany reduced consumption of natural gas by 35 percent in May. Zooming in, Dubai’s DEWA added 700MW of energy production capacity, to reach a total of 14,117 MW. 

Looking at the bigger picture

  • Germany has reduced its consumption of natural gas by 35 percent during the first five months of 2022, compared to the same period last year, Bloomberg reported citing an industry lobby group. Only part of the drop was due to a milder winter, it added. 

Through a micro lens:

  • Dubai Electricity and Water Authority has added 700 MW of energy production capacity, to reach a total of 14,117 MW, according to the Dubai Media Office. 

This includes 600 MW from the Hassyan Power Complex, which runs on natural gas, and 100 MW from photovoltaic solar panels at the 5th phase of the Mohammed bin Rashid Al-Maktoum Solar Park, which DEWA is implementing.

  • The Egyptian Nuclear and Radiological Regulatory Authority has issued a construction license to build the first reactor at Al Dabaa Nuclear Power Plant, according to a statement.

On Egypt’s Mediterranean coast, the El Dabaa site is 320 km west of Cairo. The plant will comprise four VVER-1200 units, like those already in operation at the Leningrad and Novovoronezh nuclear power plants in Russia, and the Ostrovets nuclear power plant in Belarus.


TRSDC signs first JV worth $400m with Al Mutlaq Group

TRSDC signs first JV worth $400m with Al Mutlaq Group
Updated 03 July 2022

TRSDC signs first JV worth $400m with Al Mutlaq Group

TRSDC signs first JV worth $400m with Al Mutlaq Group

RIYADH: The Red Sea Development Co. has signed a joint venture agreement worth SR1.5 billion ($400 million) with Almutlaq Real Estate Investment Co., a subsidiary of the Al Mutlaq Group. 

Under the agreement, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and expected to open in early 2024. 

The island forms part of the first phase of development, and will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a comprehensive retail, dining, and entertainment offering.

The strategic partnership marks the first JV established by TRSDC.

“This joint venture investment reinforces the private sector’s alignment with our commitment to regenerative tourism and sustainable development. Our project naturally lends itself to promising business opportunities, with the ability to leverage the Kingdom’s key strategic assets, and drive economic growth and diversification as outlined by Vision 2030,” said John Pagano, CEO of TRSDC. 

“We are extremely pleased to partner with TRSDC and its best-in-class management team on this exciting and compelling project. We have been studying the giga-projects for some time, and the Red Sea is achieving its vision. The destination is coming to life, and we look forward to welcoming our first guests in 2024,” said Tariq Almutlaq, chairman of AREIC.

Investors’ interest

TRSDC is in discussions with several other investors under a similar framework to invest in The Red Sea Project’s commercial assets, including hotels and resorts, leisure, and retail and dining experiences. Moreover, AMAALA and additional soon-to-be-announced projects in the developer’s expanding portfolio bring with them additional opportunities for investors.

“We are attracting an abundance of third-party investment interest, particularly those focused on ESG who are confident that this is an exciting opportunity and one that they do not want to miss out on,” said Jay Rosen, chief financial officer at TRSDC.

Green financing

The announcement follows TRSDC achieving financial close on its SR14.120 billion ($3.76 billion) green financing earlier this year with four leading Saudi banks (Banque Saudi Fransi, Riyad Bank, Saudi British Bank, and Saudi National Bank). As the first-ever riyal denominated green financing, TRSDC was acknowledged with an award for Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards 2021 plus the Best New Green Loan Financing Project Award at the International Finance Awards 2022.

The Red Sea Project has demonstrated significant progress on the ground, with Phase-1 now more than 50 percent complete and several key assets already fully operational, including a four-star management hotel, on-site offices, and the largest landscape nursery in the region.

TRSDC and AMAALA have awarded over 1,000 contracts worth in excess of SR25 billion. Work is on track to welcome the first guests in early 2023, when the first hotels will open, with the balance of phase one set to complete by early 2024.


Fuel, feedstock prices for Saudi industrial sector to be adjusted from Q4 of 2023

Fuel, feedstock prices for Saudi industrial sector to be adjusted from Q4 of 2023
Updated 03 July 2022

Fuel, feedstock prices for Saudi industrial sector to be adjusted from Q4 of 2023

Fuel, feedstock prices for Saudi industrial sector to be adjusted from Q4 of 2023

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources has decided to adjust the fuel and feedstock prices for the industrial sector from the fourth quarter of 2023, according to a ministry statement to companies.

The prices will be reviewed annually until 2030, it stated.

Price adjustment policy will be applicable to natural gas products, Arab heavy crude oil, ethane, heavy fuel oil, and Arab light crude oil.


UAE-Based Filipino businesswoman receives Presidential Award

UAE-Based Filipino businesswoman receives Presidential Award
Updated 16 min 46 sec ago

UAE-Based Filipino businesswoman receives Presidential Award

UAE-Based Filipino businesswoman receives Presidential Award
  • Pamana ng Pilipino Award, given to Dr. Karen Remo, is awarded to Filipinos overseas who have brought honor to the country through the excellence of their work

LONDON: Dr. Karen Remo, a business leader based in the UAE, has received the Presidential Award, the highest honor bestowed by the Philippine government on Filipinos overseas.

Dr. Remo is the CEO and Managing Director of The Filipino Times and New Perspective Media Group.Founded by Dr. Remo in 2013, The Filipino Times has become the Middle East's largest digital news portal for Filipinos and the UAE's largest free newspaper.She was one of 17 recipients chosen for the "Pamana ng Pilipino Award".  It is given to Filipinos overseas who, by exemplifying Filipino talent and industry, have brought honor and recognition to the country through the excellence of their work.

The award was presented by the Secretary and Chairperson of the Commission on Filipinos Overseas, Justice Francisco Acosta, on behalf of President Rodrigo Roa Duterte.

“In conferring the Pamana ng Pilipino Award to Dr. Karen Remo, the President recognizes her ability to lead, inspire, and influence Filipinos from all over the world while proving that women can be a pioneer in the field of business,” according to the Presidential Awards for Filipino Individuals and Organizations (PAFIOO) Awards Committee.

“Dr. Remo continues to be an inspiring entrepreneur and community leader in the Middle East. She has not only earned the respect of Filipinos and the multinational expat professionals in Dubai but also inspired many women to pursue their careers in business,” the statement continued.

A report by the Commission on Filipinos Overseas (CFO) also commended Dr. Remo's contribution to strengthening economic and social ties between the UAE and the Philippines. “Playing such an important role in the media industry, she fosters a positive relationship between the UAE and the Philippines. Her position has also allowed her to put Filipinos on the center stage,” it noted.

The Philippine Ambassador to the UAE, Hjayceelyn Quintana also endorsed the nomination. “Dr. Remo comes from a community of an estimated one million Filipinos in the UAE. To be a cut above the rest means that the impact of her achievements in the host country is a source of pride for Filipinos not only in the UAE but in the Middle East region as a whole,” Quintana said.

"It is an honor to receive such a prestigious recognition and I am very grateful to the Office of the President, CFO, and the PAFIOO Awards Committee for this award. I have been privileged to work with and help many clients — both in the government and private sectors — in the MENA and Asia-Pacific regions,” Dr. Remo said.

“I am very thankful to our readers and followers who always support and challenge us to do better. It was their trust and support that gave me this opportunity to showcase the passion and dedication of every team member in the NPM Group of companies to be of service and to make a difference,” she said.