MOSCOW: Russian Foreign Minister Sergei Lavrov met Saudi counterpart Prince Faisal bin Farhan in Riyadh on Tuesday and both men praised the level of cooperation inside OPEC+, the Russian Foreign Ministry said.
The comments were issued amid Western media reports that some members of OPEC+, an alliance of OPEC members and their allies, were considering removing Russia from the group.
“They noted the stabilizing effect that the tight cooperation between Russia and Saudi Arabia has on world markets for hydrocarbons in this strategically important sector,” the ministry said in a statement on its website.
There was no immediate comment from Saudi Arabia outside of business hours.
Lavrov arrived in Saudi Arabia on Tuesday and is expected to meet with other foreign ministers from the Gulf Cooperation Council states, Saudi state media reported.
OPEC+ is set to stick to an oil production deal agreed last year at its meeting on June 2 and raise July output targets by 432,000 barrels per day, six OPEC+ sources told Reuters last week, rebuffing Western calls for a faster increase to lower surging prices.
OPEC+ was formed in 2016 and assigned production cuts among its members to keep oil markets stable and act against price collapses, particularly as economies shrank sharply during the COVID pandemic.
Russia is a leading member of OPEC+, along with some ex-Soviet states and other countries.
The Wall Street Journal, quoting OPEC delegates, suggested that exempting Russia from OPEC+ could potentially pave the way for other producers to pump significantly more crude as sought by the US and European nations.
Lavrov’s meeting with his Saudi counterpart came shortly after the EU agreed on significant cuts to imports of Russian crude as part of its latest sanctions linked to Moscow’s invasion of Ukraine.
GCC needs to secure its investment landscape: Report
Call to focus on frontier sectors based on emerging technologies to attract FDI
Updated 07 August 2022
CAIRO: Real and perceived political risks, the lack of focus on non-oil sectors, laxity in regulatory policies and a restrictive business environment are some of the factors impeding the growth of foreign direct investment in the Gulf Cooperation Council region, said a recent study.
According to Oliver Wyman’s recent report titled “De-risking the Investment Landscape: High-impact FDI Policies for the GCC,” the region needs to prioritize regulations and policies to de-risk investment.
This approach should help them attract additional FDIs, the report recommended.
“The best way to attract FDI may be to focus on frontier sectors, which are based on emerging technology, generate high growth, and have few incumbent players to disrupt,” the report stated.
The policies adopted earlier in the GCC were unfocused and aimed to attract all possible investments in all potential sectors, which proved unsuccessful, according to the report.
Although most Gulf countries have been proactive in developing initiatives to stimulate FDI, few have successfully attracted foreign investment in the region.
“Historically, FDI into GCC economies has fluctuated with the rise and fall of commodity prices,” explained Wyman’s report. “However, it has failed to materialize as a consistent driver of economic opportunity in non-oil economic sectors.”
• Oman and Bahrain are the only two GCC economies that saw FDI inflows over outflows in each of the years from 2016 to 2021.
• While Kuwait registered FDI outflows totaling $3.6 billion in 2021, it saw a sharp drop from $8 billion in the previous year.
“With such readily available domestic capital, many GCC states have historically not needed to prioritize FDI as a source of development finance,” it added.
The report further revealed that GCC states are becoming increasingly aware of the benefits of FDI and its potential impact on their economies, which could enhance productivity.
Foreign investment provides a good source of finance, promotes interactions of local suppliers and consumer markets, and stimulates human capital by training local workers and employing foreign ones.
As stated by the report, an increased level of private competition, an enhancement in technological know-how and a surge in cross-border activity are additional favorable consequences that arise from increased FDI.
The UN Conference on Trade and Development recently released the “World Investment Report 2022,” which showed that Saudi Arabia and the UAE, two of the largest economies in the GCC, saw 2021 FDI outflows exceed FDI inflows by $4.6 billion and $1.9 billion, respectively.
The difference for all GCC members stood at $6.4 billion, although a noticeable improvement from 2019 and 2020, where the differences were $11.1 billion and $8.3 billion, respectively.
Oman and Bahrain are the only two GCC economies that saw FDI inflows over outflows in each of the years from 2016 to 2021, according to the UNCTAD report.
In comparison, FDI inflows to Indonesia in 2021 surpassed the outflows by $16.5 billion. Similarly, FDI inflows to Vietnam and Malaysia trumped outflows by $15.4 billion and $6.9 billion, respectively, UNCTAD data show.
On the other hand, Saudi Arabia witnessed the highest FDI outflows in the GCC in 2021. It recorded $23.9 billion in net outflows in 2021 compared to only $4.9 billion in 2020. It is worth mentioning the Kingdom’s FDI inflows stood at $5.4 billion in 2020.
The UAE came in second with $22.5 billion worth of FDI outflows in 2021 compared to $18.9 billion the year before, the UNCTAD data showed.
While Kuwait registered FDI outflows totaling $3.6 billion in 2021, it saw a sharp drop from $8 billion in the previous year, the report stated.
Saudi Arabia targets $3.3tr of cumulative investments till 2030, says deputy minister
Saudi Arabia’s regulatory transformation is directly impacting the base economy, Al-Shahrani says
Updated 07 August 2022
RIYADH: Saudi Arabia has enacted over 600 economic reforms since the launch of the Vision 2030 blueprint in a bid to attract SR12.4 trillion ($3.3 trillion) of cumulative investment and SR1.8 trillion in foreign direct investment inflows between 2021 and 2030 as part of the National Investment Strategy, said a deputy minister from the investment ministry.
Speaking to Arab News Saad Al-Shahrani, the acting deputy minister for investment promotion in the Ministry of Investment of Saudi Arabia, said the Kingdom achieved an 18 percent increase in foreign direct investment in 2020, even as the global FDI declined by 35 percent due to the pandemic.
FDI flow in 2021 increased by 257 percent compared to 2020 largely driven by a SR46.5 billion infrastructure deal closed by Aramco with a global investor consortium in Q2 2021.
If Aramco's huge deal is excluded, the Kingdom attracted SR5.3bn in Q2 last year.
Al-Shahrani added that the NIS launched in 2021 is a blueprint for turning the Kingdom into a global hub for business and talent.
During the interview, the minister revealed that FDI flow in the first quarter of 2022 increased 10 percent to SR7.4 billion compared to the same period last year.
He further stated that NIS helped MISA achieve 49 investment deals valued at SR3.5 billion in the second quarter of 2022, creating 2,000 jobs across industries.
“These figures are a testament to the sound execution of the government’s strategy and the impact of new reforms, initiatives and investment opportunities,” said the deputy minister.
He added: “The Kingdom has achieved remarkable progress in many economic and investment indicators, ranking third in Ease of Protecting Minority Investors Index out of 132 countries, for the year 2021.”
Fastest growing among G-20 countries
The deputy minister further noted that the Kingdom achieved the top spot among 22 countries in the May 2022 Ipsos’ Global Consumer Confidence Index.
Citing the International Monetary Fund’s World Economic Outlook 2022, Al-Shahrani said that the Kingdom is now the fastest-growing nation among the Group of 20 countries, with a growth rate of 7.6 percent.
“Saudi Arabia’s regulatory transformation is directly impacting the base economy. Alongside healthy demand and investor interest in the oil sector, our non-oil economy has shown strong growth,” he added.
The deputy minister said that flash estimates of real growth in the gross domestic product in the second quarter showed 11.8 percent year-on-year growth, the highest rate since 2011, supported by the growth in real GDP of oil and non-oil activities by 23.1 percent and 5.4 percent, respectively.
Industrial production on the rise
Commenting on the rise in Industrial Production Index, Al-Shahrani said: “The IPI expanded by 24 percent year on year in May 2022, with manufacturing growing by over 28 percent. These figures are a direct consequence of the government’s active diversification efforts.”
He also asserted that the Kingdom will become one of the world’s most competitive economies and attractive investment destinations by 2030.
The deputy minister further noted that digital transactions are rising in Saudi Arabia, aligning with the government’s goal of having 70 percent of all transactions are digital by 2025.
“Policymakers have listened to the needs of investors and have responded appropriately to create an investment ecosystem that rivals the best in the world,” he continued.
Saudi Arabia’s future is tourism
The deputy minister further conveyed that tourism will soon become one of the prime drivers of the Saudi economy as the economic diversification effort continues.
He revealed that the Kingdom has already issued over 3,500 tourism investment licenses, a crucial leap to achieving 10 percent of the national GDP from tourism by 2030.
Al-Shahrani added that the Kingdom will welcome over 100 million tourists by 2030 and generate one million jobs in the sector.
“NEOM, The Red Sea Project, AlUla, Soudah, AMAALA and Diriyah Gate are massive opportunities for investors,” he continued.
The deputy minister further divulged that the Kingdom’s flag carrier SAUDIA will add 94 new destinations to bring visitors to the Kingdom by 2030.
Apart from tourism, MISA is also signing deals with companies in the renewables, logistics, and pharmaceutical sectors, the deputy minister added.
“It is quite clear that the headwinds souring global investor appetite are not blowing in the direction of Saudi Arabia. Government strategy, inspired leadership, talent at every level, well-executed reforms and a clear vision for the future have combined to make the Kingdom an investment powerhouse,” Al-Shahrani said.
Dubai received 7.12m international overnight visitors in H1 20
Western Europe accounted for 22 percent share
Updated 07 August 2022
DUBAI: Dubai attracted 7.12 million international overnight visitors between January and June 2022, an increase of more than 183 percent compared to the same period in 2021, according to the latest data from its Department of Economy and Tourism.
The figure puts the city on track to meet its tourism targets for 2022.
“The vision of His Highness Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, to make Dubai the city of the future and the world’s best place to live, work and invest in has resulted in a resurgence of Dubai’s tourism sector,” said Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum. “The growth in tourists reflects the resilience and dynamism of the emirate’s economy. His Highness’s vision has helped Dubai create a strong and stable economic foundation and a dynamic business ecosystem, enabling it to become a leading global hub for diverse sectors.
“The rapid rise in international tourist arrivals puts Dubai on track to achieve its ambitious target of becoming the world’s most visited destination. In the years ahead, Dubai will continue to develop itself further as a destination that offers compelling value to international travelers.”
The number of tourists recorded in the first half of the year was close to that achieved in the first six months of 2019, which saw 8.36 million tourists arriving in Dubai.
Western Europe accounted for 22 percent of the total international visitors in the first six months of 2022. Visitors from the MENA region and Gulf Cooperation Council accounted for 34 percent, followed by South Asia with a 16 percent share.
The geographic spread reflects Dubai's strategy of attracting visitors from a diverse range of countries and visitor segments, mitigating the risks associated with over-reliance on any one region.
Between January and June 2022, the average hotel occupancy rate was 74 percent, one of the highest in the world.
The hotel industry outperformed pre-pandemic levels in all key metrics, including occupied room nights, average daily rate, and revenue per available room.
The Dubai government said the highly encouraging industry performance was primarily due to its hugely successful six-month-long Expo 2020 Dubai, which had attracted 24 million visitors by the time it ended on March 31.
It also attributed the industry performance to the many events the city had hosted, including the Dubai Shopping Festival, Dubai Food Festival, the World Government Summit, Finance Blockchain Week, and the Dubai International Boat Show.
DOHA: Qatar’s Central Bank foreign reserves and hard currency liquidity rose 2.79 percent year-on-year in July to 211.325 billion riyals ($57.74 billion), the Gulf state’s official news agency QNA reported on Sunday.
According to FocusEconomics’ report, Qatar’s gross domestic product per capita may exceed $100,000 in 2026 as the national economy is expected to pick up steam in the years ahead.
The country’s GDP per capita in 2026 will be $101,816, it estimated.
National GDP has been estimated by FocusEconomics to reach $217 billion this year.
The Qatar Central Bank hiked rates by 50 basis points in July, diverging from the Federal Reserve’s 75 basis points hike, the researcher said.
Inflation is expected to average almost double its 2021 level this year due to recovering demand and higher commodity prices.