KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition

KAPSARC’s talks and presentations also included the future role of fossil fuels, decarbonization risks and opportunities, renewables, energy economics. (Supplied)
KAPSARC’s talks and presentations also included the future role of fossil fuels, decarbonization risks and opportunities, renewables, energy economics. (Supplied)
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Updated 08 August 2022

KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition

KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition
  • The KAPSARC experts spoke at three key plenary and 11 concurrent sessions to share their insights on current global energy and environmental concerns

TOKYO: A delegation from Saudi Arabia’s energy economics and sustainability think tank, the King Abdullah Petroleum Studies and Research Center, participated in the 43rd International Association for Energy Economics conference in Tokyo last week.

Titled “Mapping the Energy Future, Voyage in Uncharted Territory,” the conference ran from July 31 to Aug. 4, with over 600 attendees.

The KAPSARC experts spoke at three key plenary and 11 concurrent sessions to share their insights on current global energy and environmental concerns, and how to find solutions to help shape future energy policies and encourage climate action.

KAPSARC’s talks and presentations also included the future role of fossil fuels, decarbonization risks and opportunities, renewables, energy economics, electricity markets, transportation and oil market stabilization.

During the plenary session “Climate Change and Decarbonization Challenges: Risks and Opportunities,” KAPSARC Research Fellow Dr. Noura Mansouri said: “Today, we have the opportunity of decarbonization represented in the Circular Carbon Economy, which is a new framework that values all options and encourages all efforts to reduce carbon accumulation in the atmosphere.”

KAPSARC oil and gas market expert, Hamid Al-Sadoon, explained that more investment in the hydrocarbon industry is needed to bridge the potential future gap between energy supply and demand.

“In all likelihood, hydrocarbons are here to stay. Simply because the developing world not only represents a large chunk of the demand, but they also need hydrocarbons to raise the standards of living of their citizens and develop their economies­ — that entails using more fossil fuels to reach parity with advanced nations,” he said.

Tatsuya Terazawa, chairman and CEO of Japanese think tank the Institute of Energy Economics Japan, added: “We need to face the energy challenges to better cope with high energy prices and enhance energy security while at the same time realize our long-term goals of carbon neutrality and develop the necessary supply chains for energy sustainability.” 

KAPSARC President Fahad Alajlan also spoke at the closing plenary.

“The contrast between the discussions we had over the past few days and the discussions we had during COP 26 is stark,” he said. “COP 26 discussions had a prescriptive view on what we all need to do to achieve net zero by 2050 without taking into consideration the more complex nature of nations worldwide. 

“Over the past few days, we have together adopted a more nuanced approach towards collective climate solutions that are holistic and inclusive,” he added.

During his closing remarks, Alajlan invited participants to attend the 44th Annual International IAEE event in Riyadh, which is being organized by KAPSARC and the Saudi Association for Energy Economics and being held on Feb. 4-8, 2023. It will be the first time the IAEE has hosted its annual conference in the Middle East.

KAPSARC has waived conference registration fees for all attendees.


OPEC+ may consider output cut of more than 1 million bpd

OPEC+ may consider output cut of more than 1 million bpd
Updated 02 October 2022

OPEC+ may consider output cut of more than 1 million bpd

OPEC+ may consider output cut of more than 1 million bpd
  • The figure is slightly above estimates for a cut given last week

RIYADH:  The Organization of the Petroleum Exporting Countries and its allies led by Russia, also known as OPEC+, will consider an oil output cut of more than a million barrels per day when it meets on Oct. 5, OPEC sources told Reuters on Sunday.

The figure is slightly above estimates for a cut given last week, which ranged between 500,000 bpd and 1 million bpd.

OPEC+ is meeting in person in Vienna for the first time since March 2020. “It is a meeting that is taking place at a very interesting global time,” one of the sources said.

The output cuts are being considered on the back of a slide in oil prices from multiyear highs reached in March and market volatility. Saudi Arabia first flagged the possibility of cuts to correct the market in August.

Earlier this week, a source familiar with Russian thinking said Moscow could suggest a cut of up to 1 million bpd, while an OPEC source put the likely figure closer to 500,000 bpd. Talks are expected to continue ahead of the meeting.

FASTFACTS

OPEC+ is meeting in person in Vienna for the first time since March 2020.

Saudi Arabia first flagged the possibility of cuts to correct the market in August.

The output cuts are being considered on the back of a slide in oil prices from multiyear highs reached in March and market volatility.

India cuts tax

The Indian government has cut a windfall tax on domestically produced crude oil to 8,000 ($97.99) rupees per ton from 10,500 rupees per ton from Sunday, after a decline in global oil prices.

India has also scrapped an export tax on jet fuel and halved export duties on diesel to 5 rupees per liter from Sunday, a government notification said.

NNPC transaction

Nigeria’s state-owned oil company NNPC Ltd. has bought the marketing business of unlisted OVH Energy, giving it access to 380 fuel stations in Africa’s largest oil producer and Togo, among other assets, the two companies said on Saturday.

OVH Energy Marketing, the owner and operator of Oando branded retail service stations, said the outlets would be rebranded NNPC and full integration is expected by the end of 2023.

The deal also gives NNPC access to eight liquefied petroleum gas plants, three aviation depots and 12 warehouses.

NNPC, which became a commercial entity in July, already owns more than 500 fuel stations across Nigeria and said it would be ready for an initial public offering by mid-next year.


Saudi real GDP expected to rise by nearly 8 percent, say analysts

Saudi real GDP expected to rise by nearly 8 percent, say analysts
Updated 02 October 2022

Saudi real GDP expected to rise by nearly 8 percent, say analysts

Saudi real GDP expected to rise by nearly 8 percent, say analysts
  • Inflation is predicted to be 2.6 percent and 2.1 percent in 2022 and 2023 respectively: Al Rajhi Capital

RIYADH: Saudi Arabia’s budgeted revenues for 2023 are likely to be based on the Brent price at $76 per barrel, said Al Rajhi Capital in its assessment of the Kingdom’s budget figures.  

“For 2023, we believe oil revenues could reach SR754 billion ($200.7 billion) and non-oil revenue at SR417 billion,” said the head of research at Al Rajhi Capital Mazen Al Sudairi.

“Based on our assessment, the government’s 2023 budgeted revenues are likely based on an assumption of brent at around $76 a barrel.” 

Real gross domestic product growth is forecast to increase by nearly 8 percent year-on-year in 2022 and 3.1 percent year-on-year in 2023, according to Al-Rajhi Capital.

Inflation is expected to be 2.6 percent and 2.1 percent in 2022 and 2023 respectively, Al-Rajhi said.

Revised 2022 revenues are mostly in line with estimates, however, the expenditure budget is much higher than from an earlier announcement, it said.

The Kingdom’s Finance Ministry’s preliminary budget statement projected spending to reach SR1.11 trillion next year, with revenue of SR1.12 trillion. 

The 2023 spending budget was raised by 18 percent, with a slight fiscal surplus of SR9 billion expected for 2023.

The world’s largest oil exporter is expected to balance the books in the coming year, having emerged with a quickly developing balance sheet due to the rebound in crude. 

Saudi officials expressed intention to change the heavy reliance on petrodollars and “decouple” the Kingdom’s spending from oil volatility as it puts the country’s economy at the mercy of uncertainty in the oil market. 

Its budget surplus was recorded at SR78 billion in the second quarter of 2022, an almost 50 percent rise from the same time last year. 

Its revenue reached SR370.4 billion whereas expenditure totaled SR292.5 billion in the second quarter of this year, according to the ministry. 

The ministry’s estimates showed that oil revenue stood at SR250.4 billion, signaling an 89 percent year-on-year rise in the second quarter. 

However, the Kingdom’s non-oil revenues only rose by 3 percent to SR120 billion in the second quarter. 

Domestic debt reached SR604.8 billion at the end of June, up from SR558.8 billion in the previous half, showed the ministry data. 

The Finance Ministry’s data showed that the Kingdom’s external debt fell from SR379.3 billion to SR361.8 billion in the same period. 

The objectives of the state’s general budget for the fiscal year 2023 come as a continuation of the process of work to strengthen and develop the financial position of the Kingdom, Finance Minister Mohammed Al-Jadaan said.

“The government attaches great importance to enhancing the support and social protection system and accelerating the pace of strategic spending on Vision (2030) programs and major projects to support economic growth,” Al-Jadaan added.

The Kingdom’s economy has demonstrated its strength and durability by achieving high growth rates, after taking many policies and measures with the aim of protecting the economy from the repercussions of inflation and supply chain challenges, the minister said.


Abu Dhabi Chamber of Commerce forms new board for businesswomen council

Abu Dhabi Chamber of Commerce forms new board for businesswomen council
Updated 02 October 2022

Abu Dhabi Chamber of Commerce forms new board for businesswomen council

Abu Dhabi Chamber of Commerce forms new board for businesswomen council
  • Council enables female entrepreneurs to capitalize on business opportunities

ABU DHABI: The Board of Directors of the Abu Dhabi Chamber of Commerce and Industry has formed a new board for the Abu Dhabi Businesswomen Council, Emirates News Agency reported.

The new board’s mission is to help female entrepreneurs improve their skills, introduce them to relevant laws and policies, and teach them how to take advantage of local and federal government initiatives.

It is part of the chamber’s efforts to help businesswomen and female entrepreneurs in Abu Dhabi contribute to the emirate’s economic growth.

The ADBWC board, chaired by Asma Al-Fahim, is made up of Abu Dhabi Chamber board members as well as successful Abu Dhabi businesswomen such as Nour Al-Tamimi, Dr. Khadija Al-Ameri, Marwa Al-Mansoori and Shaikha Al-Nowais.

“Over the past 50 years, the UAE has placed women’s empowerment amongst its top priorities and supported the Emirati woman to be a key partner in building the UAE,” Al-Fahim said.

She added: “The support of H.H. Sheikha Fatima bint Mubarak, chairwoman of the General Women’s Union, president of the Supreme Council for Motherhood and Childhood, supreme chairwoman of the Family Development Foundation and honorary chairwoman of the ADBWC, played a huge role in women’s development in all fields, especially entrepreneurship. Thanks to H.H. Sheikha Fatima, the Emirati woman is now equipped with all the factors of success to occupy her proper place regionally and internationally.”

Al-Fahim added that the ADBWC is eager to increase communication with businesswomen in Abu Dhabi in order to keep them up to date on the latest economic changes.

Furthermore, Al-Fahim said that the council will launch new initiatives and programs to support the business environment, giving female entrepreneurs the necessary tools to capitalize on business opportunities locally, regionally and internationally.


Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.
Updated 02 October 2022

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

RIYADH: Saudi healthcare provider Mouwasat Medical Services Co. said that it has completed the acquisition of 51 percent of Jeddah Doctors Co. in a deal worth SR102 million ($27 million).

The financial impact of this acquisition is expected to appear in the third quarter of 2022, according to a bourse filing.

Jeddah Doctors Co. is a Saudi closed joint stock company that owns a hospital presently under construction in Jeddah called Jeddah Doctors Hospital.


TASI in green as recession concerns ease: Closing bell

TASI in green as recession concerns ease: Closing bell
Updated 02 October 2022

TASI in green as recession concerns ease: Closing bell

TASI in green as recession concerns ease: Closing bell

RIYADH: The Saudi main index ticked up in its first trading session of October as investor recession fears subsided.

The Tadawul All Share Index ended  0.72 percent higher to reach 11,487; the parallel market Nomu edged 0.34 percent higher to 19,939.

Saudi oil giant Aramco ended with a 0.28 percent decline, while Rabigh Refining and Petrochemical Co. edged up 1.31 percent.

The Saudi National Bank, the Kingdom’s largest lender, fell 0.63 percent, while Saudi British Bank increased by 2.43 percent.

The Kingdom’s most valued bank Al Rajhi gained 1.48 percent, while Alinma Bank gained 1.93 percent.

Saudi Paper Manufacturing Co. decreased by 0.19 percent, after it signed SR166 million ($44 million) agreement with Italy-based Toscotec for a raw tissue paper roll production line.

Retal Urban Development Co. dropped 0.28 percent, after its shareholders approved a cash dividend of SR2 per share for the first half of 2022.

Tihama Advertising and Public Relations Co. declined 1.61 percent to lead the fallers, after the company and UK-based WPP postponed their merger agreement until Oct. 31, 2022.

Middle East Healthcare Co. led the pack of gainers with an increase of 9.93 percent.