Saudi-based Al Salem Johnson Controls keen to explore opportunities in Uzbekistan: CEO

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Updated 18 August 2022

Saudi-based Al Salem Johnson Controls keen to explore opportunities in Uzbekistan: CEO

Saudi-based Al Salem Johnson Controls keen to explore opportunities in Uzbekistan: CEO

JEDDAH: Saudi-based Al Salem Johnson Controls wants to expand operations in Uzbekistan, as the country offers a lot of opportunities for private companies, according to a top official.

Speaking to Arab News on the sidelines of the fourth meeting of Saudi-Uzbek Business Council in Jeddah on Wednesday, Mohanad Al-Shaikh, CEO of Al Salem Johnson Controls, said there are a lot of good synergies between Saudi Arabia and Uzbekistan in various sectors.

“Uzbekistan is focusing on agriculture, petrochemicals, pharmaceuticals. And I think we do have the base to supply many of those industries out of the Kingdom of Saudi Arabia, with the accumulated knowledge and experiences we developed here,” he said.

Al-Shaikh added: “I’m talking mainly about our field, HVAC, industrial refrigeration, the controls, fire suppressions and detections, systems.”

Talking about the opportunities in the refrigeration and air conditioning sector, the CEO noted that Saudi Arabia has the expertise to cooperate and help the knowledge transfer.

“Johnson Controls does have an office in Uzbekistan, and it’s mainly on the industrial refrigeration side. But I would like to see Saudi-made products exported to Uzbekistan. That’s where I see the wonders of opportunities taking place,” he added.

Al-Shaikh said that Saudi Arabia is the second largest market for Johnson Controls globally.

“Saudi Arabia is considered to be the second or third largest operations globally (for Johnson Controls). And we’re talking about a $40 billion company. We would be honored to be supporting Saudi Arabia and that is allowing us to build the right knowledge and expertise in our field,” he further noted.


Oil holds steady on prospect of OPEC+ output cut, weaker dollar

Oil holds steady on prospect of OPEC+ output cut, weaker dollar
Updated 30 September 2022

Oil holds steady on prospect of OPEC+ output cut, weaker dollar

Oil holds steady on prospect of OPEC+ output cut, weaker dollar

SINGAPORE: Oil prices were little changed during Asian trade on Friday, though were headed for their first weekly gain in five weeks, underpinned by a weaker US dollar and the possibility that OPEC+ may agree to cut crude output when it meets on Oct. 5.

Brent crude futures for November, which expire on Friday, inched down 10 cents or 0.1 percent to $88.39 a barrel by 0303 GMT, after losing 83 cents in the previous session. The more active December contract was unchanged at $87.18.

US West Texas Intermediate (WTI) crude futures for November delivery rose 0.1 percent or by 9 cents to $81.32 a barrel, after falling 92 cents in the previous session.

“A deteriorating crude demand outlook won’t allow oil to rally until energy traders are confident that OPEC+ will slash output at the October 5th meeting,” Edward Moya, senior analyst with OANDA, said in a client note.

“The weakness with crude prices is somewhat limited as the dollar softens going into quarter-end.”

Both Brent and WTI are however on track to rise by about 3 percent for the week, their first weekly rise since August, after hitting nine-month lows earlier in the week.

Oil prices were shored up by a drop in the dollar from 20-year highs earlier in the week. A weaker greenback makes dollar-denominated oil cheaper for buyers holding other currencies, improving demand for the commodity.

For all of September, Brent is set to drop by 8.4 percent, down for a fourth month. During the third quarter, Brent has plunged 23 percent, its first quarterly loss since the fourth quarter of 2021.

WTI is set to fall by 9.3 percent in September, also its fourth monthly decline, and it dropped by 23 percent during the quarter, the first quarterly slump since the period ending in March 2020 when COVID-19 slammed demand.

Analysts said the market appeared to have found a floor, with supply set to tighten as the European Union will ban Russian oil imports from Dec. 5. However, the key unknown is how much demand will drop as global growth slows in the face of aggressive interest rate hikes.

“Fundamentally, I still think prices are likely to move higher from here on tightening of Russian sanctions and with low global crude inventories, and the SPR (US Strategic Petroleum Reserve) supplies falling off,” said National Australia Bank commodities analyst Baden Moore.

“I expect OPEC is well positioned to manage supply to offset risks to demand,” he said.

Leading members of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, together called OPEC+, have begun discussing an output cut ahead of their meeting on Wednesday, three people told Reuters.

Russia could suggest a cut of up to 1 million barrels per day, a person familiar with Russian thinking on the matter said earlier this week.

“In August, OPEC+ production was estimated at around 3.37 million barrels per day below target production levels. So in reality, any cut in supply will likely be smaller than whatever figure the group announces,” said ING Economics in a note. 

 


Oil settles lower after hitting $90/bbl as OPEC+ considers output cut

Oil settles lower after hitting $90/bbl as OPEC+ considers output cut
Updated 30 September 2022

Oil settles lower after hitting $90/bbl as OPEC+ considers output cut

Oil settles lower after hitting $90/bbl as OPEC+ considers output cut
  • OPEC+ has begun talks on output cut at Oct. 5 meet and Russia seen suggesting OPEC+ cuts output by 1 mln bpd — source
  • US markets slide on Fed’s aggressive moves to tame inflation; US production to return after shutting for Hurricane Ian

NEW YORK: Oil prices settled lower on Thursday in choppy trading, rising above $90 per barrel and then retreating as traders weighed a worsening economic outlook against potential OPEC+ output cuts next week.

Brent crude futures settled down 83 cents at $88.49 per barrel, after rising as high as $90.12 during the session. US crude futures for November settled 92 cents lower at $81.23 a barrel.

Leading members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have begun discussions about an oil output cut at their next meeting on Oct. 5, three sources told Reuters.

OPEC+, which combines OPEC countries and allies such as Russia, agreed a small oil output cut of 100,000 barrels a day at its September meeting to bolster prices.

Top OPEC producer Saudi Arabia flagged in August the possibility of output cuts to address market volatility. 

Also at the group’s last meeting, OPEC+ members agreed to stick to their forecasts for robust global oil demand growth in 2022 and 2023, citing signs that major economies were faring better than expected despite headwinds such as surging inflation.

Oil demand will increase by 3.1 million barrels per day in 2022 and by 2.7 million bpd in 2023, unchanged from last month, OPEC said in its monthly report.

One OPEC source told Reuters a cut was “likely,” while two other OPEC+ sources said key members had spoken about the topic.

Reuters reported this week that Russia is likely to propose that OPEC+ reduce oil output by about 1 million barrels per day(bpd).

“Right now, the oil market is teetering between the Fed-induced demand destruction and tight oil supplies,” said Ryan Dusek, a director in the Commodity Risk Advisory Group at Opportune LLP.

US stock markets tumbled on worries that the Federal Reserve’s aggressive fight against inflation could hobble the US economy, and as investors fretted about a rout in global currency and debt markets.

“Amid so much uncertainty, seesaw trade may be common over the next week, unless we get more clarity from OPEC+ sources on the likely size of any adjustment and what it means for previous missed quotas,” said Craig Erlam, senior markets analyst at OANDA.

The market also eased as the threat of Hurricane Ian receded with US oil production expected to return in coming days after about 158,000 bpd was shut in the Gulf of Mexico as of Wednesday, according to federal data.

In China, the world’s biggest crude oil importer, travel during the forthcoming week-long national holiday is set to hit its lowest level in years as Beijing’s zero-COVID rules keep people at home while economic woes curb spending.

Crude benchmarks remain on pace to notch weekly gains after a four-week losing streak. Early this week they rebounded from nine-month lows, buoyed by a dip in the US dollar index and a larger than expected US fuel inventory drawdown.

The dollar index dropped again on Thursday, easing off 20-year highs, indicating some more risk appetite from investors.

Further support for oil prices could come from the United States announcing new sanctions against companies that facilitated Iranian oil sales.

“I think traders have almost given up on a nuclear deal being agreed and this announcement from the US appears to be a make or break move,” said Erlam.


Saudi Arabia launches $10bn food security plan: Minister

Saudi Arabia launches $10bn food security plan: Minister
Updated 29 September 2022

Saudi Arabia launches $10bn food security plan: Minister

Saudi Arabia launches $10bn food security plan: Minister

RIYADH: Saudi Arabia, in coordination with its regional partners, has launched a food security action plan with an initial funding of $10 billion to tackle the global food supply crisis, the Kingdom’s minister of environment, water and agriculture said.

Speaking at a meeting of G20 agriculture ministers in Indonesia, Abdulrahman Al-Fadhli said the Kingdom will continue its role in helping stabilize the global food production supply chain.

On the domestic front, he added, the Kingdom has also succeeded in reducing the use of water for agricultural purposes by more than 40 percent, the Saudi Press Agency quoted him as saying.

Al-Fadhli also highlighted the Kingdom’s achievement in the agricultural sector, which according to him, grew by more than 7.8 percent in 2022 compared to the previous year. 

He said the Kingdom is applying modern techniques to boost its agriculture sector and reduce wastage of water.


PIF-owned Savvy aims to transform KSA into gaming hub with $37.8bn investment, says CEO

PIF-owned Savvy aims to transform KSA into gaming hub with $37.8bn investment, says CEO
Updated 29 September 2022

PIF-owned Savvy aims to transform KSA into gaming hub with $37.8bn investment, says CEO

PIF-owned Savvy aims to transform KSA into gaming hub with $37.8bn investment, says CEO

RIYADH: With investments worth SR142 billion ($37.8 billion), Saudi Arabia’s PIF-owned Savvy Games Group seeks to transform the Kingdom into a global gaming hub with world-class gaming companies, said CEO Brian Ward.

Ward was addressing members of the media following the announcement of the company’s strategy by Crown Prince Mohammed bin Salman on Thursday.

The investments will include SR70 billion to take several minority stakes in companies that support Savvy’s game development agenda and SR50 billion to acquire “a leading game publisher to become a strategic development partner.”

Another SR20 billion will be invested in industry partners and SR2 billion will target industry disruptors “to grow early-stage games and esports companies.”

“Savvy Games Group is one part of our ambitious strategy aiming to make Saudi Arabia the ultimate global hub for the games and esports sector by 2030,” the Saudi Press Agency quoted Crown Prince Mohammed bin Salman as saying.

Savvy's CEO Brian Ward

In the press briefing, Ward said: “Our mission will be to lead global investments in the sector.”

He said gaming and esports is the largest entertainment sector with a potential to “exceed $300 billion by 2020 and $400 billion by 2028.”

Ward said Savvy aims to accelerate the growth of the sector in the Kingdom and take advantage of Saudi Arabia’s “unique geopolitical position in the world.”

The PIF-owned company has five independent subsidiaries, including esports arm EFG, as well as Nine66, which "is building an ecosystem for game developers and studios,” and VOV company, which is building gaming and competition venues.

“We intend to make new investments in startups and (established) tech companies,” the top official said.

He also told the media that more details about the company’s acquisition deals and agreements strategy would be announced in the next six months.

Ward said the strategy unveiled on Wednesday seeks to help local gaming companies grow into global players producing world-class games.


UAE In Focus — Damac Properties targets $150m in monthly online sales by 2023

UAE In Focus — Damac Properties targets $150m in monthly online sales by 2023
Updated 29 September 2022

UAE In Focus — Damac Properties targets $150m in monthly online sales by 2023

UAE In Focus — Damac Properties targets $150m in monthly online sales by 2023

DUBAI: Damac Properties has seen significant growth in pure online sales as a result of its fully interactive virtual real estate and communities designed in the metaverse, according to a senior official.

On the sidelines of the Metaverse Assembly in Dubai, Ali Sajwani, general manager of operations at Damac Properties and CEO of D-Labs, said that online-only transactions are accounting for an increasing portion of the company’s real estate activity, approximately 367 million dirhams ($100 million) a quarter.

By mid-2023, the UAE-based developer aims to grow this figure to $150 million per month, according to a statement.

The realty major has invested up to $100 million to develop and monetize a metaverse that could allow potential customers to check into their luxury properties virtually, choose an apartment, explore furniture options and toy with the paraphernalia on offer.

The company's metaverse platform D-Labs will create digital replicas of its top projects, including Damac Hills, Damac Lagoons, Safa by De Grisogono, and Cavalli Tower in Dubai. It will also host other notable projects such as Damac Tower Nine Elms in London and the upcoming Cavalli Residences in Miami.

AD Ports Group welcomes its first international shipment 

AD Ports Group, one of the leading providers of international trade and logistics, announced Thursday the arrival of its first international shipment at Mugharraq Port, according to a statement.

The UAE’s Ministry of Energy and Infrastructure has recognized Mugharraq Port as an international port facility under the provisions of the International Code for the Security of Ships and of Port Facilities.

The port gained international recognition after a series of major upgrades including extending the quay wall and adding additional berths, deepening the facility’s depth to eight meters, and constructing additional Ro-Ro ramps.

Combined with its strategic proximity to Ruwais, Hail, Ghasha, and other key upstream oil and gas projects in the region, Mugharraq Port is well-equipped to meet the demands of international operations and will further solidify its position as an ISPS port in the region, the statement said.

As a premier maritime facility, the port offers a wide range of offshore, oil and gas, general cargo, logistic support, bulk, and break-bulk handling services.

Al Dhafra’s long-term development plan will be supported by the ongoing port extensions and the new international certification.