Indonesia seeks Saudi investments in nickel to boost e-vehicle production

Exclusive Indonesia seeks Saudi investments in nickel to boost e-vehicle production
Arsjad Rasjid, chairman of the Indonesian chamber of commerce, spoke to Arab News on the sidelines of the Future Investment Initiative forum in Riyadh. (AN Photo)
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Updated 02 November 2022

Indonesia seeks Saudi investments in nickel to boost e-vehicle production

Indonesia seeks Saudi investments in nickel to boost e-vehicle production
  • The southeast Asian country supplied more than 40 percent of the world’s nickel, the main mineral used in car batteries
  • Indonesia was seeking to create synergies with the Middle East

RIYADH: Indonesia was looking to exchange resources with Saudi Arabia to boost the production of electric vehicles and strengthen energy cooperation, an Indonesian business leader has revealed.

Speaking to Arab News on the sidelines of the Future Investment Initiative forum in Riyadh, Arsjad Rasjid, chairman of the Indonesian chamber of commerce, said the southeast Asian country supplied more than 40 percent of the world’s nickel, heavily used in e-vehicle batteries, and had an array of energy facilities.

“This is where Saudi Arabia, with the capital and technology, and Indonesia can work together,” he added.

“There is interconnectivity here on the level of electric vehicle ecosystems that can be synergized between Saudi and Indonesia.”

He pointed out that with the shifting global supply chains against the backdrop of the current geopolitical scene, Indonesia was seeking to create synergies with the Middle East.

In November, Indonesia will host the G20 and B20, which will bring together world leaders, policy makers, and international businesses, in what Rasjid called “a great opportunity to create ecosystems and supply chains” and boost Saudi investment in Indonesia.

“What we want to see is not only how Saudi Arabia will invest in Indonesia, but also how Indonesian businesses will be able to participate in investment in Saudi,” he added.

Hajj and Umrah pilgrimage, he noted, was also another area of cooperation that Indonesia, as the world’s most Muslim populated country, was seeking to strengthen with the Kingdom.

The three-day FII gathered more than 6,000 participants – from policymakers, investors, entrepreneurs to young leaders – for discussions on topics ranging from geoeconomics to gaming.


Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause
Updated 12 sec ago

Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause

BENGALURU: Gold slipped on Monday as the dollar firmed after strong US payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June, according to Reuters.

Spot gold was down 0.2 percent to $1,944.59 per ounce by 12:46 p.m. Saudi time, close to its lowest level since May 30. US gold futures shed 0.6 percent to $1,958.60.

“Gold bulls’ shoulders slumped after yet another red-hot headline nonfarm payroll print fueled a rebound in the dollar,” said Han Tan, chief market analyst at Exinity.

“For the immediate term, spot gold is testing its 100-day moving average for support.”

Gold dropped more than 1 percent on Friday after data showed the US economy added 339,000 jobs last month, above estimates of 190,000.

On Monday, the dollar index was up 0.2 percent, making greenback-priced bullion less affordable for overseas buyers. 

Benchmark US yields meanwhile were near a one-week high.

But providing a floor for bullion prices, the chances of the Fed holding interest rates at their current level at its June 13-14 meeting were pegged at 79.4 percent, according to the CME FedWatch Tool.

Non-interest-bearing bullion tends to become less attractive in a high-interest rate environment.

“To see higher gold prices, we need to see the Fed getting more dovish, which likely requires weaker economic data,” said UBS analyst Giovanni Staunovo.

Global shares rose as investors bet on a rate-hike pause and after Saudi Arabia pledged the biggest reduction in its oil output in years.

Silver fell 0.4 percent to $23.50 per ounce, platinum rose 0.6 percent to $1,009, and palladium gained 0.3 percent to $1,424.15.

Amid prospects for an economic slowdown in Europe and the US, an extended period of softening industrial demand could remove some support for silver prices from factors such as growth in solar cell production, Heraeus said in a note.


Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad
Updated 40 min 24 sec ago

Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad

RIYADH: Saudi Arabia has signed a contract with Iraq to establish a commercial project worth $1 billion in Baghdad, bolstering the economic ties between the two nations, reported the Iraqi News Agency. 

Abdulaziz Al-Shammari, the Saudi ambassador to Iraq, revealed that the Kingdom inked a contract with Iraq to develop a massive commercial project near Baghdad International Airport, according to the INA. 

Dubbed Baghdad Avenue, the project is expected to become the largest shopping mall in Iraq, encompassing coffee shops, restaurants and commercial offices. Additionally, it will house 4,000 apartments and 2,500 villas. 

“Baghdad Avenue will be a distinguished project and a surprise to all Iraqis. It is the largest mall in Iraq and will include cafes and restaurants with large areas and commercial offices for major Iraqi companies,” Al-Shammari said.
“Iraqi and Saudi relations are witnessing a wonderful stage,” he added. 

Al-Shammari highlighted the recent visit of the King Salman Medical Center’s team to Baghdad, stating that the knowledge exchange between Iraqi and Saudi doctors epitomizes the strong relations between the two countries. 

“Today, we started reaping its real fruits through the visit of the King Salman Medical Center team to Baghdad, which is the first specialized and practical visit through which we witness the exchange of experiences between the best-skilled doctors in the Kingdom, as well as the best Iraqi doctors, to exchange experiences in fields and subspecialties, which is the first fruit,” he said. 

Al-Shammari also noted that both countries would soon host meetings featuring economic and cultural discussions. He stated: “The subsequent phase will witness significant momentum in activities occurring between the two nations.” 

In March, Saudi Public Investment Fund created a new company to invest in various industries across Iraq, with a capital of $3 billion. 

The Saudi-Iraqi Investment Co. will invest in infrastructure, mining, agriculture, real estate development and financial services, CEO Muteb Al-Shathri said during the Saudi-Iraqi Coordination Council held in the Kingdom. 


Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision
Updated 20 min 53 sec ago

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

RIYADH: Oil prices were up nearly $1 a barrel on Monday after Saudi Arabia pledged to cut production by another 1 million barrels per day from July. 

Brent crude futures were at $77.07 a barrel, up 94 cents, or 1.23 percent, at 9:05 a.m. Saudi time, while US West Texas Intermediate crude climbed 96 cents or 1.34 percent to $72.70 a barrel. 

The contracts extended gains of over 2 percent on Friday after the Saudi energy ministry said the Kingdom’s output would drop to 9 million barrels per day in July from around 10 million bpd in May. The cut is Saudi Arabia’s biggest in years. 

The voluntary cut pledged by Saudi on Sunday is on top of a broader deal by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to limit supply into 2024 as the group seeks to boost flagging oil prices. 

OPEC+ pumps around 40 percent of the world’s crude and has cuts of 3.66 million bpd in place, amounting to 3.6 percent of global demand. 

Russia fully enforces its oil output cuts, Novak says 

Russian Deputy Prime Minister Alexander Novak told Rossiya-24 TV channel on Sunday following a meeting of the OPEC+ group that Russia is fulfilling its oil output cut obligations. 

“The result of the discussions was the extension of the deal until the end of 2024,” Novak said. 

Separately, Novak’s office said that Russia would tweak its crude oil production level to 9.828 million bpd from Jan. 1, and considering earlier announced additional voluntary reduction of 500,000 bpd, its output target will stand at around 9.3 million bpd. 

Novak also said the market is more or less balanced, and demand is rising. However, the group would monitor interest rate decisions by global central banks, including the US Federal Reserve, for clues on the economy that could influence fuel consumption. 

“That’s the indicator (interest rate decisions), which is having an impact on investments, on demand for oil and oil products,” he said. 

Novak also said that OPEC+ could adjust its decisions if necessary. 

He said the data from secondary sources related to the OPEC+ voluntary cuts starting from May would emerge in the middle of this month. 

(With input from Reuters) 


UAE’s non-oil outlook positive despite slight PMI dip in May  

UAE’s non-oil outlook positive despite slight PMI dip in May  
Updated 23 min 48 sec ago

UAE’s non-oil outlook positive despite slight PMI dip in May  

UAE’s non-oil outlook positive despite slight PMI dip in May  

RIYADH: The UAE’s non-oil private sector growth outlook remained positive in May, even as the seasonally adjusted S&P Global Purchasing Managers’ Index fell to 55.5 compared to 56.6 in April. 

The S&P Global report noted that improved operating conditions drove business confidence to its strongest levels since October 2021.    

According to the index, PMI readings above 50 show non-oil private sector growth, while those below 50 signal contraction.    

“The UAE PMI pointed to another strong performance across the non-oil sector midway through the second quarter of 2023. Despite slipping from April’s six-month high of 56.6, the latest headline reading of 55.5 signaled a robust improvement in business conditions, driven by marked upturns in activity and new work,” said David Owen, senior economist at S&P Global Market Intelligence.    

He added: “The Future Output Index showed optimism rising to the highest level since October 2021, with firms pinning their hopes on projections that the strong demand momentum will continue.”   

Egypt’s May non-oil PMI rises to 47.8 

Egypt’s non-oil private sector growth outlook witnessed its softest downturn in 15 months as efforts to stabilize the demand environment paid off.   

While remaining below the 50 mark, the country’s PMI increased for the second month in a row, going from 47.3 in April to 47.8 in May, showed the report. 

Despite the adverse effects of higher prices on sales, output and purchasing, companies indicated that inflationary pressures were gradually alleviating.   

However, the S&P noted that the North African country still experienced a significant contraction in activity levels. In addition, non-oil companies continued to face difficulties, resulting in a gloomy outlook for activity and yet another reduction in employment.   

“The Egypt PMI remained in negative territory in May but showed further promise that current economic headwinds were beginning to dissipate. The headline index rose for the second month running to 47.8, while the two main sub-indices of output and new orders rose to their highest levels in 17 and seven months, respectively,” stated Owen.   

Qatar’s non-oil PMI grows for 6th time in 7 months 

Qatar exhibited yet another improvement in its non-energy growth for the sixth time in seven months, according to the S&P Global report.   

Hitting a PMI of 55.6 in May from 54.4 in April, the country recorded its biggest improvement in business conditions since July of last year.   

The main driver of the PMI increase was a surge in output and new orders, while employment and stocks of purchases also played a role.   

Yousuf Al-Jaida, CEO of the Qatar Financial Center Authority, said: “Qatar’s non-energy private sector remained on an upward growth trajectory in May, as inflows of new business accelerated in part due to tourism and demand for financial services.” 

“The sub-indices for output (59.6) and new orders (60.1) boosted the headline PMI to a 10-month high of 55.6, well above the long-run trend level since 2017 of 52.3,” he added.   

Al-Jaida further noted that financial services remained on top in terms of performance. These firms also increased their charges, compared to the slight change across the rest of the non-oil sector.   

The report showed that the rate of purchase price inflation has risen to its highest level in almost two years, suggesting that increasing input demand is reflected in prices.   

“Supply chains were able to cope with greater demand, as lead times on inputs fell further during the month,” said Al-Jaida.   


Saudi Arabia’s non-oil sector growth steady as PMI clocks 58.5 in May

Saudi Arabia’s non-oil sector growth steady as PMI clocks 58.5 in May
Updated 05 June 2023

Saudi Arabia’s non-oil sector growth steady as PMI clocks 58.5 in May

Saudi Arabia’s non-oil sector growth steady as PMI clocks 58.5 in May

RIYADH: Saudi Arabia’s non-oil sector posted substantial momentum in May according to a business survey, as the Kingdom’s economic diversification strategy continues to progress. 

The latest Riyad Bank Saudi Arabia Purchasing Managers’ Index report, formerly the S&P Global Saudi Arabia PMI, revealed that the Kingdom’s PMI stood at 58.5 in May, well above the 50 reading, indicating economic growth. 

This was a slight drop compared to the 59.6 figure in April. 

Naif Al-Ghaith, chief economist at Riyad Bank, said despite the small decrease the high figure reinforces the view that overall economic activity in Saudi Arabia is “holding up well.”

He added: “The Kingdom’s non-oil GDP (gross domestic product) is likely to have notably grown in the second quarter this year thanks to the healthy state of the private sector. 

“While a slower oil economy and rising interest rates will create a challenging environment for some establishments, most Saudi firms are in good shape and experiencing robust business conditions.”

The report pointed out that new order inflows at non-oil private sector businesses in the Kingdom significantly gained momentum in May after growth quickened to its highest in just over eight-and-a-half years in April. The rate of expansion, however, slowed slightly despite a renewed upturn in sales from foreign clients. 

According to the report, the rise in new orders positively impacted the tourism and construction sectors in Saudi Arabia, which ultimately resulted in a rise in job creation in May. 

“New orders grew considerably, reflecting a strong demand growth, particularly in tourism activities and construction. This led to the joint-fastest rate of job creation since 2018 which allowed firms to work through backlogs at a quicker pace this month,” added Al-Ghaith. 

He further noted that higher employment and activity levels drove wages to rise at the second-fastest pace in seven years, leading to a “sustained markup in prices charged to consumers.” 

According to the report, business expectations for the next 12 months eased slightly in May, but firms are anticipating improved market conditions, strong sales and supportive government economic policy to aid growth prospects. 

Al-Ghaith noted that the development of giga-projects in the country aimed at diversifying the economy will continue driving the growth of the private sector for the remaining months of this year. 

“The government continues to implement large-scale diversification policies and accelerate the development of giga-projects, aiming to boost the private sector, the engine for job creation. Therefore, we are confident that the non-oil sector will play a predominant role in driving growth this year, supported by increased investments and robust demand,” said Al-Ghaith.