From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition

Special From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition
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experts discussed cryptocurrency at the Future Investment Initiative forum in Riyadh on Oct. 27, 2022. (AN photo)
Special From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition
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experts discussed cryptocurrency at the Future Investment Initiative forum in Riyadh on Oct. 27, 2022. (AN photo)
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Updated 28 October 2022
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From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition

From the rise of China to the fate of crypto, Future Investment Initiative offered glimpses of a world in transition
  • Experts unpacked Africa’s green energy transition and the unifying power of football on closing day of FII
  • FII panel examined China’s precise place in the “new global order” and how the Middle East might collaborate

RIYADH: The third and final day of the Future Investment Initiative (FII) forum in Riyadh saw experts unpack issues running the gamut from China’s rise to superpower status and the fluctuating fortunes of cryptocurrency to Africa’s green energy transition.

One session, titled “China is back,” sought to figure out China’s precise place in the “new global order” and how the Middle East might collaborate with the Asian power to enhance its own position, and potentially provide a bridge between the East and West.

Earlier this year, the Chinese city of Shanghai went into lockdown following a new outbreak of the omicron variant of COVID-19 Since then, citizens of other major cities across the country have been ordered to stay home, bringing local economies to a standstill.




Security personnel in protective suits stand at the gate of a residential compound that is under lockdown as outbreaks of COVID-19 continue in Beijing. (REUTERS)

While other nations have sought to drive down COVID-19 infections through a mixture of mass vaccination and public awareness campaigns, China has implemented a policy of “zero COVID,” resulting in multiple highly disruptive lockdowns.

Such is the size and far-reaching influence of the modern Chinese economy and its dominant role in global supply chains, as well as manufacturing, that the impact of these lockdowns has been felt around the world.

Despite global stress in the wake of the pandemic and the war in Ukraine, China’s economy has grown apace, while its soft power influence from Central Asia to Africa has continued to spread.




Half of the Africa’s population does not have access to electricity, yet there is immense potential, Marlene Ngoyi (right), CEO of the Fund for Export-Development in Africa (FEDA), told the forum. (Supplied)

Experts on Thursday’s panel agreed that Chinese expertise and success in technology, including artificial intelligence, digitization, robotics and automation, has given it a strategic presence and immense influence in the global economy.

At the same time, China is one of the world’s biggest oil importers, with more than 40 percent of its crude oil imported from the Gulf states. There are also plans to forge closer ties between China and Saudi Arabia in green technologies and digitization.

“Coming here, my first question was what can I do in this region and fulfill demand in this region,” Cathay Capital founder and Chairman Ming-Po Cai, who has many years of experience in developing China-entry strategies for multinational companies, told the panel.




Production of renewable energy is one of the main thrusts of Saudi Arabia's Vision 2030 program. (SPA file photo)

“Within three days, I met dozens of local actors, entrepreneurs in AI, logistics and local funds. I realized that here you have to bring the ecosystem, it’s not just one technology, one deal or one investor here or there, you have to bring the start up with the company.”

One area where many countries are investing heavily in is cryptocurrency — a form of digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

Although cryptocurrencies have been gaining traction worldwide in recent years, offering the potential to reshape the investment landscape, several of these currencies have suffered extreme volatility, in large part owing to shocks in the real economy.




Cryptocurrencies have been gaining traction worldwide in recent years. (AFP file)

Nevertheless, recent gains in non-traditional crypto investment hubs such as Russia, Spain and France have shown that cryptocurrencies still hold huge appeal for investors.

“A lot of people like to talk about once-in-a-generational opportunities,” Hany Rashwan, co-founder and CEO of 21Shares, told another panel, titled “Building a better crypto economy.”

“If you look at history, reserve currencies in the financial system do not often change once in a generation. And so, crypto, to me, is a world-changing technology and it’s more of a once-in-a-century kind of opportunity.

“We have to really remember that it is possible to innovate outside of central banks and still abide by all the laws and regulations that are put in place, to make our daily lives more comfortable.”




21Shares co-founder and CEO Hany Rashwan speaks during the forum. (@FIIKSA illustration image)

As of September 2021, the total market value of all crypto assets surpassed $2 trillion, having largely weathered the volatile and unpredictable political, economic and technological fluctuations witnessed since it first appeared more than a decade ago.

Although the cryptocurrency space as a whole is still viewed as an unknown territory in finance, several speakers on Thursday’s panel argued that crypto should be allowed in portfolios, be traded and become properly regulated.

For Rashwan, the world may have reached a turning point whereby “it might be time to think of this as another asset class.”

Much of the instability observed in the real economy this past year has been the result of energy price fluctuations, owed in large part to the war in Ukraine and the resulting Western sanctions placed on Russia — a major oil and gas supplier to Europe and beyond.




Inflation, in the form of higher prices for gas, food, and other consumer goods, has set in in many economies of the world as a result of the Russian war on Ukraine. (AFP file) 

However, higher energy prices appear to have accelerated the transition toward renewables, including wind, solar and hydrogen. Nowhere is this rapid adoption perhaps more obvious than in Africa — a continent that has been uniquely vulnerable to the global economic storm.

Experts believe that demand for renewables in Africa could increase by as much as 30 percent over the coming two decades, compared to a 10 percent increase globally. This is due to rapid population growth and industrialization.

Despite the expected increase in energy demand, Africa has 60 percent of the world’s best solar resources but only 1 percent of solar generation capacity, according to the International Energy Agency.




A Nigerian soldier guards a solar plant supplying electricity to an irrigation pumping project in the northern desert of Niger. (AFP)

“When you look at Africa today, it’s home to 1.8 billion people and we’re expected to be 2 billion by 2040,” Marlene Ngoyi, CEO of FEDA, told a panel, titled “Africa focus: Trade and energy.”

At present, half of the continent’s population does not have access to electricity, yet there is immense potential, “as Africa is a key player in energy,” said Ngoyi. “When you think about the green economy and transition to electric vehicles, cobalt is required and more than 60 percent of the mining resource is in the DRC and Zambia.”

Although Africa accounts for the smallest share of global greenhouse emissions, at just 3.8 percent, Ngoyi said many states across the continent are dependent on oil and gas. Governments need to be pragmatic in order to make the transition to alternative forms of energy, she added.




FIFA is the ‘biggest show on earth.’ (AN combo image)

From energy to sports, the diversity of topics at the sixth edition of FII did not disappoint. With the FIFA World Cup just around the corner, the forum’s final panels examined football as a tool for social progress and economic development, transcending generations, cultures and communities.

“Football is much more than a sport and FIFA is the biggest show on earth,” FIFA President Giovanni Infantino told the forum in a video address.

 

 

“This World Cup is not just the World Cup of Qatar. It’s that of the entire Middle East and the Gulf where the entire world will unite itself here. People will get to discover the Gulf, the people, the rich culture and an opportunity for Qatar and the GCC region to represent itself to the world in another light.”

 


Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit
Updated 26 September 2023
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Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

Abu Dhabi National Hotels CEO reveals expansion plans at Future Hospitality Summit

RIYADH: Abu Dhabi National Hotels is exploring expansion opportunities in North Africa and Europe, the company’s CEO revealed during the Future Hospitality Summit on Tuesday.

This development strategy points to the company’s growth ambitions, giving access to new customer segments and markets, Khalid Anib indicated.

The executive also emphasized ADNH’s commitment to environmental responsibility, stating: “As owners, we are embracing sustainability and are ready to enhance our buildings to be more sustainable.”

The Future Hospitality Summit, a gathering of industry figureheads and key stakeholders, witnessed prominent business leaders sharing their insights on expansion and ambitions for growth within the market. 

Adeeb Ahamed, the managing director of Lulu Financial Holdings & Twenty14 Holdings, addressed the hospitality industry’s pivotal role in job creation.

Ahamed stated: “One in 11 jobs are generated by the hospitality sector, making it a priority in every market.”

He stressed that despite technological advancements, the hospitality sector remains unique, with limited job displacement, as the human touch remains integral.

Ahamed also highlighted the growing appeal of the region as a tourist hot spot, drawing parallels with popular European destinations.

He noted: “The countries in the GCC (Gulf Cooperation Council) are becoming very attractive in terms of tourism, and this is very good news for the entire economy. Like in Europe where people visit multiple countries in one holiday, the GCC is creating something of that sort and this is where we like to capitalize, we like to see how we can do it in Oman, in Saudi Arabia, in Qatar. And this would give more reasons to travel here.”

In response to the rapid growth of the hospitality sector in neighboring Saudi Arabia, Ahamed commented: “I think Saudi Arabia is not a competition. It’s a combined effort that’s going to bring more confidence to investors to invest in the region, so more awakening done by neighboring countries is definitely going to boost the ecosystem.”


Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 
Updated 47 min 46 sec ago
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Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

Saudi Arabia’s transport plans play crucial role in global carbon emissions battle 

RIYADH: Saudi Arabia’s sustainable transport plans are a vital part of the Kingdom’s drive to reduce global carbon emissions by 4 percent, said a government official on Tuesday.   

Speaking at the Global Sustainable Transport Forum held in Beijing from Sept. 25-26, the Saudi Transport and Logistics Services Minister, Saleh bin Nasser Al-Jasser, stressed that sustainability is a fundamental element of the Kingdom’s Vision 2030. 

Al-Jasser underscored that the Kingdom’s strong commitment to sustainability has been smoothly incorporated into the transport and logistics sector through the National Strategy for Transport and Logistics.    

The strategy includes reducing carbon emissions per person by 2 percent in a year, increasing sustainable mobility, electrifying transport and implementing them across the logistics value chain.   

It also includes developing the necessary infrastructure to meet future demand, with the primary goal of minimizing traffic fatalities. 

According to Al-Ekhbariya, the minister also pointed out that cooperation, innovation and the exchange of best practices create the foundation for achieving common goals. 

He also revealed that there has been significant progress over the years, with the number of fatalities falling from 28 per 100,000 people in 2016 to 13.5 in 2020. 

Through the implementation of a national safety program that emphasizes infrastructure development, road safety awareness and governance improvements, the goal is to lower the fatalities to less than five by 2030. 

Al-Jasser also emphasized how the COVID-19 pandemic hugely affected the global logistics and transportation industry, causing supply chains to break down and some transport sectors to collapse. 

This fact underlines how crucial it is to balance the social, economic, and environmental pillars of sustainable development to create green transportation networks. 

Furthermore, the minister said in August that Saudi Arabia’s master plan to develop logistics centers in the Kingdom will help improve transport services and contribute to infrastructure development. 

He noted that the new master plan will also strengthen Saudi Arabia’s connection with global markets, as the Kingdom is strategically placed in the middle of three continents.   

Saudi Arabia’s NSTL aims to position the Kingdom as one of the top 10 countries globally in the logistics performance index by the end of this decade, aligned with the goals outlined in Vision 2030. 


Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 
Updated 26 September 2023
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Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

Egypt awards oil and gas exploration blocks to Eni, BP, QatarEnergy, Zarubezhneft 

CAIRO: Egypt awarded on Tuesday four blocks in an oil and gas exploration bid round for concessions in the Mediterranean and Nile Delta to Italy’s Eni, BP, QatarEnergy, and Russia's Zarubezhneft, the petroleum ministry said. 

Eni would take two blocks by itself and a third in a coalition with BP and QatarEnergy, while Zarubezhneft was also awarded a block. 

This comes after Egypt’s petroleum ministry launched an international bidding round on Monday for exploration in 23 open blocks, with the offer deadline set for Feb. 25, according to Reuters. 

The round includes 10 areas in Egypt’s Western Desert, two in the Eastern Desert, seven in the Gulf of Suez and four in the Red Sea, the ministry said. 

Egypt, the most populous Arab country, has sought to position itself as a regional energy hub. 


Fitch upgrades Oman’s credit rating to BB+

Fitch upgrades Oman’s credit rating to BB+
Updated 26 September 2023
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Fitch upgrades Oman’s credit rating to BB+

Fitch upgrades Oman’s credit rating to BB+

RIYADH: Reflecting Oman’s commitment to fiscal stability, US-based Fitch Ratings upgraded the Gulf nation’s long-term foreign currency issuer default rating to “BB+” from “BB.”  

According to the agency, the Omani government’s dedication to implementing measures to maintain financial security was a key factor contributing to the advancement. 

This promise comes in response to the challenging scenario of the oil price’s breakeven point, which has declined from $80-90 per barrel between 2017 and 2019 to less than $70 per barrel in 2023. 

The agency also noted that the upgrade implied that the government would not backtrack on recent fiscal consolidation measures. 

“The reduction of Oman’s fiscal breakeven price to below $70 per barrel over our forecast horizon from $80-$90 over 2017-19 significantly reduces vulnerability to oil price swings, although risks remain,” said Fitch Ratings in its report.


Saudi Arabia, Singapore strengthen economic ties with business forum

Saudi Arabia, Singapore strengthen economic ties with business forum
Updated 26 September 2023
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Saudi Arabia, Singapore strengthen economic ties with business forum

Saudi Arabia, Singapore strengthen economic ties with business forum

RIYADH: In a move poised to bolster economic ties between Saudi Arabia and Singapore, the Kingdom’s Minister of Commerce, Majid Al-Qasabi, led a delegation of 36 officials on a working visit to the Southeast Asian country on Tuesday to explore potential bilateral agreements.

This visit, which extends until Sept. 27, is a key part of the Saudi-Singaporean Business Forum, focused on boosting trade in goods and services. The forum aims to foster collaboration in emerging industries, enhance digital literacy, and promote entrepreneurship, as reported by the Saudi Press Agency. 

The first day of the forum featured crucial discussions covering the Singaporean education system, cooperation in endowments, and opportunities for student skill development.