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.”

 


Pakistan seeks $6 billion for corporate farming from Saudi Arabia, other Gulf nations by 2028

Pakistan seeks $6 billion for corporate farming from Saudi Arabia, other Gulf nations by 2028
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Pakistan seeks $6 billion for corporate farming from Saudi Arabia, other Gulf nations by 2028

Pakistan seeks $6 billion for corporate farming from Saudi Arabia, other Gulf nations by 2028
  • Arab News speaks exclusively to CEO of FonGrow, spearheading agriculture projects under new investment body
  • Pakistan in talks with Saudi companies like Al-Dahara, Saleh and Al-Khorayef for investment in corporate farming

ISLAMABAD: Pakistan is seeking up to $6 million investment from Saudi Arabia, the United Arab Emirates (UAE), Qatar and Bahrain over the next three to five years for corporate farming, with the aim of cultivating 1.5 million acres of previously unfarmed land and mechanizing existing 50 million acres of agricultural lands across the country, the CEO of the company spearheading the initiative has said.

The development comes months after Pakistan set up a Special Investment Facilitation Council (SIFC) — a civil-military hybrid forum — to attract foreign funding in agriculture, mining, information technology, defense production and energy as the South Asian country deals with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.

Earlier this month, caretaker Prime Minister Anwaar-ul-Haq Kakar said Saudi Arabia and the UAE would invest up to $25 billion each in Pakistan over the next five years in the mining, agriculture and information technology sectors.

Initiatives in the agriculture sector under SIFC are being administered by Fongrown, which is part of the Fauji Foundation investment group run by former Pakistani military officers.

“We have estimated about $5-6 billion [investment from Gulf nations] for initial three to five years,” Major General (retired) Tahir Aslam, FonGrow’s managing-director and chief executive officer, told Arab News in an interview. 

He declined to share details about the breakdown of the investment from each individual country.

The CEO said the company was engaging with several Saudi companies like Al-Dahara, Saleh and Al-Khorayef to attract investment in the corporate farming sector. He did on elaborate on progress made so far in the discussions. 

Aslam said his company was also working on different investment models with the Saudi and UAE companies for corporate farming, including joint ventures.

“If they want to make direct investment, it is a corporate model. So, they will take an equal number of stakes in the company, and they get an equal number of positions in the governance [of the company]. So, it is going to be a joint company.”

About strategy and targets to mechanize farming, Aslam said FonGrow was working on a two-pronged approach to bring up to 1.5 million acres of new arable land under cultivation and modernize 50 plus million acres of land already being farmed.

This, he said, would require about “$25 million per each thousand acres and other for machinery, and setting up of infrastructure for value addition.”

FonGrow is aiming to set up corporate farms on over 100,000 acres in the next 5-7 years. The first such farm had already been established on over 5,000 acres of land in Khanewal, he said. 

“Next year, we will be starting our second farm on over 10,000 acres and we hope to develop the capacity to be able to develop 20 to 25 thousand acres every year,” Aslam said. “Mainly, we are starting in Punjab and then we are looking for lands. Wherever we get suitable lands, we will go to all the provinces.”

To a question about the source of capital to develop the land, the official said: “We have no issue of rupee capital availability for our project because ultimately it will bring returns to Fauji Foundation.”

“There is a small challenge that we are facing basically, which is of foreign exchange because the irrigation systems and the tractors and harvesters that we have to import, they need foreign exchange.”

Aslam said Pakistan’s corporate farming model envisioned that sixty percent of the crops would contribute to the country’s food security, and the remaining 40 percent would be exported mainly to Gulf countries to earn foreign exchange. 

He said Pakistan had received a first export order of Fauji cereal products from a Gulf nation, though he declined to name the country:

“It is a starting quantum [that] is about $25 million worth of products in one year. But I think as we break more grounds this will continue to increase in the coming years.” 

Responding to concerns about the army’s involvement in economic projects in Pakistan, he said the military was only contributing where requested by the civilian government.

“They [foreign countries] wanted an organization which provides continuity or security of their investment, that was the reason the army joined in and then the army also said we have such a large [investment] potential available,” the FonGrow CEO said.

“In the past also, the army has very willingly contributed to projects of nation-building and national importance … Army is playing its part, but no soldiers are involved.”


Saudi Arabia elected ISO council member for two years

Saudi Arabia elected ISO council member for two years
Updated 21 September 2023
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Saudi Arabia elected ISO council member for two years

Saudi Arabia elected ISO council member for two years

RIYADH: In recognition of its efforts to implement health and safety standards, Saudi Arabia has been elected as a member of the council of the International Organization for Standardization, the Saudi Press Agency reported.

The Kingdom will maintain the position for a two-year period starting 2024, it said.

This was announced during ISO’s 45th general assembly meeting held in Brisbane in Australia.

The Saudi Standards, Metrology, and Quality Organization, known as SASO, represented the Kingdom at the recent ISO meetings.

SASO is committed to the ongoing enhancement and revision of Saudi standards and technical regulations, with its efforts aimed at safeguarding the nation’s markets against counterfeit, substandard, and deceptive products, ultimately bolstering the national economy. 

Meanwhile, ISO, which came into existence in 1947, is an independent, nongovernmental international organization with 169 members.


Red Sea International Airport becomes operational

Red Sea International Airport becomes operational
Updated 21 September 2023
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Red Sea International Airport becomes operational

Red Sea International Airport becomes operational

RIYADH: The Red Sea International Airport became operational with the touchdown of the first Saudia flight early on Thursday, according to the Red Sea Global. 

In a statement, the multi-project developer behind the world’s most ambitious regenerative tourism destinations, The Red Sea and AMAALA, said that the flights from King Khalid International Airport in Riyadh will arrive every Thursday and Saturday, connecting the two destinations in less than two hours. 

It added that a flight would return to the capital on the same day. “We promised to make TRS a place where people from all around the world would come to experience the best of Saudi culture, hospitality, and nature. Now, with the first flight touching down at RSIA, and our first resorts receiving bookings, Saudi Arabia’s position on the global tourism map is all but secured,” said John Pagano, group CEO of Red Sea Global. 

From today, the statement added, the flights depart Riyadh every Thursday at 10:50 a.m. before flying back to the capital after 165 minutes. It added that the other flight departs from Riyadh every Saturday at 12:50 p.m., with the return flight at 15:35 p.m. from the Red Sea airport. 

Positioned within an eight-hour flight from 85 percent of the world’s population, the airport will grow to welcome international flights from next year as additional phase one resorts open their doors. 

According to the statement, RSIA is operated by daa International, which has supported RSG with design validation and commissioning of RSIA since 2020. 

“With the arrival of RSIA’s first commercial flight, daa International’s operational responsibility commences,” it added 

In its press release, RSG also revealed the new brand for RSIA with visitors to see the brand expressed across multiple touchpoints, from the airport terminal and staff uniforms to the electric mobility vehicles that will transport passengers from air to land side. 

“RSIA is the gateway to TRS destination. It is the first impression visitors have, and their parting memory when they leave. The brand echoes the qualities of the five-star hospitality guests will enjoy across the destination,” Pagano added. 

The brand icon is a representation of the RSIA’s unique architecture. The company noted that the iconic shape is inspired by the bird’s eye view of the airport’s exterior. “It has been created to express the creativity, novelty, and sophistication of the brand in a way that is contemporary and distinct.” 

RSG further stated that it has made great progress across other infrastructure works to ensure TRS is ready to welcome visitors and meet its promises for responsible development and regenerative tourism. 


Sole Pakistani company at Foodex expo eyes joint ventures

Sole Pakistani company at Foodex expo eyes joint ventures
Updated 21 September 2023
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Sole Pakistani company at Foodex expo eyes joint ventures

Sole Pakistani company at Foodex expo eyes joint ventures

ISLAMABAD: A Pakistani food company participating in the 10th edition of Saudi Arabia’s leading international food exhibition, Foodex Saudi, has praised the Kingdom’s market, saying over a dozen Saudi companies had expressed interest in forming joint ventures and distributing its products.

The 10th edition of Foodex Saudi, the Kingdom’s leading international exhibition for food and beverages, was held from September 17-20 at the Riyadh International Convention and Exhibition Center and featured over 500 exhibitors from 75 countries, offering an array of food and drinks to Saudi buyers from the distribution, retail, manufacturing and hospitality sectors.

Dashi International, a Karachi-based food company that sells ready-to-cook and ready-to-eat food products, was among the 500 exhibitors at the event.

“Dashi International is the only Pakistani company participating in this edition of the Foodex Saudi exhibition,” Fawaz Khalil Allahwala, the company’s chief executive officer, told Arab News over the phone from Riyadh.

“It was a great opportunity to showcase our product as the Saudi market is certainly growing and we found a dozen leads from interested companies from the Kingdom,” Allahwala said.

He said some Saudi companies had sought joint ventures with Dashi International while others were interested in a distribution partnership with the Pakistani company. He declined to name the Saudi companies. 

Allahwala said he experienced a lot of “enthusiasm and optimism” at the exhibition where visitors explored various food items with the aim of seeking new business opportunities.

He said the response was “encouraging and positive.”

“The Saudi market seemed very receptive and growing so we are very hopeful of progress,” Allahwala added.

Hamzah Gilani, the spokesperson of the Pakistani consulate in Jeddah, said the exhibition played a “crucial role” in advancing and diversifying Saudi Arabia’s thriving food and drinks industry.

“This success [of Dashi] should encourage more Pakistani companies to seize such opportunities and expand their involvement in the international market,” Gilani told Arab News, saying Foodex provided Saudi buyers with an “unprecedented opportunity” to discover a diverse range of global food and beverage products.

“This esteemed gathering facilitated extensive networking opportunities,” Gilani said, “and showcased latest industry innovations.”


Saudi airline passenger complaints drop 11.8% in August: GACA   

Saudi airline passenger complaints drop 11.8% in August: GACA   
Updated 21 September 2023
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Saudi airline passenger complaints drop 11.8% in August: GACA   

Saudi airline passenger complaints drop 11.8% in August: GACA   

RIYADH: As part of ongoing efforts to enhance efficiency and competitiveness in Saudi Arabia’s aviation sector, the number of passenger complaints among carriers in August dropped by 11.8 percent compared to the same month last year.

Data released by the General Authority of Civil Aviation revealed that there were 1,442 grievances in August 2023, down from the 1,636 recorded in the corresponding month in 2022. 

These developments align with GACA’s economic regulations, which are designed to support the sector’s rapid growth, improve the passenger experience, and ensure transparency and fairness. 

Saudia, formerly known as Saudi Arabian Airlines, received the fewest complaints among carriers, with a total of 14 complaints per 100,000 travelers and a 100 percent timely handling rate. 

Flynas ranked second with 30 such cases per 100,000 passengers and a closure rate of 98 percent.  

Flyadeal came in third with 105 grievances per 100,000 travelers and a timely handling rate of 52 percent. 

The most common complaints in August were related to flights, boarding services, and tickets. 

Among international airports serving more than 6 million passengers annually, Prince Mohammed bin Abdulaziz International Airport had the lowest complaint rate at 0.3 percent per 100,000 passengers. 

For international airports with fewer than 6 million passengers per year, Prince Naif bin Abdulaziz International Airport received the fewest grievances, with a rate of 1 percent per 100,000 customers.  

Both airports recorded only two such cases, each, with a reported handling rate of 100 percent. 

Among domestic airports, King Saud Bin Abdulaziz Airport had the lowest rate at 2 percent per 100,000 travelers. Only one grievance was raised by travelers, with a 100 percent timely management rate.    

Earlier this month, Saudi carriers disbursed a total of SR58 million ($15.4 million) in compensation to travelers during the 2021-2022 period, according to GACA.  

In an official statement released at the time, GACA emphasized that these reimbursements addressed a range of customer concerns, including delays, loss of luggage, flight cancellations, and disruptions to flight schedules.  

This initiative aligns with the authority’s commitment to protecting passenger rights. It also serves as a precursor to the upcoming regulations set to take effect on Nov. 20, aimed at advancing operations and supporting the Kingdom’s growth objectives in the aviation sector.  

GACA’s vision is to create a safe and secure aviation environment by following the most rigorous international safety standards and building a modern airport system that consistently provides exceptional services.