OPEC+ maintains status quo on output amid fresh price cap on Russian oil 

Update OPEC+ maintains status quo on output amid fresh price cap on Russian oil 
The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022.  (File Photo/Reuters)
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Updated 05 December 2022

OPEC+ maintains status quo on output amid fresh price cap on Russian oil 

OPEC+ maintains status quo on output amid fresh price cap on Russian oil 
  • OPEC+ agreed to cut output by 2 million barrels per day earlier in October

RIYADH: The Organization of Petroleum Exporting Countries and its allies, known as OPEC+, has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies.

The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022.

Earlier in October, OPEC+ had agreed to cut output by 2 million barrels per day, which equals to about 2 percent of world demand, from November until the end of 2023.

Mohammed Al-Suwayed, CEO of investment advisory company Razeen Capital, said OPEC+ is being cautious about committing to any production cut while the EU price cap for Russian oil is going into effect this week. “We might see a different decision by the next meeting after the assessment of the Russian oil price cap implications,” he added.

OPEC+’s decision to adopt a wait-and-see approach appears to be a very well-thought-out decision, according to Hassan Balfakeih, the former chief oil demand analyst at OPEC Secretariat.

He added: “Given the growing uncertainty in the oil markets on both the supply and demand side, OPEC+’s decision to adopt a wait-and-see approach appears to be a very well-thought-out decision. Among these are the hazy price-cap policy for Russian oil, the global gloomy economic outlook, a rise in COVID-19 cases in China, and fluctuations in demand throughout the winter season in the western hemisphere.”  

OPEC+’s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.

On Friday, G7 nations and Australia agreed to put a price cap on Russian oil at $60 a barrel, a price higher than where Russia already sells most of its crude, ultimately aimed at maintaining Russian oil flowing to global markets.

Post the EU decision, a senior Ukrainian presidential aide said that the price cap on Russian seaborne crude oil agreed to by the G7 countries and Australia should be lowered to $30 per barrel, Reuters reported.

“This was everything that was proposed by the McFaul-Yermak group, but it would be necessary to lower it to $30 to destroy the enemy’s economy quicker,” Andriy Yermak, head of Ukraine’s presidential administration, wrote on Telegram.

Meanwhile, Russia said that it will not accept the price cap imposed by G7 countries and Australia.

“We will not accept this ceiling,” said Kremlin spokesman Dmitry Peskov, Russian news agency Tass reported.

Kremlin also noted that Russia will not send its oil under the energy cap proposed by G7, and added that the country is analyzing how to respond to these fresh sanctions.

Leonid Slutsky, chair of the Russian lower house’s foreign affairs committee, told the Tass news agency that the EU jeopardized its own energy security by setting a price cap on Russian seaborne oil.

He also added that the EU’s decision is violating the market’s laws. Amid these developments, Russia seems confident regarding the demand for its oil.

In comments published on Telegram, Russia’s embassy in the US criticized the move by the G7 and made it clear that the country will continue to find buyers for its oil.

“Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand,” the Russian embassy said.

– with inputs from Reuters


UAE approves 24 initiatives as it aims doubling country’s re-export by 2030   

UAE approves 24 initiatives as it aims doubling country’s re-export by 2030   
Updated 11 sec ago

UAE approves 24 initiatives as it aims doubling country’s re-export by 2030   

UAE approves 24 initiatives as it aims doubling country’s re-export by 2030   

RIYADH: The UAE government has approved 24 national initiatives that will increase the country’s re-export sector by 100 percent over the next seven years.   

The creation of a national re-export committee is one of the proposals, which primarily supports raising re-export rates. In collaboration with local governments, they focus on developing new specialized fields and a value-added program for re-export.   

“We will double the country’s re-export by developing specialized areas in cooperation with local governments, establishing the International Trade Links Center, launching supportive programs, and increasing foreign investments in the service sector,” UAE Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid Al-Maktoum said.   

The total value of the UAE’s re-exports surpassed 600 billion dirhams ($163.3 billion) for the first time in 2022, reaching 614.6 billion dirhams, which is a 14 percent increase compared to 2021. 

The country’s 10 biggest re-export markets experienced significant annual growth, with a total gain of 13 percent compared to 2021.   

Saudi Arabia, Iraq, India, Oman, Kuwait, China, the US, Hong Kong and Belgium are among the 10 markets. The main re-export products were telephones and diamonds, but airplane components, petroleum liquids, headphones, and vehicle parts also witnessed significant development.   

At the discussion, the cabinet examined more than 19 projects aimed at transforming the UAE into a worldwide talent magnet, as well as the findings of the Supreme Committee for Free Trade Negotiations.   

“We signed comprehensive economic partnership agreements with four countries, and we are currently negotiating with many other countries, and we are beginning to see the impact of the agreements on the country’s foreign trade figures... 2023 will be the strongest economic year for the country in its history, God willing,” Sheikh Mohammed tweeted.   

The cabinet also approved the restructuring of the Digital Wellbeing Council headed by Saif bin Zayed Al Nahyan, and the Emirates Genome Council headed by Khalid bin Mohammed bin Zayed. The two councils strive to improve the quality of life for the people of the UAE.   

“Science and knowledge have always been key drivers of the UAE’s development. Our priority is to ensure the best healthcare and quality of life for our people,” UAE President Sheikh Mohamed bin Zayed Al-Nahyan said.   


RSG signs global hotel brand Rosewood to manage 110-key property in AMAALA 

RSG signs global hotel brand Rosewood to manage 110-key property in AMAALA 
Updated 26 min 56 sec ago

RSG signs global hotel brand Rosewood to manage 110-key property in AMAALA 

RSG signs global hotel brand Rosewood to manage 110-key property in AMAALA 

RIYADH: Saudi construction firm Red Sea Global has signed on the international hospitality brand Rosewood Hotel & Resorts to manage a 110-key hotel at its upcoming integrated wellness destination AMAALA.

Rosewood AMAALA which also features 25 residences will explore “what it truly means to be regenerative,” the company said in a press release, adding that it will offer “unique experiences that weave together wellness and sustainability.” 

“Rosewood’s values of prioritizing both people and planet through impactful offerings connect seamlessly with the development’s larger vision, and we look forward to embracing our role of providing a wellness oasis nestled within this ambitious project,” said Sonia Cheng, CEO at Rosewood Hotel Group. 

The property will be surrounded by the world's fourth-largest reef and the scenic Hijazi mountains as RSG aims to protect the environment and enhance the natural ecosystems. 

“Rosewood AMAALA has been meticulously designed to seamlessly integrate indoor and outdoor living while offering guests a level of privacy and exclusivity often found in an all-villa resort,” said John Pagano, group CEO of RSG. 

The property's overall design will be based on sustainability, and the larger AMAALA development has set meaningful targets for zero impact. The entire destination will be powered by 100 percent renewable energy and will strive for a zero-carbon footprint and zero waste to landfill. 

The giga project, the first phase of which is currently underway, is set to welcome the first guests in 2024. It will consist of eight resorts offering upwards of 1,200 hotel keys. Once complete, 

AMAALA will be home to more than 3,000 rooms across 25 hotels, and around 900 luxury residential villas, apartments, and estate homes. 

In January, RSG awarded a nearly SR1 billion ($270 million) contract to Saudi-based Al-Ayuni Investment and Contracting Co. to develop utilities infrastructure systems at one of its resorts. 

The firm will carry out the work in the first phase of development at AMAALA, while also working on minimizing Triple Bay’s carbon footprint. 

The Public Investment Fund-owned developer earlier this month partnered with Four Seasons Hotels and Resorts to create a facility on Shura Island as part of the tourist attraction’s development.  

The resort will have 149 rooms and suites, six restaurant and lounge outlets, events spaces, and a marine discovery center. 


ADNOC begins work on project that converts CO2 into rocks 

ADNOC begins work on project that converts CO2 into rocks 
Updated 59 min 44 sec ago

ADNOC begins work on project that converts CO2 into rocks 

ADNOC begins work on project that converts CO2 into rocks 

RIYADH: Abu Dhabi National Oil Co. has begun working on a pilot project in Fujairah to convert atmospheric carbon dioxide into rock formations.

ADNOC will install a direct air capture unit to remove carbon dioxide from the atmosphere as well as install solar panels to power the operation, according to MEED.

“It will be the first carbon negative project of its kind in the region,” ADNOC said on its social media platform. 

The oil company is collaborating with Fujairah Natural Resources Corp. and Abu Dhabi Future Energy Co., or Masdar, to carry out the project. 

Powered by solar energy supplied by Masdar, the project will use British-Omani geoscience company 44.01’s carbon capture and mineralization technology to extract the compound from the atmosphere.  

ADNOC CEO Sophie Hildebrand said: “As the first energy company in the region to run a carbon-negative project of this kind, this pilot marks the latest step in our $15 billion investment into projects that will reduce our carbon footprint and help us achieve our net zero by 2050 ambition.”  

After taking carbon dioxide from the atmosphere, the project will mix it with seawater, and inject it into peridotite rock formations underground in order to safely and permanently mineralize it. 

“Following a successful pilot, this technology will contribute toward our plans to increase our carbon capture and storage capacity to 5 million tons per year by 2030,” added ADNOC. 

The UAE company also revealed that Fujairah has been specifically chosen for its abundance of peridotite, a type of rock that naturally reacts with carbon dioxide to mineralize it.  

In January of this year, the state energy company announced its $15 billion investment on decarbonization projects by 2030.  


Saudi banks’ net profits surge 7.5% to $1.4bn: SAMA 

Saudi banks’ net profits surge 7.5% to $1.4bn: SAMA 
Updated 29 March 2023

Saudi banks’ net profits surge 7.5% to $1.4bn: SAMA 

Saudi banks’ net profits surge 7.5% to $1.4bn: SAMA 

RIYADH: In the backdrop of a looming global banking crisis, Saudi lenders continue to maintain strong credit growth driven by corporate loans.  

This has helped banks operating in the Kingdom record an aggregate year-on-year net profit of 7.5 percent to SR5.18 billion ($1.38 billion) in February 2023, the latest official data showed.   

In February 2022, the aggregate profit of Saudi banks was SR4.82 billion, noted the Saudi Central Bank, also known as SAMA, in its monthly report issued on Tuesday. 

On a month-on-month basis, however, the aggregate profit of banks, was down 19 percent in February, against January’s SR6.41 billion. 

A research report prepared by Al Rajhi Capital, which has analyzed the SAMA monthly data, attributed this modest growth in profits to the ongoing pressure on the cost of funding. 

“Mortgage origination came in at SR7.1 billion, lower than January, but slightly better than our expectations,” stated Al Rajhi Capital, a company that is authorized to engage in securities activities in Saudi Arabia. 

Al Rajhi said its updated estimate for monthly mortgage origination for 2023 is SR6.8 billion, which is a bit lower than the previous estimate of SR7.0 billion.  

The SAMA report noted that loans given to the private sector in February rose over 11 percent year-on-year to SR2.32 trillion. 

Based on these figures, Al Rajhi analysts expect Saudi banks’ loan growth to be around 10 percent in 2023, which they said, is on the conservative side as “we see upside risks to it.”   

This comes as the combined deposits of Saudi banks rose by 8 percent year-on-year to SR2.30 trillion in February. 

Al Rajhi analysis noted that total deposits in the month of February grew 1.2 percent month-on-month, higher than credit growth of 0.9 percent, which the analysts said: “should ease some pressure on the funding side going forward.” 

The apex bank data showed that the aggregate assets of banks in the Kingdom rose by more than 11 percent year-on-year to SR3.66 trillion in February. 

Whereas, the total assets held by SAMA increased by SR830 million month-on-month to SR1.92 trillion in February 2023. 

This is when compared with February 2022 grew by SR130.4 billion. 

SAMA’s investments in foreign securities, which account for 55 percent of its total assets, declined by around 7 percent to SR1.04 trillion in February. 

The SAMA report further revealed that the foreign direct investment inflow in Saudi Arabia was SR29.6 billion in 2022, thus bringing the cumulative FDI balance in the Kingdom to SR1.8 trillion. 

The rise of FDI in Saudi Arabia clearly indicates the Kingdom’s growing popularity as a global investment hub, a goal outlined in Vision 2030. 

The report, however, added that the Kingdom’s FDI in 2022 witnessed a 60 percent fall compared to 2021. This massive figure of net FDI in 2021 was primarily attributed to a $12.4 billion infrastructure deal between Aramco and a global investor consortium, in which the consortium acquired a 49 percent stake in Aramco Oil Pipelines Co. 

Excluding this mammoth transaction, FDI inflows in 2022 increased by 14.5 percent compared to the year earlier, the SAMA report noted. 


Saudi Ports Authority unveils plans to cut emissions by 1,046 tons 

Saudi Ports Authority unveils plans to cut emissions by 1,046 tons 
Updated 29 March 2023

Saudi Ports Authority unveils plans to cut emissions by 1,046 tons 

Saudi Ports Authority unveils plans to cut emissions by 1,046 tons 

RIYADH: Crane movements in Saudi ports will be reduced in order to cut carbon dioxide emissions by as much as 1,046 tons by the end of the year, the organization responsible for the transit hubs has announced. 

The Saudi Ports Authority, also known as Mawani, is working on reducing the average movement of yard cranes per incoming container required for manual inspection by 33 percent. In addition, it is also working on reducing the turnover rate of trucks within the Jeddah Islamic Port by 17 percent. 

These initiatives will help improve the port’s operational performance, reduce carbon emissions, and lower the logistical cost for port and maritime transport sector customers.  

They will also assist the authority to keep pace with the Kingdom’s initiatives to preserve the environment and establish a prosperous and sustainable marine sector. 

These initiatives fall within the framework of the Green Ports Initiative which aims to diminish energy consumption by 15 percent by reducing dependence on diesel in order to lower carbon footprint. 

Mawani is known to present pioneering initiatives that are directly linked in one way or another to the Saudi Green Initiative which focuses on reducing emissions, supervising work to combat climate change, and facilitating community cooperation. 

The authority also works to strengthen partnerships between the public and private sectors to expand the scope of work in this field. 

The authority is seeking to boost the level of customer and beneficiary satisfaction, decrease logistical costs, and enhance the commercial attractiveness of the port on a global level. 

In 2022, Mawani, represented by the Jeddah Islamic Port, won the “Best Port in 2022” award, and the “Digital Transformation” award at the International Green Shipping Summit Awards.