Sudan, Emirati group to develop $6bn Red Sea port

Sudan, Emirati group to develop $6bn Red Sea port
The project will located about 200 km north of Port Sudan. (File/Reuters)
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Updated 13 December 2022
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Sudan, Emirati group to develop $6bn Red Sea port

Sudan, Emirati group to develop $6bn Red Sea port
  • Sudan would be entitled to 35 percent of net profits from Abu Amama venture, finance minister said

ABU DHABI:  A consortium led by AD Ports Group and Invictus Investment has signed a preliminary agreement with Sudan on Tuesday to build and operate the Abu Amama port and economic zone on the Red Sea with a $6 billion investment.

The project, located about 200 km north of Port Sudan, would include an economic zone, an airport and an agricultural zone of 415,000 acres.

A 450-km-long road will connect Abu Amama port with the agricultural area of Abu Hamad in Sudan’s River Nile state, the two sides said at the signing ceremony held in the Sudanese capital, Khartoum.

Under the terms of the agreement, Sudan will be granted the right to develop, manage and operate port and economic zone assets in Sudan, the Emirates News Agency, known as WAM, reported.

Meanwhile, the consortium will have the exclusive right to develop, manage and operate specific port and economic zone assets, as well as form joint ventures, partnerships or other business agreements to support other projects. 

“AD Ports Group continues to extend its international reach under the guidance and direction of our wise leadership, supporting the development of port and trade assets in key markets around the world,” AD Ports Group CEO Mohammed Juma Al-Shamisi said. 

“We are grateful and honored by the trust that the government of Sudan has placed in our consortium by signing this agreement, and we look forward to working with them on the development and management of key facilities,” Al-Shamisi added. 

AD Ports Group and Invictus Investment previously agreed to establish a new international shipping service to operate as the carrier for Invictus’ dry-bulk trading business, which is a major commodity transporter to and from the Sudanese market.

Invictus Investment Co. PLC Chairman Osama Daoud Abdellatif said the port would be able to handle all kinds of commodities and would compete with the country’s main national port, Port Sudan, which has suffered recently from stoppages linked to the country’s political turmoil.

“Drawing on our deep experience of working with customers in Sudan and working alongside AD Ports Group, which is the premier global trade, logistics and transport enabler, we will strive to meet their high expectations and deliver for the people of Sudan,” Abdellatif said.

According to WAM, Sudan is a major trading partner of the UAE, with key Emirati exports including raw sugar, jewelry and broadcasting equipment.

Sudan’s Finance Minister Jibril Ibrahim said the country would be entitled to 35 percent of the net profits from the $6 billion Abu Amama venture.

 


COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn
Updated 17 sec ago
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COP28: US-UAE climate-friendly farming effort grows to $17bn

COP28: US-UAE climate-friendly farming effort grows to $17bn

DUBAI: Funding for a joint effort by the US and the UAE to advance climate-friendly farming around the world has grown to more than $17 billion, the countries announced on Friday at the COP28 climate summit in Dubai, according to Reuters.

The Agriculture Innovation Mission for Climate was launched in 2021 at COP26 in Glasgow and its funding comes from governments, companies, and non-governmental organizations.

Globally, food and farming contribute about a third of anthropogenic greenhouse gas emissions, according to the UN’s Food and Agriculture Organization.

Nearly 80 projects have been announced under the AIM for Climate initiative since 2021, with goals to expand agricultural research, implement sustainable farming practices, and reduce methane emissions.

“I think it’s made people think about food and agriculture in a much different way,” Agriculture Secretary Tom Vilsack told Reuters on the sidelines of the conference, adding: “And I think it’s reflected, frankly, in the fact that this COP ... has actually elevated food (and) agriculture to the point where it’s an integral part of COP meetings. That has not been the case for the previous 27.”

Funding for the effort has grown from $13 billion in May, when the US and the UAE co-hosted an AIM for Climate summit in Washington, and from $8 billion at COP27.

The new total includes $12 billion from governments and $5 billion from non-government parties such as companies and humanitarian organizations, said an AIM for Climate spokesperson.

The 27 new projects announced at COP28 range in size from $500 million to $150,000.

In one of the largest projects, companies including Bunge and Alphabet’s Google are working with the Nature Conservancy and the Brazilian state of Para to expand regenerative agriculture, which generally refers to practices like reduced tillage of cropland and lower pesticide use.

For the first time, agriculture is a major focus at this year’s climate summit, with a full day on Dec. 10 dedicated to food and farming topics.

“We understand that we need to speed up innovations ... to be able to transform agriculture food systems to more sustainable systems,” the UAE’s Minister for Climate and the Environment Mariam Almheiri told Reuters.

Advocacy groups want the nations and companies in attendance to pledge to tackle agricultural methane emissions in particular, most of which is from livestock production.


New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates
Updated 54 min 37 sec ago
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New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

RIYADH: Saudi Arabia has the second-lowest methane intensity in oil and gas production when compared to other crude-producing countries, according to new research by the King Abdullah Petroleum Studies and Research Center.

Working in collaboration with global environmental intelligence company Kayrros, KAPSARC used satellite technology to analyze emissions from 2016 to 2022.

The findings show that the Kingdom’s oil and gas sector was responsible for approximately 780 kilotons of methane in 2022, second only to Norway.

The emission estimates developed by are around 73 percent lower than those reported by the International Energy Agency and the Emissions Database for Global Atmospheric Research for the same year.

Fahad Alajlan, president of KAPSARC, said: “This stark difference underscores the groundbreaking nature of our findings, challenging existing norms and emphasizing the importance of our innovative approach in redefining our understanding of emissions in Saudi Arabia.”

The project estimates that methane emissions from the Kingdom’s oil and gas industry constitute only one-third of total releases, aligning with the most recent national greenhouse gas inventory submitted by the Saudi Clean Development Mechanism Designated National Authority in 2022.

Antoine Rostand, co-founder and president at Kayrros, said: “Producers should strive to emulate the Saudi model, introducing strong methane regulations to limit emissions of this potent greenhouse gas and using independent, verifiable, and reliable data to guide action.

“We’re pleased to be working with KAPSARC to advance the collective understanding of methane emissions and to be involved in this first-of-its kind practice.”

KAPSARC and Kayrros will present the project at the UN climate change conference in Dubai on Dec. 10, 2023, during a side-event session titled “Satellite Technology for Measuring and Tracking GHG Emissions.”


Pakistan targets $50 billion export goal in five years with focus on textile sector

Pakistan targets $50 billion export goal in five years with focus on textile sector
Updated 08 December 2023
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Pakistan targets $50 billion export goal in five years with focus on textile sector

Pakistan targets $50 billion export goal in five years with focus on textile sector
  • The country has set up Export Advisory Council while eyeing $100 billion export target in the long term
  • Pakistan’s commerce minister says the country needs export driven growth to alleviate financial challenges

KARACHI: Pakistan wants to increase its exports to $50 billion in five years, according to a commerce ministry statement released on Friday, by strengthening its textile sector and arranging a major expo to promote its products.

The country aims to achieve a $100 billion export target in the long term to address its recurrent economic crises. Last year, its export revenue stood at $39.42 billion, marking a 24.94 percent increase from 2021.

The official statement said an inaugural meeting of the country’s Export Advisory Council was chaired by the commerce minister Dr. Gohar Ejaz earlier in the day to discuss how to increase Pakistani exports and make them more competitive.

“Dr. Ejaz highlighted the importance of increasing exports as a means to bolster national income and drive economic development,” the ministry announced. “He stressed that a robust export strategy can potentially alleviate the burden of debt, positioning Pakistan competitively in the global market.”

“As part of the broader agenda, the council also considered proposals to elevate domestic exports to $50 billion within the next five years,” it added.

The minister acknowledged the textile sector had traditionally made the largest contribution to the country’s exports, though he maintained it had still been operating far below its actual potential.

“To address this, the council discussed plans to organize a Textile Expo, a dedicated platform aimed at boosting textile exports,” said the statement.

Ejaz expressed confidence that Pakistan’s textile exports could reach $50 billion through concerted efforts and strategic initiatives, contributing significantly to the country’s overall economic growth.

Pakistan’s textile sector is frequently described as the backbone of its economy and employs 40-45 percent of the total labor force in the country.

The minister envisioned Pakistan’s GDP to rise to $1 trillion dollars, saying it would increase its average per capita income three times.

He also emphasized that Pakistan needed export driven growth to alleviate balance of payments problem.

The commerce ministry informed the new council comprised of prominent figures and would help address pressing challenges faced by Pakistani export sector.


Saudi Arabia, Hong Kong sign agreement to boost direct investment

Saudi Arabia, Hong Kong sign agreement to boost direct investment
Updated 08 December 2023
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Saudi Arabia, Hong Kong sign agreement to boost direct investment

Saudi Arabia, Hong Kong sign agreement to boost direct investment

RIYADH: Direct investment opportunities between Saudi Arabia and Hong Kong are set to grow after a new agreement was inked.

A memorandum of understanding focusing on greater cooperation across funding avenues was signed in the Asian city in presence of the Kingdom’s Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih.

The agreement aims to enhance and encourage direct investment between Saudi Arabia and Hong Kong by facilitating the exchange of rules and regulations related to the business environment and its developments. 

The memorandum also seeks to support and promote exhibitions and work sessions, and facilitate exchange visits and experiences in order to enhance direct investment opportunities.

The agreement came during the visit of a high-level Saudi delegation of government and private sector leaders to China and Hong Kong.

The deal is the latest evidence of the Kingdom’s growing relationship with the city, which is classed as a special administrative region of China.

In November, Hong Kong’s stock market became the first in the Asia Pacific region to allow investors to speculate on an exchange traded fund investing solely in Saudi Arabia’s equities market.

The ETF tracks the FTSE Saudi Arabia Index, and has since attracted $1 billion in initial investment, making it one of the largest ever debuts in the territory. 

Ahead of its launch in November, Paul Chan, the financial secretary of the Hong Kong Government, said: “The asset size of this ETF is the largest of its kind in the world, and it can be said to be a practical example of the financial connectivity of the Belt and Road Initiative.” 

He added: “I look forward to more two-way co-operation on financial products between the two places in the future, so as to make financial connectivity and capital flow wider and broader.”  

In February 2023, both exchanges signed a memorandum of understanding to collaborate in sectors such as fintech and environmental, social, and governance, exploring listing opportunities. 


Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market
Updated 08 December 2023
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Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

LONDON: Oil benchmarks were headed for a seventh straight weekly decline on worries over a global supply surplus and weak Chinese demand, although prices recovered ground on Friday after Saudi Arabia and Russia called for more members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to join output cuts, according to Reuters.

Brent crude futures rose $1.29, or 1.7 percent, to $75.34 a barrel by 6:59 a.m. Saudi time, while US West Texas Intermediate crude futures gained $1.11, or 1.6 percent, to $70.45 a barrel.

Both benchmarks slid to their lowest since late June in the previous session, a sign that many traders believe the market is oversupplied. Brent and WTI are also in contango, a market structure in which front-month prices trade at a discount to prices further out.

“Some short sellers closed their position as the oil market was seen oversold. Meanwhile, the plunging oil prices forced OPEC+ to improve solidarity to calm the market,” said analysts from Haitong Futures in a note.

Saudi Arabia and Russia, the world’s two biggest oil exporters, on Thursday called for all OPEC+ members to join an agreement on output cuts for the good of the global economy, only days after a meeting of the producers’ club.

The organization agreed to a combined 2.2 million barrels per day in output cuts for the first quarter of next year.

“Despite OPEC+ members’ pledges, we see total production from OPEC+ countries dropping by only 350,000 bpd from December 2023 into January 2024 (38.23 million bpd to 37.92 million bpd),” said Viktor Katona, lead crude analyst at Kpler.

Some of the OPEC+ countries may not adhere to their commitments due to muddied quota baselines and dependence on hydrocarbon revenues, Katona said.

Brent and WTI crude futures are on track to fall 4.5 percent and 4.8 percent for the week, respectively, their biggest losses in five weeks.

Concerns about China’s economy and surging US oil output have also fueled the market’s downturn this week.

Chinese customs data showed its crude oil imports in November fell 9 percent from a year earlier as high inventory levels, weak economic indicators and slowing orders from independent refiners weakened demand.

In India, fuel consumption in November fell after touching a four-month peak the previous month, hit by reduced travel in the world’s third-biggest oil consumer as a festive boost fizzled.

In the US output remained near record highs of more than 13 million bpd, US Energy Information Administration data showed on Wednesday.