Saudi Arabia, Sweden to bolster trade relations with joint economic action plan 

Saudi Arabia, Sweden to bolster trade relations with joint economic action plan 
The new economic action plan includes holding Saudi-Swedish Joint Business Council meetings and organizing specialized trade delegations’ visits (Shutterstock)
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Updated 05 January 2023
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Saudi Arabia, Sweden to bolster trade relations with joint economic action plan 

Saudi Arabia, Sweden to bolster trade relations with joint economic action plan 

RIYADH: Saudi Arabia is in talks with Sweden to develop a joint economic action plan for 2023 to bolster trade and investment relations between the two countries. 

The discussions took place between Hussein Al-Abdulkader, the secretary-general of the Federation of Saudi Chambers and Petra Menander, the Swedish ambassador to the Kingdom, Al Ekhbariya reported. 

The pair discussed the prospects for trade and investment relations, advancing the path of cooperation between the business sectors in both countries and the opportunities available for Swedish firms in the largest Arab market in the region. 

The new economic action plan includes holding Saudi-Swedish Joint Business Council meetings and organizing specialized trade delegations’ visits. 

Additionally, the plan also entails promoting business opportunities and partnerships in small and medium enterprises, entrepreneurship, innovation, health, renewable energy and technology. 

Moreover, the plan will shed light on the available investment opportunities in both countries. 

This bilateral talk comes as Saudi Arabia’s imports from Sweden reached SR5.45 billion ($1.45 billion) in 2021, according to the UN Comtrade database on international trade. The Kingdom’s exports to Sweden stood at SR416 million during the same year. 

Last year, investment opportunities in Saudi Arabia and Sweden were in the spotlight during a two-day Saudi-Sweden event at Expo 2020 Dubai.   

A series of panel discussions explored how to boost mutual trade relations between the two nations. 

“Saudi Arabia welcomes and invites Swedish companies to invest in our country and to take advantage of the opportunities and initiatives of the Kingdom’s Vision 2030, especially in sustainability, smart cities, manufacturing industries and areas such as e-commerce and information technology,” said Hussain Hanbazazah, commissioner general of the Kingdom of Saudi Arabia pavilion during his opening remarks at the Expo event. 

Similarly, in 2022, the Kingdom and Finland agreed to form a new bilateral organization to boost the SR1.9 billion trading relationship between the two countries.   

Representatives from the Federation of Saudi Chambers and the Finnish Chamber of Commerce signed a memorandum of understanding in Helsinki to establish a joint Saudi-Finnish Business Council.   

The new body was set to focus on developing new areas of economic cooperation and promoting links between the Saudi and Finnish business sectors, according to the Saudi Press Agency.  

The Federation also signed an MoU with the governmental organization “Business Finland,” which will focus on financing and promoting trade and investment between the two countries — particularly in the sectors of technology, digitalization, energy, circular economy, mining, transport and logistics services, healthcare and water. 


Saudi Arabia, US collaborate to drive outer space exploration

Saudi Arabia, US collaborate to drive outer space exploration
Updated 11 sec ago
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Saudi Arabia, US collaborate to drive outer space exploration

Saudi Arabia, US collaborate to drive outer space exploration

RIYADH: Space exploration involving Saudi Arabia and the US will strengthen thanks to a new agreement aimed at advancing discovery methods.

Amid the visit made by the Minister of Communications and Information Technology and Chairman of the Saudi Space Agency Abdullah bin Amer Al-Swaha to the North American country, both nations agreed to further stimulate commercial opportunities as well as exploratory missions related to space, according to a joint statement. 

This move falls in line with the collaborative efforts between nations to push advancements within the sector. It also aligns well with recent partnerships formed in various fields and industries. 


Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts
Updated 28 November 2023
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Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

Oil Updates – prices rise on weak dollar, expectations for OPEC+ output cuts

SINGAPORE: Oil prices rose slightly on Tuesday due to a weak dollar, and expectations that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, would deepen and extend output cuts due to fears demand would remain subdued, according to Reuters.

Brent crude futures were up 11 cents, or 0.1 percent, at $80.09 a barrel at 8:10 a.m. Saudi time. 

US West Texas Intermediate crude futures were trading 4 cents higher, also 0.1 percent, at $74.90 a barrel. Both benchmarks pared some gains after rising sharply in early Asian trade.

OPEC+, which includes Russia, will hold an online ministerial meeting on Nov. 30 to discuss production targets for 2024.

The meeting comes amid a sharp decline in oil prices, due to concerns that the market was oversupplied despite output cuts by the OPEC+. Brent has fallen by more than 18 percent and WTI by over 21 percent since end-September highs. Strong production by non-OPEC countries such as the US have added to pressure on prices.

OPEC+ set oil prices tumbling last week by postponing its meeting in order to iron out disagreements over production targets for African producers. But it has moved toward a compromise, four OPEC+ sources told Reuters on Friday, potentially helping a consensus on the need to deepen output cuts.

The decline in prices could spare Riyadh any pressure from the US to limit output cuts, according to analysts.

“Saudi Arabia may be comforted that US gasoline prices have fallen for 60 straight days. This may soften the US opposition to any move to tighten oil markets and support prices,” ANZ Research said in a note on Tuesday.

The US dollar’s retreat to its lowest level in three months should bolster demand fronm countries who pay for their oil in other currencies.
 


PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 
Updated 28 November 2023
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PIF secures $5bn syndicated term loan covered by K-SURE 

PIF secures $5bn syndicated term loan covered by K-SURE 

RIYADH: Saudi Arabia’s Public Investment Fund has secured a term loan of $5 billion from a group of nine international lenders, covered by the Korea Trade Insurance Corp. This agreement signifies PIF's ongoing effort to diversify its funding sources in a strategic manner. 

This financing arrangement, with a tenor of 13 years, initially set at $3 billion and expandable to $5 billion, marks PIF’s first venture into funding covered by an export credit agency. 

Building on a memorandum of understanding signed in March 2022, PIF and K-SURE have translated their intentions into action, resulting in this significant K-SURE-covered term loan. 

Fahad Al-Saif, head of the global capital finance division at PIF, said: “This collaboration with K-SURE underscores PIF’s commitment to foster institutional partnerships as we continue to deliver on our medium-term capital raising strategy.” 

He added: “The financing is part of PIF’s four primary sources of funding and strengthens economic ties between Saudi Arabian and South Korean businesses.”

The collaboration aims to facilitate the export of Korean goods and services into projects and subsidiaries, either partially or fully owned by PIF, strengthening economic ties. 

“Through this financial support, Korean companies have not only gained technological competitiveness but also financial competitiveness to increase orders,” said Inho Lee, president of K-SURE.

He added: “We trust this support will contribute to strengthening the future-focused partnership between the two countries.” 

The deal follows PIF’s recent financial activities, including an international sukuk issuance of $3.5 billion, two green bond issuances totaling $8.5 billion, and a $17 billion corporate loan in 2022. 

These diverse funding initiatives align with PIF’s strategy to source capital from an expanding range of options, with loans and debt instruments being one of its primary sources. 

Beyond financial instruments, PIF drew funding from retained earnings from investments, capital injections from the government, and the transfer of state assets to PIF.

The fund holds a strong credit rating, with Moody’s allocating it “A1” with a positive outlook and Fitch giving it “A+” with a stable outlook, reinforcing its financial strength and stability.


Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

Saudi housing market remained hot in Q3 with $45.9bn worth of transactions
Updated 27 November 2023
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Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

Saudi housing market remained hot in Q3 with $45.9bn worth of transactions

RIYADH: Saudi Arabia’s housing market remained hot in the third quarter of 2023 with the total transactions reaching 61,473 worth SR45.9 billion ($12.23 billion), an industry report showed.

The report released on Monday by global consultancy firm CBRE showed that the average price for apartments in the Saudi capital rose to SR4,780 per sq. meter, a growth of 16.1 percent compared to a year earlier.

During this period, Alkhobar’s average apartment prices saw an uptick of 2.9 percent to reach SR3,424 per sq. meter, while Dammam’s average apartment prices rose by 2.4 percent to stand at SR2,862 per sq. meter.

The only apartment market to regress in terms of prices was in Jeddah, where average apartment prices fell by 9.5 percent to reach SR3,872, the report showed.

Taimur Khan, head of Middle East Research at CBRE, said: “With the exception of Jeddah, Saudi Arabia’s residential market posted yearly price increases in all tracked cities in Q3 2023 across both the villa and apartment segments.”

He added: “These performances were achieved despite a fall in residential transactions, which stemmed from high-interest rates and as buyers continue to adopt a wait-and-see approach in anticipation of new quality stock which is set to be delivered in the short to medium term.”

In the villa segment of the market, average prices in Riyadh, Dammam, and Alkhobar have shown gains in the 12 months to the third quarter of 2023. In Riyadh, the average price for villas improved by 1.2 percent year on year, reaching SR5,615 per square meter. Dammam and Alkhobar’s average villa prices increased by 1.8 percent and 3.2 percent over the same period in 2022, where average prices registered at SR3,565 and SR3,612 per sq. meter, respectively. Jeddah’s villas segment contracted in the year to the third quarter of 2023 by 3 percent, where average villa prices stood at SR5,411 per sq.meter.

The report, however, showed in comparison to the same period in 2022, the total number of transactions demonstrated a drop of 7 percent, while the total value for residential property transactions in the Kingdom decreased by 11.3 percent.

The total number of mortgage contracts in the year to date to the third quarter of 2023 fell by 37.5 percent. Single-family homes accounted for 69.8 percent of the total value of lending, followed by apartments and land at 24.8 percent and 5.4 percent respectively.


Saudi Green Building Forum to affirm commitment to sustainability at COP28

Saudi Green Building Forum to affirm commitment to sustainability at COP28
Updated 27 November 2023
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Saudi Green Building Forum to affirm commitment to sustainability at COP28

Saudi Green Building Forum to affirm commitment to sustainability at COP28

RIYADH: Affirming the Kingdom’s commitment to a sustainable future, the Saudi Green Building Forum is set to participate in the 28th session of the UN Climate Conference, also known as COP28, in Dubai. 

Taking place in the Blue Zone pavilion, the SGBF’s schedule of associated events is outlined across three key areas, including technology and innovation, inclusion, and finance, centering around frontline communities. 

“The SGBF pavilion works to build the capabilities of all heads of companies and bodies related to the public or private sector, providing opportunities for its members, individuals and institutions, joining in person and virtually including 27 SGBF Observers experts in the areas of sustainable development within the Blue Zone of the conference at the United Nations, UNFCCC (United Nations Framework Convention on Climate Change),” Faisal Al-Fadl, secretary-general of SGBF said. 

In a notable collaboration, Magnom Properties and Rawabi Holding, the owners of the Forbes International Tower, will also be present at the pavilion. 

Held in collaboration with Forbes International Tower, these keynote addresses and panel discussions will include ministers, public servants, UNFCCC leaders, climate action advocates, business and industry executives, and sustainability consultants. 

The objective is to address the decarbonization of the construction sector in the region and highlight green frontlines and initiatives that drive the effort for a more sustainable construction sector. 

In response to COP28, the forum is committed to collaborating with climate change stakeholders in promoting Sustainable Development Goals set by the UN General Assembly in 2015 in four key areas, including accelerating green energy solutions and prioritizing clean water efficiency. 

Furthermore, these domains include addressing climate finance through green energy initiatives, future-proofing the built environment, and conserving natural resources to safeguard nature, lives, and livelihood. 

“This participation is unique to the area for developing business and industries displaying the best building and construction practices, as the Blue Zone is a high-level space for delegates of member states countries and observers nominated by the SGBF,” Al-Fadl added. 

Additionally, the program will feature a series of panel discussions on the Paris Agreement, regional meetings with officials, and workshops. 

As the program kicks off, the opening keynote on Dec. 2 by Osman Ibrahim, Rawabi Holding vice chairman and group CEO of Magnom Properties, will highlight elevating the standards of sustainability and environmentally responsible practices in the region’s real estate sector. 

Sessions will examine topics ranging from powering the green building revolution in the region’s real estate sector and start-ups driving sustainable innovation. 

The nongovernmental institution, accredited by the UNFCCC, aims to enhance national gains in the field of combating climate change within international cooperation. 

Furthermore, the forum aims to showcase Saudi Arabia’s capabilities and the global collective efforts reflected in its national and international policies to reduce generational environmental impacts.