Saudi Arabia signs $1bn deal with Indian firm to produce specialized agricultural chemicals  

Saudi Arabia signs $1bn deal with Indian firm to produce specialized agricultural chemicals  
UPL Group CEO Jai Shroff joined key industry leaders at the World Economic Forum to spread the word about the critical role sustainable agriculture can play in Saudi Arabia’s pursuit of net-zero. (Supplied)
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Updated 22 January 2023

Saudi Arabia signs $1bn deal with Indian firm to produce specialized agricultural chemicals  

Saudi Arabia signs $1bn deal with Indian firm to produce specialized agricultural chemicals  

RIYADH: Saudi Arabia’s Ministry of Investment has signed an agreement worth $1 billion to manufacture specialized agriculture chemicals within the Kingdom.   

The agreement was signed on the sidelines of the recently concluded World Economic Forum in Davos, Switzerland.   

The ministry signed the agreement with an Indian company, UPL Limited, which markets and manufactures agrochemicals and offers crop protection solutions.   

The new agreement comes in line with the goals outlined in Vision 2030, which eyes diversifying the Kingdom’s economic streams.   

Headquartered in Mumbai, UPL, which acquired Arysta LifeScience Inc. in 2019, is currently the fifth-largest generic agrochemicals company in the world after Bayer, Dupont, Syngenta and BASF.   

In December, Sustainalytics, a company that rates the sustainability of listed companies based on their environmental, social and corporate governance performance, ranked the highest-performing top-tier global crop protection company in its 2022 ESG rating.   

This is the third year UPL has been ranked in this industry leadership position for sustainability performance by Sustainalytics.   

“I am convinced UPL has the most agile and performance-oriented culture to execute a transformational strategy across the globe and to further our mission to support farmers and food systems alike,” said Jai Shroff, global CEO at UPL Ltd.   

In December 2022, Saudi Arabia’s Minister of Environment, Water and Agriculture Abdulrahman Bin Abdul Mohsen Al-Fadhli, who is also the chairman of the board of directors of the Agricultural Development Fund, approved the expansion plan in the plant resources sector and greenhouses with new investments valued at SR4 billion ($1.09 billion) until 2025.  

According to Al-Fadhli, the investment will help Saudi Arabia to increase its production capacity in the agricultural sector by adopting new technologies. 


Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 
Updated 13 sec ago

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

NEW YORK: An interest rate hike to 25 percent from the current 8.5 percent is on the cards for Turkey’s Monetary Policy Committee’s upcoming meeting on June 22, “if not earlier,” JPMorgan economists said on Monday. 

“A policy rate hike to 25 percent, from the current level of 8.5 percent, is on the table for 22 June or earlier, along with forward guidance suggesting smaller rate hikes if needed,” the Wall Street bank said to clients in an economic research note. “We maintain our year-end policy rate forecast at 30 percent.” 

Years of unconventional policies such as cutting interest rates despite hot inflation have weighed on investor views of Turkey, as well as on voter sentiment ahead of President Tayyip Erdogan’s reelection late last month. 

But there has been guarded optimism for a shift in monetary policy since veteran policy maker Mehmet Simsek returned to head Turkey’s Finance Ministry. 


Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 
Updated 23 sec ago

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

Turkey rate hike to 25% in June is ‘on the table’ — JPMorgan 

NEW YORK: An interest rate hike to 25 percent from the current 8.5 percent is on the cards for Turkey’s Monetary Policy Committee’s upcoming meeting on June 22, “if not earlier,” JPMorgan economists said on Monday. 

“A policy rate hike to 25 percent, from the current level of 8.5 percent, is on the table for 22 June or earlier, along with forward guidance suggesting smaller rate hikes if needed,” the Wall Street bank said to clients in an economic research note. “We maintain our year-end policy rate forecast at 30 percent.” 

Years of unconventional policies such as cutting interest rates despite hot inflation have weighed on investor views of Turkey, as well as on voter sentiment ahead of President Tayyip Erdogan’s reelection late last month. 

But there has been guarded optimism for a shift in monetary policy since veteran policy maker Mehmet Simsek returned to head Turkey’s Finance Ministry. 


Oil Updates — crude down as global economic backdrop outweighs Saudi output cut 

Oil Updates — crude down as global economic backdrop outweighs Saudi output cut 
Updated 54 min 33 sec ago

Oil Updates — crude down as global economic backdrop outweighs Saudi output cut 

Oil Updates — crude down as global economic backdrop outweighs Saudi output cut 

RIYADH: Oil prices edged lower early on Tuesday, coming off gains made the previous day as concerns about the global economic backdrop outweighed the supply worries raised when Saudi Arabia announced its biggest output cut in years. 

Brent crude futures slipped 70 cents, or 0.91 percent, to $76.01 a barrel by 10:00 a.m. Saudi time, while US West Texas Intermediate crude fell 74 cents, or 1.03 percent, to $71.41 a barrel. 

Brent gained as much as $2.60 on Monday and US crude as much as $3.30 after Saudi Arabia, the world’s top exporter, said at the weekend its output would drop by 1 million barrels per day to 9 million in July. 

The benchmarks pulled back, though, to more modest gains by the end of the day. 

Saudi Arabia raises July flagship crude price for Asia 

Saudi Arabia has increased the price of its flagship crude Arab Light to Asian buyers in July to a six-month high.  

The official selling price for July-loading Arab Light to Asia was increased by 45 cents a barrel from June to $3 a barrel over Oman/Dubai quotes, according to a statement issued by state oil giant Saudi Aramco. 

Meanwhile, Russian crude oil continued flooding into Asia at steep discounts. In May, China and India brought in an all-time-high volume of Russian crude, according to preliminary assessments from ship trackers. 

Saudi Arabia also raised the July OSPs of other grades to Asia, all by 45 cents from the June levels. For the second straight month, the price for Arab Extra Light is set lower than Arab Light, according to the price document, Reuters reported.  

For other regions, the top oil exporter increased its July Arab Light OSP to northwest Europe by 90 cents to $3 a barrel above ICE Brent. 

(With input from Reuters) 


Qatar’s budget surplus hit $5.4bn in Q1 exceeding expectations  

Qatar’s budget surplus hit $5.4bn in Q1 exceeding expectations  
Updated 05 June 2023

Qatar’s budget surplus hit $5.4bn in Q1 exceeding expectations  

Qatar’s budget surplus hit $5.4bn in Q1 exceeding expectations  

RIYADH: Qatar registered more than two-thirds of its expected 2023 budget surplus in the first three months of the year thanks to a large inflow of oil and gas revenues, the country’s Finance Ministry has revealed.

According to Qatar’s state news agency, the country’s trade balance was 19.7 billion Qatari riyals ($5.4 billion) in the black for the first quarter of the year, the equivalent of 68 percent of its anticipated budget surplus for 2023.

The figure reflects a 70 percent increase compared to the fourth quarter of 2022, which saw a profit of 11.6 billion riyals. 

The total revenues in the first three months of 2023 reached 68.6 billion riyals, of which 63.4 billion came from oil and gas revenues.  

Non-oil revenues made up the remaining 5.2 billion riyals during the period.  

According to previous expectations, the Gulf nation was anticipated to record a budget surplus of 29 billion riyals by the end of 2023.  

Budget estimates were based on the oil prices of $65 per barrel, whereas the first quarter saw an average price of $82.2, leading to the higher revenue. 

While issuing this year’s budget, Finance Minister Ali Al-Kuwari noted the surplus is expected to go toward repaying Qatar’s public debt, boosting central bank reserves, and increasing the capital of the state’s sovereign wealth fund.

In April 2023, Qatar recorded a trade surplus of 22 billion riyals, according to a report released by the country’s Planning and Statistics Authority in May.   

The data reflected a 3.5 percent increase over March while a 35.6 percent decline on an annual basis.   

The value of merchandise imports during April 2023 also fell 6.3 percent from the previous year and 9.3 percent from the last month to reach an estimated 8.7 billion riyals.  

Meanwhile, the value of Qatar’s exports of oil, gas, and condensate tumbled in April to 18.6 billion riyals, reflecting a decrease of 33.2 percent on an annual basis.  


Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM
Updated 06 June 2023

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

Saudi Arabia’s first sustainable guarantee issued to green hydrogen project at NEOM

RIYADH: Saudi Arabia’s green hydrogen project being developed at NEOM received the Kingdom’s first sustainable guarantee from the British bank Standard Chartered, which agreed to extend funding support for its contractor Larsen & Toubro to build the necessary renewable energy infrastructure. 

Located at Oxagon, the world’s largest green hydrogen plant is being built by NEOM Green Hydrogen Co., which is an equal joint venture between ACWA Power, Air Products and the $500-billion giga-project.

Sustainable guarantees are issued by lending agencies for green projects that make positive contributions to the environment. 

The megaplant will produce green hydrogen at scale for global export in the form of green ammonia with a total investment of $8.4 billion. The project, which recently achieved full financial closure, is supported by 23 local, regional and international banking and financial institutions. 

In addition to limiting carbon emissions and promoting sustainable development in the Kingdom, this step will add to the country’s diversification efforts.   

“We are pleased to issue the first sustainable guarantee in the Kingdom of Saudi Arabia which supports the growth and development of green hydrogen. At Standard Chartered, we know that technological and financial innovation is critical in supporting the global transition towards a low-carbon economy,” said Mohammad Salama, Standard Chartered’s regional head of corporate, commercial, and institutional banking in the Middle East and North Africa. 

Standard Chartered said the sustainable guarantee will ensure that L&T receives the necessary financial support for the development of the wind and solar farms to support the green hydrogen generation in this project while meeting the bank’s environmental, social and governance standards. 

This comes after L&T won a $2.78 billion contract to establish the renewable energy generation, storage and grid infrastructure, from Air Products, which is the system-integrating engineering, procurement and construction contractor for the project.   

As part of the contract, L&T will engineer, procure and construct a 2.2 gigawatts alternating current photovoltaic solar plant, a 1.65 GW wind generation balance of plant and a 400 megawatt-hour battery energy storage system under the power elements package. 

Its subsidiary L&T Saudi Arabia is responsible for the design, local supplies, construction and commissioning of the renewable and grid packages while the international supplies will be handled by its other subsidiary LTIFZE. 

“Through such initiatives, we emphasize the power of partnerships in fostering sustainable development and practices. We remain focused on continuing to grow our green business in Saudi Arabia in partnership with and continued support from Standard Chartered as one of our key relationship banks,” said R. Shankar Raman, the chief financial officer at L&T Group.