Saudi Cabinet approves regional center for climate change 

Saudi Cabinet approves regional center for climate change 
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Updated 08 March 2023
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Saudi Cabinet approves regional center for climate change 

Saudi Cabinet approves regional center for climate change 

RIYADH: A Regional Center for Climate Change will be established in Saudi Arabia after the Kingdom’s cabinet signed off on the plan as part of its initiatives to protect the environment.

During the meeting, chaired by Crown Prince Mohammed bin Salman at Irqah Palace in Riyadh, the cabinet announced that the focus of the center will be to build the knowledge base required to encourage adaptation to climate change, reduce its effects and achieve sustainability in line with the goals of the Saudi Vision 2030, the  Saudi Press Agency reported. 

The cabinet also endorsed the first wave of projects supported by the Private Sector Partnership Reinforcement Program, also known as Shareek. 

It said the program, worth over SR192 billion ($51.14 million), affirmed economic growth by fostering private-sector investment, boosting domestic content and raising the Kingdom’s gross domestic product. 

The cabinet’s recommendations also included launching the Saudi Program for Attracting International Companies Headquarters under the supervision of the Royal Commission for Riyadh City. 

The council of ministers touched on the Kingdom’s participation at the recent G20 Foreign Ministers’ meeting in New Delhi, emphasizing the importance of taking collective action to address global challenges and foster dialogue and peace to make the world safer. 

Among other decisions, the cabinet approved a memorandum of understanding for cooperation in the field of tourism between the Saudi Ministry of Tourism and the Kuwaiti Ministry of Information and Culture. 

It reviewed several regional and international issues, reiterating the commitment made by the Kingdom during the 40th meeting of the Council of Arab Interior Ministers to strengthen security cooperation, step up efforts to combat drug use, and address any issues that pose a threat to pan-Arab security. 

Meanwhile, the Cabinet ratified a memorandum of cooperation between the Saudi Ministry of Education and the Ministry of Education of China to teach Chinese in the Kingdom. 

It also consented to a memorandum of understanding between Saudi Arabia’s Oversight and Anti-Corruption Authority and the National Anti-Corruption Commission of Thailand in preventing and combating corruption.


Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 
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Qatar’s economy shows resilience with 1% growth in Q2: official data 

Qatar’s economy shows resilience with 1% growth in Q2: official data 

RIYADH: Qatar’s gross domestic product experienced a 1 percent growth in the second quarter of 2023 compared to the same period last year, according to official figures released by the Planning and Statistics Authority. 

The year-on-year GDP estimates, calculated at constant prices, reached 170 billion Qatari riyals ($46.7 billion) during the second quarter. This outpaced the revised estimates for the same period in 2022, which stood at 168.4 billion riyals.  

However, the GDP at current prices faced a downturn, declining by 13.7 percent in the second quarter of 2023, totaling 186.3 billion riyals. This contrasts with the estimate for the same quarter in the previous year, which reported a figure of 216 billion riyals.


Saudi Arabia, US collaborate to drive outer space exploration

Saudi Arabia, US collaborate to drive outer space exploration
Updated 9 min 24 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.