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

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


Middle East hotels’ F&B segment remains a strong earner despite pressures: panel

Middle East hotels’ F&B segment remains a strong earner despite pressures: panel
Updated 12 sec ago
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Middle East hotels’ F&B segment remains a strong earner despite pressures: panel

Middle East hotels’ F&B segment remains a strong earner despite pressures: panel

ABU DHABI: The Middle East hotels’ food and beverage segment contributes strongly to topline numbers despite operational pressures and challenges to the hospitality industry. 

“This region still has quite a strong proportion of the revenue capital that comes from food or beverage … So when it comes from a percentage perspective and in fact, if I widened it to the Middle East, about 40 percent of hotel revenue is dumped into the beverage. So it’s certainly a really important factor for investors in this region,” Michael Grove, chief operating officer of industry benchmarking outfit Hotstats, said on the opening day of the Future Hospitality Summit in Abu Dhabi. 

The three-day industry event gathers over 1,000 hospitality leaders around the theme “Focus on Investment,” with over 150 speakers expected in panel discussions, one-on-one interviews, roundtables and innovation pitches. 

The region has seen a “dramatic growth in average rates or rooms performance,” Grove said, such that some indicators, when indexed on a 12-month rolling trend, showed that a big chunk of revenue stream among UAE hotels came from beverage sales. 

Another trend, according to the Hotstats executive, was the resurgence of conferences and events: “You know competition is coming back.” 

“We have seen certainly ... the fears we had during the pandemic as to what would happen due to hybrid working (and) all of the other things, and how that would impact not just restaurants but, of course, the actual spending on the conference. It is again a huge chunk of revenue from the large hotels in the region,” Grove said. 

“What we’re looking at is how much things have changed versus pre-pandemic by area of the business. You can see we’ve seen growth in all areas of the business. But actually that chunk of food or beverages … that we’ve really seen a bit of a decline. 

“There is a lot more ability for people to eat and drink outside of hotels now, which again, going back a few years ago, hotels were the real place people could go. You could eat and drink in your bedrooms again; this region, I think, really maximized that opportunity,” Grove continued. 

He added that food and beverage profitability has become a challenge even in some parts of Europe, where hotels return as low as 12 percent profit margins. However, the Middle East region is “still significantly higher than that.” 

But Middle East hoteliers nonetheless have been able to offset cost challenges — such as the cost of inputs and labor — by making significant operational changes to run more efficiently during the pandemic. 

“Actually, we can see from the numbers that there’s been quite a shift in the way that we operate through the beverage industry. We definitely operate more efficiently, and I don’t think to the detriment of our hotel performance,” Grove said. 

In one of the discussions at the event, food and beverage executives said celebrity chefs and their accompanying franchises were important from a performance standpoint, but due diligence was needed because franchising is a long-term commitment and very difficult to disengage. 

“A lot of people sell franchises with all due respect, but what’s the sign … that you get that top-notch service on any franchise that is signed up with?” asked Marvin Alballi, the head of food and beverage at Arenco. 

“We need to also understand if the brand fits in the local market… to understand if there’s going to be some traction and if the brand has a huge amount of followers and get attractive, specific training.” 

Tatiana Veller, managing director at Stirling Hospitality Advisors, meanwhile told the panel: “As asset managers, definitely our function is to make sure that every square meter on the property that industry builds makes money for them … and this little secret, of course, is that profitability for the food and beverage square meters is declining.”

Speaking on labor issues, she added: “Your outfits are only as profitable, and you can only deliver … to the extent that you can bring the right people in. And it has been a huge issue here and continues to be a huge issue. Yes, our margins are good, but it’s still difficult to hire high quality that can deliver that power and service.” 


Saudi industry minister conducts meetings with Chinese mining companies

Saudi industry minister conducts meetings with Chinese mining companies
Updated 6 min 43 sec ago
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Saudi industry minister conducts meetings with Chinese mining companies

Saudi industry minister conducts meetings with Chinese mining companies

RIYADH: In a bid to strengthen economic ties between Saudi Arabia and China, the Kingdom’s minister of industry and mineral resources held bilateral discussions with leading mining companies during a visit to Shanghai.

During his meeting, Bandar Alkhorayef consulted with the chairman of CMOC Group, Yuan Honglin, to explore potential opportunities within the natural resources sector. The assembly touched on the utilization of accumulated experience in mining and processing, including smelting and refining of both essential and rare metals, according to the Saudi Press Agency. 

Alkhorayef also spoke on different topics related to the iron and steel industry with Wang Ming, a senior figure from Baosteel.

Furthermore, the minister conducted a series of talks in the Chinese city, during which he met with the chairmen of Kingfa, CATL, Liaoning Fangda Group, and China Gas. 

In addition to discussing areas of cooperation, these conversations focused on enhancing industry and mining collaboration, exchanging experiences between private sector organizations, and opinions on how the sectors in both countries are developing. 


Marriott announces 2 luxury properties in NEOM’s mountain destination 

Marriott announces 2 luxury properties in NEOM’s mountain destination 
Updated 12 min 21 sec ago
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Marriott announces 2 luxury properties in NEOM’s mountain destination 

Marriott announces 2 luxury properties in NEOM’s mountain destination 

RIYADH: Marriott International has announced hotels from two of its brands are to be built in NEOM’s mountain destination, Trojena.

A W Hotel will be constructed along with a JW Marriott facility in a solidifying of the partnership between the hospitality giant and the giga-project.

The opening of these new hotels aligns with Trojena’s mission to redefine mountain tourism on a global scale, embracing the ethos of ecotourism and setting a new standard for sustainable luxury, according to a statement.


Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector

Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector
Updated 42 min 51 sec ago
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Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector

Abu Dhabi launches $2.7bn investment plan to boost manufacturing sector

RIYADH: Abu Dhabi is embarking on an economic transformation with a 10 billion dirhams ($2.7 billion) investment plan to bolster its manufacturing sector through six strategic programs. 

The goal is to more than double the sector’s size, reaching 172 billion dirhams, creating 13,600 skilled jobs and boosting non-oil exports by 2031, said top executives at a workshop organized by the Ministry of Industry and Advanced Technology on Sunday. 

Speaking at the workshop, Industrial Development Bureau Executive Director Arafat Al-Yafei said: “The programs include talent development, ecosystem enablement, industry 4.0, circular economy, homegrown supply chain and value chain development.” 

According to Al-Yafei, the number of new industrial licenses has grown by 16.6 percent since the Abu Dhabi Industrial Strategy was launched in June 2022. 

Moreover, total capital investments by manufacturers operating in the emirate have increased by 12.42 billion dirhams to 384.06 billion dirhams in the year ending June 2023. 

During the workshop, Al-Yafei emphasized the importance of the collaboration of MoIAT and Abu Dhabi Chamber of Commerce and Industry in raising awareness about programs and incentives designed to attract talent and investments, capitalizing on the abundant opportunities within the emirate’s industrial sector. 

Abu Dhabi Chamber CEO Ahmed Khalifa Al-Qubaisi reaffirmed the institution’s commitment to supporting the local business community and facilitating the growth of the industrial sector. 

He emphasized the sector’s consistent progress, particularly after Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed launched the ADIS. 

ADIS aims to solidify Abu Dhabi’s position as the most competitive industrial hub in the region. 

Salama Al-Awadhi, director of the National In-Country Value Program at the Ministry of Industry and Advanced Technology, also underscored MoIAT’s collaboration with public and private partners. 

She said: “MoIAT collaborates with public and private sector partners to strengthen the role of the national industrial and technological landscape. This aligns the sector with the direction of global transformation.” 

Al-Awadhi added: “The ministry is committed to supporting this direction, which aligns with the UAE’s development goals.” 

Abu Dhabi’s substantial investment in its manufacturing sector, along with strategic partnerships and initiatives, is poised to catalyze economic growth, job creation and increased exports, firmly positioning the emirate as an industrial hub in the region. 


Egypt launches bid round for gas and oil exploration in 23 new areas — statement

Egypt launches bid round for gas and oil exploration in 23 new areas — statement
Updated 52 min 46 sec ago
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Egypt launches bid round for gas and oil exploration in 23 new areas — statement

Egypt launches bid round for gas and oil exploration in 23 new areas — statement

DUBAI: Egypt’s petroleum ministry launched on Monday an international bid round for gas and oil exploration in 23 new areas, it said in a statement, according to Reuters.

The bid includes 10 areas in Egypt’s Western Desert, two in the Eastern Desert, seven in the Gulf of Suez, and four areas in the Red Sea, it added.