Saudi Arabia issues more than 200k certificates of origin since scheme launch in January

Saudi Arabia issues more than 200k certificates of origin since scheme launch in January
Saudi Arabia wants non-oil exports to make up 50 percent of its gross domestic product by 2030 (Shutterstock)
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Updated 24 July 2023
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Saudi Arabia issues more than 200k certificates of origin since scheme launch in January

Saudi Arabia issues more than 200k certificates of origin since scheme launch in January

RIYADH: A new scheme making it easier for Saudi businesses to export has issued more than 200,000 certificates of origin documents since its launch at the beginning of the year.

The Kingdom’s Ministry of Industry and Mineral Resources launched the program on Jan. 1, and up to the end of June some 203,932 of these documents were handed out to local exporters and manufacturers.

The internationally recognised certificates show in which country a commodity or good was manufactured, and enable smoother global commerce.

The scheme is part of the Kingdom’s goal under the Vision 2030 economic transformation initiative to increase the share of non-oil exports to Saudi Arabia’s gross domestic product from 16 percent to 50 percent by the end of the decade.

According to the London-based broker Trade Finance Global, the certificates ultimately make a product more cost-efficient to buyers and easier to sell. 

According to the ministry, this service also aims to support the national industry and facilitates procedures that lead to the growth and development of Saudi exports.

The ministry explained that the certificates targets industrial establishments, the commercial sector of companies and institutions, and individuals, including farmers, fishermen, and others. 

The certificates come in four varieties: first is provided to local products of countries within the Gulf Cooperation Council, and the second is dedicated to products of Arab countries. 

The third is a preferential type that is dedicated to Arab and GCC countries exporting to countries and economic federations with which they have free trade agreements.   

The ministry identified the fourth type as offered in both Arabic and English, which is reserved for the remaining countries that are not granted preferential treatment. 

Saudi Arabia’s industrial sector is seeing unprecedented expansion, with investments in the Kingdom’s manufacturing environment exceeding SR495 billion ($132 billion) in the seven years since Vision 2030 was launched. 

To boost this further, the Ministry of Industry and Mineral Resources issued 99 new industrial licenses in May — a move that is expected to secure SR20.1 billion in new investments.

Small enterprises acquired 89 percent of the new industrial licenses, followed by medium enterprises which bagged 10 percent of the permits, while micro-enterprises accounted for 1 percent.   


PIF’s Alat and KACST ink deal to propel Saudi Arabia’s semiconductor industry 

PIF’s Alat and KACST ink deal to propel Saudi Arabia’s semiconductor industry 
Updated 4 sec ago
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PIF’s Alat and KACST ink deal to propel Saudi Arabia’s semiconductor industry 

PIF’s Alat and KACST ink deal to propel Saudi Arabia’s semiconductor industry 

RIYADH: Semiconductor manufacturing in Saudi Arabia is to be boosted by workers from the Kingdom after Public Investment Fund company Alat signed a partnership to drive localization.

Inked with the King Abdulaziz City for Science and Technology, the deal aims to support national goals for research, development, and innovation in the energy and industry sectors by developing local capabilities, while positioning the Kingdom as a global hub for the strategic semiconductor industry. 

Signed at LEAP 2024 in Riyadh, the partnership agreement, inked by Muneer bin Mahmoud Al-Dosouqi, president of KACST, and Amit Midha, CEO of Alat, aligns with Saudi Vision 2030 goals for economic growth and diversification. 

Midha said: “Alat aims to enable the establishment of next generation industry in Saudi Arabia, and by partnering with a renowned institution such as KACST, with its deep expertise in advanced technologies and talent development, we will play an essential role in the creation of Saudi Arabia’s own semiconductor industry.” 

The agreement with KACST will be spearheaded by Alat’s Semiconductor Business Unit, overseeing the development and manufacturing of chips in three pivotal technology segments: power, perception, and processing. 


Minister launches digital products and services to support families during LEAP

Minister launches digital products and services to support families during LEAP
Updated 15 min 28 sec ago
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Minister launches digital products and services to support families during LEAP

Minister launches digital products and services to support families during LEAP

RIYADH: Saudi families are set to gain easy access to a diverse range of social and digital support services, according to the human resources and social development minister.

The offerings and products were unveiled by Ahmed bin Sulaiman Al-Rajhi on March 4 during LEAP 2024, the ongoing third edition of the world’s biggest tech event in Riyadh.

They were aimed at advancing the ministry’s digital transformation agenda and simplifying access to services for beneficiaries, according to the HRSD website.

The offerings encompassed the family guidance system and consultations, facilitating access to counsellors through accredited specialists. Additionally, the social specializations system was launched, overseeing the issuance and management of licenses for specialists, and validating their professional classifications.

The introduction of the family protection system facilitates the registration and monitoring of reported cases through integration with relevant security authorities, ensuring the confidentiality and safety of both beneficiaries and reporters.

Al-Rajhi also initiated the empowerment service on the social support and protection platform, with the goal of empowering and preparing social security beneficiaries for employment through customized training programs aligned with their educational qualifications and skill sets.

The support platform, which assisted over 100,000 young people in 2023, offers training opportunities for beneficiaries to enhance their cognitive skills, with a focus on aligning labor market needs with job seekers, assisting startups and small businesses, and enhancing the well-being of social security beneficiaries.

The services also included business management, aiming to facilitate business practice procedures to be automated and integrated between relevant entities through the Qiwa platform, aiming to improve beneficiary experience and maintain business continuity, in integration with 13 government entities.


Saudi Arabia’s non-oil sector hits 5-month high as PMI soars to 57.2

Saudi Arabia’s non-oil sector hits 5-month high as PMI soars to 57.2
Updated 05 March 2024
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Saudi Arabia’s non-oil sector hits 5-month high as PMI soars to 57.2

Saudi Arabia’s non-oil sector hits 5-month high as PMI soars to 57.2

RIYADH: Saudi Arabia’s non-oil economy exhibited improved growth, with business activity accelerating at the fastest rate in five months, as indicated by an economic tracker.  

The Kingdom’s Purchasing Managers’ Index rose to 57.2 in February, marking a notable improvement from a two-year low in January. This uptick signals a significant improvement in the operating conditions of the non-oil private sector, according to the Riyad Bank Saudi Arabia PMI report by S&P Global.  

The firm’s chief economist Naif Al-Ghaith attributed the rebound of the PMI in February to robust growth in output and new orders, particularly driven by the services and construction sectors.  

“The upturn reflected the continued thriving of non-oil activities in the Kingdom which recorded a 4.6 percent increase according to GASTAT (General Authority for Statistics) flash estimates. The survey results also signalled expectations of a modest recovery in demand this year driven by the acceleration of Vision 2030 projects,” he added.  

The report also noted that this reading is the highest since September 2023, attributed to an improvement in client demand and indications of increased tourism activity.  

New export orders also exhibited a modest rebound, a trend credited by Al-Ghaith to the rising demand for domestic products in international markets and the high competitiveness of local industries. This suggests potential expansion in production and employment opportunities, according to the economist. 

While new work inflows accelerated compared to January, with reports indicating stronger market conditions and an increase in new clients, some firms mentioned that heightened competition had a dampening effect on sales growth. 

The report also highlighted a surge in employment, growing at the fastest pace in eight years, which led companies to make a solid cut to their outstanding work. 

This growth is attributed to the increase in new business and the positive outlook of firms regarding future demand. This optimism has also led firms to secure a steady flow of inputs at discounted prices from suppliers, resulting in inventory levels reaching the highest point since August 2022, as per the report. 

In terms of input price inflation, the recent survey by S&P Global indicated a slight easing in February. Costs continued to rise significantly overall, albeit at the slowest pace since July of last year. 

Selling prices rose marginally as some firms passed on higher costs to customers, while others lowered fees due to increased competition. This resulted in prices lagging behind cost increases, putting pressure on margins, the report added. 


Oil Updates – crude price extends fall as China’s economic reforms underwhelm investors

Oil Updates – crude price extends fall as China’s economic reforms underwhelm investors
Updated 05 March 2024
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Oil Updates – crude price extends fall as China’s economic reforms underwhelm investors

Oil Updates – crude price extends fall as China’s economic reforms underwhelm investors

LONDON: Oil prices fell for a second day on Tuesday as pledges by China to transform its economy amid stuttering growth since the COVID-19 pandemic failed to impress investors concerned about slower consumption, according to Reuters.

Brent futures for May fell 16 cents, or 0.2 percent, to $82.64 a barrel by 9:01 a.m. Saudi time, while US West Texas Intermediate fell 28 cents, or 0.4 percent, to $78.46. Brent was on track to fall for the fifth straight session on Tuesday.

China vowed to “transform” its economic development model and curb industrial overcapacity while setting an economic growth target for 2024 of around 5 percent, similar to last year’s goal and in line with analysts’ expectations.

That target, which would likely provide a boost for fuel consumption if achieved, will be harder to reach this year as China in 2023 benefited from the favorable base effect of a COVID-19-hit 2022, analysts said, potentially weighing on investor sentiment.

The world’s biggest crude importer also pledged to step up the exploration and development of oil and natural gas resources but at the same time vowed to tighten control over fossil fuel consumption.

While concerns over the Chinese demand outlook pressured prices lower, supply factors stemming from major producers reducing output and geopolitical worries from the Israel-Gaza war underpinned crude.

The Organization of the Petroleum Exporting Countries and its allies on Sunday extended their voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter to support prices amid global growth concerns and rising output outside the group.

However, US crude oil inventories are expected to have increased by about 2.6 million barrels last week, according to a preliminary Reuters poll on Monday, while distillates and gasoline stockpiles were forecast lower.

“The market has been moving higher in recent weeks amid improving fundamentals. Rising spot prices indicate the physical market has begun to tighten amid a host of other supply side disruptions,” analysts at ANZ said in a note on Monday.


Egypt begins process for privatization of airports

Egypt begins process for privatization of airports
Updated 04 March 2024
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Egypt begins process for privatization of airports

Egypt begins process for privatization of airports
  • Egypt is due to set an international tender for operating Egyptian airports, which include Cairo International Airport

RIYADH: Egypt began the executive process for offering the management and operation of Egyptian airports to the private sector, a Cabinet statement said on Monday.

Egypt is due to set an international tender for operating Egyptian airports, which include Cairo International Airport, the country’s Civil Aviation Minister Mohamed Abbas Helmy has said.

Egypt is set to transition the management and operations of critical logistics and transportation entities to the private sector, starting with the aviation industry. 

In November 2023, Egyptian Prime Minister Mostafa Madbouly declared that seaports, dry ports and airports would be offered to private sector management in the near future. 

Madbouly highlighted a strong commitment to fostering partnerships with private entities in the stewardship and operational aspects of mass transit systems.

An integrated strategy has been formulated by the Egyptian Transport Ministry, in collaboration with global corporations, to begin localization of the industry. 

In July 2023, Egypt’s efforts to bolster its private sector and empower small and medium enterprises received $533.7 million in support from the European Bank for Reconstruction and Development as it undertakes massive privatization and restructuring measures for the public sector.  

Under the umbrella of Egypt 2022-2027 strategy, launched by the Minister of International Cooperation Rania Al-Mashat in March 2022, the EBRD approved development financing worth $400 million for the National Bank of Egypt to support SMEs, focusing on regional companies led or owned by young entrepreneurs.  

The bank also approved funding worth $100 million for Banque Misr to improve financing for SMEs in a way that promotes inclusive and sustainable growth. In addition, it aims to increase funding to SMEs in areas with limited access to financial services.

The EBRD also approved another funding for the Mediterrania Capital IV Fund at a value of €30.2 million ($33.7 million).