Camel milk set to provide sustenance for Saudi Arabia’s economic transformation

Camel milk set to provide sustenance for Saudi Arabia’s economic transformation
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Updated 09 December 2023
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Camel milk set to provide sustenance for Saudi Arabia’s economic transformation

Camel milk set to provide sustenance for Saudi Arabia’s economic transformation
  • Camels have long served as a crucial food, natural and cultural resource of the Middle East region

RIYADH: Saudi Arabia is currently one of the biggest producers of camel milk and a host of new ventures are making the business a lucrative one in the transformation of the country’s economy.

The Kingdom has an annual output of approximately 0.271 million tons of the product, and Saudi Arabia’s sovereign wealth fund has set up a new firm, Sawani Co., to catalyze the growth of the sector as part of its efforts to transform the country’s economy.

The move comes at a time when the Public Investment Fund’s various investments in the Saudi food and agriculture sector to support its produce industries gain momentum.

“Saudi Arabia has extensive experience and knowledge of the camel dairy industry, and enormous potential to expand its operational capabilities and wider ecosystem,” said Majed Al-Assaf, head of Consumer Goods and Retail in the Middle East and North Africa Investments Division at PIF, in a statement.

He added: “These factors represent a competitive advantage across the entire supply chain, which will enable significant growth of the industry, and eventually lead to the export of camel dairy products to regional and global markets.” 

Ahmed Gamaleldeen, CEO of Sawani, affirmed the company’s position in its sector, telling Arab News: “Sawani Co. has an essential role to play in elevating standards within the camel dairy sector. Based in Saudi Arabia with a global reach, our organization seeks to actively contribute to the development of the sector, highlighting the merit of camel-based products from both a health and commercial standpoint.”

He added: “We are committed to raising awareness of camel products through our operations and initiatives, helping to continue a longstanding tradition of sustainable camel milk production to serve Saudi Arabia, the region and other parts of the world.”

While seeking to become a leading producer of camel dairy products, the company will also place sustainability at the center of all stages of production, distribution, and marketing as well as raise awareness of the health benefits of camel dairy products among consumers.

Sawani looks to work with the private sector to boost production capacity and drive sustainable growth of the camel dairy industry.

This includes raising the standards of the domestic production ecosystem through modernizing operations and introducing best scientific practices, improving knowledge localization and transfer and investing in the sector’s latest manufacturing technologies. 

Saudi Arabia has extensive experience and knowledge of the camel dairy industry, and enormous potential to expand its operational capabilities and wider ecosystem.

Majed Al-Assaf, head of Consumer Goods and Retail in the Middle East and North Africa Investments Division at PIF

Highlighting the company’s aspirations within the camel dairy industry, Gamaleldeen said Sawani has both regional and international ambitions.

“With a myriad of health benefits associated with camel-based products, our aim is to showcase the product’s commercial viability as a solution for consumers who are lactose intolerant, diabetic or seeking nutrient-dense dairy products,” he said.

The CEO added that Sawani’s long-term strategy is rooted in “Saudi Arabia’s rich camel heritage and sustainable cohesion with one of nature’s most loyal and giving creatures.”

According to research company IMARC, the camel dairy market across the Gulf Corporate Council region reached a value of $702.4 million in 2022, and is expected to see a compound annual growth rate of 4.51 percent from 2023 to 2028.

Camels have long served as a crucial food, natural and cultural resource of the Middle East region.

They provide meat and milk as well as play a role in heritage rituals throughout Saudi Arabia and the greater Middle East. It is estimated that there are around 1.6 million camels in the Kingdom, with over half residing in the provinces of Riyadh, Makkah and the Sharqiya or Eastern Province.

Compared to cow’s milk, camel’s milk has lower levels of fat – perfect for those who are wishing to maintain a healthier lifestyle. 




Sawani looks to work with the private sector to boost production capacity and drive sustainable growth of the camel dairy industry. (Supplied)

It contains high amounts of vitamins A, B, E and C, and is also rich in calcium, iron, protein and antioxidants.

The UN Food and Agriculture Organization has endorsed products made from camel milk, saying such goods are greater in nutritional value than goat and cow’s milk in terms of vitamins, minerals and protein.

The Kingdom’s investment in the industry reflects Saudi Vision 2030 to diversify the economy away from its reliance on hydrocarbons.

In the Kingdom, three licensed projects are specializing in camel milk and its various uses, while three other initiatives have been granted preliminary licenses to manufacture consumable camel milk products. 

We are committed to raising awareness of camel products through our operations and initiatives, helping to continue a longstanding tradition of sustainable camel milk production.

Ahmed Gamaleldeen, CEO of Sawani

According to Shujaa Al-Bogmi, an associate professor at Imam Mohammad Ibn Saud Islamic University, Sawani’s investment in the camel industry will have a great impact on the growth of the market both locally and internationally.

It will not only raise the production standards for products made from camel milk, but also result in an increased demand for the products from the Gulf region.

An eagerness to make products from camel milk has already jump-started in the Kingdom.

In September, Sawani launched Noug, the first camel milk café opened in Riyadh, specializing in milk, cheese, butter and even gelato. 

HIGHLIGHT

The Kingdom has an annual output of approximately 0.271 million tons of the product, and Saudi Arabia’s sovereign wealth fund has set up a new firm, Sawani Co., to catalyze the growth of the sector as part of its efforts to transform the country’s economy.

As IMARC noted in its report, the increasing awareness of the health benefits of camel milk as well as the potential of the market for the product make it a favorable investment opportunity for government initiatives and a crucial catalyst for growth.

Investment in the market also has the potential to promote sustainable farming practices in the Kingdom.

To this end, Sawani is offering financial incentives and subsidies to encourage the growth of the camel dairy sector. Such support extends to both large-scale commercial farms and small-scale farmers, promoting inclusivity and sustainable growth in the industry.

As Gamaleldeen notes: “Sawani Company is dedicated to driving growth in Saudi Arabia’s camel dairy sector. As consumers become aware of the health benefits of camel-based dairy products, we aim to amplify awareness of products, ethically sourced from an animal that has remained a source of pride for the people of the Kingdom.”


China’s used vehicle exports rise exponentially

China’s used vehicle exports rise exponentially
Updated 03 March 2024
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China’s used vehicle exports rise exponentially

China’s used vehicle exports rise exponentially
  • Efforts have been made to streamline export procedures and enhance the used car export industrial framework, signaling the untapped potential within this sector

RIYADH: China has recorded a significant rise in the export of used cars over the last five years, a report in the People’s Daily Online showed.

According to the report, since the inception of a pilot program in 2019 aimed at exporting used automobiles, the number of vehicles dispatched from China witness a rise of over 250 percent in 2022 reaching 69,000 units, a substantial increase from approximately 15,000 units in the previous year. A substantial portion of these exports consists of new energy vehicles with Tianjin municipality, located in North China, being one of the pioneering cities for such exports. 

Enterprises within Tianjin’s Dongjiang bonded zone successfully exported a variety of vehicles, including engineering and commercial vehicles, alongside traditional and new energy passenger cars. Currently, NEVs constitute over 70 percent of the zone’s total used car exports.

The market for China’s used cars has expanded globally, reaching more than 140 countries, as highlighted at the 2023 annual conference of China’s automotive distribution industry. The primary destinations include five Central Asian countries, several African nations, and parts of Southeast Asia. Additionally, Russia has emerged as a key market since 2022.

The Russian market has shown consistent growth, with the European market also gaining momentum amid an energy crisis, leading to a significant increase in exports to both Western and Eastern Europe.

Efforts have been made to streamline export procedures and enhance the used car export industrial framework, signaling the untapped potential within this sector. With 435 million motor vehicles reported on China’s roads in 2023, the need for new markets is evident due to the vast vehicle population and the rapid turnover of cars.

Policy support has played a critical role in the expansion of used car exports. In July 2023, measures to boost automobile consumption were introduced, including incentives for exporting used cars that meet specific quality standards. Subsequent guidelines and support measures were announced, culminating in a notice issued on Feb. 7 to expand used car export operations nationwide.


Number of registered nonprofit organizations in Saudi Arabia hits 4,656

Number of registered nonprofit organizations in Saudi Arabia hits 4,656
Updated 03 March 2024
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Number of registered nonprofit organizations in Saudi Arabia hits 4,656

Number of registered nonprofit organizations in Saudi Arabia hits 4,656

RIYADH: The total number of registered nonprofit organizations in Saudi Arabia has reached 4,656 with the addition of 85 new firms in the sector in February, official data showed.

The National Center for Non-Profit Sector also revealed that the total number of volunteers in 2024 reached more than 113,000 across various fields.

The center disclosed that the sector recorded more than 4 million volunteer hours and over 43,000 volunteering prospects.

The surge aligns with the center’s aim to organize, activate, and expand the role of nonprofit sector organizations in different fields.

Moreover, the growth in number confirms NCNPS endeavors to work on integrating government efforts in providing licensing services to these organizations, financial, administrative, and technical supervision of the sector, and increasing coordination and support.

The center also said warnings were issued to 11 civil society entities in 2024. Furthermore, it said one entity was directed to dismiss its board of directors, and two others were instructed to reconstitute their respective board of directors temporarily.

It also urged nonprofit organizations to increase collaboration with the center and compliance with the rules and regulations to ensure increased contribution to the Kingdom’s growth.

In June, Minister of Human Resources and Social Development Ahmed Al-Rajhi lauded the Kingdom’s nonprofit sector for its work toward the realization of Saudi Vision 2030 goals.

Al-Rajhi said that the nonprofit sector played a significant role in national development, creating “sustainable impacts” and establishing robust partnerships with community institutions and individuals through the implementation of “many outstanding projects”, SPA said at the time.

Al-Rajhi, who is also chairman of the National Center for Non-Profit Sector, noted at the time that the expedited incorporation process for nonprofit organizations — which takes no more than four days, as opposed to 18 months previously — is “one of the most remarkable accomplishments” in the country’s recent history.


Saudi Arabia extends voluntary oil cut of 1m barrels per day until mid-2024

Saudi Arabia announced on Sunday it would extend oil supply cuts through June as part of a bid to stabilize prices. (Reuters)
Saudi Arabia announced on Sunday it would extend oil supply cuts through June as part of a bid to stabilize prices. (Reuters)
Updated 03 March 2024
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Saudi Arabia extends voluntary oil cut of 1m barrels per day until mid-2024

Saudi Arabia announced on Sunday it would extend oil supply cuts through June as part of a bid to stabilize prices. (Reuters)
  • OPEC+ has implemented a series of output cuts since late 2022 to support the market
  • Saudi Arabia’s output will remain at around 9 million bpd

RIYADH: Saudi Arabia announced on Sunday it would extend oil supply cuts through June as part of a bid to prop up prices.

An Energy Ministry source announced Riyadh “will extend its voluntary cut of 1 million barrels per day, which was implemented in July 2023, until the end of the second quarter of 2024,” the official Saudi Press Agency reported.

The decision was taken in coordination with other members of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to ensure stability of the global crude markets.

With the extension in the production cuts, Saudi Arabia’s output will remain at around 9 million bpd.

The cuts would be reversed gradually according to market conditions, the SPA said.

Russia will cut oil production and exports by an additional 471,000 bpd in the second quarter, in coordination with some OPEC+ participating countries, Russian Deputy Prime Minister Alexander Novak said.

OPEC+ in November agreed to voluntary cuts totaling about 2.2 million bpd for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.

OPEC+ members announce the cuts individually. Kuwait said it would cut its oil output by 135,000 bpd through June, while Algeria will curb its output by 51,000 bpd and Oman will reduce output by 42,000 bpd.

OPEC+ has implemented a series of output cuts since late 2022 to support the market.


Innovative minds descend on Riyadh to explore opportunities in tech sector

Innovative minds descend on Riyadh to explore opportunities in tech sector
Updated 03 March 2024
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Innovative minds descend on Riyadh to explore opportunities in tech sector

Innovative minds descend on Riyadh to explore opportunities in tech sector
  • Saudi Arabia is emerging globally as a priority economy, says Tahaluf CEO

RIYADH: Saudi Arabia is gearing up for LEAP 2024, the world’s most-attended tech event, from March 4 to 7 at the Riyadh Exhibition and Convention Center in Malham.

The pre-event gathering on Feb 28 announced this year’s theme as “Into New Worlds,” which encompasses new opportunities, technologies, and capabilities in the tech sector.

The event is organized by the Ministry of Communications and Information Technology, Tahaluf Co., the Saudi Federation for Cybersecurity, Programming, and Drones, and the Small and Medium Enterprises General Authority, also known as Monsha’at.

CEO of Tahaluf Michael Champion told Arab News: “Into New Worlds showcases how technology can bring new horizons to different industries and create new opportunities, much of which we once thought unachievable.”

With artificial intelligence at the heart of LEAP, speakers will discuss its applications and impact, along with other innovations and emerging technologies across the four-day event.

LEAP 2024 will cover various topics across multiple stages, including the investor stage and main stage, with discussions on educational tech, retail tech, and fintech, as well as health tech, the fourth industrial revolution, future energy, and smart cities.

FASTFACTS

  • Over 600 startups and 172,000 people are expected to attend the conference, alongside more than 1,800 global tech exhibitors.
  • The event will feature over 1,000 international and local companies in the technology sector and more than 1,000 expert speakers from 180 countries.
  • LEAP 2024 will cover various topics across multiple stages, including the investor stage and main stage.
  • Discussions will be held on educational tech, retail tech, and fintech, as well as health tech, the fourth industrial revolution, future energy, and smart cities.

Over 600 startups and 172,000 people are expected to attend the conference, alongside more than 1,800 global tech exhibitors, such as Google, Microsoft, and Oracle, as well as Dell, Cisco, and Avaya.

SAP, ServiceNow, and Amazon Web Services will also be represented, alongside IBM, Alibaba, and Huawei.

The event will feature over 1,000 international and local companies in the technology sector and more than 1,000 expert speakers from 180 countries, and to accommodate this the 2024 venue is 170 percent larger than last year’s.

Saudi Arabia’s Vice Minister of Communications and Information Technology Haitham Al-Ohali is looking forward to welcoming thought leaders, influencers, investors, and innovators worldwide to LEAP.

“This edition arrives at a time when variables are accelerating, and generative artificial intelligence is a critical turning point at the economic and social levels,” said Al-Ohali.

Champion told Arab News that Saudi Arabia is emerging globally as a priority economy. For many, traveling to Riyadh will unveil a new world for them.

“We’re getting 70,000 registrations from abroad — business tourists, many of whom have never traveled to the Kingdom before,” said the CEO.

He said attendees can meet with key decision-makers through LEAP and create new partnerships.

Among the most prominent speakers and experts are Vice President & former UN High Representative for Disarmament Affairs Angela Kane; CEO and President of Ericsson Borje Ekholm; and Chairman and CEO of IBM Arvind Krishna.

Other global figures include Government Chief Data Officer at the Republic of Estonia Ott Velsberg; Chief AI Officer at Schneider Electric Philippe Rambach; President and CEO of Nokia Pekka Lundmark; and Martin Vilig, co-founder of Bolt.

Champion said: “These are massive, global companies and their CEOs are all coming to this event, and I believe this is a real testimony to how important people are seeing Saudi Arabia now as a change-maker when it comes to technology and investments.”

Saudi Minister of Communications and Information Technology Abdullah Al-Swaha said that the third LEAP event will strengthen Saudi Arabia’s position as a hub for innovation and technology, attracting investment to this region.

There will be multiple memorandums of understanding signing stations all over the exhibition to facilitate agreements and deals.

“During LEAP, we announce billions of dollars of projects and significant MoU signings because we take seriously the need to use the event as a platform for business deals to happen,” said Champion.

The 2023 edition of the event saw more than $11 billion worth of deals and agreements reached, and its estimated 172,000 attendees helped cement LEAP as the biggest tech conference in the world.

The event will feature 10 stages discussing various aspects of technology, including health, education, and e-commerce. Among the 10, the main stage sessions will be aired live on LEAP 2024 social media platforms.

LEAP will host the investor stage, where the world’s top investors will discuss innovative investment opportunities. This stage will also address topics such as the intersection of technology with government policies and innovation, and successful financing strategies.

It will also feature the Startup Stage, where expert speakers such as Blossom Accelerator CEO and founder Emon Shakoor, Raiven Capital founding partner Supreet Singh Manchanda, and Adaverse founding partner Vincent Li will discuss startup growth and innovation.

The Rocket Fuel Pitch competition returns for Saudi and foreign startups, with prizes exceeding $1 million. Categories include the LEAP Award, worth $250,000 for the most outstanding startup across the whole competition; the Shooting Star Award, which allocates $150,000 for the early-stage startup beginning its journey; and the Aviatrix Award, which will see $150,000 given to the most innovative startup pioneered by women founders.

The Technology for Humanity Award will also come with a prize of $150,000, this time for the startup that best embodies the “tech for humanity” spirit of LEAP, while another $150,000 is given to the winner of the Into New Worlds Award for the most impressive startup occupying the Metaverse and Web 3.0 space,

The final $150,000 prize is part of the Artificial Intelligence Award for the startup that presents the most exciting, ground-breaking use of AI.

Saudi Federation for Cybersecurity, Programming, and Drones CEO Muteb Al-Qani said that they are keen to present a special experience to the visitors, as we will gather top speakers and tech experts from around the world.

“This event has been created to empower technology globally; therefore, the upcoming edition brings together the largest tech companies, startups, and investors, all under one roof, which has the potential to lead to numerous investments and launches,” he said.


Closing bell: Saudi main index slips to close at 12,555 

Closing bell: Saudi main index slips to close at 12,555 
Updated 03 March 2024
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Closing bell: Saudi main index slips to close at 12,555 

Closing bell: Saudi main index slips to close at 12,555 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 75.66 points, or 0.60 percent, to close at 12,555.20. 

The total trading turnover of the benchmark index was SR8.19 billion ($2.18 billion) as 82 of the stocks advanced, while 134 retreated.   

On the other hand, the Kingdom’s parallel market Nomu rose 559.57 points, or 2.12 percent, to close at 26,962.39. This comes as 32 of the stocks advanced, while as many as 31 retreated. 

Meanwhile, the MSCI Tadawul Index slipped 14.06 points, or 0.87 percent, to close at 1,609.62. 

The best-performing stock of the day was Al-Rajhi Co. for Cooperative Insurance. The company’s share price surged 9.92 percent to SR93.10.  

Other top performers included Saudi Steel Pipe Co. as well as Middle East Pharmaceutical Industries Co.

Conversely, Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA, experienced the most significant decline, with its share price dropping by 6.31 percent to SR13.96. Other underperformers in the market were Saudi Arabian Amiantit Co. and Hail Cement Co. 

On the announcements front, Arabian Centres Co. has reported the successful completion of the offering of $500 million worth of US dollar-denominated Shariah-compliant sukuk. 

According to a statement from Tadawul, the company anticipates that the issuance will be credit-neutral. The proceeds from the issuance are intended for the refinancing of its 2019 sukuk, set to mature in November 2024. 

With a maturity of five years, the total number of sukuk stands at 2,500 with a par value of $200,000 and a return of 9.5 percent.  

Moreover, Zain KSA has announced its annual consolidated financial results for the year ending Dec. 31.  

A bourse filing revealed that the firm’s net profit reached SR1.26 billion, reflecting a 130 percent surge compared to the same period in 2022.  

The rise is primarily attributed to the company achieving its highest-ever revenues, totaling SR9.9 billion in 2023, marking an 8.9 percent growth compared to 2022. This surge in revenue resulted in a 7 percent increase in the cost of revenue. 

In addition to this, gross profit increased by 10 percent, representing SR541 million, as a result of the growth in the high-margin segments. 

Furthermore, Saudi Real Estate Co. also announced its annual financial results for the year 2023. According to a Tadawul statement, the company’s net profit hit SR67.6 million in the period ending on Dec. 31, down 38.82 percent in comparison to 2022 figures.  

The drop is mainly attributed to an increase in financial charges by SR96 million due to the significant rise in interest rates as well as a climb in net losses in one of the subsidiaries due to the recording of extraordinary losses of SR46 million in one of its projects.