Saudi ADES secures $93.3m contract to operate jack-up rig in Qatar

Saudi ADES secures $93.3m contract to operate jack-up rig in Qatar
ADES noted in a statement to Tadawul that the letter of award from the French petroleum company includes a mandatory and optional extension period of up to 18 months. Supplied
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Updated 14 April 2024
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Saudi ADES secures $93.3m contract to operate jack-up rig in Qatar

Saudi ADES secures $93.3m contract to operate jack-up rig in Qatar

RIYADH: Saudi drilling firm ADES is set to operate a SR350 million ($93.3 million) jack-up rig in Qatar, having secured a contract from TotalEnergies.  

ADES noted in a statement to Tadawul that the letter of award from the French petroleum company includes a mandatory and optional extension period of up to 18 months. 

The project is expected to commence in the second half of 2024, utilizing the firm’s fleet of jack-up offshore drilling units. 

Additionally, ADES indicated that the contract will enable it to maintain its market share in Qatar by operating three drilling rigs. This comes after the relocation of its Emerald Driller platform to Indonesia, anticipated to take place in the second half of 2024. 

Commenting on the letter of award, Mohamed Farouk, CEO of ADES Holding, said: “We are very pleased with our ability to quickly market and secure new campaigns for the five recently suspended rigs in Saudi Arabia.”

Farouk added: “New capacities made available have allowed us to quickly find a technically suitable unit to maintain our three-rig presence in Qatar following the planned departure of our jack-up rig, Emerald Driller, from Qatar to Indonesia in the second half of 2024.”  

He added that the Emerald Driller had delivered an exceptional safety and operational performance during its operation in the Al-Khaleej field over the past few years, and “we look forward to continuing our journey in Qatar with our client and to providing exceptional safety and operational performance that has become synonymous with the ADES name.” 

In November, ADES Holding Co. secured three new contracts totaling $293 million, marking its entry into Indonesia and strengthening its presence in Algeria. 

The company announced its foray into Southeast Asia with a long-term contract valued at SR803 million with Pertamina Drilling Services Indonesia, according to a bourse filing. 

ADES will operate Pertamina’s existing jack-up drilling rig, Emerald Driller, located in the Java Sea. This contract, comprising a three-year firm period and a two-year option, is slated to commence in the second half of 2024.  

With this expansion, ADES now operates in eight countries. 

“We are pleased with the opportunity to enter the Indonesian market through our strategic partnership with Pertamina Drilling Servies Indonesia, who is a leading drilling contractor in Southeast Asia, to provide our best-in-class drilling service to Pertamina in Region 2,” said Farouk.   

With this award, he said ADES extends its geographical footprint to a promising and demanding market, namely Indonesia and Southeast Asia.


Saudi mobility startup Shift leads regional funding activity 

Saudi mobility startup Shift leads regional funding activity 
Updated 29 September 2024
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Saudi mobility startup Shift leads regional funding activity 

Saudi mobility startup Shift leads regional funding activity 
  • In Saudi Arabia, car rental firm Shift raised $82.8 million in an investment led by Merak Capital

RIYADH: Mobility, climate, and tech startups across the Middle East and North Africa have secured significant investments in recent weeks, reflecting the region’s continued growth in innovation. 

In Saudi Arabia, car rental firm Shift raised $82.8 million in an investment led by Merak Capital, making it one of the largest funding rounds in the second half of the year. 

Founded in 2017 by Khalid Al-Sulaiman, the company provides technology-driven mobility solutions for people and products, and currently operates in 57 cities across Saudi Arabia with a fleet of over 12,000 vehicles. 

“We are thrilled to partner with Merak Capital, whose investment validates our innovative approach and commitment to revolutionizing mobility solutions in Saudi Arabia. This partnership will accelerate our growth, allowing us to expand our services and enhance our technology to meet the evolving needs of our customers, particularly within the tourism sector,” Al-Sulaiman said. 

“Together, we are poised to set new standards for efficiency, sustainability, and service excellence, driving toward a future where technology and sustainability create lasting value for our customers, stakeholders, and communities,” he added. 

This fresh capital will support Shift’s growth and innovation, enabling the company to accelerate its intelligent mobility solutions. The funding is expected to enhance SHIFT’s ability to serve its expanding customer base and scale its operations across the Kingdom. 

Merak Capital believes in Shift’s growth potential with the investment firm’s CEO praising the startup’s locale strength. 

“Our belief in the impact of technology on the mobility of people, products, and businesses is profound, and with our position and track record as one of the leading technology investment firms in the region, coupled with the innovation and capabilities of Shift as a mobility pioneer, we believe this partnership will yield tremendous success for all stakeholders, including our partners, investors, and the thriving economy of the Kingdom across multiple sectors, such as tourism, transportation, hospitality, logistics, and more,” Merak Capital CEO, Abdullah Al-Tamami, said. 

Coral closes $3m seed round for carbon management solutions 

UAE-based climate tech startup Coral has secured $3 million in a seed funding round led by a group of investors. 

Founded in 2022 by Juergen Hoebarth and Daniele Sileri, Coral provides businesses with tools to manage and reduce their carbon emissions, promoting transparency and accessibility in achieving carbon neutrality. 

“We’re thrilled to have completed our seed round and are grateful for the support from our investors who share our vision for a sustainable future,” said Daniele Sileri, director of product and strategy at Coral. 

The funding will be used to expand Coral’s team, scale its platform, and further accelerate its mission to make carbon management simpler and more transparent for businesses worldwide. 

Kwiks raises $827k to enhance AI-driven recruitment solutions 

Morocco-based human resources tech company Kwiks has raised $827,000 in funding from Azur Innovation Management. 

Founded in 2013 by Amine Houssaini and Karim Kaoukabi, Kwiks connects companies with freelance headhunters through its platform, streamlining the hiring process. 

The capital injection will boost Kwiks’ recruitment capabilities, allowing the company to further develop its artificial intelligence-driven hiring solutions and improve its platform’s ability to match companies with top talent. 

Userguest secures $2.4m to strengthen hotel revenue optimization tools 

Morocco-based software solutions provider Userguest has closed a $2.4 million seed round led by Al Mada Ventures, with participation from several notable investors, including CDG Invest, Saviu Ventures, and UM6P Ventures. 

Founded in 2018 by Ahmed Chami, Assil Bernossi, and Hicham Benyebdri, Userguest enables hotels to optimize direct revenue by delivering personalized messages and intelligent incentives to website visitors. 

“This investment underscores our investors’ confidence in our vision to create an automated tool that optimizes conversions and revenue for hotels. Having solidified our market presence and earned the trust of leading hotel brands, we are now ready to elevate Userguest to new heights, enhancing hotel performance while enriching the user experience, benefiting both hoteliers and travelers alike,” said Benyebdri. 

The new funding will primarily be allocated to expanding the company’s sales team, enhancing its market reach, and solidifying its position as a leader in hotel revenue optimization. 

EBRD commits $3m to Ibtikar Fund II to support Palestinian startups 

The European Bank for Reconstruction and Development has invested $3 million in Ibtikar Fund II, which closed with $25 million in total commitments, surpassing its initial target of $15 million. 

The fund aims to invest in up to 25 early-stage Palestinian tech startups, promoting digitalization and job creation across the region. 

The investment reflects increasing support for tech-driven initiatives in Palestine, with a focus on fostering local innovation and growth in the digital economy. 

Amplify Growth Fund launches $100m debt fund targeting MENA region 

UAE-based Amplify Growth Partnership has launched a $100 million debt fund, with its first transaction already closed in a Saudi fintech company. Further details about the investment were not disclosed. 

Amplify Growth Fund I will focus on deploying capital in technology companies across the Middle East, North Africa, and Türkiye, supporting their growth needs. 

With the rise of venture debt in the region — which reached $757 million in 2023, a 262 percent year-on-year increase — this fund aims to meet the increasing demand for debt capital. 

Sharaf Sharaf, head of the fund, said: “The Amplify Growth Fund is poised to meet the region’s growing demand for debt capital in the venture and SME sectors, which are areas that have been historically underserved.” 

It has partnered with Dubai’s Ajeej Capital and Nuwa Capital to manage investments. 

Padash raises $125k in pre-seed funding for q-commerce expansion in Iraq 

Iraq-based quick commerce startup Padash has raised $125,000 in a pre-seed round from an undisclosed angel investor. 

Founded in 2023 by Ahmed Jamal, Omer Sabah, Muhammed Yassein, and Ahmed Bayiz, Padash offers instant food and grocery delivery services in Irbil, Kurdistan. 

The new capital will be used to expand Padash’s operations within the city, and further develop its mobile app, positioning the company to grow its footprint in Iraq’s fast-growing q-commerce sector.


From cash to clicks: Saudi Arabia’s e-payments revolution

From cash to clicks: Saudi Arabia’s e-payments revolution
Updated 29 September 2024
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From cash to clicks: Saudi Arabia’s e-payments revolution

From cash to clicks: Saudi Arabia’s e-payments revolution

RIYADH: Imagine a bustling Riyadh souk where every transaction is just a tap away — no more searching for loose change or waiting for cashiers. In Saudi Arabia, this digital dream is becoming a reality as the Kingdom experiences a high-tech makeover of its financial landscape.

With smartphones buzzing and government-backed innovations steering the way, the shift from traditional cash to sleek digital payments is transforming the way Saudis shop, bank, and spend.

This evolution reflects a broader trend within the region and underscores Saudi Arabia’s commitment to embracing technological advancements as part of its Vision 2030 initiative.

The rise of e-payments in the Kingdom is driven by several factors, including increasing smartphone usage, supportive government policies, and changing consumer preferences.

A vision for digital transformation

At the heart of Saudi Arabia’s e-payment revolution is the Vision 2030 initiative, which seeks to boost non-cash transactions to 80 percent by 2030.

This ambitious goal is not just a numerical target but a strategic move to foster financial inclusion and digital innovation.

“The consistent growth of e-payments and financial technology within the Saudi retail sector has been impressive, especially over the past few years,” Tariq bin Hendi, senior partner at Global Ventures told Arab News.

He added that Vision 2030 has “played a major role in this transformation,” particularly with its emphasis on digitalization and financial inclusion. 

“This approach has created a strong environment for innovation, allowing local, regional and international fintech players to thrive,” said Bin Hendi.

He also noted that proactive government policies that support digital transactions, along with strategic partnerships among banks, fintech companies, and retailers that enhance payment systems, have helped drive the transformation, as well as substantial investments in cybersecurity to protect against fraud.

Additionally, the development of innovative payment solutions and a consumer base increasingly favoring digital methods have helped drive the commerce shift, creating a dynamic and secure environment for e-payments to flourish.

Smartphone penetration: A game changer

One of the most significant drivers of this digital payment surge is the proliferation of smartphones.

“With smartphone adoption reaching over 90 percent of the population, it is safe to say the increasing penetration of mobile phones in Saudi Arabia has played an integral role in the exponential growth of e-payments,” Bin Hendi said.

This means that smartphones have become the main tool people use to carry out digital financial transactions, such as making payments or managing their finances online.

Abdulrahman Al-Dakheel, CEO of online fintech platform Taskheer, echoed this view, telling Arab News: “The high penetration of smartphones in Saudi Arabia has been a critical enabler for the growth of e-payments. With the majority of the population owning smartphones, there’s been a natural shift toward mobile-based transactions.” 

He added: “Advancements in mobile technology, such as Near Field Communication and biometric authentication, have enhanced the security and convenience of mobile payments, making them more attractive to consumers.”

Al-Dakheel further explained that the creation of mobile wallets and apps that work smoothly with banking services has made it easier for people to make digital payments.

This convenience is especially popular among younger, tech-savvy individuals who value the flexibility and simplicity of using their smartphones for routine financial transactions.

Role of international partnerships

International collaborations are also crucial for the advancement of Saudi Arabia’s e-payment infrastructure. Partnerships with global fintech leaders and regulatory bodies facilitate the exchange of knowledge and technology, accelerating local development.

“International partnerships and collaborations are key. Alliances with global leaders in the fintech space and international regulatory bodies help facilitate an exchange of knowledge and technology — thus accelerating the development of local capabilities,” Global Ventures’ Bin Hendi said.

He added: “Insight into global best practice can help the Kingdom build the next phase of growth into a more robust, innovative and secure e-payment environment.”

By adopting global best practices and tapping into the expertise of established international fintech companies, Saudi Arabia can speed up the development and implementation of advanced payment technologies.

“For example, partnerships with leading fintech companies from regions like Europe, known for their mature digital payment ecosystems, could provide valuable insights into implementing advanced solutions such as open banking and real-time payments,” Al-Dakheel said.

He continued: “Additionally, collaboration with countries that have successfully transitioned to cashless societies, like Sweden or Singapore, could offer models for regulatory frameworks and consumer education initiatives that Saudi Arabia can adapt to its local context.”

These partnerships help not only in advancing technology but also in creating a culture of innovation necessary for the growth of e-payments.

What happens next?

Looking ahead, the trajectory of e-payments in Saudi Arabia appears poised for continued growth.

When asked how he envisions the future trajectory of e-payments in Saudi Arabia’s retail sector, Bin Hendi underlined that given the current rapid growth in electronic payments, it is expected that they will increasingly dominate retail transactions in the future.

“If current trends persist, we could see e-payments accounting for up to 85-90 percent of all retail transactions within the next five years,” Al-Dakheel said.

He added: “This growth will likely be driven by continued investments in fintech innovation, broader merchant acceptance, and ongoing government support for cashless transactions.”

Al-Dakheel went on to say that as consumers become more accustomed to the convenience and security of e-payments, the demand for digital solutions will only increase, further accelerating this shift.

“Given that e-payments currently account for 70 percent of all retail transactions in Saudi Arabia, I only expect it to continue to grow — especially given the increase in mobile use and digital literacy among a young population,” Bin Hendi said.

He added: “Driven by consumer demand, convenience, and continuing advancements in mobile technology, I also envision more growth in the use of digital wallets and contactless payment methods.”

Bin Hendi also highlighted that in 2023, 10.8 billion electronic transactions were recorded, compared to 8.7 billion in 2022, emphasizing the positive trend of e-payments.

Saudi Arabia’s e-payment revolution is a testament to the country’s dynamic approach to financial modernization.

Driven by government initiatives, technological advancements, and a supportive regulatory environment, the shift from cash to digital transactions is not just a trend but a fundamental transformation.

As the Kingdom progresses toward its Vision 2030 goals, the e-payment sector is set to play a pivotal role in shaping the future of financial transactions in Saudi Arabia.


Lebanon’s economy to contract amid ongoing armed conflict, as region faces challenging 2024: EBRD

Lebanon’s economy to contract amid ongoing armed conflict, as region faces challenging 2024: EBRD
Updated 29 September 2024
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Lebanon’s economy to contract amid ongoing armed conflict, as region faces challenging 2024: EBRD

Lebanon’s economy to contract amid ongoing armed conflict, as region faces challenging 2024: EBRD
  • Inflation, which had soared to a peak of 352 percent in March 2023, decreased to 35.4 percent by July 2024
  • Nonetheless, unemployment remains high, with over a third of the workforce without a job

RIYADH: Lebanon’s economy is projected to contract by 1 percent in 2024 under the severe weight of armed conflict and a deepening political and economic crisis, though a return to growth remains possible.

The European Bank for Reconstruction and Development’s latest Regional Economic Prospects report highlighted that these factors have created an environment of extreme instability, further undermining gross domestic product growth prospects due to stalled reforms and the lack of progress on an International Monetary Fund program.

Inflation, which had soared to a peak of 352 percent in March 2023, decreased to 35.4 percent by July 2024. Nonetheless, unemployment remains high, with over a third of the workforce without a job, highlighting the dire socio-economic conditions. 

The EBRD report noted that a return to modest growth is possible, saying: “Growth could return to a forecast 2 percent in 2025, provided regional tensions subside with some progress on reforms and an IMF program in place.”

The adoption of the 2024 budget law, aligning the exchange rate closer to market rates, has provided some stabilization, but Lebanon’s economy remains vulnerable.

Regional outlook for 2024 and beyond

Economic growth in the Southern and Eastern Mediterranean region is set to face a challenging year in 2024, with countries contending with the impacts of conflict, slowing investments, and climate-related disruptions, according to the report.

Growth is forecast at 2.1 percent for the first half of the year, rising modestly to 2.8 percent for the full year. This marks a downward revision from earlier estimates, driven primarily by slower-than-anticipated investment recovery in Egypt and the ongoing conflicts in Gaza and Lebanon.

The outlook, however, remains uncertain and depends on several factors, including the resolution of ongoing conflicts, a rebound in private and public investments, and effective responses to climate challenges. 

Severe droughts in Morocco and Tunisia, alongside energy sector disruptions in Egypt, continue to pose significant risks to the region’s growth potential.

The report underscores the urgent need for continued reforms and stabilization efforts across the SEMED region to ensure sustained economic growth in the coming years.

Egypt: Slow recovery amid energy sector disruptions

Egypt, one of the region’s largest economies, is expected to have grown by 2.7 percent in the fiscal year that ended in June, rising to 4 percent in 2024-25 as the country continues its recovery from a prolonged period of economic strain.

On a calendar-year basis, growth is forecast at 3.2 percent in 2024 and 4.5 percent in 2025, marking a steady return to pre-crisis levels, according to the EBRD.

The recovery is being bolstered by expansions in sectors such as retail, wholesale trade, agriculture, communications, and real estate. 

However, the energy sector continues to face disruptions, and inflation, while moderating, remains a challenge at 25.7 percent as of July, down from its peak of 38 percent in September 2023.

“The budget deficit stood at 3.6 percent of GDP in FY24 (fiscal year ending June) and the debt-to-GDP ratio is expected to fall to 83 percent in FY25,” the report said.

Egypt’s external accounts have recovered since the devaluation of its currency in March, with foreign exchange reserves reaching a five-year high. 

Financial inflows from international partners and investors have also provided critical support. However, risks remain, particularly with continued disruptions in energy supply and delays in structural reforms under the IMF program.

Jordan: War in Gaza weighs on economic prospects

Jordan’s economy is forecast to grow at a slower rate of 2.2 percent in 2024, with the ongoing Gaza conflict having a pronounced impact on its tourism sector and investment flows. 

The conflict has increased uncertainty among consumers, who are now holding back on large expenditures, further dampening growth. 

The EBRD said a modest recovery to 2.6 percent growth is possible by 2025, contingent on an easing of geopolitical tensions and continued progress on economic reforms.

“Jordan’s heavy reliance on imports makes it vulnerable to geopolitical instability in the region, as well as to shocks in energy and food prices and disruptions in global supply chains,” the report explained.

The country’s inflation remains moderate, standing at 1.9 percent in July, but unemployment remains persistently high at 21.4 percent, with significantly higher rates for women – 34.7 percent – and the youth population at 43.7 percent. 

The Central Bank of Jordan has maintained a stable policy interest rate, following the lead of the US Federal Reserve, as part of its efforts to preserve the currency peg.

Morocco: Agricultural struggles amid drought, tourism recovery

Morocco is grappling with severe drought, which is affecting its agricultural output — a key driver of the country’s economy. 

Growth is expected to reach 2.9 percent in 2024, with a rise to 3.6 percent in 2025, driven by a recovery in the manufacturing and tourism sectors, the EBRD forecasts.

The easing of inflation, which fell to 1.3 percent in July, has provided some relief, while exports and domestic demand continue to support economic activity. 

Morocco’s government has embarked on fiscal consolidation measures, reducing the budget deficit to 4.3 percent of GDP in 2023. The outlook for 2025 is more positive, provided that weather conditions improve and agricultural output recovers.

Downside risks remain for Morocco due to its dependence on energy imports and the vulnerabilities posed by climate change. 

Severe droughts are expected to weigh on growth in the short term, but the country’s recovery in tourism, remittances, and exports of automobiles and electric products should help sustain moderate growth.

Turkiye’s economic shift toward orthodoxy

In 2023, Turkiye reverted to more conventional economic policies, tightening monetary and fiscal measures to combat inflation. 

The Central Bank raised the policy rate by 4,150 basis points, holding it at 50 percent, while the Treasury’s efficiency package aimed to reduce the fiscal deficit, excluding earthquake-related expenses. 

The decision to forgo a mid-year minimum wage hike in July helped stabilize inflation expectations. 

Investor confidence improved with Turkiye’s removal from the Financial Action Task Force grey list, as indicated by a drop in credit default swap premiums and upgrades in sovereign ratings. The current account deficit shrank to $19.1 billion in July, while foreign exchange reserves increased to $147.9 billion. 

The economy grew by 3.8 percent in the first half of 2024, down from 4.6 percent a year earlier, with private consumption still leading growth despite a slowdown in manufacturing. 

Annual inflation fell to 52 percent in August from a peak of 75.4 percent in May, necessitating continued tight monetary policy to meet the revised inflation target of 41.5 percent by year-end. 

Economic growth is forecasted to decline to 2.7 percent in 2024, amid risks from high inflation and geopolitical tensions.

Tunisia: Modest growth but ongoing fiscal struggles

Tunisia’s economy is expected to post modest growth of 1.2 percent in 2024, rising slightly to 1.8 percent in 2025. 

While inflation has decreased to a 30-month low of 7 percent as of July, the country continues to face significant economic challenges. These include a large external debt burden, limited fiscal space, and vulnerability to external shocks, according to the report.

Despite contractions in agriculture and mining, Tunisia has experienced growth in tourism, financial services, and other industrial sectors, providing some support to the economy.

Tunisia’s fiscal struggles have been partially alleviated by an improvement in the current account deficit and higher tax revenues. 

However, the country’s reliance on external funding and its slow progress on IMF-supported programs continue to pose significant risks to its economic stability.


Pakistan says inflation to remain between 8-9% in September-October

Pakistan says inflation to remain between 8-9% in September-October
Updated 28 September 2024
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Pakistan says inflation to remain between 8-9% in September-October

Pakistan says inflation to remain between 8-9% in September-October
  • Inflation, which peaked at 38% in May 2023, has been on a downward trend for the past few months 
  • Pakistan’s exports and imports expected to observe an increase in momentum during Sept., says economic outlook

ISLAMABAD: Pakistan’s Finance Division said this week that inflation is expected to remain in the 8-9% range from September to October, adding that the country’s economic recovery will be bolstered by a favorable external economic environment and a stable exchange rate. 

Pakistan’s annual consumer price inflation (CPI) rate eased to 9.6% in August, the first single-digit reading in almost three years. Islamabad undertook tough economic measures which included increasing taxes and electricity prices, to enter into a $7 billion loan agreement with the International Monetary Fund (IMF) which was formally approved on Wednesday. 

However, inflation has been on a downward trend in the country which peaked at 38% in May 2023. Pakistan’s August annual CPI figures were clocked at 27.4% in August 2023 and 11.1% in July 2024. The government has credited its tough reforms and economic policies for the declining trend of inflation. 

“Inflation is expected to remain within the range of 8.0% to 9.0% in September and October 2024,” the Finance Division’s monthly Economic Outlook report for September 2024 said on Friday. 

The report said that Pakistan’s exports and imports are expected to observe an increase in momentum, with exports expected to remain in the range of $ 2.5-3 billion while imports will remain in the $4.5-5 billion range in September. 

It said workers’ remittances were expected to remain in the $ 2.7-3.2 billion range this month. 

The report said that Pakistan’s external account had improved at the back of increased workers remittances and surging exports. 

“During Jul-Aug FY2025, the current account registered a deficit of $ 0.2 billion compared to $ 0.9 billion last year however, it recorded a surplus of $ 75 million in August 2024,” the report said.

The report pointed out that from July to August, goods exports increased by 7.2 percent to reach $4.9 billion while imports stood at $ 9.5 billion compared to $ 8.4 billion last year, leading to a trade deficit of $ 4.7 billion. 


Pakistan army chief thanks Saudi Arabia, UAE, China for support after IMF bailout approval

Pakistan army chief thanks Saudi Arabia, UAE, China for support after IMF bailout approval
Updated 28 September 2024
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Pakistan army chief thanks Saudi Arabia, UAE, China for support after IMF bailout approval

Pakistan army chief thanks Saudi Arabia, UAE, China for support after IMF bailout approval
  • IMF approved Pakistan’s loan program this week after Islamabad reportedly secured financing assurances from China, kingdom and UAE
  • IMF mission chief to Pakistan says Islamabad received financing assurances from three countries that go beyond deal to roll over $12 billion in loans 

ISLAMABAD: Pakistan’s Army Chief General Syed Asim Munir this week thanked Saudi Arabia, China and the United Arab Emirates (UAE) for aiding in the country’s economic recovery, days after the International Monetary Fund (IMF) approved a crucial $7 billion loan program for Islamabad. 

Pakistan reached a staff-level agreement with the IMF for the new 37-month loan program in July. However, the formal approval for the loan was delayed reportedly as the South Asian country needed to secure financing commitments from the UAE, China and Saudi Arabia. 

The IMF’s Executive Board approved the loan program on Wednesday with the lender’s Pakistan Mission Chief Nathan Porter telling Reuters that Islamabad received “significant financing assurances” from China, Saudi Arabia and UAE that go beyond a deal to roll over $12 billion in bilateral loans owed to them by Pakistan. 

Munir visited the Karachi Corps on Friday where he interacted with the country’s business community and inspected the military’s operational preparedness, the Inter-Services Public Relations (ISPR), the military’s media wing, said. 

“COAS [chief of army staff] appreciated the praiseworthy role performed by brotherly and friendly countries especially China, Kingdom of Saudi Arabia and UAE in the economic recovery of Pakistan by helping us in multiple domains,” the ISPR said on Friday. 

Munir also appreciated the business community and entrepreneurs’ contributions toward the country’s economic growth, the ISPR said. He appreciated efforts by the federal and provincial governments toward supporting the country’s key economic reforms. 

Pakistan’s powerful military has exercised a sizable influence in the country’s economic decision-making for years. In June 2023, the government set up the Special Investment Facilitation Council (SIFC), a key hybrid civil-military body, to attract international investments in Pakistan’s vital sectors, particularly from Gulf countries. 

The SIFC seeks to rescue Pakistan from a prolonged economic crisis that saw its reserves plummet to historic lows and its currency weaken significantly over the past two years amid staggering inflation. 

The military has a significant role in the body, with the army chief being a member of its apex committee and the army itself serving as the national coordinator for both the SIFC’s apex and executive committees.

The military’s involvement in key economic decisions can be traced back to June 2019 when then prime minister Imran Khan set up a high-powered National Development Council (NDC) of which then army chief, General Qamar Javed Bajwa, was a member. It was the first time the army had been given a formal seat at the economic table.