Qatar’s non-energy private sector records improvement in April

Total activity also surged at the fastest rate since last September in April as new projects and firms continued to complete existing workloads.
Total activity also surged at the fastest rate since last September in April as new projects and firms continued to complete existing workloads.
Short Url
Updated 12 May 2024
Follow

Qatar’s non-energy private sector records improvement in April

Qatar’s non-energy private sector records improvement in April

RIYADH: Qatar’s non-energy private sector witnesses improvement in business conditions in April as the Purchasing Managers’ Index hit 52, compared to 50.6 in March, according to the latest data.

The Qatar Financial Center PMI is a composite single-figure indicator of non-energy private sector performance that is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. A reading above 50 signifies sectoral expansion, while below that mark indicates contraction.

The latest PMI survey data from the center compiled by US-based capital marker firm S&P Global showed that the 1.4-point increase between March and April in the headline figure was among the largest registered over the past two years, according to a statement.

Moreover, the data disclosed that while output, new orders, employment and purchasing activity all increased at faster rates than in March, price pressures turned slightly negative, as both input and output prices fell marginally.

Additionally, the volume of incoming new business in Qatar’s non-energy economy rose at the fastest rate in seven months in April. This is mainly attributed to new customers and high quality, competitive products.

Total activity also surged at the fastest rate since last September in April as new projects and firms continued to complete existing workloads.

Furthermore, non-energy private sector companies were increasingly optimistic on growth over the next 12 months in April. Companies residing in the Gulf country linked positive forecasts to marketing campaigns, business development plans and efficiency drives.

Consequently, stronger inflows of new work and increased confidence led to a sharper rate of hiring growth in April. Employment has risen for 14 months, and the rate of job creation was running above the long-run survey average in April.

The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. The panel covers the manufacturing, construction, and wholesale as well as retail and services sectors, and reflects the structure of the non-energy economy according to official national accounts data. 

Islamic banking

The total value of the assets of Islamic banks operating in Qatar during the month of March 2024 increased by 6.4 percent on an annual basis to reach about 563.9 billion Qatari riyals ($154.8 billion), according to newly released statistics.

The monetary bulletin issued by the Qatar Central Bank for the month of March showed that this recorded figure represents 28 percent of the total assets of banks in Qatar, amounting to approximately 1.99 trillion riyals.

The data also revealed that the total value of Islamic banks’ financing in Qatar increased to 389.9 billion riyals, an increase of 3 percent over the corresponding month of last year.


Oil Updates – crude stabilizes on course for first weekly gain in three

Oil Updates – crude stabilizes on course for first weekly gain in three
Updated 6 sec ago
Follow

Oil Updates – crude stabilizes on course for first weekly gain in three

Oil Updates – crude stabilizes on course for first weekly gain in three

SINGAPORE: Oil prices stabilized on Friday, heading for their first weekly rise since the end of November, as additional sanctions on Iran and Russia ratcheted up supply worries, while a surplus outlook weighed on markets.

Brent crude futures edged up 7 cents to $73.48 a barrel by 7:34 a.m. Saudi time, while US West Texas Intermediate crude was at $70.11 a barrel, up 9 cents.

Both contracts are on track for a weekly gain of more than 3 percent as concerns about supply disruption from tighter sanctions on Russia and Iran, and hopes that Chinese stimulus measures could lift demand in the world’s No. 2 oil consumer support prices.

Recent stabilizations came after oil defended a key technical level of $71, said Yeap Jun Rong, market strategist at IG.

“But there has not been much conviction to prompt a stronger price recovery just yet,” he added.

Chinese data this week showed crude imports grew annually for the first time in seven months in November, driven by lower prices and stockpiling.

“We have seen a bit of a recovery in refinery margins since the September lows, but don’t think it’s anything to justify the November crude import volumes,” said Warren Patterson, ING’s head of commodities research.

Crude imports by the world’s largest importer are set to stay elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota.

The International Energy Agency increased its forecast for 2025 global oil demand growth to 1.1 million barrels per day from 990,000 bpd last month, thanks to China’s recent stimulus measures, it said in its monthly oil market report.

However, it forecast a surplus for next year, when non-OPEC+ nations are set to boost supply by about 1.5 million barrels per day, driven by Argentina, Brazil, Canada, Guyana and the US.

“I guess with an outlook for a fairly comfortable balance (there is) little reason (for prices) to break out of this range for now,” ING’s Patterson.

Three of Canada’s biggest oil producers forecast higher output in 2025. Building on record US production, Goldman Sachs expects Lower 48 shale oil production to grow by 600,000 bpd in 2025, although growth could slow if Brent falls below $70 a barrel.

Investors are also betting that the Fed will cut borrowing costs next week and follow up next year with further reductions, after economic data showed weekly claims for unemployment insurance unexpectedly rose.


PIF acquires 15% stake in Heathrow Airport

PIF acquires 15% stake in Heathrow Airport
Updated 12 December 2024
Follow

PIF acquires 15% stake in Heathrow Airport

PIF acquires 15% stake in Heathrow Airport
  • Statement says move underscores commitment to impactful global investments

RIYADH/LONDON: Saudi Arabia’s Public Investment Fund announced on Thursday it had finalized the acquisition of a 15 percent stake in FGP TopCo, the holding company of Heathrow Airport Holdings.

The stake was purchased from Ferrovial SE and other shareholders of FGP TopCo.

Simultaneously, Ardian, a private investment firm, acquired a 22.6 percent stake in FGP TopCo through a separate transaction.

A PIF statement said the strategic investment underscored its commitment to impactful global investments that bolstered key sectors, and its broader strategy of supporting sustainable and long-term growth in major international markets.

Turqi Al-Nowaiser, deputy governor and head of international investments at PIF, said the fund was pleased to be investing in Heathrow, calling it a “vital UK asset and a world-class airport.”

He added: “We believe in the importance of infrastructure as a key sector in supporting the transition to net zero.

“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.”


NEOM partners with GMT Robotics to revolutionize construction

NEOM partners with GMT Robotics to revolutionize construction
Updated 12 December 2024
Follow

NEOM partners with GMT Robotics to revolutionize construction

NEOM partners with GMT Robotics to revolutionize construction

RIYADH: NEOM has signed a landmark investment agreement with GMT Robotics, one of Europe’s leading innovators in advanced construction technology, to accelerate the delivery of its capital projects, the Saudi Press Agency reported on Thursday.

The deal, spearheaded by the NEOM Investment Fund, seeks to integrate robotics in construction. This collaboration highlights NEOM’s role as a trailblazer in modern construction techniques, including automation and robotics.

GMT Robotics, based in Copenhagen, specializes in robotic systems designed for the rebar market. Its robotic rebar cage assembly and handling systems significantly improve both productivity and safety in construction.

By reducing onsite workforce requirements by up to 90 percent through offsite prefabrication, GMT Robotics enhances efficiency while maintaining high safety standards.

Majid Mufti, CEO of NEOM Investment Fund, commented: “Our investment in GMT Robotics reflects NEOM’s commitment to advancing transformative technologies that will unlock next-generation industries. By localizing these cutting-edge technologies, we are laying the foundation for sustainable development, creating high-skilled jobs, and fostering the growth of commercially viable sectors. Partnerships like this are critical to turning NEOM’s visionary goals into reality, solidifying its position as a global innovation hub.”

As part of the agreement, the technology will be localized within NEOM, with rebar cages to be produced in local factories. This initiative also opens up new opportunities for Saudi engineers to apply robotics to other areas of construction.

Bandar Ashrour, sector head of design and construction at NEOM, added: “Aligning construction technology startups with NEOM’s ambitious goals is essential to our strategy. GMT’s expertise in robotics offers unprecedented efficiency, consistency, and sustainability in construction. We look forward to a dynamic collaboration that will contribute to safer, more sustainable infrastructure and enhance the next generation of NEOM-built assets.”

This partnership is yet another milestone in NIF’s strategic investment efforts, which focus on supporting NEOM’s sector strategies by fostering innovative technologies, establishing new businesses, and creating jobs to drive economic growth in the region.

The global market for construction robotics, valued at $168.2 million in 2022, is projected to grow over 360 percent to reach $774.6 million by 2032.


‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
Updated 12 December 2024
Follow

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
  • Security and stability make Saudi Arabia a safe bet
  • ‘Sky’s the limit’ in GCC, says Trump

RIYADH: The mindset in the Gulf region that fosters the development of iconic projects is “uplifting” and will make its way back to the US under Donald Trump’s next presidency, Eric Trump told Arab News on Thursday.

The president-elect’s second son, who serves as executive vice president of the Trump Organization, praised the region for its innovative approach, which he believes defies common misconceptions held by Western nations.

During a visit to the Saudi capital following an official launch event in Jeddah for a new Trump Tower, Eric Trump suggested that the Gulf’s no-limits mentality is something that the incoming US president will adopt.

“It’s a different mindset in the Gulf, and that mindset is going to return to America, believe me, in the next four years under my father. But that mindset really, it’s uplifting. It’s almost empowering. It makes you want to come over here and do something really great. And it kind of makes you want to say no to those other countries where it’s just impossible to navigate the political system. They’re just too cumbersome. They’re too lethargic.”

Trump went on to explain that Gulf countries actively encourage developers to realize their grand visions, offering not just permits but also support for larger, more ambitious projects.

 

“They tell you, ‘not only are we going to give you the permits, but we actually want you to make your project bigger. We want you to make it even more iconic. We want you to make it more luxurious. We want you to attract the greatest restaurants and the greatest amenities. Sky’s the limit.’ And that's a beautiful thing for a developer,” he said.

He also revealed that the Trump Organization is planning additional projects in Riyadh, though he did not disclose further details.

The Trump Organization has lent its branding to several properties across the Gulf region, including a hotel and golf club in Oman, a golf club and tower in Dubai, and most recently, the Jeddah hotel. Trump Tower Jeddah is being developed in partnership with Saudi developer Dar Global, with the two companies having previously collaborated on projects in Oman and Dubai.

Praising Saudi Arabia’s safety and political stability, Trump said: “Obviously, the people in this country love us, love our company, love our brand, love what we stand for. We have so much unbelievable support in this amazing country.”

Dar Global CEO Ziad El Chaar speaks to Arab News during an interview on Thursday. AN photo

Ziad El Chaar, CEO of Dar Global, told Arab News that the Trump brand is synonymous with success. “The Trump name is a global brand that people attach to it always a very big sense of success,” he said.

“You can see the projects of Trump; they always feature the best material, the best design, and are really created for a great living experience and customer experience.”

Eric Trump’s visit to the Kingdom came after attending a cryptocurrency conference in Abu Dhabi earlier in the week.

 

The Trump family has ties to a new cryptocurrency called World Liberty Financial, and Donald Trump has pledged to launch a strategic national crypto stockpile during his second term.

Bitcoin’s value surged following Trump's election win in November, and this week it surpassed the $100,000 mark for the first time.


Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks
Updated 12 December 2024
Follow

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

RIYADH: Thirteen banks in Uzbekistan have secured a combined $566 million in financing through a key initiative by the International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group.

The funding aims to foster job creation, drive economic development, and empower local communities, according to a report by the Saudi Press Agency.

ITFC is committed to using these funds to support the private sector’s import and pre-export requirements, with a particular focus on small and medium-sized enterprises, which are vital to the country's economic growth and resilience.

This initiative aligns with the ITFC's broader mission to provide integrated trade solutions to member countries of the Islamic Development Bank. The institution, which currently has 57 member states, is primarily funded by Saudi Arabia, the largest shareholder with a 22.5 percent stake in the corporation.

The funds will specifically target SMEs, which are globally recognized as key drivers of economic growth. The ITFC has already provided over $69 billion in financing to the member countries of the Organization of Islamic Cooperation, solidifying its position as a leading provider of trade solutions within the OIC community.

In addition to financial support, ITFC also focuses on improving access to trade finance and offering technical assistance programs. These efforts equip member-state entities with the tools they need to compete successfully in the global marketplace.