Malaysia preparing to join BRICS economic group, media report says

Malaysia preparing to join BRICS economic group, media report says
More than 40 countries, including Malaysia, have expressed interest in joining the BRICS group of nations. Shutterstock
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Updated 18 June 2024
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Malaysia preparing to join BRICS economic group, media report says

Malaysia preparing to join BRICS economic group, media report says

KUALA LUMPUR: Malaysia is preparing to join the BRICS group of emerging economies, Prime Minister Anwar Ibrahim said in an interview with Chinese media outlet Guancha, Reuters reported.

The BRICS group of nations originally included Brazil, Russia, India, China, and South Africa, which gave it the acronym.

The group last year began to expand its membership as it looks to challenge a world order dominated by Western economies, with Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the UAE joining and more than 40 countries expressing interest.

“We have made a decision, we will be placing the formal procedures soon ... we are just waiting for the final results from the government in South Africa,” Anwar said, according to a video of the interview posted by Guancha on Sunday.

A representative from Anwar’s office on Tuesday confirmed his comments to Reuters.

During the interview, he did not provide further details on the application process.

Anwar’s comments came ahead of a three-day visit by Chinese Premier Li Qiang this week, as part of celebrations marking the 50th year of diplomatic relations between Malaysia and China.

Malaysia and China are expected to sign several deals during Li’s visit, including renewing a five-year trade and economic cooperation agreement.


Oil Updates – prices ease on slowing China demand, falling US inventories cap losses

Oil Updates – prices ease on slowing China demand, falling US inventories cap losses
Updated 17 July 2024
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Oil Updates – prices ease on slowing China demand, falling US inventories cap losses

Oil Updates – prices ease on slowing China demand, falling US inventories cap losses

SINGAPORE: Oil prices eased on Wednesday, with global benchmark Brent hovering near a one-month low hit in the prior session on signs of weakening demand in China, although losses were capped by declining US oil stockpiles, according to Reuters.

Brent crude oil futures fell 15 cents, or 0.2 percent, to $83.58 a barrel by 8:20 a.m. Saudi time. US West Texas Intermediate crude futures eased 13 cents, or 0.2 percent, to $80.63.

Both benchmarks dropped in the three prior sessions, with Brent crude futures trading as low as $83.30 on Tuesday, the lowest since June 17.

While concerns over Chinese demand continue to weigh on investor sentiment, the drawdown in US inventories is a factor limiting the downside in oil prices, said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.

“And steady US retail data points out that the economy is still healthy despite higher borrowing costs. This neutralizes fears of a slowdown in the US economy and fears of dented demand for oil,” Sachdeva said.

China, the world’s top oil importer, saw its economy grow 4.7 percent in the second quarter, official data showed earlier this week, the slowest growth since the first quarter of 2023.

A stronger US dollar has also weighed on oil prices, said ANZ Bank analyst Daniel Hynes in a note. The dollar index was slightly higher for a third consecutive session on Wednesday, making oil more expensive for investors holding other currencies.

In the US, the world’s largest oil producer and consumer, crude oil inventories fell by 4.4 million barrels in the week ended July 12, market sources said, citing data from the American Petroleum Institute.

Analysts polled by Reuters had estimated crude stocks would fall by 33,000 barrels. The US Energy Information Administration will release its official storage report at 4:30 p.m. Saudi time.

Also reducing oil price losses, retail sales were unchanged in June as a drop in receipts at auto dealerships was offset by broad strength elsewhere, a display of consumer resilience that bolstered economic growth prospects for the second quarter.

Meanwhile, rising geopolitical risk is also helping limit oil price declines, Growmark Energy analysts said.

A Liberia-flagged oil tanker was assessing damage and investigating a potential oil spill after it was attacked by Yemen’s Houthis in the Red Sea, the Red Sea and Gulf of Aden Joint Maritime Information Center said on Tuesday. 


Kingdom and Airbus can fly high together, says company chief

Kingdom and Airbus can fly high together, says company chief
Updated 16 July 2024
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Kingdom and Airbus can fly high together, says company chief

Kingdom and Airbus can fly high together, says company chief
  • $19 billion aviation agreement ‘will help Saudia to grow and also help the country to achieve its Vision 2030’
  • Saudia signed a deal with Airbus in May for 105 aircraft, the largest agreement in Saudi aviation history

HAMBURG: Saudi Arabia and the aircraft manufacturer Airbus can build on their $19 billion aviation agreement to expand their partnership even further, one of the company’s top managers told Arab News on Tuesday.

Airbus and Saudia airline signed a deal in May for the supply of 105 A320neo and A321neo planes, the largest aircraft agreement in Saudi aviation history.

Now Saudi Vision 2030 offers opportunities to develop the partnership, said Wouter van Wersch, president in charge of Airbus’s international operations. “I think it touches on a lot of very important points,” he said. “The whole sustainability angle, everything that the Kingdom wants to achieve in terms of energy, but also transportation, the NEOM opportunities.

 

“I think the future, airports, I think it really covers a lot of topics. And, you know, we need countries to take the lead on this.

“We, as Airbus, have a very clear strategy on what we want to do in terms of sustainability. You know, we work on innovation, bringing the best aircraft to the market today. But also tomorrow. We look at hydrogen. We look at sustainable aviation fuel. So, there’s a wide array of topics that need to be addressed and to be successful.

“You know, we've been in Saudi Arabia for a long time. We have a strong local team, of course, in commercial aircraft, but also in helicopters and in defense and space. So look, we want to do more. We are very committed to continue to work closely with the Kingdom and we’ll have to see what happens.”

 

The acquisition of the A321neo aircraft will help Saudia to grow, van Wersch said. “We have had a fantastic relationship with Saudia for many years. And I think this is a new confirmation of the partnership,” he said “You know, the first aircraft that we brought to Saudi Arabia was in the 1980s. So, it’s been a long while and we’ve gone from strength to strength.

“I think Saudia has a great vision. I think the Kingdom has a great vision on what it wants to achieve by 2030 and bringing this fantastic A321neo aircraft will really help to contribute, to satisfy and to realize this vision.

“I think the Vision 2030 of the country needs more transportation. And Airbus is a leader in aviation. So, we are very keen to contribute and look forward to great times together.”


Aramco to acquire 50% stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Co.

Aramco to acquire 50% stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Co.
Updated 17 July 2024
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Aramco to acquire 50% stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Co.

Aramco to acquire 50% stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Co.

RIYADH: Energy giant Saudi Aramco is set to acquire a 50 percent stake interest in the Jubail-based Blue Hydrogen Industrial Gases Co.

The deal, pending standard closing conditions, will also grant the firm options to purchase hydrogen and nitrogen from BHIG, a wholly-owned subsidiary of Air Products Qudra.

Saudi Aramco anticipates that its investment will help develop a lower-carbon hydrogen network in the Eastern Province of the Kingdom, serving both domestic and regional customers.

This builds on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060.

After the deal closes, Aramco and APQ – a joint venture between Air Products and Qudra Energy – Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.are expected to hold 50 percent of BHIG between them.

“We intend to leverage our growing capabilities in carbon capture and storage, as well as our technical expertise in hydrogen, with the ambition to support the establishment of a vibrant marketplace for lower-carbon hydrogen — helping lay the foundations of a future energy system,” Ashraf Al-Ghazzawi, Aramco’s executive vice president of Strategy and Corporate Development said.

He added: “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We believe there are promising commercial opportunities for hydrogen with lower emissions.”

It is also expected to serve the refining, chemical, and petrochemical industries

BHIG is designed to produce lower-carbon hydrogen while capturing and storing CO2 and is set to begin commercial operations in alignment with Aramco’s carbon capture and storage initiatives.

“We look forward to providing our expertise in hydrogen and pipeline operations and supporting Aramco’s need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements,” Samir Serhan, chairman of APQ said.


NASA, Saudi Space Agency sign agreement on civilian space exploration

NASA, Saudi Space Agency sign agreement on civilian space exploration
Updated 16 July 2024
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NASA, Saudi Space Agency sign agreement on civilian space exploration

NASA, Saudi Space Agency sign agreement on civilian space exploration
  • NASA Administrator Bill Nelson signed on behalf of the US
  • CEO of the Saudi Space Agency Mohammed bin Saud Al-Tamimi signed on behalf of the Kingdom

RIYADH: Saudi Arabia and the US signed a framework agreement on Monday to increase cooperation between the two countries on civilian space exploration and research, Saudi Press Agency reported on Tuesday.

NASA Administrator Bill Nelson signed on behalf of the US, and CEO of the Saudi Space Agency Mohammed bin Saud Al-Tamimi signed on behalf of the Kingdom.

The agreement was titled “Framework Agreement Between the Government of the United States of America and the Government of The Kingdom of Saudi Arabia on Cooperation in Aeronautics and the Exploration and Use of Airspace and Outer Space for Peaceful Purposes.”

It will establish a legal framework to facilitate and strengthen collaboration between the two countries.

Abdullah Al-Swaha, chairman of the Saudi Space Agency, said that the agreement represented a “turning point in the Kingdom’s journey toward building a strong and prosperous space sector,” and noted that it reflected Saudi Arabia’s commitment to progress and innovation in the field of space travel.

The agreement also acknowledged the importance of the Artemis Accords — which the US signed in October 2020 and Saudi Arabia signed in July 2022 — reflecting their commitment to the transparent, safe and responsible exploration of space, a State Department statement said.


Saudi minister holds talks with Qatar, Hungary, and Solomon Islands on sustainable growth

Saudi minister holds talks with Qatar, Hungary, and Solomon Islands on sustainable growth
Updated 16 July 2024
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Saudi minister holds talks with Qatar, Hungary, and Solomon Islands on sustainable growth

Saudi minister holds talks with Qatar, Hungary, and Solomon Islands on sustainable growth

RIYADH: A Saudi minister held high-level meetings with officials from Qatar, Hungary, and the Solomon Islands to discuss using sustainable development goals as a key driver of growth.   

On the sidelines of the annual High-Level Political Forum 2024 on Sustainable Development held in New York from July 8 to July 18, the Minister of Economy and Planning, Faisal Al-Ibrahim, met with Abdulaziz bin Nasser Al-Khalifa, president of the Civil Service and Government Development Bureau and secretary-general of the National Planning Council in Qatar. 

He also held talks with Hungary’s Minister of State for Environment and Circular Economy Aniko Raisz and the Solomon Islands’ Minister of Planning and Development Rexson Ramofafia.

These meetings are in line with the Kingdom’s ongoing efforts to further bolster and propel relations with the respective countries.

According to the online data visualization and distribution platform Observatory of Economic Complexity, in 2022, Saudi Arabia exported $1.73 billion to Qatar, while the small, gas-rich Gulf nation exported $474 million to the Kingdom. 

OEC also revealed that while Saudi Arabia exported $7.65 million to Hungary in 2022, the European country exported $223 million to the Kingdom. 

OEC disclosed that in 2020, Saudi Arabia exported $20,800 to the Solomon Islands, while the latter exported $32,800 to the Kingdom.

“Accelerating the pace of progress requires policymaking that is ambitious and bold, but also clear, collaborative, and solution-oriented,” Al-Ibrahim said in his address during the event, according to a statement. 

“We need to develop a prioritization mechanism that enables nations to focus on the most efficient policies and the smartest solutions that unlock the greatest impact, for the greatest number of people, in the shortest possible timeframe,” the minister added.

He went on to note that sustainable progress hinges on creating and capturing opportunities to improve the overall standard of living to enhance quality of life. 

“We are taking a whole-of-economy, human-centric approach to unlocking our inherent potential under Saudi Vision 2030. We are also localizing sustainable action, whereby cities are publishing their Voluntary Local Reviews while integrating sustainable practices to reach all communities,” Al-Ibrahim further stressed. 

“Under the Saudi Green Initiative, the Kingdom is playing a key role in achieving global climate targets. With more than 80 initiatives, we are investing more than $180 billion to grow the green economy and cement our position as a renewable energy leader,” the minister added. 

He concluded by saying: “As we look ahead, let us take a smarter, more pragmatic approach to deliver more tangible progress. Let us prioritize the challenges we can address now, and fast, so that we can unlock more capabilities, more energy, and more hope.”

According to a post on X by the ministry, the officials also discussed enhancing international cooperation in different fields.   

The statement further stated that Saudi Arabia participated in this forum with a delegation that included 13 entities from the government sector headed by Al-Ibrahim. 

The Kingdom has participated in the forum every year since 2017, as the HLPF has been held annually since 2015 under the auspices of the UN Economic and Social Council.

In June, Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan Al-Saud received the Prime Minister of the Solomon Islands, Manasseh Sogavare, and his accompanying delegation during their official visit to the capital, Riyadh, the Kingdom’s foreign ministry said on July 12.  

The ministry said in a statement that at the time, the two sides reviewed bilateral relations and ways to enhance and develop them in various fields and discussed intensifying joint coordination on many issues of concern to both countries.

Also in June, Hungary’s Deputy Minister and State Secretary of the Ministry of Defense, Tamas Vargha, said that the economic ties between Saudi Arabia and Hungary will continue to grow over the next few years.

“(Saudi Arabia’s) Vision 2030 … I think it’s a success story … it’s a good basis for our cooperation,” Vargha told Arab News during a recent interview.

“You have seen lots of changes since Vision 2030 started … both social changes and the economic changes and growth,” Vargha said at the time.

In December 2023, Saudi Arabia and Qatar announced that they were working to “deepen and expand” their economic, military, sports, and cultural ties. 

According to a statement issued at the time, this followed the Saudi-Qatari Coordination Council meeting attended by Crown Prince Mohammed bin Salman and Sheikh Tamim bin Hamad, the emir of Qatar.