Amman Chamber of Industry exports dip to almost 4% in 8 months
Amman Chamber of Industry exports dip to almost 4% in 8 months/node/2570545/business-economy
Amman Chamber of Industry exports dip to almost 4% in 8 months
Arab countries dominated the geographical distribution of exports from the Amman Chamber of Industry, with exchanges of 2.01 billion dinars. Shutterstock
Amman Chamber of Industry exports dip to almost 4% in 8 months
Chemical and cosmetic industries topped the exports list, totaling 1.10 billion dinars
Three sectors experienced declines in exports, with the mining industries witnessing the greatest drop
Updated 08 September 2024
NADIN HASSAN
RIYADH: Exports from the Amman Chamber of Industry have decreased by 3.94 percent during the first eight months, reaching 4.55 billion Jordanian dinars ($6.42 billion), compared to the same period in 2023.
Three sectors experienced declines in exports, with the mining industries witnessing the greatest drop of 35.6 percent, according to Jordan’s official news agency Petra.
A decrease of 4.6 percent was also reported by the office supply, packaging, paper, and cardboard industries, while exports from the construction sector fell by 23.1 percent.
Other exports increased in seven areas, ranging from 2.4 percent for the food, agriculture, and livestock sectors to 22.1 percent for the chemical and cosmetics industries.
During this time, the US, Saudi Arabia, Iraq, and India accounted for four major markets for more than half of the chamber’s exports, which totaled 2.90 billion dinars.
Compared to 782 million dinars during the same period in 2023, exports to the US saw a notable 53.2 percent increase, reaching 1.20 billion dinars in the first eight months of the year.
The expansion established the US as the primary destination for Amman’s industrial exports.
Shipments to Iraq increased by 10.8 percent to 609 million dinars, from 549 million dinars during the same period the previous year.
Exports to Saudi Arabia fell 5.5 percent to 521 million dinars, down from 551 million dinars in the same term in 2023. Exports to India declined by 37.6 percent to 567 million dinars, from 908 million dinars.
Arab countries dominated the geographical distribution of exports from the Amman Chamber of Industry, with exchanges of 2.01 billion dinars.
Non-Arab Asian nations followed with 833 million dinars, while African countries earned 23 million dinars in exports.
Exports to North America totaled 1.22 billion dinars, with South American countries importing goods worth 61 million dinars.
EU nations exported 235 million dinars, while non-EU European countries received 96 million dinars. Exports to other global markets totaled 66 million dinars.
The chemical and cosmetic industries topped the Amman Chamber of Industry exports list, totaling 1.10 billion dinars. The mining division followed with exports of 947 million dinars, while the engineering, electrical, and computer technology sectors accounted for 712 million dinars.
Other significant fields included the food, agricultural, and livestock industries, which exported products worth 521 million dinars. Medical and pharmaceutical exports reached 448 million dinars, and leather and textile exchanges totaled 350 million dinars.
Exports from the plastic and rubber industries amounted to 201 million dinars, while the packaging, paper, cardboard, and office supplies sector contributed 181 million dinars.
The construction division exported goods valued at 76 million dinars, and the wood and furniture industries added 14 million dinars in exports.
Founded in 1962, the Amman Chamber of Industry currently represents 8,600 industrial establishments, employing around 159,000 workers, with a total capital of approximately 5 billion dinars.
Global Logistics Forum announces key partners on eve of inaugural event
Updated 34 sec ago
Arab News
RIYADH: Shipping firm MAERSK, aviation conglomerate Saudia Group and delivery company Aramex have been confirmed as key partners of the Global Logistics Forum, set to take place in Riyadh from Oct. 12-14.
The event, hosted by Saudi Arabia’s Ministry of Transport and Logistic Services, will serve as a platform for uniting partners to enhance supply chain efficiency, resilience, sustainability, and profitability, according to a press release.
The inaugural forum will host 10,000 attendees and see more than 120 speakers, including world leaders, ministers, business chiefs, and experts in the logistics sector contributing to the event.
The event comes as Saudi Arabia places an increased focus on its logistics industry, in line with the Vision 2030 economic diversification strategy.
The sector is surging, with a 76 percent increase in new businesses registered in the second quarter of 2024, making logistics the fastest-growing sphere in the Kingdom.
Rumaih bin Muhammad Al-Rumaih, the Kingdom’s vice minister of Transport and Logistic Services, said the forum marks a key waypoint on the journey of the global industry.
“From the food we eat, to the gifts we give, and to everything in between, our modern world depends on the global logistics network.
“At the Global Logistics Forum, we will set the future direction for this most critical industry.
“We are proud to share the many global and regional logistics leaders who are partnering with us for the inaugural GLF, recognizing the importance of this moment to share the future map of global logistics.”
Ibrahim Al-Omar, director general of Saudia Group, said that being a Presenting Partner for the event in Riyadh is testament to his company’s commitment to Saudi Vision 2030.
“This forum is a pivotal moment for Saudia Group to engage with global leaders and contribute to the Kingdom's ambition of becoming a leading logistics hub. Our participation underscores our dedication to fostering innovation and collaboration in the logistics sector," he added.
Group CEO of Aramex, Othman Aljeda, said that the company “was thrilled to embark on this collaborative journey with the Global Logistics Forum.”
He added: “Earlier this year, Aramex opened a new regional hub in Riyadh, and our partnership at GLF will ensure that we are contributing our expertise and supporting Saudi Arabia's Vision 2030 by fostering greater collaboration, operational excellence, and sustainable growth in the region's logistics sector."
The Global Logistics Forum will also serve as a “launching pad” for MoUs between industry leaders in global logistics, formalizing a more connected sector, and in turn ensuring a more resilient and efficient network of global connectivity, according to a release.
Saudi banking sector sector dominates TASI trading in Q3
Updated 11 October 2024
Dayan Abou Tine
RIYADH: Saudi Arabia’s banking sector led trading on the Kingdom’s stock exchange in 2014’s third quarter with a 15.14 percent market share, according to Tadawul’s latest report.
The industry was responsible for approximately SR67.5 billion ($18 billion) of transactions, ahead of the materials sector with SR60.2 billion, comprising 13.50 percent of the market.
The energy sector had 9.12 percent share in this period, with value traded reaching SR41.07 billion.
Al Rajhi Bank, the largest player in the industry on the market, recorded the second-highest activity at nearly SR22.7 billion during this period, trailing only Aramco, which led with SR27.15 billion in trades.
In June, Al Rajhi Bank announced that it has become a leading target for foreign investors in the Saudi banking sector, with foreign ownership in its shares exceeding SR43 billion, representing 13.2 percent of the total.
This investment accounts for over 10 percent of total foreign investments in Saudi stocks, reflecting the bank’s prominence.
Al Rajhi Bank, valued at SR320.4 billion, is the largest bank in the Middle East and Africa, holding significant weight in global indices like MSCI Emerging Markets.
Its share price has surged over 300 percent since the launch of Vision 2030 eight years ago, and its assets have nearly doubled, showcasing its strong growth.
The bank enjoys high ratings from global financial institutions, benefiting from past economic cycles, including interest rate reductions.
Interest rates driving banks’ appeal to investors
Factors like higher interest rates, driven by the Saudi Central Bank’s alignment with the US Federal Reserve, boosted profitability through improved net interest margins, making bank stocks more attractive to investors.
Strong credit growth, particularly in corporate and real estate finance, supported by Vision 2030 projects, further enhanced the sector’s appeal.
Saudi banks also enjoyed improved asset quality, reflected by lower non-performing loans, which bolstered confidence in the sector’s stability.
The broader economic performance, with strong non-oil GDP growth, created a favorable environment, and higher bank earnings, driven by increased private sector credit demand, fueled market activity.
The materials sector’s position as the second highest in trading volume can also be largely attributed to Saudi Arabia’s ongoing Vision 2030 program, which has ignited significant demand for building materials and industrial supplies to support the Kingdom’s expansive infrastructure and construction projects.
This surge in demand could have driven higher trading activity and piqued investor interest in the sector. Additionally, Saudi Arabia’s inclusion in global indices like MSCI and FTSE Russell could have further bolstered foreign investment in this industry.
Foreign ownership growth
Strong government support added further momentum as the sector’s perceived resilience and growth potential attracted both domestic and international capital.
As of September, foreign investment in Saudi stocks has reached record levels, with over SR414.92 billion in ownership according to Tadawul data, increasing from SR365.91 billion in the same period last year.
The exchange has focused on improving market function and efficiency by implementing robust measures, such as corporate governance enhancements, increased transparency, and greater liquidity – all of which are critical for a healthy financial ecosystem.
These efforts have not only attracted international investors but have also strengthened local confidence, allowing for more robust trading volumes and values.
Foreign investors, facilitated by programs like the Qualified Foreign Investor program, introduced in 2015 and amended in 2019, now have streamlined access to the Saudi market.
This program, paired with broader reforms, has expanded the pool of eligible institutional investors, enhancing the capital inflow into sectors like banking, which tend to offer consistent returns and security.
The inclusion of Saudi Arabia in prominent global indices, such as MSCI and FTSE Russell, further amplified investor interest.
These indices serve as benchmarks for fund managers worldwide, and Saudi Arabia’s quick ascension – spending less than a year on MSCI’s watchlist before inclusion in the Emerging Markets Index – signals the international market’s confidence in the country’s reforms, according to Tadawul.
Top gainers
In the third quarter of 2024, Red Sea International Co. emerged as the top gainer on the Tadawul All-Share Index, with a price appreciation of 133.16 percent.
This real estate company has secured a SR658 million contract with Italian construction firm Webuild for constructing a staff camp at the Trojena Dam project within NEOM, Saudi Arabia.
The 12-month contract, excluding VAT, involves designing, producing, supplying, and installing prefabricated buildings, including residential areas, a mosque, dining facilities, a medical center, and a fitness center.
The project will be executed in two stages, with the second phase contingent on client approval.
Financial impacts of the contract will be reflected from the third quarter of 2024 to the end of 2025.
Albaha Investment and Development Co. followed closely as the second top gainer, posting an 83.3 percent quarter-to-date increase, with 3.7 billion shares traded, reflecting strong investor interest in the development space.
Sasco, a prominent car service company, rounded out the top three with a 62.93 percent quarter-to-date gain, further highlighting the diversity of sectors showing significant growth.
In February, Sasco partnered with Electric Vehicle Infrastructure Co. to advance EV infrastructure, encourage the adoption of such automobiles, and reduce carbon emissions in Saudi Arabia.
The partnership will prioritize the development of fast-charging stations and public charging points across cities and provinces.
The overall performance of the Tadawul index also reflected this bullish trend, as the market concluded the third quarter with a 4.67 percent increase. TASI rose by 546 points, closing at 12,226.10, signaling growing investor confidence and strong market fundamentals across key sectors.
Startup Wrap – Saudi firms flourish with acquisitions and funding rounds
Updated 11 October 2024
Nour El-Shaeri
RIYADH: Startups across the Middle East continue to attract significant investment, with new funding rounds and strategic acquisitions highlighting the region's growing appeal to investors.
From Saudi Arabia and the UAE to Oman and Kuwait, emerging companies are securing capital to expand their market reach, develop innovative solutions, and strengthen their positions in competitive industries.
Saudi property tech startup Ejari has closed a $14.65 million seed round, comprising a mix of debt and equity, to expand its presence in the rent now, pay later market.
The round was led by Partners for Growth, with participation from BECO Capital, anb seed, and Rua Ventures, as well as Alinma Bank, Vision Ventures, and Aqar platform, a leading property listing platform in Saudi Arabia. Existing investor Salica Oryx Fund also participated in the round.
Founded in 2022 by Yazeed Al-Shamsi, Fahad Al-Bedah, Mohammed Al-Khelewy, and Khalid Al-Munif, Ejari provides an RNPL solution tailored to Saudi Arabia’s real estate rental market.
The new funding aims to strengthen its market share, enhance product offerings, and solidify its position as a key player in the Saudi rental market.
Al-Shamsi, the company’s CEO, described the cash injection as a “major milestone” in the firm’s journey to transform the Saudi rental market.
“With this new investment, we’re poised to enhance our technology, expand our product offerings, and deliver exceptional value to our clients. Our mission is to democratize access to the rental market and lower barriers for tenants, and this funding brings us closer to that goal. We are deeply grateful for the trust our investors have placed in us and are excited about the future,” he added.
Yamm closes pre-seed funding to enhance logistics platform
Saudi-based logistics startup Yamm has completed a pre-seed funding round, with an undisclosed amount raised.
The round was led by Flat6Labs, with additional participation from Judah Ventures and several angel investors.
Founded in 2023 by Sultan Al-Subhi, Mohammed Al-Shalati, and Hamadah Al-Khaldi, Yamm aims to simplify the post-purchase experience for both consumers and merchants by providing an end-to-end solution for managing returns, refunds, and logistics.
The funding will be used to expand its merchant base across Saudi Arabia, introduce new product features, and enhance the platform’s value for retailers.
Nana acquires Rasseed to boost digital grocery shopping experience
Saudi Arabia-based digital grocery delivery startup Nana has acquired Rasseed, a software solutions provider specializing in branded and local gift cards, for an undisclosed amount.
Nana, founded in 2016 by Abdulmajeed Al-Sukhan and Sami Al-Helwah, offers a digital platform for fulfilling daily, weekly, and monthly household grocery needs.
Rasseed, also founded in 2016 in Saudi Arabia, focuses on simplifying the purchase of gift cards.
The acquisition aligns with Nana’s strategy to digitize the grocery shopping experience in stores and hypermarkets, as well as its broader expansion plans.
Nana previously raised $133 million in a series C funding round in February 2023, led by Kingdom Holding and Uni Ventures, along with other investors.
OCTA secures $2.25m pre-seed round to streamline SME payments
UAE-based fintech OCTA has closed a $2.25 million pre-seed funding round.
The round was co-led by Quona Capital and Sadu Capital, with additional backing from Sukna Ventures, Plus VC, 500 Global, and notable angel investors, including Pawel Iwanow, chief payment officer at Fresha, and Dom Monhardt, director of product design at Tap Payments.
Founded in early 2024 by Jon Santillan, Nupur Mitta, and Andrey Korchak, OCTA automates the process of collecting payments for small and medium-sized enterprises, helping to improve cash flow management and simplify accounts receivable.
The company has recently expanded its operations into the Saudi market.
Synnax raises $550k in strategic funding for credit intelligence platform
Synnax, a digital asset credit intelligence startup, has raised $550,000 in a strategic funding round, bringing its total fundraising to $1.55 million.
The investment was led by Wintermute Ventures and TON Ventures. The funds will support the continued development of Synnax’s Credit Intelligence platform and its Telegram-based mini-app, SynQuest, which attracted over 250,000 users within two weeks of launch.
The partnerships with Wintermute Ventures and TON Ventures go beyond funding, aligning with Synnax’s vision of building a decentralized, transparent digital asset credit market.
Wintermute Ventures, a leader in algorithmic trading and digital asset lending, provides expertise, while TON Ventures leverages its influence in The Open Network ecosystem, which integrates with Telegram’s user base of over 950 million people.
QPay secures seed funding to drive fintech growth in Oman
QPay, Oman’s first licensed buy now, pay later financial services provider, has completed a seed funding round led by Cyfr Capital.
This funding is part of Future Fund Oman’s broader strategy to boost innovation within the country’s fintech sector.
The investment will help advance QPay’s mission to enhance financial inclusion and promote the growth of BNPL services across the Sultanate, aligning with FFO’s focus on supporting innovative fintech solutions.
Kuwait’s Krti raises $1.5m to expand payment solutions
Kuwaiti fintech startup Krti has secured $1.5 million in a pre-seed funding round, led by Core Vision Investment as part of the Financial Academy Financial Technology Investment Programme.
Founded in 2022 by Abdulrahman Al-Hammadi, Naser Boresli, and Abdullah Al-Baker, Krti offers payment solutions designed to support online merchants and shoppers, aiming to empower the region’s e-commerce sector.
The newly raised capital will facilitate Krti’s expansion in both Kuwait and Saudi Arabia.
4Partners secures $3.6m to fuel regional expansion from Dubai HQ
UAE-headquartered dropshipping service 4Partners has raised $3.6 million in a recent funding round from undisclosed investors.
Founded in 2017 in Russia, the company assists businesses in launching and scaling online stores by managing inventory, shipping, and order fulfillment through its network of warehouses across MENA, Europe, Asia, and the US.
After relocating its headquarters to Dubai in 2023, 4Partners plans to use the new capital to support its growth in the region.
The company aims to tap into the MENA e-commerce market, offering a content management system alongside international dropshipping solutions for online retailers.
Rology partners with Thakaa Med to advance AI-driven stroke detection
Rology, an FDA-cleared artificial intelligence-powered teleradiology platform, has entered a strategic partnership with Riyadh-based Thakaa Med, an AI-driven health care technology firm, to develop “StrokeIQ,” a new solution designed to improve the speed and accuracy of stroke detection in neuroimaging.
StrokeIQ will utilize AI to analyze CT brain scans and identify signs of stroke, enabling health care providers to make more rapid, informed decisions during critical situations.
The collaboration aims to leverage advanced AI technology to address the challenges in stroke diagnostics, where timely intervention is crucial.
Saudi Arabia part of China trial of yuan digital currency payments
Cut costs by 50%, takes seconds, says People’s Bank of China
New trial comes as the digital yuan is facing problems at home
Updated 11 October 2024
Arab News Japan
TOKYO: China has started a trial for cross-border payments using central bank digital currencies with Saudi Arabia, the UAE, and other partners as it looks at alternative uses for the digital yuan amid its struggles in the home market, Nikkei Asia has reported.
The CBDCs use blockchain technology to record transactions. They can allow cross-border payments to be completed within seconds and cut costs by up to 50 percent, according to the People’s Bank of China.
The central bank wants to promote interconnectivity in global financial infrastructure and the new trial aims to find solutions to issues that arise in cross-border settlements.
Currently, international payments pass through so-called correspondent banks based on orders placed via the SWIFT messaging platform. The process can take a few days to about a week.
Cross-border payments are also typically made in dollars. Low-cost transfers using CBDCs could help promote non-dollar transactions and reduce China’s dependence on the dollar.
Seven central banks — including in Japan, the US and Europe — also announced a joint trial for CBDC payments in April with private-sector partners.
The new trial comes as the digital yuan is facing problems at home. China has also experimented with using the digital yuan for salary and tax payments, and digital yuan transactions totaled 7 trillion yuan ($992 billion) at the end of June, according to the PBOC.
However, Chinese users see little advantage to the digital yuan over popular private-sector payment apps, such as WeChat Pay and Alipay. More than 80 percent of payment transactions in China are believed to be cashless.
Oil Updates – crude retreats but heads for weekly climb on potential Mideast supply disruption
Updated 11 October 2024
Reuters
SINGAPORE: Oil eased on Friday after a rally the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on US demand against any broad supply disruption if Israel attacks Iranian oil sites.
Brent crude oil futures fell 29 cents, or 0.4 percent, to $79.11 a barrel by 7:30 a.m. Saudi time. US West Texas Intermediate crude futures dropped 21 cents, or 0.3 percent, to $75.64 per barrel.
For the week, both benchmarks were headed for a 1 percent-2 percent gain.
“Oil prices continue to extend (their) run week-on-week, with geopolitical risks fueling the rebound,” said Yeap Jun Rong, market strategist at IG. But he added that reservations over high crude inventories and a possibly more gradual easing of the US Fed rate have put the recent rally on hold.
In the US, Hurricane Milton plowed into the Atlantic Ocean on Thursday after cutting a destructive path across Florida, killing at least 10 people and leaving millions without power. The destruction could dampen fuel consumption in some areas of the world’s largest oil producer and consumer.
“Investors are evaluating how hurricane damage might impact the US economy and fuel demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“Oil prices are likely to hover around the current 200-day average levels, with the primary concern being whether Israel will retaliate against Iranian oil facilities,” he said.
The 200-day average for Brent is at $81.68 a barrel and for WTI it’s at $77.36.
Crude benchmarks spiked this month after Iran launched more than 180 missiles against Israel on Oct. 1, raising the prospect of retaliation against Iranian oil facilities. Israel has yet to respond, and crude benchmarks have eased and remained relatively flat through the week.
Israeli Defense Minister Yoav Gallant, however, has said that any strike against Iran would be “lethal, precise and surprising.”
Iran is backing several groups fighting Israel, including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen.
In Lebanon, Israeli strikes on central Beirut on Thursday night killed 22 people and wounded at least 117, Lebanon’s health ministry said. Lebanese security sources said at least one senior Hezbollah figure was also targeted in the attacks.
Gulf states, meanwhile, are lobbying Washington to stop Israel from attacking Iran’s oil sites, out of concern their own oil facilities could come under fire from Tehran’s proxies if the conflict escalates, three Gulf sources told Reuters.
On the supply side, Libya’s National Oil Corporation said on Thursday it has restored production close to levels before the country’s central bank crisis, reaching 1.22 million barrels per day.