GCC trade with India, Brazil of ‘growing significance’ as it reaches $195bn, says Al-Budaiwi

During the India-GCC Joint Ministerial Meeting for Strategic Dialogue,  Jasem Mohamed Al-Budaiwi highlighted the expanding economic ties with both countries, with a particular focus on opportunities in renewable energy, artificial intelligence, and fintech. SPA
During the India-GCC Joint Ministerial Meeting for Strategic Dialogue,  Jasem Mohamed Al-Budaiwi highlighted the expanding economic ties with both countries, with a particular focus on opportunities in renewable energy, artificial intelligence, and fintech. SPA
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Updated 10 September 2024
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GCC trade with India, Brazil of ‘growing significance’ as it reaches $195bn, says Al-Budaiwi

GCC trade with India, Brazil of ‘growing significance’ as it reaches $195bn, says Al-Budaiwi

RIYADH: Trade between the Gulf Cooperation Council and its partners India and Brazil reached nearly $195.1 billion in 2022, as reported by GCC secretary-general.

During the India-GCC Joint Ministerial Meeting for Strategic Dialogue,  Jasem Mohamed Al-Budaiwi highlighted the expanding economic ties with both countries, with a particular focus on opportunities in renewable energy, artificial intelligence, and fintech.

Al-Budaiwi began his speech by underscoring the solid foundation of economic cooperation that supports the GCC’s relationships with India and Brazil. He emphasized the significance of these partnerships in promoting mutual growth and addressing global challenges.

On the trade front, the GCC chief provided detailed figures to illustrate the robust commercial relationship between the GCC and India. He said: “In 2022, trade between the GCC and India amounted to approximately $174 billion, representing around 11 percent of the total foreign trade of the GCC.”

Al-Budaiwi further detailed the trade figures, revealing that the GCC’s exports to India were valued at $91 billion, while imports from India totaled $83 billion. He said: “This trade volume strengthens economic integration between us and provides opportunities for growth and expansion in both our markets.”

In 2022, trade between the GCC and Brazil nearly doubled, reaching $21.9 billion. Al-Budaiwi remarked: “This figure accounts for approximately 1.4 percent of the total foreign trade of the GCC, which amounted to $1.544 trillion last year, highlighting the growing significance of our collaboration.”

He further elaborated on the diverse nature of this trade, noting that it encompasses various commodities, including oil, gas, iron, foodstuffs, and mineral oils.

“These exchanges reflect the shared importance of cooperation between both sides and underline the breadth of products and goods involved in this partnership,” Al-Budaiwi stated.

Turning to the GCC’s economic relations with India, he highlighted the significant investments made by the Gulf states, noting, “GCC countries have invested nearly $6 billion in various projects in India, reflecting mutual trust and the promising opportunities offered by both markets.”

Al-Budaiwi explained that these investments are crucial for generating significant economic benefits on both sides, including job creation and overall economic growth. He emphasized: “By enhancing joint investments, we can achieve substantial economic gains, such as job creation and growth.”

He also underscored the strategic importance of renewable energy cooperation between the GCC and India, stating, “There are great opportunities for joint investment in renewable energy sectors between the Gulf states and India.” He added that such collaboration will contribute to sustainability, diversify energy sources, and support environmental protection.

Furthermore, Al-Budaiwi highlighted the role of this partnership in advancing global sustainability goals, adding: “This is not just about economic gains; it is about securing a sustainable future for generations to come.”

Al-Budaiwi also discussed the promising opportunities for collaboration in technology and innovation. He said:“There are immense possibilities for cooperation in areas like artificial intelligence, big data, and financial technology.”

He emphasized that leveraging expertise in these fields will drive innovation and promote sustainable growth, adding: “This collaboration will enhance our capabilities in innovation and ensure sustainable development for both sides.”

In his concluding remarks, Al-Budaiwi reaffirmed the essential role of economic cooperation in the overall relationship between the GCC, India, and Brazil. He asserted: “Economic cooperation forms the foundation of our trade and investment relations. It is the cornerstone upon which we build our commercial and investment ties.”

He expressed optimism about the future, noting that these strategic partnerships are expected to evolve, benefiting the economies of the GCC and its partners and contributing to global economic stability and sustainability.

Al-Budaiwi announced that both sides have agreed on a Joint Action Plan for 2024-2028 to advance cooperation, with the General Secretariat coordinating between India and the GCC to implement and enhance the plan.

Al-Budaiwi’s speech at the GCC-India Strategic Dialogue underscored the shared vision of the GCC, India, and Brazil for deeper economic cooperation. The event, chaired by Qatar’s prime minister and attended by India’s external affairs minister, established a framework for strengthening ties in innovation, sustainability, and economic integration.


UAE cabinet approves 2025 budget with expenditures of $19.5 bln

UAE cabinet approves 2025 budget with expenditures of $19.5 bln
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UAE cabinet approves 2025 budget with expenditures of $19.5 bln

UAE cabinet approves 2025 budget with expenditures of $19.5 bln

DUBAI: The UAE cabinet has approved the budget for the 2025 fiscal year with expenditures of 71.5 billion dirhams ($19.47 billion), the state news agency said on Tuesday.
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MENA startup funding reaches $1.3bn in first 9 months of the year

MENA startup funding reaches $1.3bn in first 9 months of the year
Updated 7 min 5 sec ago
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MENA startup funding reaches $1.3bn in first 9 months of the year

MENA startup funding reaches $1.3bn in first 9 months of the year
  • Funding across EVMs fell from $1.9 billion in the second quarter to $1.4 billion in the third quarter
  • MENA startups secured $1.3 billion across 352 deals, reflecting a relatively modest 6% drop in deal count

RIYADH: Startups in the Middle East and North Africa raised $1.3 billion in the first nine months of the year, reflecting a 13 percent year-on-year decline, the latest data showed. 

MAGNiTT, a venture capital data platform for emerging venture markets, revealed this in its third-quarter report, analyzing investment trends across the Middle East, Africa, Southeast Asia, Pakistan, and Turkiye for the first nine months of 2024. 

Despite the broader slowdown in global venture capital activity, the region showed resilience, outperforming other emerging venture markets, or EVMs. 

MAGNiTT CEO Philip Bahoshy highlighted the region’s growing appeal to global investors, particularly for early-stage investments.  

“MENA’s performance in the nine months of 2024 underlines the region’s increasing appeal to global investors, particularly at the early stages. The number of investors has grown by 34 percent year-on-year, driven by a 69 percent increase in international investors,” he said.   

Bahoshy also said that the fourth quarter traditionally performs strongly, adding that events, like Expand North Star and the Future Investment Initiative Forum, are expected to further boost funding activity in MENA.  

Investment snapshot  

Overall, EVMs saw a significant downturn, raising $4.9 billion — a 45 percent year-on-year decline. Southeast Asia and Africa recorded the steepest drops, while the Middle East and North America experienced the smallest decrease, buoyed by two consecutive quarters of year-on-year funding growth.  

The total deal count across EVMs was 974, a 29 percent decline year-on-year. Total investors saw a slight 4 percent decline to 1,250, while total exits dropped by 39 percent. 

Singapore ranked as the top country in EVMs, with $1.64 billion in funding, 178 deals, and 15 exits. Fintech was the leading industry for investors, attracting $1.77 billion across 198 deals.   

Alibaba Group was the most active investor in terms of funding, contributing $234 million, while Antler led in deal count with 60 transactions. 

Funding across EVMs fell from $1.9 billion in the second quarter to $1.4 billion in the third quarter. Deal counts also declined from 296 to 281.   

This quarter-on-quarter drop was primarily driven by the absence of Southeast Asia’s mega deals, which fell from $670 million to zero, causing a 54 percent decrease in funding for the region and significantly impacting the overall performance of EVMs.  

MENA deep dive  

MENA startups secured $1.3 billion across 352 deals, reflecting a relatively modest 6 percent drop in deal count compared to the same period last year. 

Total investors in MENA increased by 34 percent, underscoring the region’s attractiveness among EVMs. However, there were only 17 exits during the first nine months, marking a 50 percent year-on-year decline.  

Fintech remained the top sector in MENA, attracting $480 million across 72 deals. The Saudi Public Investment Fund’s Sanabil Investments was the most active investor in terms of funding, deploying $59 million, while Flat6Labs led in deal count with 37 transactions.  

Among the MENA countries, the UAE, Saudi Arabia, and Egypt stood out for their growth in deal volume. The UAE accounted for 38 percent of all MENA deals, with a 12 percent rise in the number of transactions, largely fueled by a 40 percent increase in seed and pre-series A rounds.  

Saudi Arabia followed with a 7 percent year-on-year increase in deal count, supported by a 46 percent jump in seed deals from companies such as Moyasar, SiFi, and Anabolic.  

Egypt posted a 45 percent rise in seed and series A rounds, though it saw a 17 percent decline in pre-seed activity, indicating a shift toward more mature companies. 

In terms of funding, Saudi Arabia ranked first, with $509 million deployed into startups, an 8 percent annual decline. The UAE followed with $380 million, an 18 percent decrease.  

Africa and Southeast Asia   

In contrast, Africa and Southeast Asia saw substantial contractions in venture capital activity. 

African startups raised $839 million, a 38 percent year-on-year decline, with deal volumes falling by 42 percent to 202. This downturn was largely driven by an 81 percent reduction in accelerator investments.  

Total investors in Africa decreased by 16 percent to 310, while total exits dropped by 36 percent to 14.  

Fintech remained the top sector in Africa, attracting $557 million across 49 deals. Norrsken22 was the most active investor in terms of funding, with $54 million, while Renew Capital led in deal count with 15 transactions.  

Egypt was Africa’s top-performing country, with $304 million in funding and 56 deals. The largest deal was Halan’s $157.5 million raise. South Africa led in exits. 

Southeast Asia faced the steepest decline among all EVMs, with funding falling to $2.77 billion — a 51 percent year-on-year drop — primarily due to a significant decrease in deals exceeding $100 million.  

Total deals in Southeast Asia amounted to 349, a 28 percent drop year-on-year. Total investors declined by 9 percent, while exits fell by 26 percent.  

Africa’s funding rebounded strongly in the third quarter, with a 168 percent quarter-on-quarter increase, driven by a resurgence in series A and B deals, particularly among fintech startups, and Halan’s $157.5 million mega deal.  

Southeast Asia experienced a 35 percent quarter-on-quarter decline in deal volume during the third quarter, while Africa’s deal count rose by 59 percent. South Africa, Nigeria, and Egypt more than doubled their deal volumes.  

Looking ahead, Bahoshy said that the fourth quarter will be pivotal, particularly given global trends pointing toward lower interest rates and a potential uptick in investment activity.  

“The fourth quarter of 2023 set a high benchmark with two mega deals in Saudi Arabia and the year’s highest quarterly funding in MENA. With global trends pointing toward lower interest rates and an uptick in investment activity, the fourth quarter of 2024 will be a crucial period. All eyes are on whether we can exceed last year’s performance,” he added. 


Oil Updates – crude retreats as investors pare bets on Middle East war risk after sharp rally

Oil Updates – crude retreats as investors pare bets on Middle East war risk after sharp rally
Updated 48 min 50 sec ago
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Oil Updates – crude retreats as investors pare bets on Middle East war risk after sharp rally

Oil Updates – crude retreats as investors pare bets on Middle East war risk after sharp rally
  • Brent, WTI down 1.5 percent
  • Concern over potential oil supply disruption eases
  • China ‘fully confident’ it will meet full-year economic targets

SINGAPORE: Oil prices fell more than $1 a barrel on Tuesday as traders took profits from a rally in the previous session that lifted the market to its highest level in over a month on fears the Middle East could be on the brink of a region-wide war.

Brent crude futures fell $1.31, or 1.6 percent, to $79.62 per barrel at around 9:00 a.m. Saudi time. US West Texas Intermediate futures fell $1.29, or 1.7 percent, to $75.85 a barrel.

Both contracts rose more than 3 percent on Monday to their highest levels since late August, adding to last week’s rally of 8 percent, the biggest weekly gain in over a year, on concerns that escalating hostilities could disrupt oil supply from the Middle East.

Fighting in the region intensified after Iran-backed Hezbollah fired rockets at Israel’s third-largest city, Haifa, and Israel looked poised to expand its offensive into Lebanon, a year after the Hamas attack that sparked Israel’s ongoing war in Gaza.

“The geopolitical tensions in the Middle East rock on, but there has been some paring of exposure lately on some expectations that any disruptions to energy supplies may be more measured,” said Yeap Jun Rong, market strategist at IG.

“Of course, more clarity still awaits on how Israel will retaliate toward Iran, and we may expect prices to remain supported amid the pricing of geopolitical risks.”

The oil price rally began after Iran launched a missile barrage on Israel on Oct. 1. Israel has sworn to retaliate and is weighing its options, with Iran’s oil facilities considered a possible target.

However, some analysts said an attack on Iranian oil infrastructure is unlikely and warned oil prices could face considerable downward pressure if Israel focuses on any other target.

Even if an attack targets Iranian oil facilities, there is 7 million barrels per day of spare supply capacity within OPEC to make up for the loss of its oil output, ANZ Bank analysts noted on Friday.

Developments in the Middle East will also do little to change the oil demand outlook, which continues to look sombre, said Phillip Nova analyst Priyanka Sachdeva, adding the market was awaiting US inflation data on Thursday for a view on the world’s biggest economy.

While investors have been concerned about slow growth dampening fuel demand in China, the country’s National Development and Reform Commission said on Tuesday it was fully confident of achieving its full-year economic targets.

In the US, Hurricane Milton intensified into a Category 5 storm on its way to Florida after forcing at least one oil and gas platform in the Gulf of Mexico to shut on Monday.

Traders will be also looking out for the latest US crude oil inventory data, with analysts expecting stocks to rise by 1.9 million barrels in the week ended Oct. 4, according to a preliminary Reuters poll.

The American Petroleum Institute is due to post its tally of US stockpiles at 11:30 p.m. Saudi time on Tuesday, followed by the official tally from the Energy Information Administration at 5:30 p.m. Saudi time on Wednesday. 


Lucid beats quarterly deliveries estimate as price discounts boost demand

Lucid beats quarterly deliveries estimate as price discounts boost demand
Updated 56 min 10 sec ago
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Lucid beats quarterly deliveries estimate as price discounts boost demand

Lucid beats quarterly deliveries estimate as price discounts boost demand

BENGALURU: Lucid Group beat market expectations for third-quarter deliveries on Monday, as discounts and cheaper financing options for its luxury electric vehicles boosted demand in an uncertain economy.

Shares of the company rose around 1.5 percent.

The company, majority owned by the Saudi Public Investment Fund, handed over 2,781 vehicles in the quarter ended Sept. 30, compared with estimates of 2,242 according to 8 analysts polled by Visible Alpha.

Consumer appetite for electric vehicles in the US has been weakening due to high interest rates and the availability of cheaper hybrid alternatives.

EV firms such as Tesla, Rivian and Lucid have slashed prices and have been offering incentives like cheaper financing options to woo customers.

Lucid reported a sequential drop in production, manufacturing 1,805 vehicles in the third quarter, compared with 2,110 vehicles in the previous three months.

Andres Sheppard, senior equity analyst at Cantor Fitzgerald, attributes the lower production number to the company clearing its existing inventory.

Lucid is also betting on its Gravity SUV, which is expected to go into production later this year, to drive growth but will compete with Tesla’s Model X and Rivian’s flagship R1 models.

Sheppard added that he expects Lucid’s cost margins to compress once they begin ramping up the production of Gravity.

“We think Lucid will have its work cut out in Q4 to hit its 2024 production guidance of 9,000 units,” said Garrett Nelson, senior equity analyst at CFRA Research.

Rivian cut its annual production forecast last week and missed estimates for quarterly deliveries, as weak demand was further compounded by a parts shortage, while market giant Tesla also reported disappointing delivery data.

The company said in August it received up to $1.5 billion in cash from PIF, as it looks to ramp up production and introduce a mid-size car expected to roll out in late 2026.


World Bank looking to free up emergency funds for Lebanon

World Bank looking to free up emergency funds for Lebanon
Updated 07 October 2024
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World Bank looking to free up emergency funds for Lebanon

World Bank looking to free up emergency funds for Lebanon

WASHINGTON: The World Bank is looking to free up emergency funds for Lebanon, potentially including up to $100 million through the use of special clauses in existing loan deals, its managing director of operations told Reuters.

The Washington-based development lender currently has $1.65 billion in loans to the country including a $250 million loan approved this week to help connect dispersed renewable energy projects in the country.

Amid fighting across southern Lebanon, the bank was currently discussing ways in which it could help support the economy, including through the use of so-called Contingent Emergency Response Component clauses.

“We can use our existing portfolio and free up some money for really critical, short-term liquidity needs,” Anna Bjerde said.

CERCs are present in around 600 of the bank’s existing projects, globally, and allow it to redirect funds that have yet to be disbursed, if requested to by a government, for example after a health or natural disaster, or during conflict.

Lebanon has yet to make such a request, Bjerde said.

After a year of exchanges of fire between Hezbollah and Israel mostly limited to the frontier region, the conflict has significantly escalated in Lebanon.

Lebanon’s government could choose to use an existing social protection program that was put in place during the COVID-19 pandemic that allows for financial support to be sent to individuals, Bjerde said.

“It has the benefit of being totally digital so you can reach people, plus it can be verified a bit... so we will also probably use that to top up the social safety net for those that are particularly affected.”

Up to 1 million people have been internally displaced in the country, she added: “So it’s important we focus on that.”

Lebanon’s Finance Ministry and Economy Ministry did not immediately respond when asked for comment.