Aramco enhances cooperation with China’s Rongsheng, Hengli in new deals

According to a press release, these agreements underscore Aramco’s ongoing dedication to bolstering China’s long-term energy security and development while enhancing its strategic relationship with key regional partners. File
According to a press release, these agreements underscore Aramco’s ongoing dedication to bolstering China’s long-term energy security and development while enhancing its strategic relationship with key regional partners. File
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Updated 11 September 2024
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Aramco enhances cooperation with China’s Rongsheng, Hengli in new deals

Aramco enhances cooperation with China’s Rongsheng, Hengli in new deals

RIYADH: Saudi oil giant Aramco has unveiled new agreements with its Chinese partners, Rongsheng Petrochemical Co. and Hengli Group Co., during Chinese Premier Li Qiang’s visit to the Kingdom.

According to a press release, these agreements underscore Aramco’s ongoing dedication to bolstering China’s long-term energy security and development while enhancing its strategic relationship with key regional partners.

The agreements include preliminary documentation for a development framework agreement with Rongsheng and a strategic cooperation agreement with Hengli Group. These collaborations occur as Saudi Arabia and China deepen their engagement in the energy and petrochemical sectors, reinforcing Aramco’s role in advancing mutual objectives in these critical industries.

The development framework agreement with Rongsheng involves the potential joint expansion of the Saudi Aramco Jubail Refinery Co. facilities. This follows an announcement in April 2024, when Aramco and Rongsheng signed a cooperation framework agreement that set the stage for a joint venture in SASREF and significant investments in the Saudi and Chinese petrochemical sectors.

The joint venture contemplates Rongsheng acquiring a 50 percent stake in SASREF, while Aramco would potentially acquire a 50 percent stake in Rongsheng’s affiliate, Ningbo Zhongjin Petrochemical Co. Additionally, the agreement includes participation in the expansion of ZJPC’s facilities and the development of a liquids-to-chemicals project at SASREF, representing a substantial enhancement in the petrochemical capabilities of both companies.

The strategic cooperation agreement advances discussions related to Aramco’s potential acquisition of a 10 percent stake in Hengli Petrochemical Co., contingent on due diligence and regulatory approvals.

This agreement follows a memorandum of understanding signed in April this year, which outlined the proposed transaction and set the foundation for further collaboration between Aramco and Hengli in the petrochemical sector.

Aramco’s Downstream President Mohammed Y. Al-Qahtani, emphasized the importance of these agreements, stating that they affirm the company’s belief in the long-term mutual benefits of close collaboration with Chinese partners.

“China is an important country in our global downstream growth strategy, and we look forward to building on a relationship that spans more than three decades to unlock new opportunities in this crucial market,” he said.

Al-Qahtani further said that these agreements reflect a shared intention to strengthen relationships in key sectors, advance Aramco’s downstream goals, and contribute to the vibrant energy and petrochemicals sectors in both China and Saudi Arabia.

These agreements are part of Aramco’s broader strategy to cement its position as a key player in the energy landscape while contributing to Saudi Arabia’s economic development. By fostering closer collaboration with Chinese partners and exploring innovative technological solutions, Aramco is positioning itself to meet the evolving energy needs of both nations.

The company’s relationship with China spans over three decades, and these latest agreements mark a continuation of this longstanding partnership, with a focus on future growth and innovation.


Saudi Arabia unveils initiatives to enhance financial sector talent 

Saudi Arabia unveils initiatives to enhance financial sector talent 
Updated 21 sec ago
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Saudi Arabia unveils initiatives to enhance financial sector talent 

Saudi Arabia unveils initiatives to enhance financial sector talent 

RIYADH: Saudi Arabia announced a range of initiatives aimed at enhancing its financial sector through talent development, leadership training, and global partnerships during a dedicated event in Riyadh. 

These measures, announced at the Financial Academy Forum 2024, reflect the Kingdom’s commitment to strengthening its economic landscape in alignment with Vision 2030 goals. 

Key highlights included a partnership with the Chartered Financial Analyst Institute to boost the number of CFA certification holders in Saudi Arabia and an accreditation from the Chartered Insurance Institute marking the Financial Academy as the first professional development center of its kind in the Kingdom. 

These collaborations aim to raise the standards of financial expertise and position the Kingdom as a hub for global talent in the industry. 

“The financial sector is undergoing rapid transformation, with new products, instruments, and channels. To keep pace, we must invest in the development of human capital,” said Mohammed El-Kuwaiz, chairman of the Capital Market Authority, during his inaugural address. 

He emphasized that these initiatives are critical for fostering a skilled workforce and maintaining the Kingdom’s competitive edge in the financial industry. 

The forum also unveiled a partnership with the Sutardja Center for Entrepreneurship and Technology at the University of California, Berkeley. 

This initiative will provide Saudi professionals with access to entrepreneurship programs and training, helping them develop skills in financial innovation. 

This collaboration is part of the Kingdom’s ongoing efforts to promote a culture of entrepreneurship and technological growth in the financial sector. 

Enhancing leadership 

One of the cornerstone initiatives announced at the forum was the launch of a leadership program in collaboration with the Swiss Re Institute. This program, the first of its kind in the region, aims to qualify 150 insurance leaders through the Emerging Insurance Leaders Program. 

The initiative will focus on executive training and leadership development, providing specialized programs that address the unique challenges of the insurance sector. 

El-Kuwaiz highlighted the importance of leadership in the financial industry, saying: “The path ahead remains long, whether it be in developing our sector or our economy. This is why events like this are essential in upskilling and training for future growth.” 

He emphasized that strong leadership is essential to navigating the complexities of a rapidly evolving global financial market. 

The forum also saw the launch of the “Executive Financial Managers of the 21st Century” initiative, a program that aims to train 60 such professionals in its first year. 

Launched in collaboration with New York University, Paris School of Business, and the CFA Institute, it is designed to elevate the capabilities of financial executives in Saudi Arabia, ensuring they are equipped to handle the growing complexities of the financial landscape. 

Financial Academy’s impact 

Since its establishment in 2020, the Financial Academy has played a critical role in the development of Saudi Arabia’s professionals in the sector. 

To date, the academy has trained over 50,000 individuals across the industry, offering 49 qualifying programs and exams, El-Kuwaiz revealed during the forum. 

These efforts have resulted in the certification of nearly 90,000 professionals, positioning the institute as a central pillar in the Kingdom’s financial infrastructure. 

In addition to its local impact, the Financial Academy has developed partnerships with over 40 leading educational institutions worldwide. 

These collaborations ensure that the academy’s curriculum and training programs meet international standards, providing Saudi financial professionals with globally recognized qualifications. 

El-Kuwaiz pointed to the academy’s ongoing evolution in response to the changing needs of the financial sector. 

“We are seeing a large degree of change within our financial institutions, whether it be new products, instruments, or channels, and their interconnectedness with other sectors,” he said, underscoring the need for continued innovation and upskilling within the industry. 

Role of technology 

A major theme of the forum was the integration of advanced technologies within the financial sector. 

Vice Minister of Finance Abdulmuhsen Al-Khalaf highlighted the pivotal role that technology, particularly artificial intelligence, plays in driving innovation and improving efficiency across the financial industry. 

“Technology is strongly useful in predicting both positive economic forecasts and potential shocks. By integrating advanced tech, we have significantly improved the accuracy of our predictions,” Al-Khalaf said. 

He noted that the Ministry of Finance has already begun incorporating AI and data management systems across its departments. These tools have proven essential in enhancing the accuracy of financial forecasting and streamlining decision-making processes. 

“Within the ministry, we have created AI units across different teams, particularly in expenditure prediction, which has allowed us to move beyond traditional economic modeling tools,” Al-Khalaf added. 

In addition to AI, the forum also emphasized the growing importance of cybersecurity within the financial sector. As institutions increasingly rely on digital infrastructure, the need for robust cybersecurity measures has become more critical than ever. 

Al-Khalaf highlighted the ministry’s ongoing efforts to strengthen its online defensive capabilities, ensuring that the Kingdom’s financial data remains secure in the face of evolving digital threats. 

Knowledge-based economy 

By investing in the development of its human capital and embracing cutting-edge technologies, Saudi Arabia is positioning itself as a leader in the global financial industry. 

As part of these efforts, the Kingdom is focused on building a knowledge-based economy that emphasizes innovation, entrepreneurship, and technological advancement. 

The partnerships announced at the forum, such as the collaboration with the University of California, Berkeley, are designed to support this vision by providing Saudi professionals with access to world-class expertise and training in entrepreneurship and finance. 

These initiatives are not only aimed at enhancing the skills of current financial professionals but also at preparing the next generation of leaders to drive the Kingdom’s financial sector forward. 

As the financial landscape continues to evolve, the need for skilled, forward-thinking professionals will be more critical than ever.


Gulf nations urged to modernize municipal operations, embrace smart city systems

Gulf nations urged to modernize municipal operations, embrace smart city systems
Updated 3 min 25 sec ago
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Gulf nations urged to modernize municipal operations, embrace smart city systems

Gulf nations urged to modernize municipal operations, embrace smart city systems

JEDDAH: Gulf countries should enhance municipal operations and adopt smart city systems, as highlighted during a regional conference in Riyadh.

The 12th Gulf Municipal Work Conference, hosted by the Ministry of Municipalities and Housing in partnership with the general secretariat of the Gulf Cooperation Council, focused on improving municipal work across the region from Oct 6-8, according to the Saudi Press Agency.

Under the patronage of Minister Majed Al-Hogail, the conference emphasized the importance of community involvement in urban planning to promote sustainability in Gulf cities. It also called for adopting smart city technologies and geographic information systems, drawing on successful GCC experiences in artificial intelligence and data utilization.

Speaking during the opening remarks of the first Global Smart City Forum, held in the Saudi capital early this year, Al-Hogail stressed the significance of Vision 2030 as a transformative journey for the Kingdom, emphasizing its role in instilling hope and ambition among citizens and outlining its strategy for urban development.

He added that Saudi Arabia aims to have at least 10 of its cities among the top 50 global municipalities by achieving the factors of governance, sustainability, and interaction with the population, meeting their aspirations, and attaining high prosperity for them. 

The recent Riyadh conference served as a platform for dialogue and knowledge exchange on best practices and innovative solutions for municipal development in the region, promoting collaborative teamwork among committees and technical teams dedicated to enhancing quality of life, as reported by the SPA.

Over the three days, the forum hosted more than 15 discussion sessions and workshops, during which specialists shed light on the latest scientific and practical developments related to the development and sustainability of municipal work in the Gulf region, as well as the significant challenges facing the civic services system in the cities of the area.

The discussions featured prominent government officials, private sector leaders, and specialists in municipal services from across the GCC. A platform was provided for knowledge-sharing, exploring cutting-edge solutions, and fostering collaboration to improve municipal systems and enhance the quality of life in the region.

The sessions also explored expected ambitions and innovative solutions to tackle challenges within the sector. Experts discussed eco-conscious municipal economics and city management based on best practices for sustainability. Additionally, the potential risks posed by climate change to Gulf cities were examined, along with strategies to mitigate these impacts.

The conference featured key research and working papers that addressed pressing challenges and highlighted emerging trends in the development and sustainability of municipal services.

The event focused on strengthening partnerships in the municipal sector among GCC countries and emphasized the role of community participation in promoting sustainability within the industry.

It also underscored the importance of developing human resource skills and their contribution to achieving sustainable municipal operations while showcasing modern models and strategies for human resource development.

The conference proposed inviting prominent international municipal experts from outside the GCC to participate as keynote speakers and develop training programs for human resources in the sector to achieve sustainability in municipal work environments.

The gathering addressed the educational and training programs required to ensure sustainability in the municipal sector and highlight successful approaches to qualifying and advancing human capital.

During the conference, the winners of the fifth edition of the GCC Municipal Work Award were honored. The Saudi Ministry of Municipalities and Housing received first place for its project focused on the impact of community involvement in addressing visual distortion. It also secured third place for the “Initiative Based on You” and fourth place for the community partnership undertaking within the municipal work framework, titled “Contributing Community Initiative.”


Saudi Arabia’s Eastern Province unveils $3bn tourism projects

Saudi Arabia’s Eastern Province unveils $3bn tourism projects
Updated 14 min 19 sec ago
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Saudi Arabia’s Eastern Province unveils $3bn tourism projects

Saudi Arabia’s Eastern Province unveils $3bn tourism projects

RIYADH: Saudi Arabia’s Eastern Province is set for a significant tourism expansion following the approval of 17 new projects valued at over SR12.7 billion ($3.38 billion) as part of the Kingdom’s dedicated fund portfolio.

According to the Saudi Press Agency, these developments will lead to the creation of more than 2,200 hotel rooms, representing a major boost for the region’s hospitality sector.

Additionally, another 10 projects have been approved, totaling over SR10.6 billion, which will contribute an extra 1,400 hotel rooms. These initiatives are part of the ongoing efforts under the Saudi Tourism Development Fund to enhance the region’s tourism infrastructure and align with Saudi Arabia’s Vision 2030 goals.

This announcement was made during a meeting between Saudi Minister of Tourism Ahmed Al-Khateeb and a group of investors and entrepreneurs from the Eastern Province. Badr Al-Reziza, chairman of the Eastern Province Chamber of Commerce, was also present, highlighting the investment opportunities in the tourism sector.

Al-Khateeb emphasized the Eastern Province’s status as a premier tourist destination, showcasing its diverse geography and historical significance.

“The region features extensive coastlines along the Arabian Gulf, providing unique opportunities for beach tourism,” he stated. He also noted the rich heritage of the province, which enhances its appeal to both local and international visitors.

During the meeting, Al-Khateeb reiterated the Ministry of Tourism’s commitment to strengthening partnerships with the private sector, which he identified as a primary driver of tourism development in Saudi Arabia.

He highlighted the importance of encouraging investments and facilitating investor support, including the Tourism Investment Enablers Program, which aims to reduce government fees in the hospitality sector by 22 percent. The suspension of municipal fees on hospitality facilities was also mentioned as a measure to stimulate further investment.

Al-Reziza echoed these sentiments, noting the Eastern Province’s prominence as a tourism destination. He pointed out the variety of activities and attractions available, which include cultural, heritage, and coastal experiences, along with family-friendly parks and natural resources. He stressed that tourism is a vital driver of local development, significantly improving the quality of life for residents.

The Eastern Province is already witnessing a surge in tourism, with recent statistics indicating that over 19 million tourists, both domestic and international, visited the region in 2023—a substantial increase from previous years. Tourist spending in the area reached SR27.8 billion, reflecting a 27 percent rise compared to the prior year.

Saudi Arabia’s tourism sector is flourishing, having seen a 656 percent increase since 2019, with 17.5 million international visitors projected for 2024, according to the Ministry of Tourism. This growth underscores the Kingdom’s efforts to enhance its tourism offerings and attract global travelers.

A key factor in this expansion was the introduction of the first tourism visa in 2019, which significantly boosted international tourism. Under Vision 2030, Saudi Arabia aims to welcome 100 million tourists by 2030—a target already achieved seven years ahead of schedule in 2023.

On a national level, tourism has become one of the largest sources of employment for citizens, with approximately 900,000 nationals currently working in the sector.


Saudi Arabia’s Qassim region’s untapped mineral wealth exceeds $32bn

Saudi Arabia’s Qassim region’s untapped mineral wealth exceeds $32bn
Updated 57 min 36 sec ago
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Saudi Arabia’s Qassim region’s untapped mineral wealth exceeds $32bn

Saudi Arabia’s Qassim region’s untapped mineral wealth exceeds $32bn
  • Total value of Qassim’s resources is estimated at SR122.3 billion
  • Region hosts 35 mineralized belts, including gold, copper, lead, nickel, and zinc

RIYADH: Qassim region’s SR122 billion ($32.5 billion) in untapped mineral wealth means it will become a key contributor to Saudi Arabia’s Vision 2030 plan, according to a Ministry of Industry and Mineral Resources spokesman.

Jarrah bin Mohammed Al-Jarrah posted on X that Qassim holds high-quality mineral ores, including lead, tin, granite, and tungsten.

The strategic focus on economic diversification has placed the mining sector at the forefront of national development plans, with the Kingdom’s mineral wealth valued at an estimated SR9.4 trillion.

The total value of Qassim’s resources is estimated at SR122.3 billion, with gold accounting for SR87.7 billion, bauxite at SR24.6 billion, zinc at SR4.7 billion, copper at SR4 billion, and silver at SR1.4 billion.

Al-Jarrah highlighted that the region, which is located in the center of Saudi Arabia approximately 400 km northwest of Riyadh, hosts 35 mineralized belts, including 16 for gold, 15 for copper and lead, three for nickel, and one for zinc.

Qassim also has eight phosphate reserve sites and a mining complex for bauxite ore, as well as 32 mining complexes, designated for construction materials, including 17 for gravel, nine for sand, and six for fill materials.

The spokesman highlighted that Qassim’s industrial sector is robust and diverse, housing 580 factories.

Around 84 percent of these facilities are located in the region’s main cities including Buraidah, Unaizah, Al-Rass, and Al-Badayea.

Key industries include food and beverage production, basic goods, pharmaceuticals, and rubber and plastic manufacturing.

The region’s industrial workforce totals 35,000 employees, with females making up over 15 percent, reflecting ongoing efforts to empower women in the sector.

The Minister of Industry and Mineral Resources, Bandar Alkhorayef, is visiting Qassim on Oct. 9 to inaugurate several projects in industrial cities under the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON.

He will also attend the launch of the Youth of Industry forum, aimed at developing national skills in the industrial sector through specialized workshops and career counseling.

The visit will include the launch of initiatives to enhance human capabilities in the industrial and mining sectors, alongside meetings with investors during factory visits.

Saudi Arabia is rich in minerals essential for various global industries, transforming the Kingdom into a leading exporter of diverse energy types, shifting away from its traditional role as an oil producer.

It has strong potential to produce minerals essential for energy transition, such as aluminum, copper, rare earth elements, and resources needed for global agriculture.


Foreign investments surge in Saudi stocks, reaching $1.02bn in September

Foreign investments surge in Saudi stocks, reaching $1.02bn in September
Updated 09 October 2024
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Foreign investments surge in Saudi stocks, reaching $1.02bn in September

Foreign investments surge in Saudi stocks, reaching $1.02bn in September

RIYADH: Foreign investors made net purchases of approximately SR3.84 billion ($1.02 billion) in stocks on the Saudi Exchange in September, marking a 947 percent increase year on year, according to official data.

The latest monthly report from Tadawul revealed that net foreign purchases in September 2023 amounted to SR366 million.

Attracting foreign investment is a key objective under Vision 2030, as Saudi Arabia seeks to position itself as a global business hub. A recent report from Statista highlighted the growth of the Saudi market, noting that the Kingdom’s stock exchange, with a market capitalization of $2.93 trillion, ranks as the third largest in the Europe, Middle East, and Africa region.

According to Tadawul, net foreign purchases for the first nine months of this year totaled SR16.4 billion, reflecting a 36 percent increase from the previous year. Qualified foreign investors led these international purchases, contributing SR3.78 billion in September, while foreign residents added SR76.62 million to their holdings.

The total value of foreign ownership in Saudi stocks reached SR414.9 billion in September, a year-on-year increase of 13.39 percent. In comparison, Saudi individuals held stocks valued at SR946.32 billion in the main market, up 18.71 percent from the same period last year. Institutional investors reported stock holdings of SR8.66 trillion by the end of September, representing a 15.01 percent decline year on year.

Gulf Cooperation Council investors owned stocks worth SR77.72 billion in the Kingdom’s main market by the end of September, marking a 36.85 percent increase compared to the previous year.

Parallel market insights

The report also highlighted that foreign ownership in Saudi Arabia’s parallel market, Nomu, reached SR914.07 million by the end of September, up 67.54 percent year on year. In this market, both individual and institutional Saudi investors held stocks valued at SR54.33 billion in September, reflecting a 16.73 percent rise from the previous year. Stocks held by GCC investors in the parallel market surged by 26.85 percent year on year, totaling SR247.44 million by the end of September.