Saudi Arabia part of China trial of yuan digital currency payments
Saudi Arabia part of China trial of yuan digital currency payments/node/2574848/business-economy
Saudi Arabia part of China trial of yuan digital currency payments
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. (AFP)
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 13 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.
Saudi Arabia opens 22 gravel, sand quarry sites for bidding
Updated 21 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has launched a competitive bidding process for 22 gravel and sand quarry sites to ensure a steady domestic supply of essential materials to support the country’s expanding construction sector.
The Ministry of Industry and Mineral Resources announced on Sunday that the sites are located in the Eastern Province and the Tabuk region.
The ministry stated that 10 of these sites are located in the Eastern Province, including five gravel licenses at the Al-Masnah Crushers Complex northeast of Hafar Al-Batin and five ordinary sand licenses at the Northwest Salwa Complex. Additionally, 12 gravel licenses are available at the South Wadi Amq Complex, situated southeast of Haql in the Tabuk region.
This initiative is part of Saudi Arabia’s broader plan to develop its mining sector into a third pillar of its industrial base, alongside oil and petrochemicals.
The Kingdom is home to more than 5,300 mineral sites, estimated to be worth approximately SR5 trillion ($1.33 trillion), and the Ministry of Industry and Mineral Resources is focused on tapping into these resources to drive economic growth.
To this end, the government has launched the Accelerated Exploration Program, which aims to effectively harness the Kingdom’s mineral wealth and support the development of the mining industry. This initiative aligns with Saudi Vision 2030 and the National Industrial Development and Logistics Program.
Applications for the quarry site licenses will be accepted from Dec. 10-19. Interested investors can visit the “Taadeen” platform for more details.
The competition will unfold in four stages: meeting qualification requirements, announcing qualified competitors, bidding on the sites, and revealing the winning bidders. This process is designed to ensure transparency and uphold high standards within the mining sector’s investment environment.
Last month, the ministry awarded 11 mining exploration permits to local and international companies for six exploration sites. These sites, covering a total area of 850 sq. km in Riyadh, Makkah, and Asir, were granted through a competitive licensing process aimed at strengthening the country's mineral sector.
The competition for exploration rights concluded with one national company and five alliances comprising 10 local and international firms securing permits. The ministry emphasized that these efforts are crucial for maximizing the value of Saudi Arabia’s mineral resources and positioning mining as a key pillar of the Kingdom’s economic future.
Retail space demand in Riyadh drives 4.2% rent increase in Q3: Knight Frank
Updated 8 min 19 sec ago
Nirmal Narayanan
RIYADH: The retail market in Riyadh saw a five-percentage-point increase in occupancy rates, reaching 92 percent by the end of the third quarter, according to a new report by Knight Frank.
The report also highlighted a 4.2 percent year-on-year rise in average rental rates, which reached SR2,845 ($757.24) per sq. meter.
This increase reflects the city’s growing appeal as part of Saudi Arabia’s Vision 2030, aiming to transform Riyadh into a leading business and tourist hub.
“Over the last 12 months, the retail market in Riyadh has experienced a steady rise in rental rates, particularly in well-located regional and super-regional malls,” Knight Frank stated.
The firm pointed to prime locations like Riyadh Park and Al Nakheel Mall, which have maintained near-full occupancy thanks to their strategic positions, diverse tenant mix, and entertainment offerings.
Meanwhile, the supply of retail space in Riyadh grew with the addition of 22,500 sq. meters, bringing the city’s total retail space to 4.3 million square meters by 2026, a 21 percent increase.
“Riyadh’s retail market is growing along key corridors like King Fahd Road, Olaya Street, and northern districts, driven by urban expansion and rising consumer spending,” Knight Frank said.
In comparison, Jeddah’s retail market saw a more modest increase in rental rates of 1.2 percent, reaching SR2,525 per sq. meter. However, occupancy in the city declined slightly by 1 percentage point to 86 percent.
The report noted that Jeddah’s retail market is undergoing shifts influenced by changing consumer preferences and an increased supply of retail space.
Jeddah’s retail stock is expected to grow by 475,000 sq. meters by 2026, bringing the total to 3.3 million sq. Meters.
In Dammam, occupancy remained stable at 90 percent, but rental rates saw a slight decline of 0.7 percent, reaching SR2,285 per sq. meter. Despite this, demand for high-traffic locations remains steady.
Retail stock in Dammam stands at 1.28 million sq. meters and is expected to reach 1.3 million sq. meters by 2026.
“Dammam and Al Khobar are seeing a rise in diverse entertainment options, reflecting the Kingdom’s goal to create engaging, family-friendly retail that incorporates both leisure and community interaction,” Knight Frank added.
Saudi Aramco slashes January oil prices for Asian buyers
Updated 36 min 40 sec ago
Arab News
RIYADH: Saudi Aramco has reduced its January 2025 pricing for Arab Light crude oil for Asian buyers, according to the latest price list released by the state-owned oil giant. The official selling price for Arab Light crude was cut by 80 cents, bringing it to $0.90 per barrel above the regional benchmark.
Similarly, the OSPs for Arab Extra Light and Super Light grades were also reduced by 60 cents per barrel and 70 cents per barrel respectively for January, while the OSPs for Arab Medium and Heavy grades saw cuts of 70 cents per barrel.
For North America, Aramco set the January OSP for its flagship Arab Light crude at $3.80 per barrel above the Argus Sour Crude Index, according to an official statement.
Aramco produces five grades of crude oil: Super Light, Arab Light, Arab Extra Light, Arab Medium, and Arab Heavy.
These grades are distinguished by their density: Super Light has a density of more than 40, Arab Extra Light ranges between 36 and 40, Arab Light between 32 and 36, Arab Medium between 29 and 32, and Arab Heavy has a density of less than 29.
The global oil market has been under pressure in recent days. For the week, Brent was on track to fall by more than 2 percent, while West Texas Intermediate was on course for a roughly 1 percent drop.
Last week, the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, pushed back the start of oil output rises by three months until April and extended the full unwinding of cuts by a year until the end of 2026.
Weak global oil demand, and the prospect of OPEC+ ramping up production as soon as prices rise, have weighed on prices, said Bob Yawger, director of energy futures at Mizuho in New York.
Bank of America forecasts that increasing oil surpluses will drive the price of Brent to average $65 a barrel in 2025, while expecting oil demand growth to rebound to 1 million barrels per day next year, the bank said in a note on Friday.
HSBC, meanwhile, now expects a smaller oil market surplus of 0.2 million bpd, from 0.5 million bpd previously, it said in a note.
Brent has largely stayed in a tight range of $70-$75 per barrel in the past month, as investors weighed weak demand signals in China and heightened geopolitical risk in the Middle East.
Saudi Arabia’s non-oil sector posts 4.8% growth in Q3: GASTAT
Saudi Arabia’s real gross domestic product grew by 2.8 percent year on year in the third quarter
At current prices, the Kingdom’s GDP reached SR1.00 trillion ($270 billion) in Q3
Updated 08 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s non-oil activities expanded by 4.8 percent year on year in the third quarter of 2024, fueled by growth in the wholesale and retail trade, and restaurant and hotel sectors, official data showed.
According to the General Authority for Statistics, wholesale and retail trade, along with restaurant and hotel activities, grew by 5.8 percent in the third quarter compared to the same period in 2023.
Additionally, activities in the financial, insurance, and business services sectors recorded a 5.7 percent increase year on year during the same period.
Bolstering the non-oil sector is essential for Saudi Arabia as it pursues economic diversification in line with the objectives of Vision 2030.
Last month, speaking at the World Investment Conference, Saudi Arabia’s Minister of Economy and Planning Faisal Al-Ibrahim noted that non-oil activities now contribute 52 percent to the Kingdom’s gross domestic product.
The latest GASTAT report also highlighted that construction activities rose by 4.6 percent in the third quarter, while the transport, storage, and communication sector expanded by 4.5 percent during the same period.
In quarter-on-quarter terms, non-oil activities grew by 0.7 percent in the third quarter.
The report added that Saudi Arabia’s real gross domestic product grew by 2.8 percent year on year in the third quarter. Quarter-on-quarter, the GDP rose by 0.7 percent.
At current prices, the Kingdom’s GDP reached SR1.00 trillion ($270 billion) during the period, according to GASTAT.
“Crude oil and natural gas activities achieved the highest contribution to the GDP at 22.8 percent, followed by government activities at 16.1 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” said GASTAT.
Government activities saw a 3.1 percent year-on-year growth in the third quarter, though they contracted by 0.3 percent compared to the previous quarter.
Saudi Arabia’s oil activities grew modestly, rising 0.5 percent year-on-year in the third quarter and 1.2 percent compared to the previous quarter.
Meanwhile, government final consumption expenditure increased by 6.2 percent year on year but declined by 1.8 percent quarter-on-quarter.
Gross fixed capital formation — a measure of investment in the economy — rose by 3.2 percent year on year in the third quarter and 0.9 percent compared to the previous quarter.
Saudi Arabia’s economic diversification initiatives under Vision 2030 are increasingly reflected in the robust performance of non-oil sectors, positioning the Kingdom for sustainable long-term growth.
Drones drive innovation and efficiency in Vision 2030
Updated 07 December 2024
MOHAMMED AL-KINANI
JEDDAH: Drone technology is emerging as a central pillar of Saudi Arabia’s push toward economic diversification, as the Kingdom leverages its Vision 2030 initiative to foster innovation across key industries.
From construction and oil to logistics and agriculture, drones are not only enhancing operational efficiency but are also central to achieving sustainability goals.
With strong government backing, the drone market in Saudi Arabia is poised for significant growth. Strategic investments and regulatory reforms are providing a conducive environment for drone technology, positioning the Kingdom as a regional leader in aerial innovation.
Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones, a leader in Middle Eastern drone operations, emphasized that the unmanned aircraft are essential for Vision 2030, particularly in revitalizing industries, boosting operational efficiency and meeting sustainability objectives.
“The Saudi government’s commitment to technology adoption and strategic investments is facilitating drone integration across various sectors, creating new opportunities and innovations,” he said.
The drone sector is growing rapidly, supported by regulatory advancements and increasing demand from multiple industries. He cited a MarketsandMarkets report forecasting that the Middle East drone market would reach $5.54 billion by 2025, with Saudi Arabia driving much of this growth.
The report attributes this to sectors like construction, oil and gas, agriculture and logistics, which are leveraging drone technology to enhance productivity and reduce costs.
Drone impact on key sectors
In construction, drones are revolutionizing project management and site inspections. Bou Rached said the Saudi construction market, valued at $70.33 billion in 2024, was set to grow to $91.36 billion by 2029, with drones playing a key role in driving efficiency.
In the oil and gas sector, drones are used for inspection, monitoring and maintenance, helping reduce costs and improve safety by minimizing human intervention in hazardous environments.
Rabih Bou Rached, founder and CEO of Dubai-based Falcon Eye Drones. (Supplied)
“According to a report by PwC, drones can reduce inspection costs by up to 85 percent and enhance safety by minimizing human intervention in hazardous environments. Drones provide an effective solution for inspecting gas flares, monitoring pipelines, and detecting leaks, ensuring operational continuity, and improving safety,” Bou Rached added.
Despite the rapid growth, regulatory challenges persist. Bou Rached pointed out that while Saudi Arabia has made significant strides in developing drone-friendly regulations, there are still areas for improvement.
The General Authority of Civil Aviation is revising regulations to balance safety and innovation, with new efforts to streamline licensing and create clearer guidelines for commercial drone operations.
“As with most of the Middle East though, there are focus areas for development. The existing regulations concerning operational limits, airspace usage, and licensing requirements are under scrutiny by the powers that be, to allow for improved usage and development,” he said.
He stressed regulatory clarity was essential for maximizing drone capabilities across sectors: “Recent efforts include streamlined licensing processes and clearer guidelines for commercial drone operations.”
Job creation and future prospects
The integration of drones is expected to spur job creation and skills development, particularly in fields such as manufacturing, maintenance and data analysis.
Bou Rached foresees increased educational opportunities as universities offer programs focused on drone technology, robotics and artificial intelligence: “This technology is poised to be a catalyst for job creation and skills development,” he said.
Alhussain Al-Hazmi, CEO of Riyadh-based Lensic Drone Solutions, echoed Bou Rached’s optimism and highlighted the rapid adoption of drones across various sectors in Saudi Arabia.
Alhussain Alhazmi, CEO of Lensic Drone Solutions. (Supplied)
“Drone technology is playing a vital role in helping Saudi Arabia achieve its Vision 2030 goals, particularly in driving economic diversification and enhancing efficiency across key sectors,” Al-Hazmi said.
He noted the success of drones in defense, particularly for real-time surveillance and reducing human risk in dangerous environments.
The CEO also highlighted their growing use in logistics, citing a pilotless air taxi initiative during the 2024 Hajj to manage congestion and improve transport efficiency. “The logistics sector is also benefiting from drone technology. During the 2024 Hajj, the government successfully trialed pilotless air taxis to manage congestion and transport people more efficiently,” he said.
In the mining sector, Al-Hazmi’s company collaborates with Royal Road Arabia to enhance mineral exploration using advanced drones. These drones are equipped with hyperspectral scanners and other technologies to gather high-precision data, aiding in the exploration of copper and gold mines.
“These results demonstrate the power of drone technology in enhancing the discovery and exploration of valuable mineral resources,” he said.
Regulatory and infrastructure challenges
Despite the excitement surrounding drone technology, regulatory hurdles persist. Alhazmi pointed out that the approval process for drone operations, especially for advanced or heavy drones, can be cumbersome. The GACA restricts drones heavier than 24.99 kg, limiting their use to government projects, which restricts the private sector’s potential.
However, Al-Hazmi sees promise in the government’s ongoing efforts to streamline regulatory frameworks and foster collaboration with the private sector. “Clearer guidelines and faster approval processes are being developed to help companies operate more efficiently,” he said. “Collaboration between the government and the private sector is being actively encouraged to develop smoother, more efficient regulations that better meet industry needs.”
Both Bou Rached and Al-Hazmi agreed that drone technology holds immense potential in helping Saudi Arabia achieve its economic and technological goals.
As the industry matures, drones are expected to become integral to sectors such as public safety, urban planning, and energy. The integration of artificial intelligence and automation will further enhance the capabilities of drones, enabling them to handle data analysis, predictive maintenance, and autonomous operations.
“In the energy sector, drones inspect pipelines, power lines, and conduct environmental assessments, enhancing safety and efficiency,” said Al-Hazmi. “Drones assist farmers by monitoring crop health, optimizing water use, and promoting sustainable farming practices. Drones will also play a critical role in the development of Saudi Arabia’s smart cities, including NEOM, Qiddiya, and the Giga projects on the Red Sea.”
A bright future for drone technology
As Saudi Arabia moves toward its Vision 2030 objectives, drones are becoming a driving force for innovation and efficiency across key sectors. While challenges remain, the Kingdom’s commitment to developing a drone-friendly regulatory environment and fostering private-sector collaboration signals a promising future for the industry.
Both Bou Rached and Alhazmi are confident Saudi Arabia’s drone industry is poised for rapid growth, with the potential to lead not only in the Middle East but globally.
“The next decade could see drones becoming an integral part of key industries and economic evolution in Saudi Arabia,” Bou Rached said.
With continued regulatory reforms and strategic investments, Saudi Arabia is well-positioned to harness the full potential of drone technology as a key enabler of Vision 2030’s economic transformation.
