Saudi Arabia’s efforts contribute to an 84% increase in industrial licenses granted.

News Saudi Arabia’s efforts contribute to an 84% increase in industrial licenses granted. In the third quarter, Saudi Arabia saw a significant surge of 83.9 percent in the issuance of 412 new industrial licenses compared to the same period in the previous year, as revealed by the latest data from the Ministry of Investment. This increase, coupled with a 1.5 percent rise in capital for newly licensed factories, is credited to the Kingdom’s endeavors to enhance the competitiveness of its industrial landscape, elevate the value of local content, and support domestically manufactured goods. These efforts are part of the National Industrial Development and Logistics Program and the Saudi Export Development Authority, which introduced the “Made in Saudi” program in 2021 to foster local talent and innovation. Through this program, the aim is to bolster the economy, promote Saudi products globally, and attract investments by empowering businesses both locally and internationally. Businesses participating in this initiative can utilize the “Saudi Made” logo to bolster the country’s global reputation. Aligned with Vision 2030, the initiative is geared towards building a diversified and sustainable Saudi economy, with the goal of increasing non-oil exports to 50 percent of non-oil GDP by 2030. In the third quarter, a total of 2,202 licenses were issued, including those granted as part of anti-concealment law enforcement, marking an 89 percent surge compared to the same period last year. The construction sector took the lead in investment licenses with 654 licenses, marking a remarkable increase of 170 percent over the third quarter of the previous year. Similarly, the manufacturing sector secured 360 licenses, reflecting a noteworthy increase of 94 percent. Professional, scientific, and technical activities also experienced a boost with 216 new licenses, up by 93 percent, while the information and communication sector obtained 204 licenses, indicating a surge of 115 percent. Of particular note, public administration and support services saw the most substantial growth in investment licenses, witnessing a remarkable increase of 294.3 percent. Following closely, the electricity, gas, steam, and air conditioning sector observed a rise of 175 percent in granted licenses. The third quarter also witnessed 19 deals, with the education & training and culture sectors attracting the highest investor interest, each securing four agreements. China led in the origin of investments with five deals in the third quarter, followed by Japan with three in Saudi Arabia, while the remaining deals were distributed among 12 other countries.

An investment event between Saudi Arabia and China results in agreements totaling $25 billion.

News An investment event between Saudi Arabia and China results in agreements totaling $25 billion. Trade and economic relations between Saudi Arabia and China are anticipated to strengthen further, following an investment conference held in Beijing that saw the signing of over 60 memorandums of understanding and agreements valued at $25 billion. The China-Saudi Investment Conference, which took place on Tuesday during a visit by Saudi Investment Minister Khalid Al-Falih to China, saw agreements across various sectors, including energy, agriculture, tourism, mining, and financial services. Additionally, agreements were reached in logistics, infrastructure, technology, and healthcare, as per a press release. A significant deal inked during the conference was in the information and communication technology domain, where the Saudi Esports Federation and Chinese esports tournament operator VSPO signed an MoU worth $8.5 billion to foster opportunities and collaboration in eSports. Another notable agreement was between China’s Oriental Energy Co. and Saudi’s Ajlan & Bros Holding Group Co., exploring manufacturing collaboration valued at $7.5 billion. In the energy sector, Saudi Arabia’s Ministry of Investment partnered with China’s state-owned CRRC Group for opportunities in the Kingdom, covering renewable energy and sustainable mobility projects worth $2 billion. Top regional heads, including representatives from Saudi Aramco, Saudi Basic Industries Corp., and ACWA Power, attended the conference. During the event, nine Chinese companies, including Huawei and Dahua, were granted licenses to establish their regional headquarters in Saudi Arabia. This move is part of efforts to enhance bilateral cooperation. Earlier, Saudi Arabia’s stock exchange signed an MoU with the Chinese Shenzhen Stock Exchange, focusing on joint listings and financial technology. Similarly, the Saudi Tadawul Group and the Shanghai Stock Exchange signed an MoU aimed at promoting mutual development. Moreover, in November, the Saudi Central Bank (SAMA) and the People’s Bank of China signed a local currency swap agreement worth $6.93 billion, aiming to bolster financial cooperation between the two central banks.

Pakistan declares substantial reductions in gasoline and diesel prices.

News Pakistan declares substantial reductions in gasoline and diesel prices. The government of Pakistan announced substantial reductions in the prices of petroleum products on Friday, according to a statement released by the finance ministry. Petrol prices were slashed by Rs14 per liter, while high-speed diesel prices were reduced by Rs13.50 per liter, as per the ministry’s notification. The revised prices for petrol and diesel are now Rs267.34 per liter and Rs276.21 per liter, respectively, for the upcoming fortnight. The notification attributed the price adjustments to recommendations made by the Oil and Gas Regulatory Authority (OGRA), without specifying a particular reason for the cuts. Additionally, the government also announced decreases in the prices of kerosene oil and light diesel oil (LDO). Kerosene prices were reduced by Rs10.14 per liter, from Rs201.16 per liter to Rs191.02 per liter, while LDO prices saw a reduction of Rs11.29 per liter, from Rs175.93 per liter to Rs164.64 per liter. While the notification did not explicitly mention the rationale behind the significant reductions, local media reports speculated that the move was prompted by a notable decline in global oil prices. Furthermore, the development coincides with slight gains made by the Pakistani currency against the US dollar throughout the week, with a 0.09 percent appreciation on Friday, followed by 0.04 percent on Thursday and 0.06 percent on Wednesday. As Pakistan grapples with rising inflation and dwindling foreign exchange reserves, the country is striving to chart a course towards economic stability following the agreement on a $3 billion IMF loan in July.

A representative from the IMF refutes any intentions of requesting Pakistan to increase taxes on salaries.

News A representative from the IMF refutes any intentions of requesting Pakistan to increase taxes on salaries. The IMF resident representative in Pakistan refuted media reports on Friday, dismissing claims that the lending organization intends to urge Pakistan to raise taxes on salaries and business income, as well as to increase the maximum threshold for petroleum levy. Reports circulating in the media suggested that the IMF had advised Pakistan to reduce the number of tax slabs for both salaried individuals and businesses from seven to four, potentially resulting in higher tax burdens for the middle and upper-middle income brackets. Additionally, there were reports indicating a potential increase in the maximum petroleum development levy. Esther Perez Ruiz, IMF’s resident representative in Pakistan, clarified in an email to Reuters that there are currently no plans to implement such measures. Pakistan, currently under a caretaker government, had entered into an IMF loan program in July to prevent a sovereign debt default. Through the $3 billion standby arrangement (SBA), Pakistan received an initial tranche of $1.2 billion from the IMF. Facing a severe balance of payment crisis, with foreign exchange reserves dwindling to the equivalent of barely three weeks of controlled imports, along with record-high inflation and unprecedented currency devaluation, Pakistan sought assistance from the IMF. As part of the bailout agreement, the IMF required Pakistan to generate $1.34 billion in new taxation to address fiscal adjustments. However, these measures contributed to a record high inflation rate of 38 percent year-on-year in May, the highest in Asia, which continues to hover above 30 percent.

The governor of Riyadh participates in the concluding event of the international Arabian horse exhibition and presents prizes to the victors.

News The governor of Riyadh participates in the concluding event of the international Arabian horse exhibition and presents prizes to the victors. On Saturday, Prince Faisal bin Bandar, Governor of the Riyadh Region, graced the closing event of the Sixth International Show of Purebred Arabian Horses, which took place in the capital under the patronage of King Salman at the King Abdulaziz Center for Purebred Arabian Horses. According to the state news agency SPA, the closing ceremony featured presentations by the participating horses in the Mare Championship and Stallion Championship of Saudi origin. The winning owners were honored by the governor during the event. Among the awardees in the Mare Championship were Al-Arid Stud, owner of the mare Badawiyah III, securing first place, followed by Athba Stud, owner of the mare Manarat Athba, in second place, and Mohammed Al-Tamimi Stud, owner of the mare Dhaima Athba, in third place. In the Saudi Arabian Stallion Championship, Prince Ahmed bin Abdulaziz’s stud clinched the top three positions, with the stallion Kharisan Athba, stallion Balsam Athba, and stallion Fahad Athba winning first, second, and third place, respectively. Prince Faisal bin Bandar also took the opportunity to acknowledge the entities and sectors sponsoring the ceremony as it concluded. The event was also attended by Deputy Minister of Environment, Water, and Agriculture Mansour bin Hilal Al-Mushaiti, as well as Abdulaziz Abdulaziz Al-Megbel, Director General of the King Abdulaziz Center for Purebred Arabian Horses.

An aide to the Prime Minister of Pakistan acknowledges Saudi Arabia for spearheading initiatives aimed at enhancing global employment opportunities.

News An aide to the Prime Minister of Pakistan acknowledges Saudi Arabia for spearheading initiatives aimed at enhancing global employment opportunities. The special assistant to the Prime Minister of Pakistan on overseas Pakistanis, Jawad Sohrab Malik, commended Saudi Arabia for its leadership in improving global job markets at the inaugural Global Labour Market Conference (GLMC) in Riyadh this week, as reported by the state-run Associated Press of Pakistan (APP) on Saturday. The GLMC provides a crucial platform for experts, specialists, and stakeholders in the labor market to engage in discussions regarding present and future challenges in the international job market, as well as to propose innovative solutions. Launched by Saudi Arabia’s Ministry of Human Resources and Social Development, the conference took place from December 13-14. The deep cultural, defense, and economic ties between Pakistan and Saudi Arabia, steeped in history and religion, were highlighted. With over two million Pakistanis residing in the kingdom, Saudi Arabia stands as the largest contributor to remittance inflows in Pakistan. During discussions with reporters, Malik praised Saudi Arabia for its proactive efforts in enhancing international job markets to adapt to ongoing changes. He emphasized the evolving nature of today’s job market, stressing the necessity for acquiring new skills for future jobs and the emergence of novel professions. Addressing labor ministers from 26 countries at the conference, Malik emphasized Pakistan’s significant pool of unskilled, semi-skilled, and highly skilled labor, poised to meet global job market demands. He stressed the importance for both ministerial participants and foreign employers to recognize the mutual benefits of engaging Pakistan’s highly competitive workforce. Malik outlined Pakistan’s aims to boost worker productivity by revamping STEM education, enhancing digital literacy, and fostering public-private partnerships for practical tech exposure. He proposed comprehensive social protection measures, including employment insurance, healthcare, pensions, career support, and family-oriented services, to ensure a technologically proficient Pakistani workforce. The reaffirmation of Pakistan’s commitment to developing skilled workers and fostering international partnerships in the labor sector was underscored by Jawad Sohrab Malik, as reported by the APP.

What factors contribute to China dominating the majority of business dealings with Saudi Arabia?

News What factors contribute to China dominating the majority of business dealings with Saudi Arabia? The Saudi Ministry of Investment recently conducted its latest roadshow in China, where Minister Khaled Al-Faleh engaged with Chinese counterparts at a conference focused on bolstering trade, investments, and technology cooperation. During these discussions, both sides expressed a strong commitment to collaboration, with China showing readiness to jointly support Beijing’s Belt and Road infrastructure investment program alongside Riyadh’s Vision 2030 initiative. They also pledged to enhance cooperation across various sectors such as energy, aviation, photovoltaics, and artificial intelligence, while prioritizing the protection of global industrial supply chains. The ties between China and Saudi Arabia have notably strengthened, particularly since June of last year, when Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, emphasized a shift towards collaboration rather than competition with China. What began as a relationship primarily focused on hydrocarbon ties has evolved significantly, marked by the signing of a comprehensive strategic partnership agreement and various investment deals. At the recent conference, deals worth over $25 billion were inked, spanning 60 agreements covering energy, agriculture, tourism, mining, financial services, logistics, infrastructure, technology, and healthcare. Notably, a significant agreement in the information and communication technology sector was signed between the Saudi Esports Federation and Chinese Esports Tournament Operator VSPO, valued at $8.5 billion. Moreover, Ajlan & Bros Holding Group, one of the leading family offices active in China, signed an agreement with Oriental Energy Co. to explore collaboration opportunities in manufacturing, totaling $7.5 billion. Additionally, the Saudi Ministry of Investment forged a deal with China’s state-owned CRRC Group to pursue opportunities in renewable energy and sustainable mobility, amounting to $2 billion. The burgeoning relationship between Chinese companies and Saudi Arabia began early last year when BMG represented a prominent Chinese semiconductor manufacturer. This manufacturer has since partnered with King Abdulaziz City for Science and Technology to conduct comprehensive research and development aimed at serving the Saudi market. This technological initiative, once commercialized, is poised to be transformative in the Saudi market, given the critical role semiconductor technology plays in various sectors. China has emerged as Saudi Arabia’s largest trading partner, with bilateral trade surpassing $106 billion last year, marking a significant increase from 2021. As an active participant in the Saudi Ministry of Investment’s global roadshows promoting foreign direct investments into the Kingdom, I am inclined to believe that China has secured a substantial portion of Saudi business opportunities.

The Minister of Industry and Mineral Resources of Saudi Arabia engages in discussions regarding Vision 2030 during an event hosted by Arab News Japan.

News The Minister of Industry and Mineral Resources of Saudi Arabia engages in discussions regarding Vision 2030 during an event hosted by Arab News Japan. Bandar AlKhorayef, the Minister of Industry and Mineral Resources for Saudi Arabia, engaged in a Fireside chat event hosted by Arab News Japan on December 18 in Tokyo. Addressing Faisal J. Abbas, Editor-in-Chief of Arab News, at the Foreign Correspondents’ Club of Japan (FCCJ), AlKhorayef commenced his discussion by underscoring the notable transformation Saudi Arabia has undergone in recent years. He provided an overview of the objectives outlined in Vision 2030, highlighting that this was a key focus of his visit to Tokyo. He emphasized the primary goals of his visit, which included elucidating Saudi Arabia’s initiatives and fostering interest among Japanese partners to participate in these developments. AlKhorayef pointed out the increasing demand for minerals globally and Saudi Arabia’s proactive measures to address this, such as the establishment of The Future Minerals Forum, an annual event held within the Kingdom. While acknowledging that Saudi Arabia’s mineral resources are still relatively untapped, AlKhorayef revealed that recent estimates valued these resources at $1.3 trillion, encompassing phosphates, zinc, aluminum, and fertilizers. Regarding manufacturing, he highlighted Saudi Arabia’s extensive history as a manufacturer of chemicals and its efforts to elevate manufacturing capabilities to produce higher value-added products. The minister elaborated on the 12 key sectors targeted for development and conveyed a message to Japanese car manufacturers concerning the increasing market share of Electric Vehicles (EVs) and Chinese brands in the Saudi market, urging them to safeguard their market share. When queried about security threats in the Middle East and their potential impact on Saudi Arabia’s industrial development and investor attraction efforts, Minister AlKhorayef emphasized the region’s diverse nature and highlighted Saudi Arabia’s enduring stability, rooted in strong relations between the people and their leaders. He also emphasized Saudi Arabia’s commitment to reinvesting oil revenues into societal development, driven by a vision for a robust nation and empowered citizens. The Fireside chat concluded with a Q&A session involving leading Japanese media outlets such as The Nikkei Shimbun, NHK, Jiji Press, Kyodo News, and Mainichi Shimbun.

Moody’s forecasts Saudi Arabia’s non-oil sector to grow at a rate of 4% per year until 2030.

News Moody’s forecasts Saudi Arabia’s non-oil sector to grow at a rate of 4% per year until 2030. In Riyadh, an expert at Moody’s Analytics predicts Saudi Arabia’s ongoing economic diversification will lead to steady growth in the non-oil sector, expected to range between 3% and 4% annually until 2030. Catarina Noro, an economist at Moody’s Analytics, emphasized the significant shift in the Saudi economy over the past decade, with the non-oil sector increasingly contributing to GDP growth. Noro highlighted that by 2030, the non-oil economy is projected to comprise approximately 56% of Saudi Arabia’s GDP. Moody’s anticipates that growth in Saudi Arabia’s oil sector will remain modest, between 0.5% and 1.5%, from 2025 to 2030. The country’s emphasis on strengthening the non-oil private sector aligns with its Vision 2030 objectives, aiming to reduce dependence on oil revenue. Noro stressed the importance of facilitating credit access for small and medium-sized enterprises (SMEs) to drive growth in key sectors such as tourism and construction. Noro emphasized the need for Saudi Arabia to focus on expanding its labor force, particularly by increasing female participation rates and accommodating growth in the expatriate population. A larger labor force is seen as crucial for sustaining momentum in the non-oil private sector. Recent reports from Saudi Arabia’s General Authority for Statistics and the Small and Medium Enterprises General Authority affirm the upward trajectory of the non-oil private sector. Non-oil activities expanded by 3.5% in the third quarter of the year, with the number of SMEs reaching 1.27 million by the end of the same period, indicating a 3.5% increase compared to the previous quarter. Notably, over 40,000 new businesses were established during the third quarter, with Riyadh hosting 43.3% of all SMEs in the Kingdom.

GACA initiates a project aimed at overseeing and supervising the movement of passengers.

News GACA initiates a project aimed at overseeing and supervising the movement of passengers. RIYADH: Saudi Arabia’s airports are poised to witness enhanced passenger movement thanks to a groundbreaking digital initiative launched by the President of the General Authority of Civil Aviation (GACA). Abdulaziz Al-Duailej inaugurated the project aimed at developing a novel system for managing and monitoring air travelers within the Kingdom, as reported by the Saudi Press Agency. This initiative aligns with GACA’s mission to elevate the aviation sector in Saudi Arabia, ensuring it plays a pivotal role in enhancing the traveler experience, emphasized Al-Duailej. Furthermore, it underscores the authority’s commitment to prioritizing digital transformation to deliver top-tier services in line with global standards. Building upon previous endeavors, such as the issuance of a travelers’ rights list aimed at elevating service levels, this project will encompass 27 airports across the Kingdom, showcasing its innovative approach, noted Abdulaziz bin Abdullah Al-Dahmash, GACA’s Executive Vice President for Quality and Passenger Experience. Considered a pivotal program offering promising technical solutions to gauge traveler experiences, this initiative falls within the objectives of the National Aviation Strategy to enhance the journey of visitors at Saudi airports, highlighted Al-Dahmash. The project will introduce an integrated passenger flow management and analysis system, featuring a dedicated dashboard for each airport, facilitating swift decision-making by executive leadership and enhancing operational efficiency, emphasized the Vice President. Performance standards will encompass measuring passenger waiting times at various departure stages, including check-in, passport, and security procedures, as well as baggage retrieval and customs processes upon arrival. Through this venture, the authority aims to automate waiting time measurement processes for 99 percent of passenger traffic, underscoring its commitment to continuous improvement and keeping pace with digital advancements, Al-Dahmash reiterated. Emphasizing the guest-centric approach in the aviation industry, Al-Dahmash concluded that visitor experience remains the cornerstone and primary focus, positioning this initiative as a fundamental step towards enhancing the traveler journey. In June, GACA released the draft economic regulations for airports on a survey platform from June 22 to July 20, aimed at bolstering efficiency, competitiveness, and passenger experience within Saudi Arabia’s aviation sector.