Week from 11 - 18 June 2023 |
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This weekly newsletter prepared on behalf of the EU-GCC Dialogue on Economic Diversification Project includes the top headlines of the most significant and relevant news from across the EU and GCC in a consolidated easy to read format.
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Sustainable Finance: Commission takes further steps to boost investment for a sustainable future
The Commission has proposed a new set of measures to enhance the EU's sustainable finance framework. This move, intended to support the transition to a climate-neutral economy by 2050, addresses the challenges faced by companies and investors in complying with new disclosure and reporting requirements. The package includes additions to the EU Taxonomy, new rules for ESG rating providers for improved market transparency, and an attempt to make the framework more accessible. Ultimately, these measures aim to aid companies investing in sustainability and align with the European Green Deal objectives. Read more.
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Social economy: Commission proposes ways to harness its full potential for jobs, innovation and social inclusion
The Commission has put forth measures to support Europe's 2.8 million social economy entities, which employ 13.6 million people across diverse sectors. These measures aim to create an enabling environment for these organizations to flourish, and promote their role in job creation, innovation, and social inclusion. As part of this effort, the Commission proposes a recommendation for Member States to implement social economy strategies and introduces the "social economy gateway", a centralized website providing information on EU funding, training, and other resources. Read more.
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The Carbon Border Adjustment Mechanism starts applying in its transitional phase as of 1 October: Commission consults on reporting obligations
The European Commission has requested feedback on the draft rules for implementing the Carbon Border Adjustment Mechanism (CBAM) during its transitional phase from October 2023 to the end of 2025. This period requires traders to report emissions from imported CBAM goods but doesn't necessitate any financial adjustments. This mechanism aims to prepare businesses and refine the final methodology by 2026. During the initial implementation year, companies can report emissions using three methods, including the new EU method, equivalent third-country systems, and reference values. By 2025, only the EU method will be accepted. Read more.
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Stronger EU product safety rules enter into force today
The General Product Safety Regulation (GPSR) comes into effect today, addressing changes in consumer product safety due to increasing digitalisation, technological developments, and globalised supply chains. The modernised framework aims to guarantee only safe products reach consumers, irrespective of their origin or the method of sale (online or in-store). In related news, the Commission has also announced a call for applications for the 2023 EU Product Safety Award, with a focus on businesses enhancing safety for young people. The new GPSR rules apply to non-food products, sold both offline and online. Read more.
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Sustainable transport: rules to boost intelligent transport systems for safer and more efficient transport agreed
The Commission has announced a political agreement on revising the Intelligent Transport Systems (ITS) Directive. This revision will expand the directive's scope to include emerging services such as multimodal information, booking and ticketing services, and automated mobility. The law will also set targets for digitising crucial information such as speed limits and roadworks. This move towards a smarter, interoperable transport system aims to better manage traffic and mobility, offering users real-time information, intelligent road infrastructure, and improved intelligent speed assistance systems. This not only enhances the user experience but also promotes the adoption of more sustainable modes of transport. Read more.
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European Green Deal: EU Modernisation Fund invests €2.4 billion to accelerate the green transition in seven EU countries
The European Union's Modernisation Fund has allocated €2.4 billion to 31 projects across seven countries to modernise energy systems, enhance energy efficiency, and reduce greenhouse gas emissions. This fund aims to assist Member States in reducing reliance on Russian fossil fuels, meeting 2030 climate targets, and supporting the EU's goal of climate neutrality by 2050. The beneficiaries of these funds, sourced from the European Emissions Trading System revenues, include Romania (€1.1 billion), Czechia (€1 billion), and others, bringing the total disbursement since January 2021 to around €7.5 billion. The projects focus on renewable electricity generation, energy network modernisation, and energy efficiency. Read more.
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Circular economy: Commission recommends actions to boost recycling in 18 Member States at risk of missing waste targets*
In a recent report, the Commission identified several Member States at risk of not meeting the 2025 recycling targets for municipal and all packaging waste and the 2035 landfilling target. While nine states, including Austria, Belgium, and Germany, are on track, 18 others risk missing one or both 2025 targets. These include Estonia, Finland, France and Sweden (for the municipal waste target) and Bulgaria, Croatia, Cyprus, and others (for both the municipal and packaging waste targets). The report also suggests that some countries may fail to meet the 2035 landfilling target. The Commission has offered recommendations to improve waste management performance, complementing ongoing financial and technical support. Read more.
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KSA: Latvia considers Saudi Arabia a high-priority market, says Baltic state’s minister for economics
Latvia aims to bolster trade relationships with Saudi Arabia and help contribute to the Kingdom's Vision 2030 agenda, according to Ilze Indriksone, Latvia's Minister for Economics. In a recent Saudi-Latvian Business Forum in Riyadh, she emphasized the need to boost bilateral trade, economic cooperation, and investment in technology and research. An agreement was signed to establish a joint economic committee to improve information sharing and encourage cooperation between businesses in both countries. The committee will focus on sectors such as trade, transport, logistics, investment, finance, tourism, agriculture, and the food industry, along with emerging technologies. Latvian businesses showed particular interest in the Saudi biomedicine, pharmacy, construction, ICT, and creative industries. Read more.
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KSA: Saudi Arabia, France to explore investment opportunities at business forum in Paris
The French-Saudi Investment Forum, commencing on June 19 in Paris, will explore significant investment opportunities in tourism, culture, technology, and clean energy. The forum, attended by a senior Saudi delegation led by Minister of Investment Khalid Al-Falih, aims to enhance bilateral ties and discover new possibilities. The event includes three panel discussions on the potential for tourism and cultural collaboration, strengthening the tech ecosystem, and clean energy transition. Concurrently, delegates from 179 member states of the Bureau International des Expositions will attend an official reception, with a ceremony on June 20 to discuss Riyadh's bid to host Expo 2030. The forum will conclude with bilateral business meetings, further fostering the mutual economic growth and relationship between France and Saudi Arabia. Read more.
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KSA: Saudi Cabinet approves Civil Transactions Law
The Saudi Cabinet has approved the Civil Transactions Law, one of four major legal reforms announced in 2021. Crown Prince Mohammed bin Salman emphasized that the new law marks a significant transformation in specialized legislation. It was designed in line with modern legal trends, best international judicial practices, and Islamic Shariah provisions, and it is consistent with Saudi Arabia's international obligations. The law aims to protect property rights, ensure contractual stability, clarify rights and obligations, and enhance legal clarity. It is expected to positively impact the business environment, regulate economic activity, stabilize financial rights, and improve transparency. It also includes provisions defining contracts, elements of a contract, provisions for invalidity and termination, and rules for compensation. Read more.
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KSA: AlUla inks deal with Schneider Electric to adopt clean energy solutions
Saudi Arabia's heritage city AlUla is set to become a sustainable tourism destination with the help of Schneider Electric, a global energy management specialist. The Royal Commission of AlUla has signed an MoU with Schneider to implement sustainable energy management solutions, including smart microgrids and intelligent buildings. The French energy company will also provide consultancy for data centers and electric mobility infrastructure for AlUla's hotels, museums, and residential buildings. This move aligns with Saudi Arabia's National Tourism Strategy, which aims to attract 100 million visitors by 2030, increase tourism's contribution to GDP, and create an additional 1 million jobs. Read more.
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KSA: Saudi industry minister encourages French companies to invest in Kingdom’s mining sectors
Saudi Arabia's Minister of Industry and Mineral Resources, Bandar Alkhorayef, met with French business leaders in Paris to discuss investment opportunities in Saudi Arabia's mining sector. The meeting aimed to increase the role of mining and industry in Saudi Arabia's national economy by attracting foreign investment. Alkhorayef is attending Vision Golfe, a business event promoting commercial partnerships between France and the Gulf states. Saudi Arabia, rich in natural resources like gravel, gold, iron, copper, granite, and marble, has been undertaking initiatives to make its mining sector more attractive to private investors, aiming to make it the third pillar of its national strategy. Read more.
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KSA: Saudi Arabia calls for collective efforts to achieve sustainable growth at G20 meeting
At the G20 Ministerial Development Meeting in India, Saudi Arabia emphasized the importance of balancing economic growth and environmental preservation for a sustainable future. Yasser Fakih, general supervisor of the General Department of Research and Economic Visions at the Ministry of Economy and Planning, advocated for the Kingdom's circular carbon economy approach and commitment to the UN’s Sustainable Development Goals. The discussions focused on reducing, reusing, recycling, and removing carbon for sustainable development. Saudi Arabia's Vision 2030 plan, aiming to create private sector opportunities and elevate living standards, aligns with the G20's sustainability agenda. Read more.
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KSA: Saudi Arabia eyes $20bn investments in food industry by 2035, minister says
Saudi Arabia's food industry is expected to receive a $20 billion investment by 2035, benefiting sectors like poultry, dairy, bakery, sweets, beverages, and juices. This investment aligns with the country's aim to double agricultural exports to $10.9 billion by 2035 under the National Industry Strategy. Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted key projects like Almarai Co.’s $1.2 billion poultry production expansion and Seara Arabia Food Industries Co.’s $120 million investment. The food sector is projected to grow from $41 billion in 2019 to $57 billion by 2030, driven by an increase in consumer spending on food and beverages and population growth. Read more.
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KSA: Fast-growing Saudi logistics sector driving regional transformation, industry expert says
Saudi Arabia's logistics sector is rapidly expanding, transforming the region's landscape, according to Henadi Al-Saleh, the chairperson of Kuwait-based Agility Logistics. Speaking at the 10th Arab-China Business Conference, Al-Saleh cited Saudi Arabia's Vision 2030 initiative as the force behind the industry's significant infrastructure and technology investments. She also noted that Saudi Arabia consistently ranks highly in Agility's emerging market index, enhancing its investment appeal. Loay Mashabi, Saudi deputy minister for logistics services, added that the logistics industry, powered by a young demographic and strategic location, is a key catalyst for accelerating growth in other sectors. Saudi Arabia aims to become a global logistics hub, with a targeted market size of $15.31 billion by 2030. Read more.
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UAE: Dubai Customs implements new policies to boost foreign trade
Dubai Customs has introduced new policies aimed at enhancing UAE's foreign trade following comprehensive economic partnership agreements (CEPAs) with several global and regional partners. These policies, part of the CEPAs, set out obligations, rules, and provisions related to trade goods. Dubai Customs centers will ensure adherence to these policies. Benefits include better market access, simplified customs procedures, and rule-based competition. The UAE has signed CEPAs with countries including India, Israel, Indonesia, and Turkey, and aims to sign 26 more, looking to attract investment and diversify its economy. As part of the Dubai Economic Agenda (D33), the city aims to be among the top three in economic strength by 2033 and increase its foreign trade for goods and services in the next decade. Read more.
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UAE: Dubai tops in attracting FDI projects in cultural, creative industries; surpasses London, Paris, Berlin
Dubai saw a record 451 projects in the cultural and creative industries in 2022, a 107.7% increase from the prior year, surpassing major global cities such as London and Singapore. The Dubai FDI Monitor report revealed that 76% of the total projects were greenfield FDI projects. The US, India, the UK, France, and Switzerland were the leading foreign direct investors in terms of FDI projects and capital inflows. FDI in Dubai’s cultural and creative industry reached Dh7.357 billion ($2 billion) in 2022, making the city first in the MENA region and 12th globally. This investment generated an estimated 12,368 jobs. In 2022, Dubai attracted a total of 1,173 FDI projects, leading to an 80% increase in FDI inflows and over 13,500 jobs. Read more.
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UAE: UAE committee meets to discuss draft general budget for fiscal 2024
The UAE General Budget Committee met to discuss the draft budget for 2024 and review the federal government's financial status for 2023. The committee noted significant growth in various sectors and economic activities in the Emirates, indicating a strong recovery from the COVID-19 pandemic-induced slowdown. In October, the UAE Cabinet approved the federal budget for 2023 to 2026, with a total expenditure of Dh252.3 billion ($68.69 billion) and estimated revenue of Dh255.7 billion. The budget for 2023 projected expenses of more than Dh63.06 billion and estimated revenue of Dh63.61 billion. The UAE's non-oil foreign trade increased 17% annually to a record Dh2.23 trillion last year as the country implemented measures to diversify its economy and strengthen economic partnerships. Read more.
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UAE: Dubai opens fifth phase of world's biggest single-site solar park to power 270,000 homes
Dubai has inaugurated the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the world's largest single-site solar park, set to have a capacity of 5,000 megawatts by 2030. The 900-megawatt fifth phase is set to provide clean energy to 270,000 homes in Dubai, reducing carbon emissions by 1.18 million tonnes annually. The emirate aims to generate 25% of its energy requirements from renewable sources by 2030 and 100% by 2050. The Dh2 billion fifth phase project, a collaboration between Dubai Electricity and Water Authority and a consortium led by Acwa Power and Gulf Investment Corporation, was completed ahead of schedule despite the Covid-19 pandemic. The project is one of the first in the Middle East to use AI in an advanced robotic cleaning system for photovoltaic panels. Read more.
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UAE: UAE named as WTO's Middle East vice president for October meeting
The UAE will serve as the UN World Tourism Organisation's vice president for the Middle East at the organization's meeting in October in Uzbekistan. This announcement follows the strong recovery of the country's tourism sector from the Covid-19 downturn. As part of its Tourism Strategy 2031, the UAE aims to boost the sector's contribution to the national economy to Dh450 billion ($122.52 billion), draw Dh100 billion in tourism investment, and attract 40 million hotel guests by 2031. The tourism sector's contribution to the UAE's GDP rose 60.2% to about Dh167 billion in 2022, making up 9% of the economy. In 2022, international visitor spending in the UAE increased by 65.3% to Dh117.6 billion. Read more.
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UAE: Dubai's business conditions stay robust amid stronger output and employment growth
Dubai's non-oil private sector economy has continued to strengthen in May, driven by robust output and employment growth. The S&P Global purchasing managers' index for the emirate dropped slightly to 55.3 from 56.4 in April, indicating a strong expansion. Business activity levels and job creation both increased at a brisk pace, with the latter seeing its fastest growth since January 2018. Business confidence also reached its highest level since March 2020. The Dubai economy grew 4.6% in the first nine months of 2022, and its GDP is projected to expand by 3.5% in 2023. Significant growth was noted in the aviation, tourism, and property markets. Read more.
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QATAR: Qatar premier destination for leisure travellers
Qatar Airways Group CEO, Akbar Al Baker, has declared Qatar a prime destination for leisure and business travelers due to its wealth of cultural and entertainment activities, safety, and family-friendly attractions. High-profile events such as the Doha Jewellery and Watches Exhibition, Qatar International Food Festival, F1 Qatar Grand Prix, and Expo 2023 Doha draw global visitors. Al Baker noted that Qatar's appeal extends to celebrities and VIPs seeking a luxurious yet private experience. He also highlighted Qatar's cultural development, which positions it as a global center for arts, literature, and innovation, distinguishing it from other Gulf and Arab destinations. Qatar's appeal is further enhanced by seamless travel connectivity via Qatar Airways and Hamad International Airport. Read more.
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QATAR: Qatar sees 1.5mn tourists in first half of 2023
The successful hosting of the 2022 FIFA World Cup significantly boosted Qatar's tourism, attracting a record-breaking 1.5 million visitors in H1 2023, according to Qatar Airways Group CEO, Akbar al-Baker. High-profile events like the Formula One Qatar Grand Prix, Geneva International Motor Show, and International Horticultural Expo Doha 2023 are expected to continue attracting global visitors. Al-Baker highlighted the rapid development in Qatar, with significant infrastructure projects such as new stadiums, a metro system, cruise terminal, and the smart city, Lusail. Additionally, the 'Qatar Host' programme has trained over 33,000 service professionals, and more than 3,500 holiday home licences have been issued to broaden accommodation options. Al-Baker emphasized the role of Qatar Tourism's digital transformation and collaborative efforts, including an educational campaign with Qatar Foundation and Qatar University, in promoting Qatar as a world-class tourism and educational hub. Read more.
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QATAR: Qatar participates in first edition of "Vision Golfe" forum to strengthen ties with France
Qatar's delegation, led by Ambassador to France Sheikh Ali bin Jassim al-Thani, attended the inaugural "Vision Golfe" forum on June 13-14 in Paris, France. The forum was organized by the French agency "Business France" and sought to strengthen cooperation between France and the GCC countries. Qatar's relationship with France was highlighted, focusing on mutual economic interests and the role of French companies in implementing the Qatar National Vision 2030. The forum also discussed investment opportunities in fields such as energy, green industry, renewable energy, biotechnology, and digital transformation. Read more.
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QATAR: PPP strategy vital in attracting FDI to Qatar, says IPA Qatar official
Qatar's implementation of public-private partnerships (PPPs) is seen as crucial in attracting foreign direct investments (FDIs), according to Fahad Ali al-Kuwari from the Investment Promotion Agency Qatar (IPA Qatar). Speaking at a panel discussion during the opening of Huawei's new office in Doha, al-Kuwari highlighted the role of PPPs in driving FDI inflows to Qatar, particularly in the information and communications technology (ICT) sector. He emphasized that successful PPPs align government infrastructure goals with the private sector's profit motives. Qatar has already established successful PPPs in sectors like oil and gas and banking and is expanding its strategy to include technology-related industries. The country aims to regulate FDI inflows while maintaining relationships with existing investors. IPA Qatar, through its Invest Qatar brand, plays a crucial role in attracting FDI, with the 2022 Annual Report revealing significant FDI capital expenditure and job creation in diverse sectors. The report highlights the country's economic resilience and its potential as an investment destination. The CEO of IPA Qatar expects further growth and engagement with the international investment community in 2023 and beyond. Read more.
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QATAR: Qatari legislation enhances investment climate
Qatar International Centre for Conciliation and Arbitration (QICCA) Board Member for International Relations, Sheikh Dr. Thani bin Ali Al Thani, highlighted the positive impact of recent legislations and economic laws in Qatar in encouraging entrepreneurship, stimulating local and international investments, and promoting investment opportunities. He made these remarks at the 16th edition of the Dublin Forum for the Settlement of International Commercial Disputes, organized by the British Royal Institute of Certified Arbitrators. The Qatar International Center for Conciliation and Arbitration, established in 2006, aims to promote arbitration as an important alternative for resolving commercial disputes. The annual forum gathers experts from around the world to discuss international commercial arbitration, dispute settlement, and mediation. The sessions also cover current international and regional issues impacting the practice of international arbitration and dispute resolution. Read more.
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OMAN: Hydrogen production costs in Oman to hit cost-competitive $1.6/kg by 2030: IEA
Oman has the potential to become a leading producer and exporter of renewable hydrogen due to its abundant solar and wind resources, large available land areas, and existing fossil fuel infrastructure that can be repurposed for low-emission fuels, according to a report by the International Energy Agency (IEA) and the Ministry of Energy and Minerals. The report states that Oman could produce green hydrogen at a globally competitive cost of $1.6/kg by 2030, enabled by cheap renewable electricity. The country aims to produce around 1 million tonnes of renewable hydrogen annually by 2030, requiring significant investments of approximately $33 billion in renewable power and electrolysis infrastructure. Read more.
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OMAN: Oman forges valuable alliances with diverse economies during G20 Summit
Oman's participation in the G20 Summit is expected to have positive economic implications for the country, according to Pankaj Khimji, leader of the Secretariat of the Sultanate of Oman for the G20 meetings. Oman's involvement in the summit has provided networking opportunities and potential alliances that align with the country's sustainable goals. The G20, consisting of 19 member states and the European Union, focuses on addressing global economic issues. This year's summit theme is "One Earth One Family One Future," promoting inclusivity through the Sherpa track and financial track, which address diverse topics and global macroeconomic concerns. Oman has participated in over 80 meetings and will continue its involvement leading up to the final summit in September. Read more.
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OMAN: Oman’s first chip testing lab is now fully operational
Global semiconductor and microelectronics firm GS Micro Electronics (GSME) has announced the opening of Oman's first fully equipped integrated circuit (IC) testing lab. The lab, operated by GSME's local affiliate GSME Oman, aims to support the growth of Omani talent in the semiconductor industry. This development follows the recent unveiling of two indigenously designed integrated chips, 'Oman-1' and 'Oman-2,' which were sent to Taiwan for testing and validation. GSME's investment in the lab and training of the Omani design team reflects the company's commitment to empowering local talent and achieving independence in IC design. The initiative aligns with Oman's National Programme for the Digital Economy, positioning the country for future success in the global semiconductor manufacturing industry. Read more.
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OMAN: Plan for integrated development of Ras Al Hadd AirportThe Civil Aviation Authority (CAA) in Oman is seeking qualified consultants to develop Ras Al Hadd Airport in South Al Sharqiyah as part of the region's emergence as an eco-tourism hub. The CAA aims to support the integrated development of the airport to drive tourism and economic growth, aligning with Oman Vision 2040. The consultancy services will cover feasibility studies, master planning, and concept design for the airport, including analysis of potential opportunities such as maintenance, repair, and overhaul (MRO), cargo, hotels, commercial and mixed-use development. The region's attractions, including turtle-watching and wildlife, are expected to draw more tourists, and a fully operational airport could further boost investment in related industries. Several international and local firms are competing for the consultancy contract, with bids closing on June 20, 2023.
Read more.
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OMAN: Oman’s economic policies lauded by top US institute
The Arab Gulf States Institute in Washington (AGSIW) has published a report praising Oman's economic policies and reforms. The report highlights the government's sound economic policymaking, including the establishment of the Oman Future Fund and the Sultan Haitham City development project. It acknowledges the country's progress in achieving fiscal sustainability, reducing government debt, and increasing non-oil revenue streams through measures such as the implementation of value-added tax. The report also notes Oman's positive economic indicators, including revised outlooks from Fitch Ratings and S&P Global Ratings, and the country's aspiration to become a major producer and exporter of green hydrogen. However, the report cautions that Oman still faces macroeconomic challenges and rising regional competition, emphasizing the need for a measured and consistent approach to economic policymaking. Read more.
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OMAN: OIA, SMEs Development Authority sign MoC to enhance local content and support SMEs
The Oman Investment Authority (OIA) has signed a Memorandum of Cooperation (MoC) with the SMEs Development Authority to enhance local content and In-country Value (ICV). The cooperation involves launching a financing scheme directed towards SMEs that are awarded contracts by OIA's entities. The financing product will fund 80% of the contract's value, up to a maximum of OMR 250,000. To qualify for funding, SMEs must meet certain criteria, including passing an Entrepreneur Readiness Programme. The partnership aims to create more business opportunities for SMEs, enhance their sustainability, and contribute to the national economy. The program aligns with efforts to enhance the local content, support the private sector, and empower the national workforce. Read more.
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OMAN: Oman’s first hydrogen blocks awarded to consortium
EnerTech Holding Company, a Kuwaiti state-owned clean energy investment firm and a founding partner of the Green Energy Oman (GEO) consortium, has been awarded one of Oman's first hydrogen blocks by Hydrom. The GEO consortium, which includes EnerTech, OQ, Shell Oman, InterContinental Energy (ICE), and GWWT, secured Block Z1-04 in the Dhofar Governorate to produce 150,000 metric tonnes per annum of green hydrogen using 4 gigawatts of renewable energy. This is part of Oman's larger plan to achieve one million tonnes per year of green hydrogen production by 2030. The GEO project, located in Al Wusta, will be one of the world's largest green hydrogen plants, powered by 25 gigawatts of renewable energy, and capable of producing approximately 1.8 million tonnes of green hydrogen annually. The project aligns with Oman Vision 2040 and will contribute to the country's renewable energy expertise and generate employment opportunities. Read more.
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OMAN: Commerce Ministry issues decision simplifying investment procedures
The Ministry of Commerce, Industry, and Investment Promotion (CIIP) in Oman has issued a decision aimed at simplifying investment procedures and facilitating investors. The decision includes 11 articles, with the first article outlining the provisions. The investment services center under the ministry will be responsible for streamlining investor procedures, issuing necessary approvals, permits, and licenses, and providing relevant data and information. The center will also submit quarterly reports to the Minister, highlighting transaction volumes, compliance with performance standards, and proposals for service development and transparency. The decision also allows for the allocation of space in the center to companies and institutions, such as telecommunications and financial companies, to offer their services to investors for a monthly rent determined by the Minister in coordination with the Ministry of Finance. Read more.
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OMAN: Oman seeks to maximise returns from mining sector
The mining sector in Oman is expected to see promising growth with the implementation of the Minerals Resources Law and various projects initiated by the Ministry of Energy and Minerals. The ministry aims to optimize the utilization of minerals, conduct pre-feasibility studies, and develop geological maps. Efforts are being made to diversify sources of national income, encourage the establishment of industries relying on minerals, and increase the value added before export. The sector is considered a key pillar of Oman Vision 2040 for economic diversification and GDP growth. The ministry has signed agreements in the mining sector and plans to enhance the sector's value chain. Oman is rich in metallic and non-metallic mineral ores, making it an attractive destination for global demand. Read more.
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KUWAIT: Kuwait’s banking sector projects a resilient future outlook, ensuring stability and growth
Moody's: Kuwaiti banks have strong capital and liquidity, ensuring a stable future outlook. Total assets reach $375.27 billion, led by Kuwait Finance House and National Bank of Kuwait. Government spending on infrastructure and projects will boost loan demand. Despite some risks, local loans remain sound with ample provisions and strong capital. Profitability may face slight pressures but will stay intact due to high efficiency. Steady deposits and strong liquidity support funding. 3% non-oil GDP growth expected in 2023. Loan performance stable, with low non-performing loan ratio. Concentrations in certain sectors pose risks, but consumer loans are protected. Large provisions provide effective buffers. Capital remains healthy, thanks to Basel III standards. Financing and liquidity are strengths, with stable deposits and liquid assets. Read more.
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KUWAIT: Fostering Sustainable Economic Growth: Private and Public Sectors Join Forces in a Vital Partnership
The Secretary General of the Supreme Council for Planning and Development (SCPD) in Kuwait, Dr. Khaled Mahdi, emphasized the importance of partnership between the private and public sectors in achieving Kuwait's 2035 Vision for a varied and sustainable economy. He stated that this collaboration is essential for economic growth, job creation, improved production efficiency, technology transfer, and investment opportunities. The second Kuwait conference on public-private partnerships was inaugurated to discuss the necessary aspects and overcome obstacles for successful partnership projects. Read more.
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KUWAIT: Failaka Resort project will cost about KD 205mn to ensure implementation
The Failaka Resort project in Kuwait is expected to cost approximately KD 205 million, with KD 130 million allocated for capital expenditures. The government will bear KD 75 million of this amount for infrastructure purposes. The project aims to attract around 300,000 visitors annually. However, a recent study by the Touristic Enterprises Company suggests that achieving economic feasibility for a project of this scale, such as Failaka Resort, within three years is impossible. Legislative amendments are required to extend the period of offering the resort for use to 30 years or more, enabling a desirable internal revenue return of 11 to 13 percent to attract private sector investors. Read more.
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BAHRAIN: Bahrain awards first golden licences to five projects worth $1.4bn in total
Bahrain has granted its inaugural golden licences to five companies, namely Citi, Eagle Hills Diyar, Infracorp, Saudi Telecom, and the Whampoa Group. This initiative is expected to stimulate more than $1.4 billion of investment and create over 1,400 jobs in the next three years, supporting Bahrain's economic recovery plan. The golden licence initiative, launched in April, is intended to attract more investment, support economic growth, and facilitate digital transformation. Companies must contribute to the kingdom's development by either creating more than 500 jobs or investing more than $50 million to be eligible. The benefits include priority land allocation, streamlined government services, and support from the Bahrain Development Bank and the Labour Fund, Tamkeen. The country's economic growth last year was the highest since 2013, driven by a 6.2% increase in non-oil GDP. Read more.
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BAHRAIN: Export Bahrain launches National Exporters Directory to promote made in Bahrain products and services
Export Bahrain has launched the "National Exporters Directory", a comprehensive online database to promote and increase visibility of products and services made in Bahrain. The platform categorizes exporting businesses by industry, products, or services, offering brief information about each company and their offerings. This initiative aims to enhance the competitiveness of Bahrain's economy by optimizing the efficiency and marketability of local exporters. The National Exporters Directory is a tool for B2B, B2C, and other related parties, aiming to strengthen international trade links and provide international buyers and manufacturers access to high-quality goods and services from Bahrain. The move is expected to augment production capacity and help Bahraini businesses establish a global market presence. Read more.
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GCC: French fashion brands keen on tapping into $12bn Gulf market
French fashion and lifestyle brands are seeking to expand their presence in the $12 billion Gulf market, targeting the region's young, digitally savvy consumers. This was the focus of a panel discussion at the Vision Golfe event in Paris, organized by Business France. Panelists, including top executives of luxury brands and marketing companies, agreed that French products enjoy popularity in the Gulf region, but further efforts could be made to reach the younger demographic. They observed that French luxury items, including haute couture and design, are in high demand and are generally purchased from luxury boutiques and large shopping malls in major cities. The developing middle class in the Gulf region was highlighted as a potential market segment for French companies to explore and cultivate. Read more.
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GCC: GCC’s emerging green logistics sector in the spotlight
Experts at a roundtable discussion, part of the Vision Golfe event in Paris, praised the Gulf region's focus on developing a sustainable and future-focused logistics sector. The discussion explored investment opportunities in the green logistics sector, with the Gulf region emerging as a new global hub. Key points included Saudi Arabia's ambitious logistics projects and strategic partnerships, such as those with France. Saudi Arabia's commitment to sustainability was exemplified by its $500 billion NEOM project and its Vision 2030 program. Ahmed Al-Abri, CEO of Asyad Ports, emphasized the importance of sustainable development and carbon footprint reduction in achieving economic growth and zero emissions. He assured that sustainability mechanisms have been integrated into all regional projects with foreign partners. Read more.
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GCC: Saudi Aramco tops Middle East companies for 2023: Forbes
Saudi Aramco topped Forbes' list of top 100 Middle East companies for 2023, highlighting the Gulf's dominance in the region's economy, particularly in energy and finance. Aramco reported a revenue of $604.4 billion in 2022 and a market value of $2.1 trillion. Other companies in the top ten include SABIC, QNB Group, Saudi National Bank, International Holding Company, Al Rajhi Bank, Saudi Electricity Company, First Abu Dhabi Bank, Emirates NBD, and TAQA Group. Forbes' list showed that 91% of the companies are from Gulf Cooperation Council (GCC) countries, with 42 finance and banking firms included. The energy sector contributed the majority of profits. Despite the top 100 companies' aggregate market value decreasing by 5% in 2023, their aggregate sales and profits saw significant increases.Read more.
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