Week from 27 June to 4 July 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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Erasmus+: New funding for European Universities alliances boosts cooperation in higher education
The Commission has revealed the results of the 2023 Erasmus+ call for the European Universities initiative, adding seven new alliances, bringing the total to 50 alliances involving over 430 higher education institutions across 35 countries. These alliances, supported by a record €402.2 million budget from the Erasmus+ programme, facilitate transnational and innovative education, allowing students to study in multiple European countries and obtain internationally competitive degrees. The initiative also extends to higher education institutions in Western Balkans countries not previously associated with the Erasmus+ programme. Read more.
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EU Cohesion Policy: inauguration of one of the longest underwater tunnel in Europe
The longest EU-funded underwater tunnel in Europe officially opens in Poland, connecting the islands of Usedom and Wolin and improving access to the city centre of Świnoujście. The tunnel, part of a €191.5 million project funded largely through the EU Cohesion Policy, will dramatically reduce travel time for local commuters and the city's 2.5 million annual tourists. Spanning 1,440 meters, the tunnel not only links parts of Świnoujście but also enhances transport between Poland and Germany, opening up new avenues for regional investments, job creation, and improved regional cooperation. Read more.
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EU Mission ‘Restore our Ocean and Waters': €106 million for 18 new projects for protection, conservation, depollution and innovation
The European Commission has announced 18 new projects, involving over 370 beneficiaries from 36 countries, that will receive over €106 million to support the EU Mission ‘Restore our Ocean and Waters'. These projects aim to achieve climate neutrality and restore nature by focusing on the protection and restoration of water biodiversity, pollution reduction, sustainable blue economy development, and the creation of a European Digital Twin of the Ocean. The initiatives span across all EU Member States and multiple bodies of water, and include a wide variety of solutions such as restoring degraded marine habitats, mitigating chemical pollution, creating sustainable algae-based products, and integrating biodiversity data into the Digital Twin Ocean. Read more.
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Commission welcomes provisional political agreement on EU Digital Identity Wallet, Europe's first trusted and secure digital identity app
The European Commission has announced a provisional political agreement on a legal framework for a European Digital Identity, featuring a personal digital wallet app. This app will provide secure, convenient access to public and private online services across Europe, giving Europeans control over their personal data. Already, €46 million has been invested in four large-scale pilots to test the system, with technical toolboxes available to Member States to help meet the implementation deadline. The framework will require formal approval by the European Parliament and the Council, with its enforcement starting 20 days after its publication in the Official Journal. Read more.
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Single Currency Package: new proposals to support the use of cash and to propose a framework for a digital euro
The European Commission has proposed two measures to maintain access to euro banknotes and coins across the euro area while laying the groundwork for a potential future digital euro. One proposal seeks to ensure the continued wide acceptance and accessibility of physical euro cash, while the other establishes a legal framework for a digital euro as a complement to traditional currency. This move is in response to the trend of increasing digital payments, a shift that was accelerated by the COVID-19 pandemic. Although the measures would legally enable the creation of a digital euro, the ultimate decision to issue it lies with the European Central Bank. Read more.
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Modernising payment services and opening financial services data: new opportunities for consumers and businesses
The European Commission has proposed new measures to modernize payment services and enhance consumer protection in response to the growing trend towards digital financial transactions, which totaled €240 trillion in the EU in 2021. The proposals include revising the Payment Services Directive (PSD2), to become PSD3 and a new Payment Services Regulation (PSR), aiming to combat fraud, improve consumer rights, level the playing field between banks and non-banks, and enhance open banking. Additionally, a legislative proposal for a framework for Financial Data Access is put forward, establishing clear rights and obligations around customer data sharing, giving customers full control over their data, and facilitating the emergence of innovative, competitively priced financial products and services. Read more.
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Data Act: Commission welcomes political agreement on rules for a fair and innovative data economy
The European Commission has welcomed a political agreement on the European Data Act, which aims to stimulate the EU's data economy by enhancing accessibility and utilization of industrial data and fostering a competitive European cloud market. Key measures include enabling users to access and share data generated by connected devices, providing protection from unfair contractual terms, allowing public sector bodies to use private sector data in emergencies, enabling customers to switch between cloud data-processing service providers, and promoting the development of data-sharing and processing standards. Following formal approval by the European Parliament and the Council, the Act will enter into force 20 days after its publication in the Official Journal. Read more.
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KSA: Emaar The Economic City sells plot to Saudi investors for $98m to create industrial hub
Emaar The Economic City, the entity developing King Abdullah Economic City (KAEC) in Saudi Arabia, has sold an undeveloped industrial plot to a consortium including a Public Investment Fund (PIF) subsidiary for $97.78 million. The sale aims to establish an industrial logistics hub within the special economic zone. Other buyers include Dar Al Himmah Projects, Zamil Group Real Estate Company, and Abdullah Ibrahim Alkhorayef Sons. The revenues from the deal will fund further infrastructure development, working capital, and some financial commitments. This sale aligns with Saudi Arabia's wider economic diversification efforts. Read more.
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KSA: PIF ranks top in Mideast, 7th worldwide for scoring high in GSR
Saudi Arabia’s Public Investment Fund (PIF) has been ranked first in the Middle East and seventh globally among 100 state-owned funds for its strong governance, sustainability, and resilience practices, according to the Global Sovereign Wealth Funds' evaluation. The PIF's rating reflects its pioneering role in sustainability, including its commitment to net-zero emissions by 2050, the sale of over 3.6 million tons of voluntary carbon credits, and its issuance of green bonds worth $8.5 billion and $5.5 billion in October 2022 and February 2023, respectively. These measures align with the PIF's aim to be a global investment powerhouse, driving the economic transformation of Saudi Arabia. Read more.
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KSA: Saudi Arabia’s unemployment rate falls to 5.1% in first quarter
Saudi Arabia has reported a fall in its overall unemployment rate to 5.1% in Q1 2023, a decrease of 0.9 percentage points YoY, according to the General Authority for Statistics. The labor force participation rate among Saudis increased by 2.3 percentage points during the same period. This development aligns with the goals of the Vision 2030 blueprint, which seeks to lower unemployment from 11.6% in 2016 to 7% in 2030. Notably, female labor force participation rose by 2.4 percentage points YoY to 36%. Despite this progress, the unemployment rate for Saudi males increased to 4.6%. The report also revealed that 94.1% of unemployed Saudis would accept jobs in the private sector. Read more.
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KSA: TotalEnergies completes financing of its first solar power plant in Saudi Arabia
French energy giant TotalEnergies, alongside a consortium including Japan's Toyota Tsusho and Saudi Arabia's Altaaqa Renewable Energy, has secured financial closure for a 119-megawatt solar power plant in Saudi Arabia. This marks TotalEnergies' first solar project in the Kingdom. The plant, set to be built by Chinese infrastructure company SEPCO, will be financed, owned, and operated by the consortium. It's expected to be operational by early 2025 in Wadi Al-Dawasir. The development is in line with Saudi Arabia's Vision 2030, which aims to increase domestic renewable energy generation to 50% by 2030, part of the country's broader goal to achieve net-zero emissions by 2060. Read more.
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KSA: Saudi Arabia launches sustainable agricultural challenge to optimize global crop yield
Saudi Arabia, in collaboration with Uplink, the World Economic Forum's open innovation platform, has launched the Smarter Climate Farmers Challenge, seeking innovators for climate-smart agriculture solutions. The initiative aims to enhance food production, improve farmers' resilience, and promote zero-emission practices. This commitment to sustainable agriculture is part of Saudi Arabia's broader goal to ensure food security while mitigating climate change. The country has already introduced initiatives like the Saudi Green Initiative, National Food Security Strategy, Water Conservation Program, and Middle East Green Initiative to promote sustainability and address food security challenges. Read more.
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KSA: King Fahd International Airport records 250k passengers in 7 days
King Fahd International Airport in Saudi Arabia saw an 11% increase in passenger numbers and a 15% increase in flights during the week-long Eid Al-Adha celebration compared to 2022, according to Dammam Airports Co. (DACO). The company also revealed a 12% year-on-year increase in flights since the beginning of 2023, attracting five new airlines and introducing 11 new direct destinations. DACO CEO Mohammed Al-Hassan highlighted the firm's commitment to enhancing travel experiences and expanding operations in line with Vision 2030 and the National Transport and Logistics Services Strategy. Read more.
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UAE: Mohammed Alsuwaidi appointed as UAE Minister of Investment
Mohammed Alsuwaidi, the managing director and CEO of Abu Dhabi-based investment firm ADQ, has been named the UAE's Minister of Investment. The appointment was announced by Sheikh Mohammed bin Rashid, the UAE's Prime Minister and Dubai's Ruler, who stated the new ministry's purpose is to develop the country's investment vision, stimulate the internal investment environment, and enhance the competitiveness of procedures and legislation to maintain the UAE as a prime global investment destination. Alsuwaidi, who has extensive experience across multiple sectors, also holds several positions, including chair of the Abu Dhabi National Energy Company and deputy chair of Masdar. Read more.
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UAE: AD Ports Group completes acquisition of Spanish logistics platform Noatum
Abu Dhabi's AD Ports Group has completed the acquisition of Spanish logistics platform Noatum, expanding its asset portfolio in 26 global markets. The Dh2.5 billion ($681 million) deal, financed through an acquisition loan, grants AD Ports full control of the company. This acquisition marks a significant milestone for AD Ports, combining two major industry players to form a global trade and logistics powerhouse. Noatum, with its extensive experience and capabilities, will now lead AD Ports Group's logistics cluster, integrating its operations and 2,800 employees immediately. Read more.
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UAE: UAE ranks first in Mena and second globally for workforce business skills
The UAE has ranked second globally for the business skills of its workforce, according to Coursera's Global Skills Report 2023. The study assessed over 124 million learners in 100 countries and found the UAE notably excelled in areas such as communication, leadership and management, human resources, strategy and operations, and entrepreneurship. While the UAE was the highest-ranked Middle Eastern and North African nation, it stood 32nd globally in terms of overall skills. Furthermore, the nation's efforts in fostering a knowledge-based economy, incentivizing professional growth with initiatives like the ten-year golden visa, and its focus on digital skills align well with future job trends. Read more.
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UAE: UAE economic outlook is 'positive', supported by strong domestic activity, IMF says
The International Monetary Fund (IMF) has given a positive economic outlook for the UAE, driven by robust domestic activity and effective Covid response. The country's economy grew by 7.9% in 2022, the fastest in over a decade, and is projected to expand by 3.3% this year. The IMF highlighted that strong reform efforts, comprehensive economic partnership agreements, and progress in AI and digitalisation will stimulate trade, integration in global value chains, and foreign direct investment. The UAE aims to double its economy to Dh3 trillion by 2031 by focusing on non-oil exports and tourism. The IMF also noted that banks in the UAE are well-capitalised and liquid. Read more.
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UAE: Abu Dhabi's non-oil economy grew 6.1% in Q1 with value hitting nine-year high
Abu Dhabi's non-oil economy grew by 6.1% annually in Q1 2023, the highest level in nine years, driven by the emirate's diversification efforts. This growth pushed the overall economy to expand by 3.9% during the same period. The non-oil GDP at constant prices reached Dh146 billion ($39.75 billion), contributing 52.8% to the total GDP, the highest in eight years. The growth was fuelled by strong performance in construction, wholesale and retail trade, transportation and storage, and financial and insurance services. These figures underscore Abu Dhabi's commitment to a diversified, knowledge-based economy. Read more.
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QATAR: Travel spending in Qatar hits $3.59bn in Q1
Qatar's travel spending increased by 28% YoY to QAR 13.1 billion ($3.59 billion) in Q1 2023, attributed to a surge in social, cultural, and other activities. Despite a 12.3% drop in transportation spending, revenues from travel during the period rose 52% YoY to QAR 6.8 billion. However, direct investments in Qatar decreased by 83.9% to QAR 717 million, while the country's direct foreign investments grew 29.6%. Export value also fell by 7%, and import value decreased by 10.4%. The country recorded its highest quarterly travel and transport revenues in Q4 2022, with QAR 32.4 billion, boosted by the World Cup event. Read more.
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QATAR: Qatar offers attractive opportunities for global investors
Qatar has topped the FDI Standouts Watchlist in 2023, reflecting a resilient economy attracting significant investments. According to Fitch Ratings, Qatar holds an AA- rating, buoyed by a strong sovereign net foreign asset position, flexible public finance structure, and high GDP per capita. Moody's praised Qatar's resilience against economic shocks, grounded in a robust sovereign balance sheet. The nation continues to implement measures to encourage economic growth and develop its entrepreneurial environment, including English common law, unrestricted currency transfers, up to 100% foreign ownership, and repatriation of profits. IPA Qatar reported QR108.43bn ($29.78bn) in capital expenditure and almost 14,000 new jobs from 135 FDI projects last year. Read more.
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QATAR: Qatar’s infrastructure pivotal for companies to drive strong businesses
Charbel Maakaron, Managing Partner at US law firm Crowell & Moring, highlighted the significance of Qatar's state-of-the-art infrastructure in driving strong businesses and trade activities. As the firm's only Middle Eastern office, its presence in Doha leverages the nation's robust economy, focusing on sectors such as sports, oil and gas, and education. The firm's clients span various industries, including oil and gas, education, infrastructure, aviation, and retail hospitality. Maakaron also noted the close trade ties between Qatar and the US, enhancing the firm's regional presence and work opportunities. With major events like the FIFA 2022 World Cup and rising projects in the oil and gas and healthcare sectors, the company anticipates more investment opportunities. Read more.
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QATAR: Qatar’s GDP price estimates at QR228bn: PSAAccording to the Planning and Statistics Authority (PSA), Qatar's GDP at current prices increased by 30.7% year-on-year to QR 228.423bn ($62.7bn) in Q3 2022, marking a 5.5% rise from the previous quarter. The data indicates significant growth in Mining and Quarrying activities, with their nominal gross value added (GVA) increasing by 56.2% year-on-year to QR105.896bn ($29bn). Meanwhile, the nominal GVA of Non-Mining and Quarrying activities rose by 14.5% year-on-year to QR122.527bn ($33.6bn). The data reflects the nation's robust economic performance and sectoral growth.
Read more.
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QATAR: Qatar’s oil and gas industry a key driving force to revitalise economy
Qatar is focusing on enhancing its renewable energy sector while maintaining a strong emphasis on its oil and gas activities, according to a report by the Energy Industries Council (EIC). QatarEnergy recently signed significant deals with Asian energy firms including Petrobangla and China National Petroleum Corporation (CNPC), catering to the region's growing demand for LNG. Moreover, Qatar plans to produce 5GW of solar power by 2035, with EPC contracts awarded for two solar projects in Ras Laffan and Mesaieed. Over the next four years, the country expects to significantly increase its LNG production, maintaining its position as one of the world's largest LNG exporters. Read more.
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OMAN: Oman’s GDP increases by 4.7% in Q1 to reach $22.6bn
Oman's gross domestic product (GDP) has reached OMR 8.7 billion ($22.6 billion) in Q1 2023, marking a 4.7% increase YoY, as per data from the National Centre of Statistics and Information. The rise is largely attributed to non-petroleum activities, which rose 4.6% YoY, while petroleum activities saw a 3.5% increase. Public spending also rose 3% to OMR 3.87 billion. A World Bank report projects that Oman will be the fastest-growing economy among the Gulf Cooperation Council countries in 2023, with an anticipated growth of 4.3%. Read more.
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OMAN: Oman to establish new economic city with two free zones
Oman is establishing the Khazaen Economic City and two associated free zones in the Governorate of South Al Batina, as per two royal decrees, in a bid to stimulate economic growth. The new projects will be overseen by the Public Authority for Special Economic Zones and Free Zones, and developed by Oman Logistics Company and Khazaen Economic City Company. This comes as the Sultanate continues to make strides in its economic diversification plans, boosted by favourable oil prices, fiscal reforms, and various agreements with GCC neighbours to enhance its economy and employment opportunities. Read more.
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OMAN: Oman's first public P2P crowdfunding campaign concludes successfully
Oman-based Ethis Investment Platform LLC (EthisX) has successfully concluded the Sultanate of Oman's first-ever public peer-to-peer (P2P) crowdfunding campaign, raising $130,000 for Rakwa Roastery. The funds will be used to purchase specialized packaging machinery, expand inventories, and enter new markets. EthisX's platform aims to support local small and medium enterprises (SMEs) by attracting investment from both domestic and international investors. The success of the campaign highlights the growing demand for ethical and Shari'a compliant investment opportunities in Oman and showcases the potential for Omani businesses to attract international investment. Read more.
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OMAN: Expo to spotlight Dhofar’s adventure tourism potential
The Small and Medium Enterprises Development Department in Dhofar Governorate has partnered with Al Kheyali Comprehensive Trading & Contracting Company to host the Dhofar International Exhibition, a weeklong event showcasing adventure tourism in the governorate. The exhibition, taking place from July 28 to August 3, 2023, is open to businesses and organizations involved in various industries such as caravan, camping, equestrian, marine sports, and more. Participants must be registered with the Small and Medium Enterprises Development Authority, with priority given to those holding a valid Entrepreneurship Card. The event offers networking opportunities and a platform for businesses to showcase their products and services. Registration deadline is July 8, 2023. Read more.
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OMAN: Oman set to launch new sector around creative and cultural Industries
The Omani government's decade-long effort to develop a new national economy centered around creative and cultural industries is entering a crucial phase. Led by the National Programme for Investment and Exports Development (Nazdaher), the initiative aims to achieve the objectives of Oman Vision 2040. The Ministry of Commerce, Industry and Investment Promotion has launched a tender to hire a consultancy firm that will help formulate a strategy to attract investment in the Creative and Cultural Industries (CCI) sector. This sector encompasses various domains, including books, music, film, architecture, and advertising. The selected consultant will define the sector's scope, develop investment guidelines, and collaborate with stakeholders to highlight Oman's competitive advantages. The consultant's findings will be presented at a workshop, paving the way for the launch of the CCI sector. The potential of creative and cultural industries to contribute to Oman's economic diversification has been emphasized by various reports, including one funded by the European Union. By strategically developing its creative industry, Oman aims to achieve unprecedented growth and establish itself as a regional hub in this sector. Read more.
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OMAN: Oman invites bids for new multipurpose port at Masirah
The Omani government has initiated a tender for the construction of a multipurpose port on Masirah Island, off the country's east coast. The new port aims to boost the growth of the island's fisheries and fish processing sectors and will also attract non-fisheries related investments such as marinas, aqua sports, marine tourism, and commercial activities. Local construction firms are invited to bid for the contract to build the mid-sized harbour, which will include breakwater arms, a dredged basin, a quay wall, and pontoons for various marine vessels. The port will be supported by land for buildings and utilities. Private investors are encouraged to establish commercial activities such as fish processing plants, repair workshops, and dhow tourism. The project is part of Oman's 10th Five-Year Plan and is expected to contribute to the country's socioeconomic development by further expanding the thriving fisheries sector, which saw significant growth in 2021. Read more.
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KUWAIT: Kuwait’s Q8 to build first hydrogen refueling station in Rome
Kuwait Petroleum International (Q8) and the Maire Group are building Rome's first circular hydrogen refueling station, marking a key step in Italy's energy transition plans. The station, set to be located on Via Ardeatina, is expected to reduce CO2 emissions by over 75% compared to traditional diesel and provide about 700 kg of hydrogen daily for private and public transport. This initiative aligns with Q8's strategy to offer clean and sustainable petroleum products and Italy's aim to build a sustainable transport network. The project, jointly funded by the partners and the EU's Fund for Future Generations, will use technology developed by MyRechemical for converting non-recyclable waste into circular hydrogen. Read more.
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KUWAIT: KOC undertakes a project to restore vegetation as part of KERP program
The Kuwait Oil Company (KOC) is embarking on a significant project to restore vegetation cover in northern and southern Kuwait as part of the Kuwait Environmental Rehabilitation Program. The aim is to improve the environment, combat climate change, and restore areas damaged during the Gulf War. The project includes soil rehabilitation and afforestation initiatives, with the goal of creating a greener Kuwait and enhancing biodiversity. KOC has launched a national initiative to support the desertification program and is working with various organizations to select and plant different types of shrubs, herbaceous plants, and trees. The project aligns with the United Nations' sustainable development goals and is expected to be completed by the first quarter of 2029. Read more.
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BAHRAIN: Bahrain to boost renewable energy share to 5% of electricity generation by 2025
Bahrain is ramping up efforts to increase renewable energy usage to 5% of total electricity generation by 2025, and 20% by 2035, in line with its National Energy Transition Plan. Kamal bin Ahmed Mohammed, president of Bahrain’s Electricity and Water Authority (EWA), stated that the measures include simplifying the application process and facilitating integration of renewable energy sources into the electricity network. The EWA has 54 contractors and 93 accredited consultants for distributing renewable energy and has digitized application stages via the Benayat online system. So far, more than 180 applications for renewable energy installation have been approved, totalling over 38 MW capacity, and over 150 MW is expected to be installed by 2026. Read more.
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BAHRAIN: Investcorp invests $100m in Italy-based communications and advocacy group
Bahrain-based asset manager Investcorp is purchasing a majority stake in Italy's SEC Newgate, a global strategic communications group, for $100 million. The transaction, which values SEC Newgate at over $250 million, is expected to close between Q3 and Q4 2023 and aligns with Investcorp's investment strategy of backing strong businesses in growing sectors. Nicola Ferraris, Investcorp’s managing director, will join SEC Newgate's board and the deal will support the company's global expansion and growth. SEC Newgate operates through 50 offices in 22 countries and advises over 1,500 companies. Read more.
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GCC: Halving gender pay gap may boost developed and emerging markets GDP by 6%
A report by Goldman Sachs suggests that reducing the wage and employment gap between men and women could enhance the GDP of developed and emerging markets by 5% to 6%. Completely eradicating these disparities could lead to a GDP increase of 10% in developed economies and 13% in emerging markets. The study emphasizes the necessity of fully utilizing and rewarding women's resources, particularly given shrinking working-age populations. However, challenges persist, including the impact of advanced technologies on labor markets and the underrepresentation of women in leadership roles, especially in the tech and finance sectors. The report recommends prioritizing education, implementing family-friendly policies, increasing pay gap transparency, and expanding the leadership pipeline to address these issues. Read more.
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GCC: Japan imports 97% oil from GCC countries in May
In May, Japan imported approximately 76 million barrels of crude oil, 97% of which came from Gulf Cooperation Council countries, with the UAE being the largest supplier at 43.4% of total imports. Saudi Arabia followed with 38.6%, while Kuwait, Qatar, Oman, and Bahrain made up the remainder. Japan's dependence on Arab oil remains significant due to ongoing embargoes on oil imports from Iran and Russia. Other regions, including Central and South America, the US, and Southeast Asia, accounted for just over 3% of Japan's crude oil imports. Japan relies on oil for around a third of its energy needs. Read more.
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