Week from 19 -26 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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EU invests €6.2 billion in sustainable, safe and efficient transport infrastructure
The EU Commission has allocated €6 billion in grants for 107 transport projects, focusing on greener railways, waterways, and maritime routes. Key initiatives include cross-border rail connections, upgrading ports for reduced emissions, modernizing waterway infrastructure, and implementing advanced transport systems. The aim is to enhance efficiency, safety, and environmental sustainability across Europe's transportation network. Read more.
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Speech by President von der Leyen at the Summit for a New Global Financing Pact
During the Summit for a New Global Financing Pact, the European Union presented three key points. Firstly, they introduced the Global Gateway program, a €300 billion investment initiative for renewable energy transitions and partnerships worldwide. Secondly, they proposed the Global Green Bond Initiative to attract private investment in climate finance for emerging markets and developing economies. This initiative aims to provide expertise, technical assistance, and financial support to encourage investments in green bonds, potentially attracting around $15 to $20 billion of sustainable investment. Lastly, the EU discussed the importance of global carbon pricing as an effective tool to reduce emissions and drive innovation. They suggested expanding carbon pricing globally, which could generate substantial private funding for climate finance. Read more.
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EU budget: Commission proposes to reinforce long-term EU budget to face most urgent challenges
The European Union (EU) is facing multiple challenges that have strained its budget and resources. The invasion of Ukraine, increased migration, inflation, supply chain disruptions, and the need for strategic technological investments have all put pressure on the EU's financial framework. To address these challenges, the EU has proposed targeted reinforcements in key areas. These include a €50 billion facility for Ukraine's immediate needs and modernization, €15 billion to address migration issues and the consequences of Russia's aggression, a Strategic Technologies for Europe Platform (STEP) to enhance competitiveness in critical sectors, and a mechanism to cover higher costs of NextGenerationEU due to interest rate surges. Additionally, adjustments will be made to the EU's administrative capacity. Read more.
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EU budget: Commission proposes Strategic Technologies for Europe Platform (STEP) to support European leadership on critical technologies
The European Union (EU) is aiming to strengthen the competitiveness of its industries through the green and digital transformations. However, the EU industry is facing numerous challenges such as inflation, labor shortages, supply chain disruptions, rising interest rates, and energy cost spikes. To support its industries, the EU has proposed the Strategic Technologies for Europe Platform (STEP). This platform will leverage existing EU instruments and allocate an additional €10 billion to promote investments in critical technologies. It will utilize programs like InvestEU, Innovation Fund, Horizon Europe, EU4Health, Digital Europe Programme, European Defence Fund, Recovery and Resilience Facility, and cohesion policy funds. The goal is to mobilize up to €160 billion in investments, enhancing European sovereignty and creating a level playing field. The STEP will establish a Sovereignty Seal and a Sovereignty portal to facilitate funding opportunities and promote synergies among existing programs. Read more.
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KSA: Saudi Arabia, Oman sign multiple MoUs at food show in Riyadh
Omani companies have signed multiple contracts and memoranda of understanding at the Saudi Food Show, highlighting the strengthening economic and investment ties between Saudi Arabia and Oman. The agreements signify the longstanding partnership between the two countries and are supported by their respective leaderships. The event provided an opportunity for Omani firms to increase their global presence and attract investors. The bilateral discussions and collaborations align with Oman Vision 2040 objectives and promote mutual interests and trade exchanges. The Saudi-Oman Investment Forum and exhibition also facilitated discussions and the signing of several MoUs, further enhancing economic partnerships between the two nations in various sectors. Read more.
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KSA: Asian influence crucial in global energy transition: Aramco CEO
Amin Nasser, CEO of Saudi Aramco, has called on Asian countries to play a crucial role in shaping a pragmatic and inclusive global energy transition. Speaking at the Energy Asia conference, Nasser emphasized the need for transition policies that reflect the unique priorities of the region, including environmental sustainability, energy security, and affordability. He highlighted the opportunity for Asia to assert its voice in the transition narrative and reiterated Saudi Aramco's commitment to balancing growing energy demands with sustainable solutions. Nasser also expressed optimism about the future outlook of Asia's oil market, citing healthy demand in developing countries like China and India. He urged a realistic view of the energy transition, emphasizing the importance of affordability, security of supplies, and sustainability for its success. Read more.
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KSA: GACA proposes draft economic regulations to improve aviation sector’s efficiency
Saudi Arabia's aviation sector is set to become more efficient and competitive with the introduction of new economic regulations proposed by the General Authority of Civil Aviation (GACA). The regulations aim to support the sector's growth, enhance passenger experience, and ensure transparency and fairness. They propose that the Saudi government retains ownership of airport lands while granting management rights to private entities through lease contracts, franchise rights, or public partnerships. The GACA will control fees for nonnavigational and navigational services, including space rentals, airport facilities, baggage handling, and security expenses. The regulations also require detailed information on each project's investment file, cost predictions, expected impact on fees, and risk assessment. The GACA aims to create a safe aviation environment and modern airport system that delivers exceptional services in line with international safety standards. Read more.
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KSA: Saudi Arabia attracts $61.8m investments in the food industry
The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed investment deals worth SR232 million ($61.8 million) to boost chocolate, yogurt, and fish production in Saudi Arabia. The contracts cover 99,400 sq. meters of industrial land and primarily benefit the food and beverage sector. These agreements align with the National Industrial Strategy and Saudi Vision 2023, aiming to achieve food security and attract $20 billion of investment into the sector by 2035. The deals include investments in milk and yogurt production, cocoa and chocolate manufacturing, fish preservation, and the manufacture of various products. MODON has been actively promoting the localization of the food and beverage industry in Saudi Arabia, with plans to increase the number of food factories in the country. Read more.
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KSA: Saudi Arabia’s financial market ranks 3rd among G20 in competitiveness indicators
Saudi Arabia's financial market has made significant progress, advancing to the third position in competitiveness indicators among G20 nations, according to the IMD World Competitiveness Yearbook for 2023. The Kingdom's performance highlights the efforts of the Capital Market Authority (CMA) in implementing global best practices. Saudi Arabia ranked first in corporate boards and second in capital markets, shareholders' rights, and venture capital among G20 countries. It also ranked third globally in stock market capitalization, surpassing advanced nations. The CMA's initiatives to improve the capital market sector and implement regulations have contributed to this achievement. The Saudi capital market saw a surge in initial public offerings in 2022, reflecting the country's aim to establish an advanced and attractive market for local and international capital. Read more.
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KSA: Saudi Arabia and Estonia form business council to bolster economic ties
Saudi Arabia's Investment Minister visited Estonia to strengthen strategic partnerships and explore investment opportunities. The visit resulted in the signing of several agreements, including the establishment of a business council between Saudi and Estonian chambers of commerce. Saudi companies signed memorandums of understanding with Estonian counterparts, covering areas such as deep-tech exploration, robotics, autonomous systems, and capital management. The Estonian-Saudi Investment Forum provided a platform for government officials and private sector leaders to discuss funding opportunities in technology, startups, and the energy transition. The visits demonstrate a commitment to enhancing bilateral relations, with trade between the two countries reaching $412 million in 2022. Read more.
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KSA: KPMG finds 74% of Saudi CEOs confident about Kingdom’s growth over next 3 years
According to a survey by KPMG, the majority of CEOs in Saudi Arabia are optimistic about the Kingdom's economic growth over the next three years, despite inflation and geopolitical tensions. 74% of Saudi CEOs are confident about the country's economic progress, compared to 60% who are confident about global growth. Only 20% of Saudi CEOs anticipate a recession in the coming year, with most expecting it to be mild and short. Economic uncertainty, inflation, and rising interest rates are the top concerns for CEOs in Saudi Arabia and globally. While Saudi CEOs are partially convinced about the financial benefits of environmental, social, and governance (ESG) programs, 34% of them plan to invest at least 6% of their revenues in sustainability-related initiatives. Additionally, Saudi CEOs express a strong interest in investing in digital innovation to combat digital obsolescence. Read more.
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KSA: Saudi Space Agency meets Airbus to discuss collaboration opportunities
The Saudi Space Agency and Airbus discussed potential collaborations during a meeting at the Paris Air Show. The focus was on developing the space sector and investing in joint projects. The Saudi Space Agency aims to achieve shared economic and strategic objectives with Airbus. The recent successful mission of two Saudi astronauts to the International Space Station demonstrates the country's progress in space exploration. The mission involved conducting research projects and experiments, including involving school students across the Kingdom. The achievements of the Saudi space mission are seen as a source of pride with the support of Crown Prince Mohammed bin Salman. 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, reaching its highest level in nine years. This strong growth, supported by diversification efforts, contributed to the overall economy expanding by 3.9%. Non-oil GDP reached AED 146 billion, with the construction, wholesale and retail trade, transportation and storage, and financial and insurance services sectors driving the growth. Abu Dhabi is committed to strengthening its economic scene and achieving a strong, stable, and sustainable knowledge-based economy. Despite global challenges, the non-oil sectors have demonstrated resilience and robust growth. Read more.
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UAE: AD Ports and Premier Marina in joint venture to offer drydock services
AD Ports Group and Premier Marine Engineering Services have formed a joint venture called Safeen Drydocks to meet the increasing demand from regional and international maritime operators. The venture, with a 51% ownership by AD Ports Group and 49% by Premier Marine, will provide services such as drydocking, afloat repairs, ship building, and refurbishment. Located at Khalifa Port, Safeen Drydocks will have a shipyard, repair facility, quay wall, and floating drydock. The establishment of Safeen Drydocks expands the scope of services and strengthens the ability to serve the regional maritime industry. The floating dry dock is expected to commence operations next month. Read more.
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UAE: UAE economy grew 7.9% in 2022 amid diversification strategy
The UAE's gross domestic product (GDP) reached Dh1.62 trillion ($442 billion) in 2022, with 7.9% annual growth, driven by the non-oil sector as part of its diversification strategy. The country's economy has rebounded strongly from the Covid-19 pandemic, benefiting from higher oil prices and measures to mitigate the impact. The government's flexible economic policies, including 100% foreign ownership and initiatives to attract talent and skills, have contributed to economic resilience and enhanced competitiveness. Non-oil GDP experienced positive growth in all vital sectors, while non-oil foreign trade crossed Dh2.2 trillion. The UAE aims to double its economy's size to Dh3 trillion by 2031, focusing on non-oil exports and the tourism sector. Read more.
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UAE: Abu Dhabi Chamber of Commerce and Industry appoints Ahmed Khalifa Al Qubaisi as CEO
Ahmed Khalifa Al Qubaisi has been appointed as the new CEO of the Abu Dhabi Chamber of Commerce and Industry (ADCCI), as part of efforts to expand the emirate's non-oil industries and strengthen the role of the private sector. Al Qubaisi's focus will be on establishing a resilient and interconnected business community and positioning Abu Dhabi as the preferred destination for businesses in the Middle East and North Africa region. The appointment aligns with the ADCCI's three-year strategy to boost the private sector's contribution to the economy and increase foreign direct investment. Al Qubaisi brings extensive experience in business, investment, and strategy to his new role. Read more.
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UAE: UAE Central Bank raises non-oil economic growth forecast for 2023 on tourism boost
The UAE Central Bank has revised its forecast for the country's non-oil economic growth to 4.5% for 2023, up from 4.2% in March, due to a surge in the travel and tourism industry. The banking regulator expects strong momentum in the non-oil sector, driven by the expansion of strategic industries, foreign direct investment, and growth in the property sector. The travel and tourism sector is projected to contribute 10% to the UAE's economy this year. Meanwhile, the Central Bank marginally lowered its inflation projections for 2023 to 3.1% and projected a further slowdown to 2.6% in 2024. Read more.
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UAE: Sheikh Hamdan launches Dubai’s Digital Strategy
Dubai's Crown Prince, Sheikh Hamdan bin Mohammed, has launched Dubai's Digital Strategy, aiming to achieve comprehensive digital transformation in the emirate. The strategy focuses on seven pillars, including digital city, digital economy, and cybersecurity. Goals include enhancing the digital economy, increasing digital well-being, and launching seamless digital city experiences. Dubai has already achieved a high digitization rate, with 99.5% of government services digitalized. Sheikh Hamdan also launched the Digital City Experiences initiative to provide consistent digital experiences to residents, visitors, and entrepreneurs. The strategy is a significant milestone in Dubai's digital transformation. Read more.
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QATAR: Qatar sees 151% surge in cruise visitors
Qatar's tourism industry continues to thrive as it welcomed 253,191 cruise visitors during the 2022/23 season, marking a 151% increase from the previous season. Despite the delayed start due to hosting the FIFA World Cup, Qatar saw significant growth in cruise ship arrivals and passenger numbers. The country's Doha Port has been renovated to accommodate two megaships at a time and up to 12,000 people daily, highlighting the importance of the cruise sector in Qatar's long-term tourism goals. Germany, Italy, Russia, and the UK were the top countries of origin for cruise passengers. The upcoming Qatar Cruise Season 2023/24 will commence in October with a new Grand Terminal providing modern facilities for visitors. Read more.
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QATAR: 'Partnering with Qatari companies augments stronger trade relations'
Qatar's resilient trading and investment activities have positioned it as a significant business hub in the region, according to Tan Soon Kim, Deputy CEO (Global Markets) at Enterprise Singapore. Qatar's goal of diversifying its economy beyond oil and gas presents a wide range of opportunities for international firms, particularly in sectors such as healthcare, education, urban solutions, and logistics. A Memorandum of Understanding (MoU) signed between Enterprise Singapore and Qatar Research, Director, and Innovation Council aims to revitalize both economies and promote collaboration in areas such as FoodTech, MedTech, research, science, and education. Singapore is highlighted as a favorable hub for Qatari companies to invest in and expand their businesses in Southeast Asia, benefiting from the region's population of 600 million and Singapore's financial, transport, and logistics connectivity. Read more.
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QATAR: ‘Building R&D strategies in private sectors add huge value to economy’
The increasing number of Research and Development (R&D) projects in Qatar is expected to have a positive impact on the country's economy and industry, according to Qatar Research, Development and Innovation (QRDI) Council Secretary General Eng. Omar Al Ansari. Strategic partnerships with international firms will create value for the economy, generate job opportunities, and foster innovation. A recent Memorandum of Understanding (MoU) between QRDI Council and Enterprise Singapore aims to promote innovative ecosystems in both countries, addressing common challenges and creating job opportunities in R&D activities. QRDI Council plays a key role in enhancing education systems and research innovation, and partnerships with international organizations like Enterprise Singapore will facilitate knowledge exchange and talent development. The collaboration will encourage Qatari and Singaporean companies to engage in R&D projects in both countries, attracting talents and promoting technological advancements. Read more.
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QATAR: Qatar’s economy continues thriving to achieve QNV 2030
Qatar's hosting of the 2022 FIFA World Cup has played a significant role in diversifying its economy and achieving its long-term development goals outlined in the Qatar National Vision 2030. The preparations for the tournament, which involved substantial investments in infrastructure and major projects, have stimulated various economic sectors and led to economic diversification. The Qatari economy has experienced significant growth, with the non-hydrocarbon sector contributing over 63% of the total output in 2022. The World Cup has also enhanced Qatar's competitiveness, attracted foreign investment, and created job opportunities. Legislative reforms aimed at creating a favorable business and investment climate have further contributed to the country's economic development. These reforms include permitting 100% foreign ownership in various sectors, granting non-Qatari eligibility to own real estate, implementing labor market reforms, and digitizing government services. Overall, the World Cup has propelled Qatar's economy forward and positioned it as an attractive destination for investment and sustainable development. Read more.
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QATAR: Qatar among top countries in economic performance
Qatar has significantly improved its ranking in the World Competitiveness Yearbook 2023, moving from 18th to 12th place out of 64 high-developed countries. Factors contributing to the higher ranking include strong economic performance, low unemployment rate, population growth, and favorable tax policies. Qatar excelled in areas such as economic performance, government efficiency, business efficiency, and cyber security. The country's focus on Qatar National Vision 2030 and its national development strategies have played a key role in driving economic growth, improving infrastructure, and diversifying the economy. Read more.
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OMAN: Oman launches new bid round for green hydrogen blocks
Oman has opened registrations for a new round of bidding on three large land blocks totaling 960 square kilometers for green hydrogen projects in Dhofar Governorate. This launch marks the second round of bidding, following the conclusion of Round 1. The Ministry of Energy and Minerals and Hydrogen Oman (Hydrom) are overseeing the auction system. Interested developers have around 10 weeks to submit their qualifications, with the Request for Proposals set to be launched in September. The addition of these new blocks will contribute to Oman's goal of producing over 1 million tonnes of green hydrogen annually by 2030. Read more.
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OMAN: Oman strengthens intellectual property protection for economic growth and innovation
Oman has made significant efforts to protect intellectual property rights, aligning with international standards and joining treaties and agreements such as the TRIPS Agreement and the Berne Convention. The Ministry of Commerce, Industry, and Investment Promotion plays a crucial role in preserving and promoting intellectual property, encouraging innovation, and ensuring fair market competition. The government has enacted legislation and established the National Intellectual Property Office to register patents, trademarks, and copyrights and provide protection services. Awareness campaigns and educational initiatives have been implemented to raise awareness among innovators and businesses. Oman aims to integrate intellectual property into education curricula and enhance capacity building through partnerships with WIPO. The government also seeks to strengthen administrative infrastructure for the creative industries and improve the intellectual property system through national strategies and workshops. These efforts aim to foster economic diversification and create an environment conducive to investment and innovation. Read more.
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OMAN: MDO plans new mining port to unlock Dhofar’s huge mineral wealth
Minerals Development Oman (MDO) is set to begin construction on the Al Shuwaimiyah Industrial Minerals Complex in Dhofar Governorate next year. The project aims to unlock vast limestone, dolomite, and gypsum resources in the region. The complex will process these minerals for domestic industries or export them to markets in India and Southeast Asia via a new deep-sea port. MDO has conducted feasibility studies and obtained approval for the port's establishment. The project includes three mega-quarries and a deep mining port capable of handling large volumes of minerals. MDO is seeking a strategic international partner to support the project's development and construction. Read more.
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OMAN: Oman’s GDP at current prices up by 7.4%
Oman's GDP at current prices increased by 7.4% in Q1 2023, reaching RO 10.426 billion. The growth was driven by the non-oil sector, which expanded by 6.7%, supported by manufacturing, construction, and finance. The oil sector also grew by 6.1%, attributed to increased crude oil production. Industrial activities, agriculture, forestry, fishing, and service activities all experienced growth. Oman's strong economic performance in Q1 2023 bodes well for the country's overall economic outlook, supported by infrastructure investments and the implementation of Oman Vision 2024. Read more.
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OMAN: The SME Development Authority Collaborates with Bahrain’s Hope Ventures to Expand Beban TV Show to Oman
The SME Development Authority in Oman is partnering with Hope Ventures to expand the entrepreneurship-themed reality TV show, Beban, to the Sultanate. The show features entrepreneurs pitching their businesses to a panel of investors for equity investment and business opportunities. The collaboration aims to support Omani small and medium enterprises by providing access to investors and training opportunities, as well as regional exposure through the show. Successful co-investments in GCC-based startups from previous seasons have exceeded $6 million. Entrepreneurs in Oman are encouraged to apply for season 3 of Beban through an evaluation process that includes screening, evaluation, training, and final selection stages. The application deadline is July 6th. Read more.
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OMAN: How Mena countries can develop large and viable hydrogen industries
The Sultanate of Oman is positioning itself as a key player in the production of green hydrogen, with plans to produce significant amounts of the fuel using renewable energy sources. The country aims to become a major exporter of hydrogen by 2030, potentially becoming the largest hydrogen exporter in the Middle East. Oman's strategic location, ample renewable resources, and access to markets make it an attractive destination for hydrogen production. However, challenges remain, including the need to create local value and develop domestic markets for hydrogen. The country is exploring various options, including investing in infrastructure, technology development, pipeline networks, and domestic use of hydrogen in industries such as steel production and transportation. Read more.
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KUWAIT: Kuwait Ranks 38th in 2023 Global Competitiveness Index
Kuwait has entered the 2023 Global Competitiveness Index for the first time, ranking 38th globally and fifth in the Arab world. The index considers factors such as economic performance, government effectiveness, business management efficiency, and infrastructure. Saudi Arabia, Qatar, Bahrain, and the UAE also ranked high in the Arab world. Denmark maintained the top position globally, while South American countries occupied the bottom positions. Kuwait's entry in the index reflects its progress in various competitiveness components and highlights the region's overall economic performance and competitiveness. Read more.
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KUWAIT: Zain showcases strategic efforts to digitalize local energy sector
Zain, a leading telecommunications company in Kuwait, sponsored the book launch and awards ceremony of The Energy Year magazine, highlighting its commitment to supporting digital transformation in the energy sector. The event recognized companies contributing to the development of Kuwait's energy sector, with Zain showcasing its strategic efforts in digitalization through investments in technologies like 5G, drones, and cloud services. Zain emphasized the importance of embracing digitalization in the energy industry and offered its expertise in implementing digital strategies and providing cybersecurity solutions. The company's partnership with the Government of Kuwait in the smart meters project was also highlighted. Zain aims to contribute to Kuwait's New Kuwait 2035 vision and continues to invest in capacity-building to achieve its goals. The Energy Year magazine focuses on digital transformation in the local oil and gas sector. Read more.
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BAHRAIN: Alba: first company in Bahrain to use Solar-Electric powered industrial personnel carriers
Aluminium Bahrain (Alba) is taking steps towards carbon neutrality with the commissioning of three solar charging stations for electric vehicles and solar-electric powered industrial personnel carriers within its premises. The stations, equipped with battery storage systems, are expected to save around 110,000 KWhr per year and reduce 42 tonnes of CO2 emissions. Additionally, Alba has acquired three solar-electric powered industrial PCs, resulting in a daily fuel saving of 9.9 liters per PC and an annual reduction of approximately 25 tonnes of CO2. Alba's efforts align with its ESG Roadmap and support the Kingdom of Bahrain's goal of achieving net-zero emissions by 2060. Read more.
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BAHRAIN: Bahrain & UAE organize Integrated Industrial Partnership workshop
The Ministry of Industry and Commerce in Bahrain, in collaboration with the UAE Ministry of Industry and Advanced Technology, held a workshop on the "Integrated Industrial Partnership for Sustainable Economic Development." The workshop aimed to introduce new companies to the partnership, collect views on enablers and project proposals, and present the UAE ADQ Holding Company, which has allocated a $10 billion investment fund for partnership projects. Bahrain's participation in this partnership reflects its commitment to economic diversification and the development of the industrial sector. The workshop was attended by representatives from the private and government sectors in Bahrain. The partnership, which includes Bahrain, the UAE, Jordan, and Egypt, aims to secure the supply chain, promote self-sufficiency, localize industries, and create sustainable economic development and job opportunities in various industries. Read more.
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GCC: Fossil fuel demand unchanged in 2022 despite record renewables growth, report says
Global energy demand increased by 1% in 2022, with fossil fuels still dominating at 82% of the total supply. However, solar and wind saw significant growth, reaching a record 12% share of power generation. Renewables, excluding hydropower, met 84% of net electricity demand growth. Despite this progress, global energy-related greenhouse gas emissions continued to rise, highlighting the need for further action to align with the Paris Agreement. Natural gas prices surged due to Russia's invasion of Ukraine, leading to increased coal usage. Global oil demand is expected to slow down by 2028 as the transition to cleaner energy accelerates. Renewable energy capacity saw significant growth, with renewables accounting for 83% of all new capacity added in 2022. Read more.
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