Supply chain reforms, demographic shifts among key investment drivers: Al-Falih 

Supply chain reforms, demographic shifts among key investment drivers: Al-Falih 
Khalid Al-Falih speaking at the 28th World Investment Conference in Riyadh. Screenshot
Short Url
Updated 25 November 2024
Follow

Supply chain reforms, demographic shifts among key investment drivers: Al-Falih 

Supply chain reforms, demographic shifts among key investment drivers: Al-Falih 

RIYADH: Sustainability, technological disruption, and supply chain decentralization are redefining global investment dynamics, Saudi Arabia’s investment minister said at an event in Riyadh.

Speaking at the 28th World Investment Conference in Riyadh, Khalid Al-Falih noted that while the global economy is recovering from headwinds, challenges such as geopolitical tensions continue to create instability. 

Running from Nov. 25 to 27, WIC 2024 is focused on digital transformation and sustainable growth, and unites global leaders to discuss investment policies shaping future economies. 

Addressing attendees, Al-Falih said: “There are four major trends that will play a crucial role in shaping the global investment landscape. The first is the importance of investment in sustainability. The second is the unprecedented technological disruption unfolding in front of our own eyes.” 

He added: “The third global trend is the steady reconfiguration of the global supply chain, with the decentralization of supply chains creating hubs in emerging regions that offer new opportunities for investments, infrastructure, and new production capacity.” 

According to the minister, the fourth global trend is demographics, where entities will invest money where talent is available and consumption is high. 

Al-Falih acknowledged both opportunities and challenges for global investment, citing issues such as geopolitical instability and trade barriers but emphasized progress in inflation containment, capital market growth, and consumer confidence restoration. 

“We are confronted with crosswinds to global investments — driven forward on one hand by the tech revolution, booming stock markets, and the onset of promising monetary policies, while constrained on the other hand by geopolitical instabilities, trade barriers, and talent and skill shortages,” said Al-Falih. 

“Let me remind all of us that investments require sound and deliberate stewardship,” he said. 




Saudi Arabia’s investment minister Khalid Al-Falih. Screenshot

Saudi Arabia has made strides under Vision 2030, with gross domestic product up 70 percent to $1.1 trillion, with half of that driven by non-oil activities. 

Al-Falih said that foreign direct investment flows have tripled, and over 550 international firms have established regional headquarters in the Kingdom, surpassing targets. 

This came as the Kingdom offered businesses various incentives if they relocated their Middle East-bases to Riyadh, including a 30-year exemption from corporate income tax and access to discounts and support services. 

In November, US-based Morgan Stanley secured approval to establish its regional headquarters in Saudi Arabia, followed by Citi Group. 

The Kingdom also launched the premium residency program to welcome international investors and talented people. “In the last three years alone, 1,200 investors have been awarded these premium residencies, allowing them to be treated as if they are in their own countries,” said Khalid Al-Falih. 

Global appreciation 

At the conference’s opening ceremony, Nivruti Rai, managing director and CEO of Invest India and president of the World Association of Investment Promotion Agencies, lauded Saudi Arabia’s diversification efforts. 

“Vision 2030 entails growth through technology, growth through greenification, and growth that also enables tourism, including spiritual tourism,” said Rai. 

She added: “In 1938, Saudi Arabia discovered oil. I am so happy that today we are dreaming of NEOM, a smart city built on technology. To enable that, the one way — and only way — is to unite and ignite the passion that drives digital transformation and the passion that harnesses sustainability.” 




Nivruti Rai, managing director and CEO of Invest India. Screenshot

Rai also highlighted the importance of a green future, noting the need for a mix of energy sources to sustain growth. 

“We all have to work toward greenification, because the world knows that power is directly proportional to GDP. The input to growth is power,” she said. 

Emergence of new markets 

James Zhan, chair and executive director of the World Investment Conference, emphasized the transformative trends shaping the global economy. 

“We are now witnessing the emergence of new markets, new funding sources, new business models, and new industries. All this offers immense potential for global investment promotion and business facilitation,” said Zhan. 

WAIPA’s executive director and CEO, Ismail Ersahin, stressed the significance of WIC in fostering collaboration and actionable outcomes. 

“World Investment Conference is not just a place where we share our experiences, but now we are also addressing investors and telling them, ‘Here are the opportunities, so you should participate,’” said Ersahin. 

New investment paradigms 

In a separate press statement,  Ersahin said that WIC 2024 comes at an “important moment in the global economy,” noting that as the international community navigates the nuances of digital transformation and the push for sustainable growth, the event serves as an essential platform for leaders to explore new investment paradigms shaping the future. 

He added: “The need for investment promotion agencies to drive economic development and foster foreign direct investment has never been more critical. By bringing together key global stakeholders in international development and investment, we are creating an environment where strategic partnerships and actionable solutions can flourish.” 

The conference is hosted by Invest Saudi, the national investment promotion brand overseen by the Saudi Investment Promotion Authority, and focuses on scaling investment opportunities while offering participants practical tools and connections to drive impactful outcomes.


Lucid CEO steps down, company expects to more than double vehicle production this year

Lucid CEO steps down, company expects to more than double vehicle production this year
Updated 6 sec ago
Follow

Lucid CEO steps down, company expects to more than double vehicle production this year

Lucid CEO steps down, company expects to more than double vehicle production this year

BENGALURU: Electric vehicle maker Lucid Group said on Tuesday that Peter Rawlinson, its CEO for over 5 years, is stepping down from the role, and forecast its vehicle production will more than double this year, sending the company’s shares up 10 percent in extended trading.

Through his 12-year tenure as part of the top brass at Lucid, Rawlinson helped launch the company’s Air models and guided it through its public offering.

The company’s operating chief, Marc Winterhoff, will take the position of interim CEO.

Saudi Arabia’s Public Investment Fund is the majority shareholder in Lucid Group via Ayar Third Investment Co., and in October it invested an additional $1.5 billion into the EV producer.

“Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid,” Rawlinson said.

The firm also forecast vehicle production this year to be around 20,000, compared with around 9,000 cars it made in 2024.

Andres Sheppard, senior equity analyst at Cantor Fitzgerald, said the CEO transition is “surprising” but not unexpected given the company’s previous underperformances, adding that the production forecast is “encouraging.”

The company hired veteran finance professional Taoufiq Boussaid as its chief financial officer last month. Boussaid previously helped reduce debt load for his former company.

As the EV demand in the US remains uncertain, Lucid has been trying to diversify its product lineup and step into the SUV market with the Gravity model, going toe-to-toe with Tesla’s model X and Rivian’s R1S vehicles.

The success of the Gravity SUV is seen as crucial to Lucid’s long-term outlook, as it burns through cash ramping up production while its Air sedans have seen price cuts due to slower demand.

“They (Lucid) still have an amazing product. Now it’s just a matter of can they turn the company around, can they increase demand and production with the Gravity, and really that’s going to bridge the gap to their mid-size vehicle in 2026,” Sheppard said.

The company continues to lose tens of thousands of dollars per vehicle, while rivals such as Rivian move aggressively to cut costs in a bid to make profits.

Lucid reported revenue of $234.5 million, beating Wall Street expectations of $214.2 million, according to data compiled by LSEG.

It posted a loss of $397.2 million in the quarter ended Dec. 31, compared with a loss of $653.8 million a year ago.

Demand for pure battery cars in the US has been slow as people gravitate more toward cheaper hybrids owing to high interest rates and economic uncertainty.


Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 
Updated 50 min 28 sec ago
Follow

Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

Saudi Arabia raises $2.36bn in euro bonds, including inaugural green tranche 

RIYADH: Saudi Arabia has raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program. 

In a press statement, the Kingdom’s National Debt Management Center said the offering, split into two tranches, saw an oversubscription of four times the issuance size, attracting around €10 billion in orders. The green tranche, valued at €1.5 billion, carries a seven-year maturity, while the second tranche, worth €750 million, matures in 12 years. 

This marks the first time Saudi Arabia has issued a green euro bond, aligning with its broader sustainability strategy under the Financial Sector Development Program. The issuance is a step toward the Kingdom’s goal of achieving net-zero emissions and reflects its commitment to sustainable financing, NDMC said. 

“It also highlights the Kingdom’s efforts to investors and market participants, representing a significant step toward realizing the objectives of Saudi Vision 2030,” it added.   

Earlier this month, Muhannad Mufti, NDMC’s chief of portfolio management, said at the Capital Markets Forum that Saudi Arabia is considering issuing green bonds in international markets in 2025. 

The Kingdom’s debt market has grown significantly in recent years, drawing investor interest in debt instruments amid rising interest rates. 

In December, a report by Kamco Invest projected that Saudi Arabia would account for the largest share of bond and sukuk maturities in the Gulf Cooperation Council region, reaching $168 billion between 2025 and 2029. Of this, government-issued bonds and sukuk are expected to total $110.2 billion. 

Another report by Fitch Ratings noted that the GCC’s debt capital market surpassed the $1 trillion outstanding mark by the end of November 2024. 

Meanwhile, NDMC completed its February issuance of riyal-denominated sukuk at SR3.07 billion ($818 million). The Kingdom raised SR3.72 billion in sukuk in January, SR11.59 billion in December, and SR3.41 billion in November.


Pakistan in talks with IMF for up to $1.5 billion in climate financing – official

Pakistan in talks with IMF for up to $1.5 billion in climate financing – official
Updated 26 February 2025
Follow

Pakistan in talks with IMF for up to $1.5 billion in climate financing – official

Pakistan in talks with IMF for up to $1.5 billion in climate financing – official
  • Negotiations with a four-member team currently visiting Islamabad are likely to conclude by Friday
  • IMF’s Resilience and Sustainability Facility was introduced in 2022 to help climate vulnerable nations

KARACHI: Pakistan is negotiating for additional financing of $1 billion to $1.5 billion from the International Monetary Fund (IMF) to strengthen climate resilience, a senior government functionary said on Tuesday night, as discussions between the two sides continue over the issue.

Last year, Pakistan secured a $7 billion loan under the Extended Fund Facility (EFF) to continue structural reforms and consolidate macroeconomic gains achieved in the past two years through stringent financial measures.

Ranked among the ten most vulnerable countries to climate change, Pakistan has suffered extreme weather events, including floods, droughts and heatwaves, causing significant loss of life in recent years along with billions of dollars in damage to infrastructure. The 2022 floods alone inflicted losses exceeding $35 billion, prompting the government to seek international assistance for rebuilding homes and public property while investing in climate resilience projects.

Islamabad is now looking to tap into the IMF’s climate financing under the Resilience and Sustainability Facility (RSF) and is engaged in talks with a four-member technical team that arrived in the capital on Monday.

“The IMF team is here and discussions are underway for climate financing,” said a senior government official privy to the talks, speaking on condition of anonymity. “Pakistan is seeking about $1 billion to $1.5 billion from the Fund.”

He added the ongoing discussions were expected to conclude “by Friday,” with further details likely to emerge by then.

The RSF, introduced in 2022, aims to provide longer-term, affordable financing to IMF member states facing climate-related and sustainability challenges.

Countries qualify based on their vulnerability to climate shocks and commitment to policy reforms that address these risks and enhance resilience.

The facility typically requires nations to adopt structural policies, such as regulatory reforms and climate adaptation measures, which are monitored periodically to ensure compliance with agreed objectives before disbursements are approved.

Meanwhile, another IMF team is expected to arrive in Pakistan at the beginning of March to conduct a biannual review under the $7 billion EFF program.


Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service
Updated 25 February 2025
Follow

Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

JEDDAH: Saudi Arabia’s maritime connectivity with Syria and Turkiye is set to improve with the launch of the EXS6 shipping service, strengthening the Kingdom’s trade links with international markets.

Saudi Ports Authority, known as Mawani, announced on Feb. 25 the addition of a new shipping service by Caerus, which will connect Jeddah Islamic Port with İskenderun Port in Turkiye and Latakia Port in Syria — offering a capacity of 858 twenty-foot equivalent units. 

This will enhance the terminal’s competitive advantage, improve maritime connectivity, support national exports and imports, and strengthen maritime ties between Saudi Arabia and Syria.

According to Mawani’s statement, the service launch also maximizes Jeddah’s port competitive value.

The development aligns with the authority’s strategy to improve the Kingdom’s standing in the global maritime connectivity index, optimize port operations, and strengthen the nation’s trade ties with international markets.

It also supports the country’s National Transport and Logistics Strategy — a comprehensive plan designed to transform Saudi Arabia into a global logistics hub, enhancing its position as a key international trade and transport center. 

Mawani, which recently earned the bronze level in the 2024 King Abdulaziz Quality Award for the government sector, emphasized its role in advancing the development of Saudi ports through strategic partnerships with major international shipping lines. These efforts are enhancing the global standing of the ports, expanding maritime trade routes, and improving infrastructure and operational efficiency.

Earlier in February, Mawani introduced five new shipping services by Hapag-Lloyd and Maersk at Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port, aimed at strengthening the Kingdom’s ports and boosting their regional and global competitiveness.

The new services link these terminals to key international destinations, including Port Said in Egypt, Morocco’s Tangier, and Algeciras in Spain. The destinations also include Aqaba in Jordan, Jebel Ali in the UAE, and Mundra and Pipavav of India, as well as Salalah in Oman, with a combined capacity of 19,869 TEUs.

Jeddah Islamic Port has been chosen as the central hub for the “Gemini” collaboration between Hapag-Lloyd and Maersk, further cementing Saudi ports’ role as a logistics hub bridging three continents. This move enhances cargo-handling efficiency, supports trade growth, and drives economic development, Mawani said.


Australian firms set sights on Saudi construction sector as trade ties deepen 

Australian firms set sights on Saudi construction sector as trade ties deepen 
Updated 25 February 2025
Follow

Australian firms set sights on Saudi construction sector as trade ties deepen 

Australian firms set sights on Saudi construction sector as trade ties deepen 

RIYADH: Saudi Arabia’s giga and megaprojects are drawing fresh interest from Australian businesses, with over 90 companies exploring new partnership opportunities to expand their footprint in the Kingdom’s booming construction sector. 

At a business-to-business meeting hosted by the Australian Saudi Business Council at the Federation of Saudi Chambers, discussions focused on how Australian firms could leverage their expertise in infrastructure, sustainable construction, and smart city technologies to support Saudi Arabia’s Vision 2030 transformation.  

The event featured a delegation from the New South Wales Government, which is also participating in the Big 5 construction exhibition. 

This comes as Saudi-Australian trade relations continue on an upward trajectory, with trade volume reaching approximately $1.92 billion in 2023. Australia exported $1.07 billion worth of goods to Saudi Arabia and imported $847 million, according to the Observatory of Economic Complexity, an online data visualization and distribution platform. 

“Construction remains a major sector of opportunity, with over 11,000 Australians currently working in Saudi Arabia, primarily on mega and giga-projects. There is immense potential for Australian businesses to expand their presence in the Kingdom,” said Sam Jamsheedi, chairman of the Australian Saudi Business Council. 

This aligns with the memorandum of understanding signed in May between the Australian-Saudi Business Council and Forum and the Export Council of Australia to enhance cooperation across multiple sectors.  

His Saudi counterpart, Talal Al-Sheer, underscored the importance of deepening economic ties between the two nations. “The Saudi-Australian relationship is a key driver of growth. Over the past three years, the Official Business Council has facilitated market entry into Saudi Arabia, fostering joint ventures with local firms,” he said.  

NSW Trade Commissioner Moin Anwar emphasized the significance of direct engagement in strengthening economic cooperation. “Meetings like these are crucial for expanding our bilateral relationship across various sectors. Construction and infrastructure are among the primary pillars where Australia can contribute significantly to Saudi Arabia’s development,” he said. 

Several Australian firms showcased their capabilities in advanced building solutions, attracting strong interest from Saudi stakeholders eager to incorporate global expertise into the Kingdom’s large-scale developments.  

The networking sessions also provided businesses with opportunities to exchange knowledge and discuss synergies in line with Saudi Arabia’s ambitious economic diversification goals. 

The meeting served as a strategic platform for both nations to reinforce trade and investment ties, positioning Australian businesses as key players in Saudi Arabia’s multibillion-dollar infrastructure drive.