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Oil Updates — prices dip as US crude inventories surge, tariff concerns loom

Oil Updates — prices dip as US crude inventories surge, tariff concerns loom
Brent crude futures fell 18 cents, or 0.2 percent, to $77.31 a barrel by 8:48 a.m. Saudi time. Shutterstock
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Updated 1 min 26 sec ago
Reuters
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Oil Updates — prices dip as US crude inventories surge, tariff concerns loom

Oil Updates — prices dip as US crude inventories surge, tariff concerns loom
  • US President Donald Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday
  • Saudi energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices
Updated 1 min 26 sec ago
Reuters
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LONDON: Oil prices fell on Wednesday, following a rise in US crude stockpiles and easing worries over Libyan supply, while focus turned to potential US tariffs on Canadian and Mexican imports.
Brent crude futures were down 59 cents, or 0.76 percent, to $77.90 a barrel as of 0916 GMT, while US crude futures had lost 55 cents, or 0.75 percent, at $73.22.
The White House said on Tuesday that US President Donald Trump still plans to issue 25 percent tariffs on Canada and Mexico on Saturday.
“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs going into effect on Saturday potentially lifting US prices then,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Canada supplied 3.9 million barrels per day of oil to the US in 2023, roughly half of overall imports for the year, while Mexico supplied 733,000 bpd, according to data from the Energy Information Administration.
“Overall, trade prices are a tad softer after Libya said exports have resumed, and API reported a weekly increase in US stockpiles. In addition, OPEC+ is expected to stick to their already announced production increase from April,” said Hansen.
US crude oil and gasoline stocks rose last week, while distillate inventories fell, market sources said on Tuesday, citing American Petroleum Institute figures.
The EIA, the statistical arm of the US Department of Energy, is due to release its weekly data at 1530 GMT on Wednesday.
Supply concerns eased after Libya’s National Oil Corp. said on Tuesday that export activity was running normally after it held talks with protesters demanding a halt of loadings at one of its main oil ports.
The OPEC+ Joint Ministerial Monitoring Committee meeting next Monday, will be another source of ambiguity in the current worryingly unpredictable political and economic environment, said Tamas Varga, analyst with oil broker PVM.
Saudi Arabia’s energy minister and several of his OPEC+ counterparts have held talks following Trump’s call for lower oil prices and ahead of a meeting next week of OPEC+ oil-producing countries, according to official statements and sources.

Topics: oil updates oil prices

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Saudi insurance industry thrives with 16.9% revenue growth in Q3 2024

Saudi insurance industry thrives with 16.9% revenue growth in Q3 2024
Updated 6 sec ago
Nadin Hassan
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Saudi insurance industry thrives with 16.9% revenue growth in Q3 2024

Saudi insurance industry thrives with 16.9% revenue growth in Q3 2024
  • Revenues surge as motor, medical, and property coverage expand
Updated 6 sec ago
Nadin Hassan

RIYADH: Saudi Arabia’s insurance sector saw a 16.9 percent year-on-year revenue growth in the third quarter of 2024, driven by increases in motor, property, and medical coverage, according to a new report.

The analysis, published by KPMG, attributes this growth to ongoing economic reforms under the Kingdom’s Vision 2030 initiative, emphasizing regulatory measures that have strengthened the sector’s development and stability.

Medical insurance played a key role in the overall growth, with revenues rising by 13.6 percent, largely due to the government’s implementation of mandatory health coverage regulations.

Motor insurance also experienced a significant boost, with revenues up 22.7 percent year on year. This growth is linked to an expanding auto market and regulatory measures ensuring compliance with insurance requirements.

The property and casualty insurance segment also saw significant growth, with a 20.4 percent increase in revenues, reflecting the ongoing expansion of infrastructure and real estate projects across Saudi Arabia.

This growth comes as the Kingdom’s regulatory body works to improve the sector’s efficiency and stability, while supporting local infrastructure and fostering a thriving business ecosystem.

According to data compiled by Arab News from Bloomberg, Saudi Arabia’s insurance sector delivered a strong performance in the first half of 2024, with earnings rising by 25 percent to SR2.2 billion, compared to the same period in 2023.

The report also noted that the sector continues to attract both local and international investors, thanks to favorable market conditions and robust regulatory frameworks.

“Saudi Arabia’s insurance industry is at the forefront of the Kingdom’s economic transformation, aligning with Vision 2030’s ambition to diversify the economy,” Ovais Shahab, partner and head of financial services at KPMG in Saudi Arabia, said.

He added: “The sector’s impressive growth, driven by regulatory reforms, technological innovation, and expanding market demand, underscores its critical role in shaping a resilient and diversified financial landscape.”

KPMG highlighted that, despite the sector’s growth, challenges such as pricing competition and market fragmentation remain.

However, advancements in digital insurance solutions and improved customer engagement strategies are expected to drive continued expansion and help the sector navigate these challenges.

“As insurers embrace digital transformation and sustainability, they are not only enhancing customer experience but also addressing emerging risks, positioning the industry for long-term success in a rapidly evolving market,” Salman Chaudhry, partner and insurance lead at KPMG Professional Services, said.

Platforms like Tameeni and BCare are simplifying access to insurance policies, while artificial intelligence-driven solutions are improving claims processing and fraud detection.

The report also noted the rise of telematics-powered, usage-based insurance, which is driving a shift toward more personalized coverage options.

The establishment of the Insurance Authority in November 2023 has laid the groundwork for deeper reforms, enhancing governance, product innovation, and reinsurance frameworks. This move underscores the Kingdom’s commitment to building a strong and resilient insurance sector in line with the goals of Vision 2030.

Additionally, the recent implementation of IFRS 17 and IFRS 9 standards has strengthened transparency and financial comparability among insurers.

This is reflected in a strong third-quarter combined ratio of 93.69 percent and a 25.9 percent year-on-year increase in net profit before zakat and tax, reaching SR3.90 billion.

The sector’s total assets also saw a 20 percent rise, reaching SR84.91 billion.

“As Saudi Arabia’s insurance sector continues to evolve, it is well-positioned to play a pivotal role in the Kingdom’s economic transformation,” Shahab remarked.

He added: “Supported by regulatory foresight, innovation, and the Vision 2030 framework, the industry is poised to further contribute to Saudi Arabia’s diversification and growth.”

According to credit rating agency S&P Global in December, Saudi Arabia’s insurance sector is expected to remain resilient in 2025, with top-line revenue growth forecasted between 10 percent and 15 percent.

S&P also reported that the net profit of insurance companies in the Kingdom grew by 17 percent in Q3 2024, compared to the same period in 2023.

Topics: Saudi Arabia Insurance

International mortgage firms set to transform Saudi Arabia’s real estate sector: top official

International mortgage firms set to transform Saudi Arabia’s real estate sector: top official
Updated 9 min 57 sec ago
Nirmal Narayanan
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International mortgage firms set to transform Saudi Arabia’s real estate sector: top official

International mortgage firms set to transform Saudi Arabia’s real estate sector: top official
  • Kingdom’s property market expected to reach $101.62 billion by 2029
  • Recent approval of CMA will increase international investment in the Kingdom
Updated 9 min 57 sec ago
Nirmal Narayanan

RIYADH: Top international financial institutions Apollo and BlackRock are set to enter Saudi Arabia’s mortgage market, potentially transforming the Kingdom’s real estate market, a top official said. 

During a panel discussion at the Real Estate Future Forum in Riyadh, the adviser to Saudi Arabia’s minister of municipalities and housing, Hossam Redwan said that lower interest rates could also propel the mortgage sector in the Kingdom. 

Redwan’s comments align with Saudi Arabia’s Vision 2030 goal to strengthen the real estate sector as part of its efforts to diversify the economy and position the Kingdom as a global tourism and business destination.

Saudi Arabia’s Real Estate General Authority expects the Kingdom’s property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024. 

“Foreign entities are now ready to deploy capital by buying mortgages directly from banks and financing institutions. In a way, they would be performing a role similar to what the Saudi Real Estate Refinance Co. has been doing for the last few years,” said Redwan. 

He added: “However, SRC cannot fulfill its role on its own. So, hopefully, by the first quarter of 2025, you will hear of institutions like Apollo and BlackRock entering the mortgage market in Saudi Arabia directly. I am very excited about it.”

He also underscored the exponential growth of the Saudi mortgage market and said that its value has now reached SR750 billion ($199.96 billion). 

Redwan added that the recent approval of CMA, which allows foreigners to invest in Saudi-listed companies owning real estate in Makkah and Madinah, will increase international investment in the Kingdom. 

The new amendment by CMA, effective from Jan. 27, aims to boost the capital market’s competitiveness and align with the Vision 2030 economic diversification objectives, the authority said in a statement.

Topics: RFF2025 Real Estate Future Forum

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Sports and entertainment driving Saudi real estate boom, say Deloitte experts

Sports and entertainment driving Saudi real estate boom, say Deloitte experts
Updated 21 min 31 sec ago
Miguel Hadchity
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Sports and entertainment driving Saudi real estate boom, say Deloitte experts

Sports and entertainment driving Saudi real estate boom, say Deloitte experts
Updated 21 min 31 sec ago
Miguel Hadchity

RIYADH: Saudi Arabia’s real estate sector is gaining momentum as investments in sports and entertainment create new opportunities for infrastructure development and economic stability, according to industry experts.

During a panel discussion on the final day of the Real Estate Future Forum, Chris Styring, director of the Sports Business Group at Deloitte, highlighted the potential for long-term benefits from sports infrastructure projects.

The Kingdom’s real estate sector is growing, with 192 project licenses issued in 2024, totaling SR147 billion ($39 billion), while the sports market is set to grow from $8 billion to $22.4 billion by 2030. 

This surge in sports investment is driving real estate expansion, fueling demand for stadiums, training facilities, and mixed-use developments.

With the nation preparing to host the FIFA World Cup in 2034, Styring emphasized the urgency of upskilling local professionals. 

“The World Cup seems a long way away, but it’s not. You’ve got to prepare. You’ve got to upskill the next generation of people who will be the event managers, the commercial managers, the people who deliver, the hospitality sector, and the real estate sector that’s actually building the infrastructure,” he said. 

The Deloitte official believes there is “a great opportunity” to build sports infrastructure that can “give back”, adding that Saudi Arabia is well-positioned to host major sporting events in the future. 

“I foresee that one day you’ll have a world-class marathon,” he predicted at the Riyadh event.

Simon Oaten, lead partner for Travel, Hospitality, and Leisure at Deloitte UK, underlined that preparations for such large-scale events are already accelerating. “Deadlines really focus the mind, and we’re starting to see that in a way that we weren’t seeing it nine to 12 months ago,” he observed. 

Beyond sports, regulatory clarity and tax planning are crucial factors for investors in Saudi Arabia’s real estate sector, according to Hadeel Biyari, partner for Indirect Tax at Deloitte Middle East. 

“All investors, whether they’re local or foreign, they look for certainty,” she said

Biyari also pointed out that Deloitte is actively developing local real estate expertise, adding: “That’s not only from a tax perspective but also from a legal perspective because I deal with tax disputes and litigation.”

As Saudi Arabia continues to drive innovation across all sectors in line with Vision 2030, the experts agreed that preparation, investment, and strategic planning will be key to ensuring the real estate sector thrives alongside the Kingdom’s growing sports and entertainment industries.

Topics: RFF2025 Deloitte SAUDI REAL ESTATE

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Saudi-UK aviation ties set for growth amid investment push

Saudi-UK aviation ties set for growth amid investment push
Updated 26 min 2 sec ago
MOHAMMED AL-KINANI
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Saudi-UK aviation ties set for growth amid investment push

Saudi-UK aviation ties set for growth amid investment push
Updated 26 min 2 sec ago
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia aims to strengthen aviation ties with the UK as officials from both countries met to boost investment and collaboration, amid the Kingdom’s push to upgrade its airports and expand global connectivity. 

A senior Saudi delegation, led by Mohammed bin Fahd Al-Khuraisi, executive vice president for strategy and business intelligence at the General Authority of Civil Aviation, participated in a Saudi-British roundtable in London, the Saudi Press Agency reported.  

The meeting, which brought together top British aviation companies, CEOs, and experts, focused on enhancing strategic cooperation and unlocking new opportunities in the aviation sector, aligned with Saudi Arabia’s Vision 2030 goals. 

These initiatives align with Saudi Arabia’s National Aviation Strategy, which aims to double passengers capacity to 330 million annually, increase air cargo capacity to 4.5 million tonnes, and expand connectivity to over 250 destinations worldwide. 

In his speech, Al-Khuraisi highlighted the UK’s role as a key European market for Saudi Arabia, with passenger traffic between the two nations more than doubling in 2024 to 1.338 million, compared to 2022. This surge in demand underscores the need for continued investments in aviation infrastructure and international partnerships. 

The two nations maintain strong trade and cultural ties, with Al-Khuraisi highlighting that in December, both countries agreed to increase bilateral trade to $37.5 billion by 2030, underscoring the value of their relations and mutual economic benefits. 

He also noted the success of the trade partnership, with over 1,000 British companies holding investment licenses in Saudi Arabia and 55 firms, including BAE Systems and Rolls-Royce, operating regional headquarters in the Kingdom. 

The Saudi delegation showcased the Kingdom’s aviation ecosystem, highlighting ongoing infrastructure projects, digital transformation efforts, and investment opportunities, including Riyadh Air’s launch and the King Salman International Airport master plan.  

The presentation also detailed investment prospects in Saudi airports, covering implementation strategies, funding volumes, business opportunities, and incentives for investors. 

Concluding his speech, Al-Khuraisi invited UK investors and aviation leaders to seize new opportunities for collaboration, further strengthening the global aviation sector.  

The Saudi delegation also participated in the Civil Aviation Supply Forum, engaging with representatives from the British Aviation Group, UK Air Navigation Services, the UK Civil Aviation Authority, and other global aviation companies. 

The meetings, attended by British government officials and Saudi embassy representatives, focused on investment opportunities in civil aviation and airport development.

Topics: Saudi Arabia UK aviation

Public-private collaborations crucial to tackling unemployment, Saudi minister says

Public-private collaborations crucial to tackling unemployment, Saudi minister says
Updated 29 January 2025
REEM WALID 
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Public-private collaborations crucial to tackling unemployment, Saudi minister says

Public-private collaborations crucial to tackling unemployment, Saudi minister says
Updated 29 January 2025
REEM WALID 

RIYADH: Stronger working between governments, the private sector, and international organizations is needed to address the global unemployment crisis, according to a top Saudi official.

During the opening remarks of the Global Labor Market Conference taking place in Riyadh from Jan. 29 – 30, the Kingdom’s Minister of Human Resources and Social Development Ahmad bin Sulaiman Al-Rajhi highlighted that with 67 million young people unemployed across the world — and over 20 percent of youth in some regions outside of education, employment, or training — targeted policies are urgently needed to tap into this labor market potential.

Global employment grew in 2024, along with the expanding labor force, keeping the unemployment rate steady at 5 percent, the same as in 2023. However, the growth in employment was too weak to address the ongoing global shortage of decent work, according to the International Labor Organization.

“While the challenges may vary, the solutions require collaboration between governments, the private sector, and international organizations. By working together, we develop strategies that benefit everyone,” Al-Rajhi said.

“The numbers are concerning, and the urgency is clear. These figures are not just statistics, they represent untapped potential in all of our labor markets,” the official added, stressing that addressing youth unemployment with the right strategies is essential for driving economic growth and social progress worldwide.

The minister went on to note that freelance work has become a growing opportunity in Saudi Arabia.

“Registered freelancers increased from 400,000 in 2020 to 2.2 million this year. This growing industry now contributes almost SR72.5 billion ($19.33 billion) to the economy. The majority of these freelancers are young people,” Al-Rajhi said.

He concluded his opening remarks by saying: “The following critical questions will guide our efforts to shape effective policies that can transform our labor markets at home while also shaping the global labor market. What innovative policies for strengthening youth employment have been applied and with what results? What new initiatives our trials can help us better to understand how to quickly get job seekers into jobs? How is technology impacting youth employability?”

The minister added that the GLMC is a platform for discussion and a space for action. It exists to identify policies and strategies that can be adapted and scaled across countries, with a clear focus on the young people who will quickly form the core of the global labor market.

Vice Minister for Labor Sector in Saudi Arabia Abdulla Nasser Abuthnain highlighted that empowering young people with skills, opportunities, and support is vital to achieving Saudi Vision 2030.

“Our approach focuses in creating pathways to quality jobs that drive productivity and innovation,” Abuthnain said.

“Here in Saudi Arabia, the Ministry of Human Resources and Social Development has introduced a comprehensive youth development strategy designed to address the most pressing challenges facing young Saudis. As a result, the need rate for youth aged 15 to 24 has decreased from 17.8 percent in 2022 to 13.7 in the second quarter of 2024,” he added.

The minister continued to stress that with regard to the freelance market, Saudi Arabia is working on enhancing workforce flexibility by offering 690 contracts under flexible work arrangements and more than 204,000 remote work contracts.

“Finally, we are enhancing job matching through digital platforms. Our unified national employment platform Edarat integrated AI (artificial intelligence) to connect to job seekers with employees, ensuring more efficient and tailored matching process,” Abuthnain said.

“In closing, Saudi Arabia remains committed to fostering dynamic labor market that empowers its youth, equip them for future and position them as a key contributor to global economy,” he added.

The Kingdom is emerging as an international leader in addressing labor market challenges, skill development, and workforce requalification, according to a report released by GLMC in December.

The inaugural report, issued by the conference hosted by Saudi Arabia’s Ministry of Human Resources and Social Development, emphasized the government’s initiatives to bridge the gap between academic qualifications and market demands. 

These efforts include enhancing education and training programs and preparing young job seekers for the rapidly evolving global labor landscape.

Topics: Global Labor Market Conference unemployment global labor

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