Saudi-South African Business Forum sees $25m credit agreement signed to help exporters 

Some 420 business leaders and officials attended the Saudi-South African Business Forum. SPA
Short Url
Updated 15 October 2024
Follow

Saudi-South African Business Forum sees $25m credit agreement signed to help exporters 

RIYADH: A $25 million credit agreement involving the Saudi Export-Import Bank and a major South African financial institution was among the deals struck at a special business forum in Johannesburg.  

The arrangement with Standard Bank Group will see companies in the Kingdom given extra funding support to trade with the African country.  

The deal was signed during the Saudi-South African Business Forum, which saw 420 business leaders and officials discuss how to boost economic ties between the nations – with an emphasis on the mining sector, the Saudi Press Agency reported.   

Bloomberg cited Naif Al-Shammari, Saudi EXIM’s deputy CEO, as saying that the agreement with Standard Bank Group will bolster trade links between the two countries.  

Another memorandum of cooperation was signed between the Saudi Export Development Authority and Skytower Development Co.  

Commerce between Saudi Arabia and South Africa was estimated at about $3.5 billion in 2023. The Kingdom also ranks first among South Africa’s trading partners in the region.   

The high-level Saudi delegation attending the forum was led by the Minister of Commerce and Chairman of the National Competitiveness Center, Majid bin Abdullah Al-Qasabi, and was organized by the NCC in collaboration with the Federation of Saudi Chambers and the South African Ministry of Trade and Industry, according to SPA.  

One panel at the event addressed cooperation in the mining sector, while the another discussed expanding the economic partnership between the Kingdom and South Africa in light of promising opportunities.   

It also introduced the mechanisms used by relevant authorities to resolve challenges facing the business sector.   

The forum also falls in line with the Kingdom’s commitment to strengthening its trade and economic relations with the African continent, which was announced by the Crown Prince and Prime Minister of Saudi Arabia at the Saudi-African Summit held in Riyadh last November.

The gathering included a presentation on the key reforms implemented to enhance the Kingdom’s competitiveness, delivered by the Vice Minister of Commerce and NCC CEO Iman bint Habas Al-Mutairi.  

Al-Mutairi reviewed the positive outcomes witnessed in Saudi Arabia’s economy and business environment, such as implementing more than 820 economic reforms carried out by 65 government entities since 2016 across nine key sectors. 

About 1,200 regulations and laws have been issued or updated, boosting the legal framework and contributing to making the Kingdom’s business environment one of the leading global destinations for companies and entrepreneurs.

She further underlined that Saudi Arabia allows 100 percent of foreign ownership in most business sectors and has established the Saudi Business Center, which has helped re-engineer procedures for starting and operating enterprises, reducing licensing requirements by 55 percent.  

During the visit, Al-Qasabi participated in the inauguration of the operations center of SMSA Express in South Africa, which will contribute to providing logistical solutions for the business sectors in the two countries.

He also held discussions with several South African ministers, including Parks Tau of trade, industry, and competition; Stella Ndabeni-Abrahams of small business development; Patricia de Lille of tourism; and John Steenhuisen of agriculture.  

Key topics included ways to strengthen trade relations, promising business opportunities in both countries, facilitating trade in goods and services, and South African companies’ participation in the Biban24 forum. 

The meetings also addressed initiatives aimed at supporting and empowering small-and medium-sized enterprises and proposed collaboration in areas of common interest.


Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

Updated 7 sec ago
Follow

Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. 

According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. 

The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.  

After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. 

In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”

Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.  

“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.   

Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.  

A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.  

Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.   

Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.   

Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.  

Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.  

The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.   

The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.  
 


Air France eyes daily Paris-Riyadh flights amid soaring demand

Updated 22 June 2025
Follow

Air France eyes daily Paris-Riyadh flights amid soaring demand

  • New route reflects airline’s ambition to reestablish presence in Saudi market
  • It comes in response to growing demand to access Kingdom’s expanding economic opportunities

RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.

The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.

Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.

The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.

The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied

Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”

He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.

Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”

His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.

“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added. 

Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.

“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.

He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”

At the same time, the airline is leveraging its distinctive French identity.

The new route marks a strategic step for Air France as it expands operations in the region. Supplied

‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.

High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.

He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.

“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said. 

The airline is also the world’s leading buyer of sustainable aviation fuel. 

Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”

Air France is investing in technology to enhance the passenger experience.

“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.

“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.

“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.

Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”


Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains

Updated 22 June 2025
Follow

Credit Oman insures $159m in non-oil exports Q1 amid sectoral gains

  • Growth in construction materials, petrochemicals, mining, and agriculture cited as key drivers
  • Mining sector experienced largest percentage growth, jumping 150% to 570,000 rials

RIYADH: Oman’s insured non-oil exports reached 61.2 million Omani rials ($159 million) in the first quarter of 2025, marking a 6 percent increase from the same period last year, according to Credit Oman. 

The sultanate’s export credit agency, which provides trade insurance and guarantees to support domestic and international exchange, cited growth in construction materials, petrochemicals, mining, and agriculture as key drivers, the Oman News Agency reported.  

This comes as Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. The growth reflects ongoing efforts to boost non-oil trade, support domestic industries, attract foreign investment, localize development initiatives, and offer incentives to the private sector. 

The ONA report stated: “Khalil bin Ahmed Al Harthy, CEO of Credit Oman, explained that the volume of insured export sales in the building and construction materials sector witnessed a growth of 24 percent, with a total value of 27.16 million rials.” 

Exports in the petrochemicals and plastics sector climbed 45 percent to 9.2 million riyals. 

Oman’s broader non-oil exports grew 8.6 percent year on year to 1.61 billion rials, now making up 28.6 percent of total exports. File/ONA

The mining sector experienced the largest percentage growth, jumping 150 percent to 570,000 rials. Meanwhile, agricultural exports surged 96 percent to nearly 5 million rials, driven by increased demand and favorable market conditions. 

Despite the overall growth, Al-Harthy noted setbacks in some sectors, including packaging, fisheries, and apparel, adding that the results still reflect the broader progress of the national economy and the government’s continued push for economic development. 

“He pointed out that Credit Oman is making significant efforts to support Omani manufacturers and exporters, contributing to boosting their sales both locally and internationally by offering a range of insurance services and overcoming the challenges associated with Omani products entering global and new markets,” the OMA report added. 

In its earlier outlook, Credit Oman projected strong growth potential for the country’s non-oil exports in 2025. The agency cited an estimated untapped export capacity of 5 billion rials, according to the International Trade Centre.  

However, it emphasized that realizing this potential would depend on evolving global trade conditions, particularly the impact of emerging tariff and non-tariff barriers, geopolitical uncertainty, and shifts in global economic trends. 

This growth comes after a challenging 2024, when Oman’s non-oil exports declined 16 percent due in part to a reclassification of high-value fuel-related goods into the oil and gas category.  

The 2025 rebound suggests improved export diversification, aided by Credit Oman’s efforts and favorable conditions in sectors like agriculture and plastics. 


Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran

Updated 22 June 2025
Follow

Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran

  • US forces struck Iran’s three main nuclear sites late on Saturday

LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.

US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.

By around 0915 GMT, Saudi Arabia’s benchmark index TASI had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index QSI had gained 0.2 percent, reversing slight early losses.

“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.

Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.

The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.

Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.

Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index MSX30 was up 0.5 percent.

Elsewhere in the Middle East, Egypt’s benchmark index EGX30 was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.


Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes

Updated 22 June 2025
Follow

Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes

  • Local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes
  • Al Yamama Cement led the domestic market with 1.68 million tonnes

RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects.

According to data from Al Yamama Cement covering the Kingdom’s 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes.

Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes.

Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh’s driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital’s northwest.

Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea’s string of luxury resorts, have now moved well beyond site grading and piling.

Saudi Cement slipped nearly 5 percent to SR108 million. Saudi Cement

Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks.

In short, the Kingdom’s transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it.

Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital’s latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines.

Profits do not rise equally

Higher volumes did not translate into across-the-board gains. International Cement Review’s CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover.

Saudi giga-projects, along with heritage revamps such as Diriyah Gate, have now moved well beyond site grading and piling. Wikipedia

Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million.

Producers faced an added challenge from Saudi Aramco’s fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent.

Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten.

Modern kilns slash fuel use 

According to Global Cement’s April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement’s relocation and upgrade project south of Riyadh.

The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology.

Yamama Cement posted about SR142 million in earnings — up 23 percent. Supplied

Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant.

The efficiency drive extends to the Red Sea coast, where Yanbu Cement’s 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant’s electricity.

The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more.

By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise.

With Saudi Aramco’s January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom’s competitive position in nearby markets.