Kuwait’s Al-Zour Refinery’s output hits 615k bpd

Al-Zour Refinery in Kuwait. SPA
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Updated 20 June 2024
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Kuwait’s Al-Zour Refinery’s output hits 615k bpd

RIYADH: The fully operational output of Kuwait’s Al-Zour Refinery has reached 615,000 barrels per day, in line with the country’s plan to boost oil refining capacity.     

The facility’s daily output, which is the cornerstone of the state-run Kuwait Petroleum Corp., includes some 86,000 bpd of premium naphtha, 99,000 bpd of jet fuel, and 147,000 bpd of low-sulfur diesel, respectively, the Saudi Press Agency reported.    

Al-Zour is the second-largest refinery in the Middle East and ranks seventh in the world’s list of the biggest such facilities based on daily capacity.

In 2023, the International Trade Administration revealed that oil accounts for around 95 percent of Kuwait’s exports and approximately 90 percent of government export revenue.  

According to the Organization of the Petroleum Exporting Countries, also known as OPEC, the country’s crude oil exports stood at 1.879 million bpd in 2022. During the same year, oil accounted for $41,493 of gross domestic product per capita.  

According to KPC CEO Sheikh Nawaf Al-Sabah, the nation will now “reap the benefits” of the facility, the principal among them being a sharp rise in Kuwait’s crude oil exports.  

By operating at its maximum capacity, the Al-Zour refinery will further enhance Kuwait’s global competitiveness by producing high-quality oil-based products.    

Additionally, Al-Sabah noted that he was “proud” of the dedication and commitment of KPC’s national workforce, stressing that their experiences in handling such a critical project would serve them well throughout their professional careers, enabling them to better deal with future endeavors.  

This daily yield is produced while keeping carbon emissions in check, aligning well with the commitment of the major oil supplier and member of the OPEC consortium toward environmental sustainability goals.    

Moreover, operating in full swing, the facility is positioned to elevate KPC’s regional standing by playing a significant role in achieving the company’s major objectives.  

The output increase comes despite the fact that OPEC and its allies, known as OPEC+ member recently announced an extension of additional voluntary cuts of 135,000 million bpd for the second quarter of 2024 in order to support the stability and balance of oil markets.  

Kuwait’s economy remains highly dependent on the oil sector, with the country holding approximately 7 percent of global oil reserves.

Moreover, Wadha Al-Khatib, acting CEO of KPC affiliate Kuwait Integrated Petroleum Industries Co., highlighted that the opening of Al-Zour refinery would “usher in a new era” in Kuwait’s oil industry, in addition to acting as a “launchpad” for greater output capacity in line with environment safety standards.

Al-Khatib continued to emphasize that around 30 countries worldwide have benefited from the rise in Kuwaiti oil exports.

Launched in 2022, Al-Zour alone has boosted total refining capacity from 800,000 bpd to 1.415 million bpd, the official underlined, giving due credit to the national workforce’s commendable efforts in navigating the challenging journey that led to the facility’s complete operational status.


Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 

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Aramco, stc drive Saudi brands’ value up 14% to $117bn, new report shows 

RIYADH: Saudi Arabia’s top 100 brands reached a combined valuation of $116.8 billion as of January, up 14 percent year on year, led by energy giant Aramco and telecom operator stc, according to a new report.

Marketing consultancy firm Brand Finance said Aramco retained its position as the Kingdom’s most valuable brand for the sixth consecutive year, with a valuation of $41.7 billion.

The company’s strength stems from its global oil production capabilities and investments in low-carbon technologies. 

The Kingdom’s economy remains heavily influenced by its core sectors — energy, banking, and telecommunications — which together represent nearly 74 percent of the total brand value in the rankings. This sector concentration underscores Saudi Arabia’s ongoing economic diversification efforts as part of its Vision 2030 strategy. 

Andrew Campbell, managing director, Brand Finance Middle East, said: “Saudi Arabia’s brand landscape is evolving at an impressive pace, driven by bold strategies, innovation, and a clear vision for the future.” 

He added: “From long-standing powerhouses like Aramco and stc to fast-rising brands like Saudia and Almarai, there’s a real sense of momentum across sectors. These brands are not only contributing to the Kingdom’s economic transformation but also setting new benchmarks for excellence in the region and beyond.” 

The report further revealed that stc ranked as the Kingdom’s second most valuable brand in 2025, with a valuation of $41.7 billion, up 16 percent year on year. 

This growth is primarily linked to the successful implementation of its Masterbrand strategy, which facilitated expansion into sectors like banking, cybersecurity, B2B, and IT services through strategic mergers and acquisitions.  

The report by the London-based brand valuation consultancy showed that stc is also ranked as the strongest brand in Saudi Arabia, earning a Brand Strength Index score of 88.7 out of 100 and an AAA rating. Its continued investment in 5G infrastructure and digital financial services has solidified its position as a telecom leader. 

An AAA rating is the highest possible credit or brand strength rating, indicating robust reliability, quality, and performance. 

With brand value up 20 percent to $4.7 billion, Dairy producer Almarai is recognized as the Kingdom’s third strongest brand, earning a Brand Strength Index score of 85.5 out of 100 and an AAA brand strength rating. 

This follows the brand’s collaboration with Google Cloud, launched in November, which is driving its digital transformation and enhancing operational efficiency. 

Almarai is also ranked as the top brand in Saudi Arabia for environmental, social, and governance performance, underscoring its strong commitment to ethical business practices, sustainable farming, and reducing carbon emissions. 

As for Saudia, its brand value surged by 34 percent to reach $1.1 billion in January, making it the fastest-growing Saudi brand and marking its first time crossing the billion-dollar milestone. 

This achievement is largely attributed to the airline’s bold rebranding, along with advances in AI-driven customer service and infrastructure upgrades, which have significantly boosted its global brand visibility. 

The report further revealed that ROSHN Group, with a brand value of $1.1 billion, is the highest-ranked new entrant in the Kingdom this year. It also became the most valuable real estate brand in the country and secured a place among the top 20 brands overall. This debut reflects the company’s strong financial performance and ambitious expansion strategy. 

“Saudi Arabia’s brand landscape is evolving at an impressive pace, driven by bold strategies, innovation, and a clear vision for the future. It’s particularly exciting to see new entrants like ROSHN Group make such a strong debut, showing that diversification and ambition are paying off,” Campbell added. 


Saudi Arabia doubles funding to Union of Arab Chambers

Updated 22 May 2025
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Saudi Arabia doubles funding to Union of Arab Chambers

JEDDAH: Saudi Arabia has doubled its financial contribution to the Union of Arab Chambers, a decisive move aimed at reinforcing regional economic integration and boosting private sector cooperation across the Arab world.

The Federation of Saudi Chambers announced the increase on Tuesday, stating that the expanded support will significantly enhance the UAC’s capacity to deliver programs and initiatives that empower the Arab private sector and foster closer economic ties among member states.

The decision underscores the Kingdom’s growing leadership role in regional economic affairs and comes at a time when calls for deeper intra-Arab collaboration are intensifying. A 2023 report from the UN Economic and Social Commission for Western Asia warned of declining exports and over-reliance on limited markets, urging Arab countries to diversify and strengthen intra-regional trade.

Despite shared economic interests, intra-Arab trade made up just 13.8 percent of the region’s total foreign trade by late 2024—a figure FSC President Moejeb Al-Hwaizy described as “modest” in comparison to other global economic blocs. Al-Hwaizy was elected first vice president of the UAC during its 135th session in Qatar.

The FSC noted that Saudi Arabia’s enhanced contribution reflects its “strategic responsibility” as the UAC’s largest financial backer and soon-to-be president. “This is an extension of the federation’s role in supporting the private sector at the local, regional, and international levels,” it said.

The Kingdom’s leadership in the UAC, founded in 1951 and comprising chambers from all Arab League member states, highlights its broader ambition to promote joint Arab economic action, unlock cross-border investment, and facilitate closer coordination among private sector leaders.

With several joint initiatives already underway, the FSC and UAC are working to boost intra-Arab trade and expand access to third markets through business partnerships and strategic cooperation.

As the only Arab country in the G20 and the region’s largest economy, Saudi Arabia’s growing influence in Arab economic institutions signals its continued commitment to fostering unity and resilience in a rapidly evolving global trade environment.


Saudi Arabia’s Matarat, Thales sign deal to transform air travel experience

Updated 22 May 2025
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Saudi Arabia’s Matarat, Thales sign deal to transform air travel experience

RIYADH: Matarat Holding, the state-owned company responsible for managing Saudi Arabia’s airports, has signed a strategic agreement with French aerospace and defense giant Thales to advance the Kingdom’s aviation sector through cutting-edge digital technologies.

The agreement, formalized during the Passenger Terminal Expo 2025 in Madrid, Spain, focuses on enhancing innovation, operational efficiency, and the overall passenger experience across the Kingdom’s 27 airports.

According to a statement by Matarat, the partnership will leverage Thales’ expertise in artificial intelligence, biometrics, automation, and data-driven systems to develop safer, smarter, and more efficient travel journeys.

As part of the collaboration, advanced digital platforms and next-generation infrastructure will be deployed throughout Saudi Arabia’s airport network.

“This collaboration with Matarat Holding represents a revolutionary step in reimagining the future of the Saudi aviation sector,” said Bernard Roux, CEO of Thales in Saudi Arabia and Central Asia.

“By combining Thales’ digital transformation capabilities with Matarat’s operational excellence, we aim to build a smart and secure aviation ecosystem.”

Roux emphasized that the integration of AI, cybersecurity solutions, and connected systems will not only improve passenger experience and boost efficiency, but also enhance national security— contributing directly to the Kingdom’s Vision 2030 goal of becoming a global aviation leader.

In addition to technology deployment, the agreement includes knowledge-sharing initiatives, operational streamlining, and joint innovation efforts aimed at future-proofing the Kingdom’s aviation infrastructure.


Cairo plans economic independence as IMF program nears end

Updated 22 May 2025
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Cairo plans economic independence as IMF program nears end

RIYADH: Egypt is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027, according to the country’s prime minister.  

Speaking during his weekly press conference, Mostafa Madbouly stated that the government is developing a long-term national economic strategy that will extend to 2030 and focus on sustaining growth without relying on international institutions, according to an official release.  

The comments come as Egypt attempts to stabilize an economy that has struggled with record inflation, a depreciating currency, and mounting debt. Over the past few years, authorities have pushed through reforms to unlock external funding, including a major IMF deal, Gulf-backed investments, and a record sale of state assets. 

In a release on its official social media handle, the Egyptian Cabinet quoted the prime minister as saying: “We are aiming to develop a national program for the Egyptian state without relying on other international institutions. This will be linked to submitting, for the first time next year, a three-year budget.” 

In response to a question about the government’s vision beyond the current IMF program and its efforts to preserve the gains reflected in recent positive economic indicators, the release added: “Madbouly confirmed that the government is drafting a detailed plan extending to 2030. This reflects a broader outlook beyond the IMF program, which ends by late 2026 or early 2027.” 

Egypt’s current $8 billion program with the IMF began as a $3 billion agreement in late 2022 and was expanded by $5 billion in March 2024.   

The deal includes major reforms such as currency devaluation, sharp interest rate hikes, tighter fiscal policy, and privatization of state-owned assets. 

So far, Egypt has received about $3.3 billion, with a fifth program review conducted in early May 2025. 

The IMF continues to stress the importance of accelerating structural reforms and managing debt levels.  

In the release, Madbouly emphasized that the government is prioritizing macroeconomic stability and social development.   

He pointed to the growing importance of social support programs, saying they would continue to expand annually.   

He also underlined the importance of technological advancement, industrial development, and greater reliance on digital transformation and artificial intelligence in the country’s future economic model.  

Regarding Egypt’s ongoing IMF program, Madbouly clarified that the reform agenda was created and implemented by the Egyptian government itself, with the IMF acting in a supportive role.   

He said the presence of the IMF and similar institutions in Egypt serves as a confidence signal to foreign investors and the global financial community, and that the IMF’s involvement does not entail new conditions or burdens on citizens.  

Madbouly also addressed developments in the Future of Egypt agricultural project, which he said is designed to rely on modern, mechanized farming and industrial methods.   

Unlike traditional high-density agricultural zones in the Nile Delta, the new areas will be less labor-intensive and structured to attract large-scale private sector participation.   

He said the aim is to preserve agricultural productivity by avoiding the fragmentation of land that has affected other regions.  

On technical education reform, Madbouly announced that the government is reviewing plans to convert outdated commercial diploma schools into modern technological schools that align with labor market needs.   

This reform will also involve private sector partnerships and follow successful models such as the WE School for ICT Education.   

He noted that graduates from current vocational tracks will be eligible to join digital transformation initiatives like the state-supported Digital Pioneers Program.  

In the health sector, the prime minister confirmed that the second phase of Egypt’s universal health insurance scheme will expand to five additional governorates.   

He added that one densely populated governorate might also be included in this phase, bringing the total number of covered regions to 12.   

Madbouly said the system’s financial viability has been reassessed and extended to ensure it can remain sustainable for up to 50 years.  

He also spoke about the government’s plan to support the local production of infant formula, describing it as a capital-intensive industry that requires significant investment.   

The state is encouraging private sector participation in this strategic initiative and is ready to act as a partner to ensure long-term success and stability in production.  


Savings deposits hit highest share in 16 years as Saudi money supply climbs to $815bn

Updated 22 May 2025
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Savings deposits hit highest share in 16 years as Saudi money supply climbs to $815bn

  • Shift reflects changing behavior among depositors, increasingly favoring interest-bearing accounts
  • Currency outside banks rose by 10.57% to SR251.53 billion

RIYADH: Saudi banks’ money supply rose 8.22 percent year on year to SR3.06 trillion ($815 billion) in March, driven by a sharp surge in time and savings deposits, recent data showed.

According to figures by the Saudi Central Bank, also known as SAMA, this category increased by 27.55 percent during the period to reach SR1.07 trillion, the greatest growth rate in over 14 months. It now accounts for 35.2 percent of the total money supply, marking its highest share in 16 years.

The notable shift reflects changing behavior among depositors, increasingly favoring interest-bearing accounts amid ongoing global monetary tightening.

While the US Federal Reserve kept rates steady in recent months following 100 basis points of cuts last year, the risk of renewed inflation, partly due to rising import tariffs, may have delayed further easing.

S&P Global Ratings revised Saudi Arabia’s outlook to positive in September. Shutterstock

Given that SAMA typically mirrors Fed rate decisions to maintain the riyal’s dollar peg, this has reinforced the appeal of yield-generating instruments like term deposits among Saudi savers.

Term deposits, which offer higher returns than conventional bank accounts in exchange for holding funds over a fixed period, have become more attractive to Saudi savers seeking to lock in interest income amid volatile economic signals.

Despite this surge, demand deposits, accounts that allow immediate access to funds, still hold the largest share at 47.84 percent, or SR1.46 trillion. However, this marks their lowest proportion in nearly five years.

Growth in this category slowed to 3.9 percent year on year, reflecting a broader migration toward savings products.

Meanwhile, quasi-money deposits, which include foreign currency deposits and marginally liquid instruments, declined by 22.85 percent to SR266.87 billion, representing 8.73 percent of the total.

Currency outside banks rose by 10.57 percent to SR251.53 billion.

Efforts to diversify beyond its oil economy would mitigate the Kingdom’s vulnerability to oil market fluctuations. File/Reuters

Credit to businesses in the Kingdom has witnessed robust growth in recent quarters, underpinned by increased demand from key sectors such as real estate, construction, manufacturing, and broader non-oil economic activities. 

According to data from SAMA, corporate lending grew by over 22 percent year on year in March, reflecting the banking sector’s critical role in financing Vision 2030-linked projects and supporting economic diversification.

This strong lending momentum has contributed to a tightening liquidity environment. As loans continue to grow at a faster pace than deposits, reflected in the rising loan-to-money supply ratio, which climbed from 95 percent in March 2024 to 101.51 percent in March 2025, banks have increasingly turned to capital markets to maintain liquidity.

In particular, Saudi banks have ramped up their sukuk issuances and other debt instruments to meet financing demand while preserving balance sheet stability.

For example, several major financial institutions, including Al Rajhi Bank and Saudi National Bank, have recently raised multibillion-riyal sukuk to bolster their funding base.

Saudi Arabia’s expanding reliance on debt markets to fund its ambitious development agenda has been met with continued confidence from major credit rating agencies, reflecting the Kingdom’s robust fiscal position and commitment to economic diversification.

Saudi banks have ramped up their sukuk issuances and other debt instruments to meet financing demand. Shutterstock

In 2024, the total value of listed sukuk and debt instruments in the Kingdom rose by more than 20 percent year-on-year, reaching SR663.5 billion, up from SR549.8 billion in 2023, according to data from the Capital Market Authority. This marks a significant acceleration in domestic debt issuance, underscoring the sector’s growing dependence on capital markets to maintain liquidity amid sustained loan expansion.

Moody’s Investors Service upgraded Saudi Arabia’s credit rating to “Aa3” from “A1” in November, citing the country’s efforts to diversify beyond its oil economy.

The agency noted that these diversification efforts would mitigate the Kingdom’s vulnerability to oil market fluctuations and the global carbon transition over time.

Similarly, S&P Global Ratings revised Saudi Arabia’s outlook to positive in September, affirming its “A/A-1” ratings.

The agency highlighted the Kingdom’s strong non-oil growth outlook and economic resilience, expecting an acceleration of investments to develop newer industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector.

These affirmations by major credit rating agencies underscore the nation’s solid creditworthiness and the effectiveness of its economic reforms under Vision 2030, even as it increases borrowing to finance its transformative projects.