China’s rising clout spotlighted at finance chief meetings before G7 summit

Japanese Finance Minister Shunichi Suzuki, center, and Governor of the Bank of Japan Kazuo Ueda, right, attend the presidency press conference at the G7 meeting at Toki Messe in Niigata, Japan, Saturday, May 13, 2023. (AP / Pool Photo)
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Updated 15 May 2023
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China’s rising clout spotlighted at finance chief meetings before G7 summit

  • G7 host Japan persuaded its counterparts to launch a new program to diversify supply chains for strategically important goods away from China
  • G7 finance chiefs’ also held their first outreach in 14 years, aimed at winning over emerging nations such as Brazil, the Comoros, India, Indonesia, Singapore and South Korea

TOKYO: The weekend gathering of finance chiefs from the Group of Seven (G7) advanced economies did not single out China as a threat in their communique, but left signs the world’s second-largest economy will loom large at this week’s summit in Hiroshima.

Efforts to grapple with China’s growing global presence were evident at the three-day G7 finance chiefs’ gathering in Niigata, Japan, during which they held their first outreach in 14 years, aimed at winning over emerging nations.

The meeting with Brazil, the Comoros, India, Indonesia, Singapore and South Korea primarily tackled issues such as debt and high-level infrastructure investment, in a tacit counter to China’s Belt and Road initiative, analysts say.

“What’s going on at the G7 is reflecting changes in global order following the loss of the US dominance,” said Masamichi Adachi, economist at UBS Securities. “No one is being able to draw up a grand design with shifting of power.”

G7 host Japan persuaded its G7 counterparts to launch a new program by the end of 2023 to diversify supply chains for strategically important goods away from China. The G7 comprises the United States, Britain, France, Japan, Italy, Germany and Canada.

But the finance chiefs’ closing communique did not mention a US-proposed idea for narrow restrictions on investment to China, a potential rift among the grouping on how far they should go in pressuring Beijing.

A Japanese finance ministry official at the gathering, who declined to be named because of he sensitivity of the matter, said the idea was discussed in Niigata, but declined to elaborate.

China is among the biggest markets for most G7 countries, particularly for export-reliant economies such as Japan and Germany. China-bound exports account for 22 percent of Japan’s overall shipments.

Japan and the United States want to try to win over countries, including those in the Global South, with promises of foreign direct investment and aid, analysts say.

US President Joe Biden last year was host of a US-Africa leaders summit in Washington, aiming to bolster alliances amid the growing Chinese presence on that continent. Japan followed suit, with Prime Minister Fumio Kishida visiting Egypt, Ghana, Kenya and Mozambique this month.

In a joint statement on Saturday, the G7 finance chiefs stressed the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka.

They did not mention China, but said foreign investments in critical infrastructure “may pose risks for economic sovereignty,” and thus must “not undermine the economic sovereignty of host countries.”

Treasury Secretary Janet Yellen said in March that Beijing’s lending activities left developing countries “trapped in debt,” adding that Washington was working to counter China’s influence in international institutions and in lending.

“There were talks about coercion” at the G7 finance leaders’ meeting, the Japanese finance ministry official said.

The G7 summit will most likely have a special session on China to debate Beijing’s “economic coercion” against other countries, according to a Reuters report.

“No matter how the G7 want to fence in the Global South, it’s not easy,” said Atsushi Takeda, chief economist at the Itochu Economic Research Institute. “These emerging economies won’t side with either the West or China, while carefully weighing what will be in their best interests.”


Closing Bell: Saudi main index edges down 0.7% to close at 11,709

Updated 19 March 2025
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Closing Bell: Saudi main index edges down 0.7% to close at 11,709

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, as it shed 82.97 points or 0.70 percent to close at 11,709.43.

The total trading turnover of the benchmark index was SR4.55 billion ($1.21 billion), with 66 stocks advancing and 174 declining.

The Kingdom’s parallel market, Nomu, also shed 35.29 points to close at 30,683.64. The MSCI Tadawul Index declined by 0.59 percent to 1,484.07.

The best-performing stock on the main market was United International Holding Co. The firm’s share surged by 3.49 percent to SR172.

Conversely, the share price of the Mediterranean and Gulf Insurance and Reinsurance Co. declined by 10 percent to SR20.70.

On the announcements front, several major Saudi companies released their annual financial results for the period ending Dec. 31, 2024, showcasing mixed performances across industries.

Sahara International Petrochemical Co., also known as SIPCHEM, reported a 63.74 percent decrease in net profit, reaching SR462.1 million, compared to SR1.175 billion in the previous year. This decline was primarily due to higher feedstock and raw material costs, a decline in revenue, and decreased zakat expenses during the year.

The company saw a 2.99 percent drop in its share price on Wednesday to settle at SR21.46.

Rabigh Refining and Petrochemical Co. posted a 3.15 percent decrease in net profit, reaching SR4.54 billion, down from SR4.69 billion in the prior year. The company, in a statement to Tadawul, said this decline was due to a one-time expense, lower sales and margins, and higher costs of key feedstock.

Its share price saw a 0.43 percent increase to reach SR6.93.

Meanwhile, Saudi Real Estate Co. saw a significant 218.19 percent increase in net profit to SR215.1 million, up from SR67.7 million in the previous year. The increase was primarily attributed to a 42.64 percent increase in operating profit, a 181 percent increase in the company’s share of profit from an associate and the joint venture, and a 39 percent decrease in zakat expenses recorded during 2024.

Saudi Real Estate Co.’s stock price shed 1.76 percent to reach SR25.75.

The National Shipping Company of Saudi Arabia, or Bahri, reported a 34.46 percent increase in net profit, reaching SR2.169 billion, compared to SR1.613 billion in the previous year. The growth was driven by the improvement of operational performance and global shipping rates in several business units of the group.

The company’s stock price grew 2.33 percent to reach SR30.20.


Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks

Updated 19 March 2025
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Saudi Arabia dominates Forbes’ 2025 list of MENA’s most valuable banks

  • Financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks
  • Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion

RIYADH: Saudi Arabia dominated Forbes’ “30 Most Valuable Banks 2025” ranking, with 10 entries boasting a combined market value of $269 billion. 

According to the business-focused media outlet, financial institutions from the Kingdom made up nearly a third of the total $600.8 billion market capitalization of the listed banks. 

The UAE followed with seven facilities valued at $153.4 billion, while Qatar contributed six banks worth $76.7 billion. Morocco and Kuwait placed three and two banks on the list, with market values of $23.7 billion and $68.4 billion, respectively. 

The Middle East and North Africa region’s banking sector remains resilient and is set for strong growth in 2025, driven by economic diversification, favorable financial conditions, and a projected 3.5 percent economic expansion fueled by infrastructure projects and rising non-oil activity, according to a recent report by Ernst & Young

In a statement announcing its latest rankings, Forbes said: “This year’s list features banks from seven countries, with 26 entries being Gulf-based. Saudi Arabia represents a third of the list with 10 entries, with an aggregate market value of $269 billion.”

The media firm noted that the total market value of the 30 banks increased by 3.4 percent year over year, rising from $581.1 billion in February 2024 to $600.8 billion as of Jan. 31, 2025. 

Al-Rajhi Bank holds the top spot 

Al-Rajhi Bank retained its position as the region’s most valuable bank, leading with a market capitalization of $105.6 billion — representing 17.6 percent of the total market value of the 30 banks. 

It was followed by Saudi National Bank at $54.7 billion, and the UAE’s First Abu Dhabi Bank, valued at $43.7 billion.

Beyond the top three, Qatar’s QNB Group and Kuwait Finance House ranked fourth and fifth, with market values of $41.2 billion and $38.3 billion, respectively. 

They were followed by the UAE’s Emirates NBD Group at $28.9 billion and Kuwait’s National Bank of Kuwait at $27.1 billion. 

Other notable banks in the ranking include Abu Dhabi Commercial Bank and Riyad Bank. The list also features banks from Morocco and Oman. 

A resilient sector 

MENA’s banking sector has shown stability over the past year, supported by higher interest rates and robust oil prices. 

According to a Fitch Ratings report published in 2024, the economic environment in the region has sustained liquidity levels, profitability, and strong capital buffers for most Gulf Cooperation Council banks. 

Forbes Middle East compiled the ranking based on reported market values of publicly listed banks across the Arab world as of Jan. 31, 2025. Subsidiaries of listed companies were excluded from the ranking, and currency exchange rates were taken as of the same date.


Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar

Updated 21 min 46 sec ago
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Saudi Arabia grants $97.5m exploration licenses for first mineral belts at Jabal Sayid, Al-Hajjar

  • Jabal Sayid and Al-Hajjar cover a combined area of 4,788 sq. km
  • Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site
  • Competition saw 14 local and international companies submit bids after passing the pre-qualification stage

JEDDAH: Saudi Arabia has granted exploration licenses worth SR366 million ($97.5 million) to local and international companies for its first mineral belts at Jabal Sayid and Al-Hajjar.

These two sites, covering a combined area of 4,788 sq. km, are part of the Ministry of Industry and Mineral Resources’ efforts to accelerate the exploration and development of the Kingdom’s estimated SR9.3 trillion ($2.48 trillion) in mineral resources.

Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site.

A consortium consisting of Artar, Gold and Minerals Ltd Co., and Jacaranda, owned by Australian company Hancock Prospecting, won the license for the northern Al-Hajjar site. Vedanta Ltd, a major Indian mining giant, received the first exploration permit for the Jabal Sayid belt, while a second license for the same site went to a consortium of Ajlan & Bros Mining and Zijin Mining, a Chinese mining giant ranked among the world’s top five.

Saudi Arabia is focused on making mining a key pillar of its economy, alongside oil and petrochemicals. The Kingdom is home to over 5,300 mineral sites valued at SR5 trillion ($1.33 trillion), and the Ministry of Industry and Mineral Resources is working to unlock these resources to diversify the economy, create jobs, and position the Kingdom as a global mining hub in alignment with Vision 2030.

The competition saw 14 companies, both local and international, submit bids after passing the pre-qualification stage. The submissions were evaluated based on technical expertise, proposed work plans, and social and environmental commitments, according to the Ministry’s statement.

The newly awarded licenses cover two areas within the Jabal Sayid belt, which spans 2,892 sq. km and contains valuable minerals such as copper, zinc, lead, gold, and silver. Additionally, two more licenses were granted for the Al-Hajjar site, covering 1,896 sq. km and rich in natural resources.

The ministry emphasized that the involvement of major international mining companies like Zijin Mining, Hancock Prospecting, and Vedanta Ltd. underscores the growing global interest in Saudi Arabia's mining sector and the opportunities it offers through exploration license competitions.

It also confirmed that the total exploration investment from the winning companies will surpass SR366 million over the next three years, with an extra SR22 million pledged for community development projects near the mining sites, aimed at creating job opportunities for local residents.

Ajlan and Bros-Norin for Mining, which secured the southern Al-Hajjar site, will invest SR209 million in exploration, which includes over 119,000 meters of drilling. Furthermore, they will allocate SR11.2 million for community-focused initiatives, such as building intermediate schools for girls in nearby provinces.

The consortium of Artar, Gold & Minerals Ltd., and Jacaranda will invest more than SR62 million in exploration at the northern Al-Hajjar site, including 52,000 meters of drilling. They will also direct SR4.2 million toward local infrastructure projects.

Vedanta Ltd., the Indian mining giant, has committed SR33 million for exploration at Jabal Sayid 1, covering 22,000 meters of drilling. In addition, they will invest SR3 million in community development projects, focusing on local employment and training programs.

The consortium of Ajlan & Bros Mining and Zijin Mining has pledged approximately SR62 million for exploration at Jabal Sayid 2, including 51,000 meters of drilling. They will also allocate SR4 million for community initiatives, particularly aimed at developing road infrastructure in the surrounding area.

In line with these efforts, the Ministry of Industry and Mineral Resources has launched the second phase of the Mining Exploration Enablement Program, in collaboration with the Ministry of Investment, to mitigate risks for companies during the early stages of mining exploration.

The Kingdom also offers incentives under the mining investment system, such as allowing foreign companies to fully own operations and providing up to 75 percent funding for capital costs through the Saudi Industrial Development Fund.

During the fourth edition of the Future Minerals Forum, held in January, the Ministry of Industry announced the offering of 50,000 sq. km of mineralized belts containing gold, copper, and zinc.

This initiative is part of the ministry’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Applications for these opportunities can be submitted through the Taadeen platform.


Egypt, India reaffirm $12bn trade target during ministerial meeting

Updated 19 March 2025
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Egypt, India reaffirm $12bn trade target during ministerial meeting

  • Minister of Investment and Foreign Trade Hassan El-Khatib emphasized Egypt’s commitment to attracting more Indian investments
  • Push positions India as Egypt’s sixth-largest trading partner

RIYADH: Egypt and India have reaffirmed their commitment to tripling bilateral trade from $4.2 billion in 2024 to $12 billion within five years, reinforcing a target set last year during a joint meeting. 

The pledge came during a trip to India by Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib, when he met with the Asian country’s Commerce and Industry Minister Piyush Goyal.

The push builds on a record $7.26 billion in bilateral trade during the 2021-22 financial year — a 75 percent rise from the previous year — positioning India as Egypt’s sixth-largest trading partner, according to the North African country’s Central Agency for Public Mobilization and Statistics. 

Trade fell to $4.6 billion between April 2023 and February 2024, largely due to the Israel-Hamas conflict and Houthi disruptions to Suez Canal traffic. 

Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib met with India’s Commerce and Industry Minister Piyush Goyal. Egyptian Cabinet/Facebook

El-Khatib emphasized Egypt’s commitment to attracting more Indian investments in key sectors such as renewable energy, chemicals, and automotive manufacturing, as well as pharmaceuticals, textiles, and information and communication technology. 

“Al-Khatib also highlighted the expected surge in Indian investments in Egypt in the coming period, especially in light of the major investment agreements concluded by Indian companies in the energy sector, including the signing of two agreements for the production of green hydrogen and green ammonia in Egypt with an investment cost of up to $12 billion, in addition to other Indian investments in various sectors,” an official release stated. 

The minister added that his country is ready to provide all necessary support and facilitation for Indian investors, highlighting Egypt’s efforts to create a favorable business climate by improving infrastructure, developing new ports, and enhancing existing facilities, including the Suez Canal Economic Zone.  

El-Khatib also underscored India’s growing presence in other industries within the Egyptian market.  

During the discussions, the minister extended an official invitation to Goyal to visit Egypt in 2025 to further strengthen bilateral economic ties and explore additional collaboration opportunities.  

“Goyal confirmed the ministry’s commitment to taking the necessary measures to facilitate the entry of Egyptian products into the Indian market, particularly agricultural exports,” the release added. 

The meeting also covered preparations for an upcoming visit by an Indian business delegation, led by the Asian country’s Ministry of Commerce and Industry and the Confederation of Indian Industry, to discuss the nation’s proposed industrial area in the Suez Canal Economic Zone.


Madinah’s licensed hospitality facilities grow by 93%: official data

Updated 19 March 2025
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Madinah’s licensed hospitality facilities grow by 93%: official data

  • Number of licensed rooms also saw growth, rising by 62% to nearly 62,000
  • Number of licensed hospitality facilities across Saudi Arabia exceeded 3,950 by the end of the third quarter of 2024

RIYADH: The number of licensed hospitality facilities in Madinah has surged to over 450 in 2024, marking a 93 percent increase compared to the previous year, according to the latest Ministry of Tourism data.

The number of licensed rooms also saw growth, rising by 62 percent to nearly 62,000. This increase positions Madinah as the third-leading city in Saudi Arabia for the number of licensed hospitality facilities, following Makkah and Riyadh.

This expansion aligns with the ministry’s commitment to enhancing service quality and supports the National Tourism Strategy’s goal of accommodating more than 37 million Hajj and Umrah travelers, thus strengthening both Islamic and national identity. It also reflects the broader growth of the Kingdom’s hospitality sector, extending beyond Makkah.

The total number of licensed hospitality facilities across Saudi Arabia exceeded 3,950 by the end of the third quarter of 2024, a 99 percent increase from the same period in 2023. Licensed rooms reached 443,000, a 107 percent rise from the previous year’s 214,000.

In a similar trend, Makkah’s hospitality sector also saw substantial growth. By the end of 2024, Makkah had 1,030 licensed facilities, reflecting an 80 percent increase compared to the previous year. This growth cements Makkah’s position as the leader in Saudi Arabia for the highest number of licensed facilities and rooms, underscoring the region's continued focus on enhancing the visitor experience, as reported by the Saudi Press Agency.

According to CoStar, a global real estate data provider, both Makkah and Madinah are expected to see continued development, with 17,646 and 20,079 rooms, respectively, in various stages of construction by 2025.

Saudi Arabia welcomed 30 million inbound tourists in 2024, up from 27.4 million in 2023, reflecting a strong growth trajectory. The Kingdom aims to attract 150 million visitors annually by 2030, with plans to increase the tourism sector’s contribution to the gross domestic product from 6 percent to 10 percent.

In preparation for the 2024 Hajj season, Makkah’s licensed hospitality facilities reached 816, providing 227,000 rooms to accommodate pilgrims. To further enhance the pilgrimage experience, authorities have introduced several new initiatives, including improved crowd management, digital meal distribution, and an expanded electric golf cart fleet at the Grand Mosque.

The General Authority for the Care of the Grand Mosque and the Prophet’s Mosque has also implemented spatial guidance systems and multilingual support to improve visitor navigation, ensuring a seamless pilgrimage experience.

Saudi Arabia’s growing hospitality and tourism sector reflects its ambition to become a global travel hub, catering to both religious and leisure visitors alike.