Indonesia keen to learn from Saudi G20 presidency

Indonesia supports the initiative by the Saudi presidency to support existing efforts to prevent land degradation and habitat loss. (Shutterstock)
Short Url
Updated 09 November 2020
Follow

Indonesia keen to learn from Saudi G20 presidency

  • The Kingdom did not let the pandemic become an unfortunate moment, says envoy

RIYADH: With the whole world experiencing a swift digital transformation amid the coronavirus disease (COVID-19) pandemic, Saudi Arabia, as the G20 host, shoulders the responsibility to help the world move forward by swiftly adopting new health protocols and setting an example, said Indonesian Ambassador to Saudi Arabia Agus Maftuh Abegebriel.

In an interview with Arab News, Abegebriel said: “Saudi Arabia did not let the pandemic become an unfortunate moment. The G20 swiftly adopted new health protocols, and an online mechanism was prepared for the upcoming summit in November. The extraordinary summit in March ran well online — evidence of how well Saudi Arabia handled the G20’s meetings during the pandemic. I hope that we can learn from the Saudi presidency for handling the G20 in 2023.

“The G20 was born out of crisis back in 1999, and was again challenged in 2008-2009 by the global financial crisis. That crisis came alongside the European sovereign debt crisis, and several eurozone members were unable to repay or refinance their government debt. World GDP growth had fallen from 4.3 percent in 2007 to 1.8 percent in 2008, and then continued to minus 1.6 percent in 2009.

“The G20 has played an essential role in enabling international cooperation, and taken responsibility for global leadership in times of crisis. World GDP growth in 2010 successfully returned to 4.3 percent, with an average level of 2-3 percent in the next several years,” he added.

“Now, COVID-19 has had a more adverse impact on activity in 2020 than anticipated, and the recovery is projected to be slower than previously predicted,” he said.

“It is important to collaborate to ensure universal and equitable access to vaccines. It is important to work together to safeguard the global economy and avoid global depression. It is important to send a strong message that global recovery after the pandemic must be aligned with the 2030 UN Sustainable Development Goals to create more inclusive and sustainable growth,” he added.

Abegebriel continued that the G20 Summit in Riyadh would face major issues and high expectations, especially in areas devastated by COVID-19.

“G20 members face many common and pressing challenges, even more now with COVID-19. Consequently, the theme brought by Saudi Arabia, “Realizing opportunities of the 21st century for all,” is … relevant with the situation today. This is the time when countries share their collective efforts and responsibilities to address those challenges together, to make sure no one is left behind,” said the ambassador.

Abegebriel underscored that empowering people needed good decisions, and that the pandemic had reversed decades of progress on closing the gender gap in the labor market. It was important, he said, to put this issue in every aspect of new policy.

“We view that achieving women’s empowerment is essential to achieve sustainable and equitable development, which is in line with the Agenda 2030 framework,” he said.




Indonesian Ambassador to Saudi Arabia Agus Maftuh Abegebriel. (Photo/Supplied)

Furthermore, the environment and its preservation remains of major importance. “We support the initiative by the Saudi presidency to support existing efforts to prevent land degradation and habitat loss, as well as the initiative to accelerate scientific knowledge and technology development in support of coral reef survival, conservation, resilience, adaptation and restoration,” he said.

On an urgent need for the G20 to take steps that lead to more employment and growth, the envoy said: “Absolutely, in the long run, the deep recessions triggered by this pandemic (are) most likely to leave an eternal scar across sectors and fields, such as the disruption of global trade, fragmentation of supply chains, lower investment and affect people-to-people connectivity.”

Pressure on weak health care systems, loss of trade and tourism, declining remittances, subdued capital flows and tight financial conditions amid mounting debt will daunt many countries, he added. The pandemic has gravely impacted the labor market, especially for the most vulnerable: Low-paid workers, young people, women, under-represented groups, the self-employed and informal sector workers.

“Strengthening social protection systems is vital to prevent a more severe situation that could occur during the crisis period,” he said.

“There are reasons why the G20 Summit hosted by Saudi Arabia is historic. First, the summit is being held amid the deepest global recession in decades. Second, this summit is the first in the history of G20 convened online. As Saudi Arabia is the only country in the Middle East to be a member country of the G20, it is important to represent and show Saudi leadership in the region. We congratulate the Kingdom for its able leadership and its utmost effort in leading this forum to ensure the relevance of the G20 during the crisis,” Abegebriel said.

“Indonesia, which has a predominantly Muslim population, has a strong relationship with Saudi Arabia. The state visits by President Joko Widodo in 2015, 2018 and 2019 mark the importance of Saudi Arabia for the people of Indonesia. The historic visit by King Salman to Indonesia in 2017 showed the remarkable cooperation between the two countries,” he added. “I hope cooperation between Saudi Arabia and Indonesia will strengthen.

“Saudi Arabia has prepared the G20 Summit very well. Indonesia is keen to learn from Riyadh, to prepare ourselves for hosting the G20 Summit in 2023.”


Riyadh Air receives Air Operator Certificate, set to launch flights in 2025

Updated 06 April 2025
Follow

Riyadh Air receives Air Operator Certificate, set to launch flights in 2025

RIYADH: Saudi Arabia’s Riyadh Air has received approval from the General Authority of Civil Aviation to commence its flight operations, according to a statement released on Sunday.

The airline, owned by the Public Investment Fund, was granted the Air Operator Certificate after successfully meeting all regulatory, safety, and operational standards.

This milestone aligns with Riyadh Air’s goal of connecting over 100 international cities by 2030 and contributing more than $20 billion to the Kingdom’s economy.

Additionally, the airline aims to enhance the travel experience by leveraging digital technology to streamline bookings and airport procedures, catering to Saudi Arabia’s young, tech-savvy population, as highlighted by CEO Tony Douglas.

During the certificate delivery ceremony, Saudi Minister of Transport and Logistics Saleh Al-Jasser told Al-Ekhbariya: “We congratulate Riyadh Air, the Public Investment Fund, and the Saudi citizens on the successful completion of the licensing process and the official issuance of the Air Operator Certificate.”

He further emphasized that Riyadh Air is now fully certified to operate, marking a significant milestone in the initiative set in motion by Crown Prince Mohammed bin Salman’s strategy, which tasked PIF with launching the carrier.

“Establishing an airline of this scale is a monumental task, but the process is progressing smoothly. We are now in the final stages, with the next step being the launch of the first flight before the end of this year,” the minister remarked.

Al-Jasser also highlighted that the Kingdom is in the midst of restructuring its aviation infrastructure and launching several initiatives aimed at advancing the country’s aviation sector.

“The transport strategy includes restructuring the aviation sector, transitioning from a single operator model to a multi-operator system,” he said.

The minister added: “King Salman International Airport Development Co. is making steady progress in finalizing the airport’s design, with construction already underway. This comprehensive project includes passenger terminals, runways, private aviation facilities, and technical services, creating a fully integrated aviation city that is being developed as planned.”

Al-Jasser further noted that development projects are ongoing at airports in Jazan, Hail, and Qassim, as well as in Al-Baha, Abha, Taif, and Al-Jouf.

“Saudi airports have made significant strides in regulations, legislation, and services, which have attracted investments, strengthened passenger rights, and enhanced service quality,” he said.

The minister also emphasized: “We’ve expanded from 100 destinations connected to the Kingdom’s airports to 172 destinations, with the aviation strategy being a comprehensive plan for the future.”


Saudi Aramco cuts oil prices to Asia to four-month low

Updated 06 April 2025
Follow

Saudi Aramco cuts oil prices to Asia to four-month low

RIYADH: Saudi Aramco on Sunday cut its crude oil prices for Asian buyers in May to their lowest in four months, an official document showed.

This is the second consecutive month Aramco has lowered its prices. The company also lowered April prices for other grades it sells to Asia by $2.30 per barrel.

Aramco cut the May official selling price for flagship Arab Light crude by $2.30 to $1.20 a barrel above the average of Oman and Dubai prices, a pricing document from the producer showed.

The company also lowered April prices for other grades it sells to Asia by $2.30 per barrel.

Eight OPEC+ countries unexpectedly agreed on Thursday to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, a decision that prompted oil prices to extend earlier sharp losses.

Prior to the news, Arab Light price for Asia had been expected to fall by $1.80 to $2 in a Reuters survey, tracking the steep declines in benchmark prices in March.

Saudi Aramco’s crude oil is classified into five grades based on density: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29). These price changes influence the cost of approximately 9 million barrels per day of crude oil shipped to Asia, setting price benchmarks for other major oil producers such as Iran, Kuwait, and Iraq.

For North America, Aramco has set the May OSP for Arab Light crude at $3.60 per barrel above the Argus Sour Crude Index.

Spot premium of Dubai averaged at $1.38 per barrel in March, down from $3.33 per barrel, the average in February following more Russian supply returning to Asia since March.


Markets in freefall: Gulf bourses hit hard by US tariffs

Updated 06 April 2025
Follow

Markets in freefall: Gulf bourses hit hard by US tariffs

RIYADH: Gulf bourses experienced a downturn on Sunday as fresh US tariffs dampened investor confidence across the region, leading to widespread sell-offs in line with last week’s global market slump.

Saudi Arabia’s benchmark Tadawul All Share Index experienced a significant drop of 6.78 percent during today’s trading session, losing 805.46 points to close at 11,077.19. This marks its steepest single-day decline in months. The total trading volume for the index reached SR8.43 billion ($2.24 billion), with only one stock advancing and 252 retreating.

The MSCI Tadawul Index also saw a decline, falling by 98.60 points, or 6.56 percent to settle at 1,405.55.

Meanwhile, the Kingdom’s parallel market, Nomu, dropped by 1,992.71 points, or 6.5 percent, closing at 28,648.22. Notably, 89 listed stocks advanced in Nomu, while 11 retreated.

The worst performer of the day on the main market was Methanol Chemicals Co., whose share price fell by 10 percent to SR12.06, while the only positive performer stock was Nama Chemicals Co. with its share price surging by 0.5 percent to SR30.45.

In an interview with Arab News, Gaby Tchennozian, chief investment officer at a Dubai-based family office, highlighted that global market turbulence — triggered by an escalating US-led trade war—has not spared the Gulf region.

Gaby Tchennozian, chief investment officer at a Dubai-based family office. Supplied

“Even though the region isn’t directly involved in the trade tensions, the spillover is already being felt in markets,” he said.

Qatar’s QE Index declined by 4.23 percent, while Kuwait’s Premier Market Index dropped 5.69 percent. Other regional markets were similarly affected, with Muscat’s MSX 30 Index falling by 2.62 percent and the Bahrain All Share Index down by 1 percent. Investors are closely monitoring the impact of escalating trade tensions and the recent decline in oil prices.

This followed the announcement by US President Donald Trump of a 10 percent reciprocal tariff on Gulf imports.

Although UAE markets were closed on Sunday, the Abu Dhabi Securities Exchange ended the previous week with a 1.9 percent loss on Friday. Similarly, Dubai’s DFM General Index closed 1.5 percent lower on April 4, indicating that further declines could occur when trading resumes on Monday. 

“For investors, the lesson isn’t just about reacting to headlines. It’s about building portfolios that can weather unexpected shocks,” Tchennozian noted.

In Egypt, trading was temporarily halted in several stocks on Sunday for 10 minutes after having dropped by 5 and 10 percent, in line with market regulations designed to prevent excessive volatility.

Tchennozian anticipates that market turbulence will persist for the next 2-3 months due to continued uncertainty.

While OPEC’s production increase was overshadowed by news of US tariffs, oil prices remain near GCC break-even levels. However, they could decline further if global trade weakens.

Potential rate cuts by the Federal Reserve may provide some relief, but tensions in the Red Sea are dampening market sentiment.

Tchennozian cautioned that if trade wars escalate or regional conflicts intensify, this volatility could extend well into late 2025.

Tariff turmoil rattles markets 

The White House confirmed on April 2 that a 10 percent tariff on Gulf Cooperation Council imports, effective April 5, was imposed to address what President Trump described as “long-standing unfair trade practices.”

Although the Gulf states were spared from more severe penalties—41 percent for Syria and 39 percent for Iraq—the move has raised concerns about rising import costs for US-sourced goods, particularly in sectors like construction and electronics.

“These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” the White House said in a statement on April 2. 

Banking sector hit hardest

Gulf banking stocks were hit hardest amid growing fears of a potential US economic slowdown. The sell-off mirrored the steep losses seen on Wall Street on April 4, where the S&P 500 plummeted 9.58 percent, wiping out $5 trillion in market value and marking one of its worst declines in 70 years, according to Reuters.

The Nasdaq Composite Index also dropped by 5.8 percent on Friday, losing 962.8 points and officially entering bear market territory, driven by mounting global economic concerns.

Oil prices add to the pressure

Although the White House confirmed that oil and gas imports would be exempt from the new tariffs, Saudi oil giant Aramco still experienced a dip in market value during Sunday’s trading session. Its shares fell by 5.25 percent on Sunday to reach SR24.92, leading to a decrease of SR333.9 billion in market capitalization to settle at SR6.03 trillion.

For the GCC, the White House’s exemption is significant, as oil and gas constitute over 60 percent of Saudi Arabia’s exports to the US and remain a vital part of Gulf-US trade relations.

Oil prices plunged 7 percent on Friday, hitting a three-year low, after China retaliated in the escalating trade war by imposing 34 percent tariffs on all American goods, effective April 10.

This move, coinciding with global preparations for countermeasures against Trump’s tariffs—the highest in over a century—sent shockwaves through markets, with investors increasingly factoring in recession risks.

JP Morgan raised its forecast for a US and global recession to 60 percent, up from 40 percent, warning that escalating tariff tensions are undermining business confidence and threatening to derail global growth.

S&P Global also adjusted its “subjective” odds of a US recession, raising them to 30-35 percent, up from 25 percent in March.

Goldman Sachs had already revised its US recession risk to 35 percent from 20 percent ahead of the April 2 tariff announcement, citing weakening economic fundamentals.

HSBC noted on Thursday that the recession narrative is likely to strengthen, although markets have already factored in some of the risks.

Tchennozian further emphasized that Gulf markets are bearing the pressure as global indices continue to slump due to the ongoing US-led trade war. “GCC governments must act swiftly and decisively to reassure investors and safeguard their economies,” he said.

He suggested that this could be achieved by ramping up infrastructure spending while central banks ensure liquidity, particularly for small and medium enterprises.

Additionally, sovereign funds may need to step in with market stabilization measures, alongside diversifying trade toward Asia and Africa to mitigate the impact.

“Above all, clear and consistent communication from policymakers is key to reassuring investors that the region is not just weathering the storm—but actively steering through it,” he concluded.


Islamabad, Beijing sign agreement to boost Pakistan’s cotton production

Updated 06 April 2025
Follow

Islamabad, Beijing sign agreement to boost Pakistan’s cotton production

  • As per agreement, Chinese and Pakistani institutes will work on genetically improving cotton to increase its production
  • Cotton is one of Pakistan’s most important crops, having a massive 51% share in country’s total foreign exchange earnings

ISLAMABAD: Two prominent institutes owned by the governments in China and Pakistan have signed a memorandum of understanding (MoU) to boost Pakistan’s cotton production through technological methods, state broadcaster reported on Sunday. 

Cotton is one of Pakistan’s most important cash crops. At present, Pakistan is the fifth-largest producer of cotton and the third-largest producer of cotton yarn in the world, according to the Ayub Agricultural Institute. 

Cotton has a 0.8% share in Pakistan’s GDP and a massive 51% share in the country’s total foreign exchange earnings. Cotton production in Pakistan has contributed to a vibrant textile industry with over 1,000 ginning factories and around 400 textile mills across the country. 

“The MoU has been signed between the Ayub Agricultural Research Institute of Pakistan (AAIR) and the Institute of Cotton Research (ICR) of the Chinese Academy of Agricultural Sciences,” Radio Pakistan said in a report. 

It said that as per the agreement, AAIR and ICR will work on genetically improving cotton to increase its production and promote Pakistan’s cotton industry globally.

ICR is China’s only state-level organization for professional cotton research. It focuses on basic and applied research, and organizes and presides over major national cotton research projects that address significant science and technology-related issues in cotton production. 

Established in 1962, Punjab government’s AAIR describes itself as one of the country’s most prestigious research institutes that says its mission is to develop new varieties of crops and technologies for food safety. 

The agreement takes place as Pakistan faces a surge in cotton imports this year due to low production. According to the Pakistan Central Cotton Committee, factories in Pakistan have received 5.51 million bales of cotton as of January this year, a significant decline of 34% compared to last year.

Pakistan’s eastern Punjab province, which produces the most cotton out of all provinces in the country, grew 2.7 million bales, a decline of more than 36% compared to last year. 

Experts blame the low production of cotton due to irregular weather patterns brought about by climate change.


ACWA Power begins commercial operations at 2 major wind projects in Uzbekistan 

Updated 06 April 2025
Follow

ACWA Power begins commercial operations at 2 major wind projects in Uzbekistan 

RIYADH: Saudi utility giant ACWA Power has commenced commercial operations at two major wind power plants in Uzbekistan.

ACWA Power holds a 65 percent stake in both projects, having sold a 35 percent share to China Southern Power Grid International in July.

According to the company’s statement on Tadawul, both the 500-megawatt Dzhankeldy Wind Power Plant, which began commercial operations on April 1, and the 500-MW Bash Wind Power Plant, which started operations on April 6, are now fully operational.

Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its plan to achieve 20 gigawatts of clean energy capacity by the decade’s end. The nation is prioritizing the expansion of solar, wind, and hydroelectric energy, leveraging its natural resources to decrease reliance on fossil fuels, cut carbon emissions, and enhance energy security.

In December, Mohammad Abunayyan, chairman of ACWA Power’s board of directors and head of the Saudi-Uzbek Business Council, highlighted the progress in his firm’s partnership with the Uzbek government. He emphasized ACWA Power’s role as a major strategic investor in the nation’s rapidly growing clean energy sector.

Abunayyan said: “Today’s groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country’s energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan’s key regions and communities.”

During the December inauguration of the projects, Saudi Energy Minister Prince Abdulaziz bin Salman joined virtually and praised the strong relationship between the Kingdom and Uzbekistan.

He highlighted the collaborative efforts across various sectors, particularly energy, which have delivered mutual benefits to both nations, according to a statement from the company.

The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030.

He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as Saudi Arabia’s growing investment in Uzbekistan’s electricity sector amid the country’s energy transition.

Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country’s renewable energy sector in recent years.

The company stated that the financial impact of both projects will be included in its statements starting in the second quarter of 2025.