OPEC chief says blame policymakers, lawmakers for oil price rises

OPEC exists to ensure the world gets enough oil, but ‘it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing,’ Al-Ghais said.
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Updated 18 August 2022
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OPEC chief says blame policymakers, lawmakers for oil price rises

  • Says keen to extend deal with Russia beyond 2022
  • Oil’s recent slide reflects fears, physical demand robust
  • Al-Ghais relatively optimistic on outlook for 2023

LONDON: Policymakers, lawmakers and insufficient oil and gas sector investments are to blame for high energy prices, not the Organization for the Petroleum Exporting Countries, the producer group’s new secretary-general, Haitham Al-Ghais, told Reuters on Thursday.

A lack of investment in the oil and gas sector following a price slump sparked by COVID-19 has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption.

The price of Brent crude came close to an all-time high of $147 a barrel in March, after Russia’s ordering of troops into Ukraine exacerbated supply concerns. While prices have since declined, they are still painfully high for consumers and businesses globally.

“Don’t blame OPEC, blame your own policymakers and lawmakers, because OPEC and the producing countries have been pushing time and time against for investing in oil (and gas),” Al-Ghais, who took office on Aug. 1, said in an online interview.

Oil and gas investment is up 10 percent from last year but remains well below 2019 levels, the International Energy Agency said last month, adding that some of the immediate shortfalls in Russian exports needed to be met by production elsewhere.

The OPEC official also pointed the finger at a lack of investment in the downstream sector, adding that OPEC members had increased refining capacity to balance the decline in Europe and the US.

“We are not saying that the world will live on fossil fuels forever ... but by saying we’re not going to invest in fossil fuels ... you have to move from point A to point B overnight,” Al-Ghais said.

OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing,” he said, adding that he hopes “investors, financial institutions, policymakers as well globally seriously take this matter (to) heart and take it into their plans for the future.”

Relatively optimistic 

Oil has tumbled since March and Brent hit a six-month low below $92 a barrel this week.

The slide reflects fears of economic slowdown and masks physical market fundamentals, Al-Ghais said as he took a relatively optimistic view on the outlook for 2023 as the world tackles rising inflation.

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Oil and gas investment is up 10 percent from last year but remains well below 2019 levels, the International Energy Agency said last month, adding that some of the immediate shortfalls in Russian exports needed to be met by production elsewhere.

Oil has tumbled since March and Brent hit a six-month low below $92 a barrel this week.

OPEC, plus Russia and other allies, known as OPEC+, has unwound record oil-output cuts made in 2020 at the height of the pandemic and in September is raising output by 100,000 barrels per day.

Ahead of the next meeting which OPEC+ holds on Sept. 5, Al-Ghais said it was premature to say what it will decide.

“There is a lot of fear,” he said. “There is a lot of speculation and anxiety, and that’s what’s predominantly driving the drop in prices.”

“Whereas in the physical market we see things much differently. Demand is still robust. We still feel very bullish on demand and very optimistic on demand for the rest of this year.”

“The fears about China are really taken out of proportion in my view,” said Al-Ghais, who worked in China for four years earlier in his career. “China is a phenomenal place of economic growth still.”

OPEC, plus Russia and other allies, known as OPEC+, has unwound record oil-output cuts made in 2020 at the height of the pandemic and in September is raising output by 100,000 barrels per day.

Ahead of the next meeting which OPEC+ holds on Sept. 5, Al-Ghais said it was premature to say what it will decide, although he was positive about the outlook for next year.

“I want to be very clear about it — we could cut production if necessary, we could add production if necessary.”

“It all depends on how things unfold. But we are still optimistic, as I said. We do see a slowdown in 2023 in demand growth, but it should not be worse than what we've had historically.”

“Yes, I am relatively optimistic,” he added of the 2023 outlook. “I think the world is dealing with the economic pressures of inflation in a very good way.”

OPEC+ began to restrain supply in 2017 to tackle a supply glut that built up in 2014-2016, and OPEC is keen to ensure Russia remains part of the OPEC+ oil production deal after 2022, Al-Ghais said.

“We would love to extend the deal with Russia and the other non-OPEC producers,” he said.

“This is a long-term relationship that encompasses broader and more comprehensive forms of communication and cooperation between 23 countries. It’s not just in terms of production adjustment.”


Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030

Updated 13 July 2025
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Saudi financial ecosystem hits $267bn milestone in 2024 in line with Vision 2030

  • FSDP annual report highlights booming fintech, capital market growth, and strengthened investor confidence
  • Foreign investor holdings surge 501 percent since 2017, while financial literacy and inclusion gain ground

RIYADH: Saudi Arabia’s financial sector recorded exceptional growth in 2024, with fintech firms reaching 261, venture capital investment in the sector exceeding SR7.6 billion ($2.03 billion), and gross written premiums in insurance climbing to SR76.1 billion.

Locally managed assets in the capital market surged to SR1 trillion ($267 billion), while foreign ownership rose to over SR420 billion. These milestones, outlined in the Financial Sector Development Program’s 2024 annual report, reflect the Kingdom’s accelerating progress toward the economic diversification goals of Vision 2030.

Saudi Finance Minister Mohammed Al-Jadaan, also chairman of the Financial Sector Development Program Committee, emphasized that the program continues to deliver on its promise of sustainable success.

He said the FSDP is building an economic future that solidifies Saudi Arabia’s regional and international standing while reflecting the rapid development across all sectors in this prosperous era.

The FSDP has implemented a wide range of reforms and initiatives to build a robust, diversified, and inclusive financial system. The program has helped to strengthen the Kingdom’s regional and global economic standing while enabling innovation, job creation, and investment growth.

Fintech emerged as a key success story in 2024, with the number of operating companies surpassing initial targets and contributing to the creation of over 11,000 direct jobs. The Saudi Central Bank licensed D360 Bank to begin operations, and electronic payments accounted for 79 percent of total retail transactions — underscoring the shift toward a cashless economy. The year also saw the launch of FinTech2024, the Kingdom’s first international fintech conference.

Capital markets continued their upward trajectory. With 44 new listings, the number of publicly traded companies reached 353. Locally managed assets grew 169 percent compared to 2017, reaching SR1 trillion, while foreign investor holdings jumped by 501 percent over the same period to SR 420 billion.

Notable developments included the introduction of the TASI 50 index, single-stock options, Real Estate Investment Certificates, and the listing of Saudi ETFs in Tokyo, Shanghai, and Shenzhen. The Capital Market Authority also launched the Kingdom’s Green Finance Framework to encourage sustainable investment.

In the debt capital market, the CMA unveiled a strategic roadmap and issued the first license for an alternative trading system. The Kingdom successfully conducted its first international dollar bond issuance under the Government’s Global Bond Program, attracting approximately $30 billion in orders.

Meanwhile, the government introduced “Sah,” a savings product aimed at fostering a culture of personal saving. Credit rating agencies Moody’s, Fitch, and S&P issued upward revisions to Saudi Arabia’s sovereign credit ratings in response to the country’s fiscal discipline and financial reforms.

The insurance sector also posted strong performance. Gross written premiums rose 16.3 percent from 2023 to reach SR 76.1 billion, while net profits increased by 12.5 percent to SR 3.6 billion. The Insurance Authority mandated the Saudization of all insurance product sales roles and launched a Regulatory Sandbox to support startup innovation. The number of licensed InsurTech firms rose by 56 percent. New digital services included automated motor insurance, simplified claims processes, and TELEMATICS—a unified platform for tracking driver behavior.

The finance minister noted that the progress reflected in the report underscores the Kingdom’s broader development efforts under the leadership of King Salman and Crown Prince Mohammed bin Salman.

Support for small and medium enterprises remained a cornerstone of financial sector development. Saudi startups attracted SR 2.8 billion ($750 million) in venture capital, maintaining the Kingdom’s lead in the MENA region. The share of bank credit to SMEs increased from 8.4 percent in late 2023 to 9.4 percent by the end of 2024.

The SME Bank disbursed over SR1.5 billion in financing to 1,029 enterprises, while the Kafalah program facilitated SR 107.2 billion in financing guarantees—advancing the Vision 2030 target for SMEs to contribute 35 percent of GDP.

On the regulatory front, the FSDP advanced significant legislative reforms to enhance transparency, competitiveness, and investor protection. Updates included new principles for finance and real estate refinance companies, revisions to debt crowdfunding rules, and regulatory changes to real estate financing. The CMA also approved omnibus accounts and relaxed conditions for debt offerings, further liberalizing capital markets.

Financial literacy and capability development remained a key focus. The Financial Academy trained more than 59,000 participants through its programs since inception. The third edition of the Gulf Smart Investor Award continued to raise awareness of personal finance, while the “Malee” program began measuring and promoting financial literacy among children aged 8 to 12.

Looking ahead, the Financial Sector Development Program aims to build on this momentum in 2025 by aligning with global standards, expanding financing options, increasing financial inclusion, and deepening capital market participation. As outlined in its annual report, the FSDP remains committed to fostering innovation, enhancing regulatory efficiency, and driving sustainable growth to realize the full ambitions of Saudi Vision 2030.


Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report

Updated 13 July 2025
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Saudi Arabia issues over 1,300 new industrial licenses in 2024: Ministry report

  • Private sector investments in industrial cities and zones totaled SR1.9 trillion
  • Ministry developed 454 investment opportunities worth SR143 billion

RIYADH: Saudi Arabia has issued 1,346 new industrial licenses in 2024, attracting over SR50 billion ($13.3 billion) in new investments, a recent report revealed.

Private sector investments in industrial cities and zones totaled SR1.9 trillion, and the number of licensed workers in the field was 1.09 million, with a 36 percent Saudization rate, the analysis by the Kingdom’s Ministry of Industry and Mineral Resources said.

The new figures are consistent with the nation’s efforts to transform its industrial sector to boost the number of factories to 36,000 by 2035, of which 4,000 will be fully automated. The goal is part of the Kingdom’s strategy to foster a dynamic, innovation-driven industrial sector.

They also align with data from January, when the country’s industrial production index rose by 1.3 percent year-on-year, driven by ongoing growth in manufacturing and waste management, according to the General Authority for Statistics. Monthly, the index remained stable at 103.9, unchanged from December.

“We have all the capabilities to achieve a competitive and sustainable industrial economy, including ambitious young talent, a distinguished geographical location, rich natural resources, and leading national industrial companies,” the report said, citing Crown Prince Mohammed bin Salman. 

“Through the National Industrial Strategy and in partnership with the private sector, the Kingdom will become a leading industrial power, contributing to securing global supply chains and exporting high-tech products to the world,” he added.

The ministry has also developed 454 investment opportunities worth SR143 billion, which are linked to the industrial sectors targeted in the National Industrial Strategy.

The report shed light on how Saudi Arabia has achieved a global ranking of 33 in the Competitive Industrial Production Index.

“This progress reflects the Kingdom’s significant efforts to strengthen its industrial sector as part of Saudi Vision 2030, which aims to diversify the economy and reduce dependence on oil. This achievement also represents an advance of two places from the target, which is 35th place globally,” the Minister of Industry and Mineral Resources, Bandar Alkhorayef, said.

“These visions and objectives set forth major ambitions to align with the Kingdom’s position as an influential regional power within the G20 group and achieve Saudi Arabia 2030, which envisions the Kingdom as a leading industrial nation in which the mining sector is the third pillar of the national economy,” Alkhorayef added.

In June, Saudi Arabia launched the second phase of its standardized industrial incentives program to enhance competitiveness and strengthen the Kingdom’s trade balance.

Speaking at the Saudi Industry Forum in Dhahran at the time, Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, said the initiative supports the government’s efforts to drive high-value investments in priority sectors.

This comes as the nation works to position itself as a regional and global industrial hub. Since its initial launch, the program has drawn more than 1,000. Of the 118 applications received, 12 have reached the final qualification stage.


ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push

Updated 13 July 2025
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ACWA Power-led consortium signs $8.3bn deals for massive renewable energy push

  • Five of the new projects are photovoltaic solar initiatives
  • Deals mark largest single-phase capacity signed globally for renewable energy projects

RIYADH: A Saudi consortium led by ACWA Power has signed agreements worth SR31 billion ($8.3 billion) to develop seven major solar and wind energy projects with a combined capacity of 15,000 megawatts, the Saudi Press Agency reported on Sunday.

The consortium includes the Water and Electricity Holding Co., a subsidiary of the Public Investment Fund, and Aramco Power, which is owned by Saudi Aramco. The deals were signed in the presence of Energy Minister Prince Abdulaziz bin Salman and fall under the National Renewable Energy Program, overseen by the Ministry of Energy.

Five of the new projects are photovoltaic solar initiatives, including the Bisha Project in the Asir region and the Humaij Project in Madinah, each with a capacity of 3,000 MW. The Khulis Project in Makkah will generate 2,000 MW, while the Afif 1 and Afif 2 projects, both located in the Riyadh region, will add another 4,000 MW combined.

In addition, two wind energy projects will be developed in Riyadh: the 2,000 MW Starah Project and the 1,000 MW Shaqra Project.

The agreements mark the largest single-phase capacity signed globally for renewable energy projects.

They underscore the Kingdom’s ongoing commitment to expanding its renewable energy infrastructure and its ability to deliver electricity at globally competitive costs.

This achievement reflects strong investor confidence and the success of Saudi Arabia’s financing and development strategies in the energy sector.


Most Gulf stocks subdued as Trump steps up tariff threats

Updated 13 July 2025
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Most Gulf stocks subdued as Trump steps up tariff threats

  • Saudi Arabia’s benchmark index fell 0.2%
  • Qatar’s benchmark index finished flat in a calm session

DUBAI: Gulf equities ended mixed on Sunday, with stocks drifting in a tight range during a quiet trading session as investors sought clarity after US President Donald Trump escalated his global trade war. 

Trump threatened on Saturday to impose a 30 percent tariff on imports from Mexico and the European Union, following the announcement of a 35 percent duty on Canadian imports, both starting Aug. 1. 

He also proposed a blanket tariff rate of 15 percent-20 percent on other countries, an increase from the current 10 percent baseline rate. 

Saudi Arabia’s benchmark index fell 0.2 percent, as mixed sector performance kept the market subdued ahead of key earnings. 

Utilities heavyweight ACWA Power declined 2.4 percent as its rights issue offering ended. 

Qatar’s benchmark index finished flat in a calm session, with telecom giant Vodafone Qatar gaining 1.2 percent. 

Investors remained cautious as the US Federal Reserve is widely expected to keep interest rates unchanged as it waits to see the impact of tariffs on price pressures. 

With Gulf currencies pegged to the US dollar, the Fed’s decisions on interest rates impact the region’s monetary policy. 

Outside the Gulf, Egypt’s blue-chip index dropped 0.8 percent, hit by a 1 percent fall in Commercial International Bank. 

Egypt’s central bank kept key interest rates unchanged on Thursday, pausing a trend of rate reductions despite inflation rates easing. 


Syria signs $800m agreement with DP World to bolster ports infrastructure

Updated 13 July 2025
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Syria signs $800m agreement with DP World to bolster ports infrastructure

  • Deal focuses on developing multi-purpose terminal at Tartus
  • DP world CEO pledged to make Tartus ‘one of the best ports in the world’

DAMASCUS: Syria signed a $800 million deal with UAE-based company DP World on Sunday to develop the port of Tartus, state media reported, as the new authorities continue their efforts to support post-war reconstruction.

“In the presence of President Ahmed Al-Sharaa, an agreement was signed between the General Authority for Land and Sea Ports and DP World, valued at $800 million, as a strategic step aimed at enhancing port infrastructure and logistics services in Syria,” state-run news agency SANA said.

The agreement follows on from a memorandum of understanding signed between the two sides in May.

Following the signing of the deal, DP World CEO Sultan Bin Sulayem said Syria’s economy had “significant assets, including the Port of Tartus, which represents an opportunity to transport and export many Syrian industries.”

In a statement also shared by state media, he pledged to make Tartus “one of the best ports in the world.”

DP World operates dozens of marine and inland ports and terminals globally, particularly in Asia, Africa and Europe

The Syrian civil war devastated the country’s infrastructure, and the new authorities hope to use the lifting of Western sanctions to attract investments and fuel reconstruction efforts.

Qutaiba Badawi, head of the General Authority for Land and Sea Ports, said the parties were “not merely signing a technical agreement, but we are laying the foundation for a new phase of field and maritime work in Syria, repositioning ourselves on the regional and international economic map.”

In May, Damascus signed a 30-year contract with French shipping giant CMA CGM to develop and run the port of Latakia.

That same month, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies as part of efforts to revive its crippled power sector.