De-coupling from China would be the wrong way to go, Germany warns

German Foreign Minister Heiko Maas (L) and Chinese Foreign Minister Wang Yi attend a joint news conference in Beijing, China, on Nove. 13, 2018. (REUTERS/file)
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Updated 22 April 2021
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De-coupling from China would be the wrong way to go, Germany warns

  • China was hit by a round of coordinated sanctions from the US, EU, Britain and Canada over reports of forced labor in the far western Chinese region of Xinjiang

BERLIN: The European Union needs to engage with China despite many differences instead of opting for a more isolationist approach, Germany said on Wednesday.
“In the EU, we have been describing China as a partner, competitor and systemic rival at the same time,” German Foreign Minister Heiko Maas said ahead of a virtual meeting with his Chinese counterpart Wang Yi.
“In all these three dimensions we need strong, sustainable communication channels with Beijing. De-coupling is the wrong way to go.”
Berlin’s warning against de-coupling is in line with Beijing’s long-held position against disengagement among nations, including with China, despite mutual differences.
Last month, China was hit by a round of coordinated sanctions from the United States, European Union, Britain and Canada over reports of forced labor in the far western Chinese region of Xinjiang, accusations that Beijing rejects.
Ties between China and Germany have generally remained stable since last year, Chinese State Councilor and Foreign Minister Wang Yi said later in his meeting with Mass.
Wang also said major economies like China and Germany should jointly resist any de-coupling, and instead seek to uphold the stability of global industrial and supply chains, according to a statement from the Chinese foreign ministry.
At the same time, China does not approve of any re-drawing of ideological lines, and is even more opposed to engaging in “small cliques,” and even arbitrarily imposing unilateral sanctions based on false information, Wang said.
Last week, US President Joe Biden met with Japanese Prime Minister Yoshihide Suga in his first face-to-face White House summit since taking office, where both leaders said they shared serious concerns about the human rights situation in Hong Kong and Xinjiang.
In a show of economic cooperation to the exclusion of China, Biden said Japan and the United States would jointly invest in the tech sector including semiconductor supply chains. 

 

 

 


Saudi POS value holds above $3bn for 4th consecutive week

Updated 5 sec ago
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Saudi POS value holds above $3bn for 4th consecutive week

RIYADH: Hotel spending in Saudi Arabia surged by 2.1 percent in the week ending July 19, driving total point-of-sale transactions to SR12.19 billion ($3.25 billion), even as most other sectors saw declines. 

Total POS value remained above the $3 billion mark for the fourth consecutive week despite a 7.1 percent weekly drop, underscoring the resilience of consumer activity across the Kingdom, according to data from the Saudi Central Bank, also known as SAMA. 

The hotel sector recorded SR287.44 million in transaction value, with the number of transactions slipping 2.1 percent to 822,000, while overall POS transactions across all sectors declined 4.8 percent to 212.73 million. 

According to SAMA’s bulletin, the clothing and footwear sector saw the largest decrease, dropping by 13 percent to SR719.45 million. Spending on communications ranked next, dropping 12.5 percent to SR102.94 million. 

Restaurants and cafes — the sector with the biggest share of total POS value — recorded a 6.9 percent decrease to SR1.79 billion, while the food and beverages sector saw a 6.6 percent decrease, totaling SR1.73 billion and claiming the second-biggest share of this week’s POS. Spending on miscellaneous goods and services ranked third despite a 9.9 percent decline to SR1.36 billion. 

The top three categories accounted for approximately 39.9 percent of the week’s total spending, amounting to SR4.88 billion. 

The smallest decline was seen in spending on building materials which decreased by 0.2 percent to SR330.02 million, followed by expenditure on transportation which saw a 0.6 percent dip to SR718.02 million. 

The health sector saw a decrease of 8.1 percent to SR740.27 million, while the furniture sector declined by 3.7 percent to SR265.57 million. 

Spending on jewelry dipped by 11.7 percent to SR269.61 million, followed by a 9.9 percent decrease in spending on recreation and culture. 

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.20 billion, a 6 percent decrease from the previous week.  

Jeddah followed closely with a 7.2 percent dip to SR1.76 billion, while Dammam ranked third, down 6.9 percent to SR582.99 million. 

Abha saw the smallest decrease, inching down 1.1 percent to SR207.48 million, followed by Makkah with a 4.5 percent decrease to SR507.03 million.  

Hail recorded 3.69 million deals in transaction volume, down 7.6 percent from the previous week, while Tabuk reached 4.16 million transactions, dropping 9.1 percent. 


Oil Updates — prices stabilize after US-Japan trade deal

Updated 18 min 42 sec ago
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Oil Updates — prices stabilize after US-Japan trade deal

  • US-Japan trade deal puts the brakes on oil’s three-day slide
  • Market cautious ahead of EU-China summit

NEW DELHI: Oil prices were little changed on Wednesday after falling for three consecutive sessions as a US tariff deal with Japan improved global trade sentiment.

Brent crude futures were down 2 cents, or 0.03 percent, at $68.57 a barrel as of 8:54 a.m. Saudi time. US West Texas Intermediate crude futures were also down 2 cents, at $65.29 per barrel.

Both benchmarks lost about 1 percent in the previous session after the EU said it was considering countermeasures against US tariffs, as hope faded for a deal ahead of an AuG. 1 deadline. 

President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that includes a 15 percent tariff on US imports from Japan. He also said Japan had agreed to invest $550 billion in the US.

Meanwhile, industry expectations are low for Thursday’s EU-China summit, which will test the bloc’s unity and resolve amid mounting trade tensions with both Beijing and Washington.

“The slide (in prices) of the past three sessions appears to have abated but I don’t expect much of an upward impetus from news of the US-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

China’s commerce minister and the European Union’s trade chief had a “candid and in-depth” discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit, the Chinese ministry said on Wednesday.

Separately, US crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Distillate stocks rose by 3.48 million barrels, they added.

“This will offer some relief to the middle distillate market, which has been looking increasingly tight,” ING analysts wrote in a note, adding that low crude inventories will offer some support to prices even as a large surplus is expected to hit the market later in the year.

In another bullish sign for the crude market, the US energy secretary said on Tuesday that the US would consider sanctioning Russian oil to end the war in Ukraine.

The EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. But analysts said a lack of US participation would hinder the effectiveness of the package. 


Saudi Arabia opens business travel channel with Syria to boost investment

Updated 22 July 2025
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Saudi Arabia opens business travel channel with Syria to boost investment

  • Syrian businessmen can apply for travel licenses directly at embassy in Damascus
  • Kingdom to organise Saudi-Syrian investment forum in Damascus

RIYADH: Saudi Arabia will introduce travel permits for businessmen and investors from Syria to deepen bilateral relations and facilitate mutual visits. 

Syrian businessmen can now apply for travel licenses directly at the embassy in Damascus, the Kingdom’s embassy said in an official post on X. Meanwhile, Saudi investors seeking to visit Syria can register via the Interior Ministry’s e-platform. 

Saudi Arabia and Syria have made significant strides in restoring diplomatic ties, with the Kingdom reopening its embassy in Damascus in 2024 after a 12-year hiatus. In April, Saudi Arabia and Qatar announced a joint initiative to settle Syria’s $15 million debt to the World Bank as part of broader efforts to support the financial recovery of the war-torn nation. 

“The embassy announces the availability of travel permits for interested Saudi and Syrian businessmen and investors, enabling them to exchange visits and explore investment opportunities in the two brotherly countries,” the statement said. 

The Kingdom’s Ministry of Investment announced that it will organize a Saudi-Syria Investment Forum in Damascus to explore cooperation opportunities to promote sustainable development in the two countries.

In an X post, the ministry said the forum is expected to witness significant participation from public and private sector entities on both sides.

In June, Saudi Minister of Investment Khalid Al-Falih held a virtual meeting with his Syrian counterpart, Mohammad Al-Shaar, to explore investment partnerships and discuss opportunities for collaboration across public and private sectors. 

Al-Falih affirmed the Kingdom’s commitment to helping stabilize and develop the Syrian economy, adding that stronger ties would serve the mutual interests of both countries and promote regional economic prosperity. 

Further aiding Syria’s economic recovery, US President Donald Trump signed an executive order in June to dismantle sanctions against the country. 

Following the announcement, Syrian Minister of Foreign Affairs and Expatriates Asaad Hassan Al-Shaibani posted on X that the decision by the US administration would support Syria’s economic revival and reintroduce the country to the global community. 


Most Gulf bourses fall on US tariff concerns, weaker oil

Updated 22 July 2025
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Most Gulf bourses fall on US tariff concerns, weaker oil

BENGALURU: Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the EU’s trade deal with the US ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.

The EU is exploring broader counter-measures against the US as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.

US President Donald Trump’s imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.

Dubai’s main share index eased 0.3 percent, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.

Index heavyweight Dubai Islamic Bank dropped 1.2 percent while budget carrier Air Arabia fell over 3 percent, ending a five-session winning streak.

In Abu Dhabi, the index was under pressure as a wave of earnings releases this week kept many investors on the sidelines.

Qatar’s stock index reversed early losses to finish 1.1 percent higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.

Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank soared 6 percent, rising for a fourth straight session after reporting upbeat results.

Outside the Gulf, Egypt’s blue-chip index declined 1 percent, pulling back from a record high. 


Egypt current account deficit narrows to $13.2bn in 9 months through March

Updated 22 July 2025
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Egypt current account deficit narrows to $13.2bn in 9 months through March

DUBAI: Egypt’s current account deficit narrowed to $13.2 billion in the nine months through March 2025, from $17.1 billion in the same period a year earlier, Egypt’s central bank said on Tuesday.

The bank attributed the slimmer deficit to an 86.6 percent increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to 23 percent higher tourism revenue.

Oil exports declined by $430.5 million to $4.2 billion, from $4.6 a year earlier, while oil imports increased by $1.2 billion to $14.5 billion, from $9.7 billion.

Egypt has been seeking to import more fuel oil and liquefied natural gas this year to meet its power demands after enduring blackouts during periods of shaky gas supply in the past two years.

Concerns intensified after the supply of natural gas from Israel to Egypt dropped during Israel’s air war with Iran.

Suez Canal revenues declined to $2.6 billion, from $5.8 billion in a year earlier, as revenue from the vital global trade route continued to suffer because of Yemeni Houthis’ attacks on ships in the Red Sea.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenue reached $12.5 billion from July 2024 through March 2025, compared to $10.9 billion in the same period a year earlier.

Remittances from Egyptians working abroad increased to $26.4 billion, from $14.5 billion.

Foreign direct investment hit $9.8 billion, compared to $23.7 billion.