Russia seeks to bolster its logistics capabilities

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The development of traditional and new maritime routes through the Far East, and the expansion of port infrastructure in the region are among the key priorities of the Russian government. AN photo
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Updated 11 September 2023
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Russia seeks to bolster its logistics capabilities

  • Experts discuss ways to boost inter-regional cooperation

VLADIVOSTOK: Experts attending the Eastern Economic Forum, which is taking place in Russia, discussed ways to increase inter-regional cooperation in the field of logistics.

The development of traditional and new maritime and intermodal freight transport routes through the Far East, and the expansion of port infrastructure in the region are among the key priorities of the Russian government.

The forum’s venue in Vladivostok is buzzing with activities including panel discussions where top business executives, representatives from government agencies, and officials from different countries are discussing ways to boost cooperation in the field of logistics by using the latest digital technologies. 

Shifting priorities

“Now the logistics chains are changing, the orientation is toward the eastern direction. In this regard, the role of the Northern Sea Route as a new additional transport artery is significantly increasing,” Haji Mohammad Huseynov, first deputy minister of the Russian Federation for the development of the Far East and the Arctic, told Arab News after a panel discussion.

The Northern Sea Route is part of a new transport corridor benefiting the socioeconomic development of the Arctic and Far East and the development of a new international route for the sustainability of global supply chains. More than 2.5 million people inhabit the Russian Arctic, and significant mineral resources are concentrated there. Backbone infrastructure is being established for this new global trade artery, the perfect logistical model linking the country’s East and West. 

Experts at the forum were of the view that upgrading the infrastructure framework in the Far East creates new conditions for expanding the geography of transportation through this region and the growth of freight flows. 

For example, port capacity expansion projects are being implemented in the region today, and over the past year, Russian operators have launched new logistics services from Vladivostok to China, Vietnam, and other Southeast Asian countries. With the rapid growth of cargo volumes handled by Far East ports, the digitalization of logistics to reduce clearance time is coming to the forefront, they said. 

The Russian Far East has significant potential in terms of the introduction of new digital platforms and technological solutions. 

Issues discussed

Experts and officials discussed a number of issues such as: How to develop in the context of global digital transformation, and what are the challenges facing players in the Russian transportation and logistics market today, given the development of land and sea trade routes? Are additional technological solutions needed in the Far East in the conditions of growing freight traffic: infrastructure development projects, introduction of new digital services, etc.? How should Russia’s transportation infrastructure develop for the purpose of implementing digital management principles in the transportation system? What government support measures are needed for the Russian transportation sector to accelerate the launch of new routes through the Far East and the development of ship repair and shipbuilding services in this region?

The Northern Sea Route

The NSR ensures Russia’s Arctic and Far East remain connected to other countries, opens up opportunities for their integration into the world trade system, and increases the sustainability of regional and global supply chains. The swift development of the NSR places the issue of Arctic shipbuilding front and center. In addition to icebreakers, the NSR will need dozens of new ice vessels of the highest class in the near future. These include tankers, bulk carriers, supply vessels, container ships, and port fleets.

The cost of implementing the plan for the development of the Northern Sea Route NSR is about 1.8 trillion rubles ($18.5 billion), of which more than 620 billion rubles have been provided from the federal budget of Russia. 

Thus, the project, which was initially focused on supplying remote northern regions, and then on developing the resource base of the Arctic region, has become one of the most important for Russia. Now it is starting to solve the problem of cabotage, that is, linking the western and eastern parts of the country, which is a horizontal part of the global transport corridor.

“The (Russian) government adopted a plan for the development of the Northern Sea Route last year. It combines both obligations on the part of the state and on the part of (private) businesses. We focus on the formation of the current and prospective cargo base, ensuring the safety of navigation, building a fleet of both emergency and necessary cargo,” the Russian official told Arab News.

“Now the Russian government is guided by the fact that cargo traffic by 2024 will amount to about 80 million tons, and by 2030 it will increase to 150 million tons,” Huseynov added.

Digital solutions 

Another panel session at the forum discussed how transport and logistics companies have faced new challenges in recent times as logistics flows have been redistributed, new transport corridors have been created, and existing ones have been modernized. Moreover, there is now an even greater dependency on digital solutions, which optimize all links of the transport chain and are an integral tool for the logistics industry, particularly for companies that simultaneously use multiple modes of transport, such as sea, rail, and road. 

On the whole, digital solutions produce the best results in terms of the ratio of investments and the effect that is achieved. Such solutions include harmonizing multimodal electronic document management with partner countries, electronic navigation seals, and electronic queues at border crossings. These services enable companies to increase operational efficiency, and the state to control and manage supply chains, both domestically and abroad. The participants agreed on the need to improve the efficiency of digital services that ensure the seamless delivery of goods within a country and abroad, and develop electronic document management in the transport industry.


Qatar welcomes over 1.5m international visitors in Q1 2025

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Qatar welcomes over 1.5m international visitors in Q1 2025

RIYADH: Qatar received more than 1.5 million international visitors in the first quarter of 2025, according to newly released figures, as the country continues to push forward with its comprehensive tourism strategy anchored in major events, strategic partnerships, and diverse travel offerings.

While slightly below the 1.6 million visitors recorded during the same period in 2024, the latest numbers highlight Qatar’s sustained momentum in attracting global travelers.

Visitors from Gulf Cooperation Council countries accounted for 36 percent of arrivals, followed by Europe at 28 percent and Asia and Oceania at 20 percent, underscoring Qatar’s growing appeal across varied markets.

The increase aligns with the nation’s long-term objective of drawing six million visitors annually by 2030. It also coincides with the third phase of the Qatar National Development Strategy (2024–2030), launched in January 2024, which designates tourism as a critical pillar in the country’s economic diversification agenda.

“The achievements of the first quarter of 2025 demonstrate some of the planned outputs of our long-term approach to tourism development,” said Saad Bin Ali Al-Kharji, chairman of Qatar Tourism and chair of the board of directors of Visit Qatar.

“Part of the development transcends into deepening collaboration across local, regional and international markets and continue to diversify source markets, enhance visitor experiences, and reinforce Qatar’s position as a dynamic, year-round destination. We are excited to have welcomed 1.5M in Q1 and look forward to welcoming more guests throughout this year,” he added.

Qatar’s multi-access strategy also appears to be paying off. Of the total visitors, 51 percent arrived by air, 34 percent by land, and 15 percent by sea.

During the Eid Al-Fitr holidays, the country recorded its highest holiday visitor count in three years, attracting 214,000 travelers over an eight-day period — a 26 percent increase from 2024. Nearly half (49 percent) of those visitors came from GCC countries, representing an 18 percent year-on-year rise. Hotel occupancy during this period reached 77 percent, up from 67 percent the previous year.

The hospitality industry reported robust performance overall in Q1, with an average hotel occupancy rate of 71 percent and 2.6 million room nights sold. Key drivers included major international events such as Web Summit Qatar, the Doha Jewellery & Watches Exhibition, and the Qatar International Food Festival.

Reinforcing its position as a regional tourism hub, Qatar also hosted the 51st UN Tourism Regional Committee for the Middle East. The gathering focused on leveraging the country's strengths in sports, innovation, and infrastructure to promote sustainable tourism across the region.

Looking ahead, Qatar is set to continue its tourism push with a strong slate of upcoming events. The country will annually host the T100 Triathlon World Championship Final in partnership with the Professional Triathletes Organization through 2030. Additional highlights include the FIFA Arab Cup Qatar 2025, the Visit Qatar E1 Grand Prix of Electric Boats, and a series of high-profile festivals and sports events, all aimed at enriching Qatar’s tourism offerings and supporting its continued growth.


Syria to sign deal to import electricity from Turkiye, minister says

Updated 33 min 46 sec ago
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Syria to sign deal to import electricity from Turkiye, minister says

CAIRO: Syria is set to sign a deal to import electricity from Turkiye through a 400-kilovolt transmission line between the two countries “soon,” the Syrian state news agency cited the country’s energy minister as saying on Sunday.
Syria is also working on establishing a natural gas pipeline connecting the Turkish border town of Kilis and Syria’s northern city of Aleppo, minister Mohamed Al-Bashir said.
“The pipeline will allow the supply of 6 million cubic meters of gas per day to power plants in Syria which will contribute in improving the country’s energy situation,” he added.
Syria has suffered from severe power shortages. On separate occasions, the country said it was working with partners including Gulf states, in the energy and electricity sectors.


OPEC+ members to raise oil output by 411,000 bpd in June

Updated 48 min 57 sec ago
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OPEC+ members to raise oil output by 411,000 bpd in June

RIYADH: Eight OPEC+ member states, including Saudi Arabia, have agreed to raise oil production by 411,000 barrels per day in June as part of a gradual rollback of voluntary output cuts, the group has announced.

The decision was reached following a virtual meeting on May 3 and builds on an agreement made on Dec. 5 to gradually and flexibly restore 2.2 million bpd of voluntary cuts starting April 1, the Saudi Press Agency reported.

The June increase is equivalent to three monthly increments and reflects improving market conditions, including declining oil inventories.

The meeting included the Kingdom, Russia, and Iraq, as well as the UAE, Kuwait, Kazakhstan, Algeria, and Oman, all of whom had previously announced additional voluntary reductions in April and November 2023.

In a joint statement, the countries emphasized that the planned increases remain subject to change or temporary suspension depending on market developments, allowing the group to retain flexibility in supporting price and market stability, according to SPA.

The members also reiterated their full commitment to the Declaration of Cooperation, including the additional voluntary cuts agreed during the 53rd meeting of the Joint Ministerial Monitoring Committee held on April 3, 2024.

The statement affirmed that participating countries are determined to fully compensate for any excess production recorded since January 2024.

OPEC+ said it would hold monthly meetings to track market conditions, compliance levels, and progress of the compensation plan. The next meeting is scheduled for June 1 to set production targets for July.


Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

Updated 53 min 21 sec ago
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Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

RIYADH: Saudi Arabia launched the May issuance of its Sah savings sukuk, offering retail investors a fixed return of 4.66 percent as the government continues to push savings participation. 

The sukuk, part of the country’s broader local bond program, is issued by the Ministry of Finance and managed by the National Debt Management Center. It is available for subscription from May 4 at 10:00 a.m. until May 6 at 3:00 p.m. local time, the NDMC said in a statement. 

As part of the Vision 2030 Financial Sector Development Program, the initiative aims to boost personal savings by encouraging regular fiscal habits, expanding product access, and promoting financial literacy to support future goal planning. 

The offering, denominated in riyals, also supports the goal of raising the national savings rate from 6 percent to 10 percent by the decade’s end. 

The sukuk carries a one-year maturity and can be purchased in increments of SR1,000 ($266), with a cumulative cap of SR200,000 per individual across all program issuances.  

Allocation is scheduled for May 13, with redemption occurring between May 18 and 20. Payments will be disbursed on May 25.   

The Sah sukuk is accessible through digital platforms operated by SNB Capital, Al Rajhi Capital, and AlJazira Capital, as well as Alinma Investment and SAB Invest. 

The May issuance of the Sah savings product follows the fourth round issued in April, which offered a 4.88 percent return under the Ijarah sukuk structure. Available through the digital platforms of approved financial institutions, the bonds featured a one-year savings term with fixed returns payable at maturity. The minimum subscription was SR1,000, with a maximum cumulative limit of SR200,000 per user across all issuances during the program period.

Sah is Saudi Arabia’s first Shariah-compliant savings instrument for individuals. Structured under the Ijarah model — where returns are derived from leasing-based assets — the product is designed to offer a low-risk, fixed-income alternative with no fees and exemption from Zakat.  

Returns are paid upon maturity, with early redemptions allowed during set windows but without profit entitlement. 

NDMC CEO Hani Al-Madini said in March that Sah that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.  

In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions. 


Saudi fintech startup Nqoodlet secures $3m in seed funding

Updated 04 May 2025
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Saudi fintech startup Nqoodlet secures $3m in seed funding

RIYADH: Saudi fintech firm Nqoodlet has announced the successful closure of a $3 million seed funding round aimed at accelerating its mission to streamline financial operations for small and medium-sized enterprises.

The round was led by Waad Investments, with participation from Omantel, Sanabil 500 Investment, OQAL, Seed Holding, and a group of strategic investors.

Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet offers an integrated digital platform that includes smart corporate cards, real-time expense tracking, and financial automation tools. The startup is focused on transforming financial management for SMEs across Saudi Arabia and the wider Gulf Cooperation Council region.

According to the company, more than 600 SMEs have already adopted the platform, resulting in reported gains such as an 80 percent improvement in process efficiency and average annual cost savings of SR200,000 ($53,330) per business.

“This funding gives us the rocket fuel to scale faster, go deeper with banks, and bring financial clarity to thousands of businesses who deserve better,” said Milyani.

Yaser Al-Ghamdi, chief investment officer at Waad Investment, said the firm backed Nqoodlet because “they are not just building a product — they are building an entirely new future for financial technology.” 

With the new capital, Nqoodlet plans to enhance its technology infrastructure, launch open banking integrations, develop automated tax solutions, and expand strategic partnerships within the regional fintech ecosystem.

“This isn’t just a funding round. It’s a statement: GCC is ready for the next generation of fintech,” said Ghouth.