Tag Archives: Arabia

Saudi Arabia changes import rules from Gulf in challenge to UAE

Saudi Arabia changes import rules from GulfSaudi Arabia has announced the latest rule changes despite the fact that UAE is its second-biggest trade partner after China in terms of import value, based on recent Saudi trade data.

Saudi Arabia has amended its rules on imports from other Gulf Cooperation Council (GCC) countries to exclude goods made in free zones or using Israeli input from preferential tariff concessions – in a challenge to the United Arab Emirates (UAE) as the region’s trade and business hub.

Despite being close allies, Saudi Arabia and the neighbouring UAE are competing to attract investors and businesses. Their national interests have also increasingly diverged, such as in their relations with Israel and Turkey.

Furthermore, Saudi Arabia – the biggest importer in the region – is trying to diversify its economy and reduce its dependence on oil, while providing more jobs for its own citizens, a point also covered by the rule changes announced over the weekend.

Saudi Arabia will henceforth exclude from the GCC tariff agreement goods made by companies with a workforce made up of less than 25 percent of local people and industrial products with less than 40 percent of added value after their transformation process.

The ministerial decree published on the Saudi official gazette Umm al-Qura said all goods made in free zones in the region will not be considered locally made.

Free zones, a major driver of the UAE’s economy, are areas in which foreign companies can operate under light regulation, and where foreign investors are allowed to take 100 percent ownership in companies.

According to the decree, goods that contain a component made or produced in Israel or manufactured by companies owned fully or partially by Israeli investors or by companies listed in the Arab boycott agreement regarding Israel, will be disqualified.

The UAE and Israel signed a tax treaty last May as both sides work to spur on business development after normalising relations last year. Bahrain, another GCC member, has also normalised ties with Israel.

“The idea once was to create a GCC market, but now there’s the realisation that the priorities of Saudi Arabia and the UAE are very different,” said Amir Khan, senior economist at Saudi National Bank.

“This regulation is putting flesh on the bone of these political divergences,” he said.

In February, the Saudi government said it will stop giving state contracts to businesses that base their Middle East hubs in any other country in the region. That was another blow to Dubai, one of the UAE’s emirates, which has built its economy on its open-for-business credentials and the promise of a glitzy lifestyle for well-heeled expatriates.

Saudi Arabia has announced the latest rule changes despite the fact that the UAE is its second-biggest trade partner after China in terms of import value, based on recent Saudi trade data.

It is also a major re-exporting hub for foreign products to Saudi Arabia, including Turkish goods – which have been under an unofficial boycott by Riyadh.

The ministerial decree said companies with a local workforce of between 10 percent and 25 percent of the total could compensate for the difference by increasing the industrial added value in their products and vice versa. The added value should not be less than 15 percent, in any case, to benefit from the preferential tariff agreement, it added.

Saudi Arabia and the UAE have also faced off in the last few days about an OPEC Plus deal. The UAE opposed an agreement voted on Friday to raise output by some two million barrels per day from August to December 2021 and to extend remaining cuts to the end of 2022.

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Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.01%

Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.01%© Reuters. Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.01%

Investing.com – Saudi Arabia stocks were lower after the close on Sunday, as losses in the , and sectors led shares lower.

At the close in Saudi Arabia, the declined 0.01%.

The best performers of the session on the were AlJazira Mawten REIT (SE:), which rose 10.00% or 2.90 points to trade at 31.90 at the close. Meanwhile, Sedco Capital REIT (SE:) added 5.00% or 0.50 points to end at 10.50 and Saudi Research and Marketing Group (SE:) was up 4.74% or 4.30 points to 95.00 in late trade.

The worst performers of the session were Saudi Company for Hardware (SE:), which fell 3.78% or 2.70 points to trade at 68.70 at the close. Mobile Telecommunications Company (SE:) declined 2.42% or 0.36 points to end at 14.54 and CHUBB Arabia Cooperative Insurance (SE:) was down 2.16% or 0.95 points to 43.00.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 105 to 84 and 14 ended unchanged.

Shares in AlJazira Mawten REIT (SE:) rose to all time highs; gaining 10.00% or 2.90 to 31.90. Shares in Sedco Capital REIT (SE:) rose to all time highs; rising 5.00% or 0.50 to 10.50.

Crude oil for June delivery was up 0.20% or 0.13 to $ 64.84 a barrel. Elsewhere in commodities trading, Brent oil for delivery in July rose 0.21% or 0.14 to hit $ 68.23 a barrel, while the June Gold Futures contract rose 0.89% or 16.25 to trade at $ 1831.95 a troy ounce.

EUR/SAR was up 0.83% to 4.5616, while USD/SAR rose 0.01% to 3.7504.

The US Dollar Index Futures was down 0.81% at 90.203.

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Author: Investing.com
This post originally appeared on Stock Market News

India ramps up oil imports from Saudi Arabia after price cut

India’s state-owned refiners are ordering their regular volumes of Saudi crude oil for June after the Kingdom reduced its prices, Reuters has reported, citing unnamed sources familiar with the situation.

Saudi Arabia cut its official selling price for Asian clients earlier this month by between $ 0.10 and $ 0.30 in response to the surge in Covid-19 infections in India, which had a negative impact on its oil demand. Bloomberg noted this was the first price reduction of Saudi crude since December last year, reflecting weakening demand in the key Asian markets.
Also on rt.com Oil nears $ 70 buoyed by summer demand outlook & US inventories drop
OPEC’s largest producer announced oil price hikes for Asian buyers days after OPEC+ agreed to start adding barrels to their daily output, reducing a production curb that has had India repeatedly protesting against what it calls an artificial way of keeping oil prices high. The following month, Asian refiners and traders had to pay $ 1.80 above the Oman/Dubai benchmark average for shipments of Saudi crude.

Read more
India’s oil demand recovery threatened by new restrictions

In response, India ordered its state-owned refiners to reduce their orders for Saudi crude in May and look for alternatives in continuation of efforts to reduce its overwhelming dependence on Middle Eastern oil.

“We have asked companies to aggressively look for diversification. We cannot be held hostage to the arbitrary decision of Middle East producers. When they wanted to stabilize the market we stood by them,” an Indian government source told Reuters in early March.

Now, Saudi Arabia has cut the price of its flagship Arab Light grade to $ 1.70 above the Oman/Dubai benchmark average. At the same time, Riyadh raised prices for US buyers by $ 0.20 per barrel to reflect the US economic rebound, which has pushed up demand for crude.

“This time there is no direction from the ministry to cut imports in June and unlike last time they (Aramco) have reduced the prices as well,” one of Reuters’ sources told the news agency.

This article was originally published on Oilprice.com

Author: RT
This post originally appeared on RT Business News

Saudi Arabia may sell 1% of Aramco to a ‘leading global energy company’ – crown prince

Author: RT
This post originally appeared on RT Business News

Saudi Arabia may sell 1% of Aramco to a ‘leading global energy company’ – crown prince

Saudi authorities are currently negotiating a sale of 1% of state-owned oil company Saudi Aramco to an unnamed energy major, according to Crown Prince Mohammed bin Salman.

“I don’t want to give any promises, but there’s a discussion for the acquisition of a 1% stake by a leading global energy company,” bin Salman said in an interview on Saudi television.

He added that the world’s biggest oil company could sell shares to international investors within the next year or two. The prince did not name the company but said it is from a “huge” country.

Also on rt.com Saudi Aramco profits nearly cut in HALF as pandemic woes cripple oil markets

According to bin Salman, some Aramco shares earmarked for sale to a foreign investor could be transferred to the Public Investment Fund, the kingdom’s sovereign wealth fund, while some may be listed on the Saudi stock market. Over 98% of Saudi Aramco’s shares are owned by the Saudi government.

Aramco went public in late 2019 after several years of delays, becoming the biggest IPO on record. The initial public listing of 1.5% of its shares on Saudi local bourse, the Tadawul, helped the oil giant to raise $ 25.6 billion. Later, the company issued more shares raising the historical IPO to a record-breaking $ 29.4 billion.

Also on rt.com Saudi Arabia ‘financed itself into oblivion’ & now entire country is at risk of going under – Max Keiser

The IPO came as part of a state campaign aimed at attracting foreign investments, and became one of the pillars for Saudi Vision 2030, a multibillion-dollar plan developed to diversify the kingdom’s economy away from oil.

For more stories on economy & finance visit RT’s business section

Saudi Arabia boosted crude oil exports in January

Saudi Arabia boosted crude oil exports in January

The world’s largest oil exporter, Saudi Arabia, increased its crude oil exports to 6.582 million barrels per day (bpd) in January 2021, up from 6.495 million bpd in December 2020.

Total Saudi oil exports, including crude oil and total oil products, rose slightly again month-on-month by 44,000 bpd to 7.75 million bpd in January 2021, according to the Joint Organisations Data Initiative (JODI) , which compiles self-reported data from the countries.
Also on rt.com India to cut Saudi oil imports amid escalating standoff over output & diversification drive
Saudi Arabia has been raising its crude oil exports every month since June last year when the Kingdom saw its crude oil exports drop to their lowest on record at just below 5 million bpd, as OPEC’s de facto leader led efforts from the OPEC+ group to withhold a record amount of crude from the market in response to the crash in demand.

This year, Saudi Arabia’s crude oil exports are set to dip after January, as the world’s top oil exporter has been cutting its production by an extra 1 million bpd since February on top of its OPEC+ quota, while the only members of the alliance allowed to raise output since February are non-OPEC producers Russia and Kazakhstan.
Also on rt.com Attack on world’s largest crude terminal in Saudi Arabia sends oil surging to 13-month high
In January 2021, the Saudis surprised the market with the decision for a unilateral cut of 1 million bpd, while the OPEC+ group was only slightly easing the cuts due to the concessions to Russia and Kazakhstan.

At the latest OPEC+ meeting in early March, Saudi Arabia surprised the market yet again, saying it would keep the extra cut into April, instead of only in February and March as originally planned. OPEC+ decided not to ease the cuts in April—except for a combined 150,000 bpd increase for Russia and Kazakhstan—as the group is looking to tighten the market and keep its powder dry until it sees tangible proof of rebound in global oil demand.

This article was originally published on Oilprice.com

RT

Attack on world’s largest crude terminal in Saudi Arabia sends oil surging to 13-month high

Attack on world’s largest crude terminal in Saudi Arabia sends oil surging to 13-month high

Global prices for crude oil extended gains to a more than one-year high on Monday, after an alarm message from Saudi Arabia that the world’s largest crude terminal at Ras Tanura had been attacked. Output remained unaffected.

International benchmark Brent was up 2.9 percent to $ 71 a barrel – the highest since January 2020 –   while West Texas Intermediate climbed to $ 67,59 per barrel, marking a growth of 2.53 percent.

A crude-oil storage tank at Ras Tanura, on the Gulf kingdom’s coast, was reportedly targeted by a drone from the sea on Sunday, despite the terminal being one of the most protected facilities in the world. Its daily export capacities of around 6.5 million barrels a day account for about seven percent of global oil demand.
Also on rt.com Oil prices may return to $ 100 per barrel, Bank of America predicts
The attack comes as part of a recent escalation of warring tensions in the Middle East, after Yemen’s Houthi rebels reportedly launched a series of attacks on Saudi Arabia. Sunday’s incursion was the most  serious against a Saudi oil facility since September 2019, when a key processing facility and two oil fields came under fire, causing a halt to production for several days.

Crude prices extended their rally last week, following the news that the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers, together known as OPEC+, agreed to prolong existing output curbs for April. At the same time, Saudi Arabia, the world’s biggest oil producer, made a surprise announcement that it would maintain its voluntary supply cuts in April, withholding a million barrels a day from the market in addition to the cartel’s efforts.

For more stories on economy & finance visit RT’s business section

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