Tag Archives: Arabia

Saudi Arabia changes import rules from Gulf in challenge to UAE

Saudi 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%

© 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.

X: Therefore doesn`t .

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.
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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 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.

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