Day: November 3, 2022

Riyadh, The global economy is facing one of the most tumultuous periods in recent history. As the likelihood of a global recession has increased, according to a new report from Saudi Arabia’s Ministry of Economy and Planning (MEP).

Volatility continues to gather momentum, creating downward pressure in global markets including China, the EU, the UK, and the US. Despite a slowing economic growth outlook, the Kingdom of Saudi Arabia registered real GDP growth of 8.6% y/y in the third quarter of 2022. Inflation was also contained at 2.9% – one of the lowest rates among the G20 nations.

This is according to the new version of the economic report issued by the MEP. They will be published quarterly by the ministry to provide a regular, accurate and detailed update on the performance of both the global economy and the Kingdom’s local market.

Domestically, real non-oil GDP growth expanded by 5.9% following sixth consecutive quarters of growth, a run that stretches back to the first quarter of 2021. Manufacturing, wholesale, retail trade, restaurants and hotels, construction and transport were among the key contributors to the Kingdom’s non-oil GDP growth in the third quarter of 2022.

Despite persistent supply-chain bottlenecks clogging up global trade, the Kingdom’s trade balance climbed by 87% to SAR 72 billion in August 2022. Exports to China, Japan and the US increased, while India and South Korea doubled imports of Saudi Arabian goods year-on-year as the country deepens its critical role on the international stage.

“The Ministry of Economy and Planning’s first quarterly report is a milestone in our efforts to become more transparent by providing access to the latest data and statistics on the Kingdom’s economic performance,” said His Excellency Faisal F. Alibrahim, Minister of Economy and Planning. “The report outlines our country’s strong economic performance, continued progress toward achieving Vision 2030 and drive to deliver sustainable diversification that remains pivotal to the long-term prosperity of our people and nation.”

He added: “Looking ahead, our growth prospects remain strong, and investors should be bullish about the near-term performance of the economy thanks to strong energy prices, non-oil growth, robust trade and the Kingdom’s growing ability to attract talent, tourism and investment. As we continue to catalyze greater flows of foreign direct investment in new areas including the broader energy transition and circular economy, we will add greater resilience to our economy at a time when the global economic landscape is affected by multiple crises.”

Covering eight categories, MEP’s quarterly economic report aims to provide a comprehensive overview of the economy across real GDP, monetary policy, fiscal measures, diversification, markets and business, households, investment and trade, and labor markets. Data comes from a variety of government sources including the General Authority for Statistics and the Saudi Central Bank.

You can read or download the full report by accessing it via MEP’s website here:

https://www.mep.gov.sa/QuarterlyReports/Ministry%20of%20Economy%20&%20Planning%20-%20Quarterly%20Report.pdf

Source: Saudi Press Agency

Baghdad Undersecretary of the Ministry of Foreign Affairs, Omar Al-Barzanji, held a meeting with Takagi Kei, Deputy Foreign Minister of Japan, accompanied by the Japanese Ambassador in Baghdad Matsumoto Futoshi, at the ministry’s headquarters.

The two sides affirmed their keenness to develop and consolidate political and economic relations between the two friendly countries.

The Undersecretary indicated that Iraq is looking forward to building economic partnerships with a number of countries in the world, led by Japan, in order to rebuild and rehabilitate the infrastructure, and touched on the historical relations between Iraq and Japan and the importance of strengthening them to serve the interests of the two friendly countries, calling on his Japanese counterpart to reconsider recommendations to avoid travel to Iraq, in line with the security and political developments in the country, thus enabling businessmen, investors, academics, experts and tourists to travel to Iraq.

For his part, Takagi praised the development of bilateral relations between the two friendly countries and promised to study the issue of facilitating travel to Iraq, especially after his tour in the Baghdad regions and his visit to the National Museum and the opening of the Japanese pavilion at the Baghdad International Fair and watching the improvement in security there.

He added that he will visit Basra Governorate to inaugurate the large Basra water projects and Al-Hartha thermal power station, which Japanese companies have contributed to rehabilitating, and the two sides agreed to exchange official visits between the two friendly countries and work to overcome the obstacles facing some Japanese companies operating in Iraq.

Source: National Iraqi News Agency

Riyadh, His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF) announced today the launch of Ceer, the first Saudi electric vehicle brand that will contribute to Saudi Arabia’s automotive manufacturing sector.

According to Saudi Press Agency (SPA), the launch comes in line with PIF’s strategy to focus on unlocking the capabilities of promising sectors locally that can help drive the diversification of the economy, to help achieve the objectives of Vision 2030. In addition, the company will contribute to Saudi Arabia’s efforts towards carbon emissions reduction and driving sustainability to address the impact of climate change.

His Royal Highness Crown Prince Mohammed bin Salman said: “Saudi Arabia is not just building a new automotive brand, we are igniting a new industry and an ecosystem that attracts international and local investments, creates job opportunities for local talent, enables the private sector, and contributes to increasing Saudi Arabia’s GDP over the next decade, as part of PIF’s strategy to drive the economic growth in line with Vision 2030.”

Ceer is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia, and will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA region, including sedans and sports utility vehicles. A part of PIF’s strategy to diversify Saudi Arabia’s GDP growth by investing in promising growth industries, Ceer will attract over US$150 million of foreign direct investment, and create up to 30,000 direct and indirect jobs. Ceer is projected to directly contribute US$8 billion to Saudi Arabia’s GDP by 2034.

The company, which is a joint venture between PIF and Hon Hai Precision Industry Co. (“Foxconn”), will license component technology from BMW for use in the vehicle development process. Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies. Each vehicle will be designed and manufactured in Saudi Arabia, and tested to the highest global automotive quality control and safety standards. Ceer vehicles are scheduled to be available in 2025.

Chairman of Hon Hai Technology Group, Young Liu, said: “Foxconn is excited about our partnership with PIF to create a new automotive company that will focus on designing and manufacturing electric vehicles in and for Saudi Arabia. We will leverage Foxconn’s technological expertise to support Ceer’s vision of creating a range of iconic electric vehicles that are built around the themes of connectivity, infotainment and autonomy. We want to make electric vehicles mainstream, and that is what Ceer is going to achieve in Saudi Arabia and the wider region.”

Source: Bahrain News Agency

Baghdad Prime Minister Muhammad Shia Al-Sudani received today, Thursday, a phone call from US Secretary of State Anthony Blinken, where he offered his congratulations to the Prime Minister on the occasion of forming the government and assuming his duties.

The call witnessed an emphasis on the importance of strengthening and developing relations between Iraq and the United States of America in various fields, and the two sides discussed mutual commitment to the strategic framework agreement between the two countries and common interests in maintaining Iraq’s security, stability and sovereignty.

Blinken affirmed the United States’ keenness to work with the government and people of Iraq in increasing economic opportunities, promoting Iraq’s energy independence and addressing the climate crisis, and renewed the US government’s commitment to supporting Iraq in its war against and defeating ISIS terrorist gangs.

The US Secretary of State welcomed Al-Sudani’s call for reforms and his pledge to fight corruption.

Source: National Iraqi News Agency