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    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Arab states imported 1.73 million agricultural commodities from Egypt

    Arab states imported 1.73 million agricultural commodities from Egypt

    Wheat yield boom boosts Oman’s food security

    Wheat yield boom boosts Oman’s food security

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

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    • Business & Economy
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      Saudi: 53 new industrial licenses issued in April 2023

      Saudi: 53 new industrial licenses issued in April 2023

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Saudi transport authority approves 15 licensing, technical guides for railways

      Saudi transport authority approves 15 licensing, technical guides for railways

      Number of industrial decisions up by 10.56% to 356 in 2021

      Number of industrial decisions up by 10.56% to 356 in 2021

      Egypt’s macroeconomic conditions improving, says minister

      Egypt’s macroeconomic conditions improving, says minister

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

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      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Oman releases more Sultan Haitham City details

      Oman releases more Sultan Haitham City details

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Oman gears up for its first smart city

      Oman gears up for its first smart city

      Saudi real estate ‘booming’ on big office space demand

      Saudi real estate ‘booming’ on big office space demand

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        NEOM’s green hydrogen project is formally under execution: ACWA Power

        NEOM’s green hydrogen project is formally under execution: ACWA Power

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Total-led consortium to start drilling offshore Lebanon in September

        Total-led consortium to start drilling offshore Lebanon in September

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        • Hospitality
          Qatar: Over 700 hotel keys added in Q1

          Qatar: Over 700 hotel keys added in Q1

          Jordan’s tourism income surges 88% as visitors flock to the country

          Jordan’s tourism income surges 88% as visitors flock to the country

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Leisure sector in Qatar stronger after World Cup 2022

          Leisure sector in Qatar stronger after World Cup 2022

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

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        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food
          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Arab states imported 1.73 million agricultural commodities from Egypt

          Arab states imported 1.73 million agricultural commodities from Egypt

          Wheat yield boom boosts Oman’s food security

          Wheat yield boom boosts Oman’s food security

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics
            Saudi: 53 new industrial licenses issued in April 2023

            Saudi: 53 new industrial licenses issued in April 2023

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Saudi transport authority approves 15 licensing, technical guides for railways

            Saudi transport authority approves 15 licensing, technical guides for railways

            Number of industrial decisions up by 10.56% to 356 in 2021

            Number of industrial decisions up by 10.56% to 356 in 2021

            Egypt’s macroeconomic conditions improving, says minister

            Egypt’s macroeconomic conditions improving, says minister

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Oman releases more Sultan Haitham City details

            Oman releases more Sultan Haitham City details

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Oman gears up for its first smart city

            Oman gears up for its first smart city

            Saudi real estate ‘booming’ on big office space demand

            Saudi real estate ‘booming’ on big office space demand

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              NEOM’s green hydrogen project is formally under execution: ACWA Power

              NEOM’s green hydrogen project is formally under execution: ACWA Power

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Total-led consortium to start drilling offshore Lebanon in September

              Total-led consortium to start drilling offshore Lebanon in September

              Trending Tags

              • Hospitality
                Qatar: Over 700 hotel keys added in Q1

                Qatar: Over 700 hotel keys added in Q1

                Jordan’s tourism income surges 88% as visitors flock to the country

                Jordan’s tourism income surges 88% as visitors flock to the country

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Leisure sector in Qatar stronger after World Cup 2022

                Leisure sector in Qatar stronger after World Cup 2022

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

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              Deal with Iran boosts Turkey’s hopes of trading in national currency

              Al Monitor

              October 18, 2017
              in Business, Finance
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              The trade deal that Turkey reached with Iran earlier this month offers the best chance yet to boost the use of the Turkish lira in foreign trade, an objective that Ankara has long pursued. The trade balance between the two neighbors paves the way for the use of the Turkish lira and the Iranian rial in commercial exchanges. Last year, Turkey’s exports to Iran amounted to $4.9 billion, while imports were worth $4.6 billion.
               
              Following President Recep Tayyip Erdogan’s Oct. 4 visit to Tehran, the central banks of the two countries signed a swap agreement, which amounts to a mutual commitment on exchanging national currencies.
               
              The recent political rapprochement between Turkey and Iran, especially on Syria and Iraq, is an important element encouraging trade. This has boosted optimism that export and import figures will be rising fast in the coming period. During his visit to Tehran, Erdogan set the target at $30 billion in annual bilateral trade. The two sides aim to enhance cooperation in every realm, from energy and tourism to road transport and defense industry.
               
              Iranian President Hassan Rouhani stressed the two countries would be using their national currencies in banking and trade to boost economic ties. He noted they had also agreed to begin talks on increasing Turkey’s natural gas imports from Iran. The payment for the gas is expected to be in Turkish liras.
               
              According to Seyed Mohammed Hossein Adeli, the Iranian secretary-general of the Gas Exporting Countries Forum, the Turkish-Iranian decision to trade in national currencies is feasible, particularly in energy trade, and could encourage others to follow suit.
               
              To reduce its dependence on foreign exchange, Ankara has sought to increase the use of the Turkish lira on various fronts, from foreign trade to public tenders. Economic ties with Iran have now offered a strong ground for advancing this policy. Besides trade, the two neighbors are likely to use the lira and the rial in tourism as well.
               
              Yet the prospects are not that rosy when it comes to two other major target countries — Russia and China — because of Turkey’s gaping deficits in its trade with the two economic giants.
               
              In 2016, Turkish exports to Russia were worth $1.7 billion, while its imports hit $15.1 billion. The Turkish lira and the Russian ruble are convertible currencies, but because they are not used widely in international trade, they are not reserve currencies like the dollar and the euro. The international trading of nonreserve currencies is typically marked by significant exchange differences; hence, no one wants to accumulate nonreserve currencies and incur losses. This explains also Russia’s reluctance to trade in national currencies with Turkey.
               
              In 2009, following then-President Abdullah Gul’s trip to Moscow, the Turkish media had trumpeted the prospect of using the lira and the ruble in bilateral trade. Eight years on, there is little progress to report.
               
              The issue, however, has remained on the agenda. Speaking after a visit to Russia in August 2016, Erdogan said, “If we trade in rubles and Turkish liras with Russia, this would bring the price of the dollar down [and] we would get rid of the dollar pressure.” In December, Prime Minister Binali Yildirim’s trip to Moscow was preceded by reports that the visit would mark “the first concrete step” toward using national currencies in bilateral trade, but 10 months later, the issue remains an unrealized project.
               
              In remarks to Al-Monitor, Yaman Toruner, a former governor of Turkey’s central bank, explained why Ankara’s proposal was not feasible in Turkish-Russian trade. “If we are going to pay Russia in rubles, we need to find rubles from somewhere. Then, Russia may accept rubles but it may reject Turkish liras because it may not be able to use them afterward,” Toruner said.
               
              Pointing to the big imbalance in bilateral trade, he added, “Russia is selling us oil and buying tomatoes. Let’s say it has to receive $1 billion for the oil and pay $300 million for the tomatoes. There is a difference of $700 million. If Russia converts the Turkish liras to dollars according to its international value, we will be incurring losses because the difference between the buying and selling value of the Turkish lira on the international market is very big.”
               
              When it comes to China, the trade imbalance is even bigger. Last year, Turkey’s exports to China were worth $2.3 billion, white its imports stood at a staggering $25.4 billion.
               
              Still, Didem Engin, the former deputy chair of the Turkey-China Business Council and now a lawmaker for the main opposition Republican People's Party, believes that trade in national currencies could be increased with China, but sees little gain for Turkey.
               
              Stressing that international acceptance of the Chinese yuan was greater compared to the Russian ruble, the Iranian rial and the Turkish lira, Engin said, “China has a state policy to increase the use of the yuan in international trade and financing; hence many countries have begun to trade in yuan. At the end of 2015, the International Monetary Fund decided to designate the yuan as a reserve currency, and the decision took effect in October 2016. Using national currencies in trade between Turkey and China would strengthen the yuan as a reserve currency, but the benefits for Turkey would be limited because of the huge trade imbalance in favor of China.”
               
              Last year, the Turkish and Chinese central banks concluded their first currency swap, boosting hopes of increasing the use of national currencies in trade.
               
              According to Turkey’s semi-official Anatolia news agency, Turkish exports using Turkish lira increased 118% in the first seven months of 2017, amounting to nearly $9 billion. Imports paid in Turkish liras, meanwhile, were 31% in the same period, amounting to $10.3 billion. According to the Turkish Exporters Assembly, the number of countries and regions where Turkish exporters have traded in Turkish liras has reached 182.
               
              The figures speak of progress, but the lira remains very far from what is required to become a reserve currency. To gain a global standing, the lira needs to increase its weight in Turkey’s own trade. The data for the first seven months of the year, however, indicates that trade in Turkish liras accounted for only 10% of exports and 8% of imports.
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