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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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          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
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          • 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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              Saudi Arabia embarked on a program of reforms

              OBG

              December 29, 2015
              in Economy
              0
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              Falling oil revenues and an expanding budget deficit were the hallmarks of Saudi Arabia’s economic activity in 2015, as heavy investment in development projects widened the Kingdom’s spending gap.

              The country also embarked on a programme of reforms aimed at broadening its economic base and increasing the flow of private investment. Results of the move, however, are not expected to be felt immediately, with growth set to ease in 2016 on the back of reduced government outlays.

              Reform-oriented
              The year began with the sad news of the death in January of King Abdullah bin Abdulaziz Al Saud. In the following months, his successor, King Salman bin Abdulaziz Al Saud, made several significant reforms, led by the replacement of the former government councils with two cabinet committees tasked with overseeing economic development and internal security, respectively.

              The reform process comes at a time when Saudi Arabia’s economy is slowing on more modest energy earnings.

              In addition to the paring down of government bodies, which is aimed at improving government services, officials are also looking at reducing energy and water subsidies, and imposing value-added taxes on consumer goods like cigarettes and soft drinks.

              The Kingdom maintained high levels of oil output throughout 2015, which contributed to lower international energy prices. While per-barrel prices fell by 20% over the year, Saudi output averaged 10.2m barrels per day during the first nine months of the year, up from around 9.7m in the first nine months of 2014.

              The strategy is thought to be aimed at shoring up market share against competition, though some analysts also view it as a tactical move to put pressure on US shale oil producers, whose production drove down Saudi exports to the US by more than 30% in 2015.

              Late in the year, the government hinted that it might step back from this policy, and issued a statement in November announcing a desire to work with other producers to reverse the fall in energy prices.

              While a scaling back of production could be one response to lower oil prices, the Kingdom is likely to be wary of any strategy that permits competing producers, such as Russia or Iran, to strengthen their market share.

              Fiscal focus
              The IMF expects Saudi Arabia’s GDP to expand by 3.4% in 2015, though growth is projected to ease somewhat in 2016, slowing to 2.2% as government spending is scaled back and several big-ticket development projects reach completion.

              According to estimates from credit ratings agency Standard & Poor’s (S&P), the Kingdom’s fiscal deficit is expected to reach 16% of GDP in 2015, a marked increase from the 1.5% recorded in 2014. The finalisation of several of its one-off investment projects ¬– such as the new Prince Muhammad bin Abdulaziz International Airport in Medina, completed in 2015 – should allow the government to rein in its fiscal deficit in 2016.

              To help bridge the spending gap, the government turned to capital markets, offering a SR15bn ($4bn) sovereign debt issue in mid-July, its first since 2007. As of November, the government had raised at least SR55bn ($14.7bn) through bonds sold to local banks and institutions, according to media reports.

              Concerns over falling oil revenue and a widening budget deficit prompted some international credit ratings agencies to revise their assessments in the second half of the year. In late August Fitch downgraded Saudi Arabia’s outlook to negative, while S&P lowered its long-term foreign currency sovereign credit rating from “AA-” to “A+” in late October, with a negative outlook. Moody’s, however, maintained its “Aa3” rating with a stable long-term outlook in November.

              Opening up to investment
              Although fiscal pressures are expected to continue into 2016, financial and tax reforms are poised to attract private investment across other areas of the economy.

              On June 15 new regulations came into effect permitting approved foreign banks, brokerage houses, fund managers and insurance companies based outside of the GCC to directly invest in the Saudi stock exchange. Previously, only GCC investors had been able to trade directly on the Tadawul, with others forced to do so indirectly through swaps or exchange-traded funds.

              However, restrictions on the types of investors that can participate have partly limited the influx of investment to date. Currently, international investors looking to enter the Kingdom are required to have at least $5bn of assets under management and a five-year investment track record, though officials suggested in October that the bar could be lowered. This could help the exchange’s efforts to join global indices, such as the MSCI Emerging Market Index.

              Another reform, a proposed 2.5% levy on undeveloped land in urban areas, could help generate new revenue for the state, while also stimulating building activity. According to some estimates, the measure would raise up to SR75bn ($20bn) in the first year. This could also help cut down on land hoarding and speculation, and encourage residential construction, thereby easing the current housing shortage.
              Oxford Business Group
              29 December

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