July 2018 - ssrdind

July 15, 2018

Iran launches secondary currency market

Iran has officially launched a secondary currency market which it hopes would help ease tensions around the prices of the US dollar.

Iran’s top banker says a secondary currency market meant to ease tensions around the prices of the US dollar has started to work.

Valiollah Seif, the governor of the Central Bank of Iran (CBI), said the second currency market would enable “minor importers” to buy their required dollars from exporters of certain non-oil products.

Seif emphasized that the price of the dollar would be set according to the supply and demand balance in the market.

He added that the CBI would allow 20 percent of dollars provided from exports of certain non-oil products excluding petrochemicals, steel and colored minerals to be sold to importers in the secondary currency market at rates mutually agreed by exporters and importers.

The Iranian rial plunged to a record low against the US dollar on the unofficial market last Sunday.

The dollar was being offered for as much as 87,000 rials, compared to around 75,500 on the previous Thursday.

In April, the rial also plunged to its lowest level against the dollar in the free market.

This forced Iran’s police to shut down several currency exchange shops and arrest a number of money changers after what was seen as a serious turmoil in exchange rates.

They intervened after the plunge of the rial which dropped to around 45,000 against the US dollar from 37,700 in mid-2017.

Commercial bankers at the time linked the rial’s slide partly to seasonal demand for US dollars, which rises around the end of the Persian year (March 21) when many Iranians travel abroad.

However, some maintained that US President Donald Trump’s hostile rhetoric, including his threat to reinstate previous sanctions on Iran, had been effective in the deterioration of the rial’s depreciation.

In May, Trump announced that he would pull America out of a 2015 nuclear agreement with Iran and re-impose the sanctions that the deal had envisaged to be lifted.

He has already emphasized that the sanctions which would be imposed on Iran would be “at the highest level”.

The sanctions would include a universal ban on Iran over buying or acquiring US dollars as well as restrictions over purchases of crude oil from the country and investing in its oil sector projects.

Source:http://www.payvand.com/news/18/jul/1014.html

July 15, 2018

E3 agree to establish dollarless trade with Iran: Russia’s Foreign Minister

Russia’s Foreign Minister Sergey Lavrov told the Russian media that France, Germany and UK have agreed to continue trade with Iran without using US dollar.

Major European countries party to nuclear negotiations with Iran – France, Germany and the UK – have agreed to maintain trade with Tehran independent from the US dollar, said Russia’s Foreign Minister Sergey Lavrov, according to Russian news outlet rt.com.

European companies are under increasing pressure from the US to cut business ties with Iran. Since the majority of transactions are currently conducted using the US dollar, firms working in Iran face potential US penalties.

According to Lavrov, the decision particularly concerns small and medium-sized companies. He explained that the participants in the Iranian deal have agreed to work out measures to protect the countries’ businesses from US sanctions.

“Everyone agrees that this [US sanctions – Ed.] is an absolutely illegal and unacceptable policy, but, of course, this can hardly be changed and there will be enough struggle in trade, economic and political spheres,” the Russian foreign minister said.

Last week, EU lawmakers gave approval for the European Investment Bank (EIB) to do business in Iran in an attempt to save the 2015 nuclear deal.

“We are granting the EIB the capacity to invest in Iran if suitable projects are found,” said Siegfried Muresan, a lawmaker from the center-right European People’s Party.

“The Iran deal is good for Europe’s security,” he told Reuters, referring to the accord signed by world powers in 2015.

The US withdrew from the deal on May 8. US sanctions will snap back in two parts, with a first round returning in August, and with the harshest sanctions returning in early November.

Source:http://www.payvand.com/news/18/jul/1029.html

July 15, 2018

Relative calm seen in Iran’s currency market

Serious signs have appeared in Iran that show the country’s volatile foreign currency market is already heading toward stability. According to media reports, the US dollar was today traded at Rials 78,300 in Tehran indicating a decline of around 4 percent compared to last Wednesday’s figure of Rials 81,000. The greenback was nonetheless higher by 8 percent than what it was traded in the capital four weeks ago at Rials 72,500.

On July 1, the Iranian Rial plunged to a record low against the US dollar on the unofficial market.

The dollar was being offered for as much as Rials 87,000, compared to around Rials 75,500 only a few days prior.

In April, the Rial also plunged to its lowest level against the dollar in the free market.

This forced Iran’s police to shut down several currency exchange shops and arrest a number of money changers after what was seen as a serious turmoil in exchange rates.

They intervened after the plunge of the Rial which dropped to around 45,000 against the US dollar from 37,700 in mid-2017.

Commercial bankers at the time linked the Rial’s slide partly to seasonal demand for US dollars, which rises around the end of the Persian year (March 21) when many Iranians travel abroad.

In May, Trump announced that he would pull America out of a 2015 nuclear agreement with Iran and re-impose the sanctions that the deal had envisaged to be lifted.

He has already emphasized that the sanctions which would be imposed on Iran would be “at the highest level”.

The sanctions would include a universal ban on Iran over buying or acquiring US dollars as well as restrictions over purchases of crude oil from the country and investing in its oil sector projects.

Source:http://www.payvand.com/news/18/jul/1042.html

July 10, 2018

New Oman retail destination set for Sept 2020 opening

Oman’s first outlet mall and largest retailtainment destination – Al Araimi Walk in Barka – is set to open in September 2020, Al Raid Group has announced.

The 240,000 sq m development project will feature 164 retail outlets, 42 food and beverage outlets, seven entertainment hubs, a hypermarket, and IMAX cinema.

It will also include an indoor waterpark, trampoline park, snow village, ice-skating rink, virtual reality zone, and cliff climbing adventure facility, the company said in a statement.

Construction on Al Araimi Walk is scheduled to begin this month and the property will open its doors by September 2020, it added.

Raid Abdullah Al Araimi, vice chairman, Al Raid Group said: “Having a sprawling tree-lined promenade, a high-tech digital park, gourmet restaurants, world-class designer brands and a lot more; each and every aspect of Al Araimi Walk will exemplify and reflect the essence of refined taste, and the innovative spirit of the Al Raid Group.”

He added: “Through the launch of Al Araimi Walk it is our endeavour to become the nation’s number one destination for families, tourists and shoppers.”

Last month, Al Raid Group said its Al Araimi Boulevard project is set to open later this year. The mall in Seeb is “well underway” and will be completed in time for a September opening.

With 70,500 sq m of space to be leased out, Al Araimi Boulevard will accommodate the “finest collection of labels from around the world”.

Source:https://www.arabianbusiness.com/retail/400025-new-oman-retail-destination-set-for-sept-2020-opening

July 10, 2018

Oman Air targets Europe, Far East with new Dreamliner

Oman Air has announced it will stick to expansion plans laid before the departure of its CEO earlier in the year, as it inducts a new Boeing 787-9 Dreamliner into its fleet.

The Dreamliner, delivered to the carrier yesterday, is the largest variant of the aircraft, and is configured with 30 business class suites, and 258 economy class seats.

The new aircraft will allow Oman Air to bring its full service experience on high yielding long-haul routes, “in Europe and the Far East,” the carrier said in a statement.

“The delivery of new aircraft is part of Oman Air’s fleet and network expansion,” acting CEO, Eng. Abdulaziz Al Raisi said. “We’re adding new aircraft to keep up with the expansion programme.”

Raisi was named acting chief after Paul Gregorowitsch stepped down as CEO in October.

Before his departure, Gregorowtisch had said the airline was looking to grow its network in Europe as well as expand to destinations in the Far East including Hong Kong.

The carrier expects to receive three more 787-9 Dreamliners in 2018, two of which will be equipped with first class cabins.

Oman Air also has 30 Boeing 737 MAX on order, as part of plans to increase its fleet from 48 to around 70, which will see the carrier operate around 75 destinations by 2023.

Source:https://www.arabianbusiness.com/industries/transport/385142-oman-air-targets-europe-far-east-with-new-dreamliner

July 10, 2018

DHL AND MAGENTO PARTNER TO HELP ONLINE MERCHANTS IN MENA

Deutsche Post DHL Group, the world’s leading logistics company, today announced its collaboration with Magento, the worldwide leader in cloud digital commerce innovation, as Premier Partner for Shipping. The partnership enables DHL and Magento to offer a broad range of shipping services to e-commerce merchants, small and medium enterprises (SMEs), start-ups and online entrepreneurs in the Middle East and North Africa (MENA) region.

A study by Gartner reports that only 15 per cent of businesses in region have an online presence and 90 per cent of online shopping involves product imports from outside the region.

The study findings illustrate the immense growth potential for e-commerce merchants and online retailers in the region. The study further identifies reliable delivery system as one of the key areas e-commerce players should focus on to drive business growth in MENA.

With the shift in trend towards consumer markets and growing use of e-commerce channels by SMEs in the MENA region, we see a tremendous potential in our partnership with Magento. We look forward to providing online merchants on Magento platform with reliable and flexible shipping options to help them deliver exceptional customer experiences,” said Nour Suliman, CEO, DHL Express Middle East and North Africa.

“Magento connects merchants and shoppers. DHL connects shoppers with their goods,” said John Pearson, CEO Europe and Global Head of Commercial, DHL Express. “Our collaboration will provide Magento merchants with industry-leading international shipping and value-added shipping features from DHL that easily and flexibly connect shoppers with their goods.”

Accepting the Magento partnership emphasizes again Deutsche Post DHL Group’s intention to be the leading global provider in e-commerce logistics. The Group’s divisions together comprise the most international company in the world, present in 220 countries and territories, allowing online merchants to leverage the Group’s unsurpassed global reach to execute their e-commerce strategy.

Online retailers connected with the Magento platform will be able to select from a range of DHL shipping services, with the partnership expected to expand over time to include an increasing portfolio of parcel, express, freight and other logistics services provided by the different DHL divisions.

“Commerce is no longer just about the “buy button” and our merchants are looking to meet their customers when and wherever they want to engage, buy, and receive their purchases,” said Mark Lenhard, Senior Vice President of Strategy and Growth at Magento Commerce. “By partnering with DHL, our joint merchants will be able to offer improved customer experiences and grow their business by providing their customers with the fast, convenient shipping options they expect.”

As a Premier Partner, DHL will connect with merchants through strategic placement on Magento properties and the core product merchant administration panel. In addition, DHL will have the opportunity to educate merchants on shipping integration best practices and how to increase cross-border shipping via the Magento Community online, webinars, thought leadership pieces, events including Imagine and MagentoLive, and in one-to-one meetings. DHL will also have early access to Magento product roadmaps so as to improve integrations and the merchant experience.

“We’re particularly excited about the potential of Magento Shipping, and will integrate our most advanced shipping solutions there,” said John Pearson. “Deutsche Post DHL Group has a history of working with leading technology partners like Magento. We will maintain our global leadership position only by innovating and adopting new technologies. Magento is at the leading edge of e-commerce technology, and DHL is the global logistics leader. Our association is sure to benefit both organizations – most importantly our e-commerce customers.”

Magento’s Premier designation recognizes global leaders and brings close collaboration in key categories of interest to e-commerce merchants to deliver exceptional, end-to-end customer experiences.

Source:https://www.muscatdaily.com/Archive/Business/DHL-and-Magento-partner-to-help-online-merchants-in-Mena-59n0

July 10, 2018

EOR TO CONTRIBUTE FOR 23% OF PDO’S TOTAL OIL OUTPUT BY 2025

Enhanced oil recovery (EOR), a process used to extract crude from ageing oil fields, could account for nearly a quarter of the overall production of Petroleum Development Oman (PDO) in next seven years.

EOR currently accounts for around ten per cent of PDO’s total production. Many of Oman’s oil fields are ageing and that could mean decline in production in the coming years, but with the help of EOR, which includes injecting steam, chemicals or other materials in the ground, the company plans to boost production.

‘Despite the challenging economic environment, PDO is continuing its journey in growing the future EOR contribution to oil production. It is anticipated that by 2025 more than 23 per cent of PDO’s production will come from EOR projects’, PDO said in its sustainability report released recently.

PDO is currently operating a range of commercial-scale EOR projects including chemical EOR, miscible gas injection and thermal applications. Concurrently, PDO is continuing to identify novel EOR technologies that have the potential to unlock difficult hydrocarbon resources. This is being done through a series of dedicated laboratory and field testing programmes, the report said.

PDO’s fact file also revealed that the company’s overall production in 2017 stood at 1.13mn barrels of oil equivalents per day, marginally lower than previous year as it cut production to comply with the sultanate’s commitment to OPEC’s agreement.

PDO’s average production of crude oil stood at 582,196 barrels per day (bpd), which is around 14,000bpd above the target for the last year while its gas production stood at 74.64mn cubic meters per day in 2017.

PDO has said that the decline in production was mainly due to Oman’s compliance with the production cut agreement between OPEC and non-OPEC producers.

Besides, PDO has taken various steps to curb expenditure and improve efficiency. These measures have helped it save over around US$390mn in oil and gas capital expenditure in 2017. Moreover, the company also took steps to renegotiate contracts which are likely to result in cost saving of around US$180mn over the next three to four years.

Source:https://www.muscatdaily.com/Archive/Business/EOR-to-contribute-for-23-of-PDO-s-total-oil-output-by-2025-59og

July 9, 2018

‘New era’ Gulf carriers look to join aviation alliances

Two of the Gulf’s resurgent carriers have said they are looking at the possibility of cooperation with other airlines including joining alliances in an attempt to stem losses and reinvent their business models.

In an interview with Abu Dhabi daily The National last week, Etihad Aviation Group CEO Tony Douglas, who took over in January, said the airline could be looking at building closer ties with airlines within the Star Alliance network.

“In the past, the Etihad Group was identified as being an alliance itself and, consequently, under the rules of Star Alliance, its members were not allowed to engage in collaboration with us on codeshares,” Douglas was quoted as saying.

Douglas stopped short of saying anything that would confirm Etihad would be joining the global Star Alliance network just yet.

The airline would depart from “growth for growth’s sake” and instead “look for sustainable growth” including through “partners to build connectivity with their networks through codeshares wherever both parties agree to do so,” he added.

Etihad has sustained losses of nearly $3.5 billion owing to a strategy involving buying stakes in European carriers Alitalia and Airberlin that have since both filed for insolvency.

In a new strategy unveiled last week Douglas said Etihad would now focus on point to point flights that keep its focus on Abu Dhabi. That strategy could see it align itself more closely with carrier’s that were open to codeshare partnerships, possibly similar to its extensive January 2017 codeshare agreement with Star Alliance member Lufthansa.

Etihad’s new direction echoes that of another airline that was once considered the benchmark of aviation experience over the Gulf’s skies.

Gulf Air partnerships
Bahraini carrier Gulf Air’s Krešimir Kučko told reporters on the sidelines of ACI Europe & World general assembly, that the airline’s new forward plans would involve more partnerships.

Appointed in November last year, Kučko is vying to bring Gulf Air back to profitability after years of losses at the carrier and a crisis of leadership that saw the abrupt resignation of its CEO last year.

The airline signed a number of codeshare partnerships with Star Alliance carriers Aegean Airlines and Turkish airlines last year and will likely look to grow those partnerships with other carriers as it increases its scope of operations.

“The national carrier has a future,” he told AIN earlier in the year. “We are evaluating the possibilities and will start the process of approaching the groups at the end of the summer,” he said.

Source: https://www.arabianbusiness.com/transport/400233-new-era-gulf-carriers-look-to-join-aviation-alliances

July 9, 2018

Saudi unemployment increases despite decline in expat workers

Saudi Arabia is moving ahead with plans to curtail its dependence on foreign labour, but the intended benefits haven’t yet trickled down to the country’s own nationals as intended.

Expat jobs declined by 2.3 percent, or 234,191 over the first three months of 2018 to just over 10.18 million, according to results revealed by the country’s General Authority for Statistics.

However, Saudi Arabia’s unemployment rate for nationals over the age of 15 creeped up to 12.9 percent, up from 12.8 percent in the fourth quarter of 2017.

A closer look at the results shows that Saudi Arabia’s male and female workforce participation rates registered increases, now amounting to 63.5 percent and 19.5 percent of each gender’s active and employable population.

Those increases contrast with unemployment rates for each: Saudi women’s unemployment rate decreased during the quarter to 30.9 percent from 31.10 percent in the fourth quarter of 2017; the unemployment rate for Saudi men increased to 7.6 percent during the same period.

Saudi Arabia’s Ministry of Labour and Social Development issued a new decree earlier in the year limiting retail and other operational jobs in 12 different sectors to Saudi nationals.

The country’s Ministry of Civil Service has also announced it wants only nationals to staff roles in its public sector.

The nationalisation initiatives are intended to create over 1 million jobs over the next decade.

But the latest measures from the state of Saudi Arabia’s workforce show that the total number of workers in the Kingdom has actually declined by 247,628 to 13,333,513.

Unemployment across the country, including rates for both nationals and expats, has risen to 6.1 percent in the first quarter of 2018 from six percent in the last quarter of 2017.

Source:https://www.arabianbusiness.com/politics-economics/400163-saudi-unemployment-increases-despite-decline-in-expat-workers

July 9, 2018

Oman’s long-term outlook makes it attractive for investment

Majid Al Futtaim has created employment opportunities for 42,000 people in the sultanate

Oman has “strong fundamentals” that make it an attractive place for large-scale and modern developments, Majid Al Futtaim CEO Alain Bejjani.

On Wednesday, Majid Al Futtaim and the Oman Tourism Development Company (OMRAN) announced a partnership to develop the western portion of Madinat Al Irfan, the sultanate’s largest urban development project.

The $13 billion joint venture will see the development of a mixed-use community that will include approximately 11,000 residential units, 100,000 square metres of retail space, 700,000 square metres of office space and a number of cultural and lifestyle offerings.

The project’s announcement, however, comes at a time in which Oman’s economy is facing a significant contraction of oil output and negative GDP growth, prompting the International Monetary Fund (IMF) to urge the country to further diversify its economy and work to create more jobs.

Speaking to reporters ahead of the announcement on Wednesday, Bejjani said that the project is a long-term initiative that takes advantage of Oman’s long-term economic outlook.

“Today may not be the best time, but this project is over two decades,” he said. “If you look at population and tourism growth in Oman, the fundamentals are there. We aren’t looking at this project in the context of today, but in the context of Oman’s fundamentals.”

By 2040, Oman plans to attract 5 million visitors for year and employ 500,000 people in the tourism sector.

Peter Walichnowski, the CEO of OMRAN, said that he believes that Madinat Al Irfan would have the added benefit of attracting foreign businesses, particularly those involved in the travel and hospitality industries.

“The signal we’d like to send to the rest of the world is that Oman is open for business, particularly in the tourist business,” he said.

Additionally, in his remarks, Bejjani noted that said Majid Al Futtaim is Oman’s largest non-energy Gulf investor and a long-term contributor to the local economy, having invested over $1.8 million and created employment opportunities for 42,000 people in the country.

Source: https://www.arabianbusiness.com/politics-economics/399628-omans-long-term-outlook-makes-it-attractive-for-investment-says-majid-al-futtaim-ceo