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BAB collaborates with members to advance financing for SMEs

Scion Industrial Engineering Pvt. Ltd.

The Bahrain Association of Banks (BAB) has addressed ways to overcome the challenges facing many small and medium enterprises (SMEs) when applying for financing from banks.

“We all know how important SMEs are, which make up more than 95% of the number of enterprises in Bahrain. We seek to help these institutions rise and grow. One BAB’s performance indicators is to increase the share of SME financing in a phased manner and on a gradual basis to reach 20% of the local financing portfolio of retail banks by the end of 2025,” said Dr Waheed Al Qassim, CEO of BAB.

Chairing a meeting attended by several Bahraini banks and insurance companies, Dr Al Qassim said: “Various Bahraini banks and insurance organisations are keen to provide finance for SMEs.”

Tamkeen’s role
The meeting focused on the significant role played by the Labour Fund (Tamkeen) in supporting SMEs in the framework of boosting the private sector’s role in overall development.

The meeting affirmed the readiness of banks to expand their provision of financing through guarantor partners such as Tamkeen or other programmes and initiatives. This is within the framework of Bahraini banks’ keenness to advance economic development in Bahrain.

Source:https://www.abc-bahrain.com/News/1/343683

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Crypto exchange giant Binance launches in Bahrain

Global blockchain services giant Binance has launched binance.bh, a new platform that allows users to access Binance’s range of regulated products and services.

This includes direct top-ups and withdrawals, in local currencies, the company said in an emailed statement on Monday. All users have to do is link their bank accounts with their binance.bh account.

Bahrain’s position as the region’s fintech hub
“As part of the ongoing collaboration between banks and industry and sector leaders, The Central Bank of Bahrain (CBB) welcomes Binance’s decision to establish a regional headquarters for its Middle East operations in Bahrain. CBB aims to develop a supervisory framework that facilitates innovation and appropriate regulatory controls for encrypted asset trading service providers and their clients, based on global trends and developments in financial services,” Bahrain Central Bank governor Rasheed Al Maraj said.

Bahrain Economic Development Board chief executive Khalid Humaidan also added that Binance’s launch in the country “reaffirms” Bahrain’s position as a crypto assets, blockchain and fintech innovations leader, regionally and globally.

“Bahrainis have become steadfast early adopters of crypto assets, and it is fantastic that Binance can play a part in addressing the local population’s keen interest to be on the cutting edge of financial innovation,” Binance regional head of europe and MENA Richard Teng said.

Binance has placed its focus on compliance and security controls, and is working with regulators to ensure user protection as well as market integrity.

This commitment has “allowed the company to establish a strong foothold in the GCC and contribute to the region’s status as a fast-emerging global crypto asset hub,” the statement added.

SOurce:https://www.arabianbusiness.com/industries/banking-finance/crypto-exchange-giant-binance-launches-in-bahrain

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Ministerial follow-up committee checks on Al Hassan Industrial Estate, Irbid Development Zone

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The ministerial committee for following up on the performance of the free and development zones on Saturday checked on Al Hassan Industrial Estate (HIE) and Irbid Development Zone (IDZ).

Deputy Prime Minister and Minister of Local Administration Tawfiq Kreishan during his meeting with a number of investors at the HIE and the IDZ, said that the visit is meant to keep an eye on the situation at the two places and the services provided for stakeholders.

Notes from investors’ will be shared with Prime Minister and Minister of Defence Bisher Al Khasawneh so that the appropriate decisions can be taken by the Cabinet, Kreishan said.

Most noted challenges are associated with bureaucracy and need for stability in laws and regulations, notably those concerning customs, taxes, environment, labour and industry-related issues, Kreishan added, according to the Jordan News Agency, Petra.

Regarding investors’ demands for allowing the recruitment of foreign workers, Kreishan said that this issue is related to the epidemiological and health situations in their home countries.

Minister of Industry, Trade and Supply Maha Al Ali said that the ministry, in cooperation with the Jordan Chamber of Industry, Jordan Commission of Investment and the Industrial Estates Company, is moving towards easing licensing-related procedures for businesses within the HIE and the IDZ.

Government tenders will give preference to local products, Ali said in response to complaints from local investors about unfair competition by imports.

Environment Minister Nabil Masarweh emphasised the reduction of the period required to conduct the environmental impact study by the authorities to be 10 days instead of 15.

Minister of Labour Yousef Shamali stressed that priority is given to Jordanians for administrative posts, pointing out that once granted Jordanian citizenship, investors are treated like Jordanians with regard to exit and entry requirements.

President of the Jordan and Amman Chambers of Industry Fathi Al Jaghbir emphasised the importance of instilling the principle of reciprocity with regard to exports and imports, as Jordan faces difficulties in exporting to a number of countries.

Jordan Industrial Estates Company (JIEC) Director General Omar Juwaid said that the HIE, which was established in 1991, is home for 132 industrial investments at a total volume surpassing JD427 million. Juwaid added that the HIE provides more than 29,000 jobs, in addition to indirectly employing thousands of Jordanians in support and logistical services.

CEO of the Guarantee Company for Development of Development Zones Loay Sarayreh indicated that IDZ is home for many technical and technological investments at a volume of JD44 million, adding that the IDZ provides 1,445 jobs for Jordanians. Sarayreh noted that 15,000 job opportunities will be made available after the completion of the comprehensive expansion plan, according to Petra.

Source:https://www.jiec.com/en/news/151/

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Investments in industrial estates increased by 2% in first half of 2021

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The volume of new investments in industrial estates for the first six months of 2021 increased by 2 per cent to JD73 million compared with JD71.3 million during the same period last year, the Jordan Industrial Estates Company (JIEC) said on Monday.

The JIEC, since the beginning of the year, has signed 82 contracts with 54 new companies and renewed 28 contracts in the industrial and services sectors. These investments are expected to provide 1,466 job opportunities, the Jordan News Agency, Petra, reported.

JIEC Director General Omar Juwaid said that 23 of the new investments were established in the Al Hassan Industrial Estate, 20 in the King Abdullah II Industrial Estate, 13 in the Al Muwaqar Industrial Estate, seven in the Salt Industrial Estate, seven in the Madaba Industrial Estate, three in the Mafraq Industrial Estate, two in the Tafileh Industrial Estate and one in the Al Hussein Industrial Estate.

Juwaid added that 853 companies operate in the JIEC’s industrial estates with a total investment volume of JD2.9 billion and provide nearly 57,000 jobs.

The company has recently intensified its promotional campaigns locally and abroad, predominately in e-marketing and teleconferencing, the JIEC director general noted.

The JIEC also routinely communicates with investors to highlight the benefits of investments in various industrial estates. The JIEC provides discounts on land prices and rental allowances for industrial buildings.

Source:https://www.jiec.com/en/news/153/

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$1.6 BILLION IN UPCOMING PRIVATE INVESTMENTS IN RENEWABLE ENERGY

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The Ministry of Energy and Water (MoEW) launched an Expression of Interest (EoI) for three solar farms that will generate 70 to 100 megawatts (MW) each.

Each solar farm should have battery storage capacity of 70 Megawatt Hour (MWh). It is the first time such a requirement has been made.

The locations of the farms will be determined by the private sector contractors. Electricité du Liban (EDL) will buy the output according to a Power Purchase Agreement (PPA). The PPA that will be signed by the private solar power contractors will be based on the one signed by the three companies that were awarded contracts to build wind turbines in Akkar. The price of electricity generated by the solar farms and sold to the EDL will be negotiated at a later stage.

Yesterday the MoEW also launched another project to build 24 solar farms (without storage). Each farm should generate between ten and 15 MW, equally divided between regions. This project will be similar to one launched in 2016 when more than 170 companies expressed their interest, and 42 Requests for Proposals (RFPs) were put forth.

The Ministry also launched an EoI for hydropower stations that would generate four megawatts each, across all regions. The proposed hydropower stations should have a total combined generation of 300 MW.

The Ministry had already identified 32 potential sites for the generation of hydropower based on a master plan put together by international firms Sogreah and Artelia. The locations of the hydropower stations would also be determined by the private sector.

A deadline was also set for the EoI for 200-400 MW wind turbines. Companies have until April to present proposals. The wind project is similar to the one licensed last July by the Cabinet, when three companies were permitted to operate 200 MW wind turbines in Akkar.

The total size of investments in the new solar and hydropower projects is estimated at between $1.1 billion and $1.6 billion, according to the MoEW.

Source:http://www.libc.net/2018/03/15/1-6-billion-in-upcoming-private-investments-in-renewable-energy/

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Iraq emerging as top infrastructure investment hub

Iraq is emerging from the destruction and strategizing the rebuilding of the country to position itself as a regional super power, said Frost & Sullivan’s recent research report on Assessment of Industry Sector Opportunities in Iraq.

Bridged between Asia, Middle East and African economies and strategically placed at the mouth of Europe, Iraq possesses immense locational advantage as a nation with opportunities that stand to be untapped.

The country benefits from immense natural wealth in the form of its huge reserves of natural resources. Having been brutally battered first by the Gulf war and more recently by the ISIS conflict, Iraq is just emerging from the destruction and strategizing the rebuilding of the country to position itself as a regional super power.

Newer opportunities are emerging with the return of semblance of political stability and initiation of the nation’s redevelopment and The recent report provides a broad overview of the current status of these high priority sectors, apart from providing a brief peek into addressable opportunity areas.

The recent report provides a broad overview of the current status of these high priority sectors, apart from providing a brief peek into addressable opportunity areas.
reformation plans, according to Frost & Sullivan.

Even as the nation’s re-building opportunity proves to be humongous and unique, investors and businesses alike are in need of business intelligence in understanding the right mode of entry, the most rewarding business model and business opportunity, stated the report.

Iraq possesses one of the largest oil reserves in the world, making it a highly attractive business opportunity.

As the country also focuses on diversification initiatives, opportunities unfurl in sectors such as construction, infrastructure, healthcare, transportation, energy and telecom which are being positioned as high priority development sectors, it stated.

The recent report provides a broad overview of the current status of these high priority sectors, apart from providing a brief peek into addressable opportunity areas.

Ali Mirmohammad, senior consultant for Iraq, Frost & Sullivan said: “With the end of the ISIS war, Iraq is on the path of reconstruction and economic resurrection that calls for sustained investment to the tune of over $900 billion within the next decade.”

“Iraq plans to focus on the Oil & Gas downstream value chain as well as minerals value chain, construction and infrastructure industries, healthcare, energy, tourism and financial services sectors to move the GDP growth rate by 10 per cent annually within the next decade,” explained Mirmohammad.

Following the ISIS war, multiple sectors are in a state of disarray and would need massive re-development and newer investments.

“Oil and gas, housing, infrastructure, industry, minerals, and service sectors will account for 65 per cent of the overall investment in the next 10 years, while ICT, transportation healthcare, water, electricity, tourism and renewable energy will grab the remaining 35 per cent investment in Iraq in the next 10 years,” he added.
Iraq emerging as top infrastructure investment hub
Mirmohammad pointed out that the country requires over $30 billion per annum of foreign direct investment (FDI) to achieve its reformation and stabilisation goals within the next 10 years.

“With more than 39 million population, Iraq remains and attractive consumer market with potential of over $40 billion,” he added.

Source:https://auto.economictimes.indiatimes.com/news/industry/iraq-emerges-top-infrastructure-investment-hub/62959957

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Turkey’s manufacturing growth hits fastest rate in almost seven years

Turkey’s manufacturing activity expanded at the fastest pace in nearly seven years in January, a key survey showed on Feb. 1.

According to the Purchasing Managers’ Index (PMI) compiled by IHS Markit and the Istanbul Chamber of Industry (İSO), the headline index rose to 55.7 in January from 54.9 in December 2017.

Any figure greater than 50 indicates overall improvement of the sector.

“Business conditions in the Turkish manufacturing sector improved at a strong and accelerated pace at the beginning of 2018. Bolstered by strong demand, growth in new orders and purchasing activity quickened, leading to the fastest expansion in output observed for almost seven years,” said IHS Markit economist Gabriella Dickens, commenting on the PMI survey data.

The overall performance was the best since March 2011 amid strong underlying demand, read the release, adding that the upward movement in the headline index was supported by sharp and accelerated output growth at the start of 2018.

“Notably, manufacturing output rose at the quickest pace since February 2011. Firms continued to win new business in January, as demand rose domestically as well as globally. This led volumes of new orders to grow at the quickest pace seen in 83 months,” it added.

“Strong production growth was also supported by a further rise in employment during the month, with workforce numbers increasing solidly, albeit at a slightly slower pace,” the release stated.

However, cost burdens also increased sharply amid unfavorable exchange rate movements and higher raw material prices.

The release noted that in response to higher cost pressures, manufacturers raised their selling prices.

The rate of inflation in output charges was the fastest observed over the past 12 months, it added.

source: http://www.hurriyetdailynews.com/turkeys-manufacturing-growth-hits-fastest-rate-in-almost-seven-years-126627

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Developing nations cannot fall behind in digital economy

Developing nations cannot fall behind in digital economy
More so as some of the low-cost advantages they used to have will no longer be valid

From cloud computing to artificial intelligence, technology is beginning to revolutionise how the world economy functions. But while these shifts are enriching many in the advanced economies, the developing world is at risk of being left behind.
To improve the global South’s economic prospects and avoid a deepening of inequality, developing-country policymakers must take seriously the implications of these shifts for their economies and their countries’ position in the global economy.

For years, the “digital divide” was narrowly defined in terms of internet connectivity. But today, it manifests itself in the way businesses in rich countries use technology to strengthen their control of global value chains and extract a larger share of the added value created in the developing world.

Consider, for example, how recent innovations threaten the export-oriented industrialisation strategy that has fuelled many countries’ development in recent decades. By using abundant and low-cost labour, developing countries were able to increase their share of global manufacturing activities, creating jobs, attracting investment and, in some cases, kick-starting a broader industrialisation process.
But, for the firms that took advantage of the opportunity to reduce costs by shifting manufacturing to the developing world, there was always a trade-off: offshore production meant limited ability to respond quickly to shifts in consumer demand.

Now, technology may offer another option. By investing in “additive manufacturing”, robots, and other non-human tools, companies could move their production sites closer to their final markets. Adidas, for example, is employing some of these technologies to bring footwear “speed factories” to Germany and the US.

Similarly, as digital technology facilitates the cross-border sale of services, and protections for domestic service providers become increasingly difficult to enforce, domestically oriented services in developing countries will face growing global competition. While such shifts remain nascent, they represent a long-term threat to the development strategies on which many countries in the global South rely.

With advanced and emerging economies moving fast to capture new opportunities created by technology, the digital divide is widening at an accelerating pace. For example, China, which used a protectionist industrial policy to nurture domestic digital giants like Baidu and Tencent, is now supporting these firms as they move deeper into development of new technologies and try to expand globally.

Similarly, the European Union is supporting technology investments through its “digital single market”, and through new policies in areas like venture capital, high-capacity computing, and cloud computing. Indeed, plans for a “European cloud” have been put forth.
There are very few, if any, comparable frameworks currently in place in the global South. This must change, but how?
Development strategists often suggest that poor countries cannot afford to dedicate resources to the digital economy. While that is true to some extent, failing to account for technology-driven economic trends will merely exacerbate the problem.

In fact, such trends should be at the centre of national development strategies. Moreover, at a regional level, there is a need to analyse technology-driven economic shifts and design policies that take advantage of the opportunities they represent, while coping with the associated challenges.

In Africa, for example, ongoing efforts to develop regional trade links and boost industrial cooperation — including frameworks like the Continental Free Trade Area (CFTA) initiative and Agenda 2063 — should include a focus on digital transformation strategies. Discussions on this front should be informed by lessons from other regions, such as the EU.

This should occur in the context of broader efforts to help local firms expand and become more competitive internationally. Too often, excitement for Africa’s innovative start-up ecosystem masks the challenges, such as small and fragmented domestic markets, that could impede long-term success.

Digital technology has already been put to good use in many parts of the developing world. Data-driven farming techniques are helping growers achieve higher yields, while mobile finance is broadening financial inclusion in poor communities. But these innovations will not be enough to prevent developing countries from falling behind in the global economy.

To catch up with the global North, policymakers will need new tools.
To invest in those tools, developing countries will also need support from international organisations. For example, ongoing World Trade Organisation discussions about the rules that will govern the digital economy should be expanded to include strategies for levelling the global playing field.

Overcoming the resource constraints that limit developing countries’ investment in the digital economy will not be easy. But failing to do so will carry a steeper price. As leaders in the developing world seek to position their countries for sustainable growth, they must think globally and locally, without losing sight of the role that technology will play in shaping the economy of tomorrow.
The writer is a professor of international development and international political economy at the University of Bath and a visiting fellow at the London School of Economics and Political Science.

Source:http://gulfnews.com/business/analysis/developing-nations-cannot-fall-behind-in-digital-economy-1.2180219

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Global logistics market to reach $15 trillion by 2024

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The global logistics market is expected to reach $15.5 trillion in revenue by 2024, while investments in industrial and retail projects lead to a spur in the domestic logistics industry, according to a recent report by Al Masah Capital, a leader in investments and market analysis.

In terms of volume, the global transportation and logistics (T&L) industry is expected to reach 92.1 billion tonnes by 2024, said the report.

The report also mentioned that the global third party logistics (3PL) market is expected to grow at a compound annual growth rate (CAGR) of more than 5 per cent by 2020, it added.

Factors such as the rapid globalisation, increasing trade volume, and the revival of the global economy are some of the major contributing factors to the growth of the 3PL market. The growth of integrators will increase demand for contract logistics services and will significantly contribute to the growth of the industry.

Highlighting T&L’s role play in international trade, the report revealed that; robust trade, economic growth, and liberalisation policies followed by many countries worldwide have resulted in increased trade volumes, thus ensuing increase in transportation, handling and warehousing needs, which has led to a demand for integrated logistics solutions.

Increased globalisation in manufacturing and other technological advancements has made companies focus more on core activities, and thus logistics activities have been outsourced as a cost-effective solution.

Putting the spotlight on Middle East and North Africa‘s (Mena) strategic location, Al Masah reviewed Dubai’s favourable position for international T&L.

Dubai possesses well established and modern facilities including free trade zones and a local marine terminal operation considered one of the largest in the world. Most companies find that the region offers a range of benefits for their regional and international operations.

The rising exports and imports drove the supply chain and logistics market and the Middle East, led by the UAE, to become one of the most important hubs in the changing global trade lanes. Thus, overall, as Mena countries pursue political transformation and economic diversification, transportation and logistics investment is the cornerstone to its future growth.

Revealing interesting facts about the Mena region, the report cited that region has trade relations with almost every country/region across the globe. It exports hydrocarbons and hydrocarbon-related products that are in great demand, and meets a large part of its food requirement through imports.

Data from the WTO suggests that Mena engages in maximum merchandise trade with Asia (55 per cent of all exports and imports), followed by Europe (31 per cent), and North America (8 per cent). Others like the CIS and South/Central America account for the remaining 6 per cent share.

The Mena countries also lead in sea and air trade routes with the UAE and Saudi Arabia ranking among ‘Top 10 Air Freight Lanes’ globally. Although the region has a diversified network of air, sea and road transport, the bulk of economic activity is skewed toward maritime transport.

The region has total of 134 Sea ports handling a total of 48.3 million TEUs of container traffic. Of these, the GCC has nearly 41 ports (35 major ports) which together handle 68 per cent of Mena container port traffic. Besides sea transport, the region has 114 international and domestic airports of which 43 airports are located within GCC.

The Middle East has also acted as a refuelling point for air freight carriers and shipping lines moving between Europe and Asia for many years which led to the creation of hub and spoke operations in the region.

GCC has further built on modern warehouses and transportation infrastructure, developed free zones, adopted ‘open skies’ policies, simplified customs procedures and has strengthened its anti-corruption measures in order to boost its non-oil economy.

Most notably, an increasing number of manufacturers are establishing their distribution facilities at hubs such as the Jebel Ali Free Zone in Dubai, from where they have been efficiently supplying a growing consumer market across the region.

Within the region, the UAE and Saudi Arabia are the most attractive targets for logistics investments and easiest markets to operate. Other Mena countries, particularly those in the GCC, such as Qatar, Oman, Kuwait and Bahrain, along with Morocco, Jordan are also emerging as potential investment destinations. 34 free trade zones, non-existent corporation tax and the offer of full ownership, coupled with unlimited repatriation of profits, makes the UAE a highly appealing business environment for producers and manufacturers alike, as well as to logistics service providers.

The growth of T&L in Mena is being driven by government initiatives toward economic diversification from energy-based industries to expansion into other commercial sectors such as trade, export, import and tourism.

Source:http://www.tradearabia.com/news/IND_320027.html