Lebanon’s financial system is over, says economy minister

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The Lebanese Economy Minister on Tuesday admitted his department can do little to stop the country’s steep financial decline, as he discussed the decision to make supermarkets display the rate-to-the-dollar at which goods are priced.

Amin Salam said the measure was introduced to guard against rampant price manipulation, as the national currency continues to plummet in value, sometimes by the minute.

Supermarkets will also be permitted to display the price of imported supermarket goods in dollars, with domestic products still priced in the national currency.

Mr Salam said shops must make the move due to the rapid swings in the value of the Lebanese pound which meant some were repricing goods several times each day.

The move will allow for greater transparency in how goods are priced, Mr Salam said, as some supermarkets “are taking advantage of the currency crisis and setting prices on a whim”.

“This way you can go to a supermarket and see the rate products are priced in,” he said.

But he said there was not much the ministry could do about the cost of basic necessities, given the rapid devaluation of the pound to the dollar — once pegged at 1,507 to $1 but now trading at about 87,000.

“If their rate is too high, you have the option of going to a different supermarket and seeing if they have a lower rate,” he said.

The latest measure is not a solution but could at least mitigate some of the effects of the currency fluctuations by regulating prices to prevent profiteering, Mr Salam said.

“It’s not ideal, nor is it what the nation should aspire to. But in the worst of circumstances, now at least this [measure] can protect citizens — even if just by 10 per cent,” he said.

The minister highlighted the lack of solutions to stem the free-falling Lebanese currency and the corresponding economic crisis, which has declined steeply since the first signs of collapse in 2019.

The disintegration has caused national banks to impose informal capital controls that severely limit access to people’s money and have rendered the local currency nearly worthless.

Import-reliant Lebanon must now pay for goods and services in US dollars, priced in the American currency then converted into Lebanese lira. Meanwhile, public sector employees and a significant chunk of Lebanese are still paid in lira, with some making the equivalent of $50 a month.

“Our country imports everything,” Mr Salam said, summing up the crux of Lebanon’s dilemma.

“There’s no other country in the world that imports more than 90 per cent of its goods. Even our domestic products are made using primary components that are imported … everything is priced on the dollar.

“The financial regime is over. It’s done,” he said. “Now we leave the currency to its fate.”

Source:https://www.thenationalnews.com/mena/lebanon/2023/02/28/time-to-leave-our-currency-to-its-fate-says-lebanons-economy-minister/

Rise in tourism, oil output to lift Saudi economy by 7% in 2022, outpacing other GCC nations

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Saudi Arabia‘s economy is expected to witness a 7 percent acceleration in 2022, driven by stronger oil output following OPEC+ production cuts and continued growth in non-oil sectors, according to the latest World Bank report.

The World Bank’s Gulf Economic Update (GEU), “Achieving Climate Change Pledges,” report highlights that growth in the kingdom’s economy will also be supported by stronger consumption, increased tourism, and higher domestic capital spending.  

The projected rate of growth in Saudi Arabia outpaces the the economies of other Gulf Cooperation Council (GCC) countries, which are projected to expand by 5.9 percent overall in 2022.

“As GCC countries commit to the net-zero objectives laid out in their pledges and strategies, it is important to restructure energy and water subsidies and address the GCC’s challenge of moving to a more sustainable growth model less hydrocarbon dependent and managing the transition to a global low-carbon economic environment that risk to see their oil revenues reduced in the next few decades,” Issam Abousleiman (below), the World Bank’s regional director for the GCC, said.

Economic outlook for the GCC countries: World Bank
Bahrain: Bahrain’s economy is expected to accelerate in 2022 to 3.5 percent, boosted by surging energy prices. Recovery in the non-oil economy will be driven by expansion in the transportation and communication sectors, as well as increased agriculture and fishing.

Kuwait: Economic growth in 2022 is expected to accelerate to 5.7 percent, due to higher oil output as OPEC+ cuts are phased out and domestic demand strengthens.
Oman: Growth in 2022 is projected to reach 5.6 percent, underpinned by more than 8 percent growth in the hydrocarbon sector, while the non-oil economy continues to grow by more than 2% as faster vaccine rollout strengthens domestic activity.

Qatar: Real GDP is estimated to rise in 2022 to 4.9 percent on the heels of boosted hydrocarbon exports, while growth in private consumption may be slightly lower, at 4.8%, driven by a potential dilution of World Cup proceeds and higher prices.
United Arab Emirates: Economic recovery is projected to continue in 2022, with growth anticipated to reach 4.7 percent driven by oil and non-oil sectors.
The economic recovery in the GCC is likely to continue in the medium-term, driven by the hydrocarbon and non-hydrocarbon sectors.

Economic rebound from the Covid pandemic
The latest issue of describes the GCC countries as rebounding robustly from the Covid-19 pandemic in the course of 2021 and at the beginning of 2022.

The report attributes the rebound to a broadly successful vaccination rollout across the GCC, the easing of pandemic restrictions, and developments in the hydrocarbon market.

As a result, fiscal deficits have markedly improved, with the GCC external balance reaching pre-pandemic levels in 2021 as energy prices and export earnings strengthened.

As major hydrocarbon exporters, GCC countries may also benefit from changes in the energy markets brought about by the war in Ukraine.

These countries may see strong fiscal and external surpluses, which could help spur consumer confidence and investments.

However, the war has also placed energy security at the top of the agenda of many major oil importers, thereby accelerating their plans for a transition to green growth.

The GEU contains a special chapter focusing on critical steps that need to be taken towards energy subsidies, fiscal consolidation, and the importance of getting prices right to bring about an environment that places the private sector at the forefront of green growth, according to the World Bank report.

The special chapter of the GEU discusses opportunities to restructure energy subsidies in the region, as well as opportunities that exist for the GCC countries to become renewable energy powerhouses by diversifying into green technologies.

This transition to an environment-friendly model will be a recurrent theme in future issues of the Gulf Economic Update, making this the first in a series that will focus on green growth in the region.

Source:https://www.arabianbusiness.com/politics-economics/rise-in-tourism-oil-output-to-lift-saudi-economy-by-7-in-2022-outpacing-other-gcc-nations-world-bank

Bahrain’s GFH successfully lists on Abu Dhabi Securities Exchange

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In what is the fourth dual listing on the Abu Dhabi Securities Exchange (ADX), GFH Financial Group B.S.C. announced its secondary listing on the exchange on Tuesday.

The listing is set to further expand GFH’s investor base and enhance liquidity in its shares amid increased regional and international participation on the exchange.

This is GFH’s fourth regional listing with its shares already listed and actively traded on the Bahrain Bourse, Boursa Kuwait and the Dubai Financial Market.

“As part of our ADX One strategy to promote greater market liquidity, we have been actively encouraging listings on our dynamic capital market and forging deeper ties with regional markets, including the Bahrain Bourse,” said Saeed Hamad Al Dhaheri, ADX managing director.

“The pipeline for IPOs and listings on our main market and growth market remains strong for the remainder of the year, a testament to our strength and resilience amid global market volatility,” he added.

The listing comes as GFH undergoes continued expansion and growth having recently partnered with SQ Asset Management Company in the USA, completed the acquisition of logistic warehouses with assets of more than $2 billion and spun out infrastructure and real estate assets.

Currently, GFH has over $15bn of assets and funds under management including a global portfolio of investments in logistics, healthcare, education and technology in the MENA region, Europe and North America. This includes new investments of more than $2bn over the past 12 months alone.

“GFH is delighted to celebrate another landmark achievement for the Group with our listing on ADX. This is a strategic move supporting our expansion and enhancing our financial position and funding for the next phase of growth,” said Hisham Alrayes, GFH’s Group CEO.

“With our listing, we continue to broaden our shareholder base and increase our reach and visibility among key global and regional investors. Importantly, we also underscore the strong demand for GFH’s shares and the market and investor confidence that exists in the Group, our performance and prospects,” he continued.

The listing of GFH on ADX brings the number of dual listings on the exchange to four. Shares of Ooredoo, Sudan Telecom Group and Oman and Emirates Investment Holding Company also have secondary listings on the exchange.

During the first quarter of 2022, ADX recorded an 87 percent year-on-year increase in the value of total trades made in the first quarter of 2022. Traded values (buy + sell) on the exchange rose to AED202bn in Q1 2022 from AED108bn in Q1 2021.

Meanwhile, the market value of shares owned by foreign investors in Q1 2022 jumped 163 percent to AED131bn from AED50bn in Q1 2021.

GFH was advised on the cross-listing by First Abu Dhabi Bank as its listing advisor and Al Tamimi and Company as its legal advisor.

Source:https://www.arabianbusiness.com/money/corporate/capital-markets/bahrains-gfh-successfully-lists-on-abu-dhabi-securities-exchange

DMS attracts local and international investors in transportation, logistics and mobility

DMS is the outcome of Vision 2030’s revolutionary potential in shaking up the fields of mobility and logistics. It is a digital growth engine launched by SAPTCO to explore new possibilities and build innovative startups. DMS is working toward becoming the leading venture builder in the mobility sector; it aims to make it seamless, smart and sustainable.

DMS plans on uplifting the digital mobility sector and on building more radically innovative ideas from the ground up. It is implementing new strategies to create innovative solutions in ride-sharing technologies, shipping aggregation and travel marketplaces.

It is also adopting new business models that are “light asset” and “future ready” for revenue opportunities. Its groundbreaking plan of action can already be seen in ventures like Rekab, Fastmile and ejourney. They represent a creative approach to transportation in the region, each with its unique points of strength that are garnering more and more users daily.

DMS has already embarked on a number of ventures and is currently developing two new ones. It utilizes a diverse team that combines talents, research skills, and expertise all directed to take startups to the next level. It is on a mission to empower brilliant minds and to unlock the potential of mobility in the region by creating new digital solutions across Saudi Arabia and the MENA region.

DMS is pioneering the way through a board of experts in entrepreneurship, technology and transportation headed by Chairman of the Board of Directors of DMS and SAPTCO Khalid Al-Mudaifer and President of the International Association of Public Transportation (UITP) and CEO of SAPTCO Khalid Al-Hogail.

DMS is revolutionizing the field with top tech talents, entrepreneurial minds and digital endeavors as it is guided by Vision 2030 and its objectives to provide a better and more effective environment for everyone in the country.

Source:https://www.arabnews.com/node/2096926/corporate-news

Apparel Group expands Qatar footprint with launch of 20 stores at Place Vendôme mall in Lusail City

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Global fashion and lifestyle retail conglomerate Apparel Group has expanded its footprint in Qatar, with the launch of 20 stores at the Place Vendome mall in Lusail City.

The 20 new stores includie Charles & Keith, Beverly Hills Polo Club, Rituals, LC Waikiki, Birkenstock, Molten Chocolate & Café, Skechers, R&B, R&B Kids, BBZ, Hema, Crocs, Dune London, Levis, Aldo, Inglot, Aldo Accessories, Athlete’s Co, and Calvin Klein Underwear. Tim Hortons is already operating at the new location.

Sima Ganwani Ved, the founder and chairwoman of Apparel Group, who was featured in Arabian Business’ Indian Power List 2022, said: “The retail landscape in Qatar has evolved significantly over the last few years, as customers become increasingly discerning and attentive to global shopping trends while staying true to their roots and culture.

“Continuing Apparel Group’s commitment to providing an elevated shopping experience to our loyal customers, we are proud to be partnering up with Place Vendôme and further expanding our strong retail footprint in the Qatar market.”

Apparel Group’s LC Waikiki store will be the largest in the GCC region, spanning a total floor area of 28,000 square feet.

Additionally, the global fashion and lifestyle retail conglomerate will be opening a Rituals flagship store along with R&B Kids and Calvin Klein underwear stores for the first time in Qatar.

Ved added: “Our brands’ expansion with Place Vendôme is in line with our strategy of being responsive to consumer demand. Qatar continues to be a strategic market for us and we are proud to be part of the country’s growth.”

Apparel Group offers an enhanced shopping experience, that brings a large variety of carefully selected international and regional labels to a discerning audience.

Place Vendôme is a multibillion dollar mixed-use development in Qatar’s emerging Lusail City. Place Vendôme is a project of United Developers, a group of four Qatari investors who partnered to align their expertise in retail, real estate, construction, and contracting.

The 1,150,000 square metre development will host two five-star luxury hotels, Le Royal Meridien and Palais Vendôme, a Luxury Collection Hotel, Le Royal Meridien Residences, a mall featuring up to 580 different retail outlets with an exclusively luxurious wing dedicated to top designer labels, and a central entertainment component showcasing constant attractions.

The hotels and residences will be operated by Marriott International, which is set to deliver a luxurious and authentic experience that aligns with the Place Vendôme brand.

Source:https://www.arabianbusiness.com/gcc/qatar/qatar-industries/apparel-group-expands-qatar-footprint-with-launch-of-20-stores-at-place-vendome-mall-in-lusail-city

Saudi Arabia’s October crude oil exports hit 18-month high

Saudi Arabia’s crude oil exports in October rose for a sixth straight month to their highest since April 2020, the Joint Organisation Data Initiative (JODI) said on Thursday.

The kingdom’s crude oil exports rose to 6.833 million barrels per day (bpd), up from 6.516 million bpd in September.

The world’s largest oil exporter’s total exports including oil products stood at 8.26 million bpd while crude output rose by 118,000 bpd to 9.780 mln bpd in October. Both also hit their highest levels since April 2020.

The Organization of the Petroleum Exporting Countries its and allies, known as OPEC+, this month agreed to stick to their existing policy of monthly oil output increases, as they continue to unwind record output cuts made in 2020.

Saudi Arabia’s domestic crude refinery throughput rose to 2.611 million bpd in October, the highest level since January 2019. Its direct crude burn fell 215,000 bpd to 328,000 bpd, the JODI figures showed.

Monthly export figures are provided by Riyadh and other OPEC members to JODI, which publishes them on its website.

Source:https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-arabias-october-crude-oil-exports-hit-18-month-high/articleshow/88323481.cms

Emirates to embark on IT hiring spree as travel rules ease after Covid shock

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Dubai-based Emirates Group has announced it is looking to recruit more than 500 IT professionals as the airline continues to rebound from the impact of the pandemic.

The company said it is experiencing strong air travel demand across all areas of the business, and a range of opportunities will be available for skilled IT professionals.

Emirates to embark on IT hiring spree as travel rules ease after Covid shock
Dubai airline says it plans to recruit more than 500 IT professionals over the next six months
Emirates IT staff
Emirates plans to recruit more than 500 IT professionals over the next six months.
Dubai-based Emirates Group has announced it is looking to recruit more than 500 IT professionals as the airline continues to rebound from the impact of the pandemic.

The company said it is experiencing strong air travel demand across all areas of the business, and a range of opportunities will be available for skilled IT professionals.

Adel Al Redha, Emirates’ chief operating officer, said: “Emirates continues to invest in technologies and introduce innovative solutions that are based on artificial intelligence, data and other smart solutions to deliver our products and serve our loyal customers in the most efficient and flexible manner.”

More than 500 IT professionals will be recruited over the next six months as Emirates aims to build its own talent pipeline with expertise in various areas, including cybersecurity, software engineering and innovation.

The move comes as Emirates has invested into a number of innovation programmes such as the Aviation X-Lab in partnership with GE, Airbus, Thales, and Collins Aerospace; and Intelak in partnership with Accenture, Microsoft and Dubai Tourism.

Last month, Emirates said it will return to pre-Covid levels of activity in the next 12 months.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority and chairman and chief executive of Emirates Airline and Group said efforts being made to coordinate with different countries and aviation authorities across the world will make it possible for Emirates to return to 2019 levels.

Sheikh Ahmed said Dubai authorities are working to restore the high passenger numbers before the pandemic, which saw DXB handling 90 million international passengers annually, making it one of the world’s busiest international airports.

Source:https://www.arabianbusiness.com/industries/technology/emirates-to-embark-on-it-hiring-spree-as-travel-rules-ease-after-covid-shock