Bahrain Global Sea-to-Air Logistics Hub opens; fastest in the region

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Bahrain recently launched the fastest regional multi-modal logistics hub—the Bahrain Global Sea-air Hub—with only a two-hour turnaround time for all containers. So products can reach customers in half the time and at 40 per cent of the present cost. The advantages include a 50 per cent reduction in average lead time compared to pure sea freight.

The hub exploits the country’s strategic position midway between European and Asian markets as well as on its proximity to regional target markets.

The hub relies on streamlined clearance procedures, optimized logistics, and full digitization to achieve an end-to-end lead time of just under two hours for goods transiting from Bahrain International Airport to Khalifa bin Salman Port, and vice versa, according to media reports from the Gulf region.

Bahrain will grant partner status in this initiative to all global markets that will grant their national companies the opportunity to become an authorised ‘trusted shipper’ at the hub.

The operating cost within the logistics sector is 45 per cent lower in Bahrain compared to neighbouring markets, according to a 2019 KPMG report.

Source:
https://www.fibre2fashion.com/news/textile-news/bahrain-global-sea-to-air-logistics-hub-opens-fastest-in-the-region-276613-newsdetails.htm

Regional energy investments expected to grow

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Energy investments in the Mena region are expected to continue to grow on the strength of higher oil and gas prices throughout 2022, according to a new report.

“The uptick in regional energy investments, which registered a $13 billion increase in Apicorp’s latest five-year outlook issued in the second quarter of 2021, will continue over the mid-term,” the Arab Petroleum Investments Corporation (Apicorp) said in a report outlining the key trends that are expected to shape the Middle East and North Africa (Mena) energy markets landscape this year.

Among the trends the report examines is the impact of oil and gas prices on energy investments in the region and the main factors weighing down on broader economic recovery.

“Despite the volatility in commodity prices which is expected to persist throughout 2022, the good news in the short-term is that oil and gas prices will likely remain elevated throughout the year, providing support for energy investments including renewable energy and ESG-related projects,” Dr Ahmed Ali Attiga, CEO of Apicorp, said.

“Power sector investments in Mena are also expected to continue to thrive, with an accelerating shift towards renewables. Collectively, the region is expected to add nearly 20 GW of solar power over the next five years,” he further added.

The MENA region will take centre stage in the ongoing global energy transition as all eyes shift to Egypt, which will host COP27 in November — and UAE for COP28 in 2023. Yet while the transition continues to steadily gain momentum, the report notes that it may be marred by mixed policy signals from governments as they attempt to balance imperatives that are oftentimes very difficult to align: emissions reduction, energy affordability and energy security.

Thus, a sustainable and comprehensive policy is needed to avoid tilting the policy scale too far in favour of one of these factors, as this may lead to unintended consequences such as market distortions, heightened volatility, and energy shortfalls.

The already substantial pressure on policymakers is expected to be further exacerbated by continued volatility in commodity markets in 2022 due to the pandemic, uncertainty over macroeconomic policy, and supply chain disruptions. Despite the modest –-albeit uneven—recovery in 2021, it will take time for this improvement to migrate downstream and ease cost pressures this year.

As for the energy markets, the report forecasts that they will remain comparatively stable during 2022 due to higher oil production by Opec+ and non-Opec countries and increased gas production and LNG supply. Brent is expected to average between $65 per barrel and $75 per barrel. As for gas, the JKM and TTF/NBP hub prices in Asia and Europe are expected to cool down considerably from their all-time highs of 2021, especially after the winter season.

The report’s analysis of energy investment trends suggests that the expected robust oil and gas prices in 2022 have triggered an opportunity to return to pre-pandemic activity. As a result, energy investments in Mena are forecast to grow in 2022 from the $805 billion in Apicorp’s Mena Energy Investment Outlook 2021-2025 and continue in the upcoming 5 years, namely on the strength of sustained higher oil and gas prices and planned unconventional gas and upstream investments.

For petrochemicals, the drive for further integration and rationalisation will continue with reconfigurable petrochemical plants shifting to high-margin products such as plastic packaging films and healthcare and hygiene products.

“The strong pipeline of investments we are seeing in the downstream projects reflects the region’s push to direct more funds to this sector, especially in brownfield petrochemicals projects versus greenfield ones. This makes sense in light of the current market conditions which favour improving cost and operating efficiencies in existing projects rather than sheer expansion,” said Nicolas Thevenot, Managing Director of Corporate Banking at Apicorp.

The uncertainty around COVID recovery will continue to influence how market dynamics will ultimately play out. Given the global vaccine inequity and a constantly evolving virus, governments are still grappling with the dilemma of public health versus economic recovery.

In addition to global trade, supply chains and services, the current surge in cases globally will also adversely affect international travel and tourism. This will dent economic growth during 2022, which has already prompted a slight downward revision of the 2022 GDP growth forecasts in some regions and a likely asymmetric global recovery that is not necessarily sustainable for all countries.

Another uncertainty stems from the need for governments to introduce fiscal austerity measures to rein in spending and curb soaring inflation. Although markets ended 2021 with high returns (27 per cent in the case of the S&P 500 index), high jobs growth and soaring commodity prices pushed inflation rates higher.

A fear of stagflation looms as public fiscal stimulus packages are withdrawn, asset purchasing programs are tapered and interest rates rise. While these measures will very likely cause economic recovery to slow down, the lagging unemployment rates are expected to remain relatively high amid a simmering inflationary cycle that may turn out not to be transitory after all.

source:https://timesofoman.com/article/113560-regional-energy-investments-expected-to-grow

Digital platform for displaying, buying and selling Omani products launched

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The Public Establishment for Industrial Estates – Madayn launched the first integrated Omani digital platform (SouqMadayn) for displaying, buying and selling Omani products under the patronage of Dr Said bin Mohammed Al Saqri, Minister of Economy, in the presence of a number of their excellencies at the Knowledge Oasis Muscat.

SouqMadayn platform aims at displaying, buying and selling Omani products between companies (B2B) as well as offering government procurement (B2G). The platform shall enhance the presence of national industries in local and foreign markets by utilising cutting-edge technologies and software and taking the utmost advantage of e-commerce technologies.

Speaking at the event, Hilal bin Hamad Al Hasani, CEO of Madayn, said that the platform will be of benefit to Small and Medium Enterprises (SMEs) in promoting their products, increasing income, reducing costs and raising efficiency.

“Madayn will seek to link SouqMadayn with the Tender Board, which will help in distributing purchases in a smart and fair approach electronically. This will eventually contribute to promoting Omani products and boosting production, as well as offering job opportunities for the Omani nationals,” Al Hasani pointed out.

He added, “As the Sultanate of Oman’s government is paying great importance to the digital transformation programme, being an essential pillar of strategic sectors and taking into consideration its impact on boosting the national economy, this platform comes to keep pace with the efforts made in this regard and to devise digital solutions that increase the sales of Omani products and explore new markets for these products.”

On her part, Wafaa Al Salmi, Head of the E-Marketing at Mizah Marketing and Business Development – the marketing arm of Madayn –said that this digital platform is characterised by many features that enable Omani factories to showcase their products to local and international buyers representing government and private bodies.

“Through SouqMadayn, users can benefit from volume purchase and bulk discounts, flexible payments options, secure payment transactions, support from Credit Oman, logistics facilities, minimum order quantity, wholesale bulk order, an option to Request for a Quote – (RFQ), online auction, e-tendering facility, value package memberships for suppliers, brand sponsorship, and online advertisement opportunity. The factories operating in Oman can now register through SouqMadayn to benefit from its variety of services.”

SouqMadayn also complements the objectives of the ‘Made in Oman’ Campaign, which is designed to encourage consumers both individuals and organisations to choose locally manufactured products and services; highlight the competent capabilities of the Omani products to compete locally and internationally, and stress the significance of buying Omani products and its direct contribution to the national economy.

It is noteworthy to mention that this platform aligns with Madayn’s efforts to achieve digital transformation objectives, given the impact of digital transformation on accelerating, developing and enhancing businesses. Madayn has recently developed its Digital Transformation Strategy in pursuance of Madayn Vision 2040 and several projects have commenced achieving the objectives of the strategy.

Source:https://timesofoman.com/article/113600-digital-platform-for-displaying-buying-and-selling-omani-products-launched

Qatar National Bank raised provisions and remains on alert

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Qatar National Bank QPSC braced for credit losses by boosting the amount of money set aside in provisions and signaled caution over the main international markets where it has a presence.

The Middle East’s biggest bank booked 7.1 billion riyals ($1.9 billion) in loan-loss provisions during 2021, up 21 percent from the previous year, according to a statement on Tuesday. Total assets rose about 7 percent to 1.1 trillion riyals.

The Doha-based bank said it “remains cautious on the external environment with respect to potential risks that may arise from key markets where QNB Group operates.”

Many banks in the Gulf are seeing higher profits on the back of improvements in trade and tourism as regional economies recover from the pandemic. Qatar’s outlook for 2022 has also brightened thanks to higher energy prices and the possible boon to business from the soccer World Cup.

Beyond Qatar, QNB has operations stretching from Turkey, Egypt and India to France. Turkey, where the Qatari bank owns QNB Finansbank, made up 9.6 percent of its loans in September, down from 10.4 percent in 2020, according to Bloomberg Intelligence.

Turkey has seen its currency weaken to historic lows throughout December, fueled by fears that President Recep Tayyip Erdogan’s push for lower interest rates would stoke inflation. Turkish authorities have since unrolled a series of measures to support the lira.

“While the headline results missed our expectations, we note that this is almost entirely driven by higher” loan-loss provisions, Citigroup Inc. analyst Rahul Bajaj said in a research note. Much of the increase in the charges appears “to be used for building provision coverage.”

Source:https://www.arabianbusiness.com/money/corporate/commercial-banking/qatar-national-bank-raised-provisions-and-remains-on-alert