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CAIRO: As worldwide business leaders integrate automation and digitalization into their strategies, the Kingdom has been calling for local initiatives to drive digital transformation into its economy.
Since 2006 Saudi Arabia has had an established plan for digitization, called to the National Strategy for Digital Transformation.
As the world swiftly adopted digital strategies after the pandemic put in place a huge need for physical interaction alternatives, Saudi Arabia itself was able to quickly establish a framework for digital transformation in sectors including finance, commerce, logistics and information technology.
The action plan was divided into three phases. It is currently in its final stage, the Smart Government Strategy, which aims to create a new seamless government experience for beneficiaries by 2024.
In line with the action plan, several government authorities have established regulatory sandboxes using digital technologies to allow businesses and startups to experiment in a controlled environment. A sandbox is a testing environment in a computer system in which new or untested software or coding can be run securely.
One of the most active sandboxes is at the Saudi Central Bank, also known as SAMA, which aims to boost the financial sector and transform it into a smart financial hub.
SAMA has admitted 38 companies into its sandbox while providing licenses to several businesses that use financial technology in their operations.
The Communication and Information Technology Commission provides a sandbox for delivery applications, and the Digital Government Authority enhances organizational solutions in digital platforms and services.
The Kingdom has also encouraged using artificial intelligence to achieve Vision 2030 and Smart Government Strategy objectives.
The strategy is expected to set Saudi Arabia’s AI market to touch $135.2 billion by 2030, which is estimated to contribute 12.4 percent to the Kingdom’s gross domestic product.
Saudi Arabia also intends to transform its workforce by educating and establishing a reservoir of 20,000 AI and data qualified experts, of which 5,000 will be given deep expertise and highly certified.
The Global AI Summit held in Riyadh on Sept. 13 has been another significant leap into the evolution of the sector, with global leaders partnering with several Saudi-based companies.
The event witnessed the launch of Aramco’s Global AI Corridor project that aims to build and commercialize the AI ecosystem in the Kingdom, in addition to over 40 agreements and partnerships in the public and private sectors.
RIYADH: The Organization of the Petroleum Exporting Countries and its allies led by Russia, also known as OPEC+, will consider an oil output cut of more than a million barrels per day when it meets on Oct. 5, OPEC sources told Reuters on Sunday.
The figure is slightly above estimates for a cut given last week, which ranged between 500,000 bpd and 1 million bpd.
OPEC+ is meeting in person in Vienna for the first time since March 2020. “It is a meeting that is taking place at a very interesting global time,” one of the sources said.
The output cuts are being considered on the back of a slide in oil prices from multiyear highs reached in March and market volatility. Saudi Arabia first flagged the possibility of cuts to correct the market in August.
Earlier this week, a source familiar with Russian thinking said Moscow could suggest a cut of up to 1 million bpd, while an OPEC source put the likely figure closer to 500,000 bpd. Talks are expected to continue ahead of the meeting.
OPEC+ is meeting in person in Vienna for the first time since March 2020.
Saudi Arabia first flagged the possibility of cuts to correct the market in August.
The output cuts are being considered on the back of a slide in oil prices from multiyear highs reached in March and market volatility.
India cuts tax
The Indian government has cut a windfall tax on domestically produced crude oil to 8,000 ($97.99) rupees per ton from 10,500 rupees per ton from Sunday, after a decline in global oil prices.
India has also scrapped an export tax on jet fuel and halved export duties on diesel to 5 rupees per liter from Sunday, a government notification said.
NNPC transaction
Nigeria’s state-owned oil company NNPC Ltd. has bought the marketing business of unlisted OVH Energy, giving it access to 380 fuel stations in Africa’s largest oil producer and Togo, among other assets, the two companies said on Saturday.
OVH Energy Marketing, the owner and operator of Oando branded retail service stations, said the outlets would be rebranded NNPC and full integration is expected by the end of 2023.
The deal also gives NNPC access to eight liquefied petroleum gas plants, three aviation depots and 12 warehouses.
NNPC, which became a commercial entity in July, already owns more than 500 fuel stations across Nigeria and said it would be ready for an initial public offering by mid-next year.
RIYADH: Saudi Arabia’s budgeted revenues for 2023 are likely to be based on the Brent price at $76 per barrel, said Al Rajhi Capital in its assessment of the Kingdom’s budget figures.
“For 2023, we believe oil revenues could reach SR754 billion ($200.7 billion) and non-oil revenue at SR417 billion,” said the head of research at Al Rajhi Capital Mazen Al Sudairi.
“Based on our assessment, the government’s 2023 budgeted revenues are likely based on an assumption of brent at around $76 a barrel.”
Real gross domestic product growth is forecast to increase by nearly 8 percent year-on-year in 2022 and 3.1 percent year-on-year in 2023, according to Al-Rajhi Capital.
Inflation is expected to be 2.6 percent and 2.1 percent in 2022 and 2023 respectively, Al-Rajhi said.
Revised 2022 revenues are mostly in line with estimates, however, the expenditure budget is much higher than from an earlier announcement, it said.
The Kingdom’s Finance Ministry’s preliminary budget statement projected spending to reach SR1.11 trillion next year, with revenue of SR1.12 trillion.
The 2023 spending budget was raised by 18 percent, with a slight fiscal surplus of SR9 billion expected for 2023.
The world’s largest oil exporter is expected to balance the books in the coming year, having emerged with a quickly developing balance sheet due to the rebound in crude.
Saudi officials expressed intention to change the heavy reliance on petrodollars and “decouple” the Kingdom’s spending from oil volatility as it puts the country’s economy at the mercy of uncertainty in the oil market.
Its budget surplus was recorded at SR78 billion in the second quarter of 2022, an almost 50 percent rise from the same time last year.
Its revenue reached SR370.4 billion whereas expenditure totaled SR292.5 billion in the second quarter of this year, according to the ministry.
The ministry’s estimates showed that oil revenue stood at SR250.4 billion, signaling an 89 percent year-on-year rise in the second quarter.
However, the Kingdom’s non-oil revenues only rose by 3 percent to SR120 billion in the second quarter.
Domestic debt reached SR604.8 billion at the end of June, up from SR558.8 billion in the previous half, showed the ministry data.
The Finance Ministry’s data showed that the Kingdom’s external debt fell from SR379.3 billion to SR361.8 billion in the same period.
The objectives of the state’s general budget for the fiscal year 2023 come as a continuation of the process of work to strengthen and develop the financial position of the Kingdom, Finance Minister Mohammed Al-Jadaan said.
“The government attaches great importance to enhancing the support and social protection system and accelerating the pace of strategic spending on Vision (2030) programs and major projects to support economic growth,” Al-Jadaan added.
The Kingdom’s economy has demonstrated its strength and durability by achieving high growth rates, after taking many policies and measures with the aim of protecting the economy from the repercussions of inflation and supply chain challenges, the minister said.
ABU DHABI: The Board of Directors of the Abu Dhabi Chamber of Commerce and Industry has formed a new board for the Abu Dhabi Businesswomen Council, Emirates News Agency reported.
The new board’s mission is to help female entrepreneurs improve their skills, introduce them to relevant laws and policies, and teach them how to take advantage of local and federal government initiatives.
It is part of the chamber’s efforts to help businesswomen and female entrepreneurs in Abu Dhabi contribute to the emirate’s economic growth.
The ADBWC board, chaired by Asma Al-Fahim, is made up of Abu Dhabi Chamber board members as well as successful Abu Dhabi businesswomen such as Nour Al-Tamimi, Dr. Khadija Al-Ameri, Marwa Al-Mansoori and Shaikha Al-Nowais.
“Over the past 50 years, the UAE has placed women’s empowerment amongst its top priorities and supported the Emirati woman to be a key partner in building the UAE,” Al-Fahim said.
She added: “The support of H.H. Sheikha Fatima bint Mubarak, chairwoman of the General Women’s Union, president of the Supreme Council for Motherhood and Childhood, supreme chairwoman of the Family Development Foundation and honorary chairwoman of the ADBWC, played a huge role in women’s development in all fields, especially entrepreneurship. Thanks to H.H. Sheikha Fatima, the Emirati woman is now equipped with all the factors of success to occupy her proper place regionally and internationally.”
Al-Fahim added that the ADBWC is eager to increase communication with businesswomen in Abu Dhabi in order to keep them up to date on the latest economic changes.
Furthermore, Al-Fahim said that the council will launch new initiatives and programs to support the business environment, giving female entrepreneurs the necessary tools to capitalize on business opportunities locally, regionally and internationally.
RIYADH: Saudi healthcare provider Mouwasat Medical Services Co. said that it has completed the acquisition of 51 percent of Jeddah Doctors Co. in a deal worth SR102 million ($27 million).
The financial impact of this acquisition is expected to appear in the third quarter of 2022, according to a bourse filing.
Jeddah Doctors Co. is a Saudi closed joint stock company that owns a hospital presently under construction in Jeddah called Jeddah Doctors Hospital.
RIYADH: The Saudi main index ticked up in its first trading session of October as investor recession fears subsided.
The Tadawul All Share Index ended 0.72 percent higher to reach 11,487; the parallel market Nomu edged 0.34 percent higher to 19,939.
Saudi oil giant Aramco ended with a 0.28 percent decline, while Rabigh Refining and Petrochemical Co. edged up 1.31 percent.
The Saudi National Bank, the Kingdom’s largest lender, fell 0.63 percent, while Saudi British Bank increased by 2.43 percent.
The Kingdom’s most valued bank Al Rajhi gained 1.48 percent, while Alinma Bank gained 1.93 percent.
Saudi Paper Manufacturing Co. decreased by 0.19 percent, after it signed SR166 million ($44 million) agreement with Italy-based Toscotec for a raw tissue paper roll production line.
Retal Urban Development Co. dropped 0.28 percent, after its shareholders approved a cash dividend of SR2 per share for the first half of 2022.
Tihama Advertising and Public Relations Co. declined 1.61 percent to lead the fallers, after the company and UK-based WPP postponed their merger agreement until Oct. 31, 2022.
Middle East Healthcare Co. led the pack of gainers with an increase of 9.93 percent.
