Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, has the Kingdom’s ambition to create a comprehensive platform for the production of electric cars (EVs).
Speaking at the World Economic Forum in Davos, the minister highlighted recent strides in the automotive industry as proof of Saudi dedication to future technologies.
AlKhorayef emphasized Saudi Arabia’s pivotal role in strengthening global supply chains, citing its strategic location, abundant natural resources, and commitment to infrastructure development under “Vision 2030.”
He also shared that the new industrial strategy is now in the implementation phase, underscoring the essential contribution of the private sector in establishing economically and commercially viable industries.
When asked to rate the achievements of the National Strategy for Industry, introduced more than a year ago, AlKhorayef showed that the plan is on track and that Saudi Arabia is racing to triumph over obstacles for investors.
“Today, with a bit of luck, we say that the strategy is already being implemented,” he told Asharq Al-Awsat.
According to Al-Khorayef, the strategy has two main components: the first is for the government to manage things like infrastructure, commercial zones, and power grids.
The second part is crucial, focusing on working closely with private investors inside and outside the country.
“Progress is evident: the budget will be available from the first week of 2024, which will allow projects to start,” AlKhorayef said.
“We have created groups to gauge the wishes of investors, especially for giant projects. We are also working with other government entities to remove any barriers for investors,” he added.
“Ongoing projects look promising and we are committed to accelerating their realization,” AlKhorayef revealed.
Regarding Saudi Arabia’s role in strengthening global supply chains, especially in the context of persistent post-COVID-19 challenges, AlKhorayef said: “A key component of our strategy in industry, mining, logistics and exports is to ensure that the Kingdom plays a role, paper, a role.
The minister stressed the importance of not overlooking the opportunities that a country like Saudi Arabia has to solve the problems of the chain of origin.
“The Kingdom’s exceptional location and natural resources give it a position. Since the launch of Vision 2030, infrastructure improvements such as ports and roads have prepared the Kingdom to find solutions,” AlKhorayef said.
Regarding Saudi Arabia’s increased role in regional and global trade chains, the minister commented that the Kingdom’s national strategy for industry is opening the doors to new industries, catering to local and global demand.
AlKhorayef noted that technological advancements offer a significant opportunity for the Kingdom’s competitive advantage.
He underlined that Saudi Arabia’s industrial plan focuses on embracing and speeding up the use of technologies stemming from the Fourth Industrial Revolution, artificial intelligence, 3D printing, and additive manufacturing.
“That’s why we introduced the ‘Factories of the Future Program’ within the ministry for factories to make an immediate transition,” AlKhorayef said.
When it comes to complex technologies, Saudi Arabia is actively involved in a comprehensive electric vehicle manufacturing sector.
When asked to clarify existing and planned partnerships in the field of EV production, AlKhorayef said: “The automotive sector has a role to play as it not only builds its own industry but also contributes to the wider business landscape. “
“This is to develop vital skills that can be used in other sectors. ”
“It’s important to note that even though Saudi Arabia is the largest car importer, it doesn’t have its own car manufacturing industry yet.”
“Despite a delayed start in the automotive industry, recent progress shows that Saudi Arabia is serious about investing in the industries of the future, especially with three corporations preparing to produce electric vehicles. “
“We actively work with those corporations to make their projects run smoothly,” he said.
“For example, Lucid Motors recently produced cars through car assembly a few months ago, and other factories are moving in the right direction.
“In addition, we helped these companies attract suppliers and create a hub for electric vehicle production in Saudi Arabia. “
“We’re collaborating with different ministries to ensure that suppliers are close to these companies, making them more competitive,” AlKhorayef added.
Gold rose as the dollar retreated and Treasury yields fell, even as costs of other metals remained broadly mixed.
Valuable safe-haven steel rose 0. 1% to $2,073. 0 a troy ounce and is on track to consolidate its weekly gains after the Federal Reserve said rate cuts would not happen anytime soon, causing yields to fall, analysts said, AFP reported.
That said, “in our view, gold is too nervous,” RBC analysts noted.
Battered by both positive and negative macroeconomic pressures, it’s no surprise that gold can’t attract steady flows of investors, given its expectation-based prices, analysts said.
Three-month copper fell 0. 3% to $8,615. 5 a tonne, while aluminum rose 0. 6% to $2,285. 0 a tonne.
The U. N. food agency’s global value index fell in January to its lowest point in just three years, due to falling grain and meat prices.
The Food and Agriculture Organization’s (FAO) price index, which tracks the world’s most traded food commodities, averaged 118. 0 points in January, up from 119. 1 last month, the company announced Friday.
January’s figure is the lowest since February 2021.
“Global wheat export prices declined in January driven by strong competition among exporters and the arrival of recently harvested supplies in the southern hemisphere countries,” the FAO said in its monthly update.
The FAO also said maize (corn) prices fell sharply, reflecting improved crop conditions and the start of the harvest in Argentina and larger supplies in the United States.
The meat value index fell for the seventh consecutive month as an abundance of materials from major exporting countries reduced the foreign value of poultry, beef and pork, the FAO said.
In a separate report, FAO said global cereal production in 2023 is on track to reach a record 2. 836 billion tonnes, an increase of 1. 2% from 2022. World secondary cereal production settled at a record high of 1,523 million tonnes, following an upward adjustment of 12 million tonnes this month.
“Most of the revision reflects new official knowledge from Canada, (mainland) China, Turkey and the United States, where a combination of higher yields and higher-than-expected harvested acreage led to higher maize production estimates,” he added. .
Turkey’s central bank governor Hafize Gaye Erkan resigned on Friday, raising a desire to protect her family amid a “reputation assassination,” and was temporarily replaced by a lawmaker who is expected to respect her strict political stance.
President Tayyip Erdogan, who hired Erkan eight months ago to abandon years of low interest rates that fueled inflation and adopt a more orthodox policy, appointed Deputy Governor Fatih Karahan to take the reins, the Official Journal reported on Saturday, two hours after the wonderful resignation.
Karahan, a former economist at the Federal Reserve Bank of New York, was appointed to the House of Representatives in July and is seen as a capable successor who played a vital role in shaping financial adjustment.
Erkan, a former head of a U. S. bank, began raising rates when she was appointed in June, launching a 180-degree turn after years of low interest rates under Erdogan that had boosted inflation and scared away foreign investors.
Since then, the central bank has raised its key interest rate from 8. 5% to 45%. Last week, after a 250 basis point increase, it said it had adjusted inflation enough to achieve disinflation, indicating a halt.
Erkan said that “our economic program has begun to bear fruit,” citing the accumulation of foreign exchange reserves and expectations that inflation would begin to cool by the middle of the year “as proof of this success. “
“Despite all these developments, as the public knows, a primary crusade has recently been organized against me to damage my reputation,” he added on social media platform X.
“To prevent my family and my innocent son, who is not even a year and a half old, from being further affected by this situation, I have asked our president to forgive me from my duties. “
Last month, the opposition newspaper Sozcu published an article about a central bank worker who claimed to have been wrongfully dismissed through Erkan’s father.
In response at the time, Erkan said that an “unfounded” news story targeting her, her family and the bank was “unacceptable” and vowed to exercise her legal rights against those responsible.
The International Monetary Fund (IMF) has revised its expectations for economic expansion in Saudi Arabia, indicating a outlook for the Kingdom’s economy.
The IMF now forecasts an expansion rate of 5. 5% in 2025, up from its previous estimate of 4. 5% in October 2023.
These revisions were made based on data published in the IMF’s “Global Economic Outlook Updates” report in January 2024, which highlighted the positive outlook for the functionality and strength of the Saudi economy despite the dangers and challenging situations presented by the global economic outlook. .
This outlook confirms the expansion and prosperity of the Saudi economy, driven by strong leadership both regionally and internationally.
The report also expects the global economy to achieve a growth rate of 3.1% in 2024 and 3.2% in 2025.
Saudi Arabia’s Ministry of Finance and the National Debt Management Centre (NDMC) have plans to launch the first government-backed savings product for individuals.
Abdulaziz Al-Furaih, chairman of the Ministry of Finance’s guidance committee, explained that the product launch is part of the projects of the money sector progression program, one of the Kingdom’s Vision 2030 systems, to increase private savings rates. encouraging them to regularly save a portion of their income.
He added that the product aims to strengthen the supply of savings products, enrich monetary literacy and raise awareness about the importance of savings and its benefits, to plan long-term goals.
The savings assignment is called Sah, derived from the first letters of the Arabic word “Sakookun Hukoomiya” or bonds, and will go into circulation on February 4.
Hani Al-Madini, executive director of NDMC, said the product is part of the program of local sukuks denominated in Saudi rials, which will be issued monthly, according to a specific schedule.
He added that the initiative represents an incentive for the personal sector to cooperate and participate in the progression and release of a series of savings products for other categories of people, whether through banks, fund managers, Fintech corporations or others.
The Shah program, which is compatible with the Islamic Shariah, offers cost-effective benefits and will be featured on the virtual channels of various monetary institutions, such as Al-Ahli Financial Company, Aljazeera Capital, Alinma Investment, Al-Awwal Capital, and Al-Rajhi Capital Company.
Saudi Arabia is seeing the launch of gigantic renewable energy projects, leading to a festival within the private sector to attract specialized national skills in the field, according to the chairman of the board of directors of the Saudi Polytechnic Institute for Renewable Energy (SPIRE). ). ). Engineer Majid Al-Refai.
Speaking to Asharq Al-Awsat, Refai revealed that the Saudi government, represented through the Human Resource Development Fund, supports efforts to exercise executives in renewable energy, covering 75% of citizens’ salaries during the exercise period, under a committed program.
According to Refai, the program, implemented in cooperation with SPIRE, is the culmination of the private sector’s initiative to qualify and enhance Saudi skills in the renewable energy sector, noting that the institute holds regular meetings with private sector corporations to meet their intern desires. in this field.
Refai noted that SPIRE recently signed five contracts with private sector companies to train another 100 people to pursue a degree in renewable energy.
Those constitute the first batch of the program, he said, adding that 80 percent of applicants will focus on the solar energy sector, which includes various specializations such as quality, maintenance, and operation, while the remaining 20 percent will specialize in wind energy.
The head of SPIRE revealed that the institute’s facilities would be completed and equipped within a period of two years, to be able to accommodate approximately 3,000 trainees.
He also highlighted agreements with Saudi universities that aim to raise awareness about renewable energy, saying that the ongoing measures will make the SPIRE Institute a pioneer globally and promote cooperation with educational bodies inside and outside the Kingdom.