IMF: Gov. Strategy Helped the Saudi Economy

Business

May 4th, 9:37am

Riyadh - Asharq Al-Awsat

Saudi Arabia continues to support the strategy of reducing dependence on oil through the growth of private sector business (Asharq Al-Awsat)

The International Monetary Fund (IMF) confirmed that government-led reforms and private investment growth in new sectors would help support non-oil economic growth in Saudi Arabia to be less dependent on oil. The Saudi economy grew 8.7 percent last year, while the real GDP during the fourth quarter of 2022 increased 5.5 percent compared to Q4/2021, according to the General Authority for Statistics (GASTAT). The IMF projected that Saudi GDP growth would more than halve, to 3.1 percent, this year, in line with the forecast for Middle East oil exporters. The forecast, however, is higher than the 2.6 percent growth rate that the IMF projected in January. The director for the Middle East and Central Asia at the IMF, Jihad Azour, told Reuters that the oil sector is expected to slow down with the implementation of the new OPEC+ quotas. Azour added that the impact on the Kingdom's budget depended on prices. He said that the drop in production will affect growth because output will decline, and that revenues could grow, which could have a positive impact on both external accounts, the reserves, and the budget deficit. Azour added that the government's strategy over the past five years has helped the Saudi and public finances to be less dependent on the oil cycle. Azour went on to say that the non-oil economy is growing in Saudi Arabia, mainly driven by the private sector. In addition, the IMF expected non-oil GDP growth in Saudi Arabia by 4.9 percent this year and 4.2 percent next year. The Kingdom's economy would grow 3.1 percent this year, an upward revision of the previous estimate of 2.6 percent in January. Saudi Arabia's oil exports are expected to reach 7.44 million barrels per day (bpd) in 2023 and 7.48 million bpd in 2024. The IMF pointed out that the oil price that Saudi Arabia needs for budget breakeven is $80.90 per barrel in 2023, expecting the average oil price at $73.13 per barrel this year. Meanwhile, the Riyad Bank Purchasing Managers' Index (PMI) revealed that non-oil private sector companies witnessed a continuous improvement in overall performance during April, as new orders increased at the fastest rate since September 2014. According to the index, the slight decline in export sales was offset by an increase in domestic demand, and job creation continued in April, as evidenced by the rise in total employment numbers for the 13th consecutive month. The Kingdom's PMI went up to 59.6 in April from 58.7 in March, fractionally lower than the eight-year peak in February, when the metric hit 59.8. The sharp and rapid increase in new business volume was the main driver of the rise in the index during April, and the growth rate of new orders was the fastest in just over eight and a half years. Companies participating in the study commented on positive factors supporting customer demand, including the increase in tourists and consumer spending. According to the report, job creation continued in April, as signaled by a rise in total employment numbers for the 13th month. The report, however, noted that new orders from abroad declined for the first time since February 2022 due to intense competition and less favorable economic conditions in overseas markets. Chief economist at Riyad Bank Naif al-Ghaith said the April PMI data highlighted another steep expansion of business activity across the Kingdom's non-oil private sector economy. "We have witnessed rising tourism numbers, higher consumer spending, and new business opportunities related to major infrastructure projects," Gaith said, adding that long-term business expansion plans have made the rate of job creation slightly stronger than seen on average in the first quarter of 2023.

from Asharq AL-awsat https://english.aawsat.com/home/article/4310361/imf-gov-strategy-helped-saudi-economy

Sisi: Egypt Facing Growing Difficulties with More Sudanese Seeking Refuge

Arab World

May 4th, 8:40am

Cairo - Asharq Al-Awsat

Egyptian President Abdel Fattah Al-Sisi and Japanese Prime Minister Fumio Kishida in Cairo. (AFP)

Egyptian President Abdel Fattah Al-Sisi said that his country is facing growing economic “difficulties” because of Sudanese people fleeing the conflict raging in their country to Egypt . In an interview with a Japanese newspaper on Tuesday, The Asahi Shimbun, Sisi said that the Egyptian economy is doomed to worsen if the country continues to receive more Sudanese escaping the war in Sudan. The Egyptian economy has seen a downturn as a result of Russia’s war on Ukraine. The Egyptian President stated that Egypt hosts nearly nine million individuals from different countries including Sudan, Libya, Syria, Yemen, and other African nations. The conflict in Sudan between the Sudanese army and the paramilitary Rapid Support Forces could easily impact the whole region, explained Sisi, expressing willingness to cooperate with Japan to help the rival Sudanese parties agree on a ceasefire and form a civilian government. Fighting between Sudan's army and the RSF erupted on April 15 resulting in multiple fatalities and injuries. On Sunday, Sisi met with Japanese Prime Minister Fumio Kishida. The two officials agreed to promote relations between their countries.

from Asharq AL-awsat https://english.aawsat.com/home/article/4310251/sisi-egypt-facing-growing-difficulties-more-sudanese-seeking-refuge

UN Envoy Meets Alimi in Aden After 'Constructive Discussions' with Houthis

Arab World

May 4th, 7:50am

Aden - Ali Rabih

Head of the Presidential Leadership Council Rashad al-Alimi meets UN envoy to Yemen Hans Grundberg (Saba)

The UN envoy to Yemen, Hans Grundberg, outlined the Yemeni agreement he sought to conclude after holding "frank, detailed, and constructive" discussions with the Houthis in Sanaa. The UN envoy arrived in Sanaa Monday within the international efforts to support the Saudi and Omani mediation to achieve lasting peace in Yemen. In a media briefing before leaving Sanaa, Grundberg said he had "positive engagements with the authorities in Sanaa" and had "frank, detailed, and constructive discussions on the way forward." The envoy indicated that he was encouraged by what he heard and, indeed, by the constructive engagement by all sides at this critical time. The envoy revealed the broad lines of the agreement he wants to achieve, saying that any deal must deliver tangible benefits for all Yemenis. It should durably stop the violence through a cease-fire that ensures the safety of the Yemeni people, ensure more destinations and flights to and from Sana'a airport, guarantee the smooth and unhindered opening of the Hodeidah ports, and the resumption of the country's oil exports. The envoy indicated that key roads in Taiz and other governorates must be opened, and public sector salaries must be paid regularly, transparently, and sustainably across the country. It is crucial that any agreement also provides for the "preparation and the resumption of an inclusive, Yemeni-owned political process under the UN auspices," said Grundberg, adding that "only through such a process can Yemenis discuss, debate, and decide the terms of reaching a sustainable and just peace." The envoy indicated that he was encouraged by the "positive and constructive atmosphere" during his meetings here in Sanaa. "I look forward to returning in the near future to continue our engagement. I am heading to Aden today to engage with the Government of Yemen and hear their views on the way forward. I will also discuss the way forward with Saudi and Omani officials." After a year of unprecedented calm in Yemen, the parties need to take the next bold steps toward ending the conflict, said Grundberg. The UN envoy asserted that "cooperation at the regional level is also contributing to the current conducive environment." "Opportunities like this are precious, yet at the same time, precarious. More than ever, now is the time for dialogue, compromise, and a demonstration of serious political will and leadership to achieve peace." He asserted that the UN would accompany and support Yemenis every step of the way. After his meetings in Sanaa, Grundberg headed to Aden to meet with the head of the Presidential Leadership Council, Rashad al-Alimi, who affirmed support for the UN endeavors, accusing the Houthis of not being "ready for peace." Meanwhile, the official media reported that the President of the Presidential Leadership Council discussed with the UN envoy Yemeni developments and coordinated international efforts to revive the peace process. Alimi returned Tuesday to Aden from Cairo after a "personal leave," according to state media. Saba news agency reported that Grundberg briefed Alimi on the results of his recent meetings at the local and regional levels. According to the agency, Alimi praised Saudi Arabia's efforts based on its 2021 peace initiatives and the importance of building on them to push the terrorist Houthi militia to deal seriously with regional and international endeavors. The President welcomed the recent statement of the UN Security Council calling for engagement in good faith in peace efforts, stressing the need for any negotiation process based on the agreed terms of reference, particularly the relevant Security Council resolutions. Alimi affirmed the Council's and the government's commitment to supporting the envoy's efforts and regional and international mediators, accusing Houthi militia of "not being ready for peace." Houthi militia doesn't care about the exacerbating suffering that was clear in the painful stampede disaster in Sanaa that killed dozens of poor people looking for any humanitarian aid to survive, indicated Alimi, referring to the stampede that killed more than 200 people and wounded, just before Eid al-Fitr. He called on the international community to pressure the Houthi militia to fulfill its obligations under the Stockholm Agreement, including visits to detention facilities and revealing the fate of thousands of abductees and disappeared persons. Saba agency reported that Alimi warned the international community against overlooking Houthi's unilateral measures and gross human rights violations, encouraging them to mobilize more than a million children into sectarian camps. Meanwhile, the UN envoy and US Special Envoy to Yemen, Tim Lenderking, began a new round of meetings supporting the efforts led by Saudi Arabia and Oman to bring peace to Yemen. Lenderking arrived in Riyadh to discuss the recent developments and reviewed the Kingdom's efforts to back peace efforts, alleviate the humanitarian suffering of the Yemeni people, and support the Yemeni government and economy and the actions of the UN envoy.

from Asharq AL-awsat https://english.aawsat.com/home/article/4310166/un-envoy-meets-alimi-aden-after-constructive-discussions-houthis

Iranian Official Says Saudi Trade Delegation to Visit Tehran Soon

Iran

May 4th, 5:52am

Tehran - Asharq Al-Awsat

Mehdi Safari. (Fars News Agency)

A Saudi trade delegation will visit Iran soon to attend a business exhibition, said Deputy Foreign Minister for Economic Diplomacy Mehdi Safari on Wednesday. Running from May 7-10, Iran Expo 2023 is an exhibition focused on Iranian export potential and sponsored by the Trade Promotion Organization of Iran and the Ministry of Industry, Mining, and Trade. "In the next few days, a trade delegation from Saudi Arabia will come to Iran accompanied by a deputy minister to attend the Iran Expo exhibition," Reuters quoted Safari as telling Iranian media. In a mediated agreement brokered by China, Saudi Arabia and Iran announced on March 10 their decision to restore diplomatic ties and reopen their respective embassies and consulates within two months at most. This development was broadly welcomed by the Arab world and the international community. Iranian Foreign Ministry spokesman Nasser Kanaani announced that Iranian missions in Saudi Arabia have taken their first steps to resume diplomatic activity in the Kingdom.

from Asharq AL-awsat https://english.aawsat.com/home/article/4309966/iranian-official-says-saudi-trade-delegation-visit-tehran-soon

Road Accident Leaves 14 Dead in Egypt

Arab World

May 4th, 4:50am

Asharq A-Awsat

People gather at the site where a passenger train derailedin Banha, Qalyubia province, Egypt, Sunday, April 18, 2021. (AP Photo/Fadel Dawood)

Fourteen people were killed and 25 injured after a public transport bus collided with a heavy transport truck on a desert highway in southwestern Egypt on Wednesday, medical and security sources said. The accident occurred on Assuit-Kharga highway, around 400 km (250 miles) southwest of Cairo, in New Valley province, the sources said. Seventeen ambulances were dispatched to the scene to ferry the injured to hospitals, state news agency MENA quoted New Valley governor Mohamed el-Zamlout as saying. It was not immediately clear how the accident occurred.

from Asharq AL-awsat https://english.aawsat.com/home/article/4309916/road-accident-leaves-14-dead-egypt

UN: 258 Million People Faced Acute Food Insecurity in 2022

World

May 3rd, 8:43am

Asharq Al-Awsat

This aerial view shows makeshift structures of people displaced by drought at the Ladan internally displaced people (IDP) camp in Dolow on May 1, 2023. (AFP)

More than a quarter-billion people in 58 countries faced acute food insecurity last year due to conflicts, climate change, the effects of the COVID-19 pandemic and the war in Ukraine, according to a report published Wednesday. The Global Report on Food Crises, an alliance of humanitarian organizations founded by the UN and European Union, said people faced starvation and death in seven of those countries: Somalia, Afghanistan, Burkina Faso, Haiti, Nigeria, South Sudan and Yemen. The report found that that the number of people facing acute food insecurity and requiring urgent food aid — 258 million — had increased for the fourth consecutive year, a “stinging indictment of humanity’s failure” to implement UN goals to end world hunger, said UN Secretary-General Antonio Guterres. While the increase last year was due in part to more populations being analyzed, the report also found that the severity of the problem increased as well, “highlighting a concerning trend of a deterioration.” Rein Paulsen, director of emergencies and resilience for the UN Food and Agriculture Organization, said an interplay of causes was driving hunger. They include conflicts, climate shocks, the impact of the pandemic and consequences of Russia's war in Ukraine that has had an impact on the global trade in fertilizers, wheat, maize and sunflower oil. The impact has been most acute on the poorest countries that are dependent on food imports. “Prices have increased (and) those countries have been adversely affected,” Paulsen said. He called for a “paradigm shift” so that more funding is spent investing in agricultural interventions that anticipate food crises and aim to prevent them. “The challenge that we have is the disequilibrium, the mismatch that exists between the amount of funding money that’s given, what that funding is spent on, and the types of interventions that are required to make a change,” he said. Acute food insecurity is when a person’s inability to consume adequate food puts their lives or livelihoods in immediate danger.

from Asharq AL-awsat https://english.aawsat.com/home/article/4308196/un-258-million-people-faced-acute-food-insecurity-2022

UK Security in ‘No Way Complacent’ Ahead of Coronation, Says Minister

Varieties

May 3rd, 7:45am

Asharq Al-Awsat

Coronation plates and mugs are displayed for sale in a gift shop in London, Monday, April 24, 2023. (AP)

British security forces are prepared for King Charles' coronation, security minister Tom Tugendhat said on Wednesday, hours after a man was arrested outside Buckingham Palace for throwing shotgun cartridges. "We're in no way complacent" Tugendhat told Sky News. "I'm very glad to see that the police reacted incredibly quickly, incredibly professionally to the incident last night." He added that months of planning went into preparing for the event, keeping in mind any number of different threats. The incident outside the palace on Tuesday happened days before Saturday's crowning, which is expected to attract large crowds to London in addition to heads of state from around the world who are invited for the formal ceremony. Tugendhat told Times Radio the event was "one of the most important security operations that the country has put into plan." "The police are, to put it mildly, all over it, and our intelligence and other security forces are extremely aware of the challenge that we face," he said.

from Asharq AL-awsat https://english.aawsat.com/home/article/4308076/uk-security-%E2%80%98no-way-complacent%E2%80%99-ahead-coronation-says-minister