Analysis Agriculture Weather and politics keep pressure on price of rice The status of rice as a global food staple means that it is also a political minefield for producer nations. So all eyes are on India as rice prices fluctuate at around a 15-year high. Different varietals and markets command different prices, but trading on “contracts for difference”, which track benchmark prices, saw the cost of […] June 27, 2024
Analysis Artificial Intelligence US scores geopolitical win with Abu Dhabi-Microsoft tie-up Microsoft’s $1.5 billion investment in Abu Dhabi’s artificial intelligence company has received a significant vote of confidence from US authorities. Tarun Chhabra, a senior White House adviser on technology, said on Monday that the US government has raised no objections to the Silicon Valley giant’s partnership because G42 had severed ties with the Chinese tech […] June 26, 2024
ANALYSIS Economy Gulf to ‘see more rather than less’ despite China’s slowing economy Beijing's sluggishness need not be bad news for the GCC, analysts tell AGBI June 24, 2024
Manufacturing China picks Morocco for Europe’s EV battery supply China is intent on establishing a battery supply chain for the European electric vehicle (EV) market in Morocco, a top Volkswagen AG executive has said. The initiative comes as Europe grapples with challenges in establishing its industry to support EV manufacturing. “We don’t have any supply chain. This has to be set up,” Bloomberg reported, […] June 21, 2024
Oil & Gas Upturn for manufacturing tipped to lift oil prices Rising manufacturing activity worldwide is likely to support higher oil prices in the second half of the year, a supply chain indicator suggests. However, analysts have warned that spare capacity among Opec+ and other oil producers is likely to ease upside pressure on crude prices. The GEP Global Supply Chain Volatility Index hit 0.21 in […] June 21, 2024
Oil & Gas Opec and IEA poles apart on oil supply predictions Opec and the Paris-based International Energy Agency (IEA) have this week both issued reports with vastly differing predictions for the outlook for global crude production in the coming years. However, the opposing organisations agree on one thing: that China will be the determining factor in production and prices this year. In its latest annual medium-term […] June 12, 2024
Analysis Health Wearable tech shoppers track price as well as health Gulf consumers who are interested in wearable tech – smart watches, rings, glasses and implants – are opting for mid-range gadgets rather than premium devices, industry experts have told AGBI. Dubai retailer Jumbo Electronics reported 50 percent year-on-year growth in the AED600-1,000 (about $163-$272) price segment in the first four months of 2024. The AED1,000-1,500 […] June 10, 2024
Manufacturing Morocco signs Chinese deal to build EV battery factory China has announced a second large-scale investment in Morocco’s electric vehicle sector with plans for an EV battery factory to take advantage of access to the European market and a burgeoning automotive sector. A $1.3 billion deal has been signed between the Moroccan government and the Chinese-European group Gotion High Tech to build a gigafactory […] June 7, 2024
Oil & Gas Aramco awards Sinopec $1.4bn gas pipeline contract Saudi Aramco has awarded a SAR5.2 billion ($1.38 billion) contract to Chinese state energy major Sinopec to expand its domestic natural gas pipeline. Sinopec International Petroleum Services Corporation, a wholly-owned subsidiary of Sinopec Oilfield Service Corporation, won the engineering, procurement and construction (EPC) contract for the third phase of Aramco’s master gas system, one of the […] June 7, 2024
Tech Saudi Arabia campaign aims to attract chipmakers Saudi Arabia has launched a National Semiconductor Hub in a bid to attract international chipmakers. The kingdom is targeting at least 50 semiconductor design companies to set up business by 2030, aiming to cut its reliance on imported computer chips. The global semiconductor industry, once plagued by shortages, is now showing signs of recovery and […] June 6, 2024
Aviation Etihad and China Eastern forge new network alliance Etihad Airways and China Eastern Airlines have agreed to expand connectivity between the UAE and China. The UAE national airline and the Shanghai-based carrier signed a joint venture agreement – the first commercial one between a Middle Eastern airline and a Chinese airline – to jointly develop the routes. The move will broaden the network […] June 6, 2024
Analysis Oil & Gas Gulf oil producers anticipate peak in Chinese demand In any discussion of the outlook for oil prices, Chinese demand always features largely. For the Gulf this is particularly crucial. China is the main off-taker of Saudi, Iraqi, Omani, UAE and Kuwaiti crudes. At the weekend, Opec+ again committed to rolling over oil supply cuts to support crude prices but analysts say its efforts […] June 5, 2024
Opinion Trade The GCC will benefit from a US-China chill The Gulf's expanding strategic links with Asia mean higher growth at home June 4, 2024
Opinion Oil & Gas Opec+ meetings spring just enough surprises for the oil markets The phasing out of voluntary cuts begins this year – how will the speculators react? June 3, 2024
Aviation Emirates chief backs Chinese plane maker Comac The president of Emirates, Sir Tim Clark, has given his backing to Chinese aircraft manufacturer Comac as problems persist at the US plane maker Boeing. Commercial Aircraft Corporation of China, based in Shanghai, has been courting attention across the Gulf in recent months as Boeing grapples with delivery delays, a spate of accidents and whistleblower […] June 3, 2024
Artificial Intelligence China’s OpenAI rival backed by Saudi fund Saudi Aramco’s venture capital fund Prosperity7 has joined a $400 million investment round for Chinese generative AI startup Zhipu AI. Prosperity7 is a minority investor in Zhipu, which is valued at nearly $3 billion, the Financial Times reported on Friday. This marks the first instance of foreign investment in China’s quest to establish a homegrown […] May 31, 2024
Tech China’s Lenovo issues $2bn bonds to repay Saudi Alat debt China’s Lenovo Group has issued $2 billion in convertible bonds to Alat, a Public Investment Fund (PIF)-backed technology manufacturing company, to repay its existing debt and boost working capital. As part of the agreement, the Hong Kong-headquartered personal computer maker will open a new PC and server manufacturing facility and establish its Middle East and Africa […] May 29, 2024
Aviation Riyadh Air not buying from China’s Comac ‘for now’ Riyadh Air, Saudi Arabia’s new national carrier, will not consider China’s Comac for its narrowbody order to be announced later this year. However, the airline said it saw a future in Saudi Arabia for Comac, the Commercial Aircraft Corporation of China, as the Chinese alternative to Boeing and Airbus. “The narrowbody order is in its […] May 27, 2024
Aviation Chinese planemaker banned by US woos Saudi airlines The boss of a leading Chinese planemaker arrived in Saudi Arabia this week to pitch his aircraft just as the United States said it was close to finalising a defence agreement with Riyadh that is meant to limit its trade links with China. Dongfeng He, chairman of Comac, the Commercial Aircraft Corporation of China, wants […] May 24, 2024
Retail Middle East phone users turn to Chinese budget brands Middle East consumers are embracing budget-friendly Chinese smartphone brands, as global favourites such as iPhone and Samsung suffer a slump in sales. The Middle East’s smartphone market is flourishing, with shipments excluding Turkey reaching more than 12 million units in the first quarter of 2024, a year on year increase of 39 percent, a report […] May 24, 2024
