Saudi-French Investment Forum begins in Riyadh today

“Invest in Saudi Arabia" will host the Saudi-French Investment Forum in Riyadh on Tuesday. The forum, under the slogan "Saudi Vision 2030 - France's Plan 2030: Mutual Investment across Visions", is being held on the occasion of the state visit of French President Emmanuel Macron to Saudi Arabia, the Saudi Press Agency reports.

The forum will include dialogue sessions bringing together Saudi and French ministers; senior executives, and prominent business leaders from both countries. They will discuss partnership opportunities between the two countries, long-term cooperation, innovation, and mutual growth in vital sectors.

The speakers will also address topics of critical importance to the future of both countries, including leveraging digital transformation, advancing green energy initiatives, and enhancing cultural exchange.

The forum is an extension of the remarkable achievements made in investment relations between the Kingdom and France, as France is the largest source of foreign direct investment (FDI) flows to the Kingdom among the G20 countries. The FDI flows from France to Saudi Arabia amounted to more than SR11.2 billion in 2023.

The French companies obtained 503 investment licenses in the Kingdom and these included 117 licenses issued during the year 2024, of which 33 companies have regional headquarters in the Kingdom

Trump tariffs could impact US tanker trades

US President-elect, Donald Trump, has threatened to slap 25% tariffs on neighbours, Canada and Mexico, until such time as the flow of drugs and migrants stops. Since Canada to the north and Mexico to the south both supply large volumes of crude oil to US markets, there are far-reaching implications for the North American energy market.

Analysis by London shipbroker, Gibson, notes that Canada’s exports to the US of more than four million barrels of heavy crude a day move mostly through pipelines and would therefore be difficult to redirect.

About three quarters of the Canadian crude goes to the midcontinent region of the US, Gibson said, where refineries are geared up for these heavy grades. There is no ready alternative source of crude oil and refiners would have few options but to pay the tariff and pass the cost on to consumers, or cut refinery runs.

If Trump were to proceed with the tariffs, Canadian oil producers would have few options for other markets, Gibson said.

The Trans Mountain Expansion (TMX) pipeline, opened in May, has doubled Canadian seaborne exports but spare capacity is limited.

About 175,000 barrels a day of TMX crude that currently goes to the US west coast could be redirected to Asia but these barrels would have to be replaced with supplies from Latin America or the Middle East, driving up ton-mile demand.

For Mexico, the situation is less complex, Gibson said. All of that country’s exports move by sea and European and Asian refiners could take up more Mexican oil if US demand fell.

This would boost ton-mile demand and could generate more business for larger tankers on long hauls. However, Gibson warned that vessels currently ballasting from east of Suez Canal to the US Gulf might well ship these cargoes, lessening the impact.

The shipbroker concludes that it is difficult to see the tariffs being enacted in their present form because they would raise costs for US consumers.

The broker notes that the President-elect has used tariffs as a negotiating ploy in the past.

Canadian Prime Minister Justin Trudeau dined with Trump at his Mar a Lago estate on Friday evening. The two men were said to have had a productive meeting and an ‘excellent conversation’.

Courtesy: Seatrade Maritimes News

Pezeshkian slams intervention in West Asia

Iranian President Masoud Pezeshkian underscored the vital need for regional cooperation to establish security in West Asia, asserting that foreign interference is unwarranted.

During a joint session of the government and parliament on Sunday, President Pezeshkian conveyed Iran's peaceful intentions, emphasizing that the nation is not looking for conflict or violence. 

He chastised the Western countries for their double standards, which hypocritically claim to champion human rights and peace, pointing out that they are the true instigators of war and violence.

Addressing the ongoing conflict in Gaza, Pezeshkian expressed his horror at the actions of the Israeli regime. 

"For me, as a human being, regardless of my position, it is unimaginable that a regime would allow itself to drop multi-ton bombs on women, children, and defenseless civilians in hospitals and schools," the Iranian president stated.

He expressed sorrow over the deaths of more than ten thousand children in the conflicts in Gaza and Lebanon, condemning the passive response of those claiming to defend human rights. 

Pezeshkian denounced the role of the United States and European nations in the tragic events in Gaza and Lebanon, calling it shameful that these powers provide support and arms for such actions. 

Iranian President clarified that Iran harbors no intentions of territorial expansion against its neighbors. 

He noted Iran's efforts to resolve misunderstandings in bilateral relations, asserting that the situation in the region has improved. 

He emphasized regional unity against Israeli aggression, stating, "This is the first time all countries in the region have come together to condemn Israel's actions against Iran, and I commend our neighbors for this rightful stance," referring to the Israeli airstrikes on Iranian territory on October 26, 2024.

 

Trump: The New Pharaoh

On Sunday morning when I logged in to my LinkedIn account, it was filled with a post on US president-elect Donald Trump. The gist of this post was, “Any country that joins or trade in BRICS currency will have to face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy”.

I was not surprised to read Trump’s post because he has been elected with the votes and financial support of military complexes, oil companies and Wall Street mafia. He has been given mandate to bring the entire world under the US hegemony.

Americans have attained this mindset because rest of countries, including some of the global and regional powers have proved spineless. The biggest evidence of this feebleness in the ongoing genocide by Israel in Gaza, to date nearly 45,000 people mostly women and children have been killed. Remember the munitions is being supplied by the United States, which has been also vetoing UN resolutions.

The time has come all the nations join hands to end the US hegemony. If Japan, Germany, China, Singapore and Malaysia can become economic might and Iran can survive and prosper with more than four and half decades of economic sanctions, there is no need to be afraid of US onslaught. Defeat is the ultimate destination of the United States.

PSX Index closes the week at the historic high

Pakistan Stock Exchange (PSX) remained volatile throughout the week ended on November 29, 2024. This led to the KSE-100 index registering its highest ever intra-day gains of 4,695 points on Wednesday, and closing at a record high of 101,357 points on Friday, marking an increase of 3.6%WoW.

The volatility stemmed from acceleration in political instability amid opposition party reaching to protest in the country’s Capital, creating uncertainty amongst the investor, leading to a major fall in benchmark index, marking a decrease of 3,506 points on Tuesday. However, market regained its momentum on Wednesday after the protestors started to back off from Islamabad and the momentum was further fueled by a circular from the State Bank of Pakistan (SBP), removing the MDR requirements on deposits held by Commercial banks of financial institutions and public sector enterprises. This led to the KSE-100 index registering its highest ever intra-day gains of 4,695 points on Wednesday, and closing at a record high of 101,357 points on Friday, marking an increase of 3.6%WoW.

Major contributing sectors to this rally were commercial banks, contributing 1,675 points, followed by Technology & Communication with 349 points, and Oil & Gas Exploration, which added 283 points during the week. However, with another circular from the SBP revising its guidelines for profit sharing on saving deposits for Islamic Banking Institutions (IBIs), which resulted in MEBL eroding 439 points during the week.

Secondary market yields on the 6-month bill decreased to 12.12%, dropping to the lowest levels seen in over 2.5 years.

Foreign exchange reserves held by SBP increased by US$131 million WoW, ending the week at US$11.4 billion as of November 22, 2024.

Average daily trading volume remained higher, up by 39.8%WoW, rising to 1.4 billion shares, as compared to 990.7 million shares traded a week ago.

PKR witnessed a meagre depreciation of 0.1% against the greenback during the week to close at 278.05PKR/US$.

Other major news flow during the week included, 1) SBP receives US$500 million from ADB under climate resilience program, 2) IT Ministry released incentive plan for semiconductor industry, 3) Pakistan, Belarus announced to boost ties with 8 MoUs, and 4) the GoP formed a body to oversee Reko Diq deal.

Property, Leather & Tanneries, Oil & Gas Marketing Companies, Technology & Communication and Exchange Traded Funds were amongst the top performing sectors, while Jute, Woollen, Transport, Automobile Assembler & INV.Banks/ INV.Cos/ Securities Cos. were amongst the worst performers.

Major selling was recorded by Foreigners with a net sell of US$15.1 million. Insurance Companies absorbed most of the selling with a net buy of US$10.6 million.

Top performing scrips of the week were: BOP, AKBL, HBL, JVDC, and MEHT, while laggards included: MEBL, FABL, PSEL, SAZEW, and GHGL.

Continuation of monetary easing due to disinflationary environment and improving macroeconomic environment would make investment in equities more appealing, currently trading at P/E of 4.9x and DY of 10.2%.

Aforementioned factors, along with declining external financing requirement under the IMF program, would keep foreigners’ interest alive.

AKD Securities recommends sectors that benefit from monetary easing and structural reforms. However, modest economic recovery may limit the upside for cyclicals.

The top picks of the brokerage house include, OGDC, PPL, MCB, FFC, PSO, LUCK, MLCF, FCCL and INDU.

 

 

Iran: Transit trade through Chabahar Port

Officials from Iran, India, Afghanistan, and Uzbekistan met in Mumbai to explore strategies for enhancing commercial transactions and facilitating the transportation and transit of goods through Iran’s Chabahar Port.

Hossein Shahdadi, Deputy Director of Port and Economic Affairs of Chabahar, represented Iran at the meeting, which also included senior officials from India’s Ministry of Ports, Shipping, and Waterways, as well as ambassadors and diplomats from Uzbekistan, Afghanistan, and Iran.

Chabahar potential

The discussions centered on leveraging Chabahar’s strategic position as a vital trade and transit hub connecting Central Asia, South Asia, and the Middle East. Participants reviewed the port’s current infrastructure and operational capacity while addressing key obstacles to trade, including bureaucratic challenges, logistical inefficiencies, and infrastructure gaps.

As part of the agenda, the officials also proposed measures to streamline customs processes, enhance multimodal transport connectivity, and expand investment in Chabahar’s development to unlock its full potential as a regional trade gateway.

Chabahar regional role

Chabahar Port, located on Iran’s southeastern coast in the Gulf of Oman, is Iran’s only oceanic port and holds immense strategic significance. It provides a shorter and more secure trade route for landlocked countries such as Afghanistan and Uzbekistan, offering a viable alternative to traditional trade routes through Pakistan.

India, in particular, has invested heavily in Chabahar as part of its broader strategy to bypass Pakistan and enhance trade with Central Asia, Afghanistan, and beyond. The port is seen as a linchpin of India’s International North-South Transport Corridor (INSTC), a multimodal trade route linking India to Russia via Iran and Central Asia.

Chabahar Port and India

India has played a significant role in the development of Chabahar Port, committing substantial financial and technical resources to its construction and expansion. Under a trilateral agreement signed in 2016 between Iran, India, and Afghanistan, India has been granted operational control of a portion of the port. Since then, the country has contributed to improving the port’s infrastructure, including the construction of new terminals, installation of modern equipment, and dredging activities to enhance its cargo-handling capacity.

In recent years, India has shipped essential commodities such as wheat to Afghanistan through Chabahar and has positioned the port as a key enabler of humanitarian assistance and economic collaboration. The development of Chabahar aligns with India’s vision of regional connectivity and underscores its commitment to promoting economic stability in Afghanistan and Central Asia.

Future goals and challenges

The third joint working group meeting also highlighted the challenges faced in realizing Chabahar’s full potential. These include the need for sustained investment in rail and road connectivity, enhancing port efficiency, and addressing geopolitical issues, including US sanctions on Iran, which have hindered the pace of collaboration in some areas.

Despite these hurdles, all four nations reiterated their commitment to furthering cooperation on Chabahar and exploring innovative solutions to promote regional trade and economic integration. The port’s strategic location and growing role in fostering connectivity ensure it will remain central to the economic ambitions of the participating nations.

 

GCC Summit begins in Kuwait today

The 45th Gulf Cooperation Council (GCC) Summit is scheduled to begin in Kuwait on Sunday (today). It aims at bringing together leaders and representatives from member states to discuss pressing regional and international issues to bolster sustainable development, regional security, and stability.

The summit will focus on a range of critical issues, including regional security, economic integration, and responses to mounting regional and international challenges.

Leaders are expected to deliberate on enhancing the GCC joint market, fostering technology cooperation, advancing infrastructural linkages, and addressing political files such as Palestine, Lebanon, Syria, Yemen, and Iraq.

Established in 1981, the GCC includes Saudi Arabia, Kuwait, the UAE, Bahrain, Qatar, and Oman, with an annual goal of strengthening cooperation across economic, political, and security domains.

Experts and officials have highlighted the significance of the summit, particularly during a period of heightened regional and international instability.

The GCC leaders are expected to reiterate their commitment to unity and collaboration, ensuring that the council continues to play a central role in addressing the region’s evolving challenges while fostering stability and prosperity for member states