“Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC+ has done and what it has achieved.”
-Prince Abdulaziz bin Salman, Saudi energy minister, who dismissed calls for speedier oil output increases on Thursday, saying its efforts with allies were enough and protecting the oil market from the wild price swings seen in natural gas and coal markets. The Organization of the Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC+, have done a “remarkable” job acting as “so-called regulator of the oil market,” he said. [Reuters]
“OPEC has trimmed its world oil demand growth forecast for 2021 while maintaining its 2022 view, its monthly report showed on Wednesday, but it said surging natural gas prices could boost demand for oil products as end users switch.”
–Ahmad Ghaddar and Alex Lawler of Reuters discuss how the Organization of the Petroleum Exporting Countries (OPEC) now expects oil demand to grow by 5.82 million barrels per day, down from 5.96 million bpd in its previous forecast. [Reuters]
“We have not actually finalized the group of banks yet, but we are very advanced in structuring and work is being done internally…We would very much like to make sure it’s sustainability-linked.”
–Paddy Padmanathan, ACWA CEO, told Reuters in an interview that ACWA Power, which debuted on Saudi Arabia’s stock market on Monday, expects to finalize in the first quarter of next year billions of dollars in financing for a green hydrogen joint venture at the planned futuristic city NEOM. He added the project was “on track.” Roughly 20% of the $6.5 billion project will be funded with equity and the rest will be limited-recourse project finance, he said. [Reuters]
“The combined market value of the 10 local banks at the end of trading on Sunday was about SR968.88 billion ($258 billion), the closest it’s ever been to SR1 trillion. Al-Rajhi Bank has the highest market value of about SR335.5 billion ($89 billion) equivalent to 34.63 percent of the total value of the banking sector in the Kingdom. The National Commercial Bank (Al-Ahli Bank) came second, with a value of about SR288.38 billion ($77 billion), or 29.76 percent of the total value of the Saudi banking sector. Riyad Bank came third with about SR82.2 billion ($21.8 billion and 8.48 percent).”
–The Saudi Gazette, in a report on the total market value of Saudi banks, which has approached the SR1trillion mark for the first time in history. [Saudi Gazette]
“The authorities will also keep on maintaining efforts to rebalance the hydrocarbon industry away from its reliance on upstream crude production and export, toward natural gas and value-added midstream hydrocarbon activities such as refining, petrochemicals, chemicals, and minerals…Several large hydrocarbon projects will continue to ramp up production in 2021-2024.”
From S&P Global Ratings assessment of Saudi Arabia’s economy. [Yahoo]
“This is a long-term investment. We are excited about the future prospects for Newcastle United. We intend to instill a united philosophy across the club, establish a clear purpose, and help provide leadership that will allow Newcastle United to go on to big achievements over the long term. Our ambition is aligned with the fans — to create a consistently successful team that’s regularly competing for major trophies and generates pride across the globe.”
-Amanda Stavely, a member of the Saudi-led purchase of Premier League member Newcastle United. [ESPN]
“The domestic market is pretty much not far off being back to 100%. It’s around the 90% mark….We need more aircraft.”
-Con Korfiatis, CEO of Saudi-based Flyadeal airlines, told Reuters in an online interview. Flyadeal, a subsidiary of state carrier Saudi Arabian Airlines, resumed flights within Saudi Arabia in late May 2020 after services were suspended that March due to the COVID-19 pandemic, and had itself returned to full capacity by October. [Reuters]
“I lived in Saudi Arabia for 16 years and I used to eat Al Baik food every two to three days. When I first heard they had opened up a branch in The Dubai Mall this year, I had a craving, but when I visited there was a two-kilometre long queue.”
–Mohamed Abdel Halim commenting on the long lines at Al Baik, Saudi Arabia’s popular chicken franchise, at the Dubai Expo 2020. [The National]
“The global supply chain was in crisis in the beginning of the pandemic. Maybe in 2023 we’ll see an easing.”
-Sultan Ahmed Bin Sulayem, DP World Chairman and CEO speaking at the Dubai Expo 2020. “Belt and Roads was built on everything leaving China smoothly in these six belts — three by rail, three by sea. But today, with the obstacle of Covid coming into the equation, I wonder if they’ll have to review it.” [Bloomberg]
“Recycling waste and e-waste is an interesting addition, because it’s different than the other activities that [focus on] logistics and transportation time, exporting and re-exporting.”
–Ibrahim Siddiki, partner at Bracewell LLP law firm, discussing plans for Saudi Arabia’s recently announced Integrated Logistics Bonded Zone (ILBZ) near the international airport in Riyadh. On e-waste alone, the kingdom generated 533 kilotons in 2018 but the country lacks a framework for managing the batteries, phones, computers and other electronics that are tossed out that ultimately harm the environment, according to a 2019 paper published on the US National Centre for Biotechnology Information. [Arabian Business]
