Ƶ, Bahrain launch 2nd phase of industrial integration
Ƶ, Bahrain launch 2nd phase of industrial integration /node/2605623/business-economy
Ƶ, Bahrain launch 2nd phase of industrial integration
Khalil Ibn Salamah, deputy minister for industrial affairs, launches the second phase of industrial integration between the Kingdom and Bahrain. X/@Jarrah_4
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Nadin Hassan
Ƶ, Bahrain launch 2nd phase of industrial integration
Updated 4 sec ago
Nadin Hassan
RIYADH: Ƶ and Bahrain have launched the second phase of their industrial integration initiative, aiming to boost bilateral trade, investment, and cross-border supply chain cooperation.
Announced on the sidelines of the Saudi Industry Forum 2025 in Dhahran, Khalil Ibn Salamah, the Kingdom’s deputy minister for industrial affairs, emphasized that the new phase would build on prior successes between the two countries.
This comes amid strengthening economic ties between the countries, with the Ƶ’s direct investments in Bahrain reaching SR35 billion ($9.33 billion) in 2023 — representing approximately 20 percent of total foreign investments — and 1,550 Saudi-registered companies operating in the country, as revealed by the Kingdom’s Minister of Investment, Khalid Al-Falih, during a business forum earlier this year.
In an official statement marking the latest announcement, the Saudi Ministry of Industry and Mineral Resources stated: “The second phase of industrial integration between the two countries focused on setting specific targets, including enhancing intra-trade in industrial goods, attracting industrial investments.”
It added that this will help “integration in the field of industrial infrastructure and supply chain integration,” as well as identifying a list of export opportunities for non-oil goods and facilitating procedures for exporters and investors.
The initiative is part of broader efforts under the Gulf Cooperation Council Economic Agreement, which aims to increase the industrial sector’s contribution to regional GDP and foster industrial coordination among member states “on an integrated basis,” according to the ministry.
The second phase builds on earlier efforts, including the Future Factories Program, which helped shift production in both countries from labor-intensive to advanced manufacturing, along with aligning policies to treat local products as national goods and streamline customs processes.
As part of the second-phase launch, Ibn Salamah inaugurated the Bahraini Investors Services Office in Dammam’s Third Industrial City. The event was attended by Bahrain’s Minister of Industry and Commerce, Abdullah bin Adel Fakhro.
“The office aims to attract quality industrial investments and provide all industrial investment services to investors,” the ministry noted.
Positioned strategically near Bahrain, approximately 130 km away, Dammam’s Third Industrial City offers a robust industrial ecosystem.
Spanning 48 million sq. meters, the site features extensive infrastructure including a modern road network, energy and water supply systems, and logistical connectivity through its proximity to King Fahd Port, King Fahd International Airport, and the dry port in the city of SPARK.
The Saudi Industry Forum also highlighted how the new office will offer a “package of services and enablers from the industrial and mining system to facilitate the journey of Bahraini investors,” further underscoring both countries’ commitment to deepening industrial and economic ties.
Petcare and snacking help Saudi consumer spending remain resilient: NielsenIQ
Updated 24 June 2025
Nour El-Shaeri
RIYADH: Consumer spending in Ƶ remained resilient in the year to March, with outlays on low-cost goods rising 3.3 percent, according to a new report by NielsenIQ.
The analysis by the consumer intelligence company showed that spending on tech and durables also rose by 0.2 percent.
The findings are in line with data recently released by the Saudi Central Bank, which showed that Saudi consumer spending hit an all-time high in March, surging 17 percent to SR148 billion ($39.45 billion) — the highest monthly figure since May 2021 — before easing to SR113.9 billion in April.
The trend is further supported by the increased use of digital point-of-sale transactions and rising e-commerce activity through Mada card payments.
In NielsenIQ’s report, Andrey Dvoychenkov, general manager at the firm, credited the strategic visions and initiatives across the region for helping to drive continued economic momentum.
“We’re seeing strong growth in both premium and value segments, and a rapid evolution in retail channels — especially online. For brands, success hinges on relevance, agility, and a deep understanding of consumer expectations,” Dvoychenkov added.
The report also revealed that in the UAE spending on so-called fast-moving consumer goods climbed 7 percent, while tech and durables outlays reached $5.3 billion — up 2 percent year on year.
Top product trends
In Ƶ, category performance pointed to changing consumption priorities. Petcare saw the strongest growth at 10 percent, followed by snacking at 9 percent, while paper products and home care posted declines.
The UAE’s fast-moving consumer goods growth was driven by higher spending on snacking, beverages, dairy, and frozen foods, with personal care up 6 percent.
Growth in tech and durables was led by smartphones, media tablets, vacuum cleaners, and headsets.
Retail formats are evolving, with traditional trade channels in the UAE posting 10 percent growth in fast-moving consumer goods — outpacing organized retail at 3.2 percent — while tech and durables growth remained evenly distributed across formats.
E-commerce continues to expand, accounting for 30 percent of sales of tech and durables and 11 percent of fast-moving consumer goods in the UAE — up from 9 percent a year ago.
In Ƶ, tech and durables e-commerce sales rose 7.7 percent, and fast-moving consumer goods’ online share increased by 1.4 percentage points.
More choice for consumers
NielsenIQ’s latest report showed that Ƶ is now home to over 10,500 active brands, up 5 percent year over year, and nearly 100,000 stock keeping units, or SKUs.
In the UAE, brand count rose 6 percent to 13,000, with SKUs reaching 130,000. In tech and durables, brand activity expanded 18 percent in the UAE and 21 percent in Ƶ, with both markets seeing SKU growth of more than 50 percent.
Consumer spending is increasingly polarized between value and premium segments. Both Ƶ and the UAE recorded double-digit growth in these areas within fast-moving consumer goods.
In tech and durables, value-focused categories grew 6 percent in Ƶ and 3 percent in the UAE, underscoring a heightened sensitivity to price and increased availability of cost-effective options.
The NielsenIQ’s findings backup a 2024 joint report by UAE-based gifting marketplace Flowwow and partner marketing platform Admitad which showed that online order volumes rose by 9 percent in Ƶ and 7 percent in the UAE, highlighting the foundational strength of digital consumer activity in both markets.
An analysis of over 6.8 million transactions across the Middle East and North Africa placed Ƶ, the UAE, and Kuwait among the top contributors by gross merchandise value, reflecting high levels of consumer engagement and sustained investment in digital channels.
Consumer confidence high
Ƶ’s growth aligns with continued positive readings in consumer sentiment. The May 2025 Primary Consumer Sentiment Index, released by Ipsos, recorded a score of 72.2, marginally down from 72.4 in April.
The Kingdom remains among the top-performing countries globally on key economic indicators, with 64 percent of respondents rating the current economy as strong.
Additionally, 40 percent said their personal financial situation is strong, and 77 percent felt more confident about their ability to invest in the future compared to six months ago.
Looking ahead, 84 percent expect their local economy to strengthen over the next six months, though confidence in job security has softened slightly, particularly among resident Arab and Asian expatriates.
The region’s growing economic appeal has intensified competition, particularly in the fast-moving consumer goods sector.
As economic growth in the Gulf continues to outpace the global average — 3 percent for Ƶ and 4 percent for the UAE in 2025, compared to 3.2 percent globally — brands face a growing need to adapt strategies to navigate a digitally connected, value-conscious, and increasingly competitive consumer environment.
Fitch affirms Abu Dhabi rating at ‘AA’ with stable outlook
Updated 6 min 59 sec ago
Nadin Hassan
RIYADH: Abu Dhabi’s long-term foreign-currency rating has been affirmed at “AA” with a stable outlook by Fitch, supported by the emirate’s robust fiscal surpluses, vast sovereign assets, and low debt levels.
The US-based rating agency noted that while Abu Dhabi maintains a strong fiscal position, factors such as its dependence on hydrocarbon revenues, a still-evolving policy framework, and governance metrics that lag behind some of its counterparts present ongoing considerations.
This follows S&P Global’s recent assignment of a “AA/A‑1+” with a stable outlook for its foreign and local currency sovereign credit ratings to the UAE, citing the country’s strong fiscal and external positions. The agency also noted that the UAE’s sizable asset cushion would help shield it from oil price volatility and regional geopolitical tensions.
Despite these structural limitations, Abu Dhabi’s fiscal position remains one of the strongest among Fitch-rated sovereigns. At the end of 2024, government debt stood at 17.4 percent of gross domestic product, well below the peer median of 48.8 percent, and is expected to rise only marginally to 18.2 percent by 2026 due to local currency issuance aimed at supporting domestic debt market development.
In its latest report, Fitch stated: “We project a budget surplus of 7.0 percent of GDP in 2025 (3.1 percent excluding investment income) based on Fitch’s oil price (Brent USD65/b) and production (3.2m b/d) forecasts, and some spending under-execution, down from 9.9 percent in 2024.
It added: “For 2026, higher oil production, modest spending growth and the start of corporate income tax receipts will widen the surplus to 8 percent (4.3 percent excluding investment income).”
The report noted that Abu Dhabi’s fiscal breakeven oil price is estimated at $42.60 per barrel in 2025, or $54.30 excluding investment income, highlighting the emirate’s resilience to oil market fluctuations.
If oil prices decline, the government can maintain economic stability by adjusting spending or drawing on dividends from Abu Dhabi National Oil Co.
According to Fitch, sovereign net foreign assets are estimated to have reached 255 percent of GDP at the end of 2024, with a substantial portion of surpluses allocated to government-related entities such as Abu Dhabi Developmental Holding Co. and Mubadala. Some funds are also expected to support MGX, a joint venture focused on artificial intelligence investments.
Fitch added that contingent liabilities stemming from government-related entities debt, estimated at 48.3 percent of GDP in 2023, remain manageable given their asset bases, profitability, and the state’s fiscal strength.
Borrowing by government-related entities is anticipated to rise gradually as Abu Dhabi accelerates investment in non-oil sectors.
The agency also highlighted strong non-oil growth, which reached 6.2 percent in 2024. Overall GDP growth stood at 3.8 percent last year, tempered by lower oil output in line with OPEC+ quotas.
Fitch forecasts headline growth to rise to 6.3 percent in 2025 and 4 percent in 2026, driven by easing oil production constraints and increasing population levels.
The ratings agency warned that elevated geopolitical risks, particularly regional tensions involving Iran, Israel, and the US, pose a downside risk.
“A regional conflagration would pose a risk to Abu Dhabi’s hydrocarbon infrastructure and to Dubai as a trade, tourism and financial hub. Gulf maritime trade is a vital interest of the UAE,” the report said, though it added that the emirate’s large reserves provide protection against short-term disruptions.
Fitch’s sovereign rating model assigned Abu Dhabi a score equivalent to “AA+.” However, the agency applied a negative qualitative adjustment of one notch due to the emirate’s high dependence on oil revenues and geopolitical vulnerability.
The UAE’s country ceiling was affirmed at “AA+,” two notches above the sovereign rating, supported by strong constraints against capital controls, a dollarized financial system, and ample external buffers.
The agency stated that a downgrade could be triggered by a significant erosion of fiscal and external positions or a geopolitical shock that undermines macroeconomic stability. Conversely, an upgrade would require structural improvements such as reduced oil dependence and enhanced governance metrics.
Major Gulf markets jump after Israel-Iran ceasefire
Ƶ’s benchmark index rose 2.1%
Dubai’s main share index jumped 3.1%
Updated 24 June 2025
Reuters
LONDON: Major stock markets in the Gulf advanced in early trade on Tuesday with risk appetite improving after US President Donald Trump said Iran and Israel had agreed to a ceasefire.
Trump announced a complete ceasefire, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the region.
Ƶ’s benchmark index rose 2.1 percent, led by a 1.9 percent rise in Al Rajhi Bank and a 2.1 percent increase in the country’s biggest lender Saudi National Bank.
Elsewhere, recently-listed Flynas surged more than 7 percent to 79.80 riyals.
However, oil behemoth Saudi Aramco declined 1.7 percent, while fertilizers firm SABIC Agri-Nutrients Company retreated 1.1 percent.
Oil prices hit their lowest in two weeks after Israel agreed to Trump’s proposal, alleviating worries of supply disruptions in the Middle East, a major oil-producing region.
Brent crude futures were down $3.82, or 5.3 percent, at $67.66 a barrel at 0645 GMT.
Dubai’s main share index jumped 3.1 percent — its biggest intraday rise since mid-December if the gains hold — buoyed by a 4.7 percent rise in blue-chip developer Emaar Properties.
Among other gainers, budget airliner Air Arabia soared 7.2 percent — its biggest single-day rise in over three years if the gains persist.
Israel has agreed to Trump’s proposal for a ceasefire with Iran after it achieved its goal of removing Tehran’s nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu said in a statement posted by his office on Tuesday.
In Abu Dhabi, the index gained 2.2 percent, led by a 8.3 percent leap in Aldar Properties.
The benchmark index in Qatar climbed more than 2 percent, with Qatar Islamic Bank rising 2.2 percent.
Qatar reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday, following a missile attack by Iran on an American air base in Qatar on Monday that caused no injuries.
Oil Updates — crude tumbles after Israel agrees to Trump’s proposal on ceasefire
Trump announces ‘complete and total’ ceasefire between Israel and Iran
Israel agrees to Trump’s proposal for a ceasefire
Updated 24 June 2025
Reuters Arab News
SINGAPORE: Oil prices hit their lowest in two weeks on Tuesday after Israel agreed to US President Donald Trump’s proposal for a ceasefire with Iran, alleviating worries of supply disruptions in the Middle East — a major oil-producing region.
Brent crude futures were down $2.42, or 3.39 percent, at $69.06 a barrel at 12:20 p.m. Saudi time. US West Texas Intermediate crude fell $2.32, or 3.39 percent, to $66.19 per barrel.
Israel has agreed to Trump’s proposal for a ceasefire with Iran after it achieved its goal of removing Tehran’s nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu said in a statement posted by his office on Tuesday.
Trump had announced on Monday that Israel and Iran have fully agreed to a ceasefire, adding that Iran will begin the ceasefire immediately, followed by Israel after 12 hours. If both sides maintain peace, the war will officially end after 24 hours, concluding a 12-day conflict.
“If the ceasefire is followed as announced, investors might expect the return to normalcy in oil,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“Moving forward, the extent to which Israel and Iran adhere to the recently announced ceasefire conditions will play a significant role in determining oil prices,” Sachdeva said.
Trump said that a “complete and total” ceasefire will go into force with a view to ending the conflict between the two nations.
“With the ceasefire news we are now seeing a continuation of the risk premium built into crude oil price last week all but evaporate,” said Tony Sycamore, analyst at IG.
Iran is OPEC’s third-largest crude producer, and the easing of tensions would allow it to export more oil and prevent supply disruptions, a major factor in oil prices jumping in recent days.
Both the oil contracts settled over 7 percent lower in the previous session after rallying to five-month highs after the US attacked Iran’s nuclear facilities over the weekend, stoking fears of a broadening in the Israel-Iran conflict.
The direct US involvement in the war had also focused investor squarely on the Strait of Hormuz, a narrow and vital waterway between Iran and Oman in the Mideast Gulf through which between 18 million and 19 million barrels per day of crude oil and fuels flow, nearly a fifth of the world’s consumption.
Concerns were growing that any disruption to maritime activity through the strait would catapult prices, possibly into three-digit territory.
For now, however, traders were catching their breath from the recent oil price spike.
“Technically, the overnight sell-off reinforces a layer of resistance between approximately $78.40 (October 2024 and June 2025 highs) and $80.77 (the year-to-date high), and it’s clear that it will take something extremely unexpected and detrimental to supply for crude oil to break through this layer of resistance,” Sycamore added.
Ƶ unveils 2nd phase of industrial incentives to attract high-value investment
Initiative extends beyond traditional financing to include direct grants
Kingdom works to position itself as a regional and global industrial hub
Updated 23 June 2025
Nadin Hassan
RIYADH: Ƶ has launched the second phase of its standardized industrial incentives program, aimed at boosting competitiveness and strengthening the Kingdom’s trade balance, a senior official said.
Speaking at the Saudi Industry Forum in Dhahran, Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, said the initiative supports the government’s efforts to drive high-value investments in priority sectors.
This comes as Ƶ works to position itself as a regional and global industrial hub. Since its initial launch, the program has drawn more than 1,000 investors. Of the 118 applications received, 12 have reached the final qualification stage.
In his remarks, Ibn Salamah said: “It gives me great pleasure to announce the launch of the second batch of standardized incentives under this transformative program.”
He added: “Investors will be able to invest and apply for these new standardized incentives at the beginning of August.”
Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, speaking at the Saudi Industry Forum in Dhahran. X/@sif_2030
The initiative, described as one of the most important in the Kingdom’s industrial history, extends beyond traditional financing to include direct grants.
These are designed to support factories producing critical goods that are currently imported and not manufactured locally.
Eligible investors under the program may receive up to SR50 million, or 35 percent of the total investment value — whichever is higher.
The deputy minister emphasized the growing role of the private sector in shaping and implementing the National Industrial Strategy, which aims to expand domestic production and promote economic diversification.
“The partnership with the private sector has been a cornerstone in shaping the National Industrial Strategy, and it continues to grow steadily to ensure we meet the goals of our national industrial ambitions. The industrial investor remains an indispensable partner in our development efforts,” he said.
Ƶ currently oversees 61 industrial cities across the Kingdom. Of these, 37 are supervised by the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, while 18 are private and integrated industrial cities.
Another four are managed by the Royal Commission for Jubail and Yanbu, and several others fall under the Special Economic Zones Authority, including OXAGON in NEOM.
These zones span more than 2 trillion sq. meters, with over 500 million sq. meters already developed or under development. Infrastructure investments across these sites have exceeded SR31 billion, with an expected return of eight to 12 times for every riyal spent.
برعاية وتشريف سمو أمير المنطقة الشرقية
اتحاد الغرف السعودية ممثلاً باللجنة الوطنية الصناعية ينظم
والذي يهدف الى تعزيز دور القطاع الصناعي بالمملكة
— اتحاد الغرف السعودية (@CSC_SA)
“This program has already had a significant positive impact this year and is expected to continue doing so in the years to come,” Ibn Salamah noted.
The deputy minister said Ƶ is currently overseeing over 1,900 industrial projects with investments totaling SR380 billion, nearly half of which are based in the Eastern Province.
He noted that conversion industries are expected to account for between 30 and 40 percent of the National Industrial Strategy’s overall targets, underlining their central role in expanding the Kingdom’s industrial base.
He further highlighted the role of the “Wafrah” program in boosting local consumption of polypropylene, reporting over 40 percent growth and 27 percent utilization of existing capacities.
Ibn Salamah stated that they are working with the Ministry of Energy to include 20 new materials in the program by 2025, which will significantly impact downstream industries.
The National Industrial Strategy is built around four core enablers supported by over 140 initiatives.
These include maximizing the value of natural resources, securing the availability of raw materials, enhancing the Kingdom’s exports, and developing specialized industrial clusters.
It also seeks to empower small and medium-sized factories by encouraging the adoption of advanced manufacturing technologies.
In parallel, the government aims to increase the industrial sector’s contribution to the gros domestic product while reinforcing the resilience and efficiency of local supply chains.
Chemicals sector drives growth
During a panel discussion, Fahad Al-Jubairy, assistant deputy minister for sectoral strategies and regulation at the Ministry of Industry and Mineral Resources, said the chemicals sector represents one of the most vital components of the national economy and is expected to account for more than half of the total economic impact projected by the National Industrial Strategy by 2035.
“The chemicals sector is a vital and strategic component of the national economy. It is one of the twelve key sectors targeted by the National Industrial Strategy — and indeed, it is considered the most critical due to its projected economic impact,” he said.
The forum featured several key announcements aimed at accelerating industrial growth and localization. X/@sif_2030
According to Al-Jubairy, Ƶ aims to multiply the output of specialty and downstream chemicals by four to five times, while boosting the production of basic and intermediate chemicals by over 12 million tons annually over the next decade.
He also emphasized that the chemicals sector is foundational to the development of other industries such as automotive, aviation, construction, and advanced materials — all of which stand to benefit from the availability of locally produced value-added chemical products.
“The growth of the chemicals sector will position the Kingdom where it truly belongs among the world’s leading economies — particularly within the G20 — by reinforcing its global leadership across various products and industries, especially petrochemicals,” Al-Jubairy said.
He further noted that the sector’s growth will contribute significantly to job creation, increase industrial competitiveness, and open new investment opportunities for entrepreneurs, particularly in small and medium-sized enterprises.
New industrial projects
The forum featured several key announcements aimed at accelerating industrial growth and localization.
Two industrial complexes were inaugurated in the Eastern Province. The first, in Dammam Third Industrial City, will enhance service availability and integration with neighboring industrial zones and export outlets. The second, in Jubail Second Industrial City, targets high-value investments in the chemicals sector and strengthens links with upstream and intermediate feedstock sources.
Both fall under the Specialized Industrial Complexes Initiative, which supports economic diversification, local content, and job creation by attracting advanced manufacturing investments.
A strategic partnership was also announced to establish Ƶ’s first tinplate manufacturing plant, in collaboration between the National Industrial Co. and China’s Shanghai Donghexin Group.
Additionally, MODON signed major industrial agreements, including a SR40 million contract with Abdullah Al-Shuwayer Sons Heavy Metal Industries, a SR35 million lease with Al-Sharq Polystyrene Factory, and a SR20 billion investment deal with Al Marje Al Hayawi Co. Ltd.
