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UAE to accelerate space tech startups

UAE to accelerate space tech startups

Adelle Geronimo informs that despite all the hoo-hah in the Middle East, the UAE to accelerate space tech startups is no extraordinary youth employment programme. This follows the UAE launching in October 2018, its first satellite built entirely by Emirati engineers in the UAE and after sending an Emirati astronaut to the International Space Station. The UAE plans also to establish a self-sustaining habitable settlement on Mars by 2117.


space sciences

The UAE Space Agency has announced its collaboration with the Abu Dhabi-based global innovation hub, Krypto Labs, to launch the UAE NewSpace Innovation Programme, which aims to maximise the growth of space technology start-ups with NewSpace, the rising private spaceflight industry.

The programme falls under the purview of the National Space Investment Promotion Plan, which aims to heighten the role of the space industry in contributing to the economy of the UAE.

It is also in line with an MoU signed between the UAE Space Agency and Krypto Labs, which aims to increase innovation and investment in the space sector, drive a diversified UAE economy, and promote awareness through specialised initiatives that support space technology entrepreneurship.

Dr. Mohammed Nasser Al Ahbabi, Director-General of the UAE Space Agency, said, “The UAE NewSpace Innovation Programme invites students, entrepreneurs and start-ups to share their ground-breaking ideas and transform them into viable commercial products. This supports developing space technology as part of the UAE’s private spaceflight NewSpace sector, which aims to make space more accessible, affordable and commercial.”

Selected applicants will take part in a three-month incubation programme at the headquarters of Krypto Labs in Abu Dhabi, with access to the hub’s facilities. They will also have access to the innovation hub’s local and global network of investors, be mentored by global space experts, and develop their skills in business creation, marketing, and sales, among others.

Applicants will also have the opportunity to secure funds to ensure their start-ups are prepared to enter the market.

Eligible applicants must present an innovative and original idea with a clear technical approach, which generates a feasible and scalable product. The teams must have at least one Emirati team member.

Dr. Saleh Al Hashemi, Managing Director of Krypto Labs, noted, “By supporting innovators and young entrepreneurs, we aim to foster a spirit of originality and zest within start-ups to solve global challenges that keep the UAE on the frontier of the innovation map and elevate its position as a leader for innovation-focused businesses.”

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Middle East saw surge in capital inflows: IMF

Middle East saw surge in capital inflows: IMF

From the ANBA’s Newsroom, we learnt that the Middle East saw surge in capital inflows: IMF and indeed:

MENA accounted for 20% of total portfolio flows to emerging financial markets from 2016-2018.

 Oriente Médio e Norte da África são destaques na atração de capitais, diz FMIKarim Sahib/AFP

São Paulo – The Middle East and North Africa (MENA) have stood out in capital flows in the last years, according to article published this Wednesday (15) on the International Monetary Fund Blog.

Written by Jihad Azoud, director of the Middle East and Central Asia Department at the IMF, and Ling Zhu, an economist at the same department, the article reads that since the global financial crisis of 2008, emerging countries have experienced a surge in capital flows and that this flow to the MENA nations have remained high compared to other emerging markets, but their composition has changed significantly.

The change includes a surge in portfolio flows – foreign investment in the financial and capital markets – and a simultaneous decline in foreign direct investment – those non-linked to the production sector, real estate acquisition etc. Portfolio and bank inflows to the region reached USD 155 billion over 2016–2018, which accounted for nearly 20% of total portfolio flows to emerging economies during those two years. The value was about three times the volume of flows to MENA over the previous eight years.

The IMF analysts find that most of the portfolio flows increase can be attributed to a more favorable global risk sentiment that is below its historical average. “Portfolio inflows are mostly driven by global ‘push’ factors, such as financial market risk sentiment,” the article reads that about two-thirds of the increase can be attributed to that.

Other factors are the fiscal and external deficits resulting from increased spending in such countries as Egypt, Jordan, Lebanon, and Tunisia, as well as lower revenue in oil exporters such as Bahrain and Oman after 2014. “Capital inflows have helped governments finance these deficits,” the IMF blog stresses. Moreover, the recent inclusion of Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates — in global bond and equity indices has also contributed to the rise in portfolio flows to the region.

Risks

However, the article warns that with global economic risks now on the rise, the region’s countries would be particularly vulnerable if global risk sentiment shifts — especially those with significant fiscal deficits, high debt burdens, and limited buffers. The blog goes on to say that the region is twice as sensitive to changes in global risk sentiment as compared with other emerging economie, which most likely stems from the higher perceived overall risk of the region, reflecting factors such as geopolitical uncertainties, volatile oil prices, and global trade tensions.

To strengthen their resilience to volatile flows, the blog reccomends improved policy frameworks not only in attracting but also in preserving flows, while helping mitigate the risk of outflows. As examples, the text mentions that Egypt has established inflation targeting and that Morocco has made progress in allowing more flexible exchange rates. As usual, IMF urges that reducing fiscal deficits are critical.

The article also stresses the need for structural reforms to strengthen financial system and macroeconomic steps to reduce the regional economies’ vulnerabilities.

Translated by Guilherme Miranda

Moody's negative rating outlook for the 2020 GCC sovereigns

Moody's negative rating outlook for the 2020 GCC sovereigns

This Moody’s negative rating outlook for the 2020 GCC sovereigns was published after it issued a little earlier, a similar downgrade for GCC corporates. But before we start wondering how relevant and whether, in this day and age, it applies to the MENA region and particularly to the Gulf sub-region, let us see who and what is behind Moody’s. It has by the way in 2018, citing as always, the still on-going and potentially worsening geopolitical event risks that play a crucial role in defining sovereign credit quality, come up with a particular set of ratings.  Moody’s Corporation is the holding company that owns both Moody’s Investor Services, which rates fixed-income debt securities, and Moody’s Analytics, which provides software and research for economic analysis and risk management. Moody’s assigns ratings based on assessed risk and the borrower’s ability to make interest payments, and many investors closely watch its ratings.

ZAWYA GCC on January 9, 2020, posted the following articles.

The image above is used for illustrative purpose. A screen displays Moody’s ticker information as traders work on the floor of the New York Stock Exchange January 20, 2015. REUTERS/Brendan McDermid

GCC sovereigns’ 2020 outlook is negative, says Moody’s

By Gerard Aoun

Negative outlook reflects slow progress on fiscal reforms, weak growth and higher geopolitical risks.

Moody's negative rating outlook for the 2020 GCC sovereigns
Various currency notes from Saudi, UAE, Kuwait and Oman. Image for illustrative purpose.

Moody’s Investors Service said in a report that the outlook for sovereign creditworthiness in the Gulf Cooperation Council (GCC) in 2020 is negative.

The negative outlook reflects slow progress on fiscal reforms at a time of moderate oil prices, weak growth and higher geopolitical risk, the ratings agency said.

“The pace of fiscal consolidation will remain slow in the GCC in 2020 and fiscal strength will continue to erode in the absence of significant new fiscal measures and reforms,” said Alexander Perjessy, a Moody’s Vice President – Senior Analyst.

“This will be exacerbated by existing commitments to limit oil production, which will reduce government revenue,” Perjessy added.

The ratings agency expects a further gradual erosion in GCC credit metrics as oil prices remain moderate over the medium-term. It also pointed that lower oil revenue available to fund government spending will constrain growth in the non-oil sector which will, in turn, discourage governments from undertaking more fiscal tightening.

Moody’s sees the region’s geopolitical risk as higher and broader in nature than in the past, amid ongoing tensions between the United States and Iran.

gerard.aoun@refinitiv.com

Moody’s: 3 factors behind GCC sovereigns’ 2020 negative outlook

GCC’s geopolitical risk is higher in nature than in the past.

By Staff Writer, Mubasher

Moody’s Investors Service explained the factors which led to the negative outlook for sovereign creditworthiness in the Gulf area for the year 2020.

A recent report by Moody’s showed that the slowdown in the development of fiscal reforms at a time of reasonable oil prices contributed to the outlook, along with weak growth and higher geopolitical risk.

Further gradual erosion in GCC credit metrics is expected by Moody’s which relied in their outlook on the moderate oil prices over the medium-term.

Moody’s vice president – senior analyst, Alexander Perjessy, highlighted: “The pace of fiscal consolidation will remain slow in the GCC in 2020 and fiscal strength will continue to erode in the absence of significant new fiscal measures and reforms.”

Perjessy added, “This will be exacerbated by existing commitments to limit oil production, which will reduce government revenue.”

Growth in the non-oil sector will be constrained by lower oil revenue available to fund government spending; this will discourage governments from undertaking additional fiscal tightening.

Moody’s noted that “the region’s geopolitical risk is higher and broader in nature than in the past amid ongoing tensions between the US and Iran.”

Human potential in MENA is remarkable

Human potential in MENA is remarkable

KHALEEJ TIMES reported this January 9, 2020, that Human potential in MENA is remarkable: Atlantic Council President. The Atlantic Council Global Energy Forum is an international gathering of government, industry, and thought leaders taking place in the UAE capital, Abu Dhabi from January 10 through 12, 2020.


Despite regional turmoil, there are two critical areas of focus to work on simultaneously.

Despite 2020 looking to be a year of volatility, the President and CEO of the Atlantic Council expressed his optimism at the “remarkable” human potential of the MENA region.

In statements ahead of the fourth annual Global Energy Forum in Abu Dhabi, Frederick Kempe noted that despite regional turmoil, there are two critical areas of focus to work on simultaneously.

“One of them is to reduce conflict, to wind down the tensions of the region. But at the same time, you have to unlock the remarkable human potential of the Middle East and the GCC,” he said.

He told the Emirates News Agency (WAM), his predictions for 2020, noting that it would be a volatile year, particularly in the energy industry.

“Geopolitical uncertainty will play a larger role on energy prices this year,” Kempe added.

Reflecting on 2019 events, he noted, “It’s remarkable that energy prices have remained so low through everything we’ve gone through – Iranian sanctions, Libyan turmoil, Iraqi uncertainty.”

However, he added, “despite all that and partly because of the glut of oil we’ve had on the market, and the US oil and gas production, we’ve kept prices remarkably stable for a long period of time.”

“I think the big question is can that hold out in 2020,” he continued.

“You see prices rise by four percent when you get into a crisis, suddenly it seems as we’re in a de-escalatory phase if prices drop by five percent, and I think that’s what we’re going to see.”

Commenting on recent US-Iran tensions, and their impact on clean energy transitions, Kempe said, “A lot of people are focusing on the wrong lessons from the last few days. No doubt, there’s been a lot of tension.

“No doubt there was, for a period of time, increased risk of violent conflict. On the other hand, both parties stood back from that,” he added.

“No one in the region wants an escalation of the current tensions,” he stressed, adding, “Everyone that participated in de-escalating came to that. I think that’s promising.”

“I think all parties see no gain in war. The US doesn’t see any gain, Iran doesn’t see any gain; certainly, the Arab and GCC countries don’t see any gain,” the Atlantic Council President emphasised.

When asked to comment on how GCC countries, like the UAE, can play a role in the 2020 energy agenda, Kempe said, “If you look at the GDP of this region, and if you took the size of the Middle East population and put it anywhere in the world, you would have three times the GDP.”

World Bank figures indicate the GDP figures for the Middle East and North Africa reached $3.611 trillion in 2018.

“So imagine how much low-hanging fruit there is here and how much opportunity there is,” he said.

According to the International Renewable Energy Agency, IRENA, figures, the adoption of renewable energy technologies created 11 million new jobs at the end of 2018.

When asked to comment on how countries and international bodies can partner further to see effective climate action, Kempe revealed that through the Council’s Adrienne Arsht Centre for Resilience, the MidEast Centre, and the Rockefeller Foundation, a new initiative will see one billion individuals become resilient to climate change, tensions and crises.

More details on the announcement will be made as part of Abu Dhabi Sustainability Week 2020 next week.

The Atlantic Council Global Energy Forum is an international gathering of government, industry, and thought leaders to set the energy agenda for the year.

Taking place in the UAE capital from January 10-12, the 2020 iteration of the forum will focus on three key themes: the role of the oil and gas industry in the energy transition, financing the future of energy and interconnections in a new era of geopolitics.

Kuwait seeks global firms for Entertainment City

Kuwait seeks global firms for Entertainment City

On January 7, 2020, Sam Bridge on Arabian Business posted Kuwait seeks global firms for Entertainment City mega project.

Kuwait has issued a global tender to seek international experts for a major project to help diversify the economy.

(Photo for illustrative purposes only)

Kuwait has issued a global tender looking to companies to help develop a new Entertainment City in the country.

The mega-scale tender seeks to locate the right partners to undertake planning, development, execution, operation, maintenance and investment in the project which forms part of Kuwait Vision 2035.

Al-Diwan Al-Amiri said in a statement that it aims to sign up partners “at the nearest possible opportunity”.

Considered to be one of the largest projects of its kind in the region, the mega project will actively support the ongoing efforts by the government to diversify sources of income and will contribute to the revitalisation of the cultural, leisure and tourism sectors in Kuwait, the statement added.

As part of the project, a global entertainment and tourism city will be established, featuring an amusement park and a world-class integrated entertainment complex.

Project components primarily include a ride based outdoor theme park, an indoor theme park, an aqua park, a kids’ activity and entertainment centre, in addition to gaming arcade, a snow/ski park and a multiplex and open air theatre.

Other components comprise a sports centre, a museum, public parks and social entertainment areas with landscaped areas and trails. The project also comprises 4 and 5 star villas, apartments, a retail mall, commercial areas and restaurants. It also includes an observatory, an amphitheatre, indoor water channels.

The current location for Al-Diwan Al-Amiri’s Entertainment City in the Doha region in the north of Kuwait will be expanded and developed to cover 2,750 million square metres.

The deadline for the global tendering and bidding process is set for February 27.

Al-Diwan Al-Amiri’s other projects include the Jahra Medical City, Sheikh Jaber Al-Ahmad Cultural Centre, Sheikh Abdullah Al-Salem Cultural Centre, Kuwait Motor Town and Shaheed Park.

A Century Ago, the Modern Middle East Was Born

A Century Ago, the Modern Middle East Was Born

The New York Times Ted Widmer’s Opinion is that A Century Ago, the Modern Middle East Was Born. Lots could object to that statement but reading his Christmas Day article republished here with our thanks, could be as enlightening as perhaps the Messiah’s birth anniversary.


At the end of 1919, Woodrow Wilson still wanted the region to decide its future. Britain and France had other ideas.

A Century Ago, the Modern Middle East Was Born
A caricature of Woodrow Wilson in Punch magazine, May 1919.Credit…Getty Images

As 1919 came to a close, people around the world were celebrating the holidays, grateful for the return of peace on earth after the convulsions of the Great War. “Peace on earth” was a relative concept; there was still fighting in Russia. But for the most part, the soldiers were home, and their families were looking forward to a new decade, free of conflict.

In Paris, there were long lines outside of restaurants, as the French celebrated the holiday with gastronomic exuberance. In BerlinVienna and Budapest there was less Christmas cheer, thanks to food shortages and inflation, but the people flocked to cafes and did their best to revive the old holiday traditions. In Washington, there was no snow, but Woodrow Wilson issued a flurry of proclamations, including one on Christmas Eve that relinquished federal control of the railroads, a wartime measure that was no longer necessary.

But for all the Christmas cheer, there was a general restlessness as the long year 1919 drew to a close, without the clarity that so many hoped would follow the war’s end. An elaborate treaty was signed at Versailles on June 28, ending hostilities between the principal powers, but creating a host of new problems. Germans were furious when they realized the scale of the reparations imposed on them. New and dangerous political actors were quick to seize upon the public’s hunger to find scapegoats as the political mood turned dark.

Wilson’s thoughts must have been conflicted this Christmas season. As the son of a Southern Presbyterian minister, he had many reasons to rejoice at the arrival of Christmas, including the fact that he was sometimes compared to Jesus, with his “sermonettes” about the new era that was approaching. As a young man, he had written an essay on “Christ’s Army,” and it must have felt at times that he was in charge of this organization, with all of his schemes for human betterment. But as the year progressed, the comparisons to Jesus began to turn sardonic, as Wilson’s perfectionism grated on his allies.



A year earlier, Wilson strode the world like a colossus. On Christmas Eve 1918, he was in Paris, enjoying the last night of his first visit to France, where he received a tumultuous welcome as the embodiment of the people’s hopes. A year later, he was significantly diminished, by the flawed treaty, by the Senate’s refusal to approve the League of Nations, and by the stroke that had crippled him in October, as he brought his case to the American people.

He never lost his religiosity, and for that reason, the arrival of another Christmas may have felt reassuring. But the year had taken a severe toll. He said, “If I were not a Christian I think I should go mad, but my faith in God holds me to the belief that he is in some way working out his own plans through human perversities and mistakes.”

Mistakes were plentiful as the world’s leaders contemplated missed opportunities in the great reshuffling of 1919. Three enormous empires — the Russian, German and Austro-Hungarian — had folded within the last two years, sweeping away centuries of dynastic privilege, but leaving a gaping void.

Then there was the Ottoman Empire, reeling from a series of catastrophes, but not quite defunct. From their palaces in Constantinople, sultans had once exercised sway over huge stretches of the lands stretching in all directions from Asia Minor. Even further afield, they commanded the loyalties of hundreds of millions of Muslims around the world as the caliphs of Islam.

But in recent years, sultans were struggling to maintain control of their own administrators. The Ottomans had backed the losing side in the war, then horrified the world with a genocidal campaign against the Armenian people. They were also losing credibility in other ways. In the years before the war, European powers had gobbled up nearly half a million square miles of former Ottoman territory. Then, during the war, an Arab revolt stoked by the British had removed large portions of what we would now call the Middle East.



With Christmas approaching, the English and French were negotiating over the fate of what remained. Earlier in the year, they had dutifully nodded as Wilson articulated his idea of a new diplomacy that would show respect to small countries, and affirm the rights of all peoples to something called “self-determination.” There would be fewer colonies, although some “mandates” would be allowed to exist, in which Western powers would act as benevolent caretakers for peoples who were “not yet ready” for self-determination. So idealistic did the word sound that Wilson even contemplated an American mandate over Armenia, the Dardanelles and the Bosporus.

But there had been a number of shocks to his idealistic vision. One came on March 20, 1919, when Wilson learned that his French and English allies had secretly agreed to carve up the Ottoman Empire as soon as the war ended, and were continuing to scheme both with and against each other. That seemed very much like the old diplomacy. A 1916 understanding, the Sykes-Picot Agreement, promised to give each side what it wanted in the region, with little regard for anyone’s right to self-determination.

For the British, that meant Palestine and a region that they were calling “Mesopotamia,” including the Ottoman provinces of Baghdad, Mosul and Basra. For the French, it was a generous slice of the eastern Mediterranean, around the city of Beirut, and an internal corridor stretching to Damascus, Aleppo and beyond.

Neither of these zones were natural countries. The Ottomans had considered Mosul a different region from Baghdad, but the British coveted the oil that was beginning to spurt out of the earth. Eventually, this awkward assemblage of provinces would receive a new name, Iraq, when the British succeeded in placing an Arab ally on its throne. In Arabic, the word means “deeply rooted,” but the new country was anything but that. The French went along, in return for some of the oil, and an agreement from the British to let them pursue their own intrigues in Lebanon and Syria.

Wilson responded by piously expressing his belief in “the consent of the governed,” and his hope that the wishes of local peoples would be taken into consideration as the European powers prepared to carve up the Middle East. He also proposed that a commission be created for that purpose, to earnestly inquire what form of government the locals wanted.

The French and British immediately shelved his quaint idea, but Wilson stuck with it, and appointed two commissioners, Henry Churchill King, the former president of Oberlin College, and Charles R. Crane, the scion of a family that had made a fortune from plumbing parts. They worked quickly and made a tour of the region, spending 42 days in what would later be Lebanon, Israel, the West Bank, Jordan and Syria. On Aug. 28, they submitted a report that confirmed Wilson’s sense that no one in the region wanted European powers to come in and colonize them. It may have been the first time anyone asked local Arabs what they wanted.

But events were happening quickly on the ground, and the old diplomacy refused to give up the ghost. Throughout the spring and summer, the French and British continued to divide up the Middle East as if they were shopping at a spice bazaar.

In his Fourteen Points, Wilson had tried to assure the peoples of the region that they would be free to pursue “autonomous development.” But that was a confusing concept as the victors made overlapping promises to Greeks, Italians, Armenians, Lebanese Christians, Arabs, Kurds and an increasingly vocal group of Zionists, mostly from Eastern Europe. As they clamored for their pieces of the Ottoman Empire, these disparate populations remembered a great deal of history. The Crusades, Constantine and the Roman Empire, the Greek wars against Persia, the Babylonian Captivity — all of it could be summoned in an instant to justify a historic claim to an attractive parcel of land. That didn’t sound like new diplomacy at all.



Wilson might have done more to push back against the land grab, but he was having problems of his own. After he returned to the United States, he received a hard lesson in self-determination when the Senate killed his vision in November. In a sense, his defeat was shared by the peoples of the Middle East, still looking for a champion.

But in the Ottoman lands, a curious version of self-determination was beginning to take place, without permission from Wilson, the allied leaders, or even the Ottomans. As the sultan, Mehmed VI, conceded point after point to the Allies, an angry Turkish soldier began to take matters into his own hands. Mustafa Kemal Pasha had already shown a great military aptitude during the war, particularly during the Turkish victory at Gallipoli. Throughout 1919, Kemal (later to be known as Ataturk) traveled across Anatolia, organizing Turkish resistance to the dismemberment of his country. Increasingly, it became clear that he was creating a new country — Turkey — that would no longer be headed by the sultans.

In other ways, as well, the victors discovered that the lines on the map were not as easy to redraw as they had first thought. In some places, like Palestine and Israel, a state of near-constant violence has persisted among peoples who wish to exercise self-determination at the same time, in the same place. In other places, too, we see how much we still live with the decisions made at the negotiating table in 1919. Russia continues to seethe against its limits and its neighbors, and is pressing up close against the old Ottoman borderlands. Certain boundaries in the Middle East appear to be in flux again — most recently, the southern border of Turkey. Self-appointed “Caliphs” continue to appear and disappear, suggesting that a void remains unfilled since the last sultan occupied that role. In retrospect, the new maps of 1919 were something of a palimpsest.

But at least it was quiet in one place as night descended on Christmas Eve a century ago. Bethlehem was a small town in what had been the Ottoman province of Palestine, but its future was uncertain as the armies of different powers ranged closer, and the cartographers kept redrawing the maps in Paris. Still, it had endured a very long time by showing the right level of respect to the old diplomacy, even as the new diplomacy was coming in. Chapter Two of the Book of Luke records that Jesus was born there because of a census, ordered by the Roman Empire, requiring heads of families to return to their native villages. Diligent administrators, the Romans believed that “all the world should be registered.” As Woodrow Wilson learned, that was harder than it looked.

Sources: Ray Stannard Baker, “Woodrow Wilson and World Settlement”; Harry N. Howard, “Turkey, the Straits and U.S. Policy”; Margaret Macmillan, “Paris 1919: Six Months that Changed the World.”

Ted Widmer is a distinguished lecturer at the Macaulay Honors College of the City University of New York and a fellow of the Carnegie Council for Ethics in International Affairs.

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APICORP alarmed on declining MENA gas spend

APICORP alarmed on declining MENA gas spend


ENERGY VOICE through Ed Reed‘s in this 19/12/2019 OIL & GAS article titled APICORP alarmed on declining MENA gas spend takes note of longtime predicted factors of the omnipresent situation as envisioned by, as it were, one side of the Gulf’s conflicting parties.


Gas investments in the Middle East and North African (MENA) region are declining, according to a report from Saudi Arabia-based Arab Petroleum Investments Corp. (APICORP).

The report highlighted worries about the challenge of meeting domestic demand given this slowdown. Private investors are taking a wait-and-see approach, driven by low gas prices, potentially putting more strain on governments.

An employee walks in front of a gas flare at the In Salah Gas (ISG) Krechba Project, run by Sonatrach, British Petroleum (BP), and StatoilHydro, in the Sahara desert near In Salah, Algeria, on Sunday, Dec. 14, 2008.  Photographer: ADAM BERRY/Bloomberg
An employee walks in front of a gas flare at the In Salah Gas (ISG) Krechba Project, run by Sonatrach, British Petroleum (BP), and StatoilHydro, in the Sahara desert near In Salah, Algeria, on Sunday, Dec. 14, 2008. Photographer: ADAM BERRY/Bloomberg

The Gas Investment Outlook 2019-23 charts a reduction of $70 billion in gas spending from the previous report, 2018-22, but the outlook for petrochemicals has increased by 50%. Of the nine countries covered, investments are set to fall in seven. Petrochemicals are on the rise as countries focus on extracting the most amount of value from oil production.

The most notable fall in gas plans was in Kuwait, down nearly 80%, while Saudi Arabia was down 60%, with Algeria and Iran down around 50% each. Driving the $70bn reduction were Saudi and Iran. This is not necessarily a question of cutting investments, it can also be driven by major projects being completed. Saudi, for instance, commissioned its Wasit gas plant.

While the MENA region has moved towards the consumption of gas, for power generation and industry, continued access to supplies is driven by the government’s willingness and ability to pay for these supplies. This willingness will have a direct impact on meeting future supplies, APICORP said. Saudi is planning an additional 12 GW of greenfield power, while Egypt has 9 GW of projects, which “will require additional gas supplies”.

LNG supplies in the area are playing a part in meeting increased demand. Regasification terminals are on track in Kuwait and the United Arab Emirates, while Qatar is working on expanding its export capacity to 126 million tonnes per year by 2027. Around the world, for the first time, investment commitments in new LNG capacity this year passed the $50bn mark. Global demand for gas is increasing, it noted, but supply may outpace this until 2023, although a number of factors – trade wars and geopolitical tensions – are complicating such calculations.

While Qatar is working to cement its dominance of the liquefaction sector, Saudi Aramco is taking steps to become a player, having signed a deal this year for a potential interest in the Port Arthur LNG plan, in the US. Construction of Qatari trains are expected to carry a price tag of around $15bn.

Iran is leading the charge in gas and petrochemical investments, followed by Egypt, despite the countries’ share of spending to 2023 declining by $11bn and $5bn respectively from the previous APICORP report.

Saudi has made progress on its energy intensity of GDP and is increasing gas production, with the target of increasing sales gas volumes to 164 bcm per year by 2026. There are challenges to gas in the kingdom, including alternative fuel stocks, while shale production has gained some attention but carries a high cost, at $6-10 per mmBtu.

Abu Dhabi is also pursuing unconventional gas resources such as shale, in addition to offshore sour gas. The state imports gas via the Dolphin link, with LNG coming via two regas terminals. Abu Dhabi also began

Algeria must tackle the problem of low upstream spending and access to technology around maturing fields, in particular its Hassi R’mel field. Just over $8bn is expected to be invested in the country during the next five years, APICORP said. Companies working in the country’s energy sector have struggled with bureaucracy, with the report citing the recent cancellation of the $100 million debottlenecking project at the Rhourde Oulad Djemma field.

Production and exports have declined in 2019, with new fields coming onstream in the southwest providing only a “short-term fix”. Gas flaring accounts for the equivalent of 20% of Algeria’s domestic consumption, suggesting this might be one area for improvement.

The APICORP report described Egypt as “touting itself as a gas hub”, based on regional supplies, from states such as Israel, and existing infrastructure “but key elements are still amiss”. The country expects to consume 72 bcm of gas in 2020 and 92 bcm in 2021, APICORP said, citing Egypt’s plans. The North African state could run into a net deficit in 2025, on high domestic consumption and increased LNG exports.

MENA Travel & Tourism Competitiveness Index 2019

MENA Travel & Tourism Competitiveness Index 2019


It has been revealed by the local media that Chinese tourists numbers are growing by the day in the Gulf region. In effect, the number of Chinese tourists travelling to the GCC is expected to increase 54 percent from 1.4 million in 2018 to 2.2 million in 2023, according to new research. In however a wider view of the flows, here are excerpts of the WEF’s MENA Travel & Tourism Competitiveness Index 2019.


MENA Travel & Tourism Competitiveness Index 2019

Overview

The Middle East and North Africa (MENA) region significantly improved its T&T competitiveness since the last edition of the TTCI. With 12 of the 15 MENA economies covered by this year’s index increasing their score compared to 2017, the region was able to slightly outpace the global average in competitiveness growth. This is particularly important given that, in the aggregate, T&T accounts for a greater share of regional GDP than in any of the other four regions. MENA is also the only region where international visitor spending is greater than domestic visitor spending. Yet despite improved competitiveness and a strong reliance on T&T for overall economic growth, MENA continues to underperform the global TTCI score average.

MENA’s below-average competitiveness is primarily a result of low scores on indicators related to natural and cultural resources and international openness. The region’s historical and religious heritage and geographic features create the potential for significant natural and cultural tourism; yet, while some individual nations come close, no MENA country scores above the global average for natural resources and only Egypt and Iran score above for cultural resources. In fact, the entire region’s score in both of these areas has fallen in recent years. More needs to be done to expand habit protection and heritage sites. Moreover, digital demand for MENA’s natural, cultural and entertainment demand is fairly low, indicating potential gaps in marketing and traveller perceptions. One potential reason for this gap is continued safety and security concerns. Eleven MENA countries rank within the bottom 40 for terrorism incidents, with two among the worst 10 countries globally. Further, the region is plagued by geopolitical tensions, instability and conflict. Security concerns also play a role in why MENA members are some of the most restrictive when it comes to international openness, with only Qatar, Oman and Morocco making significant improvements. Consequently, travellers often face barriers when visiting the region, while the aviation and overall T&T sector is stifled by limiting bilateral air service and regional trade agreements.

More positively, stability, safety and security have started to recover throughout the region, slightly reducing travel fears and underlying one of the key reasons for the recent pickup in arrivals. Furthermore, it seems that there has been greater recognition of T&T’s importance, with broad regional improvements in T&T prioritization, including increased government funding and more effective marketing campaigns to bring back or attract new visitors. Greatly enhanced environmental sustainability also has the potential to pay dividends for natural assets (note that environmental sustainability comparison is influenced by the use of new data to measure marine sustainability). In addition, prices have become more competitive among countries within the region, amplifying MENA’s single biggest advantage relative to the global average. As one of the world’s main producers of fossil fuels, MENA includes some of the world’s lowest fuel prices, with some governments offering subsidies. Moreover, many of the region’s economies offer visitors greater purchasing power (especially Egypt, Algeria, Iran and Tunisia), which has been increased by lower exchange rates. Yet it is reductions in ticket taxes and airport charges as well as lower hotel prices that have primarily driven regional price competitiveness in recent years.

Infrastructure has also improved, with particularly impressive growth in the number of airlines and route capacity. Despite these gains, world-class infrastructure remains concentrated among the Arab states of the Persian Gulf. The Gulf countries have been able to use their natural resource wealth, central geographic location and relative security to develop world-class T&T infrastructure, defined by quality airports, ports, roads, tourist services and some of the world’s leading airlines. These efforts are in stark contrast to some other MENA nations that—due to a lack of investment and ongoing instability—have yet to develop competitive infrastructure, especially regarding air transport. Similarly, the region’s above-average score on the Enabling Environment subindex is due to the performance of the Gulf countries and Israel, which have developed economies, strong business environments, ICT readiness and some of the highest scores in safety and security. Finally, most regional economies also score near the bottom when it comes to female participation in the labour market, depriving the T&T industry of a greater labour and skills pool.

MENA Travel & Tourism Competitiveness Index 2019

Subregion Analysis

The Middle East subregion is by far the more competitive of the two subregions, outscoring North Africa on nine pillars. Thanks to the Arab states of the Persian Gulf and Israel, the subregion is wealthier and more developed than the North Africa subregion. Consequently, it is no surprise that the Middle East scores above the global and regional averages on indicators related to enabling environment and infrastructure, with particularly high ranks on ICT readiness and business environment. Nevertheless, the subregion does trail the world and North Africa on T&T prioritization and policy and natural and cultural resources. In particular, many Middle East nations score relatively low on the International Openness and Natural Resources pillars, which represent the subregion’s greatest disadvantages relative to global competition. One of the Middle East’s highest-scoring pillars is Price Competitiveness, with some economies leveraging their fossil fuel abundance to offer lower fuel prices. Since the 2017 edition of the report, the subregion has improved across all pillars of T&T policy and enabling conditions, safety and security, ICT readiness and much of infrastructure, but declined or stagnated on other pillars.

This year, eight out of the subregion’s 11 members improved their TTCI score since 2017. Oman demonstrated the greatest improvement, moving up eight places to 58th. MENA’s safest (3rd) country recorded the subregion’s fastest improvement for its human resources and labour markets (103rd to 65th), and is among the most improved when it comes to international openness (116th to 97th), environmental sustainability (109th to 57th) and overall infrastructure (60th to 52nd). Yet some of the improvement in environmental sustainability is exaggerated due to new marine sustainability metrics. In contrast, the UAE had the Middle East’s largest decline, falling from 29th to 33rd, including the biggest percentage decline in score on the Safety and Security pillar (falling from 2nd to 7th) and Ground and Port Infrastructure (19th to 31st) and the subregion’s only decline on Environmental Sustainability (40th to 41st). Nevertheless, the country remains in the lead in the Middle East and is MENA’s top TTCI scorer, leading on ICT readiness (4th), air transport (4th) and tourist service (22nd) infrastructure. The Middle East’s—and MENA’s—largest T&T economy is Saudi Arabia (69th), which scores above the subregion’s average on most pillars, but near the bottom on international openness (137th). Plagued by ongoing conflict and a lingering humanitarian crisis, Yemen (140th), ranks at the bottom of the global index.

North Africa scores lower than the Middle East, but demonstrates far greater improvement in overall competitiveness. The subregion outscores the Middle East on five pillars and bests the global average on four. North Africa is the most price competitive subregion in the world, with three out of its four members among the 12 least-expensive economies covered in the report. North Africa’s greatest advantage relative to the Middle East is its natural and cultural resources—although it still underperforms the world on both the Natural Resources and Cultural and Business Travel pillars. The subregion also bests the MENA average in prioritization of T&T and environmental sustainability, areas where it has improved since 2017. On the other hand, North Africa has underdeveloped infrastructure and T&T enabling environment, contrasting some of the high performers in the Middle East subregion. In particular, North Africa trails when it comes to tourist service infrastructure and ICT readiness. The subregion’s strong rate of improvement is due to enhanced safety and security, overall T&T policy and enabling conditions and air transport and ground infrastructure.

All four members of the North Africa subregion increased their TTCI scores over 2017. Egypt (65th) is the subregion’s top scorer and its largest T&T economy. The country is also MENA’s most improved scorer. Egypt is price competitive (3rd) and has MENA’s highest score for cultural resources (22nd). Its improvement comes from increases on 11 pillar scores. These include the world’s second-best enhancement of safety and security (130th to 112th), albeit from a low starting base. Morocco (66th) demonstrates North Africa’s slowest improvement in TTCI performance. The country is a close second to Egypt when it comes to overall competitiveness, boasting the MENA region’s top TTCI scores on natural resources (63rd) and North Africa’s best enabling environment (71st) and infrastructure (69th). However, TTCI performance improvement is tempered by declining safety and security (20th to 28th), which remains well above the subregion’s average, and a deteriorating combination of natural and cultural (41st to 54th) resources. North Africa’s lowest scoring member is Algeria (116th), which nonetheless did move up two ranks globally. The country ranks low on business environment (118th), T&T prioritization (132nd), tourist services infrastructure (136th), environmental sustainability (133rd), natural resources (126th) and international openness (139th). On the other hand, Algeria is one of the most price-competitive countries in the world (8th).

MENA Travel & Tourism Competitiveness Index 2019

Read more on the original PDF document.

An alliance of people of goodwill in the Gulf

An alliance of people of goodwill in the Gulf

Peter Welby in his December 15, 2019, write up describes An alliance of people of goodwill in the Gulf, as More than 500 religious and political leaders, academics and civil society activists from over 80 countries gathered in Abu Dhabi last week to launch a set of principles that champion the shared values of different religions and promote joint action for the global common good and against extremism.


The image above is: A group of the world’s most respected Islamic scholars and faith leaders, joined by experts from governments and representatives of civil society organizations signed a new charter to build global peace, based on tolerance and religious freedom. (WAM)


It is notable that this took place in the Gulf, and not in Europe or the US. The UAE has long prided itself on its promotion of tolerance — naming this past year the Year of Tolerance — but the event was attended by religious leaders from across the region, including Sheikh Mohammed bin Abdul Karim Al-Issa, Secretary General of the Muslim World League in Saudi Arabia.
The Charter of the New Alliance of Virtues is devoid of most of the usual platitudes that can form interfaith charters, and is based on an idea that could be embraced by all without being seen as owned by any one religion. This is because while the original Alliance of Virtues upon which this project was based is known of through the Islamic tradition, it predates Islam.
The story goes that following the period of conflict around Makkah known in Islam as the Sacrilegious War, a Yemeni trader brought some goods to the city, and sold them to a Makkah nobleman, who refused to pay what was owed. The trader climbed Mount Safar, the place for public appeals at the time, and denounced his fraudulent purchaser and all those from Makkah who allowed one of their own to act unjustly.
Other noblemen were appalled by the treatment meted out to this guest, in violation of the rules of hospitality let alone the rules of trade, and so convened an Alliance of Virtues that committed to defend the values deemed common among them, including the defense of the weak against the powerful.
We know about this because Muhammad, before his prophethood, was there, and spoke about it later. And although it took place in pre-Islamic Makkah, he said that such was the value of this alliance that if he had been asked to join after the coming of Islam he would have done so.
And despite this endorsement from the Prophet of Islam, the alliance can be viewed with equal approbation by other faiths too. The Alliance of Virtues was not formed by Christians or Jews, but by people whose goal was simply to do good work. This means that although this new Alliance of Virtues is designed with the Abrahamic faiths specifically in mind, it is open to any who share the values it espouses.

The Charter of the New Alliance of Virtues is devoid of most of the usual platitudes that can form interfaith charters, and is based on an idea that could be embraced by all without being seen as owned by any one religion.

Peter Welby

But in the idea of shared values between the faiths lies the question. The interfaith world has long been dominated by a philosophy that seeks to downplay differences and focus on commonalities. There are plenty of commonalities to choose from, particularly in the Abrahamic faiths; for example, the belief in one God who created the universe and all that’s in it, and is directly concerned with the actions of humanity. But there are also profound differences, which will not be overcome by ignoring them.
Moreover, the classical interfaith model is dominated, particularly among the Christian and Jewish participants, by religious liberals, occasionally operating well outside the orthodox parameters of their faiths. This domination leads to fears among many conservative believers of syncretism that the purpose of interfaith work is to deny that differences between religions are significant, and to push the belief that all paths to God are equally valid.
The problem is that the social hostility and mutual suspicions between religions, at both a local and the global level, are often dominated by the conservatives. Gatherings dominated by liberals will fail to make significant movement toward overcoming these hostilities — they are preaching to the converted.
Herein lies the delight of the new Charter. Not only are its values truly shared, at least in orthodox theologies of the Abrahamic faiths (values including human dignity, freedom of conscience, justice, mercy and peace), but it is backed by a number of US evangelicals, who among the Christian groups are most vocally hostile to Islam. They are also within the Christian tradition focused on the truth of the bible and the imperative to proselytize. They are not even close to syncretism between religions.
The purpose is to draw on those shared values not to edge toward some specious “ever closer union,” but for shared action. Between them, the Abrahamic faiths account for more than half of the global population; if these principles are acted upon, it can have a powerful and wide-ranging effect.
But here lies the challenge. Writing the Charter is only the beginning. Unlike many documents, it has been written, targeted at and signed by individuals rather than institutions or governments. Modeled upon the previous Alliance, it is an alliance of people of goodwill. But as with any Charter, its only value will come if it is acted upon. It must turn into practical reality. This will be the challenge for its signatories over the coming years.

Author
  • Peter Welby is a consultant on religion and global affairs, specializing in the Arab world. Previously he was the managing editor of a think tank on religious extremism, the Center on Religion and Geopolitics, and worked in public affairs in the Arabian Gulf. He is based in London, and has lived in Egypt and Yemen. Twitter: @pdcwelby
Corruption costs developing countries $1.26 trillion

Corruption costs developing countries $1.26 trillion


The World Economic Forum ( WEF) in this article by Sean Fleming finds that Corruption costs developing countries $1.26 trillion every year – yet half of EMEA think it’s acceptable.

Costs of Corruption running deep in the MENA (refer to the above chart) are not clearly indicated whereas these seem to be fairly high.


Corruption leaves many people far worse off and feeling marginalized.
Corruption leaves many people far worse off and feeling marginalized. Image: Unsplash/Vitaly Taranov
  • Corruption is a global problem.
  • It costs both money and lives.
  • International collaboration is the only way to defeat it.

Corruption takes many forms. It is often thought of as a problem that mostly affects developing countries. But while the harm it does is magnified in poorer nations, corruption does not concern itself with national boundaries – it can be unearthed anywhere.

Have you read?

At the 50th World Economic Forum Annual Meeting in Davos next month, Founder and Executive Chairman Klaus Schwab will launch the Forum’s Davos Manifesto. It will state the need to adopt a new economic model, “stakeholder capitalism”. And at its heart is a call to fight corruption. That fight has been central to the World Economic Forum’s work for many years, and in 2004 it established the Partnering Against Corruption Initiative (PACI).

Corruption costs developing countries $1.26 trillion
Corruption takes a toll all over the world

To mark International Anti-Corruption Day 2019, here are seven shocking and damaging recent examples of corruption around the world, as identified by Transparency International.

1. Across the EMEA region (that’s Europe, the Middle East, and Africa) and India almost half of all workers think bribery and corruption are acceptable if there is an economic downturn.

2. Corruption, bribery, theft and tax evasion, and other illicit financial flows cost developing countries $1.26 trillion per year. That’s roughly the combined size of the economies of Switzerland, South Africa and Belgium, and enough money to lift the 1.4 billion people who get by on less than $1.25 a day above the poverty threshold and keep them there for at least six years.

3. The Transparency International Corruption Perceptions Index scores 178 countries on their degree of corruption – 10 is the cleanest possible, and 0 indicates endemic corruption. In 2010, around three-quarters of all 178 scored lower than five.

4. As much as $132 billion is lost to corruption every year throughout the European Union’s member states, according to the EU Commissioner for Home Affairs.

What’s the World Economic Forum doing about corruption?

It hosts the Partnering Against Corruption Initiative (PACI), the largest global CEO-led anti-corruption initiative.

Realizing that corruption hampers growth and innovation, and increases social inequality, PACI aims to shape the global anti-corruption agenda.

Founded in 2004, it brings together top CEOs, governments and international organizations who develop collective action on corruption, transparency and emerging-marking risks.

PACI uses technology to boost transparency and accountability through its platform, Tech for Integrity. Show

5. Bangladesh is one of the world’s poorer countries. Around one-third of the population say they have been the victims of corruption, and an astonishing 84% of those households who had interacted with different public and private service institutions have been victims of corruption.

6. In war-torn Afghanistan, of the $8 billion donated in recent years, as much as $1 billion has been lost to corruption. Integrity Watch Afghanistan estimates bribe payments — for everything from enrolling in elementary school to getting a permit — exceed $1 billion a year.

7. In one Russian province, if you want to become a police officer you will probably have to pay around $3,000. To get a place in medical school, you will need to part with around $10,000. One consequence of this, according to the International Crisis Group, has been that some people have grown so disaffected that they have become drawn to Islamic extremism.