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UAE Unveils New Federal Ministry of Investment to Enhance Economic Strategy and Global Competitiveness

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UAE Unveils New Federal Ministry of Investment to Enhance Economic Strategy and Global Competitiveness

The United Arab Emirates (UAE) has revealed plans to establish a new federal ministry of investment aimed at developing the country’s investment strategy both domestically and globally. This initiative comes in response to increasing economic competition from neighboring nations in the Gulf region.

As Gulf states heavily rely on revenue from hydrocarbons, they are actively seeking ways to diversify their economies and income sources. Among the Gulf states, the UAE is considered one of the most advanced, having successfully developed sectors such as financial services and tourism. The country has also implemented crucial social and business reforms to attract foreign investment.

Sheikh Mohammed chairs the Cabinet meeting at Al Watan Palace in Abu Dhabi. Photo credit: Gulf Today, Staff Reporter

Sheikh Mohammed bin Rashid al-Maktoum, the UAE’s prime minister and ruler of Dubai, took to Twitter to announce the plans after a cabinet meeting. He further shared that Mohammed Hassan Al Suwaidi would assume the role of investment minister, although no additional details were provided at this time.

The objectives of the new ministry include stimulating the investment environment within the UAE and making legislative and procedural enhancements to increase competitiveness in attracting global investment. Additionally, the UAE will establish a Financial Stability Council to monitor risks and effectively handle financial crises, aligning with its goal of becoming a prominent global financial center.

Earlier this year, Sheikh Mohammed launched an ambitious 10-year economic plan called D33, which aims to double the size of the UAE’s economy and establish Dubai as one of the world’s top four financial centers within a decade.

According to the 2022 Financial Times “fDi Markets” report, Dubai attracted an estimated $12.8 billion in foreign direct investment capital in the previous year. In comparison, Saudi Arabia received approximately 30 billion riyals ($8 billion) in foreign direct investment, based on data from the Saudi investment ministry.

Furthermore, the UAE cabinet has approved an updated national energy strategy, highlighting the government’s commitment to energy security and sustainability.

These initiatives, including the establishment of the new federal ministry of investment, underscore the UAE’s determination to maintain its position as a leader in economic diversification, global investment attraction, and financial stability within the Gulf region

Kenya and European Union Sign Landmark Trade Deal to Strengthen Economic Ties

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Kenya and European Union Sign Landmark Trade Deal to Strengthen Economic Ties

In a significant development for Brussels’ quest to deepen economic engagement with Africa amidst competition from China, Kenya and the European Union have signed a trade deal. Kenyan President William Ruto presided over a ceremony in Nairobi to mark the formal conclusion of negotiations for the EU-Kenya Economic Partnership Agreement.

Once ratified and implemented, the agreement will grant Kenya duty-free and quota-free access to the EU, its largest market, which currently receives approximately one-fifth of all Kenyan exports. The deal will also lead to progressive tariff reductions over 25 years for EU imports to Kenya, except for some sensitive products.

Kenyan Trade Minister Moses Kuria expressed pride in the momentous occasion, highlighting the significance for both Kenya and the European Union. Kenya’s main exports to the EU include agricultural products like vegetables, fruits, tea, and coffee. Furthermore, more than 70% of Kenya’s cut flowers find their destination in Europe.

President Ruto emphasized that the deal would assure a predictable market for Kenyan farmers and provide new opportunities to boost trade. For Kenyan industrialists, it ensures a stable market, while EU industrialists also stand to benefit.

EU Trade Commissioner Valdis Dombrovskis highlighted the strong appetite among EU companies to expand business in Kenya, which has already received 1 billion euros ($1.1bn) in investments over the past decade. This trade deal will serve as a catalyst for further collaboration.

The agreement marks the first comprehensive trade deal between the EU and an African nation since 2016. It comes as a response to China’s Belt and Road program, with the EU announcing increased investments in Kenya through its Global Gateway initiative.

Dombrovskis sees Kenya as a beacon of dynamism and opportunity in a region often characterized by turbulence. The EU views Africa as a priority region and hopes this agreement with Kenya will pave the way for stronger trade ties across the continent.

The trade deal is the culmination of a decade-long negotiation process between the EU and the East African Community (EAC), which initially included Kenya, Rwanda, Uganda, Burundi, and Tanzania. Kenya proceeded independently in ratifying the agreement, but Dombrovskis stated that the deal remains open for other EAC members, including the Democratic Republic of the Congo and South Sudan, to join.

European Commission Gives Green Light to €21 Billion Microelectronics Project

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European Commission Gives Green Light to €21 Billion Microelectronics Project

The European Commission has officially approved the second Important Project of Common European Interest (IPCEI) for microelectronics, with a budget of €21 billion. This project will focus on energy-efficient technologies and encompass 68 individual projects, spanning a wide range of areas from sensors to 5G and automotive technology. The main objective of the IPCEI is to develop groundbreaking solutions and drive innovation in Europe’s microelectronics industry.

By fostering research, development, and production capabilities in the chip sector, the project aims to address the challenges posed by the green and digital transitions. It is projected that the IPCEI will generate approximately 8,700 highly skilled jobs, contributing to the growth and competitiveness of Europe’s microelectronics sector.

This approval comes as a follow-up to the success of the first IPCEI agreed upon in 2018. The previous IPCEI resulted in significant advancements in microelectronics, particularly witnessed in Germany and Austria, where the expansion of Infineon and Bosch fabs in Dresden, as well as sub-10nm lithography optics from Carl Zeiss, took place.

The European Commission’s decision to greenlight the IPCEI signifies a commitment to enhancing Europe’s own research, development, and production capabilities in the microelectronics industry. State aid will be provided to companies involved in the projects, including the establishment of joint ventures and the construction of new facilities.

In addition to the IPCEI, the European Union has implemented other measures to support the microelectronics sector. Notably, the European Chips Act focuses on research, development, and innovation support, bridging the gap between research and production and streamlining procedures for the construction of wafer fabs and assembly plants.

The IPCEI was jointly prepared and notified by 14 member states, including Austria, France, Germany, Italy, and Spain. These member states will contribute up to €8.1 billion in public funding, expected to leverage an additional €13.7 billion of private investments. A total of 56 companies, encompassing small and medium-sized enterprises as well as startups, are involved in the IPCEI, making it the largest of its kind among the six approved in the region thus far.

The approved IPCEI aims to drive research and development in innovative and resource-efficient technologies and components, such as chips, processors, and sensors, which can be integrated into various applications and industries. The project is organized into four interconnected workstreams: “Sense” focuses on novel sensors, “Think” on processors and memory chips, “Act” on efficient and high-performance components, and “Communicate” on rapid and secure communication technologies.

The European Commission ensures that the proposed public support for the IPCEI is appropriate and limited to the necessary amount. A claw-back mechanism has been put in place, requiring large beneficiaries to return part of the aid received if their projects exceed profitability expectations. Furthermore, the Commission emphasizes the importance of sharing the innovative results beyond the participating companies and countries, promoting conferences, publications, access to facilities, testing kits, and licensing of intellectual property rights.

The European Commission is actively collaborating with member states on four upcoming IPCEIs, focusing on health, cloud, hydrogen, and other key technologies. These initiatives aim to support innovation, cooperation, and economic growth within the European Union

OPEC+ Member Countries Agree to 40.46 Million bpd Output Target from 2024; Saudi Arabia Extends Voluntary Cut

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OPEC+ Member Countries Agree to 40.46 Million bpd Output Target from 2024; Saudi Arabia Extends Voluntary Cut

 

In a significant development, member countries of OPEC+ have come to a consensus on a new output target of 40.46 million barrels per day (bpd) beginning in 2024. The agreement, outlined in a statement issued by the group, reflects their collective commitment to maintaining stability in the oil market.

Alongside this decision, Saudi Arabia’s energy ministry has announced the extension of its voluntary production cut of 500,000 bpd until the end of December 2024. This extension, coordinated with select OPEC+ participants, follows discussions held during the recent OPEC+ meeting.

OPEC+ showcases its collective determination to effectively manage oil production

OPEC+ showcases its collective determination to effectively manage oil production

Additionally, the ministry has revealed an additional voluntary reduction of 1 million bpd for the month of July, with the possibility of further extensions. Consequently, Saudi Arabia’s production will be adjusted to 9 million bpd, resulting in a total voluntary cut of 1.5 million bpd throughout July, according to reports from the Saudi Press Agency.

The ministry has emphasized that this supplementary voluntary cut is a proactive measure aimed at supporting the precautionary efforts of OPEC+ member countries in maintaining oil market stability and equilibrium.

By establishing the new output target and extending the voluntary cut, OPEC+ showcases its collective determination to effectively manage oil production levels and address evolving market dynamics.

African Development Fund Approves $3.9M Grant to Upgrade Liberia’s Payments Infrastructure

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African Development Fund Approves $3.9M Grant to Upgrade Liberia’s Payments Infrastructure

The African Development Fund’s Board of Directors recently gave the green light to a $3.9 million grant aimed at bolstering Liberia’s payments infrastructure and systems project. The grant, provided through the Bank’s concessional lending window, was approved on March 17. The primary objective of the project is to enhance Liberia’s payments ecosystem, fostering growth, innovation, and increased efficiency. Specifically, the project will focus on upgrading the automated cheque processing and automated clearing house (ACP/ACH) systems, as well as the real-time gross settlement (RTGS) system, which serve as the backbone of payment processing in Liberia’s financial sector.

The project will also entail the modernization of the Central Bank of Liberia’s main data center and disaster recovery sites. This endeavor is expected to have a positive impact on the Central Bank, government ministries involved in payments, commercial banks, and their customers. Ultimately, all stakeholders will benefit from improved services, faster processing times, real-time transactions, and online administrative access.

The implementation of the project is scheduled to commence in June 2023.

Central Bank of Liberia

Furthermore, the project will contribute to increased inclusion and regional integration through the implementation of technological upgrades that meet the required standards. This initiative holds particular significance for Liberia as it will directly support the deployment of the proposed National Electronic Payments Switch (NEPS) system, which focuses on the retail market where financial exclusion is most pronounced. With the NEPS project already approved by the World Bank in 2022 and currently underway, the additional project is crucial for improving financial inclusion in Liberia, which currently stands at 44.2% (Findex 2021). Its aim is to extend access to underserved populations, including youth, women, smallholder farmers, Micro, Small, and Medium Enterprises (MSMEs), and rural communities.

The implementation of the project is scheduled to commence in June 2023 and will be carried out in close collaboration between the Central Bank of Liberia and banking and non-banking institutions.

Benedict Kanu, the African Development Bank country manager for Liberia, emphasized the significance of modernizing Liberia’s payments infrastructure and systems. He highlighted the positive ripple effects it will have on the formal financial sector, including increased financial stability and improved private sector development. Kanu further noted that these improvements will contribute to narrowing the financial inclusion gap by providing essential infrastructure support for the World Bank-financed NEPS project. Additionally, the project will position Liberia to participate in the region’s financial integration efforts and facilitate increased cross-border trade, both of which necessitate a robust payments infrastructure.

Ahmed Attout, acting director for the Financial Sector Development Department, underlined the Bank’s financial sector development strategy, which aims to support domestic financial systems in regional member countries and ensure compliance with regional and international financial standards. He stressed the critical role of financial sector development, infrastructure provision, and digital finance support in driving private sector growth, particularly in an increasingly digital world that demands greater inclusivity.

Liberia’s financial sector faces several challenges, including inadequate ICT infrastructure and limited coverage in remote areas. While the existing payments infrastructure, established with the assistance of the African Development Bank in 2016, has served the country well over the past six years, it requires urgent upgrades. This project is poised to maximize the potential for strengthening the financial sector, promoting financial stability, bridging the gap in financial inclusion, and facilitating regional integration

UAE and Republic of Peru Strengthen Bilateral Ties with Air Services Agreement

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UAE and Republic of Peru Strengthen Bilateral Ties with Air Services Agreement

 

The United Arab Emirates (UAE) and the Republic of Peru have solidified their partnership with the signing of an air services agreement. The agreement was formalized by Mohammed Abdullah Al Shamsi, UAE Ambassador to the Republic of Peru, on behalf of the UAE, and Gervasi Díaz, Minister of Foreign Affairs, representing Peru.

This milestone agreement marks a new chapter in the cooperation between the two nations and is set to enhance intra-trade and foster collaboration across various sectors. Al Shamsi highlighted that the non-oil bilateral trade between the UAE and Peru reached US$800 million in 2022, while UAE investments in Peru surpassed US$700 million over the past five years. Additionally, the intra-trade volume during the same period amounted to US$4.4 billion.

This milestone agreement marks a new chapter in the cooperation between the two nations.

An airplane moments from touching down on the runway at sunrise. Getty Images Image used for illustrative purpose.

Al Shamsi also emphasized the importance of previous agreements, such as the Memorandum of Understanding for political consultations in 2009 and the visa waiver agreement in 2019. With the signing of the air services agreement, both countries are looking forward to future collaborations, including agreements to protect and promote investments, avoid double taxation, and other initiatives that align with their mutual goals for development and prosperity.

The ambassador stressed that this agreement will facilitate increased trade exchange, support the economic agendas of both nations and strengthen aviation ties. It will benefit national airlines and various sectors, directly impacting the growth of air traffic between UAE and Peru’s airports, ultimately bolstering trade, economic, and tourism relations.

In response, Minister Díaz emphasized the UAE’s significance as Peru’s largest Arab investor, underlining the historic nature of this air services agreement as the first between the Middle East and South America. She highlighted the agreement’s potential for Peru to serve as a communication hub for airline networks in Latin America. Díaz deemed the signing of the agreement as a significant achievement and a pivotal moment in the robust relations between Peru and the UAE.

Díaz further noted that the agreement will pave the way for the establishment of new air routes, promoting tourism and business travel between Peru, and Arab countries, as well as Asian and Pacific nations.

Africa Finance Corporation and Morocco’s Ministry of Economy and Finance Join Forces for Infrastructure Development

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Africa Finance Corporation and Morocco’s Ministry of Economy and Finance Join Forces for Infrastructure Development

 

Africa Finance Corporation (AFC), the leading provider of infrastructure solutions in Africa, and Morocco’s Ministry of Economy and Finance have entered into a strategic partnership. This collaboration, solidified through a Memorandum of Understanding (MOU), aims to accelerate the development of key strategic sectors, including renewable energy, transport, natural resources, heavy industries, and telecommunications.

The MOU signifies an important milestone in the growing relationship between AFC and Morocco, following Morocco’s official membership in the AFC in 2021. By leveraging AFC’s expertise in project development, structuring, and financing, this partnership seeks to provide innovative solutions that will enhance Morocco’s infrastructure and industrial base. These improvements are crucial for fostering domestic market competitiveness and expanding the export capacity of Moroccan businesses.

AFC is currently engaged in high-level discussions with various government entities in Morocco.

Morocco, Africa Finance Corporation Partner to Boost Critical Financing for Local Institutions

Over the past decade, Morocco has actively pursued opportunities in sub-Saharan Africa, and its renewed membership in the African Union reflects its commitment to becoming a major contributor and leader in Africa’s economic development. The partnership with AFC represents another significant step towards realizing this vision, aiming to create a vibrant economic region in Africa characterized by increased intra-Africa trade, job creation, political stability, and economic prosperity.

H.E Nadia Fettah, Moroccan Minister of Economy and Finance, expressed the importance of this collaboration, stating, “This marks a major step in the cooperation between Morocco and the AFC and confirms the continuous commitment of the Kingdom of Morocco to Africa’s development, in line with the vision of His Majesty the King, in promoting South-South cooperation.”

AFC is currently engaged in high-level discussions with various government entities in Morocco, including the Ministry of Transportation & Logistics, the National Railway Operator, the Airport Authority, and the Ministry of Energy Transition & Sustainable Development. Among the projects being considered are the revitalization and enhancement of significant railway infrastructure to improve mobility of passengers and cargo between rural towns and the capital city, as well as collaboration under Morocco’s renewable energy strategy. These initiatives reflect Morocco’s dedication to sustainable development and the transformation of its infrastructure landscape.

US-India State Visit: A Crucial Step Towards Stronger Bilateral Relations and Economic Partnerships

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US-India State Visit: A Crucial Step Towards Stronger Bilateral Relations and Economic Partnerships

 

The State Visit of Prime Minister Narendra Modi, at the invitation of President Joe Biden, marks a significant moment in the relationship between the United States and India. Atul Keshap, President of the US-India Business Council (USIBC), recognizes the importance of this visit in shaping the future of both countries.

Keshap emphasizes the rarity and prestige of State Visits between the United States and India, with this being only the third occurrence in their diplomatic history. This visit serves as a powerful symbol of the strong bond and close friendship between the two nations.

This visit serves as a powerful symbol of the strong bond and close friendship between the two nations.

USA-INDIA Flags

Anticipating the visit, Keshap expresses optimism about the impact on various sectors, including strategic, economic, and technological collaborations. He highlights the potential for enhanced trade, increased investment, and the strengthening of bilateral relations in key industries such as energy, semiconductors, digital economy, and defense.

Keshap also underlines the importance of a robust defense industry, emphasizing that collaboration between American and Indian companies in this field will contribute to deterrence and ensure peace and security. He announces a unique initiative, the “wedding mela,” which aims to foster partnerships between defense startup enterprises from both nations.

Furthermore, Keshap emphasizes the significance of treating American companies fairly and equally, providing them with predictability and a level playing field when doing business. He acknowledges that Indian companies also value favorable conditions for investment in the United States.

Overall, the State Visit of Prime Minister Modi signifies a momentous occasion for strengthening ties, promoting trade, and fostering collaboration between the United States and India across various sectors.

Stellantis Joins Forces with Vulcan Energy Resources to Drive Geothermal Energy Initiative in Europe

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Stellantis Joins Forces with Vulcan Energy Resources to Drive Geothermal Energy Initiative in Europe

 

Stellantis, the multinational automotive company, has entered into a new agreement with Vulcan Energy Resources, an Australian lithium supplier listed on the stock exchange. The collaboration is aimed at reducing carbon emissions in Stellantis’s European operations. With the increasing global demand for electric-vehicle batteries, Stellantis has been securing key minerals through various agreements with mining companies, including Vulcan. In fact, Stellantis has become the second largest investor in Vulcan.

The binding agreement, announced recently, focuses on the initial phase of a project to develop new geothermal sources that will contribute to the energy supply of Stellantis’s manufacturing plant in Mulhouse, located in eastern France. This facility produces several Peugeot and DS models, including the fully electric Peugeot e-308. However, the financial details of the agreement were not disclosed.

Stellantis and Vulcan Energy Resources have collaborated on geothermal projects

Stellantis’s Rüsselsheim facility in Germany

This is not the first time Stellantis and Vulcan Energy Resources have collaborated on geothermal projects. Earlier this year, they joined forces to develop geothermal energy initiatives that would support electric vehicle production at Stellantis’s Rüsselsheim facility in Germany. Stellantis is actively exploring various solutions, including geothermal energy, to achieve its carbon net zero goal by 2038, according to Arnaud Deboeuf, Stellantis Chief Manufacturing Officer.

The first phase of the project will be located in Vulcan’s focus area in the Upper Rhine valley and will involve conducting a study to assess the feasibility of constructing geothermal renewable energy assets for the Mulhouse facility. Additionally, the project will explore the potential for lithium production. If everything goes according to plan, the renewable energy project could meet a significant portion of the site’s annual energy requirements starting in 2026.

Stellantis and Vulcan have agreed to share the costs of project development equally, with each party funding 50%. Furthermore, they intend to seek public funding in France to support the project. The collaboration between Stellantis and Vulcan Energy Resources highlights their commitment to sustainable energy solutions and their contribution to the transition towards a greener future.

 

Canada’s Electric Bus Adoption Gains Momentum

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Canada’s Electric Bus Adoption Gains Momentum

 

Quebec is taking the lead in Canada’s transition to electric buses, aiming to improve air quality and reduce greenhouse gas emissions. To achieve its net-zero emissions goal, the Quebec government recently announced a plan to add 1,229 electric buses to its transit network, investing over $1.8 billion. This initiative, carried out in partnership with the federal government, marks North America’s largest electric bus project. The federal government contributed $780 million towards the purchase from Canadian bus manufacturer Nova Bus.

Currently, about 10 percent of the approximately 20,000 public transit buses in service in Canada are fully electric. However, other provinces are also making progress in adopting electric buses. Metro Vancouver, for instance, operates around 2,000 buses, and a proposed consultation paper suggests that 50 percent of new bus purchases between 2026 and 2028 should be zero-emission buses. By 2029, all new bus purchases in Metro Vancouver should be emission-free. British Columbia aims to have 41 percent of transit agency fleets consist of zero-emission vehicles by 2030, with a complete transition to 100 percent zero-emission vehicles by 2040.

Quebec government recently announced a plan to add 1,229 electric buses to its transit network, investing over $1.8 billion to its transit network, investing over $1.8 billion

The first bus rolls through an STL garage Laval unveils its electric buses in 2019. Cash from Ottawa and Quebec is expected to allow 10 transit authorities to convert their fleets to electric buses. PHOTO BY ALLEN MCINNIS /Montreal Gazette

Ontario, too, is making strides in electric bus deployment. The government introduced two fully electric, zero-emission GO buses in the Greater Golden Horseshoe region, home to 10 million people. This move aligns with Ontario’s plan to support electric vehicles, reduce emissions, and expand clean transit options. The province aims to be a global leader in the electric vehicle revolution by building a robust electric vehicle supply chain and getting more electric vehicles on the road.

Transportation in Canada is a significant contributor to carbon dioxide emissions, with over 165 million metric tonnes released in 2021 alone. Road transportation accounts for the largest share of transportation emissions. To combat this, Quebec’s significant investment in electric buses aims to reduce emissions. The buses have a lifespan of at least 16 years and can travel more than 300 kilometers on a single charge. Electrifying buses has the potential to improve local air quality, reduce CO2 emissions by 1.4 million tonnes annually, and mitigate health costs associated with diesel exhaust.

To expedite the transition to electric buses, experts recommend implementing policy measures such as a staggered zero-emission vehicle sales standard. By starting with school and transit buses, automakers would be compelled to produce electric buses at a faster pace, leading to a majority of buses being electric by 2030. Additional climate policies, including a zero-emission vehicle sales mandate, would further support Canada’s commitment to reducing emissions.

The federal government has been actively supporting the electrification of public transit nationwide. Over the next five years, it plans to assist in the purchase of 5,000 zero-emission buses. With the majority of Canada’s electricity generated from zero-emission sources, electrifying the transportation sector plays a vital role in achieving climate objectives. The federal government is also investing $2.75 billion through the Zero Emission Transit Fund to aid in the electrification of public transit and school buses, including the development of charging infrastructure and facility upgrades.

By embracing electric buses, Canada can make significant progress in reducing greenhouse gas emissions, improving air quality, and advancing sustainable transportation options. The initiatives undertaken by Quebec, British Columbia, Ontario, and the federal government demonstrate a commitment to a greener and more sustainable future.

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