Category: Economy

On Wednesday, the UN summit starts action for development in Africa, focusing on advancing the 2030 agenda for sustainable development and the African Union Agenda 2063.

According to General Assembly President Abdulla Shahid, the UN and the international community view the sustainable development of Africa as a “priority,” yet collective effort has frequently failed to deliver on its promises. He said, “Despite being rich in natural resources and with enormous untapped economic and social potential, Africa still faces challenges in realizing the sustainable development goals.”

He implored people to recommit to sustainable development on the continent, evaluate where the action is required, and focus on promoting advancement. He further urged them to fulfill current commitments and new ones “that reflect our ever-changing world”.

He added that for the first time in a generation, Africa has demonstrated the “collective decisive measures and leadership” needed to take its destiny into its own hands. As the first ten years of Agenda 2063’s first implementation plan (2013–2023) come to an end, now is the right time for a forward-looking dialogue.

He concluded his speech at The Africa We Want by saying, “With resolve, continued commitment, perseverance, and support from the international community and the UN system.”

The United Arab Emirates’ economy uplifted by an estimated 8.2% in the first quarter, supported by higher oil production, the central bank said on Wednesday.

The central bank said that the real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% in 2023, the central bank said. There was a strong possibility of economic growth due to the boost in oil production and a government vow to expand the size of the manufacturing sector by two times, by 2031.

Hydrocarbon GDP went up about 13% in the first quarter when the average oil production was 2.95 million barrels per day.

“Shocks to global oil supply and demand have added to oil price volatility and bolstered the level of the price. Depending (on) the developments in global economic activity, recessionary expectations, and geopolitical tensions, there may be space for increased oil supply to balance the markets and stimulate global growth,” the central bank said.

According to the Central bank, UAE’s oil GDP is expected to grow 8% this year and 5% in 2023. Non-oil GDP increased 6.1% in the first quarter and was seen going upwards 4.3% in 2022 and 3.9% in 2023.

The Democratic Republic of Congo expanded its oil and gas permits up for auction this month. It will now offer 27 oil blocks and three gas blocks, just about double as many as earlier decided, in a licensing round next week, the hydrocarbons ministry said on Monday.

Congo, a foremost miner of copper, cobalt, gold, and diamonds, has since long focussed to augment its oil sector and is believed to have fairly large reserves. The Output hasn’t been much for many years, standing at about 25,000 barrels daily because of insufficient investment.

 Kinshasa had initially planned to auction 16 oil blocks, nine of which extended over the protected areas. But with the war in Ukraine rising Western demands, Congo doesn’t want to be left behind and nearly doubled this number on Monday. The ministry released a statement on Monday saying it had auctioned 30 now to optimize opportunities for the country. The auction is scheduled to start on July 28.

Greenpeace is condemning this decision, saying it “exposes Congolese people to corruption, violence, and poverty that inevitably come with the curse of oil.” But Congolese Environment minister Eve Bazaïba spurned these accusations, commenting on Congolese public television that they had completed the requisite studies before the exploration rights were granted.

Prime Minister Narendra Modi urged industries to come up with local innovative solutions. He aims to reduce the dependency on imports and said that soldiers can achieve an edge on the battlefield only via indigenous efforts.

During the past 4-5 years, India’s defense import bill has been reduced by over 21%, and it is on its way to becoming a major weapons exporter. The PM challenged the industry and forces to be prepared for the challenges of the future.

He said this was made possible due to the energetic involvement of the private sector and startups. While addressing the naval seminar in New Delhi, PM Modi revived the process of inducting 75 indigenous technologies and said, “Innovation is critical and it has to be indigenous.” Imported goods can’t be a source of innovation. “

The means of warfare are moving beyond land, sea, and sky and into cyberspace, economics, and social domains and urge India to establish itself on the global stage. The country achieved exports worth Rs. 13,000 crore through the defense, majorly due to private industry.

According to him, the Indian Navy will play an increasingly active role in the Indian Ocean Region in the coming years, adding that the country is on its way to becoming a major exporter of weapon systems.

On Thursday, Asia’s richest man Gautam Adani bought a controlling stake in Israel’s Haifa Port for more than 4 billion shekels which is a crucial trade hub on the country’s Mediterranean coast. Along with his local partner chemical and logistical giant Gadot, the industrialist won the contract on July 14th for the privatization of the port. The bis were initially placed for 4.1 billion shekels ($1.18 billion).

According to the reports, Israel hopes Gadot and Adani’s deal will lower import prices and shorten wait times at Israeli harbors, according to the agency. The tender process has lasted two years which the finance minister Avigdor Lieberman hopes will increase competition at the ports along with lowering the cost of living. 

Adani took his Twitter account saying, “Delighted to win the tender for the privatization of the Port of Haifa in Israel with our partner Gadot. Immense strategic and historical significance for both nations. Proud to be in Haifa, where Indian led, in 1918, one of the greatest cavalry charges in military history”.

The deal gives Adani a 70 percent stake and Gadot the remaining 30 percent. The new owners will face competition from a Shanghai International Port Group (SIPG)-run private port that debuted along the harbor last year.

On Saturday, US President Joe Biden is likely to announce $1 billion in assistance for food and security in the Middle East and North Africa. Biden is expected to announce the framework for a meeting in Jeddah.

The meeting with the leaders of the GCC+3 will include the heads of Saudi Arabia, Kuwait, Oman, Qatar, and Bahrain, along with the leaders of Iraq, Jordan, and Egypt.

In addition to arranging bilateral discussions with other leaders, Biden aims to improve regional cooperation against Iran’s rockets, drones, and missiles and against its proxies, as well, such as the Houthi rebels in Yemen. He also plans to urge the Gulf leaders to boost oil production and coordinate air defense systems against Iran. The discussion will center on the coordination of air defense systems, including the US-based THAAD system that the UAE already uses.

Biden told the media that Saudi Arabia, which leads the Organization of Petroleum Exporting Countries (OPEC), was committed to balancing the markets, but this won’t happen until the next few weeks.

Meanwhile, the Gulf nations are likely to announce investments worth $3 billion over the next two years to initiate support for US cooperation in international infrastructure and investment.

On Friday, India’s exports to the United Emirates of Arab rose by 16.22% to $837.14 million from May to June this year post the signing of the CEPA. A total of $135.27 million and $185.78 million in plain gold jewelry were shipped in the months of May and June, respectively.

The Comprehensive Economic Partnership Agreement (CEPA) pact covers domestic exporters from various sectors like agriculture, gems, jewelry, and dry fruits that are getting duty-free access to the UAE market. The total for the previous year was $72.31 million following the introduction of the free trade agreement.

A rise in gold jewelry exports has been one of the immediate results of the India-UAE CEPA, as per the Gems and Jewelry Export Promotion Council (GJEPC) chairman, Colin Shah.

He said, “I urge all exporters to maximize thrift returns and make optimum use of the benefits available through this pact.”

According to a source, “India’s exports to the UAE, which were in a negative growth trajectory post the outbreak of COVID-19 to April 2022, have witnessed a rebound since May 2022, post the signing of the agreement.”

Gem and jewelry exports to the United Arab Emirates (UAE) have shone post the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries from May 1.

Plain gold jewelry exports increased 72% year-on-year in May to Rs 1,048.40 crore and 68.65% in the following month to Rs 1,451.58 crore.

80% of India’s plain gold jewelry exports and 20% of studded jewelry exports are to the UAE. The government has fixed a target for comprehensive goods export of $45.7 billion for the gem and jewelry sector for 2022-23, a surge of $40 billion from the last fiscal.

Under the CEPA, the UAE will exempt import duty from 90% of Indian products. In the next five years, trade between both countries is expected to reach $100 billion. As the UAE is the leading connection to West Asia and Europe, the agreement will be beneficial to the business community in both countries.

Other than the UAE, there was an immense demand for gems and jewelry in key markets such as the US, Hong Kong, Belgium, and Israel. “Plain gold jewelry exports have been the immediate beneficiary of the India-UAE CEPA. I urge all exporters to maximize their returns and make optimum use of the benefits available through this pact,” stated the chairperson of Gem & Jewellery Export Promotion Council (GJEPC), Mr. Colin Shah.

On Thursday, the I2U2 formally kicked off at the summit where. Two key takeaways were announced during the meeting, namely a 300 MW hybrid renewable power project in Gujarat and a $2 billion investment by the UAE to develop an integrated food park in India.

As part of the I2U2 Group, a hybrid renewable energy project in Gujarat will utilize 300 MW of wind and solar capacity, coupled with battery energy storage.

The summit included PM Narendra Modi, Israel PM Yair Lapid, UAE President Mohammed bin Zayed Al Nahyan, and Us President Joe Biden. Despite increased global uncertainties, Modi stated that particle groupings are a good model for particle cooperation and called it practical, progressive, and positive.

According to Vinay Kwatra, India’s foreign secretary, the announcement of a food park or a food corridor between India and the United Arab Emirates will have an important impact on crop yields and farmers’ incomes, in addition to enhancing food security in South Asia.

Even as Biden said in his opening remarks that Russia’s “brutal and unprovoked attack against its neighbor” had made growing food insecurity and volatile energy markets worse, the joint statement failed to mention the Ukraine crisis specifically.

On Wednesday, US Vice President Kamala Harris launched a significant push into the Pacific with funds of $600 million for a critical regional summit.

According to her, the nation will open its embassies in Tonga and Kiribati. This announcement was made during an unprecedented address to the Pacific Island Forum in Fiji. A comprehensive national strategy for the Pacific will be launched, and the US will nominate its first ever ambassador to the Pacific.

During a recent interview with US President Joe Biden, Harris acknowledged the Pacific had not received sufficient attention. She said, “We are going to change that and significantly deepen our presence in the pacific region.”

Bringing together leaders from the strategically critical Pacific, this year’s forum has been influenced by the US-China rivalry. Earlier this year, the Solomon Islands signed a controversial security pact with China. This is the first meeting of regional leaders since that agreement was signed.

Aside from providing $60 million in economic assistance to the Forum Fisheries Agency, she said the US would also relaunch the Peace Corps in the region. US officials want to collaborate on disaster relief, maritime security, and infrastructure projects that do not result in insurmountable debt.