Category: Economy

On Friday, India and Canada finally agreed to step up talks to consider a free trade agreement between both countries to boost trade in goods and services along with an early harvest deal.

The official statement issued by the commerce minister said, “The Interim Agreement would include high-level commitments ion goods, services, rules of origin, sanitary and phytosanitary measures, technical barriers, and dispute settlement, and may also cover any areas mutually agreed upon”.

The negotiation for India-Canada Comprehensive Economic Partnership Agreement (CEPA) will formally be launched by Commerce minister Piyush Goyal and Canadian Minister for international trade Mary Ng. An interim agreement or early Progress Trade Agreement (EPTA) is also to be considered that will expedite the mutual commercial gains. In New Delhi, the fifth Ministerial Dialogue on Trade & Investment (MDTI) was held on Friday.

As part of the agreement, the two countries have also agreed to intensify efforts regarding Canadian pest risk management in pulses and Indian market access for agricultural products such as sweet corn, baby corn, and bananas. Sectors like pharmaceuticals and critical and rare earth minerals among others were also emphasised to enhance the cooperation between the nations.

Visualization of a factory can never be complete without sweaty faces, grease-stained uniforms, metal clanking, groaning and creaking of machines and all the loading and unloading activity. In order to improve industrial output and steady economic progress, the United Arab Emirates (UAE) is seeking to change conventional ideas about manufacturing processes by using emerging technologies.

As part of the recently announced Fourth Industrial Revolution (4IR), the minister headed by H.E. Sultan Al Jaber aims to deploy innovative ideas and new technologies to expand manufacturing practices, adding greater economic value. In transforming the country’s manufacturing sector, Dubai will play a crucial role as the epicentre of all disrupting technologies in the MENA region.

The 4IR is a key pillar of the UAE’s Operation 300Bn whose goal is to increase the manufacturing sector’s contribution to the national GDP to Dh.25 billion in the next 10 years by enhancing industrial productivity by 30 per cent. Lauding the initiative taken by his counterpart, the UAE Minister of Economy, Abdulla bin Touq Al Marri, points out that the country is spawning an era of innovative ideas that impel a knowledge-based economy through future legislation.

In order to address modern-day challenges, modern approaches are needed, says H.E. Minister of Industry and Advanced Technology of the UAE Sultan Al Jaber, who says that in order to recover from pandemic-like situations, industrial capacity must be strengthened, supply chains strengthened, and risks reduced. Al Jaber suggests a simple solution: harnessing new technologies and improving cross-border cooperation.

The G7 club of the most industrialized nations urged the producers of energy to increase deliveries to blunt the impact of the Russian invasion of Ukraine on prices on Thursday.

Due to Russian President Putin’s decision to announce the withdrawal of tens of thousands of troops from Ukraine on February 24, wholesale gas and crude oil prices have risen to record levels in Europe this week.

The G7 energy ministers expressed grave concern about the burden the spike in energy prices would place on households and businesses “especially in Europe,” while noting they would be “felt most acutely in developing countries.”

Earlier this week, the United States and Britain, both G7 members, announced they were cutting off Russian energy imports due to the invasion, causing another surge in prices.

OPEC should be expected to play a key role in delivering oil to international markets, the G7 energy ministers said in a joint statement. “We urge oil and gas producers to act responsibly and to increase their deliveries to international markets,” the ministers said. They further added, “it is necessary to consider effective measures in order to stop the increase in the gas price”

On Monday, Saudi Arabia attracted $21.6 billion (81 billion riyals) of investment in the industrial sector in 2021. According to the Saudi industry minister, the investment was for both the private sector and the joint sector with government entities.

As part of the Vision 2030 initiative spearheaded by de facto ruler Crown Prince Mohammed bin Salman, Saudi Arabia is investing hundreds of billions of dollars and has set lofty goals for diversifying its economy and reducing reliance on oil.

The prince is aiming to develop a homegrown industry, however, there are snags and delays as the nation has struggled with a lack of skilled labor, bureaucratic hitches, and challenges related to costs and technology transfer.

Saudi Arabia’s Mining and Industry Minister Bandar Al-Khorayef said, “This industrial sector, in general, is really growing. I mean we have seen 2021. We achieved more than 81 billion riyals of new investments coming during the year”. He further spoke about the sidelines of the kingdom’s inaugural arms fair, the World Defense show, as the nation aims to become a sophisticated manufacturer and exporter from a weapons importer.

According to the minister said that many of the aerospace and defense manufacturing partnerships are still being discussed while some got canceled after review.

According to the Labor Department, employers in the United States added 678,000 jobs in February, an increase that underlines the health of the American economy. Since the pandemic began two years ago, the unemployment rate dropped to 3.8% from 4% for this month.

US President Joe Biden said in his Friday statement that his plan to “build America from the bottom up and the middle out is working”. He said, “Since I took office, the economy has created 7.4 million jobs. That’s 7.4 million jobs providing families with dignity and a little more breathing room. We are building a better America”.

However, the economy is still short with 2.1 million jobs than it did before the pandemic hit the world, though the gap is closing fast.

Since 1982, inflation has reached its highest level squeezing America’s households and businesses with the costs of food, rent, and gasoline increasing sharply. The Federal Reserve is set to raise the interest rate by the end of the month- the first of many rates increases expected this year.

The consumer is said to be facing higher interest rates for home and auto loans, as well as for credit cards.

On Tuesday, The World Bank predicted that Tanzania’s economy is expected to expand between 4.5% to 5.5% this year. Its country’s director announced comparing its previous year’s percentage of 4.3% in 2021.

According to a joint IMF-World Bank examination of the country’s debt sustainability, Tanzania’s risk of external debt distress had climbed from low to moderate which was conducted in September 2021.

The growth is said to be due to the lifting of the coronavirus-related restriction in many countires which is helping in boosting tourism and trade. Tanzania changed its approach under President Samia Suluhu Hassan, who replaced the late President John Magufuli, after initially downplaying the severity of the COVID-19 pandemic during the late president’s tenure.

World Bank Country Director for Tanzania, Mara Warwick said at the launch of a report on the country’s economy, “The vaccination program is crucial for underpinning a stable recovery of international travel and tourism, which together account for more than one-quarter of the country’s total exports”.

He noted, however, that the possibility of increased coronavirus variants, reduced capital flows, persistent inflationary pressures, as well as supply bottlenecks raise concerns about the projected growth.

Temasek Holdings, Singapore’s state-owned investment company, announced its support for a new forestry fund as the city-state looks to increase its carbon tax.

Singapore plans to ratchet up the tax it charges on greenhouse gas pollution to S$25 a ton by 2024 from S$5 at the time it was first implemented.

According to the David Brand, Sydney-based New Forests chief executive, Temasek is among investors including Sumitomo Mitsui Trust Bank. They are investing US$120 million in the New Forest Tropical Asia Forest Fund 2. He further anticipates 14 to 18 percent annualized return over its 10-year life.

He said in an interview that the funds will hunt higher value hardwood timber assets like teak which can be used for furniture and flooring, wood and latex production for rubber trees, and eucalyptus for composite building material or veneer.

New Forests, founded in 2005, is a nature-based real assets manager with nearly S$7.6 billion in assets including conservation areas that restore ecosystems and timber plantations.

Amid rising temperatures and calls from shareholders to address their involvement in funding climate change, investors throughout the world are focusing more on environmental considerations.

On Feb 27, Saudi oil giant Aramco found new gas fields in four regions within the nation.

According to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, Samna and Umm Khansar are “non-conventional” or shale fields.

The gas field was found in the central area of the country in the desert Empty Quater which is near the northern border and in the eastern region.

Shadun, located in the Central Region, was discovered after Shadun-1 well produced 27 million standard cubic feet of gas per day, with 3,300 barrels of condensate. Gas was discovered in the Shehab natural gas field in the Empty Quarter after 31 million standard cubic feet of gas per day flowed from the Shehab-1 well. In the same area, the field of Al-Shorfa was found.

In the eastern region, the unconventional natural gas Samna field was found where gas flowed from the Samn2-2 well of 5.8 million standard cubic feet per day along with 24 barrels of condensate.

To increase the gas production and boost the share of natural gas in its energy mix, Saudi Arabia replaced crude and fuel oil to meet the growing electricity consumption. It also aims to increase the crude available for export.

India and France have signed a roadmap to enhance the nation’s bilateral exchanges on the blue economy. Through the deal, the parties share a common vision of ocean governance and collaborate on building resilient coastal and waterways infrastructure.

The deal was signed during the three-day visit of External Affairs Minister S Jaishankar to France. The trip began on Sunday which included the bilateral talks with his counterpart Jean-Yves Le Drian.

Mr. Jaishankar said in a statement, “Indian and Frane intend to make the blue economy a driver of the progress of their respective societies while respecting the environment and coastal and marine biodiversity. Both countries aim to contribute to scientific knowledge and ocean conservation and ensure that the ocean remains a global common, a space of freedom and trade, based on the rule of law”.

The roadmap scope is said to encompass the naval industry, maritime trade, fisheries, ocean observation, marine technology, and scientific research, marine biodiversity, marine eco-tourism, marine ecosystem-based management, and integrated coastal management, cooperation between competent administration on civil maritime issues, inland waterways, and related multilateral negotiations.

In their joint statement, the two sides called for a sustainable approach that would ensure decent living conditions for the sector’s professionals, while conserving the resource in the medium and long term.

The head of the Dubai Multi Commodities Center (DMCC) which is home to the Dubai Diamond Exchange said on Monday that the United Arab Emirates became the top trading hub for the rough diamonds in 2021, overtaking Belgium.

Rough diamonds were traded for more than $22.8 billion through the Gulf state in 2021. DMCC CEO and executive chairman, Ahmed Bin Sulayem said that the polished diamonds sector continues to grow.

Ahmed Bin Sulayem’s office announced that the diamond trade in UAE has grown up to 76% since 2015. Between 2020 and 2021, the total diamond trade for UAE has grown by 83%.

The DMCC now has a Tel Aviv office at the Israeli Diamond Exchange (IDE), and the IDE has a Dubai office at the Dubai Diamond Exchange.

The diamond industry in Dubai, home to the world’s busiest airport, has grown because of its proximity to Africa, where many diamonds are mined, and India, where 90% of the world’s diamonds are polished.

Dubai has added to trade through its opening up of diplomatic ties with Israel, the Middle East’s second-largest diamond market since relations were normalized in 2020.