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DUBAI — Oil prices have been recovering but are still weak, the head of Gulf giant Saudi Aramco said on Monday, warning that market volatility could persist in the near future.

"While the oil market has recovered from its most severe period, it's still weak," Aramco Chief Executive Officer Amin Nasser said at an energy conference in Dubai.

He said global supply has begun to fall, "especially US shale oil", due to the cancellation or deferring of investments in new oil and gas capacity.

"Despite volatility, the market is heading toward rebalance, and prices are likely to strengthen with time," Nasser said.

"However, market volatility could remain with us for the near future."

Oil prices rose modestly ahead of a meeting of producers from the Organisation of the Petroleum Exporting Countries cartel and Russia in Algeria this week that could agree to cap supplies.

Around 1100 GMT, the US benchmark West Texas Intermediate for delivery in November was up 54 cents at $45.02 a barrel.

Brent North Sea crude for November added 60 cents to $46.49 a barrel compared with Friday's close.

Despite the positivity, fears remain that an agreement cannot be reached in Algiers. Previous attempts to do so in April were scuppered by Iran, which had just emerged from years of Western-imposed nuclear-linked sanctions.

Oil prices have been hammered by a stubborn supply glut since late 2014 that has seen supply far outweigh demand, resulting in 13-year lows earlier this year.

The Aramco chief said the company that runs the kingdom's oil production has set 2018 as a target for the anticipated listing of some of its shares as part of a privatisation programme.

"The current listing target is 2018," he said, pointing out that shares will be listed on the Saudi stock exchange and "potentially" abroad.

Aramco's listing is at the heart of Saudi Arabia's wide-ranging Vision 2030 plan to wean the economy of the world's biggest petroleum exporter off oil.

The kingdom plans to float less than 5 per cent of Saudi Aramco on the stock market.

AMMAN — International Finance Corporation (IFC), a member of the World Bank Group, has arranged a $76 million financing package for Fotowatio Renewable Ventures (FRV) to build a new 50 megawatt solar photovoltaic (PV) power plant in northern Jordan, the latest in a series of efforts to boost renewable energy investments in the oil-importing country, according to a statement from the organisation on Sunday.

The financing package, which includes $21 million from the IFC-Canada Climate Change Programme, will support the construction of FRV’s first solar power plant in the city of Mafraq.

According to the statement, the new plant will supply power at 6.9 cents per kilowatt-hour — a price far below Jordan’s average cost of electricity and among the lowest for solar energy worldwide.

The plant, which is due to start operating in 2018, represents approximately 1 per cent of Jordan’s overall generation capacity and is expected to supply about 155 million kilowatt hours of electricity per year, sufficient to power over 40,000 average homes. It is also expected to create about 250 jobs during the construction phase and help reduce the carbon footprint by displacing over 80,000 metric tons of CO2 per year, equivalent to removing approximately 17,000 cars from the country’s roads.

“In Jordan, the demand for power is growing rapidly,” the statement quoted Mouayed Makhlouf, IFC director for the Middle East and North Africa, as saying. “Privately owned power companies, with their expertise and financial clout, have a vital role to play in bringing new generation capacity online at a lower cost which in turn will help the  government to provide Jordan’s economy with the energy it needs to grow.”

The Mafraq plant is the first PV solar plant to be financed out of the four planned under the Jordanian government’s second round of solar PV projects, said the statement. 

“This is our first plant in Jordan and the country has tremendous potential when it comes to renewable energy,” the statement quoted Tristán Higuero, COO of FRV, as saying. “By tapping into the power of the sun, we can help provide the country with affordable, clean energy and support a green growth path.”

In November 2013, IFC closed financing for the first commercial-scale renewable energy project, the 117-megawatt Tafilah wind farm. IFC followed this in 2014 with the financing of the Jordanian government’s first seven solar PV plants; the largest-ever private sector-led solar project in the MENA region, according to the statement. 

In addition to the $76 million from IFC and the government of Canada, IFC also mobilised financing for FRVs solar plant from other investors, including $12 million from the Dutch development bank FMO, $8 million from Europe Arab Bank, and $5 million from the Finnish development financier FinnFund. The IFC-Canada Climate Change Programme also contributed $2.4 million in a C-loan.

“The government of Canada’s investment in Jordan is helping them reduce greenhouse gas emissions and support their transition to a cleaner and greener future. Growing renewable energy production, like solar power, is part of an effective strategy to address climate change,” the statement quoted Catherine McKenna, Canadian Minister of Environment and Climate Change, as saying.

FRV is a global solar development company with a 4.3 GW development portfolio in the emerging solar markets including Australia, the Middle East, India, Africa and Latin America.

SEOUL — Exploding batteries and an embarrassing recall of a flagship gadget during a controversial, closely-watched leadership transition — it’s been a bad year for Samsung, and analysts warn the trouble isn’t over yet.

With ever-fiercer competition in the saturated smartphone market, South Korea’s biggest firm is desperate to avoid a full-blown disaster that could cost billions, hammer its reputation and taint its new leadership.

Just weeks after the early roll out of the Galaxy Note 7 “phablet”, the world’s largest maker of smartphones was forced to recall 2.5 million units globally following complaints its battery exploded while charging.

“Samsung appears to have rushed fast to roll out the Note 7 with the iPhone 7 in mind... and it is paying a hefty price now,” said Greg Roh, analyst at Seoul-based HMC Investment & Securities.

With images of charred phones flooding social media, the unprecedented recall was a humiliation for a firm that prides itself as an icon of innovation and quality — and the timing of the crisis could not be worse.

The Note 7 was meant to underpin growth this year as Samsung struggles to boost sales, squeezed by Apple in the high-end sector and Chinese rivals in the low-end market, as profit has stagnated.

One bright spot this year was the flagship handset Galaxy S7, which earned rave reviews and boosted operating profit to a two-year high in the second quarter. The Note 7 was crucial to sustaining that momentum.

The recall, currently underway in 10 nations, could cost the firm $3 billion in the long run, some analysts say, while Roh warned the fallout could significantly hurt profit for months.

The crisis has also shaved $15 billion off its market value since late August, when the firm’s share price hit the highest point so far this year. 

While unconnected, Samsung said last week it had sold shares in four technology companies to free up money, in a move it said was “aimed at focusing on our core business”.

‘Crucial test’ for new leader

Samsung and its sister firms have in recent years divested from non-core operations as the parent Samsung Group sought to streamline business amid a generational power transfer in the founding Lee family.

The group wants to nurture public support ahead of the controversial, closely-watched handover amid lingering questions about the leadership credentials of the Lee family’s scion and an overall lack of transparency in governance.

Lee Kun-hee, the head of Samsung Electronics as well as the parent Samsung Group, has been bedridden since suffering a heart attack in 2014 with his 48-year-old son, J.Y. Lee, presumed to take over.

The junior Lee, currently vice chairman of Samsung Electronics, was nominated two weeks ago as the firm’s new board member, cementing his grip on power.

Senior Lee is largely credited with turning the once-obscure firm into a global giant, but less is known about his son who has kept a relatively low profile while rising the ranks.

“J.Y. Lee has a lot to prove as all eyes are on him, and the recall crisis would be a crucial test for him,” said Wi Pyoung Ryang, analyst at the Economic Research Reform Institute in Seoul.

Industry experts have criticised the Lee dynasty for controlling the vast group through a complex web of cross shareholdings, although they only directly own about five percent of total stocks.

Samsung and other family-run conglomerates, or “chaebol”, have played a major role in South Korea’s stellar growth for past decades.

But the families have come under growing public criticism for controlling and running their businesses with minimum scrutiny by investors or regulators.

“It’s a tough and crucial time for Samsung, and its new leader has his work cut out,” Wi said.

Damaged goods

As the recall threatens to drag on, it is unclear how long the crisis — and the risk of more explosions — would plague the firm, said Lee Seung-woo, analyst at IBK Investment & Securities.

Since Samsung started rolling out replacements last week, half-a-million users in the US have exchanged handsets. About a half of 420,000 South Korean users reportedly have done so, but some are complaining of delayed delivery of new phones.

While the financial hit will likely be huge, a bigger worry for the firm is the effect on the Samsung name, said Linda Sui, analyst at market research firm Strategy Analytics.

“In addition to material loss by revenue and profitability, potential damage on brand image and consumer confidence is even worse and hard to fix up in the short term,” she said.

“The Korean giant is facing a tough time now,” she said, warning of “falling fortune and tough competition” until it rolls out another flagship model next year.

ANKARA — Turkish Prime Minister Binali Yildirim hit out at Moody's on Saturday, claiming it was biased after it cut Turkey's sovereign debt rating to "junk" status.

Amid months of political turmoil, the ratings agency cut Turkey to "Ba1" level, saying the country's finances had weakened while its reaction to the July 15 attempted coup set back expected reforms.

Yildirim dismissed Moody's concerns, insisting the Turkish economy was built on solid foundations and that Ankara would not neglect fiscal discipline.

He pointed out that the central bank did not feel the need to give money to the markets, referring to the fact that there was no mass panic in the markets post-putsch.

"Just two days ago this ratings agency said 'the Turkish economy had easily overcome the shock of the attempted coup'. What changed in two days?" he told reporters in Istanbul.

"Frankly we do not think these assessments are unbiased," he said, suggesting Moody's wanted to create a "perception" of the Turkish economy, but he did not elaborate further.

The ratings agency said on Friday the rule of law was affected by the government's reaction to the failed putsch, dismissing and detaining tens of thousands of people in the education sector, the military and judiciary.

But Yildirim suggested agencies' assessments did not mean that much to Ankara, though his Cabinet stressed that Turkey was still committed to structural reforms.

"The Turkish economy is not an economy that will get into line because of three or five pieces of assessment from agencies," Yildirim said.

He added that as long as Turkey had a young citizenry and major construction projects, "let them say what they want, it is not important to us".

But he admitted to declining tourism, which he hoped would improve in a year's time.

Moody's said a fall in tourism receipts, which represent 4.4 per cent of the economy, due to Russia's sanctions last year and a rise in attacks inside the country, had weakened its balance of payments.

At the same time, it noted, external debt had surged in the government, corporate and banking sector, with some $156 billion in payments due this year.

In a series of posts on Twitter, Deputy Prime Minister Mehmet Simsek in charge of economic affairs, and Economy Minister Nihat Zeybekci said the country was committed to reforms.

Former finance minister Simsek said that research and development reforms were made this year already as well as changes to the labour market, increasing individuals' savings and improving the investment climate.

AMMAN — A Korean trade delegation met on Thursday with its Jordanian counterpart, in the presence of Korea’s Ambassador to Jordan Lee Bom-yon. The delegation, comprising five manufacturers and exporters of several products, was the second to come to Jordan from Daejeon City this month to look into the possibility of increasing commercial cooperation.

The visit is intended to explore opportunities for cooperation between the Korean and Jordanian sides and ways of developing current collaboration, according to a statement by the Korea Business Centre in Amman, the Commercial Office of the embassy of the Republic of Korea.

FUJAIRAH, United Arab Emirates — At the mouth of the oil-rich Gulf region, the little-known UAE emirate of Fujairah is positioning itself as a major player in oil exports with a new dock for supertankers.

Sandwiched between the rocky Hajar mountains and the Gulf of Oman, the city of Fujairah has evolved around its port, whose oil terminal and storage facilities keep expanding. 

The facility handled 56 million tonnes of petroleum products in 2015.

Fujairah's location on the Gulf of Oman allows the seven-member United Arab Emirates to ship the bulk of its oil exports bypassing the strategic Hormuz Strait, which giant neighbour Iran threatens to close in times of tension.

Other major oil producers in the Gulf, including world top exporter Saudi Arabia, have to ship most of their exports through the Hormuz.

The UAE in 2012 inaugurated a 360-kilometre pipeline connecting Abu Dhabi's rich oil fields with Fujairah's coast. It has a capacity to pump 1.6 million barrels per day.

The OPEC member produces around 2.5 million 

But in a bid to capitalise on its location, Fujairah on Wednesday opened a new dock for supertankers, built at a cost of 650 million dirhams ($177 million).

The new terminal facility allows it to handle tankers up to 334 metres in length and weighing 330,000 tonnes, port director Mussa Murad said at the inauguration ceremony.

At 26 metres, "this dock is the deepest oil dock in the Middle East", he said.

Murad said the jetty could process 2 million tonnes of petroleum products at loading or unloading in 24 hours.

"We are determined to put the name of Fujairah... on the map of petroleum exchange on the regional and global levels," said the emirate's Industry and Economics Department head, Sheikh Saleh Bin Mohammed Al Sharqi. 

A port official said Fujairah did not spare any effort to "move mountains" to be able to handle supertankers.

As much as 22 million tonnes of rocks were quarried to reclaim land and build the new jetty, allowing supertankers to dock and load at ease.

Supertanker Kelly inaugurated the new jetty, blasting its siren as it berthed for loading. 

The facility can load or unload 2 million tonnes of oil products in 24 hours, according to Mourad.

The port already boasts a large storage capacity with hundreds of giant reservoirs spread across the facility.

"Storage capacity has jumped from 550,000 tonnes in 1994 to 10 million tonnes today," said Mourad. The number of reservoirs has shot up from 8 to 338 in the same period.

Refuelling services have also expanded from 2 million tonnes to 24 million annually.

Fujairah officials said they are counting on increased demand from India and China, and on diversification of its services, such as bunkering.

ANKARA, Turkey — Turkey's central bank cut a key interest rate for the seventh month in a row on Thursday as it tries to shore up an economy that has been shaken this year by a series of bombings and an attempted coup.

The bank said it had cut its overnight marginal funding rate to 8.25 per cent from 8.5 per cent. That is intended to help banks borrow more cheaply from day to day, which could help keep the financial system running smoothly at a time of heightened uncertainty.

The central bank said recent indicators for the first quarter pointed to a "deceleration" in economic activity and that current "financial conditions are tight".

"With the supportive measures and incentives provided recently, domestic demand is expected to recover starting from the final quarter," said the bank, which also kept its one-week rate at 7.5 per cent.

Turkey's economy has suffered this year in the face of a string of extremist attacks and uncertainty following the failed coup on July 15 that saw more than 270 people killed. Tourism, a key component of the economy as well as a substantial foreign-currency earner, has taken a hit.

Though the central bank noted that developments in tourism revenues will have "a negative impact" in the short run, it said the recent fall in the country's currency, the lira, will help improve the nation's current account. Demand from the European Union continues to support exports, it added.

Turkey needs foreign capital to help finance its sizeable current account deficit, which stood at around 4.5 per cent of the country's annual GDP in 2015.

The bank said one positive emerging from the moderation in economic growth is that underlying inflation is easing.

However, recent changes in fuel prices and other increases in costs will limit the drop in inflation. As a result, it said a "cautious monetary policy stance" was still required.

The fear for many is that Turkey is moving towards a more authoritarian model of governance — a trend that could further dent any hopes that the country has of joining the European Union.

DUBAI — After a 10-year planning process and numerous delays, the Hyundai Motor Company announced the establishment of its Genesis Motors luxury brand late last year. Widely anticipated in recent years, especially after the debut of the second generation Hyundai Genesis executive saloon with a distinct new emblem in 2014, the Genesis brand and its full-size flagship G90 luxury saloon finally launched in the Middle East earlier this month. Meanwhile, the Jordanian Genesis dealership is expected to launch in January next year.

At the recent regional launch event in Dubai, the head of Global Genesis and Hyundai senior vice president, Manfred Fitzgerald, discussed the Korean automotive giant’s move into the luxury market with The Jordan Times.

 Conceding that this is Hyundai’s “first serious attempt going into the luxury field on a global basis”, Fitzgerald stated that for “over 50 years this corporation has been very successful” and that “the Genesis brand is the next logical step for the Hyundai Motor group”. 

Taking a similar path to the luxury sector as Japanese brands back in 1989, Genesis is effectively to Hyundai what Infiniti is to Nissan or Lexus to Toyota. While reticent about naming perceived competitors, Fitzgerald says that it is “very obvious who we are benchmarking”, in what might be understood as a hint at the Audi, Mercedes-Benz and BMW German luxury car troika. Nevertheless, he underlines that “to compete on a global basis with incumbent competitors… means that in terms of product, you have to be at least on par with them”, adding that “we believe that we have all the ingredients… to be a true competitor”.

Among the latest high-flying auto executives headhunted by Hyundai, Fitzgerald comes to the Genesis brand after a 12-year stint at Lamborghini, where he served as director of brand and design. Fitzgerald says that the crux of this endeavour is “about creating emotions and that is what we will be focusing on at each and every touch point for our customers”. 

Adding that Genesis’ proposition is more about emotions than it is about technology, Fitzgerald points out that “the technology side is something that is only your entry ticket into this arena of the luxury segment”. As to how Genesis will find its feet in a tough playing field among firmly established players, Fitzgerald says that “this won’t come overnight” but that “a brand has to evolve”. He added: “We are more about showing than talking, so we want people and customers to experience our products.”

Asked whether the Genesis strategy is to convert existing luxury customers or to attract a new client base migrating to the luxury sector, Fitzgerald says that “there is no target customer in that sense”, but that “anybody who buys into our values, anybody who buys into our product and can relate to us as a brand and as a manufacturer” would be welcomed, underlining the brand’s “spirit of audacity”. However at time of publication, Genesis is playing its cards close to its chest, with no regional sales or market share projections or expectations being disclosed. Regional and Jordanian prices for the G90 have also not yet been released. 

Humble audacity

As to whether Genesis will bring a distinct Korean flavour to the luxury market, such an influence “won’t be about any kind of ostentatious expression, as the Koreans are very humble”, he said. “You will feel it in a very subtle way,” he added, and this “will be more by perception, than by speaking about it”. Meanwhile, Fitzgerald stressed the “great significance” of the Middle East region to Genesis’ plans, saying that the region “is known for being a luxury market. They value extraordinary things, and we believe that we have here… a playing field to expose what we’re all about”.

In addition to the G90 flagship, the existing Hyundai Genesis executive saloon, from which the luxury brand takes its name, is expected this year as a revised and rebranded Genesis G80. A further compact executive G70 saloon is in the pipeline for next year. And with two SUVs and a sports coupe expected by 2020, Fitzgerald states that it would be a major success if we, in three to five years time are considered as a true competitor in this luxury segment. “A further success for me would be if we could help establishing ‘made in Korea’ as a trademark for luxury,” he added.

DOHA — Qatar's budget should be back to "near balance" by 2018, as it overcomes the shock waves from a global fall in energy prices, economists at Qatar National Bank have forecast.

The QNB, in its "Qatar Economic Insight" report, predicts that rising oil prices and the introduction of a value-added tax will help Qatar recover from the deficits expected in 2016 and 2017.

"The government's budget balance is expected to register a deficit of 5.3 per cent of the GDP in 2016 and 2.2 per cent in 2017, before recovering to near balance in 2018," the report said.

"The government's revenue is expected to recover in 2017 with rising oil prices.”

"Furthermore, the introduction of a value-added tax (expected at 5 per cent rate) should boost the government's revenue in 2018 by about 1 per cent of the GDP."

This year Qatar faces its first budget deficit in 15 years — expected to total more than $12 billion — as the emirate copes with the oil price slump. 

Qatar, a major energy exporter, has 40 years' worth of oil reserves and 135 years' worth of gas at current extraction rates, the QNB said.

Despite belt-tightening in some sectors, spending on major infrastructure projects will continue as the country prepares to host the 2022 football World Cup, the bank added.

PARIS — The United States has begun unblocking deals by Western planemakers to renew Iran's ageing passenger fleet in a move likely to ease growing complaints from Tehran over the implementation of last year's historic sanctions deal.

Europe's Airbus said on Wednesday it had received US Treasury approval to begin exporting jetliners to Iran and its US rival Boeing said it looked forward to receiving similar licences "shortly".

The move signals the unfreezing of one of the most high-profile deals between Iran and foreign companies since last year's agreement between Tehran and world powers to open up trade in exchange for curbs on the country's nuclear activities.

But complex questions remain over the financing of deals between Iran and Western planemakers that could still obstruct deliveries of many of the planes, in what is seen as a test case for Western trade and investment following the nuclear deal.

Earlier this year, Airbus and its US rival Boeing each signed deals to supply over 100 jets to flag carrier IranAir to modernise and expand the country's elderly fleet, held together by smuggled or improvised parts after years of sanctions.

But nine months after the first deal was signed, Iranian officials have voiced growing concerns about what they see as slow progress in obtaining in the US licences needed for most modern aircraft because of their ample use of US parts.

An Iranian official told Reuters earlier this week that its deal for 118 Airbus jets was being trimmed by six units following the regulatory delays.

Airbus said on Wednesday it had been granted an initial licence to supply 17 A320 or A330 jets that are slated for early delivery, and that it expected a second licence covering the remaining aircraft within the next few weeks.

Aviation sources said the US Treasury was expected within "days" to begin unblocking Boeing's deal to sell or lease over 100 jets.

Iran has also ordered up to 40 Franco-Italian ATR turboprop planes that are awaiting Washington's green light. Iran has said it could start receiving a limited number of aircraft this year. Some airlines are also looking at buying secondhand planes to meet their most urgent needs.

Diplomats say new jets will allow Iranian President Hassan Rouhani to argue the sanctions deal is working, but the deals are opposed by US Republicans who say the jets could be misused and by conservatives in Iran who oppose the country's opening and say the purchases will not benefit most Iranians.