Saudi Aramco’s trading arm plans to open an office in London soon as it expands its international business, sources familiar with the move said.

Aramco Trading Co (ATC) also opened an office in the bunkering hub of Fujairah, United Arab Emirates in December to trade oil products and hired two traders from Trafigura and PetroChina to run operations there, the sources said.

“Last June, a trading office was inaugurated in Singapore, and last December (another) in Fujairah and very soon in London, just like any trading house,” one of the sources said.

Another source said: “They have moved a few trading desks to Singapore and Fujairah. London is surely next.”

A third source said the London office might be inaugurated as early as next week during International Petroleum (IP) Week, an industry event held annually in the British capital.

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Saudi Aramco, the parent company, already has an office in Marylebone, London. The ATC London operations may be located in the same place as the parent company and are likely to start with a handful of crude oil traders, one of the sources said.

ATC did not immediately respond to a request to comment.

The trading sector faces increased rivalry between national oil companies (NOCs), international oil firms and Swiss merchants. NOCs have cheap feedstock and strength in refining, allowing them to compete aggressively with oil majors and especially traders that lack their own production.

ATC aims to boost its trading volumes in crude and refined products to 6 million barrels per day (bpd) by 2020 and the company’s headquarters will remain in Dhahran, Saudi Arabia, ATC’s chief executive told Reuters last year.

The CEO, Ibrahim al-Buainain, also said the plan to open an ATC regional office in Europe - either London or Geneva - was set for the first quarter of 2019.

Middle East oil producers are venturing into buying and selling oil to boost their incomes as a sharp drop in crude prices since mid-2014 has forced the industry to become more efficient and commercially focused.

State-owned Abu Dhabi National Oil Co is establishing a new trading operation along with Italy’s Eni and Austria’s OMV.

ATC was set up in 2012 initially to market refined products, base oils and bulk petrochemicals, but has since expanded into crude trading mainly to feed international Aramco joint ventures such as the U.S. Motiva refinery and S-Oil in South Korea.

Aramco, the world’s top oil producer and exporter, aims to become the largest integrated energy firm, with plans to expand refining operations and petrochemical output. It pumps around 10 million bpd of crude, of which it exports about 7 million bpd.

The company plans to raise its refining capacity - inside Saudi Arabia and abroad - to 8-10 million bpd, from around 5.4 million bpd now. Aramco is expanding its refining business at home as well as in new markets particularly in Asia. (Writing by Rania El Gamal; Editing by Dale Hudson)

Source: reuters

Saudi Arabia unveils seven principles to raise investment

Saudi Arabia has unveiled seven investment principles, issued by royal decree and based on international best practice, that will support the development of a competitive investment environment in the Kingdom.
“The rapid pace of economic transformation in the coming years is opening exciting investment opportunities, both in Saudi — a G20 economy opening up to international businesses — and in the broader Middle East,” said Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA).
The investment principles are:

Ensure equality between Saudi and foreign investors; ensure protection of investments.

enable sustainability of investment; provide access to equal investment incentives

implement social and environmental standards and ensure investor compliance with Saudi health, safety and environmental regulations

 facilitate access procedures for foreign workers and their families; and ensure a solid transfer of knowledge

technology and enhancement of local human capital.

Source: Arab News

4 Ecommerce Trends to Watch Carefully for in 2019

As the online retail space grows ever more competitive, entrepreneurs will need to adapt.

Ecommerce enjoyed a record-breaking year in 2018, with global sales revenues estimated to have reached $2.8 trillion, according to Statista. This year, this figure is expected to rise to $3.5 trillion. To put this in perspective, if the ecommerce industry were a country, it would slot into the fifth spot, ahead of the United Kingdom, whose GDP as of April 2018 was $2.61 trillion.

With such eye-opening figures, it’s little wonder there’s so much excitement surrounding the future of online retail. Amid all the hype about ecommerce, it’s easy to forget that this segment accounts for just 11.9 percent of the total retail sales around the world. Therefore, the market holds an extraordinary capacity for growth over the next decade. 

Below, I identify the four trends that ecommerce entrepreneurs should pay the closest attention to: 

1. Smaller businesses using big data 

Yes, we’ve heard quite a lot about big data over the past two years, but it’s not going away. As more people come to grips with this new resource, this effort will increasingly separate the successful from the less successful ecommerce businesses. And this division will not be limited to behemoth ecommerce businesses either, because mid-range competitors too are now using their data reserves to mine unique insights. 

Big data, in fact, helps entrepreneurs analyze shopping behavior, trends and what products it is that are selling. It's been proven to help ecommerce businesses make improvements in customer service, security and mobile commerce. It also powers the AI which is revolutionizing the industry (more on this below).  

In short, big data is likely to power future developments in your ecommerce business. If you are planning on staying in the industry long term, you would be wise to study the latest developments.  

2. Excellent customer service 

Shoppers are growing used to the convenience of ecommerce, and entrepreneurs need to ensure that the customer experience meets those people's growing expectations. The purchasing journey needs to be smooth, reassuring and secure. Stores also need to be quick to respond to queries and resolve issues. 

One American Express study has found that more than half of Americans surveyed had canceled a purchase due to bad service. But take heart; you needn't be the entrepreneur on the other end of that type of transaction. Instead, there are a number of ways you can deliver outstanding customer service: 

Ensure a smooth checkout: Too many ecommerce stores still have unnecessarily drawn-out checkouts. Consider whether you need any more than two stages, i.e., you can fill in the details on one page; then confirm those details and items on the next.  

Be responsive: Whether it’s on social media or your website or via email or phone, your business should respond to any queries in a timely and professional manner. An increasing number of stores offer live chat on their sites, and the response of customers has been overwhelmingly positive. 

Deliver a personalized experience: Use your customer’s browsing and purchase history to deliver a personalized shopping experience. This is something Amazon has turned into an art form in recent years, directing its customers to the products that are most relevant to them and that they are more likely to buy.  

Listen to your customers: Be proactive in looking for feedback and asking your customers about their experience. By asking for feedback, you’ll shape a more holistic view of your business and how it is perceived. Don’t be afraid to address criticism, either, even if it’s in public. In this way, you'll identify your weaknesses and prove to customers that you take complaints seriously. 

Above all, understand that providing excellent customer service is no longer a bonus for an ecommerce business. It’s now the norm. 

3. Enhanced AI 

Without good, well-ordered data, you will not be able to embrace the latest technologies that can drive revenue to your ecommerce store. AI is already evident in many ecommerce stores. Those automated live chatbots, advanced data analytics and inventory management tools? They are all powered by AI.  

However, there are examples of stores taking it to the next level to deliver a highly personalized experience. Outdoor wear brand, The North Face, has recently unveiled a digitalized personal shopper which can guide customers to products. There are also voice search and mobile shopping, which enable people to shop on the move. 

4. Improved personalization 

One of the factors behind Amazon’s success is its advanced product recommendations algorithm, which drives up to 35 percent of the company’s total sales. Using the buyer’s shopping habits, interests and even browsing history, the ecommerce giant is able to promote the products the buyer is most likely to purchase. 

Looking beyond Amazon, product recommendation engines have proven effective at delivering a personalized shopping experience and driving up revenue for stores. The key is to place those recommendations at optimum points in the purchasing process.

First, ensure you have recommended products visible to your shoppers on the home page or after the point that they sign in. Then, once they have added items to their basket, ensure you have suggested complementary items. You can also suggest items at checkout.  

Final thoughts

Entrepreneurs who take the proactive approach, embrace the latest advances in tech and make use of data will reap the rewards in ecommerce. As AI becomes more mainstream, it is essential that ecommerce business owners take personalization to the next level. Simply having a product recommendation plugin is no longer enough; you need to be proactive and utilize tools in the right way, with well-curated data, to maximize their potential.

Source: entrepreneur

Western tourists, a rarity in Saudi Arabia, visited this weekend under a new visa system, as one of the world’s most inaccessible countries tries to open up its society and diversify its economy away from oil.

Thousands of fans flocked to Riyadh’s historic Diriyah district for Formula E, a motor sports tournament using electric vehicles, and concerts including by David Guetta and Black Eyed Peas.

Most were Saudis still unaccustomed to such entertainment in their own country, where cinemas and public concerts were banned until changes by Crown Prince Mohammed bin Salman in the past two years.

Despite an international outcry over the murder of journalist Jamal Khashoggi and the Saudi-led war in Yemen, some Westerners also seized the opportunity to visit a country that still largely restricts foreigners to resident workers and their dependents, business visitors, and Muslim pilgrims.

An American named Jason is spending a week here with his German wife, riding quad bikes in the desert and visiting heritage sites in Ushaiger, 200 km (120 miles) northwest of the capital.

“The race sounds interesting but to be honest it was a means to see the country. We’re happy to be here,” he said. “I’ve always wanted to come for many, many years... I’m so happy to be here and that they’re letting us be here.”

Aaron, a 40-year-old software engineer, travelled from New York for two days. He and a few dozen other adventure travellers seeking to visit every country in the world checked the desert kingdom off their list this weekend.

“Saudi Arabia’s always been an exotic place... and I didn’t think I’d ever be able to come here,” he said as circus performers entertained guests in between races.

Some 1,000 foreigners from 80 countries received the new “sharek” visa, which is linked to a specific entertainment event, the authorities said.

That is a fraction of what they eventually hope to attract.

“Hopefully we will learn from this and see what we need to do for the future, but I can tell you from now that there is a lot of demand...” said Prince Abdulaziz bin Turki al-Faisal, vice chairman of the General Sports Authority.

TOURISM TARGETS

Whizzing electric racecars wound through the ruins of Diriyah, the capital of the first Saudi state built by the ruling Al Saud family three centuries ago.

The UNESCO world heritage site is undergoing a multi-million dollar renovation, celebrating a telling of national history that puts the dynasty and its clerical allies front and centre.

Plans to admit significant numbers of tourists from abroad have been discussed for years, only to be blocked by conservative opinion and bureaucracy.

Now the crown prince is seeking to develop new industries to wean the world’s top oil exporter off petro-dollars.

Tourism is high on the agenda, despite a shortage of infrastructure. Reforms aim to lift total spending - by locals and foreigners - to $46.6 billion in 2020 from $27.9 billion in 2015.

Such efforts have been overshadowed recently by the murder of Khashoggi, a Washington Post columnist and critic of the crown prince, with the U.S. Senate blaming Prince Mohammed and insisting that Saudi Arabia hold accountable anyone responsible.

Saudi officials have denied Prince Mohammed ordered the hit, but their changing accounts and ties between him and some of the suspects have complicated Riyadh’s efforts to move on.

James, another American tourist, said the visit corrected some of his preconceived notions, but he bristled at the idea that visiting a country implied endorsing its government.

“Just forget the politics and you can relate to people all over the world,” he said. “That applies to Saudi Arabia, too.”

Source: Reuters