New fleet of 76 public transport buses starts operation in Jeddah on Tuesday Environmentally friendly electric buses introduced for first time    Foreign investors are allowed to engage in real estate business outside Makkah and Madinah Commercial speculation should not be the purpose of real estate transaction    EU preparing 'further countermeasures' to protect its interest, von der Leyen says    Saudi Arabia urges stronger global action to protect children in cyberspace at UN    Musk's X is suing India, as Tesla and Starlink plan entry    Tesla sales plunge after backlash against Elon Musk    Saudi Arabia posts SR49.8 billion travel surplus in 2024 as visitor spending hits SR153.6 billion    911 emergency centers handle over 2.8 million calls in March    Israel announces expansion of military operation in Gaza to seize 'large areas' of land    US cancels visa of Nobel Peace Prize winner Oscar Arias    Danish prime minister refutes US claim on Greenland on visit to the Arctic territory    Aubameyang fires Al Qadsiah into King's Cup final with stoppage-time winner over Al Raed    Cristiano Ronaldo joins Fatal Fury: City of the Wolves    Saudi Arabia welcomes trilateral border treaty between Tajikistan, Kyrgyzstan, and Uzbekistan    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Screen time in bed linked to insomnia, study finds    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Facilitation framework — Red Sea Foundation launched to drive growth in regional trade
Published in The Saudi Gazette on 23 - 01 - 2016

The development of a trade facilitation framework for the Red Sea region is essential for the sustainable development of the largest emerging market in the world, according to Fahd Al Rasheed, managing director and Group CEO of King Abdullah Economic City.
Speaking at a special event at the World Economic Forum in Davos, Al Rasheed announced the formation of a non-profit policy think tank, the Red Sea Foundation, to raise awareness of the region's potential and advocate the necessary policy initiatives to drive development.
The Foundation, to be based in Geneva, will comprise a global advisory board of policy makers, business leaders and relevant subject matter experts. It will also include an operational staff that will research, formulate and promote policy recommendations.
"The Red Sea is a critical global shipping route that has played a pivotal role in global trade for millennia, but today little of the wealth that flows though the region actually benefits the countries that border it. That is about to change," said Al Rasheed.
"This is the fastest growing developing market in the world today and the least exploited. A coordinated initiative to facilitate trade will significantly improve the flow of goods within the Red Sea region and foster growth and prosperity where it is most needed."
According to the United Nations, the population of the 20 countries that use the Red Sea as their primary shipping corridor will increase by 110 percent from 620 million today to 1.3 billion in 2050. The burgeoning middle class in the region is expected to increase by 150 percent from 137 million to 343 million in the same period.
Current projections indicate that this growth will drive a threefold increase in regional GDP from $1.8 trillion today to $6.1 trillion by 2050. Trade will increase by a factor of five from $881 billion to $4.7 trillion.
Approximately ten percent of global maritime trade passes through the Red Sea economic basin every year. The expansion to the Suez Canal, which will double its capacity, is expected to drive increased volumes.
Limited logistics infrastructure is just one factor limiting growth. For example, few of the region's ports can handle today's largest container vessels. Saudi Arabia's King Abdullah Port, which began operations in 2015, will be largest Red Sea port by 2017.
Other factors affecting growth include a wide disparity in levels of economic development and a regulatory environment that significantly increases the costs of cross border trade. World Bank data suggest that every dollar spent manufacturing a product generates $2.19 in trade costs, including logistics costs and tariffs.
Improvements to infrastructure and enhanced cooperation in cross border trade could increase efficiency, reduce costs and enhance the participation of smaller and medium sized companies in the global value chain. This would improve GDP growth by almost 30 percentage points over current projections to $6.6 trillion and trade by more than 180 percentage points to $6.3 trillion by 2050.
"The objective of the Red Sea Foundation is to actualize the enormous potential of this region by enhancing the logistics infrastructure, promoting trade among Red Sea region countries and encouraging foreign investment," said Al Rasheed. "This is an initiative in which the public and private sectors and civic society all have important roles to play. The Red Sea Foundation exists to bring them together to build a new growth engine for the global economy."
The Red Sea Region comprises 20 countries that either lie on the Red Sea or use it as their primary shipping channel: Burundi, The Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Iraq, Jordan, Kenya, Madagascar, Mozambique, Rwanda, Saudi Arabia, Somalia, Sudan, Syria, Tanzania, UAE, Uganda, and Yemen.
King Abdullah Economic City (KAEC) is the largest privately-funded new city in the world. Situated on the west coast of Saudi Arabia, KAEC covers an area of 181 million square meters of land, approximately the size of Washington DC. The city is under development by Emaar, The Economic City, a publicly listed Saudi joint-stock company established in 2006.
With a population capacity of two million people by 2035, KAEC comprises King Abdullah Port, the Coastal Communities residential districts, the Haramain Railway district and the Industrial Valley.


Clic here to read the story from its source.