Saudi needs $74 oil price to balance budget – research firm

Saudi research firm, Jadwa Investment has said the kingdom will need a breakeven crude oil price of $74 per barrel to generate the funds required to meet its widening expenditure next year, Saudi Gazette has reported. “The oil price level necessary for revenues to balance our forecast level of government spending… is $74 per barrel for Saudi export crude,” Jadwa said, adding it would amount to about $70 per barrel for West Texas Intermediate (WTI) and $78 per barrel for Brent. Expenditure is expected to overshoot the budget to reaching SR733bn, the Riyadh-based investment firm said in a report.

It would appear that there is a limit to which KSA is going to wish oil prices to fall if any. Based on their investment Strategy in almost all areas they will need a constant flow of petro dollars to make it all work out.

Projects such as $3b on renewable energy and Multi Billion investments in Rail infrastructure all contribute into the massive budgets for investment. The Current KSA budget for the next 13 months is some 50,000 times greater than their fist budget produced some decades ago.

As usual the number always give some pause for thought

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International Facilities & Sourcing Ltd | IFS – Network Generated Sourcing Strategies

Of interest to foreign investors will be the recently suggested possibility that Saudi Arabia is expected to make a limited expansion of its stock market thereby allowing direct foreign ownership to investors with at least $5 billion under management. The Kingdom, has also been considering opening up its stock market for several years. It is expected that the Government will shortly be taking a step in that direction. The imposed limit on the stakeholders will also allow each to hold a maximum 5 %of a stock’s issued share capital.

middle east facilities and sourcing ltd

This an interesting piece on Saudi Arabia investment strategy

Saudi Prince Al Waleed Retains Top Spot On 2011 Arab Rich List – Money – Zawya

Saudi Prince Al Waleed Retains Top Spot On 2011 Arab Rich List

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Sunday, Dec 18, 2011

DUBAI (Zawya Dow Jones)–Saudi billionaire Prince Alwaleed bin Talal Al Saud for the eighth consecutive year topped the Arabian Business Rich List, as overall wealth of the world’s 50 wealthiest Arabs rose nearly 5% to $257 billion despite global economic gloom and a year of unprecedented popular unrest in parts of the Middle East.

Saudi citizens continue to beat the global recession and increase their wealth in the last 12 months.

Our view on this is that they are investing in order to increase the fortunes and therefore should be a heads up to those seeking business to redouble their efforts in the region.

IFS will be active in the kingdom in the next 6 months with an expected trip to meet business partners in January and February 2012

john.davy@mefas.co.uk

Og Mandino – the greatest salesman in the world

A favorite Og Mandino quote

“Beginning today, treat everyone you meet as if they were going to be dead by midnight. Extend to them all the care, kindness and understanding you can muster, and do it with no thought of any reward. Your life will never be the same again.”

Again on squidoo tonight it is amazing what you come across. I really liked this quote and Og Mandino sounds like a tremendous chap

International Facilities & Sourcing Ltd | IFS – Network Generated Sourcing Strategies

KSA charges ahead with a massive investment programme

If you think too hard about the numbers I assure you that you will throw a piston at some point..

$100 billion development to create 16 nuclear power stations

£3 billion on Solar panels

$66 billion on home construction (500,000 homes) growing to SR384 billion by 2020!

And then twe can start to think about Airports!

I checked out a couple of really useful Middle East news sites and got some very interesting statistics on Saudi Arabian investment strategy and expansion policies. You will not believe the scale of inward investment that is currently being acted on and instigated. Mind boggling quantities of money are being invested in Solar power, nuclear and other alternative energy sources other than the obvious petrochemical route.

I have written a good part of the detail on airport expansion. Areas that IFS/ MEFAS are interested in include Temporary facilities to be created during construction phase to allow use of areas that would otherwise be redundant during the build actions. IFS/ MEFAS can also assist with security infrastructure and Carbon Fibre Technology

The Stars are lining up tonight | International Facilities & Sourcing Ltd

strategic business development                                          strategic business development

John Davy & Tom Andrews

There then followed a period of three years when other items were tried and pushed forward, that once again for various reasons were unable to get going. The relationship though remained strong with a determination on both sides to do something at some time. It was not a matter of living in one another’s pockets, more a case of the odd gentle tap on the shoulder to keep in touch and aware of each other’s surrounding’s.

This is a a great development for IFS. We have are working toward agreement with manufacturers to market Geostrut to the UK, Europe and the Middle East via sister company MEFAS Ltd.

In the blog article you will find some history insight and some video that will really give you some sense of the leap on technology Geostrut really is.

Any questions be happy to hear from you on john.davy@mefas.co.uk

The Stars are lining up tonight

Tom Andrews – ENS

Jd

John Davy  – IFS

 

I first met Tom a few years ago when working with Eve Trakway (a temporary Road company) see EVE Trakway for detail.  I would like to use Tom as an example of what the IFS ethos all about. The relationship started when Tom came over to take a look at the Eve operation and see if it would convert over to working in Australia. The principle was good and there was no reason that this could not be turned into a success. There was even a potential contract in place with Australian Railways that would kick start the project straight away. A lot of work got done that in the end was to come to no end.  The downfall came as a result of internal politics within Australian rail and nothing to do with the enthusiasm of the players concerned to get the project working.

There then followed a period of three years when other items were tried and pushed forward, that once again for various reasons were unable to get going. The relationship though remained strong with a determination on both sides to do something at some time. It was not a matter of living in one another’s pockets, more a case of the odd gentle tap on the shoulder to keep in touch and aware of each other’s surrounding’s. Always in mind was to seek the opportunity that would bond the arrangement.

In 2010 Tom came across an interesting new technology that fitted with his core industry of telecoms infrastructure and installations. A new system called Geostrut was emerging from US Company ACTR. Tom made some enquiries and began a testing programme with ACTR dealing with Craig Barker. Tom and Craig worked with a view to launching the system in Australia and Asia. The Geostrut system is a carbon fibre mast construction that competes head on with current monopoles standardly made from Steel or Concrete. Just one of the advantages Geostrut has against competitive systems is the logistical saving on costs of install. A 6m section of Geostrut can be lifted by a single man, which clearly would be impossible in Concrete or Steel. It does not take too much imagination to realise the reduction in transport and plant required to put the Geostrut masts in place. Tom believes it offers up to a 90% saving against traditional methods.

Was Geostrut to be the acorn from which the Oak tree might grow?

Our conversations began to address Geostrut at the end of 2010, but the timing and circumstances we not right for IFS in the UK. A year later on the situation has changed. Life is like that you will understand! The Acorn is indeed now a sapling. More details will follow soon on this exciting new project that will bring together IFS in the UK, MEFAS in the Middle East, Entire Network Solutions Australia and most importantly ACTR the manufacturer of the GeoStrut Carbon fibre Mast System

I think this is a great example of what International Facilities and Sourcing is all about. We make connections and try to understand the full value of the people we work with. We are patient, but active at the same time. We always keep in touch and communicate. The aim is always to make the best of the opportunity as and when it arises. It may not be the first possible option, but we will stay with it until we either find it or agree with our partners to take another course. Keeping in touch…. It’s what it’s all about

John.davy@mefas.co.uk