Business

ABU DHABI — The fight against global warming should not be at the expense of economic growth, the UAE oil chief who will lead this year's UN climate talks said on Monday.

Sultan Al Jaber, the United Arab Emirates' special envoy for climate change and CEO of oil giant ADNOC, said the energy transition needed to make the planet "wealthier and healthier".

"We need to hold back the global rise in temperatures to 1.5 degrees [Celsius], without slowing economic growth," he told a graduation ceremony at the Mohamed Bin Zayed University of Artificial Intelligence.

"We need to drive an inclusive energy transition that leaves no one behind, especially in the Global South. We need to make our planet wealthier and healthier at the same time."

Al Jaber's appointment as president of COP28 in November and December has been criticised by activists who said it threatens the "legitimacy" of the global forum against climate change.

The minister of industry and advanced technology is a veteran of COP meetings and heads a leading renewable energy company. His appointment was welcomed by US climate envoy John Kerry.

The last UN climate talks, held in Egypt in November, ended with a landmark deal to create a "loss and damage" fund to cover the costs that developing countries face from climate-linked natural disasters and slower impacts like sea level rise.

But observers were left disappointed that little progress had been made on reducing planet-heating emissions from fossil fuels.

The UAE, one of the world's biggest oil producers, argues that crude remains indispensable to the global economy and is needed to finance the energy transition. 

The Gulf monarchy is pushing the merits of carbon capture — removing carbon dioxide as fuel is burned, or from the air.

It is also spending billions to develop enough renewable energy to cover half of its needs by 2050, and is targeting net-zero domestic carbon emissions by that year — which does not include pollution from the oil it exports.

Earlier this month, the United Nations climate chief Simon Stiell told AFP that Al Jaber had expressed "an openness to make this a transformative COP".

The UAE'S hosting of COP is also an opportunity to ask "hard questions" about climate change and the hydrocarbons industry, he added.

KHARTOUM — As Sudan's economic crisis drags on, grocer Hassan Omar keeps busy cleaning packaged food items that have been gathering dust for months as his dwindling customer base make fewer purchases.

"People can no longer afford to buy all their needs," Omar, 43, told AFP at his grocery store in the capital Khartoum.

"Purchasing power has significantly declined over the past six months," he said, noting that his sales had plummeted from 500,000 Sudanese pounds ($877) to 200,000 pounds ($350) per day over that period. 

His plight reflects Sudan's spiralling economic crisis which has forced many households to tighten their belts as nearly one third of the 45 million population face acute hunger.

Some 65 per cent of the population live below the poverty line, according to a 2020 report by the United Nations.

The country's economic troubles stem from decades of government mismanagement, armed conflict and international sanctions against the government of president Omar Al-Bashir, who was ousted in April 2019 following mass protests against his rule triggered by biting hardship.

The crisis further deepened following a 2021 military coup led by army chief Abdel Fattah Al Burhan, which upended a transition to civilian rule and triggered cuts to crucial international aid.

"We are trying to find cheaper alternatives to the food we normally consume," said Soaad Bashir, a government employee and mother of four.

"My income is very low and expenses are too high," said the 43-year-old who makes less than 200,000 Sudanese pounds per month.

'Complete recession' 

North Khartoum vegetable seller Al Nour Adam says he has suffered heavy losses over the past nine months.

"Much of the produce spoilt because no one was buying it," said Adam, who now offers a smaller range of vegetables in an attempt to cut his losses.

"It can't go on like this or I will have to find another job."

Inflation in Sudan has eased over the past year, falling to 87 per cent in December from 318 per cent in the same month of 2021 but analysts say that is not a sign of the economy improving.

"Inflation has simply declined because market activity has for months been at a standstill," said Abdalla Al-Ramady, economics professor at Al Nilin University. 

"There is no demand, so prices of commodities are not going up. It's a complete recession."

Grocer Omar confirmed he had not raised his prices in months. 

The economic crisis has hit wide sections of Sudanese society not just the poor.

In recent weeks, hundreds of students staged protests over increases to university fees. 

"I was asked to pay 550,000 pounds [$964] and my family cannot afford to pay," said Mohamed Hussein, a first-year engineering student, noting that fees had last year stood at around 50,000 pounds ($87). 

Meanwhile, hundreds of Sudanese professors have been on an open-ended strike since January 10 to protest low salaries.

Hopes for stability 

Fees for other government services from issuing passports to road tolls have also gone up. 

"Road toll fees increased by five times at least compared to last year," said freight haulier Tigani Omar. 

"It will increase the cost of transport and will eventually reflect on all products."

Despite scepticism about the prospects for a political breakthrough, some still hope that a deal between Sudan's military rulers and civilian leaders could turn the economy around. 

In December, the two sides signed a preliminary deal aimed at restoring the transition to civilian rule interrupted by Burhan's coup. Critics have said the accord is "vague" and "opaque". 

But Abdelhalim Hafez, a private sector employee and breadwinner for his family of six, hopes the deal could see the resumption of a family support programme which was suspended after the coup.

"I lost the little help that programme provided me," said Hafez who was haggling with a fruit vendor in Khartoum. 

"It may all improve if this deal manages to bring political stability."

Bashir agrees but does not expect it to happen soon.

"It will take years for the situation to improve," she said. 

AMMAN — Arab Bank Group achieved “solid results” for the period ending December 31, 2022, with net income after tax of $544.3 million as compared to $314.5 million in 2021. 

The Group’s performance was driven by robust growth in itscorebanking business across different markets, as net profit before provisions and tax increased by 23 per cent to reach $1.35 billion, according to an Arab Bank statement.

Excluding the impact of devaluation of several currencies against the US dollar, loans and deposits grew by 5 per cent to reach $35.4 billion and $47.7 billion, respectively, despite the volatile operating environment.

In view of these results, the Board of Directors has recommended to the shareholders, the distribution of 25 per cent cash dividends for the financial year 2022.

Sabih Masri, Chairman of the Board of Directors, commented that Arab Bank was able to achieve several key strategic objectives in 2022 despite the challenges that emerged during the year. 

He also added that the results reflect the bank’s “unique footprint” as well as its diversified franchise and rooted presence in several markets. 

Masri stated that the bank remains committed to its strategic sustainable growth direction centred on serving customers’ evolving needs, and continuing to invest in innovation and digital transformation.

Randa Sadik, chief executive officer, stated that Arab Bank continued to deliver sustainable growth rates during 2022 despite the economic challenges stemming from high inflation, increased interest rates and the devaluation in exchange rates of severalcurrencies against the US dollar. 

The bank’s net operating profit grew by 23 per cent driven by the growth in revenues from its core banking business, its diversified sources of income, with focus on non-interest income, as well as controlling operating expenses in line with the bank's prudent strategy.

Sadik added that the Group’s liquidity and asset quality remains solid where loan-to-deposit ratio stood at 74.2 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent. Arab Bank Group maintains a strong capital base that is predominantly composed of common equity with a capital adequacy ratio of 16.6 per cent.

Sadik also highlighted that as part of Arab Bank’s commitment towards Sustainability and its Environmental, Social and Governance (ESG) priorities, the bank has launched its inaugural Sustainable Finance Framework, in line with international principles, guidelines and best practices. 

Arab Bank is the first bank in Jordan to adopt such a Framework and the bank has obtained a Second Party Opinion from S&P Global Ratings, which has affirmed the Framework’s alignment with the related international principles, the statement said.

With regard to the bank's digital transformation efforts, Sadik stated that the bank continues to implement its ambitious strategy on this front, noting that during the year the bank launched several digital banking services and solutions across various markets to meet the evolving needs and expectations of the different customer segments, including youth, in line with the latest trends and developments.

Arab Bank was named “Best Bank in the Middle East 2022” for the seventh consecutive year by New York-based international publication “Global Finance”. The bank also received several awards in recognition of its corporate and consumer digital banking services in Jordan and across the MENA region.

The 2022 financial statements are subject to the approval of the Central Bank of Jordan.

BAGHDAD — The sewing machines and fabric that surround Alaa Adel at her "Iraqcouture" studio in Baghdad are testament to her success in deeply patriarchal Iraq.

Adel, 33, counts herself among a limited number of female entrepreneurs in a country where most women don't work outside the home.

"We have a social tradition that prevents many women from working," Adel said at her studio in Baghdad's Karrada commercial district.

Even for those who do, "it is not always that easy", she added.

The International Organisation for Migration said in an October report that "prevailing customs and traditions... limit women's activities to their domestic and nurturing role".

Adel said such prejudices, as well as practical difficulties, posed a challenge to fulfilling her dream.

A graduate of the University of Baghdad who specialised in fashion and design, Adel wanted to create her own fashion house.

"I went to see the patrons of organisations that support art and culture. But my idea was systematically rejected because I had no experience in the conception of projects," she said.

Thanks to an Iraqi foundation, The Station, and its "Raidat" (Female Entrepreneurs) programme financed by the French embassy in Baghdad, Adel got training which, she said, gave her the confidence to start her own business.

Obstacles

Iraq's private sector is still embryonic, making more tedious and lengthy the steps to set up a company.

The country, which is trying to move past four decades of war and unrest, is also plagued by endemic corruption, widespread unemployment and a poverty rate of around 30 percent.

Almost 38 per cent of people with jobs work in Iraq's public sector — one of the highest rates in the world, according to the International Labour Organisation (ILO).

Adel eventually secured a loan from a private bank, and created her "Alaa Adel" brand last summer.

At the beginning, she had to deal with sexism from some fabric suppliers who were reluctant to do business with a woman, she said.

Then there was a lack of public childcare facilities, in a country where tradition says children should be taken care of at home — by the mother — until they go to school.

Adel got help from family members who look after her two boys, aged nine and four, while she is at work.

'Complicated' 

Iraq has 13 million employment-aged women "yet only around one million are working", said ILO country coordinator Maha Kattaa, presenting a report in July last year.

The female labour force participation rate "was particularly low" at 10.6 per cent, the ILO report said, compared with 68 per cent for men.

In contrast, neighbouring Saudi Arabia — until a few years ago one of the world's most restrictive countries for women — had a female workforce participation rate of 35.6 per cent in the second quarter of 2022.

Most of Iraq's working women are teachers or nurses. A rare few are members of the police or armed forces.

For Shumoos Ghanem, men "dominate numerous sectors whereas women are relegated to the margins".

The 34-year-old is the owner of a dietary food business and founder of the Iraqi Women in Business initiative, which provides professional guidance to women online. She is also a mother to a 14-month-old son.

Ghanem says most of those she advises are mothers who have been out of the workforce and "wonder if society will accept them" again as working women.

Over the past five or six years, Iraqi women have had increased opportunities, she said, but the space for them "to develop is very limited still".

"Some regions are more traditional than others," she added, which further restricts women's chances to have "careers or to open projects".

Surrounded by men, Ghanem said she herself experienced sexism and was worried about harassment.

"When I went to see suppliers for the first time, I really saw how complicated it was," she recalled.

Now she works from home, but she too has a dream — to have her own health-conscious restaurant where she can help bolster the ranks of female Iraqi businesswomen.

"I want to make it a place to support women who want to work in this sector," she said.

BEIRUT — Lebanese protesters on Wednesday blocked roads and burnt tires near the central bank in Beirut as the weakened local currency plummeted to a new low against the dollar.

Since 2019, Lebanon has been in the throes of an economic crisis dubbed by the World Bank as one of the worst in recent global history, pushing much of the population into poverty.

Alaa Kharchib of the Depositors' Outcry Association that had organised the demonstration warned of an impending "social explosion".

"No one trusts our corrupt officials or the central bank governor," Kharchib told AFP.

Lebanese banks have imposed draconian restrictions on withdrawals since the country's economy collapsed three years ago, essentially cutting off people from their savings and prompting public anger.

Dozens of protesters gathered Wednesday near the central bank headquarters amid heavy deployment of security forces, AFP correspondents said.

Protesters chanted slogans lambasting long-time central bank governor Riad Salameh, one of several officials widely blame for Lebanon's economic demise, and burnt images of him.

Salameh is under an international investigation in Europe on suspicions of financial misconduct including money laundering and embezzlement.

Demonstrators held up posters calling Salameh "public enemy number one" and others saying: "We won't go hungry, we'll eat you," taking a jab at the country's ruling elite, the correspondents said.

The Lebanese pound, which had already lost more than 95 per cent of its value since 2019, plunged to nearly 56,000 to the US dollar on the parallel market, dealers said.

The main official exchange rate still pegs the pound at 1,507 to the greenback — its value before the crisis.

"People are tired, hopeless and migrating," said Kareem, a 38-year-old protester who only gave his first name.

"All we want is a solution, a dollar will soon be worth 60,000 pounds yet nothing is being done," the telecoms employee told AFP. 

As the local currency nosedived, fuel prices have soared, reaching about $19 for 20 litres of petrol.

Lebanon's economic woes have been exacerbated by mounting political troubles.

The country has been effectively leaderless for months, without a president and ruled by a caretaker cabinet.

Lawmakers have failed to elect a president 11 times since Michel Aoun's mandate expired last year, and politicians have yet to agree on the makeup of a new government.

Earlier this week, the judge investigating the deadly 2020 Beirut Port blast resumed work after a 13-month hiatus, charging high-level officials.

The surprise move has sparked controversy, with Lebanon's top judge rejecting judge Tarek Bitar's return to the politically-charged case.

LONDON — British airline EasyJet hiked on Wednesday its annual profit guidance after record demand and falling quarterly losses, as customers prioritise holidays and shrug off the cost-of-living crisis.

The carrier believes it will outstrip expectations for annual pre-tax profit of £126 million ($156 million) for its financial year to the end of September, despite global economic gloom that is rooted in soaring inflation.

"Whilst we remain mindful of the uncertain macroeconomic outlook across the globe, based on current high levels of demand and strong bookings, EasyJet anticipates beating the current market profit expectations" for 2022-2023, it said in a statement.

EasyJet had already been expected to rebound into the black as the industry recovers from COVID fallout, having logged three annual losses in a row.

The carrier posted a reduced 2021-2022 loss in November, but this was far less than during the worst of the COVID pandemic.

EasyJet added Wednesday that it trimmed pre-tax losses to £133 million in its first quarter, or three months to December.

That was down sharply from £213 million last time around.

Traffic rebounded 47 per cent to 17.5 million passengers in the reporting period.

EasyJet saw a major rebound in traditional New Year holiday bookings, with three record-breaking weekends so far in January.

That means it hopes to curb first-half losses significantly this year.

"We have seen strong and sustained demand for travel over the first quarter," said chief executive Johan Lundgren.

"Many returned to make bookings during the traditional turn-of-year sale where we filled five aircraft every minute in the peak hours, which culminated in three record-breaking weekends for sales revenue this month."

Lundgren noted that customers were seeking to "prioritise spending on holidays for the year ahead".

He added: "This will set us firmly on the path to delivering a full-year profit."

Investors welcomed the company's brightening outlook, sending EasyJet shares almost 10 per cent higher on London's rising stock market.

The global aviation sector is flying high after a tumultuous period in the wake of the deadly coronavirus crisis, which erupted in early 2020 to ground flights, sparking huge financial losses and job cuts.

Britain scrapped its remaining COVID travel restrictions in March 2022, but airlines and airports have since struggled to cope with resurgent demand.

"Since the end of last year, the shares have soared in anticipation that the airline, as well as the wider aviation sector will be able to finally throw off the shackles of COVID, the soaring cost of living, and the fallout of the Russian invasion of Ukraine," said CMC Markets analyst Michael Hewson.

"Last year the sector also had to deal with the challenges of capacity constraints at major airports as well as staff shortages, which resulted in huge delays and cancellations."

BERLIN — US auto giant Ford is planning to axe 3,200 jobs in Germany, a union said on Monday, adding it was extremely concerned about the future of the company's sites in Europe's top economy.

The news came amid fears in the EU that companies could shift their operations to the United States because of the recently passed landmark Inflation Reduction Act that offers tax cuts for US-made electric cars and batteries.

A spokesman for the IG Metall union told AFP the cuts will be mainly in Cologne, where Ford has a major plant, but all sites across Germany are threatened. 

"We at IG Metall are extremely concerned about the future of the German development divisions and, as a whole, about the future of the German Ford sites," said a statement from the union after an extraordinary meeting with management.

As well as the Cologne site, Ford has a development centre in nearby Merkenich. 

The carmaker did not immediately respond to a request for comment. 

The development centre has "successfully designed models for the European market, which often brought global success for the company", said IG Metall, which represents workers in the key electrical and metal sectors. 

Ford's German workers can continue to develop successful electric models for Europe if given the chance, the union said. 

But the US company risks "taking the axe to its own future" with the planned cuts, IG Metall said, urging the carmaker to reconsider the move.

Just last year, Ford had said it would make a major investment in Germany in a bid to make all of its passenger vehicles sold in Europe electric by 2030.