Nearly 236,000 passengers expected at Kuwait International Airport during Eid Al-Adha holiday

KUWAIT CITY, July 12: The Central Agency for Public Tenders (CAPT) has opened the financial bids for the operation, management, service improvement, training, maintenance, and development of Terminal Four (T4) at Kuwait International Airport. Sources told the Arab Times newspaper that two international companies have submitted bids, indicating the Korean company Incheon offered KD72 million, while the Turkish company TAV offered KD84 million. Sources said the offer from Incheon is the lowest among the bids.

Sources revealed that the Board of Directors of CAPT referred the bidding documents to the Directorate General of Civil Aviation (DGCA) — the entity concerned with the bid– to study and analyze the offers from the technical and financial perspectives. Sources said the DGCA will present its recommendations within 30 days from the date of receiving the documents. Sources added that the directorate will base its recommendations on the results of the study conducted in this regard and then submit them to CAPT for the latter to decide whether to award the contract to the best bidder.

Sources stated that the recommendations will then be referred to the remaining regulatory authorities to complete the other requirements; affirming this step is under the policy of involving the private sector in the management and operation of the airport, especially after the remarkable success of the private operator’s experience with T4 over the years, which contributed to improving services provided to passengers and the achievement of high operational efficiency that were reflected in the overall performance of the airport. Sources revealed that the aforementioned companies previously met the required percentage in the technical evaluation, with the Korean company receiving a rating of 87.5 percent, while the Turkish company got a rating of 87 percent.

By Mohammad Al-Enezi
Al-Seyassah/Arab Times Staff

 Demand for oil is weak from major consumers in Asia, including China, Japan, and South Korea, with a reduction of more than 400,000 barrels per day. These countries are the main consumers of oil from Arabian Gulf producers, so the decline will have a major impact on Gulf economies without exception. In addition, demand in the United States has slowed by 70,000 barrels per day, along with reduced demand from Mexico. Oil prices have now fallen below $68 a barrel, a level not seen even during the 2009 financial crisis or the COVID-19 pandemic.

The sad reality is that oil prices are now much lower than in previous years, possibly reflecting the impact of U.S. tariffs, which may also be affecting domestic demand. Meanwhile, Europe and emerging markets such as India, Pakistan, and Vietnam show reduced demand. This could suggest that Far East countries either have surplus oil with no available storage capacity, or they are holding off in anticipation of further price drops. This is certainly bad news for OPEC, which recently increased crude output, pushing more than one million barrels per day in excess into the market.

With global oil demand at 104 million barrels per day and supply at 105.2 million, the market is now oversupplied by over one million barrels daily, and it is struggling to find buyers. As a result, prices have dropped below $68 a barrel, with no immediate signs of recovery. The question remains whether OPEC+ will return to its traditional policy of supporting crude oil prices by cutting production, a strategy that may ultimately benefit non-OPEC producers and erode OPEC+’s market share. This could lead to the same cycle of repeated policy shifts. Or will this time be different, as OPEC+ becomes more accustomed to outside borrowing? The oil market needs stability and clear guidance from OPEC+ to take the right actions that balance supply while managing oil prices at an acceptable level. This raises questions about the effectiveness of the quota system and the success of the overall policy of OPEC+. Most of the time, their measures work only briefly before the organization relaxes its stance. When oil prices rise, other producers increase output to capitalize on the situation, undermining OPEC’s efforts. This cycle repeats as prices eventually harden again.

The decline in oil prices is likely to continue, and nothing can change this unless OPEC+ intervenes as usual by calling for further production cuts, resulting, as always, in losses for the organization. As mentioned before, OPEC+ is relying heavily on borrowing from external banking sources to cover its deficits, a trend that is expected to continue unless oil-producing countries reduce their expenses and cut their budgets. In addition, it is important to explore new sources of income. Governments must also focus on creating jobs for recent graduates despite the drop in oil revenues. The future looks challenging, with lower oil prices and reduced income from oil. Our governments need to find alternative revenue streams and provide job opportunities for new entrants to the labor market. We must face these new realities – weaker oil prices, higher expenses, and growing numbers of job seekers. These are the new challenges facing the Arabian Gulf countries amid a period of lower oil prices.

By Kamel Al-Harami
Independent Oil Analyst
Email: [email protected]

US President Donald Trump speaks during a cabinet meeting at the White House on July 8, in Washington. (AP)

WASHINGTON, July 12, (AP): US President Donald Trump said in a letter that he will raise taxes on many imported goods from Canada to 35%, deepening a rift between two North American countries that have suffered a debilitating blow to their decades-old alliance. The Thursday letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25% tariff rates that Trump first imposed in March after months of threats.

Trump’s tariffs were allegedly in an effort to get Canada to crack down on fentanyl smuggling despite the relatively modest trafficking in the drug from that country. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America. “I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote in the letter.

The higher rates would go into effect Aug. 1, creating a tense series of weeks ahead for the global economy as recent gains in the S&P 500 stock index suggest many investors think Trump will ultimately back down on the increases. But stock market futures were down early Friday in a sign that Trump’s wave of tariff letters may be starting to generate concern among investors.

In a social media post, Carney said Canada would continue to work toward a new trade framework with the U.S. and has made “vital progress to stop the scourge of fentanyl.” “Through the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and business,” Carney said. While multiple countries have received tariff letters this week, Canada – America’s second largest trading partner after Mexico – has become something of a foil to Trump.

It has imposed retaliatory tariffs on US goods and pushed back on the president’s taunts of making Canada the 51st state. Mexico has also faced 25% tariffs because of fentanyl, yet it has not faced the same public pressure from the Republican U.S. president. Carney was elected prime minister in April on the argument that Canadians should keep their “elbows up.” He has responded by distancing Canada from its intertwined relationship with the U.S., seeking to strengthen its links with the European Union and the United Kingdom.