The deal aims to boost import and export operations in the Kingdom.
The Saudi Ports Authority, Mawani, has signed a preliminary agreement with the Saudi Centre for Commercial Arbitration to establish a framework to settle commercial disputes in the maritime sector.
As per the agreement, the two entities will focus on creating the appropriate environment for the efficient resolution of disputes, especially those related to import and export business in the maritime sector, the Saudi Ports Authority said in a statement on Sunday.
“The MoU plays an essential role in achieving the authority’s objectives of developing maritime transport and import/export operations, enhancing the capabilities of member ports, and contributing to the national economy,” the Saudi Ports Authority said.
Saudi Arabia, the biggest Arab economy, is undertaking a number of measures to help boost the contribution of the non-oil sector under Vision 2030, its overarching road map for the kingdom’s economic overhaul. The country is spending billions of riyals on boosting its infrastructure, especially in developing new ports across the country.
As part of the agreement, the two entities will also focus on raising awareness about dispute settlement alternatives as well as developing the skills of the authority’s staff members and those concerned with the maritime transport and ports sector, the statement said.
In 2020, the Saudi Ports Authority signed a 7 billion riyal ($1.86bn) deal with a company backed by the kingdom’s sovereign wealth fund to develop new container terminals at King Abdulaziz Port in Dammam.
AP Moller-Maersk, the world’s largest container carrier, is also investing $136 million over a 25-year period on an integrated logistics park at Jeddah Islamic Port to help the country boost exports.
The project, spread over 20.5 hectares, will serve as a centre for trans-shipments and air freight, with a number of warehouses, distribution centres and cold storage units, Maersk said in November.
Saudi Arabia’s economy is expected to grow 4.8 per cent in 2022, according to the International Monetary Fund’s World Economic Outlook report, released in October.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
