Economy

"Such big jamborees as the Astana International Forum happen often, and are – more often than not – considered as talking shops with limited results. They are usually a part of a branding exercise by countries that can afford them. Most participants forget about them the moment they leave, and the impact beyond that is often negligible," writes commonspace.eu in this commentary. However, "the Astana International Forum marks the emergence of a new Kazakhstan on the international stage. This year’s event was the first. Future forums will be a good gauge for how this new Kazakhstan is performing." Writing for a blog on Al Jazeera on the eve of the opening of the forum, Kazakh Deputy Prime Minister, Serik Zhumangarin described the Astana International Forum as “a global event aimed at renewing the culture of multilateralism”, and said that it was a part of Kazakhstan’s multi-vector foreign policy which seeks to engage countries in the north, south, east and west.

Arab League countries and China have signed some 30 deals that total $10bn. This came on the first day of the 10th Arab-China Business Conference taking place in the Saudi capital Riyadh, on 11-12 June. The 30 investment agreements cover a wide range of areas, including technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare. According to the Saudi Investment Ministry, the Saudi government also signed deals with a number of Chinese entities in areas such as automotive research, development, manufacturing and sales, development of tourism and other apps, and production of rail wagons and wheels in Saudi Arabia. The biggest deal reached totalled $5.6bn, and was struck between Saudi Arabia's Investment Ministry and Human Horizons, a Chinese developer of autonomous driving technologies and manufacturer of electric cars. Saudi Arabia and Hong Kong-based Android developer Hibobi Technology Ltd signed a $266 million deal to develop tourism and other apps.

The first Astana International Forum (AIF) is taking place in Kazakhstan on Thursday and Friday (8-9 June). An initiative of the Kazakh President Kassym-Jomart Tokayev, the Astana International Forum writes that it will "serve as a platform for high-level delegates from foreign governments, international organizations, businesses and academic circles to engage in dialogue and seek solutions to problems such as climate change, food shortages and energy security". Over 1,000 people will participate in the conference, which is running under the theme "Tackling Challenges Through Dialogue: Towards Cooperation, Development & Progress". There will be several keynote speeches and over 40 panel sessions, discussions, and side events. The decline of Russia in Central Asia as a result of its ongoing full-scale invasion of Ukraine has propelled the region into a new geopolitical reality. Especially on trade, difficulties trading via Russia as a result of sanctions have given Central Asia a renewed, critical position in facilitating east-west trade. To that end, Central Asian connectivity is also high on the agenda at the AIF.

The group of oil producing countries, OPEC+, has pledged oil output cuts amid flagging global oil prices. Following the announcement made on Sunday (4 June) after a meeting of OPEC+ in Vienna, Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel in Asia trading on Monday. In accordance with the agreement struck, Saudi Arabia announced that they would cut daily barrel production from 10 million barrels per day (bpd) to 9 million bpd in July, as well as extending their volunatary cut in oil production of 500,000 bpd until December 2024. Russia's 2023 quota currently stands at around 10.5 million bpd, but in 2024 will reduce to approximately 9.3 million bpd, consisting of a reduction of 650,000 barrels per day as well as the voluntary cut of 500,000 bpd. Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel. Global oil prices spiked following Russia's full-scale invasion of Ukraine in February 2022. Since then, however, prices have fallen to pre-February 2022 levels. In an attempt to shore up global oil markets, OPEC+ have announced a couple of rounds of cuts in oil production. In October 2022, OPEC+ agreed to cut production by two million bpd, about 2% of global demand.

Georgia and Qatar are to sign an agreement on innovation and technology cooperation, the Georgian Economy Minister Levan Davitashvili announced on Tuesday (23 May). The announcement came after the Georgian Prime Minister Irakli Garibashvili and the Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al Thani met in Doha on the sidelines of the Qatar Economic Forum that is running from 23-25 May. Davitashvili said that the Georgian delegation had meetings with a number of sectoral ministries in which they discussed opportunities for cooperation between Georgia and Qatar. Transport, logistics, and Georgia's key role in the Middle Corridor facilitating east-west trade were emphasised in the meetings, according to Davitashvili, who said that there is an increased interest in the country from "many states of the world, including Qatari investors", amid geopolitical challenges. The meetings also touched on trade and economic issues, as well as the the agreements on Mutual Support and Protection of Investments and on Economic, Trade and Technical Cooperation, signed last year between Georgia and Qatar.

The Kazakh capital of Almaty will be hosting the 2nd European Union-Central Asia Economic Forum next week on 18-19 May. Building on the 1st EU-Central Asia Economic Forum that took place in Bishkek in 2021, next week's forum will "take stock of progress made so far and discuss ways forward on policy, programmes, and investment needed to develop a more integrated and interconnected regional market engagement". "The Forum will allow to strengthen sustainable connectivity and promote regulatory approximation in the economic area between the EU and Central Asia countries, which is so vital for a better business environment and a safe investment climate," a statement from the EU Central Asia Invest Programme says. "The Forum will gather high-level government officials, the European Investment Bank, the European Bank for Reconstruction and Development, other bilateral and international financial institutions, representatives of the private sector and members of civil society. It is organised in partnership with the Organisation for Economic Co-operation and Development," the statement adds. The forum will focus on three priority areas: a green and digital transition, a better business environment, and trade and connectivity. Next week's forum follows the 4th EU-Central Asia civil society forum that took place in the Uzbek capital of Tashkent in March.