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PMI data shows that Saudi Arabia's non oil business activity shrank in March amid conflict.
A 'business survey' revealed that Saudi Arabian non-oil sector activity fell in March for the first time since August 20. The war in the Middle East had slowed down supply chains. S&P Global's?seasonally-adjusted Riyad Bank Saudi Arabia Purchasing managers' Index (PMI) fell to 48.8 from 56.1 in Feb. The readings below 50 indicate contraction. Naif Al Ghaith is the chief economist at Riyad Bank. He said that the drop into contraction was largely due to short-term uncertainties linked with the geopolitical tensions of the region. "The soft reading was mainly?driven by a pause in the new orders, as clients adopted more caution." Export orders experienced a notable drop, and some firms reported a temporary slowdown of cross-border activities. This led to a moderated output, Al-Ghaith explained. For the first time, both output and new orders have declined since August 2020, when the COVID-19 epidemic brought economies to a grinding halt. New orders dropped to 45.2 in March, down from 61.8 in February. Export demand was weakening sharply. New export orders posted their steepest drop?in nearly six years. Exports were 'completely stopped' by some firms, while others experienced greater logistical problems. The conflict has slowed the flow of water through the Strait of Hormuz, but the supply strains have increased. This situation may continue as long as the Strait of Hormuz remains effectively blocked. Business expectations for the coming 12 months remain 'positive' despite a 'weakening of their lowest level since June 2020. Some firms are still confident about government spending, the development of infrastructure and the improvement in demand on the long term. (Reporting and Editing by Hugh Lawson).
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Egypt increases electricity prices for households and businesses that use more energy amid energy crisis
The electricity ministry announced on Saturday that Egypt will raise electricity prices for residential and commercial consumers who use more electricity. This increase is due to a global energy crisis caused by the Gulf War. The government has taken a number of measures to reduce energy consumption and curb fiscal pressures as rising import costs put pressure on the finances of the most populous Arab country. The ministry stated that the increase would only affect households with higher consumption and commercial users. This was done to ensure the supply of electricity across residential, industrial and commercial sectors. The report said that electricity rates for residential bands up to 2,000 kilowatt hours per month would remain the same, but tariffs for higher residential brackets will increase by an average 16%. It added that commercial electricity prices in all brackets will increase on average by about 20%. In March, Prime Minister Mostafa. Madbouly stated that Egypt's energy import bills had more than doubled in the last few years since the start of the conflict involving the United States and Israel. This forced the government to increase fuel prices, raise fares for public transportation, and slow down some state projects, to relieve pressure on the public finances. Egypt implemented measures to rationalise its energy consumption in March, including a move towards earlier closing times for commercial venues. This was due to the rise of global oil prices during the conflict. Inflation has been in double digits since September 2023, when it peaked at 38%. The country is already struggling with heavy debts. Reporting by Momen Atallah and Enas Alashray
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Slovak PM: EU should lift sanctions on Russian oil, gas and other energy sources to improve energy security
Robert Fico, the Slovakian Prime Minister, said that the European Union must end sanctions on Russian oil and gas imports and take steps to restore Druzhba pipeline flows, as well as end the conflict in Ukraine, in order to tackle the energy crisis stemming from the war with Iran. Fico stated in a press release after a phone call with Hungarian Premier Viktor Orban, that the EU should re-establish dialogue with Russia to ensure member states get gas and oil from all sources including Russia. Hungary and Slovakia are the only two EU countries that maintain relations with Moscow. Oil prices have risen?since U.S.-Israeli strikes against Iran began on February 28, causing a disruption to oil supplies in the Gulf and causing what the International Energy Agency calls the largest oil supply interruption in history. Central European nations have taken steps to reduce the impact of high fuel prices on consumers and businesses. By the end of 2025, only a fraction of EU oil imports came from Russia. This was after a steep decline in imports following Moscow's invasion of Ukraine. By January 27, Kyiv reported that a Russian drone attack had hit Ukrainian pipeline equipment, disrupting Russian oil?shipments. Budapest and Bratislava accuse Ukraine of intentionally delaying repairs in order to resume oil flow through the Druzhba pipe. This has triggered a political dispute which?has seen Hungary blocking an EU loan for Kyiv. Ukraine claims it is repairing it as fast as possible. Fico stated that it is not enough to address the energy crisis at the national or only local level. Five other European Union countries are also calling for a windfall profit tax on energy companies in response to rising fuel prices. This was revealed by a letter sent to the EU Commission on Saturday. The energy chief of the bloc said on Tuesday that it was considering reinstating energy crisis measures from 2022. This included proposals to reduce grid tariffs and electricity taxes.
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Taiwan has received assurances from a'major country' about LNG supplies
Taiwan's economy minister announced on Saturday that the energy minister of a "major country" producing liquefied gas had given Taiwan assurances about supply. He was speaking in relation to the?impact of the Iran War on Middle East energy imports. Taiwan, which is a major producer of semiconductors, relied on Qatar to supply around a third its LNG prior to the conflict. It has now said that it has secured alternative supplies from countries such as Australia and the United States for the months ahead. Kung Ming Hsin, Taiwan's Economy Minister, told reporters in Taipei that Taiwan enjoys good relations with its?crude gas and natural oil suppliers. Therefore, adjusting the origin of shipments or purchasing additional spot -cargoes will not be a problem. Kung stated that the energy minister from a "major energy producing country" had contacted him about two weeks prior. The person "explained that they would fully support our natural gas needs. He added that if we had any requests, we could let them know. Kung added: "Another nation even stated that certain countries had released strategic petroleum reserves and could help coordinate the matter if Taiwan needed assistance." He said, "This shows Taiwan has earned considerable international goodwill through the long-term confidence it has built." He refused to identify the countries involved. Angela Lin, spokesperson of state-owned refiner CPC said that at the same?newsconference, crude oil inventories are being maintained at levels prior to conflict and that overall petrochemical supply has remained stable. CPC Chairman Fang Jeng Zen said that a new agreement with the U.S. would see 1.2 millions metric tons of LNG delivered?annually. He added that Taiwan does not intend to import crude oil or LNG from Russia. (Reporting and editing by Ben Blanchard, Roger Tung and Joe Bavier).
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Five EU Finance Ministers Call for Tax on Windfall Profits of Energy Companies
In response to fuel prices rising due to the Iran War, five?European Union Finance Ministers have called for a tax to be placed on the 'windfall profits' of energy companies. This was revealed in a letter sent to the EU Commission on Saturday. In a joint letter dated on Friday, the finance ministers from Germany, Italy Spain Portugal and Austria called for such a move, stating that it would "signal" to others that they are united and capable of taking action. They wrote: "It will also send a message that those who benefit from the war's consequences must do their part in easing the burden of?the public." Since the U.S. and Israeli strikes against Iran began on 28 February, oil and gas prices have risen dramatically. This is similar to the energy crises Europe experienced after Russia invaded Ukraine - in '2022 - despite the fact that EU countries are now getting more of their energy from renewable sources. LETTER HIGHLIGHTS 'MARKET DISTORTIONS' In a letter addressed to EU Climate commissioner Wopke Hekstra, the Ministers referred to the possibility of a similar tax to be implemented in 2022 as a way to combat high energy prices. They wrote: "Given current market distortions, and fiscal constraints the European Commission must develop quickly a similar EU wide contribution instrument based on a sound legal basis." The letter did not specify the level of windfall taxes that ministers would propose, nor which companies should be affected. The energy chief of the bloc said on Tuesday that it is considering reviving measures taken in response to the energy crisis in 2022. This includes proposals to "curb grid rates" and taxes on electricity. After Russia cut off gas deliveries, the EU implemented a series of emergency policies. These included a?EU-wide gas price cap, a tax imposed on windfall profits of energy companies, and targets to?reduce gas demand. The Middle East conflict has a significant impact on the global energy prices. Since the U.S. and Israel war against?Iran started on February 28, European gas prices have risen'more than 70%. Dan Jorgensen, EU Energy Commissioner, said that Brussels is particularly worried about the supply of refined petroleum in Europe such as diesel and jet fuel. Reporting by Andreas Rinke, Writing by Tom Sims, Editing by Alison Williams
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Senegal bans travel by government officials as Iran oil shock affects public finances
Senegal has banned all travel abroad by top officials and ministers that is not essential. The government warned of "extremely challenging" times as a result of the U.S./Israeli conflict with Iran, which will increase global oil prices, straining Senegal's budget. The price of Brent crude has soared and governments have been urged to act to reduce the negative effects. Senegal Prime Minister Ousmane sonko, speaking at a youth event on Friday night in Mbour, pointed out that oil is trading for about $115 per barrel, almost twice what was assumed to be the price in Senegal’s budget projections. He announced that he has already cancelled his own trips to Niger and France. The?crisis has prompted governments across West Africa and the world to take a number of?measures, including increases in fuel prices, subsidies and remote work. Sonko said that such actions were a "justification" for Senegal, a debt-ridden country. He said that?additional?measures would be announced next?week, and the Energy and Mines?Minister is expected to address?the?nation in the?coming?days?to detail efforts to mitigate?the impact of the?price shock. (Reporting and editing by Joe Bavier, Diadie Ba and Bate Felix)
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AI is revolutionizing the most prolific film industry in the world
Welcome to the new look movie set. The cacophony created by cameras, clapperboards, and shouted instructions has been replaced with the quiet hum from a coding room. Collective Artists Network is a leading talent agency that represents Bollywood's A-listers. It has been facilitating the careers of superstars for many years. It's now engineering digital ones. The Bengaluru facility uses artificial intelligence to create content that is based on Hindu mythology, a genre popular in India. In a movie based on a religious text called "Ramayana," there is a scene where the god Hanuman is seen flying with a mountain in his arms. The show "Mahabharat" is based on another ancient epic. It features a scene depicting princess Gandhari who blindfolded her eyes when she married a blind king. India is the country that produces most movies, and its stars like Shah Rukh Khan or?Amitabh?Bachchan have cult followings. Many?industry participants say that changing audience habits and the growth of streaming are impacting production budgets. Ormax Media, a consulting firm, says that moviegoers will drop to 832 millions in 2025 compared to 1.03 billion people in 2019. Box-office sales last year?hit an all-time high of $1.4 billion, but revenue has been choppy and dependent on a few hits and more expensive tickets since the pandemic. To view this story on.com go to India's studios are deploying AI on a massive scale, releasing films in multiple languages and even recutting the endings of old titles in order to increase sales. They are also reshaping filmmaking economics by reducing production timelines and utilizing AI to improve efficiency. Rahul Regulapati is the head of Collective's AI Studio, Galleri5. How about production time? He said, "down to a quarter." Hollywood has taken a different approach, with union contracts and concerns about job loss limiting studios' adoption of AI. Google, Microsoft, and Nvidia are making early bets in India by partnering local filmmakers. At least one major production company is reviewing its entire catalog for AI rereleases. In previous reporting, we have explored the ways in which Indian filmmakers harness AI and India's divergence from Hollywood. The first report to detail the extent of India's film industries?reorganization around AI, and the economics that are driving this shift. This story includes interviews with 25 people, including directors and studio heads. American and British studios are experimenting with AI filmmaking. They will produce the first full-length AI animation features in 2024, and an AI powered immersive version of 'The Wizard of Oz' last year. Dominic Lees said that India's film-makers' ambitions are at a?different level. He is a researcher in AI and film at the University of Reading, Britain. He said that if India can meet the demands, it will become a leader in AI filmmaking. India's pivot towards AI is a reflection of its embracement of technology in general. India bet last year that embracing AI would create enough opportunities to offset any short-term disruption. According to an analysis by EY, AI could increase revenue for Indian media and entertainment companies by 10% while reducing costs by 15% in the medium term. Vikram malhotra, the founder of Abundantia Entertainment told reporters that Abundantia Entertainment is building their AI capability from scratch. The Bollywood production house recently announced an investment of $11 million in a studio for AI. NEW ENDINGS FOR OLD DRAMAS India's Eros Media World released "Raanjhanaa" with an AI-altered version last year. The film replaced the tragic ending in which the protagonist dies with a happier conclusion where the lover smiles through tears when he opens his eyes. Rewrites drew criticism. Dhanush, Dhanush is the name of the actor who plays the main role. He said on X, that the AI remake "stripped away the film's very soul." It also set a "deeply worrying precedent for artists and art." The re-released "Raanjhanaa", however, still attracted audiences. PVR Inox India's biggest cinema chain reported that 35% of tickets for the Tamil-language version were sold in August, the month when the film was released. This was 12 percentage points more than the average for 2025. Eros has gone further. Pradeep Dwivedi is the group CEO and he said that Eros was reviewing its 3,000 titles catalog to "identify candidates for AI-assisted adaption." Last year, Eros' Indian unit Eros International warned about "competition by digital platforms," as its annual consolidated revenue from operations dropped 44%. Dwivedi explained that the AI rewrites are both a revenue-generating opportunity and a strategy for creative renewal. Hollywood would have to deal with such changes. A deal with the U.S. actors union SAGAFTRA prohibits studios from digitally altering an actor's performance, or creating a digital copy without informed consent. The Directors Guild of America contract prohibits studios from relying on AI to make creative decisions without consulting directors and forbids AI from performing the work of their members. Indian studios are experimenting aggressively with AI in Hindu mythology tales. This is big business for a country that has millions of devotees. Collective plans eight AI-generated titles focusing on deities like Hanuman and Krishna. JioStar is a joint venture media company between Mukesh Ambani’s Reliance Media and Walt Disney. It airs an AI-generated version of the Hindu epic “Mahabharat” – the first episode series that emerged from Collective’s cinematic AI laboratory. JioStar said that the AI version of the story about a dynastic battle between princes, which was released in October on the streaming platform by JioStar, has attracted 26.5 million viewers since its release. A previous TV adaptation attracted 200 million viewers from 1988 to 1990. However, the show has been met with a mixed reception by audiences. IMDb gives "Mahabharat", a 1.4-star rating. Some reviewers cite lip-syncing issues, while others say that some scenes are low-quality and lack authenticity because of unnatural styling. Alok Jain is a senior executive with JioStar. He stated that the response has been "a mixture of appreciation and healthy discussion, which is normal for any ambitious creative step." JioStar also plans to make original stories using AI. Some film industry figures have expressed concern about the use of AI. Jonathan Taplin, a writer and producer from the United States who has worked for Hollywood studios, says that the use of AI to create feature films is an "affront to all of cinema's history." He said, "It'll fill your screens and cinemas with formula slop." AI DUBBING The acceptance of AI may be easier to achieve through dubbing. India has 22 official languages, and there are hundreds of dialects. Dubbing is essential to make a movie a blockbuster in India. AI is now beginning to solve the problem of mismatched lip movements, a complaint that audiences have had for years. Subhabrata Debnath, the co-founder of NeuralGarage in Bengaluru, a startup that offers dubbing services to top studios such as Yash Raj Films and other major studios, demonstrated a clip showing an AI-generated English character. Subhabrata Debnath then added a German audio track and the character spoke fluent German within minutes. Debnath explained that the technology preserved "the performance, the identity and the speaking styles of the person", while modifying the face to look natural. Last year, NeuralGarage AI technology was used to translate Yashraj's Hindi film "War 2" from the Hindi language into Telugu of south India. The production house did not respond to any questions. The Red Carpet meets the RED MAJORS Tech giants around the world are also interested in getting a piece. Google partnered in August with Bollywood director Shakun Bhatra to produce a 5-part cinematic'series' using Veo 3 video generation and Flow AI to experiment with AI powered filmmaking. Mira Lane is Google's Vice President of Technology and Society. She said that AI can also help independent artists create complex sequences which "might be otherwise out of reach because of budget or logistical limitations." Microsoft has been working on a collaboration with Collective, and it said that Microsoft would be providing AI computing power in order to "shape" the next wave of global story-telling through such collaborations. Collective uses a hybrid approach of digital animation and physical recording to bypass the limitations of text prompts. The actors wear motion-capture suits equipped with sensors to capture body movements in 3D, while their smartphones record facial expressions. This data is then fed into the AI pipeline to allow for more nuanced control of the AI generated characters. The ripples go beyond the studio. Festivals dedicated to AI-generated shorts have proliferated around the world, including in Los Angeles, Cannes and Barcelona. India's first event took place at Mumbai's Royal Opera House in November, when young storytellers and a robot walked down the red carpet. In February, Nvidia was on stage in New Delhi with the second edition of India’s AI Film Festival. Pradeep Gupta told the audience that Nvidia is working on reducing computing costs to allow anyone "to create something substantial" without spending a lot of cash. Anurag Kashyap is a Bollywood Director who expressed concern about the use of AI and its growth in India. He reluctantly acknowledged the economic benefits of studios deploying the technology. In India, cinema doesn't revolve around art. "It's just business. Studios will use it to create mythologicals," Kashyap stated of AI. "Our audience loves it."
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Vietnam's Q1 growth slows due to Middle East energy testing 2026.
Data showed that the economy of Vietnam slowed down in the first three months compared to the previous three months. This was due to a 'heavy exposure' to Middle Eastern oil imports, which boosted inflation, making it difficult for the country reach its annual growth goal, officials said. The National Statistics Office reported that the gross domestic product (GDP) grew by 7.83% from January to the end of March compared with the same period last year, but fell below the 8.46% growth rate in the fourth quarter. The NSO said on Saturday that "the pressure from rising energy and input prices remains, posing a challenge for economic governance." It said that consumer prices increased by 4.65% on an annual basis in March, due to a 10.81% increase in transport costs. This was a significant acceleration from the 3.35% rise in February. The Southeast Asian economy is facing pressure to meet its growth target for this year of at least 10%. This is because it imports over 80% of its crude oil from the Middle East where the Iran War, which has now entered its sixth week of conflict, has disrupted supplies. Nguyen Th Huong, Director of the NSO, said: "Vietnam's socio-economic condition continues to face challenges, and meeting 2026 growth targets remains a major challenge." The rising?fuel price has prompted Vietnamese airlines to cut back on operations, and the government to try to reduce costs. This includes reducing taxes, subsidising fuel prices, and encouraging remote working to reduce consumption. The growth rate was higher than the 7.5% annual expansion in the first quarter 2025. The report stated that exports increased 20.1% to $46.44 Billion in March from a year ago. The report said that March industrial production increased 6.9% compared to a year ago, but was slower than the growth of 8.6% during the same month last year. Petrolimex, a leading fuel retailer in Vietnam has reported that the war has caused gasoline and diesel prices to increase by 21% and 84% respectively. Senior officials have sought alternative oil suppliers from Gulf states, Japan and South Korea. Vietnam's imports in March rose by 27.8%, to $47.11 Billion. This represents a trade deficit of 670 M$. Exports grew 19.1% in the first quarter to $122,93 billion while imports grew 27.0% to $126.57 billion. This led to a $3.64 billion deficit. Retail sales increased 10.9% in the third quarter. The NSO reported that foreign investment inflows for the first quarter of this year rose by 9.1% compared to the same period last year, to $5.41 Billion. Meanwhile, pledges, which are indicative of future inflows grew 42.9%, to $15.2 Billion. Pham 'Minh Chinh, the Prime Minister, said that Vietnam would maintain its 10% growth target despite current challenges. He promised to take steps like?increased public investment, diversification of supply chains and export markets, and greater public investments. Chinh said at a cabinet session that "Our country faces many limitations, shortcomings and challenges, as well as risks and difficulties related to macroeconomic management, energy security and the pressures of managing it." (Reporting and editing by William Mallard, Clarence Fernandez and Khanh Vu)
South Korea asks Gulf Nations for a steady supply of energy and safety of Korean vessels
The South Korean Ministry of Finance announced that Koo 'Yun-cheol, Minister of Finance, met with envoys of Gulf countries on Sunday to discuss energy security and the safety of 'Korean vessels near the Strait of Hormuz. This is due to the escalating Iran conflict disrupting shipping.
The ministry said that during the Friday meeting, Koo requested the ambassadors of the Gulf Cooperation Council to ensure a constant supply of oil, liquefied gas, naphtha and urea as well as other critical resources. He also asked them to ensure the safety and security for Korean vessels and crews near this vital strait.
The statement stated that the envoys referred to South Korea as a nation of "top priority". They also pledged to work closely with Seoul in order to maintain a stable supply.
Like many Asian economies, South Korea relies heavily upon energy imports. This includes through the Strait of Hormuz. The Strait of Hormuz was the conduit for 20% of 'world oil' before Israel and the U.S. launched their war on the 28th of February. Since then, Iran has effectively closed the waterway. This has pushed up energy prices and raised fears of a global recession.
Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait and Oman are the six GCC member states. Reporting by Cynthia Kim, Editing by William Mallard
(source: Reuters)