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Global Trade Post-Suez

It is a feature of human history that complex trends and periods of time can be encapsulated by a single incident of an image that seems to describe the narrative in such simple terms. The Covid Pandemic has placed a hold on the global movement of people and goods like never before in the era of globalisation, yet not the changing polices and paperwork nor the empty skies and airports has symbolised this in the same way that the “Ever Given” ship blocking the Suez Canal did.
Firstly, the ship itself is a caricature of global trading excess. Almost 400m long and capable of carrying a deadweight tonnage of 199,629 tons including 20,000 containers worth some $89 million and a crew of only 25. It was traversing a key economic artery in the Suez that carries more than 10% of world trade. German insurer Allianz estimated the cost of the blockage at up to $10 billion a day.
Images of the stricken ship became the frontpages of papers across the globe and Memes of the initial bulldozers efforts to help move it quickly became viral internet fodder. Soon aerial footage of the backed-up ships waiting to enter the canal, a sort of economic armada, became the next chapter of the thrilling tale. The cause of the accident remains somewhat disputed and varies between human error, a diversion caused by wind to even more unsourced charges that it was the result of a cyber hack on the ships navigational systems.
What is clear is that the six days of Suez blockage has sparked a debate about global supply chains and aspects of modern capitalism that the Covid lockdown didn’t really manage to do in over a year. US comedian Jimmy Kimmel celebrated the end of the Suez Canal blockage during his show’s opening monologue by joking that the whole thing was basically “capitalism had a heart attack”.
The obvious dependency of global trade on the route, so much that shipping experts divide the world into east of Suez and west of Suez, has sparked commentary on the opening of alternative routes. For example, a Russian Foreign Ministry official Nikolai Korchunov argued the need for the development of new shipping routes, including a northern sea route through the Arctic Ocean. This would be an ominous development for the Egyptian government, that collects something like $700,000 per ship’s passage in the canal.
However, Cairo can rest easy that global trade cannot shift on a sixpence, but the Egyptian authorities are probably more sensitive than most to the fact that a recalibration of global geopolitics is likely to dictate the future of global trade rather than vice-a-versa. Former President Trump’s ‘trade war’ with China and the recent acrimonious summit between the new Biden Administration and Beijing in Alaska are signposts of the deepening splits in our globalised economy.
Yet observers are right to contrast the fact that the US trades more with China in a day than they used to trade with the Soviet Union in a year. The ties, connections and supply chains run deep despite the political and cultural differences between the two countries. For a microcosm of this the Oscar winning documentary “American Factory” provides great insight into the coming together of modern capitalism, China and America.
Whilst the tectonic plates will be shifted by China-US relationship, in the short term there is a question as to whether Covid and a push for more nationalised purchasing will change the fundamentals of global trade. British cheese exporters have seen an almost 50% drop in exports to the EU following Brexit but were advised by the British Government to seek out new and emerging markets. On the parallel side as the debate around how to combat climate change takes more practical forms consumers may become far more sensitive as to how far their purchases have travelled.
Will platforms like Amazon and Google look to direct this bandwagon towards supporting shorter supply chains that are less logistically intensive and reliant on bigger and bigger ships travelling through the Suez Canal? This was a question that was being asked before the “Ever Given” found itself grounded but now people arguing the case have an iconic warning as to overdependency on the philosophy of going bigger and further away to source products and parts.
James Denselow
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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