Saudi Arabia’s FII Institute to host global Priority Summit in Miami in March  

Saudi Arabia’s FII Institute to host global Priority Summit in Miami in March  
The summit will be held in Miami (Shutterstock)
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Updated 30 March 2023

Saudi Arabia’s FII Institute to host global Priority Summit in Miami in March  

Saudi Arabia’s FII Institute to host global Priority Summit in Miami in March  

RIYADH: Saudi Arabia’s Future Investment Initiative Institute is holding another Priority Summit on March 30 to 31 - this time in Miami.

This latest event comes just months after the FII Priority event held in New York in September last year.

The summit will gather industry leaders, policymakers, CEOs, students, volunteers, academics, and investors to discuss a roadmap to navigate through global challenges. 

FII’s Priority Summit seeks to serve as a platform for thinkers from various spheres of life and industry leaders to discuss global issues and devise ways to counter those challenges through dialogue and find viable solutions. 

“Priority is held to open our eyes to the people’s main concerns— which is a priceless tool in the hands of those capable of change. This inclusive summit focuses on what action we can take to address those concerns and how to reinvent many business and social models of the global economy and make way for more prosperous, fulfilling lives,” Richard Attias, CEO of the FII Institute, said. 

He added that the event aligns perfectly with FII’s vision to create a positive impact in the world by providing a channel for people’s voices to be heard. 

“To thrive in the new era of our economy, we must gather together and discuss our most pressing challenges — that is why we are proud to be hosting this year’s edition of the Future Investment Initiative Institute Summit in Miami, as it will congregate extraordinary minds that will share their insights into how we can unleash our potential in an ever-disrupting environment,” Francis X. Suarez, mayor of Miami, said. 

The summit seeks to answer critical questions such as what new regulations and organizations need to be formed to realize each priority and how communities around the world can learn to understand and support each other. 

Founded in 2019, the FII Institute is a nonprofit organization led by Saudi Arabia’s Public Investment Fund and plans to launch the 7th edition of the FII event by the end of October in Riyadh. 


Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade
Updated 13 sec ago

Saudi-British business delegations meet to bolster intra-regional trade

Saudi-British business delegations meet to bolster intra-regional trade

RIYADH: Intra-regional trade between Saudi Arabia and the UK is set to receive a boost as top ministers from both countries held talks in London to strengthen economic ties. 

As part of the third meeting of the Saudi-British Strategic Partnership Council, the Kingdom’s Commerce Minister, Majid bin Abdullah Al-Qasabi, and the UK’s Investment Minister, Dominic Johnson, discussed ways to further encourage English firms to expand their businesses in the Middle East’s largest economy. 

This comes as trade exchange between Saudi Arabia and the UK stood at SR80.7 billion ($21.5 billion) in 2022, reflecting a 68 percent surge when compared to 2021. 

While the total value of UK exports to Saudi Arabia stood at SR56.9 billion in 2022, the total value of imports from the Kingdom amounted to SR23.8 billion. 

The two ministers also discussed ways to promote and finance emerging companies in promising fields based on research and innovation while reviewing the British experience in developing entrepreneurship.  

Led by Al-Qasabi, the Saudi delegation includes Deputy Minister of Commerce and CEO of the National Competitiveness Center Iman Al-Mutairi as well as 45 officials from 22 private and non-profit government agencies. 

The delegation will participate in important meetings with the British government and business officials to bolster economic cooperation between the two nations. 

The agenda of the visit also entails meetings between the minister and top British business leaders including the CEO of Rolls-Royce, Tufan Erginbilgic, besides several other engagements with officials from the British Accreditation Authority.  

The Saudi delegation will also participate in a dialogue with members of the Asian House, which is a think tank interested in promoting trade exchange between Asia, the Middle East and Europe. 

Some of the other members who are part of the Saudi delegation include representatives from the ministries of trade, energy, investment, education, culture, tourism, and municipal and rural affairs and housing.

The Saudi Central Bank, the Public Investment Fund, the General Authority for Foreign Trade, the National Center for Competitiveness, and the Center Saudi Economic Business are also represented during the visit.  

Established in 2008, the Saudi-British Strategic Partnership Council aims to reinforce relations between the Kingdom and the UK. 

It also seeks to commit to a deeper and more strategic partnership to enhance the mutual interests of both countries. 


Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause
Updated 05 June 2023

Gold slips as firm dollar counters bets for Fed pause

Gold slips as firm dollar counters bets for Fed pause

BENGALURU: Gold slipped on Monday as the dollar firmed after strong US payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June, according to Reuters.

Spot gold was down 0.2 percent to $1,944.59 per ounce by 12:46 p.m. Saudi time, close to its lowest level since May 30. US gold futures shed 0.6 percent to $1,958.60.

“Gold bulls’ shoulders slumped after yet another red-hot headline nonfarm payroll print fueled a rebound in the dollar,” said Han Tan, chief market analyst at Exinity.

“For the immediate term, spot gold is testing its 100-day moving average for support.”

Gold dropped more than 1 percent on Friday after data showed the US economy added 339,000 jobs last month, above estimates of 190,000.

On Monday, the dollar index was up 0.2 percent, making greenback-priced bullion less affordable for overseas buyers. 

Benchmark US yields meanwhile were near a one-week high.

But providing a floor for bullion prices, the chances of the Fed holding interest rates at their current level at its June 13-14 meeting were pegged at 79.4 percent, according to the CME FedWatch Tool.

Non-interest-bearing bullion tends to become less attractive in a high-interest rate environment.

“To see higher gold prices, we need to see the Fed getting more dovish, which likely requires weaker economic data,” said UBS analyst Giovanni Staunovo.

Global shares rose as investors bet on a rate-hike pause and after Saudi Arabia pledged the biggest reduction in its oil output in years.

Silver fell 0.4 percent to $23.50 per ounce, platinum rose 0.6 percent to $1,009, and palladium gained 0.3 percent to $1,424.15.

Amid prospects for an economic slowdown in Europe and the US, an extended period of softening industrial demand could remove some support for silver prices from factors such as growth in solar cell production, Heraeus said in a note.


Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad
Updated 05 June 2023

Saudi Arabia to build commercial project worth $1bn in Baghdad

Saudi Arabia to build commercial project worth $1bn in Baghdad

RIYADH: Saudi Arabia has signed a contract with Iraq to establish a commercial project worth $1 billion in Baghdad, bolstering the economic ties between the two nations, reported the Iraqi News Agency. 

Abdulaziz Al-Shammari, the Saudi ambassador to Iraq, revealed that the Kingdom inked a contract with Iraq to develop a massive commercial project near Baghdad International Airport, according to the INA. 

Dubbed Baghdad Avenue, the project is expected to become the largest shopping mall in Iraq, encompassing coffee shops, restaurants and commercial offices. Additionally, it will house 4,000 apartments and 2,500 villas. 

“Baghdad Avenue will be a distinguished project and a surprise to all Iraqis. It is the largest mall in Iraq and will include cafes and restaurants with large areas and commercial offices for major Iraqi companies,” Al-Shammari said.
“Iraqi and Saudi relations are witnessing a wonderful stage,” he added. 

Al-Shammari highlighted the recent visit of the King Salman Medical Center’s team to Baghdad, stating that the knowledge exchange between Iraqi and Saudi doctors epitomizes the strong relations between the two countries. 

“Today, we started reaping its real fruits through the visit of the King Salman Medical Center team to Baghdad, which is the first specialized and practical visit through which we witness the exchange of experiences between the best-skilled doctors in the Kingdom, as well as the best Iraqi doctors, to exchange experiences in fields and subspecialties, which is the first fruit,” he said. 

Al-Shammari also noted that both countries would soon host meetings featuring economic and cultural discussions. He stated: “The subsequent phase will witness significant momentum in activities occurring between the two nations.” 

In March, Saudi Public Investment Fund created a new company to invest in various industries across Iraq, with a capital of $3 billion. 

The Saudi-Iraqi Investment Co. will invest in infrastructure, mining, agriculture, real estate development and financial services, CEO Muteb Al-Shathri said during the Saudi-Iraqi Coordination Council held in the Kingdom. 


Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision
Updated 05 June 2023

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

Oil Updates — crude prices up on Saudi Arabia’s production cut decision

RIYADH: Oil prices were up nearly $1 a barrel on Monday after Saudi Arabia pledged to cut production by another 1 million barrels per day from July. 

Brent crude futures were at $77.07 a barrel, up 94 cents, or 1.23 percent, at 9:05 a.m. Saudi time, while US West Texas Intermediate crude climbed 96 cents or 1.34 percent to $72.70 a barrel. 

The contracts extended gains of over 2 percent on Friday after the Saudi energy ministry said the Kingdom’s output would drop to 9 million barrels per day in July from around 10 million bpd in May. The cut is Saudi Arabia’s biggest in years. 

The voluntary cut pledged by Saudi on Sunday is on top of a broader deal by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to limit supply into 2024 as the group seeks to boost flagging oil prices. 

OPEC+ pumps around 40 percent of the world’s crude and has cuts of 3.66 million bpd in place, amounting to 3.6 percent of global demand. 

Russia fully enforces its oil output cuts, Novak says 

Russian Deputy Prime Minister Alexander Novak told Rossiya-24 TV channel on Sunday following a meeting of the OPEC+ group that Russia is fulfilling its oil output cut obligations. 

“The result of the discussions was the extension of the deal until the end of 2024,” Novak said. 

Separately, Novak’s office said that Russia would tweak its crude oil production level to 9.828 million bpd from Jan. 1, and considering earlier announced additional voluntary reduction of 500,000 bpd, its output target will stand at around 9.3 million bpd. 

Novak also said the market is more or less balanced, and demand is rising. However, the group would monitor interest rate decisions by global central banks, including the US Federal Reserve, for clues on the economy that could influence fuel consumption. 

“That’s the indicator (interest rate decisions), which is having an impact on investments, on demand for oil and oil products,” he said. 

Novak also said that OPEC+ could adjust its decisions if necessary. 

He said the data from secondary sources related to the OPEC+ voluntary cuts starting from May would emerge in the middle of this month. 

(With input from Reuters) 


UAE’s non-oil outlook positive despite slight PMI dip in May  

UAE’s non-oil outlook positive despite slight PMI dip in May  
Updated 56 min 31 sec ago

UAE’s non-oil outlook positive despite slight PMI dip in May  

UAE’s non-oil outlook positive despite slight PMI dip in May  

RIYADH: The UAE’s non-oil private sector growth outlook remained positive in May, even as the seasonally adjusted S&P Global Purchasing Managers’ Index fell to 55.5 compared to 56.6 in April. 

The S&P Global report noted that improved operating conditions drove business confidence to its strongest levels since October 2021.    

According to the index, PMI readings above 50 show non-oil private sector growth, while those below 50 signal contraction.    

“The UAE PMI pointed to another strong performance across the non-oil sector midway through the second quarter of 2023. Despite slipping from April’s six-month high of 56.6, the latest headline reading of 55.5 signaled a robust improvement in business conditions, driven by marked upturns in activity and new work,” said David Owen, senior economist at S&P Global Market Intelligence.    

He added: “The Future Output Index showed optimism rising to the highest level since October 2021, with firms pinning their hopes on projections that the strong demand momentum will continue.”   

Egypt’s May non-oil PMI rises to 47.8 

Egypt’s non-oil private sector growth outlook witnessed its softest downturn in 15 months as efforts to stabilize the demand environment paid off.   

While remaining below the 50 mark, the country’s PMI increased for the second month in a row, going from 47.3 in April to 47.8 in May, showed the report. 

Despite the adverse effects of higher prices on sales, output and purchasing, companies indicated that inflationary pressures were gradually alleviating.   

However, the S&P noted that the North African country still experienced a significant contraction in activity levels. In addition, non-oil companies continued to face difficulties, resulting in a gloomy outlook for activity and yet another reduction in employment.   

“The Egypt PMI remained in negative territory in May but showed further promise that current economic headwinds were beginning to dissipate. The headline index rose for the second month running to 47.8, while the two main sub-indices of output and new orders rose to their highest levels in 17 and seven months, respectively,” stated Owen.   

Qatar’s non-oil PMI grows for 6th time in 7 months 

Qatar exhibited yet another improvement in its non-energy growth for the sixth time in seven months, according to the S&P Global report.   

Hitting a PMI of 55.6 in May from 54.4 in April, the country recorded its biggest improvement in business conditions since July of last year.   

The main driver of the PMI increase was a surge in output and new orders, while employment and stocks of purchases also played a role.   

Yousuf Al-Jaida, CEO of the Qatar Financial Center Authority, said: “Qatar’s non-energy private sector remained on an upward growth trajectory in May, as inflows of new business accelerated in part due to tourism and demand for financial services.” 

“The sub-indices for output (59.6) and new orders (60.1) boosted the headline PMI to a 10-month high of 55.6, well above the long-run trend level since 2017 of 52.3,” he added.   

Al-Jaida further noted that financial services remained on top in terms of performance. These firms also increased their charges, compared to the slight change across the rest of the non-oil sector.   

The report showed that the rate of purchase price inflation has risen to its highest level in almost two years, suggesting that increasing input demand is reflected in prices.   

“Supply chains were able to cope with greater demand, as lead times on inputs fell further during the month,” said Al-Jaida.