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Riyadh, Seoul strengthen defense ties with quality assurance deal 

The deal, signed on Feb. 18 during the International Defense Exhibition and Conference in Abu Dhabi, underscores growing ties between the two nations in defense and technology. SPA
The deal, signed on Feb. 18 during the International Defense Exhibition and Conference in Abu Dhabi, underscores growing ties between the two nations in defense and technology. SPA
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Updated 18 February 2025
MOHAMMED AL-KINANI
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Riyadh, Seoul strengthen defense ties with quality assurance deal 

Riyadh, Seoul strengthen defense ties with quality assurance deal 
Updated 18 February 2025
MOHAMMED AL-KINANI
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JEDDAH: Saudi Arabia and South Korea have signed a government quality assurance agreement to strengthen defense cooperation and boost their military capabilities and long-term industrial development. 

The deal, signed on Feb. 18 during the International Defense Exhibition and Conference in Abu Dhabi, underscores growing ties between the two nations in defense and technology. 

Saudi Arabia’s General Authority for Military Industries signed the deal with South Korea’s Defense Acquisition Program Administration in the presence of GAMI Gov. Ahmad bin Abdulaziz Al-Ohali and Korea’s Defense Minister Seok Jong-gun. 

The deal is part of an ongoing effort by both nations to bolster their respective defense industries, with an emphasis on mutual national interests. It also signals a commitment to expanding cooperation in the field of defense products and services, including the exchange of best practices and expertise. 

In a post on his X account, Al-Ohali said: “Today, as part of the Saudi pavilion’s participation in the International Defense Exhibition and Conference, I met with His Excellency the Minister of Defense Acquisition Program Administration of Korea, Seok Jong-gun, where we signed a cooperation agreement in the field of government quality assurance stemming from the basic agreement signed with the Korean side in 2019.” 

Saudi Crown Prince Mohammed bin Salman’s 2019 visit to South Korea led to the signing of an MoU aimed at strengthening defense and industrial partnerships, focusing on military acquisitions, research, and technology. 

Since then, defense ties between Saudi Arabia and South Korea have grown through several agreements.  

In February 2024, their defense ministers discussed closer collaboration, and at the World Defense Show, they signed an MoU to establish a joint committee for weapons research and development.  

This was followed by a $3.2 billion deal in September, with South Korea’s LIG Nex1 agreeing to supply Saudi Arabia with mid-range surface-to-air missile systems. 

On the sidelines of IDEX 2025, Al-Ohali also visited the Turkish pavilion, where he met with Haluk Gorgun, president of Turkiye’s defense industry agency. “We discussed the most important developments in cooperation and joint programs between the two countries in the military industries sector.” Al-Ohali said in another X post. 

The Saudi pavilion at IDEX 2025 highlights the Kingdom’s growing defense capabilities, showcasing locally developed technologies and emphasizing investment opportunities in the military, defense, and security sectors.  

The pavilion underscores Saudi Arabia’s commitment to sustainability and advancing military technologies, while also showcasing the role of qualified national experts in the defense sector. 

Topics: Saudi Arabia GAMI Defense

Oil Updates — prices rise as US vows to keep attacking Houthis

Oil Updates — prices rise as US vows to keep attacking Houthis
Updated 59 min 20 sec ago
Reuters
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Oil Updates — prices rise as US vows to keep attacking Houthis

Oil Updates — prices rise as US vows to keep attacking Houthis
Updated 59 min 20 sec ago
Reuters

SINGAPORE: Oil prices traded higher on Monday after the US vowed to keep attacking Yemen’s Houthis until the Iran-aligned group ends its assaults on shipping.

Brent futures rose 48 cents, or 0.7 percent, to $71.06 a barrel by 9:54 a.m. Saudi time, while US West Texas Intermediate crude futures rose 47 cents, also 0.7 percent, to $67.65 a barrel.

The US airstrikes, which the Houthi-run health ministry said killed at least 53 people, are the biggest US military operation in the Middle East since President Donald Trump took office in January.

One US official told Reuters the campaign might run for weeks.

Houthi attacks on shipping in the Red Sea have disrupted global commerce and set off a costly campaign by the US military to intercept missiles and drones.

Oil prices rose slightly last week, snapping a three-week losing streak fed by concern over a global economic slowdown driven by escalating trade tension between the US and other nations.

Both benchmarks pared some gains after rising more than 1 percent in early Asian trade as China reported a mixed start to the year. Industrial output slowed in January-February, while retail sales growth accelerated slightly, government data showed on Monday.

The state council, or cabinet, unveiled what it called a “special action plan” on Sunday in a bid to boost domestic consumption and economic recovery amid a burst of US trade tariffs against China, among key trading partners.

That effort has threatened to upset the global trade order.

Analysts at Goldman Sachs cut oil price forecasts, saying they expected the US economy to grow slower than expected, due to the tariffs imposed on countries such as Canada, China and Mexico.

“We reduce by $5 our December 2025 forecast for Brent to $71/bbl (WTI to $67), our Brent range to $65 to $80, and our 2026 average forecast to $68 for Brent (WTI to $64),” the analysts said in a note.

Oil demand was expected to grow at a slower pace than previously expected, while supply from the Organization of Petroleum Exporting Countries and its allies was expected to exceed forecasts, the Goldman analysts said.

US consumer sentiment plunged to a nearly 2-1/2-year low in March and inflation expectations have soared amid worries that Trump’s sweeping tariffs would boost prices and undercut the economy.

US Federal Reserve officials meeting next week are expected to leave the benchmark overnight interest rate in the range of 4.25 percent to 4.50 percent, having reduced it by 100 basis points since September, as they weigh the economic impact of the administration’s policies.

Topics: oil updates oil prices

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Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 

Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 
Updated 17 March 2025
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Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 

Pakistan sees uptick in economic activity as consumer spending surges in Ramadan 
  • Consumers flock to markets throughout Ramadan to buy fruits and vegetables in large quantities for evening iftar meals
  • Financial analyst says increased remittances, distribution of Zakat among masses in Ramadan also spurs economic activity 
Updated 17 March 2025
Ismail Dilawar

KARACHI: Khadeeja Manzoor haggled with a vendor at a busy market in Pakistan’s Karachi over the price of vegetables. The sight is not an unusual one in Pakistan, especially during the holy month of Ramadan, where people flock to fruit and vegetable markets in thousands daily to buy food items. 

Muslims break their fast with the evening iftar meal during the holy month of Ramadan, consuming dishes prepared with fruits and vegetables in large amounts. This triggers a surge in consumer spending significantly during the holy month, one that increases sales at grocery stores and marketplaces.

“Our spending increases during Ramadan,” Manzoor, 45, told Arab News. “They (actually) double because though the prices of vegetables have declined a bit, other things have become costlier,” she added. 

Pakistan has long grappled with an economic crisis that saw inflation surge to a historic 38 percent in May 2023. However, the government has since then achieved some economic gains, with the country’s monthly inflation rate dropping to 1.5 percent in February on a year-on-year basis.

Dry fruit seller Wasib Abbasi noted that people spent more on items such as Rooh Afza, a sugary drink considered a staple Ramadan diet, and dates during the holy month. This causes a surge in sales during Ramadan, he added. 

“Our sales remain normal during the first 15 days of Ramadan but significantly increase during the second half,” Abbasi, who runs a store selling dry fruits at the busy Empress Market, told Arab News. 

Financial analyst Muhammad Waqas Ghani agrees the increased demand for food items and the increased inflow of remittances to Pakistan during Ramadan supplements the country’s economic growth. He said Pakistan usually sees a rise of 20 percent in remittances during the holy month every year. 

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting its balance of payments. Overseas Pakistanis remitted $3.1 billion in February.

“Ramadan does have a significant economic angle. Demand rises in food, lifestyle, and other areas like footwear,” Ghani, the head of research at JS Global Capital Ltd., a commodities brokerage company, told Arab News. 

During Ramadan, commercial banks also deduct billions of rupees from people’s accounts on account of the annual Islamic charity, Zakat. 

Ghani said the circulation of Zakat funds among the masses also increases their purchasing power, which leads to more consumer spending. 

Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), a body of over 400 trade groups in the southern port city, described Ramadan as the “spring month” for traders and citizens alike in terms of both divine blessings and material gains.

“The way people come to bazaars with their children gives a good look,” Mir said, adding that trade “runs above normal” during the holy month.

“Given the size of its population, Karachi alone is a Rs100 billion market if people came out proportionately for Eid shopping only.”
 

Topics: Ramadan 2025 Pakistan economy

Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%
Updated 16 March 2025
Reem Walid
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Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%
Updated 16 March 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index saw a positive close on Sunday, gaining 127.90 points, or 1.09 percent, to settle at 11,853.78.

The benchmark index recorded a trading turnover of SR4.67 billion ($1.24 billion), with 207 stocks advancing and 35 declining.

Similarly, the Kingdom’s parallel market, Nomu, also posted gains, rising by 139.42 points, or 0.45 percent, to close at 31,275.27. In this market, 50 stocks rose while 30 saw declines. The MSCI Tadawul Index followed suit, gaining 15.52 points, or 1.05 percent, to close at 1,494.79.

Arriyadh Development Co. was the top performer of the day, with its share price soaring by 9.91 percent to SR36.05.

Other notable gainers included Saudi Research and Media Group, whose shares climbed 7.97 percent to SR189.60, and Banan Real Estate Co., which saw a 6.27 percent rise, closing at SR6.95.

On the downside, Saudi Paper Manufacturing Co. experienced the largest drop, falling 3.62 percent to SR58.50. Al-Baha Investment and Development Co. also saw a decline of 2.56 percent, with its shares ending at SR0.38.

Meanwhile, Tihama Advertising and Public Relations Co. saw a 1.84 percent decrease, closing at SR16.

Saudi Reinsurance Co. announced its annual financial results for the year ending Dec. 31.

The company reported a net profit of SR440 million for 2024, a remarkable 628 percent increase compared to 2023. This surge was primarily driven by capital gains from the sale of its stake in Probitas Holding, which amounted to SR365.9 million.

Additionally, the company’s board of directors recommended a 46.6 percent increase in capital by distributing 51.48 million bonus shares to shareholders, translating to four shares for every nine held.

The increase also includes 2.5 million shares allocated for a long-term incentive plan for employees, boosting the company’s capital by an additional 2.16 percent. Despite these strong results, Saudi Reinsurance Co. saw its share price dip by 0.53 percent, closing at SR48.10.

Najran Cement Co. also released its annual financial results for the year ending Dec. 31. The company reported a net profit of SR68.4 million for 2024, reflecting a 24.05 percent increase from 2023. This growth was driven by higher sales and improved gross margins, despite rising general and administrative expenses and finance costs. Najran Cement Co.’s stock rose by 3.34 percent, closing at SR8.75.

Topics: TASI NOMU MSCI stocks

Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects
Updated 16 March 2025
Miguel Hadchity
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Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects
Updated 16 March 2025
Miguel Hadchity

RIYADH: Saudi Arabia has unveiled a new environmental financing initiative worth SR1 billion ($266.6 million), supported by Riyad Bank, to encourage private sector participation in sustainable and eco-friendly projects.

Abdulrahman Al-Fadhli, Saudi Arabia’s minister of environment, water, and agriculture and chairman of the Environmental Fund’s board of directors, officially introduced the program on Sunday.

The launch coincided with the unveiling of a new digital platform for the Incentives and Grants Program, designed to foster innovation and boost environmental investments.

This initiative aligns with Saudi Arabia’s Vision 2030 objectives, which focus on promoting environmental sustainability and enhancing the quality of life.

Munir bin Fahd Al-Sahli, CEO of the Environmental Fund, emphasized that the financing program is aimed at attracting private sector investments to strengthen environmental infrastructure and meteorological services. He also noted that the program will encourage businesses across various sectors to adopt sustainable practices through innovative financial solutions.

Al-Sahli described this partnership as a major step forward in funding environmental projects, highlighting that the new platform would offer incentives and support for outstanding environmental initiatives. These efforts are part of a broader national strategy to protect the environment and foster sustainable development.

The financing program represents a significant milestone in enhancing environmental investments in the Kingdom. It provides businesses and entrepreneurs with resources and incentives to develop projects that not only improve quality of life but also contribute to sustainable environmental growth.

The new electronic platform for the Incentives and Grants Program, which was launched alongside the financing initiative, is designed to streamline the process for beneficiaries and ensure efficient execution of environmental projects. The platform aims to promote eco-friendly practices, foster innovation, and encourage investment in the environmental sector, while also ensuring regulatory compliance across various industries.

Al-Sahli reiterated the fund’s commitment to offering both financial and technical support to ensure lasting positive impacts on the environment. He urged stakeholders in the environmental sector to explore the various opportunities available through the platform.

The Incentives and Grants Program is expected to drive investment in environmental projects and improve compliance levels among institutions. It will provide grants and incentives to a broad range of entities, including small and medium-sized enterprises, corporations, research centers, universities, and nonprofit organizations.

The Environmental Fund continues to develop and implement programs focused on protecting natural resources, reducing pollution, and raising environmental awareness. Through collaborations with government and private entities, it strives to balance economic growth with environmental conservation.

Topics: SaudiVision2030 environment

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 
Updated 16 March 2025
Nirmal Narayanan
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Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 
Updated 16 March 2025
Nirmal Narayanan

RIYADH: Saudi Arabia’s inflation held firm at 2 percent year on year in February, driven largely by rising housing costs, official data showed.  

According to the General Authority for Statistics, the increase was fueled by an 8.5 percent surge in housing rents, contributing to a 7.1 percent overall rise in the housing, water, electricity, gas, and fuels category. 

The inflation rate remains consistent with Saudi Arabia’s efforts to balance economic growth with price stability as the Kingdom advances its Vision 2030 strategy, which aims to diversify the economy beyond oil.   

The government’s November 2024 budget forecast anticipated inflation to hold steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. Meanwhile, the World Bank projected a stable 2.3 percent rate this year, below the Gulf Cooperation Council average. 

“On a monthly basis, the consumer price index in February 2025 recorded relative stability compared to January 2025, rising by 0.2 percent due to the increase of housing, water, electricity, gas, and other fuels section by 0.4 percent, driven by a 0.4 percent increase in actual housing rent prices,” said GASTAT.  

Sector breakdown 

Food and beverage prices saw a modest rise of 1 percent, largely influenced by a 3.7 percent increase in meat and poultry costs. Personal goods and services climbed 3.9 percent, bolstered by a 26.7 percent jump in jewelry prices. 

Restaurant and hotel costs edged up 0.8 percent year on year, while furniture and home equipment prices dropped 2.5 percent. Clothing and footwear prices declined 1 percent, led by a 2.4 percent drop in ready-made clothing. 

Transportation costs also dipped 1.5 percent compared to February 2024. 

On a monthly basis, consumer prices remained stable overall, with food and beverages slipping 0.2 percent. Personal goods and services rose 0.7 percent, while health and tobacco prices held steady. 

Wholesale Price Index  

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in February, driven by a 3.4 percent rise in other transportable goods prices and a 3.9 percent increase in agriculture and fishery products. 

Food products, beverages, tobacco, and textiles fell by 0.1 percent year on year, while metal products, machinery, and equipment prices dipped 0.5 percent. Ores and minerals costs dropped 1.9 percent. 

Compared to January, the WPI declined 0.5 percent, led by a 1.4 percent fall in other transportable goods prices, excluding metal products, machinery, and equipment. Food products, beverages, tobacco, and textiles also saw a marginal 0.1 percent drop, while agriculture and fishery product costs rose 1.6 percent. 

Topics: Inflation GDP prices

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