JAKARTA: A global sugar surplus will keep prices under pressure for the foreseeable future, although the commodity is unlikely to trade below 15 US cents per pound, an official from the International Sugar Organization (ISO) said.
Benchmark New York futures SBc1 plunged to a three-year low of 15.93 cents a pound in July on the prospect of a bumper crop in Brazil. Even though forecasters have since trimmed their predictions for the world’s top producer, it is still expected to rack up record output, and prices last stood at $16.47.
“There is bearish pressure on prices, at least until we see how this 13/14 season goes on. (But) personally, I don’t think prices will go below 15 cents,” ISO Executive Director Peter Baron said on the sidelines of an industry conference.
Other sources at the event on the Indonesian island of Bali said that low prices could prompt key producers to cut output or curb sales, slightly easing the downward price-momentum.
Patches of demand will also help rein in price losses.
Indonesia’s raw sugar imports could more than double to 5.4 million tons in 2013 from 2.5 million tons last year after heavy rains hit domestic output and due to rising consumption and population growth.
“Total imports could reach 5.4 million tons as there is a weather anomaly and there’s no increase in plantation areas,” Achmad Widjaja, secretary general of the Indonesian Sugar Association, said at the event.
And on the supply-side, Brazil’s leading forecaster Datagro is expected to lower its 2013/14 cane crush forecast for the key center-south region as well as estimates for Brazil’s sugar crop due to a July frost.
A senior industry official said a sluggish global market could encourage Brazilian growers to produce more ethanol.
“Sugar prices need to go up for Brazilians to sell sugar, otherwise Brazilians are going to sell only ethanol,” he said.
The ISO said last week it expected the sugar surplus to slide to 4.5 million tons in 2013/2014 from 10.3 million tons in 2012/2013. World sugar output is predicted to fall by 2.1 million tons year-on-year to 180.8 million tons in the season from October 2013 to September 2014, the group said in its latest quarterly report.
Sugar surplus to keep prices under pressure
Sugar surplus to keep prices under pressure
ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
- First agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities
- ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp.
RIYADH: Saudi utility giant ACWA Power signed four agreements valued at SR6.69 billion ($1.78 billion) on the first day of the eighth Future Investment Initiative in Riyadh.
The deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa, highlighting the company’s expanding global reach.
The first agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities, supporting ACWA Power’s project pipeline in Saudi Arabia, Kuwait, and other target markets.
Additionally, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund two solar projects in Uzbekistan.
“These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors,” said Marco Arcelli, CEO of ACWA Power.
Uzbekistan has become a key market for ACWA Power, which has been active in the Central Asian nation’s renewable energy sector in recent years.
Located in Samarkand, the Sazagan 1 and 2 projects each include 500 megawatts of solar photovoltaic and 334 MW of battery energy storage systems. ACWA Power noted that both projects are expected to commence commercial operations between the third quarter of 2025 and the fourth quarter of 2026.
The company also signed a joint development agreement with Gotion Power Morocco, a battery solutions provider. Under this agreement, ACWA Power will develop a 500 MW wind power plant incorporating a 2,000 MWh battery energy storage system.
The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, slated to start production in the first half of 2026. The initial investment for the project is $800 million.
ACWA Power also signed a $54 million research and development agreement with China’s Lujiazui Administration Bureau to establish an R&D center in Shanghai. The center will focus on advancing technologies in solar, wind, energy storage, green hydrogen, and desalination.
“Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future,” concluded Arcelli.
Oil Updates – crude hovers at 1-month low with supply drivers back in focus
- Brent inches up 0.5 percent, WTI up 0.6 percent
- Markets eye potential Israel-Hezbollah peace deal
- US crude inventories unexpectedly fall — API
NEW YORK/SINGAPORE: Oil prices held at more than one-month lows, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in US fuel stocks.
Brent crude futures gained 38 cents, or 0.5 percent, to $71.50 a barrel by 7:51 a.m. Saudi time. US West Texas Intermediate crude futures rose 43 cents, or 0.6 percent, to $67.64 per barrel.
Prices fell for a second straight session on Tuesday when an Axios reporter said on X that Israeli Prime Minister Benjamin Netanyahu would hold an imminent meeting with several ministers, the heads of the military and intelligence community about talks on a diplomatic solution to the war in Lebanon.
A deal that would end the fighting between Israel and Hezbollah could be achieved within a few weeks, Israeli and US officials said, according to Axios.
“A hefty plunge in oil prices since the start of the week may call for an attempt to stabilize in today’s session, but overall gains remain limited, given the lack of bullish catalysts to drive a more sustained up-move,” said IG market strategist Yeap Jun Rong in an email.
“A ceasefire deal in the Middle East is on the table, which reduces the risks of a wider escalation impacting oil production, while we still have OPEC+ unwinding of production cuts on the horizon,” he added.
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December. The group has cut output by a total of 5.86 million bpd, equivalent to about 5.7 percent of global oil demand.
Attention in oil markets was likely to shift back to OPEC, given the planned output raise from December, while weak demand in China would also be in focus, ANZ analysts said in a client note.
Meanwhile, US crude oil and fuel stocks fell last week, market sources said on Tuesday, citing American Petroleum Institute figures.
Crude stocks dipped by 573,000 barrels in the week ended Oct. 25, the sources said on condition of anonymity. Gasoline inventories lost 282,000 barrels, and distillate stocks fell by 1.46 million barrels, the sources said.
Nine analysts polled by Reuters had expected a 2.2 million-barrel rise in crude inventories.
Official US government data is scheduled to be released later on Wednesday.
Prince Khaled bin Alwaleed reveals 5 investments in health technology
- Announcement made during Future Investment Initiative in Riyadh
RIYADH: Saudi venture capitalist Prince Khaled bin Alwaleed announced five new investments during the Future Investment Initiative in Riyadh on Tuesday.
Prince Khaled explained exclusively to Arab News that the five new portfolio companies were focused on the medical technology and health technology sectors.
The royal investor also emphasized his company KBW Ventures’ alignment with Saudi Arabia’s deployment of capital in bioscience and biotechnology.
He said: “We actually have a long footprint in biosciences, but the focus on health technologies and medtech was relatively small until the past 18 months.
“One of our first investments in this health space years ago was a Canadian company that is refining the allergy testing experience, a next-gen solution.
“We haven’t disclosed any of these five publicly yet, and there’s more in the pipeline that we are in the due diligence process for now.”
Three of KBW’s new ventures — Truelli, Qvin, and CytoSPAR — specialize in different types of diagnostics using advanced proprietary technology.
NeuroPlan is an app that aims to democratize neurological insights by helping users to track and improve cognitive capacity, while the fifth company, Rula Health, is a telehealth startup seeking to address mental health issues.
Prince Khaled added that KBW Ventures, aligned with the Saudi government’s focus on improving the overall health of its population, was also assessing several other businesses for potential investment that aimed to slow the aging process and improve lifespan.
He said: “I’ll be in a conclave around healthy aging solutions at FII addressing technologies that we are looking at in the longevity sector.”
The prince, who is a vegan and fitness aficionado, stressed that early disease detection, prevention, and personalized medicine were all areas that captured both his attention and capital.
During his panel discussion Prince Khaled noted that while KBW Ventures previously focused on early-stage investments, the firm has now moved into growth stage funding.
He said: “A survey of US companies that raised Series A funding and went on to close Series B saw an average of 28 months between rounds; it hasn’t been like that since 2012.”
KAUST is at the forefront of sustainable development in Saudi Arabia, says Byrne
RIYADH: King Abdullah University of Science and Technology places a strong emphasis on sustainability, actively advancing carbon capture initiatives and coral reef protection in Saudi Arabia, according to its president.
Speaking to Arab News on the sidelines of the Future Investment Initiative event, Edward Byrne highlighted KAUST’s role in attracting foreign direct investments into the Kingdom through its research and development efforts.
“Sustainable development is at the heart of KAUST. There are incredibly exciting projects underway in a whole range of areas. But the work at KAUST, led by Carlos Duarte and his colleagues, is rejuvenating the fantastic coral reefs in the Red Sea with great success,” Byrne stated.
He further expressed enthusiasm for the university’s collaboration with Aramco on carbon capture, noting, “I am also very excited about the carbon capture work with Aramco, which is showing huge promise. We’re going to need more fossil fuel for many years, so I think this is really important for the environment.”
Byrne also mentioned KAUST’s expertise in sophisticated supercomputing, which will aid the Kingdom in managing large data sets. In November, KAUST unveiled Shaheen III, described as the most powerful supercomputer in the Middle East, according to the TOP500 report, which tracks supercomputer performance. This system is anticipated to play a crucial role in developing and testing predictive mathematical models.
Discussing how KAUST contributes to Saudi Arabia’s economic growth through foreign direct investment and partnerships, Byrne said: “You can’t build a solid house without bricks. And the scientific advances in KAUST are some of the major bricks. It will help build the economy of the nation. Our job now is to translate that brilliant science in so many areas—water, agriculture, health, environment, energy — into new companies, into new businesses for the Kingdom, and we are on the journey.”
Byrne emphasized that KAUST is a leading research powerhouse, translating its efforts into practical outcomes in vital areas for the Kingdom, including human health, innovative desalination methods, and genetically modified crops.
He explained that KAUST conducts its research in partnership with both government and commercial entities. “KAUST cannot do things in isolation. Many have been done in partnership with government departments in Saudi Arabia, but many have been done in commercial partnerships, both with large companies like Aramco, who are still our number one commercial partner, and with many spinoffs. There are over 400 spinoffs now operating in the Kingdom in all of these areas,” Byrne noted.
Additionally, the KAUST president highlighted the university's role in strengthening the private sector in Saudi Arabia by encouraging young graduates to become entrepreneurs. He mentioned that KAUST is equipping students with advanced technologies, including artificial intelligence, to meet the demands of the modern workforce.
“Even employers don’t fully understand the skill set that people will need, and the knowledge base they will need ten years from now in their industries. So, we are working to help understand that, unravel it, so we can make sure that Saudi Arabia is on the crest of the wave in how we’re educating our young people here,” Byrne said.
Diriyah Co. set to launch eight new hotels as part of $62.2bn giga-project
RIYADH: Saudi developer Diriyah Co. is set to break ground on eight new hotels in November, according to the firm’s CEO.
Speaking to Arab News during the Future Investment Initiative, which is taking place in Riyadh from Oct. 29 to 31, Jerry Inzerillo shared details about the new accommodations, including the Baccarat Hotel, the Corinthia Hotel, and the Armani Hotel.
This initiative is part of a $62.2 billion giga-project backed by the Public Investment Fund, designed to create a lifestyle destination that celebrates Saudi culture and heritage, while positioning the Kingdom as a premier destination for tourism and leisure.
“Today, before we announce it in November, I’m giving you the scoop because we’re groundbreaking next month, eight new hotels,” Inzerillo said.
He elaborated on the projects, stating, “So, groundbreaking the Baccarat Hotel, the new Corinthia Hotel, the new Armani Hotel, beautiful, the new Fusion Hotel from Paris, the new Rosewood Hotel, the new Raffles Hotel, the new Ritz-Carlton, and the new Address. So, we’ll groundbreaking all of that.”
Inzerillo also mentioned the upcoming opening of the Bab Samhan Marriott Luxury Hotel for guests in November.
“So, all of a sudden now, our hospitality practice is really coming into full swing. I believe that by the time we get to Founding Day, we will have broken 3 million people visiting the UNESCO World Heritage Site,” he said.
“We have sold out the Ritz-Carlton residences. We’ve sold out the Oberoi residences. We’re selling a lot of the farms in the Wadi’s Safar. We’ve opened community centers; we’ve opened our sales center; we’re getting ready to open our new Zallal, which is going to be fabulous, at the end of March, April. So, we’re so happy because we’re on time and on budget with 40,000 construction workers on the job as of today,” he added.
In discussing the locations of the new hotels, Inzerillo noted that Diriyah encompasses a complete historical zone.
“What we’re going to announce next year with us together is our spectacular new boulevard like the Champs-Elysees, same length, 1.9 km. We’re going to be revealing it next year,” he said.
“But the hotels that I mentioned are all in historical Diriyah; some are at King Salman Square, some are up by the industrial site,” he added.
Inzerillo anticipates that most of the hotels will be fully operational and ready for tourists by 2027. This timeline is primarily due to the extensive infrastructure work required to make historical Diriyah a 4 km walkable, pedestrian-friendly city akin to Florence, which involved building 10 million cubic meters of infrastructure underground.
“That took us three years. It took two years to engineer and design it. But now, by the end of 2025, that will be all capped off, and then the buildings can come up very quickly. So today is also not just about quantity but about quality,” the CEO added.
He also highlighted a key distinction: While Riyadh is growing and requires a diverse range of hotels, Diriyah will focus exclusively on four- and five-star accommodations.
“So, we don’t have big convention hotels. We don’t have 800-room hotels. So, most of the hotels in terms of size range from 50 rooms to 250 rooms,” Inzerillo noted.
Regarding climate control in the walkable areas, the CEO shared that 60,000 parking spots are air-conditioned and cool, with 6,000 already operational and profitable.
“Now, if you want to park your car, keep it cool and then come up, you can come up into the walkable area,” Inzerillo explained.
He added that the buildings will feature a mud color, with close corridors for added shade.
“But then we have heat mitigation. We’ll be putting cooling under the floors, cooling on the roofs, you know, misting. So, the blowing of air, the supply of air,” he said.
“Historical Diriyah is 50 meters above the Wadi. So, Diriyah is always 5 to 7 degrees cooler than the rest of Riyadh. So, we’re hoping, you know, this summer June, July, and August is quite hot, but all the restaurants are indoor, outdoor, all the hotels are indoor, outdoor. So, Diriyah, it will be ready and enjoyable and programmable every single day of the whole year,” the CEO stated.
On the topic of investment, Inzerillo revealed that the developer signed three deals on the first day of the forum.
“This morning, it’s interesting because I had an Italian developer that we’re doing a $200 million deal with, a Colombian investor that we’re doing a $100 million deal with, and an Emirati investor that we’re doing a $200 million deal with,” he said.
This surge in investment is linked to significant growth across the Kingdom, especially in cities like Riyadh, Jeddah, Makkah, Madinah, and Dammam, attracting considerable foreign and Gulf investment.
Inzerillo shared further details about the agreements: “Two of the deals, two of the conglomerates were only interested in hotels. So now we, as the developer, will build the 42 hotels with the management companies, and then they will take out the equity; they will own the hotels.”
He continued: “One of the other deals today was for residences, 138 residences. So, we will co-develop as developers, but they will own the residential complex.”
Looking ahead, Inzerillo said: “When we welcome people from all over the world for the largest expo ever planned, 2030, historical Diriyah, it will be basically finished.”
He added: “By that time, we will have over almost 30,000 staff that will be predominantly Saudi workers and leaders.”
The CEO emphasized that Diriyah and the Kingdom would be ready to welcome millions of visitors by then.
