MOSCOW: Standing in a warehouse in a Moscow suburb, Dmitry Marinichev tries to speak over the deafening hum of hundreds of computers stacked on shelves hard at work mining for crypto money.
“The form of currency we are used to is about to disappear,” predicts the 42-year-old entrepreneur, who also works as President Vladimir Putin’s adviser on Internet matters.
Marinichev is one of Russia’s leading crypto-businessmen at the helm of operations in this facility larger than a football pitch located in a former Soviet-era car factory, which collects virtual money on the accounts of its clients.
Individuals, or firms like Marinichev’s, provide the computing power to run the so-called blockchain which records the world’s virtual money transactions. In return for providing that service they receive virtual money, of which bitcoin is the most popular, as payment — a process bitcoiners call “mining.”
Mining farms like this represent a growing craze in Russia for bitcoin and other virtual currencies not backed by governments or central banks that are increasingly used for goods and services on the Internet.
The hunt for virtual currencies is accessible “to anyone who may be hardly familiar with computer science,” Marinichev said. “It’s no more complicated than buying a cellphone and connecting to a mobile network.”
The practice has become so popular in Russia that computer stores in the country have run out of graphic and video cards developed for gamers but are used by bitcoin miners to boost the processing power of their home computers.
Marinichev this week unveiled a more sophisticated setup, inviting investors to pitch in $100 million to join a mining club and develop a Russian mining chip called Multiclet through his startup.
“The explosion of virtual currency value has made mining profitable enough to make it a professional activity,” said Sergei, a 29-year-old computer scientist who runs half a dozen graphics cards plugged into the electrical grid of the company where he works.
He launched his mining operation in March, when the value of bitcoin and its main competitor ethereum, created by Russian-Canadian Vitalik Buterin, reached record heights on the currency’s exchange.
Since the beginning of 2017, bitcoin has quadrupled in value, surpassing $4,000 at the weekend, while ethereum experienced a rise of 4,500 percent to hit a record of $374 in June, later falling to $268 in August.
While the assembly of a mining operation is easy enough, it consumes a large amount of electricity, which can reach the equivalent of several households’ needs.
“All my friends who were interested in Bitcoin or ethereum built their devices and plugged them into their corporate networks, and I did the same,” Sergei said. “Others cut into the municipal electrical cables.”
Russia has a competitive advantage as an environment for mining, as Marinichev points out in a brochure for prospective investors: Electricity here costs just 1.3 US cents per kilowatt hour while long winters save money on cooling systems.
Authorities in Russia were long suspicious of virtual money but have now come to recognize it as a force. A new bill is set to be debated this autumn which aims to regulate the possession and creation of crypto currency in the country.
The legal foundation for virtual money has so far been non-existent in Russia and it is associated with illicit activities like hacking and used to purchase drugs on the dark web.
“There is now an understanding at the highest level in the country that virtual currencies are not an absolute evil but a possible good, especially for the economy,” said Marinichev.
Putin in early June even held a meeting at an economic forum with Russia’s crypto-businessman Dmitry Marinichev’s virtual currencies mining farm, which he operates from a former Soviet-era car factory warehouse in Moscow.
Buterin, the 23-year-old creator of ethereum, lobbied the Russian president to expand the currency’s use in Russia.
Last year, Russia’s largest banks tested the platform for some of their transactions. The country’s central bank even pondered development of a “national virtual currency.”
Though at all-time-high in August at $116 billion, the global cryptocurrency market is still quite young, volatile and prone to speculation.
Bitcoin, for example, lost almost a third of its value between mid-June and mid-July, before gaining it back over the course of a week. Since then, it has been regularly breaking records.
“The rush to virtual money is not a fad or a fleeting phenomenon. The virtualization of our lives is a market process that has gone on and will continue,” Marinichev said.
In a sign of the times, several cafes and restaurants in Moscow this summer began to accept payments in virtual currencies.
Forget oil, Russia goes crazy for cryptocurrency
Forget oil, Russia goes crazy for cryptocurrency
Oil Updates — prices rise further as Israel-Iran extends into fourth day
HONG KONG: Oil prices extended gains Monday as Israel and Iran pounded each other with missiles for a fourth day and threatened further attacks, stoking fears of a lengthy conflict that could reignite inflation.
Gold prices also rose back toward a record high thanks to a rush into safe havens, but equities were mixed amid hopes that the conflict does not spread through the Middle East.
Investors were also gearing up for key central bank meetings this week, with a particular eye on the US Federal Reserve and Bank of Japan, as well as talks with Washington aimed at avoiding Donald Trump’s sky-high tariffs.
Israel’s surprise strike against Iranian military and nuclear sites on Friday — killing top commanders and scientists — sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.
Analysts also warned that the spike could send inflation surging globally again, dealing a blow to long-running efforts by governments and central banks to get it under control and fanning concerns about the impact on already fragile economies.
“The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise,” said Tony Sycamore, a market analyst at IG.
“While central banks would prefer to overlook a temporary spike in energy prices, if they remain elevated for a long period, it may feed through into higher core inflation as businesses pass on higher transport and production costs.
“This would hampercentral banks’ ability to cut interest rates to cushion the anticipated growth slowdown from President Trump’s tariffs, which adds another variable for the Fed to consider when it meets to discuss interest rates this week.”
Both main oil contracts were up around one percent in Asian trade.
But Morningstar director of equity research Allen Good said: “Oil markets remain amply supplied with OPEC set on increasing production and demand soft. US production growth has been slowing, but could rebound in the face of sustained higher prices.
“Meanwhile, a larger war is unlikely. The Trump administration has already stated it remains committed to talks with Iran.
“Ultimately, fundamentals will dictate price, and they do not suggest much higher prices are necessary. Although the global risk premium could rise, keeping prices moderately higher than where they’ve been much of the year.”
Tokyo closed 1.3 percent higher, boosted by a weaker yen, while Hong Kong reversed early losses and Shanghai, Seoul, Singapore and Wellington also advanced.
Taipei, Jakarta and Manila retreated while Sydney was flat.
London, Paris and Frankfurt were all higher in early trade.
Gold, a go-to asset in times of uncertainty and volatility, rose to around $3,450 an ounce and close to its all-time high of $3,500.
There was little major reaction to data showing China’s factory output grew slower than expected last month as trade war pressures bit, while retail sales topped forecasts.
Also in focus is the Group of Seven summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade in light of Trump’s tariff blitz.
Investors are also awaiting bank policy meetings, with the Fed and BoJ the standouts.
Both are expected to stand pat for now but traders will be keeping a close watch on their statements for an idea about the plans for interest rates, with US officials under pressure from Trump to cut.
The Fed meeting “will naturally get the greatest degree of market focus,” said Chris Weston at Pepperstone.
“The Fed should remain sufficiently constrained by the many uncertainties to offer anything truly market-moving and the statement should stress that policy is in a sound place for now,” he added.
In corporate news, Nippon Steel rose more than three percent after Trump on Friday signed an executive order approving its $14.9 billion merger with US Steel, bringing an end to the long-running saga.
Oil and gas important in times of conflict, Saudi Aramco CEO says
KUALA LUMPUR: The importance of oil and gas can’t be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco told an energy conference on Monday.
Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.
Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.
“(History has) shown us that when conflicts occur, the importance of oil and gas can’t be understated,” Nasser said.
“We are witnessing this in real time, with threats to energy security continuing to cause global concern,” he said, without directly mentioning the fighting between Israel and Iran.
Nasser also said that experience had shown that new energy sources don’t replace the old, but added to the mix. He said the transition to net-zero emissions could cost up to $200 trillion, and renewable sources were not meeting current demand.
“As a result, energy security and affordability have at last joined sustainability as the transition’s central goals,” he said.
Aramco is a key part of the Saudi economy, generating a bulk of the Kingdom’s revenue through oil exports and funding its ambitious Vision 2030 diversification drive.
ACWA Power advances $1.8bn capital increase plan to boost global expansion, says CFO
RIYADH: Saudi utility giant ACWA Power is moving forward with its SR7 billion ($1.8 billion) capital increase as part of a broader strategy to expand its footprint in energy transformation, water desalination, and green hydrogen production, according to its chief financial officer.
In an interview with Al-Ekhbariya, Abdulhameed Al-Muhaidib described the capital raise as a critical step to reinforce the company’s leadership both domestically and internationally in sustainable infrastructure.
ACWA Power’s investment portfolio currently stands at around SR400 billion, encompassing over 78 gigawatts of production capacity and more than 9.5 million cubic meters per day in water desalination capacity. In line with long-term objectives, the company’s board approved a plan two years ago to triple assets under management to over SR937.5 billion by 2030.
The initiative also aligns with Saudi Arabia’s national goal of achieving a balanced energy mix by 2030, targeting an equal split between gas and renewable sources for electricity generation.
“The company decided to increase its capital through a rights issue rather than expanding into debt markets, with the aim of strengthening its financial position and enhancing credit flexibility. A large portion of the proceeds will be used to expand its project portfolio both inside and outside the Kingdom,” said Al-Muhaidib.
He noted that 60 percent of ACWA Power’s current investments are located in the Kingdom, with the remaining 40 percent spread across international markets. Between 75 percent and 85 percent of the new capital will be allocated to greenfield projects, while acquisitions will account for no more than 20 percent.
“ACWA Power’s infrastructure projects rely primarily on debt, with shareholders’ equity covering 20 percent to 25 percent of the financing structure. The company will continue this financing strategy while maintaining net debt at approximately SR20 billion, despite the significant growth expected through 2030,” he added.
Highlighting the company’s geographical expansion, Al-Muhaidib said ACWA Power added new projects worth SR34 billion in 2024 across Saudi Arabia, Egypt, Azerbaijan, Uzbekistan, and China.
He also pointed out the firm’s active presence in China, with more than 90 employees based in its Shanghai office to support growth in that market.
ACWA Power successfully achieved nine financial closings in 2024, amounting to SR34.6 billion. The CFO said a dedicated internal team has been established to streamline project execution from inception to operation.
He confirmed that the Capital Market Authority has approved the capital increase, with the final offering price set to be announced during the company’s general assembly on June 30.
“Seventy-seven percent of shareholders have submitted their subscription pledges,” Al-Muhaidib noted, adding that the high participation rate underscores investor confidence in the company’s long-term strategy.
ACWA Power reported a net profit of SR1.75 billion in 2024, a 5.74 percent increase year on year, according to a Tadawul filing issued in February. The gain was attributed to higher revenues from operations and maintenance, increased electricity sales, and improved earnings from equity-accounted investees, capital recycling, and net finance income.
Closing Bell: Saudi main index retreats to 10,731.59
- Parallel market Nomu lost 393.70 points to settle at 26,404.44
- MSCI Tadawul Index dropped 11.64 points, closing at 1,380.40
RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Sunday, declining 109.35 points, or 1.01 percent, to close at 10,731.59.
Trading turnover reached SR5.15 billion ($1.37 billion), with only 25 stocks advancing while 233 declined.
The parallel market, Nomu, also ended the session in negative territory, losing 393.70 points, or 1.47 percent, to settle at 26,404.44. A total of 24 stocks rose while 70 registered losses. The MSCI Tadawul Index dropped 11.64 points, or 0.84 percent, closing at 1,380.40.
Saudi Research and Media Group led the day’s gainers, with its share price climbing 9.89 percent to SR155.60. Dr. Sulaiman Al Habib Medical Services Group rose 3.82 percent to SR261, and Jazan Development and Investment Co. advanced 3.32 percent to SR10.28.
On the losing side, MBC Group Co. posted the steepest decline, falling 9.99 percent to SR36.95. Modern Mills for Food Products Co. slipped 6.66 percent to SR30.85, while Wafrah for Industry and Development Co. dropped 6.27 percent to SR26.15.
On the announcements front, Tabuk Agricultural Development Co. signed an agreement with the National Electricity Transmission Co., a subsidiary of Saudi Electricity Co., under the Kingdom’s Liquid Displacement Program.
The project aims to cut emissions by replacing liquid fuels used in power generation at the company’s facilities with electricity, while improving operational reliability without imposing significant financial burdens.
Separately, Professional Medical Expertise Co., also known as ProMedEx, signed a memorandum of understanding with Zhende Medical Co., Ltd and MedSurg FZ-LLC to establish a joint manufacturing venture in Saudi Arabia.
The facility will produce medical supplies tailored to the domestic market and the wider region. Under the agreement, Zhende Medical will hold a 51 percent stake in the new entity, ProMedEx will own 35 percent, and MedSurg will hold the remaining 14 percent. Capital details will be disclosed at a later stage.
Oman residential property prices jump 7.3% in Q1 on land demand
- Jump driven by 6.5% rise in residential land prices
- Apartment prices rose 17% in May, while villas gained 6.4%
RIYADH: Oman’s residential property prices climbed 7.3 percent year on year in the first quarter of 2025, led by a sharp increase in residential land values, official figures showed.
According to data from the National Center for Statistics and Information, the jump was driven by a 6.5 percent rise in residential land prices, which form the largest component of the real estate index.
The gain reflects a broader regional upswing in property activity during early 2025. In the Kingdom, residential property prices rose 4.3 percent in the first quarter. The UAE continued to post strong gains, with Dubai prices climbing 16.5 percent and Abu Dhabi villa prices increasing 4.4 percent over the same period. In Qatar, real estate transactions reached 1.27 billion Qatari riyals ($350 million) in March alone.
Oman is working to ramp up housing supply as part of its Vision 2040 strategy, aiming to deliver 62,800 new residential units by 2030. Some 5,500 of these are expected to hit the market in 2025, according to consultancy Cavendish Maxwell.
NCSI data also showed strong momentum within individual property types. Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and prices for other residential units increased 2.2 percent. The overall residential real estate price index grew 5.5 percent quarter on quarter in the first three months.
On an annual basis, land prices climbed 5.5 percent, apartment prices rose 4.3 percent, and villa prices increased 4.5 percent. Other home types saw the steepest gains, rising 13.4 percent compared to the same period last year.
At the governorate level, Muscat led the price growth with a 17.4 percent increase in residential land values year on year in the first quarter. Musandam followed with a 12.8 percent rise, while Al-Batinah North and South recorded gains of 7.3 percent and 6.1 percent, respectively. Dhofar and Ash Sharqiyah South posted more moderate increases.
However, the gains were not uniform across the country. Al Buraimi saw residential land prices plummet 35.1 percent, followed by declines in Al Dhahirah at 25.3 percent, Al Wusta at 20.4 percent, Ad Dakhiliyah at 3.7 percent, and Ash Sharqiyah North at 0.8 percent.
Oman’s real estate market ended 2024 on a strong note, with total transaction values rising 28.1 percent year on year to 3.13 billion Omani rials ($8.13 billion) by November, according to NCSI.
In a bid to attract foreign capital and stimulate development, the sultanate has rolled out a series of reforms, including relaxed ownership restrictions for non-citizens and new tax incentives aimed at boosting investor confidence.
