LONDON: Riyadh’s $10 billion business hub, which has been under construction since 2006, will be given a fresh lease of life under the management of the Kingdom’s sovereign wealth fund, according to reports.
The Public Investment Fund (PIF) has finalized a deal to take over the management of the King Abdullah Financial District from the Public Pension Agency, Bloomberg reported, citing unnamed sources.
While details of the deal have yet to emerge, Hilmi Ghosheh, who acts as an adviser for PIF’s real estate projects, is reportedly set to manage the completion of the development.
The Saudi Vision 2030 economic reform plan outlines details for the rehabilitation of the capital’s financial district, which is to be an economic free zone with visa exemptions and a direct connection to the airport.
The first phase of the project is due to launch next year with plans to host the G-20 meeting there in 2020.
The government is now exploring new incentive options to attract financial institutions to occupy space in the district, Bloomberg reported. Decade-long tax breaks for banks are among the ideas circulating to help populate the 73-building development, which has been restructured to reduce office space and increase the number of residential units.
PwC and local regulator Capital Market Authority are among the companies due to take space in the area.
Saudi fund ‘to take over Riyadh financial district’
Saudi fund ‘to take over Riyadh financial district’
Oil Updates — prices dip on weak China data, but hopes for US-China trade deal support
- US, China to hold trade talks in London on Monday
- China’s May crude imports hit 4-month low — data
SINGAPORE: Oil prices slipped on Monday on weak China data, but held on to most of last week’s gains, as investors awaited US-China trade talks in London later in the day, hoping a deal could boost the global economic outlook and fuel demand.
Brent crude futures slipped 18 cents, or 0.27 percent, to $66.29 a barrel by 08:44 a.m. Saudi time. US West Texas Intermediate crude fell 15 cents, or 0.23 percent, to $64.43.
China’s exports growth slowed to a three-month low in May as US tariffs slammed shipments, data showed, while factory-gate deflation deepened to its worst in two years, heaping pressure on the world’s second-largest economy both at home and abroad.
The data also showed that China’s crude oil imports declined in May to the lowest daily rate in four months, as state-owned and independent refiners underwent widespread planned maintenance.
“Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,” said IG market analyst Tony Sycamore, referring to WTI prices.
“That said I would expect the reaction to be less extreme than usual, given US and China trade talks later today.”
Brent had advanced 4 percent, and WTI gained 6.2 percent, last week for their first weekly gain in three, as the prospect of a US-China trade deal boosted some investors’ risk appetite.
A US jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting gains last week.
The prospect of a China-US trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced on May 31 another big output hike for July.
HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank’s $65-per-barrel Brent forecast from the fourth quarter of 2025, it said in a research note on Friday.
Capital Economics researchers said they believe the “new faster pace of (OPEC+) production rises is here to stay.”
WTI’s discount to Brent has also been narrowing on a combination of increased OPEC+ output, modest US crude oil supply growth and the potential for output declines next year, ING analysts led by Warren Patterson said in a note.
The US benchmark strengthened on supply concerns after wildfires disrupted production in Canada and robust US fuel demand during the summer driving season.
The number of operating US oil rigs, an early indicator of future output, fell by nine to 442 last week, energy services firm Baker Hughes said on Friday.
Saudi ports post 13% rise in container volume in May: Mawani
- Imported containers rose 15.84% from a year earlier to 292,223 TEUs
- Exported volumes increased 9.38% to 279,318 TEUs
RIYADH: Saudi Arabia’s seaports handled 720,684 twenty-foot equivalent units in May, a 13 percent year-on-year jump, driven by growth in imports, exports, and transshipment activity, official figures showed.
According to data from the Saudi Ports Authority, also known as Mawani, imported containers rose 15.84 percent from a year earlier to 292,223 TEUs, while exported volumes increased 9.38 percent to 279,318 TEUs.
Transport, or transshipment, containers also climbed 12.89 percent to 149,143 TEUs, reflecting the Kingdom’s growing role as a regional trade hub.
The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the country. It also supports the goals of Saudi Arabia’s National Transport and Logistics Strategy, which seeks to position the Kingdom as a global logistics center under Vision 2030.
In a release, Mawani stated: “The total tonnage handled — general cargo, solid bulk cargo, and liquid bulk cargo — increased by 1.40 percent to reach 21,337,699 tonnes compared to 21,042,684 tonnes during the same period last year.”
It added: “The total general cargo amounted to 935,932 tonnes, solid bulk cargo 5,059,899 tonnes, and liquid bulk cargo 15,341,868 tonnes.”
The ports received 1.63 million heads of livestock, up 61.22 percent compared to 1.01 million during the same period last year.
Maritime traffic also picked up, with vessel calls rising 9.39 percent to 1,083 ships, while the number of passengers grew 68.15 percent to reach 95,231. The number of vehicles handled increased by 13.09 percent year on year to 84,352 units.
The positive momentum follows a strong performance in April, when Saudi ports handled 625,430 standard containers, up 13.4 percent from a year earlier.
In 2024, Mawani announced several major initiatives, including agreements and groundbreaking projects to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with a combined private sector investment of approximately SR2.9 billion ($773 million).
These efforts are part of a broader strategy to enhance the competitiveness of Saudi ports and reinforce the Kingdom’s position as a global trade and logistics hub.
The initiatives form part of a larger SR10 billion investment plan to develop 18 logistics parks across Saudi terminals, all overseen by Mawani.
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Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini
- Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, report says
- Global HNWI population increased by 2.6% year on year in 2024
RIYADH: Next-generation high-net-worth individuals consider the Middle East as their preferred investment destination, thanks to geopolitical security and economic stability, according to an analysis.
In its latest report, consulting firm Capgemini revealed that Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, thanks to the Vision 2030 economic diversification program.
The findings by the Paris-based company align with the views shared by Henley & Partners in April, which said that Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires.
According to Henley & Partners, more than 20,000 people with liquid investable wealth of $1 million or more are now based in the Saudi capital, while Jeddah is home to 10,400 millionaires.
According to Capgemini, the UAE is also capitalizing on this trend and is attracting international HNWI investors.
“Investors are targeting high-growth emerging economies for specific thematic investment options, tax regulation, economic and political stability, better wealth management services, and enhanced market connectivity. As a result of this search for geopolitical security and economic diversification, Asia and the Middle East have become appealing destinations,” said the report.
It added: “Singapore, Hong Kong, the UAE, and recently Saudi Arabia have established themselves as prime alternatives, utilizing advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.”
The analysis added that enhanced market connectivity and improved wealth management options are among the other crucial factors that make the Middle East a desirable investment destination among next-gen HNWIs.
Saudi focus
The report said the Kingdom “has introduced new residency programs aimed at HNWIs, positioning itself as a regional wealth hub.”
It added: “As global wealth patterns shift, Saudi Arabia is actively enhancing its legal and financial frameworks to compete with traditional wealth hubs.”
In 2019, Saudi Arabia introduced the premium residency visa option, which allows eligible foreigners to reside in the Kingdom and enjoy benefits such as exemption from expat and dependents’ fees, visa-free international travel, and the right to own real estate and operate a business without requiring a sponsor.
In January 2024, the Kingdom added five new products to its premium residency program. Under the new addition, the most notable one was the ability to own residential real estate assets worth a minimum of SR4 million ($1.07 million) within the Kingdom.
The rise in the number of HNWIs in Saudi Arabia coincides with the extensive Vision 2030 economic reform program launched in 2016.
Efforts to diversify the Kingdom’s economy have also included a push to attract international companies to establish their regional headquarters in Riyadh, and as of March, over 600 global firms have opened their regional base in Saudi Arabia.
Affirming the growth of Saudi Arabia, Knight Frank, in April, said that HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah.
The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the end of this decade.
Growth of Middle East region
The report also said the Middle East and Africa registered modest growth in HNWI wealth in 2024, gaining 0.9 percent and 4.7 percent, respectively, compared to the previous year.
In 2024, the HNWI population in the Middle East witnessed a decline of 2.1 percent, while it grew by 3.4 percent in Africa.
“In the Middle East, OPEC’s extension of oil production cuts and comparatively low oil prices, well below their peak in 2022, contributed to weak growth,” said Capgemini.
Global outlook
According to the report, the global HNWI population increased by 2.6 percent year on year in 2024.
Capgemini said the increase was driven by the growth in the population of ultra-HNWIs — those who hold at least $30 million in assets — which grew by 6.2 percent, as strong stock markets and artificial intelligence optimism boosted portfolio returns.
North America saw the biggest gains, with the HNWI population rising by 7.3 percent.
Europe’s HNWI population declined 2.1 percent due to economic stagnation in major countries like the UK and France, while Latin America also witnessed a drop of 8.5 percent, due to currency depreciation and fiscal instability.
Asia-Pacific’s HNWI population increased 2.7 percent year on year in 2024.
Within the largest individual markets, the US topped the list, adding 562,000 millionaires as the country’s HNWI population grew by 7.6 percent to 7.9 million.
India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires, respectively, last year.
The HNWI population in China declined by 1 percent.
Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week
- Benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment
- Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week
RIYADH: The Muscat Stock Exchange extended its rally for a fifth consecutive week, with market capitalization rising to 28 billion Omani rials ($72.8 billion) in the week ending June 7.
Driven by gains in key services and industrial stocks, the benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment and increased activity across sectors, the Oman News Agency reported. The bourse recorded a weekly market capitalization gain of 79.3 million rials.
This comes as markets across the Middle East and North Africa rallied in early 2025, with the Arab Monetary Fund’s May report showing its Composite Index rising 4.37 percent year on year, supported by reforms to boost liquidity and attract foreign investment.
“Last week witnessed a good performance for the stock market, with 34 securities rising, 30 declining, and 17 remaining stable,” the Oman News Agency report stated.
It added: “Muscat Gases recorded the highest increase, rising 18 percent to close at 118 baisas. Galfar Engineering and Contracting rose to 72 baisas, up 9 percent. National Gas recorded an 8.8 percent increase to close at 86 baisas.”
National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co., which operates in the bottling and distribution of liquefied petroleum gas in Dhofar Governorate. The acquisition is expected to strengthen its presence in Oman’s LPG market and boost group-level revenues and net profits.
Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week, while average daily transactions climbed to 2,149 from 1,787. The trading week was shortened to four days due to the Eid Al-Adha holiday, with the exchange set to resume operations on June 10.
The services sector led gains, with its index rising five points on the back of strong performances from Ooredoo, Omantel, and OQ Gas Networks. In contrast, the industrial index fell 17 points, the financial index dropped 10 points, and the Shariah index edged lower by less than one point.
Last week, investors concentrated on OQ Base Industries shares, which traded 10.584 million rials — 24 percent of the total 44 million rials traded. The stock saw 1,678 transactions and closed at 122 baisas, up 4 baisas.
Bank Muscat’s shares recorded 5.48 million rials in trades, accounting for 12.4 percent of the total trading value. OQ Gas Networks ranked third, with trades worth approximately 5.1 million rials.
Sohar International Bank was fourth, with trading valued at 5.03 million rials. OQ Exploration and Production came fifth, with trades totaling 4.30 million rials, representing 9.7 percent of the total trading value.
GCC exceeds global average in 2024 Carbon Circular Economy Index
- Region’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies
- Expansion reflects increased investments in solar, wind, and other clean energy projects
RIYADH: Gulf Cooperation Council countries have outperformed the global average in the 2024 Carbon Circular Economy Index, scoring 41.5 points, latest data showed.
Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions through a balanced approach that incorporates mitigation technologies and enabling tools.
It also measures their transition to a carbon-neutral future based on circular economy principles, the Oman News Agency reported.
The GCC’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies.
Its push toward a circular carbon economy aligns with broader economic diversification goals, as the region seeks to reduce its reliance on hydrocarbons while tackling environmental challenges.
“The contribution of the design capacity of renewable energy plants in the GCC countries to the total design capacity of renewable energy plants worldwide also increased, reaching 0.43 percent in 2024, compared to 0.03 percent in 2015,” the ONA report stated.
This expansion reflects increased investments in solar, wind, and other clean energy projects across the region.
With some member states ranking among the world’s highest per capita emitters, the shift to sustainable practices — such as waste recycling, renewable energy development, and carbon capture — aims to balance continued energy leadership with climate commitments.
According to the Jeddah-based Gulf Research Center, rapid urbanization and resource-intensive consumption patterns have further driven the need for circular solutions, particularly in water and waste management, as the GCC works to mitigate its ecological footprint while fostering green investment and job creation.
Currently, the GCC operates three commercial carbon capture and storage facilities, with a combined capacity of 3.8 million tonnes of CO2 per year. These facilities play a crucial role in reducing industrial emissions, the ONA report noted.
Looking ahead, the region is projected to capture and store up to 65 million tonnes of CO2 annually by 2035. CCS technology is a key component of the GCC’s strategy to limit global temperature rise to 2 degrees Celsius and achieve carbon neutrality by 2050.
GCC’s leadership
During its G20 presidency in 2020, Saudi Arabia introduced the Circular Carbon Economy Framework, which was endorsed by G20 leaders as a sustainable and cost-effective approach to tackling climate change while ensuring energy security.
Building on this momentum, the Kingdom launched its CCE National Program in 2021, focusing on emissions reduction through four key strategies: reduce, reuse, recycle, and remove.
Saudi Arabia has since implemented over 30 CCE initiatives across its energy sector, aligning with Crown Prince Mohammed bin Salman’s 2021 pledge to achieve net-zero emissions by 2060.
The UAE has also emerged as a regional leader in circular economy policy. Its Circular Economy Agenda 2031 serves as a national blueprint, outlining 22 policies across four key sectors — manufacturing, food, infrastructure, and transportation — to drive advanced recycling, economic growth, job creation, and resource efficiency.
As host of COP28, the UAE reaffirmed its global sustainability commitment, leveraging its strengths in green finance, clean energy, and climate innovation.
