Worlds could collide when ‘Trump Man’ meets ‘Davos Man’ in the Swiss Alps

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Updated 23 January 2018
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Worlds could collide when ‘Trump Man’ meets ‘Davos Man’ in the Swiss Alps

DAVOS: The average American who turned the 2016 US presidential election for President Donald Trump was a middle-income earner of Republican persuasion from a Midwestern state with no college degree and, most likely, without a passport. “Trump Man” — and it was decisively men who gave him victory — was white, Christian and without a college degree.
“Davos Man” — that mythical habitué of the World Economic Forum in Switzerland — is of any nationality, but would count himself (he’s likely to be a gender-aware man) a citizen of the world. He can be of any religion, but probably espouses a tolerant rationalism as his main belief system. He has attended Harvard, Oxford, the Sorbonne or Tsinghua university, and is bristling with MBAs and other professional qualifications.
Those two worlds will collide in the Alpine town this Friday, when the US president and his entourage arrive to deliver a special address to the WEF. How will the two different species react in the confined arena of the Kongresszentrum security zone?
The opening positions appear to be hostile. The president has missed few opportunities to rail against “elites” in Washington, Hollywood and the media. “I want you to imagine how much better our future can be if we declare independence from the elites,” he said on the campaign trail, and the antiglobalist rhetoric has not been cooled since he entered the White House.
The elite of Davos might like the attention that he brings to their gathering, but that’s about as far as it goes. “At lower altitudes, Europeans do not like Trump. Mostly, he is viewed as an artless and dangerous bully,” the Financial Times said last week. Most Asians and Africans would probably share that view of a president rated the least respected of the world’s major leaders.
However, there are a few reasons to think the confrontation might not be as heated as you would expect from the rhetoric.
Trump is a businessman who often adopts a transactional approach to international politics. He might just be able to see eye to eye with Davos Man on business and financial matters, especially if they meet his goals of attracting big foreign investment and job creation into the US.
Also, he has surprised many on his foreign visits, with trips to the Middle East, China and Eastern Europe ending in an apparent meeting of minds with his hosts. Maybe the same will happen in Davos when he comes face to face with other “populist plutocrats?”
Trump and Davos Man certainly share a common view of their own importance. The WEF is “committed to improving the state of the world,” no less, while the American president is a self-declared “very stable genius.”
But — on virtually all the substantive matters of policy that are likely to emerge at Davos — there is a gaping Alpine crevasse between them. Relations could turn hostile on any number of issues when Trump assumes the stage in the Plenary Hall at the end of the week.

FOREIGN POLICY

The president has angered critics with his apparent distaste for the system of alliances and relationships, dominated by the US, that has prevailed since the end of the Cold War and which is one of the cornerstones of the WEF’s world view.
He is suspicious of the North Atlantic Treaty Organization and the EU, and has been provocative in dealings with China with regard to North Korea.
More goodwill was wasted with his recently reported scatalogical remarks about Africa and other countries. Middle Eastern attendees at WEF will probably give him the benefit of the doubt because of his strongly worded commitments to contain Iran and resist terrorism in the region.

IMMIGRATION

The WEF believes in free movement of labor around its globalist world, and sympathizes in the plight of refugee immigrants from conflict countries. The president has enacted measures against travel to the US from some Muslim countries, wants to build a wall to stop Mexican immigrants, and is in the process of removing the children of illegal immigrants from the US. Trump could defuse these differences if he undergoes the Davos experience of “A Day in the Life of a Refugee,” but his press people would probably advise against.

ECONOMICS AND TRADE

The WEF is an organization that exists to promote laissez-faire capitalism and advance global trade, but Trump has been ambivalent, to say the least, on these issues, with his stated aim to put “America First” in world commerce. He has withdrawn from the TransPacific Partnership; threatened to do the same with the North American Free Trade Association; and accused China, the biggest trading power in the world, of being a currency manipulator and a dumper of cheap manufactured products on the US. Any protectionist stance would go down very badly at Davos, which will have its usual big Chinese attendance.

ENVIRONMENT AND CLIMATE CHANGE

Davos is virtually unanimous on the need for sustainable economic and business policies to help reverse environmental degradation; the president is a climate-change denier who regards it as a Chinese hoax. He recently tweeted that freezing America needs a “little bit of good old global warming.” Such diametrically opposed views could start a serious confrontation in Davos, sparked perhaps by Al Gore, the former vice president who is always a prominent climate-change campaigner at the WEF.

SOCIAL AND CULTURAL ISSUES

Expect sparks to fly despite the Alpine chill if Trump repeats any of his more radical comments about gender issues at Davos. The WEF prides itself on being inclusive and tolerant of all gender persuasions, and a substantial part of the agenda is given over to discussion of the great economic effects of wider inclusion.
Psychologically, a large number of WEF attendees would sympathize with, or take part in, the women’s marches that coincided with the president’s inauguration anniversary. On the other hand, his daughter Ivanka is likely to be at hand in Switzerland to smooth over any disagreements.


Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

Updated 06 January 2025
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Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand

  • Company handed over 3,099 vehicles in the fourth quarter ended Dec. 31
  • For 2024, production rose 7% to 9,029 vehicles, topping Lucid’s target of 9,000 vehicles

LONDON: Lucid Group beat expectations for quarterly deliveries on Monday, as the Saudi Arabia-backed maker of luxury electric vehicles lowered prices and offered cheaper financing to drive demand, sending its shares up more than 6 percent.
The company handed over 3,099 vehicles in the fourth quarter ended Dec. 31, compared with estimates of 2,637, according to six analysts polled by Visible Alpha. That represented growth of 11 percent over the third quarter and 78 percent higher than the fourth quarter a year earlier.
Production rose about 42 percent to 3,386 vehicles in the reported quarter from a year earlier, surpassing estimates of 2,904 units.


For 2024, production rose 7 percent to 9,029 vehicles, topping the company’s target of 9,000 vehicles. Annual deliveries grew 71 percent to 10,241 vehicles.
Lucid, backed by Saudi Arabia’s sovereign wealth fund, started taking orders for its Gravity SUV in November, in a bid to enter the lucrative SUV sector and take some market share from Rivian and Tesla.
Rivian on Friday topped analysts’ estimates for quarterly deliveries and said its production was no longer constrained by a component shortage. But Tesla reported its first fall in yearly deliveries, in part due to the company’s aging lineup.
Demand for EVs, already squeezed by competition from hybrid vehicles, could face another challenge as President-elect Donald Trump is expected to reverse many of the Biden administration’s EV-friendly policies and incentives.
The company also raised $1.75 billion in October through a stock sale that CEO Peter Rawlinson believes will provide Lucid with a “cash runway well into 2026.”
Lucid, whose stock was down about 28 percent in 2024, is scheduled to report its fourth-quarter results on Feb. 25.


Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

Updated 06 January 2025
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Saudi Arabia’s PIF completes $7bn inaugural murabaha credit facility

  • Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions
  • Facility builds on PIF’s recent success with sukuk issuances over the past two years

RIYADH: The Saudi Public Investment Fund has closed its first Murabaha credit facility, securing $7 billion in funding. This is a key step in the fund's plan to raise capital over the next several years. 

The Shariah-compliant financing is backed by a syndicate of 20 international and regional financial institutions, according to a press release. 

A murabaha credit facility is a financing structure compliant with Islamic principles, where the lender purchases an asset and sells it to the borrower at an agreed profit margin, allowing repayment in installments. This structure avoids interest, adhering to Shariah laws. 

“This inaugural murabaha credit facility demonstrates the flexibility and depth of PIF’s financing strategy and use of diversified funding sources, as we continue to drive transformative investments, globally and in Saudi Arabia,” said Fahad Al-Saif, PIF’s head of the Global Capital Finance Division and head of Investment Strategy and Economic Insights Division. 

 

 

The facility builds on PIF’s recent success with sukuk issuances over the past two years, further bolstering its financial strength and commitment to best practices in debt management. 

Rated Aa3 by Moody’s and A+ by Fitch, both with stable outlooks, PIF continues to solidify its position as a global financial powerhouse. 

The fund’s capital structure is supported by four main funding sources, including contributions from the Saudi government, asset transfers, retained investment earnings, and financing through loans and debt instruments. 

PIF’s strategy focuses on financing initiatives that contribute to economic growth in Saudi Arabia and internationally. 

The $7 billion murabaha credit facility is expected to bolster PIF’s liquidity, supporting its investments both locally and globally. 

By diversifying its funding sources through a Shariah-compliant structure, PIF looks to enhance its financial partnerships while complementing its existing financing tools, such as sukuk issuances. 

 

 

This aligns with its medium-term capital strategy, ensuring flexibility, competitive financing terms, and risk mitigation. 

Earlier in January, the National Debt Management Center also secured a Shariah-compliant revolving credit facility worth SR9.4 billion ($2.5 billion). 

The three-year facility, supported by three regional and international financial institutions, is designed to meet the Kingdom’s general budgetary requirements. 

Aligned with Saudi Arabia’s medium-term public debt strategy, the arrangement focuses on diversifying funding sources to meet financing needs at competitive terms. 

It also adheres to robust risk management frameworks and the Kingdom’s approved annual borrowing plan. 

PIF has been actively engaging in credit arrangements to support its investment initiatives and the Kingdom’s Vision 2030 economic diversification plan. 

In August 2024, PIF secured a $15 billion revolving credit facility for general corporate purposes, replacing a similar facility agreed upon in 2021. 

In addition to the revolving credit facility, PIF has diversified its financing instruments by issuing a $2 billion seven-year Islamic sukuk earlier in 2024 and planning to issue bonds in pounds sterling. 

These efforts are part of PIF’s strategy to leverage a variety of funding sources to support its expansive investment activities. 


Closing Bell: Saudi main market gains to close at 12,105 points

Updated 06 January 2025
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Closing Bell: Saudi main market gains to close at 12,105 points

  • MSCI Tadawul Index increased by 1.07 points, or 0.07%, to close at 1,510.91
  • Parallel market Nomu lost 190.29 points, or 0.61%, to close at 30,864.09

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 34.87 points, or 0.29 percent, to close at 12,104.69. 

The total trading turnover of the benchmark index was SR6.43 billion ($1.71 billion), as 137 of the listed stocks advanced, while 94 retreated.  

The MSCI Tadawul Index also increased by 1.07 points, or 0.07 percent, to close at 1,510.91. 

The Kingdom’s parallel market Nomu dropped, losing 190.29 points, or 0.61 percent, to close at 30,864.09. This comes as 36 of the listed stocks advanced, while 43 retreated. 

Al Majed Oud Co. was the best-performing stock of the day, with its share price surging by 5.62 percent to SR158. 

Other top performers included SAL Saudi Logistics Services Co., which saw its share price rise by 5.42 percent to SR276, and Riyadh Cables Group Co., which saw a 5.17 percent increase to SR158.80. 

Al Mawarid Manpower Co. and Astra Industrial Group also saw a positive change, with their share prices surging by 5.17 percent and 5.05 percent to SR114 and SR195.40, respectively. 

United International Holding Co. saw the steepest decline of the day, with its share price easing 2.45 percent to close at SR183.40. 

Zamil Industrial Investment Co. and Nayifat Finance Co. both recorded falls, with their shares slipping 2.43 percent and 2.43 percent to SR36.15 and SR14.44, respectively. 

National Co. for Learning and Education and Saudi Electricity Co. also faced losses in today’s session, with their share prices dipping 2.27 percent and 2.25 percent to SR197.80 and SR16.54, respectively. 

On the announcement front, the Saudi Exchange announced the listing and trading of shares for Almoosa Health Co. on the main market starting Jan. 7. 

During the first three days of trading, daily price fluctuation limits will be set at plus or minus 30 percent, while static price fluctuation limits will also apply. 

From the fourth trading day onward, the daily fluctuation limits will revert to plus or minus 10 percent, and the static limits will no longer be enforced. 

In a separate development, Almujtama Alraida Medical Co. announced the signing of a credit facility agreement with Alinma Bank worth SR45 million. 

Alinma Bank saw a 0.17 percent decrease in its share price on Monday to settle at SR29.90.

The financing package includes an SR35 million revolving facility aimed at purchasing goods and an SR10 million revolving facility for capital expenditures. 

The credit facilities have a duration of three years and are secured by a promissory note. The objective of the financing is to support working capital requirements and fund capital expenditures, the company stated. 

Meanwhile, Mufeed Co. revealed the awarding of an SR41.5 million project focused on the development of concept, content, and execution of events aimed at reviving the Kingdom’s cultural and historical heritage. 

The contract, which is set to be signed on Jan. 20, will involve a legal entity as the counterparty. 

The project entails organizing unique activities designed to showcase and enhance the Kingdom’s rich historical and cultural narratives. 

Mufeed Co. saw a 2.93 percent increase in its share price by the close of Monday’s trading session to reach SR73.80. 


Saudi Arabia’s expat remittances up 19% to $3.21bn: SAMA

Updated 06 January 2025
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Saudi Arabia’s expat remittances up 19% to $3.21bn: SAMA

  • Remittances sent abroad by Saudi nationals totaled SR6.17 billion, reflecting a 22.71% increase
  • Kingdom ranks among the most affordable countries for remittance transfers, according to the World Bank

RIYADH: Expatriate remittances from Saudi Arabia rose to SR12.03 billion ($3.21 billion) in November, marking an 18.73 percent increase compared to the same month of 2023, new data showed. 

Figures from the Kingdom’s central bank, also known as SAMA, indicated that remittances sent abroad by Saudi nationals totaled SR6.17 billion, reflecting a 22.71 percent increase during this period. 

Saudi Arabia’s rising remittance flows underscore its growing prominence as a global economic hub and a premier destination for expatriate workers. 

According to the latest Saudi government census released in May 2023, expatriates comprise 41.6 percent of the Kingdom’s population. Among the largest expatriate communities are 2.12 million Bangladeshi nationals, followed by 1.88 million Indians and 1.81 million Pakistanis. 

These sizable populations highlight the scale of remittance transfers from the Kingdom, driven by competitive salaries, tax-free income, and comprehensive employee benefits. 

This dynamic has positioned Saudi Arabia as a major contributor to remittance-dependent economies, supporting millions of families in South Asia, the Middle East, and Africa. 

The Kingdom ranked second in the 2024 InterNations Working Abroad Index, reflecting its appeal to professionals across sectors such as finance, health care, and technology. 

The Vision 2030 initiative, aimed at diversifying the economy and boosting investment, has spurred unprecedented growth in job opportunities, particularly as new industries emerge and existing sectors expand. 

Expatriates in Saudi Arabia often benefit from attractive compensation packages that include housing allowances, health insurance, children’s education funding, and annual flights home. 

With limited personal living expenses and no income tax, expatriates enjoy significant disposable income, enabling them to remit substantial amounts to their home countries. 

According to World Bank data, the Kingdom ranks among the most affordable countries for remittance transfers, thanks to competitive fees and streamlined processes. 

Digitalization is reshaping how remittances are managed, further enhancing efficiency and accessibility. Saudi Arabia’s fintech landscape, buoyed by the Vision 2030 Financial Sector Development Program, has introduced a range of innovations. 

Mobile banking apps, online payment gateways, and partnerships with global remittance platforms have simplified transactions. Services such as the Saudi Payments Network, or Mada, and the adoption of blockchain technology by local banks have improved transfer security and speed. 

Additionally, increased competition in financial services has driven down costs, making transfers more affordable compared to global standards. 

The growing reliance on digital channels aligns with the Kingdom’s broader push toward a cashless economy. Remittance platforms integrated with mobile wallets and QR-based payments have democratized financial access, especially for lower-income workers. 

As Saudi Arabia continues to implement Vision 2030’s transformative agenda, remittance flows are expected to remain robust. 

The Kingdom’s focus on diversifying its economy, creating a business-friendly environment, and investing in technology will likely attract even more expatriates. 

With stronger remittance infrastructure and growing digital adoption, the ease, affordability, and volume of transfers will further enhance the global economic impact of expatriate labor in Saudi Arabia. 


Saudi Arabia’s e-commerce sector sees 10% growth, official figures reveal

Updated 06 January 2025
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Saudi Arabia’s e-commerce sector sees 10% growth, official figures reveal

  • Logistics sector recorded 82% surge in the issuance of records in the fourth quarter of 2024
  • Fintech solutions sector recorded 12% year-on-year increase with the issuance of 3,152 records

RIYADH: Saudi Arabia’s e-commerce sector saw its upward momentum continue in the fourth quarter of 2024, with 40,953 businesses now registered across the Kingdom— a 10 percent increase year on year.

The latest data from the Ministry of Commerce revealed that Riyadh led with 16,834 registrations, followed by Makkah with 10,314, and Eastern Province with 6,488. In the Madinah and Qassim regions, e-commerce enrollments reached 1,952 and 1,324, respectively. 

The growth falls in line with Saudi Arabia’s ongoing transition toward a diversified, digitally-driven economy, with e-commerce playing a crucial role. The Kingdom now ranks among the top 10 countries globally in expansion of this sector.

These figures align with the nation’s goal to increase modern commerce and e-commerce’s share of the retail sector to 80 percent by 2030, as well as the government’s aspiration to raise online payments to 70 percent by the same year.

The Ministry of Commerce’s latest quarterly report further revealed that the logistics sector recorded an 82 percent surge in the issuance of records in the fourth quarter compared to the same period of 2023 to reach 16,561 registrations.

The capital led the list with 8,074 registrations, followed by Makkah with 4,235 and Eastern Province with 2,038. The Madinah and Qassim regions recorded 486 enrollments each.

Regarding application development, the report showed that the sector witnessed a 36 percent year-on-year jump in the issuance of records to reach 15,775 registrations in the final quarter of 2024, compared to the corresponding quarter of 2023.

Riyadh topped the list with 9,647 registrations, followed by Makkah with 3,191 and the Eastern Province with 1,590.

The Kingdom’s fintech solutions sector also recorded a 12 percent year-on-year increase with the issuance of 3,152 records in the fourth quarter of 2024, compared to the same period a year earlier.

The bulletin also underscored significant growth across various promising sectors, aligning with Saudi Arabia’s Vision 2030 goals. 

Notable expansions were observed in several key fields, including cloud computing services, manufacturing solar panels and their parts, and real estate activities.

Growth was also seen in organizing tourist trips, entertainment events, conferences, and trade fairs.

These developments reflect the Kingdom’s strategic focus on fostering innovation and sustainable growth across diverse industries.  

The ministry’s quarterly business sector bulletin provides an overview of the latest developments in the nation’s commercial environment, highlighting Saudi Arabia’s economy’s continued growth and diversification.