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.


Emirati billionaire to invest $20bn in US data centers, Trump says

Updated 21 sec ago
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Emirati billionaire to invest $20bn in US data centers, Trump says

  • Hussain Sajwani promised investment feeds for constructing data centers for developing AI and expanding cryptocurrency
  • Investment by DAMAC Properties in the UAE is intended to highlight Trump’s ability to attract new money for big projects

PALM BEACH, Florida: Emirati billionaire Hussain Sajwani promised a $20 billion investment in the booming US data center industry in the coming years, he and US President-elect Donald Trump announced on Tuesday at Trump’s home in Palm Beach, Florida.
With an election victory largely driven by voters’ economic concerns, Trump has doubled down on bolstering investments in domestic industries and proposed higher tariffs on Chinese goods as the US tries to curb China’s access to the chips needed for advanced data centers.
“We’re planning to invest $20 billion and even more than that, if the opportunity in the market allows us,” said Sajwani, chairman of Dubai developer DAMAC, at Trump’s Mar-a-Lago home.
DAMAC owns the Middle East’s only Trump-branded golf course in Dubai, which opened in 2017, and the billionaire celebrated the New Year with Trump in Florida.
Trump has an affinity for announcements promising economic growth, though such investments do not always pan out. Early in his first term, he announced a $10 billion Foxconn investment in a Wisconsin factory that promised thousands of jobs but was mostly abandoned.
Last month Trump and SoftBank Group CEO Masayoshi Son announced the Japanese tech investor would invest $100 billion in the US over the next four years, focused around AI.
The introduction of OpenAI’s GenAI chatbot ChatGPT in late 2022 kicked off a wave of investment in generative AI technology and the pricey infrastructure required to support it, including power generation and transmission.
Microsoft said last week it would spend about $80 billion this fiscal year to ramp up its AI capacity.
Restrictions on the export of coveted AI chips used in advanced data centers to China have tightened under the Biden administration, and Trump has nominated China hard-liners to key diplomatic and economic roles in his administration.


Oil Updates — crude rises on tighter OPEC supply, US jobs data

Updated 15 min 50 sec ago
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Oil Updates — crude rises on tighter OPEC supply, US jobs data

SINGAPORE: Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in US job openings pointed to expanding economic activity and consequent growth in oil demand.

Brent crude was up 37 cents, or 0.5 percent, at $77.42 a barrel at 10:30 a.m. Saudi time. US West Texas Intermediate crude climbed 44 cents, or 0.6 percent, to $74.69.

Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed. Field maintenance in the UAE offset a Nigerian output hike and gains elsewhere in the group.

In Russia, oil output averaged 8.971 million barrels a day in December, below the country’s target, Bloomberg reported citing the energy ministry.

On the economic front, job openings rose in the US in November and the number of layoffs was low, while workers were reluctant to quit, the Job Openings and Labor Turnover Survey showed.

“Robust US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-anticipated drawdown in crude inventories,” said IG market strategist Yeap Jun Rong.

“After trading within a prolonged tight range since October last year, selling pressures may have been exhausted for now, paving the way for a modest recovery,” Yeap said.

US crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

Going forward, analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-OPEC countries.

“We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024,” BMI, a division of Fitch Group, said in a client note.

“The bearish view is being led by our fundamental data forecast, which points to an oversupply this year, with supply growth outstripping demand growth by 485,000 barrels per day.” 


Saudi Cabinet approves new law to regulate petroleum, petchem sector

Updated 07 January 2025
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Saudi Cabinet approves new law to regulate petroleum, petchem sector

RIYADH: Saudi Arabia’s Cabinet has approved a new Petroleum and Petrochemical Law to ensure a reliable and secure supply of products within the Kingdom.

The law, which was approved on Jan. 7, is designed to optimize the use of raw materials in the sector and support the localization of the value chain, according to a report by the Saudi Press Agency.

The new legislation will replace the existing Petroleum Products Trade Law and is expected to achieve several key objectives, including regulating petroleum and petrochemical operations. It aims to accelerate the sector’s growth, foster economic development, and encourage increased investment in the industry.

Upon the law’s approval, Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman expressed gratitude to the Cabinet, emphasizing that the law would help establish a robust legislative framework for the Kingdom’s energy sector. He added that the new directive would facilitate the optimal use of petroleum and petrochemical resources.

The law will regulate the use, sale, purchase, and transportation of petrochemical products, as well as oversee the operation of distribution stations and petrochemical facilities, the Saudi Press Agency report noted.

In addition to the Petroleum and Petrochemical Law, the Cabinet approved several other agreements on Jan. 7. These include a memorandum of understanding for cooperation between Saudi Arabia’s Ministry of Justice and Singapore’s Ministry of Law, an MoU on health cooperation with Morocco’s Ministry of Health and Social Protection, and an MoU to strengthen digital government collaboration between Saudi Arabia’s Digital Government Authority and Qatar’s Ministry of Communications and Information Technology.

The Cabinet also endorsed an air services agreement between Saudi Arabia and Eswatini, a Southern African nation.

Furthermore, the Cabinet reviewed ongoing development programs and projects aimed at diversifying the Kingdom’s economy, exploring new revenue streams, and maximizing the use of available resources.


EV maker Lucid becomes first global automotive manufacturing company to join ‘Made in Saudi’ program

Updated 07 January 2025
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EV maker Lucid becomes first global automotive manufacturing company to join ‘Made in Saudi’ program

  • Aims to increase industrial sector’s contribution to GDP to at least 20% by 2025
  • Move seeks to attract additional investments, enhance non-oil exports, and create sustainable job opportunities

RIYADH: Electric vehicle manufacturer Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program as the country continues strengthening its industrial capabilities. 

The milestone grants Lucid the right to use the “Saudi Made” label on its products, symbolizing the nation’s focus on quality and innovation. 

The strategy aims to increase the industrial sector’s contribution to the gross domestic product to at least 20 percent by 2025, tripling the current industrial base. 

It also seeks to attract additional investments, enhance non-oil exports, and create sustainable job opportunities, aligning with Vision 2030’s economic diversification goal.

“This is a step that represents a strong push to enhance the image of the national industry and attract investments and global companies, which consolidates the Kingdom’s position as a global center for innovative manufacturing,” Minister of Industry and Mineral Resources Bandar Alkhorayef said in a post on his X account. 

In a separate statement, the minister said that Lucid Motors’ inclusion in the program underscores Saudi Arabia’s strategic transformation toward creating a fully integrated electric vehicle manufacturing ecosystem. 

The minister added that this initiative aligns with the objectives of the National Industrial Strategy, which focuses on empowering promising sectors and attracting high-value investments in advanced industries.

Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in Sept. 2023. 

Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and represents a key milestone in its efforts to build a domestic automotive industry. 

The facility can currently assemble 5,000 Lucid vehicles annually during its first phase. Once fully operational, the complete manufacturing plant, including the assembly line, is expected to produce up to 155,000 electric cars per year. 

Saudi Arabia is aggressively promoting the adoption of electric vehicles as part of its Vision 2030 strategy, which aims to achieve net-zero carbon emissions by 2060. 

A critical target of the initiative is for 30 percent of all vehicles in Riyadh to be electric by 2030, contributing to a broader goal of reducing emissions in the capital by 50 percent. 

To support the transition, the Public Investment Fund — a major backer of Lucid Motors — has been instrumental in establishing a domestic EV manufacturing sector. 

In addition to its stake in Lucid Motors, PIF has launched Ceer, the Kingdom’s first locally branded electric vehicle manufacturer, as part of its efforts to bolster the industry. 

Infrastructure development is also a core focus, with the Kingdom planning to deploy 5,000 fast chargers across Saudi Arabia by 2030 to facilitate the adoption of EVs. 

Consumer interest in EVs is steadily growing, with over 40 percent of Saudi consumers considering purchasing an electric vehicle within the next three years, according to a 2024 report by London-based professional services network PwC. 

Faisal Sultan, vice president and managing director for the Middle East at Lucid Motors, expressed the company’s pride in joining the program, saying: “We are delighted to join the ‘Made in Saudi’ program and have the honor of using the ‘Saudi Made’ label, which represents quality and excellence.”

He added: “We are committed to embodying the values of this national identity, such as sustainability, innovation, and excellence. With the increasing focus on electric vehicles in the Kingdom, we aim to deliver an advanced and unique experience to our customers.”

The minister said that Saudi Arabia has emerged as a central hub for electric vehicle production, supported by modern infrastructure, incentivizing policies, and a highly skilled workforce. 

He also said that major players like Lucid Motors strengthen the Kingdom’s position as a global center for future-focused industries while contributing to increased local content, non-oil exports, industrial localization, and knowledge transfer. 

Launched in March 2021, Saudi Arabia’s Made in Saudi program promotes domestic products and services, encouraging local consumption and boosting non-oil exports. 

The move aligns with Saudi Arabia’s broader industrial strategy, which aims to increase the sector’s gross domestic product contribution to 20 percent by 2025 and drive investments in advanced industries. 

It also supports Vision 2030’s goal of reducing the nation’s reliance on oil by fostering high-value sectors like electric vehicle manufacturing.


Closing Bell: Tadawul maintains upward momentum, closes at 12,113

Updated 07 January 2025
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Closing Bell: Tadawul maintains upward momentum, closes at 12,113

  • Parallel market Nomu dropped 54.97 points, ending the session at 30,809.12
  • MSCI Tadawul Index rose by 3.48 points to reach 1,514.39

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trajectory for the second consecutive day on Tuesday, rising by 8.60 points, or 0.07 percent, to close at 12,113.29.

The benchmark index recorded a total trading turnover of SR7.71 billion ($2.05 billion), with 124 stocks advancing, while 110 saw declines.

In contrast, the Kingdom’s parallel market, Nomu, dropped 54.97 points, ending the session at 30,809.12. The MSCI Tadawul Index also gained ground, rising by 3.48 points to reach 1,514.39.

The standout performer of the day was Almoosa Health Co., which made its debut on the main market. The stock surged by an impressive 14.96 percent, closing at SR146. Other notable gainers included Al Mawarid Manpower Co. and Saudi Reinsurance Co., whose share prices climbed by 10 percent and 9.23 percent, closing at SR125.40 and SR63.90, respectively.

On the flip side, Al-Baha Investment and Development Co. saw its share price fall by 4.44 percent, ending the day at SR0.43.

On the announcements front, Filling and Packing Materials Manufacturing Co. announced it had signed a Shariah-compliant credit facility agreement worth SR50 million with Al Rajhi Bank to finance its working capital.

According to a statement on Tadawul, the 12-month credit facility is backed by a promissory note covering its entire value. FIPCO clarified that there are no related parties involved in the agreement. The company’s stock inched up by 0.44 percent, closing at SR45.70.

Meanwhile, LIVA Insurance Co. revealed it had received a Baa2 insurance financial strength rating with a stable outlook from Moody’s. The rating reflects the company’s strong capital adequacy, solid asset quality, and conservative investment strategy, alongside moderate reserve risk.

LIVA emphasized that the rating underscores Moody’s confidence in the company’s enhanced underwriting discipline and its ability to maintain profitability and growth within the Saudi market. A Baa2 rating is considered medium-grade, indicating a company’s acceptable ability to meet short-term debt obligations. LIVA’s stock gained 0.57 percent, closing at SR17.60.