LONDON: The British pound recovered Friday from weakness prompted by a Russian decision to expel British diplomats, as the world rallied in support for London in a crisis sparked by the poisoning of a double agent, analysts said.
World stocks, meanwhile, rose slightly at the end of a volatile week as fears lingered of a global trade war, tarnishing a positive economic outlook.
“Yesterday morning the pound fell on headlines that Russia was going to retaliate and expel British diplomats,” said Fawad Razaqzada, market analyst at Forex.
The pound then “started to recover” after the leaders of France, Germany and the US blamed Russia for a nerve agent attack on former spy Sergei Skripal, saying there was “no plausible alternative explanation” for the assault.
“There is nothing like a Russian boogieman to bring EU and UK political adversaries together,” wrote Jasper Lawler, head of research at the London Capital Group.
European and US stocks rose Friday, after Donald Trump’s appointment this week of Larry Kudlow — a supporter of the president’s “America First” agenda but who has criticized his tariffs move — appeared to limit worries of an imminent trade war, at least on the European front.
In Germany, the EU’s economic powerhouse, the DAX was up as shares in Siemens’ Healthineers unit surged after the industrial giant raised €4.2 billion ($5.1 billion) in an initial public offering.
For the bloc as a whole, the main event was the final eurozone inflation reading for February, which came in at 1.1 percent.
“Clearly whatever the (European Central Bank) ECB is doing to get that (consumer price index) CPI figure creeping higher isn’t working, news that helped send the...DAX and CAC up,” Connor Campbell, analyst at Spreadex traders.
Attention now turns to the Federal Reserve’s monetary policy meeting next week. A rate rise is expected but its statement and new bank boss Jerome Powell’s comments will be pored over for clues about future hikes with speculation it could announce three more this year.
“It’s shaping up to be arguably one of the most critical central bank policy events in some time as Jay Powell gets set to dictate the course of Fed policy for the remainder of 2018 and beyond,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
Further uncertainty has been fanned by reports that Trump is planning to sack his National Security Adviser HR McMaster, just days after Secretary of State Rex Tillerson was ousted and not long since Trump’s chief economic adviser Gary Cohn resigned.
Elsewhere on Friday, bitcoin was stable around $8,470 after heavy losses in recent days.
Pound recovers as world supports Britain in spy case
Pound recovers as world supports Britain in spy case
Closing Bell: Tadawul climbs 109 points as Gulf bourses rebound
RIYADH: Saudi Arabia’s main equities index rose for a second straight session on Tuesday, tracking a broader rebound across Gulf markets after recent declines.
The Tadawul All Share Index gained 108.74 points, or 0.97 percent, to close at 11,302.76, supported by gains in industrials and consumer stocks.
Trading turnover reached SR7.97 billion ($2.13 billion), with advancers outnumbering decliners 150 to 91.
Zamil Industrial Investment Co. was the best-performing stock on the main market, surging 9.92 percent to SR36.
Saudi Paper Manufacturing Co. followed with a gain of 8.15 percent to SR58.40, while Aldrees Petroleum and Transport Services Co. climbed 6.82 percent to SR141.
Shares of Americana Restaurants International Co. declined 5 percent to SR1.90, making it one of the worst performers of the day.
The Kingdom’s parallel market Nomu shed 176.81 points to close at 28,473.47, while the MSCI Tadawul Index edged up 0.83 percent to 1,432.48.
On the announcements front, United Electronics Co., also known as Extra, reported a first-quarter net profit of SR103.36 million, up 10.12 percent from the same period last year.
The company’s revenue rose 10.03 percent year-on-year to SR10.03 billion. However, net profit dropped 41.81 percent compared to the fourth quarter of 2024.
Extra’s share price edged up 1 percent to SR90.90.
United International Holding Co. posted a net profit of SR57.79 million in the first quarter, marking a 52.35 percent increase year on year.
Its shares fell 1.61 percent to close at SR158.40.
Arabian Shield Cooperative Insurance Co. announced that Fitch Ratings has affirmed its long-term issuer default rating at A- with a stable outlook. The rating reflects the company’s strong capitalization and overall financial health, positioning it for future growth.
Shares of the insurance firm rose 0.59 percent to SR17.10.
Regional markets
Gulf markets rebounded on Tuesday after two sessions of declines.
Abu Dhabi Securities Exchange rose 0.44 percent to close at 8,989.10, while Dubai Financial Market jumped 1.90 percent, adding 91.32 points to end at 4,890.33.
Qatar Stock Exchange gained 1.34 percent to reach 9,896.65. Boursa Kuwait advanced 3.08 percent to close at 8,302.45.
Lebanon judge paves way for indictment of ex-central bank chief Salameh
BEIRUT: A Lebanese judge published a new court decision in the charges against former central bank chief Riad Salameh for embezzlement of public funds, according to a copy of the decision seen by Reuters on Tuesday, paving the way for an indictment.
Judge Bilal Halawi published a “presumptive decision” concluding that Salameh, who served as central bank governor for 30 years before his term ended in disgrace in July 2023, had engaged in “illicit enrichment” by knowingly transferring funds from the central bank to private accounts.
Salameh’s media office said the decision was the result of a “hastily prepared file” and was “marred by numerous and blatant legal flaws.” The ex-governor, who was detained in September and remains in custody, has denied all wrongdoing. He did not respond to a request for comment from Reuters on Tuesday.
After taking the helm of the central bank following a devastating 15-year civil war, Salameh built a reputation as a competent steward of the financial system and was once seen as a possible president.
But his legacy was tainted by the collapse of Lebanon’s financial system in 2019, as well as Lebanese and European charges that he and his brother Raja embezzled public funds over more than a decade. The brothers deny the accusations.
Salameh was arrested in September over alleged financial crimes linked to a brokerage company known as Optimum Invest, a Lebanese firm that offers income brokerage services.
Optimum Invest said at the time that a financial audit completed in late 2023 had found “no evidence of wrongdoing or illegality” in the company’s dealings with the central bank.
Thursday’s decision paves the way for an indictment in the case, according to a judicial source with direct knowledge of the court proceedings.
Saudi Arabia boosts industrial output with 103 new factories
JEDDAH: Saudi Arabia’s Ministry of Industry and Mineral Resources has announced the launch of 103 new factories in January, marking a significant milestone for the Kingdom’s industrial sector.
These factories attracted a total investment of SR900 million ($240 million), generating approximately 1,504 new jobs and underscoring the continued growth of the country’s industrial landscape.
The announcement, made on April 8, highlights the increasing number of establishments reaching full operational capacity.
In January, the ministry also issued 63 new industrial licenses, according to the National Industrial and Mining Information Center, which operates under the ministry.
As part of its Vision 2030 initiative, Saudi Arabia is accelerating efforts to diversify its economy, with the industrial and manufacturing sectors playing a key role in reducing the country’s reliance on oil. Programs like the National Industrial Development and Logistics Program are central to the Kingdom’s strategy, aiming to establish Saudi Arabia as a leading regional hub for advanced manufacturing, with a focus on petrochemicals, mining, and renewable energy.
Saudi Arabia is set to transform its industrial landscape with plans to increase the number of factories to 36,000 by 2035, including 4,000 fully automated facilities.
This ambitious goal is part of the Kingdom’s strategy to foster a dynamic, innovation-driven industrial sector.
In January, the country’s industrial production index saw a 1.3 percent year-on-year increase, driven by continued growth in manufacturing and waste management, according to the General Authority for Statistics. The index remained stable month-on-month at 103.9, maintaining the same level as in December 2024.
The manufacturing sub-index rose by 4 percent annually, supported by a 4.3 percent increase in the production of coke and refined petroleum products, along with a 4.2 percent rise in chemicals and chemical products.
The report, which tracks key industrial indicators, showed that investments related to new industrial licenses amounted to SR1.197 billion, with these projects expected to generate over 2,500 new job opportunities across the Kingdom.
In 2023, the number of industrial units in Saudi Arabia surged by 10 percent year-on-year, reaching 11,549, according to the Ministry of Industry and Mineral Resources. Jarrah Al-Jarrah, a spokesman for the ministry, also revealed that the new industrial organizations were established with an investment totaling SR1.54 trillion.
Saudi Arabia rolls out $533m water, sewerage projects as part of Vision 2030
RIYADH: Saudi Arabia has launched water and sewerage projects worth $533 million in the Riyadh region as part of its efforts to expand public utility services and meet the growing demand.
According to a press release from the National Water Co., work has begun on 30 projects covering nearly 2,000 km across Riyadh city and its surrounding governorates. The goal is to expand service coverage and enhance system efficiency.
This initiative aligns with the government’s Vision 2030 plan, which aims to boost infrastructure investment and improve the quality of life as population and economic activity continue to grow.
Of the 30 projects, 16, valued at over SR1 billion ($266 million), are focused on expanding water services.
These include the construction of 18 reservoirs with a total storage capacity of 85,000 cubic meters, the installation of more than 1,192 kilometers of new pipelines, and the development of pumping stations with a daily capacity of 247,000 cubic meters.
These include parts of the Al-Taawun, Al-Janadriyah, Laban, Al-Diriyah, and Dyrab neighborhoods in Riyadh. Other affected areas include Al-Quway’iyah, Afif, and Al-Dawadmi.
They also cover parts of Al-Muzahimiyah, Al-Rayn, and Al-Kharj, as well as Hotat Bani Tamim, Al-Hariq, and Al-Majma’ah. Additionally, the list includes Al-Zulfi, Thadiq, and the Al-Uyaynah and Al-Jubayla centers.
The remaining 14 initiatives target sewerage infrastructure in areas such as Al-Munsiyah and Al-Zulfi, adding 763 km of pipelines and lift stations with a total daily capacity of 117,000 cubic meters. These projects are valued at SR902 million.
The latest project package follows two significant announcements from last year—46 projects worth SR1.6 billion in May and 20 projects costing nearly SR1 billion in August—highlighting the ongoing investment in the sector.
These initiatives, according to the company, are aimed at strengthening water distribution, addressing environmental challenges, enhancing sustainability, and supporting national objectives under Vision 2030.
In March, the Saudi Water Authority and National Water Co. signed an agreement to build and operate 16 decentralized purification plants across the Kingdom.
This partnership also seeks to improve the availability of drinking water and advance sustainable groundwater desalination technologies.
The plants are expected to produce over 18,000 cubic meters of water daily, according to the Saudi Press Agency.
Currently, Saudi Arabia treats and reuses 21 percent of its wastewater, with plans to increase this to 70 percent by 2030. The new facilities align with this goal, contributing to environmental sustainability and enhancing service delivery.
Designed to serve over 80,000 people, the purification plants will be supported by integrated water treatment and distribution systems, aimed at improving supply reliability in resource-limited regions. This represents a crucial step toward bolstering essential services.
Given the Kingdom’s ongoing challenges with water scarcity due to its arid climate and limited natural resources, these initiatives are key to fostering innovative solutions in water production, management, and distribution.
Saudi tourism license applications up 390% after World Cup announcement: vice minister
RIYADH: Tourism license applications in Saudi Arabia have surged nearly fourfold since the Kingdom secured hosting rights for the 2034 FIFA World Cup, a senior official has revealed.
Speaking at a panel discussion during the Sports Investment Forum in Riyadh, taking place from April 7 to 9, the Kingdom’s Vice Minister of Tourism, Princess Haifa bint Mohammed Al-Saud, said applications had surged by 390 percent — highlighting the growing interest of international tourists and boosting economic growth, according to local broadcaster Al-Ekhbariya.
The increase comes as Saudi Arabia ramps up investments in sports infrastructure as part of Vision 2030, the Kingdom’s strategic framework to diversify the economy and reduce dependence on oil.
It also aligns with the growing recognition that sports tourism is a key driver of economic development, accounting for 10 percent of global tourism expenditure and projected to grow by 17.5 percent by the end of this decade.
“Sports tourism has no limits. The number of tourists who came solely to attend sporting events reached 14 million by last year, spending nearly SR22 billion ($5.86 billion),” Princess Haifa said, according to a post on Al-Ekhbariya’s X account.
“In 2018, visitors from 70 nationalities visited the Kingdom to attend sporting events, and today the number has exceeded 160 nationalities, thanks to various facilities,” she added.
During the session, the vice minister emphasized the role of the broader tourism ecosystem in supporting the Kingdom’s sporting ambitions and contributing to sustainable economic development through public-private collaboration.
In November, experts told Arab News that Saudi Arabia could expect a gross domestic product boost of between $9 billion and $14 billion from the 2034 FIFA World Cup, as well as the creation of 1.5 million new jobs, and the construction of 230,000 hotel rooms developed across five host cities.
For Saudi Arabia, key cost drivers include $378.4 million for television operations, $273.8 million for workforce management, and $124 million for transport as well as $111.1 million for team services, and $99.5 million for IT and telecommunications, according to a report released by the world football governing body in December.
The inaugural edition of the three-day Sports Investment Forum sees local and international leaders, officials, investors, and entrepreneurs exploring opportunities in the Kingdom’s evolving sports landscape.
The forum aims to expand the scope of sports investment in Saudi Arabia by fostering effective partnerships, attracting capital, and launching initiatives to drive growth across the sector.
