UK eases pressure on business by halving energy bills this winter
Wholesale prices for electricity will be capped at about 211 pounds ($239) per megawatt hour (MWh) and for gas at 75 pounds per MWh
Wholesale gas and electricity prices in Europe surged after Russia invaded Ukraine and have remained volatile
Updated 21 September 2022
Reuters
LONDON: The British government said on Wednesday it would cap wholesale electricity and gas costs for businesses at less than half the market rate from next month, helping relieve the pressure of soaring energy costs but adding to the government’s fast-rising spending.
Wholesale prices for electricity will be capped at about 211 pounds ($239) per megawatt hour (MWh) and for gas at 75 pounds per MWh, compared to forecast market rates of 600 pounds and 180 pounds respectively.
“We have stepped in to stop businesses collapsing, protect jobs and limit inflation,” said finance minister Kwasi Kwarteng, who is due to give a fiscal update on Friday.
Wholesale gas and electricity prices in Europe surged after Russia invaded Ukraine and have remained volatile since. The final unit prices for the scheme will be confirmed on Sept. 30.
Groups representing businesses from pubs to steelmakers welcomed the intervention, saying the government had thrown a lifeline to companies battling to survive.
The government did not publish any estimate of the cost, but reports have put the price of six months of support at up to 42 billion pounds, on top of more than 100 billion pounds for a previously announced scheme to help households.
“The difficulty with giving cost figure is that this will depend on where the price of energy goes over the winter, and that’s very difficult to forecast so I can’t give you an absolute cost,” Business Minister Jacob Rees-Mogg said.
“It will be in the tens of billions of pounds unquestionably.”
A spokeswoman for Prime Minister Liz Truss said Kwarteng’s fiscal event would outline estimates of the cost of the support packages for business and households.
CRITICAL TEST
After weeks of political stasis as governing Conservatives chose a new leader and the country mourned the death of Queen Elizabeth, this week the government is making several announcements aimed at averting an impending economic crisis.
On Friday, Kwarteng is expected to set out some detail on how he will pay for the energy scheme while at the same time delivering on promises to cut taxes, although the total cost of the energy scheme will depend on market prices over the coming months.
Investors say Friday’s statement will be a critical test of confidence in British public finances as borrowing costs rise at the same time as a commitment to higher spending and banking on accelerated economic growth to pay for it.
Kwarteng said on Wednesday he had pledged to get debt down in the medium term, but it was “absolutely right” to help families and businesses in the face of a major economic shock.
The business energy scheme will initially apply from Oct. 1 to Mar. 31, 2023, for all non-domestic energy users, including charities and the public sector such as schools and hospitals, as well as businesses.
The scheme initially gives urgent support to all such institutions that may need it, but is expected to be narrowed down in March with support targeted to the ones that most need it.
“We’re going to review it after six months, we’ll make sure that the most vulnerable businesses like pubs, like shops, continue to be supported after that,” Truss told broadcasters.
The government also announced support for households in Northern Ireland on the same level as the equivalent scheme in the rest of the United Kingdom, taking effect from November but backdated to the start of October.
KARACHI: Pakistan is expected to receive a $1 billion loan disbursement from the IMF today, Tuesday, as part of a larger $7 billion bailout agreement, Finance Minister Muhammad Aurangzeb has said.
The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash. The review approval brings disbursements to $2 billion within the $7 billion program.
In a statement released after a virtual meeting on Monday between Aurangzeb and Johana Chua, head of emerging markets economies for Citigroup Global Markets, the finance ministry confirmed that Pakistan would receive the latest IMF tranche on Tuesday.
“The Minister also apprised the participants of the successful conclusion of a Staff Level Agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), with the next tranche expected to be received tomorrow [Tuesday],” the statement said.
“He further mentioned the approval of the Resilience and Sustainability Facility (RSF), calling it a milestone achievement for Pakistan.”
The loan disbursement comes amid a military standoff with arch-rival India, though Aurangzeb told Reuters in an interview on Monday the conflict would not have a large fiscal impact on Pakistan.
The finance minister described the conflict as a “short duration escalation” with minimal fiscal impact, stating it can be “accommodated within the fiscal space which is available to the government of Pakistan.”
When questioned about potential increased military spending in the upcoming budget, Aurangzeb deferred comment, saying it was premature to discuss specific plans. However, he said: “Whatever we need to do in terms of ensuring that our defense requirements are met will be met.”
Aurangzeb said he expects the Indus Water Treaty, which India unilaterally suspended, to be reinstated and rolled back to where it was.
He said there is not going to be any immediate impact from India’s suspension and Pakistan does not “even want to consider any scenario which does not take into account the reinstatement of this treaty.”
Tensions between India and Pakistan began mounting after the April 22 attack in Indian-administered Kashmir on Hindu tourists that killed 26 people, sparking the worst clashes between the nuclear-armed neighbors in more than two decades.
On Saturday, a ceasefire in the Himalayan region was announced by US President Donald Trump, following four days of fighting and diplomacy and pressure from Washington.
Pakistan’s federal budget for the next fiscal year, starting July, will be finalized within the next four weeks, with scheduled budget talks with the IMF to take place from May 14-23, according to the finance ministry.
Trump’s Saudi Arabia visit heralds a new era of economic diplomacy
Both nations eye investments potentially exceeding $1 trillion as US president returns to expand a landmark economic alliance
Visit underscores focus on trade, trust and transformation as cooperation in defense, energy and emerging tech gains momentum
Updated 12 May 2025
Nour El-Shaeri
RIYADH: As President Donald Trump embarks on the first and, arguably, the most significant overseas tour of his second term, both the US and Saudi Arabia are eyeing investments worth billions of dollars.
In a call in January immediately after Trump was sworn in, Crown Prince Mohammed bin Salman told the president that the Kingdom planned to increase the value of its trade and investments with the US by $600 billion over the coming four years. This suggested that the value of mutually beneficial deals between the two countries might potentially reach $1 trillion, indicating that the bilateral relationship was entering a bold new phase.
Driving this next chapter in the relationship are personal diplomacy, strategic commercial interests, and a shared vision for geopolitical alignment.
Trump’s first foreign visit as US president during his first term was to Riyadh in May 2017. This marked the beginning of a transformative economic partnership between the US and Saudi Arabia and a new era of cooperation centered on defense, energy and infrastructure agreements worth hundreds of billions of dollars.
Now, as the American president returns to the Kingdom, his first stop on a tour this week that will also take him to Qatar and the UAE, the foundations laid in 2017 are set to be built upon.
Trump’s first foreign visit as US president during his first term to Riyadh in May 2017 marked the beginning of a transformative economic partnership between the US and Saudi Arabia. (AFP)
Trump’s first term (2017–2021) was characterized by a national-interest-driven foreign policy. Saudi Arabia quickly emerged as a cornerstone ally in both economic and strategic terms, a dynamic cemented at the historic Riyadh Summit in May 2017, at which King Salman extended an exceptionally warm welcome to the president.
The summit produced a wave of landmark agreements, most notably a $110 billion arms deal — part of a broader $350 billion economic package encompassing defense, energy and infrastructure initiatives.
In addition to state-level commitments, major commercial accords were struck. Saudi Aramco signed agreements valued at approximately $50 billion with prominent US firms including General Electric, Schlumberger and Halliburton.
Then Saudi Energy Minister Khalid Al-Falih highlighted the private sector’s growing role, remarking: “Many of us sitting at the table are overseeing substantial investments in the United States.”
Further solidifying the economic partnership, the Kingdom’s Public Investment Fund pledged $20 billion to a US infrastructure initiative spearheaded by Blackstone.
This commitment helped to anchor a $40 billion fund dedicated to revitalizing American roads, bridges and airports. Simultaneously, Saudi Arabia announced a $45 billion investment in the SoftBank Vision Fund, directing capital toward cutting-edge US technology ventures.
President Trump, addressing the summit’s assembled dignitaries, emphasized the significance of the occasion.
“This historic and unprecedented gathering of leaders — unique in the history of nations — is a symbol to the world of our shared resolve and our mutual respect,” he said. “The United States is eager to form closer bonds of friendship, security, culture and commerce.”
Then Secretary of State Rex Tillerson said the investments were expected to create hundreds of thousands of jobs in both countries over the coming decade.
“They will lead to a transfer of technology from the US to Saudi Arabia, enhance our economy, and also enhance American investments in Saudi Arabia, which already are the largest investments of anyone,” he said.
Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. In 2018, he hosted Crown Prince Mohammed bin Salman at the White House, where he publicly displayed detailed charts of Saudi arms purchases and emphasized the job-creation benefits across multiple US states.
“We’ve become very good friends over a fairly short period of time,” Trump remarked.
Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. (SPA)
Reflecting on that period, Albara’a Al-Wazir, director of economic research at the US-Saudi Business Council, described the 2017 visit as an “inflection point” in bilateral economic relations.
“It wasn’t just the volume of deals — it was the alignment of strategic priorities between both governments and the private sector that defined the success of that moment,” he told Arab News in an interview.
“It marked a shift from transactional diplomacy toward long-term commercial integration.”
Trump’s 2024 re-election has reignited bilateral economic momentum and, according to Al-Wazir, this next wave of engagement reflects the Kingdom’s evolving priorities.
“Recent deals have spanned traditional sectors like defense and energy, but we are also seeing growth in advanced manufacturing, artificial intelligence, biotech and financial services,” he said, highlighting a broader, more diversified agenda than in Trump’s first term.
At the World Economic Forum in Davos in January, Trump hinted at even greater ambitions. He suggested he would ask the Saudi crown prince to raise the investment target to $1 trillion, describing it as a natural extension of a robust and trusted partnership.
Saudi Economy Minister Faisal Alibrahim confirmed at the forum that the $600 billion pledge encompassed both government-led procurement and private-sector investment in key areas such as defense, energy, infrastructure and technology.
A picture taken in the Saudi Red Sea coastal city of Jeddah on July 14, 2022, ahead of a visit by the US president to the kingdom, shows a Saudi host addressing guests during a presentation on the Saudi Green Initiative. (AFP)
The Saudi Ministry of Investment now ranks the US among its top five sources of foreign direct investment, particularly in sectors aligned with Vision 2030, such as infrastructure, technology and renewables.
As of January 2025, Saudi Arabia held $126.9 billion in US Treasury securities, making it the only Gulf Cooperation Council country among the top 20 foreign holders of American debt. This substantial stake underlines Riyadh’s continued confidence in US fiscal stability and reflects a longstanding strategy to diversify reserves via reliable, dollar-denominated assets.
The current holdings include $105.3 billion in long-term bonds and $21.6 billion in short-term instruments, reflecting a balanced approach between liquidity and capital preservation.
As the Saudi-US Investment Forum convenes on Tuesday at the King Abdulaziz International Conference Center in Riyadh, economic cooperation between the two nations will once again be in the global spotlight.
Timed to coincide with Trump’s visit, the forum aims to highlight nearly a century of bilateral partnership. It will bring together prominent investors, business leaders and policymakers from both nations to strengthen commercial ties and explore new avenues for collaboration.
According to figures released ahead of the event, the US remains the largest foreign investor in Saudi Arabia, with FDI stock totaling $54 billion as of 2023 — accounting for approximately 23 percent of all FDI in the Kingdom.
Currently, 1,266 American firms hold active licenses to operate in Saudi Arabia, including 440 new licenses issued in the past year alone. These companies are engaged in such critical sectors as transportation, manufacturing, retail, information and communications technology and professional services. Collectively, they employ more than 80,000 workers in the Kingdom, including over 44,000 Saudi nationals.
The Riyadh Chamber of Commerce organized in February bilateral meetings with a US trade delegation. (Supplied)
Saudi investment in the US is also on the rise, with FDI stock now exceeding $75 billion. Leading the way are key institutions such as the PIF, Aramco and SABIC, while US financial firms continue to play a pivotal role in channeling global capital into major Saudi initiatives.
Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts.
Meanwhile, US exports to Saudi Arabia totaled $19.7 billion, led by machinery and appliances at $5.1 billion, vehicles at $2.6 billion, and medical and optical equipment at $1.5 billion.
On the Saudi side, key exports to the US included mineral products ($10 billion), fertilizers ($830 million) and organic chemicals ($526 million).
This year’s forum is expected to highlight the expanding investment and trade relationship as a cornerstone of modern economic diplomacy between the two strategic allies.
Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts. (Supplied)
Trump’s visit to Riyadh is widely expected to focus also on new defense contracts and deepening economic cooperation.
Energy policy has also returned to the fore, with Trump urging Saudi Arabia to ramp up oil production in a bid to stabilize global markets and reduce pressure on fuel prices — linking economic alignment to broader geopolitical aims, including efforts to curtail Russian revenue.
Al-Wazir believes the visit may also accelerate progress in emerging technologies and industrial development: “US companies are particularly well positioned to support Saudi Arabia’s diversification goals under Vision 2030, especially in energy transition technologies, automation and data analytics,” he said.
There are signs that Gulf investors are already responding positively to the renewed partnership. Following the 2024 US election, Yasir Al-Rumayyan, governor of PIF, was photographed alongside President Trump and Elon Musk, who is now serving as a senior adviser to the White House. Bloomberg interpreted the image as a signal of renewed Gulf confidence in the Trump administration.
As Trump returns to Saudi Arabia, the US-Saudi economic alliance appears not only intact, but also on the cusp of expansion — driven by mutual interests, deepening personal ties and a shared belief that commerce remains a pillar of diplomacy in a rapidly shifting global order.
US company joins major infrastructure project in Makkah
Updated 12 May 2025
MOHAMMED AL-KINANI
JEDDAH: US-based investment firm Burlington Capital has joined the Al-Bushra Infrastructure Development Fund as a strategic partner, marking a new chapter in economic cooperation between the US and Saudi Arabia.
The fund, which is privately managed and closed-ended, aims to develop more than 734,000 sq. meters of land in the Al-Aziziyah district of Makkah.
The involvement of Burlington Capital, headquartered in Nebraska and led by CEO Lisa Yanney Roskens, is part of a broader trend of foreign investment into the Kingdom’s infrastructure and real estate sectors.
The globally recognized firm has previously managed more than $7 billion in assets across 36 countries.
The Al-Bushra fund is aligned with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the national economy and reduce reliance on oil revenues. The fund’s objective is to convert raw land into serviced plots to support urban growth and encourage private sector activity.
Dr. Abdulaziz Sager, a board member of the fund and a prominent figure in regional development policy, is leading the project. His role includes guiding the fund’s strategic direction and overseeing its implementation.
The announcement reflects a growing interest from international firms in participating in long-term infrastructure projects within the Kingdom.
Burlington Capital was established in 1984 and has previously focused on a range of investments across both public and private sectors. Its entry into the Saudi market represents an extension of its international operations.
Wyndham to launch Super 8 hotels in Saudi Arabia, plans 100 properties
Updated 12 May 2025
Reina Takla Nour El-Shaeri
RIYADH: Wyndham Hotels & Resorts, a US-based hospitality group, has announced plans to introduce its Super 8 brand in Saudi Arabia, with an ambitious target of launching approximately 100 properties across the Kingdom over the next 10 years.
The announcement came during the Future Hospitality Summit in Riyadh, where Dimitris Manikis, president of Wyndham for Europe, the Middle East, Eurasia, and Africa, confirmed the initiative and signed the initial partnership agreement to bring Super 8 to the Saudi market.
“It’s a premium economy brand... one of the leading brands in the United States, Central Europe, and China. We finally brought it to Saudi Arabia,” Manikis told Arab News.
The expansion will be executed in partnership with Le Park Concord Co., a Saudi-based hotel operator that currently manages 13 properties with more than 900 rooms and has 13 additional hotels in its development pipeline, according to a press release.
The initiative is being supported by the Saudi Ministry of Tourism, reflecting the Kingdom’s broader strategy to diversify its tourism offerings and expand hospitality infrastructure in line with Vision 2030 goals.
Super 8 hotels will be strategically developed in major Saudi cities as well as secondary and tertiary urban centers. Target locations include areas near airports, highways, and newly emerging development zones. While the timeline remains flexible due to early-stage project planning, the first property is expected to open within the year.
“They are prefabricated, so they are easy to build. In six months, you can have a hotel in your location, which is amazing,” Manikis said, highlighting the brand’s scalability and efficient construction model.
Celebrating its 50th anniversary this year, Super 8 has a strong international footprint, particularly in the US and China, where it operates hundreds of properties.
Wyndham currently operates 14 hotels in Saudi Arabia, primarily under the Ramada brand. The company aims to diversify its portfolio in the Kingdom by introducing additional midscale, upper-midscale, and lifestyle brands to better serve a range of traveler preferences.
The rollout of Super 8 aligns with Saudi Arabia’s efforts to expand hotel capacity and provide affordable lodging options as it gears up to host a series of major international events.
Manikis also emphasized the importance of cultural and environmental sensitivity in the expansion, noting the company’s commitment to aligning with the Kingdom’s heritage and sustainability values.
Education and workforce development are key pillars of Wyndham’s strategy in the region. The executive described education as a critical component both for hotel owners and the people who work there.
He also underscored the company’s commitment to sustainability through the Wyndham Green Program, a five-tier certification framework that focuses on conservation and resource management. All Wyndham properties in the Kingdom currently operate under these sustainability guidelines.
With Saudi Arabia positioning itself as a global destination for expos, sports tournaments, and other international gatherings, Manikis reaffirmed Wyndham’s long-term vision for the market.
He said the company is committed to supporting the Kingdom’s tourism transformation while ensuring environmental responsibility and sustainable growth.
RIYADH: Wyld VC, a new early-stage venture capital firm founded by Saudi investor Tala Hasan Al-Jabri, has announced the launch of its inaugural $50 million fund — marking the first AI-native VC fund to emerge from the MENA region.
The launch coincided with US President Donald Trump’s high-profile visit to Riyadh from May 13-16, a trip focused on strengthening bilateral ties in key sectors including defense, technology, and artificial intelligence.
“The GCC is leading the charge in catalyzing an AI revolution—through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation,” said Al-Jabri, founder and managing partner of Wyld VC. “However, the region’s greatest gap is AI talent. Wyld VC is here to fill that gap.”
The firm is backed by the family office of Lawrence E. Golub, representing the office’s first investment in the region.
“Tala is a highly accomplished, talented investor, with a track record of success investing in innovative, early-stage technology companies,” said Golub. “Her considerable investment acumen, combined with her unparalleled and comprehensive ties and network in the Gulf and the US, offer a unique investment opportunity. I am excited to be supporting Tala and Wyld on this compelling new venture, and I look forward to working with her and her team.”
Wyld VC aims to support what it calls “Wyld minds” — founders advancing the frontiers of AI and shaping the next wave of the human experience. The fund will focus on AI middleware and applications, the layers seen as offering the most transformative potential across industries.
Artificial intelligence has become a strategic priority across the Gulf, where governments and institutions are aggressively investing in research, infrastructure, and regulatory innovation. Against this backdrop, Wyld VC seeks to bridge a critical gap: nurturing the next generation of AI talent in the region.
Al-Jabri is one of MENA’s earliest and most respected tech investors, with a portfolio that includes regional successes like Tabby and international ventures such as the fast-growing U.S. startup Starcloud. She is also a trailblazer for women in Saudi Arabia, becoming the first woman to serve as a partner at a venture capital firm in the Kingdom — a milestone that earned her the title of Woman of the Year 2022 in Finance by Arabian Business.
“Founders in AI need a partner that caters to their unique needs. That’s what Wyld VC is here to provide and we have the best partners to carry forward this mission,” said Al-Jabri.
With deep ties across MENA and the US, Wyld VC enters the market at a time of heightened global interest in AI and regional momentum for tech-led transformation.
