Lucid sticks to production goal, has enough cash for electric SUV next year
Updated 08 August 2023
Reuters
SAN FRANCISCO: Luxury electric vehicle maker Lucid stuck to its annual production target on Monday and said it had enough cash to start producing its much-awaited sport utility vehicles next year and into 2025, sending its shares about 4 percent higher in extended trading, according to Reuters.
The company reported second-quarter earnings and revenue below market expectations, but its strong liquidity after a $3 billion stock offering in June led by its majority owner, Saudi Arabia’s Public Investment Fund, has given it an advantage over cash-poor peers that are battling parts shortages.
“We are not limited by our ability to manufacture. Most of the supply chain has now come through out of the COVID era,” CEO Peter Rawlinson told Reuters. “We are limited by our ability to sell the cars right now, and that is my key focus.”
Lucid said it was on track to produce 10,000 vehicles this year, but its deliveries in the second quarter were largely unchanged from the prior three months at 1,404 units.
To boost demand, the EV maker on Saturday slashed prices for its Air luxury sedan as part of a special offer, with the Air Pure model now selling for $82,400.
Competition from Tesla’s Model S, Air’s direct competitor and whose prices were cut sharply this year to $88,490, and rising borrowing costs have posed a threat to Lucid’s growth.
“People have been affected by the macroeconomic climate ... so we’re bringing that price down,” Lucid’s chief financial officer, Sherry House, said in an interview, adding that reducing costs helped the company make that decision.
Although logistics and labor costs have come down, there was a “significant amount of opportunity” to cut costs further, she said.
Despite Lucid’s holding a lot of inventory, House and Rawlinson did not confirm how long the offer would last and if Lucid will stick to the lower prices if demand improves.
Lucid on Monday reported revenue in the April-June period of $150.9 million, missing estimates of $175 million, according to seven analysts polled by Refinitiv. Adjusted loss stood at 42 cents per share, wider than an estimated loss of 33 cents.
Cash stood at $2.78 billion at the end of June, compared with $900 million three month prior.
“Investors seem to be overlooking the miss in favor of the increased liquidity runway,” CFRA Research analyst Garrett Nelson said.
Lucid is set to unveil its Gravity SUV in November ahead of its launch in 2024.
Most Gulf markets trade up, unfazed by rising regional tensions as US strikes Iran
US forces struck Iran’s three main nuclear sites late on Saturday
Updated 11 sec ago
Reuters
LONDON: Most stock markets in the Gulf were trading higher on Sunday, relatively unscathed by escalating tension in the region following US strikes on Iranian nuclear sites, as investors assessed the potential economic impact of the conflict.
US forces struck Iran’s three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.
By around 0915 GMT, Saudi Arabia’s benchmark index had edged 0.4 percent higher, helped by a 0.7 percent rise in the country’s biggest lender, Saudi National Bank. Qatar’s benchmark index had gained 0.2 percent, reversing slight early losses.
“It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,” said Michael Brown, Senior Research Strategist at Pepperstone.
Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.
The market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.
Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.
Kuwait’s premier index reversed early losses to trade 0.3 percent higher by around the same time, while Bahrain’s main index was flat. The Omani share index was up 0.5 percent.
Elsewhere in the Middle East, Egypt’s benchmark index was trading 1.7 percent higher, while the main index in Tel Aviv was up around 1 percent to reach its all-time high.
Giga-projects power 6.4% jump in Saudi Arabia’s Q1 cement sales to 13.4m tonnes
Local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes
Updated 36 min 47 sec ago
Dayan Abou Tine
RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects.
According to data from Al Yamama Cement covering the Kingdom’s 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes.
Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes.
Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh’s driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital’s northwest.
Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea’s string of luxury resorts, have now moved well beyond site grading and piling.
Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks.
In short, the Kingdom’s transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it.
Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital’s latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines.
Profits do not rise equally
Higher volumes did not translate into across-the-board gains. International Cement Review’s CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover.
Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million.
Producers faced an added challenge from Saudi Aramco’s fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent.
Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten.
Modern kilns slash fuel use
According to Global Cement’s April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement’s relocation and upgrade project south of Riyadh.
The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology.
Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant.
The efficiency drive extends to the Red Sea coast, where Yanbu Cement’s 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant’s electricity.
The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more.
By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise.
With Saudi Aramco’s January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom’s competitive position in nearby markets.
Gulf visitor spending to hit $224bn by 2034, GCC-Stat says
Updated 22 June 2025
MIGUEL HADCHITY
RIYADH: Visitor spending in Gulf Cooperation Council nations is projected to reach $223.7 billion by 2034, driven by economic diversification, mega-projects, infrastructure upgrades, and relaxed visa policies, new data showed.
According to the GCC Statistical Center, as reported by Emirates News Agency – WAM, inbound visitor spending is expected to contribute 13.4 percent to the region’s total exports — underscoring tourism’s growing role in Gulf economies seeking to reduce dependence on oil.
This comes as GCC countries, led by Saudi Arabia, ramp up efforts to diversify their economies by investing in tourism. Central to Saudi Vision 2030 is a goal to raise tourism’s share of gross domestic product from 3 to 10 percent and attract 150 million annual visits, with mega-projects like NEOM spearheading the shift.
The WAM report stated: “The centre also indicated that GCC countries are achieving steady progress in many tourism-related indicators.”
It added: “The data demonstrate that total international visitor spending in GCC countries amounted to $135.5 billion in 2023, with a 28.9 percent increase compared to the figures recorded in 2019.”
GCC countries also lead the Middle East and North Africa region in safety and security, outperforming the regional average of 5.86 points on a scale of 1 to 7.
Additionally, all six Gulf states rank among the top Arab nations in terms of passport power, reinforcing their global travel competitiveness. The findings underscored the GCC’s growing appeal as a premier tourism and business destination.
This tourism boom aligns with broader economic diversification plans as oil-reliant nations shift their focus toward hospitality, entertainment, and business travel. Additionally, more flexible visa policies and improved infrastructure — such as modern airports and strong safety standards — are helping the region gradually become more attractive to international tourists, offering an alternative to traditional destinations like Europe and Asia.
The GCC’s geographic advantage as a bridge between East and West, coupled with investments in aviation, has turned the region into a global transit and tourism hotspot.
All GCC nations are collectively transforming into a global tourism powerhouse, each leveraging unique strengths under ambitious national strategies.
According to a report by consultancy firm Roland Berger, Saudi Arabia leads with Vision 2030, combining religious pilgrimage with giga-projects like NEOM.
The UAE counters with its Tourism Strategy 2031, doubling down on its established formula of luxury experiences and cultural fusion, aiming for 40 million hotel guests.
Qatar, building on its World Cup, is refining its urban tourism appeal, while Oman bets on natural beauty to attract 11 million annual visitors.
Even smaller players like Bahrain and Kuwait are making strategic moves — Bahrain by leveraging Formula 1 to boost leisure tourism and Kuwait through investments in entertainment infrastructure.
Investors brace for oil price spike, rush to havens after US bombs Iran nuclear sites
Updated 22 June 2025
Reuters
NEW YORK: A US attack on Iranian nuclear sites could lead to a knee-jerk reaction in global markets when they reopen, sending oil prices higher and triggering a rush to safety, investors said, as they assessed how the latest escalation of tensions would ripple through the global economy.
The attack, which was announced by President Donald Trump on social media site Truth Social, deepens US involvement in the Middle East conflict. That was the question going into the weekend, when investors were mulling a host of different market scenarios.
In the immediate aftermath of the announcement, they expected the US involvement was likely to cause a selloff in equities and a possible bid for the dollar and other safe-haven assets when trading begins, but also said much uncertainty about the course of the conflict remained.
Trump called the attack “a spectacular military success” in a televised address to the nation and said Iran’s “key nuclear enrichment facilities have been completely and totally obliterated.” He said the US military could go after other targets in Iran if the country did not agree to peace.
“I think the markets are going to be initially alarmed, and I think oil will open higher,” said Mark Spindel, chief investment officer at Potomac River Capital.
“We don’t have any damage assessment and that will take some time. Even though he has described this as ‘done,’ we’re engaged. What comes next?” Spindel said.
“I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It’s going to raise uncertainty and volatility, particularly in oil,” he added.
Spindel, however, said there was time to digest the news before markets open and said he was making arrangements to talk to other market participants.
Oil prices, inflation
A key concern for markets would center around the potential impact of the developments in the Middle East on oil prices and thus on inflation. A rise in inflation could dampen consumer confidence and lessen the chance of near-term interest rate cuts.
“This adds a complicated new layer of risk that we’ll have to consider and pay attention to,” said Jack Ablin, chief investment officer of Cresset Capital. “This is definitely going to have an impact on energy prices and potentially on inflation as well.”
While global benchmark Brent crude futures have risen as much as 18 percent since June 10, hitting a near five-month high of $79.04 on Thursday, the S&P 500 has been little changed, following an initial drop when Israel launched its attacks on Iran on June 13.
Before the US attack on Saturday, analysts at Oxford Economics modeled three scenarios, including a de-escalation of the conflict, a complete shutdown in Iranian oil production and a closure of the Strait of Hormuz, “each with increasingly large impacts on global oil prices.”
In the most severe case, global oil prices jump to around $130 per barrel, driving US inflation near 6 percent by the end of this year, Oxford said in the note.
“Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the US this year,” Oxford said in the note, which was published before the US strikes.
In comments after the announcement on Saturday, Jamie Cox, managing partner at Harris Financial Group, agreed oil prices would likely spike on the initial news. But Cox said he expected prices to likely level in a few days as the attacks could lead Iran to seek a peace deal with Israel and the US.
“With this demonstration of force and total annihilation of its nuclear capabilities, they’ve lost all of their leverage and will likely hit the escape button to a peace deal,” Cox said.
Economists warn that a dramatic rise in oil prices could damage a global economy already strained by Trump’s tariffs.
Still, any pullback in equities might be fleeting, history suggests. During past prominent instances of Middle East tensions coming to a boil, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead.
On average, the S&P 500 slipped 0.3 percent in the three weeks following the start of conflict, but was 2.3 percent higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro.
Dollar woes
An escalation in the conflict could have mixed implications for the US dollar, which has tumbled this year amid worries over diminished US exceptionalism.
In the event of US direct engagement in the Iran-Israel war, the dollar could initially benefit from a safety bid, analysts said.
“Do we see a flight to safety? That would signal yields going lower and the dollar getting stronger,” said Steve Sosnick, chief market strategist at IBKR in Greenwich, Connecticut. “It’s hard to imagine stocks not reacting negatively and the question is how much. It will depend on Iranian reaction and whether oil prices spike.”
Why the world can’t afford a blockade in the Strait of Hormuz
Even the mere suggestion that Iran could close the strait if the US joins Israeli strikes has sent oil prices soaring
Disruption to this strategic waterway could destabilize economies and trigger a new energy crisis, analysts warn
Updated 22 June 2025
Miguel Hadchity
RIYADH: As the conflict between Israel and Iran intensifies, attention has turned to the Strait of Hormuz — a narrow, 33-kilometer-wide stretch of water separating Oman and Iran carrying a fifth of the world’s daily oil supply.
While this strategic waterway remains open for now, analysts have told Arab News any further escalation could put the vital shipping route at risk if Iran chooses to impose a blockade or attacks vessels.
A little over a week into the confrontation, which began on June 13 when Israel began striking Iran’s nuclear sites, scientists, military commanders and cities, daily exchanges of fire have killed hundreds.
Now, with threats of a maritime blockade looming should the US decide to join the conflict on Israel’s side, global energy markets are on edge. Any disruption could send prices skyrocketing, destabilize economies and trigger a new energy crisis.
“The Strait of Hormuz is not just a waterway; it is the artery of global energy. Any blockade would trigger a chain reaction the global economy is not prepared for,” Saudi geopolitical analyst Salman Al-Ansari told Arab News.
According to the US Energy Information Administration, 20 million barrels of oil — 20 percent of global consumption — pass through the Strait of Hormuz every day, along with one-fifth of the world’s liquefied natural gas trade, primarily from Qatar.
The oil lane is so vital because no real alternatives exist. Most Gulf oil cannot be rerouted without massive delays. It is the only deep-water route capable of handling the world’s largest crude tankers.
This handout natural-colour image acquired with MODIS on NASAs Terra satellite taken on February 5, 2025 shows the Gulf of Oman and the Makran region (C) in southern Iran and southwestern Pakistan, and the Strait of Hormuz (L) and the northern coast of Oman (bottom). (Photo by NASA Earth Observatory / AFP)
The EIA has estimated that 84 percent of its crude flows to Asia, with China, India, Japan and South Korea as top buyers.
In February last year, the Washington-based Center for Security Policy analyzed Iran’s escalating activity in the Strait of Hormuz and said 76 percent of the crude oil transiting the waterway was destined for Asian markets.
When geopolitical tensions spiked over the past week after Iranian retaliatory strikes on Israel, Brent crude surged from $69 to $74 per barrel in a single day — even though no ships were blocked.
Jassem Ajaka, an economist and professor at the Lebanese University, said this shows just how sensitive markets are to the mere suggestion of instability.
“The closure of the Strait of Hormuz will inevitably lead to a rise in the price of a barrel of oil to over $100, meaning the price will increase by about $25 in a single jump — something the global economy is not accustomed to,” Ajaka told Arab News.
An Iranian Nasr missile is fired from a navy warship during a military exercise in the Gulf of Oman, near the strategic strait of Hormuz in southern Iran. (Iranian Army handout via AFP/File)
He added: “Oil is a strategic and vital commodity, and when its price rises, inflation will rise with it because it is involved in 95 percent of other goods. The extraction of raw materials, the manufacturing of food products and other items will see their prices increase.”
Al-Ansari noted that “with Iran and Israel already in direct confrontation, the risk of escalation in this critical corridor is dangerously real. Iran sees the strait as its ultimate pressure point. Shutting it down would ignite a global oil shock, push inflation higher, and send vulnerable economies into panic.”
Ajaka explained high oil prices would confront central banks worldwide with a dilemma over whether to lower or raise interest rates. He added insurance prices would rise, contributing to inflation, and that it would also cause disruptions in supply chains across several countries.
“In the case of Lebanon, for example, it would result in a complete electricity blackout, as the country relies entirely on fuel oil coming from Iraq,” he added.
Saudi Arabia, the world’s largest oil exporter, moved 5.5 million barrels per day through Hormuz last year. That is 38 percent of total crude flows in the strait, according to tanker tracking data produced by the London-based real-time insights delivery firm, Vortexa.
While the Kingdom has contingency pipelines, they are not a perfect solution. The East-West Pipeline, with a capacity of 7 million barrels per day, can divert crude to the Red Sea, but it is already running near full capacity due to recent Houthi attacks on shipping.
The UAE’s Fujairah Pipeline, with 1.8 million barrels per day capacity, is also heavily used, leaving little to spare.
Iran’s Goreh-Jask Pipeline, designed for 300,000 barrels per day, is barely operational, having handled just 70,000 barrels per day before shutting down in late 2024.
If the Strait of Hormuz were blocked, the EIA said Saudi Arabia and the UAE could only reroute about 2.6 million barrels per day — far less than the 20 million that normally passes through.
Given that the economies of most Gulf countries, particularly Saudi Arabia, rely heavily on oil exports, a closure of the Strait of Hormuz would deal a severe blow to their economic stability, according to Ajaka. “The extent of the financial damage would hinge on how long the strait remains blocked, with prolonged disruptions likely triggering budget deficits across the region,” he said.
For energy-hungry Asian economies, a blockade would be catastrophic.
This image grab taken from a video provided by Iran's Revolutionary Guard official website via SEPAH News on July 20, 2019, shows Iranian Revolutionary Guard Corps boarding the British-flagged tanker Stena Impero in the Strait of Hormuz. (AFP/File)
“This narrow stretch carries nearly a third of the world’s seaborne oil. Its closure would cripple global trade routes, choke energy supplies and slam the brakes on economic growth from Asia to Europe,” said Al-Ansari.
China relies on the Strait of Hormuz for nearly half its crude imports. India, Japan, and South Korea would face severe shortages, forcing emergency releases from strategic reserves. Global shipping costs would explode as tankers would need to take longer routes around Africa.
“The first Asian economy to be affected by any closure of the Strait of Hormuz would be China,” said Ajaka. “If the repercussions of the strait’s closure spill over into multiple economies, it could lead to a global recession — posing another challenge in terms of how to revive the global economy.”
The US is less vulnerable, importing only half a million barrels per day from the Gulf, equivalent to 7 percent of total US imports. But it would still suffer from skyrocketing global prices.
Al-Ansari emphasized that the crisis is not merely about oil: “It is about the fragile balance that keeps markets stable and societies moving.”
Iran has historically threatened to close the Strait of Hormuz but has never done so. In a recent op-ed for Arab News, Abdulaziz Sager, founder and chair of the Gulf Research Center, said a full closure “would harm Iran’s own economy given that it relies on the waterway for its oil exports.”
This combination of file pictures created on July 22, 2019, shows Iranian soldiers taking part in a military exercise in the Strait of Hormuz on April 30, 2019 (up) and the amphibious assault ship USS Boxer (LHD 4) receiving a vertical replenishment-at-sea in the Arabian Sea on July 14, 2019. (AFP/US Navy/Keypher)
Despite Iran’s heavy reliance on the waterway, Behnam Saeedi, a member of the parliament’s National Security Committee presidium, was quoted by Mehr news agency on Thursday as saying a blockade remained on the table.
“Iran has numerous options to respond to its enemies and uses such options based on what the situation is,” he said. “Closing the Strait of Hormuz is one of the potential options for Iran.”
Mehr later quoted another lawmaker, Ali Yazdikhah, as saying Iran would continue to allow free shipping in the strait and in the Gulf so long as its vital national interests were not at risk.
“If the US officially and operationally enters the war in support of the Zionists (Israel), it is the legitimate right of Iran in view of pressuring the US and Western countries to disrupt their oil trade’s ease of transit,” said Yazdikhah.
An image grab taken from a video released by the Iranian Revolutionary Guards on July 18, 2019, reportedly shows the Panamanian-flagged tanker Riah, that was detained by Iran's Revolutionary Guards, in the highly sensitive Strait of Hormuz. (AFP/File)
However, it is not a decision Iran would take lightly.
“If Iran closes the Strait of Hormuz, it will undoubtedly lose economically and militarily,” said Ajaka. “Any country that wants to wage war will lose if it does not have foreign currency reserves, as war depletes these reserves — preventing it from making the decision to close the strait.
“The only circumstances that might lead Iran to close the Strait of Hormuz are if it feels its regime is on the verge of collapse,” he added.
Iranian troops take part in a military drill in Makran beach on the Gulf of Oman, near the Hormuz Strait. (Iranian Army handout via AFP/File)
As Iran already seems to have been backed into a corner, there is every chance it could take this final leap. As Al-Ansari said: “Iran is already economically crippled and is facing an existential reality. The scenario of closing the strait should never be ruled out.”
Past incidents have shown the global impact of regional events. In 2019, attacks on Saudi tankers near Fujairah and the Abqaiq drone strikes briefly cut 5 percent of the global oil supply. World powers, therefore, have a major interest in keeping the strait open.
“Any closure of the Strait of Hormuz would prompt military intervention by the US and the UK,” said Ajaka.
On June 17, US officials informed The New York Times that Iran had positioned missiles and military assets for potential strikes on American bases in the Middle East if the US entered the conflict.
The aircraft carrier USS Abraham Lincoln transits the Strait of Hormuz as an MH-60S Sea Hawk helicopter lifts off from the flight deck on November 19, 2019. (AFP/File)
Other officials also warned Iran could resort to mining the Strait of Hormuz in the event of an attack — a strategy designed to trap US warships in the Persian Gulf.
In the event of a blockade, Ajaka suggested Western and Asian nations would likely tap into strategic petroleum reserves to mitigate immediate shortages.
However, he added this would only provide temporary relief, as non-OPEC countries have already maxed out their production capacity, leaving OPEC members as the only potential source of additional supply.
“If the strait is closed and oil prices rise, oil-producing countries, including Saudi Arabia, may resort to halting production cuts and instead increase output to curb the sharp rise in prices,” he said.
“One other possible measure would be for the US to ease restrictions on oil-producing countries like Venezuela to increase oil supply in the market.”
Nevertheless, Ajaka said: “The core position of oil — and the fundamental reason for the necessity of security in the Middle East — is that the Arabian Gulf must remain the ultimate guarantor.”
