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Saudi aviation sector enters a new era

In March, Saudi Arabia announced the launch of its second national airline, Riyadh Air, owned by the Public Investment Fund. It is expected to add $20 billion to the non-oil GDP and create over 200,000 jobs. (Supplied)
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Updated 12 August 2023
Rebecca Anne Proctor
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Saudi aviation sector enters a new era

  • Transitioning from ‘a period of recovery to sustained and upward growth,’ says GACA official
Updated 12 August 2023
Rebecca Anne Proctor

RIYADH: As the world emerges from the shadows of the COVID-19 pandemic, Saudi Arabia has started reaping the fruit of its efforts to wean its economy off of oil by increasing its focus on its travel and tourism sector.

The Kingdom’s aviation sector is witnessing rapid growth which many analysts say is not just due to large investments in airlines but a result of the ongoing socio-economic transformation process that began with the launch of Vision 2030 in 2016.

One of the several measures taken to boost the sector includes the launch of an e-visa service in 2019 ensuring easy access to millions of potential tourists eager to explore the art, culture, cuisine, archeological wonders, and natural beauty of the Arabian Peninsula.

“2023 is becoming a year in which Saudi aviation (industry) has moved beyond recovery (mode) and (entered) into an era of unprecedented milestones and achievements,” Mohammed Alkhuraisi, executive vice president of strategy and business intelligence at the General Authority of Civil Aviation, told Arab News. 

“In the first half of 2023, Saudi Arabia’s air traffic witnessed significant growth. This reflects a clear transition from a period of recovery to sustained and upward growth in the sector.”

The Kingdom’s fast-evolving aviation sector is reflective of its ambitions to emerge as a global travel destination rivaling its counterparts in the Gulf Cooperation Council. 




Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi Aviation Strategy. (Supplied)

It is also making its mark as an emerging business hub and center for culture and tourism drawing in visitors from all across the globe.

“The Kingdom of Saudi Arabia is focused on Vision 2030, which is the country’s grandiose and ambitious economic diversification agenda,” Giorgio Cafiero, an analyst for Gulf State Analytics told Arab News.

“Some of the key pillars of Vision 2030 include tourism, non-oil trade, logistics, and transportation,” Cafiero said. 

“Within this context, Saudi Arabia is trying to bring many tourists from many parts of the world into the country, while also making the King Salman International Airport, which is supposed to be completed by 2030, a major hub that can not only compete with the UAE and Qatar’s successful airports, and even surpass them. Saudi Arabia has the resources and the will to make this airport in Riyadh a major success. If the Saudis are successful on this front, the Kingdom’s tourism industry will stand to gain in many ways.”

Alkhuraisi said the Kingdom is better connected than ever before, with the total number of destinations connected to the country reaching 127, which is over 50 percent of the 2030 target set in the Saudi Aviation Strategy. 

HIGHLIGHTS

• The national flag carrier, Saudia, plans to launch 25 new routes in 2023.

• The number of flights to AlUla increased by 64 percent between April and June.

• Saudi Arabia launched a free 96-hour stopover visa and services to facilitate the UK, the US, and Schengen visas holders.

• The Kingdom also announced its plans to replace one of its busiest airports, Riyadh’s King Khalid Airport, with King Salman International Airport.

“Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi Aviation Strategy, which will triple passenger numbers to 330 million, extend connectivity to more than 250 destinations, and increase air freight capacity to more than 4.5 million tons per annum by 2030,” Alkhuraisi added. 

“The Saudi Aviation Strategy targets reflect the scale of investment and growth occurring right now in the Kingdom’s aviation sector.”

The GACA official said: “This year we have already witnessed the Saudi Aviation Strategy deliver real results for the Kingdom, including Saudi Arabia jumping 14 places on IATA’s 2023 International Air Connectivity Index (the highest-ranking increase of any aviation market), launching of a new national airline, Riyadh Air, and issuing a new license for an airline based in Dammam.”

Further accelerating travel and easy access to the Kingdom, this year the government announced the launch of a free 96-hour stopover visa and services to facilitate the UK, the US, and Schengen visas holders, as well as permanent residents of the UK, the US, and any EU country to obtain tourist e-visas through a simple online portal. 

2023 is becoming a year in which Saudi aviation (industry) has moved beyond recovery (mode) and (entered) into an era of unprecedented milestones and achievements.

Mohammed Alkhuraisi, executive vice president of strategy and business intelligence at the General Authority of Civil Aviation

Ali Shihabi, a Saudi analyst and writer, told Arab News: “Aviation is a driver of growth as Dubai showed us. The more air connections you develop, the more traffic, tourism, and business come.” 

AlUla, a key tourist destination of the Kingdom, is also attracting foreign and domestic tourists. According to the Royal Commission of AlUla, the total number of flights to the historic destination increased by 64 percent between April and June, while the total number of passengers increased by 74 percent. 

The surge in the sector could be gauged through the fact that until March Wizz Air, a multinational airline, operated on 17 routes in the Kingdom and added 9 more destinations in April. 

The national flag carrier, Saudia, plans to launch 25 new routes in 2023. According to official data, it welcomed 14 million guests, with 76,000 daily passengers. 

“During the first half of 2023, Saudia showcased its crucial role in supporting tourism, business, Hajj, and Umrah sectors through strategic partnerships,” Capt. Ibrahim Koshy, CEO of Saudia, told Arab News. 

The Kingdom has also announced its plans to replace one of its busiest airports, Riyadh’s King Khalid Airport, which has a capacity of approximately 25 million passengers per year, with King Salman International Airport. This means that the Saudi capital will be able to host 120 million passengers per year by 2030. Estimated to be among the biggest in the world, the new airport, while still smaller in size than Dammam’s King Fahd International Airport, is expected to add an additional $7.18 billion to the Kingdom’s non-oil gross domestic product. It seeks to compete with other top GCC airports.

In March, Saudi Arabia announced the launch of its second national airline, Riyadh Air, owned by the Public Investment Fund. It is expected to add $20 billion to the non-oil GDP and create over 200,000 jobs. Its goal is to serve over 100 destinations by 2030 and connect the Kingdom’s capital to major international cities. 

During the first half of 2023, Saudia showcased its crucial role in supporting tourism, business, Hajj, and Umrah sectors through strategic partnerships.

Ibrahim Koshy, CEO of Saudia

“Riyadh Air was launched to shape the future of air travel, drawing on authentic Saudi hospitality and the latest digital technologies to offer an exceptional guest experience,” Riyadh Air CEO Tony Douglas told Arab News. “Riyadh Air will shape the future of air travel and empower Saudi Arabia’s aviation ecosystem. The airline will serve as a catalyst for the National Transport and Logistics Strategy and help realize its aviation sector goals by optimizing the Kingdom’s strategic location and connecting the three continents of Asia, Africa, and Europe.”

Further expansion for Saudi’s aviation sector comes with the soon-to-be-opened solar-powered Red Sea International Airport, in Hanak, Tabuk. Part of Red Sea Global, the multi-project luxury and sustainable tourism project under development and wholly owned by the PIF, it will open in the fourth quarter of this year and begin with domestic flights and offer international flights in 2024. 

“Saudi Arabia, through its Vision 2030, has opened the country to the world, welcoming international tourists, staging major sports events, including Formula 1, golf, boxing, tennis, and e-racing, as well as putting on major musical and entertainment events, Mdlbeast, for example, holding major business exhibitions (FII, Global Mining Forum, etc.), and staging unprecedented political meetings,” Amr Khashoggi, a Saudi economist and board chairman at Amkest Group, told Arab News. 

Khashoggi also said he believed that a large number of people are coming to the Kingdom seeking medical treatment.

“Saudi Arabia has now become a global travel destination for many reasons,” he added.

Topics: Saudi aviation Saudi General Authority of Civil Aviation (GACA) Saudi Arabia

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Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

Updated 06 June 2025
Nadin Hassan
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Saudis dig deep into their wallets as Eid Al-Adha drives spending surge

Updated 06 June 2025
Nadin Hassan

RIYADH: Saudi Arabia’s Eid Al-Adha holiday is proving to be a major economic driver, fueling robust growth across the Kingdom’s livestock, retail, and domestic tourism sectors.

Coinciding with the annual Hajj pilgrimage, the extended public holiday channels billions of riyals into the economy as businesses ramp up operations to meet soaring seasonal demand.

Livestock markets are bustling, shopping centers are teeming with eager consumers, and hotels and resorts across the Kingdom are reporting high occupancy rates — all pointing to a dynamic shift in consumer behavior and an increasingly diversified economic landscape.

Retail activity, in particular, is experiencing a seasonal boom. From glittering gold souqs and fashion boutiques to thriving e-commerce platforms, shoppers are on the lookout for Eid gifts, festive attire, and high-end products.

A recent survey by Toluna and MetrixLab shows that 47 percent of Saudi consumers expect to spend more this Eid than last year. Over half (51 percent) are boosting their shopping budgets, while 44 percent are allocating more for dining out.

Among the most in-demand items this season are fashion apparel, gold and diamond jewelry, perfumes, and electronics. In response, retailers are rolling out aggressive promotions, with 49 percent of consumers attracted to price discounts, 40 percent favoring bundled deals, and 33 percent looking for cash-back incentives.

The digital retail landscape is also witnessing significant momentum. The survey highlights that 31 percent of consumers now fall into the “heavy digital shopper” category — individuals who make purchases daily or several times a week.

Perfumes are one of the most in demand items. Getty

“Eid gifting remains a core element of celebrations, with 89 percent of KSA residents planning to give gifts in 2025,” the report stated.  

The report added: “Luxury gifting continues to rise, with 41 percent opting for fashion cloths, up from 36 percent in 2024, dates, and sweets 45 percent, and major electronic devices gaining popularity, rising from 22 percent to 24 percent.” 

Fragrances and gourmet items such as dates and chocolates also continue to dominate gifting choices, reflecting cultural values and the desire to present meaningful and luxurious tokens of appreciation.  

The trend of self-gifting, while slightly down from 2024, remains strong, indicating the growing role of Eid as a moment for personal indulgence.

The tourism and hospitality sector stands out as one of the biggest winners during Eid Al-Adha, with hotels, resorts, and travel operators across Saudi Arabia witnessing a surge in demand.  

JS Anand, founder and CEO of Leva Hotels, told Arab News that the holiday’s timing alongside the Hajj pilgrimage makes it a uniquely impactful season, not only for spiritual observance but also for economic momentum driven by both local and international tourism. 

“Eid Al-Adha will increasingly serve as a key driver for business and consumption, benefiting both local and regional markets. Beyond its economic impact, the holiday is also a time for spiritual reflection, generosity, and community, while highlighting Saudi Arabia’s vibrant culture and hospitality,” Anand said. 

He added: “Increased consumer spending during this period benefits industries such as transportation, hospitality, and retail, while the extended holiday period further amplifies economic activity.” 

Speaking on shifting consumer behaviors, Anand noted that travelers are becoming more discerning and value-conscious. While they are not necessarily looking for the cheapest option, they want to ensure they’re getting meaningful value for what they pay. 

He added: “Guests increasingly expect hotels to deliver not just a place to stay, but a personalized, experience-rich offering that resonates with their lifestyle and preferences.” 

JS Anand, founder and CEO of Leva Hotels. Supplied

Domestic tourism continues to thrive, but international travel has surged in popularity among Saudi residents.  

According to Wego, 96.12 percent of Eid-related travel searches in the Kingdom are now for international destinations, up from 87.34 percent last year.  

Top destinations include Egypt, India, and the UAE, as well as Pakistan, Turkiye, and Bangladesh, along with a rising interest in European and Southeast Asian locales such as Italy, Thailand, and Malaysia. 

Despite the international travel boom, domestic destinations like Jeddah, Riyadh, and Madinah, alongside Dammam and Abha, remain popular for their cultural attractions and spiritual experiences.  

Wego data suggests that cultural exploration is becoming a primary driver in destination selection, as travelers seek meaningful connections during the holiday. 

Anand affirmed this trend: “The hospitality sector must be agile, crafting offerings that cater not only to the loyal domestic traveler but also to the rising wave of international visitors.” 

He continued: “For hotels, this means providing thoughtfully tailored packages, seamless digital booking experiences, and culturally resonant, memorable stays that appeal to both local guests and the growing base of inbound international tourists discovering Saudi Arabia during the festive Eid season and beyond.” 

Businesses are also preparing for the holiday through targeted promotions and operational enhancements. “Today, it’s all about creating value-added, memorable, immersive experiences and curating unique, personalized offerings to meet the surge in demand and deliver exceptional value.” 

Mohammed Al-Mu’ajil, a tourism expert, told Arab News that Saudi Arabia is seeing remarkable shifts in travel and consumer behavior this Eid season. 

“In 2025, Saudi Arabia witnessed a significant rise in consumer spending, with total expenditure reaching approximately SR148 billion ($39.46 billion) in March, the highest level since May 2021, reflecting a 17 percent increase compared to the previous year. This growth is attributed to the Ramadan and Eid Al-Fitr seasons, in addition to the Umrah season,” Al-Mu’ajil said. 

With more people shopping and traveling, businesses are also recalibrating their approach to Eid.  

Al-Mu’ajil also highlighted the increasing role of technology and digital outreach stating: “Companies are increasingly relying on digital channels to engage with customers, with 94.03 percent of internet users in the Kingdom active on social media platforms such as X, TikTok, and Snapchat.” 

He also explained that domestic hotel nights increased by 14 percent, while international hotel nights rose by 13 percent. 

The Kingdom recorded a 48 percent increase in international visitors during the first quarter compared to the previous year, driven by Vision 2030 initiatives and relaxed visa regulations. 

International destinations are seeing strong demand from Saudi tourists, particularly Egypt, Turkiye, and Dubai, due to their geographic proximity, cultural similarities, and diverse tourism offerings,” he said.  

“Red Sea cruises have also emerged as a new and appealing option, offering luxurious and comprehensive travel experiences.” 

He added that domestic travel remains a strong draw, stating: “On the domestic front, cities such as AlUla, Abha, Al-Baha, Jeddah, and Riyadh have become favored destinations for Saudi travelers. These cities are distinguished by their natural and cultural diversity as well as advanced infrastructure, making them attractive to families and holidaymakers during the Eid season.” 

Al-Mu’ajil added that digital platforms are increasingly central to consumer engagement, noting that the number of e-commerce users in Saudi Arabia is projected to reach 34.5 million by the end of 2025.  

“With Internet penetration expected to rise from 66.7 percent in 2023 to 74.7 percent by 2027, digital engagement is reshaping how Saudis prepare for Eid, from online bookings to promotional offers,” he said.

Increased spending

More than half — 51 percent — of consumers in the Kingdom said they are willing to spend more on Eid gifts this year.  

According to the Toluna and MetrixLab report, this is driven by a mix of improved financial confidence and a desire to make the holiday more special after years of pandemic-related limitations.  

About 38 percent of consumers expressed a desire to make this Eid more special to compensate for pandemic-era limitations, while 36 percent noted improved financial standing. 

In addition, 35 percent plan to expand their gift lists to include more people, and 30 percent expressed a desire to be more generous with their families and friends. 

These sentiments are reflected in higher spending across multiple categories. Fashion apparel, fragrances, and electronics have seen a significant bump, while gold and diamond jewelry purchases have also increased slightly.  

The trend underscores Eid’s growing role not just as a religious and cultural moment, but as a peak period of emotional expression through gifting and consumer engagement 

With 89 percent of consumers planning to give gifts, and significant growth in retail and travel expenditures, Eid Al-Adha is proving to be not just a spiritual cornerstone — but a vital pillar of the Kingdom’s economy. 

The economic impact of Eid Al-Adha is particularly evident in the livestock sector, which sees a surge in demand — particularly in sheep and goats.  

Local farmers, traders, and international suppliers navigate challenges such as rising feed costs and supply chain constraints while ensuring a steady supply.  

Although the Kingdom’s livestock market remains robust, escalating feed prices have put upward pressure on animal prices, prompting some households to consider shared sacrifices or smaller livestock options. 

Seasonal livestock markets are also set up across major cities to accommodate the peak demand period. 

The evolving behavior of Saudi consumers — seeking quality, cultural relevance, and immersive experiences — indicates broader societal shifts and economic resilience.  

As Vision 2030 continues to reshape the Kingdom’s economic landscape, seasonal events like Eid Al-Adha serve not only as cultural milestones but also as indicators for consumer confidence and economic diversification.

Topics: Eid Al-Adha 2025

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MENA startup funding grows in May as Egypt rebounds 

Updated 06 June 2025
Nour El-Shaeri
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MENA startup funding grows in May as Egypt rebounds 

Updated 06 June 2025
Nour El-Shaeri

RIYADH: Startups across the Middle East and North Africa secured $289 million across 44 deals in May, marking a 25 percent rise from April and a 2 percent increase year-on-year.

While equity dominated the deal flow, debt financing represented just 9 percent of the total.

Egypt led regional fundraising with $125 million, bolstered by Nawy’s $75 million round and seven other deals totaling $50 million.  

The UAE followed with $86.7 million from 14 deals, while Saudi Arabia came third with $69 million from 15 transactions.  

Kuwait made a rare appearance in the top four, with two startups securing a combined $6 million. 

Despite the hype around artificial intelligence, fueled by a high-profile visit from US President Trump and Silicon Valley executives, funding in the sector was limited.  

AI startups attracted just $25 million across two deals, underscoring a gap between public narrative and private capital flows. 

Fintech maintained its lead among sectors, drawing $86.5 million through 14 rounds. Property technology followed, lifted by Nawy, while media technology firms raised $32 million.  

Construction technology firm WakeCap raised $28 million, one of the few notable later-stage rounds.  

Early-stage funding dominated the month, accounting for $161 million, with just one pre-series C deal recorded at $12 million. 

Business-to-business startups continued to command investor attention, raising $157 million across 29 deals.  

Hybrid startups secured $79 million, while B2C companies collected $53 million.  

The gender gap in startup funding persisted, with male-founded teams receiving 82 percent of capital, compared to 7 percent for women-led firms and 11 percent for mixed-gender teams. 

Stride Ventures doubles down on GCC with Saudi expansion 

Stride aims to triple its assets under management in the GCC by 2026. Stride

Stride Ventures, a global venture debt firm, is deepening its presence in the Gulf Cooperation Council, centering its growth strategy on Saudi Arabia.  

The firm announced the opening of a second regional office, the doubling of its local team, and the release of the inaugural Global Venture Debt Report 2025, developed in partnership with Kearney. 

The report reveals that the GCC’s venture debt market has grown at a compound annual growth rate of 54 percent—quadruple the global average—reaching $500 million in 2024 from $60 million in 2020. 

As part of its regional ambitions, Stride aims to triple its assets under management in the GCC by 2026 and is targeting $500 million in commitments over the next three to five years.  

“Saudi Arabia is shaping the future of venture capital and private credit with intention and scale,” said Fariha Javed, partner at Stride Ventures, adding: “We are seeing a new generation of founders who understand the value of non-dilutive capital to scale responsibly and an equally ambitious set of investors in the region ready to fuel their growth.”  

Javed said that Saudi Arabia is moving from being a capital source to becoming a capital magnet.

Badir Fund backs Shorooq’s Nahda Fund II to unlock SME credit 

The UAE-based Arab Fund for Economic and Social Development has committed capital to Shorooq Partners’ Nahda Fund II through its Badir Fund for small and medium-sized enterprises.  

Founded in 2017, Shorooq is known for offering structured financing to growth-stage companies.  

Recent recipients include fintech firm Abhi and self-storage platform The Box, which received $15 million and $12.5 million in debt financing, respectively.  

“This collaboration with the Badir Fund is a significant step towards empowering SMEs in the Arab region,” said Nathan Kwon, partner and credit head at Shorooq.  

“By combining our expertise in structured financing with the Badir Fund’s commitment to economic development, we can provide SMEs with the necessary resources to thrive.” Essam Al-Quorashy, secretary general of the Badir Fund.  

“This investment from the Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region,” Al-Quorashy added. 

ShipBee secures $235k to digitize logistics in Qatar 

The fresh capital will fuel ShipBee’s team expansion, product development, and regional scaling. ShipBee

Doha-based logistics startup ShipBee has closed a $235,000 pre-seed round, valuing the company at $1 million.  

The funding was led by Qatar’s GrowthX, with contributions from two angel investors and $40,000 in founder capital.  

Founded in March 2024 by Tamer Raafat and Amer Azani, ShipBee provides a tech-enabled logistics platform integrating a digital marketplace, AI-powered software, mobile applications, and international express shipping. 

The funds will be used to grow the team, enhance the product, and expand regionally.  

“This funding empowers us to scale our vision of simplifying logistics through cutting-edge technology,” said Tamer Raafat, co-founder and CEO. 

“ShipBee’s vision is to build a smart logistics ecosystem in Qatar and MENA using the power of AI and new technologies.” Hamad Al-Hajri, CEO and founder of GrowthX and Snoonu.  

“ShipBee perfectly aligns with Qatar’s strategic goals by combining innovation with logistics excellence. I firmly believe ShipBee has the potential to become a leading technology-driven logistics platform, both regionally and globally,” Al-Hajri added. 

Kumulus Water raises $3.5m to scale atmospheric water tech 

Kumulus was founded by Iheb Triki and Mohamed Ali Abid. Kumulus

Kumulus Water, a startup headquartered between France and Tunisia, has secured $3.5 million in seed funding to scale its off-grid water production systems.  

The round included support from Bpifrance, through the France 2030 SGPI initiative and the Ile-de-France Region, as well as regional VCs Khalys Venture, Flat6Labs, PlusVC, and beverage company Spadel.  

Several family offices and founders from Europe and North Africa also participated. 

Co-founded by Iheb Triki and Mohamed Abid, Kumulus develops atmospheric water generators that extract drinking water from air humidity — offering infrastructure-free solutions for underserved communities.  

The new capital will fund the launch of its industrial-grade Kumulus Boks machines and expand operations across France, Spain, and Tunisia, with Saudi Arabia identified as the next market entry point. 

EightClouds closes $20m round early, eyes consumer sector growth 

EightClouds is concentrating its activities in the food, beverage, and hospitality sectors. EightClouds

UAE-based alternative investment firm EightClouds has completed its $20 million capital raise ahead of schedule, closing the round in 11 months instead of the planned 24.  

The firm plans to deploy the funds into strategic acquisitions and initiatives targeting scalable, consumer-focused brands across the Gulf. 

EightClouds, which focuses on transforming capital into economic prosperity, is concentrating its activities in the food, beverage, and hospitality sectors.  

These industries, the firm notes, are driven by evolving consumer preferences and digital innovation.  

The company’s expansion strategy will focus on the UAE and Saudi Arabia, markets it views as primed for rapid growth due to policy support and infrastructure readiness. 

Khwarizmi Ventures eyes $120m for second MENA-focused fund   

Saudi venture capital firm Khwarizmi Ventures is planning to raise up to $120 million for its second fund, aimed at supporting early-stage startups across the Middle East and North Africa.  

The fund will target investments from seed to series A stages and is expected to close by the end of 2025. 

Speaking to Alarabiya Business, managing partner Abdulaziz Al-Turki described the regional climate as a “golden opportunity” for early-stage investors.  

“The number of unicorns in MENA has grown from zero a decade ago to eight today,” he said, adding: “By 2035, that number could reach 60.”  

Khwarizmi Ventures’ strategy is designed to place capital early in companies with strong scaling potential ahead of larger funding rounds. 

Edtech startup Taawoni raises $1.6m to expand training platform 

Saudi-based education technology company Taawoni has closed a $1.6 million investment round led by M Capital and supported by undisclosed investors.  

The startup, founded in 2021 by Aliyah Al-Ghubayn, operates a platform focused on cooperative training and professional development. 

Taawoni enables collaboration between universities and employers to deliver co-op training programs that provide students nearing graduation with real-world work experience.  

The new funds will be used to drive growth and integrate more deeply into both the education and human resources technology ecosystems across the region. Expansion into new regional markets is also planned. 

Topics: startups

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Oil Updates — Brent crude climbs over $1 on US-China talks

Updated 06 June 2025
Reuters
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Oil Updates — Brent crude climbs over $1 on US-China talks

Updated 06 June 2025
Reuters

HOUSTON, June 6 : Brent crude rose more than $1 a barrel on Friday and oil prices were on track for their first weekly gain in three weeks after US President Donald Trump and Chinese leader Xi Jinping resumed trade talks, raising hopes for growth and stronger demand in the world’s two largest economies.

Brent crude futures gained $1.50, or 1.61 percent, to $66.39 a barrel by 4:49 p.m. Saudi time. US West Texas Intermediate crude climbed $1.02, or 1.61 percent, to $64.39.

On a weekly basis, both benchmarks were on track to settle higher after declining for two straight weeks. Brent has advanced 2.75 percent this week, while WTI is trading 4.9 percent higher.

China’s official Xinhua news agency said trade talks between Xi and Trump took place at Washington’s request. Trump said the call had led to a “very positive conclusion,” adding the US was “in very good shape with China and the trade deal.”

Canada also continued trade talks with the US, with Prime Minister Mark Carney in direct contact with Trump, according to Industry Minister Melanie Joly.

The oil market continued to swing with news on tariff negotiations and data showing how trade uncertainty and the impact of the US levies are flowing through into the global economy.

“The potential for increased US sanctions in Venezuela to limit crude exports and the potential for Israeli strike on Iranian infrastructure add to upside risks for prices,” analysts at BMI, a Fitch affiliate, said in a note on Friday.

“But both weaker demand for oil and increased production from both OPEC+ and non-OPEC producers will add to downside price pressures in the coming quarters.”

Top exporter Saudi Arabia cut its July crude prices for Asia to near two-month lows. That was a smaller price reduction than expected after OPEC+ agreed to ramp up output by 411,000 barrels per day in July.

“The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+,” HSBC said in a note.

“Thereafter, accelerated OPEC+ hikes should tip the market into a bigger 4Q25 surplus than previously forecasted,” the bank added. 

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Saudi Arabia, UAE lead global office quality fit-out investments: JLL  

Updated 05 June 2025
Nirmal Narayanan
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Saudi Arabia, UAE lead global office quality fit-out investments: JLL  

Updated 05 June 2025
Nirmal Narayanan

RIYADH: Saudi Arabia and the UAE are leading global investments in high-end office fit-outs, averaging over $2,400 per sq. meter, well above the global benchmark of $1,830, according to a new report.

An analysis by real estate advisory firm JLL, based on data from 25 countries, found that companies in both Gulf countries are prioritizing workspace upgrades as part of broader return-to-office strategies.

In the Middle East and Africa, corporate sentiment remains focused on targeted investments in design and functionality to support hybrid working models and enhance employee productivity. 

The report added that initiatives in Saudi Arabia such as the regional headquarters program are playing a crucial role in driving demand for Grade A office spaces in the Kingdom. It offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom. 

Maroun Deeb, head of project and development services for Saudi Arabia and Bahrain at JLL, said: “The general optimism toward investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies.”  

He added: “Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces.”  

According to the analysis, companies in Saudi Arabia and the UAE are investing more on fit-outs to enhance workplace experience and employee performance. 

The report added that Saudi Arabia and the UAE are among the premium global markets for quality fit-out investments on par with London, New York and Sydney. 

JLL analyzed data from 25 countries and found that sustainability is a key driver in many relocation strategies and office fit-outs. 

Some 68 percent of organizations globally plan to increase investment in sustainability performance in the next five years. 

In the Middle East and Africa region, the sentiment is strongest in Saudi Arabia and the UAE, where 78 percent of corporate real estate leaders aim to enhance value through sustainability. 

The report, however, added that organizations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. 

JLL added that early planning and integration of sustainability targets in relocation strategies and fit-out projects is crucial to address challenges. 

“Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai,” said Gary Tracey, head of project and development services UAE at JLL.  

He added: “Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces.”  

The report further said that supply chain disruptions in 2024 disproportionately affected the office market in the Middle East and North Africa, tightening project timeframes and escalating pricing. 

“From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces,” said JLL.  

The report added that mechanical and electrical services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. 

With 39 percent spending on M&E services, Cairo ranks among the top cities globally for average proportion of costs per sq. meter for such services, followed by Dubai at 30 percent and Riyadh at 29 percent. 

In April, in a separate analysis, JLL said that the global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces. 

In that report, JLL revealed that 59 percent of organizations globally are increasing investments in design and fit-outs.

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Saudi Arabia and Syria explore investment cooperation in bid to boost economic integration 

Updated 05 June 2025
Nour El-Shaeri
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Saudi Arabia and Syria explore investment cooperation in bid to boost economic integration 

Updated 05 June 2025
Nour El-Shaeri

RIYADH: Saudi Arabia and Syria are set to advance economic cooperation following a virtual meeting between the Kingdom’s Minister of Investment Khalid Al-Falih and the Middle Eastern country’s Minister of Economy and Industry Mohammad Al-Shaar. 

The two sides reviewed prospects for investment partnerships and discussed opportunities to expand collaboration in both public and private sectors, according to a report by the Saudi Press Agency. 

The discussions focused on promoting high-quality investments across productive and service industries, with the goal of supporting Syria’s economic development and enhancing regional financial integration. 

The meeting also examined ways to build a favorable environment for cross-border investments that can contribute to long-term stability. 

Syria is undertaking significant efforts to revive its economy following years of conflict. The transitional government, led by President Ahmed Al-Sharaa, has initiated reforms, including the privatization of state enterprises, the lifting of import restrictions, and the encouragement of foreign investment. 

Notable developments encompass a $7 billion energy infrastructure agreement with a Qatari-led consortium, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project involving Gulf telecom firms. 

“Al-Falih emphasized the importance of creating an enabling environment for expanding regional investment partnerships,” SPA said. 

He added that Saudi Arabia is keen to assist in stabilizing and developing the Syrian economy, which he described as essential for serving mutual interests and promoting regional economic prosperity. 

Additionally, the Kingdom and Qatar have pledged financial support for Syrian public sector salaries in May. 

These initiatives, alongside the easing of Western sanctions, aim to stabilize the economy and attract international investment. 

The talks are part of broader Saudi efforts to expand its global investment footprint and strengthen economic ties across regions. 

In May, Saudi Foreign Minister Prince Faisal bin Farhan visited Damascus, where he met Al-Sharaa and pledged Saudi-Qatari support for Syria’s public sector, with a particular focus on energy and infrastructure investments. 

The Kingdom has also ramped up high-level international engagements this year. Minister of Finance Mohammed Al-Jadaan participated in the Saudi-US Investment Forum in Riyadh in May to discuss cross-border investment opportunities. 

In April, Al-Jadaan met with Pakistan’s Finance Minister Muhammad Aurangzeb in Washington to deepen financial and economic cooperation. 

Additionally, Minister of Economy and Planning Faisal Alibrahim signed a memorandum of understanding with Spain on May 22 to promote trade diversification and new investment opportunities. 

Alibrahim also represented Saudi Arabia at the World Government Summit in Dubai in February to advance Vision 2030 partnerships. 

 

Topics: Saudi-Syria Saudi-Syrian ties

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