Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 

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Updated 15 January 2025
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Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 

RIYADH: Saudi Arabia and the UK are deepening mining ties as the British government seeks to secure critical minerals for industries such as artificial intelligence and emerging technologies. 

On Jan. 14, the two nations signed an agreement to collaborate on mineral resource development, emphasizing sustainable practices, technology transfer, and economic growth. 

In an interview with Arab News on the sidelines of the ongoing Future Minerals Forum, the UK Minister for Industry, Sarah Jones, highlighted the growing collaboration between the two Kingdoms. 

She emphasized the importance of partnerships in the critical minerals sector, which are vital for advancements in AI, green energy transitions, and emerging technologies. 

“The quantity of critical minerals we’re going to need in the future is significantly bigger than we have today, and I think Saudi Arabia has taken quite a leadership role with the Future Minerals Forum, convening so many countries to come together and talk about this,” Jones said. 

The minister outlined the challenges and opportunities as both countries work to address the surging global demand for essential minerals. She expressed confidence in the potential of the UK-Saudi partnership to tackle these challenges effectively. 

The UK’s expertise in mining finance, as well as it universities — renowned for research and technical knowledge — position it as a valuable partner for Saudi Arabia in mining and exploration.

Jones emphasized that Britain’s focus on mining finance, combined with its global academic reputation, strengthens the collaboration. 

“We wanted to have a relationship where we work together on some of these challenges, and I think this is the start of what will be a strengthening relationship going forward,” she said. 

The minister expressed excitement about future collaborations, including sustainable mining practices, innovative financing structures, and technological advancements to meet the growing demand for critical minerals. 

The UK government, under Prime Minister Keir Starmer, is taking a proactive approach to shaping its industrial future, especially in sectors integral to the global green transition and technological progress. 

“We’re looking at things slightly differently,” said Jones. “We’re trying to be more proactive in devising what are the industries of the future that we need in the UK. Where do we get our supply chains from? How do we make sure we’re secure?” 

As part of its new industrial strategy, Britain is prioritizing critical minerals, recognizing their essential role in advanced manufacturing, green energy, and AI. 

Jones highlighted the government’s determination to position the UK as a key player in the global minerals market and equip domestic industries for future demands. 

“We’re setting the directions of all of our companies and our businesses know the sectors that we want to grow and the direction that we want to go in,” she said. 

To support this strategy, the British government has established funding mechanisms like the National Wealth Fund and UK Export Finance to mitigate risks associated with critical minerals mining, technology development, and sustainable practices. 

In addition to the UK-Saudi partnership, Jones discussed opportunities for joint investment in mining projects in third countries. 

She proposed collaboration on initiatives in Africa, where both nations have significant interests and could combine resources to meet growing mineral demands. 

“Can the UK and Saudi Arabia have a project in an African country? We have several kinds of ideas, thoughts that we could do together,” she said. 

Jones also highlighted the rising interest in mining within the UK, citing developments such as lithium and tin mining in Cornwall, which could support both the UK’s industrial needs and the global green transition. 

The conversation touched on the ethical and environmental challenges associated with mining. Jones acknowledged the industry’s troubled history, including issues of worker mistreatment, environmental damage, and resource mismanagement. 

As demand for minerals grows, she stressed the need for mining practices to evolve, becoming more sustainable and equitable. 

“Historically, mining has been difficult in terms of the way that countries and people have been treated,” Jones said. “We’ve got to make sure where mining is sustainable and helping the countries that are supporting those mines, we have to make sure we’re creating wealth there and these things are hard, and that’s why countries need to work together.” 

She concluded by emphasizing the importance of global cooperation in addressing critical mineral challenges. 

“I think we can talk to each other between Saudi Arabia and ourselves about how some of these funding mechanisms work, how we support each other’s companies, and how we develop and help other countries to, to develop what they need as well. But it’s a huge challenge and that’s why we’re here,” Jones said.


Saudi Arabia’s non-oil sector growth continues in May as PMI climbs to 55.8

Updated 03 June 2025
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Saudi Arabia’s non-oil sector growth continues in May as PMI climbs to 55.8

RIYADH: Saudi Arabia’s non-oil private sector registered an improvement in operating conditions in May, as the Riyad Bank Purchasing Managers’ Index rose to 55.8, signaling continued economic expansion, a new analysis showed.

According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the index edged up from 55.6 in April, remaining well above the 50 mark that separates growth from contraction.

However, the figure remained below the recent high of 60.5 recorded at the beginning of 2025.

The latest data pointed to a sharp increase in new order volumes, which rebounded after weakening in April.

Companies linked the increase to stronger customer demand, improved sales performance, industrial development, and marketing efforts. Foreign orders also rose, but at the slowest pace in seven months.

“Saudi Arabia’s non-oil economy maintained solid momentum in May, with the PMI rising slightly to 55.8 from 55.6. While the pace of output growth eased to its softest since September 2024, overall activity remained robust,” Naif Al-Ghaith, chief economist at Riyad Bank, said.

He added: “Firms reported improvements in demand, new project starts, and greater labor capacity as key drivers. This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter.”

The survey showed that output continued to grow, though at a softer rate for the fourth straight month. The construction sector recorded the strongest rises in both output and new business.

Employment in the non-oil sector rose sharply in May, with the increase in staffing levels among the fastest seen in over a decade. Surveyed businesses attributed this to expansion efforts and higher output needs.

“Looking ahead, sentiment among non-oil firms has strengthened visibly. Business expectations looking forward reached their highest level since late 2023. Hiring momentum remained strong as companies expanded teams to support output growth, particularly in operations and sales,” Al-Ghaith said.

Meanwhile, purchasing activity surged to a 14-month high. However, firms showed greater caution toward stockpiling, resulting in a slower accumulation of inventories compared to April.

The report also indicated that input prices rose sharply, mainly due to increased supplier charges for raw materials.

Wage-related inflation, however, eased. Despite cost pressures, companies reduced their selling prices, largely driven by a decline in service sector charges and competitive market conditions.

The survey data were collected from around 400 private sector companies across the manufacturing, construction, wholesale, retail, and services sectors.


Closing Bell: Saudi main index closes in red at 10,832 

Updated 03 June 2025
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Closing Bell: Saudi main index closes in red at 10,832 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 17.66 points, or 0.16 percent, to close at 10,832.43. 

The total trading turnover of the benchmark index was SR3.55 billion ($946 million), with 123 of the listed stocks advancing and 106 declining.  

The Kingdom’s parallel market Nomu gained 65.84 points to close at 27,049.84.  

The MSCI Tadawul Index edged down by 0.08 percent to 1,383.41.  

The best-performing stock on the main market was Fawaz Abdulaziz Alhokair Co., with its share price surging by 6.71 percent to SR17.50.  

The share price of Naseej International Trading Co. also rose by 6.14 percent to SR83.  

Saudi Research and Media Group also saw its stock price rising by 5.92 percent to SR150.40.  

Conversely, the share price of United Carton Industries Co., dropped by 3.98 percent to SR41.  

On the announcements front, Meyar Co. said that it received a contract worth SR1.67 million from the Municipality of Unaizah.  

In a Tadawul statement, the company revealed that the agreement includes the supply of curbs stones and interlock tiles to the municipality. It added that there are no related parties involved in the deal.  

The share price of Meyar Co. edged up by 0.93 percent to SR54.  

Dar Almarkabah for Renting Cars Co. said that it signed a chauffeur-driven car rental contract valued at SR6.98 million with Wareed Health Medical Co.  

In a Tadawul statement, the company revealed that the contract period is valid for 24 months, adding that the impact of the deal will be visible in the firm’s financials during the second quarter of this year.  

The share price of Dar Almarkabah for Renting Cars Co. was unchanged at SR2.47.  


Qatar records $137m budget deficit in Q1, ending 3-year surplus streak

Updated 03 June 2025
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Qatar records $137m budget deficit in Q1, ending 3-year surplus streak

RIYADH: Qatar posted its first budget deficit in more than three years — a 500 million Qatari riyal ($137 million) shortfall in the first quarter of 2025, the Ministry of Finance reported. 

Ministry figures show the same period last year registered a 2.06-billion-riyal surplus. 

This comes as Doha undertakes a cautious fiscal recalibration mid-way through its Third National Development Strategy, relying on conservative oil-price assumptions, program-based budgeting, and a long-anticipated value-added tax rollout to diversify revenue. 

In a series of posts on X, the ministry stated: “The State Budget recorded a deficit of QR 0.5 bn in Q1 2025, and the deficit was financed through debt instruments.”  

It added: “The value of contracts with foreign companies reached QR 1.5 billion in the first quarter of 2025, representing a 50 percent increase compared to the same quarter last year.” 

The budget figures showed that revenue fell 7.5 percent year on year to 49.4 billion riyals, with hydrocarbons supplying 42.5 billion riyals while non-oil receipts held at 6.9 billion riyals. 

Spending slipped 2.8 percent to 49.9 billion riyals, comprising 6.9 billion riyals for salaries and wages, 18.5 billion riyals in other current costs, and a combined 14.3 billion riyals for major and minor capital projects. 

Despite the tighter envelope, procurement remained brisk: state entities awarded about 6.4 billion riyals in tenders and auctions, including 1.5 billion riyals to overseas contractors — up 50 percent on the same period last year. 

The ministry’s Sector Business Index showed the busiest spending concentrations in municipality and environment, health, energy and the General Secretariat of the Council of Ministers. 

The International Monetary Fund’s February 2025 assessment said Qatar’s economy was moving past the post-World Cup slowdown. 

Real gross domestic product is expected to grow about two percent in 2024-25, then average roughly four-and-three-quarters percent once the planned expansion of liquefied natural gas output and the early reforms of the Third National Development Strategy take effect. 

Inflation should fall to 1 percent this year and settle near 2 percent over the medium term, it added. 

Lower hydrocarbon prices cut the 2023 current-account and budget surpluses to 17 percent and five-and-a-half percent of national output, with a further easing underway; however, both balances should remain positive as gas export volumes rise. 

Banks remain sound, holding capital equal to about one-fifth of risk-weighted assets, while problem loans stay below four percent and are well provisioned.  

The IMF urged Doha to introduce a value-added tax, adopt a medium-term budget anchor, sharpen the efficiency of public spending, deepen financial-sector oversight, and accelerate private sector-led diversification to secure long-run resilience. 


Saudi Aramco secures $5bn in bond sale to bolster financial flexibility

Updated 03 June 2025
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Saudi Aramco secures $5bn in bond sale to bolster financial flexibility

RIYADH: Saudi Aramco has raised $5 billion through a three-tranche bond issuance under its Global Medium-Term Note Program, the company said.   

The senior notes, which were priced on May 27 and listed on the London Stock Exchange, include $1.5 billion maturing in 2030 at a 4.75 percent coupon, $1.25 billion maturing in 2035 at 5.375 percent, and $2.25 billion maturing in 2055 with a 6.375 percent coupon.  

This follows Aramco’s $6 billion bond sale in July 2024 and comes amid heightened Gulf debt market activity, including Saudi Arabia’s Public Investment Fund, which has raised $5.25 billion so far in 2025 through multiple issuances — including a $4 billion bond in January — and Abu Dhabi’s Masdar, which recently issued a $1 billion green bond. 

Ziad Al-Murshed, executive vice president of finance and chief financial officer at Aramco, said: “The strong demand for our new bond offering, as reflected in the diversified orderbook, is a testament to global investors’ confidence in Aramco’s financial resilience and robust balance sheet.”   

He added: “Pricing the offering with no new issuance premium across all tranches clearly reflects Aramco’s unique long-term credit proposition.”   

The bond offering saw tightened spreads across all maturities, indicating strong investor interest.  

The five-year notes were priced at 80 basis points over US Treasuries, while the 10- and 30-year tranches were set at 95 and 155 basis points respectively — each tighter than initial price guidance earlier in the day.  

Proceeds from the latest issue will be used for general corporate purposes, as the state oil giant continues to support Saudi Arabia’s Vision 2030 diversification strategy.   

The issuance comes as Aramco navigates a more challenging environment marked by declining profits and lower crude prices.   

The company reported a 4.6 percent drop in first quarter earnings, citing weaker sales and rising operating costs. In March, it announced plans to cut its dividend by nearly a third due to declining free cash flow. 

Amid these headwinds, Aramco is also exploring asset sales and capital market strategies to maintain liquidity and finance its global expansion ambitions.   

In May, the company published a new prospectus for a sukuk issuance program, signaling potential future activity in debt markets.   

The sukuk, also to be listed on the London Stock Exchange, may be issued over the next 12 months. 

Meanwhile, Masdar — Abu Dhabi’s renewable energy company — also returned to the debt market in May with a $1 billion green bond issuance.   

The deal was split into two equal tranches of $500 million each, with maturities of five and ten years and coupon rates of 4.875 percent and 5.375 percent, respectively.   

The bond was significantly oversubscribed, receiving $6.6 billion in peak orders, which highlights the growing global appetite for sustainable investment instruments.  


Saudi Arabia’s economic growth to outstrip US, UK, France in 2026: OECD

Updated 03 June 2025
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Saudi Arabia’s economic growth to outstrip US, UK, France in 2026: OECD

RIYADH: Saudi Arabia’s real gross domestic product is projected to grow by 2.5 percent in 2026, a rate that surpasses forecasts for the US, Germany, the UK, and France, according to an analysis.

In its latest report, the Organization for Economic Cooperation and Development said that the Kingdom’s economy is projected to grow by 1.8 percent this year, also higher than several of its G20 peers. 

In April, the International Monetary Fund projected that the Kingdom’s economy would witness a growth of 3 percent in 2025 and would further accelerate to 3.7 percent the following year. 

In its latest report, the OECD also downgraded its global economic growth prospects from 3 percent to 2.9 percent for both 2025 and 2026. 

“The global outlook is becoming increasingly challenging. Substantial increases in trade barriers, tighter financial conditions, weakened business and consumer confidence, and elevated policy uncertainty all pose significant risks to growth,” said the OECD. 

It added: “Global GDP growth is projected to slow from 3.3 percent in 2024 to 2.9 percent this year and next year based on the assumption that tariff rates as of mid-May are sustained.” 

Collectively, G20 nations are expected to witness an economic growth of 2.9 percent in both 2025 and 2026, with India bucking the trend amid economic volatility. 

According to the report, India’s GDP is expected to expand by 6.3 percent in 2025 and 6.4 percent in 2026. 

The OECD added that China’s economy will grow by 4.7 percent and 4.3 percent in 2025 and 2026, respectively, while the US is expected to witness an economic growth of 1.6 percent in 2025 and 1.5 percent in 2026. 

The French economy is forecast to expand by 0.6 percent in 2025 before slightly accelerating to 0.9 percent in 2026, and the OECD projects the UK’s economy will advance by 1.3 percent in 2025, while it will decelerate to 1 percent growth next year. 

According to the report, Germany’s GDP is set to grow by 1.2 percent during 2026.

The OECD further stated that Saudi Arabia is expected to maintain a healthy inflation rate of 1.9 percent in 2025 and 1.8 percent in 2026, respectively. 

In April, the IMF also predicted that inflation in the Kingdom would remain contained, with the average annual rate holding steady at 2.1 percent in 2025 and easing slightly to 2 percent the following year. 

Collectively, among G20 nations, inflation is expected to average 3.6 percent in 2025 and 3.2 percent in 2026, according to OECD. 

“Rising trade costs — particularly in countries implementing new tariffs — are likely to fuel inflation, although this may be partly offset by softer commodity prices. Risks to the outlook remain substantial,” said OECD. 

It added: “Inflation may also stay elevated for longer than anticipated, especially if inflation expectations continue to rise. On the upside, an early reversal of recent trade barriers could boost economic growth and help ease inflationary pressures.” 

The OECD emphasized that governments should work together to resolve their concerns about the global trading system rather than escalating tensions through more retaliatory trade barriers.

The analysis urged governments to implement reforms that would reduce trade fragmentation, along with strengthening the supply chain by diversifying both suppliers and buyers. 

The OECD also highlighted the importance of implementing effective monetary policies, noting that central banks should remain vigilant to prevent disinflation in times of heightened uncertainty and increased trade costs. 

“Provided trade tensions do not intensify further and inflation expectations remain anchored, policy rate reductions can continue in economies where inflation is projected to moderate,” added the report. 

The study also emphasized the need to increase investments to ensure resilient growth among nations, suggesting that governments should implement structural policy reforms to revitalize the business environment.

According to the OECD, governments should foster business dynamism by promoting competition, reducing entry barriers, and supporting entrepreneurship. 

“Reducing policy uncertainty is particularly important, as it would lower the risk premia businesses build into their hurdle rates, thereby encouraging capital spending,” added the OECD.