LONDON: Billionaire currency trader George Soros has warned that a vote for Britain to leave European Union will trigger a plunge in the pound — without benefits that can come with a devalued currency.
In an op-ed piece in Tuesday’s Guardian, Soros says a decision to leave the 28-nation bloc in Thursday’s vote will cause sterling to drop quickly. Soros predicted the drop will be more dramatic than when Britain crashed out of the European Exchange Rate Mechanism in September 1992.
Soros substantially profited — at the expense of the Bank of England and the British government — when the pound lost 15 percent of its value.
He said it is reasonable to assume that after a Brexit vote the pound would fall by at least the same level of 15 percent or possibly more than 20 percent from its present level of $1.46 to below $1.15. The pre-referendum trading range was $1.50 to $1.60
“If sterling fell to this level, then ironically one pound would be worth about one euro — a method of “joining the euro” that nobody in Britain would want,” he wrote.
Soros says those who believe a “leave” vote will have no impact on their personal finances are guilty of “wishful thinking.”
He said that a large devaluation would hurt the economy for several reasons, the first of which being that the Bank of England would not cut interest rates — which are already at a record low.
Further, Britain’s current account deficit is much larger relatively than it was in 1992, meaning that Britain is dependent on foreign capital. With uncertainty dogging the terms of a divorce, Soros argued capital will move in the other direction.
“A post-Brexit devaluation is unlikely to produce the improvement in manufacturing exports seen after 1992, because trading conditions would be too uncertain for British businesses to undertake new investments, hire more workers or otherwise add to export capacity,” he said.
Soccer star David Beckham also threw his support behind those campaigning to keep Britain in the European Union, describing Europe as a team that needs to play together to succeed.
“We live in a vibrant and connected world where together as a people we are strong,” the former England captain said in a statement released Tuesday. “For our children and their children, we should be facing the problems of the world together and not alone.”
George Soros warns of Brexit threat to pound
George Soros warns of Brexit threat to pound
Closing Bell: Saudi main index closes in green before Eid holidays
RIYADH: Saudi Arabia’s Tadawul All Share Index climbed on Wednesday, gaining 172.1 points, or 1.59 percent, to close at 11,004.53.
The total trading turnover on the benchmark index was SR4.61 billion ($1.23 billion), with 191 listed stocks advancing and 50 declining.
The Kingdom’s parallel market Nomu surged by 257.9 points to close at 27,307.74.
Meanwhile, the MSCI Tadawul Index edged up by 1.67 percent to 1,406.49.
The best-performing stock on the main market was Saudi Industrial Investment Group, with its share price surging 7.03 percent to SR17.36.
The share price of ACWA Power Co. also rose by 6.72 percent to SR269.80.
Al-Babtain Power and Telecommunication Co. saw its stock price increase by 5.40 percent to SR5.40.
Conversely, the share price of Saudi Steel Pipe Co. fell by 6.33 percent to SR56.20.
Saudi Research and Media Group also saw a dip, with its share price easing 2.26 percent to SR127.
On the announcements front, Saudi National Bank completed its offer of Saudi riyal-denominated Additional Tier 1 sukuk, with the settlement finalized on June 3.
According to a statement on the Saudi Exchange dated May 11, the issuance was conducted through a private offer to eligible investors in the Kingdom. The total value of the sukuk offering amounted to SR1.73 billion.
The bank issued 1,730 sukuk, each with a par value of SR1 million. The sukuk will offer an annual return of 6 percent from the issue date until June 3, 2030.
The share price of Saudi National Bank increased by 0.88 percent to close at SR34.45.
The announcement coincided with the implementation of the unified regulation for cross-border registration of investment funds among Gulf Cooperation Council countries, which came into effect in 2025, according to the Capital Market Authority.
The regulation outlines requirements for registering and marketing investment funds across GCC countries and introduces a dedicated regulatory guide.
It aims to clarify procedures for handling both local and Gulf-based funds, enhance financial market services, and reduce regulatory challenges.
Additionally, the framework seeks to support mechanisms that attract international investments to the Saudi financial market and boost foreign ownership in investment funds.
The broader goal is to improve liquidity in regional financial markets, enhance the competitiveness of GCC economies, and foster integration by unifying the policies and systems governing domestic, regional, and foreign investment activities.
The regulation also aims to ensure a transparent and stable investment environment.
Under the framework, the legislative committee in each host country will have the authority to set standards for approving fund registrations and supervising funds within its jurisdiction, including overseeing the appointed agent and their interactions with investors.
Cross-border registration must be conducted through the capital market authorities of both the fund’s country of origin and the host country.
The regulation allows investment funds established in any GCC member state to be promoted in other countries applying the framework.
It also outlines the process for offering Saudi funds in Gulf markets, with a focus on aligning with regulatory review mechanisms and cross-border registration requirements to ensure full compliance with approved guidelines.
Saudi POS spending hits $4bn pre-Adha, fueled by increased spending across all sectors
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 33 percent to SR15.5 billion ($4.15 billion) in the week preceding Eid Al-Adha, driven by increased spending across all sectors.
The latest data from the Saudi Central Bank, also known as SAMA, showed that the clothing and footwear sector led the growth seen in the week ending May 31, registering the largest jump in transaction value, up 72.7 percent to SR1.2 billion.
The sector also saw a 61.6 percent rise in the number of transactions, reaching 8.6 million.
The education sector followed, recording a 61.6 percent increase in transaction value to SR242.1 million. Telecommunication spending ranked next, rising 44.5 percent to SR136.2 million, with transactions up 19.9 percent to 2.1 million.
Food and beverages — the sector with the biggest share of total POS value — recorded a 34.2 percent increase to SR2.2 billion.
Transportation spending rose 29.7 percent to SR898.8 million, while restaurants and cafes saw a 24.3 percent increase, totaling SR2 billion and claiming the second-biggest share of this week’s POS.
The smallest spending gains were in hotels, rising by 9 percent to SR207.5 million, and construction and building materials, which increased by 12.9 percent to SR267.6 million.
Health outlays rose by 28.4 percent to reach SR952.8 million, while the public utilities sector increased by 29.1 percent to SR55.3 million.
Spending on electronics followed the trend, rising 23.1 percent to SR187.2 million, and recreation and culture edged up 42.5 percent to SR324.3 million.
Miscellaneous goods and services claimed the third-largest share of total transactions value, with an uptick of 34.4 percent to SR1.9 billion.
The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 39.9 percent of the week’s total spending, amounting to SR6.2 billion.
Geographically, Riyadh dominated POS transaction value, with expenses in the capital reaching SR5.4 billion, a 42.7 percent increase from the previous week.
Jeddah followed with a 27.7 percent rise to SR2.1 billion, while Dammam ranked third, up 25.1 percent to SR776.5 million.
Hail saw the biggest weekly increase in transaction value, inching up 52.6 percent to SR262.6 million, followed by Tabuk with a 51.3 percent uptick to SR323.6 million.
Hail recorded 4.3 million deals in transaction volume, up 24.7 percent, while Tabuk reached 5.2 million transactions, rising 21.1 percent.
Hong Kong-based Gaw Capital plans to step up Middle East investments
- Gaw Capital targets UAE, Saudi Arabia for investments
- Firm plans separate investment vehicle for Middle East
HONG KONG: Gaw Capital plans to bolster investments in the Middle East, its top executive said, as the Hong Kong-based multi-asset investment manager looks to tap into the post-COVID boom in the region’s real estate and other industrial sectors.
Christina Gaw, Gaw’s managing principal and global head of capital markets, said the firm is looking at real estate and other businesses in the UAE and Saudi Arabia as their population has a large demand for real assets.
Gaw acquired a residential building in Abu Dhabi in May for more than $150 million, and signed a pact in November with Expo City Dubai and Lingang Group to explore creating the Expo Life Science Park in Dubai.
The firm, which had $34.4 billion of assets under management as of the end of 2024, expects to close another deal in the region in the second half of the year, said Gaw, whose two elder brothers founded the company in 2005.
Gaw’s interest in the Middle East comes against the backdrop of a post-pandemic property boom there, fueled by business demand and foreign investment.
“(The Middle East) is very wealthy, what can you bring to them? It’s the expertise ... they want to attract talents and different businesses,” Gaw said in an interview. “And we have tenants and business who want to expand there, so we act as a bridge ... to provide them funding and local connections.”
The firm plans to set up a separate vehicle to build an investment track record in the Middle East first before using its main funds in the future.
Gaw, whose main focus has been Greater China and in recent years in Japan and Australia, is also raising a $2 billion fund for private equity and private credit opportunities in Asia Pacific.
The fund is receiving interest from Middle Eastern and Asian investors, as well as in North America, who are looking to diversify amid changing geopolitics.
“Currently the US has many uncertainties. Investors who have been overweighting the US and have done well for many years now may say, ‘I need a little level play’,” Gaw said.
“Asia, on the other hand, has underperformed in the past five years, creating relative value, and people feel they need a repositioning and add some positions in Asia.”
Besides the Middle East, Gaw this year also made investments including more than $1 billion in the Tokyu Plaza Ginza mall in Tokyo with a joint venture partner, and a 45 percent stake in Agility Asset Advisers, a real estate manager in Japan.
In its home market, Gaw said that the firm was focusing on a private credit business linked to upper-middle class residential projects, and was in talks with developers with liquidity needs as well as banks that are selling their non-performing loans.
Oil Updates — crude steady as OPEC+ ups output while wildfires curb Canadian supply
LONDON: Oil prices held steady on Wednesday amid global trade tensions and as ongoing OPEC+ output increases were offset by a hit to Canadian supply from wildfires.
Brent crude futures inched 6 cents higher, or 0.1 percent, to $65.69 a barrel by 3:03 p.m. Saudi time. US West Texas Intermediate crude was 8 cents higher, also around 0.1 percent, at $63.49.
Plans by OPEC+ producers to again increase output by 411,000 barrels per day (bpd) in July were weighing on the market, said Janiv Shah, vice president of oil commodity markets analysis at Rystad Energy.
Yet there was some support as wildfires reduced Canada’s production by some 344,000 bpd, according to Reuters calculation.
Both benchmarks climbed about 2 percent on Tuesday to a two-week high, driven by worries about supply disruption and expectations that OPEC member Iran would reject a US nuclear deal proposal key to easing sanctions on it.
Iran’s Supreme Leader Ayatollah Ali Khamenei said on Wednesday that abandoning uranium enrichment was “100 percent” against the country’s interests, rejecting a central US demand in talks to resolve a decades-long dispute over Tehran’s nuclear ambitions.
“Geopolitical tensions are simmering in the background, with risks to fundamentals skewed to the upside, as Russian and Iranian oil exports remain elevated,” Barclays analyst Amarpreet Singh said in a research note late on Tuesday.
Russia, however, posted a 35 percent decline in May oil and gas revenue on Wednesday, which could make Moscow more resistant to further OPEC+ output hikes as such moves weigh on crude prices.
US President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, days after Trump accused China of violating a deal to roll back tariffs and trade curbs.
On Tuesday, the Organization for Economic Co-operation and Development cut its global growth forecast as the fallout from Trump’s trade war takes a bigger toll on the US economy.
Lebanon embraces digital transformation as key to reform and recovery
- Aoun calls it a ‘sovereign decision’ to combat corruption and modernize governance
BEIRUT: Lebanon has pledged to pursue comprehensive digital transformation, with President Joseph Aoun framing it as the nation’s best hope to tackle corruption, modernize governance, and engage its skilled diaspora in rebuilding efforts.
Speaking at the “Smart Government, Diaspora Experts for Lebanon” conference in Beirut on June 3, Aoun described the initiative as a “sovereign decision to build a better future.”
The event, organized by the Lebanese Executives Council, aimed to connect Lebanon’s global talent pool with efforts to revitalize both public and private sectors.
The conference’s core themes included smart governance, public sector reform, and private sector collaboration, all driven by digital innovation. Aoun emphasized that Lebanon must abandon outdated and corrupt administrative structures in favor of efficient, transparent systems.
“Digital transformation is not a technical choice. Digitalization is not just a government project; it is a national project.” He also announced Lebanon’s application to join the Digital Cooperation Organization, a global body founded in 2020 to promote inclusive growth in the digital economy.
Aoun criticized systemic corruption that forces citizens to navigate bureaucracy through bribery or political favors. He highlighted the need for a government that serves all Lebanese equally, free from sectarian or partisan influences.
“We want Lebanon to open up to regional and international partnerships and to be eligible for foreign investments. This goal is an absolute necessity, indispensable and unavoidable,” Aoun said. “The time has come for them (the diaspora) to achieve it for their homeland and in their homeland.”
The day-long conference brought together ministers, private sector leaders, and diaspora experts for panel discussions on digitizing Lebanon’s institutions. Topics included the creation of a national digital ID, policy harmonization, and leveraging technology to reconstruct public services.
In an interview with Arab News, LEC President Rabih El-Amine highlighted the importance of engaging the Lebanese diaspora.
“We know by fact that diaspora is willing to help, but they don’t have the medium to offer this help, and we know by fact that the government needs this help, but they don’t know how to reach the diaspora,” he said.
El-Amine stressed that despite weak governance, Lebanon’s private sector and diaspora have helped sustain the country. However, implementing modern laws and digital systems is now critical. He called the digital ID system a foundational step toward enabling services like passport renewals and license issuance.
“This is probably the starting point. But I think the biggest challenge for us is how we can make the government and the parliament work together in order to issue modern laws for this system to take place,” he added.
Hajar El-Haddaoui, director general of the DCO, expressed strong confidence in Lebanon’s digital potential, citing the country’s talent pool and expansive diaspora.
“We trust that Lebanon does have all the ingredients to succeed during this digital economy transformation,” she told Arab News.
She said the DCO’s support will focus on investment, public-private partnerships, and capacity-building, including the Digital Economy Navigator program, which helps countries assess and close gaps in digital readiness.
El-Haddaoui underscored the importance of aligned policies, strong infrastructure, and openness to international cooperation.
“Any digital economy or digital transformation needs harmonization of policies. That’s really important and critical. Working on a regulation and standard of regulation is really one of the pillars of successful digital transformation,” she said.
Speaking to Arab News, Fadi Makki, Lebanon’s minister of state for administrative development affairs, outlined key reforms to upgrade the country’s administrative structures.
“We’re far behind in digital readiness. We’re trying to catch up through digital transformation, skilling, and reskilling programs,” he said.
Makki explained that Lebanon lacks planning and performance monitoring units that are standard in functional governments. He proposed modernizing human resources and encouraging the private sector to deliver services, while the government ensures oversight.
“We don’t want to compete with them (the private sector), but at the same time, we want to create opportunities for them while ensuring we provide the necessary oversight like any government,” he told Arab News..
“One of the missing functions in government is planning and performance monitoring. We don’t have that. So, part of our work is creating these basic units, not just centrally but eventually in every ministry. Without them, we’re building on weak foundations,” he added.
The event also featured remarks from Lebanese American University’s Chaouki Abdallah and panels with Minister of Technology and Artificial Intelligence Kamal Shehadi, along with global figures like Jad Bitar of the Boston Consulting Group.
In closing, Prime Minister Nawaf Salam thanked all participants for their contributions and reaffirmed the government’s resolve.
“Digital transformation in Lebanon is not a luxury but a necessity and a reform,” he said. “It directly serves the citizens, reduces corruption, and enhances the quality of life. It is also a prerequisite for economic growth.”
Salam called for full inter-ministerial coordination, asserting, “Lebanon cannot remain outside the digital world or on its margins.”
He concluded: “We are determined to be part of the regional and global digital economy and to reconnect Lebanon with the chains of knowledge and production in the 21st century.”
As Lebanon continues to navigate a complex political and economic crisis, the conference marked a clear call for reform. The message from both domestic and diaspora leaders was unambiguous: digital transformation is not only possible—it is imperative.
