عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Global Investment Requests for Saudi Industrial Cities Soar

The signing ceremony for the establishment and development of 72 factories in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The signing ceremony for the establishment and development of 72 factories in Riyadh, Saudi Arabia (Asharq Al-Awsat)
TT
TT

Global Investment Requests for Saudi Industrial Cities Soar

The signing ceremony for the establishment and development of 72 factories in Riyadh, Saudi Arabia (Asharq Al-Awsat)
The signing ceremony for the establishment and development of 72 factories in Riyadh, Saudi Arabia (Asharq Al-Awsat)

The Executive Vice President of Business Development of the Saudi Authority for Industrial Cities and Technology Zones (MODON) Eng. Ali Al Omeir revealed the presence of global requests to enter the industrial cities.

Omeir emphasized the significant efforts made by Saudi Arabia’s industrial system to attract international investments through participation, direct communication, and targeting global events.

In an interview with Asharq Al-Awsat, Omeir said that MODON has successfully attracted domestic and foreign investments amounting to a cumulative investment of over SAR 405 billion ($108 billion).

The number of operational factories in the Kingdom reached 5,926, along with 290 logistical facilities, contributing significantly to diversifying the national income sources and achieving the goals of Saudi Vision 2030 and the National Industrial Strategy.

These achievements are aimed at establishing a sustainable industrial economy and an attractive investment environment.

“Spread across all regions of the Kingdom, there are 36 industrial cities with developed areas exceeding 198 million square meters. The total number of contracts within these cities reached 7,242, encompassing industrial, logistical, and investment sectors,” revealed Omeir.

Moreover, he clarified that MODON is simultaneously working on encouraging the private sector to contribute to the establishment, development, management, operation, and maintenance of industrial cities.

Omeir also stated that there is an intention to expand in establishing industrial cities in the Kingdom.

He pointed out that the existing industrial cities are partially developed, with continuous development based on market needs.

“Today, we can identify the cities that require further development, and in line with the market and its demands, we are working on developing this infrastructure,” added Omeir.

Omeir’s remarks came following MODON inaugurating 98 ready-made factories worth SAR 100 million ($26.6 million).

Regarding the inauguration of the new factories, Omeir stated that it marks a new phase of expansion in the partnership between the public and private sectors.

This is exemplified by the launch of the “Producers 3” project in the third industrial zone in Jeddah, consisting of 98 factories spanning over an area exceeding 92,000 square meters.

The launch of the factories highlighted the importance of building conscious partnerships that contribute to achieving MODON’s objectives.

Most Viewed

 
 
Business

Euro Zone Poised to Enter Trade Quagmire as Trump Wins

A container ship unloads its cargo in the German port of Hamburg (Reuters)
A container ship unloads its cargo in the German port of Hamburg (Reuters)
TT
TT

Euro Zone Poised to Enter Trade Quagmire as Trump Wins

A container ship unloads its cargo in the German port of Hamburg (Reuters)
A container ship unloads its cargo in the German port of Hamburg (Reuters)

As Trump 2.0 becomes a reality, Europe is poised to enter a new geopolitical and trade quagmire with its biggest trading partner.

Donald Trump's victory may harm Europe's economy as proposed 10% US tariffs risk hitting European exports such as cars and chemicals, eroding Europe's GDP by up to 1.5% or about €260 billion.

Analysts warn of European Central Bank (ECB) rate cuts, euro weakness, and a recession risk.

According to several economic analyses, there is broad agreement that Trump's proposed 10% universal tariff on all US imports may significantly disrupt European growth, intensify monetary policy divergence, and strain key trade-dependent sectors such as autos and chemicals.

The long-term effects on Europe's economic resilience could prove even more significant if tariffs lead to protracted trade conflicts, prompting the European Central Bank (ECB) to respond with aggressive rate cuts to cushion the impact, according to Euronews.

Trump's proposed across-the-board tariff on imports, including those from Europe, could profoundly impact sectors such as cars and chemicals, which rely heavily on US exports.

Data from the European Commission shows that the European Union exported €502.3 billion in goods to the US in 2023, making up a fifth of all non-European Union exports.

European exports to the US are led by machinery and vehicles (€207.6 billion), chemicals (€137.4 billion), and other manufactured goods (€103.7 billion), which together comprise nearly 90% of the bloc's transatlantic exports.

ABN Amro analysts, including head of macro research Bill Diviney, warn that tariffs “would cause a collapse in exports to the US,” with trade-oriented economies such as Germany and the Netherlands likely to be hardest hit.

According to the Dutch bank, Trump's tariffs would shave approximately 1.5 percentage points off European growth, translating to a potential €260 bn economic loss based on Europe's estimated 2024 GDP of €17.4 tn.

Should Europe's growth falter under Trump's tariffs, the European Central Bank (ECB) may be compelled to respond aggressively, slashing rates to near zero by 2025.

In contrast, the US Federal Reserve may continue raising rates, leading to “one of the biggest and most sustained monetary policy divergences” between the ECB and the Fed since the euro's inception in 1999.

Dirk Schumacher, head of European macro research at Natixis Corporate & Investment Banking Germany, suggests that a 10% tariff increase could reduce GDP by approximately 0.5% in Germany, 0.3% in France, 0.4% in Italy, and 0.2% in Spain.

Schumacher warns that “the euro area could slide into recession in response to higher tariffs.”

According to Goldman Sachs' economists James Moberly and Sven Jari Stehn, the broad tariff would likely erode eurozone GDP by approximately 1%.

Goldman Sachs analysts project that a 1% GDP loss translates into a hit to earnings per share (EPS) for European firms by 6-7 percentage points, which would be sufficient to erase expected EPS growth for 2025.