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)
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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.



Oil Prices Rise as Investors Eye US Election Fallout

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019.  REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
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Oil Prices Rise as Investors Eye US Election Fallout

FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019.  REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo

Oil prices rose on Thursday following a sell-off triggered by the US presidential election, as risks to oil supply from a Trump presidency and a hurricane building in the Gulf Coast outweighed a stronger US dollar and higher inventories.
Brent crude oil futures were up 65 cents, or 0.87%, at $75.57 per barrel by 0400 GMT. US West Texas Intermediate (WTI) crude gained 54 cents or 0.75% to $72.23, Reuters said.
Concerns around a Trump presidency squeezing oil supply from Iran and Venezuela as well as an approaching storm "more than offset the post-election impact of a stronger US dollar and ... higher-than-expected US inventories," Tony Sycamore, a market analyst with IG, wrote in a note.
Trump's election had initially triggered a sell-off that pushed oil prices down by more than $2 as the US dollar rose to its highest level since September 2022. But the front-month contracts pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.
"Historically, Trump's policies have been pro-business, which likely supports overall economic growth and increases demand for fuel. However, any interference in the Fed's easing policies could lead to further challenges for the oil market," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"With the bumper surge in the dollar hovering at near 4-month highs, oil seems to be talking massive headwinds in the aftermath of the US election results."
The upside to oil markets may be limited to the short to medium term as OPEC is expected to increase supply capacity in January, while historical trends do not suggest sanctions will prevent India and China from continuing to purchase oil from Russia or Iran, Sachdeva said.
Donald Trump is expected to reimpose his "maximum pressure policy" of sanctions on Iranian oil. That could cut supply by as much as 1 million barrels per day, according to an Energy Aspect estimate.
Trump in his first term had also put in place harsher sanctions on Venezuelan oil, measures that were briefly rolled back by the Biden administration but later reinstated.
In North America, Hurricane Rafael intensified into a category 3 hurricane on Wednesday, and about 17% of crude oil production or 304,418 barrels per day in the US Gulf of Mexico had been shut in response, the US Bureau of Safety and Environmental Enforcement said.
US crude inventories rose by 2.1 million barrels to 427.7 million barrels in the week ending on Nov. 1, the US Energy Information Administration said on Wednesday, compared with expectations for a 1.1 million-barrel rise.