Russia Back in Investors’ Focus after Weekend Mutiny

Private military company (PMC) Wagner Group servicemen prepare to leave downtown Rostov-on-Don, southern Russia, 24 June 2023. (EPA)
Private military company (PMC) Wagner Group servicemen prepare to leave downtown Rostov-on-Don, southern Russia, 24 June 2023. (EPA)
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Russia Back in Investors’ Focus after Weekend Mutiny

Private military company (PMC) Wagner Group servicemen prepare to leave downtown Rostov-on-Don, southern Russia, 24 June 2023. (EPA)
Private military company (PMC) Wagner Group servicemen prepare to leave downtown Rostov-on-Don, southern Russia, 24 June 2023. (EPA)

Some investors were watching for ripple effects from an aborted mutiny in Russia on Saturday, expecting a move into safe havens such as US government bonds and the dollar when markets open later on Sunday.

Heavily armed Russian mercenaries led by Yevgeny Prigozhin, a former ally of President Vladimir Putin and founder of the Wagner army, advanced most of the way to Moscow after capturing the city of Rostov, but then halted their approach, de-escalating a major challenge.

On Saturday night, they began withdrawing from the Rostov military headquarters they had seized, a Reuters witness said.

Financial markets have often been volatile since Russia invaded Ukraine in February 2022, which caused ruptures in markets and through global finance as banks and investors rushed to unwind exposure.

After Saturday's events, some investors said they were focused on the potential impact to safe-haven assets such as US Treasuries and on commodities prices, as Russia is a major energy supplier.

"It certainly remains to be seen what happens in the next day or two, but if there remains uncertainty about leadership in Russia, investors may flock to safe havens," said Gennadiy Goldberg, head of US rates strategy at TD Securities in New York.

Goldberg said that despite the de-escalation, "investors may remain nervous about subsequent instability, and could remain cautious."

The action sparked attention globally, and revived an old fear in Washington about what happens to Russia's nuclear stockpile in the event of domestic upheaval.

"Markets typically do not respond well to events that are unfolding and are uncertain," particularly relating to Putin and Russia, said Quincy Krosby, chief global strategist at LPL Financial.

"If the uncertainty escalates, you're going to see Treasuries get a bid, gold will get a bid and the Japanese yen tends to gain in situations like this," Krosby said, mentioning typical safe-haven assets that investors buy when risks rise.

Alastair Winter, Global Investment Strategist at Argyll Europe said that while the de-escalation meant markets may now not react much, "Putin has clearly been weakened and there will be more developments."

He saw the US dollar finding "some support as the market returns to speculating over rate hikes and cuts and recession in different economies."

Stocks have been on a mostly upward path in recent months, which some said could make them more vulnerable to a selloff. Year-to-date the S&P 500 is up 13%, although it has lost steam in recent days with interest rates in focus. Federal Reserve Chairman Jerome Powell gave testimony last week in which he signaled more interest rate hikes ahead.

Some saw little reaction as the situation seemed defused. Rich Steinberg, chief market strategist at the Colony Group in Boca Raton, Florida, said that "markets will kind of treat this as another geopolitical risk" and "some frayed nerves were calmed in the short run" by the de-escalation.



Al-Hogail: 70,000 New Housing Units Planned for Riyadh, Starting at $66,000  

Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail speaks at the press conference. (SPA) 
Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail speaks at the press conference. (SPA) 
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Al-Hogail: 70,000 New Housing Units Planned for Riyadh, Starting at $66,000  

Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail speaks at the press conference. (SPA) 
Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail speaks at the press conference. (SPA) 

Saudi Arabia is intensifying efforts to meet housing demands as part of its Vision 2030 goals in a continued push to provide stability and prosperity for citizens.

Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail announced plans to introduce 70,000 new residential units in Riyadh, with prices starting from SAR 250,000 ($66,000). The move is aimed at increasing home ownership and providing affordable housing options across the Kingdom.

Al-Hogail emphasized the significance of Crown Prince Mohammed bin Salman’s recent donation of SAR 1 billion to support home ownership, describing it as a clear reflection of the leadership’s prioritization of the housing sector. The donation, he noted, will help boost the registration of new housing units for eligible families in 2025.

Speaking during a joint government press conference alongside Minister of Media Salman Al-Dosary, Al-Hogail highlighted the progress achieved under Vision 2030. According to the 2024 Vision Progress Report, the homeownership rate among Saudi families rose to 65.4% last year, up from 47% in 2016.

He noted that the ministry has launched over 11 financial solutions and revamped support programs to be more flexible and equitable. This has enabled more than 850,000 families to own homes, surpassing the targeted ownership rate of 65% a year ahead of schedule. The next milestone is to reach 70% homeownership by 2030.

The minister also revealed that over 50,000 housing units have been provided for families most in need, with more than 43,000 of them now owning homes. These efforts are part of broader goals to enhance quality of life and support vulnerable groups.

“Our goal is to make the journey to homeownership shorter and easier,” Al-Hogail said, adding that urban planning will be guided by local and regional development needs.

In Riyadh alone, between 60,000 and 70,000 new units will be delivered to meet growing demand. He stressed that prices will remain affordable and emphasized the importance of local job creation and economic stimulation in the process.

The housing and municipal sectors currently contribute 14% to Saudi Arabia’s GDP, spanning over 550 types of activities. Over the past few years, more than 500,000 jobs have been created through 318,000 enterprises operating under the ministry’s supervision. The real estate sector’s market size has grown significantly, from SAR 170 billion to over SAR 850 billion in 2024.

Al-Hogail also noted that the construction and real estate sectors account for more than 16% of total foreign direct investment, reflecting investor confidence in the country’s cities and regulatory environment. Municipal sector revenues surged from SAR 6.3 billion in 2020 to 22 billion in 2024, driven by better investment in available opportunities.

More than six Saudi cities have now been classified as smart cities, and the ministry plans to implement urban identity programs in 12 municipalities by the end of the year.

For his part, Al-Dosary praised Vision 2030 as an inspiring global model, stating it has “outpaced both time and numbers,” with achievements arriving ahead of schedule.

He described the vision as “the greatest success story of the 21st century,” adding that 2024 marked a year of record-breaking accomplishments. Among them: AlUla became the first Middle Eastern destination to earn certification from the International Organization of Sustainable Tourism Destinations, while the Saudi Virtual Health Hospital entered the Guinness World Records and seven Saudi hospitals were ranked among the world’s top 250.