Saudi Arabia Launches 'The Garage'... Middle East's Largest Business Acceleratorhttps://english.aawsat.com/business/4555556-saudi-arabia-launches-garage-middle-easts-largest-business-accelerator
Saudi Arabia Launches 'The Garage'... Middle East's Largest Business Accelerator
Saudi officials during the inauguration of The Garage in Riyadh (Asharq Al-Awsat)
Saudi Arabia launched The Garage, the region's largest business accelerator, in an event at the King Abdulaziz City for Science and Technology in Riyadh.
The Garage's new headquarters opened on an area of 28,000 square meters on the main campus of King Abdulaziz University for Sciences and Technology (KAUST) in the presence of Minister of Communications and Information Technology Abdullah al-Swaha, Minister of Municipal and Rural Affairs and Housing Majed al-Hogail, and Minister of Media Salman al-Dossary.
The Garage is a startup district focusing on local and international startups, scouting and inviting them to join its programs and events. It encompasses over 300 startups, features 24 meeting rooms, an event space accommodating over 1,000 attendees, and dedicated training workshop areas.
The Garage began fostering startups since its inception in April 2022 in collaboration with various partners, including Google for Startups and the National Technology Development Program, KAUST Destination Deep Tech, and the Ministry of Investment.
The accelerator offers six distinct programs: Garage Plus, ACCESS Disability Technologies Accelerator, Garage Incubator, MVP Lab, GAIA Business Accelerator, and the Middle East's first iteration of the Antler program.
Garage has supported ten batches throughout these programs, encompassing over 230 startups and 450 founders from more than 50 countries.
The startups have achieved significant milestones, earning combined revenues of $6.5 million, securing investments exceeding $57.3 million, and engaging in extensive training programs.
Moreover, The Garage hosted over 40 events, with the participation of 150 local and international startups and attendance surpassing 3,500 guests, including partners, investors, entrepreneurs, and industry experts.
The inauguration of Garage marks a significant step in the startup ecosystem, locally and globally, as it allows entrepreneurs to join a comprehensive community of partners and founders.
Garage was first introduced at the inaugural Leap Conference in 2022, positioning itself as a primary hub for Saudi and global promising ventures from the heart of Riyadh.
Bank of England's Breeden: Cost-cutting by Firms Helping Central Bankhttps://english.aawsat.com/business/5329842-bank-englands-breeden-cost-cutting-firms-helping-central-bank
FILE PHOTO: Deputy Governor for Financial Stability, Sarah Breeden during the Bank of England financial stability report press conference, at the Bank of England, London. Picture date: Tuesday July 7, 2026. Doug Peters/Pool via REUTERS/File Photo
Bank of England's Breeden: Cost-cutting by Firms Helping Central Bank
FILE PHOTO: Deputy Governor for Financial Stability, Sarah Breeden during the Bank of England financial stability report press conference, at the Bank of England, London. Picture date: Tuesday July 7, 2026. Doug Peters/Pool via REUTERS/File Photo
Bank of England Deputy Governor Sarah Breeden said on Thursday that cost-cutting by UK companies in response to the energy price shock caused by the Iran war would make it easier for the central bank to contain inflation.
"What's really different now, relative to when we had the last energy shock in 2022, is that people aren't looking to push costs through," Breeden said in an interview with CNBC television.
"There's a desire to absorb the shock rather than just pass it on, which makes our job as monetary policymakers a bit easier in these uncertain times,” Reuters quoted her as saying
The comments about cost-cutting by companies echoed those made by BoE Governor Andrew Bailey earlier this week.
Breeden has voted with the majority of the Monetary Policy Committee to keep borrowing costs on hold since the start of the Iran war but said in September that she might change her stance if the energy price shock feeds through into broader inflation.
Investors are pricing a quarter-point rate hike by the BoE next month as a near certainty.
Breeden, in Bangkok for the semi-annual International Monetary Fund meetings, also told CNBC she hoped wages would not rise sharply as they did in 2022 after Russia's full-scale invasion of Ukraine due to weakness in the labor market now.
Earlier on Thursday, BoE Chief Economist Huw Pill said a rate hike by the central bank should not be interpreted by investors as the start of a long series of increases.
IMF Expects Middle East Economies to Rebound to 6.6% Growth in 2027https://english.aawsat.com/business/5329826-imf-expects-middle-east-economies-rebound-66-growth-2027
Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) attends a press conference at the IMF/World Bank 2026 Spring Meetings in Washington, D.C., US, April 16, 2026. REUTERS/Elizabeth Frantz
IMF Expects Middle East Economies to Rebound to 6.6% Growth in 2027
Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) attends a press conference at the IMF/World Bank 2026 Spring Meetings in Washington, D.C., US, April 16, 2026. REUTERS/Elizabeth Frantz
The International Monetary Fund expects the economies of the Middle East, North Africa and Pakistan to rebound to growth of 6.6 percent in 2027, following a projected contraction of 1.3 percent this year, amid the economic fallout from the regional war and disruptions to energy production and trade, which have affected countries across the region to varying degrees.
Jihad Azour, the IMF's director for the Middle East and Central Asia, said economies directly affected by the conflict are facing severe pressures, while other economies in the region, along with most countries in the Caucasus and Central Asia, have shown greater resilience.
He explained that the path of the recovery will depend largely on how quickly energy production and trade return to normal and on countries’ ability to maintain macroeconomic stability.
The forecasts come after the economies of the Middle East, North Africa and Pakistan grew by 3.3 percent in 2025, illustrating the scale of the shock expected this year before a strong rebound next year.
Azour stressed, however, that the overall projections mask significant disparities among the region’s economies and that the recovery will not be uniform across countries.
Oil Exporters and Importers
Azour said oil-exporting countries directly affected by disruptions to energy production and trade will experience a marked contraction in 2026, although higher oil prices will provide some support to their fiscal and external positions.
A gradual recovery in production and trade is expected to drive a strong rebound in GDP growth in 2027, although output levels will remain below the trajectory projected before the outbreak of the conflict.
By contrast, economic activity in the region’s oil-importing countries has remained relatively resilient during 2026 and is expected to continue doing so. Workers’ remittances, tourism revenues, favorable financial conditions and government support have helped cushion the immediate impact of the shock, although the policy space available to governments is narrowing.
The IMF expects inflation in these economies to rise moderately in 2026 before gradually easing thereafter.
The Chinese-flagged container shipping vessel Hui Fa transits the Gulf of Oman on October 13, 2026. (Photo by AFP)
Lower Inventories, Greater Risks
Azour noted that the impact of the energy shock has been less severe than initial estimates suggested, thanks to surpluses accumulated before the war, production by non-Gulf countries, alternative transportation routes, adjustments in demand and drawdowns from inventories.
He cautioned, however, that these factors have provided time for adjustment but are not sustainable resources. Available inventories have declined and spare production capacity has narrowed, leaving markets more vulnerable to larger price increases should disruptions recur.
Azour identified a prolonged war as the most significant risk to the outlook, warning that further disruptions to energy production, shipping routes or critical infrastructure would weaken economic activity among Gulf oil exporters, increase inflationary pressures and exacerbate fiscal and external strains across the region.
He also warned that tighter global financial conditions could weaken demand, raise borrowing costs and increase pressure on currencies, particularly in economies with substantial sovereign debt-financing needs or a heavy reliance on external financing.
Low-income and fragile economies remain the most vulnerable to these risks because of their dependence on food imports and limited fiscal space, at a time when official development assistance is also declining.
Call for Targeted Support and Rebuilding Fiscal Buffers
Azour urged policymakers to prioritize price stability and fiscal sustainability, using monetary policy as the first line of defense when inflationary pressures emerge, complemented by prudent fiscal policy, particularly in countries with limited financial resources.
He stressed the importance of rebuilding fiscal buffers to withstand future shocks by strengthening domestic revenues, improving spending efficiency and developing stronger fiscal frameworks. He cautioned against broad-based subsidies, favoring instead temporary and targeted cash assistance for the groups most affected, helping keep the cost of intervention within budgetary limits.
Over the longer term, Azour emphasized the importance of strong institutions, credible monetary frameworks and central bank independence, alongside greater trade diversification, deeper regional integration and a stronger capacity to adopt new technologies, including artificial intelligence, to boost productivity and support growth.
Azour noted that the IMF has approved approximately $48 billion in financing for countries in the region since 2020. During fiscal year 2026, it also carried out around 437 technical assistance and capacity-building projects in 31 countries.
The IMF is scheduled to release its full regional report in Dubai on October 22, providing a more detailed assessment of economic developments and policy priorities.
Gold Rebounds from One-week Low as Dollar Slipshttps://english.aawsat.com/business/5329812-gold-rebounds-one-week-low-dollar-slips
Gold bracelets and necklaces on display for sale at a gold shop in Istanbul's Grand Bazaar (AFP)
Gold prices climbed 1% on Thursday, rebounding from a one-week low hit in the previous session as the US dollar eased, while investors assessed the likelihood of a Federal Reserve interest rate increase this month after a hot inflation report.
Spot gold rose 1% to $4,146.74 per ounce by 0501 GMT, after hitting its lowest since October 7 on Wednesday. US gold futures for December delivery gained 1.5% to $4,167.30.
The dollar slipped after scaling an 18-month peak overnight. A softer dollar makes greenback-priced bullion more affordable for buyers overseas.
"What we're seeing here is just the symptoms of a market uncertain about US interest rate policy, and that is resulting in a bit of volatility," said Kyle Rodda, senior financial market analyst at Capital.com.
"We're coming up to a really critical level for gold, which is just below the $4,000 level. If we see, again, some really strong data, then there's a view that the Fed will have to hike relatively urgently, then that will be the level of focus."
US consumer prices accelerated in September as the cost of gasoline surged. Traders are pricing in about a 29% chance of a rate hike later this month, compared with 22% before the data, according to CME's FedWatch Tool.
San Francisco Fed President Mary Daly said the US central bank will probably need to increase short-term interest rates further, though she signaled no need for a hike at the October 27-28 meeting. Vice Chair for Supervision Michelle Bowman said there's time to wait and see before any more action.
Although gold is viewed as an inflation hedge, higher interest rates reduce its appeal because it does not pay interest.
Market focus now turns to the Producer Price Index (PPI) and retail sales data due at 1230 GMT.
Among other metals, spot silver gained 0.7% to $56.01, platinum rose 1% to $1,608.20 and palladium climbed 1.3% to $1,108.14.
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