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Saudi Mawani, SGP Sign Contract Agreement to Establish Fully Integrated Logistics Park

Mawani and Saudi Global Ports (SGP) ink a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam.
Mawani and Saudi Global Ports (SGP) ink a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam.
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Saudi Mawani, SGP Sign Contract Agreement to Establish Fully Integrated Logistics Park

Mawani and Saudi Global Ports (SGP) ink a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam.
Mawani and Saudi Global Ports (SGP) ink a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam.

The Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP) have inked a deal to build a fully integrated logistics park spanning over 1 million square meters at King Abdulaziz Port in Dammam, with an investment nearing one billion Saudi riyals.

The agreement was signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, Minister of Transport and Logistic Services Eng. Saleh bin Nasser Al-Jasser, and Singaporean Minister of Manpower and Second Minister for Trade and Industry Dr. Tan See Leng.

The Minister of Transport and Logistics Services and Chairman of the Board of Directors of the Saudi Ports Authority Eng. Saleh bin Nasser Al-Jasser stated that this agreement falls under both local and international private sector investments.

The objective of these investments is to establish multiple high-performance logistics zones that will enhance the efficiency of the logistics sector, improve service quality, increase handling numbers, and generate additional job opportunities.

The initiative is expected to strengthen the role of the logistics sector in supporting the national economy and reinforce the Kingdom's position as a global logistics hub connecting three continents. This aligns with the National Strategy for Transport and Logistics Services and Vision 2030.

Al-Jasser emphasized that the contracts signed with the private sector over the past two years to develop and expand investments in logistics areas illustrate the attractiveness of Saudi ports and the Saudi logistics sector. They also highlight the vast and promising opportunities within this crucial sector, which plays a significant role in driving economic growth and achieving sustainable development.

The agreement was signed by President of the Saudi Ports Authority, Omar Hariri and CEO of the Saudi Global Ports Company, Edward Tah.

Hariri stressed that this new logistics park is part of the Mawani initiative to expand the number of logistics parks within Saudi ports to 12. This expansion is expected to elevate the Kingdom's position in the global logistics services performance index from its current 38th place to the 10th. Furthermore, it will solidify its regional leadership in logistics.

The park is designed to offer comprehensive logistics services and innovative solutions, with a strong focus on sustainable practices and systems. It includes warehouses and yards equipped to store and handle all types of dry and refrigerated goods. Additionally, the park features a bonded and re-export area specifically dedicated to sorting, distribution operations, and other value-added services.

The Saudi Global Ports Company operates two container terminals at King Abdulaziz Port in Dammam, which is a joint venture between the Saudi Public Investment Fund, the Singaporean PSA International Company, and Al Balagaa Group.

Mawani succeeded in attracting national and international investments and major logistics companies through signing several agreements to establish 11 logistics zones. These zones will be strategically located in the Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahd Industrial Port in Yanbu. The total investment for these initiatives is nearing 4.2 billion riyals.

The significant investment will not only lead to the creation of over 13,000 direct and indirect jobs within the logistics sector, but it is also expected to trigger a major economic revival. These initiatives are expected to bolster the gross domestic product, enhance international trade relations, improve multimodal transport connections, and foster growth in the logistics services industry.

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Business

Moody's Affirms its Credit Rating of Saudi Arabia at 'Aa3' with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Moody's Affirms its Credit Rating of Saudi Arabia at 'Aa3' with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The credit rating agency Moody’s has affirmed Saudi Arabia’s credit rating at “Aa3” with a “stable” outlook.

The agency said Friday that the affirmation at Aa3 reflects Saudi Arabia’s large and wealthy economy, supported by its vast hydrocarbon endowment, and highly competitive position in global energy markets, alongside improving institutional and policy effectiveness.

Progress under Vision 2030 has underpinned solid non-hydrocarbon growth, supported by sustained public investment, structural reforms, and gradually improving fiscal and economic transparency.

Moody’s noted that Saudi Arabia’s stable outlook reflects the Kingdom’s resilience against regional geopolitical risks and potential trade disruptions, supported by strong and continued oil exports flexibility through the East-West pipeline and Red Sea terminals.

The agency also expects that the Kingdom’s progress on economic diversification is likely to continue and the momentum will be sustained over the coming years. It is supported by significant progress to date in implementing a broad-based reform agenda, including judicial, business and social reforms that have accelerated the development of the services sector and the broader non-oil economy.

Moody's expects non-hydrocarbon private sector GDP growth to return to around 4-5% after the Middle East conflict subsides, among the strongest rates in the Gulf Cooperation Council (GCC), reflecting ongoing structural reforms, sustained public investment and improving private sector participation.

Business

Morocco Farmers Saw Hope in Rain, but Mideast War Inflates Production Costs

A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
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Morocco Farmers Saw Hope in Rain, but Mideast War Inflates Production Costs

A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)
A farmer works in his wheat field in the Sebt Meghchouch region of Morocco, on April 28, 2026. (Photo by Abdel Majid BZIOUAT / AFP)

Like many Moroccan farmers, Mehdi el-Maazi was hopeful that rare heavy rains would yield an abundant harvest this year -- but those hopes were quickly shattered as the Middle East war sent fuel and fertilizer costs soaring.

Morocco, where agriculture employs about a quarter of the working population and where drought had persisted for seven consecutive years, recorded massive rainfalls last February and December.

Across the rural region of Marchouch, about 70 kilometres (43 miles) south of Rabat, landscapes that had long been parched have turned green again, and farmers have taken back to working their fields.

Following the rains this winter, the country expected a strong cereal harvest, with output estimated to reach nearly nine million tonnes -- more than double last year's. Overall agricultural output was also set to rise by about 15 percent from last season.

But the war in the Middle East, which began in late February, has disrupted maritime traffic through the Strait of Hormuz, not only sending global energy markets into a tailspin but also choking fertilizer supplies.

Prior to the war, Maazi would normally spend around 1,200 dirhams ($130) per hectare on diesel to run his tractor. Now, he said, the cost has climbed to 1,800 dirhams.

"We were happy at first about the arrival of the rain," said the 32-year-old lentil farmer. "But with the increase in diesel prices, everything changed."

Farmers also say higher fuel prices are driving up the cost of nearly everything needed to produce crops.

Abdelkader Toukati, another farmer in the area, said he hoped "the price of diesel will fall before the beginning of the harvest season".

High prices have meant that workers' wages have also risen and even "the cost of renting harvesting machines doubled", Toukati added.

Abdelaziz Drissi, who rents out agricultural machinery, also complained that there was little to no financial reward.

"There is no longer any profit," he said. "We are only working to pay for fuel."

Rising energy costs have had a direct impact on key farming supplies, driving up prices for seeds, fertilizers, pesticides and animal feed.

Livestock breeder Abdessadaq el-Fayd said grain feed prices had sharply risen in recent months.

"We used to buy it for 90 dirhams" per sack, he said. "Today, it costs 110 to 120 dirhams."

A recent report by the kingdom's High Commission for Planning projected economic growth of five percent in the first quarter of 2026, up from 4.1 percent in the previous quarter, driven in part by agricultural activity.

In an effort to alleviate rising costs, the Moroccan government in March announced aid for transport operators.

And last month, Prime Minister Aziz Akhannouch pledged to "improve distribution chains so that prices remain at a reasonable level".

But farmers interviewed by AFP said the measures have yet to rein in prices.

Rachid Benali, president of the Moroccan Confederation of Agriculture and Rural Development, said the price hikes "mainly concern fuels and nitrogen fertilizers".

But while the high costs "will have no impact on either volume or quality" of harvests, they "will automatically be reflected" in produce prices at markets, he added.

Business

Dollar Nears Six-week High; Mixed Signals on US-Iran Deal Feed Uncertainty

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)
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Dollar Nears Six-week High; Mixed Signals on US-Iran Deal Feed Uncertainty

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)

The dollar traded near six-week highs on Friday, after conflicting signals over a US-Iran peace deal whipped up volatility across financial markets, though investors latched on to hopes of some progress. Washington and Tehran stuck to opposing stances over the latter's uranium stockpile and control of the Strait of Hormuz, although US Secretary of State Marco Rubio said there had been "some good signs" in talks. The dollar rose 0.17% against a basket of six major currencies to 99.37, just shy of six-week highs.

The euro, which was headed for a second weekly loss, was down 0.2% on the day at $1.1594, while the pound was slightly lower at $1.342, having shrugged off data earlier that showed retail sales dropped by the most in nearly a year in April, as consumers felt the pinch of the inflationary effects of the Iran war. The dollar found additional support from US data, which showed weekly jobless claims fell last week while manufacturing activity rose to a four-year high in May, underscoring resilience in the world's largest economy.

"We're coming to the end of week 12, we're six weeks in the ceasefire, and I'm just not really that convinced we're any closer to a resolution between the US and Iran," Tony Sycamore, a market analyst at IG, said of the Middle East war.

"I still feel like the risks are for the US dollar to go higher, because I really just don't see a way out of this situation in the Middle East without them sort of needing to be more forceful."

The US dollar's strength and persistently high oil prices have spelled pain for the yen, which on Friday struggled on the weaker side of 159 per dollar. It was 0.1% lower at 159.09 per dollar. The yen is teetering even after likely intervention from Tokyo just weeks ago to support it. It has given up nearly 75% of its gains from the presumed intervention, which has left traders on alert for further moves by Japanese authorities.

"It's just buying time, really. What they need is a change in fundamentals, and I think the best thing that could happen is a quick deal to end the Iran conflict," said Lee Hardman, a currency strategist at MUFG.

"I don't think you'd see dollar/yen drop too sharply from here, but even if it just got back down into the mid 150s, taking some of the selling pressure off the yen, that would probably be the best they can hope for right now."

The Bank of Japan is only expected to raise borrowing costs gradually while other central banks, including the European Central Bank, are likely to deliver hikes far more quickly, which puts the yen at a disadvantage with investors who seek out extra returns from higher domestic interest rates.

On a trade-weighted basis, the yen is at record lows, which favours its exporters but compounds the energy-price shock, given Japan's reliance on imported goods. Data on Friday showed Japan's core inflation slowed to a four-year low in April, complicating the outlook for BOJ policy.

Currencies in emerging Asia have also come under immense pressure owing to the surge in global oil prices, forcing policymakers to take increasingly urgent and unusual steps to shore up their economies. The Turkish lira hit record lows against the dollar on Friday after a court ruling went against the main opposition party.