Future Investment Initiative: Saudi Arabia Brings Together the World to Shape Tomorrow’s Economy

A file photo of the sixth edition of the Future Investment Initiative conference in 2022. (SPA)
A file photo of the sixth edition of the Future Investment Initiative conference in 2022. (SPA)
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Future Investment Initiative: Saudi Arabia Brings Together the World to Shape Tomorrow’s Economy

A file photo of the sixth edition of the Future Investment Initiative conference in 2022. (SPA)
A file photo of the sixth edition of the Future Investment Initiative conference in 2022. (SPA)

The Future Investment Initiative conference kicked off in Riyadh on Tuesday with global and local investors stressing the importance of exploiting the available opportunities to advance international alliances and develop strategies that shape tomorrow’s economy.

In an interview with Asharq Al-Awsat, CEO of Skytower Eric Fang said the Future Investment Initiative will focus on the impact of investment on humanity as an interactive program designed to help investors reset pathways for their companies and for the global economy, while developing new strategies to cope with the challenges and opportunities of the new era.

Fang emphasized the need to discover new markets and expand the boundaries of economic growth, while adhering to environmental, social and governance standards. He stressed the importance of green development, including infrastructure, industry, manufacturing, supply chain and natural mineral resources, to be based on strong governance in order to achieve a positive impact on humanity.

The conference’s recommendations to address the challenges of economy, investment and trade should include a vision of adding value by creating a place to showcase ways to reduce carbon pollution, through re-engineering pollution from manufacturing, transportation, power generation and construction processes, he added.

Fang noted that hydrogen was a very useful commodity, but requires a lot of special processing because of its flammability. Ammonia, which consists of two hydrogen atoms and three nitrogen atoms, can be considered a non-flammable hydrogen carrier. Ammonia can also be broken down into hydrogen at the point of combustion.

In this context, he revealed cooperation between Skytower and its local partners in the special economic zone, such as King Abdullah Economic City, to build a hydrogen industry complex to manage all different types of hydrogen and ammonia technologies and modern manufacturing processes, in line with Saudi Arabia’s endeavor to promote artificial intelligence and robotics.

Chairman of the Saudi Excellence Holding Company Abdullah bin Zaid Al-Meleihi told Asharq Al-Awsat that the conference, in its seventh edition, was a global opportunity that would attract Saudi, American and Chinese investments.

Al-Meleihi, who is the Saudi partner in Skytower Investment Company, the fruit of the Saudi-American-Chinese green energy alliance, said that the rapid development of Saudi Arabia has become a measure of global evolution and a model for future development plans.

“Through this partnership, we can use our zero carbon standards to develop recommendations for future industry standards in the Kingdom by working alongside the Future Investment Initiative,” he added.



China Launches Late Stimulus Push to Meet 2024 Growth Target

FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
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China Launches Late Stimulus Push to Meet 2024 Growth Target

FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A worker works on a building under construction in Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo

China's central bank on Friday lowered interest rates and injected liquidity into the banking system as Beijing assembled a last-ditch stimulus assault to pull economic growth back towards this year's roughly 5% target, Reuters reported.
More fiscal measures are expected to be announced before China's week-long holidays starting on Oct. 1, after a meeting of the Communist Party's top leaders showed an increased sense of urgency about mounting economic headwinds.
On the heels of the Politburo huddle, China plans to issue special sovereign bonds worth about 2 trillion yuan ($284.43 billion) this year as part of fresh fiscal stimulus, two sources with knowledge of the matter have told Reuters.
Capital Economics chief Asia Economist Mark Williams estimates the package "would lift annual output by 0.4% relative to what it would otherwise have been."
"It's late in the year, but a new package of this size that was implemented soon should be enough to deliver growth in line with the 'around 5%' target," he said.
Chinese stocks are on track for the best week since 2008 on stimulus expectations.
The world's second-largest economy faces strong deflationary pressures due to a sharp property market downturn and frail consumer confidence, which have exposed its over-reliance on exports in an increasingly tense global trade environment.
A wide range of economic data in recent months has missed forecasts, raising concerns among economists that the growth target was at risk and that a longer-term structural slowdown could be in play.
On Friday, data showed industrial profits swinging back to a sharp contraction in August.
"We believe the persistent growth weakness has hit policymakers' pain threshold," Goldman Sachs analysts said in a note.
As flagged on Tuesday by Governor Pan Gongsheng, the People's Bank of China on Friday trimmed the amount of cash that banks must hold as reserves, known as the reserve requirement ratio (RRR), by 50 basis points, the second such reduction this year.
The move is expected to release 1 trillion yuan ($142.5 billion) in liquidity into the banking system and was accompanied by a cut in the benchmark interest rate on seven-day reverse repurchase agreements by 20 bps to 1.50%. The cuts take effect on Friday and Pan, in rare forward-looking remarks, left the door open to another RRR reduction later this year.

Given weak credit demand from households and businesses, investors are more focused on the fiscal measures that are widely expected to be announced in coming days.
Reuters reported on Thursday that 1 trillion yuan due to be raised via special bonds will be used to increase subsidies for a consumer goods replacement program and for the upgrade of large-scale business equipment.
They will also be used to provide a monthly allowance of about 800 yuan, or $114, per child to all households with two or more children, excluding the first child.
China aims to raise another 1 trillion yuan via a separate special sovereign debt issuance to help local governments tackle their debt problems.
Bloomberg News reported on Thursday that China is also considering the injection up to 1 trillion yuan of capital into its biggest state banks.
Most of China's fiscal stimulus still goes into investment, but returns are dwindling and the spending has saddled local governments with $13 trillion in debt.
The looming fiscal measures would mark a slight shift towards stimulating consumption, a direction Beijing has said for more than a decade that it wants to take but has made little progress on.
China's household spending is less than 40% of annual economic output, some 20 percentage points below the global average. Investment, by comparison, is 20 points above but has been fueling much more debt than growth.
The politburo also pledged to stabilize the troubled real estate market, saying the government should expand a white list of housing projects that can receive further financing and revitalize idle land.
The September meeting is not usually a forum for discussing the economy, which suggests growing anxiety among officials.
"The 'shock and awe' strategy could be meant to jumpstart the markets and boost confidence," Nomura analysts said in a note.
"But eventually it is still necessary for Beijing to introduce well thought policies to address many of the deep-rooted problems, particularly regarding how to stabilize the property sector."