GCCIA Announces: 30% of GCC-Iraq Electrical Interconnection Project is Completed

GCCIA Announces: 30% of GCC-Iraq Electrical Interconnection Project is Completed
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GCCIA Announces: 30% of GCC-Iraq Electrical Interconnection Project is Completed

GCCIA Announces: 30% of GCC-Iraq Electrical Interconnection Project is Completed

The GCC-Iraq Electrical Interconnection Project is 30 percent completed, announced CEO of the Gulf Interconnection Authority (GCCIA) Ahmed al-Ebrahim.

Ebrahim indicated that the project is taking place according to the specific timetable ending by 2024.

He said during the celebration organized by the Authority in Dammam celebrating the occasion of World Quality Week that the GCCIA was keen to apply the highest quality standards in the electrical interconnection project with Iraq.

The Authority developed an integrated program to monitor the quality of the electrical interconnection project with Iraq, said Ebrahim.

He stressed that the Authority is keen to connect with external systems to benefit from surplus energy during the winter, pointing out that the countries targeted for energy export are Iraq, Jordan, and Egypt through cooperation with the Saudi Electricity Company and the rest of the Gulf networks.

The winter season is an opportunity for regular maintenance to ensure quality performance, said Ebrahim.

The World Quality Week aims to spread the culture of good quality worldwide and encourage individuals and establishments to apply its concepts, benefiting individuals, societies, and the world, according to the official.

He indicated that Quality Week is an opportunity for those interested in quality to celebrate their achievements and increase awareness to benefit from it.

The World Quality Week 2023 represents an opportunity to shed light on individuals, work teams, and establishments that invest in creating and improving customer value.

The CEO stressed that establishments that focus on customers and promote a culture of achieving customer value through innovation and product improvement, explaining that enhancing a culture of quality helps to recognize that the customer, not the establishment, better defines the quality of the product.

It promotes customer participation in improving the quality of products and services and cooperates with customers to enhance the quality of the product and service and solve any problems.

The success of the global economy depends on quality, creativity, and sustainability, said Ebrahim, noting that World Quality Week was an opportunity to reinforce these foundations.



4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 

Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance.

Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia’s GDP and the non-oil sector, alongside continued government spending on major projects.

The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion.

Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain.

Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. “The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,” he said.

He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels.

“The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,” he observed.

Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. “That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,” he added.

Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. “Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,” he said.

Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year.

Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments.

He stressed the need for vigilance: “Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.”