Expo 2030 to Boost Vital Sectors in Saudi Arabia

Saudi Arabia allocated a sum of 7.8 billion dollars to host the global fair (AFP)
Saudi Arabia allocated a sum of 7.8 billion dollars to host the global fair (AFP)
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Expo 2030 to Boost Vital Sectors in Saudi Arabia

Saudi Arabia allocated a sum of 7.8 billion dollars to host the global fair (AFP)
Saudi Arabia allocated a sum of 7.8 billion dollars to host the global fair (AFP)

Economic analysts anticipate that Riyadh’s successful bid to host the Expo 2030 world fair will catalyze a significant boost in Saudi Arabia’s economy, contributing approximately $50 billion.

This triumph is expected to attract foreign investments and foster prosperity and growth across various vital economic sectors in the Kingdom.

Among these sectors are aviation, transportation, real estate, housing, communications, logistics, retail, hotels, hospitality, and tourism.

The exhibition is poised to provide a substantial opportunity for both local and international companies to attract foreign investments.

Mohammed bin Dleim Al-Qahtani, an economics professor at King Faisal University, shared his insights with Asharq Al-Awsat, predicting that organizing the fair will enhance Saudi Arabia’s economic activities by around $50 billion.

This, in turn, will drive development in several crucial and vibrant economic sectors, affirmed Al-Qahtani.

The exhibition’s revenues, according to Al-Qahtani, will be distributed across various sectors: restaurants and hotels (approximately $5 billion), contracting ($11.5 billion), business services and event organization ($28 billion), and small project expenditures ($5.5 billion).

Furthermore, the world fair is expected to create approximately 60,000 jobs annually until the exhibition date, with a total estimated employment reaching 420,000 positions.

In Al-Qahtani’s opinion, the success of hosting Expo 2030 is set to enhance Saudi Arabia’s global image as a leader in hosting international events, fostering global communication, travel, and tourism.

This achievement is expected to bolster the Kingdom’s Gross Domestic Product (GDP) by more than 2.5%, propel key sectors outlined in “Vision 2030” forward, attract over 50 million visitors during the exhibition's duration, stimulate real estate growth, catalyze long-term investments, and significantly support the knowledge-based economy.

Meanwhile, Mohammed Mokni, a financial and investment expert and the CEO of “Ethmar,” a company owned by Imam Mohammed bin Saud University in Saudi Arabia, described Riyadh's win in hosting the exhibition as a testament to the Kingdom’s global stature.

Mokni emphasized the world's confidence in Saudi Arabia’s ability to organize this major global event, where it competes with leading nations in providing grand venues, superior services, infrastructure, and logistical aspects, as well as financial readiness.

The CEO highlighted that the Saudi bid considered all these facets, showcasing exceptional hosting capabilities from the first round of voting, leading to this exceptional victory.

Mokni further stated that this victory serves as international recognition of the Kingdom’s success in implementing its developmental plans and projects stemming from “Vision 2030,” initiated in 2015.

It also reflects the economic and political strength, resilience, and capability of Saudi Arabia, stressed Mokni.



Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.