Saudi MODON Attracts Investments Worth $34.6 Mn to Localize Aircraft Industries

A view of an exhibit at the World Defense Show 2024 in Riyadh. (Asharq Al-Awsat)
A view of an exhibit at the World Defense Show 2024 in Riyadh. (Asharq Al-Awsat)
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Saudi MODON Attracts Investments Worth $34.6 Mn to Localize Aircraft Industries

A view of an exhibit at the World Defense Show 2024 in Riyadh. (Asharq Al-Awsat)
A view of an exhibit at the World Defense Show 2024 in Riyadh. (Asharq Al-Awsat)

The Saudi Authority for Industrial Cities and Technology Zones (MODON) has attracted investments worth $34.6 million to localize military aircraft industries, including drones, and provide repair, maintenance, and overhaul services for ships.

The investment is one of the authority’s objectives to promote investment opportunities in industrial cities among major local and international companies.

MODON signed two contracts to allocate two ready-made factories with an area of 700 square meters and investments of $13.3 million in manufacturing military aircraft, parts and pieces of military and civil aircraft, and drones.

It concluded a contract to allocate a logistics land area of 3,000 square meters and investments of $8 million for ship repair and maintenance.

The contract also stipulates repair, maintenance, and overhaul services for spare parts for military vehicles, aircraft, ships, water filtration devices, ship and train engines, and valves.

MODON participated in a pavilion in the second edition of the World Defense Show 2024, held in Riyadh between February 4 and 8.

The event was held under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, to represent the industrial sector and highlight the qualitative opportunities, capabilities, and incentives to enable military industries to align with the National Industrial Strategy.

According to MODON, the benefits of investing in its 36 industrial cities throughout the Kingdom include the availability of a labor force, advanced infrastructure, and logistical solutions that help achieve a competitive and sustainable industrial economy.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.