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SPARK Attracts More Than 60 Investors

 A solar energy project in Saudi Arabia (Asharq Al-Awsat)
 A solar energy project in Saudi Arabia (Asharq Al-Awsat)
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SPARK Attracts More Than 60 Investors

 A solar energy project in Saudi Arabia (Asharq Al-Awsat)
 A solar energy project in Saudi Arabia (Asharq Al-Awsat)

The King Salman Energy Park (SPARK), located in Buqayq in eastern Saudi Arabia, has successfully attracted more than 60 investors, with total investments exceeding $3 billion.
SPARK was developed as an integrated industrial ecosystem aimed at maximizing economic benefits by strengthening the energy sector in the Kingdom and the broader region. It plays a key role in advancing the goals of Vision 2030 by supporting efforts to build a strong, prosperous, and diversified economy.
The city is also positioned as a prime destination for investors seeking growth and success within a global industrial ecosystem founded on excellence and innovation. It is expected to contribute over $6 billion annually to Saudi Arabia’s GDP and create up to 100,000 direct and indirect jobs.
On Sunday, the King Salman Energy Park announced that seven factories are already operational, with an additional 14 under construction.
By the end of last year, SPARK had signed lease agreements with two new investors, in addition to the start of construction on several major projects by existing investors.
These developments are key to SPARK’s continued growth and progress, playing a crucial role in its mission to localize essential products and services within the energy sector’s value chain.
The total value of the lease agreements exceeds SAR 30 million, marking significant investments that will drive sustainable industrial growth in the Kingdom.
As part of these deals, Abdulaziz & Brothers (A&BC), a company specializing in professional safety tools and equipment, will begin producing high-quality personal protective gear for the industrial and construction sectors by establishing its first facility in SPARK.
Meanwhile, Enjaz Al Mustaqbal Industrial Company plans to build a facility to support localization efforts in the heating, ventilation, and air conditioning (HVAC) sector.
SPARK also revealed the start of construction on two major projects with a combined investment of SAR 250 million.
BAS Gulf Industrial Company, a subsidiary of the National Metal Manufacturing and Casting Company (Maadaniyat), plans to expand its operations by the fourth quarter of 2024, focusing on the manufacturing of industrial valves and providing post-sales technical services.
Global software and engineering leader Emerson has also begun construction at SPARK, preparing to launch its advanced technology operations, which are expected to commence by the fourth quarter of 2024.

 

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Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
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Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)

Russia's central bank has left its benchmark interest rate at 21%, holding off on further increases as it struggles to snuff out inflation fueled by the government's spending on the war against Ukraine.
The decision comes amid criticism from influential business figures, including tycoons close to the Kremlin, that high rates are putting the brakes on business activity and the economy.
According to The Associated Press, the central bank said in a statement that credit conditions had tightened “more than envisaged” by the October rate hike that brought the benchmark to its current record level.
The bank said it would assess the need for any future increases at its next meeting and that inflation was expected to fall to an annual 4% next year from its current 9.5%
Factories are running three shifts making everything from vehicles to clothing for the military, while a labor shortage is driving up wages and fat enlistment bonuses are putting more rubles in people's bank accounts to spend. All that is driving up prices.
On top of that, the weakening Russian ruble raises the prices of imported goods like cars and consumer electronics from China, which has become Russia's biggest trade partner since Western sanctions disrupted economic relations with Europe and the US.
High rates can dampen inflation but also make it more expensive for businesses to get the credit they need to operate and invest.
Critics of the central bank rates and its Governor Elvira Nabiullina have included Sergei Chemezov, the head of state-controlled defense and technology conglomerate Rostec, and steel magnate Alexei Mordashov.
Russian President Vladimir Putin opened his annual news conference on Thursday by saying the economy is on track to grow by nearly 4% this year and that while inflation is “an alarming sign," wages have risen at the same rate and that "on the whole, this situation is stable and secure.”
He acknowledged there had been criticism of the central bank, saying that “some experts believe that the Central Bank could have been more effective and could have started using certain instruments earlier.”
Nabiullina said in November that while the economy is growing, “the rise in prices for the vast majority of goods and services shows that demand is outrunning the expansion of economic capacity and the economy’s potential.”
Russia's military spending is enabled by oil exports, which have shifted from Europe to new customers in India and China who aren't observing sanctions such as a $60 per barrel price cap on Russian oil sales.