Future Investment Initiative in Riyadh Charts Pathways for Global Economies

CEO of the Future Investment Initiative Foundation Richard Attias addresses the conference. (Asharq Al-Awsat)
CEO of the Future Investment Initiative Foundation Richard Attias addresses the conference. (Asharq Al-Awsat)
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Future Investment Initiative in Riyadh Charts Pathways for Global Economies

CEO of the Future Investment Initiative Foundation Richard Attias addresses the conference. (Asharq Al-Awsat)
CEO of the Future Investment Initiative Foundation Richard Attias addresses the conference. (Asharq Al-Awsat)

Influential global figures in finance and business convened in Riyadh for the eighth edition of the Future Investment Initiative conference, under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz, to discuss the shifting pathways of the global economy.

Dubbed “Davos in the Desert,” the event is expected to generate $28 billion in deals, adding to the $125 billion transacted over the past seven years.

Held over three days under the theme, “The New Compass for Investing,” the conference brings together over 7,000 participants and 600 international speakers.

Taking place shortly before the US presidential election, the event draws global attention to potential impacts on the world’s largest economy. It serves as a forum for discussing pressing issues such as low interest rates, oil prices, and advancements in artificial intelligence.

The forum also represents a stage for global corporations to announce new offices in Riyadh. Saudi Arabia has surpassed its Vision 2030 target with 540 international companies now establishing regional headquarters in the capital, as revealed by Minister of Investment Khalid Al-Falih.

Among them is Goldman Sachs, which has opened a new office in King Abdullah Financial District. Barclays is also considering re-entering the Saudi market to support the kingdom’s growing access to international capital markets.

Regionally, Jassim Al-Budaiwi, Secretary-General of the Gulf Cooperation Council (GCC), told Asharq Al-Awsat that GCC sovereign wealth funds hold 33% of global investments, with total external investments exceeding $3.2 trillion.

Al-Budaiwi emphasized Saudi Arabia’s increasing influence and credibility in both regional and global arenas, noting that the presence of top global investment firms and high-ranking officials, including presidents and ministers, underscores Saudi Arabia’s pivotal role in attracting investment to the GCC and beyond.

In one panel session, Egyptian Prime Minister Mostafa Madbouly discussed major advancements in energy, particularly the Saudi-Egyptian electrical interconnection project, which aims to generate 3,000 megawatts across two phases.

He highlighted strong collaboration between Saudi Arabia and Egypt in transport and port connectivity, with both nations aspiring to become regional hubs for logistics and supply chains.

“I am closely following Vision 2030’s achievements due to our shared interests and goals,” Madbouly stated.

Additionally, Dr. Manar Al-Munif, CEO of Investments at NEOM, shared that over 3,000 contracts have been signed for more than $60 billion in total.

She underscored NEOM’s impressive progress, with Sindalah Island opening as its first destination, offering visitors a preview of the transformative project.

Al-Munif stressed the importance of private sector involvement and highlighted NEOM’s pioneering efforts in green hydrogen, which is set for export by early 2026. Rapid development continues, with nearly 500 kilometers of roads and 350 kilometers of fiber optics completed, and the industrial zone now connected to NEOM Bay Airport.



Oil Edges Down amid Bearish Trump Tariff Outlook

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
TT

Oil Edges Down amid Bearish Trump Tariff Outlook

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. REUTERS/Pavel Mikheyev/File Photo

Oil prices declined moderately on Thursday as investors weighed the potential impact of US President Donald Trump's tariffs on global economic growth.

Brent crude futures were down 23 cents, or 0.3%, at $69.96 a barrel by 0904 GMT. US West Texas Intermediate crude fell 32 cents, or 0.5%, to $68.06 a barrel.

On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the US, after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva.

He has also announced plans for tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen letters issued earlier in the week including for powerhouse US suppliers South Korea and Japan.

Trump's history of backpedaling on tariffs has caused the market to become less reactive to such announcements, said Harry Tchilinguirian, group head of research at Onyx Capital Group.

"People are largely in wait and see mode, given the erratic nature of policy making and the flexibility the administration is showing around tariffs," Tchilinguirian said.

Policymakers remain worried about the inflationary pressures from Trump's tariffs, with only "a couple" of officials at the Federal Reserve's June 17-18 meeting saying they felt interest rates could be reduced as soon as this month, minutes of the meeting released on Wednesday showed.

Higher interest rates make borrowing more expensive and reduce demand for oil, Reuters said.

Supporting oil prices however was a weaker US dollar in Thursday's Asia trading session, said OANDA senior analyst Kelvin Wong. A weaker dollar lifts oil prices by making it cheaper for holders of other currencies.

US crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said.

Global daily flights were averaging 107,600 in the first eight days of July, an all-time high, with flights in China reaching a five-month peak and port and freight activities indicating "sustained expansion" in trade activities from last year, JP Morgan said in a client note.

"Year to date, global oil demand growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said.

Additionally, there is doubt the recent increase in production quotas announced by OPEC+ will result in an actual increase in production, as some members are already exceeding their quotas, said Tony Sycamore, an analyst at IG.

"And others, like Russia, are unable to meet their targets due to damaged oil infrastructure," he said.

OPEC+ oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members, and the United Arab Emirates' move to a larger quota.