Saudi Arabia Strengthening Economic Transformation Plan, Finance Minister Says

Saudi Flag / File/Reuters
Saudi Flag / File/Reuters
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Saudi Arabia Strengthening Economic Transformation Plan, Finance Minister Says

Saudi Flag / File/Reuters
Saudi Flag / File/Reuters

Saudi Arabia is strengthening its commitment to a plan designed to wean the economy off oil, its finance minister said on Wednesday.

Mohammed Al Jadaan was addressing the second day of the Future Investment Initiative (FII) conference in Riyadh, which is hosting top global business, technology and financial leaders.

"Overall, I think we are very, very excited and happy with what we have achieved in the Saudi 'Vision 2030', but we are not complacent. We are doubling down, making sure that we do the right thing," the finance minister said.

In one deal signed during the conference, PIF will be an anchor investor in a new $2 billion Middle East-focused private equity fund from Canada's Brookfield Asset Management, which it plans to use for investments in sectors such as industrials, technology and healthcare, Reuters reported.

At least half of the capital will be invested in Saudi Arabia and international companies that are looking to expand in the Kingdom, the two companies said in a joint statement on Wednesday.

Jerry Inzerillo, CEO of Diriyah, a $64 billion "giga-project" located at a UNESCO World Heritage site outside the capital Riyadh, told the audience at FII that the project was "on time and on budget" and that its value and assets could rise to "well over" $100 billion by 2030.

"We are having a great FII because we closed so many deals here," Inzerillo added.

Jadaan told the audience on Wednesday investors were confident in the kingdom's plans.

"I really did not come here for Saudi Vision promises. I came here for what Saudi Vision delivered," Jadaan quoted a "prominent" investor attending the event as telling him.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.