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Riyadh Sees Surge in Business Activity Ahead of Eid al-Fitr

Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
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Riyadh Sees Surge in Business Activity Ahead of Eid al-Fitr

Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)
Shoppers crowd to buy sweets at a shopping mall in Riyadh (Asharq Al-Awsat)

In the final ten nights of Ramadan, as Eid al-Fitr draws near, Riyadh transforms into a bustling hive of activity. Shops see an increase in foot traffic, and the streets become crowded, reflecting the anticipation and excitement of families preparing for the upcoming celebration.

As Eid approaches, families race to stores to purchase new clothes, decorations, gifts, and everything else that adds to the festive atmosphere.

In a familiar scene, many stores extend their working hours to 24 hours a day to accommodate the growing influx of shoppers, with merchants viewing this season as a golden opportunity to boost sales, particularly in textiles, footwear, home appliances, and sweets.

This bustling commercial activity not only benefits stores but also contributes to supporting the national economy.

Meanwhile, the transportation sector is also experiencing a surge in activity, as many families travel to their hometowns to prepare for the holiday. Hotel and rest house bookings are rising, especially with the growing demand to spend Eid vacation in these pleasant surroundings.

Eid preparations in Saudi Arabia go beyond shopping; they also include getting homes ready to welcome guests and preparing traditional dishes that define each household.

Eid in the kingdom is not only a religious occasion but also an opportunity to strengthen family bonds and connections, as relatives and friends come together to exchange greetings and celebrate.

Economic analyst Rowan bin Rubayan told Asharq Al-Awsat that Riyadh’s markets are witnessing an exceptional consumption season as Eid al-Fitr approaches.

Shoppers are flocking to a wide range of sectors, with the most notable being fashion, food, and sweets. The hospitality, restaurant, entertainment, and domestic tourism sectors are also benefiting from this boom, as are transportation and delivery services, which are experiencing significant growth due to increased demand.

Bin Rubayan highlighted that promotional offers play a key role in driving sales, with stores relying on discounts and free gifts to attract shoppers during the holiday season.

Economic expert and King Abdulaziz University academic Dr. Salem Baajaja told Asharq Al-Awsat that Riyadh experiences a significant commercial boom during the last ten days of Ramadan, leading to a noticeable surge in market activity.

Baajaja explained that, as the most populous city in the kingdom, Riyadh sees a sharp increase in demand for goods, prompting stores to operate around the clock to meet the ongoing influx of shoppers.

This surge has had a positive impact on commercial revenues, contributing to the overall growth of the national economy.

In conclusion, Eid al-Fitr is not just the end of the fasting month; it is a season of joy that strengthens family ties in a spirit of love and solidarity.

Streets are adorned with decorations, homes are lit up, and parks are filled with families, while entertainment events and festive shows add a special touch of happiness, completing the Eid celebration with a sense of unity and joy.

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Business

The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
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The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)

The recent regional war and the closure of the Strait of Hormuz have pushed Iraq’s economy into one of its most serious crises in decades. The massive financial losses are more than just another consequence of regional conflict; they have exposed Iraq’s near-total dependence on a single maritime export route.

As Baghdad struggles to finance public-sector salaries through domestic borrowing and the use of foreign-exchange reserves, the crisis has renewed scrutiny of years of poor planning, corruption, and political obstruction of strategic projects, such as the Basra-Aqaba oil pipeline, initiatives that could have provided alternative export routes and a safety net for the country’s most important source of income.

Financial and energy analysts estimate Iraq’s losses at more than $37 billion, a severe blow to an economy that relies overwhelmingly on oil revenues.

The disruption has forced authorities to draw on domestic debt and accumulated reserves to cover monthly salary and pension obligations estimated at roughly $6.5 billion.

Slow recovery

Although the conflict appears to be winding down and the Oil Ministry has expressed optimism about resuming production, energy experts caution that Iraqi oil fields may require months to return to their prewar output levels.

Before the crisis, Iraq produced more than 4.2 million barrels per day, including approximately 3.5 million barrels exported to international markets.

Observers said the consequences extend beyond the immediate financial shock caused by the freezing of oil revenues. The conflict revealed a “dangerous strategic vulnerability”: Iraq’s overwhelming reliance on southern Gulf export terminals and the Strait of Hormuz as the sole outlet for its most valuable resource.

The crisis has also revived debate over decades of mismanagement and inadequate planning in one of the country’s most vital economic sectors.

Oil trucks arrive from Iraq, on their way to the Baniyas oil terminal, in Qamishli, Syria, May 11, 2026. (Reuters)

A single export gateway

Over previous decades, Iraq possessed several overland export routes, including the Kirkuk–Ceyhan pipeline to Türkiye, the Iraq-Saudi pipeline, and the historic Kirkuk-Haifa and Kirkuk-Baniyas lines. Most have been out of service for years because of wars, political instability, and security challenges.

Successive governments sought to revive export diversification. Among the most significant proposals was the Basra-Aqaba pipeline, championed during the administration of former Prime Minister Mustafa Al-Kadhimi. The project would transport crude oil from southern Iraq to Jordan’s Red Sea port of Aqaba.

Energy specialists regard it as a strategic asset that could have reduced Iraq’s dependence on Gulf shipping routes. Political disputes and regional pressures, however, prevented its implementation.

Limited alternatives

As the crisis intensified and oil revenues dwindled, Iraq attempted to expand exports through Türkiye, Syria, and Jordan. Energy experts said those efforts achieved only marginal results.

Contrary to reports that Iraq was exporting oil through 700 tanker trucks through Syria, former Oil Ministry spokesman Asim Jihad said exports through Syrian territory amount to no more than 200 tankers per day.

He told Asharq Al-Awsat that Iraq is exporting fuel oil rather than crude oil through Syria to avoid bottlenecks at producing fields.

Such shipments, he added, are operationally complex and generate only limited revenue compared with normal export volumes.

On the northern route, Jihad noted that Iraq exports between 150,000 and 200,000 barrels per day through the Kurdistan Region’s pipeline to the port of Ceyhan in Türkiye.

Meanwhile, the older federal pipeline linking Kirkuk to Ceyhan remains out of service because of extensive damage that has yet to be repaired.

A drone view shows the Rumaila oil field in Basra, Iraq, June 8, 2026. (Reuters)

Jihad expressed little optimism that Iraq can establish major alternative export corridors outside the Gulf in the near future, citing time constraints, high costs, and political complications.

He also voiced uncertainty about negotiations with Ankara over future export agreements through Ceyhan, particularly as existing arrangements are set to expire at the end of July.

“The only option left for Iraq is to hope that no new conflict erupts in the Gulf that would once again close the Strait of Hormuz and deprive the country of its primary source of income,” he added.

Cost of the blockade

The Eco Iraq Observatory estimated that Iraq has lost roughly 350 million barrels of oil exports since the Strait of Hormuz was closed on February 28, representing missed sales worth approximately $37.7 billion at average market prices during the period.

According to the organization, Iraq had been exporting between 103 million and 107 million barrels of crude oil per month before the closure. Export losses reached 84.4 million barrels in March, 93.1 million in April, 92.8 million in May, and 79.6 million in June.

Eco Iraq argued that the “New Levant” initiative — a regional economic integration project involving Iraq, Jordan, and Egypt — has become a strategic necessity.

The plan envisions deeper economic cooperation, infrastructure links, and alternative export routes, including the shipment of Iraqi oil through Jordan to Egyptian ports, reducing dependence on geopolitically vulnerable maritime corridors.

Business

Crude Prices Drop, Most Stocks Rise on 'Positive' US-Iran Talks

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
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Crude Prices Drop, Most Stocks Rise on 'Positive' US-Iran Talks

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo

Oil prices fell Monday on optimism over US-Iran peace talks, with mediators flagging a "roadmap" to a final agreement, while most equities rose thanks to another healthy start for tech firms.

After a meeting planned for Friday was cancelled owing to fighting between Israel and Hezbollah, the negotiations finally got underway on Sunday in Switzerland with teams led by US Vice President JD Vance and Iran's Mohammad Bagher Ghalibaf.

Traders remain in buoyant mood after news that the two foes had ended their conflict, which had sent energy costs soaring and stoking inflation, sending shivers through the global economy.

There were initial jitters following reports that Iran had called off the talks over US President Donald Trump's threat to carry out more strikes if Hezbollah kept attacking Israel, but mediators Pakistan and Qatar said the talks took place in "a positive and constructive atmosphere".

The mood improved as Qatar and Pakistan announced progress, which aim to address Tehran's nuclear program and reopen the Strait of Hormuz, through which a fifth of oil and gas pass.

The two said the United States and Iran agreed to set up a "communication line" to avoid incidents in the crucial waterway, and "the High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks".

Iranian Foreign Minister Abbas Araghchi added on X that "mediation has delivered major progress to end Lebanon War".

Both main oil contracts fell in early trade, while most stock markets advanced.

Tokyo climbed two percent, Seoul was up more than one percent and Taipei jumped 2.7 percent.

The gains came on the back of another rally in tech firms, particularly chipmakers including South Korea's SK hynix, Taiwan's TSMC and Japan's Advantest.

Sydney, Wellington and Jakarta also advanced, though there were losses in Hong Kong, Shanghai and Singapore.

"Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile," said National Australia Bank's Skye Masters.

"The dollar is likely to remain supported, the oil price could swing either way but at current levels the risk is for a lift higher."

Sterling remained under pressure after suffering selling following Thursday's election of UK Labor politician Andy Burnham that ramped up expectations he will oust beleaguered Prime Minister Keir Starmer.

The embattled premier "is expected to announce on Monday that he will step down as prime minister after overwhelming pressure from Labor MPs to make way for Andy Burnham", Britain's Guardian newspaper said.

Investors were nervous that Burnham could introduce fresh spending plans that would add to the country's already huge debt pile.

Business

Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talks

Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)
Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)
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Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talks

Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)
Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)

Gold rebounded from a more than one-week low on Monday, as oil prices fell after Iran cited progress in US-Iran peace talks, though bets of higher interest rates after hawkish US Federal Reserve signals weighed on the metal's outlook.

Spot gold was up 0.8% at $4,194.99 per ounce, as of 0608 GMT, after falling to its ‌lowest level ‌since June 11 on Friday. US gold futures ‌for ⁠August delivery fell ⁠0.8% to $4,213.10.

The first round of talks between high-ranking US and Iranian officials in Switzerland ended Monday, with an Iranian foreign ministry spokesperson saying good progress has been made, according to Iran's Press TV.

A joint statement from mediating nations Qatar and Pakistan said the US and Iran agreed to a roadmap toward a final deal within ⁠60 days.

"The current situation in Switzerland is quite ‌different from a few hours ago ‌when the two sides were squabbling, but now it seems they're making ‌some progress," said Edward Meir, an analyst at Marex.

"We're going ‌to be trading on geopolitical guidelines for a little while longer, but the situation is fluid so perhaps best to watch the action from the sidelines for now."

Brent crude futures fell more than 1% after ‌the announcement. Elevated oil prices stoke inflation concerns and raise expectations of higher interest rates. Gold tends ⁠to lose appeal ⁠when rates are high, as it does not yield interest.

Meanwhile, Fed Chair Kevin Warsh's emphasis on inflation in last week's press conference, without any more-nuanced commentary about what might clear the bar for a rate hike, led investors to conclude an increase was coming soon.

Nine of the Fed's 19 policymakers believe they will need to raise the policy rate this year.

Traders see an 89% chance of a rate hike in December, from 61% before the Fed's meeting, according to the CME FedWatch Tool.

Spot silver rose 2.4% to $66.48 per ounce, platinum gained 0.7% to $1,675.91, and palladium was up 1.8% at $1,280.45.