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Al Balad Development Company Launches $3.6 Bn Investment Portfolio to Revitalize Historical Jeddah 

The initiative aims to transform Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development. (Al Balad Development Company)
The initiative aims to transform Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development. (Al Balad Development Company)
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Al Balad Development Company Launches $3.6 Bn Investment Portfolio to Revitalize Historical Jeddah 

The initiative aims to transform Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development. (Al Balad Development Company)
The initiative aims to transform Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development. (Al Balad Development Company)

Al Balad Development Company, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF) and the master developer of the Historical Jeddah (Al-Balad) revitalization project, has launched a $3.6 billion hospitality investment portfolio aimed at developing and restoring hotel assets across the district.

The initiative, announced during the TOURISE Global Tourism Summit in Riyadh, covers projects running from 2025 to 2038 and targets the creation of more than 3,300 hotel units, ranging from mid-scale to luxury. The projects will be financed through flexible models, including public-private partnerships and specialized investment funds.

According to Al Balad Development Company CEO Jamil Hasan Ghaznawi, the announcement marks a major milestone in transforming Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development.

“This step combines leadership in urban renewal with the empowerment of the private sector,” Ghaznawi told Asharq Al-Awsat. “It will create long-term investment opportunities within one of the Kingdom’s most unique heritage environments.”

He explained that the $3.6 billion investment will be distributed across multiple projects, each with its own timeframe and return profile. Revenues are expected to come from year-round operations supported by Jeddah’s diverse tourism base, including business, leisure, pilgrimage, and cultural visitors.

He said: “Al-Balad is a living destination. Its steady flow of residents, merchants, and tourists ensures sustainable annual returns beyond seasonality.”

Ghaznawi added that the financing strategy does not rely solely on self-funding. Instead, Al Balad Development Company aims to diversify investment sources through partnerships with local and international private investors and by establishing dedicated investment funds.

He emphasized that this approach complements the role of sovereign funds in enabling domestic investment and strengthening collaboration between the public and private sectors.

Regarding infrastructure, Ghaznawi affirmed that the district’s heritage identity will remain untouched. The area is subject to defined urban guidelines and strict architectural standards to ensure all restoration and construction adhere to authentic Hejazi style while harmonizing with contemporary design.

Projects will be carried out in phases from 2025 to 2038 to preserve the historic urban fabric and maintain smooth movement within the district. Every new development, he noted, requires official restoration or construction permits from the relevant heritage authorities.

The launch underscores Al Balad Development Company’s commitment to restoring and sustaining Historic Jeddah in line with the PIF’s objectives and Saudi Vision 2030 to diversify the national economy and expand investment in tourism, hospitality, and culture.

Through its strategic projects, the company seeks to breathe new life into Jeddah’s historic heart, transforming it into a thriving economic ecosystem that preserves its cultural and architectural legacy, while opening new horizons for sustainable growth.

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Business

Norway's Sovereign Fund Proposes Deep Cuts to US Treasury Holdings

A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
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Norway's Sovereign Fund Proposes Deep Cuts to US Treasury Holdings

A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche

The manager of Norway's $2.3 trillion sovereign wealth fund has proposed significantly cutting its exposure to US Treasuries as part of a wider shake-up of its bond investments to improve returns, according to a letter published this week.

Norges Bank Investment Management has recommended reducing its weighting to government bonds within its benchmark bond index to 50% from 70%, with US Treasuries, the biggest holding, getting the biggest cut, according to the letter.

The changes would mean cutting nearly $80 billion from the fund's current holdings of about $215 billion of US Treasuries as of the end of June, according to Reuters calculations.

Government bond markets have been under pressure recently, with long-term borrowing costs soaring as rising inflation and government debt levels spooked investors.

Norway's sovereign wealth fund, the world's largest, owns on average 1.5% of ⁠all listed companies ⁠globally. Its scale means that portfolio decisions can influence broader market flows. Any cuts to its bond holdings are unlikely to be implemented until several months into 2027 at the earliest.

The letter containing the fund's proposals was sent in response to questions from Norway's finance ministry about the wealth fund's investment strategy for bonds.

Norges Bank IM said it would await the ministry's response, and any changes would be done gradually to limit market impact and transaction costs.

The proposals will form part of recommendations to the ministry in January.

They will be discussed ⁠as part of the fund's annual white paper process next spring, after which the ministry will make a final recommendation to parliament which will then hold a hearing, a Norges Bank IM spokesperson said.

"We recommend that the government subindex of the bond index be reduced from 70% to 50%," Ida Wolden Bache, governor of Norges Bank, and Norges Bank IM CEO Nicolai Tangen wrote in the letter.

"A government share of 50% will be sufficient to cover the liquidity needs, including in periods of turbulence in financial markets."

The fund also proposed considering an increase in investments in unlisted assets in a separate letter, in part as a way to reduce concentration risks that have grown in its equity portfolio amid the boom in the share prices of a handful of US tech companies.

Under its current mandate the fund can own unlisted real estate and renewable energy assets, but it has a lower share of unlisted investments ⁠than comparable funds.

Norges Bank IM said the biggest change to its bond index would be investing in more non-government debt, including mortgage-backed securities, to give it better diversification and exposure to risk premiums.

The spokesperson said total US dollar exposure would remain around 50%, adding: "What changes is the mix inside the dollar market: less US government debt, correspondingly more US mortgage and government-related bonds."

Under the proposals, the bond index weighting to US government bonds would reduce from 34.1% to 21.9%, according to the letter, with the allocation to euro area debt falling more modestly from 16.8% to 14.1%.

The allocation to Japanese government bonds would increase from 4.6% to 7.4%, while the UK allocation would remain unchanged at 4.2%. The fund said the changes would align the index more closely with the broader market weightings.

While US Treasuries exposure would fall, the proposed allocation to US non-government debt would jump from 16.2% to 27.6%, meaning that the overall bond index's weighting to the US dollar would fall only slightly, from 52.9% to 52.5%.

Europe's biggest pension fund, Dutch fund ABP, cut the value of its own US Treasury holdings in the first quarter of this year, Reuters previously reported.

Business

J.P. Morgan, BNP Paribas Forecast December ECB Rate Hike

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
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J.P. Morgan, BNP Paribas Forecast December ECB Rate Hike

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo

J.P. Morgan and BNP Paribas said on Thursday they expect the European Central Bank to deliver another 25-basis-point rate hike in December, as persistent inflation risks and elevated energy prices strengthen the case for further tightening.

Both brokerages had previously expected the ECB's tightening cycle to end without a December rate increase.

The revised outlooks suggest borrowing costs in the euro zone will remain elevated for longer than previously anticipated, reflecting resilient regional economic ⁠growth and ongoing energy ⁠supply concerns.

"We think the persistence of the energy shock and the resilience of the economy make second-round effects more likely to materialize," said analysts at BNP Paribas in a note.

Markets have almost fully priced in ⁠a 25-basis-point interest rate hike by the European Central Bank at its September 10 policy meeting, indicating a 99.2% probability, according to data compiled by LSEG.

Oil prices eased but remained above $95 a barrel. At the same time, eurozone bond yields retreated from multiyear highs, following recent market pressure as the escalating conflict in Iran boosted energy prices, stoking fears of persistent inflation and ⁠tighter ⁠monetary policy.

According to Reuters, J.P. Morgan said "an interaction between more persistent energy price pressures, solid growth, sticky core inflation and a neutral rate that the ECB sees edging higher" would be the reason for a further rate hike in December.

BNP Paribas expects the ECB to hike interest rates by 25 bps at its meeting next week while leaving the door wide open to delivering more if evidence of second-round effects builds.

Business

US Sanctions Turkish Bank Golden Global Over Alleged Iran Links

ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
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US Sanctions Turkish Bank Golden Global Over Alleged Iran Links

ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)

The US Treasury Department on Friday imposed sanctions on a Turkish bank over its alleged ties to Iran's Revolutionary Guard Corps (IRGC), as Washington pushes to economically isolate Tehran six months into their war. 

The latest action targets Golden Global Bank and its subsidiaries, which the US Treasury said "facilitated tens of millions of dollars' worth of transactions" for the IRGC. 

They were also said to have provided Tehran with "key correspondent banking access that allows it to move its funds internationally." 

The bank denied the accusations, saying it "has not concluded any banking transactions that could substantiate" the claims by the US government. 

The institution, which describes itself as "the first investment bank in Türkiye that observes the principles of interest-free banking in all its operations," said it respects "all applicable local and international banking regulations, practices and compliance requirements." 

Last week, Washington took a step towards cutting a major Egyptian bank's United Arab Emirates operations from the US financial system. 

"Financial institutions continue to find out the hard way that we are serious about Operation Economic Outcast," said US Treasury Secretary Scott Bessent in a statement. 

"While we hope no more banks will need to be sanctioned, that ultimately depends on how quickly the international community comes to its senses and ceases support of the murderous Iranian regime," he added. 

Bessent had said Tuesday that Washington would likely announce a bank sanction this week and one next week, as it tries to choke off Tehran economically. 

He was speaking on the sidelines of a Group of 20 finance leaders' gathering in Asheville, North Carolina, where he also sought to rally support from partners to put pressure on Iran. 

Iran has been at war since late February, when the United States and Israel launched a surprise bombing campaign that killed its supreme leader. 

Bessent recently vowed that the United States was declaring an "economic D-Day" on Iran, and warned of harsh consequences for countries that do not join the campaign.