Mexico Eyes Trade Expansion, Targets Saudi Market with Premium Rice Exports

Rice products at a commercial market in Saudi Arabia (SPA)
Rice products at a commercial market in Saudi Arabia (SPA)
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Mexico Eyes Trade Expansion, Targets Saudi Market with Premium Rice Exports

Rice products at a commercial market in Saudi Arabia (SPA)
Rice products at a commercial market in Saudi Arabia (SPA)

Mexico is preparing to expand its trade ties with Saudi Arabia by exporting high-quality rice to the Kingdom, sources told Asharq Al-Awsat.

They said Mexico has an export offer for three premium rice varieties that meet the highest international standards.

Saudi Arabia imports limited quantities of Mexican rice, mainly for use in Mexican cuisine and restaurants.

The latest initiative reflects the Kingdom’s position as one of the world’s largest rice consumers, with per capita consumption averaging 45.77 kilograms annually, the highest among plant-based food products.

Around 70 percent of consumption consists of basmati rice, while total annual imports exceed 1.3 million tons.

According to the information obtained by Asharq Al-Awsat, the Saudi Ministry of Foreign Affairs received a request from the Mexican Embassy in Riyadh conveying the interest of the Mexican state of Nayarit in exporting premium rice to the Saudi market.

The embassy said three varieties are available for export: Super Extra Whole Grain Rice (long grain) with a monthly supply of 120 tons; Milagro Super Extra Rice (polished broad grain) with a capacity of 30 tons per month; and Morelos rice, an additional premium-grade variety.

Saudi Arabia has previously taken steps to encourage private-sector imports of Cambodian rice in a move aimed at diversifying supply sources alongside imports from India, Pakistan, the United States and Egypt.

Strong demand for favored rice varieties in Saudi Arabia and across the Gulf, combined with challenges such as rising shipping costs and climate-related disruptions, has occasionally led to price fluctuations. These factors have prompted the Kingdom to broaden its supplier base to ensure the availability of this commodity and maintain price stability.

The government recently decided to increase Pakistani rice imports to account for 20 percent of total needs, reinforcing supply stability and food security.

Forecasts suggest that per capita rice consumption in Saudi Arabia could rise to around 50 kilograms annually in the coming years, up from the current 45.77 kilograms, underscoring rice’s central role in the Kingdom’s food industry and traditional cuisine.



Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)
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Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)

Goldman Sachs and J.P. Morgan now expect the US Federal Reserve to raise interest rates this week after a string of stronger-than-expected inflation readings challenged hopes that price pressures would continue to ease without additional policy tightening.

The Wall Street banks joined a growing number of forecasters turning more hawkish after data last week showed ‌US consumer ‌and producer prices rose more than expected in August, ‌while ⁠oil prices climbed ⁠above $100 a barrel due to renewed hostilities in the Middle East, reported Reuters.

In a note on Friday, Goldman Sachs abandoned its previous call for rates to remain unchanged and now expects a 25-basis-point increase at the US Fed's September 15-16 meeting. J.P. Morgan, meanwhile, forecasts quarter-point hikes in both September and December.

The latest data have revived concerns that progress toward the Fed's ⁠2% inflation target could stall after months of moderation.

"We ‌think that the FOMC will be ‌reluctant to surprise," Goldman Sachs economist David Mericle said.

J.P. Morgan struck a similarly ‌hawkish tone following the inflation reports.

"The week that saw rising ‌bond yields and energy prices and a firm enough set of inflation readings to make a rate hike at next week's FOMC meeting more likely than not," J.P. Morgan economists led by Michael Feroli said in a note.

The outlook ‌for further Fed tightening will be in focus this week as policymakers conclude their meeting on Wednesday, ⁠while investors ⁠also watch the Bank of Japan for policy signals.

J.P. Morgan said the latest inflation data cast doubt on a sustained disinflation trend, leading it to forecast another Fed rate hike this year and raise its estimate of the long-run policy rate to 3.25%.

Markets are pricing in an 87% chance of a quarter-point Fed rate hike this month, up from about 70% before the latest inflation data, with another increase expected in December, according to CME's FedWatch Tool.

In a separate note on Sunday, Goldman Sachs said it still expects two Fed rate cuts in 2027, though later than previously forecast, as it sees this week's expected hike as driven more by market pricing than inflation fundamentals.


Saudi Arabia’s Dammam Airports Signs Design Contract to Develop King Fahd Int'l Airport

Dammam Airports CEO Eng. Mohammed Al-Hassany and President of WSP for the Middle East and Asia Dean McGrail seen at the signing of the agreement on Sunday. (X)
Dammam Airports CEO Eng. Mohammed Al-Hassany and President of WSP for the Middle East and Asia Dean McGrail seen at the signing of the agreement on Sunday. (X)
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Saudi Arabia’s Dammam Airports Signs Design Contract to Develop King Fahd Int'l Airport

Dammam Airports CEO Eng. Mohammed Al-Hassany and President of WSP for the Middle East and Asia Dean McGrail seen at the signing of the agreement on Sunday. (X)
Dammam Airports CEO Eng. Mohammed Al-Hassany and President of WSP for the Middle East and Asia Dean McGrail seen at the signing of the agreement on Sunday. (X)

Dammam Airports CEO Eng. Mohammed Al-Hassany and President of WSP for the Middle East and Asia Dean McGrail signed on Sunday a design contract to develop the King Fahd International Airport in accordance with the airport's approved master plan.

Al-Hassany said signing the contract marks a significant milestone in the development of King Fahd International Airport.

Dammam Airports is committed to upgrading airport facilities, increasing capacity, and delivering a seamless, high-quality travel experience through modern design solutions and smart technologies that meet travelers' needs and accommodate future growth in passenger and air cargo traffic, he stressed.

This will reinforce the airport's status as an international gateway connecting Eastern Region to the world, he added..

The project scope includes designing the expansion of passenger terminals, upgrading facilities, and improving airport entrances and access roads. It also includes developing baggage handling systems, digital services, and terminal wayfinding systems to streamline travel procedures and enhance passenger comfort.

The master plan aims to serve more than 19.3 million passengers annually by 2030, with capacity to be increased in phases to 32 million passengers per year to meet future travel demand.

It targets increasing air cargo capacity to more than 600,000 tons annually and aircraft operational capacity to 77 movements per hour, supported by comprehensive expansions of infrastructure, runways, and general aviation facilities.

The contract is part of Dammam Airports' ongoing efforts to develop the airport ecosystem, boost operational efficiency, and contribute to achieving the objectives of the Aviation Program and Saudi Vision 2030.


Iraq Signs Technical Consultancy Agreement with Chevron to Develop West Qurna 2 Field

Officials are seen during Sunday's signing of the agreement. (INA)
Officials are seen during Sunday's signing of the agreement. (INA)
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Iraq Signs Technical Consultancy Agreement with Chevron to Develop West Qurna 2 Field

Officials are seen during Sunday's signing of the agreement. (INA)
Officials are seen during Sunday's signing of the agreement. (INA)

Iraq’s Ministry of Oil signed on Sunday an agreement with the US company Chevron to provide technical consultancy to the Basra Oil Company.

The agreement was signed under the auspices of Oil Minister Basim Mohammed Khudair Al-Abadi.

Al-Abadi said the agreement provides consultancy services during the negotiation period with the Basra Oil Company regarding the development of the West Qurna 2 field, reported Iraq’s state news agency INA.

The signing ceremony was attended by the Undersecretary for Upstream Affairs, Naseer Aziz; the Director General of the Basra Oil Company; the Director General of the Oil Marketing Company (SOMO); and the Director General of the Petroleum Contracts and Licensing Directorate.