Saudi Energy Secures $4Bn Murabaha Financing Facility to Support Operations

The Saudi Energy Company's headquarters in Riyadh. (Saudi Energy)
The Saudi Energy Company's headquarters in Riyadh. (Saudi Energy)
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Saudi Energy Secures $4Bn Murabaha Financing Facility to Support Operations

The Saudi Energy Company's headquarters in Riyadh. (Saudi Energy)
The Saudi Energy Company's headquarters in Riyadh. (Saudi Energy)

Saudi Energy, the Kingdom's primary power service provider, said it had secured a SAR15.8 billion ($4.1 billion) shariah-compliant Murabaha financing facility from a consortium of seven leading Saudi banks to support its general corporate purposes.

The financing facility, signed on Monday, has a tenure of seven years from the date of signing. It was arranged by Saudi National Bank (SNB), Al Rajhi Banking and Investment Corporation, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), Arab National Bank (ANB), Riyad Bank, and The Saudi Investment Bank (SAIB), said Saudi Energy in its filing to Saudi bourse.

The SAR15.8 billion funding will be utilized for general corporate purposes, providing Saudi Energy with additional financial flexibility to support its ongoing operations, strategic initiatives and future business requirements, it stated.

The financing has been secured on an unsecured basis, with no guarantees offered in connection with the facility, said the company in its bourse filing.

The agreement represents a significant financing arrangement for Saudi Energy and underscores the strong support of the Kingdom’s banking sector for the company’s business activities and long-term growth strategy, it added.



Gold Firms as Softer US Inflation Dims October Fed Hike Bets

UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
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Gold Firms as Softer US Inflation Dims October Fed Hike Bets

UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo

Gold rose on Thursday after a softer-than-expected US inflation report tempered expectations for a Federal Reserve rate hike this month, with markets looking to upcoming jobs data for further policy signals.

Spot gold gained 0.8% to $4,187.43 per ounce by 0625 GMT, starting the month on a positive note after a more than 6% fall in September. US gold futures for December delivery firmed 0.7% to $4,217.50, Reuters reported.

Data on Wednesday showed US inflation rose ⁠less than expected in ⁠August, while price pressures were revised lower for the prior month.

The data reduced expectations of a rate hike in October, with markets pricing in a 36% chance, down from 45% before the release. Traders, however, still see an 89% probability of an increase in December.

Higher interest rates reduce the ⁠appeal of gold, which does not pay interest.

"Incoming data is going to be important... to see how the market deals with it and shapes rate-hike expectations," said Ilya Spivak, head of global macro at Tastylive.

"We are in a situation where the market is dealing with a lot of conflicting forces."

The crucial US nonfarm payrolls report for September is scheduled for release on Friday.

Limiting gains for gold, the US dollar drifted higher. A stronger greenback makes dollar-priced metals costlier for holders of ⁠other currencies.

All ⁠of gold's "September losses are unlikely to be recovered, but there are reasons to believe that the worst of the correction is over for now and that there is a case for higher prices," said Bart Melek, global head of commodity strategy at TD Securities.

On the geopolitical front, Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire, days after US President Donald Trump said he had rejected it.

Spot silver rose 1.4% to $61.23, platinum climbed 1.2% to $1,727.18 and palladium gained 0.6% to $1,210.75.


Trump Says He Is Still Considering Diesel Export Ban

 A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
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Trump Says He Is Still Considering Diesel Export Ban

 A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)

US President Donald Trump said on Wednesday that he has conversations about banning diesel exports "every day" as the White House races to curb soaring energy prices.

Speaking from the Oval Office, Trump said an export ban would "have a negative impact on gasoline" prices, but could lower diesel costs.

He said Russia's war in Ukraine, with strikes ‌from either side ‌impacting energy production and exports, is ‌the ⁠main cause of ⁠rising diesel prices.

He added: "We think we're in a very good place."

Gasoline prices have jumped more than 40% over the past year and diesel climbed to a record of $6.53 a gallon a week ago, according to AAA data. The price spike ⁠is largely driven by a combination of ‌a reduction in supply ‌due to the Iran war and interruptions to refining, in ‌part because of Ukraine's attacks on Russian energy ‌facilities.

The Trump administration and Republican candidates have been under pressure to bring down fuel costs as November's midterm elections approach and Trump's economic approval ratings remain under strain.

Energy Secretary ‌Chris Wright said the disruptions were more widespread.

"We've lost some diesel exports from the ⁠Middle ⁠East, although we're restoring those, and we've lost diesel exports from China," he said. "So that's a lot of interruptions."

He said the administration expected announcements soon from Europe about new diesel supplies.

The White House has urged the European Union to release emergency diesel stocks to help ease prices, Reuters reported.

The Trump administration has also weighed a blanket diesel export ban, voluntary export limits by refiners and allowing broader sales of tax-exempt diesel.


Saudi Arabia Earmarks $371 Bn in Spending for 2027 Budget

The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
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Saudi Arabia Earmarks $371 Bn in Spending for 2027 Budget

The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)

Saudi Arabia projects spending of 1.392 trillion riyals ($371.2 billion) in 2027 against revenue of 1.202 trillion riyals ($320.5 billion), leaving a budget deficit of about 3.6% of gross domestic product as it funds economic growth and development and strategic priorities.

The Finance Ministry released its preliminary budget statement for fiscal 2027 on Wednesday as the kingdom presses ahead with economic transformation programs and expands non-oil activity. Its fiscal policy seeks to support growth while maintaining fiscal sustainability.

The ministry forecasts revenue rising to about 1.351 trillion riyals ($360.3 billion) by 2029, with spending increasing to about 1.544 trillion riyals ($411.7 billion).

The projections point to sustained spending on development and strategic priorities and projects with economic and social returns, backed by long-term fiscal planning designed to maintain sustainability across economic cycles.

Diversification initiatives and economic reforms have lifted non-oil revenue from about 166 billion riyals ($44.3 billion) in 2015 to 505 billion riyals ($134.7 billion) in 2025, strengthening revenue stability and broadening its sources.

Non-oil growth cushions oil slump

Saudi Arabia’s real GDP is expected to contract by 3.6% in 2026 as oil activity falls by 21.8%, according to preliminary estimates reflecting the impact of economic and geopolitical developments.

Non-oil activity is forecast to grow by 3.2%, cushioning the decline in the broader economy.

In the first half of 2026, non-oil activity grew by 1.8%, lifting its share of real GDP to a record 57.3%, driven by strong domestic demand and private investment inflows.

Saudi unemployment falls to 6.5%

Unemployment among Saudi nationals fell to 6.5% in the second quarter of 2026.

Inflation is estimated at about 2.1% for the full year, amid sustained domestic demand and developments in non-oil economic activity.

Government plans domestic and international financing

The government plans to continue raising funds domestically and internationally in 2027 and over the medium term under its medium-term debt strategy, through bond and sukuk issuance and loans.

It also plans to expand alternative government financing.

These channels include project and infrastructure financing and financing through export credit agencies, providing additional funding for projects and development priorities.

Finance Minister Mohammed Al-Jadaan said the preliminary 2027 budget estimates come amid persistent global economic uncertainty and accelerating geopolitical developments.

The kingdom continues to manage public finances with a long-term view, he said, strengthening its ability to respond to changing conditions and sustain spending on development and strategic priorities while preserving fiscal sustainability and financial strength.

The government is monitoring economic and geopolitical developments and assessing their potential impact on the global economy, supply chains and energy markets, he added. Flexible, proactive policies aim to support the economy and keep it on course toward Saudi Vision 2030 targets.

Al-Jadaan said economic transformation plans would continue to support growth and broaden the economic base, lifting non-oil revenue and making revenue more sustainable and stable over the medium and long term.

Deficit fits long-term fiscal policy

The projected 2027 deficit of 3.6% of GDP is part of a fiscal policy aimed at preserving financial strength and improving fiscal sustainability while maintaining spending on priority projects.

The Finance Ministry said the approach allows the government to pursue balanced fiscal policies across economic cycles, support growth, adapt to changing conditions and manage crises and emergency needs while keeping public debt sustainable and maintaining substantial fiscal reserves.

The government plans to continue domestic and international financing in 2027 and over the medium term under its medium-term debt strategy, issuing bonds and sukuk and securing loans at a fair cost.

It also plans to expand alternative government financing, including project and infrastructure financing and financing through export credit agencies.