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Eaton: Riyadh Metro Backbone of Most Developed Infrastructure in Region

Frank Ackland, Eaton Middle East general manager. Asharq Al-Awsat Arabic.
Frank Ackland, Eaton Middle East general manager. Asharq Al-Awsat Arabic.
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Eaton: Riyadh Metro Backbone of Most Developed Infrastructure in Region

Frank Ackland, Eaton Middle East general manager. Asharq Al-Awsat Arabic.
Frank Ackland, Eaton Middle East general manager. Asharq Al-Awsat Arabic.

US Eaton company expected that Riyadh Metro, owned and managed by High Commission for the Development of Arriyadh, will be the biggest transport system in the cities to be established from scratch. The project represents the backbone of infrastructure in the city, not to mention that it is one of the most advanced and developed projects on a technical level.

Frank Ackland, Eaton Middle East general manager, stated to Asharq Al-Awsat that the new railway, which is still under construction, will be composed of six metro lines with 85 stations, and a total length of approximately 110 miles.

He hailed the fact that Riyadh has made impressive strides in reinforcing emergency lighting solutions in favor of Riyadh Metro project, along with supplying all central electrical systems to observe and supply all emergency lighting systems inside the stations and along the three metro lines.

Ackland noted that this goes in tandem with the Saudi approach, noting that the focus in the kingdom is being put on applying concepts of sustainable and active energy. Lately, there has been huge attention paid to energy saving systems, said Ackland, adding that this would contribute to the stability of the electrical network.

Ackland affirmed that the giant projects taking place in the kingdom attracted the most effective foreign solutions in the market towards the future plans of the Saudi government and the Saudi Vision 2030. The vision aims at developing and improving sectors such as health, education, infrastructure, entertainment and tourism.

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Investors Weigh Market Risks as Israeli-Iranian Tensions Rise

Traders monitoring the movement of stocks on Wall Street (Reuters)
Traders monitoring the movement of stocks on Wall Street (Reuters)
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Investors Weigh Market Risks as Israeli-Iranian Tensions Rise

Traders monitoring the movement of stocks on Wall Street (Reuters)
Traders monitoring the movement of stocks on Wall Street (Reuters)

As the conflict between Israel and Iran escalates, investors are analyzing several potential market scenarios, especially if the United States deepens its involvement. A key concern is a sharp increase in energy prices, which could amplify economic consequences across global markets.

Rising oil prices could fuel inflation, weaken consumer confidence, and diminish the likelihood of interest rate cuts in the near term. This may prompt initial stock market sell-offs and a flight to the US dollar as a safe-haven asset.

While US crude oil prices have surged by around 10% over the past week, the S&P 500 index has remained relatively stable, following a brief decline after the initial Israeli strikes.

Analysts suggest that if Iranian oil supplies are disrupted, market reactions could intensify significantly. A serious supply disruption would likely ripple through global petroleum markets and push oil prices higher, leading to broader economic consequences.

Oxford Economics has outlined three possible scenarios: a de-escalation of conflict, a full suspension of Iranian oil production, and the closure of the Strait of Hormuz. Each scenario carries escalating risks to global oil prices. In the most severe case, prices could soar to $130 per barrel, pushing US inflation to nearly 6% by year-end. In such a scenario, consumer spending would likely contract due to declining real income, and any possibility of interest rate cuts this year would likely vanish under rising inflationary pressure.

So far, the most direct impact has been felt in oil markets, where Brent crude futures have jumped as much as 18% since June 10, reaching nearly $79 a barrel, the highest level in five months. Volatility expectations in the oil market now exceed those of major asset classes like equities and bonds.

Although equities have largely brushed off the geopolitical turmoil, analysts believe this could change if energy prices continue to climb. Rising oil prices could weigh on corporate earnings and consumer demand, indirectly pressuring stock markets.

While US stocks have held steady for now, further American involvement in the conflict could spark market anxiety. Historical patterns suggest any sell-off might be short-lived. For instance, during the 2003 Iraq invasion, stocks initially dropped but recovered in subsequent months.

As for the US dollar, its performance amid escalating tensions could vary. It may strengthen initially due to safe-haven demand, although past conflicts have sometimes led to long-term weakness, especially during prolonged military engagements.