Saudi MODON, Techno for Advanced Materials Agree to Establish First CNTs Plant

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)
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Saudi MODON, Techno for Advanced Materials Agree to Establish First CNTs Plant

A general view of Riyadh, Saudi Arabia. (Reuters)
A general view of Riyadh, Saudi Arabia. (Reuters)

The Saudi Organization for Industrial Cities and Technology Zones (Modon) signed an agreement with a technology company for advanced materials to host the latter’s first plant to produce Carbon nanotubes (CNTs) in an effort to empower the industry in Saudi Arabia and support value added industries.

While Saudi Arabia has been working to boost the growth of industrial production, thus increasing its contribution to its GDP, Modon aims to support value added industries and stimulate local companies to expand in this field.

The agreement aims at supporting the specialized company to establish its first factory for the production of CNTs, which stimulate the paint industry and is in line with modern construction techniques.

It comes as Saudi factories achieved positive growth rates in the second quarter of 2018, confirming the vitality of these factories and their ability to contribute effectively to the Kingdom’s GDP.

The country’s economic growth rates started to increase in 2018, with expectations for higher growth this year.

Meanwhile, Saudi Arabia’s General Authority for Statistics issued the Index of Industrial Production (IIP) for the second Quarter 2018, which shows the results of the relative change and development in the quantities of materials and goods produced.

“When comparing the results of the second quarter 2018 with the results of the previous quarter (Q1 2018), we find that the production quantities have increased by 4.17 percent in all industrial activities, amounting to 137.87 points,” the report said.

The production increase rate in the mining and quarrying activity rise up 1.89 percent. However, the production growth rate increased by 5.07 percent in the manufacturing industry activity, and the electricity and gas supply activity rise by 83.46 percent.

“Furthermore, when comparing the results of the second quarter 2018 with the results of the second quarter 2017, we find that the production quantities increase by 5.84 percent in all industrial activities,” the report explained.

The production growth rate recorded 16.44 percent in the manufacturing industry activity while the production rate of electricity and gas supply has recorded a decrease of 0.30 percent.

These results coincide with the process of providing industrial land developed at very nominal prices, one of the most important support tools provided by Saudi Arabia to investors in the industrial sector, in addition to the provision of high financial loans to these investors.



Gold Steady as Market Eyes Middle East Conflict, Fed Decision

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Steady as Market Eyes Middle East Conflict, Fed Decision

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices were steady on Tuesday as investors assessed the conflict between Israel and Iran and looked ahead to this week's US Federal Reserve's policy meeting.

Spot gold was steady at $3,383.01 an ounce, as of 0851 GMT US gold futures fell 0.5% to $3,401.30.

Israel and Iran exchanged attacks for a fifth consecutive day on Tuesday, Reuters reported.

US President Donald Trump urged an evacuation of Iran's capital Tehran and cut short his trip to the G7 summit in Canada. A separate report said he had asked for his administration's National Security Council to be prepared in the situation room.

"Markets are waiting for the latest signals whether hostilities between Israel and Iran would escalate or will remain contained," said Han Tan, chief market analyst at Exinity Group.

"Gold still retains its bias for lurching upwards on signs of a worsening Middle East conflict, given the precious metal's stature as the preferred safe haven of late."

Zero-yield bullion is considered a hedge against geopolitical and economic uncertainty and tends to thrive in a low-interest environment.

The US central bank rate decision and Chair Jerome Powell's remarks are due on Wednesday. Traders are currently pricing in two cuts by the end of the year.

Meanwhile, Citi lowered its short-term and long-term price targets for gold, projecting prices could drop below $3,000 per ounce by late 2025 or early 2026, driven by declining investment demand and an improving global growth outlook, it said in a note on Monday.

Elsewhere, spot silver was up 0.3% at $36.45 per ounce, platinum was unchanged at $1,246.59, while palladium fell 0.4% to $1,025.44.