Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Iranian experts and traders are concerned that the tensions between Iran and the UAE could affect the mutual trade relations, at a time when Tehran is facing an economic crisis due to the impact of sanctions and the coronavirus pandemic.
Iran condemned the recent UAE-Israeli peace treaty, and President Hasan Rouhani gave a strongly worded statement denouncing the agreement.
In response, the Emirati foreign ministry summoned Iran's charge d'affaires in Abu Dhabi and gave him a memo saying Rouhani’s speech was “unacceptable,” warning that it could have serious repercussions for the security and stability of the Arabian Gulf region.
However, Iranian economic and foreign experts ruled out the possibility that the UAE would change its relations with Iran after the peace treaty with Israel, according to the Iranian Ilna Agency.
The chairman of Iran-UAE Joint Chamber of Commerce, Farshid Farzanegan, told the agency that despite economic problems and the spread of the coronavirus, the UAE was the only country to which Iran’s exports increased.
Farzanegan announced that Iran’s exports to the UAE increased by 16 percent in the first four months of the Iranian year that starts on March 21.
He noted that economic relations must be separate from political issues, noting that due to sanctions, Tehran does not have many options for trade, and Turkey and the UAE are two countries where Iranian traders have maintained their activities.
“Iran’s exports to the UAE were $4.5 billion and our imports from this country were $8.9 billion, in other words, the volume of trade between the two countries is $13.4 billion.”
He then pointed to the major imported and exported goods between both countries, saying that till last year, petrochemical and mineral materials as well as industrial products and machinery have been the major exports to the UAE.
The chairman also noted that Iranian agro products are highly important exports for traders.
Farzanegan also pointed out that there is currently no problem regarding forex shops in the UAE and money transactions are done much faster than other countries in the Persian Gulf, including Oman.
He noted that the UAE is not the only vital vein for money arriving into the country but the country is definitely a gateway for it. He explained that all re-exports and re-imports are done through the UAE because it is a regional hub for imports and exports.
Acwa, EIG Announce Strategic Partnership to Invest in US Power Infrastructurehttps://english.aawsat.com/business/5335045-acwa-eig-announce-strategic-partnership-invest-us-power-infrastructure
Acwa, EIG Announce Strategic Partnership to Invest in US Power Infrastructure
Dr. Samir J. Serhan, Chief Executive Officer of Acwa (left), and R. Blair Thomas, Chief Executive Officer of EIG (right)
Saudi Arabia’s Acwa and EIG said Thursday they have entered into definitive agreements to establish Plenum Power, a strategic partnership focused on investment opportunities in the United States.
The parties intend for Plenum Power to target a launch with an initial equity commitment of approximately $4 billion.
“The partnership combines Acwa's global capabilities in developing, financing, constructing, and operating large-scale infrastructure across conventional and renewable power generation and energy storage, with a track record of delivering projects at scale, driving competitive energy costs and maintaining strong operational performance, alongside EIG's experience in sourcing, establishing, financing and scaling energy infrastructure platforms,” the two companies said.
In a statement to Tadawul, Acwa said the agreement sets out the partnership framework, under which it will hold a 49% stake and EIG will own 51%.
Plenum Power is being launched at a time when rising electricity demand, driven by electrification and the rapid expansion of AI data centers, is expected to create significant investment opportunities across the US power sector.
EIG and Acwa believe that meeting this demand affordably and reliably will require new generation capacity, energy storage and investment in existing infrastructure, and that these conditions create opportunities to jointly pursue acquisitions, develop new capacity and support the next phase of growth in US power infrastructure.
“The US power industry is at an inflection point, with demand accelerating as AI, data centers and electrification reshape the market. At the same time, recent dislocation in renewable energy development caused by regulatory changes, supply chain inflation and interest rates in the US creates an attractive entry point for a new entrant at scale in our view,” said R. Blair Thomas, Chief Executive Officer of EIG.
“We believe those dynamics will drive consolidation across the industry and that Acwa's global operating capabilities, combined with EIG's investment, financing and platform-building experience, position Plenum Power well in this evolving market environment. We’re also fortunate to have a deep relationship with Acwa and KSA to build upon as we pursue this new initiative.”
Chief Executive Officer of Acwa Dr. Samir J. Serhan said in the joint statement that the US “represents a significant opportunity for Acwa to bring its global expertise in developing, financing, and operating large-scale power infrastructure to one of the world’s most dynamic energy markets.”
“As electricity demand accelerates, meeting that growth is expected to require substantial investment, reliable generation capacity, and the ability to deliver projects efficiently and at scale.”
“Our partnership with EIG combines complementary strengths in infrastructure investment, development, and operations, creating a strong foundation to pursue opportunities across conventional and renewable power generation and energy storage” he added.
According to Serhan, “this marks an important step in expanding Acwa’s international footprint and supporting the development of resilient, competitive energy infrastructure in the United States.”
As for EIG President Andrew Ellenbogen, he said that the company’s strategic investments business is built around high-conviction theses in sectors undergoing structural change.
“Plenum Power builds on a platform-creation playbook EIG has applied across prior strategic initiatives in oil & gas, LNG and battery storage, combining EIG’s investment origination, capital formation and M&A capabilities with Acwa’s global development and operating expertise. Together, we seek to create a scaled US power platform that can grow through acquisitions and the development of new capacity,” the statement quoted him as saying.
For EIG, the partnership represents an extension of its strategy in US power generation. EIG has committed more than $14.2 billion across power generation, renewable energy, energy storage and related energy-transition infrastructure globally, experience that informs the firm’s approach to building and scaling energy businesses.
With a global portfolio of 111 assets across 16 countries, representing $127 billion in assets under management, Acwa brings extensive capabilities spanning development, investment, financing, construction, operations, and asset optimization. The partnership will draw on these capabilities as it evaluates acquisition and development opportunities in the United States.
King Salman Automotive Cluster Targets Localized Manufacturing and Greater Sector Contributionhttps://english.aawsat.com/business/5335015-king-salman-automotive-cluster-targets-localized-manufacturing-and-greater-sector
King Salman Automotive Cluster Targets Localized Manufacturing and Greater Sector Contribution
A Saudi Ceer car (Reuters)
In King Abdullah Economic City (KAEC) on Saudi Arabia's Red Sea coast, a new industrial hub is taking shape with the goal of moving the Kingdom's automotive sector beyond simply attracting global manufacturers toward building an integrated ecosystem encompassing vehicle production, component manufacturing, logistics services, and workforce development.
The King Salman Automotive Cluster brings together domestic and international companies, including Ceer, Lucid, and Hyundai Middle East Engine Manufacturing, alongside projects aimed at localizing the production of automotive components and establishing specialized training facilities.
The cluster is designed to support economic diversification and deepen local content, leveraging KAEC's industrial and logistics infrastructure and its proximity to King Abdullah Port.
According to data from KAEC, the cluster's ecosystem is expected to contribute more than SAR 92 billion ($24.5 billion) to Saudi Arabia's non-oil GDP by 2035. It is also projected to create direct and indirect employment opportunities and boost Saudi exports to regional and global markets.
The area designated for automotive manufacturing activities within KAEC's Special Economic Zone was officially named the King Salman Automotive Cluster in February 2025 under directives from Saudi Crown Prince and Prime Minister Prince Mohammed bin Salman.
The cluster is intended to serve as a hub for local and international companies operating in vehicle manufacturing and sustainable mobility solutions, with a focus on enhancing manufacturing capabilities, research and development, supply chain efficiency, and connectivity to regional and international markets.
Lucid Motors factory in King Salman Automotive Cluster (Company Media Center)
From Vehicle Assembly to a Local Value Chain
Majed Abdullah Matbouly, Chief Operating Officer of King Abdullah Economic City, told Asharq Al-Awsat that the cluster represents a strategic pillar in Saudi Arabia's economic transformation by bringing together industrial investments, global expertise, and national capabilities within a single ecosystem.
He said the project's significance extends beyond attracting automakers to creating stronger links among vehicle manufacturers, component suppliers, and training institutions, thereby expanding local supply networks, facilitating knowledge transfer, and generating new partnership opportunities for the private sector.
Matbouly added that the presence of global manufacturers alongside Saudi brands fosters the accumulation of industrial expertise and the development of local talent, enabling Saudi Arabia to capitalize on global transformations in the automotive industry and advance the goals of Vision 2030 related to economic diversification and non-oil sector development.
This vision is supported by KAEC's integrated industrial and logistics infrastructure, which includes the Industrial Valley, the Special Economic Zone, and direct access to King Abdullah Port, providing manufacturers and suppliers with efficient gateways to domestic and international markets.
The cluster's development aligns with the Public Investment Fund's (PIF) strategy to expand investments in the automotive and transportation sectors through partnerships with private industry and through joint ventures with international manufacturers.
The project also supports the goals of the National Industrial Development and Logistics Program (NIDLP) as well as Saudi Arabia's national industrial, transport, and logistics strategies.
Ceer and Lucid Lead Vehicle Production
Ceer, Saudi Arabia's first electric vehicle brand, is among the flagship projects within the cluster. The company was established through a partnership between the Public Investment Fund and Foxconn, utilizing technologies and components licensed from BMW.
In 2024, Ceer awarded contracts for the construction of its manufacturing complex in KAEC and plans to produce seven vehicle models across sedan and SUV categories by 2030.
Majed Abdullah Matbouly, Chief Operating Officer of King Abdullah Economic City (Asharq Al-Awsat)
The company is part of a broader effort to build domestic capabilities in electric vehicle manufacturing and develop a localized ecosystem encompassing production, suppliers, and related services.
Similarly, KAEC hosts Lucid Motors' first factory outside the United States, which opened in September 2023. The facility produced the first vehicle bearing the label "Made in Saudi Arabia," while the company is developing a second production facility aimed at manufacturing fully built vehicles by 2027.
Together, these projects form part of Saudi Arabia's efforts to establish domestic production capacity while facilitating the localization of expertise and technologies associated with electric vehicle manufacturing.
A Saudi Ceer car (Reuters)
Hyundai Joins the Regional Manufacturing Ecosystem
The cluster also includes the Hyundai Middle East Engine Manufacturing project. Construction began in May 2025 as part of Hyundai's plans to establish a regional industrial base.
The company plans to recruit and train Saudi talent throughout 2026, linking manufacturing expansion with workforce development. The project is expected to create thousands of jobs while transferring manufacturing expertise and technology to Saudi workers.
Additional initiatives include an agreement between the Public Investment Fund and Pirelli to establish a tire manufacturing plant in Saudi Arabia, supporting diversification within the automotive sector and strengthening local component production capabilities.
These projects broaden the industrial base beyond vehicle assembly, fostering a network of local suppliers capable of serving manufacturers and increasing participation in global supply chains.
73% of Masarat Industrial Land Leased
On the supply-chain front, the Masarat Mobility Park is a key initiative designed to attract automotive suppliers, mobility companies, and related service providers.
Project data show that 73 percent of its industrial land has already been leased, while infrastructure design and development of planned ready-built facilities continue.
Six factories for Tier-1 global automotive suppliers are being developed within the park. Five are located within the Tasaru supplier accelerator center, operated by Tasaru Mobility Investments, while the sixth is FPI Gulf, a joint venture between Thailand's FPI Company and Saudi Arabia's Fuel Autoparts.
Once operational, these facilities are expected to manufacture and distribute automotive components to local and international manufacturers, expanding domestic production capacity and creating additional partnership opportunities between international investors and Saudi firms.
Supplier development is considered essential for building an integrated industrial ecosystem. Locating suppliers close to vehicle production facilities reduces logistical distances, strengthens domestic manufacturing capabilities, and increases Saudi firms' participation in global value chains.
Lucid Air Grand Touring electric car displayed at the New York International Auto Show (Reuters)
Training to Meet Industry Demand
The cluster's development extends beyond infrastructure and investment to workforce preparation.
The National Automotive and Vehicles Academy (NAVA), established in 2024, is tasked with training technicians to support the sector's growth. According to project data, the academy has trained more than 1,200 technicians and delivered over 90,000 training days during its first two years.
The initiative seeks to equip the industry with the technical skills it requires while promoting knowledge transfer and the localization of industrial capabilities, particularly in electric vehicles and advanced manufacturing technologies.
Investment in training is being pursued in parallel with efforts to attract manufacturers and suppliers, ensuring that production expansion is matched by the availability of skilled personnel capable of operating, improving, and enhancing the competitiveness of manufacturing facilities.
Port and Logistics Infrastructure Support Expansion
The growth of the King Salman Automotive Cluster is closely tied to KAEC's broader advantages, including industrial infrastructure, logistics services, residential communities, educational institutions, and support services.
Matbouly noted that the city's position on the Red Sea and its direct connection to King Abdullah Port give manufacturers efficient access to regional and global markets. The availability of integrated services also helps attract suppliers and specialized service providers.
KAEC additionally benefits from its proximity to Jeddah, Makkah, and Madinah, as well as connections to major highway networks, the Haramain High-Speed Railway, and King Abdulaziz International Airport, all of which facilitate the movement of people, goods, and skilled workers.
As vehicle and component manufacturing projects advance, supplier networks expand, and technical training programs mature, the cluster's ability to deliver lasting economic impact will depend on how effectively these elements are integrated into a sustainable domestic production ecosystem.
Expanding the supplier base and strengthening Saudi talent remain key factors in increasing local content and cementing the Kingdom's position within the global automotive value chain.
Gold Slips as Markets Assess Fed Signals, Await US Inflation Datahttps://english.aawsat.com/business/5335011-gold-slips-markets-assess-fed-signals-await-us-inflation-data
Gold Slips as Markets Assess Fed Signals, Await US Inflation Data
A salesman presents gold bars at a jewellery shop inside the Gold Market at the Old Souk in Dubai EPA
Gold prices fell on Thursday as investors assessed signals from the Federal Reserve and Chair Kevin Warsh after policymakers left interest rates unchanged, while awaiting key US inflation data later in the day for further clues on the rate outlook.
Spot gold slid 0.7% to $4,037.98 per ounce by 0410 GMT, while US gold futures for December delivery steadied at $4,049.80.
"Today's fall is purely because of persistent Middle East uncertainty and markets positioning ahead of today's inflation data," said Ajay Kedia, director at Mumbai-based Kedia Commodities.
The Fed held rates steady on Wednesday, in the 3.75%-4.00% range, as expected, opting to delay any changes to borrowing costs until after next week's US midterm elections while it awaits further data on inflation.
Traders are now pricing in about a 78% chance of a rate hike in December, compared with 84% before the announcement, according to the CME's FedWatch Tool.
Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.
Markets are awaiting the Personal Consumption Expenditures data due at 1230 GMT, a key gauge closely watched by the Fed as it targets a 2% inflation rate.
Global commodity prices are set to surge 23% in 2026, the World Bank said on Wednesday, citing rising energy prices and disruptions to cargo shipping during the Middle East war, grain shipment problems in the Black Sea and high demand for safe-haven assets such as gold.
Elsewhere, China's net gold imports via Hong Kong in September rose more than 28% from August to a five-month high, Hong Kong Census and Statistics Department data showed on Wednesday.
On the geopolitical front, US Vice President JD Vance sent a letter to Iranian Security Council chief Mohsen Rezaei in a bid to revive peace negotiations, the Wall Street Journal reported on Wednesday.
Among other metals, spot silver fell 1.5% to $53.15 per ounce, platinum dropped 1.5% to $1,515.70 and palladium slid 0.6% to $1,004.25.
لم تشترك بعد
انشئ حساباً خاصاً بك لتحصل على أخبار مخصصة لك ولتتمتع بخاصية حفظ المقالات وتتلقى نشراتنا البريدية المتنوعة
