PIF: Forging Partnerships Places Saudi Arabia at Forefront of Developing Promising Sectors, Emerging Industries

The head of international investments division at the Saudi Public Investment Fund (PIF), Turqi Al-Nowaiser. (Photo Credit: Mosaed Al-Zayani)
The head of international investments division at the Saudi Public Investment Fund (PIF), Turqi Al-Nowaiser. (Photo Credit: Mosaed Al-Zayani)
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PIF: Forging Partnerships Places Saudi Arabia at Forefront of Developing Promising Sectors, Emerging Industries

The head of international investments division at the Saudi Public Investment Fund (PIF), Turqi Al-Nowaiser. (Photo Credit: Mosaed Al-Zayani)
The head of international investments division at the Saudi Public Investment Fund (PIF), Turqi Al-Nowaiser. (Photo Credit: Mosaed Al-Zayani)

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has developed a strategy for expanding international assets that is centered around investing in some of the world’s most innovative companies.

This has contributed to building partnerships that will ensure placing the kingdom at the forefront of developing promising sectors and emerging industries in a way that supports the national transformation plan “Vision 2030” and the country’s efforts to diversify its economy.

PIF’s Head of International Investments Division Turqi Al-Nowaiser said that the fund is strategically increasing the scope of its international investments across several innovative areas that are increasingly in global demand.

According to Al-Nowaiser, this will enrich the global portfolio of the fund, taking into account future global trends in investment, such as sustainable investment, technology, and innovation.

PIF currently has six investment pools, two of which are specialized for international investments.

Noting that PIF is seeking to expand its international assets, Al-Nowaiser confirmed that the fund is diversifying its investments and seizing available investment opportunities.

In the following interview with Asharq Al-Awsat, Al-Nowaiser discusses PIF’s global direction, the importance of localizing technology and knowledge, and the fund’s endeavors to seize opportunities that help achieve its objectives.

Saudi Arabia’s Crown Prince Mohammed bin Salman has launched PIF’s strategy as an engine for strategic and sustainable efforts to diversify the kingdom’s economy in line with the goals of “Vision 2030.” How will this be reflected in achieving economic diversification in Saudi Arabia?

Certainly, “Vision 2030” was based on unleashing the capabilities of promising non-oil sectors, and in this aspect, PIF was able to be an effective tool for enhancing the kingdom’s efforts for diversifying sources of revenue.

PIF’s achievements have helped realize financial sustainability, promote the growth of non-oil GDP, increase local content, empower the private sector, improve the quality of life in the kingdom, establish Saudi Arabia’s position as a global leader, and shape the future through innovation, seizing opportunities, and maximizing investments.

This aims to preserve the heritage of Saudi Arabia, achieve prosperity, and build a bright future for generations to come. As for performance, the fund was able to raise assets under management to about SR 1.5 trillion ($ 400 billion) by the end of 2020. It is seeking to further expand its assets, launch new sectors, build strategic partnerships, and localize technology and knowledge.

The fund seeks to grow its assets to SR4 trillion ($1.06 trillion) by the end of 2025, becoming one of the largest sovereign wealth funds in the world and a preferred investment partner. This will also establish the kingdom’s position in shaping the future of the global economy.

What objectives are set by the fund’s new strategy over the course of the next five years with respect to its two international investment pools?

At PIF, we are implementing an ambitious strategy that supports development and economic transformation efforts in Saudi Arabia over the next five years.

The fund has six main investment pools, two of which -- the “International Strategic Investments” and the “International Diversified Pool​ ”-- are dedicated to global investment.

It has already invested in a number of the most important innovative companies in the world and has built partnerships that will ensure that the kingdom is at the forefront of developing promising sectors and emerging industries, in a way that supports the country's efforts to diversify the economy in line with Vision 2030.

The fund continues to expand its international investments strategically across many innovative areas that are witnessing growth and an increase in global demand. This enriches the global portfolio of the fund while factoring in future global trends in investment that include sustainable investment, technology, innovation, and others.

More so, PIF seeks to continue earmarking capital for investments in international public and private markets. This will build the fund’s strategic partnerships, reduce risks, and achieve both long-term returns and diversification.

During the last period, the fund succeeded in building extensive relationships with various global investors, asset managers, investment banks, and international brokerage companies, becoming one of the largest investment entities in the world.

While maintaining a steady growth in assets and investments locally, the fund was able to consolidate its position internationally by increasing the volume of its global investments to more than 25% of total assets under management, compared to 5% in 2017.

Also, PIF expanded the geographic scope of its investments, reaching US, European, Asian, and other markets.

The fund has also successfully invested in various asset classes that include direct and indirect investments in public and private markets and stocks, fixed income, real estate, infrastructure, etc...

It also managed to diversify its investments in various sectors that encompass health, technology, real estate, infrastructure, consumer services, transportation, and others.

PIF’s international investments, during the coronavirus pandemic, adopted a strategy based on three axes that include: seizing opportunities, strategic investment, and emergency financing. Was this strategy able to achieve its target, and how?

Even though PIF has a long-term strategy for its investments, this does not prevent it from seizing short-term opportunities whenever they arise. For example, in 2020, the fund executed many deals in global public markets that were hit by the coronavirus pandemic and were witnessing a sharp drop in rates.

The fund seized investment opportunities in American, European, and Asian companies and made high profit. During the crisis, investment was concentrated in companies and exchange-traded funds (ETFs) in various sectors, such as pharmaceuticals, infrastructure, industries, and technology.

Saudi Arabia hopes to localize knowledge and technology and develop vital and promising sectors as part of “Vision 2030.” What is the role of international investments in this aspect, and how do they contribute to reaching these goals?

PIF seeks to help in localizing technology and knowledge through its international partnerships. Undoubtedly, this will support the kingdom's ability to assume a competitive global position.

Therefore, PIF aims to build long-term strategic international partnerships that realize its investment objectives, provide added value to transferring technologies and localizing knowledge, and increase the contribution of local content in the fund’s investments to 60% of the volume of spending by 2025.

PIF’s strategic global investment portfolio has contributed to the development of its direct and indirect assets in emerging companies and future industries. It also helped strengthen and build the fund’s relationships with innovative companies, influential investors, international counterparts, and investment managers.

Transferring capabilities and skills through strategic partnerships can be sampled through PIF’s experience exchange agreements with a number of leading international companies such as SoftBank.

PIF also worked with Lucid Motors to develop and manufacture electric vehicle technologies and build up training programs that have benefited many Saudi graduates. This will also help grow the kingdom’s electric car industry in the future.

PIF has quality investments in innovative and pioneering companies all over the world. Don't you think such companies, especially those dependent on future industries and sectors yet to be established, have a higher risk?

In general, the fund looks for suitable investment opportunities that achieve the best financial returns.

There is no doubt that the fund's investments in emerging companies and future industries are advancing the transfer of international expertise to Saudi Arabia and helping the kingdom grow its local competencies in cutting-edge technology.

It goes without saying that the diversification of the fund’s investment portfolio helps in balancing risks and returns. PIF follows a flexible and adaptive approach to ensure its success. It also persistently evaluates its assets in global markets in order to achieve the highest returns. This is the basis for the fund’s investment activities.

The technology sector is witnessing rapid growth. Humanity’s increased reliance on technology during the coronavirus pandemic has triggered a qualitative leap in the sector. What plans exist to enhance PIF’s global investments in this sector, especially in light of the fund’s efforts to become the largest technology investor over the next decade?

The fund has worked to develop strategic partnerships in the technology sector, which is intertwined with all future industries, through its international investment portfolios.

It also established a fund specialized in technology called the “SoftBank Vision Fund.” Considered one of the world’s largest investments in technology, the SoftBank Vision Fund is expected to receive up to $45 billion from PIF, making the kingdom one of the largest investors in global technology.

PIF’s international investments in the technology sector also include Uber, in which the fund has invested $ 3.5 billion. It also invested in Lucid Motors in 2018. In December 2020, Lucid Motors, partly-owned by PIF, completed the first phase of construction of its factory in Casa Grande, Arizona.

The fund also invested in India’s leading telecom operator, Jio Platforms.

In light of ongoing changes worldwide, what new directions are PIF’s investments taking in terms of sectors and markets?

The fund seeks to diversify its international portfolio by strategically increasing the scope of its international investments across several innovative areas, which are showing growth and seeing an increase in global demand.

Major trends that can enrich PIF’s global investment portfolio encompass demographic changes influenced by the increase in the size of the middle class in emerging markets, the increase in life expectancy, the increase in population, and changes in consumer habits.

Another direction includes sustainable investments that tackle climate change, reducing carbon emissions, scarcity of materials, issues of waste and pollution, urbanization, and new means of transportation.

This stems from the emergence of large cities and the need to develop infrastructure and new means of mobility.

PIF’s investments also attend to digital transformation, the global supply chain, interconnected computing systems, the sharing economy, technology, and innovations in big data, analytics, robotics, automation, and business models.

How do you evaluate the performance of the fund’s international investments that have a strategic dimension, such as those made in “SoftBank”, “Jio Platforms”, “Lucid Motors” and “Uber”, and what added value did these companies offer PIF?

PIF’s global investments, both direct and indirect, have proven very successful.

For example, we invested in the SoftBank Vision Fund, one of the largest technological investments that contribute to developing promising sectors in Saudi Arabia.

By the end of Q3 2020, investments of the SoftBank Vision Fund amounted to $83.5 billion, making approximately $9.6 billion in returns. There were 92 investments in many sectors.

More so, 10 of the SoftBank Vision Fund companies were listed for IPOs at the end of Q3 of 2020.

International assets and infrastructure development are considered some of the most attractive sectors for capital. Is there a plan for PIF’s international investments entering these vital sectors, especially in light of what they offer in terms of long-term sustainability?

There are many existing international partnerships spanning several fields, and they include investment in the field of infrastructure. One example is PIF investing $20 billion with US private equity firm Blackstone for infrastructure development in the US.

Also, PIF and the Russian Direct Investment Fund (RDIF) have inked a series of investment agreements worth approximately $10 billion, covering projects in infrastructure, manufacturing, logistics, and retail trade.

What are the criteria used for PIF’s international investment portfolios?

We implement many standards when making international investments, perhaps the most important of which is thoroughly assessing risks, the size of the investment, timing, returns, and added value for serving the fund’s strategic objectives, such as contributing to the transfer and localization of technology.

We also aim to ensure the diversification of the fund’s investment portfolio and maintain compatibility between investments in terms of the level of risks involved and the rate of projected returns.

PIF upholds the best international practices at every stage of the investment and has worked to develop a governance model for both itself and its subsidiaries.

What is the targeted annual growth rate for the fund’s international portfolios?

PIF has launched its five-year strategy for 2021-2025, which is committed to diversifying its local and international assets.

The fund's assets will range between 75%- 80% locally and 20% - 25% internationally. PIF seeks to build and develop strategic partnerships, make effective long-term investments, maximize sustainable returns, and consolidate its position as a preferred global investment partner.

This will contribute to supporting economic development and diversification in Saudi Arabia.

What are the challenges facing international investments in the coming period?

Without a doubt, the world is constantly facing events that may lead to fluctuations in global markets. This poses challenges and creates opportunities at the same time.

Recently, global economies have suffered from the coronavirus pandemic in 2020, highlighting the urgent need for future technology, such as artificial intelligence and others. PIF, through its international investments, always aims to seize opportunities that contribute to achieving its goals.



World Bank Group to Provide Egypt with $6 Bln over Three Years

People buy fruits and vegetables at a local market in Cairo, Egypt, 12 March 2024. (EPA)
People buy fruits and vegetables at a local market in Cairo, Egypt, 12 March 2024. (EPA)
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World Bank Group to Provide Egypt with $6 Bln over Three Years

People buy fruits and vegetables at a local market in Cairo, Egypt, 12 March 2024. (EPA)
People buy fruits and vegetables at a local market in Cairo, Egypt, 12 March 2024. (EPA)

The World Bank Group said on Monday it intends to provide more than $6 billion of support over the coming three years to Egypt, which has been struggling with a foreign currency crunch and gaping budget and balance of payments deficits.

The World Bank Group said $3 billion will go towards government programs and $3 billion to the private sector, all subject to the group's board approval.

The announcement follows Egypt's signing on March 6 of a loan agreement with the International Monetary Fund that expanded IMF support to Egypt by $5 billion and by an announcement on Sunday of $8.1 billion euros in financing from the European Union.

Egypt's central bank on March 6 let the pound plummet and said it would allow the currency to trade freely. The currency had been fixed against the dollar for 12 months.

Some $3 billion of the World Bank financing will be distributed to the government and its programs over three years, with the first $1 billion expected to arrive by the end of June, Egypt country director Stephane Guimbert told Reuters.

"Some significant part of that will go to budget support. and then we have a range of programs on climate, on SMEs (small and medium-sized enterprises), etc.," Guimbert said.

Another $3 billion will be directed through the World Bank Group's private sector arm, the International Finance Corporation (IFC), including through equity and loans, and will be made up partly by funds mobilized from other investors.

The financing is still subject to the group's board approval, which is expected before the end of June, Guimbert said. "And then we’ll disburse as soon as we can after that."

The World Bank program will focus in part on helping state-owned enterprises "that are not sold, that remain within government control, and the way they are managed, including levelling the playing field with the private sector", he said.

The World Bank funds will also help finance Egypt's social protection project, Takafol and Karama, as well as water and agriculture programs.

Egypt has been selling assets to boost the private sector and raise scarce hard currency, setting a target in 2022 to raise $10 billion annually over four years through private investment in state assets.

Egypt last month raised $35 billion by selling the development rights of the Ras al-Hikma peninsula on the Mediterranean coast to the Emirati sovereign wealth fund ADQ.

The World Bank Group said its current operational portfolio in Egypt is more than $8 billion, comprising $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the IFC and $0.5 billion from the Multilateral Investment Guarantee Agency.


IAEA to Help Iraq Develop Peaceful Nuclear Program, Agency Head Says 

Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi attends a press briefing at the Foreign Press Center in Tokyo, Japan, 14 March 2024, after inspecting decommissioning work and the releasing of treated radioactive water at Tokyo Electric Power Company (TEPCO)'s Fukushima Daiichi Nuclear Power Plant in Okuma, Fukushima Prefecture. (EPA)
Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi attends a press briefing at the Foreign Press Center in Tokyo, Japan, 14 March 2024, after inspecting decommissioning work and the releasing of treated radioactive water at Tokyo Electric Power Company (TEPCO)'s Fukushima Daiichi Nuclear Power Plant in Okuma, Fukushima Prefecture. (EPA)
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IAEA to Help Iraq Develop Peaceful Nuclear Program, Agency Head Says 

Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi attends a press briefing at the Foreign Press Center in Tokyo, Japan, 14 March 2024, after inspecting decommissioning work and the releasing of treated radioactive water at Tokyo Electric Power Company (TEPCO)'s Fukushima Daiichi Nuclear Power Plant in Okuma, Fukushima Prefecture. (EPA)
Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi attends a press briefing at the Foreign Press Center in Tokyo, Japan, 14 March 2024, after inspecting decommissioning work and the releasing of treated radioactive water at Tokyo Electric Power Company (TEPCO)'s Fukushima Daiichi Nuclear Power Plant in Okuma, Fukushima Prefecture. (EPA)

The head of the International Atomic Energy Agency Rafael Grossi met Iraq's prime minister in Baghdad on Monday as part of a visit to help the country develop a peaceful nuclear program.

"We have discussed several projects in Iraq, including building a nuclear reactor for peaceful purposes," Iraqi Education Minister Naim al-Aboudi told reporters following a meeting between Grossi and Iraqi Prime Minister Mohammed Shia al-Sudani.

Grossi said that a team of Iraqi experts would visit the agency's headquarters in Vienna in a few days to hold meetings to "set out a road map for the Iraqi peaceful nuclear program" amid growing interest in nuclear energy in the region.

"We see that in the (United Arab) Emirates, we see that in Egypt ... and of course we should see it here in Iraq," Grossi told reporters.

Iraq in the past had three nuclear reactors in Tuwaitha, its main nuclear research site, south of Baghdad. One was destroyed by an Israeli air raid in 1981 and the two others by US warplanes in the 1991 Gulf war that followed Iraq's 1990 invasion of Kuwait.

"Definitely, turning the page on this complex past is of the essence and we're doing just that," Grossi said.


Palestinian Unemployment Rate Seen Spiking to Over 50% Amid Gaza Conflict, ILO Says 

People walk in Gaza, amid the ongoing conflict between Israel and the Palestinian group Hamas, as seen from Israel, March 17, 2024. (Reuters)
People walk in Gaza, amid the ongoing conflict between Israel and the Palestinian group Hamas, as seen from Israel, March 17, 2024. (Reuters)
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Palestinian Unemployment Rate Seen Spiking to Over 50% Amid Gaza Conflict, ILO Says 

People walk in Gaza, amid the ongoing conflict between Israel and the Palestinian group Hamas, as seen from Israel, March 17, 2024. (Reuters)
People walk in Gaza, amid the ongoing conflict between Israel and the Palestinian group Hamas, as seen from Israel, March 17, 2024. (Reuters)

The Israel-Palestinian conflict is seen pushing the rate of Palestinian unemployment in the occupied West Bank and Gaza to above 50%, the International Labour Organization said on Monday.

Already more than half a million jobs have been lost since Oct. 7 2023, when Israel began a retaliatory military campaign in Gaza after Hamas militants launched deadly cross-border attacks, the new report showed. If the conflict continues until end-March then the unemployment rate will soar to 57%, it said.

ILO Regional Director for Arab States Ruba Jaradat said that the destruction of infrastructure and schools, hospitals and business in Gaza had "decimated entire economic sectors and paralyzed labor market activity, with untold repercussions on the lives and livelihoods of Palestinians for generations to come."

In Gaza, some 200,000 jobs have been lost, accounting for about two-thirds of total employment in the enclave.

In the West Bank, the report described "near lockdown" conditions with more than 650 permanent and temporary checkpoints across the territory having significant negative effects on the economy. More than 300,000 jobs, or about a third of total employment, have already been lost there, it said.


Economic Growth Boosts Role of Finance Companies in Saudi Arabia

The personal financing category topped the list with a significant increase of 666% (Asharq Al-Awsat)
The personal financing category topped the list with a significant increase of 666% (Asharq Al-Awsat)
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Economic Growth Boosts Role of Finance Companies in Saudi Arabia

The personal financing category topped the list with a significant increase of 666% (Asharq Al-Awsat)
The personal financing category topped the list with a significant increase of 666% (Asharq Al-Awsat)

Saudi Arabia's efforts to boost its economy and encourage local investments have led to a significant rise in loans provided by finance companies, reaching the highest levels in almost four years.

These loans increased by 73% to SAR 84.9 billion ($22.6 billion) by the end of 2023, compared to SAR 49.3 billion ($13.1 billion) in 2019.

Real estate financing took the largest share at 28%, while personal financing saw a massive increase of over 666%.

Finance companies, different from banks, specialize in providing loans and credit services to individuals and businesses. They aim to finance purchase and sale transactions for goods and services, often charging higher interest rates than banks to make profits.

These companies play a crucial role in providing financial solutions to individuals and businesses facing money problems.

By the end of 2023, Saudi Arabia had 59 licensed finance companies, with total assets of SAR65.5 billion, up by 68% from 2019.

According to data from the Central Bank of Saudi Arabia (SAMA), the capital of these companies increased by 25% to 15.4 billion Saudi riyals during the same period.

Mohammed Al-Faraj, Chief Asset Management Officer at Arbah Capital, explained to Asharq Al-Awsat that the lending surge was driven by Saudi Arabia’s strong economic growth, leading to increased demand for financing from individuals and businesses.

Loans from finance companies have positively impacted the economy by increasing investment, creating jobs, and boosting consumption, added Al-Faraj.

The finance sector enjoys high liquidity, with non-performing loans accounting for only 5% of total loans by the end of 2023.

Al-Faraj expected this trend to continue due to robust economic growth.

He also anticipated continued growth in the finance sector, with net income reaching SAR 1.6 billion by the end of 2023, up by 20% from 2019. Additionally, he predicted increased competition as finance companies expand their services and new players enter the market.

Ibrahim Al-Nwaibet, CEO of KASB Capital, pointed to the Kingdom’s real estate financing developments as the reason for the increase.

Residential financing hit SAR23.1 billion by 2023-end, making up 28% of total financing. However, he foresaw real estate finance companies moving away from the sector toward corporate and other activities.

At the start of this year, the National Housing Company, part of the Ministry of Municipal and Rural Affairs and Housing, announced a reduced financing margin for residential projects in suburbs and urban areas.

This move, in collaboration with four local banks, aimed to benefit the first 10,000 sales contracts without setting salary limits.


Oil Mergers, Clean Fuels Vie for Attention at Houston Energy Conference

FILE PHOTO: Mike Wirth, the CEO of Chevron Corporation, speaks with Daniel Yergin, the vice chairman of S&P Global, as top energy executives and officials from around the world gather during the CERAWeek 2023 by S&P Global, energy conference in Houston, Texas, US, March 6, 2023. REUTERS/Callaghan O'Hare/File Photo
FILE PHOTO: Mike Wirth, the CEO of Chevron Corporation, speaks with Daniel Yergin, the vice chairman of S&P Global, as top energy executives and officials from around the world gather during the CERAWeek 2023 by S&P Global, energy conference in Houston, Texas, US, March 6, 2023. REUTERS/Callaghan O'Hare/File Photo
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Oil Mergers, Clean Fuels Vie for Attention at Houston Energy Conference

FILE PHOTO: Mike Wirth, the CEO of Chevron Corporation, speaks with Daniel Yergin, the vice chairman of S&P Global, as top energy executives and officials from around the world gather during the CERAWeek 2023 by S&P Global, energy conference in Houston, Texas, US, March 6, 2023. REUTERS/Callaghan O'Hare/File Photo
FILE PHOTO: Mike Wirth, the CEO of Chevron Corporation, speaks with Daniel Yergin, the vice chairman of S&P Global, as top energy executives and officials from around the world gather during the CERAWeek 2023 by S&P Global, energy conference in Houston, Texas, US, March 6, 2023. REUTERS/Callaghan O'Hare/File Photo

Top oil executives and ministers descend on Houston this week for one of the world's biggest energy conferences emboldened by blockbuster mergers, stable oil prices and less pressure for a large scale move to clean fuels.

Global oil prices have remained in a range between $75 and $85 per barrel, a level fueling profits but not hurting economic growth, despite war in Eastern Europe and turmoil in the Middle East. Stock markets continue to spur deals, making Big Oil even bigger.
The annual CERAWeek conference comes as demand for oil and gas continues to rise alongside solar, wind and biofuels. Energy markets have accommodated a reordering of global flows as customers turn more to regional energy suppliers or live with longer seaborne supply chains.
"A remarkable thing is the (price) stability, given the geopolitical turmoil," said Daniel Yergin, vice chairman of conference organizer S&P Global and a Pulitzer Prize-winning author on global energy.
Unlike past conferences where conversations were dominated by market-share battles between USshale oil producers and the Organization of the Petroleum Exporting Countries, talk of price wars have been supplanted by energy security issues, Yergin said, according to Reuters.
"When demand was down and prices were down, it was very easy to see a way towards energy transition, but with Russia/Ukraine (war) and price shocks, energy security is back on the table," Yergin added.
More than 7,200 people are expected to hear the latest outlook on energy markets from the heads of top producers.
Global liquefied natural gas (LNG) developments and US climate policies will be a major topic in separate sessions by big exporters Cheniere Energy and Venture Global LNG, while US Energy Secretary Jennifer Granholm and White House adviser John Podesta press the administration's climate goals.
While oil prices are strong, natural gas has been overwhelmed by a production glut. But "this year will be a transition year to a much more bullish gas and power market next year," said Vikas Dwivedi, an energy strategist at financial firm Macquarie Group.

Climate concerns are reflected in the conference sessions on carbon sequestration technology and hydrogen fuels, which have become two of the oil industry's favorite means of addressing global warming. The role of artificial intelligence in energy production and carbon emissions are prominent sessions this year.


Gold Slips as Dollar Firms, Cenbank Meetings in Focus

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Slips as Dollar Firms, Cenbank Meetings in Focus

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices slipped on Monday as the dollar held firm and investors braced for a slew of policy decisions from major global central banks including the US Federal Reserve this week.
Spot gold was down 0.4% to $2,147.79 per ounce, as of 0534 GMT. US gold futures fell 0.5% to $2,150.40, Reuters reported.
"A fairly hawkish outcome from the Fed has been baked in... it shows a fairly strong consensus that there might only be one or two cuts this year," said Kyle Rodda, a financial market analyst at Capital.com.
The Fed is considered certain to keep rates at 5.25%-5.5% at the end of its two-day meeting on Wednesday. But there is a possibility that the Fed might signal a higher-for-longer outlook on policy given the stickiness of inflation at both a consumer and producer level.
Traders are now pricing in an about 56% chance of a rate cut in June. Higher interest rates reduce the appeal of holding non-yielding gold.
Last week, data showed that US consumer prices increased solidly in February and producer prices rose more than expected amid a surge in the cost of goods like gasoline and food.
"If we get a less hawkish outcome from the Fed, there's every reason that we will see a weaker dollar, lower yields, and that could just fuel a rally and provide some fundamental impetus and then you are looking at $2,200 levels," said Rodda.
The dollar held steady near a two-week high against its rivals, making gold more expensive for other currency holders.
Meanwhile, the Bank of Japan is expected to exit its ultra-dovish monetary policy at its two-day meeting ending on Tuesday. The Bank of England will hold its meeting on Thursday and is expected to stay put on rates.
Spot silver dipped 0.6% to $25.01, platinum fell 0.6% to $927.63 per ounce and palladium lost 0.6% to $1,071.01.


Ukraine's GDP up by 3.6% in January-February, Economy Minister Says

 People look at Kyiv's panorama from a park in central Kyiv on March 15, 2024, amid the Russian invasion of Ukraine. (AFP)
People look at Kyiv's panorama from a park in central Kyiv on March 15, 2024, amid the Russian invasion of Ukraine. (AFP)
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Ukraine's GDP up by 3.6% in January-February, Economy Minister Says

 People look at Kyiv's panorama from a park in central Kyiv on March 15, 2024, amid the Russian invasion of Ukraine. (AFP)
People look at Kyiv's panorama from a park in central Kyiv on March 15, 2024, amid the Russian invasion of Ukraine. (AFP)

Ukraine's gross domestic product rose 3.6% in the first two months of this year, and growth is expected to continue in the first quarter, the economy minister Yulia Svyrydenko said on Sunday.

"This was driven by several factors, including investment demand, favorable weather conditions for construction works, agricultural exports, (and) the operation of the Ukrainian sea corridor," Svyrydenko said on Facebook, citing preliminary data.

She said the expansion of production capacity in the mining industry and stability in the energy sector were additional factors.

"Thanks to the positive performance of key sectors of the economy, we expect sustainable growth for the entire first quarter," she added.

Ukraine's GDP rose 3.5% in January, having grown by 5% in 2023 after a 28.8% fall in the previous year.

Ukraine's economy was devastated by Russia's invasion in February 2022 as millions fled the war, cities and infrastructure were bombed, and logistics, supply chains and exports disrupted.


Standard and Poor’s Affirms Saudi Arabia 'A/A-1' Rating, Outlook Stable

A general view of Riyadh, Saudi Arabia. (SPA file photo)
A general view of Riyadh, Saudi Arabia. (SPA file photo)
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Standard and Poor’s Affirms Saudi Arabia 'A/A-1' Rating, Outlook Stable

A general view of Riyadh, Saudi Arabia. (SPA file photo)
A general view of Riyadh, Saudi Arabia. (SPA file photo)

Standard and Poor’s Global Ratings affirmed its “A/A-1” long- and short-term foreign and local currency unsolicited sovereign credit ratings on Saudi Arabia with a stable outlook.

“The stable outlook reflects that we expect the government's wide-ranging reforms will continue to underpin the development of the non-oil sector and support non-oil growth and fiscal receipts,” said S&P on Friday.

“This is balanced against the cyclicality of a still hydrocarbon-focused economy, and fiscal pressures tied to the country's transformation plan and expanding population.”

“Saudi Arabia has embarked on a significant, rapid economic and social transformation program under the Vision 2030. In the leadup to 2030, we expect to see an acceleration of investment projects that seek to establish new industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector,” it added.

“Over the long term, we anticipate that Vision 2030 projects will bear fruit by creating a more diversified economy and revenue base, jobs for a young population, and broader workforce participation,” it stressed.

Moreover, it noted: “Large hydrocarbon reserves and low cost of production provide Saudi Arabia some resilience to a global energy transition to low-carbon alternatives, especially in a future scenario where fossil fuel demand will largely be met by a smaller number of the most efficient producers.”


EU Pledges Billions of Euros for Egypt

File photo: Egyptian President Abdel Fattah Al-Sisi meets with European Commission President Ursula von der Leyen at the Ittihadiya presidential palace in Cairo, Egypt. (Reuters/File)
File photo: Egyptian President Abdel Fattah Al-Sisi meets with European Commission President Ursula von der Leyen at the Ittihadiya presidential palace in Cairo, Egypt. (Reuters/File)
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EU Pledges Billions of Euros for Egypt

File photo: Egyptian President Abdel Fattah Al-Sisi meets with European Commission President Ursula von der Leyen at the Ittihadiya presidential palace in Cairo, Egypt. (Reuters/File)
File photo: Egyptian President Abdel Fattah Al-Sisi meets with European Commission President Ursula von der Leyen at the Ittihadiya presidential palace in Cairo, Egypt. (Reuters/File)

The European Union announced a 7.4 billion euro ($8.1 billion) funding package and an upgraded relationship with Egypt on Sunday.

The agreement lifts the EU's relationship with Egypt to a "strategic partnership" and was unveiled as a delegation of leaders visited Cairo. It is designed to boost cooperation in areas including renewable energy, trade and security, while delivering grants, loans and other funding over the next three years to support Egypt's faltering economy.

The proposed funding includes 5 billion euros in concessional loans and 1.8 billion euros of investments, according to a summary published by the EU. Another 600 million euros would be provided in grants, including 200 million euros for managing migration.

Such deals were "the best way to address migratory flows", said Italian Prime Minister Giorgia Meloni, who travelled to Cairo alongside EU Commission President Ursula von der Leyen, the Greek, Austrian and Belgian prime ministers, and the Cypriot president.

Inflation is running close to record highs and many Egyptians say they struggle to get by. Over the past month, however, financial pressure has eased as Egypt struck a record deal for Emirati investment, expanded its program with the IMF, and sharply devalued its currency.

Diplomats say Egypt's strategic importance has been underscored by the war in Gaza, where Egypt is trying to mediate between Israel and Hamas and increase deliveries of humanitarian aid; and by the conflict in neighboring Sudan, which has created the world's biggest displacement crisis.

Speaking alongside Egyptian President Abdel Fattah al-Sisi, von der Leyen said it was critical to rapidly reach a Gaza ceasefire deal. Both leaders warned against an Israeli incursion into Rafah, where much of Gaza's population has been displaced.

Egypt says it has lined up a total of $20 billion in multilateral support after increasing its loan and economic reform program with the IMF.

Most of the EU funding is newly allocated and was drawn up in close cooperation with the IMF, with 1 billion euros of the "macro-financial" loan funding to be delivered this year, a senior EU official said.

The remaining 4 billion euros are subject to approval by the European parliament, the official added.

Egypt largely shut off irregular migration from its north coast in 2016, but more recently there has been a surge in Egyptians trying to cross to Europe via Libya, and the EU is already providing support aimed at reducing those flows.

In recent months, the Greek islands of Crete and Gavdos have seen a steep rise in migrant arrivals, mostly from Egypt, Bangladesh and Pakistan.

"We must prevent the opening of new migration routes and we will work very closely with Egypt to ensure that this will be achieved," said Greek Prime Minister Kyriakos Mitsotakis, adding that both countries would try to open up legal pathways on migration.


Nakheel to Merge with Meydan Under Dubai Holding

Dubai police officers pose for a photo before firing the canon outside Dubai Mall during the holy month of Ramadan, in Dubai, United Arab Emirates, March 15, 2024. REUTERS/Rula Rouhana
Dubai police officers pose for a photo before firing the canon outside Dubai Mall during the holy month of Ramadan, in Dubai, United Arab Emirates, March 15, 2024. REUTERS/Rula Rouhana
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Nakheel to Merge with Meydan Under Dubai Holding

Dubai police officers pose for a photo before firing the canon outside Dubai Mall during the holy month of Ramadan, in Dubai, United Arab Emirates, March 15, 2024. REUTERS/Rula Rouhana
Dubai police officers pose for a photo before firing the canon outside Dubai Mall during the holy month of Ramadan, in Dubai, United Arab Emirates, March 15, 2024. REUTERS/Rula Rouhana

Dubai real estate developers Nakheel and Meydan will merge and become part of Dubai Holding, UAE's WAM state news agency reported on Saturday.

Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum directed the two to merge under Dubai Holding under the leadership of Sheikh Ahmed bin Saeed Al Maktoum.

The Board of Directors of both Nakheel and Meydan will be abolished.

"The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors," WAM quoted Sheikh Mohammed as saying.

“Wishing all the best to the team on this new mission... We are optimistic about an upcoming phase where we will multiply our growth, compete with our ambitions, and achieve our economic vision for our people,” he added.

Nakheel and Meydan have launched several projects in multiple sectors including real estate, retail, hospitality, food and beverage, leisure and entertainment and healthcare.