World Defense Show in Riyadh: 85% of Space Allocated

World Defense Show in Saudi Arabia witnesses broad participation (Asharq Al-Awsat)
World Defense Show in Saudi Arabia witnesses broad participation (Asharq Al-Awsat)
TT

World Defense Show in Riyadh: 85% of Space Allocated

World Defense Show in Saudi Arabia witnesses broad participation (Asharq Al-Awsat)
World Defense Show in Saudi Arabia witnesses broad participation (Asharq Al-Awsat)

The World Defense Show, the global defense and security event to be held in Riyadh, has already allocated 85 percent of its space amid a broad international, global, regional, and local participation of defense and security companies.

Sponsored by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, the event is organized by the General Authority for Military Industries (GAMI) and will include leading global defense companies such as Embraer, General Dynamics, Lockheed Martin, NORINCO, and Rolls Royce.

Several government agencies in the Kingdom, such as the Ministry of Defense, the Ministry of National Guard, the Ministry of Interior, the Presidency of State Security, and the General Authority for Military Industries, have confirmed their participation.

GAMI Governor Ahmed al-Ohali indicated that the exhibition provides tremendous opportunities for exhibitors and investors to participate in a market that seeks to localize a vital sector, estimated at billions of dollars in one of the largest economies in the world.

Ohali stressed that the Kingdom welcomes those wishing to establish partnerships with local manufacturers and contribute to the localization of the defense and security industries.

For his part, CEO of World Defense Show Shaun Ormrod announced that with over 800 exhibitors, 30,000 visitors, and 85 military delegations, the World Defense Show would open the local and regional defense industry to partnerships and investments from international defense players.

“This will be the first time the global industry has had such open access to all the opportunities with Saudi defense entities, and we are greatly looking forward to providing the world’s best meeting environment for global industry decision-makers.”

Ormrod stressed that the exhibition’s organizing committee is working to provide an ideal environment to organize meetings between decision-makers in the global defense industry and review the manufacturers’ capabilities and priorities.

The World Defense Show is held every two years and focuses on defense interoperability across air, land, sea, security, and space, which will enable the industry to keep pace with developments across defense and technology.

The speed at which these developments occur compels the industry to cooperate across borders and domain expertise to generate opportunities throughout the defense value chain.

The event has laid the foundations for advancing the defense industry and addressing the challenges of ever-deeper defense systems integration by connecting key defense contacts, primes, SMEs, and buyers.



Dollar Steadies ahead of Trump Inauguration

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
TT

Dollar Steadies ahead of Trump Inauguration

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The US dollar steadied on Thursday despite the sharp fall in US bond yields after Wednesday’s inflation data as market focus shifted to Donald Trump’s presidential inauguration next week and possible inflationary impact of his policies.

Meanwhile the yen rose against the dollar and the euro as investors expected the Bank of Japan to hike rates next week.

The US dollar index - a measure of the value of the greenback relative to a basket of foreign currencies - was up 0.1% at 109.12.

"Markets are cautious before the inauguration because there is still policy uncertainty," said Paul Mackel, global head of foreign exchange research at HSBC.

"If the risk of US tariffs begins to materialize, the dollar will get another lift," he added, Reuters reported.

The highlight of the day should be the nomination hearing of Trump's choice of Scott Bessent to head the Treasury Department.

Bessent, who will face questioning before the US Senate Finance Committee, is expected to keep a leash on US deficits and to use tariffs as a negotiating tool, mitigating the expected inflationary impact of economic policies expected from the Trump administration.

The US inflation curve "has a well-identifiable 40 bps 'hump' over the next 12 months, which is near-identical to the estimated impact of a 5% universal and 20% China tariff starting as soon as Trump gets in office," said George Saravelos, head of forex research at Deutsche Bank.

"The market is pricing quick but moderate tariffs," he added. "We see risks of slower but bigger tariffs."

Traders who have been growing more worried about inflation responded with relief to Wednesday's US data, buying stocks and sending benchmark 10-year Treasury yields down more than 13 basis points. The currency reaction was more muted.

Analysts flagged that the US consumer price data was better than expected, but still showing inflation above Federal Reserve targets. The figures provided the US bond market with an excuse to do some downside testing for yields, but such a move is unlikely to go far.

"We still think that it will be easy for the Fed to remain on hold for now and wait for more data and fiscal policy clarity," said Allison Boxer, an economist at PIMCO, adding that US data did not change their forecasts for core inflation.

"We expect this to be the message (Fed) Chair (Jerome) Powell aims to communicate at the January meeting."

There was little direct reaction in foreign exchange markets to the ceasefire deal in Gaza, though the Israeli shekel did touch a one-month high on Wednesday.

The yen rose 0.46% against the dollar, after hitting 155.21, its lowest level since Dec. 19. It was up 0.51% against the euro at 160.19.

Recent remarks from Bank of Japan Governor Kazuo Ueda and his deputy Ryozo Himino have made clear that a hike will at least be discussed at next week's policy meeting and markets see about a 79% chance of a 25 basis point increase, while pricing 50 bps of rate hikes by year-end.

"Yen strengthened on expectations for a rate hike, but now the focus is on what BOJ officials will say about the monetary policy outlook," HSBC's Mackel argued.

"They could signal a more gradual path for the future, which could limit yen gains."

Japan's annual wholesale inflation held steady at 3.8% in December on stubbornly high food costs, data showed on Thursday.

"Expectations of a BOJ hike and perhaps fears of more forex intervention in the 158/160 area have helped the yen outperform," said Chris Turner, head of forex strategy at ING.

"We expect that to continue into next week's BOJ meeting. However, dips may exhaust in the 153/155 area," he said.

The euro was up 0.05% at $1.0294.

Sterling dropped sharply against the yen and also weakened versus the dollar and the euro on Thursday as investors focused on monetary policy divergence after last week's selloff in gilts and the pound.

China's yuan, seen on the front lines of tariff risk, was pinned near the weak end of its trading band at 7.3468 throughout the Asia session.