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ACWA Power Signs MoU with Saudi EXIM

Eng. Saad al-Khalb and Mohammad Abunayyan during the signing of the MoU. (Asharq Al-Awsat)
Eng. Saad al-Khalb and Mohammad Abunayyan during the signing of the MoU. (Asharq Al-Awsat)
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ACWA Power Signs MoU with Saudi EXIM

Eng. Saad al-Khalb and Mohammad Abunayyan during the signing of the MoU. (Asharq Al-Awsat)
Eng. Saad al-Khalb and Mohammad Abunayyan during the signing of the MoU. (Asharq Al-Awsat)

ACWA Power, a leading developer, investor and operator of power generation, desalinated water and green hydrogen plants, signed on Monday a Memorandum of Understanding (MoU) with Saudi Export-Import Bank (Saudi EXIM).

The agreement involves knowledge transfer in credit issuance, with the objective of facilitating and growing Saudi exports and overseas investments by Saudi institutions and organizations.

The MoU will also bolster the growth of local content and Saudi exports in international projects and capital investments overseas, which will, in turn, create new jobs and foster economic growth in the Kingdom and abroad.

“Saudi EXIM is working to expand its partnerships with local and international entities to support and diversify innovative financing products and credit solutions that meet the objectives of our partners and beneficiaries,” said Eng. Saad al-Khalb, the CEO of Saudi EXIM.

“These developments will enhance the competitiveness of Saudi products, increase the economic impact of non-oil exports on the GDP, and reinforce the growth of the alternative economy in support of the Vision 2030 goals of building a prosperous and sustainable economy.”

“ACWA Power is a national champion with extensive expertise in project finance, including working with export credit agencies from across the world,” said ACWA Power Chairman Mohammad Abunayyan.

“We have firsthand experience in driving knowledge transfer and using it effectively to build national project financing capabilities.”

“We value this agreement with Saudi EXIM and look forward to partnering with their teams on our projects, as we continue on delivering solutions that create economic benefits within the country and support the ambitious Saudi Vision 2030 goals,” he added.

Saudi EXIM provides export financing, guarantees, credit insurance and other facilities to enhance confidence in Saudi exports and facilitate entry into new markets.

The organization was conceptualized under the framework of Vision 2030, under the directives of Custodian of the Two Holy Mosques King Salman bin Abdulaziz, to diversify the Kingdom’s economy, expand its non-oil exports, and increase the ability of Saudi companies to compete in global markets in diverse sectors.

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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.