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Saudi Arabia Aims to 'Reboot, Rethink, and Regenerate' Entrepreneurship

The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level. (Asharq Al-Awsat)
The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level. (Asharq Al-Awsat)
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Saudi Arabia Aims to 'Reboot, Rethink, and Regenerate' Entrepreneurship

The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level. (Asharq Al-Awsat)
The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level. (Asharq Al-Awsat)

The Global Entrepreneurship Congress (GEC) seeks to benefit from Saudi Arabia as a platform to reboot, rethink, and regenerate the entrepreneurship system at the international level.

Speakers at the conference reiterated that economic strength depends on the sector's development to return to the economies of countries positively.

The conference witnessed the signing of 33 agreements and the launch of several investment initiatives worth over $4.2 billion, supporting entrepreneurship in various fields and boosting the Kingdom’s status as an attractive environment for pioneers, innovators and creators in the Middle East and North Africa.

Saudi Aramco signed ten memoranda of cooperation and two agreements with local and international companies in digital transformation, information technology, and national development.

The Social Development Bank signed agreements with several entities, including the Royal Commission in Yanbu and the National Entrepreneurship Institute (Riyadah), and announced the launch of several initiatives to support Empowering entrepreneurs valued at around $3 billion.

The Saudi Venture Investment Company (SVC) signed agreements with several investment funds of more than $656 million.

SABIC launched the “Nusaned Fund 2" with al-Ahly Capital Holding worth $200 million to support startup companies and develop the industrial sector.

Minister of Communications and Information Technology Abdullah al-Swaha stressed that Saudi Arabia boasts several innovative companies and institutions led by the ministry that contribute in the growth of the entrepreneur sector.

Speaking at a panel discussion at GEC, Swaha noted that the Riyadh Green Initiative realizes its work and set goals, indicating that Crown Prince Mohammad bin Salman is one of the leading entrepreneurs, with his many projects in Saudi Arabia.

He added that the ministry supports and provides advice to entrepreneurs, all of whom “work for meaning and purpose, rather than money.”

Swaha continued that entrepreneurship is an essential part of the skills for success and is needed to reap the benefits of the 21st Century.

The minister said the Saudi government supports all procedures that help develop technology and benefit significantly from it, searching for innovation and creating different and advanced technologies that benefit all technological and economic aspects.

Egyptian businessman Samih Sawiris announced he intends to invest in the Saudi market during the coming period, stressing that work will be done to translate the project on the ground whenever appropriate opportunities are found.

During one of the dialogue sessions, Sawiris stated that the very encouraging thing in the business world is the low cost of becoming an entrepreneur.

“The world of business has now shaped in such a way that it is very easy and cheap to become an entrepreneur.”

Meanwhile, the speakers discussed topics aimed at helping entrepreneurs expand their businesses worldwide, providing them with the necessary skills to face crises, enhance flexibility, and reach the desired goals to support countries' economies.

The participants stressed the importance of establishing a unified global entrepreneurship system, helping sustain and expand the business, and acquiring the new global trends for pioneering work after the pandemic.

They also noted the need to reboot, rethink, and regenerate the entire system to achieve the goals set for the sector in the future.

The Social Development Bank (SDB) announced the allocation of $2.9 billion to finance entrepreneurs in the Kingdom in the next three years, as part of the Bank’s efforts in empowering Saudi youth and promoting comprehensive national development.

SDB CEO Ibrahim al-Rashid stated at the event that business financing programs in the past period exceeded $2.6 billion, noting that this support contributed to creating more than 100,000 jobs so far.

Rashid indicated that the Bank would allocate, during the coming period, several financing, training, and sponsorship programs to support entrepreneurs in establishing and developing their projects. The aim is to finance more than 68,000 startups and small businesses in the next three years.

On the sidelines of the conference, the SDB signed several agreements with various strategic bodies aiming to provide training, rehabilitation, and sponsorship services to male and female entrepreneurs.

It was also keen to initiate effective communication with the guests and visitors of the conference and introduce its services and financial and non-financial programs to them through the Bank’s pavilion in the exhibition accompanying the conference.

Furthermore, the Saudi Industrial Development Fund (SIDF) and the General Authority for Small and Medium Enterprises (Monsha'at) signed a cooperation agreement to support small and medium industrial enterprises in the Kingdom through their programs (Afaq and Tomooh).

The agreement seeks to enable SIDF's current and new small and medium enterprises to benefit from the services and programs provided by Monsha'at.

Cars24, an automotive e-commerce platform, Lenskart, the largest Asian optical eyewear retail chain, and Kitopi, a cloud-kitchen platform, signed memorandums of understanding (MoU) with Monsha’at to support entrepreneurs in specialized fields.

Monsha'at also signed an MoU with the Saudi Authority for Data and Artificial Intelligence to launch the "Ruwad" initiative.

The Royal Commission for Jubail and Yanbu, the Saudi Industrial Development Fund, and King Abdullah University of Science and Technology signed another MoU with Monasha'at to cooperate in the fields of data, artificial intelligence, and boost cooperation in various initiatives for entrepreneurs and small and medium enterprises.

Moreover, an agreement was signed with Aljabr Finance Company to finance products for entrepreneurs and small and medium enterprises, valued at $5.33 million.

The conference witnessed broad international participation through the launch of several investments.

Watheeq Financial Services closed an investment in Spiders Mobility for the pre-launch stage, at a value of $1.4 million, Courier Solutions for Logistics Services closed an investment round of $4.5 million, and PayPal received an investment of $1.6 million.

Merak Capital, an investment firm focused on technology, closed the seed round, led by Merak Capital, with the participation of MERCED, and an investor with a value of $1.3 million.

Antella closed an investment led by HALA Ventures in Egypt with $1 million. HALA Ventures also achieved an investment in Daily Mills, with the participation of Sidra Venture and Vida Holding, with a value of $5.3 million.

Vision Fund closed an investment in Krusty Company with a value of $2 million, at a pre-seed stage, with the participation of Access bridge Ventures and 500 Startups, with a value of $400,000.

The agreement stipulates for Monsha’at to add programs for the Industrial Fund within Tomooh, in line with the program's terms that target rapidly growing small and medium enterprises with added value to the national economy.

It aims to enhance growth and development by linking service providers and support agencies from the public and private sectors.

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Business

Saudi Arabia, a Center for Spreading Culture of Economic Reforms Globally

Saudi Arabia was chosen as a knowledge center due to its pioneering experience over the past years. (SPA)
Saudi Arabia was chosen as a knowledge center due to its pioneering experience over the past years. (SPA)
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Saudi Arabia, a Center for Spreading Culture of Economic Reforms Globally

Saudi Arabia was chosen as a knowledge center due to its pioneering experience over the past years. (SPA)
Saudi Arabia was chosen as a knowledge center due to its pioneering experience over the past years. (SPA)

Saudi Arabia and the World Bank Group announced on Friday their intention to establish a knowledge center in the Kingdom as part of their efforts to spread the culture of economic reforms globally.

Speaking in Washington, Saudi Minister of Commerce Dr. Majid Al-Qasabi said this step emphasizes the great progress the Kingdom has achieved in global competitiveness reports and indicators, thanks to economic reforms implemented with the support and directives of Prince Mohammed bin Salman, Crown Prince and Prime Minister.

He added that the center will pave the way for further regional and global cooperation in the areas of competitiveness and will allow benefiting from Saudi Arabia’s abilities to implement economic reforms and from the World Bank’s experience that extends for more than 50 years.

The World Bank has chosen Saudi Arabia as the knowledge center to spread the culture of economic reforms in view of its pioneering experience over the past seven years, during which the Kingdom successfully applied an integrated business model that achieved its desired goals.

A founding committee, which includes the Ministries of Finance and Economy and Planning and relevant government agencies, is participating in preparations to establish the center.

In Washington, Al-Qasabi held meetings with Ajay Banga, President of the World Bank Group, and senior experts to discuss the latest initiatives to facilitate cross-border trade by simplifying customs procedures and regulations.

Business

'Halving' Arrives for Bitcoin Miners

A man walks past a bitcoin poster in Hong Kong on April 15, 2024. DALE DE LA REY / AFP
A man walks past a bitcoin poster in Hong Kong on April 15, 2024. DALE DE LA REY / AFP
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'Halving' Arrives for Bitcoin Miners

A man walks past a bitcoin poster in Hong Kong on April 15, 2024. DALE DE LA REY / AFP
A man walks past a bitcoin poster in Hong Kong on April 15, 2024. DALE DE LA REY / AFP

The bitcoin market on Friday engineered the "halving" of the reward for operating the cryptocurrency, a much-anticipated step designed to limit production and boost the digital money.
"The 4th #Bitcoin halving is complete!," announced cryptocurrency exchange Binance on X, the former Twitter.
"The countdown has been reset -- see you in 2028."
Bitcoin is created as a reward when computers solve complex puzzles to decide which miner wins the privilege to validate the block -- and receive the reward in bitcoins, AFP said.
However, since the digital currency's launch in 2009, the reward has been halved for every 210,000 blocks in a process called halving.
With one block validated roughly every ten minutes, this critical industry event occurs just under every four years.
The reward, which was fixed since May 2020 at 6.25 bitcoins per new block, has now fallen to 3.125 bitcoins.
Bitcoin was conceived in 2008 by a person or group writing under the pseudonym Satoshi Nakamoto.
The halving process slows the rate at which new bitcoins are created, thereby restricting supply.
The reward amount has been trimmed over time, via halving, to implement Nakamoto's overall global limit of 21 million bitcoins.
But this ceiling is due to be reached by 2040.
Controlling supply
"The primary purpose of halving is to control bitcoin's supply," City Index analyst Matthew Weller said in a research note ahead of the event.
"By slowing the rate at which new bitcoins are created, halving helps to maintain scarcity and potentially increase the cryptocurrency's value, assuming demand remains steady or increases," he added.
The price of bitcoin has blazed a record-breaking trail on the prospect of reduced supplies, as well as big moves toward greater trading accessibility.
Bitcoin has rocketed by 50 percent in value since the start of the year, climaxing last month at a record $73,797. Prices have fallen in recent days.
"This is the first time that bitcoin beat the previous historical record before the halving has even taken place," said eToro analyst Simon Peters, noting there had been a pullback in recent days.
Commercial bitcoin mining companies operate thousands of computers in huge hangers or warehouses, consuming large amounts of electricity at a vast cost.

Halving therefore represents a major survival test for such companies because it slashes their main income source.
Reduced margins
Faced with the prospect of reduced margins, bitcoin players have invested heavily in cutting-edge new computers, in tandem with an efficiency drive which in particular seeks to slash energy costs.
In addition, some mining companies will have to "turn off some of their machines to cut costs, which equates to fewer bitcoins being created," said Manuel Valente, founder of cryptoasset investment group Coinhouse.
"And if the price of bitcoin goes down, their profitability decreases" further, he told AFP.

Halving therefore exposes the weakest bitcoin mining firms, and could potentially spark a fresh wave of sector consolidation in a survival of the fittest, commentators say.
At around 0030 GMT, after the halving had taken place, the price of bitcoin was up 0.7 percent at $63,467.46.

Business

Al-Jadaan from Washington: We Must Be Vigilant, Prepared to Confront Challenges Ahead

The IMF Managing Director and Al-Jadaan during their joint press conference in Washington (AFP)
The IMF Managing Director and Al-Jadaan during their joint press conference in Washington (AFP)
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Al-Jadaan from Washington: We Must Be Vigilant, Prepared to Confront Challenges Ahead

The IMF Managing Director and Al-Jadaan during their joint press conference in Washington (AFP)
The IMF Managing Director and Al-Jadaan during their joint press conference in Washington (AFP)

Saudi Finance Minister Mohammed Al-Jadaan, Chairman of the International Monetary and Finance Committee (IMFC), said that the war in Ukraine, the crisis in Gaza, and the obstruction of shipping in the Red Sea have repercussions on the global economy.
Al-Jadaan’s words came during a joint press conference with the IMF Managing Director, Kristalina Georgieva, at the end of the 49th meeting of the Fund’s International Monetary and Finance Committee (IMFC), on the sidelines of the IMF spring meetings currently taking place in Washington.
The Saudi minister has been chosen to chair the IMFC for a period of three years as of Jan. 4, 2024.
“While recognizing the IMFC is not the forum to resolve geopolitical and security issues and these issues will be discussed in other fora, IMFC members acknowledged that these situations have significant impacts on the global economy. Today’s era must not be of war and conflict,” Al-Jadaan said, in a statement published on behalf of the Committee.
He continued: “A soft landing for the global economy appears to be drawing closer. Economic activity has proved more resilient than expected in many parts of the world, though it continues to diverge across countries. However, medium-term global growth prospects remain weak. Ongoing wars and conflicts continue to impose a heavy burden on the global economy.”
The statement stressed that although inflation has decreased in most regions, due to the decline in supply shocks and the effects of tight monetary policy, its persistence calls for caution.
“Against this background, our policy priorities are to achieve price stability, strengthen fiscal sustainability, and safeguard financial stability, while promoting inclusive and sustainable growth. We will proceed with rebuilding fiscal buffers, carefully tailoring actions to country-specific circumstances, while protecting the most vulnerable and growth-enhancing investment,” the IMFC chair underlined.
The Committee also stressed the importance of international cooperation to improve the resilience of the global economy and the international monetary system, and to work collectively to support climate and digital transformations, including artificial intelligence, taking into account the specific circumstances of each country.
It added: “We reiterate our commitments on exchange rates, addressing excessive global imbalances, and governance, and our statement on the rules-based multilateral trading system, as made in April 2021, reaffirming our commitment to avoid protectionist measures. We will also continue working together to strengthen the global financial safety net and address global debt vulnerabilities.”

 

Business

Expansion Plans, High Returns Raise Profits of Saudi Real Estate Companies

The real estate sector in Saudi Arabia is heading towards recovery. (Photo: SPA)
The real estate sector in Saudi Arabia is heading towards recovery. (Photo: SPA)
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Expansion Plans, High Returns Raise Profits of Saudi Real Estate Companies

The real estate sector in Saudi Arabia is heading towards recovery. (Photo: SPA)
The real estate sector in Saudi Arabia is heading towards recovery. (Photo: SPA)

Experts said that the real estate sector in Saudi Arabia is heading towards recovery thanks to the implementation of expansion plans, improved operating profits, and high investment returns and revenues.
They added that the sector continues to maintain annual growth levels due to the high volume of demand, compared to the supply.
Real estate companies listed on the Saudi Stock Exchange (Tadawul) achieved a significant 258 percent jump in their net profits by the end of 2023, reaching about SAR 3 billion ($800 million) during the past year, compared to SAR 831 million ($221 million) during 2022.
In this context, the CEO of Menassat Realty Co, Khaled Almobid, said that the real estate sector in Saudi Arabia is witnessing a state of recovery in terms of price as an asset value, as well as the high demand for various real estate products.
He added that the upcoming indicators are positive, especially with expectations of a cut in interest rates during the coming period and the giant projects announced in a number of cities, as well as Riyadh’s hosting the Expo 2030 exhibition and two important football tournaments, the Asia Cup 2027 and the World Cup 2034.
For his part, Financial Analyst Tariq Al-Ateeq told Asharq Al-Awsat that the most important factors that contributed to achieving a significant jump in the profits of real estate sector companies were represented by the implementation of strong expansion plans, the increase in profit margins, and improved operating profits, as well as the high fair value gains from investment properties.
He added that the real estate market in Saudi Arabia is promising for investment and profitability, given its potential as the largest among the Gulf Cooperation Council countries.

 

 

Business

Safe-haven Gold Rises as Israeli Attack on Iran Raises Concerns of Wider Conflict

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
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Safe-haven Gold Rises as Israeli Attack on Iran Raises Concerns of Wider Conflict

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices rose on Friday as risk aversion swept across financial markets following media reports on explosions in Iran, prompting fears of a wider regional conflict and increasing bullion's safe-haven appeal.
Spot gold rose 0.3% at $2,386.05 per ounce, as of 0429 GMT, after briefly jumping as high as $2,417.59 earlier in the session, not far from an all-time high of $2,431.29 hit last Friday. Bullion was set for a fifth straight weekly rise and has risen about 2% so far this week.
US gold futures rose 0.1% at $2,401.20, Reuters said.
The news of Israel's attacks on Iran today "is driving gold price attention in the Middle East which has been the sole thing keeping the gold price moving higher for weeks now. Market is now waiting for more information about the nature of the attack, and what the response would be," said Kyle Rodda, a financial market analyst at Capital.com.
"Gold is not a monetary policy trade at the moment, it's a geopolitics trade," Rodda said.
Israel has attacked Iran, three people familiar with the matter said, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
Eventually, even if geopolitical risks subside, "Chinese gold reserve accumulation acts as the major catalyst. That is a process that seems to have scope for continuity, favoring gold's upside bias," Ilya Spivak, head of global macro at Tastylive said.
Meanwhile, Federal Reserve policymakers have gathered around the idea of keeping borrowing costs where they are until perhaps well into the year, given the slow and bumpy progress on inflation and a still-strong US economy.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
Amongst other precious metals, spot silver rose 0.2% to $28.28 per ounce, and was set for a weekly gain.
Spot platinum rose 0.6% at $938.39, and palladium was steady at $1,023.09. Both sister metals were headed for a weekly decline.

Business

Indicators Point to Saudi Economic Prosperity in 2025

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
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Indicators Point to Saudi Economic Prosperity in 2025

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

Many indicators show that the Saudi economy is heading towards prosperity in 2025, based on data that made the International Monetary Fund (IMF) and the World Bank raise their expectations for the growth of the Kingdom’s economy to 6 percent and 5.9 percent, respectively, from their previous prospects of 5.5 percent and 4.2 percent in January.

Dr. Abdullah Al-Jassar, a member of the Saudi Economic Association, told Asharq Al-Awsat that these expectations are based on key factors, including the improved performance of the non-oil sector, which is likely to maintain its growth momentum, driven by increased consumption and investment.

He also pointed to the continued rise of oil prices, noting that signs of improvement during the current year will contribute to supporting revenues that facilitate investment in infrastructure projects and economic development.

Al-Jassar went on to say that infrastructure improvements and trade agreements help in strengthening the Kingdom’s role as a regional commercial hub and stimulating economic activity.

He highlighted the importance of promising sectors, including arts, entertainment, and tourism, in diversifying the economy and creating new job opportunities.

He stressed that the Saudi economy was moving steadily towards achieving its development goals, thanks to good economic policies, huge investments, and economic diversification programs.

Meanwhile, Chief Economist at Riyad Bank Dr. Nayef Al-Ghaith explained to Asharq Al-Awsat that the expectations of the IMF and the World Bank showed a growth momentum in 2025, thanks to an increase in the oil and non-oil economies during the coming period.

The non-oil economy has witnessed an expansion supported by the economic reforms established by Vision 2030, he said, adding: “Currently, we are seeing the results of these initiatives, as companies have witnessed a rise in orders and in the number of new customers, which has contributed to the overall increase in business operations.”

Business

China’s Central Bank Vows to Prioritize Quality of Credit Over Size

Workers prepare a stall filled with seafood at a market in Beijing on July 10, 2019. (AFP)
Workers prepare a stall filled with seafood at a market in Beijing on July 10, 2019. (AFP)
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China’s Central Bank Vows to Prioritize Quality of Credit Over Size

Workers prepare a stall filled with seafood at a market in Beijing on July 10, 2019. (AFP)
Workers prepare a stall filled with seafood at a market in Beijing on July 10, 2019. (AFP)

There is still room for China's central bank to take steps to support the economy, but efforts are needed to prevent cash from sloshing around the banking system as real credit demand weakens, senior officials at the bank said on Thursday.

The world's second-biggest economy grew faster than expected in the first quarter, but several March indicators, such as property investment, retail sales and industrial output showed that domestic demand remains frail, weighing down momentum.

The People's Bank of China (PBOC) has pledged to step up policy support for the economy this year and promote a rebound in prices.

“A series of monetary policy measures introduced earlier are gradually taking effect, and the economy continues to rebound with a good start,” Zhu Hexin, a deputy governor of the PBOC, told a news conference on Thursday.

“There is still room for monetary policy going forward, and we will closely watch the policy effectiveness, economic recovery, and achievement of goals, and make good use of reserve tools at the appropriate time.”

China's central bank cautioned on Thursday against a “one-sided” pursuit of credit expansion after data showed a slowdown in bank lending, vowing to prioritize the quality of credit over size and move to revitalizing existing loans.

Zou Lan, head of the PBOC's monetary policy department, told the briefing that efforts should be made to prevent the accumulation of “idle funds” as some banks extend more loans than actually needed and some firms use low-cost loans to buy wealth management products or lend to other firms.

“Credit demand has weakened compared to previous years, and the credit structure is also being optimized and upgraded,” Zou said, adding that China's money supply growth could slow down and people should not simply look at year-on-year growth.

The central bank has in recent weeks delivered modest cuts in banks' reserve requirement ratio (RRR) and interest rates as part of broad measures to support the economy, with more policy easing expected in the coming months.

Real interest rates, when adjusted for producer prices, remain elevated for some industries - including ferrous metal producers, but high borrowing costs will help promote capacity control and inventory reduction among firms, Zou said.

“We should avoid weakening the driving force of structural adjustments and prevent excessively low interest rates,” he said.

New bank lending in China rose less than expected in March from the previous month, while broad credit growth hit a record low, boosting the case for the central bank to roll out more stimulus steps to help achieve an ambitious growth target.

China has set an economic growth target for 2024 of around 5%, which many analysts say will be a challenge to achieve without much more stimulus.

The central bank said 2024 growth of money supply and total social financing - a broad measure of credit and liquidity in the economy - would match expected goals for economic growth and inflation.

Analysts polled by Reuters expected the central bank to cut the banks' reserve requirement ratios (RRR) by 25 basis points (bps) in the third quarter, following a 50-basis point cut earlier this year, which was the biggest in two years.

Business

Oil Surges, Equities Sink as Iran Blasts Fan MidEast Escalation Fears

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
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Oil Surges, Equities Sink as Iran Blasts Fan MidEast Escalation Fears

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo

Oil prices rallied and equities sank Friday as reports said explosions had been heard in Iran and Syria, fueling fears of an escalation of the Middle East crisis after last weekend's missile attack on Israel by Tehran.
The reports followed another batch of data indicating the US economy remained in rude health and compounded concerns that the Federal Reserve will hold off cutting interest rates this year or even hike them again, The Associated Press said.
Traders have been on edge since Saturday's barrage by Iran, which Israel's army chief General Herzi Halevi warned would be met with a response.
Leaders in Tehran said the strike was a legitimate response to a deadly attack on an Iranian embassy building in Damascus that it blames on Israel.
Iran state TV said three blasts had been heard near central Isfahan, the site of a key nuclear facility. Tehran had earlier said it could revise its nuclear policies if Israel threatened to attack its sites.
The Mehr news agency also said that "flights to Tehran, Isfahan and Shiraz, and airports in the west, northwest and southwest have been suspended".
Israel's military said sirens sounded in the country's north.
The news sent shivers through markets, with both main oil contracts surging more than three percent on worries about supplies from the crude-rich region, while fears of a regional conflict saw equities tumble.
Tokyo, Seoul and Taipei each plunged more than three percent, while Hong Kong and Sydney were off more than one percent.
There were also losses in Shanghai, Singapore, Wellington, Manila and Jakarta.
The rush for safety also saw the yen rally against the dollar and gold jump more than one percent past $2,400, while US Treasuries climbed.
"It is now clear that the escalating shadow warfare between Israel and Iran... has finally ignited the powder keg in the Middle East, and we have moved decisively out of the shadows and into the glaring light of open conflict," said Stephen Innes of SPI Asset Management.
"It should be noted that this is not a staged response to an Iranian drone attack but rather an indication that we have entered a new phase of this conflict, one that is likely to have significant and far-reaching consequences for Middle East peace and least of all risk markets."
The mood among traders was already downbeat as they contemplated the prospect of the Fed staying pat on interest rates this year following data showing jobless claims came in below expectations while a gauge of business activity hit a two-year high.
Meanwhile, Atlanta Fed boss Raphael Bostic said inflation is "too high" and he felt there was no need to cut borrowing costs until later in the year.
"I'm comfortable being patient," he added.
New York Fed chief John Williams and governor Michelle Bowman also said they saw fewer reductions than expected, if at all, this year.
Michael Landsberg, of Landsberg Bennett Private Wealth Management, said: "We are firmly in the camp of no rate cuts in 2024.
"We believe investors should prepare for a higher-for-longer regime when it comes to both inflation and interest rates."

Business

IMF Revises Down Middle East Growth Outlook

An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
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IMF Revises Down Middle East Growth Outlook

An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)
An International Monetary Fund police officer walks by an IMF banner, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 18, 2024. (AP Photo/Jose Luis Magana)

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook. That would be an improvement from 1.9% growth in 2023.

The downward revision was driven by conflicts in Sudan, the West Bank and Gaza, as well as oil production cuts.

"Assuming these factors ease in 2025, growth is forecast to strengthen to 4.2%," the IMF said.

"Uncertainty is high and medium-term growth is forecast to remain below pre-pandemic historical averages."

Within MENA, oil exporters are seen faring better, with the IMF projecting 2.9% growth this year, up 1 percentage point from last year.

Gulf economies are seen growing 2.4% this year, a downward revision of 1.3 percentage points from October, the IMF said. Non-hydrocarbon growth in the oil-rich region will be the main driver of growth going forward and ambitious plans to diversify their economies are expected to reduce dependence on hydrocarbons, the IMF said.

Non-Gulf oil exporters are seen growing 3.3% in 2024, up from 3% seen in October.

Prolonged disruptions to trade in the Red Sea would further impact trade volumes and shipping costs.

"The conflict in Gaza and Israel is a key downside risk for the MENA region, particularly the risk of further escalation or a protracted conflict and disruptions to trade and shipping," the IMF said.

Business

Iraq to Seek Bids for Oil, Gas Contracts April 27

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
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Iraq to Seek Bids for Oil, Gas Contracts April 27

FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A general view shows the central station gas processing plant at Rumaila oilfield in Basra, Iraq, November 5, 2020. REUTERS/Essam Al-Sudani/File Photo

Iraq will hold a bidding round for oil and gas exploration contracts on April 27, the oil ministry said on Thursday.
Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country as it seeks to produce much needed natural gas for power stations and cut imports burdening the country's budget.
The "fifth plus" round includes 16 projects, some of which were not awarded in the fifth licensing round, while the sixth round will offer mainly exploration gas blocks, the ministry said in a statement.
The country flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel. Instead, it uses Iranian power imports to generate electricity.