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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s Jada Fund of Funds plans launching funds to attract investments in favor of NEOM, revealed Jada CEO Adel Al-Ateeq.

“We are looking to increase the volume of Jada’s investment by more than SAR 4 billion ($1.06 billion),” Al-Ateeq told Asharq Al-Awsat.

“Since the beginning of Jada’s launch, we have invested in more than 20 investment funds,” said Al-Ateeq.

“The volume of investment in these funds exceeded SAR2 billion ($533.3 million), distributed among a number of venture capital and private equity funds in the Kingdom,” revealed the CEO.

Al-Ateeq stressed that Jada will continue to invest in venture capital and private equity in the Kingdom. He reaffirmed that the fund would carry on with the momentum it started with three years ago.

He pointed out that Jada’s capital initially amounted to SAR 4 billion ($1.06 billion) but hoped to increase its value in the future.

“We invested SAR 2 billion in 3 years... and I expect to continue at the same level during the next three years... We invested in 20 funds in several companies,” said Al-Ateeq, adding that Jada has capitalized in 350 local and regional companies.

“NEOM is still in the process of being established, and it is working to establish many targeted projects... Therefore, we are looking forward to launching investment funds that will give NEOM a share of its investments when its projects are launched,” revealed Al-Ateeq.

Saudi Arabia’s Ministry of Investment (MISA) and Jada had formed a partnership to bolster the Kingdom’s start-up and innovation sector and support economic diversification under the ‘Catalyze Saudi’ initiative.

Jada, owned by the Public Investment fund (PIF), provides funding to start-ups in the Kingdom through commercially sustainable investments in venture capital and private equity funds.

MISA and Jada aim to connect leaders from government agencies, start-up entrepreneurs, investors and leading family business representatives from the Kingdom to participate in roundtable discussions and reinforce the private sector’s impact on the local economy.

The ‘Catalyze Saudi’ initiative is in line with the Kingdom’s Vision 2030 which aims to raise small and medium sized enterprises’ (SMEs) contribution to GDP from 21% to 35% by 2030.

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Business

Saudi Arabia Encourages Companies to Import Lebanese Products After Royal Order

Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
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Saudi Arabia Encourages Companies to Import Lebanese Products After Royal Order

Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)

Saudi Arabia has officially begun encouraging its private sector to import Lebanese goods, a concrete step to revive trade between the two countries after years of disruption.

The step implements directives from Prince Mohammed bin Salman, Crown Prince and Prime Minister, and follows a request from Lebanon’s presidency and government.

Beirut port recently saw the first shipment leave for the Kingdom, in a ceremony officials said marked the rebuilding of economic trust, backed by modern and strict security controls to safeguard exports.

According to information obtained by Asharq Al-Awsat, Saudi Arabia’s General Authority of Foreign Trade informed the Federation of Saudi Chambers that a royal order had approved the resumption of Lebanese exports to the Kingdom.

It asked that the decision be circulated across the private sector so companies could benefit from it.

The move is expected to spur Saudi companies to tap the Lebanese market and push trade between the two countries toward broader horizons in line with their ambitions.

First export shipment

Acting on the Saudi royal order, Lebanese products were shipped again to Saudi Arabia on June 20, in the presence of the Saudi Ambassador to Lebanon, Fahd Al-Dosari. The shipment carried more than goods and merchandise.

It carried “a message of trust rebuilt after years of disruption, and an economic opportunity Lebanon eagerly awaits at a time when the need to stimulate production and increase exports is growing.”

The return of the Saudi market, which alone represents about 85% of the Gulf market, is not only a recovery of what was lost when exports stood at about $378 million before the ban. It also opens the door to greater ambitions to expand Lebanon’s presence in this vast market.

Al-Dosari said in a speech: “In implementation of the directives of Crown Prince Mohammed bin Salman to resume Lebanese exports to the Kingdom, and in response to the request of Lebanese President General Joseph Aoun and Prime Minister Nawaf Salam, and in line with the positive steps taken by the government toward rebuilding state institutions and the work completed by the specialized teams, we gather today to witness the departure of the first exports bound for Jeddah Islamic Port through Beirut port.”

He added: “As an embodiment of brotherly relations and out of the Kingdom’s keenness to stand by its brothers, this decision to resume Lebanese exports to the Kingdom confirms beyond doubt its support for Lebanon’s stability, its sovereignty over all its territory and the welfare of its brotherly people.”

Security screening

Prime Minister Nawaf Salam said Lebanon would not be allowed to again become “a launchpad for any harm against its Arab brothers,” and thanked Crown Prince Mohammed for lifting the ban on Lebanese exports.

The attendees then inspected modern scanning devices recently installed at Beirut port to examine goods and containers with precision. The equipment is designed to tighten security controls and speed up customs clearance.

Saudi Arabia had been Lebanon’s top export market before the ban. In 2014 and 2015, it ranked first, accounting for about 12% of Lebanon’s total exports, with a value of around $378 million in 2014, according to Lebanese customs and Chamber of Commerce data.

Bilateral trade was estimated at hundreds of millions of dollars annually.

Business

Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
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Türkiye and Iraq Discuss Energy Cooperation Ahead of Pipeline Deal Expiry

A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)
A general view of Türkiye's Mediterranean port of Ceyhan, Adana, southern Türkiye, Feb. 19, 2014. (Reuters)

Türkiye's ‌Energy Minister Alparslan Bayraktar said on Wednesday that he met senior Iraqi oil and foreign ministry officials to discuss energy cooperation, including on the Iraq-Türkiye Crude Oil Pipeline that runs from Kirkuk to Ceyhan.

The decades-old Türkiye-Iraq Crude Oil ‌Pipeline Agreement, which governs ‌exports through the ‌pipeline, ⁠is due to ⁠expire on July 27. Baghdad and Ankara are still discussing a new draft agreement.

The Iraqi delegation included Deputy Foreign Minister Hussein Bahr Al-Uloom, Deputy ⁠Oil Minister Naser Azez ‌Jabbar, and ‌Iraq's Ambassador to Ankara Majid Al-Lachmawi.

Bayraktar said in a ‌post on X that Türkiye aims to work closely with the new Iraqi government on more effective ‌use of existing energy infrastructure.

Türkiye also seeks to ⁠support ⁠existing infrastructure with new connections, Bayraktar said.

Baghdad last month asked Ankara to extend the pipeline agreement for at least a year to allow time for more talks, but Ankara said it does not want an extension under current conditions.

Business

Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
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Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)

Gold fell for a third consecutive session on Wednesday, as rising US Treasury yields and growing bets that the Federal Reserve will raise interest rates pressured the non-yielding metal.

Spot gold was down 0.8% at $3,974.75 per ounce as of 0849 GMT, after touching its lowest level since last November at $3,942.99 in the previous session. US gold futures for August delivery lost 1.3% to $3,987.70/oz.

The yellow metal ‌on Tuesday recorded ‌its first quarterly loss since January 2024, Reuters reported.

A selloff ‌in ⁠US Treasuries on ⁠Tuesday pushed the benchmark 10-year yield up as much as 9 basis points before it backed off the highs. By Wednesday, yields were rising again, up 4 bps at 4.465%, outpacing increases in euro zone bond yields.

A stronger US dollar makes bullion less affordable for overseas buyers.

"The weakness is a bit driven by comments from ⁠Fed's Hammack, suggesting a rate hike might be ‌needed and market participants pricing in ‌a bit more rate hikes for this year," said UBS analyst Giovanni Staunovo. Federal ‌Reserve Bank of Cleveland President Beth Hammack said on Tuesday ‌she may advocate for higher rates if inflation pressures don’t moderate. According to CME FedWatch tool, traders see a nearly 67% chance of a rate hike by September.

Expectations for more hikes are not helping investment demand, and ‌ETF holdings have seen renewed outflows in recent days, said Staunovo, noting that price volatility is ⁠expected around economic ⁠data releases this week.

June ADP employment data, due at 1215 GMT, and Thursday's nonfarm payrolls report could give further clues on the Fed's policy path.

Markets will also closely watch the European Central Bank's annual Sintra conference on Wednesday, where Fed Chair Kevin Warsh and ECB President Christine Lagarde are due to speak. On the geopolitical front, concerns persisted over the prospects for US-Iran diplomacy after Tehran said it would not meet senior US envoys who travelled to the region following the recent outbreak of hostilities.

Spot silver fell 1.4% to $57.75 per ounce.

Platinum slipped 0.6% to $1,542.70, after hitting its lowest point since November. Palladium slid 1.4% to $1,187.01.