Saudi Arabia Launches Bids For the Construction of Dams

Saudi Arabia is working on developing dams and investing in the surrounding areas (Asharq Al Awsat)
Saudi Arabia is working on developing dams and investing in the surrounding areas (Asharq Al Awsat)
TT

Saudi Arabia Launches Bids For the Construction of Dams

Saudi Arabia is working on developing dams and investing in the surrounding areas (Asharq Al Awsat)
Saudi Arabia is working on developing dams and investing in the surrounding areas (Asharq Al Awsat)

The Saudi Ministry of Environment, Water and Agriculture revealed that it has launched an investment initiative, the first of its kind, to offer bids for the construction of water dams.

The ministry announced the launch of four water dam projects in the Asir region (southern of the Kingdom) for investment by the private sector, with the aim of developing and protecting the areas surrounding the dams, promoting recreational activities, and preserving water reserves.

Saudi Arabia seeks to exploit all opportunities to achieve water security and provide the necessary capabilities to protect the country’s water resources in line with the goals of Vision 2030.

The four dams are located in the Southern Asir province and they will be built in separate areas.

The Environment, Water and Agriculture Ministry said bidding from experienced private sector firms would end after nearly three months.

“These projects constitute an opportunity for the private sector to contribute to the development of the Southern region,” the Ministry said in a statement.

“The projects are intended to conserve water in that region and at the same time support plans to develop recreational activities,” it added.

In March, the Saudi government decided to assign the tasks of establishing, operating, maintaining and reconstructing dam water and groundwater purification plants to the Saline Water Conversion Corporation (SWCC).

Eng. Abdullah Al-Abdul Karim, SWCC governor, said that the cabinet decision would seek to harness all the technical, engineering and research capabilities to ensure the sustainability of water supply in all regions of the Kingdom.

He added that the corporation will manage, operate and maintain purification plants built on wells and dams, while the pumped water will remain under the management and supervision of the Ministry of Environment, Water and Agriculture.



Gold Advances as Softer Core CPI Data Revives Fed Easing Hopes

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
TT

Gold Advances as Softer Core CPI Data Revives Fed Easing Hopes

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices extended gains on Wednesday, as the dollar dipped after US core inflation data came in softer than expected, abating inflation pressures and rekindling expectations that the Federal Reserve's easing cycle may not be over yet.

Spot gold gained 0.4% to $2,688.19 per ounce by 0915 a.m. ET (1415 GMT). US gold futures were up 1.1% to $2,711.40.

Excluding volatile food and energy components, core CPI increased 3.2% on an annual basis, compared with an expected 3.3% rise, the US Bureau of Labor Statistics said on Wednesday, Reuters reported.

"Core CPI came in a little bit below expectations. This is a bit of a positive for gold... The corollary to this is that the Fed will not necessarily exclude the possibility of cutting rates," said Bart Melek, head of commodity strategies at TD Securities.

"The probability of a rate cut in January is kind of nothing, but we are pricing some rate cuts by the end of the year here."

Markets now expect the Fed to deliver 40 basis points (bps) worth of rate cuts by year-end, compared with about 31 bps before the inflation data.

The dollar index eased 0.4%, making bullion more attractive for other currency holders. The benchmark 10-year Treasury yields also slipped.

Investors are worried that the potential for tariffs after President-elect Donald Trump re-enters the White House next week could stoke inflation and limit the Fed's ability to lower rates to a greater extent.

Non-yielding bullion is considered a hedge against inflation, although higher rates diminish its appeal.

However, the uncertainties around Trump's tariffs and trade policies for the global economy and their potential impact on growth are likely to sustain safe-haven demand for gold, said Zain Vawda, market analyst at MarketPulse by OANDA.

Spot silver firmed 1% to $30.23 per ounce, platinum rose 0.4% to $938.70, and palladium added 2% to $960.25.