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Joint Saudi-German Investment for the Manufacture of Large Data Centers

CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
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Joint Saudi-German Investment for the Manufacture of Large Data Centers

CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)
CEO and partner of Legacy Technologies, Sem Köksal. (Asharq Al-Awsat)

German and Saudi investors signed partnerships to enhance critical security infrastructure with the aim to establish the first factory in the Middle East for the manufacture of technological equipment and supplies and the production of large data centers.

Sem Köksal, CEO and partner of Legacy Technologies, revealed his recent endeavors with the Saudi government and private institutions to establish a “next generation data center” company, in order to localize the manufacture data centers in Riyadh.

The project will make Saudi Arabia the first country in the Middle East to have this type of data centers and would allow it to export its products to countries around the world.

Legacy Technologies is a German company that specializes in highly secure modular data centers using unique cyber-security tools and highly advanced energy systems to build secure, energy-efficient and sustainable next-generation data centers.

Köksal told Asharq Al-Awsat that while partnerships have already been signed with Saudi investors, the company is looking to forge cooperation agreements with Saudi governmental and private agencies, to contribute to strengthening critical security infrastructure.

He revealed that the company has signed a contract worth $560 million with the Saudi Excellence Holding to establish a joint company in the Kingdom, which is expected to start operations in September 2022.

This will be “the nucleus of a global partnership to enter the global market from Saudi Arabia,” according to Köksal.

It will be the first company to manufacture data centers in the Kingdom by Saudi engineers, he added.

He also noted that Legal Technologies was working closely with Prince Sultan University to establish a center and academy for research and development, stressing the Saudi market was one of the most interesting markets in the region.

He remarked that several global companies are closely watching the development achieved by Saudi Arabia under Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense.

These companies are eager to enter the Saudi market, Köksal revealed, saying the matter is not about “if” but rather “when” they will join.

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Business

Gold Slips as Stronger Dollar Weighs; Focus on Fed Minutes and Gulf Tensions

FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra//File Photo
FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra//File Photo
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Gold Slips as Stronger Dollar Weighs; Focus on Fed Minutes and Gulf Tensions

FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra//File Photo
FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra//File Photo

Gold slipped for a second consecutive session on Tuesday as a stronger US dollar weighed, while investors awaited Federal Reserve meeting minutes and monitored tensions in the Gulf.

Spot gold fell 0.8% to $4,129.36 per ounce at 0918 GMT. Prices rose more than 2% last week, ending a four-week losing streak ‌following a ‌weak US jobs report.

US gold futures ‌for ⁠August delivery eased ⁠0.6% to $4,140.90, Reuters said.

The dollar rose 0.1% against a basket of currencies, making dollar-denominated gold costlier for overseas buyers.

"Today's price action appears to be more of a consolidation than a significant reversal of last week's positive sentiment, with traders waiting for the release of the latest FOMC minutes on Wednesday before ⁠making more decisive moves," said ActivTrades analyst Ricardo ‌Evangelista.

Traders will focus on ‌the Fed's views regarding inflation, labor market conditions and any potential divergence ‌of opinion from within the body, added Evangelista.

Investors now ‌see about a 58% chance of a US rate increase in September, according to the CME FedWatch tool.

Geopolitical tensions remained in focus as Trump renewed threats of military action against Iran, while ‌Iran's foreign minister said negotiations on a final peace deal will not continue unless Washington ⁠abandons its ⁠threats.

Crude prices edged higher on traders' nervousness about a lack of progress on peace talks.

Higher energy prices fueled inflation concerns, bolstering expectations of higher-for-longer US interest rates and weighing on non-yielding gold.

Meanwhile, China's central bank maintained gold purchases for a 20th straight month, with its reserves hitting 75.44 million fine troy ounces at the end of June, up from 74.96 million a month earlier.

Hong Kong launched a central clearing system for gold on Tuesday and also revived dollar gold futures trading.

Spot silver slipped 1.9% to $60.93 per ounce, platinum eased 0.1% to $1,630.23, and palladium rose 0.2% to $1,270.63.

Business

Shell Raises Gas Output Guidance for Q2, Flags Stronger Gas Trading Results

The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
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Shell Raises Gas Output Guidance for Q2, Flags Stronger Gas Trading Results

The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)
The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Reuters)

Shell slightly increased its guidance on Tuesday for its second-quarter integrated gas production, although output would be down sharply from the first three months of the year due to the impact of the Middle East conflict.

The ‌British oil ‌major also expects trading and optimization at its ‌integrated ⁠gas segment to ⁠be "significantly higher" in April-June than in the first quarter, the group said in a quarterly trading update.

Trading results at its chemicals and products unit, which includes the group's big oil trading desk, are expected to be in line with the previous quarter's strong performance.

Oil majors including Shell and its European peers BP and TotalEnergies ⁠reported strong oil trading in the first quarter, ‌benefiting from price volatility due to ‌the US-Israeli war with Iran.

Shell guided for its integrated gas output ‌in the April-to-June period to be about 610,000 to 650,000 barrels ‌of oil equivalent per day, down around 30% from the 909,000 boed it produced in the first quarter.

It previously expected a range of 580,000 to 640,000 boed.

Production at Shell's Pearl gas-to-liquids plant in Qatar ‌was halted in March after an attack on Ras Laffan Industrial City damaged one of the facility's two ⁠trains. Shell ⁠has said repairs could take about a year.

About 20%, or 550,000 boed, of Shell's oil and gas production comes from the Middle East, with around 10% of that Qatar-related.

Shell also forecast a $1 billion to $6 billion working-capital inflow in the second quarter, compared with an $11.2 billion outflow in the first quarter, reflecting the impact of volatility in commodity prices. Working capital is a liquidity measure of current assets minus liabilities.

Shell guided for higher indicative refining margins of about $20 per barrel and chemicals margins of about $240 per ton in the second quarter, although it said the realized margins were lower than those levels due to market dislocations.

Business

Oil Prices Gain as Focus Shifts to Supply Recovery and Demand

FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
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Oil Prices Gain as Focus Shifts to Supply Recovery and Demand

FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)
FILE - Iraqi oil workers at an oil installation at Beiji in northern Iraq Tuesday, February 29, 2000. (AP Photo/Jassim Mohammed, File)

Oil prices edged higher on Tuesday as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.

Brent crude futures gained 85 cents, or 1.2%, to $72.84 a barrel, while US West Texas Intermediate crude rose 74 cents, or 1.1%, to $69.29 a barrel as of 0645 GMT, after settling down at around pre-Iran war levels on Monday.

"The steps towards recovery in supply have eased the immediate risk premium, but the market remains wary of putting too much faith in the ‌stability of ‌the current truce given the on again-off again nature of US-Iran relations," ‌said ⁠Tim Waterer, chief market ⁠analyst at KCM Trade.

"We will be watching for early signs of demand response, particularly from China. The market has priced in a lot of the positive supply news, so the next leg in oil prices will depend on whether physical reality matches the optimistic headlines."

President Donald Trump said on Monday the US would either reach a deal with Iran or "finish the job," renewing his threat of military action as Tehran projects defiance following the funeral of former Supreme Leader Ali ⁠Khamenei.

Investors have been keeping a close eye on talks between the US ‌and Iran over the fate of shipping through ‌the Strait of Hormuz while tracking the recovery in Gulf oil exports.

On Monday night, Iran's Revolutionary Guards ‌fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing ‌two US officials. The commercial ships suffered significant damage but had no casualties, the report said.

Despite the recent surge in strait ‌activity, oil flow recovery is proving slower than expected, ANZ analysts said in a note.

"The initial rebound in tanker transits through the Strait of ⁠Hormuz has stalled, ⁠with vessel crossings remaining in single digits and no sustained recovery evident," they said.

"While the interim US-Iran agreement has reduced immediate geopolitical risks, shipping operators remain cautious, limiting the speed at which crude exports can return to normal levels."

The Organization of the Petroleum Exporting Countries and its allies including Russia agreed on Sunday to further increase output targets by 188,000 bpd from August, on top of similar increases for June and July.