Saudi Arabia Completes First Phase of Privatizing Water Distribution

Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
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Saudi Arabia Completes First Phase of Privatizing Water Distribution

Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)

Saudi Arabia’s National Water Co. (NWC) has signed two deals worth SR714 million ($190 million) with firms in the private sector to operate water and environmental treatment services in the western and northern regions.

This move means that the Kingdom has completed the first phase of privatizing water distribution in accordance with the ninth program of its national water strategy.

Moreover, NWC announced on Wednesday that it has signed two contracts worth more than SR 1.59 billion ($423 million) with private-sector consortiums under its Long-Term Operation and Maintenance Contracts (LTOM) program to rehabilitate, operate and maintain six wastewater treatment plants in Makkah and Jeddah.

The company announced via its Twitter account that it awarded an LTOM contract worth 392 million riyals to the Saudi consortium of Thabat and Miahona to rehabilitate, operate and maintain two sewage treatment plants in Makkah Al Mukarramah for a period of 10 years.

The second 10-year LTOM contract, worth more than 1.2 billion riyals, was awarded to consortium of France’s Veolia and Saudi companies Awael and Civil Works Company (CWC) for four wastewater treatment plants in Jeddah.

Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli sponsored the signing ceremony of the contracts between NWC interim CEO Nemer bin Mohammed Al-Shebel and representatives of the Saudi-French consortium of Al Awael Modern Contracting Co., Suez, the Saudi-Spanish consortium of International Water Distribution Company (Tawzea), Alhaj Abdullah Ali Reza Company (HACO), and Spain’s Aqualia.

The Saudi-French consortium of Al Awael Modern Contracting Co. and Suez was awarded the SR 365 million ($97 million) management, operation, and maintenance (MOM) contract for the western cluster while second contract worth SR 349 million ($93 million) for the northern cluster was awarded to the Saudi-Spanish consortium of International Water Distribution Company (Tawzea), Alhaj Abdullah Ali Reza Company (HACO), and Spain’s Aqualia for the northern cluster, NWC announced on its twitter account.

The privatization contracts will contribute to boosting project implementation and help attract investments, said Al-Shebel.



Iran and Ukraine Loom over G7 as France Accommodates Trump

FILE PHOTO: A drone views shows the Evian Resort hotel overlooking Lake Geneva (Leman) where the 2026 G7 summit will take place in Evian-les-Bains, France, September 12, 2025. REUTERS/Denis Balibouse/File Photo
FILE PHOTO: A drone views shows the Evian Resort hotel overlooking Lake Geneva (Leman) where the 2026 G7 summit will take place in Evian-les-Bains, France, September 12, 2025. REUTERS/Denis Balibouse/File Photo
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Iran and Ukraine Loom over G7 as France Accommodates Trump

FILE PHOTO: A drone views shows the Evian Resort hotel overlooking Lake Geneva (Leman) where the 2026 G7 summit will take place in Evian-les-Bains, France, September 12, 2025. REUTERS/Denis Balibouse/File Photo
FILE PHOTO: A drone views shows the Evian Resort hotel overlooking Lake Geneva (Leman) where the 2026 G7 summit will take place in Evian-les-Bains, France, September 12, 2025. REUTERS/Denis Balibouse/File Photo

Wars in the Middle East and Ukraine are set to dominate next week’s Group of Seven summit, as host France crafts an agenda aimed at projecting unity and avoiding confrontation with US President Donald Trump.

The June 15–17 gathering in Evian-les-Bains, on the shore of Lake Geneva, brings together the leaders of France, Britain, Canada, Germany, Italy, Japan and the United States, alongside the European Union, Reuters said.

With Trump struggling to end a war that has disrupted the global economy, and frustrated with European allies he deems to have failed him in the Gulf and grown over-reliant on the US for their security needs, diplomats say crisis management will be the focus.

No breakthrough decisions are thus expected on key issues, which also include tackling global economic imbalances and sourcing critical minerals outside China.

The grouping, founded half a century ago, has traditionally addressed economic and geopolitical challenges with broad consensus. But that cohesion has frayed since Trump returned to the White House in 2025.

Having already shifted the dates to accommodate Trump's birthday plans for cage fighting on the White House lawn, French officials, like other recent summit hosts, have set ‌the bar low, suggesting it ‌will be a success if Trump just stays for the whole event, having left the 2025 ‌version ⁠early.

"Macron has gone ⁠out of his way to have an agenda that is designed to appeal to the sort of things President Trump wants," said Josh Lipsky, chair of international economics at the Atlantic Council.

TRUMP'S MOOD MAY DEPEND ON IRAN

The tempo may be dictated by events in the Middle East. A fragile ceasefire between the US and Iran is under strain, and securing even an interim accord that delays tackling harder issues such as Iran's nuclear program is proving arduous.

Trump wants Iran to reopen the Strait of Hormuz, a choke point for global oil and gas shipments. Tehran is demanding that the US end its blockade on Iranian ports and release frozen Iranian assets, and that Israel cease its attack on the Iranian-backed Hezbollah militia in Lebanon.

Diplomats say Trump’s mood may hinge on ⁠whether he can get an accord done before the summit. In recent months, he has lashed out at ‌some of the US's closest allies in NATO for their unwillingness to support his Gulf ‌campaign.

One senior diplomat from a G7 member said an accord might allow the group to put months of tension with the US behind them.

France has invited ‌Saudi Arabia, the United Arab Emirates and Qatar, all directly harmed by the war, to the summit along with Egypt, a key player ‌in mediation efforts.

EUROPEANS SEEK US RESET ON UKRAINE

Also invited is Ukrainian President Volodymyr Zelenskiy.

Negotiations to end Russia’s war in Ukraine have stalled and Zelenskiy wants a fresh push and is pressing for Europe to play a bigger role.

Zelenskiy frets that the conflict in Iran has diverted US attention. Meanwhile, dynamics on the battlefield have shifted, with Ukrainian drones striking deeper into Russian territory to cut battlefield supply lines and hobble energy infrastructure.

European diplomats see the summit as an opportunity to convince Trump ‌that US proposals for a deal have been too favorable to Moscow. European nations also want to signal that they are willing to engage Moscow while tightening sanctions and boosting military support for Ukraine, ⁠emphasizing that they believe Russia, not ⁠Kyiv, is blocking progress.

"What we are increasingly seeing is Europeans beginning to think about a life with less America,” said Victor Cha, head of geopolitics and foreign policy at Washington's Center for Strategic and International Studies.

GLOBAL IMBALANCES PUT SPOTLIGHT ON CHINA

French officials have dropped plans for a sweeping final communique, opting instead for narrower joint statements on areas such as critical minerals, migration and drug trafficking.

Asuka Tatebayashi, senior analyst at Mizuho Bank in Tokyo, said the Japanese government and its major companies had for more than a decade built up stockpiles of critical minerals and shown they could weather supply shocks.

“It's one of the few fields that the US actually comes to Japan for advice on,” Tatebayashi said.

She urged the G7 to agree to a substantive initiative on critical minerals such as minimum pricing, sharing of stockpiles or joint development projects, but said the differences among them were still wide.

Paris has used its presidency to push for action on global macroeconomic imbalances, a longstanding US concern, before Washington takes the chair of the G20 this year and the G7 next.

France has framed the issue as a shared responsibility in that China overproduces, the United States overconsumes and Europe underinvests.

Brazil, India, Kenya and South Korea have been invited to the G7 to join the discussion, while Macron has urged China to boost its own consumption.

"None of that solves the problem, but the first step is recognizing that you have one,” Lipsky said. “This has been discussed for years, but not collectively within the G7."


SpaceX on Cusp of Record IPO that Could Make Musk a Trillionaire

FILE - SpaceX's mega rocket Starship prepares for a test flight from Starbase in Boca Chica, Texas, Monday, Nov. 18, 2024. (AP Photo/Eric Gay, File)
FILE - SpaceX's mega rocket Starship prepares for a test flight from Starbase in Boca Chica, Texas, Monday, Nov. 18, 2024. (AP Photo/Eric Gay, File)
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SpaceX on Cusp of Record IPO that Could Make Musk a Trillionaire

FILE - SpaceX's mega rocket Starship prepares for a test flight from Starbase in Boca Chica, Texas, Monday, Nov. 18, 2024. (AP Photo/Eric Gay, File)
FILE - SpaceX's mega rocket Starship prepares for a test flight from Starbase in Boca Chica, Texas, Monday, Nov. 18, 2024. (AP Photo/Eric Gay, File)

SpaceX enters the final stretch Thursday before its expected trading on Wall Street as part of the biggest initial public offering in history, which could propel co-founder Elon Musk to trillionaire status.

The company will be the first out of the gates among the tech and AI giants eyeing public markets, with OpenAI and Anthropic expected to follow, as both have filed with regulators for their own market debuts, AFP said.

If all goes as expected, the space and rocket company co-founded by Musk in 2002 will begin trading on the Nasdaq exchange on Friday morning, with all eyes on how Wall Street will absorb the blockbuster IPO that could send tremors across global markets.

For high-profile companies, the first day of trading traditionally sees executives ring the opening bell to mark the start of the session -- in this case at New York's Times Square, home of the Nasdaq.

The IPO is Musk's biggest financial gamble yet, with his xAI company and the X social media platform (formerly Twitter) also included in the SpaceX offering after the multi-billionaire folded them into the company earlier this year.

The company will offer more than 555 million shares at an expected $135, placing SpaceX among Wall Street's most elite companies with a valuation of around $1.8 trillion.

The operation will become official on Thursday, including the pricing, with questions swirling over whether the company will raise its offer price amid reports that it attracted more than four times the available shares, according to Bloomberg.

Thirty percent of the shares will be reserved for retail investors, triple the amount that is typically allocated in IPOs, giving Musk fans a chance to fork over for a slice of the company.

- Data centers in space -

The success of the IPO rests squarely on investors' faith in Musk as a visionary entrepreneur. The tech multi-billionaire will serve as chief executive, chief technology officer and board chairman of the newly traded company.

The IPO is expected to mint thousands of new millionaires and many billionaires, with former and current employees -- and a long list of investors -- from the company's near quarter-century history looking to cash in.

The financials of the company are giving some on Wall Street pause, as the valuation largely depends on Musk delivering on promises worthy of science fiction, including putting data centers in space as well as people on Mars using as yet unproven technology.

While the company is growing fast -- revenue hit $18.7 billion in 2025 -- it is also losing money, producing a net loss of $4.9 billion.

In an extraordinary prediction, SpaceX's filing claims it can pull in over $28.5 trillion in revenue from its various markets.


ECB Set for 'Insurance Hike' as Iran War Fans Euro Zone Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
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ECB Set for 'Insurance Hike' as Iran War Fans Euro Zone Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo

The European Central Bank is all but certain to raise interest rates on Thursday in the hope of nipping higher inflation in the bud before a surge in energy costs triggered by the Iran war spreads more broadly across the euro zone economy.

The well-telegraphed move would come as inflation in the 21-country currency bloc is already above 3%, well in excess of the ECB's 2% target, and economic growth is very weak - a backdrop that has economists split over the case for tighter policy.

ECB policymakers, some of whom had already pushed for action in April, are nonetheless expected to press ahead, seeking to keep a lid on inflation expectations and to safeguard their credibility after being slow to react to a post-pandemic inflation spike in 2022.

"The ECB needs to hike ‌to protect credibility ‌and prevent inflation expectations from de-anchoring, but it is still operating around neutral rather ‌than ⁠moving decisively into restrictive ⁠territory," Annalisa Piazza at MFS Investment Management said.

Thursday's hike would be the first in nearly three years and take the ECB's benchmark deposit rate to 2.25% from 2.0%. Sources have told Reuters the ECB is unlikely to commit to further rate rises this week but financial markets expect another two over the coming year, with the next move seen as soon as September.

The bank's new economic projections are also likely to hint at further rate hikes.

"New staff projections are likely to be consistent with three hikes and (ECB President) Lagarde is unlikely to dismiss this as unreasonable," JPMorgan's Greg Fuzesi said. "That would give the meeting a ⁠clear hawkish feel, even if the communication is likely to be more consistent with ‌the next move in September."

AN 'INSURANCE HIKE' THAT UNDERPINS EXPECTATIONS

Several ECB watchers have ‌characterized the expected move as an "insurance hike" - a precautionary step that could be reversed if price pressures fade.

Supporting the case for action, ‌the ECB is likely to raise its quarterly inflation projections on Thursday, bringing them closer to its "adverse" scenario published ‌in March, which saw inflation peaking at 4.2% in the final quarter of this year before falling back sharply in 2027. Consumers, companies and financial investors have revised their own views about price hikes, although medium-term expectations remain close to the ECB target and far from their levels in the aftermath of Russia's invasion of Ukraine.

"Two hikes this year thus looks like a minimum," Anatoli Annenkov at Societe ‌Generale said. "Markets are likely to start pricing in the next hike in July... but we still think a majority of governors would prefer to wait for more ⁠data and new forecasts in September."

HEADING ⁠FOR A POLICY MISTAKE?

Not all economists are convinced. Some warn the ECB risks tightening into an economy that is already paying a high price for the Iran war.

Berenberg's Holger Schmieding said the ECB was "heading for a policy mistake" given a stagnant labor market and weak consumer demand.

"Amid the ongoing destruction of demand, the inevitable temporary surge in prices ... seems unlikely to turn into a protracted inflation problem that would need to be addressed by higher rates," he wrote in a note. A Reuters analysis of earnings call transcripts by euro zone companies showed just 40% of those outside the financial sector had raised prices or were planning to do so, roughly half the share seen as the Ukraine war pushed up energy prices in 2022.

Eric Dor, director of economic studies at France's IESEG School of Management, said the ECB was overestimating its ability to influence household and business expectations, particularly in a situation where inflation is driven by fuel costs rather than domestic demand. But the ECB has sharpened its messaging in support of tighter policy. Chief Economist Philip Lane - typically seen as an inflation "dove" - has said the Iran-related shock may be broader in scope than the Ukraine crisis, as it affects global energy markets rather than primarily Europe.