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Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
    Tabuk - Asharq Al-Awsat 
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Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)
The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) sign a Memorandum of Understanding with OXAGON to cooperate in the implementation of the Future Factories Program. (Asharq Al-Awsat)

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed a Memorandum of Understanding (MoU) with OXAGON, home to advanced and clean industries in NEOM, to cooperate in the implementation of the Future Factories Program.  

The Future Factories Program aims to analyze factories' operational readiness by assessing their Smart Industry Readiness Index (SIRI) and transform over 4,000 factories into advanced and higher-quality industries through automation and enhanced efficiency, raising the sector's global competitiveness.  

The MoU aims to develop legislation, incentives, and enablers to support the Program to remove barriers to industrial innovation in the Kingdom.  

Experts from all parties will assess the industry's readiness and explore ways to integrate advanced manufacturing technologies, such as artificial intelligence, 3D printing, and the Internet of Things (IoT), into manufacturing industries.  

Deputy Minister of Industry and Mineral Resources Osama al-Zamil said that the agreement laid the groundwork for implementing the Future of Factories.  

Zamil explained that the Ministry seeks to enhance the competitiveness of local industries and create significant job opportunities in critical areas for the Saudi youth in line with the goals of Vision 2030.  

"We are promoting local manufacturing, enhancing current factories according to world-class standards, and establishing state-of-the-art manufacturing facilities that guarantee higher efficiency and increased productivity." 

NEOM and OXAGON are pioneers leading the way in cutting-edge technology and industry and are ideally placed to inspire future industries and the next generation of talent in Saudi Arabia.  

NEOM CEO Nadhmi al-Nasr said the memorandum represents a significant milestone in realizing the signatories' shared ambitions to sustainably future-proof industries and drive economic diversification across the country.  

OXAGON represents the future of advanced clean industries and will be powered by 100 percent renewable energy.  

Nasr explained: "Together with the Ministry of Industry and Mineral Resources and MODON – whom we enjoy close relationships with – we will deploy our considerable collective resources and talents to develop such industries for the Kingdom and the world."  

OXAGON CEO Vishal Wanchoo sressed that OXAGON is continuously seeking new ways to transform the future of manufacturing and create a sustainable industrial blueprint for the world.  

"By mixing the state-of-the-art approaches from Industry 4.0, utilization of solely renewable energy and circular economy principles, OXAGON will enable industries of the future to avoid environmental degradation and preserve efficiency and profitability," said Wanchoo.  

He noted that the Advanced and Clean Manufacturing Improvement Tool would play a critical role in supporting the local industry through this important transition.  

During the next several months, OXAGON and MODON will form a joint working group to develop an action plan to implement the programs.  

Efforts will be devoted to developing a policy program and work models to create future industries. 

Launched in November, OXAGON is a new paradigm where technology, industry, and people come together harmoniously with nature.  

OXAGON will be home to NEOM's advanced and clean industries, a research and innovation hub, an automated and integrated port, a supply chain network, and several thriving communities. 

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Business

Chevron Eyes Argentina, Mediterranean for Global LNG Growth, Deal with India

Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
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Chevron Eyes Argentina, Mediterranean for Global LNG Growth, Deal with India

Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare

Chevron is looking to expand its global gas portfolio from Argentina to the Mediterranean to meet growing demand from buyers concerned about energy security due to the crisis in the Middle East, President of Global Gas Freeman Shaheen said.

Global gas markets have experienced two major disruptions in the past four years as the Ukraine war in 2022 and the Iran conflict this year cut off supplies from top producers Russia and Qatar and drove liquefied natural gas prices higher.

"What we're seeing from this crisis is that it just reinforces the need for diversity — diversity of supply and diversity of different contracting structures," Shaheen said, adding, "and not leaving yourselves susceptible to a spot market that's not really as liquid ⁠as crude and ⁠products."

Chevron will have about 20 million metric tons per annum of LNG supply capacity comprising 16 million tons of net gas production from its projects and 4 million tons contracted from the US Gulf Coast that commenced in February this year and will ramp up over the next few years in line with agreements.

"We're looking to continue to expand that portfolio," Shaheen said in an interview on the sidelines of the Gastech conference in Bangkok.

"There's great prospects out of ⁠Argentina with the development of crude and gas in that marketplace. The East Mediterranean is a very exciting area for us as well."

He also sees further opportunities in Australia and Africa, provided the projects offer the right capital, fiscal and regulatory terms, adding that the US-Iran war has reinforced the need for a diversified gas portfolio.

Shaheen did not elaborate on where in Africa, Australia or the eastern Mediterranean the company might expand. In June, Chevron won approval to become operator and lead gas exploration in an offshore block off Greece, expanding its presence there.

However, these opportunities have to be weighed against Venezuela, where Chevron and its partners would invest more than $7 billion to more than double oil output by 2031.

"I've been hearing that ⁠Venezuela has a lot ⁠of capital that's going to have to go that way coming up," Shaheen told Reuters.

"Everything is going to get analyzed in our project queue and it gets ranked."

Chevron already has significant operations in Australia, running the country's largest LNG project, Gorgon, and the Wheatstone project. A large portion of its Australian supply goes to Japan.

"Japan continues to be our home base, and we have nice structural opportunities into Singapore," Shaheen said, adding that China and Korea remain attractive markets.

In Singapore, Chevron inked a deal in 2024 to supply Sembcorp Industries up to 0.6 million tons per annum of LNG from 2028.

LNG buyers are also changing the way they secure supply, he said, with state-backed importers increasingly willing to sign contracts with portfolio suppliers rather than relying on government-to-government arrangements.

"I'd love to have a deal in India. It's just they're very, very headline-price driven," Shaheen said. "I think India is still evolving. There's going to be great opportunities over time."

Business

Maersk, Hapag-Lloyd Resume Further Services Through Suez Canal

FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
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Maersk, Hapag-Lloyd Resume Further Services Through Suez Canal

FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo

Shipping group Maersk said on Monday it will resume four further of its container services with Germany's Hapag-Lloyd through the Suez Canal, as they gradually ⁠return to using the ⁠shortcut between Asia and Europe.

The Asia-Europe trade corridor through the Suez Canal was abandoned ⁠by most shippers earlier this decade after attacks in the Red Sea by Yemen's Houthis, forcing ships to take the much longer trip around Africa's Cape of Good Hope.

The two ⁠companies ⁠in early July and later again in August announced that they would resume some services connecting Asia, the Mediterranean and Europe through the Suez Canal.

Business

Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)
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Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)

Goldman Sachs and J.P. Morgan now expect the US Federal Reserve to raise interest rates this week after a string of stronger-than-expected inflation readings challenged hopes that price pressures would continue to ease without additional policy tightening.

The Wall Street banks joined a growing number of forecasters turning more hawkish after data last week showed ‌US consumer ‌and producer prices rose more than expected in August, ‌while ⁠oil prices climbed ⁠above $100 a barrel due to renewed hostilities in the Middle East, reported Reuters.

In a note on Friday, Goldman Sachs abandoned its previous call for rates to remain unchanged and now expects a 25-basis-point increase at the US Fed's September 15-16 meeting. J.P. Morgan, meanwhile, forecasts quarter-point hikes in both September and December.

The latest data have revived concerns that progress toward the Fed's ⁠2% inflation target could stall after months of moderation.

"We ‌think that the FOMC will be ‌reluctant to surprise," Goldman Sachs economist David Mericle said.

J.P. Morgan struck a similarly ‌hawkish tone following the inflation reports.

"The week that saw rising ‌bond yields and energy prices and a firm enough set of inflation readings to make a rate hike at next week's FOMC meeting more likely than not," J.P. Morgan economists led by Michael Feroli said in a note.

The outlook ‌for further Fed tightening will be in focus this week as policymakers conclude their meeting on Wednesday, ⁠while investors ⁠also watch the Bank of Japan for policy signals.

J.P. Morgan said the latest inflation data cast doubt on a sustained disinflation trend, leading it to forecast another Fed rate hike this year and raise its estimate of the long-run policy rate to 3.25%.

Markets are pricing in an 87% chance of a quarter-point Fed rate hike this month, up from about 70% before the latest inflation data, with another increase expected in December, according to CME's FedWatch Tool.

In a separate note on Sunday, Goldman Sachs said it still expects two Fed rate cuts in 2027, though later than previously forecast, as it sees this week's expected hike as driven more by market pricing than inflation fundamentals.