IOGP Looks Forward to Working with OPEC to Ensure Global Energy Security

Oil tanks in the port of Ras Tanura in the eastern region of Saudi Arabia on the Arabian Gulf (Aramco website)
Oil tanks in the port of Ras Tanura in the eastern region of Saudi Arabia on the Arabian Gulf (Aramco website)
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IOGP Looks Forward to Working with OPEC to Ensure Global Energy Security

Oil tanks in the port of Ras Tanura in the eastern region of Saudi Arabia on the Arabian Gulf (Aramco website)
Oil tanks in the port of Ras Tanura in the eastern region of Saudi Arabia on the Arabian Gulf (Aramco website)

For three years now, energy security has been the most prevalent issue for the global economy. The world blames the high prices of oil and gas and accuses the sector of causing record-high inflation rates.

Curbing high inflation requires increasing interest rates, which drags the global economy toward recession.

Governments of oil-producing countries have long defended their vision through the Organization of the Petroleum Exporting Countries (OPEC) and its allies in OPEC+. They have warned of supply shortages and the repercussions of rapid transition towards renewable energy.

The International Association of Oil & Gas Producers (IOGP), which represents private and public energy companies around the world, had agreed with the general vision of OPEC.

IOGP Executive Director Iman Hill affirmed that members of the association are preparing to work with OPEC in all fields during the coming period and added that a lack of investment may lead to supply disruptions and price fluctuations.

“It would be good for us to have cooperation with (OPEC) for the future in general and energy security in particular. We already have common denominators, and we look forward to working together,” Hill told Asharq Al-Awsat in Cairo.

IOGP members, integrated energy companies, national oil companies, independent upstream operators, service companies, and industry associations operate around the globe, supplying over 40% of the world’s oil and gas demand.

Saudi Aramco, the UAE’s ADNOC, Iraq’s Basrah Gas Company, the Italian Eni, the UK’s BP, the US’ Exxon Mobil, and the French Total are all members of the IOGP.

Efforts spent by IOGP companies are inseparable from the constant efforts of OPEC and its allies to maintain market stability, especially during challenging periods like when the coronavirus pandemic struck the market and disrupted demand.

With demand recovering in post-pandemic days, OPEC warned that a lack of investment witnessed during the pandemic coupled with an acceleration towards energy transition had resulted in a shortage in global stocks.

Accordingly, OPEC decided to cut production by about two million bpd from October 2022 until the end of 2023 while considering any changes in the market.

“Many believe that the issue of energy security threatens the transition to renewable energy,” said Hill, adding that it shouldn’t if a holistic approach is applied.

“In the near term, our priority should be to get more energy to the market before planning our next steps,” noted the executive.

“When the market rebalances, policy makers must make decisions based on supply and demand, with carbon emissions in mind,” she emphasized.

“The focus should be on reducing emissions rather than ideological distancing from fossil fuels,” explained Hill.

“This will allow us to benefit from oil and gas resources to ensure global energy security,” she noted.

Hill added that the energy transition will remain a critical issue for the sector and industry for the foreseeable future.

“Nevertheless, the way we approach this important topic must be sustainable and sensible,” she stressed, pointing out that “focus should be on reducing emissions.”

“We must adopt a comprehensive approach through modern technology, and even adapt it to reduce emissions.”

The development of renewable energy sources remains critical to the energy transition, underscored Hill. She, however, said that it must be done in a way that allows all solutions with potential to reduce emissions to play an active role.

Hill believes that there is a great opportunity for Gulf, Middle East, and North African countries to bridge the gap in energy demand, especially amid the policy of diversifying supplies away from Russian gas and oil.

“The Middle East and North Africa region will be a dominant region in terms of production for decades to come,” stressed Hill.

“Oil and gas companies in the Middle East are exploring sustainable alternatives to current power generation methods.”

“They are diversifying their assets and increasing financing for the development of renewable technologies such as solar energy, wind energy, nuclear energy, hydropower, and bioenergy,” she added.

Hill pointed to the “Middle East Green Initiative” launched by Saudi Crown Prince Mohammed bin Salman in November 2022. The initiative constitutes the first regional alliance of its kind aimed at reducing carbon emissions in the region by more than 60%. It also seeks to provide huge economic opportunities for the region.

Planting 50 billion trees across the region, restoring 200 million hectares of degraded land are also part of the initiative.

“We look forward to increasing the number of the association’s members, who number about 90 private and public companies, by 5% annually,” Hill told Asharq Al-Awsat.

Hill revealed that discussions are underway with Egyptian companies such as the Egyptian Natural Gas Holding Company (EGAS) and Engineering for the Petroleum and Process Industries (ENPPI) to join the IOGP.



Riyadh Global Medical Biotechnology Summit Concludes with Agreements Exceeding SAR5 Billion

The fourth edition of the Riyadh Global Medical Biotechnology Summit 2026 concluded on Wednesday. (SPA)
The fourth edition of the Riyadh Global Medical Biotechnology Summit 2026 concluded on Wednesday. (SPA)
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Riyadh Global Medical Biotechnology Summit Concludes with Agreements Exceeding SAR5 Billion

The fourth edition of the Riyadh Global Medical Biotechnology Summit 2026 concluded on Wednesday. (SPA)
The fourth edition of the Riyadh Global Medical Biotechnology Summit 2026 concluded on Wednesday. (SPA)

The fourth edition of the Riyadh Global Medical Biotechnology Summit 2026 concluded on Wednesday with more than 40 agreements, initiatives and announcements unveiled through partnerships, programs and projects with a combined estimated value exceeding SAR5 billion.

The initiatives aim to advance biotechnology localization and strengthen its healthcare and economic impact, the Saudi Press Agency said.

The summit drew delegations and experts from more than 57 countries and more than 200 speakers. The total number of visitors and registrants exceeded 15,000.

Its program included more than 80 sessions, along with seven high-level executive sessions, covering artificial intelligence, genomics, vaccines, biomanufacturing, advanced therapies, investment, and talent development.

The Life Sciences Innovation Forum attracted five specialized investment funds that expressed readiness to invest more than $120 million in promising opportunities and companies.

Meanwhile, the Next Generation Biotechnologist Forum focused on empowering early-career researchers and scientists.

The accompanying exhibition spanned more than 6,000 square meters and featured more than 120 sponsors and exhibitors, including international pavilions from Spain, China, Japan, Germany, the United States of America, and the Republic of Korea.


Goldman Sachs Sees October Fed Hike after Hawkish Signal

FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, US, May 1, 2020. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, US, May 1, 2020. REUTERS/Kevin Lamarque/File Photo
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Goldman Sachs Sees October Fed Hike after Hawkish Signal

FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, US, May 1, 2020. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, US, May 1, 2020. REUTERS/Kevin Lamarque/File Photo

Goldman Sachs now expects the Federal Reserve to raise interest rates by another quarter point in October, making it one of the first major Wall Street banks to forecast consecutive rate hikes following the US central bank's hawkish signal on Wednesday.

The call represents a reversal of Goldman's earlier view that the US Fed had completed its tightening cycle after September's quarter-point increase.

Goldman said the Fed's updated rate projections, which showed a strong ⁠majority of policymakers ⁠expecting at least one more increase this year, pointed to a "two-hike baseline" for 2026.

The brokerage said October was the most likely timing for the next move because policymakers framed further tightening as supporting "a timelier return" to the Fed's 2% inflation target.

The ⁠Fed earlier on Wednesday raised interest rates by 25 basis points to a 3.75%-4.00% range.

Goldman said the meeting was more hawkish than expected, citing policymakers' rate projections, an upward revision to the neutral interest rate and Chair Kevin Warsh's repeated description of the move as having only "removed a dose of accommodation."

Traders see roughly 50% odds of another quarter-point Fed rate hike in October, according to CME Group's ⁠FedWatch tool, ⁠up sharply after policymakers signaled further tightening could be needed.

Goldman's revised forecast leaves Bank of America Global Research as the only other major brokerage expecting a more aggressive tightening path, with BofA projecting rate hikes in October and December, Reuters reported.

Markets will also be watching policy decisions from the Bank of England, due later in the day, and the Bank of Japan on Friday for further clues on the global interest-rate outlook.


Saudi Money Market Funds Face Investment Reshuffle

The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
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Saudi Money Market Funds Face Investment Reshuffle

The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)
The Saudi Capital Market Authority’s headquarters in Riyadh (Asharq Al-Awsat)

Saudi money market funds are entering a new phase of liquidity management and portfolio restructuring as new rules cap foreign investments at 5% of net asset value.

Fund managers will have to balance returns, liquidity and risk more carefully.

The rules do not require funds to exit existing foreign investments immediately. The Capital Market Authority has given managers transition periods to bring portfolios into compliance. This allows deposits and murabaha transactions to mature before funds are reallocated, avoiding early exits that could hurt returns or disrupt liquidity management.

The measures also require foreign counterparties to hold investment-grade credit ratings, strengthening protection against overseas exposure risks.

Financial analysts say the main impact may not be an immediate shift in capital flows. Instead, the rules are likely to reshape money market fund portfolios and how managers allocate liquidity between domestic and foreign instruments, based on returns, liquidity and credit quality.

As investment options in the Saudi market expand, the restructuring could direct greater attention toward domestic liquidity instruments. The transition periods will allow managers to adjust gradually, retain flexibility over existing investments and reduce the risks of rapid reinvestment.

Investor protection

Financial analyst Abdullah Al-Jabali told Asharq Al-Awsat that the move was part of the Capital Market Authority’s efforts to regulate higher-risk investments and strengthen investor protection, particularly amid global market shifts and continued uncertainty over interest rates.

The decision seeks to reduce Saudi money market funds’ exposure to foreign investments and limit the impact of related volatility, he said. The timing and scale of interest-rate cuts in the coming years remain unclear.

Al-Jabali said the measures go beyond imposing a cap on foreign investments. They also tighten requirements governing the entities through which funds may invest, taking into account credit ratings, solvency and reliability. This would help reduce risk and safeguard investors’ money.

The rules also seek to prevent money market funds from concentrating investments in instruments or entities that could be difficult to exit when needed. This would strengthen liquidity and improve funds’ ability to respond to market changes, he said.

Al-Jabali expected further regulations to follow, potentially covering other foreign investments such as real estate funds, financing funds and foreign sukuk. The measures could also extend to funds’ private-equity investments outside the kingdom.

He said the changes reflected the authority’s efforts to reduce risks linked to some investment practices, strengthen the investment environment and protect investors in the Saudi market.

Financial analyst Tariq Al-Atiq told Asharq Al-Awsat that the decision was primarily intended to reduce risk, strengthen investor protection and impose greater discipline on the placement of liquidity outside the kingdom.

Money market funds typically invest in deposits, murabaha transactions and short-term sukuk. Financial companies affiliated with banks manage a large proportion of these funds, he said.

A fund valued in Saudi riyals does not necessarily hold all its investments inside the kingdom, Al-Atiq said. Some liquidity may be placed with Gulf or foreign banks in search of higher returns. The decision would reduce that exposure and return some liquidity to the domestic market.

Giving funds up to two years to comply takes into account the fixed maturities of deposits and murabaha transactions, he said. Early exits could hurt fund performance, while allowing foreign deposits to expire without renewal would support a gradual, orderly transition.

Gradual compliance

The Saudi Capital Market Authority has capped foreign investments by public money market funds at 5% of net asset value and given managers transition periods to bring existing holdings into compliance.

Under a circular sent to capital market institutions, managers of public money market funds whose foreign investments exceed 5% must comply with the cap within two years of the circular’s date.

The requirement also affects transactions made during the transition. Until compliance is achieved, managers must not make an investment or enter into or renew any transaction that would breach the limit.

Funds with foreign investments exceeding 20% of net asset value face a shorter deadline. Their managers must reduce that exposure to below 20% within six months of the circular’s date.

They must then continue reducing foreign investments until they reach the final 5% cap within the timeframe set by the circular.

The rules therefore set different paths based on the level of foreign exposure. Funds above the 5% cap have up to two years to comply, while those above 20% must first bring their exposure below 20% within six months.

The authority also required all foreign investments by public money market funds to be made with counterparties holding investment-grade credit ratings issued by licensed credit-rating agencies.

Managers whose funds hold foreign investments that do not meet this requirement must bring them into compliance within two years of the circular’s date.

The Capital Market Authority stressed that capital market institutions must comply with the circular, the Capital Market Law and its implementing regulations. It designated the Collective Investment Schemes Compliance Department to answer questions about the new requirements.