A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)
Riyadh - Mohammed al-Mutairi
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Peak Selling Season of Saudi Shemagh
A seller displays dozens of shemaghs, as sales reach their peak at the end of Ramadan. (Asharq Al-Awsat)
Experts in the manufacturing and import of the Saudi shemagh revealed that this traditional dress has reached the highest annual sales season, recording sales estimated at about 900 million riyals annually.
They pointed to new consumer trends, especially among the younger generation, as a number of international brands have joined the race to acquire the biggest share of the market.
The shemagh is a traditional garment for men in the Arabian Gulf region and some Arab regions in Iraq, Jordan, Syria and Yemen, where it is considered part of the culture men’s clothing, whether at work or during social events and others.
In remarks to Asharq Al-Awsat, CEO of Al-Imtiaz Company Ltd., Fahd bin Abdulaziz Al-Ajlan, said that the volume of the shemagh market ranged between 700 and 900 million riyals annually.
He added that between 9 and 11 million shemaghs and ghutras were sold annually, stressing that the percentage of sales during Eid al-Fitr season and other holidays represented nearly 50 percent of the annual sales volume.
Regarding market and consumer trends, Al-Ajlan indicated that the majority of consumers of the shemagh and ghutra belonged to the young generation born between 1997 and 2012.
He noted that international brands, such as Pierre Cardin, S.T. Dupont, Cerruti 1881 and others, have joined the shemagh and ghutra market, contributing to raising the quality and specifications of the product.
For his part, Nasser Al-Hamid, manager of a shemagh shop in Riyadh, explained that the sales increase in the last ten days of Ramadan every year and reach their peak in the last two nights before Eid al-Fitr.
Hamid also noted that the market has witnessed, in the last ten years, a variety of new designs and brands, paving the way for a greater competition between companies in terms of quality and price, and in marketing campaigns.
Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)
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US, Mexico Finish First Round of Trade Agreement Talks
Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)
The United States and Mexico completed a first round of bilateral trade talks Friday, focused on revising the North American Free Trade Agreement in light of pressure from President Donald Trump's tariff policies.
The US-Mexico-Canada Agreement (USMCA) is due for its first review since coming into force in 2020, with talks starting Wednesday led by Mexico's Economy Secretary Marcelo Ebrard and US Deputy Trade Representative Jeff Goettman joining Thursday.
"We talked about rules of origination, the automotive sector, how we compete with countries in Asia and other parts of the world, and how we can integrate more," Ebrard said in a statement.
The Mexican delegation in a statement described the talks as being held "in a constructive environment and with frank dialogue" that ended with a "net positive."
The US Trade Representative Office said in a statement the US approached the talks with the goals of reducing Washington's trade deficit with Mexico and strengthening US supply chains.
"During this first round, negotiators discussed priority issues related to automotive rules of origin, steel and aluminum, and economic security," the statement said.
"The United States and Mexico recognize the importance of advancing cooperation to enhance regulatory compatibility to strengthen sectors, including medical devices, pharmaceuticals, cosmetic products, and others."
Trump has threatened to pull out from the USMCA, arguing it doesn't benefit the US economy, casting a shadow over the talks.
The USMCA is critical for Mexico, as the United States accounts for more than 80 percent of its exports.
With the first round complete, future rounds of negotiations will take place in Washington in June, then Mexico City in July.
EU's Six Biggest Economies Agree on Capital Markets Supervisionhttps://english.aawsat.com/business/5278474-eus-six-biggest-economies-agree-capital-markets-supervision
German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)
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EU's Six Biggest Economies Agree on Capital Markets Supervision
German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)
Finance ministers from the EU's six biggest economies (E6) agreed among themselves on Friday to support more centralized capital markets supervision, in a breakthrough crucial for deeper integration of Europe's fragmented capital markets.
The push for financial market players to be supervised at a European Union rather than national level is part of the EU's plan to redirect trillions of its citizens' savings, now idling in bank deposits, into more productive investment in Europe.
Access to such a large amount of capital for investment would boost the bloc's chances of competing against the United States and China.
Supervision of significant market infrastructure would be gradually transferred to the European Securities and Markets Authority in Paris, the finance ministers of Germany, France, Italy, Poland, Spain and the Netherlands agreed after they met in Berlin on Thursday to discuss the issue.
The issue of handing over local powers to supervise trading platforms, central counterparties and central securities depositories to the EU has been difficult because of vested national interests and opposition from Ireland and Luxembourg and initially Germany.
But the issue will be decided by qualified majority, meaning it needs the support of 15 out of the EU's 27 countries representing 65% of the bloc's population.
With the backing of the E6, which represent 70% of the EU's population, centralized supervision is now much more likely to happen.
"The fact that the EU's six largest economies are prepared to leave national self-interest behind and move forward together is an important signal for the entire European Union," German Finance Minister Lars Klingbeil said in a statement.
ACCOUNTABILITY MUST BE ENFORCED
The European Commission presented its plan to better integrate EU capital markets in December, and Germany's finance minister has said he expects the package to be adopted by the end of this year.
"In an uncertain international context, Europe needs deeper and more integrated capital markets," Spanish Finance Minister Carlos Cuerpo said. "This joint positioning is a decisive step towards a true savings and investment union."
ESMA's governance structure must be set up efficiently: expertise, supervisory and market experience, and geographical balance should play a decisive role, the ministers agreed in a paper seen by Reuters on Friday.
In addition, costs must be kept under control and accountability must be enforced, the joint paper said about the ESMA.
However, the paper said that in their current form and size, German trading venues would currently not be subject to mandatory European supervision authorities over trading in crypto-assets, and to reduce barriers to cross-border funds to help company financing, according to the paper.
Saudi Fintech, Cloud Services Drive Technology Sector Profit Boomhttps://english.aawsat.com/business/5278351-saudi-fintech-cloud-services-drive-technology-sector-profit-boom
Saudi Fintech, Cloud Services Drive Technology Sector Profit Boom
Women walk through the lobby of Elm Co. in the Saudi capital Riyadh. (Public Investment Fund)
Saudi Arabia’s listed technology companies posted strong first-quarter earnings for 2026, reflecting a structural shift in the sector as digital revenue growth converged with tighter control over operating and administrative costs.
Combined net profits for companies in the Kingdom’s applications and technology services sector rose 16% year-on-year to SAR1.07 billion ($285 million), up from SAR920 million ($245 million) in the same period last year. The performance underscores the sector’s growing ability to diversify revenue streams across cybersecurity, digital identity, managed services and cloud computing.
Analysts said the gains were fueled by the continued expansion of Saudi Arabia’s digital transformation programs, the rapid maturation of the fintech industry, infrastructure development and rising investment in cloud computing.
Strong corporate demand is also pushing the Kingdom’s information and communications technology market toward what analysts expect will exceed $100 billion in spending by 2031.
The sector includes five listed companies, four of which reported profits during the quarter: Elm Co., Solutions by stc, 2P Perfect Presentation and Al Moammar Information Systems Co. Bahr Al Arab Systems Information Technology continued to post quarterly losses through the end of the first quarter.
Elm accounted for roughly 61% of total sector profits, recording the highest net income at SAR656 million in the first three months of the year, up 32% from SAR495 million a year earlier. The company benefited from a 31% rise in revenue to SAR2.47 billion, in addition to lower research and development expenses.
Solutions by stc ranked second, posting profits of SAR370 million, up 2.5% from SAR361 million in the same quarter last year. The increase was supported by lower operating costs, reduced selling and administrative expenses, and a 6.3% rise in revenue to SAR3 billion.
2P Perfect Presentation came third in sector profitability, reporting net income of SAR33.06 million, up 2.4% from SAR32.28 million a year earlier. The company cited strong performance across most operating segments, particularly call center services, while revenue climbed 14% to SAR330.08 million.
The Saudi Data and AI Authority's (SDAIA) "Hexagon" data center, the largest government data center in the world. (SPA)
Five drivers behind the growth
Financial analyst Nasser Al-Rashid told Asharq Al-Awsat that the strong earnings growth reflects the intersection of several operational and strategic factors centered on five main pillars.
The first is sustained government and private-sector spending on digital transformation, which remains the sector’s largest growth engine, he explained. As government agencies and major corporations expand automation and strengthen digital infrastructure, demand has increased for technology solutions, data management, cybersecurity and cloud services, creating stable long-term revenue streams for companies with major public-sector contracts.
The second pillar is the rapid development of the fintech sector, which has accelerated adoption of digital payments, e-services, digital identity tools and smart business platforms. This has directly boosted recurring revenues and profit margins for technology and applications companies, Al-Rashid said.
Third, companies have improved operational efficiency, as reflected in lower operating and administrative costs and reduced sales and distribution expenses. This demonstrates that firms are not relying solely on revenue growth but are also improving profitability through tighter cost controls, he added.
The fourth driver is the expansion of cloud computing and data center services, among the industry’s most profitable activities, he continued.
Rising demand from businesses for cloud hosting, data analytics and managed services has increased returns on technology contracts as institutions reduce reliance on traditional infrastructure.
The fifth pillar is the diversification and quality of revenue streams, said Al-Rashid.
Major companies are no longer dependent on a single source of income but now generate returns from digital operations, cloud solutions, business platforms, call center services and systems management, reducing exposure to operational volatility and improving earnings sustainability, he went on to say.
Market analyst Tariq Al-Ateeq told Asharq Al-Awsat that Elm’s contribution of more than 60% of sector profits highlights the strength of its innovation-driven model built around government digital services, data and specialized solutions.
He added that the Saudi technology sector has formally entered a phase of “sustainable operational growth,” supported by Vision 2030, rapid digitalization and rising spending on technology infrastructure.
Al-Ateeq expects technology and applications companies to maintain solid earnings and revenue growth in coming quarters, albeit at a more balanced pace than in previous years.
The sector’s long-term expansion will continue to be driven by government digital transformation spending, the rapid growth of cloud and artificial intelligence services, and rising private-sector demand for automation, he remarked.
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