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NEOM Established as Closed Joint-Stock Company Owned by Saudi Sovereign Wealth Fund

NEOM is established as a closed joint-stock company owned by the Saudi Sovereign Wealth Fund. (SPA)
NEOM is established as a closed joint-stock company owned by the Saudi Sovereign Wealth Fund. (SPA)
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NEOM Established as Closed Joint-Stock Company Owned by Saudi Sovereign Wealth Fund

NEOM is established as a closed joint-stock company owned by the Saudi Sovereign Wealth Fund. (SPA)
NEOM is established as a closed joint-stock company owned by the Saudi Sovereign Wealth Fund. (SPA)

The world’s future destination for dreamers and innovators has obtained the necessary approvals from authorities in Saudi Arabia to establish a closed joint-stock company under the name NEOM to develop the project that is set to be the most ambitious on earth.

The newly-established entity is fully owned by the Public Investment Fund, the sovereign wealth fund of Saudi Arabia and is responsible for achieving NEOM’s vision, which is to be the land of the future, where the greatest minds and best talents are empowered to embody pioneering ideas and exceed boundaries in a world inspired by imagination.

In order to achieve NEOM’s vision, the company will develop a new area in the Northwest of Saudi Arabia equipped with all elements to make it the best place to live and work; and a leading investment destination.

This area will be the land of the future that will incubate human genius in search for solutions key challenges facing humanity.

NEOM will have new cities with extensive infrastructure that includes a network of airports, an advanced seaport, industrial areas, as well as creative and innovation centers to unlock the potential of a knowledge-based economy, and a range of world-class tourist destinations.

It is designed as an eco-friendly environment that caters for sustainability and livability.

The significant change in the legal status of NEOM will also allow the company to create 16 key economic sectors that will put it on the global investment map, which includes the future of energy, water, tourism, media, health and well-being, sport, food, mobility, biotech, manufacturing and livability.

Nadhmi Al-Nasr, will serve as the CEO of NEOM, while the 16 sectors will be spearheaded by leading international executives and experts in their fields.

Al-Nasr is a leading Saudi executive with a track record of developing mega projects including Shaybah oilfield, a giant deposit located at the heart of the Empty Quarter desert, as well as King Abdullah University for Science and Technology (KAUST).

Commenting on this milestone, he said: “The new entity will have a unique and historical role to play as it will be responsible for developing a new global destination from scratch on a huge area, and a futuristic civilization that is based on sustainability and livability.”

He added: "All this aims to turn NEOM into a global center for attracting investment, knowledge, innovation and technology in order to compete with all economic capital cities.”

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Business

US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.
The Commerce Department reported that the nation's gross domestic product — the nation's total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year, The Associated Press reported.
Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment.
The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target. The central bank’s favored inflation gauge — the personal consumption expenditures index, or PCE — rose at a 2.5% annual rate last quarter, down from 3% in the first quarter of the year. Excluding volatile food and energy prices, so-called core PCE inflation grew at a 2.8% pace, down from 3.7% from January through March.
The US economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Fed carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation as measured by the consumer price index has tumbled to 2.5%.
Despite the surge in borrowing rates, the economy kept growing and employers kept hiring. Still, the job market has shown signs of weakness in recent months. From June through August, America's employers added an average of just 116,000 jobs a month, the lowest three-month average since mid-2020, when the COVID pandemic had paralyzed the economy. The unemployment rate has ticked up from a half-century low 3.4% last year to 4.2%, still relatively low.
Last week, responding to the steady drop in inflation and growing evidence of a more sluggish job market, the Fed cut its benchmark interest rate by an unusually large half-point. The rate cut, the Fed’s first in more than four years, reflected its new focus on shoring up the job market now that inflation has largely been tamed.
Some other barometers of the economy still look healthy. Americans last month increased their spending at retailers, for example, suggesting that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and high borrowing rates. The nation’s industrial production rebounded. The pace of single-family-home construction rose sharply from the pace a year earlier.
And this month, consumer sentiment rose for a third straight month, according to preliminary figures from the University of Michigan. The brighter outlook was driven by “more favorable prices as perceived by consumers” for cars, appliances, furniture and other long-lasting goods.
A category within GDP that measures the economy’s underlying strength rose at a healthy 2.7% annual rate, though that was down from 2.9% in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Though the Fed now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
On Thursday, the Commerce Department also issued revisions to previous GDP estimates. From 2018 through 2023, growth was mostly higher — an average annual rate of 2.3%, up from a previously reported 2.1% — largely because of upward revisions to consumer spending. The revisions showed that GDP grew 2.9% last year, up from the 2.5% previously reported.
Thursday’s report was the government’s third and final estimate of GDP growth for the April-June quarter. It will release its initial estimate of July-September GDP growth on Oct. 30.