Foundation Stone Laid for First Lucid Plant in Saudi Arabia

Saudi government and Lucid Motor’s officials at a ceremony to sign agreements for the development of a production facility in the Kingdom, Asharq Al-Awsat
Saudi government and Lucid Motor’s officials at a ceremony to sign agreements for the development of a production facility in the Kingdom, Asharq Al-Awsat
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Foundation Stone Laid for First Lucid Plant in Saudi Arabia

Saudi government and Lucid Motor’s officials at a ceremony to sign agreements for the development of a production facility in the Kingdom, Asharq Al-Awsat
Saudi government and Lucid Motor’s officials at a ceremony to sign agreements for the development of a production facility in the Kingdom, Asharq Al-Awsat

US-based Lucid Motors on Wednesday laid the foundation stone for its first-ever electric car plant outside the US at King Abdullah Economic City (KAEC) in the Saudi western city of Rabigh.

Minister of Industry and Mineral Resources Bandar Alkhorayef announced that Saudi Arabia is targeting manufacturing of more than 300,000 cars annually by the year 2030.

He said this during the inauguration ceremony on Wednesday. The electric vehicle giant’s first international plant at KAEC targets manufacturing of 150,000 vehicles per year.

Alkhorayef, who is also chairman of the Board of Directors of the Saudi Industrial Development Fund (SIDF), said that Lucid’s choice of Saudi Arabia as the headquarters of its first plant in the Middle East confirms the Kingdom’s competitiveness and its ability to exploit a number of advantages it enjoys.

These advantages are the distinguished geographical location, and the ability to connect with many regional and global markets, in addition to good infrastructure and quality of services. The KAEC plant aims to export more than 85% of its production.

According to the minister, the dossier of the automotive industry in the Kingdom is one of the important files that the national strategy for industry has taken into account as it is one of the complex industries that contribute to the development of supply chains for many products.

“The Kingdom aims to manufacture cars to cover the local demand and export globally. The volume of spending on cars in the Kingdom during the year 2020 reached nearly SR40 billion while the size of the Saudi market exceeds more than half a million cars annually, which represents 50% of the Gulf market,” he said.

He noted that the SIDF has provided financing for the construction of the Lucid plant, with a value of more than SAR5 billion.

Alkhorayef said that the establishment of a new manufacturing center for Lucid company in Saudi Arabia comes in line with the Kingdom's directions aimed at diversifying the economic base, especially the development of the industrial sector.

Saudi Investment Minister Khalid Al-Falih said that the Lucid project is vital in its investment value, the added value that will result from it, and its impact on the balance of payments, by increasing exports, contributing to environmental transformation, and reducing carbon emissions from the Kingdom.

Al-Falih added to Asharq Al-Awsat that the most important impact of the project is that it stimulates the value chain in advanced industries. Electric cars are a modern and advanced technology, and they are evolving. He explained that Lucid is known for being the best in this field, in terms of vehicle efficiency, batteries, and the technologies they contain and transport.

“The expected impact will affect industries other than the automobile industry, because it will also stimulate scientific research, product development, and the associated supply chains of basic materials, whether the industries of metals, iron, aluminum and plastics,” said Al-Falih.

For his part, Lucid Motors CEO Peter Rawlinson said that a new and important stage in Lucid’s journey to stimulate the adoption of sustainable energy technologies and solutions was launched with the new factory in Saudi Arabia.

“The new manufacturing facility is starting to support this trend from its headquarters in Saudi Arabia,” said Rawlinson.

“We are pleased to collaborate with the Public Investment Fund and the Saudi government on agreements to support our shared vision in the field of global sustainability,” he added.

The Saudi government had agreed to buy between 50,000 and 100,000 electric vehicles within ten years from Lucid Motors, which is part-owned by Saudi Public Investment Fund (PIF), the Ministry of Finance said in a press statement in September 2021.

The agreement is part of the Vision 2030 plan to diversify away from fossil fuels and create a more sustainable society.

Lucid currently manufactures cars at a plant in Arizona and the KAEC plant would assemble its electric vehicles. The factory is expected to eventually build up to 150,000 electric vehicles per year.

Both factories will build the new vehicles ordered by the Saudi government. The KAEC plant will provide thousands of jobs for Saudis. PIF owns 61 % of the California-headquartered Lucid company.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.