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High Expectations for Growth of Saudi Telecom Market

The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
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High Expectations for Growth of Saudi Telecom Market

The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)
The Saudi telecom sector is likely to grow in response to technology developments. (Asharq Al-Awsat)

Saudi Arabia ranked third as the fastest growing economy among the G20 countries, and first in the world in the 5G average download speed.

Some economists have raised expectations for the growth of the Saudi telecom market - the largest market in the Middle East and North Africa.

Saudi Arabia and the United States concluded a memorandum of cooperation in the field of 5G and 6G, with the aim of accelerating the growth of the digital economy and promoting the pace of research, development and innovation in the Kingdom.

Saudi businessman Abdullah Al-Malehi told Asharq Al-Awsat that Saudi Arabia had major leaps in the global ranks in the field of communications.

Pointing to figures by GSMA, Al-Malehi said that in 2020, the size of the communications and information technology market in the Kingdom amounted to USD36 billion, achieving a growth rate of seven percent compared to 2019.

The Saudi communications investor said that the revenues of telecom companies listed on the Saudi stock market continued to grow for the fourth year in a row, reaching 86.4 billion riyals (USD23 billion) in 2021, compared to about 81.12 billion riyals (USD21.6 billion) the previous year.

He also stressed that the size of the IT and emerging technologies market in the Kingdom amounted to more than USD17 billion, with a growth rate of 10 percent compared to 2019, while the contribution of the communications and information technology sector to the GDP reached 5.1 percent.

Al-Malehi explained that a new memorandum of cooperation linking technology companies in both the Kingdom and the United States would enhance the application of the 5G using open radio networks, enable the development of the 6G through similar technologies, and enhance partnership in the field of cloud infrastructure and related technologies.

Dr. Abdul Rahman Baeshen, head of the Al-Shorouk Center for Economic Studies in Jazan, stressed that the communications and information technology sector was the future of the digital economy, explaining that Saudi Vision 2030 included this field as a major axis for development and economic transformation.

He added that among the 18 agreements that Riyadh signed with Washington during President Joe Biden’s recent visit to the Kingdom was a major cooperation agreement in the field of technology and communications.

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Gold Slips on Rate-Hike Bets; Inflation Data in Focus

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
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Gold Slips on Rate-Hike Bets; Inflation Data in Focus

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)

Gold slipped on Monday as strong US jobs data reinforced expectations for higher interest rates, while investors awaited key US inflation reports due later this week for further clarity on the Federal Reserve's policy path.

Spot gold was down 0.6% at $4,402.86 per ounce, as of 0420 GMT, after falling 1% on Friday.

US gold futures for December delivery were down 0.6% at $4,447.60.

Data ‌on Friday ‌showed US job growth accelerated sharply in August ‌while ⁠the unemployment rate ⁠held steady at 4.1%, suggesting an improvement in the labor market after recent struggles and keeping a rate increase this month on the table.

US producer price index (PPI) data is due on Thursday, followed by consumer price index (CPI) data on Friday.

"The jobs number delivered a clear upside surprise and put some pressure ⁠on the metal, but it wasn't a ‌complete slam dunk for a September ‌rate hike. The real missing piece of the puzzle arrives this ‌week with U.S. CPI," said Tim Waterer, chief market analyst ‌at KCM Trade.

"A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold."

Traders are pricing in a 58.4% chance of a rate hike ‌at the Fed's September 15-16 meeting, CME's FedWatch tool showed.

While gold is typically viewed as ⁠an inflation ⁠hedge, higher interest rates tend to weigh on the appeal of non-yielding bullion.

US President Donald Trump said on Friday that unless the Fed cuts interest rates, he would stop trading with countries with which the United States had a deficit.

On the Middle East front, Iran said it will step up efforts to tackle problems created by US sanctions that are crippling its economy, while a senior Iranian official warned of a "painful response" if it comes under further attack.

Among other metals, spot silver eased 0.6% to $65.80 per ounce, platinum lost 1.1% to $1,800.59 and palladium declined 0.5% to $1,394.00.

Business

SEREDO 2026 Real Estate Expo Opens in Jeddah with Broad Participation

SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
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SEREDO 2026 Real Estate Expo Opens in Jeddah with Broad Participation

SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)

Undersecretary of the Ministry of Municipalities and Housing for Stimulating Housing Supply and Real Estate Development Abdulrahman bin Abdullah Al-Tawil opened the fifth edition of the SEREDO Expo for Real Estate Development and Ownership 2026 at Jeddah Superdome.

Held under the ministry’s patronage, the event is bringing together government entities, real estate developers and financing companies, with broad participation from across the sector, the Saudi Press Agency reported on Sunday.

During the opening, Al-Tawil reviewed the key real estate and financing projects, products, and services offered by participating entities, as well as investment opportunities, solutions, and ownership options available to visitors and investors.

The expo brings together leading real estate entities and companies, providing a platform for industry stakeholders to connect, showcase their projects and products, and explore investment opportunities and ownership options available in the Saudi real estate market.

The opening ceremony also honored the event's patron, sponsors, and supporting partners in recognition of their contributions to SEREDO 2026 and their role in encouraging participation from across the real estate sector.

The exhibition runs through September 8, targeting real estate professionals, industry stakeholders, business leaders, and investors, as well as those interested in exploring projects and opportunities in real estate development, ownership, and investment.

Business

Oil Extends Gains After US and Iran Strike Ships

A drone view shows the Imperial Oil refinery in Sarnia's Chemical Valley industrial corridor in Sarnia, Ontario, Canada, September 2, 2026. (Reuters)
A drone view shows the Imperial Oil refinery in Sarnia's Chemical Valley industrial corridor in Sarnia, Ontario, Canada, September 2, 2026. (Reuters)
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Oil Extends Gains After US and Iran Strike Ships

A drone view shows the Imperial Oil refinery in Sarnia's Chemical Valley industrial corridor in Sarnia, Ontario, Canada, September 2, 2026. (Reuters)
A drone view shows the Imperial Oil refinery in Sarnia's Chemical Valley industrial corridor in Sarnia, Ontario, Canada, September 2, 2026. (Reuters)

Oil prices extended gains on Monday as tit-for-tat strikes between the US and Iran on vessels sailing in the Strait of Hormuz and other areas heightened concerns of a prolonged supply disruption from the Middle East.

Brent crude futures climbed 79 cents, or 0.82%, to $97.07 a barrel by 0512 GMT while US West Texas Intermediate crude was at $92.28 a barrel, up 80 ‌cents, or ‌0.87%.

Brent rose 7.8% last week while WTI gained nearly ‌10% ⁠after the US and Iran ⁠resumed attacks and caused a reduction in oil flows through the Hormuz strait where a fifth of the world's oil supply used to transit.

US forces struck three Iranian oil tankers on Saturday, US Central Command said, including one off the coast of Kharg Island, near Iran's key oil export hub.

The navy of Iran's Revolutionary Guard Corps said on Saturday it targeted three oil tankers that were travelling through unauthorized routes in ⁠the Strait of Hormuz as well as three additional US vessels ‌in other areas.

The Saturday attacks represented a "major ‌escalation in the maritime conflict", maritime intelligence firm Marisks said.

"Commercial tankers are now being deliberately used ‌as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and ‌commercial shipping," it added.

An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May, data from analytics firm Kpler showed on Monday.

"If tanker traffic begins to slow materially, the market could price in a much ‌larger supply shock. And there are already signs that this is happening," said Priyanka Sachdeva, head of market insights at Phillip ⁠Nova.

A restricted zone ⁠will be announced outside the Strait of Hormuz in coming days, Mohsen Rezaei, the secretary of Iran's Supreme National Security Council, said on Sunday, according to state media.

OPEC+ kept its oil output policy unchanged for October at a meeting on Sunday, the producer group said in a statement, as it needs to agree new quotas before deciding its next output steps.

A prolonged standoff, punctuated by calibrated military action by the US and Iran, appeared to be the most likely scenario and was likely to delay the path to full recovery of Middle East supply, ANZ analysts said in a note.

"We then expect exports to remain constrained through the rest of 2026, before a gradual reopening late in Q4 2026," they said, adding that a return to pre-war throughput is not expected until late first quarter or early second quarter of 2027.