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Saudi Arabia to Create Largest Venture Capital Fund Globally

The logo of Aramco is seen as a security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo
The logo of Aramco is seen as a security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo
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Saudi Arabia to Create Largest Venture Capital Fund Globally

The logo of Aramco is seen as a security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo
The logo of Aramco is seen as a security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo

Saudi Aramco announced on Wednesday the creation of a $1.5 billion sustainability fund to invest in technology to support a stable and comprehensive energy transition. This is considered one of the largest sustainability-focused venture capital funds globally.

Aramco’s decision to start the fund aligns with Saudi efforts to reduce greenhouse gas emissions.

It was unveiled at the sixth edition of the Future Investment Initiative (FII). Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.

The fund plans to invest in technologies that support the Company’s announced net-zero 2050 ambition in its wholly-owned operational assets, as well as development of new lower-carbon fuels.

Initial focus areas will include carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia, and synthetic fuels. The fund will target investments globally.

Moreover, Aramco’s wholly-owned subsidiary Aramco Trading Company has participated in the first voluntary carbon credits auction organized by the Public Investment Fund (PIF).

It follows the signing of a Memorandum of Understanding between Aramco and PIF earlier this year, to participate in a regional voluntary carbon market to be launched in Saudi Arabia in 2023.

“Climate change is a critical issue, which is why sustainability is well-integrated in Aramco’s strategy and investment decisions,” said Aramco Chairman, Yasir Al-Rumayyan.

“The company is harnessing innovation and collaboration as it seeks long-term solutions to global energy challenges,” he added.

“By driving large-scale investments and building key domestic, regional and international partnerships, Aramco aims to enable a stable and inclusive energy transition that meets the world’s need for energy with lower emissions,” noted Al-Rumayyan.

Aramco CEO and President Amin Nasser said at an investment conference in Saudi Arabia that the fund will focus on “breakthrough technologies that are important and startups that will help address climate change.”

Aramco’s ambition is to achieve net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions across its wholly-owned operated assets by 2050.

In June, the company also announced a set of interim targets that it aims to achieve by 2035, which are intended to reduce or mitigate net Scope 1 and Scope 2 GHG emissions across its wholly-owned operated assets by more than 50 million metric tons of CO2e annually, when compared to the business-as-usual forecast.

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Business

Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
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Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)

Asian equities were mixed Friday as tech firms managed to claw back some early losses on bargain-buying at the end of tough week for the sector, while traditional safe havens benefited from a generally cautious mood.

Since AI-linked companies hit record highs in June, their equity prices have been pummeled by concerns they were overvalued, their huge outlays on infrastructure and hardware might not return a profit and, more recently, their servicing costs were spiraling.

That has combined with an Iran war-fueled surge in oil prices to more than $100 that has ramped up inflation, forced central banks to hike interest rates and sent government borrowing costs to multi-decade highs.

Strong earnings in past quarters have been able to temper many of the concerns, but analysts pointed out that investors are demanding better and better results to justify their backing.

Earnings from Facebook-parent Meta and chip equipment maker Lam Research this week have beaten forecasts but seen their shares dive.

"Even positive news is being ignored," said FOREX.com's Fawad Razaqzada.

"Strong results are no longer enough if the outlook fails to match an already demanding valuation. Investors are becoming much less forgiving."

The rush out of tech has, however, boosted industrial companies overlooked for much of the AI boom, with the Dow rising this week while the Nasdaq and S&P 500 retreated.

The general losses in New York filtered through to Asia in the morning, but some markets staged a comeback as the day progressed.

Seoul -- which was at the forefront of the AI boom and has led recent losses -- shed more than two percent after the open but was up at the close.

Chipmaker and market heavyweight SK hynix -- a major target amid the waves of buying and selling -- ended up more than four percent. However, its US shares fell more than eight percent Thursday after it said it was scrapping plans for an initial public offering for its US subsidiary Solidigm, citing "market conditions and share price trends".

There were also gains in Hong Kong, Shanghai, Sydney, Singapore and Jakarta.

Tokyo's Nikkei 225, which is also heavily weighted to tech, ended in the red, though well off earlier lows. Wellington, Mumbai and Manila were also down. Taipei was closed as Typhoon Champi neared Taiwan.

London, Frankfurt and Paris dropped in the morning.

Safe havens benefited, with the yen rallying against the dollar, helped by strong Japanese inflation data that boosted bets on another interest rate hike.

The currency has struggled against the greenback in recent years owing to the wide interest rate gap between the United States and Japan, as well as worries about the Asian giant's fiscal situation.

US Treasuries were also in demand, with yields falling from two-decade highs.

"Markets are looking for safe havens as the now familiar fears over AI and the tech sector, alongside ever higher oil and energy prices are powering a move back into bonds," said National Australia Bank's Gavin Friend.

"Regardless of the continued climb in oil prices, investors are increasingly looking for safe havens with the recent pullback in US Treasury yields getting a sizeable push," he said, adding that two- and 10-year Treasury yields were at one-month lows.

And Carol Kong at Commonwealth Bank of Australia said the yen could benefit further if the tech trade continued to deteriorate.

Oil prices added to the dour mood on fresh Middle East worries. Brent extended Thursday's spike and headed back towards $115 a barrel for the first time since May, while WTI topped $100.

The latest rally came after Iran threatened to hit US bases in the region if its military continued to escort ships through the Strait of Hormuz.

Business

Gold Heads for Steep Weekly Loss as Oil Prices Fuel Fed Rate Concerns

British gold bars and Sovereign gold coins are displayed at Baird & Co. in Hatton Garden, London (Reuters)
British gold bars and Sovereign gold coins are displayed at Baird & Co. in Hatton Garden, London (Reuters)
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Gold Heads for Steep Weekly Loss as Oil Prices Fuel Fed Rate Concerns

British gold bars and Sovereign gold coins are displayed at Baird & Co. in Hatton Garden, London (Reuters)
British gold bars and Sovereign gold coins are displayed at Baird & Co. in Hatton Garden, London (Reuters)

Gold eased on Friday, headed for its steepest weekly decline in over four months as elevated oil prices bolstered higher-for-longer interest rate expectations, while investors awaited next week's Federal Reserve policy meeting.

Spot gold eased 0.1% to $4,021.04 per ounce by 0554 GMT, paring losses slightly after touching its lowest level since July 20 earlier in the session. The metal has fallen ‌3.6% so far ‌this week, putting it on track for ‌its ⁠worst week since June.

US ⁠gold futures for December delivery dropped 0.6% to $4,035.50.

Speculators are trying to defend the key $4,000 level for gold because a clean break below would signal that the market has stopped pricing rate relief and started pricing sticky inflation, elevated yields, and a stronger dollar, said Monte Safieddine, head of market research at Capital.com.

Oil ⁠prices rose on Friday after Houthi attacks in ‌Saudi Arabia stoked concerns of further ‌disruption to energy supplies from the Middle East.

Elevated energy prices bolster expectations ‌of higher-for-longer interest rates by the Fed, increasing the opportunity cost ‌of holding non-yielding bullion.

"Any further escalation on the geopolitical front risks pushing oil even higher. Higher oil is reviving inflation fears, lifting yields, and delaying Fed easing. That is a difficult cocktail for bullion," ‌Safieddine added.

Focus has turned to the Fed's October 27-28 policy meeting and next week's Personal ⁠Consumption Expenditures ⁠data, a closely watched gauge because it is the central bank's preferred inflation measure for its 2% inflation target.

Traders are largely expecting the central bank to leave interest rates unchanged next week, but expectations for an interest rate hike in December remain at 76%.

Meanwhile, analysts at HSBC cut their average 2026 platinum and palladium price forecasts in a research note on Thursday, citing shifting market fundamentals and investor liquidation.

Among other metals, spot silver slid 0.4% to $54.31 per ounce, platinum rose 0.3% to $1,574.33 and palladium gained 0.3% to $1,056.49.

However, all three metals were headed for weekly declines.

Business

UK Govt Promises to Save Businesses £800 Million in Paperwork and Tariffs

Britain's Prime Minister Andy Burnham meets pharmacy staff before receiving an annual seasonal flu vaccination at Kapoor Pharmacy Services in Chorlton-cum-Hardy in Manchester on October 22, 2026. (AFP)
Britain's Prime Minister Andy Burnham meets pharmacy staff before receiving an annual seasonal flu vaccination at Kapoor Pharmacy Services in Chorlton-cum-Hardy in Manchester on October 22, 2026. (AFP)
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UK Govt Promises to Save Businesses £800 Million in Paperwork and Tariffs

Britain's Prime Minister Andy Burnham meets pharmacy staff before receiving an annual seasonal flu vaccination at Kapoor Pharmacy Services in Chorlton-cum-Hardy in Manchester on October 22, 2026. (AFP)
Britain's Prime Minister Andy Burnham meets pharmacy staff before receiving an annual seasonal flu vaccination at Kapoor Pharmacy Services in Chorlton-cum-Hardy in Manchester on October 22, 2026. (AFP)

British ‌Prime Minister Andy Burnham said on Friday his government would help businesses save almost £800 million ($1 billion) a year by cutting back on paperwork and extending the suspension of some trade tariffs.

Speaking ahead of his government's first annual budget statement ‌next week, Burnham ‌said the measures ‌would ⁠give businesses "breathing space to ⁠grow".

The changes would make compliance guidance simpler and easier for small firms, saving £290 million, and extend £155 million of import tariff suspensions on 250 products ⁠used by businesses, Britain's finance ‌ministry ‌said.

Another measure would reduce duplicative reporting ‌burdens for asset management firms, ‌saving £105 million, and remove £116 million in costs for businesses involved in residential property transactions, the government said in ‌a statement.

British finance minister John Healey is due ⁠to ⁠announce his first budget on Wednesday next week and he has promised to reduce the cost of business as well as help households with the high cost of living – though his ambitions will be limited by the fragile state of the public finances.