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Saudi Arabia Aims to Boost National Automotive Industry

The Saudi Minister of Industry and Mineral Resources, Bandar al-Khorayef, and the Minister of Economy and Planning, Faisal al-Ibrahim, signed the agreement with Hyundai Motor Company (Asharq Al-Awsat)
The Saudi Minister of Industry and Mineral Resources, Bandar al-Khorayef, and the Minister of Economy and Planning, Faisal al-Ibrahim, signed the agreement with Hyundai Motor Company (Asharq Al-Awsat)
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Saudi Arabia Aims to Boost National Automotive Industry

The Saudi Minister of Industry and Mineral Resources, Bandar al-Khorayef, and the Minister of Economy and Planning, Faisal al-Ibrahim, signed the agreement with Hyundai Motor Company (Asharq Al-Awsat)
The Saudi Minister of Industry and Mineral Resources, Bandar al-Khorayef, and the Minister of Economy and Planning, Faisal al-Ibrahim, signed the agreement with Hyundai Motor Company (Asharq Al-Awsat)

The Saudi Ministry of Industry and Mineral Resources signed a memorandum of understanding with Hyundai Motor Company to promote the automotive industry in the Kingdom.

The MoU was signed in the presence of the Minister of Industry and Mineral Resources, Bandar al-Khorayef, and the Minister of Economy and Planning, Faisal al-Ibrahim.

The MoU aimed to enhance cooperation in vehicle manufacturing in the region to realize the national strategic goals for the industry in developing local manufacturing capabilities and is in line with the targets of the Saudi Vision 2030 that seeks to diversify the economic base in Saudi Arabia.

The agreement stipulated planning for building a Saudi Arabia-based assembly plant with the CKD system for electric and internal combustion engine cars after Hyundai showed high interest.

It also sought to explore joint investment opportunities with Saudi Arabia to achieve entrepreneurship in businesses and projects that guarantee environmental safety and sustainability.

The approach came as part of a government strategy to support the transition to clean energy in the automotive industry.

In early November, Saudi Crown Prince Mohammed bin Salman launched the "Ceer" company, branded as the first Saudi electric vehicle brand.

The new company would contribute to attracting local and international investments and create many job opportunities for local competencies.

Last May, the Ministry of Investment announced a significant investment from Lucid Group as the firm began constructing an advanced automotive manufacturing plant that targets 150,000 vehicles per year with more than $3.2 billion in assets.

The facility is also expected to contribute significantly to job creation and development of the skill base of the Saudi automotive manufacturing sector.

Investment Minister Khalid al-Falih stated that the development of the electric car industry in Saudi Arabia reflected the strong commitment to attracting qualitative investments that contribute to diversifying the economy, transferring technology, and developing skills among Saudi youth.

It also reflected the Kingdom's global commitment to promoting a green economy and reducing carbon emissions.

Falih added that the development of the electric car manufacturing sector is part of the Kingdom's broader efforts to advance the industrial sector and advanced industries.

The sector would also play an essential role in the Kingdom's transition to a greener economy and in the Kingdom's efforts to realize its commitment to reach net zero by 2060.

The Lucid factory will produce four electric cars from 2023, reaching total capacity in 2028.

The planned factory in the Kingdom would produce two exclusive models. The facility will export nearly 95 percent of its production, supporting the Kingdom's balance of payments. It would also back supply chains and open new investment opportunities.

Lucid's electric vehicle factory would be located in the Industrial Valley of King Abdullah Economic City, on the Red Sea coast in the west of the Kingdom, to meet energy needs, local supply chains, and a location that facilitates access to global logistics.

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Business

Gold Climbs to Near Three-month Peak after US Treasury Move

FILE PHOTO: A salesman arranges gold bangles inside a jewelry showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India, May 7, 2019. REUTERS/Francis Mascarenhas/File Photo
FILE PHOTO: A salesman arranges gold bangles inside a jewelry showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India, May 7, 2019. REUTERS/Francis Mascarenhas/File Photo
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Gold Climbs to Near Three-month Peak after US Treasury Move

FILE PHOTO: A salesman arranges gold bangles inside a jewelry showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India, May 7, 2019. REUTERS/Francis Mascarenhas/File Photo
FILE PHOTO: A salesman arranges gold bangles inside a jewelry showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India, May 7, 2019. REUTERS/Francis Mascarenhas/File Photo

Gold prices hit a near three-month high on Friday, poised for a third straight weekly gain, supported by a softer dollar and the US Treasury's bond buyback move.

Spot gold climbed 1% to $4,562.86 per ounce by 0752 GMT, hitting its highest since May 29 earlier in the session. Prices have climbed 4.2% so far this week. US gold futures rose ‌1.1% to $4,620.00.

"We've seen ‌the dollar weakening and that has supported ‌not just ⁠gold but all ⁠precious metals, along with a big change in yields," said Brian Lan, managing director of GoldSilver Central.

The dollar headed for a weekly loss, making greenback-priced bullion more affordable for buyers overseas. US Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. This comes after the Treasury on Wednesday announced that ⁠it would double the size of buybacks on ‌longer-dated securities over the next quarter ‌to at least $4 billion per operation.

"Attention now turns to whether the ‌move can extend, with upcoming US data and Jackson Hole ‌Symposium (27-29 Aug) likely to shape the next leg in yields and the dollar," said Christopher Wong, precious metals strategist at OCBC. Meanwhile, two Federal Reserve officials expressed caution when asked how the Treasury Department's debt management ‌changes could affect the US central bank's monetary policy stance.

Traders are now pricing in a 67% ⁠chance that ⁠the Fed will keep rates unchanged next month and a 33% chance of a hike, according to the CME FedWatch Tool. Despite gold typically being seen as an inflation hedge, higher interest rates tend to diminish bullion's appeal due to its non-yielding characteristic. The recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady. On the geopolitical front, Bessent said the United States will impose "the toughest sanctions in history" on Iran.

Spot silver gained 1.8% to $69.31 per ounce, platinum climbed 2.6% to $1,875.75, while palladium rose 1.7% to $1,356.59. All three metals were headed for weekly gains.

Business

Euro Zone Business Activity Growth Hits Highest Since November

PRODUCTION - 19 August 2026, North Rhine-Westphalia, Duisburg: A truck is being loaded with a forklift at the Duisport Port in Duisburg while a ship is at anchor. Photo: Bernd Thissen/dpa
PRODUCTION - 19 August 2026, North Rhine-Westphalia, Duisburg: A truck is being loaded with a forklift at the Duisport Port in Duisburg while a ship is at anchor. Photo: Bernd Thissen/dpa
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Euro Zone Business Activity Growth Hits Highest Since November

PRODUCTION - 19 August 2026, North Rhine-Westphalia, Duisburg: A truck is being loaded with a forklift at the Duisport Port in Duisburg while a ship is at anchor. Photo: Bernd Thissen/dpa
PRODUCTION - 19 August 2026, North Rhine-Westphalia, Duisburg: A truck is being loaded with a forklift at the Duisport Port in Duisburg while a ship is at anchor. Photo: Bernd Thissen/dpa

Euro zone business activity has grown at its fastest pace this year in August, buoyed by stronger new orders — particularly in manufacturing — and a return to export growth, according to a survey which also showed easing price pressures.

That suggests the economy has remained resilient this quarter despite the Middle East conflict, after expanding 0.4% in the second quarter.

The S&P Global Flash Euro zone Composite PMI Output Index has risen to 52.1 this month from July's 52.0, its highest since November and above a Reuters poll expectation of 51.7. Readings above 50 indicate growth.

Final data have come out better than initial flash readings for the past five months.

New orders, a key gauge of demand, have risen at their fastest rate in 40 months, while ⁠export orders, including intra-euro ⁠zone trade, have increased for the first time since Russia invaded Ukraine in February 2022.

“The manufacturing sector is again the star performer ... with the services economy providing a supporting role, notching up another month of decent growth after the malaise seen in the second quarter," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"We are again seeing reports of precautionary stock building helping support ⁠the goods-producing sector amid the ongoing supply chain disruptions emanating out of the Middle East ... However, there are also encouraging signs of rising demand for AI-related tech goods and rising equipment demand thanks to higher defense spending, notably helping Germany in particular achieve increasingly impressive production gains."

The factory PMI has risen to a more than four-year high of 52.8 from 51.9, beating the poll estimate of 51.8. Output growth has hit its strongest level in 54 months.

Services activity has held steady after July's rebound, with the PMI unchanged at 51.7, defying forecasts for a slowdown.

Overall employment has risen for the first time this year ⁠as manufacturers resumed ⁠hiring after more than three years, while services employment has grown at the fastest pace in eight months.

Price pressures, although still high, have continued to ease, with input cost growth at its slowest in six months and output price inflation easing to a five-month low.

"However, with the flash PMI signaling solid third-quarter GDP growth, a return to hiring by companies for the first time this year, and inflation remaining elevated by historical standards, a hawkish bias is likely to be maintained and further imminent rate hikes cannot be ruled out," Williamson added.

The European Central Bank will deliver its second rate hike of this year next month, a Reuters poll showed last week.

Despite encouraging data, firms were less optimistic about the year-ahead outlook and sentiment remained lower than the series average.

Business

Oil Set for Second Weekly Rise as Unsettled US-Iran War Crimps Supply

A fuel pump at a Rosneft gas station in Moscow, Russia, 19 August 2026. (EPA)
A fuel pump at a Rosneft gas station in Moscow, Russia, 19 August 2026. (EPA)
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Oil Set for Second Weekly Rise as Unsettled US-Iran War Crimps Supply

A fuel pump at a Rosneft gas station in Moscow, Russia, 19 August 2026. (EPA)
A fuel pump at a Rosneft gas station in Moscow, Russia, 19 August 2026. (EPA)

Oil prices fell slightly on Friday, but were on track for a second weekly rise as the stalemated US-Iran war continues to disrupt supply from the key Middle East producing region.

Brent crude futures fell 23 cents, or 0.3%, to $93.55 a barrel by 0142 GMT, after climbing 2.4% in the previous session. US West Texas Intermediate crude futures slipped 33 cents, or 0.4%, to $86.50 a barrel, after rising 2.3% in the prior session.

During the previous five days of gains, Brent gained more than 7% and WTI climbed more than 8%, ‌reaching their ‌highest since July 24.

Prices have increased on concerns ‌the ⁠inconclusive state of the US-Israeli ⁠war on Iran will mean the continued curtailment of supply from major oil producers.

The earlier peace deal between them expired this week with no effort by either side to restart talks, and US President Donald Trump threatened economic retaliation against nations supporting Iran.

"Both sides are dug in ⁠but lacking the luxury of time to play the ‌waiting game, against a backdrop ‌of crude prices grinding unerringly higher," IG analyst Tony Sycamore said on Friday.

BMI, a ‌unit of Fitch Solutions, said on Friday it will review its ‌Brent price outlook this month, adding that risks to the outlook are "tilted to the upside."

"Exports are already under considerable pressure, because of the twin disruptions in play in the Strait of Hormuz due to the Iranian shut-in ‌of the strait and the US naval blockade on Iran, and the Red Sea due to the ⁠Houthi embargo," ⁠BMI said.

Thousands of people have been killed in the Iran war, which began on February 28 when the US and Israel launched military strikes on Iran.

Seven commodity ships sailed along the Strait of Hormuz on Thursday, just half the previous day's tally, data from ship-tracker Kpler showed. Prior to the Iran war, about one-fifth of global consumption moved through the waterway.

On Wednesday evening, Trump threatened "economic warfare and isolation on an unprecedented scale" against Tehran, warning of consequences for any country that provided "any type of lifeline to Iran".

This week, the UAE suspended all financial and economic transactions with Iran until further notice, highlighting the fraught ties between the major Gulf Arab oil producer and Tehran.