Saudi Arabia Develops a Global Integrated Logistics Park

Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
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Saudi Arabia Develops a Global Integrated Logistics Park

Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)

Saudi Arabia aims to develop a global integrated logistics park in the al-Khumrah region, west of the Kingdom.

The Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce signed an agreement to set up a $267.6 million integrated logistics park at al-Khumrah, south of Jeddah, to boost economic development, national investments, and partnership with the private sector.

Two weeks ago, Mawani and Maersk began construction on Saudi Arabia's largest Integrated Logistics Park at Jeddah Islamic Port, with investments amounting to $346.6 million, providing more than 2,500 direct and indirect job opportunities.

The new region directly achieves Mawani's strategic objectives as the main link in the system, in line with the goals of the National Transport and Logistics Strategy, by establishing the Kingdom's position as a global logistics hub.

The park is also linked to the National Industrial Development and Logistics Program (NIDLP), and al-Khumra is one of the pioneering areas targeted for development as a global logistics region.

It aims to increase the optimal utilization of Mawani's assets and achieve diversification by providing more than 10,000 new direct and indirect jobs in the logistics sector through business and investments.

The 3-km logistics park comprises three zones: shared warehouses, medium-sized storage yards and single warehouses, and large storage yards and on-demand warehouses.

The various zones will meet the requirements of importers and exporters of stocking multipurpose cargo, chilled and frozen goods, food commodities, and fragile goods.

The park offers move-in-ready warehouses, storage yards, re-export zones, custom storage, logistics amenities, commercial units, residential units, staff accommodation, state-of-the-art infrastructure like roads and green spaces, and other essential services.

Meanwhile, Cruise Saudi, wholly owned by the Public Investment Fund (PIF), welcomed nearly 9,000 tourists from five European countries to celebrate Saudi Founding Day.

The 8,800 tourists visited key Saudi destinations through three cruise ship calls in Jeddah Islamic Port and King Abdulaziz Port in Dammam.

Tourists were welcomed at the passengers' terminal with Founding Day traditional activities, including cultural gifts, Saudi coffee, dates, and folklore dances, in collaboration with all relevant authorities and local partners.

The tourists, representing different nationalities, namely English, Spanish, Italian, French, and Russian, witnessed and engaged in the vibrant Saudi Founding Day festivities in their various expeditions in both Jeddah and the Eastern Province through Dammam Port.

The activities included a flight to visit AlUla, Saudi's first UNESCO World Heritage site, an enjoyable walk at Jeddah's Waterfront, and a journey back in time through centuries of culture and traditions by visiting the UNESCO World Heritage site of Jeddah Historical District, filled with vibrant artwork, exotic scents, traditional markets, and authentic Hijazi architecture unique to the region.

They could also tour al-Ahsa Oasis, Saudi's third UNESCO World Heritage site accessible via cruising, exploring the Qara Mountain, Princes' School, and al-Qaisariyah Souq.

The ongoing cruising season of Cruise Saudi, from November 2022 until May 2023, is set to welcome over 75 scheduled calls by ships from several global cruise lines sailing the Red Sea and Arabian Gulf.



Dollar Recovers as Trump Proposes Canada, Mexico Tariffs

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Recovers as Trump Proposes Canada, Mexico Tariffs

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The US dollar rose on Tuesday, recovering from its biggest daily percentage drop in 14 months after President Donald Trump suggested the US could impose tariffs on Canada and Mexico by Feb. 1, countering expectations he might take a gradual approach.

Trump told reporters he was thinking about implementing tariffs of around 25% on imports from Canada and Mexico at the start of February over illegal immigrants and fentanyl crossing into the country. He also raised the possibility of a universal tariff but said the US was "not ready" for that yet.

The dollar fell sharply on Monday after Trump's first day in office passed with no specific plans on tariffs and officials said any new taxes would be imposed in a measured way, a major relief for trade-exposed currencies, Reuters reported.

"What you're seeing here, too, is just how crowded long dollar positioning is, so all you need is some ambiguity on the tariff front, and you get these kind of moves," said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto.

"The bigger outside moves are going to come now if we see some deals happening, some stuff being negotiated and some of this fear getting priced out. The dollar positioning is long enough that you're going to see some smart people trying to bet on a turn."

The dollar index, which measures the dollar against a basket of currencies, rose 0.32% to 108.33 after dropping 1.24% on Monday. It was up as much as 0.68% earlier in the session.

The euro was down 0.22% at $1.0391. The EU is also seen as a likely target for Trump's tariff policies. Sterling weakened 0.26% to $1.2291.

Talking to reporters on Monday, Trump said he would remedy the trade imbalance either through tariffs or by Europe buying more US oil and gas.

A subsequent trade memo directed agencies to investigate and remedy persistent trade deficits. Analysts at Jefferies said the memo should be seen as a "blueprint for what to expect next on tariffs," and April 1 will be an important date as the agency reports are due by that date.

The Canadian dollar weakened 0.8% versus the greenback to C$1.44 per dollar while the Mexican peso was down 0.86% versus the dollar at 20.698.

The inauguration speech focused on emergencies in immigration and energy and a more expansionist foreign policy, including a pledge to take back the Panama Canal.

In his first term in office, Trump had a history of announcing imminent plans for policy proposals, including on healthcare and infrastructure, only for nothing to take shape.

Against the Japanese yen, the dollar weakened 0.11% to 155.42.

The yen has strengthened against the dollar in three of the last four sessions, supported by growing expectations the Bank of Japan will raise interest rates on Friday.

Japan's top currency diplomat Atsushi Mimura said on Tuesday at a Reuters NEXT Newsmaker event that a weak yen would increase inflation by boosting import costs. Mimura said the government and the central bank were communicating closely every day through various channels.

Markets are pricing an 86.2% chance of a quarter-point increase.

The dollar strengthened 0.23% against the offshore Chinese yuan to 7.278. Trump has threatened China with tariffs of up to 60% but did not detail any plans on Monday.

Beijing later set a stronger fix for the yuan, suggesting it was still inclined to take steps to prop up the currency.