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UAE’s ADNOC Drilling Awarded $2 Billion Worth Contracts

The Salama drilling rig operates within a total of 115 rigs to enhance the production operations of ADNOC. (Asharq Al-Awsat)
The Salama drilling rig operates within a total of 115 rigs to enhance the production operations of ADNOC. (Asharq Al-Awsat)
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UAE’s ADNOC Drilling Awarded $2 Billion Worth Contracts

The Salama drilling rig operates within a total of 115 rigs to enhance the production operations of ADNOC. (Asharq Al-Awsat)
The Salama drilling rig operates within a total of 115 rigs to enhance the production operations of ADNOC. (Asharq Al-Awsat)

UAE’s ADNOC Drilling confirmed being awarded five 10-year contracts, totaling 7 billion dirhams ($2 billion), in support of ADNOC Offshore’s growing drilling operations.

The rigs will commence activity progressively from the end of 2023, with significant revenue expected in 2024 and the first full-year revenue contribution from 2025. The revenue associated with these contracts is included in the Company’s full-year 2023 and medium-term guidance.

“We are pleased to have been awarded these important contracts. Long-term contracts like these are the backbone of our business model, providing a clear line of sight on future earnings,” said Chief Executive Officer of ADNOC Drilling Abdulrahman Al Seiari.

“As we continue to grow our fleet, our shareholders will benefit from the opportunity to be directly invested in ADNOC’s accelerated production capacity growth, which is driving faster revenue growth and progressive, long-term shareholder returns while responding to the world’s rising energy demand.”

The five rigs have been acquired as part of the company’s fast-tracked rig fleet expansion program, designed to enable the delivery of ADNOC’s accelerated production capacity growth to responsibly meet rising global energy demand.

The new rigs will be among the most capable, high-specification rigs working in the Arabian Gulf.

Each of the five rigs will be equipped with a battery energy storage system to increase efficiency and reduce emissions. The hybrid power technology system stores energy in its batteries to use when there is a need for continuous power or to provide instant extra power when there is an increase in demand.

The new rigs are central to ADNOC Drilling’s rigorous decarbonization strategy and the company’s commitment to supporting ADNOC’s target to reduce greenhouse gas intensity by 25% by 2030, as well as the UAE Net Zero by 2050 strategic initiative.

The 7 billion dirhams ($2 billion) contract award follows more than 42.23 billion ($11.5 billion) in long-term contracts announced since the beginning of 2022.

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Business

Saudi Arabia's Inflation Edges Up to 1.8% in May

People shopping in a market in Saudi Arabia (SPA)
People shopping in a market in Saudi Arabia (SPA)
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Saudi Arabia's Inflation Edges Up to 1.8% in May

People shopping in a market in Saudi Arabia (SPA)
People shopping in a market in Saudi Arabia (SPA)

Saudi Arabia’s consumer price index (CPI) rose 1.8% year-on-year in May 2026, compared with the same month a year earlier, according to official data released on Sunday.

The General Authority for Statistics said the annual increase was driven mainly by a 3.7% rise in housing, water, electricity, gas and other fuels costs, supported by a 4.7% increase in actual housing rents.

Higher prices in several other categories also contributed to the increase. Restaurant and hotel prices rose 1.7%, while transport costs increased 1.5%.

Prices in the personal care and miscellaneous goods and services category climbed 5.6%, largely due to a 20.0% jump in jewelry and watches prices.

The overall rise in inflation was partly offset by a 0.5% annual decline in furniture and household equipment prices, the statistics authority said.

Slight Monthly Price Changes

On a monthly basis, Saudi Arabia’s consumer price index edged up 0.2% in May from April. The increase was driven primarily by a 0.6% rise in transport prices, largely due to a 1.9% increase in passenger transport services.

Food and beverage prices rose 0.1% month-on-month, while housing and water costs increased 0.2%.

Meanwhile, prices in the personal care and miscellaneous goods and services category fell 0.2%, as did furniture and household equipment prices. Clothing and footwear prices also declined 0.1% from the previous month.

Housing and Transport Lead Inflation Drivers

The housing, water, electricity, gas and other fuels remained the largest contributor to annual inflation in May, accounting for 0.7 percentage points.

The personal care and miscellaneous goods and services category was the second-largest contributor, adding 0.3 percentage points to the annual inflation rate.

Transport and food and beverages each contributed 0.2 percentage points, while the remaining 0.3 percentage points came from other components of the consumer basket, according to the authority.

Business

Kingdom Holding-PIF Partnership Soars to $6.83 Billion on SpaceX Stake

SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
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Kingdom Holding-PIF Partnership Soars to $6.83 Billion on SpaceX Stake

SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)

Saudi Arabia’s Kingdom Holding Company said the fair value of its stake in SpaceX has reached $6.83 billion, marking what the company described as a major milestone for its long-term investment strategy and its partnership with the Saudi Public Investment Fund (PIF), which owns a 16.87 percent stake in Kingdom Holding.

The valuation reflects an increase of more than $2.3 billion from the previous carrying value of $4.47 billion, said Kingdom Holding. The announcement immediately boosted investor sentiment on the Saudi stock market, sending the company’s shares up nearly 4 percent.

Kingdom Holding said it owns more than 42.4 million Class A shares in SpaceX. Based on the share price cited in the company’s disclosure, the value of that holding rose to approximately SAR 25.6 billion ($6.83 billion).

Long-term investment strategy

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that Kingdom Holding’s decision to retain its investments in X and convert its shares, alongside developments related to SpaceX, demonstrates a more mature investment philosophy.

The strategy reflects a focus on long-term ownership of “transformational assets” capable of generating substantial future value rather than pursuing short-term gains, he added.

Such an approach, he explained, aligns closely with the objectives of Saudi Vision 2030, which seeks to strengthen the Kingdom’s presence in advanced technology sectors worldwide.

Financial and economic adviser Dr. Hussein Al-Attas echoed that view, arguing that the figures disclosed by Kingdom Holding illustrate how Saudi capital has evolved from a passive source of funding into an active strategic partner in emerging industries, including space-related technologies.

Al-Attas told Asharq Al-Awsat that PIF’s position as a major shareholder has given Kingdom Holding greater financial flexibility and the ability to withstand volatility in the technology sector, enabling it to pursue a more institutional and long-term investment model.

Balancing growth and stability

Al-Farraj noted that Kingdom Holding’s portfolio combines traditional assets, such as hotels and real estate, with high-growth technology investments.

In an environment of elevated global interest rates, the steady cash flow generated by traditional assets provides an important cushion against risk, he remarked.

Large-scale technology projects often require years of heavy capital spending before realizing their full economic potential, he noted. Stable, income-generating assets therefore help preserve liquidity while allowing investors to maintain exposure to higher-risk, higher-growth opportunities.

Al-Attas stressed that this balanced approach mirrors the strategies employed by many leading global investment firms, reducing dependence on any single sector while preserving long-term growth potential.

Gulf capital gains strategic influence

Al-Farraj said Gulf sovereign wealth funds have become particularly attractive partners for major technology companies because they offer three advantages: substantial liquidity, long investment horizons, and a willingness to tolerate cyclical volatility.

Beyond financing, Gulf investors provide access to rapidly expanding markets and opportunities in telecommunications, artificial intelligence, digital infrastructure, and energy, he stated. As a result, they increasingly serve as strategic partners rather than simply providers of capital.

Both experts stressed that lofty valuations for companies, such as SpaceX, reflect a combination of operational achievements and strong expectations for future growth.

While the potential rewards remain significant, they cautioned that such investments also carry considerable financial and execution risks if anticipated growth fails to materialize.

Business

Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
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Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)

Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.5% to $4,322.87 per ounce by 0312 GMT, hitting its highest level since June 9 and extending gains for a third straight session. US gold futures ‌for August delivery ‌rose 2.5% to $4,344.80.

US and Iranian officials said on ‌Sunday ⁠they had agreed ⁠on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"Lower ⁠oil prices and a softer dollar, stemming from ‌reduced geopolitical risk and the anticipated reopening ‌of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, ‌chief market analyst at KCM Trade.

"This combination is providing the ‌precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold prices have fallen about 20% since the start of the US-Israeli war against Iran in late February. The ‌effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking ⁠inflation concerns ⁠and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding asset.

Markets have scaled back expectations for a US rate hike in December to 48% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.6% to $70.39 per ounce, platinum gained 3.3% to $1,773.70 and palladium climbed 3.3% to $1,324.75.