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Saudi Arabia: Factory Investments Exceed $382 Billion, Up 6.5%

One of the facilities of the industrial city in Asir, southern Saudi Arabia (Asharq Al-Awsat)
One of the facilities of the industrial city in Asir, southern Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia: Factory Investments Exceed $382 Billion, Up 6.5%

One of the facilities of the industrial city in Asir, southern Saudi Arabia (Asharq Al-Awsat)
One of the facilities of the industrial city in Asir, southern Saudi Arabia (Asharq Al-Awsat)

Factory investments in Saudi Arabia touched 1.433 trillion riyals ($382.1 billion) during the first quarter of 2023, an increase of 6.5 percent compared to the same period last year.

According to the statistical bulletin of industrial licenses issued by the Saudi Ministry of Industry and Mineral Resources, on Wednesday, the total number of industrial facilities hit 10,819 by the end of March — up from 10,518 factories at the end of 2022 — with the estimated capital of these factories amounting to over SAR 1.43 trillion ($381 billion).

Saudi factories were able to employ more than 725,000 workers during the first quarter of this year, compared to around 648,000 workers in the same period of 2022, with a growth rate of 11.8 percent.

The Eastern region led the size of investments in the factories with SAR 603 million ($161 billion) in the first quarter of 2023, an increase of 12.8 percent over the same period last year.

Riyadh came in the second place, with an investment volume that exceeded SAR 312.5 billion ($84.1 billion), up 2.7 percent from the first quarter of last year.

As for the number of industrial facilities according to administrative regions, Riyadh ranked first with more than 4,100 factories, followed by the eastern region with 2,400, then Makkah Al-Mukarramah with more than 2,000 factories.

According to the bulletin, national factories topped by type of investment with more than 83.5 percent, followed by foreign companies with 8.5 percent, then jointly invested factories with 8 percent.

Small establishments represented the largest percentage of industrial facilities until the end of the reported period, as they amounted to 5,600 factories, followed by medium factories with 4,300, then large enterprises, which accounted for 824 of the total number of factories.

Earlier this week, the Ministry of Industry and Mineral Resources announced it has begun evaluating the second tranche of facilities as part of its “Future Factories Program” to modernize the sector.

The initiative seeks to establish a strong technological ecosystem and transform the manufacturing sector based on modern practices and principles.

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US Inflation Surges 3.3% as Iran War Impact Bites

A person shops at a grocery store as inflation levels lead to a consumer price surge, in New York, New York, USA, 10 April 2026. (EPA)
A person shops at a grocery store as inflation levels lead to a consumer price surge, in New York, New York, USA, 10 April 2026. (EPA)
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US Inflation Surges 3.3% as Iran War Impact Bites

A person shops at a grocery store as inflation levels lead to a consumer price surge, in New York, New York, USA, 10 April 2026. (EPA)
A person shops at a grocery store as inflation levels lead to a consumer price surge, in New York, New York, USA, 10 April 2026. (EPA)

Inflation in the United States rose sharply in March, government data showed Wednesday, as higher energy prices due to the war in the Middle East hit Americans hard.

The nationwide sticker shock put pressure on President Donald Trump, who has ordered peace talks with Iran and faces mid-term elections in November.

The rate of inflation rose to 3.3 percent year-on-year in March, the US Bureau of Labor Statistics (BLS). By comparison, this same consumer price index (CPI) rose 2.4 percent year-on-year a month earlier.

Gasoline prices surged by 21.2 percent between February and March -- the largest monthly increase since the government began publishing a related index in 1967, the US Bureau of Labor Statistics (BLS) said.

Excluding volatile energy and food prices, the inflation rate rose 2.6 percent compared to 2.5 a month earlier.

Markets had anticipated the surge, according to the consensus published by MarketWatch.

The United States and Israel began bombing Iran on February 28 and Tehran retaliated by blocking traffic in the Strait of Hormuz, a waterway used to carry a fifth of the world's oil and gas deliveries.

Despite being the world's top producer of crude oil, the United States also felt the pain, as prices at the gas pump shot up.

A gallon (3.78 liters) of regular gasoline currently costs an average of $4.15 in the United States, compared to approximately $3 just before the war.

- More price pain ahead -

The Trump administration -- elected in part on a promise to quash inflation -- maintains that the war's economic disruptions will be temporary.

US Vice President JD Vance said Friday he hoped for a "positive" outcome as he departed Washington for US-Iran peace talks being held in Pakistan this weekend.

But experts predicted more economic pain ahead due to the war in Iran, especially for middle and lower-income households in the United States already squeezed by rising energy and airfare prices.

Heather Long, chief economist at Navy Federal Credit Union, said that inflation soared in March to the highest level in almost two years.

"This is only the beginning. Food prices, travel and shipping costs are all going up in April and will exacerbate the pain," she said.

"March CPI was as expected, so no surprises. But there is a huge increase in fuel prices, boosting inflation" Christopher Low of FHN Financial told AFP.

"And we got the news last night that the ceasefire is not being honored by either side, apparently," he said. "There's still very little traffic through the Strait of Hormuz."

When Trump returned to the White House in January 2025, inflation was falling, compared to a peak in the spring of 2022.

The war in Ukraine, which had started a few months earlier, had driven prices at the pump even higher than they are today.

The CPI index was rising by 2.3 percent year-over-year in April 2025 -- coinciding with the US president's announcement of a sharp increase in tariffs on imported goods.

Inflation started to creep up, though Washington refused to acknowledge this as a consequence of the tariff war.

Price growth slowed again late last year, largely thanks to gasoline prices, relatively moderate at the time.

During the Federal Reserve's most recent meeting in mid-March, Chairman Jerome Powell explained that the war risked delaying efforts to bring inflation under control in the United States.

The US central bank's target for inflation is two percent -- an objective it has not met in five years due to a succession of shocks to the economy: the Covid-19 pandemic, the war in Ukraine, and tariffs.

Business

EU, US Reportedly Near Critical Minerals Deal to Combat Chinese Control

FILE PHOTO: A block with the symbol, atomic number and mass number of Dysprosium (Dy), a heavy rare earth, in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A block with the symbol, atomic number and mass number of Dysprosium (Dy), a heavy rare earth, in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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EU, US Reportedly Near Critical Minerals Deal to Combat Chinese Control

FILE PHOTO: A block with the symbol, atomic number and mass number of Dysprosium (Dy), a heavy rare earth, in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A block with the symbol, atomic number and mass number of Dysprosium (Dy), a heavy rare earth, in this illustration taken January 21, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The European Union and Washington are closing in on an agreement to coordinate on producing and securing critical minerals, Bloomberg News reported on Friday.

The potential deal would include incentives such as minimum price guarantees that could favor non-Chinese suppliers, the report said, citing an "action plan".

The EU and US would also ⁠cooperate on standards, investments ⁠and joint projects, along with increased coordination on any supply disruptions by countries like China, the report added.

The European Commission declined to comment on the report. The office of the ⁠US Trade Representative did not immediately respond to Reuters' requests for comment.

EU trade commissioner Maros Sefcovic said in March he had a "very positive" meeting with US Trade Representative Jamieson Greer on the sidelines of a World Trade Organization ministerial meeting in Cameroon, where the two sides agreed to further advance work on ⁠critical ⁠minerals and also discussed tariffs.

The EU-US deal would cover “critical minerals along the entire value chain and life-cycle management, including exploration, extraction, processing, refining, recycling and recovery,” Bloomberg reported, citing a non-binding memorandum of understanding.

The US has been scrambling to get access to critical mineral reserves, especially rare earth supply chains currently dominated by Chinese players.

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Gold Set for Third Weekly Gain as US Rate Outlook Offsets Dollar Strength

FILE PHOTO: Customers crowd around a jewelry showroom during Akshaya Tritiya, a major gold-buying festival, in Kochi, India April 28, 2017. REUTERS/Sivaram V/File Photo
FILE PHOTO: Customers crowd around a jewelry showroom during Akshaya Tritiya, a major gold-buying festival, in Kochi, India April 28, 2017. REUTERS/Sivaram V/File Photo
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Gold Set for Third Weekly Gain as US Rate Outlook Offsets Dollar Strength

FILE PHOTO: Customers crowd around a jewelry showroom during Akshaya Tritiya, a major gold-buying festival, in Kochi, India April 28, 2017. REUTERS/Sivaram V/File Photo
FILE PHOTO: Customers crowd around a jewelry showroom during Akshaya Tritiya, a major gold-buying festival, in Kochi, India April 28, 2017. REUTERS/Sivaram V/File Photo

Gold steadied on Friday as US-Iran ceasefire uncertainty lingered, but the metal stayed on course for a third consecutive weekly climb as investors priced in earlier and deeper US rate cuts, supporting non-yielding bullion.

Spot gold held its ground at $4,764.54 per ounce by 0532 GMT. The metal, however, has gained 1.8% so far this week.

US gold futures for June delivery fell 0.6% to $4,787.80.

The ‌dollar index strengthened, ‌making greenback-priced bullion more expensive for holders of other currencies, Reuters said.

"There's ‌a ⁠lack of clarity ⁠about the way that the ceasefire is evolving in the Middle East and what that means to energy markets... so we're in sort of a little bit of a holding pattern (with gold) going into the final session of the week," said Kyle Rodda, senior financial market analyst at Capital.com.

Spot gold has fallen about 10% since the US-Israel conflict with Iran ⁠erupted on February 28, with elevated energy prices sparking ‌inflation concerns and the prospect of ‌higher US interest rates.

The fragile two-week ceasefire between the US and Iran showed further ‌strain on Friday, as Washington accused Tehran of breaching promises on ‌the Strait of Hormuz.

Brent crude, however, has slid more than 11% this week on optimism that the ceasefire could reopen the Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas passes.

"If things break down, (gold) ‌could end up back in mid-$4,000's pretty quickly. But if the ceasefire holds and the peace deal starts ⁠to look more ⁠likely, then we could push through $5,000," Rodda added.

On the data front, the US Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge, advanced 2.8% in the 12 months through February, in line with estimates, and likely rose further in March.

Investors are now looking out for March's US Consumer Price Index data, due later in the day, for further clues on Fed's monetary policy direction.

Markets are pricing in a 31% chance for a US rate cut of at least 25 basis points at the Fed's December meeting, according to CME's FedWatch Tool, up from 20% in the prior session.

Among other metals, spot silver rose 1.3% to $76.03 per ounce, platinum lost 2% to $2,061.10, and palladium fell 0.2% to $1,553.92.