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Kuwait Unveils Plan to Prepare Durra Field, Sovereign Investment Fund for Local Investment

People watch as the "buck moon" rises over the skyline of Kuwait City on July 3, 2023. (AFP)
People watch as the "buck moon" rises over the skyline of Kuwait City on July 3, 2023. (AFP)
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Kuwait Unveils Plan to Prepare Durra Field, Sovereign Investment Fund for Local Investment

People watch as the "buck moon" rises over the skyline of Kuwait City on July 3, 2023. (AFP)
People watch as the "buck moon" rises over the skyline of Kuwait City on July 3, 2023. (AFP)

The Kuwaiti government has announced a plan to strengthen the comprehensive infrastructure of the offshore Durra oil and gas field.

Not only that, the government will also look to elevate the production of unrestricted gas (excluding the Divided Zone) from 521 million cubic feet per day to a staggering 930 million cubic feet per day.

The recently unveiled four-year government action plan, spanning from 2023 to 2027, has been submitted to the National Assembly, outlining the meticulous preparations for the infrastructure development of the Durra field.

According to the plan, the infrastructure provisioning for the field is slated to take place in the fourth year of the program.

Parliament Speaker Ahmed Al-Sadoun has extended an invitation to convene a special session next Tuesday to discuss the government’s action plan.

The government has revealed its intention to study the establishment of a sovereign investment fund to drive development and enhance local economic activity.

Additionally, it includes a strategy to elevate the classification of Kuwait’s financial markets from emerging markets to advanced emerging markets by the FTSE Russell Index.

Moreover, another plan aims to gradually digitize 90% of government services over the next four years.

The government plan aims to empower the private sector to fulfill its role “under effective state oversight” while ensuring that the state establishes an atmosphere of trust to encourage local investment and attract foreign capital.

The government’s action program also includes the development of a comprehensive framework for reviewing salaries in the public sector through updating the strategic alternative study.

This is intended to align compensation with merit and productivity, while encouraging a shift towards private sector employment to streamline costs on the state’s finances.

Prime Minister Sheikh Ahmed Nawaf Al-Ahmad Al-Jaber Al-Sabah emphasized that the government’s action program aims to solidify reforms, address challenges, and boost development for the progress of the country.

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Business

Saudi Air Connectivity Program, Saudia Boost Operational Capacity to China and the US

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Air Connectivity Program, Saudia Boost Operational Capacity to China and the US

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Air Connectivity Program (ACP), in collaboration with Saudia, has announced an increase in seat capacity across several international routes in 2026.

The new step reflects ongoing efforts to strengthen the Kingdom’s air connectivity with global markets, keep pace with growing travel demand, facilitate access to Saudi Arabia, and provide travelers with broader and more flexible travel options.

Direct routes between Saudi Arabia and China have seen increased seat capacity.

An additional weekly flight has been added to the Guangzhou-Jeddah (CAN-JED) route, bringing the total to four weekly flights and providing more than 124,000 seats annually in both directions.

An additional weekly flight has also been added to the Beijing Daxing-Riyadh (PKX-RUH) route, bringing the total to three weekly flights, with annual capacity exceeding 93,000 seats in both directions.

In addition, direct connectivity between Saudi Arabia and the United States has been enhanced with three additional weekly flights on the New York-Jeddah (JFK-JED) route, bringing the total to seven weekly flights and providing more than 211,000 seats annually in both directions.

These efforts build on the ongoing collaboration between the Air Connectivity Program and Saudi national carriers to expand the international destination network and strengthen the Kingdom’s connectivity with priority markets.

They also aim to meet growing travel demand, increase seat capacity, provide travelers with more diverse and flexible options, and facilitate the arrival of more international visitors to the Kingdom.

These efforts contribute to achieving the objectives of the National Tourism Strategy and the Aviation Sector Strategy, in alignment with the goals of Saudi Vision 2030.

The Air Connectivity Program aims to support the growth of Saudi Arabia’s tourism sector by strengthening air connectivity with global markets, developing existing air routes, and launching new international destinations.

These efforts contribute to the Kingdom’s target of connecting to 250 international destinations by 2030.

The program serves as an executive enabler of the National Tourism Strategy and the Aviation Program by building partnerships with government and private-sector entities across the tourism and aviation ecosystems, strengthening Saudi Arabia’s position as a leading global tourism destination.

Business

Gold Retreats after Scaling over 2-month Peak on US Treasury Move

AFP_A photo shows gold bangles and necklaces for sale at a gold shop at the Grand Baazar in Istanbul
AFP_A photo shows gold bangles and necklaces for sale at a gold shop at the Grand Baazar in Istanbul
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Gold Retreats after Scaling over 2-month Peak on US Treasury Move

AFP_A photo shows gold bangles and necklaces for sale at a gold shop at the Grand Baazar in Istanbul
AFP_A photo shows gold bangles and necklaces for sale at a gold shop at the Grand Baazar in Istanbul

Gold fell on Thursday as investors booked profits after prices climbed to a more than two-month peak on a surprise US Treasury liquidity-support announcement for long-duration bonds, which weakened the dollar and lowered Treasury yields.

Spot gold was down 0.7% to $4,488.19 per ounce by 0750 GMT. Earlier, bullion was at $4,525.79, its highest since June 2, after a more than 4% advance on Wednesday.

US gold ‌futures were little ‌changed at $4,546.30. The US Treasury Department said ‌it ⁠would double the ⁠size of liquidity support buyback operations for longer-dated notes and bonds. That came after a major bond selloff as investors demanded higher returns on the back of increased inflationary risks stemming from the US-Israeli war on Iran.

The US dollar was hovering near three-month lows.

"There was obviously a huge rally (in gold), and ⁠there's going to be a degree of digestion ‌in markets after a big ‌move like that," said Ilya Spivak, head of global macro at Tastylive.

"The $4,400 ‌to $4,500 price range has been cleared. If prices hold above ‌this range, the upward momentum is likely to continue." Meanwhile, total US debt outstanding topped $40 trillion for the first time, drawing fresh warnings of fiscal crisis.

"Increasing concern about the financial stability of the market with ‌borrowing and debt and the inability to cut spending on the fiscal side is very ⁠bullish for ⁠gold," said Edward Meir, Marex analyst. Concerns over inflation deepened at the Federal Reserve's meeting last month, with "several" policymakers ready to raise interest rates, minutes of the session showed on Wednesday.

Traders are currently pricing in a 69% chance of a Fed hold and a 31% chance of a rate hike in September, according to the CME FedWatch Tool.

While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish non-yielding bullion's appeal.

Among other metals, spot silver fell 0.5% to $66.60 per ounce, platinum dropped 1.6% to $1,794.91, and palladium slid 0.5% to $1,325.94.

Business

Oil Hits 3-week High on Middle East Supply Concerns amid War Impasse

Oil platforms operated by Australian company Santos (Company website)
Oil platforms operated by Australian company Santos (Company website)
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Oil Hits 3-week High on Middle East Supply Concerns amid War Impasse

Oil platforms operated by Australian company Santos (Company website)
Oil platforms operated by Australian company Santos (Company website)

Oil prices climbed to three-week highs on Thursday, driven by concerns that the impasse in the Iran war will continue to disrupt supply from the key Middle Eastern producing region.

Brent crude futures for October delivery rose $1.20, or 1.3%, to $92.82 a barrel by 0813 GMT, while US West Texas Intermediate crude futures for September added 92 cents to $86.75 a barrel. The more-active October WTI contract was ‌up $1.13, or 1.3%, ‌to $85.52.

Both Brent and WTI benchmarks hit their highest ‌since ⁠late July during the ⁠session, gaining for a fifth straight session and having settled on Wednesday at their highest since July 24. The September WTI contract expires later on Thursday, Reuters said.

"Tensions in the Middle East remain high, leaving room for further supply disruptions," said UBS analyst Giovanni Staunovo. "Lower oil exports from the Middle East are once again tightening the oil market." The UAE's decision to suspend all financial and economic transactions with Iran until ⁠further notice has refocused the spotlight on fraught ties between ‌the major Gulf Arab oil producer and Iran.

"Oil ‌prices remained elevated as the market is supported by sporadic attacks in the Middle ‌East but lacks fresh momentum without a major escalation," said Hiroyuki Kikukawa, chief strategist ‌of Nissan Securities Investment.

"The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions ...," he added. On Tuesday, US President Donald Trump said no talks were taking place with Iran ‌and that the Strait of Hormuz was open. Iran, however, said the waterway remained shut. Trump on Wednesday warned of ⁠economic consequences against ⁠any country that provided "any type of lifeline to Iran". Shipping traffic through the strait on Wednesday was unchanged from the day before as discussions to end the conflict remained deadlocked, according to the latest shipping data.

Prior to the war that began with US and Israeli strikes on Iran on February 28, shipments equal to about one-fifth of global consumption moved through the waterway. Current flows are far below pre-war levels.

The war has also impacted the supply of refined fuels and drawn down inventories with less crude available to refiners.

US stockpiles of distillate fuel, including diesel and heating oil, fell last week for a third week, the Energy Information Administration said on Wednesday. However, crude inventories unexpectedly rose by 4.4 million barrels.