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Saudi Arabia Acquires Turkish Drones

The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
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Saudi Arabia Acquires Turkish Drones

The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)

The Saudi Ministry of Defense has signed a memorandum of understanding with the Turkish company Baykar to acquire drones to bolster the Kingdom's defense and manufacturing capabilities.

Saudi Arabia and Türkiye signed five agreements encompassing investment, the defense industry, energy, and communications.

The agreements were signed in the presence of the Saudi Crown Prince and Prime Minister, Prince Mohammed bin Salman, and Turkish President Recep Tayyip Erdogan, who is visiting Riyadh.

Saudi Defense Minister Prince Khalid bin Salman announced signing an executive plan for defense cooperation with Türkiye's Minister of National Defense Yasar Guler.

Prince Khalid bin Salman announced the signing of two acquisition contracts between the Ministry of Defense and the Turkish company Baykar for defense industries, according to which the Saudi side will acquire unmanned aircraft to increase the armed forces' readiness and strengthen the Kingdom's defense and manufacturing capabilities.

The Minister announced that he signed a defense cooperation plan with his Turkish counterpart, in line with the two friendly countries' military and defense cooperation efforts.

- Exchange of expertise

On Tuesday, the Saudi Ministry of Defense stated that the executive plan aims to promote collaboration between the defense ministries of both countries in various areas, such as defense capabilities, industries, research and development, production, and the exchange of experiences.

It also emphasizes bilateral cooperation in joint projects to transfer and localize technologies, support defense industries, and foster collaboration in research and development.

According to the Ministry of Defense, the two acquisition contracts signed with Baykar aim to boost the armed forces' readiness and enhance the Kingdom's defense and manufacturing capabilities.

The acquisition contracts also prioritize the localization of the drone industry and its constituent systems within the Kingdom. National companies specializing in military and defense industries will actively participate in this localization effort.

The contracts encompass provisions for training, support services, technology and knowledge transfer, and the development of local capabilities.

The acquisitions are expected to create job opportunities for Saudi youth, enhance local capacities, and contribute to the Kingdom's vision of localizing over 50 percent of total military spending by 2030.

The executive plan for defense cooperation and the acquisition contract confirm the Ministry of Defense's support and embodies the Kingdom's Vision that aims to localize military industries in manufacturing and supporting systems.

Baykar said the deal includes knowledge transfer and joint production.

"This cooperation aims not only to strengthen the bond between our countries but also contribute to regional and global peace," Baykar said in a press release.

Baykar added that 75 percent of its revenue has come from exports since it began drone research and development in 2003.

- Contracting sector

Meanwhile, the head of the Independent Industrialists and Businessmen Association (Musiad), Mahmut Asmali, asserted that the support of the two governments in creating the investment environment enhances building alliances between Saudi and Turkish companies.

Asmali told Asharq Al-Awsat that Saudi Arabia and Türkiye are the region's two most important Islamic countries, considering the development of these relations and the signing of such agreements between businessmen to enhance inter-relationships and investments.

Saudi Arabia has set several goals for 2030 that include large economic projects, said Asmali, stressing that officials and companies in Türkiye are aware of these projects.

He stressed the readiness of Turkish companies to cooperate with their Saudi counterparts to achieve Vision 2030, especially in the contracting sector.

Asmali announced the readiness to transfer Turkish expertise to Saudi partners in several industries, including foodstuffs, tourism, technology, and modern technologies.

He announced that 200 Turkish companies in various sectors participated in the Saudi-Turkish Business Forum held in Jeddah on Monday.

The Forum was launched by the Investment Minister, Khalid al-Falih, and the Turkish Minister of Trade, Omar Bolat.

It included representatives from companies and the private sector from both sides to expand and strengthen trade and investment relations between the two countries.

The Forum witnessed the signing of nine memorandums of understanding, including energy, real estate, construction, education, digital technologies, health, and media.

Falih said that the Saudi-Turkish economic partnership has great potential and is a main engine for boosting investments between the two countries.

He stated that the Forum aims at cooperation and partnership to review the investment opportunities in both countries.

He touched on the National Investment Strategy to enable diversified investments, develop opportunities, improve the business environment, and boost the Kingdom's competitive position on the global investment map.

The Turkish Minister of Trade stated that the Kingdom and Türkiye are emerging economic powers with significant competitive advantages.

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China, US Agree to $30 Billion Tariff Cut, AI Dialogue

WASHINGTON, DC - SEPTEMBER 25: US President Donald Trump (R) and President of China Xi Jinping (L) speak as they depart following a tour of the National Archives Museum on September 25, 2026 in Washington, DC. Win McNamee/Getty Images/AFP
WASHINGTON, DC - SEPTEMBER 25: US President Donald Trump (R) and President of China Xi Jinping (L) speak as they depart following a tour of the National Archives Museum on September 25, 2026 in Washington, DC. Win McNamee/Getty Images/AFP
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China, US Agree to $30 Billion Tariff Cut, AI Dialogue

WASHINGTON, DC - SEPTEMBER 25: US President Donald Trump (R) and President of China Xi Jinping (L) speak as they depart following a tour of the National Archives Museum on September 25, 2026 in Washington, DC. Win McNamee/Getty Images/AFP
WASHINGTON, DC - SEPTEMBER 25: US President Donald Trump (R) and President of China Xi Jinping (L) speak as they depart following a tour of the National Archives Museum on September 25, 2026 in Washington, DC. Win McNamee/Getty Images/AFP

China and the US have agreed to a $30 billion reciprocal tariff-reduction arrangement and to launch dialogue on AI, under an eight-point consensus reached during Chinese President Xi Jinping's visit to the US, China's Ministry of Foreign Affairs said.

The two sides recognized the work of their economic teams and endorsed steps including the establishment of a trade council, the tariff-reduction arrangement and an extension of outcomes from earlier talks in Kuala Lumpur, the ministry said.

The United ⁠States and China ⁠had earlier agreed to extend by two months a trade truce that was due to expire on November 10, allowing more time to work on a potentially bigger trade deal, US Treasury Secretary Scott Bessent said on Wednesday.

The leaders of ⁠the world's two largest economies ended a three-day summit that showcased personal diplomacy rather than big public breakthroughs. Xi has since landed in Beijing, Chinese state media Xinhua reported on Saturday.

On artificial intelligence, the two sides agreed to establish a dialogue to discuss the technology's risks and benefits, with the next round of discussion set for November, and to set up a communication channel for AI-related incidents, according to the ⁠ministry.

They ⁠also agreed to support each other in hosting the Asia-Pacific Economic Cooperation leaders' meeting and the Group of Twenty summit, with both leaders signaling their intention to attend the gatherings hosted by the other, Reuters reported.

On foreign policy, the leaders agreed that Iran should fulfil its commitment not to develop nuclear weapons, and that no country or entity should impose transit tolls on international waterways, the ministry said. They also recalled that China and the United States fought as allies in World War Two.

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Gold Rises, but on Track for Weekly Loss as Fed Rate Hike Expectations Build

FILE PHOTO: A raw gold bar is displayed at Nigeria’s booth at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: A raw gold bar is displayed at Nigeria’s booth at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov/File Photo
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Gold Rises, but on Track for Weekly Loss as Fed Rate Hike Expectations Build

FILE PHOTO: A raw gold bar is displayed at Nigeria’s booth at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: A raw gold bar is displayed at Nigeria’s booth at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. REUTERS/Maxim Shemetov/File Photo

Gold prices rose on Friday but was on track for a weekly loss, as rising US Treasury yields and growing expectations of Federal Reserve rate hikes weighed on the metal.

Spot gold was up 0.6% at $4,303.19 per ounce by 1210 GMT, but was down about 1.7% so far this week. US gold futures rose 1% to $4,339.

US and Iranian negotiators in New York are seeking a deal that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said.

"Gold finds support today as oil prices pull back on renewed hopes for a US-Iran deal," said Nikos Tzabouras, a senior market analyst at Jefferies-owned Tradu.com.

"That said, the precious metal is heading for weekly losses, as higher Fed rates and bond yields raise the opportunity cost of holding gold."

The Fed raised interest rates by a quarter-point last week, its first hike in three years, and flagged more hikes follow. Traders are pricing in a 71% chance of an October hike and a 95% chance of an increase in December, according to the CME FedWatch Tool.

Although gold is traditionally seen as a hedge against inflation, higher rates dampen demand as investors shift to yield-bearing assets.

Gold demand in India picked up modestly this week as lower prices drew in buyers ahead of the festive season.

Oil prices fell, and the dollar eased about 0.3%, making greenback-priced bullion more affordable for holders of other currencies.

"Lingering deficit fears could revive the debasement trend that drives investors toward hard assets like gold. Alongside persistent central bank demand, the precious metal has a credible case for a strong fourth-quarter recovery, should the macro winds begin to shift," said Tzabouras.

Spot silver gained 1.4% to $64.82 per ounce, platinum added 1.7% to $1,777.38 and palladium fell 0.4% to $1,269.77. All three metals were poised for weekly losses.

Business

Dollar Falls as Oil Eases, Yen Rallies on Japan Remarks

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)
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Dollar Falls as Oil Eases, Yen Rallies on Japan Remarks

US dollar banknotes (Reuters)
US dollar banknotes (Reuters)

The dollar fell on Friday as oil prices eased, but was poised for a second straight weekly advance on growing rate hike bets, while the yen rallied after Japan said Tokyo and Washington remain committed to the stance behind July's joint intervention.

The dollar was on track to snap a four-day streak of gains as crude prices fell more than 1%.

Global oil prices have eased but still they remain above $100 a barrel, maintaining upward pressure on inflation.

Comments from central bank officials flagging inflation concerns and support for more rate increases after last week's rate hike of 25 basis points have boosted market expectations for a more aggressive path of monetary policy and helped spark a jump in US Treasury yields.

"We've had like a pretty aggressive rally in the dollar over the last couple of days and maybe it's a little stretched, just taking a little breather. So I wouldn't really say that the dollar is really weakening materially today," said Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut.

"It's just a combination of those factors that you have not only a slight increase in odds of a second hike before year-end, but also just general bond yields going up and the market getting a bit concerned about that, so that's really what we have, what's been driving the dollar stronger overall."

DOLLAR INDEX POISED FOR BIGGEST DROP IN THREE WEEKS

The dollar index, which measures the dollar against five other currencies, fell 0.34% and was on track for its biggest daily percentage drop since September 3, to 100.95. The euro was up 0.2% at $1.1402 but on pace for a third straight weekly decline.

Expectations for a rate hike from the Fed at its October meeting stood at about 66%, according to CME FedWatch, up from about 58% a week earlier.

On the data front, new orders for US-manufactured capital goods increased more than expected in August and data for the prior month was revised sharply higher, pointing to another quarter of robust growth in business spending as part of artificial intelligence infrastructure is created.

In a separate report, the University of Michigan's Surveys of Consumers said its Consumer Sentiment Index ticked up to 48.1 from the prior reading of 47.8, above the 47.6 estimate of economists polled by Reuters.

Sterling strengthened 0.24% to $1.3247, supported by hawkish comments from Bank of England Governor Andrew Bailey. Yet it remained close to a three-month low hit on Thursday.

YEN STRENGTHENS AS JAPAN STEPS UP INTERVENTION WARNINGS

The Japanese yen strengthened 1.09%, on pace to snap a four-day streak of declines and its biggest daily gain against the dollar since September 7, to 157.13.

The currency rose after Japan's Finance Minister Satsuki Katayama said US President Donald Trump raised concern about yen weakness during a summit with Japanese Prime Minister Sanae Takaichi earlier this week.

Katayama said this reaffirmed the shared US-Japan stance behind July's joint intervention, adding she and Treasury Secretary Scott Bessent would stay in close contact as policymakers stepped up warnings over renewed yen weakness.

Still, the yen was on track for a second weekly fall, after markets judged the Bank of Japan's rate hike last week to a 31-year high and its latest guidance as insufficiently hawkish.

Elsewhere, the dollar strengthened 0.14% to 6.725 versus the offshore Chinese yuan, as a Trump-Xi summit in Washington showed no signs of breakthroughs at a closed-door meeting on thorny issues such as AI, trade, Taiwan and the Iran war.