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Saudi Crown Prince Emphasizes Kingdom’s Commitment to Stable Oil Supplies to Japan

Saudi Crown Prince Mohammed bin Salman holds a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum. (SPA)
Saudi Crown Prince Mohammed bin Salman holds a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum. (SPA)
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Saudi Crown Prince Emphasizes Kingdom’s Commitment to Stable Oil Supplies to Japan

Saudi Crown Prince Mohammed bin Salman holds a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum. (SPA)
Saudi Crown Prince Mohammed bin Salman holds a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum. (SPA)

Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia, underscored on Tuesday the Kingdom’s commitment to maintaining the supply of crude oil to Japan, pointing to Riyadh’s desire to boost cooperation with Tokyo in other fields, including clean energy.

He made his remarks during a video call with Japanese Prime Minister Fumio Kishida on the sidelines of the Saudi Arabia-Japan Vision 2030 Forum, which witnessed an agreement to announce the Saudi-Japanese Partnership Council.

Kishida expressed his gratitude to the Kingdom for the steady supplies of crude oil to his country, highlighting Saudi Arabia’s leading role in stabilizing the global oil market and supporting global supply chains for clean energy.

The leaders also tackled bilateral economic and investment cooperation in energy and joint investments, research related to the climate initiative, environmental sustainability, environmental protection, and means to reduce the effects of climate change.

Crown Prince Mohammed highlighted the growth of bilateral trade exchange in recent years and the aspiration to work with Japanese companies in a number of promising fields and giant projects, stressing that Japan is Saudi Arabia’s largest investment destination.

Kishida expressed his happiness at handing over the torch of Expo 2025 Osaka, Kansai, to Saudi Arabia in 2030, noting Japan’s effort to encourage further growth in the fields of entertainment, tourism, education and sports.

During the Saudi-Japan Vision 2030 Business Forum in Japan, Saudi Minister of Energy Prince Abdulaziz bin Salman announced that the Kingdom had achieved new global records in reducing the cost of electricity production from wind energy, through the AlGhat and Wa’ad Alshamal projects.

The Saudi Power Procurement Company signed two power purchase agreements with a consortium led by investment conglomerate Marubeni to purchase power from the AlGhat (600 MW) and Wa’ad Alshamal (500 MW) wind projects.

The signing of the two purchase agreements came after a public competition for five bids for each project. Both projects achieved new global records for wind energy projects in terms of the total cost of electricity production.

Oil experts said Saudi Arabia’s new achievements align within the country’s efforts to diversify energy sources, boost its global position in exporting renewable and sustainable energy, as well as increasing its use of clean energy, reducing carbon emissions and preserving the environment in line with the goals of Vision 2030.

They stressed that the Kingdom possesses great capabilities in the production and export of renewable energy, such as wind, solar and hydrogen energy, as well as a suitable investment environment. They pointed to the launch of huge projects worth billions of riyals, and strategic plans that will transform Saudi Arabia into one of the most important countries that export all types of renewable energy.

In remarks to Asharq Al-Awsat, former chief advisor to the Saudi Ministry of Energy Dr. Mohammad Srour Al-Sabban said Saudi Arabia has achieved new world records in reducing the cost of producing electricity from wind energy.

He added that this was a very important step within the roadmap of Vision 2030 and its goals to raise the share of electrical production relying on renewable energy to 50 percent.

This approach will save the amount of liquid feedstock used for electric power generation, which will be liberated from oil and directed for export, in addition to reducing the cost of production in wind energy projects, he explained.

Oil expert Dr. Fahad Mohammed bin Jumah told Asharq Al-Awsat that this achievement will contribute greatly to decreasing the costs of electricity production in Saudi Arabia and achieving the Kingdom’s plans to curb the dependence on gas to about 50 percent.

Meanwhile, the forum saw the signing of more than 30 memorandums of understanding in the fields of energy, manufacturing, and financial activities.

Minister of Energy and Minister of Investment Khalid Al-Falih met with Japanese Minister of Economy, Trade and Industry Ken Saito, who said Saudi Arabia is the largest supplier of crude oil to Japan, and one of the most important partners in energy security.

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Business

Two India-bound LPG Tankers Crossing Strait of Hormuz Out of Gulf

An oil tanker crossing the Strait of Hormuz (Reuters)
An oil tanker crossing the Strait of Hormuz (Reuters)
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Two India-bound LPG Tankers Crossing Strait of Hormuz Out of Gulf

An oil tanker crossing the Strait of Hormuz (Reuters)
An oil tanker crossing the Strait of Hormuz (Reuters)

Two liquefied petroleum gas tankers, BW Elm and BW Tyr, are crossing the Strait of Hormuz bound for India, according to ship tracking data from LSEG and Kpler.

The US-Israeli war against Iran has all but halted shipping through the strait, but Iran said this week that "non-hostile vessels" may transit the waterway if they coordinate with Iranian authorities.

The two India-flagged vessels have ⁠crossed the Gulf ⁠area and are in the eastern Strait of Hormuz, the data showed, according to Reuters.

India is gradually moving its stranded LPG cargoes out from the strait, with four LPG tankers moved so far - Shivalik, Nanda Devi, ⁠Pine Gas, and Jag Vasant.

As of Friday, 20 Indian-flagged ships including five LPG carriers were stranded in the Gulf, Rajesh Kumar Sinha, special secretary in the federal shipping ministry, said.

LPG carriers Jag Vikram, Green Asha and Green Sanvi are still in the western Strait of Hormuz, LSEG data show.

India, the world's second-largest LPG importer, is ⁠battling its ⁠worst gas crisis in decades, with the government cutting supplies for industries to shield households from any shortage of cooking gas.

The country consumed 33.15 million metric tons of LPG, or cooking gas, last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East.

India is also loading LPG onto its empty vessels stranded in the Gulf.

Business

Saudi East-West Pipeline is Pumping Oil at its Full Capacity

King Fahd Industrial Port in Yanbu (SPA)
King Fahd Industrial Port in Yanbu (SPA)
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Saudi East-West Pipeline is Pumping Oil at its Full Capacity

King Fahd Industrial Port in Yanbu (SPA)
King Fahd Industrial Port in Yanbu (SPA)

Saudi Arabia’s crucial East-West pipeline that circumvents the Strait of Hormuz is pumping oil at its full capacity of 7 million barrels a day, a person familiar with the matter told Bloomberg.

The technical milestone is the culmination of the Kingdom’s longstanding contingency plan for keeping its oil flowing after the effective closure of their main export route. Flotillas of tankers have been redirected to the Red Sea port of Yanbu to collect the oil, providing an important lifeline for global supply.

Crude exports via Yanbu have now reached about 5 million barrels a day and the kingdom is also exporting 700,000 to 900,000 barrels a day of refined products, according to the person familiar with the Saudi oil industry. Of the 7 million barrels a day that go through the pipeline, 2 million are destined for Saudi refineries, Bloomberg said.

Running the breadth of the Arabian Peninsula from the massive oil fields in the east of the country to the industrial port city of Yanbu, the pipeline is more than 1,000 kilometers (620 miles) long.

Oil prices rose on ​Friday and notched weekly gains, reflecting scepticism about prospects for a ceasefire in the month-old Iran war.

Brent crude futures rose by $4.56, or 4.2%, to $112.57 a barrel. US West Texas Intermediate futures rose $5.16, or 5.5%, to settle at $99.64.

The Brent benchmark has jumped 53% since February 27, the day before the US and Israel launched strikes against Iran, while WTI has gained 45% since then. On a weekly basis, Brent gained about ‌0.3%, while WTI ‌gained over 1%.

Business

A Year After Crown Prince’s Decisions, Riyadh Real Estate Exits Speculation, Transaction Values Down 64%

File photo of Saudi Arabia's capital Riyadh - SPA
File photo of Saudi Arabia's capital Riyadh - SPA
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A Year After Crown Prince’s Decisions, Riyadh Real Estate Exits Speculation, Transaction Values Down 64%

File photo of Saudi Arabia's capital Riyadh - SPA
File photo of Saudi Arabia's capital Riyadh - SPA

One year after a package of landmark decisions issued by Crown Prince Mohammed bin Salman on March 29, 2025 to rebalance Riyadh’s real estate market, a new trajectory is taking hold across the capital, particularly in its northern districts.

Data from the Real Estate Exchange showed a clear retreat in speculative activity that had strained the market for years, with transaction values recording a sharp 64% decline, marking the start of a “major correction” toward a more a sustainable real estate model that places the needs of citizens and genuine developers at the center of the market.

The Crown Prince’s directives outlined a new path for the market through a set of key executive measures, including lifting restrictions on millions of square meters in northern Riyadh, activating fees on vacant land to boost housing supply, freezing rent increases, and regulating contractual relations between landlords and tenants. These steps have contributed directly to stabilizing housing costs and curbing unjustified price surges seen in recent years.

The impact of these structural reforms was reflected in data from the Real Estate Exchange affiliated with the Ministry of Justice, which showed a 64% drop in transaction values. Transactions stood at around 53,000 deals worth more than $17.3 billion (65 billion riyals), compared with approximately $48.3 billion (181 billion riyals) in the year preceding the decisions. Total traded land area also declined to 153,000 square meters from 228,000 square meters, which experts attribute to a shift in liquidity from large-scale land speculation to organized residential development projects.

Reshaping the real estate market

Real estate specialists told Asharq Al-Awsat that these measures have reshaped Riyadh’s property market toward a more sustainable model driven by real development and genuine housing demand, guiding it toward greater balance, maturity, price stability, and closer alignment between real estate products and actual market needs. They added that this transformation represents a significant step toward building a more sustainable market capable of keeping pace with the Kingdom’s economic changes.

Real estate expert and marketer Saqr Al-Zahrani told Asharq Al-Awsat that the impact of these decisions has led to a clear structural shift in the market. He said the decline in transaction values does not reflect weak activity as much as it reflects a retreat in speculative practices that had pushed prices beyond levels linked to real housing demand.

He added that the balancing measures helped establish a new pricing benchmark for residential land, particularly with the offering of supported land at around 1,500 riyals per square meter, which has reset price expectations in several districts and curbed unjustified increases seen in recent years.

He noted that undeveloped land in northern Riyadh has experienced what he described as a “free fall” in prices, according to market reports, with some locations seeing significant declines after years of rapid increases fueled by speculation and growth expectations. He said this decline is viewed as part of a natural correction process that re-prices land based on more realistic criteria tied to development value and actual housing demand.

From speculation to development

Al-Zahrani said that over the past year, several key trends have emerged, most notably a shift in liquidity from speculation toward real estate development, with greater focus on structured development projects instead of trading undeveloped land. He added that the genuine homebuyer has re-emerged as the main driver of the market following a decline in short-term investors.

He also said early off-plan sales projects have begun to emerge, both in housing units and developed land, a model expected to expand in the coming period as it helps increase housing supply and reduce ownership costs. The market is also awaiting new regulations, particularly fees on vacant properties, which are expected to bring idle assets into use and improve the efficiency of real estate stock within cities.

Al-Zahrani said the Riyadh real estate market is likely to move toward a more mature and sustainable phase, with expected growth in off-plan projects and increased supply driven by continued regulatory reforms, which could lead to price stability and a better balance between supply and demand.

He added that current market conditions do not reflect a slowdown as much as a restructuring phase toward a more sustainable model based on real development and genuine housing demand, supporting urban development goals and enhancing quality of life in the capital.

Market behavior

For his part, real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that Riyadh’s real estate market has entered a pivotal stage in its economic cycle. He said the changes seen over the past year cannot be explained solely by transaction volumes or values, but must be understood within a broader context of reshaping market behavior and recalibrating the relationship between supply and demand.

He added that in the years preceding these decisions, the market saw rapid price increases driven by several factors, including rising demand, accelerated urban growth, and the entry of various investment segments. Over time, rebalancing became necessary to ensure market sustainability and limit unjustified price increases.

Al-Mousa said the decline in transactions over the past year can be seen as a natural reflection of a recalibration phase, during which buyers tend to pause and reassess investment decisions, while developers and owners review pricing and marketing strategies in line with new conditions.

He noted that one of the most prominent features of this period has been increased awareness among market participants, with purchasing decisions becoming more closely tied to value and economic feasibility rather than short-term price expectations. Some real estate companies have also begun restructuring their sales and marketing models, including offering longer payment plans and redesigning products to better match market needs.

The expert said this phase has contributed to reducing speculative activity that previously influenced price movements in some areas, encouraging a stronger shift toward actual land development rather than holding land as idle assets awaiting price increases.

He added that what is happening in Riyadh’s real estate market today does not represent a downturn but a transitional phase reshaping market rules- from one driven by price speculation to a more mature and stable market based on real asset value and long-term development efficiency. This, he said, marks an important step toward building a more sustainable market aligned with the Kingdom’s economic transformation.

Al-Mousa concluded that the Riyadh real estate market is expected to continue on a more balanced and mature path in the coming period, with competition increasingly tied to product quality, development efficiency, and alignment with actual market needs, alongside ongoing major projects that will keep the sector a key driver of economic growth.