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Saudi Arabia Launches $4 Billion Program to Localize Rail Industry

The launch of Asasat Program (Asharq Al-Awsat)
The launch of Asasat Program (Asharq Al-Awsat)
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Saudi Arabia Launches $4 Billion Program to Localize Rail Industry

The launch of Asasat Program (Asharq Al-Awsat)
The launch of Asasat Program (Asharq Al-Awsat)

Saudi Arabia’s Minister of Transport and Logistics, Eng. Saleh Al-Jasser, has announced the launch of the Asasat Program, a collaboration between Saudi Railways Company (SAR) and the Local Content Authority.

The initiative aims to localize the railway industry within the Kingdom, offering investment opportunities exceeding SAR 15 billion Saudi ($4 billion) by 2030.

The announcement was made on Wednesday during the inaugural Saudi Railway Conference and Exhibition in Riyadh. The Asasat Program is part of SAR’s commitment to realizing Saudi Vision 2030, and is built on six pillars aimed at establishing a strong and sustainable rail sector.

The program focuses on enhancing national industry and competitiveness by supporting innovation and developing local services and products. It seeks to incentivize local suppliers and manufacturers through investment opportunities in areas such as train car manufacturing and refurbishment, railway infrastructure construction and maintenance, smart technology development, and sustainability investments.

Al-Jasser highlighted Saudi Arabia’s longstanding history in railways, which began 74 years ago and now spans over 5,500 kilometers across multiple networks, including the Northern Line, Eastern Line, and Haramain High-Speed Railway.

Looking ahead, the Kingdom plans to expand its rail network by an additional 8,000 kilometers in the coming years, solidifying its position as a global logistics hub, the minister said, adding that key projects include the Land Bridge, linking the Arabian Gulf to the Red Sea, and the GCC Railway, connecting Gulf Cooperation Council countries through a modern rail network.

Rail systems, Al-Jasser explained, play a crucial role in facilitating passenger and freight movement, fostering social and economic development, and reducing carbon emissions. Last year, Saudi Arabia became the first country in the region to test a hydrogen-powered train with zero carbon emissions, aligning with its Green Saudi Initiative and net-zero goals.

SAR’s CEO, Dr. Bashar Al-Malik, emphasized Saudi Arabia’s global leadership in innovation and sustainability in transportation. Guided by the National Transport and Logistics Strategy under Vision 2030, SAR oversees one of the largest railway infrastructures in the region. The company plans to invest over SAR 220 billion ($59 billion) by 2030 to integrate transportation systems and support global supply chains.

Al-Malik noted that innovation and digital transformation are key to the future of rail, adding that SAR is expanding its adoption of advanced digital solutions and artificial intelligence to enhance travel experiences and establish sustainable supply chains. He revealed that the company’s local content will reach 60% by next year, supported by programs like Asasat.

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Business

Gold Retreats as Oil Rises and Inflation Fears Grow

Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
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Gold Retreats as Oil Rises and Inflation Fears Grow

Gold bangles on display at a jewelry shop in Varanasi, India (AFP)
Gold bangles on display at a jewelry shop in Varanasi, India (AFP)

Gold prices slipped on Wednesday as escalating tensions in the Middle East continued to stoke inflation concerns, reinforcing expectations of higher US interest rates.

Spot gold fell 0.7% to $4,027.49 per ounce by 0843 GMT. Prices rose over 2% to a session high of $4,100.19 per ounce on Tuesday after soft US inflation data, Reuters reported.
US gold futures for August delivery slid 0.9% to $4,034.00.

Iran's Revolutionary Guard Corps threatened ⁠to close all possible ⁠export corridors benefiting Washington, after Tehran shut the Strait of Hormuz and the US reimposed a naval blockade of Iranian ports. Oil edged higher after closing at a one-month high on Tuesday.

"Higher US crude, gasoline and diesel prices will result in high inflation numbers in ⁠the next print in August, that could keep the tone of some Fed officials on the hawkish side, which is not helping gold," said UBS analyst Giovanni Staunovo.

"In the near-term oil and US gasoline prices will continue to influence gold, as it remains a key driver of US inflation," Staunovo added.

Higher interest rates tend to weigh on gold, as they increase the opportunity cost of holding the non-yielding asset.

Fed Chair Kevin Warsh told ⁠lawmakers ⁠on Tuesday the central bank had "no tolerance for persistently elevated inflation," hinting that the CPI data was not all swell.

Traders are pricing in about a 59% chance of a rate hike in September, according to the CME FedWatch Tool.

Investors now await the US Producer Price Index data due at 1230 GMT today for insights into inflation levels and the monetary policy outlook.

Among other metals, spot silver dipped 0.5% to $58.314 per ounce and platinum gained 0.2% to $1,634.36.

Palladium rose 0.8% to $1,315.05, after gaining 5% in the previous session.

Business

Crude Shipments from Saudi Arabia's Yanbu Port Near Maximum Levels

King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
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Crude Shipments from Saudi Arabia's Yanbu Port Near Maximum Levels

King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)
King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)

Daily crude loadings at Saudi Arabia's Red Sea port of Yanbu are close to maximum levels this week, according to data and industry sources.

Shipments from Yanbu reached 4.7 million barrels per day around July 13, up from 3.36 million bpd around July 10 and broadly in line with 4.6 million bpd around July 2, ⁠according to Signal Ocean data.

Loadings have averaged above four million bpd since June, compared with 973,000 bpd around the same period 2025, the data showed.

Kpler data also show daily loadings averaging around four million barrels in recent weeks.

Saudi Arabia has relied increasingly on Yanbu to export crude amid disruptions to shipping through the Strait of Hormuz during the US-Iran conflict.

Business

BP Sees Boost from Energy Prices in Second Quarter, Expects Lower Net Debt

An illuminated BP logo is seen at a petrol station in Gateshead, Britain September 23, 2021. (Reuters)
An illuminated BP logo is seen at a petrol station in Gateshead, Britain September 23, 2021. (Reuters)
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BP Sees Boost from Energy Prices in Second Quarter, Expects Lower Net Debt

An illuminated BP logo is seen at a petrol station in Gateshead, Britain September 23, 2021. (Reuters)
An illuminated BP logo is seen at a petrol station in Gateshead, Britain September 23, 2021. (Reuters)

BP expects its oil trading result to be slightly higher in the second quarter after an exceptionally strong first quarter, as it continues to profit from a surge in oil prices caused by the Iran war.

The British major flagged higher oil realizations said stronger prices were expected to add a $1.8 billion to $2.1 billion boost to earnings in its oil production and operations business compared with the first quarter.

In its gas and low carbon energy segment, realizations are expected to add a further $500 million to $700 million, it said on Tuesday.

Gas trading results are expected to be broadly unchanged from the previous quarter.

Global benchmark Brent crude prices hit multi-year highs and averaged around $97 per barrel during the April-to-June quarter, up from around $78 in the first quarter and about $67 a year earlier.

BP said refining margins averaged $29.6 per barrel, versus $16.9 in the first quarter.

The company expects upstream production to fall in the second quarter to between 2.17 million and 2.22 million barrels of oil equivalent per day from around 2.34 million boed in the previous three months, due in part to the effects of the crisis.

BP expects net debt to stand at $22 billion to $23 billion at end-June, down from $25.3 billion at the end of March, with a target to reduce this further to $14 billion to $18 billion by the end of next year.

The company made a $2.9 billion payment to redeem €2.5 billion of perpetual hybrid bonds, leaving it with a total of about $13 billion outstanding. It also paid $1.1 billion in Gulf of Mexico settlement liabilities.

Overall, BP expects net debt, hybrid bonds and Gulf of Mexico settlement liabilities to decrease by around a combined $6.3 billion to $7.3 billion from the previous quarter.

Exploration write-offs are seen totaling around $500 million in the second quarter, primarily related to the sale of its stake in the Bay du Nord project offshore Canada.