Saudi Arabia Launches New Industrial Projects in Eastern Province

Eastern Province Governor, Industry Minister review model of new projects – SPA
Eastern Province Governor, Industry Minister review model of new projects – SPA
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Saudi Arabia Launches New Industrial Projects in Eastern Province

Eastern Province Governor, Industry Minister review model of new projects – SPA
Eastern Province Governor, Industry Minister review model of new projects – SPA

Saudi Arabia inaugurated new industrial projects in Dammam on Thursday, as Eastern Province Governor Prince Saud bin Naif opened two major facilities in the city’s First and Second Industrial Zones.

The launch was attended by Industry and Mineral Resources Minister Bandar Alkhorayef, who also chairs the Saudi Authority for Industrial Cities and Technology Zones (MODON), and MODON CEO Majed Al-Argoubi.

Prince Saud highlighted the rapid growth in the Kingdom’s industrial sector, attributing it to strong government backing aligned with Vision 2030 objectives to enhance local content, boost competitiveness, and solidify the Eastern Province’s status as a key industrial hub.

Multi-Storey and Ready-Built Factories

The projects include an eight-storey multi-purpose factory complex in Dammam’s First Industrial City, housing 78 industrial units ranging between 156 and 251 square meters. The facility aims to support small and medium enterprises (SMEs) and entrepreneurs with modern infrastructure, consultancy, and training services in a flexible environment designed to foster expansion and innovation.

In the Second Industrial City, Prince Saud also inaugurated a ready-built factory project comprising 84 units with floor spaces of 700 and 1,500 square meters, spanning more than 92,000 square meters in total.

This development targets light industries, offering opportunities for investors in sectors such as food processing, pharmaceuticals, medical equipment, electrical goods, electronics, and 3D printing.

Among the newly opened projects was a production plant for food and beverage giant PepsiCo. Speaking to Asharq Al-Awsat, Ahmed El-Sheikh, PepsiCo’s President for the Middle East, North Africa, and Pakistan, said the company’s latest investment reflected growing confidence in the Saudi market, fueled by Vision 2030 reforms.

“Saudi Arabia has undergone a remarkable transformation in recent years, making it a highly competitive and attractive investment destination,” he said. “Modernized regulations, streamlined procedures, and robust incentives have opened the door to greater growth and innovation.”

El-Sheikh noted that PepsiCo’s recent expansions—including its Dammam plant and the launch of a regional headquarters in Riyadh—underscore the Kingdom’s strategic role in the company’s regional operations.

The Dammam factory is now one of PepsiCo’s most advanced production sites in the region, with plans to export more than 8,600 tons of products across the Middle East this year.

Boost from Logistics and Tech Infrastructure

“Logistical and infrastructure upgrades under Vision 2030 and the National Industrial Development and Logistics Program (NIDLP) have significantly improved our operational efficiency,” El-Sheikh said.

He cited the implementation of technologies such as a Warehouse Management System (WMS) and a Transport Control Tower (TCT), enabling real-time tracking, better inventory control, and lower operating costs. These advances have enhanced PepsiCo’s delivery speed to regional markets and improved customer experience.

Saudi Arabia’s geographic location also plays a pivotal role, enabling efficient distribution via well-developed land, sea, and air networks.

The Dammam facility has achieved a 84.3% Saudization rate, with women making up more than 21% of the workforce. The expansion has created 30 new jobs in the supply chain, offering fresh opportunities for Saudi youth.

PepsiCo sources 100% of the potatoes used in its snack products from Saudi farms, reinforcing local food security and encouraging sustainable agricultural practices, such as drip irrigation, which has reduced water consumption by 30% compared to 2015 levels.

The company also procures most of its packaging materials domestically, supporting local manufacturers and bolstering the SME ecosystem.

Focus on Innovation and Industry 4.0

“The Saudi snack food market is highly competitive and constantly growing, which pushes us to keep innovating and meeting evolving consumer demands,” El-Sheikh added.

PepsiCo is also integrating Industry 4.0 technologies—including advanced digital systems, solar panels, and water recycling solutions—to enhance operational efficiency and minimize environmental impact.

The latest expansion, valued at SAR 300 million ($80 million), has increased the plant’s production capacity by 19,000 metric tons. The company plans to build on this momentum by boosting local sourcing, improving operational performance, and expanding its use of smart manufacturing technologies.

 

 



China's Producer Inflation Jumps to 4-year High, Squeezing Manufacturers

This picture taken on June 28, 2026 shows women attending an electricity course at the Mulan Build workshop in Hangzhou, in eastern China's Zhejiang province. (Photo by Pedro PARDO / AFP)
This picture taken on June 28, 2026 shows women attending an electricity course at the Mulan Build workshop in Hangzhou, in eastern China's Zhejiang province. (Photo by Pedro PARDO / AFP)
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China's Producer Inflation Jumps to 4-year High, Squeezing Manufacturers

This picture taken on June 28, 2026 shows women attending an electricity course at the Mulan Build workshop in Hangzhou, in eastern China's Zhejiang province. (Photo by Pedro PARDO / AFP)
This picture taken on June 28, 2026 shows women attending an electricity course at the Mulan Build workshop in Hangzhou, in eastern China's Zhejiang province. (Photo by Pedro PARDO / AFP)

China's producer price inflation surged to its highest level in four years in June, piling pressure on manufacturers' profit margins as weak domestic demand limits their pricing power.

China's economy is developing a two-track dynamic as a global AI-fueled export surge is lifting advanced manufacturing, while weak household spending, lackluster investment and the property downturn continue to restrain domestic activity.

The producer price index (PPI) rose 4.1% year-on-year, the highest rate since July 2022, National Bureau of Statistics (NBS) data showed on Thursday, matching the forecast in a Reuters poll and up for the fourth straight month.

The gauge, which logged a 3.9% gain in May, had snapped a years-long deflationary streak in March as energy prices soared in the wake of the Iran war.

The faster growth in factory-gate prices owed partly to a low base of comparison a year earlier, though analysts said soft domestic demand meant deflationary pressures had ⁠yet to ease meaningfully.

"The ⁠latest escalation in US-Iran tensions could deliver some renewed upward pressure on inflation in the near term," said Julian Evans-Pritchard, head of China economics at Capital Economics. "But this will remain limited to a few narrow areas and inflation still looks set to return near zero once energy supply normalizes."

Higher prices in coal mining, electrical machinery, electronics and ferrous metals were among the main factors contributing to the rises in producer prices, according to the NBS. Prices declined in sectors including alcoholic beverages and automobile manufacturing.

Compared with the previous month, PPI fell 0.3% in June following a sharp drop in global oil prices after ⁠the US and Iran agreed on a ceasefire. In contrast, some high-tech and green-transition industries, such as virtual reality equipment, wearables and carbon-based nanomaterials, recorded month-on-month price gains.

Markets hardly budged on the data, with stocks holding steady and the yuan moving up slightly.

Although firmer prices have boosted profits in some upstream and high-tech sectors, manufacturers more reliant on the home market are struggling to pass higher costs on to consumers. This backdrop highlights headwinds policymakers face in their efforts to support the job market and bolster still-soft domestic demand.

Evidence of subdued domestic demand was underscored by China's auto sales, which fell for a ninth consecutive month in June, prompting carmakers to turn to external markets.

Data on consumer prices, which was released alongside PPI, showed some moderation. The consumer price index (CPI) climbed 1.0% last month year-on-year, slowing from a 1.2% increase in May and below an expected 1.1% rise, as price increases for industrial consumer goods eased, ⁠including those for gold jewelry ⁠and gasoline.

On a monthly basis, CPI edged down 0.3%, compared with an expected 0.2% drop and a 0.1% dip in May, Reuters reported.

Core CPI, which excludes volatile food and energy costs, rose 1.0%, the slowest pace since January. Food prices dropped 1.6% year-on-year.

"The data is moving from near-deflation to low positive inflation," said Lynn Song, ING's chief economist for Greater China. "This sort of inflation level is not likely to impede the People's Bank of China from monetary policy action, should it deem it necessary."

China's market regulator has renewed its crackdown on "involution-style" competition, pressing ahead with a campaign to rein in cut-throat price wars that have fueled deflationary pressures.

Excessive competition has led to shrinking corporate profit margins across multiple sectors, including electric vehicles (EVs), solar panels, lithium batteries, steel, cement and food delivery.

Analysts contend that stronger policy intervention is essential to rebalance an economy marked by excess production capacity and weak domestic demand. The export boom has allowed policymakers to postpone more decisive stimulus measures.

"The anti-involution campaign and low base effects would boost inflation again in the first quarter of 2027," Zhaopeng Xing, ANZ's senior China Strategist, said.

"The inflation outlook allows policymakers to remain patient and keep interest rate cut on hold in 2026."


Australia, India Strike Deal on Uranium Exports During Modi Visit

 Australia's Prime Minister Anthony Albanese (R) talks as he stands with Indian Prime Minister Narendra Modi (L) during a press conference at Government House Victoria in Melbourne on July 9, 2026. (AFP)
Australia's Prime Minister Anthony Albanese (R) talks as he stands with Indian Prime Minister Narendra Modi (L) during a press conference at Government House Victoria in Melbourne on July 9, 2026. (AFP)
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Australia, India Strike Deal on Uranium Exports During Modi Visit

 Australia's Prime Minister Anthony Albanese (R) talks as he stands with Indian Prime Minister Narendra Modi (L) during a press conference at Government House Victoria in Melbourne on July 9, 2026. (AFP)
Australia's Prime Minister Anthony Albanese (R) talks as he stands with Indian Prime Minister Narendra Modi (L) during a press conference at Government House Victoria in Melbourne on July 9, 2026. (AFP)

Australia and India reached a deal on Thursday to export Australian uranium to India for use in the nuclear energy industry, while agreeing to deepen cooperation in renewables, critical minerals and green hydrogen.

India has long eyed Australia's uranium reserves to help meet a target of 100 gigawatts of nuclear energy capacity by 2047, while Australia is looking to diversify trade beyond its reliance on China, its top partner.

"Australia and India are close partners and even closer friends," Australian Prime Minister Anthony Albanese ‌told reporters in Melbourne ‌on Thursday, after finalizing the deal with visiting Indian Prime ‌Minister ⁠Narendra Modi.

"The arrangement ⁠facilitates Australian uranium exports to India to help increase the share of non-fossil fuel power capacity, providing an additional market for the Australian resources sector."

Though both nations agreed to a nuclear cooperation pact in 2014, uranium exports have been limited over concerns about ensuring nuclear fuel is used solely for peaceful purposes, such as energy generation.

Modi said on Thursday India's relationship with Australia presented "historic opportunities" for both countries to cooperate across several areas.

Australia's technology, capital and resources could ⁠help accelerate India's energy transition, Modi said.

He also signaled possible cooperation ‌in low-carbon aluminium projects.

"We have historic opportunities to ‌cooperate in this field," Modi said, as he urged Australia's business community to invest long-term in ‌India's road, port, rail and urban infrastructure projects.

"India provides a safe, stable and sustainable ‌growth option for your funds," he said.

Australia's largest pension fund, AustralianSuper, said on Thursday it would invest a further A$500 million ($347 million) in India's National Investment and Infrastructure Fund.

'LIVING BRIDGE'

After meeting Modi at the business event, Albanese called the Indian leader a "living bridge" between Australia and India, saying Modi's vision ‌had helped reshape the roadmap for Australia's economic engagement with India.

India is Australia's fifth-largest trading partner after China, Japan, the US ⁠and South Korea, ⁠while around 1 million people in Australia claim Indian ancestry, out of a population of 28 million.

Modi, who previously visited Australia in 2023, is expected to meet thousands of expatriate Indians at an event in one of the biggest stadiums in Melbourne on Thursday evening.

The Indian leader has staged large-scale events during his overseas trips and has addressed packed stadiums in Britain, the United States and other countries that have large expatriate Indian populations.

Thousands of supporters thronged one of Sydney's biggest indoor stadiums during his last visit three years ago.

Modi arrived in Australia after visiting Indonesia, where he signed a raft of deals on agriculture and defense, including for the BrahMos cruise missile system. He will leave for New Zealand on Friday afternoon before returning to India.


Gold Eases as Middle East Hostilities Revive Inflation Fears

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)
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)
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Gold Eases as Middle East Hostilities Revive Inflation Fears

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)
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)

Gold prices fell on Thursday, hovering near a one-week low, as renewed US-Iran hostilities lifted crude and reignited concerns about inflation and higher-for-longer interest rates.

The US military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain ‌in the ‌latest escalation to derail efforts to end ‌the ⁠war.

Spot gold fell ⁠0.2% to $4,068.77 per ounce by 0522 GMT, after dropping to its lowest since July 1 on Wednesday. U.S. gold futures for August delivery were down 0.1% at $4,077.60.

"The catalyst that is supporting this trend to the downside for gold is a repricing of a second interest rate hike by ⁠the Federal Reserve to come in as early ‌as Q1 next year," ‌said Kelvin Wong, a senior market analyst at OANDA.

"After yesterday's skirmish, that ‌temporary ceasefire agreement between US and Iran is on ‌shaky ground right now, so things could turn pretty fluid again."

Markets are pricing a 68% chance of an interest rate hike in September, and see an 87% chance of an increase in ‌January 2027, the CME FedWatch tool showed.

Concern about high inflation also mounted at the ⁠US central bank's ⁠meeting last month, as officials followed Fed Chairman Kevin Warsh's lead to a more stripped-down policy statement even amid concerns that price increases were broadening and might require interest rate hikes.

While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.

Bank of America said it is reducing its 2026 average gold forecast by 14% to $4,360 an ounce, citing a more hawkish Fed.

Elsewhere, spot silver fell 0.5% to $57.98 per ounce, while platinum rose 1.1% to $1,595.51 and palladium gained 0.9% to $1,224.12.