Future Investment Initiative: From ‘Davos in the Desert’ to a Platform for Untangling Global Crises

A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
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Future Investment Initiative: From ‘Davos in the Desert’ to a Platform for Untangling Global Crises

A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 
A view of the audience during one of the sessions at the eighth edition of the Future Investment Initiative conference (Asharq Al-Awsat). 

The annual Future Investment Initiative (FII) is evolving from an investment forum into a powerful geoeconomic and diplomatic platform. In the midst of unprecedented geopolitical and economic transformations, Riyadh is consolidating its status as an indispensable global hub, a place where future-shaping decisions are made and urgent diplomatic solutions take form.

As the Saudi capital hosts the ninth edition of the FII - bringing together some of the world’s most influential figures in finance and technology to chart a roadmap for sustainable growth and artificial intelligence - it is simultaneously witnessing an intense wave of diplomatic activity, including high-level coordination meetings on the two-state solution.

Riyadh is positioning itself as a bridge between global capital, development imperatives, and the requirements of regional stability and peace.

The ninth edition of the forum opened with closed sessions on Monday, with the official launch scheduled for Tuesday under the theme “The New Compass: Unlocking New Frontiers for Growth.” More than 8,000 participants and 650 prominent speakers are taking part in 250 discussions.

What began years ago as an investment gathering with a local lens - dubbed “Davos in the Desert” - has now matured into a global geoeconomic platform designed to navigate and address complex crises.

This transformation comes at a critical time for the world economy. Trade tensions, including US tariffs, and geopolitical instability in Europe and the Middle East have created high levels of uncertainty. Global growth faces mounting risks.

By contrast, Saudi Arabia has charted a different course, demonstrating strong resilience against external shocks and an ability to adapt quickly to changing conditions. This strength is supported by the steady expansion of its non-oil sectors, a cornerstone of its economic diversification strategy, making the Kingdom a reliable anchor for global capital in an increasingly fragmented world.

The initiative also functions as a bridge for global capital and a key platform for investors interested in the Middle East. Globally, discussions on artificial intelligence, sustainable energy, and innovation are already shaping capital flows and influencing the valuations of major companies.

For Saudi Exchange (Tadawul), the event acts as a significant catalyst. Direct engagement between the Public Investment Fund (PIF) and global investment banks enhances awareness of the Saudi market’s depth and liquidity, aligning with the Kingdom’s goal of increasing its weight in global indices and paving the way for large upcoming IPOs.

This year, the forum carries unprecedented geopolitical weight. It takes place at a moment when regional focus is shifting from conflict to reconstruction and development. High-level diplomatic attendance, coordination meetings on the two-state solution, and discussions addressing global conflicts all underscore Riyadh’s emerging role as a mediator capable of linking political stability with economic investment.

One of the forum’s headline sessions explores three key themes: progress, innovation, and fragmentation. It addresses questions of market efficiency, the environmental cost of economic expansion, the responsible use of AI, technological entrepreneurship, climate resilience, and how to secure global supply chains in a world defined by economic competition and digital transformation.

Yasir Al-Rumayyan, Governor of the PIF and Chairman of the Future Investment Initiative Institute, will officially open the forum, presenting the fourth edition of the “Priority Compass.” This extensive survey draws on the views of tens of thousands of participants from 32 countries, representing 66 percent of the world’s population. Its aim is to guide decision-makers toward citizen-centered solutions.

The final day of the event, known as Investment Day, will be devoted to signing deals, presenting high-growth projects and emerging technologies, and fostering connections between founders and global investors. Asset managers overseeing more than $100 trillion in assets are expected to participate.

Among the prominent speakers are Laurence D. Fink of BlackRock, Jamie Dimon of JPMorgan Chase, David Solomon of Goldman Sachs, Bruce Flatt of Brookfield Asset Management, Bill Winters of Standard Chartered, Jane Fraser of Citigroup, Jenny Johnson of Franklin Templeton Investments, Ray Dalio of Bridgewater Associates, Stephen A. Schwarzman of Blackstone, Cathie Wood of ARK Invest, and Alex Clavel of SoftBank Vision Fund. Also attending are CEOs from Barclays, Nasdaq, Temasek Holdings, and China Investment Corporation.

Behind closed doors, Monday’s sessions delved into cutting-edge technological and economic shifts, from quantum computing breakthroughs to digital currencies and carbon accounting. One session, “Can We Win the Quantum Computing Race and Turn It into Profit?”, examined rapid developments in quantum hardware and software and noted that governments worldwide have committed more than $40 billion to research and development in this field.

Another session, supported by Saudi Aramco, reviewed new methods to measure product-level carbon emissions, aiming to bring greater transparency to corporate climate performance. A third session explored how digital currency infrastructure could redefine global finance, with discussions on stablecoins, central bank digital currencies, and the role of major institutions such as Bank of America, PayPal, and Stripe in driving cross-border payment solutions.

 

 

 

 



Saudi Arabia's Inflation Edges Up to 1.8% in May

People shopping in a market in Saudi Arabia (SPA)
People shopping in a market in Saudi Arabia (SPA)
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Saudi Arabia's Inflation Edges Up to 1.8% in May

People shopping in a market in Saudi Arabia (SPA)
People shopping in a market in Saudi Arabia (SPA)

Saudi Arabia’s consumer price index (CPI) rose 1.8% year-on-year in May 2026, compared with the same month a year earlier, according to official data released on Sunday.

The General Authority for Statistics said the annual increase was driven mainly by a 3.7% rise in housing, water, electricity, gas and other fuels costs, supported by a 4.7% increase in actual housing rents.

Higher prices in several other categories also contributed to the increase. Restaurant and hotel prices rose 1.7%, while transport costs increased 1.5%.

Prices in the personal care and miscellaneous goods and services category climbed 5.6%, largely due to a 20.0% jump in jewelry and watches prices.

The overall rise in inflation was partly offset by a 0.5% annual decline in furniture and household equipment prices, the statistics authority said.

Slight Monthly Price Changes

On a monthly basis, Saudi Arabia’s consumer price index edged up 0.2% in May from April. The increase was driven primarily by a 0.6% rise in transport prices, largely due to a 1.9% increase in passenger transport services.

Food and beverage prices rose 0.1% month-on-month, while housing and water costs increased 0.2%.

Meanwhile, prices in the personal care and miscellaneous goods and services category fell 0.2%, as did furniture and household equipment prices. Clothing and footwear prices also declined 0.1% from the previous month.

Housing and Transport Lead Inflation Drivers

The housing, water, electricity, gas and other fuels remained the largest contributor to annual inflation in May, accounting for 0.7 percentage points.

The personal care and miscellaneous goods and services category was the second-largest contributor, adding 0.3 percentage points to the annual inflation rate.

Transport and food and beverages each contributed 0.2 percentage points, while the remaining 0.3 percentage points came from other components of the consumer basket, according to the authority.


Kingdom Holding-PIF Partnership Soars to $6.83 Billion on SpaceX Stake

SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
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Kingdom Holding-PIF Partnership Soars to $6.83 Billion on SpaceX Stake

SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)
SpaceX employees celebrate the close of the company’s initial public offering on the Nasdaq Stock Market in New York City. (Getty Images/AFP)

Saudi Arabia’s Kingdom Holding Company said the fair value of its stake in SpaceX has reached $6.83 billion, marking what the company described as a major milestone for its long-term investment strategy and its partnership with the Saudi Public Investment Fund (PIF), which owns a 16.87 percent stake in Kingdom Holding.

The valuation reflects an increase of more than $2.3 billion from the previous carrying value of $4.47 billion, said Kingdom Holding. The announcement immediately boosted investor sentiment on the Saudi stock market, sending the company’s shares up nearly 4 percent.

Kingdom Holding said it owns more than 42.4 million Class A shares in SpaceX. Based on the share price cited in the company’s disclosure, the value of that holding rose to approximately SAR 25.6 billion ($6.83 billion).

Long-term investment strategy

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that Kingdom Holding’s decision to retain its investments in X and convert its shares, alongside developments related to SpaceX, demonstrates a more mature investment philosophy.

The strategy reflects a focus on long-term ownership of “transformational assets” capable of generating substantial future value rather than pursuing short-term gains, he added.

Such an approach, he explained, aligns closely with the objectives of Saudi Vision 2030, which seeks to strengthen the Kingdom’s presence in advanced technology sectors worldwide.

Financial and economic adviser Dr. Hussein Al-Attas echoed that view, arguing that the figures disclosed by Kingdom Holding illustrate how Saudi capital has evolved from a passive source of funding into an active strategic partner in emerging industries, including space-related technologies.

Al-Attas told Asharq Al-Awsat that PIF’s position as a major shareholder has given Kingdom Holding greater financial flexibility and the ability to withstand volatility in the technology sector, enabling it to pursue a more institutional and long-term investment model.

Balancing growth and stability

Al-Farraj noted that Kingdom Holding’s portfolio combines traditional assets, such as hotels and real estate, with high-growth technology investments.

In an environment of elevated global interest rates, the steady cash flow generated by traditional assets provides an important cushion against risk, he remarked.

Large-scale technology projects often require years of heavy capital spending before realizing their full economic potential, he noted. Stable, income-generating assets therefore help preserve liquidity while allowing investors to maintain exposure to higher-risk, higher-growth opportunities.

Al-Attas stressed that this balanced approach mirrors the strategies employed by many leading global investment firms, reducing dependence on any single sector while preserving long-term growth potential.

Gulf capital gains strategic influence

Al-Farraj said Gulf sovereign wealth funds have become particularly attractive partners for major technology companies because they offer three advantages: substantial liquidity, long investment horizons, and a willingness to tolerate cyclical volatility.

Beyond financing, Gulf investors provide access to rapidly expanding markets and opportunities in telecommunications, artificial intelligence, digital infrastructure, and energy, he stated. As a result, they increasingly serve as strategic partners rather than simply providers of capital.

Both experts stressed that lofty valuations for companies, such as SpaceX, reflect a combination of operational achievements and strong expectations for future growth.

While the potential rewards remain significant, they cautioned that such investments also carry considerable financial and execution risks if anticipated growth fails to materialize.


Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
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Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)

Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.5% to $4,322.87 per ounce by 0312 GMT, hitting its highest level since June 9 and extending gains for a third straight session. US gold futures ‌for August delivery ‌rose 2.5% to $4,344.80.

US and Iranian officials said on ‌Sunday ⁠they had agreed ⁠on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"Lower ⁠oil prices and a softer dollar, stemming from ‌reduced geopolitical risk and the anticipated reopening ‌of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, ‌chief market analyst at KCM Trade.

"This combination is providing the ‌precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold prices have fallen about 20% since the start of the US-Israeli war against Iran in late February. The ‌effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking ⁠inflation concerns ⁠and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding asset.

Markets have scaled back expectations for a US rate hike in December to 48% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.6% to $70.39 per ounce, platinum gained 3.3% to $1,773.70 and palladium climbed 3.3% to $1,324.75.