Gold slides over 2% as wider market rout spills over

Spot gold was down 2.2 percent at $2,389.79 an ounce by 10:15 a.m. ET (1415 GMT). US gold futures lost 1.6 percent to $2,430. Reuters
Spot gold was down 2.2 percent at $2,389.79 an ounce by 10:15 a.m. ET (1415 GMT). US gold futures lost 1.6 percent to $2,430. Reuters
Short Url
Updated 05 August 2024

Gold slides over 2% as wider market rout spills over

Gold slides over 2% as wider market rout spills over

BENGALURU: Gold fell more than 2 percent on Monday, caught in the slipstream of a global, wider market selloff driven by mounting economic concerns, although analysts said this would be a temporary correction for the safe haven.

Spot gold was down 2.2 percent at $2,389.79 an ounce by 10:15 a.m. ET (1415 GMT). US gold futures lost 1.6 percent to $2,430.

Spot silver was down 5.1 percent at $27.08.

Wall Street tumbled, as fears of the US tipping into recession following weak economic data last week rippled through global markets.

“Investors are spooked and they’re selling what they can, and that includes gold and silver,” said Jim Wycoff, senior analyst at Kitco Metals.

The sell-off in autocatalysts platinum and palladium also reflected deepening concerns over industrial demand.

Platinum fell 4.3 percent to $917.10 and palladium lost 3.5 percent to $859 after hitting its lowest since August 2018. The two metals are used in engine exhausts to reduce emissions.

While gold is considered a safe refuge during such uncertainties, it was not immune to Monday’s sell-off as investors dumped assets across the board.

Treasury bonds, meanwhile, were in demand, with US 10-year yields touching the lowest since mid-2023 as fears of a recession worsened after a bleak July payrolls report.

However, analysts said gold, which has risen more than 16 percent thus far this year, could regain its footing looking ahead, given the persistent and political uncertainties and also on expectations of interest rate cuts from the Federal Reserve, which should bode well for the zero-yield bullion.

Markets were now expecting the central bank to cut by as much as 50 basis points in the September meeting.


’s King Salman Airport adopts biodiesel in construction to support net-zero goals

’s King Salman Airport adopts biodiesel in construction to support net-zero goals
Updated 17 sec ago

’s King Salman Airport adopts biodiesel in construction to support net-zero goals

’s King Salman Airport adopts biodiesel in construction to support net-zero goals
  • Biofuel Co. to supply B100 biodiesel as a direct alternative to fossil diesel
  • It will help reduce the project’s carbon footprint

’s King Salman Airport adopts biodiesel in construction to support net-zero goals
 
MOHAMMED AL-KINANI 

JEDDAH: ’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions. 

The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported. 

The agreement supports ’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects. 

In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase. 

“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said. 

Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030. 

Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals. 

Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.” 
 
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.” 

Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones. 

The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year. 

The project aligns with ’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century. 


UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai
Updated 22 min 5 sec ago

UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

JEDDAH: Trade and investment relations between the UAE and Cuba are expected to deepen following the inaugural session of the Joint Economic Committee, which convened in Dubai to boost cooperation across multiple sectors, including biotechnology, renewable energy, and tourism.

Organized under the framework of the trade, economic, and technical cooperation agreement signed earlier by both nations, the session marked a significant step forward in advancing bilateral economic engagement.

The committee meeting was co-chaired by Abdullah Ahmed Al-Saleh, undersecretary of the UAE Ministry of Economy, and Carlos Luis Jorge Mendez, Cuba’s first deputy minister of foreign trade and foreign investment. According to the UAE’s official news agency WAM, discussions centered on enhancing collaboration in agriculture, food security, infrastructure, transportation, logistics, cultural industries, healthcare, and pharmaceuticals.

Non-oil trade between the two countries has been steadily rising. It reached over $39.1 million in 2024—up more than 2 percent from the previous year and 46.4 percent compared to 2022, WAM reported. The agency added that trade during the first quarter of 2025 rose by 5.6 percent compared to the same period in 2024, and by over 25 percent from the fourth quarter of that year. More than 825 Cuban brands are currently operating in the UAE market.

According to WAM,  Al-Saleh said that bilateral ties continue to advance steadily, particularly in the economic and commercial spheres, adding: “This reflects the visionary leadership of both nations in fostering growth and prosperity and in serving their shared interests.”

He continued: “The first session of the Joint Economic Committee between the two countries marks a key milestone in enhancing economic and investment relations in the coming period. It expands areas of cooperation in priority sectors, strengthens engagement between the Emirati and Cuban business communities, and explores promising market opportunities — contributing to the national goals of the ‘We the UAE 2031’ vision.”

Attended by the ambassadors of both countries, the session concluded with an agreement to establish a joint framework that will oversee implementation of the committee’s outcomes, ensuring the continuity of economic cooperation and shared growth.

According to WAM, both sides also agreed to coordinate business forums and economic events, exchange trade delegations, and facilitate increased trade and investment flows between Emirati and Cuban companies. The agency added that the two parties proposed organizing joint meetings, seminars, and workshops involving investors, promotion agencies, and financial institutions to attract investment in high-priority sectors.

“They stressed the importance of advancing economic cooperation through new partnerships in entrepreneurship and the startup ecosystem, with the aim of accelerating SME (small and medium-sized enterprise) growth, expanding investments, supporting exports to international markets, and increasing their contribution to the national GDPs (gross domestic products) of both countries,” WAM added.

Food security and agriculture were also top priorities, with both sides expressing interest in boosting trade in food commodities and agricultural products. They also committed to working together on sustainable farming, food processing, and agricultural technology.

Tourism was highlighted as another strategic sector for collaboration. Both nations agreed to co-host exhibitions, events, and conferences to showcase their tourist and heritage destinations. They also discussed sharing expertise and data on tourism resources, statistics, and digital innovations.

The committee’s formation follows recent government restructuring in the UAE. Just over two weeks ago, Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, announced the creation of a Ministry of Foreign Trade, led by Thani Al-Zeyoudi. The Ministry of Economy was also renamed the Ministry of Economy and Tourism, now headed by Abdullah bin Touq Al-Marri.


GCC, Japan advance free trade talks as officials meet in Tokyo

GCC, Japan advance free trade talks as officials meet in Tokyo
Updated 32 min 35 sec ago

GCC, Japan advance free trade talks as officials meet in Tokyo

GCC, Japan advance free trade talks as officials meet in Tokyo

RIYADH: Negotiations over a free trade agreement between the Gulf Cooperation Council and Japan advanced further this week as officials from both sides convened in Tokyo to review progress and explore ways to accelerate discussions.   

The meeting, held between GCC Secretary-General Jasem Al-Budaiwi and Japan’s Vice Minister of Economy, Trade and Industry Kato Akiyoshi, focused on the strategic potential of the proposed accord and recent developments in the negotiation process, the Saudi Press Agency reported.  

The second round of negotiations for the agreement had concluded in Tokyo in early June, covering a wide range of issues including goods, technical barriers, terms of services, financial and telecommunications services, and intellectual property.   

A government delegation led by the General Authority for Foreign Trade took part in those discussions, reviewing proposals aimed at strengthening trade relations, identifying areas for cooperation, and fostering new partnerships.  

At this week’s meeting, both sides reiterated that a free trade agreement would represent a pivotal step toward expanding trade flows, enhancing economic links, and establishing a framework for long-term cooperation.  

“Al-Budaiwi reviewed a number of economic indicators and statistics for the GCC countries, noting that the GCC countries’ distinguished economic performance, and the sustainable growth and development they are witnessing in various sectors, have contributed to strengthening their position regionally and internationally,” SPA’s report stated.  

The officials stated that the accord could open broader avenues for exchange and contribute to a sustainable economic partnership serving shared interests. 


Al-Ahsa signs $400m in development deals to boost tourism, services 

Al-Ahsa signs $400m in development deals to boost tourism, services 
Updated 37 min 59 sec ago

Al-Ahsa signs $400m in development deals to boost tourism, services 

Al-Ahsa signs $400m in development deals to boost tourism, services 

RIYADH: Five investment contracts worth SR1.5 billion ($400 million) were signed by Al-Ahsa municipality to advance a series of development and service projects across the region.   

The agreements, concluded in the presence of Al-Ahsa Gov. Prince Saud bin Talal and Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail, are intended to enhance municipal services and improve quality of life for residents, the Saudi Press Agency reported.  

The deals cover the development of the Jabal Abu Hsais tourist resort, the construction of a vehicle appraisal center, and the establishment of a periodic vehicle inspection facility. They also include the redevelopment of the King Abdullah Cultural Center and the creation of a date processing factory in Al-Ahsa. 

These projects are part of broader efforts to diversify the local economy and attract investment into the governorate, highlighting the strategic importance of the Al-Ahsa region, which spans approximately 379,000 sq. km — about 20 percent of ’s total land area. 

Prince Saud stated that these projects represent a fundamental pillar in the region’s comprehensive development strategy, aligning with the leadership’s aspirations to strengthen sustainability in the implementation of strategic plans and to make optimal use of Al-Ahsa’s cultural and economic resources, according to the SPA report.   

In addition to the investment contracts, Al-Ahsa municipality signed three memoranda of understanding to implement 11 projects focused primarily on establishing parks and urban enhancements under the “Bahja” project and the Saudi Green Initiative.  

The National Housing Co. committed to building eight parks in various locations across Al-Ahsa.   

Retal Urban Development, represented by the chief operating officer Yousef Al-Hamoudi, agreed to develop two parks in Al-Badriya district of Hofuf, while Abdullah Al-Abdulqader, board member at Imam Abdulrahman Bin Faisal University, pledged to fund a 2,000-sq.-meter park in Al-Asima neighborhood.  

Al-Ahsa Mayor Essam Al-Mulla explained that the agreements form part of the municipality’s objectives to serve the community, deliver projects and initiatives that advance development, and establish integration between public and private sectors in pursuit of sustainable growth consistent with Saudi Vision 2030, according to the SPA report.   

During the signing ceremony, Prince Saud and the minister inaugurated the “Al-Ahsa: Future and Development” exhibition, which showcased municipal services, infrastructure projects, and quality of life initiatives.   

They also handed over residential units to beneficiaries of the developmental housing program in Al-Ahsa.  

Building on these initiatives, Al-Ahsa also witnessed a sharp rise in tourism in 2024, with visitor numbers increasing by 500 percent to reach 3.2 million. As a result, total tourist spending exceeded SR3.3 billion, marking a 400 percent increase compared to 2019. These figures highlight the region’s growing appeal and underscore the impact of continued investment in infrastructure and services. 


Strategic AI adoption, climate resilience to add $232bn to Middle East GDP: PwC 

Strategic AI adoption, climate resilience to add $232bn to Middle East GDP: PwC 
Updated 54 min 36 sec ago

Strategic AI adoption, climate resilience to add $232bn to Middle East GDP: PwC 

Strategic AI adoption, climate resilience to add $232bn to Middle East GDP: PwC 

RIYADH: The Middle East could add $232 billion to its gross domestic product by 2035 if governments and businesses harness artificial intelligence-driven productivity gains while managing the economic impacts of climate change.

In its latest report, professional services firm PwC stated that the region’s GDP is projected to reach $4.68 trillion by 2035, up from $3.57 trillion currently, in an optimal scenario driven by widespread adoption of AI and decisive environmental action.

Countries in the Middle East, including , are heavily concentrating on developing advanced technologies such as AI, as they seek to diversify their economies by reducing their dependence on oil revenues. 

According to the Global AI Competitiveness Index released in January, the Kingdom ranked 15th globally in research output in the sector, having produced 29,639 AI-related publications. This ranking places it among the top contributors to global research and highlights its emerging role as a regional technology leader.

Reflecting on his company’s latest report, Stephen Anderson, chief strategy and technology officer at PwC Middle East, said the upcoming decade will challenge the region’s “imagination and capabilities” like never before.

He added: “To stay ahead, businesses and governments must act with pace, purpose and partnership — reimagining traditional models to unlock the competitive advantage the region is uniquely positioned to deliver.” 

As part of its efforts to advance the growth of AI, ’s Public Investment Fund, in partnership with Google, launched Project Transcendence in 2024, a groundbreaking $100 billion undertaking. 

The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms, positioning the Kingdom at the forefront of regional innovation.

PwC’s modeling shows that under a business-as-usual scenario, regional real GDP could grow by 41.8 percent by 2035. However, when factoring in climate-related risks — such as heatwaves, water scarcity, and flooding — this growth drops by 13.9 percentage points to a net increase of 27.9 percent, placing GDP at $4.57 trillion.

“At stake is $232 billion — the gap between the region’s most optimistic and constrained economic futures. In the most optimistic scenario, widescale AI adoption could add 8.3 percent through productivity gains; this, combined with decisive climate action could lift GDP to $4.68 trillion by 2035,” said PwC. 

The professional services firm added that over the next decade industries will reconfigure to meet human needs in new ways, leading to the formation of new domains that cross traditional sector lines. 

These shifts will create opportunities for businesses and organizations to reinvent themselves and target new client bases, form cross-sector alliances, and innovate their service and operating models.

“With bold climate commitments, access to the world’s lowest-cost renewable energy and rapidly advancing AI capabilities and infrastructure, the Middle East holds a unique strategic advantage and is well-positioned to lead the next wave of sustainable, tech-enabled economic growth,” said PwC. 

Despite being an oil-rich nation, is spearheading climate efforts in the region. The Kingdom’s Saudi Green Initiative aims to plant 10 billion trees, rehabilitate 40 million hectares of degraded land, and reduce carbon emissions by more than 278 million tonnes per year.

The latest PwC report also highlighted the role of clean energy in powering AI and scaling innovation. 

“A critical factor will be how effectively the region balances the cost and scalability of AI with the availability and affordability of clean energy to power it — especially as AI adoption accelerates at an unprecedented pace. Striking this balance will be essential to unlocking the region’s full potential,” said Yahya Anouti, partner at Strategy& and PwC Middle East sustainability platform leader. 

PwC also called on governments, business leaders, and academia to take bold, coordinated action to shape the region’s future. 

According to the analysis, governments should redesign institutions to meet evolving human needs by establishing ministries focused on care or mobility and creating dedicated funds to accelerate AI adoption in public services. 

Business leaders are being called upon to reinvent their operating models for a more localized, digital, and low-carbon economy, while strengthening supply chain resilience and fostering cross-sector alliances. 

Additionally, academia should anchor national progress by developing future-fit talent, advancing applied research in strategic areas, and embedding entrepreneurship across the education system, PwC concluded.