RIYADH: The Royal Commission for AlUla is reshaping the city鈥檚 economy, with non-tourism sectors contributing around SR7 billion ($1.86 billion) to 黑料社区鈥檚 gross domestic product, a senior official said.
During a panel session at the Future Investment Initiative in Riyadh, Abeer Al-Akel, acting CEO of RCU, highlighted that this figure nearly matches AlUla鈥檚 tourism contribution to the Kingdom鈥檚 gross domestic product at around SR9.5 billion.
Al-Akel said that the commission is working to diversify the city鈥檚 economic foundation and provide the local community with inclusive growth opportunities.
She added: 鈥淧eople might not know that the contribution of non-tourism sectors in AlUla is basically around SR7 billion, which is a very close amount to the tourism, right?聽
鈥淲e are basically working with the local community in ensuring that we provide the local community with opportunities for them to participate in what we do in AlUla.鈥
As part of RCU鈥檚 diversification strategy, agriculture ranks as the second-largest sector in AlUla after tourism.
The commission has committed to improving farming practices and enhancing the entire agricultural value chain 鈥 from production and packaging to buyer connectivity.
鈥淲e鈥檙e aiming to empower our farming community and introduce local produce to a broader market,鈥 Al-Akel said, underscoring RCU鈥檚 goals of fortifying AlUla鈥檚 food ecosystem and increasing local producers鈥 market reach.
She continued: 鈥淲e鈥檙e really doing this for three main reasons. One is to ensure that we create and advance the food ecosystem in AlUla and expand it, but we鈥檙e also doing this to empower our farming community.
Al-Akel added: 鈥淔inally, is to mainly do that because of introducing local produce to a bigger networking market.鈥
Furthermore, RCU鈥檚 efforts to establish AlUla as a regional film hub are underway, with recent successes including the blockbuster movie Kandahar featuring Gerard Butler.
She explained that AlUla now boasts a world-class, 30,000 sq. meter production facility, positioning it as a major destination for international film production.
With 700 production days already recorded, the sector is set to contribute to the economy and foster local creative talent both in front of and behind the camera.
AlUla鈥檚 historic role as an ancient crossroad of civilizations is being revitalized through strategic international partnerships.
RCU collaborates with leading global organizations such as UNESCO and the World Bank, working toward shared goals of cultural conservation, environmental preservation, and sustainable economic growth.
AlUla鈥檚 comprehensive eco-friendly approach, guided by its 12-point Sustainability Charter, places environmental and cultural preservation at the forefront of all initiatives.
As Al-Akel emphasized, the RCU鈥檚 mandate is to 鈥渟trike a delicate balance between development and ecosystem progress,鈥 ensuring that AlUla鈥檚 unique natural and cultural landscape is protected while fostering economic growth.
鈥淲e are on the right track, and we have achieved a lot in the past years; we have basically introduced and released over 2,300 animals into the wild,鈥 Al-Akel said.
She continued to say that 50 percent of the lands are 鈥渂asically protected,鈥 adding: 鈥淲e have recruited more than 150 Rangers that are now patrolling and monitoring those reserves.鈥
Global Markets 鈥 stocks fall, gold gains after Trump sets tariff sights on Canada
Updated 11 July 2025
Reuters
SYDNEY/LONDON: Global stocks fell on Friday after US President Donald Trump ramped up his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens like gold, while bitcoin hit a new record high.
The Canadian dollar fell after Trump issued a letter late on Thursday that stated a 35 percent tariff rate on all imports from Canada would apply from August 1, adding the EU would receive a letter by Friday.
The US president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15 percent or 20 percent tariff rate on other countries, a step up from the current 10 percent baseline rate.
This week he surprised Brazil, which has a trade surplus with the US, with duties of 50 percent, and hit copper, pharmaceuticals and semiconductor chips.
Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February.
In Europe, the STOXX 600, which has risen 2.2 percent this week, fell 0.7 percent. Futures on the S&P 500 and the Nasdaq fell 0.6 percent, pointing to a retreat from this week鈥檚 record highs at the open later.
鈥淭he market is becoming a bit numb to these (tariff) announcements, and perhaps it鈥檚 not until we see hard data showing an impact that we (will) start to see the market reacting,鈥 City Index strategist Fiona Cincotta said.
鈥淥bviously, we鈥檙e getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels 鈥榝inal鈥 still,鈥 she said.
The dollar rose 0.3 percent against the Canadian dollar to $1.3695. The euro, which has lost nearly 1 percent in value since the start of July, was down 0.2 percent at $1.1683.
Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.
Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35 percent on Canada was not as bad as feared because most of the imports are still subject to exemptions under the US-Mexico-Canada Agreement.
鈥淣ow the tariff rate on imports from the EU ... That鈥檚 what we don鈥檛 know as yet,鈥 Capurso said. 鈥淚f you get something similar to (the US-China trade war in April), that鈥檚 going to be very destabilising.鈥
Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion.
Gold rose for a third day in a row, up 0.6 percent to $3,342 an ounce, bringing gains for July so far to 1.2 percent. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term US government finances prompted a selloff that pushed yields up.
Benchmark 10-year yields rose 3 basis points to 4.38 percent, adding to Thursday鈥檚 rise on the back of data that showed jobless claims unexpectedly fell last week.
The yen, which also typically behaves like a safe-haven, has been steadily weakening as the prospects dim for a US-Japan trade deal. The dollar was up 0.4 percent on Friday at 146.76 yen , set for a weekly gain of 1.6 percent, the biggest this year.
Bitcoin jumped 3.8 percent to $117,880, the highest on record.
Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump鈥檚 tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.
World oil market may be tighter than it looks, IEA says
Updated 11 July 2025
Reuters
VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.
The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.
Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect.
鈥淭he decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,鈥 the agency said in a monthly report.
鈥淧rice indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.鈥
Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil.
Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.
黑料社区鈥檚 road to 30% EVs by 2030 鈥 will Tesla be the game-changer?
Updated 11 July 2025
Miguel Hadchity
RIYADH: Tesla鈥檚 arrival in 黑料社区 signals a turning point in the Kingdom鈥檚 ambitious electric mobility strategy, with close to half of its citizens now open to purchasing an electric vehicle.
With a target of 30 percent EV adoption by 2030 under Vision 2030, 黑料社区 has gained a powerful ally in Tesla 鈥 one that could accelerate progress through competitive pricing, charging infrastructure investments, and potential local manufacturing deals.
This move not only brings one of the world鈥檚 most recognizable EV brands to Saudi consumers but also supports the nation鈥檚 broader push toward sustainable mobility.
This is also set to be boosted with the launch of the Kingdom鈥檚 first homegrown EV brand, Ceer, with production set to begin in 2026.
In an interview with Arab News, Alessandro Tricamo, partner at Oliver Wyman鈥檚 transportation and services practice, noted that while EVs currently make up just over 1 percent of vehicle sales, consumer interest is rising. 鈥淣early half of Saudi citizens say they are considering an EV purchase in the coming years,鈥 he said.
A win-win proposition
Tesla鈥檚 arrival comes at a critical time for the company and the Kingdom alike. The American automaker, facing increasing competition from Chinese rivals like BYD and declining sales in traditional markets, sees 黑料社区 as a promising new frontier.
Tricamo explained: 鈥淭esla鈥檚 entry into the Saudi market is potentially a significant win-win situation. With its leadership position increasingly challenged by BYD and other manufacturers 鈥 and with sales declining in the US and Europe 鈥 Tesla is looking to open up new markets.鈥
He added: 鈥満诹仙缜, while investing heavily in public transport and mass transit, remains a car-centric country where Tesla鈥檚 brand is resonant. This makes the Kingdom a promising growth opportunity for the OEM (Original Equipment Manufacturer).鈥
Tesla鈥檚 Riyadh showroom and service center, along with pop-up stores in Jeddah and Dammam, introduce Saudi drivers to the Model 3, Model Y, and Cybertruck 鈥 a clear signal of the company鈥檚 long-term commitment to the region.
Alessandro Tricamo, partner at Oliver Wyman鈥檚 transportation and services practice. Supplied
Fixing infrastructure gap
One of the biggest roadblocks to mass EV adoption is 黑料社区鈥檚 underdeveloped charging network. With just 101 public charging stations in 2024 鈥 behind the UAE鈥檚 261 鈥 range anxiety remains a major deterrent for potential buyers.
Oliver Wyman鈥檚 Tricamo underscored the urgency of infrastructure expansion, saying: 鈥淓xpanding the Kingdom鈥檚 charging infrastructure is arguably the single most critical factor in accelerating EV adoption. As of 2024, 黑料社区 has around 100 public charging stations, primarily concentrated in Riyadh.鈥
He added: 鈥淔or comparison, the UAE has nearly three times as many, despite having only a third of 黑料社区鈥檚 population.鈥
To address this, Saudi authorities are rolling out high-speed charging stations along key routes, including the 900 km Riyadh-Makkah corridor, which currently lacks any charging points. Tesla鈥檚 planned Supercharger network 鈥 open to other brands 鈥 could be a game changer if deployed swiftly.
However, rapid infrastructure expansion brings its own risks. Taline Vahanian, placement leader at Marsh UAE, an insurance broker and risk adviser, warned that high-speed charging stations, by their nature, handle significant electrical loads and integrate advanced digital control systems.
鈥淭his exposure brings a range of liability risks 鈥 from electrical malfunctions that might result in fires or physical injuries to property damage caused by system failures or cyberattacks,鈥 she told Arab News, adding: 鈥淎dditionally, integrating an array of new charging stations into an evolving power grid presents operational challenges such as voltage fluctuations, grid stability issues, and the necessity for specialized, regular maintenance.鈥
A new EV manufacturing hub?
Lucid is majority owned by the Public Investment Fund. Getty
While Tesla makes its retail debut, Lucid Motors 鈥 backed by 黑料社区鈥檚 Public Investment Fund 鈥 is already establishing local production, with a Jeddah factory set to manufacture thousands of EVs annually. This positions the Kingdom as a potential regional EV production hub, reducing reliance on imports.
Vahanian highlighted the challenges of local production, saying: 鈥淥n the supply chain front, vulnerabilities arise as the industry remains heavily dependent on imported components and critical raw materials. These dependencies are susceptible to international trade disruptions or logistical bottlenecks.鈥
She added: 鈥淗armonizing standards and streamlining certification processes on the regulatory front will be crucial; any delays or misalignments with international standards could disrupt production schedules and cause cascading delays.鈥
Can EVs survive Saudi summers?
Extreme temperatures pose another major challenge for EV adoption. Lithium-ion batteries degrade faster in heat, raising concerns about long-term durability.
Tesla and Lucid are countering this with advanced liquid cooling systems and heat-resistant materials, while Saudi researchers are exploring solid-state batteries for better performance.
Vahanian emphasized the risks, saying: 鈥淚n 黑料社区鈥檚 harsh desert climate, battery safety is a paramount concern. EV batteries rely on sophisticated thermal management systems, yet extreme ambient temperatures can accelerate degradation and 鈥 even in rare cases 鈥 trigger thermal runaway or fire incidents.鈥
She added that compounding this risk is the 鈥渘ascent state鈥 of the charging infrastructure, which must contend with sand, dust, and persistent heat stress 鈥 all of which elevates the possibility of technical failures and unexpected downtime.
Taline Vahanian, placement leader at Marsh UAE. Supplied
Tricamo offered a more optimistic view: 鈥淚 believe the impact of extreme heat on EV performance is often overstated. While high temperatures can pose challenges for batteries, such conditions are limited to certain periods, and battery technology is improving rapidly to support performance across a wide temperature range.鈥
He added: 鈥淓Vs have been operating in the region for several years with virtually no performance issues. A more relevant environmental concern may be sand and dust, which can affect charging stations and equipment. But even here, mitigation measures are relatively straightforward and already well understood.鈥
Insurance and cost
Another hurdle is the higher cost of insuring EVs compared to traditional vehicles.
Vahanian explained that unlike traditional cars powered by internal combustion engines, EVs rely on sophisticated battery systems, state-of-the-art electronics, and specialized components that require expert handling.
鈥淲hen collisions or mishaps occur, repairing these systems can be significantly pricier than conventional repairs. Limited availability of repair facilities and trained technicians 鈥 particularly in emerging markets like KSA 鈥 exacerbates these costs,鈥 she said.
The Marsh UAE official added that insurers are adapting but warns of potential premium hikes: 鈥淚nsurance companies, which traditionally set premiums based on anticipated claim payouts and repair costs, are therefore likely to face higher liabilities. In anticipation, we can expect a recalibration of premiums, reflecting a more accurate risk profile and the amplified repair costs associated with EVs.鈥
Vahanian went on to say: 鈥淗igher repair costs inevitably feed into the economics of risk assessment for insurers. As claims tend to rise with the complexity and expense of EV repairs, premium rates may correspondingly increase to maintain the insurers鈥 financial stability.鈥
She noted that higher EV insurance premiums could have a dual effect 鈥 while buyers are attracted by lower fuel costs and environmental benefits, steep insurance rates might weaken their appeal, particularly given the already high upfront costs.
The road to 2030
Despite these challenges, 黑料社区鈥檚 EV revolution is undeniably gaining momentum. Tricamo stressed that government intervention will be crucial. 鈥淭o accelerate the transition, targeted government intervention will be essential 鈥 both to level the playing field and to fast-track the decarbonization of mobility,鈥 he said.
Tricamo added that petrol vehicles remain significantly cheaper to operate in the region due to low fuel prices and a lack of EV incentives, while limited charging infrastructure further hinders widespread adoption.
Vahanian echoed this sentiment, calling for collaboration between policymakers and insurers, saying: 鈥淏y collaborating with insurance providers, policymakers can create schemes that provide favorable premium rates or bundled services, thereby alleviating consumer concerns and accelerating market penetration.鈥
Full speed ahead
With Tesla鈥檚 market entry, Lucid鈥檚 local production, and government-backed infrastructure investments, 黑料社区 is fast-tracking its EV transition. Yet hurdles like charging deserts, affordability, battery resilience, and insurance costs must be overcome to reach the 30 percent adoption goal.
Oil Updates 鈥 prices steady as investors weigh duller market outlook and tariffs鈥 impact
Updated 11 July 2025
Reuters
LONDON: Oil prices were stable on Friday, as investors weighed a weaker market outlook for this year by the International Energy Agency despite tightness in the prompt market, in addition to tariff concerns and possible further sanctions on Russia.
Brent crude futures were up 19 cents, or 0.28 percent, at $68.83 a barrel as of 11:07 a.m. Saudi time. US West Texas Intermediate crude ticked up 25 cents, or 0.38 percent, to $66.82 a barrel.
Both contracts were little changed on the week, with Brent headed for a 0.8 percent gain against last Friday鈥檚 close, and WTI for a 0.3 percent loss against last Thursday鈥檚 close as markets were closed on July 4.
The IEA on Friday boosted its forecast for supply growth this year, while also trimming its outlook for growth in demand.
That notwithstanding, the IEA said peak summer refinery runs to meet travel and power-generation demand were keeping the market tight for now.
Front-month September Brent contracts were trading at a $1.11 premium to October futures at 11:07 a.m. Saudi time.
鈥淒espite a market-wide expectation of an oil glut at the back end of this year, the current spate of drivers is lacking anything that might send prices back to the lows seen in April and May. Civilians, be they in the air on the road, are showing a healthy willingness to travel,鈥 PVM analyst John Evans said.
One other sign of robust prompt oil demand was the prospect of 黑料社区 shipping about 51 million barrels of crude oil in August to China, the biggest such shipment in over two years.
Longer term, however, rival forecasting agency OPEC cut its forecasts for global oil demand in 2026 to 2029 because of slowing Chinese demand, the group said in its 2025 World Oil Outlook published on Thursday.
Both benchmark futures contracts lost more than 2 percent on Thursday as investors worried about the impact of Trump鈥檚 evolving tariff policy on global economic growth and oil demand.
鈥淧rices have recouped some of this decline after President Trump said he plans to make a 鈥榤ajor鈥 statement on Russia on Monday. This could leave the market nervous over the potential for further sanctions on Russia,鈥 ING analysts wrote in a client note.
Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine and Russia鈥檚 intensifying bombardment of Ukrainian cities.
The European Commission is set to propose a floating Russian oil price cap this week as part of a new draft sanctions package.
Saudi non-oil trade surplus with GCC jumps over 200% in April
Updated 10 July 2025
MOHAMMED AL-KINANI
JEDDAH: 黑料社区鈥檚 non-oil trade surplus with fellow Gulf Cooperation Council countries jumped by more than 200 percent in April 2025, driven by a sharp rise in re-exports and strengthening regional economic ties.
According to the latest figures released by the General Authority for Statistics, the Kingdom posted a trade surplus of SR3.51 billion ($935 million) with GCC nations during the month, compared to just SR1.16 billion in April 2024 鈥 a year-on-year increase of 203.2 percent.
The total value of non-oil trade, which includes re-exports, between 黑料社区 and the GCC bloc reached SR18.03 billion in April, reflecting a robust 41.3 percent growth from SR12.76 billion in the same month last year.
This momentum is attributed to the accelerated pace of regional economic integration, supported by strategic initiatives such as 黑料社区鈥檚 Vision 2030 and similar diversification programs across the Gulf. These frameworks aim to reduce dependence on hydrocarbons by fostering growth in sectors like logistics, finance, tourism, and manufacturing.
Non-oil exports 鈥 encompassing both national products and re-exported goods 鈥 saw a notable rise of 55 percent year on year to SR10.77 billion. Within this category, re-exports surged by 81 percent to SR7.74 billion, highlighting 黑料社区鈥檚 growing role as a regional re-export hub. National-origin exports also rose by 13.3 percent, totaling SR3.03 billion.
Imports from GCC countries also registered an increase, climbing to SR7.26 billion in April 鈥 a 25.2 percent rise compared to SR5.80 billion in the previous year.
Among individual member states, the UAE continued to dominate 黑料社区鈥檚 regional trade portfolio, accounting for SR13.53 billion 鈥 or 75.1 percent 鈥 of the Kingdom鈥檚 total non-oil trade with the GCC. Bahrain followed with SR1.8 billion (10 percent), while Oman recorded SR1.45 billion (8.1 percent). Kuwait and Qatar contributed SR819.9 million (4.5 percent) and SR422.1 million (2.3 percent), respectively.
The data reflects not only 黑料社区鈥檚 growing non-oil export capacity but also a broader regional shift toward more diversified, interconnected Gulf economies.