SINGAPORE: Oil prices extended gains on Tuesday amid concerns over Russian and Iranian oil supply and sanctions threats, despite worries that escalating trade tariffs could dampen global economic growth.
Brent crude futures were up 55 cents, or 0.72 percent, at $76.42 a barrel by 10:17 a.m. Saudi time, while US West Texas Intermediate crude rose 50 cents or 0.69 percent to $72.82.
Both contracts posted gains of near 2 percent in the prior session after three weekly losses in a row.
“It’s more financially driven and price mean aversion rather than fundamental. Brent went from over $80 per barrel (in mid-January) to $74 (last week) so its time to take the position again,” LSEG analyst Anh Pham said.
The rebound came amid signs of tightening supplies, ANZ analysts said in a research note.
ANZ analysts noted Russian oil production fell short of its OPEC+ quota in January, easing concerns of an oversupply. Output fell to 8.96 million barrels per day and is 16,000 bpd below its approved levels under the production agreement.
Shipping of Russian oil to China and India, the world’s major crude oil importers, has been significantly disrupted by US sanctions last month targeting tankers, producers and insurers.
Adding to supply jitters are US sanctions on networks shipping Iranian oil to China after President Donald Trump restored his “maximum pressure” on Iranian oil exports last week.
But countering the price gains was the latest tariff by Trump which could dampen global growth and energy demand.
Trump on Monday substantially raised tariffs on steel and aluminum imports to the US to 25 percent “without exceptions or exemptions” to aid the struggling industries that could increase the risk of a multi-front trade war.
The tariff will hit millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries.
Trump last week introduced 10 percent additional tariffs on China, for which Beijing retaliated with its own levies on US imports, including a 10 percent duty on crude.
Also weighing on crude demand, the US Federal Reserve will wait until the next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.
The Fed faces the threat of rising inflation under Trump’s policies. Keeping rates at a higher level could limit economic growth, which would impact oil demand growth.
US crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Monday.
The poll was conducted ahead of weekly reports from industry group, the American Petroleum Institute, due at 12:30 a.m. Saudi time on Wednesday and an Energy Information Administration report due later that day.
IsDB drives development across over 2 percent of world’s countries
Jeddah-based organization founded in 1974 is recognized as a global leader in Islamic finance
Updated 11 sec ago
MOHAMMED AL-KINANI
JEDDAH: A year after marking its 50th anniversary, the Islamic Development Bank remains at the forefront of global development finance, recognized for its distinctive model that blends Shariah finance principles with strategic investments.
Established in August 1974 and commencing operations in October the following year in , the IsDB has grown into a distinctive institution within the global development landscape, championing ethics, equity, and solidarity among its 57 member countries and impacting one in five people worldwide.
The bank was founded through a visionary initiative led by Saudi King Faisal bin Abdulaziz and other Islamic leaders to foster development cooperation among member states of the Organization of Islamic Cooperation and enhance the wellbeing of Muslim communities.
Financial strength
The IsDB is recognized as one of the world’s most active multilateral development banks and a global leader in Islamic finance. It boasts prestigious AAA credit ratings by Moody’s, S&P, and Fitch — reflecting its strong financial stability and low risk.
With a subscribed capital of $76 billion, the bank is well-positioned to support large-scale development projects and foster economic growth across its member countries.
The Jeddah-based organization has evolved into a group of five institutions representing member states across four continents, with total approvals exceeding $182 billion for more than 12,000 development projects, as of April 2024.
Built on strong partnerships and trusted governance, the bank continues to promote sustainable socioeconomic development. ’s enduring support remains crucial as the IsDB charts its strategic future, committed to tackling today’s challenges and strengthening solidarity throughout the Muslim world.
Among its strongest partnerships is with Turkiye, a founding member that has received nearly $13 billion in IsDB approvals across 545 projects. In April 2024, both sides launched a new $6.3 billion framework to boost sustainability, productivity, Islamic finance, and digital transformation, reaffirming the bank’s long-term commitment to Turkiye’s development.
Speaking to Arab News, Abdulmohsen Al-Alshiekh, assistant professor and board member of the Saudi Economic Association, said over the past five decades, the IsDB has played a critical role as a development catalyst across the Islamic world.
He added that its effectiveness can be assessed on several fronts, including Infrastructure development, human capital investment, Shariah-compliant financing, crisis response, and South-South cooperation.
“IsDB has financed thousands of projects in transport, energy, water, and urban development, significantly improving connectivity and public services across its member countries,” Al-Alshiekh said.
He added that through scholarship programs, capacity-building initiatives, and education sector support, IsDB has contributed to advancing education, vocational training, and knowledge economies in low- and middle-income member states.
As for the bank’s Islamic law financing compliance, Al-Alshiekh said that one of IsDB’s unique strengths is its adherence to Islamic finance principles. “By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally,” he added.
Crisis response
Al-Alshiekh said the bank has shown agility in responding to global crises, including the COVID-19 pandemic, by mobilizing special funds, providing concessional financing, and supporting resilience and recovery efforts in vulnerable member countries.
He added that the bank continues to foster cooperation among member states through trade finance, investment insurance, and technology transfer initiatives, reinforcing its role as a key platform for intra-OIC economic collaboration.
Development reach
Al-Alshiekh noted that countries across sub-Saharan Africa, the MENA region, South Asia, and Southeast Asia have benefited from IsDB’s interventions, underscoring several priority sectors including infrastructure, education, health, agriculture, and trade.
“These investments have helped close infrastructure gaps and improve regional integration, especially in landlocked and low-income countries,” he added.
On education and health, the assistant professor said the IsDB has funded scholarships, technical training, hospitals, and pandemic response. It has also supported irrigation, rural development, and agribusiness in sub-Saharan Africa and South Asia to fight poverty and boost food security.
“Countries such as Senegal, Niger, Nigeria, and Sudan have received substantial support in infrastructure, agriculture, and education,” he said.
Countries recovering from conflict or facing economic challenges, such as Yemen, Egypt, Morocco, and Tunisia, have received significant assistance, while Bangladesh, Pakistan, Indonesia, and the Maldives have also benefited from a mix of infrastructure, health, and education investments, Al-Alshiekh added.
Unequal model
Unlike conventional multilateral development banks, all the bank’s financial transactions comply with Islamic principles.
“One of IsDB’s unique strengths is its adherence to Islamic finance principles,” Alalshiekh said “By promoting risk-sharing and asset-backed investments, it has provided an alternative to interest-based lending and contributed to the growth of the Islamic finance industry globally.”
Youssef Saidi, a research fellow at the Economic Research Forum, emphasized the importance of distinguishing the IsDB’s model from that of conventional multilateral development banks.
“To understand the unique contributions of the IsDB, it is essential to examine how its development model contrasts with those of the conventional multilateral development banks, which often focus on standardized approaches that may not fully address the unique needs of developing countries, potentially limiting their effectiveness in fostering sustainable growth,” Saidi told Arab News.
He added that the IsDB focuses on Islamic finance principles, socio-economic development, and innovative approaches to financing and project implementation.
“These characteristics emphasize the importance of adaptability and responsiveness to the specific needs of member countries, which is essential for effective development financing,” he said.
He noted that this adaptability allows the IsDB to forge partnerships that boost funding and enhance project delivery, similar to other multilateral development banks.
Future priorities
As the global development landscape becomes increasingly complex, both Saidi and Al-Alshiekh agree that the IsDB must recalibrate its strategic focus to address emerging challenges.
“The challenges facing the IsDB include addressing governance issues, ensuring effective resource allocation, and adapting to the evolving needs of its member countries to enhance development outcomes,” Saidi said.
To maintain its relevance, the IsDB must navigate challenges such as regional disparities in development, ensuring equitable resource allocation, and fostering innovation in Islamic finance practices, he also said.
Looking ahead, Al-Alshiekh said the IsDB is expected to broaden its role in key areas such as climate action through green sukuk, private sector partnerships focused on small and medium enterprises, fintech, digital infrastructure and e-governance, and support for fragile regions via stabilization funds and humanitarian-development-peace frameworks.
Enduring values
While the IsDB shares several features with conventional development banks, including alignment with the UN Sustainable Development Goals, it remains rooted in a distinct ethos.
“Unlike conventional MDBs, IsDB operates entirely on Islamic finance principles. This means it avoids interest-bearing loans and instead uses instruments like Murabaha, or cost-plus sale, ijara, or leasing, and istisna’a, or construction financing, as well as sukuk,” Al-Alshiekh explained.
He added that the IsDB’s approach is value-based, emphasizing ethical finance, social justice, and equitable growth that aligns with Islamic principles. “This contrasts with the often secular and market-oriented frameworks of conventional MDBs.”
Governance is another differentiator. “IsDB’s governance model is rooted in the OIC (Organisation of Islamic Cooperation), with its members being exclusively Islamic countries,” he said.
This allows for a greater cultural and strategic alignment among its stakeholders, while conventional MDBs tend to have a broader, more diverse global membership, he noted.
Al-Alshiekh also underlined the principle of solidarity that guides the bank’s resource allocation.
“The IsDB emphasizes ‘Islamic solidarity’, often prioritizing needs-based resource allocation and South-South cooperation, in contrast to performance-based lending criteria or conditionalities common in conventional MDBs,” he said.
Gold set for 3rd weekly loss amid stronger dollar, reduced Fed rate cut hopes
Updated 01 August 2025
Reuters
BENGALURU: Gold prices held steady on Friday, but were poised for a third consecutive weekly loss pressured by a stronger dollar and diminished expectations for US rate cuts, while uncertainty from US tariffs on trading partners offered support.
Spot gold was steady at $3,293.56 per ounce, as of 12:34 p.m. Saudi time. Bullion is down 1.4 percent so far this week.
US gold futures edged down 0.1 percent to $3,344.60.
The dollar index hit its highest level since May 29, making gold more expensive for other currency holders.
“Gold remains weighed by reduced bets for Fed rate cuts for the rest of 2025. This week’s US GDP, weekly jobless claims, and PCE figures also shored up the Fed’s reluctance to commit to a rate cut,” said Han Tan, chief market analyst at Nemo.Money.
Fed held rates steady in the 4.25 percent to 4.5 percent range on Wednesday and dampened expectations for a September rate cut.
US President Donald Trump slapped steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline.
“The precious metal should, however, remain supported amid the still-uncertain impact from US tariffs on global economic growth,” Tan said.
US inflation increased in June as tariffs on imports started raising the cost of some goods.
Focus now shifts to US jobs data, due later on Friday, as investors assess the Federal Reserve’s policy trajectory, with July job growth expected to have slowed and the unemployment rate projected to rise to 4.2 percent.
Gold, often considered a safe-haven asset during economic uncertainties, tends to perform well in a low-interest-rate environment.
Physical gold demand in key Asian markets improved slightly this week as a pullback in prices sparked buying interest, though volatility kept some buyers cautious.
Spot silver fell 0.8 percent to $36.46 per ounce, platinum lost 1.7 percent at $1,268.45 and palladium was down 0.5 percent to $1,185.19. All three metals were headed for weekly losses.
Startup Wrap: Saudi firms surge as AI, food tech deals highlight ecosystem’s rapid ascent
Updated 01 August 2025
Nour El-Shaeri
RIYADH: ’s startup ecosystem continues to gain momentum, with a surge of early- and growth-stage investments across technology-driven sectors including AI, food tech, logistics, and sports.
Kamco Invest has announced it acquired a stake in Foodics, a fast-growing restaurant technology and payments platform based in .
The transaction, completed in the fourth quarter of 2024 but only now made public, aligns with Kamco Invest’s strategy to back high-growth, tech-enabled businesses in the Middle East and North Africa, particularly those with initial public offering potential.
Founded in 2014, Foodics serves over 33,000 restaurants with an annual gross merchandise value of over $10 billion in 2024.
The cloud-based platform offers an integrated solution for restaurant operators to manage orders, operations, finances, and access to capital through a single interface.
Kamco Invest Director of Private Equity Dalal Al-Shaya said: “We are proud to back a regional tech champion like Foodics. Its scale, innovation, and strong investor base signal an exciting growth trajectory.”
The company is targeting a public listing on Tadawul within the next two to three years.
Foodics’ most recent $170 million funding round was led by Prosus and Sanabil Investments, a fund owned by the Public Investment Fund, with participation from Sequoia Capital India, STV, Raed Ventures, and Endeavor Catalyst.
Calo raises $39m in series B extension to fuel global growth
The Calo team. Supplied
Saudi food tech startup Calo has secured a $39 million series B extension led by AlJazira Capital, bringing its total series B funding to $64 million.
The latest round follows a $25 million tranche closed in December 2024 and was oversubscribed beyond the originally targeted $50 million due to strong investor interest.
Proceeds from the round will support Calo’s international expansion, continued product development, and integration of recently acquired UK-based meal subscription companies.
Calo, which delivered more than 10 million meals in 2024, reports high-growth, nine-figure annualized revenue and claims to be the world’s fastest-growing meal subscription service.
CEO Ahmed Al-Rawi said: “We’re living in an interesting time where AI is transforming our lives, and we’re excited to be investing in cutting-edge innovation to explore how Calo can use AI to influence the future of how we discover and eat healthy food.”
The company acquired Fresh Fitness Food and Detox Kitchen to enter the European market and has since integrated both into its operations and technology stack.
Calo says it operates more than 10 physical locations across the GCC, including hospital-based outlets, and has launched operations in the UK and Oman.
Its customer base spans , the UAE, and Bahrain, as well as Qatar, and Kuwait, with over 5,000 customers already on the waiting list in Oman, the company claimed.
In the first half of 2025, Calo said it achieved over 50 percent year-on-year growth, bolstered by a localization strategy that included the appointment of General Managers in each regional market.
Calo recently partnered with Armah Sports Co. to explore co-located retail outlets and wellness collaborations.
Armah’s founder, Fahad Al-Hagbani, has joined Calo’s board as an independent member. Calo remains headquartered in Riyadh and is planning for an IPO in .
Flex League closes seed round to build unified racquet sports platform
Flex League currently serves nearly 10,000 players. flexibleleague.com
Flex League, a Saudi sports-tech company focused on padel and tennis, has raised a six-digit dollar seed round led by the Professional Tennis Academy and PAD-L Group.
The new capital will be used to develop a court booking system, support expansion into new Saudi cities and across the MENA region, and grow its team across engineering, product, and operations.
The platform currently serves nearly 10,000 players and allows users to join competitive leagues, book courts, and track match results.
It also offers court operators tools to manage tournaments and engage local sports communities.
CEO Ibrahim Akeel said: “With this investment, we’re creating a unified platform where players can compete, connect, and now book courts – all in one app.”
The company aims to drive deeper engagement in the region’s growing racquet sports ecosystem by blending digital matchmaking with physical play.
Sawt secures $1m to advance Arabic voice AI customer support
Sawt, a Saudi startup focused on Arabic-native voice AI systems, has closed a $1 million pre-seed round led by T2 and STV.
The funding will be used to enhance its proprietary models, scale its technical infrastructure, and grow its team as it prepares to serve millions of voice interactions.
The platform enables businesses to conduct customer support, bookings, and sales through AI voice agents that operate 24/7 with natural and intelligent responses.
In just two months since its launch, Sawt claims it served dozens of businesses and processed hundreds of thousands of calls.
Co-founder and CEO Abdulmalik Al-Saeed said: “We’re proud to contribute to this movement by building Arabic voice technology from the ground up, right here in the Kingdom.”
STV General Partner Ahmad Al-Naimi added: “Sawt exemplifies a new wave of Saudi AI-native ventures. With a strong tech edge and commercial momentum, they’re poised to lead the $800 million to $1.2 billion GCC AI call center automation market.”
Abdulkarim Al-Jarba, CEO of T2, noted that the investment supports T2’s strategy to deliver advanced technology solutions across its network.
OmniOps unveils platform to deliver sovereign AI inference services
Supplied
OmniOps has launched Bunyan, the Kingdom’s first sovereign Inference-as-a-Service platform.
The announcement follows a strategic meeting with the Minister of Communications and Information Technology, Abdullah Al-Swaha.
The platform supports AI applications in text, vision, and speech, with a focus on data sovereignty and enterprise-grade compliance.
CEO Mohammed Al-Tassan said: “Bunyan delivers unprecedented performance improvements that revolutionize how organizations deploy and scale AI applications.”
He added that the platform has demonstrated efficiency gains, including a doubling of inference speed, over 50 percent reduction in energy use, and at least 40 percent lower latency.
Bunyan provides an end-to-end infrastructure stack with model deployment tools, support for NVIDIA and Groq hardware, and access to both public and private models.
It enables organizations to build AI-driven applications such as natural language chatbots, document summarization tools, and systems for rapid insight extraction from unstructured data.
Olivery secures seed funding from Ibtikar Fund and Flat6Labs Mashreq
Olivery, a B2B Software-as-a-Service company focused on digitising logistics operations, has raised seed funding from Ibtikar Fund and Flat6Labs Mashreq Seed Fund.
The platform allows logistics providers and merchants to manage order creation, routing, delivery, and customer engagement through a no-code/low-code interface.
Since its founding in 2020, Olivery has scaled to serve over 200 active clients across nine countries.
The company plans to use the new funding to expand regionally and roll out AI-driven features including predictive routing, automated data entry, and proactive customer support.
CEO Ram Merei said: “Together with Ibtikar and Flat6Labs, we’re delivering technology that allows national couriers and independent merchants alike to operate with the speed, transparency, and reliability that modern commerce demands.”
Ibtikar’s Managing Partner Habib Hazzan stated: “Their platform is not only scalable and robust — it’s thoughtfully designed for the realities of local markets.”
Rasha Manna, general manager of Flat6Labs Mashreq Seed Fund, noted that the firm has backed Olivery from its earliest stages and remains committed to supporting its expansion.
Mataa closes seed round to expand Libya’s e-commerce infrastructure
Mataa, a Libya-based e-commerce platform, has completed its first seed investment round with backing from Libyan business angels.
The funding will be used to strengthen Mataa’s logistics network, expand its warehouse capacity, and onboard new suppliers and product categories.
Founder and CEO Ibrahim Shuwehdi stated that the round reflects growing investor confidence in Libya’s entrepreneurial potential and geographic advantage.
The company supports merchants in reaching over 6 million internet users and offers Facebook integration for easier product listing and reduced advertising costs.
“This round is not just a financial boost but a signal to the wider ecosystem to encourage more venture investment in Libyan startups and SMEs,” Shuwehdi said.
Mataa is also looking to recruit experienced regional talent to support its long-term strategy.
Oil Updates — crude steadies as investors mull US tariff impacts
Updated 01 August 2025
Reuters
LONDON: Oil prices were little changed on Friday and heading for a weekly gain, as investors weighed the impact of further tariffs and sanctions by US President Donald Trump.
Brent crude futures were up 19 cents, or 0.26 percent, to $71.89 a barrel at 11:23 a.m. Saudi time. US West Texas Intermediate crude was up 20 cents, or 0.29 percent, to $69.46 a barrel.
Prices stabilized on Friday after losing more than 1 percent in the previous session. However, for the week Brent was on course for a 5 percent gain, and WTI around 6.6 percent.
Investors have focused on the potential impact of US tariffs on oil prices this week, as tariff rates on US trading partners are set to go into effect from August 1.
Trump signed an executive order on Thursday imposing tariffs ranging from 10 percent to 41 percent on US imports from dozens of countries and foreign territories including Canada, India and Taiwan that failed to reach trade deals by his August 1 deadline.
Partners that managed to secure trade deals include the European Union, South Korea, Japan and Britain.
“We think the resolution of trade deals to the satisfaction of the market – more or less, barring a few exceptions – has been the key driver for oil price bullishness in recent days, and further progress on trade talks with China in future could be a further confidence booster for the oil market,” said Suvro Sarkar, energy sector team lead at DBS bank.
Prices were also supported this week after Trump threatened to impose 100 percent secondary tariffs on Russian crude buyers in a bid to pressure Russia into halting its war against Ukraine, stoking concerns of potential disruption to oil trade flows and the removal of some oil from the market.
JP Morgan analysts said in a note on Thursday that Trump’s warnings to China and India of penalties on their ongoing purchases of Russian oil potentially put 2.75 million barrels per day of Russian seaborne oil exports at risk. The two countries are the world’s second- and third-largest crude consumers, respectively.
However, some analysts remain concerned that US levies will limit economic growth by raising prices, which could weigh on oil demand.
On Thursday, there were signs that existing tariffs are already pushing prices higher in the US, the world’s biggest economy and oil consumer, inflation data for June showed.
Saudis to get more leadership roles as PepsiCo expands, says regional CEO
Updated 01 August 2025
Hind Al-Khunaizi
DHAHRAN: Food manufacturer PepsiCo will offer more leadership roles to Saudis, its regional CEO pledged at the inauguration of the SR300 million ($79.97 million) expansion of its Dammam facility.
Speaking to Arab News, Ahmed El-Sheikh explained how the company supports the Kingdom’s Vision 2030 economic diversification plan through three main areas — using local resources, Saudization, and increasing exports.
The announcement came during a visit to the site by Minister of Industry and Mineral Resources Bandar Alkhorayef, who praised the facility’s contribution to job creation, export growth, and the overall development of the food manufacturing sector in .
The site serves as a key hub in the region, which supplies local markets and exports products to 20 countries across the Middle East.
The PepsiCo MENAP CEO said: “We’re proud to say that 85 percent of our workforce at the Dammam plant are Saudi nationals, one of the highest rates across any of our facilities in the region. With 280 employees currently, this is just the beginning. We plan to grow even further.”
He added: "As we move toward greater digitization and automation, we’re also opening up more opportunities for Saudis to step into technical and leadership roles.”
Recent regulatory changes, which have been made possible through collaboration with the Kingdom’s Ministry of Environment and Agriculture, now permit PepsiCo to utilize locally grown potatoes for export.
This development has been described by Alkhorayef as a “significant milestone” for both local farming and policy reform.
“It demonstrates how we’ve been able to work with PepsiCo over the last few years to ensure the entire supply chain, from farming to production and export, is well managed,” the minister told Arab News.
“As a result of our success working as a team, we were able to amend the policy so that PepsiCo can now use Saudi grown potatoes for export,” he added.
Bandar Alkhorayef cutting the ribbon on the Dammam facility. Supplied
Sustainability and resource efficiency were focal points during the visit, and Alkhorayef noted that the Kingdom now holds “a record in terms of water efficiency in potato cultivation,” a development he called inspiring, not only locally, but globally.
The Dammam plant sources 100 percent of its potatoes from Saudi farms, and uses local materials for secondary packaging, with 70 percent of primary packaging now locally sourced, a percentage PepsiCo aims to push to full localization.
PepsiCo operates in the Kingdom across 86 locations and employs nearly 9,000 people through direct and partner operations.
The company has opened a new regional headquarters in Riyadh’s King Abdullah Financial District, which will oversee operations across the Middle East, North Africa, and Pakistan, aligning with ’s Regional Headquarters Program.
Further investment is also planned, and El-Sheikh said: “In addition to the SR300 million we’ve just invested in the Dammam plant, we’re preparing to open a state-of-the-art R&D facility in Riyadh in just two months’ time.”
The center will cost SR30 million and serve as a hub for product and packaging innovations in the Gulf Cooperation Council region, according to a statement from PepsiCo released in April.
When it comes to employment, Alkhorayef stressed that Saudization is driven by data and standards.
“This plant is a great example. It has around 85 percent Saudization, and female participation is about 22–23 percent, with more than 25 percent women in the plant workforce itself. That’s a significant achievement.”
He added that the government takes a comprehensive approach to measuring local content, and went on to say: “But measurement is not the goal, it’s a baseline. The real goal is to use it as a foundation to increase both local sourcing and hiring.”
The Dammam plant is one of PepsiCo’s most advanced in the region, and features energy efficient heating, ventilation, and air conditioning systems, solar panels generating 510 megawatt-hour yearly, and uses recycled water in its processing systems.
These investments align with the sustainability goals in the Kingdom’s National Industrial Strategy.
