Gold edges down on stronger dollar, Powell’s remarks in focus
Gold edges down on stronger dollar, Powell’s remarks in focus/node/2612654/business-economy
Gold edges down on stronger dollar, Powell’s remarks in focus
Spot gold fell 0.3 percent to $3,329.19 per ounce by 9:07 a.m. Saudi time. Getty
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Updated 14 sec ago
Reuters
Gold edges down on stronger dollar, Powell’s remarks in focus
Updated 14 sec ago
Reuters
BENGALURU: Gold prices edged lower on Friday on a stronger dollar while investors awaited US Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole symposium that could offer fresh clues on the monetary policy path.
Spot gold fell 0.3 percent to $3,329.19 per ounce by 9:07 a.m. Saudi time. US gold futures for December delivery lost 0.3 percent to $3,372.10.
The US dollar index hovered near a two-week high, making gold less attractive to overseas buyers.
Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month as investors geared up for Powell’s speech, due at 5:00 p.m. Saudi time on Friday.
“With a Russia-Ukraine peace deal still a possibility, and the USD attracting some buyers, gold is facing headwinds,” KCM Trade chief market analyst Tim Waterer said.
“But if Powell’s message is interpreted as being a dovish shift, the USD could be undone, and gold may be on the move higher again.”
Futures markets indicate a 75 percent chance of a quarter-point rate reduction next month, according to CME’s FedWatch tool.
Recent labor data showed US jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high.
The challenge for Fed policymakers is that even though there are signs of labor market weakening, inflation remains above the central bank’s 2 percent target and could go higher due to the Trump administration’s aggressive tariff hikes.
Russian President Vladimir Putin is demanding that Ukraine give up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, three sources familiar with top-level Kremlin thinking told Reuters.
Elsewhere, spot silver was down 0.4 percent to $38.01 per ounce, platinum fell 0.6 percent to $1,345.06, and palladium rose 0.2 percent to $1,113.19.
Saudi Fund for Development continues lending helping hand to emerging economies
Updated 22 August 2025
Nirmal Narayanan
RIYADH: At a time when the world is getting fragmented due to geopolitical tensions and ongoing wars, ’s development fund is becoming a beacon of hope, as it continues to provide soft loans and grants for emerging economies.
Established in 1974 and commenced operations in 1975, the Saudi Fund for Development has financed more than 800 development projects in over 100 countries, with a cumulative value exceeding $21 billion.
SFD’s financing spans across multiple sectors, including health, education, and transport, as well as water and energy, with the aim of improving living conditions, enhancing capacity building, and creating job opportunities for millions of people in emerging nations.
As the fund now celebrates its 50th year of operations, SFD’s offerings for developing nations show no signs of slowing down.
Here are the highlights of its activities so far this year:
Water security project in Somalia
The signing of the MoU between SFD and Somalia. SFD
In January, Sultan Abdulrahman Al-Marshad, CEO of SFD, signed a memorandum of understanding with Bihi Egeh, Somalia’s minister of finance, to provide a $2 million grant from the Kingdom through the fund.
The grant was part of the fifth phase of the Saudi Well Drilling and Rural Development Program in Africa.
The deal aims to enhance access to clean water in Somalia’s rural areas by drilling wells and establishing solar-powered water supply networks.
“This initiative seeks to enhance water and food security, provide safe drinking water, combat water scarcity, and reduce reliance on contaminated water sources in Somalia,” said SFD in a statement at the time.
The program, valued at $330 million, has provided clean drinking water to over 5 million people since its initiation.
Launched in 1982, the Saudi Well Drilling and Rural Development Program has addressed the needs of African nations by funding the construction of more than 10,000 potable water facilities in 20 countries across the continent.
Power expansion project in Suriname
SFD CEO Sultan Abdulrahman Al-Marshad signed an agreement with Kermechend Raghoebarsing, minister of finance and planning of Suriname. SFD
In February, SFD signed an agreement to provide its first concessional development loan, worth $20 million, to Suriname to expand the country’s power generation, transmission, and distribution systems.
SFD said the project aims to expand the electricity transmission and distribution network in Paramaribo, the capital, and the city of Nickerie, boosting power supply for beneficiaries and improving the efficiency of the South American nation’s electrical grid.
“This agreement represents the beginning of development cooperation between SFD and the Republic of Suriname, underscoring SFD’s 50-year commitment to supporting developing nations in overcoming economic, social, and developmental challenges,” said SFD.
Transport and housing solutions in Maldives
In April, the fund signed a second development loan agreement valued at $17 million to support the expansion and development of the Velana International Airport Project in the Maldives, bringing SFD’s total financing for the facility to $217 million.
The fund said that the financing will be used to construct terminal buildings for international and domestic flights, as well as a seaplane terminal.
“The project is designed to increase the airport’s capacity to accommodate up to 7 million passengers annually, enhance operational efficiency, and meet the growing demand for travel and tourism,” said SFD.
The project is also expected to prepare the facility for future expansion to handle up to 15 million passengers per year, contributing to the economic growth and global connectivity of the South Asian nation.
Al-Marshad participated in the groundbreaking ceremony for the Affordable Housing Project in the Maldives.
The project is being financed through a $25 million concessional development loan from SFD.
It aims to provide more than 400 fully integrated housing units, benefitting over 2,700 individuals, and includes the development of essential infrastructure and services to ensure suitable and sustainable living conditions.
It also seeks to enhance resilience against natural disasters such as cyclones and flooding, while promoting economic and social development within local communities.
Since 1978, SFD has provided 17 development loans to the Maldives, financing 14 key projects and programs with a total value exceeding $488 million.
These projects span critical sectors such as transportation, water and sanitation, health, and infrastructure.
Renewable energy loan to Solomon Islands
SFD CEO Sultan Abdulrahman Al-Marshad signed a development loan agreement with the Solomon Islands’ Minister of Finance and Treasury Manasseh Sogavare. SFD
In April, SFD signed its first-ever development loan agreement with the Solomon Islands, valued at $10 million, to finance a renewable energy project.
The fund will help the construction of solar power plants with a total capacity of 35.5 megawatts, integrated with hourly energy storage systems to bolster the Pacific nation’s energy infrastructure.
“This initiative is designed to reduce reliance on conventional energy sources, support environmental sustainability, and advance the UN Sustainable Development Goals, while contributing to economic and social progress across the region,” said SFD.
This first-ever loan agreement also marked the beginning of development cooperation between SFD and the Solomon Islands, underscoring the fund’s growing role in supporting small island developing states to combat developmental, economic, and environmental challenges.
Multiple development projects in Tunisia
In March, SFD successfully handed over 330 residential units under its social housing development project in the Ben Arous governorate in Tunisia.
The initial phase of the project, supported by concessional financing from the SFD, valued at $150 million, aims to deliver 4,715 social housing units, spanning several governorates in the North African country.
In June, SFD also signed a new development loan agreement worth $38 million to finance the establishment of an Oasis Hub Project in southern Tunisia.
The project aims to support sustainable rural development through the reclamation of more than 1,000 hectares of agricultural land across various regions of the country.
It also includes the drilling and equipping of 22 wells, the expansion of rural villages and their infrastructure, and the construction of over 285 housing units for local beneficiaries.
“The project will enhance the region’s infrastructure by building roads, pipelines, and networks for potable and irrigation water, while also supporting the development of educational institutions, agricultural facilities, and cultural, social, and commercial centers,” said SFD.
“These efforts collectively aim to improve the quality of life and stimulate economic and social growth in Tunisia’s southern governorates,” it added.
Since the inception of its operations in Tunisia in 1975, SFD has financed 32 development projects and programs, through concessional loans totaling more than $1.2 billion.
Tunisia has also received grants from through SFD, amounting to over $102 million.
Oil Updates — prices set to snap 2-week losing streak as peace in Ukraine remains elusive
Updated 22 August 2025
Reuters
LONDON: Oil prices were little changed on Friday as hope for immediate peace between Russia and Ukraine dimmed, increasing the risk premium demanded by oil sellers and putting prices on track to snap a two-week losing streak.
Brent crude futures were down 12 cents at $67.55 a barrel as of 7:15 a.m. Saudi time, while West Texas Intermediate crude futures fell 10 cents to $63.42.
Both contracts climbed more than 1 percent in the prior session. Brent has risen 2.7 percent this week, while the WTI has gained 1.1 percent.
Traders are pricing in more risk as hope that US President Donald Trump can quickly broker a deal to end the Russia-Ukraine war, which propelled a sell-off in oil over the last two weeks, fades.
“It’s proving difficult to set up a Putin-Zelensky summit, while discussions around potential security guarantees face obstacles,” analysts at ING said in a client note on Friday.
“The less likely a ceasefire looks, the more likely the risk of tougher (US) sanctions” on Russia.
The three-and-a-half-year war continued unabated on Thursday as Russia launched an air attack near Ukraine’s border with the EU and Ukraine said it hit a Russian oil refinery.
Meanwhile, US and European planners said they have developed military options by allied national security advisers.
That followed the first in-person talks at the weekend between the US and Russian leaders since Russia invaded Ukraine, which have so far yielded little progress toward peace.
Russian President Vladimir Putin demanded Ukraine give up all of the eastern Donbas region, renounce NATO ambitions and keep Western troops out of the country, sources told Reuters.
Trump pledged to protect Ukraine under any war-ending deal.
Ukraine President Volodymyr Zelensky dismissed the idea of withdrawing from internationally recognized Ukrainian land.
Oil prices were also supported by a larger-than-expected drawdown from US crude stockpiles in the last week, indicating strong demand.
Stockpiles fell 6 million barrels in the week ended August 15, the US Energy Information Administration said on Wednesday. Analysts had expected 1.8 million barrels.
Investors were also looking to the Jackson Hole economic conference in Wyoming for signals of a Federal Reserve interest rate cut next month. The annual gathering of central bankers begins on Thursday, with Fed Chair Jerome Powell speaking on Friday.
Lower interest rates can stimulate economic growth and increase oil demand, potentially boosting prices.
Closing Bell: Saudi main index slips to close at 10,866
Updated 21 August 2025
Reem Walid
RIYADH: ’s Tadawul All Share Index edged lower on Thursday, slipping 11.24 points, or 0.10 percent, to end at 10,866.83.
The benchmark’s total trading turnover stood at SR5.21 billion ($1.38 billion), with 87 stocks advancing and 159 declining.
Similarly, the Kingdom’s parallel market Nomu fell 94.16 points, or 0.35 percent, to settle at 26,535.79, as 42 stocks gained while 51 retreated.
Meanwhile, the MSCI Tadawul Index inched up 2.43 points, or 0.17 percent, to close at 1,409.05.
The best-performing stock of the day was Saudi Basic Industries Corp., which jumped 7.65 percent to SR61.90.
Other notable gainers included Sahara International Petrochemical Co., up 5.32 percent to SR20.01, and Fawaz Abdulaziz Alhokair Co., which climbed 5.17 percent to SR23.99.
On the other hand, Halwani Bros. Co. posted the sharpest loss, falling 4.92 percent to SR43.26.
Jahez International Co. for Information System Technology fell 3.84 percent to SR22.31, while Saudi Awwal Bank declined 3.73 percent to SR30.96.
On the corporate announcements front, Axelerated Solutions for Information and Communication Technology Co. released its interim financial results for the period ending June 30.
According to a Tadawul statement, the company posted a net profit of SR33.8 million during the first half of the year, up 94 percent from the same period last year.
The profit growth was mainly attributed to a 91 percent surge in gross profit to SR45.4 million, compared to SR23.8 million a year earlier, alongside an SR86.8 million increase in revenue and an SR1.8 million boost in other income.
The company’s board also recommended distributing SR8.4 million in cash dividends to shareholders for the first half of 2025.
A Tadawul filing showed that 28 million shares are eligible, with a dividend of SR0.30 per share, equivalent to 30 percent of the share’s par value.
Axelerated Solutions closed the session at SR28, marking a 3.70 percent gain.
Arriyadh Development Co. announced an update on its partnership agreement with Saudi Real Estate Co. and Riyadh Holding Co. to establish a special-purpose vehicle to develop educational complexes.
Arriyadh Development Co. ended the day at SR32.70, up 0.86 percent.
GCC Islamic insurers see growth but face 2025 profit squeeze, S&P says
Saudi insurers led the surge, generating around $960 million last year
Credit ratings for Islamic insurers will remain largely stable
Updated 21 August 2025
Nirmal Narayanan
RIYADH: The Gulf Cooperation Council’s Islamic insurance sector is set to maintain around 10 percent annual growth in 2025 and 2026, buoyed by population expansion, infrastructure spending, and regulatory reforms, according to S&P Global Ratings.
, the region’s largest Islamic insurance market, will continue to drive growth as Vision 2030 megaprojects fuel demand for coverage, S&P said in its latest white paper.
Islamic insurance, or Takaful, has expanded rapidly across the GCC in recent years, logging 24 percent to 28 percent growth in 2022 and 2023. Strong government backing, mandatory health insurance regulations, and a rising awareness of Sharia-compliant financial products have supported the sector’s expansion.
“Islamic and Takaful insurers in the GCC region continue to benefit from favorable growth prospects, and we therefore expect 2025 to be another year with solid top-line growth,” S&P said.
However, the agency cautioned that “heightened competition in motor and medical lines, primarily in , the largest Islamic insurance market in the region, will likely weigh on overall earnings in 2025.”
The sector posted record earnings in 2024, with aggregate net profit rising to about $1.1 billion, up from $940 million in 2023. Saudi insurers led the surge, generating around $960 million last year versus $853 million a year earlier, while earnings in other GCC markets climbed to over $120 million from $87 million.
In 2024, insurers in the GCC region excluding recorded 13 percent revenue growth, while the Kingdom experienced a 14 percent expansion.
S&P said that net earnings for the sector in the first half of 2025 fell 35 percent year on year, citing a 40 percent drop in profits in the Saudi market and weaker earnings in other regional markets.
This is mainly attributed to “heightened competition in motor and medical lines, as well as a decline in investment returns,” it added.
Strong credit ratings
According to S&P, credit ratings for Islamic insurers in the GCC will remain largely stable over the next 12 months, as most players are well capitalized.
The report added that total shareholder equity in the sector rose to approximately $8.5 billion in 2024, up from $7.5 billion in 2023, supported by strong earnings and capital injections.
S&P Global Ratings projects that overall credit conditions for Islamic insurers will remain relatively stable over the next 12 months. However, it said that “some loss-making players will continue to face challenges relating to solvency and other regulatory demands,” which could prompt them to pursue mergers and acquisitions or raise capital to meet their needs.
In June, Fitch Ratings echoed similar views, saying that mergers and acquisitions are set to accelerate in ’s insurance industry as many firms struggle to meet new capital requirements or remain profitable amid intense competition and rising costs.
Fitch also noted that several smaller insurers are already in discussions with larger rivals to strengthen their capital positions and ensure long-term survival.
“Consolidation is particularly evident among smaller and midsize players in and the UAE, as economies of scale become more important,” S&P said in its latest report, adding that thin capital buffers and rising regulatory and solvency requirements will continue to drive consolidation in the sector.
Potential challenges
S&P warned that a flare-up in the conflict between Israel and Iran, along with any regional escalation, could negatively affect business sentiment across the Middle East, including the GCC, and pressure insurers’ earnings.
Although global tariff disputes have so far had minimal impact on GCC economies and insurers, S&P cautioned that ongoing volatility in capital markets could weigh heavily on earnings if trade tensions escalate.
UAE central bank boosts gold reserves by 26% to $7.9bn in first 5 months
Updated 21 August 2025
Nadin Hassan Reuters
RIYADH: Gold reserves held by the Central Bank of the UAE increased by 25.9 percent during the first five months of 2025 to reach 28.93 billion dirhams ($7.9 billion).
The regulator’s statistical bulletin revealed that the UAE’s gold holdings also edged up on a monthly basis, recording a 0.49 percent rise in May to 28.79 billion dirhams, compared to 28.65 billion dirhams at the end of April, Emirates News Agency reported.
In addition to stronger gold reserves, the bulletin showed that demand deposits grew significantly, surpassing 1.16 trillion dirhams by the end of May. This was an increase from 1.10 trillion dirhams at the end of 2024.
Of the total, 892.57 billion dirhams were held in local currency, while 274.33 billion dirhams were in foreign currencies.
Savings deposits also registered a sharp increase, climbing to 359.57 billion dirhams by the end of May from 317.48 billion dirhams in December. Local currency savings accounted for 305.51 billion dirhams, while the figure for foreign currency stood at 54.06 billion dirhams.
Furthermore, time deposits surpassed the 1 trillion dirham mark for the first time by the end of May. Of this figure, 614.85 billion dirhams were denominated in local currency, while 398.35 billion dirhams were in foreign currencies.
The UAE’s banking sector continued its steady expansion, with total assets, including bankers’ acceptances, rising 0.6 percent in April to 4.75 trillion dirhams.
The increase was driven by resilient credit demand and a surge in non-resident deposits, Emirates News Agency reported.
Across the Gulf, banking performance was mixed. Kuwait posted a 6.7 percent year-on-year rise in assets to 93.5 billion dinars ($303 billion) in March, while saw a 7.4 percent jump to SR5.3 trillion ($1.41 trillion) in April.
Qatar, however, recorded a marginal 0.1 percent monthly decline in total assets to 2.07 trillion riyals ($559 billion), reflecting weaker domestic holdings.
Global prices
Gold prices edged lower on Thursday after the US Federal Reserve’s July meeting minutes showed a majority consensus on holding interest rates steady.
Spot gold was down 0.2 percent at $3,340.09 per ounce, as of 11:02 a.m. Saudi time. US gold futures for December delivery also lost 0.2 percent to $3,382.30.
Minutes from the Fed’s July meeting showed the policymakers who dissented against last month’s decision to keep interest rates unchanged were alone in advocating for a rate cut.
Non-yielding gold typically performs well in a low interest rate environment.
The Fed has held rates steady since December, although investors still expect an 81 percent chance of a quarter-point cut by September, according to the CME’s FedWatch tool.
Fed Chair Jerome Powell is expected to speak on Friday at the Aug. 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labor market or focuses on curbing inflation.
