ISLAMABAD: A Pakistani market research organization on Wednesday estimated a further decline in inflation in the ongoing month, projecting it to fall below 1%, marking the lowest monthly year-on-year (YoY) reading in over three decades.
Topline Pakistan Research, a division of Topline Securities, a prominent brokerage house in Pakistan, gathers and analyzes market data along with consumer behavior and socio-economic indicators.
In recent years, Pakistan has grappled with high inflation, with consumer prices reaching a record 38% in May 2023. However, subsequent monetary policy measures and a series of economic reforms led to a substantial decline, bringing the annual inflation rate down to 1.5% in February 2025.
“Pakistan’s Consumer Price Index (CPI) for Mar 2025 is expected to bottom out and clock in at 0.5-1.0% YoY (+0.9 percent MoM), lowest monthly YoY reading in over 3 decades, taking 9MFY25 average to 5.38% compared to 27.06% in 9MFY24,” Topline Pakistan Research stated in its estimate.
It noted the anticipated decline in March 2025’s CPI was likely to follow a 2.3% reduction in electricity prices, resulting from a higher fuel cost adjustment of Rs2 per kilowatt hour (kWh) compared to Rs1/kWh in the previous month.
The transport segment index is also expected to decrease by 0.7% month-on-month, owing to a decline in diesel and petrol prices by an average of 2%.
Given these developments, Topline Pakistan Research said it was also revising its inflation forecast for fiscal year 2025 downward from 6-7% to 5-6%.
With the expected inflation rate of less than 1 percent for March 2025, the research organization said the real interest rates will be significantly higher than Pakistan’s historic average of 200-300 basis points, standing at 1,100-1,150 basis points. However, based on fiscal year 2026 inflation estimates of 8-9%, real rates are projected to be 300-400 basis points positive.
Topline Pakistan Research also cautioned any major deviation in commodity rates from current levels, especially fuel prices, could result in change in inflation estimates.
Pakistan March inflation to drop below 1% — market analysis
https://arab.news/2duzt
Pakistan March inflation to drop below 1% — market analysis
- Topline Pakistan Research says the decline may mark the lowest level in over three decades
- The research firm cautions any major deviation in commodity prices will impact the inflation rate
Eric Trump confirms commencement of pre-construction works on Jeddah Tower
RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.
Set to rise 47 floors along the Red Sea coast, the building is being developed by London-listed Dar Global in partnership with the Trump Organization.
The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”
“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.
He added: “We’ve got all the plans and we just started the pre-construction works. This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”
The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.
Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”
Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.
The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.
Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”
He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”
PIF’s AviLease secures investment-grade ratings from Moody’s, Fitch
RIYADH: Saudi Arabia’s AviLease has secured investment-grade corporate credit ratings from Moody’s and Fitch Ratings, as the global aircraft lessor continues to expand its portfolio and strategic role within the Kingdom’s aviation sector.
Owned by Saudi Arabia’s Public Investment Fund, AviLease announced it received a Baa2 rating with a stable outlook from Moody’s and a BBB rating with a stable outlook from Fitch.
The two agencies highlighted AviLease’s high-quality portfolio of new-technology aircraft with a strong credit mix, alongside its robust balance sheet and growth trajectory.
In an interview with Arab News, Edward O’Byrne, CEO of AviLease, said: “We just received Baa2 from Moody’s and BBB from Fitch, which is two notches into the investment grade, and we got standalone investment grade from Moody’s, which is quite remarkable given the vintage of the company. We’re less than three years old.”
He continued: “We’re now part of a very small group of leasing companies — ten altogether, with us included — and on the aviation side, on the airline side, 11 airlines are IG-rated. So it’s a very, very small group.”
O’Byrne emphasized that the new ratings will give AviLease greater access to international markets, allowing it to tap into capital markets, lower the cost of financing, and de-risk its liability structure.
“This allows us to not only issue debt here in Saudi Arabia, but globally, and that means we can go to the US capital markets, but also Japan, and also the sukuk market if we want to,” he said.
O’Byrne added: “That gives us a lot of flexibility and, obviously, the ability to lower our spreads, our cost of financing. In reality, we’re about two years ahead of our business plan already.”
He noted that the company is expected to become one of the largest players in the global leasing industry by 2030.
O’Byrne also pointed to industry-wide challenges, particularly around aircraft supply.
“We basically only have aircraft from either Airbus or Boeing. They represent about 90 plus percent of the production globally,” he said. “If either or both of those manufacturers can't produce at scale, then we have a problem.”
The global aviation sector, he noted, has yet to return to pre-2018 production levels.
“We have roughly 3,500 aircraft that have not been produced, they are missing in the industry,” O’Byrne said.
He added that, as an aircraft owner managing a fleet of around 200 planes, the company benefits from limited supply, which increases demand for its aircraft.
The company is also actively exploring sustainable aviation fuel initiatives in Saudi Arabia.
“We’re also exploring critical e-fuels, and in Saudi Arabia, we have a unique opportunity to produce direct fuel from sun and wind power,” O’Byrne said.
The ratings also recognize AviLease’s strategic role in supporting PIF’s aviation sector initiatives under Saudi Arabia’s Vision 2030.
“The ratings open the door for even greater financial flexibility, as we will be able to tap into the unsecured debt capital markets,” said O’Byrne, in a press statement.
He noted that AviLease has quickly joined the ranks of a distinguished group of aircraft lessors in the industry.
Fahad Al-Saif, chairman of AviLease, said: “These ratings will enable AviLease to access global capital markets to finance its business strategies, positioning itself at the forefront of the aircraft leasing industry, in complete alignment with the National Aviation Strategy and Saudi Arabia’s Vision 2030.”
Derayah Financial surpasses market growth in Saudi brokerage, asset management, CEO says
RIYADH: Saudi investment firm Derayah Financial saw its assets under management soar to SR17 billion ($4.53 billion) in 2024 as it outpaced growth across the sector in the Kingdom, according to its CEO.
Speaking to Arab News at the Capital Markets Forum 2025, Mohammed Al-Shammasi revealed that this rise to a 70 percent year-on-year growth, ranking the company among the top independent firms in Saudi brokerage revenues, with the third-largest market share.
Saudi Arabia’s asset management industry was set for growth in the second half of 2024 and into 2025, with AUM increasing 13.5 percent year over year to exceed $250 billion by mid-2024, according to a Fitch Ratings report released in October.
The Kingdom has the largest asset management industry in the Gulf Cooperation Council, the fifth-largest in the Organisation of Islamic Cooperation, and the second-largest public Islamic funds market globally.
“The overall size of the market is actually growing at a very decent growth rate. So, if you look at retail brokerage or digital brokerage, it is historically growing at a 9 percent CAGR year after year,” he said, adding: “On the asset management side, that has been growing at around 14 percent year after year.”
Oversubscribed IPO
Al-Shammasi also discussed Derayah’s recent initial public offering, which was 162 times oversubscribed, underscoring the firm’s strong market position. “This is a great testament to the company’s performance over the past few years,” he said.
Founded 17 years ago as a digital challenger in capital markets, Derayah has grown into Saudi Arabia’s third-largest brokerage on of the the largest independent brokers in the region.
The IPO allows shareholders to sell 20 percent of the company’s shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors.
“We think this will give us huge credibility in the market,” Al-Shammasi said, adding that the transaction could also pave the way for more fintech companies to list on the Saudi stock exchange.
The CEO emphasized the strong demand for Derayah’s IPO from investors across Asia, Europe, and the US. “We have seen investors from all over the world submitting bids for our IPO,” he noted.
Al-Shammasi further assured that Derayah is well-funded for the near future, with a debt-free balance sheet and a track record of generous dividend distributions. “The company does not really need any capital in the near term to continue its strategy and growth plans,” he said.
“We have a perfect environment to raise money here in the Kingdom, and I’m more than happy to tap the market if we need it,” Al-Shammasi added.
The CEO also revealed that Derayah has partnered with Alpaca, a significant player in international brokerage, to cater to the growing local fintech sector. The partnership aims to provide fintechs in Saudi Arabia with a localized version of Alpaca’s services while facilitating international investors’ access to the Saudi market.
“Alpaca operates a lot of brokerage houses, and we believe this partnership will pave the way for international investors to come and trade in the local market,” he explained.
The Capital Markets Forum 2025, hosted by Saudi Tadawul Group, aims to bring together policymakers, business leaders, and industry experts to discuss trends shaping the Kingdom’s capital markets and position Saudi Arabia as a key player in the global financial ecosystem.
NUPCO secures $667m in financing to boost Saudi healthcare supply chain
RIYADH: Saudi Arabia’s National Unified Procurement Co. has secured three significant financing agreements totaling SR2.5 billion ($666.6 million) to strengthen supply chain financing for healthcare suppliers.
In an interview with Arab News at the PIF Private Sector Forum, NUPCO’s Chief Commercial Officer Khalid Al-Ghamdi said that the agreements were made with prominent financial institutions, including Banque Saudi Fransi, Abu Dhabi First Bank, and Tameed. These partnerships are designed to provide suppliers with better access to capital, enabling them to meet the increasing demand for medical supplies across Saudi Arabia.
The company signed an agreement worth SR500 million with Banque Saudi Fransi to finance the supply chain in healthcare. “It’s for the suppliers,” Al-Ghamdi said.
Another agreement with Abu Dhabi First Bank is worth SR1 billion to enable “our suppliers to take financing throughout these agreements and making sure that they are really overcoming all the financing challenges that they might have.”
The agreement signed with Tameed is worth SR1 billion to support small and medium enterprises within the healthcare sector.
“Tameed is looking after the SMEs, where we are trying as much as we can to make them enabled and grow within the sector of the healthcare as well,” Al-Ghamdi explained.
NUPCO, formerly dedicated to serving public hospitals, is now expanding its services to the private healthcare sector.
Al-Ghamdi highlighted that the company’s healthcare logistics and digital solutions will now be available to private hospitals, clinics, and small and medium-sized enterprises.
“What we discovered is that, up until the post-COVID period, NUPCO was primarily focused on providing services to the public sector, as that was our main priority and mandate,” he said.
Al-Ghamdi added: “However, we soon realized that the private sector is an integral part of the healthcare ecosystem. The ongoing transformation in healthcare will eventually lead to a shift, with the privatization efforts making even the public sector more aligned with private sector dynamics.”
A central component of this expansion is the introduction of a new digital healthcare marketplace, scheduled to launch by the end of the first quarter of 2025—just one month away.
This innovative platform will enable private clinics and SMEs to purchase medical equipment and supplies seamlessly, while also offering tailored financing solutions. By doing so, it aims to simplify access to advanced medical infrastructure, empowering healthcare providers to enhance their capabilities and improve patient care.
“For example, a small clinic wants to buy a dental chair or a laser machine. They can go through the marketplace and find financing solutions over there, and instead putting their capital in one asset like one chair or one laser machine, they can go for five or six, as much as they can,” Al-Ghamdi stated.
Enhancing Kingdom’s healthcare logistics
The financing agreements are a key element of NUPCO’s comprehensive strategy to bolster the healthcare sector’s logistics and procurement infrastructure. As a wholly owned subsidiary of the Public Investment Fund, NUPCO is at the forefront of driving Vision 2030’s healthcare transformation by optimizing the distribution of medical supplies throughout the Kingdom.
In a significant move to further this mission, NUPCO unveiled five strategic partnerships with global logistics leaders—DHL, SMSA, and UPS—during the PIF Private Sector Forum.
These collaborations are designed to strengthen and expand medical supply distribution networks, ensuring efficient and reliable delivery of critical healthcare resources across Saudi Arabia.
This initiative underscores NUPCO’s commitment to advancing the Kingdom’s healthcare ecosystem and supporting its long-term economic and social goals.
“We are making sure that all of them is alliances that we build our relationship to make sure that we extend the services all the way to their businesses,” said Al-Ghamdi.
Additionally, NUPCO forged a strategic partnership with the Saudi Authority for Industrial Cities and Technology Zones, the Kingdom’s largest operator of industrial cities, to support future logistics expansion and enhance operational capabilities. This collaboration aims to leverage MODON’s extensive infrastructure and expertise to further streamline healthcare logistics.
Furthermore, NUPCO signed an agreement with Monsha’at, Saudi Arabia’s Small and Medium Enterprises General Authority, to integrate SMEs into its supply chain ecosystem.
This initiative is designed to empower smaller businesses by providing them with opportunities to contribute to the healthcare sector, fostering economic growth and aligning with Vision 2030’s goals of diversifying the economy and supporting local enterprises.
Preparing for the future
With Saudi Arabia’s healthcare sector experiencing rapid growth, NUPCO is strategically scaling its logistics network to keep pace with rising demand. The company plays a pivotal role in the Kingdom’s healthcare ecosystem, currently supporting over 300 hospitals and 2,500 clinics.
This extensive reach ensures that 97 percent of Saudi Arabia has access to essential medical supplies and services.
“We are forecasting that between now and 2030, there will be additional more than between 26,000 to 43,000 extra beds that’s going to be in the market,” said Al-Ghamdi, adding that major events such as the World Cup 2034 and Expo 2030 will further drive demand for healthcare services.
As part of its ambitious expansion strategy, NUPCO is investing heavily in advanced logistics infrastructure, including the development of two cutting-edge warehouses slated to become operational by 2026. These state-of-the-art facilities will further enhance the company’s capacity to meet the growing demands of Saudi Arabia’s healthcare sector.
NUPCO’s nationwide distribution network is already a cornerstone of its operations, boasting over 2,600 delivery points and ensuring an impressive 8-hour delivery window for medical supplies within a 100-km radius of its warehouses. This efficiency underscores NUPCO’s commitment to reliability and speed in serving healthcare providers across the Kingdom.
Through its latest strategic agreements and initiatives, NUPCO is solidifying its role as a critical enabler of Saudi Arabia’s healthcare transformation.
On the second day of the PIF Forum, the company signed a MoU with MODON to enhance logistics services, localize content, and strengthen pharmaceutical supply chains within the Kingdom.
The agreement also aims to offer third-party logistics solutions to pharmaceutical factories and businesses in industrial cities.
By supporting both public and private sector growth, the company is driving the development of a robust, efficient, and cost-effective medical supply distribution system.
Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia
RIYADH: Rocco Forte Hotels is considering expansion into Saudi Arabia, eyeing potential locations along the Red Sea and in Riyadh, according to the company’s executive chairman.
In an interview with Arab News on the sidelines of the third PIF Private Sector Forum in Riyadh on Wednesday, Rocco Forte, who is also the company’s founder, confirmed that while details of the Red Sea project are still under wraps, the firm is actively evaluating opportunities in the Kingdom.
“Obviously, with PIF (Public Investment Fund) investing in us, we completed the deal last January and we’re starting to become active and looking seriously at things here (in Saudi Arabia),” Forte said.
Forte highlighted the company’s partnership with PIF, which began in 2023 and involved the acquisition of a 49 percent stake by the Saudi fund.
The luxury hotel group, renowned for its properties typically ranging from 80 to 120 rooms, is targeting strategic locations in the Kingdom that align with its brand values.
“For example, Diriyah would be an ideal place for us, and then one or two other areas in Riyadh,” Forte said. While the company’s current projects in Saudi Arabia are tied to PIF, he expressed openness to collaborating with private local investors in the future.
“We haven’t been here long enough to start talking to a lot of private investors, but it’s obviously something we’d like to do and explore the possibilities there,” he stated.
Forte emphasized that the investment from PIF has significantly raised the company’s global profile and strengthened its financial position.
“PIF made a large investment in my company, and it was a very high-profile deal, it raised our visibility around the world in a way that wasn’t the case before,” he said.
He also praised PIF’s long-term investment approach, aligning with Rocco Forte Hotels’ family-owned business model.
“Many funds who invest in hotel companies and so on have a very short vision,” he said, “PIF is a different type of investor, and it very much coincides with my vision,” he added.
In addition to its plans in Saudi Arabia, Rocco Forte Hotels is broadening its global footprint, with five new hotels currently under development in Italy, including an upcoming property in Milan scheduled to open in November.
The company is also exploring growth opportunities in Spain, Greece, and the US, driven by robust demand from American travelers.
Forte also noted emerging trends in Saudi Arabia that are shaping the luxury hospitality sector, such as the growing popularity of multi-generational family travel and the increasing convergence of business and leisure trips.
“There’s a lot of business travel where people are either adding a few days at the beginning or end for leisure. That’s very prevalent now,” he observed, underlining that while business travel has not fully returned to pre-pandemic levels, new patterns are emerging.
Reflecting on Saudi Arabia’s tourism transformation, Forte described the scale of development as unprecedented.
“If you’re outside Saudi Arabia, you don’t realize what is going on here,” he said. “Nothing like this has ever been attempted anywhere in the world. They’re developing 20 different destinations, and there’s an energy and dynamism which I think has captivated all the people.”
