LONDON: Oil prices rose more than 1 percent on Wednesday after reports that Israel could be preparing to strike Iranian nuclear facilities raised fears of a supply disruption in the Middle East.
Brent futures rose 79 cents, or 1.2 percent, to $66.17 a barrel by 12:18 p.m. Saudi time. US West Texas Intermediate crude jumped 82 cents, or 1.3 percent, to $62.85.
US intelligence suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple US officials.
It was not clear whether Israeli leaders have made a final decision, CNN added, citing the officials.
“Such an escalation would not only put Iranian supply at risk, but also (put supply at risk) in large parts of the broader region,” ING commodities strategists said.
Considering Iran exports more than 1.5 million barrels per day, fears of supply disruptions have helped to drive prices higher, said UBS analyst Giovanni Staunovo.
Iran is the third-largest producer among the members of the Organization of the Petroleum Exporting Countries and an Israeli attack could upset flows from the country.
There are also concerns that Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz, through which Saudi Arabia, Kuwait, Iraq and the UAE export crude oil and fuel.
The US and Iran have held several rounds of talks this year over Iran’s nuclear program while US President Donald Trump has revived a campaign of stronger sanctions on Iranian crude exports.
Despite the discussions, US officials and the Iranian Supreme Leader Ayatollah Ali Khamenei made comments on Tuesday indicating both sides remain far from a resolution.
However, there were some signs of improving crude supply. US crude oil stocks rose last week while gasoline and distillate inventories fell, market sources said, citing American Petroleum Institute figures on Tuesday.
Investors will also assess US oil stock data from the Energy Information Administration later on Wednesday.
Kazakhstan’s oil production, meanwhile, has risen by 2 percent in May, an industry source said on Tuesday, defying OPEC+ pressure to reduce output.
Oil Updates — prices jump more than 1% on Middle East supply fears
https://arab.news/4dkp9
Oil Updates — prices jump more than 1% on Middle East supply fears
- US intelligence suggests Israel plans to strike Iran, CNN says
- US-Iran nuclear talks show little progress, impacting oil market
Riyadh emerging as global super hub amid economic boom: Knight Frank
RIYADH: Saudi Arabia’s capital is rapidly transforming into a leading global wealth hub, fueled by the Kingdom’s successful economic diversification under Vision 2030, a recent Knight Frank report said.
The Riyadh edition of the “Emerging Wealth Hub” series noted that the Saudi capital is transitioning from an oil-dependent economy to a powerhouse for finance, culture, and lifestyle, attracting multinational corporations, investors, and expatriates.
Surging demand for commercial and residential real estate, coupled with major infrastructure projects, is positioning Riyadh as a future-ready super hub.
A key driver has been the Regional Headquarters Program, which has already exceeded its 2030 target, with 600 global firms, including Bechtel, PwC, and Northern Trust, setting up regional bases in Riyadh.
This influx has pushed Grade-A office vacancy rates down to just 2 percent, while prime office rents have skyrocketed by 23 percent in the past year and 84 percent since 2020.
The city’s booming startup ecosystem, supported by government incentives, advanced digital infrastructure, and a growing talent pool, complements its rise as a financial and business epicenter.
Amar Hussain, associate partner in research for the Middle East and North Africa region at Knight Frank, noted that Riyadh’s strategic vision, economic growth, and commitment to sustainability “positions it as a leading global wealth hub of the future, attracting talent, investment and tourism on an unprecedented scale.”
He added: “Its global positioning as a leisure destination will only increase further when the eyes of the world turn to the city for the 2030 World Expo and the 2034 FIFA World Cup.”
According to the report, the Kingdom issued over 160,000 new business licenses in the last quarter of 2024 — a 67 percent annual increase — bringing the total number of registered businesses to 1.6 million. The national unemployment rate has fallen to a historic low of 7 percent.
Partner and Head of Research for the MENA region at Knight Frank, Faisal Durrani, said: “The private sector is booming, with new business licenses up by two-thirds in a single year and vacancy rates for grade-A offices among the lowest in the world.”
Durrani added: “This wave of entrepreneurialism is both a result of and a catalyst for Riyadh’s evolving business environment, and the city’s ability to attract human and financial capital is accelerating its emergence as a future-ready global wealth hub.”
To accommodate future demand, Riyadh’s office space is projected to nearly double from 5.5 million sq. meters to 9.8 million sq. meters by 2027, supported by government-backed infrastructure projects and growing institutional investment.
In an interview with Arab News in June, Emmanuel Durou, technology, media, and telecommunications leader at Deloitte Middle East, highlighted the Kingdom’s supportive business environment, which includes government incentives, substantial funding mechanisms such as venture capital and private equity, and vibrant incubator ecosystems, including Garage 46 and Impact 43.
Also speaking to Arab News in June, Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the nation.
“Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,” he explained to Arab News.
“This has helped startups in scaling globally and simplifies exit strategies,” Al-Anizy said.
Sustainability and liveability take center stage
Riyadh is integrating sustainability into its rapid expansion, with initiatives like the King Abdullah Financial District — the world’s largest LEED Platinum-certified mixed-use business hub — and the Mostadam green building rating system. The Green Riyadh program, which aims to plant 7.5 million trees, is enhancing air quality and urban livability.
“Urban mobility in Riyadh is being redefined through major investments in infrastructure,” said Harmen De Jong, regional partner and head of consultancy for the MENA region at Knight Frank.
Major transport upgrades, including the Riyadh Metro, the expansion of King Khalid International Airport, and the 220-km Sports Boulevard, are improving connectivity and reducing congestion.
“These transport enhancements are not only reducing congestion but also improve air quality and overall urban resilience,” De Jong said, adding: “Combined with the rise in major multinationals opening offices in the city and high-quality residential and leisure developments, Riyadh has a uniquely compelling offer as a live, work, play destination both within the GCC (Gulf Cooperation Council) and globally.”
Leisure, tourism, and global events fuel growth
Riyadh is fast becoming a premier leisure destination, with Riyadh Season 2024 drawing 18 million visitors. The city’s successful bids to host the 2030 World Expo and the 2034 FIFA World Cup are set to amplify its global profile, with the Expo alone expected to generate an economic impact of $94.6 billion.
Tourism is booming, with Saudi Arabia surpassing its original Vision 2030 target by welcoming 106.2 million visitors in 2023. The new goal is 150 million visits by 2030, supported by visa-free entry for 66 countries and the launch of Riyadh Air. Hotel supply is expanding rapidly, with 30,000 rooms expected by 2027.
Inbound tourism spending in the Kingdom surged to a record SR153.61 billion ($40.95 billion) in 2024, marking a 13.82 percent annual increase, according to data from the Saudi Central Bank.
The rise also pushed the Kingdom’s travel balance surplus to its highest annual level yet, SR49.78 billion, up 7.81 percent from the previous year.
Residential market soars amid surging demand
Riyadh’s residential sector is experiencing unprecedented growth, with apartment prices increasing by 75 percent and villa costs by 40 percent since 2019. In 2024 alone, prices rose by 10.6 percent for apartments and 6.3 percent for villas, while sales volumes jumped 44 percent year-on-year.
New Premium Residency Visas, linked to property ownership, are opening the market to international investors. With 305,000 new homes needed in the next decade, developers and investors have significant opportunities ahead.
Knight Frank’s Hussain said: “With evolving buyer profiles, increasing international interest and sustained local demand, Riyadh’s housing market is positioned for continued expansion and diversification.”
He added: “Our latest projections highlight the scale of opportunity for investors and developers in one of the region’s fastest-moving residential markets.”
Saudi Arabia attracts $32bn in mining investments amid sector reforms
- Kingdom has attracted $32 billion in investments in mining projects
- Mineral exploration spending has quadrupled since 2018, reaching $100 per sq. km
RIYADH: Saudi Arabia’s ongoing mining reforms have helped the Kingdom attract $32 billion in investments for projects in iron, phosphate, aluminum, and copper, a senior official said.
Khalid Al-Mudaifer, vice minister of industry and mineral resources, told financial news outlet Asharq Business that the figure represents nearly one-third of the $100 billion the Kingdom aims to attract in the sector by 2030.
This comes as the country’s mining sector is projected to increase its contribution to gross domestic product from $17 billion in 2024 to $75 billion by 2030. The industry generated $400 million in revenue in 2023 and is now supported by a $100 billion investment roadmap targeting critical minerals by 2035.
“Saudi Arabia has attracted approximately $32 billion in investments in mining projects in iron, phosphate, aluminum, and copper, which are already under construction. This represents nearly a third of the $100 billion targeted for investment by 2030,” Al-Mudaifer said.
The vice minister added that mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent.
He said the number of exploration firms in Saudi Arabia has grown from just six in 2019 to 132 today, with 60 percent of them being small and medium-sized enterprises, according to the Saudi Press Agency.
Foreign companies currently represent approximately 70 percent of all firms operating in the Kingdom’s mining sector, Al-Mudaifer said.
Saudi Arabia is estimated to hold SR9.37 trillion ($2.5 trillion) in mineral reserves, and the Kingdom aims to establish mining as the third pillar of its economy, after oil and petrochemicals.
In January, at the Future Minerals Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef announced upcoming exploration opportunities across 5,000 sq. km of mineralized belts in 2025, as the Kingdom continues its push to expand the sector.
In March, Saudi Arabia launched a new incentive package to attract foreign direct investment into its mining industry.
As part of this initiative, the Ministry of Investment is collaborating with the Ministry of Industry and Mineral Resources through an exploration enablement program designed to simplify investment procedures in the sector, according to the Saudi Press Agency.
The program is part of broader efforts to enhance mineral exploration and foster an attractive environment for both local and international mining companies.
Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations
RIYADH: Saudi youth-owned businesses now represent 38 percent of the Kingdom’s total active commercial registrations as of the second quarter of this year, according to the Ministry of Commerce.
The fastest-growing sectors among the 474,000 youth-led businesses include app development, which led the way with 28 percent annual growth resulting in 18,780 commercial permits. Artificial intelligence technologies closely followed, with a 34 percent increase, reaching 14,409 registrations.
The e-gaming industry also showed remarkable progress, expanding by 32 percent to 8,260 permits, while film, video, and TV production grew by 20 percent, totaling 5,752 registrations by mid-2025.
Saudi Arabia has a predominantly young population, with the latest census data indicating that individuals under the age of 30 constitute 62.8 percent of the population.
Through public-private partnerships and targeted programs, the nation is equipping young Saudis with digital literacy, entrepreneurial skills, and industry-specific expertise in high-growth sectors like AI, renewable energy, and tourism.
Private sector giants, including PwC, NEOM, Aramco, and Red Sea Global, are collaborating with government initiatives to equip Saudi youth with industry-relevant expertise.
Programs such as PwC’s Hemam training, Red Sea Global’s leadership programs, and vocational training schemes ensure hands-on experience, aligning education with labor market demands.
Incubators like The Garage foster startup innovation.
However, challenges persist in aligning education with labor market needs, necessitating ongoing cooperation between businesses and academia to sustain this talent pipeline.
PwC’s Riyadh Al-Najjar emphasized in an interview with Arab News in January that an “entrepreneurial mindset” is critical for private sector growth, while Red Sea Global’s Zehar Filemban highlighted the need for adaptability in a fast-evolving job market.
The government is addressing these needs through vocational training, Saudization programs, and incentives to attract and retain skilled professionals.
Egypt’s mineral revenues rise 131% to $446m on strong gold output, says minister
- Gold and silver output reached 640,000 ounces
- Ore and mineral production rose to 26 million tonnes
RIYADH: Egypt’s revenues from mineral wealth development jumped 131 percent year on year to nearly $446 million in fiscal year 2024/2025, driven by strong growth in gold and silver production.
Speaking at the Egypt Mining Forum 2025, Minister of Petroleum and Mineral Resources Karim Badawi said, gold and silver output reached 640,000 ounces during the year, a 14 percent increase from the previous period, generating $1.54 billion in sales, up 57 percent annually.
The gains were attributed to higher production volumes and stronger export performance, according to his statement on Facebook.
Egypt’s mining sector is undergoing a major transformation under the Vision 2030 agenda, as the government seeks to position the country as a regional hub for mineral exploration while boosting its gross domestic product contribution through sustainable and environmentally responsible practices.
“Egypt is a nation distinguished by its unparalleled strategic location and expansive infrastructure. Our rich legacy of mineral resources includes gold, copper, silver, zinc, platinum, as well as a diverse range of other precious and base metals,” Badawi said.
He added: “These enormous potentials are backed by the Egyptian government’s economic reform program, aimed to achieve economic stability, attract investments, and enhance market attractiveness, thus contributing to strengthening Egypt’s position as a distinctive and exceptional destination for international investors and placing it on the global mining investment map, in line with the Sustainable Development Strategy.”
According to the minister, ore and mineral production rose to 26 million tonnes, marking a 39 percent increase from the previous year. Egypt also exported 1.4 million tonnes of ores and mining products in 2024/2025, generating $52.5 million in export revenues.
During the forum, the ministry signed two agreements with major international mining companies to boost exploration efforts.
One licensing contract was signed with Centamin Central, a subsidiary of South African-based AngloGold Ashanti, for the exploration of gold and associated minerals, according to Egypt’s State Information Service.
The second agreement, signed with Canada-based mining giant Barrick, aims to pave the way for expanded collaboration and exploration activities in the country.
“This step clearly demonstrates the strong desire of international companies to expand their investments in the Egyptian mining sector, which serves as global proof of major international companies’ confidence in Egypt’s investment climate, reflecting the success of the state’s policy in attracting foreign investments,” Badawi said.
Hotel spending drives Saudi POS transactions to $3.5bn
RIYADH: Hotel spending in Saudi Arabia increased by 8 percent in the week ending July 12, helping total point-of-sale transaction values reach SR13.12 billion ($3.5 billion).
The latest data from the Kingdom’s central bank, SAMA, revealed that the sector recorded SR281.56 million in transaction value, while the number of payments rose 4.6 percent to 839 million.
The overall POS value for the week dipped by 8.2 percent, with the number of transactions dropping by 3 percent to 223.57 million.
According to SAMA’s bulletin, the education sector saw the largest decrease, dropping by 27.6 percent to SR102.21 million. Spending on miscellaneous goods and services ranked next, decreasing 15.6 percent to SR1.51 billion, but still accounting for the third-largest share of the POS value.
Restaurants and cafes, the division with the most significant share of total POS value, recorded a 1.7 percent decrease to SR1.92 billion, while the food and beverages sector saw a 13 percent decrease, totaling SR1.84 billion and claiming the second-largest share of this week’s POS.
The top three categories accounted for approximately 40.2 percent of the week’s total spending, amounting to SR5.28 billion.
Other smallest spending drops were in gas stations, slipping by 2.6 percent to SR948.99 million, and spending on building materials, which decreased by 3.7 percent to SR330.83 million.
The health and furniture sectors also saw downward changes, decreasing by 7.6 percent and 4.9 percent to reach SR805.09 million and SR275.70 million, respectively.
Spending on clothing and footwear dipped by 7.3 percent to SR827.14 million, followed by a 6.9 percent decrease in spending on transportation.
Expenditure on jewelry followed the trend, declining 7.9 percent to SR305.49 million.
Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.47 billion, an 8.1 percent decrease from the previous week.
Jeddah followed closely with a 7.9 percent dip to SR1.89 billion, while Dammam ranked third, down 7.9 percent to SR626.13 million.
Makkah saw the smallest decrease, inching down 1.1 percent to SR530.71 million, followed by Abha with a 3.6 percent decrease to SR209.73 million.
Hail recorded 3.99 million deals in activity volume, down 5.3 percent from the previous week, while Tabuk reached 4.57 million transactions, dropping 15.5 percent.
