Intersection between family offices and early-stage startups poised to expand, experts say

Intersection between family offices and early-stage startups poised to expand, experts say
Family offices across the Middle East and North Africa are recalibrating their investment strategies. Shutterstock
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Updated 14 March 2025
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Intersection between family offices and early-stage startups poised to expand, experts say

Intersection between family offices and early-stage startups poised to expand, experts say

RIYADH: Family offices have traditionally been influential in private capital investment, but their role in business funding and early-stage startups has often remained under the radar.  

Historically, these entities have prioritized wealth preservation, stability, and strategic investments aligned with their company interests.  

A shift is underway, however, with family offices increasing their exposure to venture capital through direct investments, fund allocations, and partnerships with startup incubators.  

Family offices across the Middle East and North Africa are recalibrating their investment strategies, emphasizing stability and selective diversification, according to a Campden Wealth and HSBC Global Private Banking report.  

Real estate remains a dominant asset class, accounting for 34 percent of portfolios and showing a net increase in interest of 44 percent, which reflects the difference between the share of family offices planning to raise their holdings and those intending to reduce them, demonstrating strong momentum in property investments.  

Bonds and commodities are also gaining traction, with net increases in interest of 33 percent and 50 percent, respectively, as family offices prioritize reliable asset classes amid global economic uncertainties. 

In contrast, MENA family groups show a limited appetite for expanding their exposure to private equity or debt, with minimal net change reported in these categories.  

This stands in stark contrast to family offices in Europe and North America, where private equity remains a primary focus.  

Despite the restrained interest in private equity overall, 58 percent of MENA family groups are active in VC, favoring early-stage investments such as angel and seed funding at 50 percent, as well as growth-stage opportunities at 50 percent. 

The findings reflect a measured approach, balancing traditional, stable investments with selective forays into innovation-driven sectors. 

Paula Tavangar, chief investment officer at Injaz Capital, a regional investment firm, believes that the shift is moving quickly.

In an interview with Arab News, Tavangar emphasized that Saudi family offices are increasingly expanding beyond traditional asset classes and recognizing VC as a key investment opportunity. 

“With above half already investing in early-stage companies, this shift is well underway,” she said. However, she noted that while many family offices seek direct access to promising early-stage investments, they often lack the infrastructure to efficiently evaluate and structure deals.

This shift in investment strategy is driven in part by second-generation family office leaders who are more innovation-focused. 




Paula Tavangar, chief investment officer at Injaz Capital. Supplied

“They seek exposure to both local and global early-stage opportunities, whether through setting up their own shop, being an LP (limited partner) in VC funds, or mandating external experts like us,” Tavangar said. 

Injaz Capital has been actively sourcing and reviewing deals for family offices in both early- and growth-stage investments in Saudi Arabia. “For example, we invested in the latest round of Xpence, a smart business spend platform,” she said.

While fintech and e-commerce have traditionally dominated Saudi VC, Tavangar noted these sectors are becoming saturated. 

Family offices are shifting toward industries aligned with their core businesses and national priorities, including deep tech, renewables, and health tech.

“Healthcare spending is expected to total $180 billion by 2029, with increasing incentives for private investment,” she said, citing a $10 billion localization gap in the Kingdom’s pharmaceuticals and medical devices sector. 

Injaz Capital is addressing this through MENA Hayah, its health tech-focused investment platform.

The relationship between family offices and VC firms is changing. Currently, about 70 percent of these groups in MENA source deals through their own networks instead of investing in VC funds, but this trend is shifting.

“As the Saudi startup ecosystem matures, family offices are increasingly exploring structured partnerships with VC firms,” Tavangar said. Many prefer co-investment models in late-seed and series A+ rounds over traditional fund commitments.

Large family groups are also launching sector-specific investment arms and collaborating with specialized VCs to gain proprietary deal flow and expertise. 

“The goal is not just to follow an investment trend but to help build an environment where family offices can contribute meaningfully to economic growth while effectively managing risk,” Tavangar added.

Speaking with Arab News, Thomas Kuruvilla, managing partner of Arthur D. Little Middle East and India, explained that family offices have typically avoided VC due to their preference for control and long-term investment horizons.  

“Minority stakes in VC funds often fail to provide this comfort,” he noted. VC firms tend to focus on short-term portfolio diversification and exit strategies, whereas family offices emphasize stability.  

Additionally, many family groups have been cautious about early-stage investments because generating quick returns often contradicts the values they seek to instill in future generations. 




CaptionThomas Kuruvilla, managing partner of Arthur D. Little Middle East and India. Supplied

Kuruvilla highlighted several factors driving a change in approach, adding: “Younger family members are more tech-savvy and comfortable investing in emerging technologies.” 

Furthermore, portfolio diversification is becoming a priority, with family offices seeking access to disruptive business models and new technologies.  

Reputation building is also a motivator, as participation in prestigious VC funds enhances their credibility as serious venture investors.  

As a result, family offices are becoming major players in VC, offering long-term perspectives, sector expertise, and capital beyond mere financial investment. 

Speaking to Arab News, Achal Aroura, head of multi-family office EMEA at Klay Capital Limited, highlighted that many family offices have been investing in startups for years.

However, these investments often go unnoticed because they are structured as bilateral rather than traditional VC transactions. 

“The reason they go unnoticed is that these investments are not seen as traditional venture capital investments, but rather strategic investments made by these families and their existing businesses,” he explained.  

He added that firms like Klay are helping family offices take a more institutionalized approach, facilitating early-stage investments through venture funds, direct deals, and collaborations with startup incubators.  

Family offices tend to invest in industries that align with their broader investment goals and expertise.  

Kuruvilla identifies real estate, artificial intelligence, and healthcare, as well as biotechnology, renewable energy, and fintech as key areas of interest.  

“Many Middle Eastern family offices incorporate Islamic finance principles, ensuring compliance with ethical and religious guidelines,” he added.  

Aroura echoed these observations, noting a focus on technology-enabled startups in real estate, finance, and consumer sectors.  

“Lately, we have seen a lot of interest in data centers and AI-enabled startups and businesses,” he said. 

Obediah Ayton, chairman of Dhabi Hold Co., provided a contrasting perspective, explaining that family holdings — common in the UAE — differ from family offices in their investment approach. 

“A family office typically invests in liquid strategies or acts as LPs in VC funds,” he told Arab News.

In contrast, family holdings deploy capital directly from the business level, which can lead to frustration around the speed of investment decisions.  

Ayton explained that startups approaching family holdings or offices typically need to demonstrate alignment with the family’s business interests, such as solving an operational problem or reducing supply chain costs.  

“The times we have seen investment is normally by an Al-Futtaim investing in mobility — why? Because eventually, they want local distribution or vice versa, to expand their own products through that vertical into new markets,” he said. 




Obediah Ayton, chairman of Dhabi Hold Co. Supplied

Ayton also emphasizes that family offices rarely lead funding rounds due to a lack of in-house capabilities and risk appetite. Instead, they prefer to see reputable investors already involved. 

“Sitting on a cap table rarely happens, and if they do, they want to see good names that priced the business and revenues,” he explained. “If a startup with no revenue comes along, as opposed to a startup with known investors, I know which one is better for my job security within the family business.”  

To optimize their participation in VC, family offices are adopting various strategies. Kuruvilla suggests leveraging their industry knowledge and entrepreneurial experience to support portfolio companies.  

Direct investments allow for greater control, while partnerships with VC firms enhance due diligence. He also noted the growing involvement of younger family members, which introduces fresh perspectives and ensures long-term commitment to venture investing. 

Aroura outlined three primary ways family offices are engaging in startups: “Through early-stage venture capital funds, direct seed investments with founders, and through early-stage incubators from within the venture capital ecosystem.”  

These approaches provide a balance between institutional expertise, direct influence, and exposure to high-growth startups. 

The intersection between family offices and VC firms is also evolving. Kuruvilla highlights increased capital allocations to alternative assets, including co-investment opportunities that offer access to high-quality deal flow and shared risk management.  

“Family offices offer patient capital, ideal for emerging technologies and industries requiring substantial upfront investment,” he said.  

Sector expertise also plays a role, as family offices that leverage their industry knowledge tend to achieve better growth outcomes. Additionally, a focus on impact investing is emerging, particularly among younger generations who prioritize sustainability and social good. 

Aroura emphasized that VC funds bring an institutional approach to early-stage investing, helping family offices diversify their risk while accessing a curated portfolio of startups.  

“Family offices are starting to support venture capital funds, as these funds bring experience and an institutional approach to building a portfolio of companies that helps to diversify their risk of investing in early-stage startups,” he explained.
 


UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global
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UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

RIYADH: The non-oil private sectors of the UAE, Kuwait, and Qatar continued their expansion in April, supported by strong demand, improving output, and stable employment conditions, according to the latest Purchasing Managers’ Index surveys released by S&P Global.

In the UAE, the headline PMI held steady at 54 for a second consecutive month, reflecting continued momentum in the country’s non-oil economy. While output growth eased to a seven-month low, firms ramped up hiring at the fastest rate in nearly a year to manage capacity pressures. New orders surged, underpinned by the strongest international demand in five months.

This robust performance aligns with a wider regional trend of economic diversification, as Gulf nations—including Saudi Arabia—work to reduce their long-standing reliance on oil revenues.

“The April PMI results signaled a notable uptick in hiring activity across the non-oil private sector,” said David Owen, senior economist at S&P Global Market Intelligence.

“After several months of mild increases in payroll numbers, despite robust sales growth, job creation rose to its highest level in 11 months.”

Owen noted that the hiring push was largely aimed at easing backlogs, which, while still rising, did so at the slowest pace in six months. “That said, employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” he added.

Any PMI reading above 50 indicates expansion in the non-oil private sector, while a figure below 50 denotes contraction.

Business confidence in the UAE climbed to its highest level so far in 2025, as firms cited strong demand pipelines and positive expectations. Input purchases rose again in April, though at a slower pace than March, which had marked a 68-month high.

“Firms are hopeful that elevated demand levels and strong pipelines, as characterized by steeply rising backlogs, should propel activity higher in the coming months,” Owen said.

Despite increased purchasing and faster supplier delivery times, stock levels remained largely unchanged for the second consecutive month. Business optimism also rose for the third straight month in April.

In Dubai, operating conditions in the non-oil private sector improved at a slower pace due to weaker growth in new business inflows. Nonetheless, order books continued to expand sharply, driving strong overall business activity. Employment rebounded in April after a brief dip in March, as companies aimed to boost capacity. However, firms in Dubai expressed subdued confidence about future activity, with sentiment among the lowest on record.

Kuwait sees strongest output

Kuwait's non-oil private sector saw significant gains in April, with the country’s PMI rising to 54.2 from 52.3 in March—marking one of the sharpest expansions on record since the survey began in 2018.

“It was a bumper start to the second quarter of 2025 for non-oil companies in Kuwait, with a further influx of new orders leading companies to expand output at one of the sharpest rates since the survey began,” said Andrew Harker, economics director at S&P Global Market Intelligence.

The expansion was driven by robust new order growth, supported by competitive pricing and strategic marketing efforts. However, firms faced rising input costs that made it harder to maintain price stability.

While employment rose only marginally, the minimal hiring contributed to a further buildup in outstanding work.

“It remains to be seen, however, whether firms will be able to keep restricting selling prices in a scenario where input costs are rising sharply,” Harker noted. “The coming months will illustrate the extent to which companies are happy to see margins come under pressure in order to keep orders flowing in.”

Kuwaiti firms also reported a notable increase in export orders. Optimism about future output remained high, supported by competitive strategies, product development, and marketing.

Qatar growth slows slightly

Qatar’s non-oil sector saw a slight dip in overall momentum in April, with its PMI falling to 50.7 from 52 in March. Despite the decline, the index stayed above the neutral 50 mark for the 16th consecutive month, reflecting continued—if slower—growth.

Output among Qatari non-energy firms rose for the first time in 2025, but the sector faced a drop in new business and a cooling labor market.

“The PMI indicated continuing growth of the non-energy private sector economy at the start of the second quarter, but there was a loss of momentum owing mainly to a renewed reduction in new business and slower employment growth,” said Trevor Balchin, economics director at S&P Global Market Intelligence.

“The latest figure of 50.7 was the lowest in three months and below the long-run trend level of 52.3, as weaker demand offset an increase in total output.”

Growth was led by the manufacturing, services, and wholesale and retail sectors, while construction activity remained weak despite signs of stabilization.

Job creation remained positive across sectors, although April saw the slowest employment growth since August 2024.

“The employment component remained elevated in April, indicating further strong jobs growth. That said, there was evidence that the recent labor market boom was easing, with the rate of job creation down at an eight-month low,” Balchin said.

Wage growth also slowed to a five-month low but remained among the strongest since the survey’s inception in 2017.

Looking ahead, Qatari businesses maintained optimism for the year ahead, citing growth in real estate, infrastructure development, tourism, and a rising expatriate population as key drivers.


Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years
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Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

Saudi bank lending hits $827bn in March, fastest growth in over 3.5 years

RIYADH: Saudi Arabia’s banking sector continued its robust lending expansion in March, with total credit reaching SR3.1 trillion ($827.2 billion), marking a 16.26 percent year-on-year increase. 

According to data from the Saudi Central Bank, also known as SAMA, this represents the highest annual rise in three years and eight months. 

The surge was primarily fueled by corporate lending, which rose from 52.46 percent of total bank credit in March 2024 to 55.19 percent this year. Credit extended to businesses grew by 22.3 percent over this period to exceed SR1.71 trillion. 

This shift underscores how businesses are now the dominant force shaping Saudi Arabia’s lending landscape, signaling the economy’s accelerating diversification.     

Real estate activities continued to lead within the corporate loan mix, comprising 22 percent of business lending and growing by an impressive 40.5 percent year-on-year to reach SR374.5 billion. 

The sector’s continued expansion reflects heightened demand for housing, commercial infrastructure, and new development projects across the Kingdom’s mega-cities and giga-projects under Vision 2030. 

Other key sectors included wholesale and retail trade, which held a 12.43 percent share with SR212.8 billion in lending. Manufacturing accounted for 11.05 percent, with SR189.18 billion in loans. The electricity, gas, and water supply sector comprised 10.6 percent, with loans totaling SR181.43 billion. 

Each of these areas benefited from increased public and private sector spending and reforms targeting industrial growth and economic resilience. 

Notably, education — while accounting for just 0.55 percent of corporate loans — posted the highest growth rate across all sectors at 44.7 percent, reaching SR9.35 billion. This surge aligns with the Kingdom’s efforts to expand educational access and upgrade academic infrastructure in line with long-term human capital goals. 

Financial and insurance activities also showed strong momentum, expanding 38.41 percent to hit SR161.23 billion, ranking third in growth after real estate and education. The rise reflects increased demand for financial services, greater insurance penetration, and fintech integration across key economic sectors. 

Meanwhile, retail lending stood at SR1.39 trillion in March, growing 9.6 percent year on year. However, its share of total credit declined from 47.54 percent in March 2024 to 44.81 percent this year, reflecting a gradual shift in the banking sector’s focus from consumer finance to business-driven growth. 

This moderation in retail lending share comes despite strong performance in personal loans, auto finance, and housing credit, indicating that corporate and commercial financing now command greater attention from lenders responding to market trends and government priorities.   

Improved lending quality 

According to an April 2025 report by McKinsey & Company, the quality of lending in Saudi Arabia has improved across nearly all major sectors. Based on their analysis of expected credit loss versus lending volume from 2020 to 2023, sectors such as services, finance and insurance, and utilities have shown both increased lending and lower credit risk. 

A key finding in McKinsey’s data is that financial institutions in Saudi Arabia are increasingly diversifying their portfolios toward sectors with lower ECL growth and higher lending volumes. For example, the services and financial sectors have exhibited strong improvements in lending quality, while construction and agriculture continue to show relatively higher risk levels.  

A bubble chart in the report maps lending volume against changes in ECL, revealing that the Saudi banking sector is pivoting toward sectors with improving credit profiles. 

Sectors like manufacturing, trade, electricity, and utilities now dominate lending — not only in volume but also due to their lower risk outlooks. This trend aligns with national efforts to prioritize economic diversification and reduce overexposure to volatile or high-risk sectors. 

In the Gulf Cooperation Council, construction and trade sectors are growing steadily — according to McKinsey — at 5 to 8 percent annually, while real estate is expanding around 8 percent, supported by projects across Saudi Arabia and Qatar. Manufacturing is also gaining traction, bolstered by targeted industrial strategies. 

Meanwhile, emerging industries such as education, finance, and food services are collectively growing at rates of 20 percent or more annually.   

Capital market innovation 

McKinsey also noted that Saudi banks are transitioning from a traditional “originate-to-hold” model to a more agile “originate-to-distribute,” or OTD, model. This shift enables banks to issue loans and then offload risk through tools like loan trading, securitization, and syndicated deals, freeing up capital for further lending. 

In a milestone for Saudi financial markets, 2025 saw the signing of the Kingdom’s first residential mortgage-backed securities. Legal frameworks are being developed to enable more such instruments, providing capital-light financing options and paving the way for a more liquid corporate bond market.   

McKinsey projects that OTD volumes in Saudi Arabia could nearly double by 2030, improving banks’ return on assets and equity through faster lending cycles and increased fee income. This is expected to enhance financial sector efficiency while supporting large-scale projects through innovative funding channels.  

ESG and digital transformation 

The report also highlighted the growing role of environmental, social, and governance standards in shaping Saudi lending. With national sustainability agendas in place, many banks are embedding ESG principles into their credit frameworks, including the issuance of green bonds and sustainability-linked loans. 

At the same time, operational efficiency is improving. Front-office productivity is rising as banks invest in AI-driven analytics, advanced risk modeling, and automation. This not only increases competitiveness but also enables faster, more accurate credit decisions in a dynamic market. 

The combined effect is a more resilient, innovative, and inclusive lending landscape — one that supports diversified economic growth while safeguarding financial stability. 

With credit demand projected to grow by 12 to 14 percent annually through the end of the decade, Saudi banks are expected to maintain strong momentum. 

Still, McKinsey emphasizes that sustained growth will require banks to boost productivity and embrace operational innovation.  

Some banks have already shown improvement, but the corporate and investment banking sector still has room to optimize client service and internal efficiency. 

Currently, front-office productivity varies widely among GCC banks. Coverage teams in lagging institutions spend just 20 percent of their time on client-facing activities, compared to 30 percent among industry leaders. McKinsey projects that future top performers will raise that figure to 40 percent by 2030 — a shift that will require significant investment in AI and internal digitization. 

GCC banks are also closing the gap with global peers in analytics and automation. As these capabilities scale, AI-powered operations are expected to drive faster risk modeling, more responsive lending, and greater agility.  

As the region’s markets mature and international competition intensifies, CIB institutions must evolve to offer more sophisticated solutions — such as capital-light lending, securitization, and structured finance. 

Banks that adapt and build long-term investor relationships will be best positioned to shape the market and capture the most promising opportunities.  


Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 
Updated 05 May 2025
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Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

Saudi Arabia’s non-oil sector growth continues in April as PMI hits 55.6 

RIYADH: Saudi Arabia’s non-oil private sector continued to expand in April, with the Riyad Bank Purchasing Managers’ Index reaching 55.6, indicating sustained growth in business activity, a new survey showed.  

According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the April reading marked a slight drop from 58.1 in March but remained comfortably above the neutral 50.0 mark that separates expansion from contraction. 

Despite the marginal decline, Saudi Arabia’s PMI for April was still higher than the UAE’s reading of 54.0 and Kuwait’s 54.2. 

Naif Al-Ghaith, chief economist at S&P Global Market Intelligence, said: “As of April 2025, Saudi Arabia’s non-oil economy continues to assert itself as a pivotal component of the nation’s economic landscape.”  

He added: “The diversification efforts have continued to bear fruit, underscoring the Kingdom’s strategic shift away from oil dependency toward a more balanced and sustainable economic framework.”  

The PMI survey signalled a strong increase in employment levels across the non-oil private sector in April. 

The rate of hiring growth accelerated to its joint-fastest pace in ten and a half years, matching the level recorded in October 2023, as companies expanded their staffing capacity in response to rising sales and increased activity. 

As a result, staff cost inflation surged to a record high in April, reversing the slowdown in cost pressures seen in March. 

“Employment in the non-oil private sector has been particularly vibrant. This surge in employment is a response to rising sales and increased business activity, prompting firms to expand staffing capacities,” said Al-Ghaith.  

The report added that business activity at Saudi Arabia’s non-oil companies increased sharply at the start of the second quarter, with firms commonly reporting an expansion in output due to higher sales, new project approvals, and strong tourist numbers. 

“While output growth remains robust, it is somewhat tempered by global economic uncertainties and competitive pressures affecting client spending. Nonetheless, employment figures continue to climb, indicating a sustained growth trend since last May,” added Al-Ghaith.  

He further noted that Saudi Arabia had successfully managed inflation compared to other nations, highlighting the Kingdom’s effective control of domestic prices amid global uncertainties. 

The latest PMI data also signalled a steep increase in purchasing activity, with the growth rate reaching a three-month high. 

S&P Global noted that expectations among non-oil firms for output in one year’s time increased slightly from March, although overall business optimism remained below the long-run survey average. 

Looking ahead, Al-Ghaith said the Kingdom’s fiscal prospects remain positive for 2025. 

“Forecasts suggest a 3 percent expansion in overall gross domestic product and a 4.5 percent increase in non-oil sectors, continuing the upward trajectory in non-oil activities,” said Al-Ghaith.  

He added: “This growth is crucial for sustaining the economic transformation outlined in Vision 2030, which aims to foster diverse, innovative industries.” 


Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms
Updated 05 May 2025
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Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

Oil Updates — crude tumbles as OPEC+ accelerates output hikes, surplus looms

SINGAPORE: Oil prices fell more than $1 a barrel on Monday as OPEC+ is set to further speed up oil output hikes, spurring concerns about more supply coming into a market clouded by an uncertain demand outlook, according to Reuters.

Brent crude futures dropped $1.34, or 2.19 percent, to $59.95 a barrel by 10:17 a.m. Saudi time while US West Texas Intermediate crude was at $56.87 a barrel, down $1.42, or 2.44 percent.

Both contracts touched their lowest since April 9 at Monday’s open after OPEC+ agreed to accelerate oil production hikes for a second consecutive month, raising output in June by 411,000 barrels per day.

The June increase from the eight producers in the OPEC+ group will take the total combined hikes for April, May and June to 960,000 bpd, representing a 44 percent unwinding of the 2.2 million bpd of various cuts agreed on since 2022, according to Reuters calculations.

“The May 3 OPEC+ decision to raise production quotas another 411,000 bpd for June adds to the market expectation that the global supply/demand balance is moving to a surplus,” Tim Evans, founder of Evans on Energy said in a note.

The premium between the front-month Brent contract and that for delivery in six months was 4 cents a barrel, narrowing from 47 cents in the previous session.

However, the spread flipped to a discount, known as a contango structure, of 11 cents a barrel earlier on Monday, for the first time since December 2023, reflecting expectations that the later-dated market is amply supplied or demand may drop.

Barclays and ING have also lowered their Brent crude forecasts following the OPEC+ decision.

Barclays reduced its Brent forecast by $4 to $66 a barrel for 2025 and by $2 to $60 for 2026, while ING expects Brent to average $65 this year, down from $70 previously.

“We now expect OPEC+ to phase out the additional voluntary adjustments by October 2025 but also expect slightly slower US oil output growth,” Barclays analyst Amarpreet Singh said in a note.

The net impact of the higher OPEC+ output and lower US output has increased Barclays’ estimate of supply in 2025 by 290,000 bpd for 2025 and 110,000 bpd for 2026, he said.

ING analysts led by Warren Patterson said the global oil balance is expected to move deeper into surplus throughout 2025.

“The oil market has been dealing with significant demand uncertainty amid tariff risks. This change in OPEC+ policy adds to uncertainty on the supply side,” they added.


Trump says he wants a fair trade deal with China 

Trump says he wants a fair trade deal with China 
Updated 05 May 2025
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Trump says he wants a fair trade deal with China 

Trump says he wants a fair trade deal with China 

ABOARD AIR FORCE ONE: US President Donald Trump on Sunday said the US was meeting with many countries, including China, on trade deals, and his main priority with China was to secure a fair trade deal. 

Trump told reporters aboard Air Force One that he had no plans to speak with Chinese President Xi Jinping this week, but US officials were speaking with Chinese officials about a variety of different things. 

Asked if any trade agreements would be announced this week, Trump said that could “very well be” but gave no details. 

Trump’s top officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10 percent tariff on most countries, along with higher tariff rates for many trading partners that were then suspended for 90 days. 

He has also imposed 25 percent tariffs on autos, steel and aluminum, 25 percent tariffs on Canada and Mexico, and 145 percent tariffs on China. 

He suggested that he did not expect to reach an agreement with some countries, but could instead be “setting a certain tariff” for those trading partners in the next two to three weeks. It was not immediately clear if he was referring to the reciprocal tariffs announced on April 2, which are due to kick in on July 8 after a 90-day pause. 

Trump repeated his claim that China had been “ripping us for many years” on global trade, adding that former President Richard Nixon’s move to reach out and establish relations with China was “the worst thing” he ever did. 

Trump sounded more upbeat about China and the prospects for reaching an agreement in an interview with NBC News that was taped on Friday and broadcast on Sunday. 

In the interview, he acknowledged that he had been “very tough with China,” essentially cutting off trade between the world’s top two economies, but said Beijing now wanted to reach an agreement. 

“We’ve gone cold turkey,” he said. “That means we’re not losing a trillion dollars ... because we’re not doing business with them right now. And they want to make a deal. They want to make a deal very badly. We’ll see how that all turns out, but it’s got to be a fair deal.”