China calls on US to ‘completely cancel’ reciprocal tariffs

A notice late Friday by the US Customs and Border Protection office said smartphones, laptops, memory chips and other products would be excluded from the global levies President Donald Trump rolled out this month.
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Updated 13 April 2025
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China calls on US to ‘completely cancel’ reciprocal tariffs

BEIJING: China on Sunday called on the US to “completely cancel” its reciprocal tariffs after Washington announced exemptions for consumer electronics and key chipmaking equipment.

“We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” a Commerce Ministry spokesperson said in a statement.

A notice late Friday by the US Customs and Border Protection office said smartphones, laptops, memory chips and other products would be excluded from the global levies President Donald Trump rolled out this month.

Beijing’s Commerce Ministry said the exemptions were a “small step” by Washington and China was “evaluating the impact”of the decision.

It came as retaliatory Chinese import tariffs of 125 percent on US goods took effect Saturday, with Beijing standing defiant against its biggest trade partner.

The exemptions will benefit US tech companies like Nvidia and Dell, as well as Apple, which makes iPhones and other premium products in China.

Most Chinese goods still face a blanket 145 percent levy after the country was excluded from a 90-day tariff reprieve.


Jewelry spending up 13% in Saudi Arabia as weekly POS stays above $3.2bn: SAMA

Updated 13 sec ago
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Jewelry spending up 13% in Saudi Arabia as weekly POS stays above $3.2bn: SAMA

RIYADH: Jewelry spending in Saudi Arabia rose by 13.2 percent between May 11 and 17 compared to the previous week, adding SR330.4 million ($88 million) to point-of-sale transactions during this period. 

The latest data from Saudi Arabia’s central bank, SAMA, revealed that it was one of only two sectors to record growth during the period, with education also posting an increase of 1.4 percent to SR164.6 million. 

The Kingdom’s overall POS transactions saw a 5.5 percent dip to SR12.3 billion in the seven-day period, driven by decreased spending across most of the sectors. 

Hotels spending saw the biggest drop, dipping by 18.1 percent to SR218.2 million. Clothing and footwear expenditure followed, falling by 10.4 percent to SR688.2 million, while recreation and culture saw a 9.3 percent decrease, totaling SR229.4 million. 

The smallest expenditure drop was in spending on construction and building material and gas stations, down by 1.7 percent each to SR330.1 million and SR929.7 million, respectively. 

The health sector declined by 4.8 percent to SR790.1 million, while public utilities dropped 4.3 percent to SR47 million. 

Electronics followed the trend, dropping 4.5 percent to SR1653.8 million, and furniture edging down by 3.7 percent to SR261.8 million. 

The telecommunication sector dropped by 5.5 percent in transaction value to SR98.3 million. Food and beverage spending decreased by 4.7 percent to SR1.8 billion, accounting for the largest share of the week’s POS. 

Restaurants and cafes accounted for the second-biggest share at SR1.7 billion, followed by miscellaneous goods and services at SR1.5 billion. 

The top three categories accounted for 41.1 percent of the week’s total spending, amounting to SR5 billion. 

Geographically, Riyadh dominated POS transactions, with expenditure in the capital reaching SR4.5 billion — a 3.4 percent decrease from the previous week. 

Jeddah followed with a 7 percent dip to SR1.7 billion, while Dammam ranked third, down 5.7 percent to SR640.5 million. 

Makkah saw the biggest decrease, inching down 20.6 percent to SR393.3 million, followed by Abha with a 9.7 percent downtick to SR153.5 million. 

In transaction volume, Hail recorded 3.7 million deals, down 2 percent, while Tabuk reached 4.7 million transactions, up by 0.2 percent. 


Oil Updates — crude gains as reports Israel may attack Iran raise supply worries

Updated 43 min 9 sec ago
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Oil Updates — crude gains as reports Israel may attack Iran raise supply worries

  • US intelligence suggests Israel plans to strike Iran, CNN says
  • US-Iran nuclear talks show little progress, impacting oil market

SINGAPORE: Oil prices gained more than 1 percent on Wednesday after reports of Israel preparing a strike on Iranian nuclear facilities raised fears that a conflict could upset supply availability in the key Middle East producing region.

Brent futures for July rose 68 cents, or 1.04 percent, to $66.06 a barrel, by 9:30 a.m. Saudi time. US West Texas Intermediate crude futures for July climbed 70 cents, or 1.1 percent, to $62.73.

New intelligence obtained by the US suggests that Israel is preparing to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple US officials familiar with the matter.

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 in large parts of the broader region,” said ING commodities strategists on Wednesday.

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 Iran could retaliate by blocking oil tanker flows through the Strait of Hormuz choke point in the Gulf, 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, with US President Donald Trump reviving a campaign of stronger sanctions on Iranian crude exports to compel them to give up their nuclear aspirations.

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.

“There are indirect nuclear talks between the US and Iran, which, if successful, could give the market further upside. However, these talks appear to be running out of steam,” the ING analysts said.

Still, 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.

Crude stocks in the US, the world’s biggest oil consumer, rose by 2.5 million barrels in the week ended May 16, the sources said on condition of anonymity.

Investors are looking ahead to government US oil stock data from the Energy Information Administration later on Wednesday.

Also, Kazakhstan’s oil production has risen by 2 percent in May, an industry source said on Tuesday, an increase that defies pressure from OPEC+ on the country to reduce its output.


Saudi Arabia surpasses $1bn sukuk milestone with May issuance

Updated 20 May 2025
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Saudi Arabia surpasses $1bn sukuk milestone with May issuance

RIYADH: Saudi Arabia’s National Debt Management Center has surpassed the $1 billion threshold in its latest sukuk issuance, raising SR4.08 billion ($1.08 billion) in May through riyal-denominated offerings.

This marks a 9.09 percent increase from April and reflects a significant 54.5 percent rise compared to March, when SR2.64 billion was raised.

The May issuance continues the Kingdom’s strong momentum in the domestic debt market, following SR3.72 billion raised in January and SR3.07 billion in February. The consistent monthly issuances highlight growing investor interest in Shariah-compliant fixed-income instruments, as global financial markets adjust to a higher interest rate environment.

Sukuk, the Islamic equivalent of bonds, are structured to comply with Shariah principles, which prohibit interest-based transactions.

Instead, investors receive returns derived from partial ownership in tangible assets or investment activities, aligning with Islamic finance ethics.

According to the NDMC, the May offering was divided into four tranches. The first tranche amounted to SR489 million and is set to mature in 2029. The second was valued at SR1.004 billion and will mature in 2032. The third tranche, totaling SR1.28 billion, is due in 2036, while the largest portion of the issuance, worth SR1.3 billion, will mature in 2039.

Saudi Arabia’s debt market has seen rapid growth in recent years, as domestic and international investors seek diversification and stable returns. A report released in April by the Kuwait Financial Center, also known as Markaz, noted that Saudi Arabia led the Gulf Cooperation Council’s debt market in the first quarter of 2025. The Kingdom accounted for 60.2 percent of all primary debt issuances in the region, raising $31.01 billion across 41 offerings.

In a broader outlook, S&P Global highlighted Saudi Arabia’s expanding non-oil economy and robust sukuk activity as key drivers of growth for the global Islamic finance sector.

The credit rating agency forecast global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign-currency issuances potentially totaling up to $80 billion, assuming stable market conditions.

Furthermore, a December 2024 report by Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, approximately $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s dominant position in the region’s debt landscape.


Closing Bell: Saudi main index closes in green at 11,438

Updated 20 May 2025
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Closing Bell: Saudi main index closes in green at 11,438

  • MSCI Tadawul Index increased by 0.40 points, to close at 1,460.79
  • Parallel market Nomu rose 28.91 points, to end at 27,528.56

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 32.90 points, or 0.29 percent, to close at 11,438.18.

The total trading turnover of the benchmark index was SR4.85 billion ($1.29 billion), as 132 of the listed stocks advanced, while only 106 retreated.

The MSCI Tadawul Index increased by 0.40 points, or 5.86 percent, to close at 1,460.79.

The Kingdom’s parallel market Nomu rose, gaining 28.91 points, or 0.11 percent, to end at 27,528.56. This comes as 31 of the listed stocks advanced, while 42 retreated.

The best-performing stock was MBC Group Co., with its share price surging by 6.01 percent to SR45.

Other top performers included National Gypsum Co., which saw its share price rise by 4.49 percent to SR21.42, and Zamil Industrial Investment Co., which saw a 4.19 percent increase to SR46.05.

The worst performer of the day was Etihad Atheeb Telecommunication Co., whose share price fell by 4.55 percent to SR100.80.

Saudia Dairy and Foodstuff Co. and CHUBB Arabia Cooperative Insurance Co. also saw declines, with their shares dropping by 2.66 percent and 2.53 percent to SR285 and SR36.60, respectively.

On the announcements front, Alinma Bank has confirmed the commencement of its offering of US dollar-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Program. 

The offering, which began on May 20, is directed at eligible investors in the Kingdom and internationally, according to a Tadawul statement. The certificates, with a minimum subscription of $200,000, are perpetual and callable after 5.5 years, with terms and pricing subject to market conditions. 

The statement added that the certificates will be listed on the London Stock Exchange’s International Securities Market.

In today’s trading session, ALINMA’s share price traded 0.55 percent higher on the main market to reach SR27.55.

Moreover, Asas Makeen Real Estate Development and Investment Co. continued receiving subscription requests for 1 million ordinary shares, equivalent to 10 percent of its capital, at a price of SR80 per share. The offering, approved by the Capital Market Authority, runs from May 19 to 25 on the Nomu parallel market. The company aims to expand its investor base and attract capital to support sustainable growth, with its managed projects exceeding SR3.75 billion in value. 

Meanwhile, Al-Khozama Investment Co. is accepting subscription requests for 422,400 ordinary shares, which is equivalent to 10.71 percent of its shares on Nomu until May 22, priced between SR99 and SR107 per share. The offering targets qualified investors and supports the company’s long-term expansion in Saudi Arabia’s hospitality and food and beverage sector. 


Saudi Arabia’s EV push signals long-term investment strategy: Alkhorayef

Updated 20 May 2025
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Saudi Arabia’s EV push signals long-term investment strategy: Alkhorayef

  • Minister of Industry and Mineral Resources was speaking during a panel discussion at the Qatar Economic Forum
  • He highlighted mining as a strategic sector, saying the Kingdom has significantly reformed its regulatory framework

RIYADH: Saudi Arabia’s investment in electric vehicles reflects how the Kingdom is shaping its future through strategic, long-term bets, according to a senior minister.  

Speaking during a panel discussion at the Qatar Economic Forum in Doha, Minister of Industry and Mineral Resources Bandar Alkhorayef stated that Saudi Arabia’s push toward EV manufacturing demonstrates the Kingdom’s commitment to shaping a modern and sustainable economy. 

His comments come as Saudi Arabia ramps up efforts to position itself as a regional hub for automotive manufacturing, particularly in electric vehicles. Backed by the Public Investment Fund, the Kingdom has invested in ventures such as US-based Lucid Motors, which is building a production facility in King Abdullah Economic City.  

As part of its broader diversification drive, Saudi Arabia aims to produce over 300,000 vehicles annually by 2030. 

“Betting on EVs is also showing you how we think as a country. We are investing in the future,” he said.  

He added: “Automotive is a sector that we have been waiting to attract for many years, that our vision is a great enabler that brought the sector to Saudi. We are the largest country exporting cars with no local manufacturing, and I think it's the right move.”  

Alkhorayef emphasized that the Kingdom’s economic transformation under Vision 2030 centers on diversification, with mining and industrial development playing a key role in that shift.  

“In our vision — Saudi Vision 2030 — diversification of our economy is key, and definitely mining and industry are both areas where we can see great opportunities,” he said.  

Discussing the Kingdom’s execution capabilities, the minister said Saudi Arabia has mastered “the art of execution,” stressing that successful implementation of plans, not just strategy, is what builds investor confidence.  

He highlighted mining as a strategic sector, noting that the country has significantly reformed its regulatory framework.  

“We have been able to introduce, I would claim, one of the best — if not the best — mining investment laws globally… We have been able to reduce the licensing time from the global average of three to five years to six months,” Alkhorayef said.   

Touching on global mineral demand, he said: “We are actually in a race with time to ensure that we have the right quantities of minerals and metals to satisfy the global need in energy transition, in automation, in technology, and in defense.” 

The minister pointed to the Future Minerals Forum hosted by the Kingdom as a critical platform to address such challenges, uniting governments, private sector players, and financial institutions to improve exploration, refining, and supply chain resilience.  

On supply chains and national resilience, Alkhorayef explained that Saudi Arabia’s localization strategy goes beyond national security.  

“It is really capturing a new value. Today in manufacturing, scale is becoming less important because of new technologies that are being introduced,” he said. 

Alkhorayef continued: “Today in manufacturing, in mining, and in many of the sectors we intend to build in Saudi, are all built on new technologies. How can we ensure that while we are growing our economy, we are creating the right jobs for our people?” 

Addressing the role of governments in enabling private sector growth, Alkhorayef stressed the need for proactive governance.  

“Without government really helping the private sector to capture different value, it would be very hard to see the growth in the private sector,” he said, stressing the importance of infrastructure, regulation, and digital security in encouraging investment. 

He concluded by highlighting the Kingdom’s export achievements: “Last year is a great demonstration of the growth we have done. 2024 was the record high export of Saudi Arabia. Non-oil export — we grew from 16 percent contribution in non-oil export to 25 percent contribution to our GDP in non-oil export. The non-oil, non-petrochemical growth of exports was 9 percent last year,” he said.