NEW DELHI: Apple announced Friday that it will launch its first online store in India next week, as it seeks to increase sales in one of the world’s fastest-growing smartphone markets.
The company at present uses third-party online and offline retailers to sell its products in the country.
Apple CEO Tim Cook said in a tweet that the company “can’t wait to connect with our customers and expand support in India.”
The Sept. 23 launch comes ahead of India’s major Hindu festival season beginning next month.
With a nearly 1.4 billion people, including millions of new Internet users every month, India has become a key focus of tech giants over the last few years.
In August, three contract manufacturers for Apple iPhones and South Korea’s Samsung applied for large-scale electronics manufacturing rights in India under a $6.5 billion incentive scheme announced by the government.
Apple assembles some smartphones at Foxconn and Wistron’s plants in two southern Indian states.
Apple to launch first online store in India next week
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Apple to launch first online store in India next week
- The company at present uses third-party online and offline retailers to sell its products in the country
- India has become a key focus of tech giants over the last few years
US Fed sees rising risks to economy as it leaves rates unchanged
WASHINGTON: The Federal Reserve held interest rates steady on Wednesday but said the risks of higher inflation and unemployment had risen, further clouding the US economic outlook as its policymakers grapple with the impact of President Donald Trump’s tariffs.
At this point, Fed Chair Jerome Powell said, it isn’t clear if the economy will continue its steady pace of growth, or wilt under mounting uncertainty and a possible coming spike in inflation.
With so much unsettled about what Trump will ultimately decide and what of that survives possible court and political battles, “the scope, the scale, the persistence of those effects are very, very uncertain,” Powell said in a press conference at the end of a two-day policy meeting.
“So it’s not at all clear what the appropriate response for monetary policy is at this time ... It’s really not at all clear what it is we should do,” he said, adding: “I don’t think we can say which way this will shake out.”
It was Powell’s subtle way of saying the US central bank, a key actor in shaping the economy, was effectively sidelined until Trump’s sweeping policy agenda takes full effect.
The Fed’s policy statement, which held the benchmark overnight rate steady in the 4.25 percent-4.50 percent range, noted that since the central bank’s last meeting in March “uncertainty about the economic outlook has increased further,” and that risks were increasing that both inflation and unemployment could increase.
Thomas Simons, chief US economist at Jefferies, said the language downplayed just how much disruption had occurred since the Fed’s March 18-19 meeting, and how unpredictable the outlook had become.
“All of the ‘Liberation Day’ tariff news, the April 9 announcement of a 90-day delay, the back and forth on trade deals and tariff exemptions in the headlines, and the resultant negativity expressed in business and consumer surveys make it impossible to judge what the economic outlook is, let alone whether the skew of risks around it has changed,” Simons wrote, calling Powell “predictably noncommittal” given the situation.
Risks to dual mandate
The Fed’s statement, and much of Powell’s comments to reporters as well, vouched for the economy’s continued resilience, with job gains continuing and the economy still growing at a “solid pace.”
The recently reported decline in gross domestic product in the first quarter, Powell said, was skewed by a record rush of imports as businesses and households tried to front-run expected import taxes, with measures of domestic demand still growing. But even that data demonstrated the dilemma facing the Fed. The rush of front-loading to buy goods and stock shelves won’t likely be repeated, and it
is unclear whether underneath it all demand and investment are starting to weaken — and how that will eventually express itself in “hard” data on inflation and jobs. The Fed’s own “Beige Book” of anecdotal reports about the economy recently gave a dour picture of suspended business deals, falling demand, and rising prices.
“Businesses and households are concerned ... and postponing economic decisions of various kinds,” Powell said. “If that continues and nothing happens to alleviate those concerns, you would expect that to show up in economic data.” The Fed can’t respond, however, until it is clear which way the economy pivots, and how it assesses the risks to its two goals of holding inflation to 2 percent and sustaining maximum employment.
“The current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,” Powell said, affirming a wait-and-see approach that has become the central bank’s calling card in the first months of the Trump administration.
US stock prices extended gains after the release of the Fed’s unanimous policy decision and ended higher on the day. Treasury yields fell, while the dollar gained against a basket of currencies.
Holding pattern
The direction of Fed policy will depend on which of the job and inflation risks develop, or, in the more difficult outcome, whether inflation and unemployment increase together and force the central bank to choose which risk is more important to try to offset with monetary policy.
A weaker job market would typically strengthen the case for rate cuts; higher inflation would call for monetary policy to remain tight.
“For the time being the Fed remains in a holding pattern as it waits for uncertainty to clear,” said Ashish Shah, chief investment officer of public investing at Goldman Sachs Asset Management, adding that “recent better-than-feared jobs data has supported the Fed’s on-hold stance, and the onus is on the labor market to weaken sufficiently to bring a resumption of its easing cycle.”
The Fed’s policy rate has been unchanged since December as officials struggle to estimate the impact of Trump’s tariffs, which have raised the prospect of higher inflation and slower economic growth this year.
When policymakers last updated their economic and policy projections in March, they anticipated reducing the benchmark rate by half a percentage point by the end of this year.
Oil Updates — prices edge up on US-China trade talk hopes
TOKYO: Oil rose on Thursday after falling more than $1 in the previous session, supported by hopes of a breakthrough in looming trade talks between the US and China, the world’s two largest oil consumers.
Brent crude futures were up 10 cents, or 0.2 percent, at $61.22 a barrel, while US West Texas Intermediate crude rose 13 cents, or 0.2 percent to $58.20 a barrel at 9:32 a.m. Saudi time.
“Optimism around the US and China trade talks this weekend is a primary factor supporting the rebound in the oil market,” said independent market analyst Tina Teng.
“Signs of a de-escalating trade war improved market sentiment, triggering a rebound in oil prices in an oversold market.”
US Treasury Secretary Scott Bessent will meet with China’s top economic official on May 10 in Switzerland for negotiations over a trade war that is disrupting the global economy. The countries are the world’s two largest economies and the disruptions from their trade dispute are likely to lower crude consumption growth.
US President Donald Trump on Wednesday suggested China initiated the trade talks, adding he was not willing to cut US tariffs on Chinese goods to get Beijing to negotiations. Bessent said the upcoming talks are a start, not ‘advanced’ discussions.
Weak demand concerns capped oil price gains after the Federal Reserve held interest rates steady but warned about rising economic uncertainties.
“The Fed signalled that rates will likely remain on hold until the effects of tariffs become clearer. This boosted the US dollar, which added to headwinds facing the broader commodity markets,” said ING analysts in a report on Thursday.
A stronger US currency makes dollar-denominated oil more expensive for holders of other currencies and dampening demand.
Adding to the concerns of weaker demand, US gasoline inventories rose last week, stoking concerns among analysts that consumption is not building as the US enters the summer demand period later this month.
At the same time, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will increase its oil output, adding to pressure on prices.
All eyes on investment forum at heart of Trump visit to Riyadh
- US business moguls, Saudi ministers and company chiefs to attend invitation-only event in Riyadh
RIYADH: As Saudi Arabia prepares for the visit of US President Donald Trump next week, much media attention has focused on the Saudi-US Investment Forum, an invitation-only event to be held at Riyadh’s Ritz-Carlton hotel on May 13.
US media outlets have reported that high-profile business figures like Elon Musk, Mark Zuckerberg and Larry Fink are poised to attend, while Arab News sources reveal that about 15 Saudi ministers and top-level officials will be present, as well as the CEOs of some of the Kingdom’s biggest companies and giga-projects, in addition to hundreds of business ‘big-wigs’ from both countries.
Other guests will reportedly include OpenAI CEO Sam Altman, Citigroup CEO Jane Fraser, Boeing CEO Kelly Ortberg and David Sacks, the White House AI and cryptocurrency czar.
Invitations to the forum state that it will “provide an exclusive opportunity to deepen engagement, unlock new investment avenues and reaffirm our long-standing economic partnership.”
While military cooperation and security deals are important to both the US and Saudi Arabia, the expectation is that this conference will see new industries and areas of cooperation emerge in what will be a two-way investment forum.
Agreements will be inked that cover sectors such as artificial intelligence, tech and healthcare cooperation and will likely be worth at least $600 billion — a goal set by Crown Prince Mohammed bin Salman in January, when he became the first foreign leader to have a call with Trump after the latter’s return to the White House.
Speaking at the Milken Institute in Los Angeles this week, Saudi Investment Minister Khalid Al-Falih stated that the Kingdom views the US as unmatched in terms of both capital markets and innovation. “There is no close competitor to the US in many aspects, certainly capital markets, their depth and their breadth, and also the innovation spirit,” Al-Falih said.
Arab News will be both participating on panels and reporting all the breaking news from next week’s event.
Trump is expected to arrive in Riyadh on May 13, attend a summit with Gulf leaders on May 14 and then travel to Doha the same day before concluding the first official foreign trip of his second term in Abu Dhabi on May 15.
Closing Bell: Saudi benchmark index edges down 0.31% to close at 11,398
RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Wednesday, shedding 35.34 points, or 0.31 percent, to close at 11,398.74.
The total trading turnover of the benchmark index stood at SR4.813 billion ($1.28 billion), with 74 stocks advancing and 168 declining.
The Kingdom’s parallel market, Nomu, also closed lower, dropping 175.08 points, or 0.63 percent, to end at 27,777.71, as 24 stocks advanced and 50 retreated.
Meanwhile, the MSCI Tadawul Index dipped by 1.94 points, or 0.13 percent, to finish at 1,455.78.
The best-performing stock of the day was Nahdi Medical Co., with its share price jumping 7.26 percent to reach SR121.20.
The company announced its interim financial results for the first three months of the year, posting a net profit of SR255.2 million — a 61.6 percent increase compared to the previous quarter.
The surge was attributed to higher gross profit driven by increased sales, lower operating expenses due to favorable phasing, and a one-off zakat provision release.
On the other end, Leejam Sports Co. recorded the steepest drop, with its share price plunging 10 percent to close at SR124.20.
On the announcements front, Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA, posted a net profit of SR93 million for the first quarter of the year, marking a 38.8 percent increase year on year.
The company attributed the rise in net profit to a SR40 million increase in gross profit driven by revenue growth, as well as a 5.2 percent rise in earnings before interest, taxes, depreciation, and amortization, also by SR40 million.
Zain’s share price fell 8.29 percent during the session to close at SR11.88.
Saudia Dairy and Foodstuff Co. reported a quarter-on-quarter net profit increase of 36.9 percent, reaching SR126.1 million. The company credited the growth to an improved gross margin of 35.9 percent. Its share price slipped 0.67 percent to close at SR301.20.
Savola Group posted a net profit of SR189.16 million for the first three months of the year, reflecting a 45.7 percent decline compared to the same quarter last year.
The company said the drop was primarily due to the absence of share of profit from its divested stake in Almarai, which had contributed SR236.7 million in the previous year.
However, the decline was partially offset by reduced financial charges following debt settlements completed in 2024 totaling SR89.6 million.
Savola’s share price fell 7.11 percent during the session to close at SR30.00.
Arabian Pipes Co. emerged as one of the day’s bright spots, posting a 222.3 percent quarter-on-quarter jump in net profit, reaching SR40.1 million.
This performance was largely driven by a 63.46 percent increase in gross profit, which rose to SR63.66 million in the first quarter of 2025 from SR38.94 million in the previous quarter.
The company cited higher sales volumes, an improved product mix, and revised supply schedules as the key growth drivers. Its share price rose 0.55 percent to close at SR9.17.
Arabian Pipes Co. was bullish reporting a 222.3 percent quarter-on-quarter surge in net profit , reaching SR40.1 million.
The increase was primarily driven by higher gross profit, which rose to SR63.66 million in the first quarter of 2025 from SR38.94 million in the previous quarter, marking a 63.46 percent jump.
The growth was attributed to a rise in sales volume, an improved sales mix, and adjustments in supply schedules.
Arabian Pipes Co. share price traded 0.55 percent higher on the main market to reach SR9.17.
Tadawul’s market cap up 463% since 2014: S&P Global
RIYADH: The market capitalization of Saudi Arabia’s Tadawul All Share Index reached $2.7 trillion at the end of 2024, representing a 10-year rise of 463 percent, according to an analysis.
In its latest report, credit rating agency S&P Global said the stock market is expected to play a crucial role in materializing the Kingdom’s economic transformation goals outlined in Saudi Arabia’s Vision 2030 initiative.
The US-based agency added that Tadawul, compared to other major global equity markets, remains dominated by large government-related entity issuers and has relatively low, albeit gradually increasing, trading volumes and foreign participation.
The Kingdom’s stock market has been crucial in steering the nation’s economic transformation efforts, fueled by robust economic reforms and growing interest from regional and international investors.
In January, a report released by Kamco Invest said that Saudi Arabia led the Gulf Cooperation Council initial public offering market in 2024, earning a global ranking of seventh in total IPO proceeds.
In its analysis, S&P Global said Saudi Arabia has undertaken several reforms and market infrastructure investments over the past decade to grow its capital markets.
“These reforms are crucial to further advance its Vision 2030 goal of increasing its economic, social, and cultural diversification,” it said, adding: “The stock exchange Tadawul’s inclusion in major emerging market equity indices in 2019 was a key milestone and over the past decade, its market capitalization has increased 463 percent.”
IPO momentum
According to the report, one of the key milestones in Tadawul’s journey was the IPO of energy giant Saudi Aramco in 2019, which raised $29.4 billion, significantly elevating the exchange’s market capitalization and global standing.
Between 2014 and 2024, Tadawul’s main market hosted 91 IPOs for an aggregate offering of about $65 billion, excluding additional listings such as Aramco’s secondary offering of about $11.2 billion in July.
On May 6, a separate study by professional consulting firm EY also highlighted the growth of IPOs in Saudi Arabia’s main index and its parallel market, Nomu.
According to EY, the Kingdom witnessed 12 IPOs in the first quarter of this year, with five listings on Tadawul and seven on Nomu.
Overall, during the first three months of 2025, the main market generated $1.8 billion in total proceeds, while the parallel index raised $69 million.
Despite the IPOs of many private sector companies, public sector entities represent the bulk of new listings in Tadawul, S&P Global said in its latest report.
The analysis added that government-backed firms have generated about $44 billion of the estimated $65 billion of aggregate IPO value over the past decade.
“In addition to Aramco, Ades Holding and ACWA undertook IPOs of $1.2 billion each; Tadawul raised $1 billion in its own offering, in addition to other public-sector entities,” said S&P Global.
Regulatory reforms
S&P Global further said that the efforts of Saudi authorities to further develop Tadawul will help attract domestic and international capital, which will increase market liquidity for the long term.
The large funding requirements for Vision 2030 projects are also expected to stimulate the stock exchange in Saudi Arabia.
The report added that the holdings of foreign investors in Tadawul continue to rise but remain low — at about 4.2 percent of the market, or about 11 percent of the free float, as of year-end 2024.
According to the analysis, Saudi Arabia’s ongoing initiatives to improve market liquidity and increase foreign shareholdings on Tadawul, such as a new investment law and pension fund reforms, should help grow portfolio inflows.
In August, the Kingdom announced an updated investment law to enhance foreign direct investment flows. The Ministry of Investment stated that this would boost transparency and simplify the investment process.
The update promised enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers.
“Although a key objective of the new regulation is to improve foreign direct investment flows, we expect it will also support inflows to capital markets, including to Saudi equities,” said the report.
Regarding the growing pension funds in Saudi Arabia, S&P Global said that reforms in this sector could advance the development of equity markets in the Kingdom.
“The authorities have implemented several important changes to the country’s pension system in recent years. Pension systems are important funding and liquidity providers as long-term investors in capital markets worldwide. Over the past few decades, we have seen many examples of pension funds playing a key role in the development of local capital markets,” said the analysis.
In 2021, Saudi Arabia merged its private sector pension fund with the General Organization for Social Insurance, the public sector pension system.
According to 2023 disclosures, GOSI had about $129 billion, or about 12 percent of the gross domestic product, invested in Saudi equities.
In 2024, the Kingdom announced additional reforms, which include raising the retirement age to 65 from 58.
“Saudi Arabia also increased the required contribution period to qualify for early retirement to 30 years from 25 years, which we believe will increase the average contribution period and hence investable period for GOSI. Given GOSI’s size and investments in the local equity market, this will support long-term local demand for Tadawul and its liquidity,” added S&P Global.
The report added that equity markets will allow the economy to diversify sources of funding for the Vision 2030 program, as the financing needs for giga- and mega projects are estimated to cost more than $1 trillion.
According to S&P Global, the government and the Public Investment Fund will raise new debt of about $60 billion, or 4.9 percent of GDP, annually from 2025 to 2028.
The study added that banks in Saudi Arabia will witness a robust credit growth of 10 percent during the same period, driven primarily by corporate lending related to Vision 2030.
“However, these will likely be insufficient to meet all the funding requirements. Growth in equity markets will enable companies and financial institutions to allocate more capital toward investments while managing leverage,” said the report.
