Oil Updates – prices fall for fourth week as US job growth disappoints
Updated 20 August 2024
Reuters
LONDON: Oil prices fell by more than $1 on Friday, remaining on course for a fourth successive weekly drop after data showed the US economy added fewer jobs than expected in July, further clouding the outlook for economic growth and crude demand.
Brent crude futures fell $1.41, or 1.8 percent, to $78.11 a barrel by 3:10 p.m Saudi time. US West Texas Intermediate crude futures were down $1.59, or 2.1 percent, at $74.72.
Both benchmarks have fallen around 10 percent over the past four weeks in the longest run of weekly losses this year.
US job growth slowed more than expected in July as unemployment increased to 4.3 percent, pointing to possible weakness in the labor market and greater vulnerability to recession.
“Weak economic growth in major economies could stifle oil demand despite increased tensions in the Middle East that could impact supplies,” said Panmure Liberum analyst Ashley Kelty.
Economic data from top oil importer China and a survey showing weaker manufacturing activity across Asia, Europe and the United States raised the risk of a sluggish global economic recovery that would weigh on oil consumption.
Falling manufacturing activity in China also inhibited prices, adding to concerns about demand growth after June data showed imports and refinery activity lower than a year earlier.
Asia’s crude oil imports in July fell to their lowest in two years, sapped by weak demand in China and India, data from LSEG Oil Research showed.
Meanwhile, an OPEC+ meeting on Thursday left the group’s oil output policy unchanged, including a plan to start unwinding one layer of production cuts from October.
Oil investors are also monitoring developments in the Middle East, where the killing of senior leaders of Iran-aligned militant groups Hamas and Hezbollah stoked fears that the region could be on the brink of all-out war, threatening to disrupt supplies.
Lebanon’s Iran-backed group Hezbollah said its conflict with Israel had entered a new phase and pledged a response after its top military commander was killed in an Israeli strike.
Diriyah Co. awards $1.13bn contract for King Saud University relocation
Updated 4 sec ago
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Diriyah Co. has awarded a SR4.22 billion ($1.13 billion) construction contract to relocate King Saud University’s utilities and administration offices, advancing infrastructure development in one of the Kingdom’s flagship urban projects.
The project was given to a joint venture between China Railway Construction Corp.’s Saudi branch and China Railway Construction Group Central Plain Construction Co., according to a press release.
Part of the Public Investment Fund’s giga-project portfolio, the Diriyah development is a 14 sq. km mixed-use district poised to house nearly 100,000 residents and provide office space for tens of thousands of professionals across the technology, media, arts, and education sectors.
Once complete, it is expected to generate 178,000 jobs, attract nearly 50 million annual visitors, and contribute SR70 billion to Saudi Arabia’s gross domestic product.
Jerry Inzerillo, group CEO of Diriyah Co., said: “We are delighted to announce this major contract to support King Saud University, whose campus adjoins the Diriyah development area.”
He emphasized that the agreement represents a significant step in furthering efforts to enhance both educational and infrastructural excellence in the Kingdom.
“We are proud to support one of the Kingdom’s leading academic institutions in delivering enhanced infrastructure services that will benefit both its students and the broader university community,” Inzerillo said.
The contract includes the design and construction of several critical infrastructure components. These include a district cooling plant, water storage facilities, and a sewage treatment plant, as well as an LPG/SNG plant and a diesel pumping station.
The scope also covers a utility tunnel, irrigation tanks, office buildings, warehouses, and maintenance workshops.
Li Chongyang, chairman of China Railway Construction International Group, said the project reflects the firm’s commitment to delivering world-class infrastructure to the highest standards.
“We look forward to contributing to the success of this iconic project and supporting the continued growth of King Saud University,” he said.
This latest award brings the total value of contracts issued by Diriyah Co. in 2025 to over $2.9 billion, as the area undergoes rapid transformation into a global destination aligned with Vision 2030.
Qatar attracts $13.8m industrial investments in Q1
Updated 18 min 19 sec ago
MOHAMMED AL-KINANI
JEDDAH: Qatar recorded 50 million riyals ($13.8 million) in new industrial investments and a 32 percent rise in commercial registrations in the first quarter of 2025, underscoring momentum in its economic diversification and reform agenda.
At its quarterly meeting held on April 28 and chaired by Minister of Commerce and Industry Sheikh Faisal bin Thani Al-Thani, the ministry reviewed key performance indicators and introduced several policy updates aimed at bolstering the business environment.
Among the major reforms highlighted were streamlined company registration procedures for foreign investors and simplified environmental permitting processes.
“The meeting also discussed cooperating with the Ministry of Transport to include logistical activities under a single commercial registration; and announcing the automatic issuance of a tax card upon issuing a commercial registration,” the ministry said in a press release.
In January, Qatar unveiled two major policy frameworks: the Ministry of Commerce and Industry Strategy and the Qatar National Manufacturing Strategy 2024–2030. Under the theme “Achieving Sustainable Economic Growth,” the initiatives are aligned with Qatar National Vision 2030 and aim to enhance private sector participation, expand manufacturing capabilities, and attract foreign direct investment.
The strategies target a 3.4 percent compound annual growth rate in non-oil sectors by 2030 and aim to secure $100 billion in foreign investment, while promoting an innovation-driven economy.
As part of its efforts to support local industry, the ministry launched a new “National Product” webpage to promote fair competition and improve product quality. The verification period also began for factories seeking benefits under the In-Country Value Plus policy.
“The meeting further discussed the key performance indicators for various sectors and administrative units. Results showed that the contribution of the manufacturing sector to real gross domestic product reached 52.4 billion riyals in 2024,” the ministry said.
Qatar also made notable gains in global competitiveness, climbing from 18th in 2022 to 11th in 2024 in the International Institute for Management Development’s business efficiency rankings.
During the first quarter, the ministry conducted 39,558 inspection campaigns and reported significant progress under the Third National Development Strategy.
“The meeting also reviewed the progress of projects under the Third National Development Strategy – concluding that 17 percent of the ministry’s projects were completed and work is ongoing on 23 percent of projects,” the report said.
Efforts to reduce service fees and simplify business registration for overseas investors have contributed to an 87 percent increase in new commercial licenses compared to the same period in 2024. The time required to issue commercial registrations has also decreased significantly.
“Furthermore, the increase of permissible activities for home-based businesses from 10 to 63 activities led to a 54 percent surge in the number of home business licenses,” the ministry noted.
The Single Window platform introduced three new e-services in the first quarter, with 38 additional services scheduled for rollout later this year, supported by strong user satisfaction.
“Local patent applications, trademark registration applications, and copyright registration applications grew by more than 18 percent compared to the first quarter of 2024,” the statement added.
On the industrial front, eight new factories were launched in Q1, and non-hydrocarbon industrial exports reached approximately 29.8 billion riyals. The ministry also began reviewing six potential public-private partnership opportunities.
In consumer affairs, authorities ramped up inspection and awareness campaigns to deter trade violations and reviewed the nation’s strategic stockpile and food and fodder security.
The meeting was attended by Minister of State for Foreign Trade Affairs Ahmed bin Mohammed Al-Sayed, Undersecretary Mohamed bin Hassan Al-Maliki, assistant undersecretaries, and department directors.
It concluded with a review of project milestones and discussions on overcoming implementation challenges while improving operational performance.
Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank
Updated 22 min 40 sec ago
Miguel Hadchity
RIYADH: Saudi Arabia’s industrial and logistics market is experiencing growth, with warehouse occupancy rates nearing saturation and rental prices in Riyadh increasing by 16 percent year-on-year, according to Knight Frank.
The firm’s latest “Saudi Arabia Industrial and Logistics Market Review” highlighted a booming sector driven by e-commerce expansion, strategic government initiatives, and surging foreign investment.
The Kingdom’s logistics hubs — Riyadh, Jeddah, and the Dammam Metropolitan Area— are operating at near-full capacity.
Riyadh leads with a 98 percent occupancy rate, while Jeddah and Dammam follow closely at 97 percent each.
This momentum was also reflected in occupancy rates in Abu Dhabi with its industrial and logistics market maintaining near-full capacity, mirroring Dubai’s tight supply.
Key hubs like Khalifa Economic Zones Abu Dhabi and Abu Dhabi Airports Free Zone saw sustained demand, driven by strategic infrastructure projects and growing manufacturing activity, according to a separate report by Knight Frank.
Riyadh’s prime warehouse spaces now command rents exceeding SR250 ($66.6) per sq. meter, while city-wide averages hit SR208.
“Despite a slowdown in demand during the second half of the year, city-wide rental rates increased by 16 percent year-on-year,” the report said.
Jeddah’s lease rates for Grade B facilities rose to SR238 per sq. meter, with the high-end Asfan district maintaining 100 percent occupancy at SR387 per sq. meter. Dammam Metropolitan Area saw rents jump 14.8 percent to SR202 per sq. meter, fueled by a chronic shortage of quality logistics space.
E-commerce and mega-projects fuel growth
Rapid urbanization, a tech-savvy consumer base, and giga-projects like the Special Integrated Logistics Zone and Sino-Saudi Logistics Zone are reshaping demand.
“Demographic shifts including rapid urbanization, increased female workforce participation, and a tech-savvy Gen Z and millennial consumer base are accelerating the growth of the e-commerce sector,” the report stated.
The 3-million-sq. meter Special Integrated Logistics Zone has attracted global players like SHEIN and Apple, while the 4-million-sq. meter Sino-Saudi zone aims to strengthen trade ties with China.
Government initiatives and private investment
The National Industrial Development and Logistics Program is a cornerstone of the Kingdom’s industrial strategy, aiming to increase the transport and logistics sector’s contribution to the gross domestic product to 10 percent by 2030, from 6 percent in 2021.
Public-private partnerships are flourishing, with projects like the Tamer Logistics Park and Agility Logistics Park set to expand supply in key regions.
“Substantial investments to improve and expand connectivity and trade infrastructure, along with regulatory reforms are helping transform Saudi Arabia into a logistics powerhouse,” the report emphasized.
Sustainability and digital transformation
The sector is also pivoting toward sustainability and automation. Companies like Maersk and Agility are adopting solar-powered warehouses, while digital tools streamline operations.
“Sustainability has become a major market driver, with companies integrating renewable energy fields and LEED-certified buildings,” said Adam Wynne, partner at Knight Frank.
With 36,000 factories projected by 2035 and FDI reforms attracting multinationals, Knight Frank predicts sustained growth.
“Saudi Arabia is on track to become a regional logistics powerhouse,” Wynne said, citing the Kingdom’s integration of “global expertise, modern infrastructure, and green initiatives.”
Saudi travel bookings surge in early 2025 with growth in regional demand: report
Updated 29 April 2025
Nour El-Shaeri
RIYADH: Saudi travel bookings surged in the first quarter, 2025, with regional demand up 14 percent driven by mobile-first convenience, flexible payments, and value-focused accommodations, a new report showed.
Released by Almosafer, a Saudi travel firm under Seera Group, the report also highlighted a rise in international bookings, with a 11 percent year-on-year increase.
Domestic reservations grew by 4 percent annually, along with strong expansion in the Middle East and North Africa region and long-haul international travel.
The findings reflect a shift in Saudi travelers’ preferences, as they increasingly explore both local and global destinations, with a growing emphasis on adaptability, ease of booking, and affordability.
This comes as Saudi Arabia’s airports handled 128 million passengers in 2024, a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report on the initiative.
Muzzammil Ahussain, CEO at Almosafer, said: “The continued growth in travel demand across domestic, regional, and international markets reflects a robust appetite and confidence for exploration among Saudi travelers.”
He added: “We’re seeing a clear shift toward value, flexibility, and personalized experiences, whether it’s through choosing alternative accommodations, mixing and matching flight options, or leveraging mobile-first payment methods like Apple Pay and flexible options like buy now, pay later.”
The report noted that flight bookings grew across all markets, with the MENA region leading at a 12 percent increase, while international flights rose by 5 percent.
Room nights booked for domestic stays surged by 14 percent, and international trips climbed 13 percent.
Saudi travelers are benefiting from a wave of local tourism initiatives and enhanced international airline connectivity.
Cairo proved a popular destination for Saudi travelers. Shutterstock
Government-backed events and infrastructure projects are fueling domestic exploration, while expanded flight routes and eased visa policies are making global travel more accessible.
Almosafer noted that the strong demand for domestic stays was fueled by a growing range of events and unique experiences within the Kingdom.
Payment preferences shifted notably, with BNPL options representing 25 percent of all bookings, up from 14 percent the previous year, the findings showed.
Popular regional destinations for Saudi travelers included Dubai, Doha, Cairo, and Manama.
For longer-haul travel, Istanbul, London, Paris, and Phuket remained top choices, while newer destinations like Bangkok, Amman, and Milan as well as Moscow, Madrid, and Prague also gained traction.
Domestically, cities such as Makkah, Jeddah, and Riyadh, as well as Alkhobar, and Madinah dominated, alongside rising interest in Taif, AlUla, and the Red Sea, the report showed.
Saudi traveler profiles also evolved, with solo travelers representing 53 percent of flight segments, particularly toward long-haul destinations.
Family trips major driver
Family travel accounted for 16 percent of flight segments but saw a 23 percent increase in the average trip length within the MENA region.
Families were a major driver behind the 22 percent rise in domestic stays, while solo traveler stays beyond the region grew by 23 percent.
In the air travel segment, full-service carriers grew in the domestic market by 24 percent year on year, while low-cost carriers saw a 6 percent decline.
Within the MENA region, both full-service and low-cost carriers experienced growth. For international long-haul travel, low-cost carrier volumes surged by 35 percent amid the launch of new routes, even as full-service carrier volumes fell by 8 percent.
Booking flexibility became a notable trend, with 24 percent of travelers opting to mix and match airlines for round-trip journeys.
Accommodation preferences also diversified, with more than 75 percent of room nights booked in 4- and 5-star hotels.
However, 3-star and below properties saw a 12 percent rise in international bookings, and bookings for serviced apartments and holiday homes increased by 15 percent in the MENA region and 21 percent beyond, reflecting growing demand for value-driven options.
Alternative accommodations accounted for 8 percent of total room nights, offering an average 37 percent savings per night compared to hotel stays. This shift is particularly evident among international travelers seeking flexibility and affordability.
Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou
Updated 29 April 2025
RIYADH: Saudi Arabia and China are strengthening their air cargo cooperation through a new agreement to create a joint freight hub as part of the Air Silk Road initiative.
The deal, inked between Saudia Cargo and Henan Aviation Group, will see new new routes opened between Riyadh and Zhengzhou, according to a statement.
This correlates with the Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China as part of the Kingdom’s goal of transporting 4.5 million tonnes of air cargo by 2030.
The statement further highlighted that the agreement aims to “support integrated logistics services and free trade zone development” and “advance sustainability and cross-border e-commerce through logistics innovation.”
It also seeks to explore investment opportunities in the high-tech and aviation sectors in Zhengzhou.
The MoU came during a meeting held by President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej in Riyadh with Henan Province Vice Governor Sun Shougang to bolster investments between the two countries, the Saudi Press Agency reported.
During the discussion, the two sides discussed strengthening economic relations, focusing on fostering high-quality investments for leading firms and empowering the private sector to seize available opportunities. Both parties also explored enhancing Saudi-Chinese air transport in alignment with Vision 2030 and the Saudi Aviation Strategy.
GACA also held a Saudi-Chinese roundtable to explore collaboration opportunities in logistics zones and air cargo. The meeting included the Chairman of China Henan Aviation Group, along with representatives from national carriers and logistics firms.
The roundtable also included various Saudi government entities, such as the Ministry of Energy, the Ministry of Investment, and the Ministry of Transport and Logistic Services, as well as the Saudi General Authority of Foreign Trade, the Economic Cities and Special Zones Authority, the Industrial Center, and the Air Connectivity Program.
The Chinese delegation conducted a field visit to the Special Integrated Logistics Zone in Riyadh and the cargo zones at King Abdulaziz International Airport in Jeddah, where they observed operational capabilities, cargo-handling facilities and zones, e-commerce shipments, and the digital capabilities and mechanisms in use.
The delegation also visited King Khalid International Airport in Riyadh, where they toured the Airport Operations Control Center to observe the services provided as well as explored the commercial areas, and duty-free store.
China’s COSCO Shipping unveils Dammam office
Chinese company COSCO Shipping has launched its first office in the Kingdom in Dammam in an attempt to enhance operational efficiency and logistical connectivity.
This move also strengthens the firm’s partnership with the Saudi Ports Authority, or Mawani, supports trade growth, and achieves the goals of the nation’s Vision 2030 of consolidating the Kingdom’s position as a global logistics hub.
Saudi NHC continues house building deal with Chinese firm
Saudi Arabia’s National Housing Co. has extended its partnership with China State Construction Engineering Corporation, which aims to build 20,000 housing units within NHC destinations.
The partnership has been realized through the launch of multiple projects across NHC sites in the Eastern Region, Riyadh, and Jeddah, delivering over 3,800 housing units.
It comes as an extension of the Saudi-Chinese partnership series and several agreements signed with Chinese firms during the official visit to China by Minister Al-Hogail and NHC CEO Mohammed bin Saleh Al-Buty.
NHC stated that the partnership extends its efforts to enhance the real estate supply and inject more housing units through quality partnerships with major international companies to establish urban destinations with high-quality standards across the Kingdom.
