Australian envoy to Saudi Arabia hails successful presidency of G20 amid pandemic

Australia’s battle with the coronavirus pandemic took a step closer to ending after the New South Wales state relaxed health restrictions. (AFP)
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Updated 08 November 2020
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Australian envoy to Saudi Arabia hails successful presidency of G20 amid pandemic

  • Balancing health measures and economic growth will be focus of November’s Riyadh Summit

LONDON: Australian Ambassador to Saudi Arabia Ridwaan Jadwat congratulated Saudi Arabia on its presidency of the G20 during the coronavirus pandemic.

“It’s been a very difficult year for everybody. We congratulate not only the authorities but all the frontline health care workers who have been doing their very best to keep people safe,” Jadwat told Arab News.

Jadwat remarked on how the meetings scheduled between working groups, engagement groups and ministers hardly skipped a beat this year and praised the decision of the Saudi presidency to continue the G20 meetings virtually.

“The decision for leaders to meet virtually in November was appropriate, given the logistical and health challenges in the current context,” he said. “We hope that the leaders will have another opportunity in the future to visit the Kingdom.

“The G20 is an institution that comes into its own when most needed; it is more a rough-weather friend than a fair-weather one.”

Under the Saudi Arabian presidency, the G20 is bringing members together to address response and recovery measures to COVID-19. “Leaders met earlier this year in March to discuss the crisis at the extraordinary G20 leaders’ summit … and COVID-19 continues to be the key focus leading into the summit in November.”

Jadwat stressed the importance of strong multilateral institutions, such as the G20, in a time of unprecedented global challenges.

“They’re vital to international stability. It is more important now than ever for leaders to have open lines of communication. And this is doubly true for the G20, which brings together the world’s biggest economies, given the significant economic impact of the pandemic.”

Jadwat said that the G20 has a key role in creating the conditions for future prosperity.

“Australia is focused on job creation through supply-side reforms and on restoring demand and enabling a private sector-led recovery, which is very important. The G20 has a key role in promoting the importance of the multilateral trading system and in providing political guidance and support for World Trade Organization reform.”

In commenting on the summit’s theme for this year, “Realizing Opportunities of the 21st Century For All,” the ambassador said that it has taken on a new meaning during the pandemic.

“Saving lives has to be our top priority. Australia is committed to equitable access to a vaccine once it’s developed and is actively engaged in international efforts to this end, through the Gavi-led COVAX facility. We need to support the health capacity of all vulnerable and low-income countries across regions, including the small states in our region closer to Australia,” he said.




Australian Ambassador to Saudi Arabia Ridwaan Jadwat. (Supplied)

Jadwat emphasized prioritizing economic growth as part of the G20 agenda while also ensuring that the global financial safety net is adequate, well-resourced, and responsive, adding that women’s participation will be vital to an inclusive and sustainable economic recovery.

“This is a key priority for Australia across the G20. We want to hold the pandemic-induced backsliding and resume progress toward the Brisbane 25 by 25 goal,” he said, referring to the 2014 G20 initiative to reduce the gender gap in labor force participation by 25 percent by 2025.

Jadwat applauded the Women 20 (W20) engagement group for hosting a successful summit, which he said will feed strong outcomes into the leaders’ meeting.

“I had the great pleasure of meeting with W20 Sherpa Salma Al-Rashid and Chair Dr. Thoraya Obaid. We are very happy with the work they have been doing over the course of this year, including working with W20 representatives from Australia.”

Since Jadwat first assumed his position as ambassador to Saudi Arabia, strengthening relations between Australia and the Kingdom has been a priority. 

FASTFACT

Australia’s consumer price index for 2020 rose 1.6% this quarter.

“It’s been an important mission for me to help build bridges between our two peoples. Australia’s relations with Saudi Arabia have been consistently friendly and constructive, but we can do even more together.”

Jadwat said that although the two countries are relatively far away from each other geographically, both economies have strong complementarities. With similarly sized populations, large desert areas, and abundant natural resources, Jadwat pointed out that the cornerstone of Australia’s relations with Saudi Arabia is strong trade-economic ties.

“We have natural strengths in the energy sector, but we are not competitors. We both value technology and finding innovative ways to solve problems. We have much to offer Saudi Arabia in education mining, agriculture and tourism, especially as it diversifies its economy.”

Jadwat highlighted that a goal of Vision 2030 is to develop the tourism sector and that Australia has much experience in managing sustainable, environmentally friendly tourism projects, like in the Great Barrier Reef and other places throughout the country.

“I think we have a lot to offer in terms of our expertise in tourism and environmental management. Australia is a mining superpower that has helped make us the 13th largest economy in the world. I know there are a lot of unexplored natural resources in Saudi Arabia. So in terms of engineering and mineral exploration, Australia has a lot to offer.

“One of the things that I’m most proud of is the education relationship and the number of alumni from Australian universities who are here in Saudi Arabia. We also have thousands of Saudi students who continue to study every year in Australia. I think that’s a testament to the relationship between the two societies. I feel that those Saudi students who come back to the Kingdom become ambassadors for Australia as well,” he said.

 


Global markets: Shares rise on China-US trade hopes, dollar on the back foot

Updated 9 sec ago
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Global markets: Shares rise on China-US trade hopes, dollar on the back foot

PARIS: Global shares rallied on Friday, helped by signs of progress in US-China trade talks, while the dollar held close to its lowest levels in more than three years.

World stock markets have rallied to record highs this week, as traders took confidence from a ceasefire between Iran and Israel and markets stepped up bets for US rate cuts.

A trade agreement between the US and China on Thursday on how to expedite rare earth shipments to the US was also seen by markets as a positive sign, amid efforts to end the tariff war between the world’s two biggest economies.

Asian shares hit their highest in more than three years in early trading, and US stock futures pointed to a firm start for Wall Street shares.

The pan-European STOXX 600 index was up 0.8 percent on the day, set for a 1.1 percent weekly gain — its best week since mid-May.

London’s FTSE 100 was up 0.5 percent and Germany’s DAX gained 0.6 percent.

The MSCI World Equity Index touched a fresh record high and was set for a weekly gain of 2.8 percent.

The S&P 500 index is up just 4.4 percent this year overall, following a volatile first half of the year, dominated by US President Donald Trump’s “Liberation Day” tariff announcement on April 2, which sent stocks plunging.

“What we are having right now is potentially some optimism about some trade deals,” said Vasileios Gkionakis, senior economist and strategist at Aviva Investors.

“We have ... come from quite low levels in the aftermath of the Liberation Day in April. To a certain extent we have also had some mini-selloff on the back of the events in the Middle East, and in that sense we’re rebounding.”

Trump has set July 9 as the deadline for the EU and other countries to reach a deal to reduce tariffs.

Mark Haefele, chief investment officer at UBS Global Wealth Management said that in the near-term, the firm saw greater upside potential in US and emerging markets than in Europe.

Dollar drop

The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling.

The dollar index was down a touch on the day at 97.269 , holding near its lowest in more than three years. The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June.

It held near multi-year peaks hit a day earlier.

“We see the US dollar as unattractive,” said Haefele at UBS Wealth Management.

Markets are focused on US monetary policy, as traders weigh up the possibility of Trump announcing a new, more dovish chair of the Federal Reserve.

Traders have stepped up their bets on US rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday.

The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s.

“I don’t think it’s just the repricing of the Fed, I think there is a broader issue here of some tarnishing of US exceptionalism,” Aviva Investors’ Gkionakis said.

Core PCE price data, the US central bank’s preferred measure of inflation, is due later in the session.

German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany’s government.

 


PIF embraces ‘precision finance’ with diversified debt strategy, says Global SWF

Updated 27 June 2025
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PIF embraces ‘precision finance’ with diversified debt strategy, says Global SWF

RIYADH: Saudi Arabia’s Public Investment Fund is embracing a calibrated, multi-instrument approach to debt issuance described by Global SWF as a model of “precision finance.”

According to the research firm, the purpose — following the issuance of the commercial paper program in June — is to align PIF’s funding tools with investment timelines, liquidity needs, and investor targeting, while reinforcing financial discipline across its expanding portfolio.

In its report, Global SWF noted that PIF is moving away from a singular focus on long-term mega-bond issuances and toward a more agile debt framework that includes commercial paper, sukuk, green bonds, and multi-tranche conventional bonds.

This strategy is designed not just to raise capital, but to do so with precision, which is matching maturities to project lifecycles and diversifying funding sources across global markets.

Global SWF highlighted that PIF’s latest move, completes a full-spectrum debt portfolio that now includes ultra-short to ultra-long maturity instruments.

The commercial paper, issued in US dollar and euro denominations via offshore special-purpose vehicles, secured the highest short-term credit ratings available: Prime-1 from Moody’s and F1+ from Fitch.

These ratings reflect exceptional credit quality and grant PIF access to deep liquidity pools among institutional investors such as money market funds.

The commercial paper program is a critical addition to a borrowing strategy that also includes a $3 billion 100-year green bond issued in October 2022, a $5.5 billion green bond in February 2023, a $3.5 billion sukuk in October 2023, and a series of multi-tranche bonds and sukuk issued through early 2025. 

With each offering, PIF has tailored tenor, currency, and structure to match specific financial and investor objectives.

The evolution of PIF’s financial strategy is closely tied to its broader transformation under Vision 2030. Since 2016, the fund has grown its assets under management from $160 billion to $941.3 billion, according to the latest Vision 2030 Annual Report. It has now increased its 2030 AUM target to $2.67 trillion, reflecting its expanded mandate and rising international profile.

PIF’s investment strategy is balanced between domestic development and global positioning. About 40 percent of its assets are allocated to Saudi-based companies and projects, while the remaining 60 percent target international sectors such as technology, logistics, mining, and tourism.

According to the Vision 2030 report, PIF’s initiatives have helped create 1.1 million jobs, attracted over $37 billion in private capital, and grown the number of PIF-established companies from 45 in 2021 to 93 in 2024.

A strategic departure from Gulf norms

While other sovereign wealth funds such as Norway’s NBIM remain entirely debt-free, and Singapore’s Temasek or China Investment Corporation borrow sparingly, PIF has opted for a hybrid model, one that combines government equity injections with strategic use of debt instruments.

According to Global SWF, this is not a matter of opportunistic borrowing. Rather, PIF is practicing deliberate asset-liability matching which focuses on issuing long-dated bonds to support giga-projects like NEOM or The Line, while using short-term debt for working capital needs and market-timed investments.

Sukuk offerings help tap into regional Islamic finance liquidity, and green bonds target environmental, social, and governance-focused global capital.

This differentiated approach allows PIF to broaden its investor base while keeping funding costs aligned with the nature and duration of its projects.

Why ratings matter

The fund’s credibility is bolstered by strong long-term credit ratings: Aa3 from Moody’s and A+ from Fitch. This has allowed it to secure favorable terms on successive bond offerings and confirmed that PIF is regarded as an exceptionally low-risk short-term borrower, giving it seamless access to institutional liquidity globally.

Global SWF emphasized that the ratings, combined with diverse issuance formats, position PIF among a small group of sovereign wealth funds with the internal capability to manage complex, multi-layered debt programs.

Saudi Arabia is currently navigating a tighter fiscal environment, with a projected 2.3 percent budget deficit in 2025 and a more disciplined approach to public spending.

In this context, PIF’s access to capital markets is more than just financial, according to Global SWF, it serves as a strategic bridge that enables ongoing project execution without placing undue pressure on state reserves.

The firm noted that the fund’s recent bond and sukuk calendar illustrates a sequenced and diversified funding plan, rather than reliance on a single issuance type. This is especially important as global interest rates remain volatile and investors increasingly scrutinize sovereign debt sustainability.

Rather than treating debt as a one-off tool, the fund is deploying it systematically, by tenor, purpose, and investor group, to support a $2.6 trillion vision for economic diversification and global investment leadership.

As the Kingdom approaches the final stretch of Vision 2030 implementation, PIF’s capital strategy offers a case study in how sovereign wealth funds can combine financial discipline, market sophistication, and national ambition under a unified financing framework.


Gold set for second weekly loss; US inflation data in focus

Updated 27 June 2025
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Gold set for second weekly loss; US inflation data in focus

BENGALURU: Gold declined on Friday and was headed for a second straight weekly loss, as the Israel-Iran ceasefire deal and progress on a US-China trade agreement dampened safe haven demand, while investors awaited the US inflation data.

Spot gold slipped 1.2 percent to $3,288.55 per ounce as of 9:43 a.m. Saudi time. Bullion has lost 2.3 percent this week.

US gold futures fell 1.4 percent to $3,300.40.

“The market is looking quite optimistic for the risky assets, so that’s weighing on gold prices,” said ANZ Commodity Strategist Soni Kumari.

De-escalation in the Middle East after the ceasefire and the progress in US-China trade talks are diminishing uncertainty from the market, sending prices further down, Kumari added.

Iranians and Israelis have welcomed a return to normal life after 12 days of the most intense confrontation ever between the countries and a ceasefire that took effect on Tuesday.

Meanwhile, the US has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said on Thursday, amid efforts to end a trade war between the world’s two biggest economies.

Investors are awaiting the US Core Personal Consumption Expenditure data at 3:30 p.m. Saudi time for further insight into the Federal Reserve’s policy path, with analysts polled by Reuters forecasting a 0.1 percent monthly increase and a 2.6 percent annual rise.

Markets are currently pricing in a 63-basis-point rate cut this year, starting September.

US President Donald Trump says that tame inflation means the Fed should already be reducing its policy rate, but only two Fed policymakers to date have embraced the possibility of a rate cut at the central bank’s July meeting.

Spot silver fell 0.5 percent to $36.44 per ounce and platinum lost 2.8 percent to $1,378.18, after hitting its highest in nearly 11 years. Palladium gained 0.3 percent to $1,135.36, the highest since October 2024.


Oil Updates — crude set to log steepest weekly decline in 2 years as war premium vanishes

Updated 27 June 2025
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Oil Updates — crude set to log steepest weekly decline in 2 years as war premium vanishes

  • Brent, WTI down 12 percent this week, most since March 2023
  • No major supply disruption from Mid-East crisis, analysts say

SINGAPORE: Oil prices headed for their steepest weekly decline since March 2023 on Friday, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 35 cents, or 0.52 percent, to $68.08 a barrel by 7:29 a.m. Saudi time while US West Texas Intermediate crude gained 40 cents, or 0.61 percent, to $65.64.

That put both contracts on course for a weekly fall of about 12 percent.

The benchmarks are now back at the levels they were at before Isreal began the conflict by firing missiles at Iranian military and nuclear targets on June 13.

This week began with prices hitting a five-month high after the US attacked Iranian nuclear sites at the weekend, before slumping to their lowest in over a week on Tuesday when US President Donald Trump announced an Iran-Israel ceasefire.

At present, traders and analysts said they could see no material impact from the crisis on oil flow.

“Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day (bpd) surplus,” Macquarie analysts wrote in a research note on Thursday.

The analysts forecast WTI to average around $67 a barrel this year and $60 next year, raising each forecast by $2 after factoring in a geopolitical risk premium.

Small gains in prices later in the week came as US government data showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

“The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,” said Phil Flynn, senior analyst with the Price Futures Group.

Also supporting prices was a Wall Street Journal report saying Trump planned to choose the next Federal Reserve chief earlier than usual. That fueled fresh bets on US interest rate cuts which would typically stimulate demand for oil.


Pakistani stocks decline by 715 points over profit-taking after two days of gains

Updated 26 June 2025
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Pakistani stocks decline by 715 points over profit-taking after two days of gains

  • KSE-100 Index closes at 122,046.46 points, witnessing a decline of 0.58 percent, as per stock market data
  • Profit-taking driven by fiscal year-end considerations, short-term portfolio rebalancing, says financial analyst

ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Thursday after two days of gains, losing 715.18 points to close at 122,046.46 points, which a financial analyst attributed to profit-taking driven by fiscal year-end considerations.

The PSX closed at 122,046.46 points when trading ended on Thursday, witnessing a negative change of 0.58 percent. The KSE-100 had closed at 122,761.64 points on Wednesday and before that on Tuesday, it surged by 6,079 points or 5.23 percent to close at 122,246 points. Analysts attributed the surge on Tuesday to the ceasefire announcement between Iran and Israel.

As many as 473 companies transacted their shares in the stock market on Thursday, with 200 of them recording gains and 237 sustaining losses, state-run Associated Press of Pakistan (APP) said, adding that the share price of 36 companies remained unchanged.

“After two consecutive sessions of strong gains, the local bourse witnessed a round of profit-taking today, driven by fiscal year-end considerations and short-term portfolio rebalancing,” Maaz Mulla, the vice president of equity sales at Topline Securities Limited, said in a statement.

Mulla said the benchmark KSE-100 index saw a “volatile ride“— climbing 656 points intraday before losing 715 points at close of business. He said the closing figure of 122,046 points reflected “a cautious investor mood” as the quarter draws to a close.

He said despite the decline at the end of the day, the overall market activity remained “vibrant.”

“Total traded volume clocked in at 750 million shares, with a traded value of PKR 29.8 billion,” Mulla said.

APP reported that the three top trading companies on Thursday were Pak Int. Bulk with 37,503,501 shares traded at Rs 8.52 per share, WorldCall Telecom with 33,285,442 shares at Rs 1.45 per share and Pervez Ahmed Co. with 32,962,174 shares at Rs 3.29 per share.