AP TOKYO: Shares in many markets fell on Friday as investors fretted over the mounting crisis in the Arabian Gulf and lingering worries about trade conflict between the US and China.
The US has blamed the suspected attacks on Thursday on two oil tankers near the strategic Strait of Hormuz on Iran. That has triggered the latest bout of selling in the markets with investors worrying about a potential escalation. The key concern centers on the supply of oil. One third of all oil traded by sea, which amounts to 20 percent of oil traded worldwide, passes through the strait.
The US military on Friday released a video it said shows Iran’s Revolutionary Guard removing an unexploded limpet mine from one of the oil tankers targeted near the Strait of Hormuz, suggesting that Iran sought to remove evidence of its involvement from the scene. Iran denies being involved.
“The attack on two oil tankers in the Gulf of Oman has raised the geopolitical temperature even further in the region, at a time when it is high already, given the strained relations between the US and Iran,” said Michael Hewson, chief market analyst at CMC Markets.
In Europe, Germany’s DAX tumbled 0.8 percent to 12,069 in midday trading. Britain’s FTSE 100 fell 0.5 percent to 7,328 and France’s CAC 40 also dipped 0.5 percent to 5,348.
Earlier, Japan’s benchmark Nikkei 225 edged up 0.4 percent to finish at 21,116.89. Hong Kong’s Hang Seng slipped 0.7 percent to 27,118.35, while the Shanghai Composite fell nearly 1 percent to 22,881.97.
Concerns over Gulf conflict escalation weigh on markets
Concerns over Gulf conflict escalation weigh on markets
Industry leaders highlight Riyadh’s Metro, infrastructure as investment catalysts
RIYADH: Saudi Arabia’s capital, Riyadh, is experiencing a transformative phase in its real estate sector, with the construction market projected to reach approximately $100 billion in 2025, accompanied by an anticipated annual growth rate of 5.4 percent through 2029.
The Kingdom is simultaneously advancing its data center capacity at an accelerated pace, with an impressive 2.7 GW currently in the pipeline. This expansion underscores the critical role of strategic land and power planning in establishing national infrastructure as a cornerstone of economic growth.
These insights were shared by leading industry experts during JLL’s recent client event in Riyadh, which focused on the city’s macroeconomic landscape and emerging trends across office, residential, retail, hospitality, and pioneering sectors, including AI infrastructure and Transit-Oriented Development.
Saud Al-Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, commented: “Riyadh is positioned at the forefront of Saudi Arabia’s Vision 2030, offering unparalleled opportunities for both investors and developers. National priorities are continuously recalibrated to ensure strategic alignment of projects and foster deeper collaboration with the private sector.”
He added: “Recent regulatory developments, including the introduction of the White Land Tax and the rent freeze, are designed to stabilize the market and are expected to drive renewed focus on delivering premium-quality assets. This dynamic environment, coupled with evolving construction cost considerations in select segments, is fundamentally reshaping the market landscape while accelerating progress toward our national objectives.”
The event further underscored the transformative impact of infrastructure initiatives. Mireille Azzam Vidjen, Head of Consulting for the Middle East and Africa at JLL, highlighted Riyadh’s transit revolution. She detailed the Riyadh Metro, a $22.5 billion investment encompassing 176 kilometers, six lines, and 84 stations, providing extensive geographic coverage, with a depth of 9.8 km per 100 sq. km. This strategic development generates significant TOD opportunities, with properties in proximity potentially commanding a 20-30 percent premium. JLL emphasized the importance of implementing climate-responsive last-mile solutions to enhance mobility and accessibility, particularly given Riyadh’s extreme temperatures.
Gaurav Mathur, Head of Data Centers at JLL, emphasized the rapid expansion of the Kingdom’s AI infrastructure, signaling a critical area for technological investment and innovation.
Focusing on the construction sector, Maroun Deeb, Head of Projects and Development Services, KSA at JLL, explained that the industry is actively navigating complexities such as skilled labor availability, material costs, and supply chain dynamics.
He highlighted the adoption of Building Information Modeling as a key driver for enhancing operational efficiency and project delivery.
