Gulf, China exchanges sign deal to boost commodity ties
Updated 20 April 2025
MOHAMMED AL-KINANI
JEDDAH: Relations between the Middle East and China’s derivatives markets are set to deepen following a new cooperation agreement signed between the Gulf Mercantile Exchange and the Shanghai Futures Exchange.
Under the agreement, GME — the Middle East’s leading international energy and commodities futures exchange — and SHFE — one of China’s primary commodity trading platforms — will collaborate on a range of strategic initiatives.
These include joint product development, market research, the exchange of insights on market trends, and investor education efforts, according to a joint statement released by both exchanges.
“This partnership is a key step toward strengthening alignment between China and the Gulf in commodities trading,” said Raid Al-Salami, managing director of GME.
“We value our cooperation with SHFE and look forward to the opportunities this agreement will unlock for both sides.”
The agreement comes on the heels of a strong performance year for GME. In January, the exchange reported a 12 percent increase in total trading volume for 2024, reaching 1.32 million contracts — up from 1.18 million the previous year. Front-month contract volumes surged 20 percent to a record 959,565 contracts, while total physical exposure rose by 11 percent, reflecting GME’s commitment to enhancing market accessibility and supporting sustainable growth.
Formerly known as the Dubai Mercantile Exchange, GME has a long-standing reputation as a key player in the region’s commodities sector. Established with the vision of creating internationally accessible derivatives markets for Middle East commodities, the exchange has continued to evolve in scope and ambition.
A major milestone came in 2024 when the Saudi Tadawul Group acquired a third strategic stake in the exchange. This acquisition led to a rebranding from DME to GME, signaling a renewed focus on building out commodity markets in Saudi Arabia and across the wider GCC as part of a long-term strategic roadmap.
With this new partnership, GME and SHFE are poised to play a central role in shaping the future of commodity trading between two of the world’s most dynamic economic regions.
Saudi Arabia opens three sports facilities to private investment
Updated 19 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia has unveiled a major initiative to open up key sports venues to private sector investment, signaling a significant step forward in the Kingdom’s efforts to transform the industry.
Announced by the Ministry of Sport, the Sports Facilities Investment Project offers private investors access to three of the nation’s premier sports complexes: King Abdullah Sports City and Prince Abdullah Al-Faisal Sports City in Jeddah, and King Abdulaziz Sports City in Makkah.
Under the initiative, a range of five-year renewable contracts will be made available, the Saudi Press Agency reported. These include naming rights, leasing arrangements for non-match day use, and contracts to manage, operate, and maintain the venues.
The move supports Vision 2030, Saudi Arabia’s national strategy to diversify its economy and position the country as a global destination for sports, tourism, and entertainment.
With the 2034 FIFA World Cup on the horizon, the government is stepping up efforts to attract private capital into its burgeoning sports sector.
According to SPA, the initiative is part of “modern operational models that aim to raise facility efficiency, improve service quality, broaden commercial opportunities, and enhance the fan experience.”
Saudi Arabia’s sports industry is currently valued at $8 billion and is projected to grow to $22.4 billion by 2030, fueled by investments in sports clubs, academies, facilities, and equipment.
The government has already identified 20 high-priority investment opportunities within the sector, with a combined potential value of up to $20 billion.
Hosting the 2034 World Cup is expected to further accelerate this growth, with forecasts indicating over 10 million international visitors, 1.5 million new jobs, and an economic boost of $9 billion to $14 billion to the national GDP. The tournament will be staged across 15 stadiums in cities including Riyadh, Jeddah, Alkhobar, Abha, and the futuristic city of NEOM.
Interested investors are encouraged to submit proposals via the government’s “Furas” investment portal during the designated application period.
Officials described the project as a strategic gateway into one of the Kingdom’s most dynamic and fast-growing industries.
PIF convenes 1,000 global executives in Riyadh to shape next phase of governance
Discussions centered around redefining board impact in the national transformation
The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda
Updated 19 May 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Public Investment Fund gathered over 1,000 top executives in Riyadh for its second Directors’ Gathering, unveiling new governance priorities amid rapid portfolio expansion.
The event, which brought together representatives from approximately 220 portfolio firms — including over 100 established by PIF itself — focused on enhancing board performance, aligning strategic priorities, and promoting cross-sector synergies to deepen collaboration across the fund’s growing portfolio.
Discussions were centered around redefining board impact in the context of national transformation, strengthening oversight in a changing risk landscape, and navigating new governance challenges posed by artificial intelligence and emerging technologies, according to a press release.
The Directors’ Gathering, a knowledge-sharing platform for #PIF portfolio companies, featured majlis sessions and panels on national transformation, succession planning and risk management. pic.twitter.com/99crta3swY
The event comes as PIF accelerates its dual mandate of advancing Saudi Arabia’s economic diversification and generating long-term global returns. Since its 2015 transformation, the fund has grown into a globally influential investor, managing $941.3 billion in assets in 2024 and playing a key role in Vision 2030.
Speaking to the delegates, PIF Governor Yasir Al-Rumayyan, highlighted PIF’s vision and that the roles of boards include three main priorities: brainstorming and setting strategy, ensuring the right governance frameworks are in place for management, and monitoring performance, with a view to the ever-changing macro-economic context and evolving innovations.
“He stressed that this could transform challenges into opportunities to lead, grow and innovate,” the release added.
H.E. Yasir Al-Rumayyan, Governor of #PIF, gave the opening remarks at the PIF Directors’ Gathering.
Al-Rumayyan also urged directors to view PIF and its 220 companies as a unified ecosystem, emphasizing the importance of leveraging the group’s collective capabilities. He added that collaboration should be considered the primary measure of success.
The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda and serves as a platform for knowledge exchange and governance development not only within its portfolio but across Saudi Arabia’s business ecosystem.
PIF was ranked as the world’s second most active sovereign investor by deal value in February, committing $3 billion in global transactions, according to Global SWF, a data platform tracking sovereign wealth fund activity.
In a fireside chat titled “Aligning the Economic Vision,” Minister of Economy and Planning Faisal Al-Ibrahim, who also sits on the the sovereign wealth fund’s board, said the existence of PIF portfolio companies and the related ecosystem is in itself a form of resilience, according to a post on the fund’s official X account.
H.E. Faisal Alibrahim, Minister of Economy and Planning, and #PIF Board Member, attended a fireside chat at the #PIF Directors’ Gathering on ‘Aligning the Economic Vision’. pic.twitter.com/MU3laBynem
Al-Ibrahim added: “We are transforming our economy and restructuring the Saudi economy to create more engines of growth, more drivers of progress, and a diversified set of growth sources.”
In another fireside chat titled “Evolving Investment Strategy,” Head of the Global Capital Finance Division and Head of the Investment Strategy and Economic Insights Division at PIF, Fahad Al-Saif, said the fund is responsible for investing in assets that generate maximum economic impact for Saudi Arabia while also maximizing financial returns for the fund.
“This is done within a robust framework, across duration for us to become a generational fund in the future,” he said in another X post by PIF.
Fahad AlSaif, Head of the Global Capital Finance Division and Head of Investment Strategy and Economic Insights Division at #PIF participated in a fireside chat on ‘Evolving Investment Strategy: A Focus on Performance’ at the PIF Directors’ Gathering. pic.twitter.com/rArT1hXd3x
Closing Bell: Saudi indices close in red at 11,405
Parallel market Nomu dropped 155.91 points to close at 27,499.65
MSCI Tadawul Index decreased by 1.62 points to end at 1,454.93
Updated 19 May 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index decreased on Monday, losing 33.66 points, or 0.29 percent, to close at 11,405.28.
The total trading turnover of the benchmark index was SR4.8 billion ($1.2 billion), as 50 stocks advanced and 191 retreated.
The Kingdom’s parallel market, Nomu, dropped 155.91 points, or 0.56 percent, to close at 27,499.65. This comes as 27 of the listed stocks advanced while 47 retreated.
The MSCI Tadawul Index also decreased by 1.62 points, or 0.11 percent, to close at 1,454.93.
TASI’s top performer was Al-Baha Investment and Development Co., which surged by 6.74 percent to reach SR3.96.
Other top performers included Saudi Printing and Packaging Co., which gained 5.14 percent to close at SR11.86, and the National Co. for Learning and Education, which rose 4.82 percent to SR156.60.
Fawaz Abdulaziz Alhokair Co. was also among the top performers, increasing 4.40 percent to SR17.54.
Middle East Specialized Cables Co. saw the steepest decline, with its share price easing 5.83 percent to SR31.50.
National Gas and Industrialization Co. also saw its stock prices decline 4.71 percent to SR76.80. United Electronics Co. also dropped to SR85.90, a 4.66 percent decrease.
Alinma Bank announced plans to issue US dollar-denominated sustainable additional Tier 1 capital certificates, following a board resolution passed on May 5, 2025, authorizing the CEO to execute the process.
The issuance, conducted through a special purpose vehicle, will target eligible investors in Saudi Arabia and abroad. It aims to bolster the bank’s Tier 1 capital and support general banking activities.
The final size and terms will depend on market conditions, with the transaction subject to regulatory approvals and applicable legal requirements.
Abu Dhabi Islamic Bank PJSC, Alinma Capital, and Emirates NBD Bank PJSC have been appointed as joint lead managers for the offer. Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank will also serve in the same capacity.
Alinma’s share price dropped 1.97 percent to settle at SR27.40.
Separately, Saudi Ground Services Co. signed a Shariah-compliant banking facility agreement with Banque Saudi Fransi for up to SR300 million.
Dated May 15, the flexible credit line allows the company to draw funds as needed to meet working capital requirements.
The facility is valid through April 30, 2026, with an option to renew for one year, and is secured by a promissory note.
Saudi Ground Services said the facility aims to boost liquidity, support working capital needs, and back its strategic growth plans.
SGS saw a 1.03 percent drop in its share price to settle at SR48.20.
Saudi Arabia’s PIF expands global footprint with new Paris office
PIF invested $84.7 billion across Europe between 2017 and 2024
French President Emmanuel Macron and PIF Gov. Yasir Al-Rumayyan will headline the opening ceremony
Updated 19 May 2025
Miguel Hadchity
RIYADH: Saudi Arabia’s sovereign wealth fund is expanding its global presence with a new subsidiary company office in Paris.
The Paris office marks the Public Investment Fund’s latest effort to deepen ties in Europe, following previous openings in New York, London, Hong Kong, and Beijing, underscoring the fund’s commitment to strengthening its presence in key international markets.
This comes as PIF invested $84.7 billion across Europe between 2017 and 2024, contributing $52 billion to the continent’s gross domestic product and generating over 254,000 direct and indirect jobs. In France alone, its investments totaled $8.6 billion, adding $4.8 billion to GDP and creating 29,000 jobs.
“PIF is an active, long-term investor in the world’s most innovative and transformational industries, businesses, and markets. This new office will enable PIF to further strengthen its partnerships in the region,” the fund said in a release.
#PIF is an active, long-term investor in the world's most innovative and transformational industries, businesses and markets. This new office will enable PIF to further strengthen its partnerships in the region.
French President Emmanuel Macron and PIF Gov. Yasir Al-Rumayyan will headline the opening ceremony of the fund’s Paris office, coinciding with the “Choose France” summit that began on May 19 in the capital.
The event will also draw senior officials and leading business figures, underscoring the strategic significance of PIF’s investment in France.
The 8th edition of the “Choose France” summit, held at the Palace of Versailles, is expected to secure €20 billion ($22.47 billion) in commitments across key sectors such as defense, energy, and industry, surpassing last year’s €15 billion, according to Reuters.
Ahead of the 2025 summit, €17 billion in projects were already pledged, including a €6.4 billion data center investment by US logistics firm Prologis and €1 billion from fintech Revolut for expansion.
Other major announcements are expected from Amazon, UAE’s MGX, and rare earth firm Less Common Metals, alongside a €100 million drone factory by Portugal’s Tekever, Reuters reported.
The PIF Tower in the King Abdullah Financial District in Riyadh stands as the tallest building. International High-Rise Award 2022/23
According to UN Trade and Development, France retained its top spot in 2024 for the sixth consecutive year, attracting 1,025 projects despite a 14 percent decline. It remained ahead of the UK with 853 projects and Germany with 608. France captured 19 percent of all foreign investment into Europe, slightly above its 18.7 percent share in 2019 — highlighting its continued appeal to investors despite global economic uncertainty.
“The addition of Paris also aligns with PIF’s strategy to drive global economies and lead the economic transformation of Saudi Arabia,” the fund added in the release.
Since 2017, PIF has backed around 220 portfolio companies and supported the creation of 103 new firms, contributing to global economic activity and employment. The fund has generated over 1.1 million jobs worldwide and maintains a focus on forming strategic partnerships with innovative players across sectors.
Global SWF, a data platform tracking activity in the sector, reported that the Kingdom’s PIF emerged as the most active sovereign wealth fund, completing three overseas deals through its portfolio companies.
Egypt achieves 3.9% growth in first half of fiscal year, prime minister says
Comments came after Mostafa Madbouly held a meeting with IMF deputy managing director
Central Bank of Egypt expects the annual inflation rate to slow down during 2025 and 2026
Updated 19 May 2025
Reem Walid
RIYADH: Egypt has achieved real growth of 3.9 percent in the first half of the current fiscal year, signaling positive resilience of the economy, Prime Minister Mostafa Madbouly revealed.
In media statements following a meeting with the Deputy Managing Director of the International Monetary Fund Nigel Clarke, Madbouly noted that private sector investment rose by 80 percent, while foreign direct investment increased by approximately 17 percent during the period from July to December.
He also clarified that Egypt’s fiscal year runs from July 1 to June 30 of the following year.
Egypt’s Prime Minister Mostafa Madbouly said the country is witnessing a downward trend in debt. Egyptian Cabinet/Facebook
According to the newly released statement, Madbouly said: “The Egyptian economy has proven its resilience and ability to absorb the very significant external shocks that Egypt, like other countries around the world, has been exposed to in the recent period.”
He added: “This was confirmed by the IMF’s certification that Egypt is proceeding at a steady pace on the path of economic reform.”
The prime minister further noted that non-oil exports also witnessed a growth of approximately 33 percent during the first nine months of the year.
He highlighted that these indicators have supported strong growth in key productive sectors, such as industry, communications and information technology, tourism, and others, helping to boost investor confidence in the Egyptian economy.
“Furthermore, we have witnessed a decline in unemployment rates to less than 7 percent, which is the lowest rate witnessed in Egypt today throughout history,” Madbouly said.
Deputy Managing Director of the International Monetary Fund Nigel Clarke said Egypt has made tangible and clear progress regarding its macroeconomic reform program. Egyptian Cabinet/Facebook
He also explained that inflation rates and indicators in Egypt have declined significantly, noting that last month saw inflation rates fall to 13.9 percent, compared to more than 37 percent during the same period last year.
According to the Prime Minister, the country is also witnessing a downward trend in debt. Madbouly pointed out that the general budget deficit has also decreased over the past 10 months to 6.5 percent, compared to 6.7 percent.
He noted that the Egyptian state aims to reduce debt to approximately 85 percent of gross domestic product by the end of June, compared to 96 percent in June 2023.
The prime minister went on to affirm the state’s commitment to continuing its path of economic reform and exerting maximum efforts, thanking the IMF and its task force.
Madbouly highlighted the successful completion of four previous reviews under the current program and noted that the fifth review is now underway, in coordination with the fund’s task force.
Governor of the Central Bank of Egypt Hassan Abdalla, Prime Minister Mostafa Madbouly, and Deputy Managing Director of the International Monetary Fund Nigel Clarke. Egyptian Cabinet/Facebook
The IMF’s Clarke emphasized that Egypt has made tangible and clear progress regarding its macroeconomic reform program.
“This is an Egyptian program that has resulted in a strong decline in inflation and unemployment rates, while foreign exchange reserves have increased, along with the availability and abundance of foreign currencies. This is no longer a problem as it was before,” he said, adding: “We have also witnessed a steady increase in GDP growth rates, as the Egyptian economy continues on its path toward stability.”
The deputy managing director of the IMF went on to say that these significant positive results achieved by the Egyptian economic reform program were due to the bold decisions and actions of the government.
He noted that these reforms include the transition to a flexible exchange rate system, the adoption of a monetary policy based on economic stability, and the intensive efforts being made to mobilize domestic revenues to ensure a sustainable and stable fiscal policy.
In the same context, Clarke shed light on how the progress in Egypt’s economic reform program also includes the social dimension and provides support to the neediest groups.
Egypt’s Prime Minister Madbouly said private sector investment rose by 80 percent, while foreign direct investment increased by approximately 17 percent during the period from July to December. Egyptian Cabinet/Facebook
“I welcome these reforms that have led to these positive results,” he said, calling for continued implementation of the economic reform program.
The official also addressed the increase in the percentage of financing provided to the private sector and the growth in the private sector’s share of GDP, stressing that all of this was a direct response to the improvement and stability witnessed in the macroeconomic environment.
Clarke further justified that a rapid transition to a more sustainable economic standard requires a model in which the private sector leads growth and economic activity.
“This is already the current path, and we are moving forward together to accelerate it, reducing the state’s role in economic activity, making room for the private sector, and promoting equal opportunities for various economic sectors,” he said.
The IMF’s deputy managing director added: “This will enhance economic dynamism and attract both local and international investment. It will also lead to further progress and prosperity for the Egyptian economy, and, most importantly, it will lead to a more sustainable economic model.”
Deputy Managing Director of the International Monetary Fund Nigel Clarke expressed his optimism that the Egyptian economy would achieve positive results in the future. Egyptian Cabinet/Facebook
During his speech, Clarke also addressed the economic shocks that have become a defining feature of today’s global landscape, emphasizing that the region’s most critical issue is its economic resilience in the face of these disruptions.
Toward the end of his talk, the deputy managing director expressed the IMF’s appreciation for the long-standing partnership with Egypt, a key member of the fund. He stressed that the IMF continues to support Egypt in completing the implementation of bold economic reforms, which will contribute to achieving positive outcomes for the country and its people.
The Central Bank of Egypt expects the annual inflation rate to slow down during 2025 and 2026 compared to the sharp decline witnessed in the first quarter of this year, according to the bank’s monetary policy report.
The newly released report reveals that the Central Bank of Egypt expects an inflation rate of 14 percent to 15 percent on average in 2025 and 10 percent to 12.5 percent in 2026. The bank has attributed the slowdown in the annual rate of inflation decline in 2025 and 2026 to the relatively slow decline in non-food inflation.
The entity also expects inflation to stabilize around its current levels until the first half of 2026 before resuming its downward path, the report noted.
