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From carbon markets to revolutionary AI: replaying FII’s major feats

From carbon markets to revolutionary AI: replaying FII’s major feats
The first Future Investment Initiative summit was held in Riyadh in 2017 and launched under the theme ‘The Big Shift’ to explore the large-scale transformations taking place across the globe. File
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Updated 28 October 2024

From carbon markets to revolutionary AI: replaying FII’s major feats

From carbon markets to revolutionary AI: replaying FII’s major feats

RIYADH: Whether through securing $17.9 billion in deals, or hosting the largest-ever voluntary carbon market auction, recent Future Investment Initiative forums have shifted the dial when it comes to sustainability.

With Riyadh gearing up to hold the eight edition of the event, the success of previous gatherings means that all eyes will be on the more than 7,100 expected attendees to deliver yet another headline-making forum.

Set to be held from Oct. 29-31, FII8 is already set to announce $28 billion in deals, according to FII Institute CEO Richard Attias. 

That figure will be added to the over $128 billion in agreements sealed across past editions.

FII7, which took place between Oct. 24-26 2023, saw deals worth $17.9 billion signed, covering sectors such as aerospace, energy, and manufacturing, reflecting the forum’s role as a catalyst for economic growth.

Ƶ’s energy ambitions were a focal point at FII7, showcasing the Kingdom’s commitment to balancing traditional hydrocarbon investments with renewable power.

Among the major agreements signed was ACWA Power’s financing deal for a wind energy project in Azerbaijan.

The FII Institute also launched its Inclusive ESG Tool, designed to drive sustainability efforts in emerging markets, providing companies and investors with clearer metrics on environmental, social, and governance performance.

Developed in collaboration with London firm ESG Book, the initiative is designed to close the $5.4 trillion investment gap in sustainable projects in developing regions.

AI dominated the discussions at FII7, with leaders exploring its transformative potential across various sectors, including finance, healthcare, and industry.

As Goldman Sachs predicted that AI investments could reach $200 billion by 2025, speakers at the forum highlighted how the technology is reshaping industries and driving productivity. 

Sessions emphasized the need for robust regulatory frameworks to ensure AI benefits society while managing its risks.

Experts also pointed to the complementary relationship between AI and emerging technologies such as blockchain, which are set to revolutionize financial services.

The forum took place against the backdrop of the then upcoming COP28, with a focus on sustainability and climate justice.

A special session brought together stakeholders from the Global South to shape carbon market frameworks, positioning these countries to lead biodiversity conservation and climate action efforts. 

FII7 succeeded in its mission to unite global leaders in tackling the most pressing issues of our time.

FII6

At FII6, held in Riyadh in October 2022, the Kingdom’s Public Investment Fund and the parent company of the country’s stock exchange, the Tadawul Group, led a carbon market auction, with participation from 15 leading Saudi and regional entities. 

Prominent companies such as Aramco, Olayan Financing Co., and Ƶn Mining Co. were among the key buyers of carbon credits, marking a significant step in regional efforts to offset carbon emissions and invest in environmentally conscious initiatives. 

This edition of the forum also saw PIF announce plans to establish five companies aimed at driving investment in neighboring countries. 

These companies would focus on key sectors in Bahrain, Iraq, Jordan, Oman, and Sudan. 

The total planned investment amounted to $24 billion, reflecting Ƶ’s broader economic strategy of fostering regional development and enhancing cross-border economic ties in alignment with its Vision 2030 goals. 

The companies have been rolled out since FII6, including the establishment of Saudi-Bahraini Investment Co. in November 2022 with an investment of $5 billion, and the Saudi-Iraqi Investment Co. in May 2023 with a capital of $3 billion.

The 2022 event, themed “Investing in Humanity: Enabling a New Global Order,” also served as a platform for the announcement of significant investments by the FII Institute. 

The institute revealed a $600,000 investment in Dogtooth Technologies, a UK-based startup that develops fruit-picking robots designed to reduce crop wastage and cut CO2 emissions. 

A similar $600,000 investment was made in Seafood Souq, a technology company offering a digital solution for seafood traceability, further underscoring the FII Institute’s commitment to supporting innovation in industries vital to global food security and sustainability. 

Another key highlight of the event was the launch of the Algoritmi Prize, an annual award established by the FII Institute in collaboration with global research publisher Springer Nature. 

The prize was aimed at promoting cutting-edge research in artificial intelligence and robotics, with a focus on finding technological solutions to some of the world’s most pressing challenges. 

Held at the King Abdulaziz International Conference Center in Riyadh, the event attracted a high-profile roster of global leaders from the realms of business, politics, and civil society. 

Notable attendees included the President of Senegal, Macky Sall; the Prime Minister of Pakistan, Shehbaz Sharif; the Greek Minister of Development and Investments, Adonis Georgiadis; and the Finnish Minister for Development Cooperation and Foreign Trade, Ville Skinnari. 


Closing Bell: Saudi main index ends the week in green at 10,833

Closing Bell: Saudi main index ends the week in green at 10,833
Updated 14 August 2025

Closing Bell: Saudi main index ends the week in green at 10,833

Closing Bell: Saudi main index ends the week in green at 10,833
  • Parallel market Nomu gained 282.36 points to close at 26,615.66
  • MSCI Tadawul Index edged up 0.72% to 1,401.67

RIYADH: Ƶ’s Tadawul All Share Index edged up on Thursday, gaining 70.12 points, or 0.65 percent, to close at 10,833.59.

The total trading turnover on the main index reached SR4.37 billion ($1.16 billion), with 174 stocks advancing and 74 declining.

The Kingdom’s parallel market Nomu gained 282.36 points to close at 26,615.66. The MSCI Tadawul Index edged up 0.72 percent to 1,401.67.

The best-performing stock on the main market was Thimar Development Holding Co., which jumped 10 percent to SR40.04. 

Saudi Industrial Development Co. rose 9.96 percent to SR33.12, while Saudi Printing and Packaging Co. gained 5.6 percent to SR12.63.

Elm Co. posted the sharpest drop, falling 3.40 percent to SR881. Theeb Rent a Car Co. declined 3.03 percent to SR62.35, Nice One Beauty Digital Marketing Co. dropped 2.62 percent to SR24.13, and Al Mawarid Manpower Co. decreased 2.59 percent to SR 128.1.

On the announcements front, Group Five Pipe Saudi Co. posted a substantial increase in its net profit for the first half of the year, supported by strong sales growth, the company said in a filing on Wednesday.

According to the firm’s financial disclosure on the Saudi Exchange, net profit for the six months ending June 30 reached SR125.18 million, a significant rise from SR9.2 million recorded during the same period in 2024. This marks a year-on-year jump of over 1,259 percent.

The increase in profit was primarily driven by volume growth and lower production costs.

Group Five Pipe Saudi Co.’s share price traded 29.95 percent higher to close at SR38.96.

National Signage Industrial Co., also known as Sign World, has set the price range for its initial public offering between SR12 and SR15 per share, according to a statement issued by Yaqeen Capital, the company’s financial adviser and lead manager.

The offering consists of 1.5 million ordinary shares, representing 20 percent of Sign World’s post-listing issued share capital. The entire stake is allocated to qualified investors as part of the book-building process.

Yaqeen Capital said the bidding and book-building period for qualified investors will commence on Aug. 17 and close on Aug. 24.

Qualified subscribers may apply for a minimum of 10 shares and up to a maximum of 374,990 shares.


UAE air traffic climbs 6.2% as airports handle 75.4m passengers in H1

UAE air traffic climbs 6.2% as airports handle 75.4m passengers in H1
Updated 14 August 2025

UAE air traffic climbs 6.2% as airports handle 75.4m passengers in H1

UAE air traffic climbs 6.2% as airports handle 75.4m passengers in H1

RIYADH: The UAE’s civil aviation sector posted robust growth in the first half of 2025, with passenger traffic climbing 5 percent to 75.4 million, up from 71.7 million a year earlier, according to the Emirates News Agency or WAM.

January was the busiest month, handling more than 13.7 million travelers across the nation’s airports.

The surge in passenger and cargo activity reflects a broader global rebound in aviation, as Middle Eastern carriers leverage their strategic location to capture long-haul transit traffic between Asia, Europe, and the Americas.

Air traffic movements increased 6.2 percent to 531,000 operations in the first six months, compared to nearly 500,000 in the same period of 2024. Riyadh, Jeddah, Kuwait, Mumbai, and Bahrain ranked among the top five most active routes.

Cargo volumes also strengthened, rising 4.74 percent to more than 2.2 million tonnes. National carriers handled 67 percent of total freight, underscoring the UAE’s dominance in regional logistics.

The expansion of UAE-based airlines — with 15 new destinations launched across Europe, Asia, Africa, and the Middle East — further fueled the sector’s momentum.

Abdullah bin Touq Al-Marri, minister of economy and chairman of the General Civil Aviation Authority, said the UAE is reinforcing its international and regional aviation standing through “record-breaking growth.”

“This growth stems from innovative national strategies that have elevated our competitiveness and leadership in a vital sector that now plays a central role in economic development, trade, tourism, investment, and job creation across aviation-linked industries,” Al-Marri said, reported WAM.

He added: “The performance indicators for the first half of 2025 demonstrate the sector’s resilience and sustainability, as well as the competitiveness of our airports, national carriers, and air traffic management. Aviation serves as a critical bridge connecting the UAE to the world and is a key enabler of our long-term economic goals.”

Al-Marri noted that the UAE would continue expanding its air connectivity through advanced legislation, open-market policies, and infrastructure development.

Saif Mohammed Al-Suwaidi, director general of the General Civil Aviation Authority, said the aviation sector is on a steady growth trajectory.

“These positive indicators reflect the sector’s strong infrastructure and the unified efforts of all partners, from airport operators and airlines to air traffic controllers,” Al-Suwaidi said.

He expressed pride in the consistent growth in passenger and cargo volumes, citing ambitious development projects aimed at supporting this expansion. The current combined capacity of the UAE’s airports now exceeds 160 million passengers annually.

Al-Suwaidi reaffirmed confidence in the sector’s ability to sustain its pivotal role in boosting the national economy, driving tourism and trade, and strengthening the UAE’s role as a key regional and global air transport hub.

The new routes include cities in Russia, the Czech Republic, and Poland, as well as Armenia, Kazakhstan, Vietnam, and Cambodia, among others. These additions complement the existing network, bolstering the country’s status as a global aviation hub.


GCC ties to propel ASEAN Islamic finance past $1tn, Fitch says   

GCC ties to propel ASEAN Islamic finance past $1tn, Fitch says    
Updated 14 August 2025

GCC ties to propel ASEAN Islamic finance past $1tn, Fitch says   

GCC ties to propel ASEAN Islamic finance past $1tn, Fitch says    

RIYADH: The Islamic finance industry in the Association of Southeast Asian Nations is set to exceed $1 trillion in assets by the end of 2026, driven by Malaysia, Indonesia and Brunei and supported by closer Gulf ties, Fitch Ratings said. 

The bloc’s Islamic finance sector reached nearly $950 billion at the end of the first half of 2025, accounting for about a quarter of the global total, the agency said in a report. Demand remains uneven within ASEAN, with limited presence in Singapore, the Philippines and Thailand, and underdeveloped markets in Vietnam, Laos, Cambodia and Myanmar.  

ASEAN’s Islamic finance industry is expanding in line with global trends, with worldwide assets projected to reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, according to Standard Chartered. 

In its latest report, Fitch stated: “Growth will continue to be led by Malaysia, Indonesia and Brunei due to their large Muslim populations, enabling regulations, access to sukuk, and potentially improving ties with Gulf Cooperation Council countries.” 

GCC investors already hold stakes in some Malaysian banks, while Gulf Islamic banks are key arrangers and investors in dollar sukuk issued in Malaysia, Indonesia and the Philippines — a pattern seen in markets such as the UK, Turkiye and Kazakhstan.   

Sukuk dominate 

ASEAN’s sukuk outstanding reached $475 billion by mid-2025, making up 16 percent of the region’s debt capital market.   

Malaysia and Indonesia lead the way, contributing nearly half, 47 percent, of the global sukuk market. “Sukuk outstanding represents 59 percent of Malaysia’s debt capital market and 18 percent in Indonesia,” Fitch highlighted.    

Environmental, social, and governance-linked sukuk are also concentrated in these two nations, while Singapore serves as a key listing hub for dollar-denominated sukuk.   

Banking and funds  

Malaysia remained ASEAN’s largest Islamic banking market, with assets totaling about $300 billion, representing 42 percent of total system financing.  

Indonesia followed with $56 billion in Islamic banking assets, though its market share remains modest at 7 percent. Brunei’s Islamic banks hold a dominant 63 percent of the country’s total banking assets.   

In the takaful sector, Malaysia’s family takaful accounts for 39 percent of the insurance market, while Brunei’s takaful penetration stands at 47.8 percent.  

The Philippines has taken steps to develop its Islamic finance ecosystem, issuing its first takaful operator licenses in 2024 and introducing guidelines for micro-takaful products.     

Regulatory gaps  

Recent high-level meetings have reinforced Islamic finance’s role in ASEAN’s economic strategy. The 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting in April emphasized its importance in sustainable and infrastructure financing.  

Meanwhile, the second ASEAN-GCC summit in May strengthened cross-border ties, with Fitch noting that “GCC Islamic banks are key investors and arrangers of dollar sukuk issued in Malaysia, Indonesia, and the Philippines.” 

Despite progress, regulatory frameworks remain absent in Vietnam, Myanmar, Laos, and Cambodia, limiting growth. However, with deepening GCC connections and strong fundamentals, Fitch expected ASEAN’s Islamic finance industry to maintain its upward trajectory.   

Fitch’s report aligns with S&P Global Ratings’ April assessment, which highlighted the Islamic finance industry’s rapid expansion in 2024, driven by robust growth in banking assets and sukuk issuances — particularly in foreign currencies.    

S&P projected that this momentum will continue in 2025, barring major macroeconomic disruptions, supported by stable oil prices and sustained financing needs from economic transformation programs.   

However, risks loom, including potential oil price declines and the possible adoption of Shariah Standard 62, which could reshape sukuk structures from debt-like to equity-like, potentially fragmenting the market and deterring fixed-income investors.     

The industry’s 10.6 percent asset growth in 2024 was heavily concentrated, with GCC countries — led by Ƶ — contributing 81 percent of Islamic banking expansion, fueled by Vision 2030 projects and deep market penetration.    

Meanwhile, Malaysia and Indonesia remained key sukuk hubs, though currency volatility in emerging markets like Turkiye and Egypt poses challenges. Global sukuk issuance is expected to reach $190–200 billion in 2025, with foreign currency issuances playing a pivotal role.   

Looking ahead, S&P emphasized that simplifying Islamic finance structures and leveraging fintech could enhance competitiveness, while sustainable sukuk, led by the Kingdom and Indonesia, presents a growing niche.   

Yet, the industry’s trajectory hinges on regulatory clarity, particularly around Standard 62, which could trigger a pre-emptive issuance surge before implementation. 


Jordan’s domestic revenue rises 3.6% to $6.59bn in H1  

Jordan’s domestic revenue rises 3.6% to $6.59bn in H1  
Updated 14 August 2025

Jordan’s domestic revenue rises 3.6% to $6.59bn in H1  

Jordan’s domestic revenue rises 3.6% to $6.59bn in H1  

RIYADH: Jordan’s domestic revenues climbed 3.6 percent in the first half of 2025 to 4.67 billion dinars ($6.59 billion), bolstered by fiscal measures aimed at strengthening public finances, official data show. 

The increase — equivalent to about 164.7 million dinars — came as the government reduced public debt to 35.3 billion dinars, or 90.9 percent of gross domestic product, down from 92.7 percent in May, the state-run Petra news agency reported, citing Central Bank of Jordan figures.  

The decline followed the Finance Ministry’s June repayment of $1 billion in maturing Eurobonds, funded through concessional loans secured earlier in the year at a 4.8 percent interest rate. The move allowed Amman to avoid issuing new debt at yields that could have approached 9 percent amid global and regional market pressures. 

According to a report in July, domestic revenues rose by about 224.1 million dinars in the first five months of the year, reaching 4.067 billion dinars, compared with 3.843 billion dinars in the same period of 2024. 

Tourism revenue for the first seven months of 2025 rose by 8.6 percent, totaling $4.398 billion. That growth occurred despite a 5.6 percent dip in tourism receipts in July, which fell to $721.4 million.  

Revenue from visitors of Asian nationalities surged by 41.1 percent, European visitors contributed a 33.8 percent increase, Americans accounted for a 21.7 percent rise, Arab visitors added 7.3 percent, and other nationalities posted a 38.0 percent increase.   

Meanwhile, revenue from Jordanian expatriate visitors declined by 2.5 percent.   

“The figures showed a 4 percent increase in spending by Jordanians on tourism abroad during the first seven months of 2025, reaching $1.247 billion,” stated the report.  

In July alone, that outbound tourism spending rose 7 percent, amounting to $247.4 million.  

Jordan’s Economic Modernization Vision identifies tourism as a core pillar of national growth, with the sector positioned to drive inclusive economic development and job creation.   

The strategy aims to boost GDP growth to 5.6 percent and attract significant private investment, with 72 percent of the required 41 billion dinars expected from non-government sources.   

The National Tourism Strategy 2021-25 supports this vision by promoting sustainable, authentic tourism experiences and strengthening sector competitiveness.  

These initiatives form part of broader efforts to diversify revenue streams, enhance fiscal resilience, and position Jordan as a high-value destination for regional and international travelers.  


Saudi inflation eases to 2.1% in July: GASTAT

Saudi inflation eases to 2.1% in July: GASTAT
Updated 14 August 2025

Saudi inflation eases to 2.1% in July: GASTAT

Saudi inflation eases to 2.1% in July: GASTAT
  • Housing, water, electricity, gas and fuel posted steepest annual increase
  • Furnishing and home equipment prices declined by 2%

RIYADH: Ƶ’s annual inflation rate slowed in July to 2.1 percent, down from 2.3 percent in June, as softer price gains in some categories offset persistent housing pressures, official data showed. 

The figures, published in the latest report from the General Authority for Statistics, revealed that housing, water, electricity, gas and fuel posted the steepest annual increase among major categories, climbing 5.6 percent. 

That was driven by a 6.6 percent rise in rents, including a 6.4 percent increase in villa rentals. The housing component accounts for 25.5 percent of the consumer price index basket, making it a key driver of the headline figure.

The inflation trend aligns with the Kingdom’s goal of balancing economic growth with price stability as part of its Vision 2030 strategy to diversify the economy beyond oil. The government’s November 2024 budget projected inflation to remain steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. 

“The annual inflation rate in the Kingdom witnessed a relative slowdown in the pace of growth during July 2025, reaching 2.1 percent, compared to 2.3 percent in the previous June,” GASTAT said. 

This comes as a July report from Kuwait-based non-banking firm Kamco Invest said inflation across Gulf Cooperation Council countries remained stable in the second quarter, despite heightened geopolitical instability. It added that the conflict’s limited impact on GCC inflation was largely due to gradual, rather than sudden, increases in commodity and shipping costs. 

Sectoral breakdown 

Food and beverage prices increased by 1.6 percent year on year in July, driven by a 2.6 percent increase in the costs for meat and poultry. 

The authority said expenses for personal goods and services rose by 4.3 percent compared to the same period in the previous year. This was due to a 24.7 percent rise in the prices of jewelry, watches, and precious antiques. 

Restaurant and hotel costs edged up 1.4 percent year on year, while education prices advanced by 1.1 percent during the same period. 

Furnishing and home equipment prices declined by 2 percent, expenses for clothing and footwear decreased by 0.4 percent, and transportation prices dropped by 0.3 percent during the same period. 

Month on month, Ƶ’s Consumer Price Index was stable in July, reflecting unchanged prices across multiple sectors. Transportation, restaurants, and hotels recorded no change, while clothing and footwear, health, telecommunications, and tobacco also held steady. 

Prices of housing, water, electricity, gas, and fuel rose 0.2 percent. 

Entertainment costs also increased 0.2 percent from June, while education expenses edged down 0.1 percent. 

The report added that food and beverage prices fell 0.2 percent, followed by a 0.1 percent decline in personal goods and services. 

Wholesale Price Index  

In a separate report, GASTAT said Ƶ’s Wholesale Price Index rose 2.1 percent in July from a year earlier, driven by a 4.1 percent increase in prices of transportable goods. 

“The prices of other transportable goods, except metal products, machinery, and equipment, increased by 4.1 percent, driven by an 8.3 percent rise in the prices of refined petroleum products, and an 8.6 percent increase in the prices of furniture and other transportable goods,” said GASTAT. 

Prices of agricultural and fishery products rose 4.4 percent, while metal products edged up 0.1 percent. 

Food products, beverages, tobacco, and textiles also increased 0.3 percent. 

Prices of ores and minerals fell 0.8 percent, driven by an equivalent drop in stone and sand prices. 

Average prices 

In a separate analysis, GASTAT said green beans and local eggs saw the largest month-on-month increases in July, both rising 3.2 percent. 

Imported chilled sheep meat and hay also recorded notable gains, up 2.2 percent and 2 percent, respectively. 

The steepest declines were in Pakistani mangoes and medium African lemons, with prices falling 12.7 percent and 11.5 percent, respectively.