Oil Updates — crude rises to 7-week high as investors await trade truce details and US-Iran talks
Oil Updates — crude rises to 7-week high as investors await trade truce details and US-Iran talks/node/2604118/business-economy
Oil Updates — crude rises to 7-week high as investors await trade truce details and US-Iran talks
Update
Brent crude futures were up 82 cents, or 1.2 percent, to $67.69 a barrel at 1:28 p.m. Saudi time. Shutterstock
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Updated 28 min 13 sec ago
Reuters
Oil Updates — crude rises to 7-week high as investors await trade truce details and US-Iran talks
Markets cautious on US-China trade talks outcome
Rising supplies remain a key focus
Updated 28 min 13 sec ago
Reuters
LONDON: Oil prices rose to a seven-week high on Wednesday as markets assessed the outcome of US-China trade negotiations, while pessimism over US-Iran nuclear talks also provided support.
Brent crude futures were up 82 cents, or 1.2 percent, to $67.69 a barrel at 1:28 p.m. Saudi time, while US West Texas Intermediate crude was up 96 cents, or 1.5 percent, to $65.94.
US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China’s export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of intense negotiations in London.
The two countries are the world’s largest economies and oil consumers.
Trade-related downside risk in oil has been temporarily removed, although the market reaction has been tepid as it is not clear how economic growth and global oil demand will be affected, said PVM analyst Tamas Varga.
Meanwhile, US President Donald Trump said he was less confident that Iran would agree to stop uranium enrichment in a nuclear deal with Washington, according to an interview released on Wednesday.
For its part, Iran threatened to strike US bases in the Middle East if nuclear negotiations fail and conflict arises with the US.
On the supply side, OPEC+ plans to increase oil production by 411,000 barrels per day in July as it looks to unwind production cuts for a fourth straight month.
“Greater oil demand within OPEC+ economies – most notably Ƶ – could offset additional supply from the group over the coming months and support oil prices,” said Capital Economics’ analyst Hamad Hussain in a note.
Later on Wednesday, markets will be focusing on the weekly US oil inventories report from the Energy Information Administration.
US crude oil stocks fell by 370,000 barrels last week, according to market sources who cited American Petroleum Institute figures on Tuesday.
KARACHI: Pakistan plans to cut its overall tariff regime by more than 4% over the next five years, part of sweeping reforms aimed at boosting exports and shifting the country towards an export-led growth model, Finance Minister Muhammad Aurangzeb said on Wednesday.
At a post-budget press conference in Islamabad, Aurangzeb outlined details of the proposed tariff rationalization, saying the government had already removed additional customs duties on 4,000 tariff lines and reduced them on another 2,700, out of a total 7,000.
The reforms align with Pakistan’s commitments under a $7 billion IMF program approved last year and signal a shift toward an export‑oriented growth model built on a leaner tariff structure, protection of social welfare, and improved tax collection.
“First, the goal is to change the overall protected regime. When you lower protection and dismantle walls around it, you improve the economy’s resource allocation, better capital allocation, better human resource allocation, so that’s the overall macroeconomic framework," Aurangzeb said, adding that the changes would reduce input costs for exporters and improve competitiveness.
The reforms are part of the National Tariff Policy 2025–30 under which the government plans to abolish additional customs duties, regulatory duties, and the fifth schedule of the Customs Act, 1969. The policy envisions a streamlined customs structure with just four duty slabs ranging from 0 to 15%, which would become the maximum rate.
“According to the World Bank, after the successful implementation of these reforms, Pakistan’s average tariff will decline to the lowest level in the region,” Aurangzeb had said during his full-year budget speech on Tuesday, when he presented the Rs17.6 trillion ($62 billion) federal budget for FY2025–26.
Pakistan’s Finance Minister Muhammad Aurangzeb speaks during a media briefing in Islamabad on June 11, 2025, a day after presenting the 2025–26 fiscal budget. (AFP)
Describing the initiative as Pakistan’s “East Asia moment” during the post-budget speech, the minister said the plan was designed to help the country avoid recurring balance-of-payments crises.
“So that when we go toward growth we don’t get into the dollar situation, we don’t get into a balance of payment problem,” he said. “So that we can continue to grow at a certain pace which is export-led.”
Aurangzeb emphasized that the tariff cuts would be phased in gradually, starting this year.
“This I am talking about year one. We will take it towards a more than 4 percent reduction in the overall tariff regime in Pakistan,” he said.
Vehicles move past a shipping container yard along a road in Karachi, Pakistan, on June 10, 2025. (REUTERS)
The government is aiming to lift exports, which grew more than 6% year-on-year to $26.9 billion during July-April, against imports of $48.3 billion, up 8% in the same period.
ENFORCEMENT, ADDITIONAL TAXES
Aurangzeb also warned that the government could be forced to impose Rs400–500 billion ($1.4-1.75 billion) in additional taxes if the Pakistani parliament failed to pass enabling legislation needed to implement enforcement provisions tied to Rs312 billion ($1.1 billion) in proposed new tax measures for the coming fiscal year.
“The parliament should help us in enabling amendments so we don’t opt for additional measures to stop the leakages in the system,” he said.
The minister noted that enforcement actions in the current fiscal year had already yielded Rs400 billion ($1.4 billion) in additional revenue. Without legislative support, the government may be compelled to introduce further taxation to close gaps.
Corporate employees watching television screens as Pakistan Finance Minister Muhammad Aurangzeb presents Pakistan’s $62 billion federal budget for fiscal year 2025–26, in Islamabad on June 10, 2025. (APP)
Without naming them directly, Aurangzeb said international financial institutions had signed off on Rs389 billion ($1.36 billion) in additional taxes for FY26 as part of budget negotiations.
“We now have the credibility and trust internally and externally that we can do the enforcement,” he said.
BUDGET NUMBERS “LOCKED” WITH IMF
Flanking the finance minister, Finance Secretary Imdadullah Bosal said the government had “locked” all key budget numbers with the IMF. The $7 billion loan program the lender approved for Pakistan in 2024 comes with a strict reforms agenda on fiscal consolidation, debt rationalization, revenue mobilization, among other issues.
The IMF, in a recent statement, confirmed Pakistan had committed to continued fiscal consolidation while safeguarding social and priority spending in the new budget.
This handout photograph taken on June 10, 2025, and released by Pakistan's National Assembly shows Finance Minister Muhammad Aurangzeb presenting the 2025–26 fiscal budget at the Parliament House in Islamabad. (AFP)
Bosal said the government had managed to reduce current expenditures to under 2% growth in FY25 from 26% in FY24.
“This is our response back to those people who are paying taxes in this country,” Aurangzeb said, adding that the budget had attempted to extend relief to pensioners, salaried individuals, and businesses, despite fiscal constraints.
“The federal government, whatever it is giving, is from the loans that we are taking because we start [the new year] with a deficit.”
Ƶ’s ACWA Power plans $5bn investment deal with Uzbekistan
Updated 15 min 36 sec ago
Nirmal Narayanan
RIYADH: Saudi utility giant ACWA Power is planning to invest $5 billion in Uzbekistan, affirming its status as the leading foreign investor in the Central Asian nation’s energy sector, according to a top official.
Speaking at the Tashkent International Investment Forum, Soumendra Rout, ACWA Power’s country head for Uzbekistan, said that this planned $5 billion deal is a part of the company’s broader strategy aimed at increasing its total commitments in the country to $15 billion, UZ Daily reported.
Being the largest foreign player in Uzbekistan’s energy sector, ACWA Power has already implemented 19 projects in the country worth a combined value of $5 billion.
Out of these 19 projects, eight are focused on renewable energy, as Uzbekistan aims to generate 40 percent of its electricity from clean sources by the end of this decade.
“We are not going to stop here. Our objective is to expand our investments. During this forum, we plan to sign another agreement with the government of Uzbekistan worth $5 billion,” said Rout.
During the forum, Rout also emphasized the importance of Islamic finance instruments in ensuring sustainable economic development, particularly among small and medium-sized enterprises.
He added that Shariah-compliant financing mechanisms are capable of offering more effective support to SMEs compared to traditional financing tools.
“We are ready to share our experience with Uzbekistan and contribute to building a more inclusive financial system,” said Rout.
During the forum, Abid Malik, president of ACWA Power for Central Asia, announced that Uzbekistan is all set to localize the production of wind turbine components, including blades and turbines.
Malik added that ACWA Power is collaborating closely with suppliers and seeks to provide technical support to local enterprises working on renewable projects in Uzbekistan.
As part of a 200-megawatt wind power project currently underway in Karakalpakstan, ACWA Power has tasked its turbine supplier with establishing local manufacturing operations in Uzbekistan.
“Our supplier is planning to begin production of wind turbines and blades within the country in the near future,” added Malik.
He further said that Uzbekistan will begin producing green hydrogen this month, with an annual production capacity of 3,000 tonnes.
“We believe this will elevate Uzbekistan’s position on the global green hydrogen map,” said Malik.
In 2023, Shavkat Mirziyoyev, president of Uzbekistan, launched a pilot green hydrogen facility in the Tashkent Region in cooperation with ACWA Power.
The $88 million project is being implemented in two phases, with production from the first phase expected to begin this month.
The production of green hydrogen aligns with Uzbekistan’s goal to achieve 20 gigawatts of clean energy capacity by 2030.
The country is also prioritizing the expansion of solar, wind, and hydroelectric energy, leveraging its natural resources to decrease reliance on fossil fuels.
In April, ACWA Power commenced commercial operations at two major wind power plants in Uzbekistan.
In December, the company also launched three renewable initiatives in Uzbekistan, including wind, solar, and battery storage facilities.
These undertakings include the Bash and Dzhankeldy Wind Power Plants, with a total capacity of 1,000 megawatts and a transmission line.
Additionally, there are the Samarkand 1 and 2 solar projects, which have a combined capacity of 1,000 MW of solar power, along with a 1,000 MWh battery energy storage system. The Tashkent BESS Project has a capacity of 500 MWh.
Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn
Updated 55 min 9 sec ago
Dayan Abou Tine
RIYADH: Ƶ’s e-commerce sales using Mada cards increased by 57 percent in April compared to the same month last year, hitting SR23.27 billion ($6.2 billion).
Data by the Saudi Central Bank, also known as SAMA, shows online transactions through Mada exceeded 132 million for the month, up 40.75 percent year on year, reflecting a substantial increase in consumers shopping via websites and mobile apps.
These figures include purchases made online using linked debit cards and e-wallets, but they do not account for credit card transactions processed through international networks such as Visa or Mastercard.
Mada, formerly known as Saudi Payment Network, is the Kingdom’s national electronic payment system, connecting all ATMs and point-of-sale terminals to a central payments switch.
It enables debit and prepaid card services for millions of Saudis, allowing them to pay both in stores and online using funds directly from bank accounts. Importantly, Mada transactions utilize near-field communication technology for secure, contactless payments, meaning shoppers can simply tap their card or smartphone at terminals for instant checkout.
This system has become a cornerstone of Ƶ’s push toward a cashless economy, ensuring fast and secure transactions at physical retail locations and on e-commerce platforms. The accelerating uptake of Mada-enabled digital payments highlights growing consumer trust in online shopping and the success of national efforts to modernize the payments ecosystem.
In-store sales plateau as online spending soars
Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. The total value of POS purchases at physical retail outlets slipped to SR52.22 billion, marking a 1.38 percent decline year on year according to SAMA data.
This slight drop in sales comes even as the number of POS transactions climbed by around 11.6 percent to 891.5 million over the same period. In other words, Saudi consumers made significantly more card payments in person than a year ago, but were spending slightly less per transaction on average.
SAMA’s figures indicate over 2 million POS terminals are now deployed nationwide to facilitate card payments — a network 16.37 percent larger than a year ago, reflecting the Kingdom’s drive to expand electronic payment acceptance among businesses large and small.
This divergence — higher transaction counts but lower total POS value — suggests a behavioral shift as digital payments become frequent for everyday purchases. With contactless “tap-and-go” cards and mobile wallets now the norm, consumers are using cards for smaller, frequent buys like groceries or coffee.
This has driven up transaction volumes while curbing the average ticket size of each sale. Indeed, nearly all card swipes are now contactless; about 94 percent of in-store card transactions in Ƶ are made via NFC, whether through a physical card, smartphone, or smartwatch, according to SAMA.
The convenience of tap-to-pay has encouraged people to rely less on cash even for low-value items, contributing to the surge in POS transaction counts.
Another factor influencing the year-on-year comparison is the timing of Ramadan and Eid shopping. In 2024, the holy month of Ramadan and the Eid Al-Fitr festival fell largely in April, boosting retail spending in that period.
In contrast, Ramadan in 2025 fell mainly in March, pushing POS sales to about SR66 billion that month. As a result, April 2025 didn’t see the same holiday-related boost, which likely played a role in the softer in-store sales figures, even though the overall trend in electronic transactions continues to grow.
Categories like food & beverages and dining — which according to SAMA data were the top two POS spending sectors in April at around SR7.7 billion each — continue to dominate physical sale, but their growth may have been tempered without the late-Ramadan rush present a year ago.
Fintech innovation
The growth is also being fueled by new services and partnerships. In April, SAMA signed an agreement with Google to launch Google Pay in Ƶ using Mada’s payment infrastructure.
Expected to roll out later in 2025, this integration will allow users to add their Mada-linked debit cards to Google Wallet for seamless tap-to-phone payments and online purchases, further expanding the mobile payment options available to consumers.
This follows earlier introductions of Apple Pay and local mobile wallets, meaning Saudi shoppers will soon have a full suite of global and domestic smartphone payment apps at their disposal.
Such developments not only offer greater convenience but also help normalize cashless spending across all demographics — including younger, tech-savvy consumers who favor using their phones and wearables to pay.
Egypt seeking FDI boost with tourism sector investment opportunities
Tourism minister announced formation of unit to monitor investment prospects
He presented targeted investments in antiquities preservation and restoration
Updated 11 June 2025
Reem Walid
RIYADH: Egypt is intensifying efforts to attract foreign direct investment by opening new opportunities in its tourism and archaeological sectors, Prime Minister Mostafa Madbouly said during a high-level strategy meeting.
The gathering, which took place at the government headquarters in the New Administrative Capital, aimed at following up on the efforts of the Ministries of Tourism and Investment, according to a statement published on the Cabinet’s official Facebook page.
This aligns with Egypt’s goal of attracting 30 million tourists annually by 2028, aiming for a 25 percent to 30 percent year-over-year increase in inbound tourism as part of the nation’s Vision 2030 for sustainable development.
“The government is working to formulate clear plans with specific targets to offer investment opportunities in various sectors, contributing to increasing foreign direct investment,” Madbouly said during the meeting.
Egyptian Prime Minister Mostafa Madbouly held a high-level strategy meeting at the government headquarters in the New Administrative Capital. Facebook/Presidency of the Egyptian Council of Ministers
During the assembly, Minister of Tourism Sherif Fathy announced the formation of a dedicated unit to monitor investment prospects. The initiative aims to establish an “investment opportunities bank” that will showcase available projects in the tourism sector, supporting the country’s efforts to meet its growth targets.
The statement said: “In a related context, the Minister explained that 2024 witnessed an increase in hotel capacity of 7,200 additional rooms — 55 percent of which are new capacity, and during the current year 2025, it is expected to add approximately 19,000 new hotel rooms — new projects, expansions of existing projects, and initiatives.”
During the gathering, Fathy also presented the targeted investments in the field of antiquities preservation and restoration, noting that the Supreme Council of Antiquities has implemented an average of 36 projects annually over the past five years.
The minister then outlined the targeted investment distribution for the tourism and antiquities sectors from 2025 to 2031 across various governorates.
The plan includes developing hotel rooms, restaurants, safaris, camps, and amusement parks. It also focuses on investing in the rehabilitation and utilization of archaeological sites, establishing museums in partnership with the private sector, and enhancing services at heritage locations.
During the meeting, Investment and Foreign Trade Minister Hassan El-Khatib noted that the implementation timeline includes holding bilateral coordination meetings between the his department and the relevant ministries to present the strengths of each sector, available investment opportunities, proposed projects, and the challenges facing attracting investment.
He also stated that each ministry will conduct a comprehensive sectoral study, form joint working groups between the Ministry of Investment and Foreign Trade and each relevant ministry, and submit periodic reports to the Cabinet to monitor progress in implementing the sectoral investment strategy and achievement rates.
Egypt allocates Red Sea land for issuing bonds and lowering debt
174 square km plot allocated on Red Sea coast to finance ministry
Updated 11 June 2025
Reuters
CAIRO: Egypt has allocated a 174 square km plot on the Red Sea coast to the finance ministry for use in Islamic bond issuances and in efforts to lower the country’s public debt, the official gazette said on Tuesday.
The gazette did not elaborate on how the land would be used, but Egypt, which has been mired in a slow-burning economic crisis, signed a $35 billion deal with the UAE early last year to develop a 170-square-km tract along the Mediterranean coast.
Since then, Egypt has been seeking similar large-scale investments as it tries to overcome the economic crisis.
It has been in talks with Ƶ, Qatar, and Kuwait in a bid to attract major investments, according to investment bankers and news reports.
In tandem, Egypt also plans to issue $2 billion in sukuks, or Islamic bonds, in 2025, Finance Minister Ahmed Kouchouk told Reuters in April.
