The battle for talent: ��Ƶ’s high-stakes bet on human capital

Ultimately, the success of ��Ƶ’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce. (SPA)

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Updated 12 July 2025

Nour El-Shaeri

July 12, 2025 22:20

The battle for talent: ��Ƶ’s high-stakes bet on human capital

Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals

Updated 12 July 2025

Nour El-Shaeri

July 12, 2025 22:20

RIYADH: As ��Ƶ accelerates its transformation under Vision 2030, a critical question has emerged: Can the Kingdom build a homegrown tech workforce strong enough to power its digital ambitions?

From artificial intelligence and smart mobility to fintech and clean energy, the Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals. Yet despite billions in investments and major infrastructure rollouts, supply still lags behind demand.

This challenge, however, is far from ignored.

“We are proud to take human capital development to the next level,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, during the launch of the National Skills Platform in April 2025. “Technical expertise alone is not enough. Leadership, strategic thinking, and adaptability are equally important, and skilling and reskilling for the workforce is a national priority that all stakeholders should engage in.”

The AI-powered platform connects Saudi job seekers to customized learning pathways, marking a shift toward demand-driven education and training.

Despite billions in investments and major infrastructure rollouts, supply still lags behind demand. (SPA)

A national priority

Education Minister Yousef Al-Benyan, who also chairs the executive committee of the Human Capability Development Program, emphasized the broader purpose behind the Kingdom’s reforms.

“Vision 2030 is not just a roadmap for national transformation — it is a model for how investment in people can drive sustainable progress,” Al-Benyan wrote in an April op-ed for Arab News titled “Vision 2030: Elevating human capability in a changing world.”

Citing the World Economic Forum’s Future of Jobs Report 2025, he noted that while 170 million new jobs will emerge globally by 2030, another 92 million will be displaced. He warned that 44 percent of core skills are set to change within five years, with digital and AI literacy becoming as fundamental as reading and math.

“Without these,” he wrote, “individuals are unable to participate meaningfully in today’s digital economy.”

Yousef Al-Benyan, Saudi education minister. (Supplied)

Scaling up training and inclusion

This outlook is shaping some of ��Ƶ’s most ambitious workforce initiatives. Among them is the Waad National Training Campaign, launched in 2023 and supported by more than 70 organizations. The program surpassed 1 million training opportunities in its first phase and now targets 3 million by the end of 2025.

Waad’s Women’s Employment Track has been particularly successful, with a 92 percent retention rate in tech roles—contributing to a record rise in female participation across the digital economy.

Waad, Al-Rajhi noted, is an investment in “the promise of human potential.”

Meanwhile, the Future Skills Training Initiative, led by the Ministry of Communications and Information Technology since 2020, has provided training to hundreds of thousands of Saudis in areas like cybersecurity, data science, and cloud computing. Supported by the Digital Skills Framework and private-sector partnerships, it has grown steadily.

One such partnership — a 2023 collaboration with IBM — aimed to train 100,000 Saudis in AI and machine learning.

Ahmed Al-Rajhi, Saudi minister of human resources and social development. (Supplied)

Talent gaps persist

Despite this progress, a 2025 report by Nucamp and the ministry highlighted a 20 percent shortfall between tech job vacancies and qualified local talent. Critical roles such as AI engineers, cloud architects, and data analysts remain in short supply.

“Demand for AI and cloud experts far exceeds supply,” said Ahmed Helmy, managing director for SAP in the Middle East, in an April interview with Asharq Al-Awsat. The result: fierce competition among employers.

To meet short-term needs, ��Ƶ is tapping into international expertise. The Premium Residency Program, launched in 2021, allows skilled foreign professionals to live and work in the Kingdom without a local sponsor. By late 2023, more than 2,600 had taken advantage of the scheme.

In 2024, five new visa categories were introduced to attract investors, entrepreneurs, and tech specialists. These include provisions that exempt founders from Saudization quotas for their first three years—providing flexibility to scale teams while supporting local hiring in the long term.

“Such incentives allow skilled professionals to have a more stable life and make long-term investments in their careers in ��Ƶ,” said Raymond Khoury, partner at Arthur D. Little, in May.

Still, officials stress that international hiring is a stopgap — not a substitute.

“While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development,” said Mamdouh Al-Doubayan, MENA managing director at Globant.

To that end, foreign hires are increasingly being integrated not just as employees, but as mentors and trainers.

Startups adapt with remote models

In the private sector, startups are turning to remote hiring to bypass local talent shortages. A 2024 study by Wamda found that many Saudi companies are building distributed teams, sourcing tech talent from Egypt, Jordan, and other regional markets. This strategy shortens hiring cycles and enables around-the-clock operations.

The trend aligns with the Kingdom’s Telework Initiative, which certifies employers to offer remote roles to Saudis—especially women and those living outside major urban centers.

Competitive pressures from giga-projects

The hiring challenge became especially acute in 2023. That year, PwC’s Middle East Workforce Survey reported that 58 percent of Saudi firms struggled to fill key tech roles. A MAGNiTT report found that 65 percent of startup founders saw the shortage of senior tech talent as their top obstacle.

A concurrent survey by Flat6Labs noted that many startups were delaying product launches due to staffing shortages, losing talent to mega-projects offering 30 to 50 percent higher salaries.

“Engineers and product managers often defect to deep-pocketed giga-projects that offer salaries 30–50 percent above startup pay,” wrote venture adviser Aditya Ghosh in a November 2023 LinkedIn Pulse column.

Bridging the divide

Education leaders are working to close this gap. Khalid Al-Sabti, chairman of the Education and Training Evaluation Commission, said in a 2024 Arab News interview that ��Ƶ is aligning its curriculum with global benchmarks.

“We must ensure our graduates meet international standards to compete globally,” he said.

This includes revising curricula, emphasizing hands-on projects, and embedding industry into the classroom through partnership programs. The Talent Enrichment Program, for example, spans 160 countries and offers global certifications to Saudi learners.

Encouragingly, ��Ƶ’s position in the IMD World Talent Ranking improved in 2023. Companies such as STC, Aramco Digital, and Elm are now hiring directly from local boot camps and training centers — evidence that education and industry are beginning to align.

The road ahead

Ultimately, the success of ��Ƶ’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce.

If current reforms continue at scale, the Kingdom may not only satisfy its domestic tech demand — but emerge as a regional hub for digital talent.

As Al-Benyan wrote: “By investing in people, fostering global collaboration, and redefining the future of work, ��Ƶ is demonstrating that human capability is the ultimate driver of progress.”
��

Topics: Saudi Vision 2030

Lebanon bets on Gulf tourists to rescue its collapsing economy

Updated 12 July 2025

Miguel Hadchity

July 12, 2025 21:54

Lebanon bets on Gulf tourists to rescue its collapsing economy

With the UAE and Kuwait lifting travel bans, high-end venues pin their hopes on a luxury tourism resurgence

Updated 12 July 2025

Miguel Hadchity

July 12, 2025 21:54

RIYADH: Lebanon’s tourism sector is placing its hopes on international and Gulf visitors to help steer the country through a financial crisis that has gripped the nation since 2019.

As Beirut’s clubs and restaurants increasingly operate in US dollars, the city’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment.

The ongoing financial collapse — now in its sixth year — has created an $80 billion gap in the banking sector, with debt restructuring stalled amid persistent political gridlock.

Since 2019, the Lebanese pound has lost more than 90 percent of its value, while the country’s gross domestic product has contracted by nearly 40 percent.

The 2024 Hezbollah-Israel conflict further devastated the economy, inflicting widespread damage on tourist regions. In response, the World Bank approved a $250 million loan in June as part of a broader $1 billion recovery program, estimating the total cost of the conflict at $7.2 billion, with reconstruction needs reaching $11 billion.

A defiant party amid the ruins

In early June, fireworks lit up the sky above Beirut’s iconic St. Georges Hotel during a retro-themed event hosted by the Tourism Ministry, reviving memories of Lebanon’s golden age in the 1970s — a time when Gulf tourists filled its beaches, mountain resorts, and vibrant nightlife.

Today, that nostalgia is being reimagined for a new generation of affluent travelers. With the UAE and Kuwait lifting travel bans — and ��Ƶ possibly following — high-end venues are pinning their hopes on a luxury tourism resurgence.

But renewed tensions in the region have cast a shadow over those ambitions.

Beirut’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment. (AFP)

Lebanon’s tourism sector has seen “some cancellations in hotels, (flight) tickets, and car rentals,” Laura Lahoud, Lebanon’s tourism minister, told Arab News in an interview, acknowledging the impact of regional tensions.

“We are surely affected by the current situation in the Middle East, same as all the region. But if Lebanon remains neutral and does not take sides — as the president and prime minister are insisting — we can save the season,” Lahoud added.

Her optimism hinges on a fragile ceasefire between Iran and Israel. “Hopefully, it will go back to normal,” she said, while emphasizing that festivals and events remain untouched, except for the Beiteddine Festival, where “performers are from the US.”

The dollar hustle

While Lebanon’s currency has collapsed, poverty has tripled, and the banking sector remains frozen, a parallel economy is flourishing in Beirut’s upscale neighborhoods like Gemmayzeh and Mar Mikhael.

Security is part of the appeal. Army patrols have become more visible in tourist areas, and Hezbollah banners along the airport road have quietly given way to billboards promoting “A New Era for Lebanon.”

But the real driver is privatization. With the state largely incapacitated, private investors — mostly dealing in US dollars — are fueling a boom in luxury tourism, pouring money into beach clubs, rooftop lounges, and curated VIP experiences that operate outside the formal economy.

“The private sector has always been a main driver,” said Lahoud, defending the government’s role as a facilitator rather than a funder. “Our role is to guide, organize, and direct investment into new sectors, new regions, and new ideas.”

Laura Lahoud, Lebanon's minister of tourism. (Supplied)

Yet, some argue this model is unsustainable.

“The dollarized tourism economy has a negative impact on domestic tourism,” warned Jassem Ajaka, an economist and professor at the Lebanese University.

“Prices become high for residents, especially if pricing is applied equally to tourists and locals. This is unsustainable because the dollar is not the country’s official currency,” he explained in an interview with Arab News.

Geopolitical gambles

The stakes could not be higher. Lebanon’s agricultural and industrial sectors lie in ruins.

Once accounting for 20 percent of GDP, tourism has emerged as the fastest route toward restoring ties with Gulf countries and reviving the economy.

President Joseph Aoun has made outreach to the Gulf a top priority, traveling to ��Ƶ, Qatar, and the UAE to present Lebanon as “open for business.”

Lahoud emphasized that rebuilding tourist confidence in Lebanon “is the main objective.”

She outlined plans to achieve this through comprehensive government reforms, coordinated airport improvements, streamlined visa processes for GCC families, shorter checkpoint delays, and the promotion of year-round tourism across all sectors.

“Before some Gulf countries removed the travel ban, Arab tourists were limited to Egyptians, Iraqis, and Jordanians,” said Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon.

“Demands from Gulf countries were growing steadily, especially from the Emirates, Kuwait, and Qatar. But due to the current conflict between Iran and Israel, everything has changed,” he told Arab News.

The fallout is immediate. “We, as tour operators nowadays, avoid including the south in our programs due to the unexpected problems,” Abboud added.

Lahoud stated that the ministry is collaborating closely with all industry groups to create unique visitor experiences in Lebanon. She added they plan to develop long-term policies and digital tools to support both city and countryside activities, and encourage vital small and medium investments across all regions.

Risky bet

“Over the past couple of years, I’ve noticed a shift toward a younger crowd — but interestingly, they’re spending more,” says Marco Khadra, ambassador at Factory People, a Beirut-based group organizing many of the country’s major music festivals.

“There’s a clear appetite for nightlife, even among younger demographics,” Khadra told Arab News.

But security concerns loom large. “Some people, including international acts, have felt Beirut isn’t safe, and that affects bookings and attendance,” Khadra admitted, adding: “Perception plays a big role in this industry.”

German electronic music record label Keinmusik performing in one of the Factory People's clubs in Beirut in 2023. (Factory People photo)

For bartenders like Lynn Abi Ghanem, who left Beirut for the Gulf, the sustainability of this boom is questionable. “Not in the long run,” she said of the shift toward Gulf tourists. “Tourists come for a short time, but it’s the locals who keep bars running all year. Without them, things feel off and won’t hold up.”

The staffing crisis is another weak link. “There are a lot of talented workers who aren’t paid what they deserve,” Abi Ghanem added. “If things don’t change, many will keep leaving.”

A mirage of recovery?

Hotels have reported occupancy rates of 80 percent ahead of the summer season, while flights are operating at near capacity with expatriates and Gulf tourists. Yet Lebanon’s recovery remains precarious.

“Even though tourism’s contribution to the gross domestic product increased after the crisis to about 30 percent, this was due to the economic contraction,” explained Ajaka.

“We cannot say the sector has recovered because recovery depends on political stability and investment inflows.”

For now, the party continues, sustained by Gulf investment and the relentless drive of Beirut’s nightlife entrepreneurs.

But as Ajjaka conceded: “The biggest enemy of tourism is any security obstacle.” And in a country where crisis is the only constant, the stakes have never been higher.

Topics: Lebanon

Startup Wrap — ��Ƶ leads MENA startup activity as UAE crowns new unicorn��

Updated 12 July 2025

Nour El-Shaeri��

July 12, 2025 22:37

Startup Wrap — ��Ƶ leads MENA startup activity as UAE crowns new unicorn��

New unicorn emerges in UAE amid mixed funding trends across MENA

Updated 12 July 2025

Nour El-Shaeri��

July 12, 2025 22:37

RIYADH: ��Ƶ continued to dominate startup momentum while the UAE saw a new unicorn emerging amid mixed funding trends across the region at the beginning of July.

Digital freight platform TruKKer, headquartered in the Kingdom, has raised $15 million in private credit investment from Ruya Partners through its Ruya Private Capital I fund.

The funding will be used to support the company’s expansion across regional markets, advance its proprietary artificial intelligenceI-enabled logistics platform, and further consolidate its position in the freight tech space.

Founded in 2016, TruKKer operates in nine countries and connects over 60,000 transporters with more than 1,200 enterprise clients through its real-time freight marketplace.

Digital freight platform TruKKer has raised $15 million in private credit investment from Ruya Partners through its Ruya Private Capital I fund. (Supplied)

The new capital follows a $100 million pre-IPO round in 2022 led by Bahrain’s Investcorp, signaling continued investor confidence in the platform’s scaling potential across the Middle East and North Africa.

Tarmeez Capital raises strategic round to accelerate sukuk innovation

Saudi fintech startup Tarmeez Capital has raised a strategic round led by Tali Ventures, the corporate venture capital arm of stc group.

Launched in 2022 by Nasser Al-Saadoun, Tarmeez Capital aims to democratize sukuk issuance, offering a digital platform that it says can process transactions at seven times the speed of traditional methods.

The platform currently supports over 180,000 users and is focused on enhancing access to Islamic financial instruments.

The company plans to use the funds to expand its retail sukuk offerings and support ��Ƶ’s Vision 2030 initiative, particularly in driving financial inclusion across the population.

Saudi fintech startup Tarmeez Capital has raised a strategic round led by Tali Ventures, the corporate venture capital arm of stc group. (Supplied)

Rekaz raises $5m seed round to expand SaaS for service SMBs

Riyadh-based Software-as-a-Service company Rekaz has secured $5 million in seed funding to scale its operating system for service-based small and medium-sized businesses.

The round was led by COTU Ventures, with participation from Impact46, Shorooq Partners, Numrah Capital, and several angel investors.

Founded in 2017 by Abdulrahman Al-Omran and Abdulaziz Al-Kharashi, Rekaz provides an integrated platform that includes scheduling, subscription management, payments, and customer engagement tools for businesses such as gyms, salons, clinics, and home service providers.

The company plans to channel the new capital into deepening AI functionality, expanding across the Gulf Cooperation Council markets, and accelerating product development.

Jahez Group acquires 76.56% stake in Qatar’s Snoonu for $245m

��Ƶ-listed Jahez Group has signed a definitive agreement to acquire a 76.56 percent stake in Snoonu, a leading Qatari e-commerce and delivery company, for $245 million.

The transaction includes $225 million for a 75 percent equity stake in existing shares and a $20 million capital injection for a newly issued 1.56 percent stake.

The acquisition marks Jahez’s formal entry into the Qatari market and is expected to enhance operational synergies across logistics, on-demand delivery, and e-commerce across the GCC.

Snoonu, now valued at over $300 million, will continue to operate under its own brand, led by founder and CEO Hamad Al-Hajjri, who retains a 23.44 percent stake in the company.

Huspy raises $59m series B to expand in Europe and ��Ƶ

UAE and Spain-based property tech platform Huspy has raised $59 million in a series B round led by Balderton Capital, with participation from Peak XV, ExBorder Partners, and Turmeric Capital, as well as BY Ventures, Dara Management, and KE Partners.

The company plans to expand into six new cities in Spain and launch operations in ��Ƶ in 2025.

Founded in 2020 by Jad Antoun and Khalid Ashmawy, Huspy facilitates over $7 billion in annual real estate transactions across its markets.

It supports real estate agents and mortgage brokers with a suite of digital tools, offering high commissions and automation in property transactions.

The round represents a reaffirmation of confidence by previous investors Balderton Capital and Peak XV.

XPANCEO raises $250m to achieve unicorn status

UAE-based deep tech company XPANCEO has raised $250 million in series A funding at a valuation of $1.35 billion, according to a press release.

The round was led by Opportunity Venture, which also led the company’s $40 million seed round.

XPANCEO is developing a multifunctional smart contact lens that integrates augmented reality, health monitoring, night vision, and optical zoom into a lens thinner than a human hair.

XPANCEO founders Valentyn Volkov and Roman Axelrod. (Supplied)

The funding will accelerate commercialization efforts, global expansion of R&D and product teams, and regulatory and pilot testing.

The company, founded by physicist Valentyn Volkov and Roman Axelrod, is aiming to replace multiple personal devices with a single wearable form factor.

BlueFive Capital closes founding round at $120m valuation

UAE-based investment firm BlueFive Capital has completed its Founding Shareholders Circle round, achieving a valuation of $120 million.

The round attracted 25 founding shareholders, including members of prominent GCC royal families, global institutional investors, and financial leaders from North America, Europe, and Asia, according to a statement.

Founded in late 2024 by former Investcorp co-CEO Hazem Ben-Gacem, the firm has already amassed $650 million in assets under management.

BlueFive Capital aims to connect institutional capital with high-growth, underrepresented markets, with a global presence across London, Abu Dhabi, and Riyadh, as well as Singapore and Beijing.

Icogz raises $1.4m pre-seed to enhance AI-driven BI platform

UAE-based business intelligence startup icogz has raised $1.4 million in pre-seed funding from angel investors in the UAE and India.

Founded in 2018 by Amit Tripathi and Vrutika Dawda, the platform uses proprietary algorithms to mine intelligence from corporate data and deliver actionable insights.

The company plans to use the capital to further develop its AI engine, Aryabot, and scale go-to-market efforts across MENA and Southeast Asia.

BioSapien extends pre-series A to over $8m

Health tech startup BioSapien, based in the UAE and the US, has extended its pre-series A round to over $8 million.

The latest funding was led by Globivest, joining existing backers Global Ventures, Golden Gate Ventures, and Dara Holdings.

Founded in 2018 by Khatija Ali, BioSapien’s flagship product, MediChip, is a 3D-printed, slow-release drug delivery platform that can be affixed to tissue to minimize systemic side effects.

The new capital will support R&D, product development, and regulatory expansion.

Nawy acquires majority stake in SmartCrowd to expand GCC presence

Egypt-based real estate tech startup Nawy has acquired a majority stake in Dubai’s SmartCrowd, a regulated fractional property investment platform.

The acquisition follows Nawy’s recent $52 million series A round and signals the company’s entry into the GCC market.

SmartCrowd, regulated by the Dubai Financial Services Authority, claims to have facilitated over $110 million in transactions and distributed more than $40 million in investor returns.

The acquisition expands Nawy’s service offerings to include fractional ownership and positions the company as a full-stack proptech platform for the MENA region.

Startup funding in MENA falls 82% in June amid investor caution

Startup funding across the MENA region fell sharply in June, dropping 82 percent month on month to $52 million across 37 deals.

The figure also marks a 55 percent decline compared to June 2024. Notably, 40 percent of the capital came through debt instruments, reflecting cautious investor sentiment amid global macroeconomic uncertainty, according to Wamda’s monthly report.

The UAE reclaimed its position as the region’s top-funded market, with 13 startups raising $37 million — over 70 percent of total capital.

Egypt, which led in May, dropped to second with $6.2 million raised across six deals.

Tunisia followed, buoyed by a single $3.5 million seed round for water tech startup Kumulus. ��Ƶ saw a dip, raising only $3 million across six deals.

Fintech remained the leading sector, accounting for 74 percent of total capital across 10 deals.

Clean tech followed due to the Kumulus deal, while Web3 attracted $2 million across two rounds. Seed stage startups led early-stage activity, raising $10.6 million, while pre-seed rounds totaled $5 million. Only one series A deal was recorded, worth $100,000.

Startups with B2B models secured 78 percent of funding, while B2B2C and B2C startups lagged.

Mixed-gender founding teams captured 45 percent of capital but accounted for only four deals. Women-led startups raised just $223,200.

Topics: Arab startups TruKKer Ruya Partners Tarmeez Capital

Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

Updated 11 July 2025

Reuters

July 11, 2025 12:47

Global Markets — stocks fall, gold gains after Trump sets tariff sights on Canada

Updated 11 July 2025

Reuters

July 11, 2025 12:47

SYDNEY/LONDON: Global stocks fell on Friday after US President Donald Trump ramped up his tariff war against Canada, leaving Europe squarely in the firing line, sparking a modest investor push into safe havens like gold, while bitcoin hit a new record high.

The Canadian dollar fell after Trump issued a letter late on Thursday that stated a 35 percent tariff rate on all imports from Canada would apply from August 1, adding the EU would receive a letter by Friday.

The US president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15 percent or 20 percent tariff rate on other countries, a step up from the current 10 percent baseline rate.

This week he surprised Brazil, which has a trade surplus with the US, with duties of 50 percent, and hit copper, pharmaceuticals and semiconductor chips.

Aside from pockets of volatility in target currencies, stocks or commodities, markets have offered little in the way of reaction to the onslaught, leaving the VIX volatility index at its lowest since late February.

In Europe, the STOXX 600, which has risen 2.2 percent this week, fell 0.7 percent. Futures on the S&P 500 and the Nasdaq fell 0.6 percent, pointing to a retreat from this week’s record highs at the open later.

“The market is becoming a bit numb to these (tariff) announcements, and perhaps it’s not until we see hard data showing an impact that we (will) start to see the market reacting,” City Index strategist Fiona Cincotta said.

“Obviously, we’re getting more information through that does bring with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels ‘final’ still,” she said.

The dollar rose 0.3 percent against the Canadian dollar to $1.3695. The euro, which has lost nearly 1 percent in value since the start of July, was down 0.2 percent at $1.1683.

Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50 percent tariff on copper.

Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35 percent on Canada was not as bad as feared because most of the imports are still subject to exemptions under the US-Mexico-Canada Agreement.

“Now the tariff rate on imports from the EU ... That’s what we don’t know as yet,” Capurso said. “If you get something similar to (the US-China trade war in April), that’s going to be very destabilising.”

Wall Street indexes posted record closing highs on Thursday as AI chip maker Nvidia made history, bagging a market valuation above $4 trillion.

Gold rose for a third day in a row, up 0.6 percent to $3,342 an ounce, bringing gains for July so far to 1.2 percent. Treasuries got less of a safe-haven boost, as investor concern about the fragility of long-term US government finances prompted a selloff that pushed yields up.

Benchmark 10-year yields rose 3 basis points to 4.38 percent, adding to Thursday’s rise on the back of data that showed jobless claims unexpectedly fell last week.

The yen, which also typically behaves like a safe-haven, has been steadily weakening as the prospects dim for a US-Japan trade deal. The dollar was up 0.4 percent on Friday at 146.76 yen , set for a weekly gain of 1.6 percent, the biggest this year.

Bitcoin jumped 3.8 percent to $117,880, the highest on record.

Investors will be watching second-quarter corporate earnings next week to gauge the impact of Trump’s tariffs from April 2. JPMorgan Chase is due to release results on Tuesday, essentially kicking off the reporting period.

Topics: global markets

World oil market may be tighter than it looks, IEA says

Updated 11 July 2025

Reuters

July 11, 2025 12:25

World oil market may be tighter than it looks, IEA says

Updated 11 July 2025

Reuters

July 11, 2025 12:25

VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand.

The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus.

Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect.

“The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,” the agency said in a monthly report.

“Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.”

Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil.

Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.

Topics: Oil International Energy Agency (IEA)

��Ƶ’s road to 30% EVs by 2030 — will Tesla be the game-changer?

Updated 11 July 2025

Miguel Hadchity

July 11, 2025 11:52

��Ƶ’s road to 30% EVs by 2030 — will Tesla be the game-changer?

Updated 11 July 2025

Miguel Hadchity

July 11, 2025 11:52

RIYADH: Tesla’s arrival in ��Ƶ signals a turning point in the Kingdom’s ambitious electric mobility strategy, with close to half of its citizens now open to purchasing an electric vehicle.

With a target of 30 percent EV adoption by 2030 under Vision 2030, ��Ƶ has gained a powerful ally in Tesla — one that could accelerate progress through competitive pricing, charging infrastructure investments, and potential local manufacturing deals.

This move not only brings one of the world’s most recognizable EV brands to Saudi consumers but also supports the nation’s broader push toward sustainable mobility.

This is also set to be boosted with the launch of the Kingdom’s first homegrown EV brand, Ceer, with production set to begin in 2026.

In an interview with Arab News, Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice, noted that while EVs currently make up just over 1 percent of vehicle sales, consumer interest is rising. “Nearly half of Saudi citizens say they are considering an EV purchase in the coming years,” he said.

A win-win proposition

Tesla’s arrival comes at a critical time for the company and the Kingdom alike. The American automaker, facing increasing competition from Chinese rivals like BYD and declining sales in traditional markets, sees ��Ƶ as a promising new frontier.

Tricamo explained: “Tesla’s entry into the Saudi market is potentially a significant win-win situation. With its leadership position increasingly challenged by BYD and other manufacturers — and with sales declining in the US and Europe — Tesla is looking to open up new markets.”

He added: “��Ƶ, while investing heavily in public transport and mass transit, remains a car-centric country where Tesla’s brand is resonant. This makes the Kingdom a promising growth opportunity for the OEM (Original Equipment Manufacturer).”

Tesla’s Riyadh showroom and service center, along with pop-up stores in Jeddah and Dammam, introduce Saudi drivers to the Model 3, Model Y, and Cybertruck — a clear signal of the company’s long-term commitment to the region.

Alessandro Tricamo, partner at Oliver Wyman’s transportation and services practice. Supplied

Fixing infrastructure gap

One of the biggest roadblocks to mass EV adoption is ��Ƶ’s underdeveloped charging network. With just 101 public charging stations in 2024 — behind the UAE’s 261 — range anxiety remains a major deterrent for potential buyers.

Oliver Wyman’s Tricamo underscored the urgency of infrastructure expansion, saying: “Expanding the Kingdom’s charging infrastructure is arguably the single most critical factor in accelerating EV adoption. As of 2024, ��Ƶ has around 100 public charging stations, primarily concentrated in Riyadh.”

He added: “For comparison, the UAE has nearly three times as many, despite having only a third of ��Ƶ’s population.”

To address this, Saudi authorities are rolling out high-speed charging stations along key routes, including the 900 km Riyadh-Makkah corridor, which currently lacks any charging points. Tesla’s planned Supercharger network — open to other brands — could be a game changer if deployed swiftly.

However, rapid infrastructure expansion brings its own risks. Taline Vahanian, placement leader at Marsh UAE, an insurance broker and risk adviser, warned that high-speed charging stations, by their nature, handle significant electrical loads and integrate advanced digital control systems.

“This exposure brings a range of liability risks — from electrical malfunctions that might result in fires or physical injuries to property damage caused by system failures or cyberattacks,” she told Arab News, adding: “Additionally, integrating an array of new charging stations into an evolving power grid presents operational challenges such as voltage fluctuations, grid stability issues, and the necessity for specialized, regular maintenance.”

A new EV manufacturing hub?

Lucid is majority owned by the Public Investment Fund. Getty

While Tesla makes its retail debut, Lucid Motors — backed by ��Ƶ’s Public Investment Fund — is already establishing local production, with a Jeddah factory set to manufacture thousands of EVs annually. This positions the Kingdom as a potential regional EV production hub, reducing reliance on imports.

Vahanian highlighted the challenges of local production, saying: “On the supply chain front, vulnerabilities arise as the industry remains heavily dependent on imported components and critical raw materials. These dependencies are susceptible to international trade disruptions or logistical bottlenecks.”

She added: “Harmonizing standards and streamlining certification processes on the regulatory front will be crucial; any delays or misalignments with international standards could disrupt production schedules and cause cascading delays.”

Can EVs survive Saudi summers?

Extreme temperatures pose another major challenge for EV adoption. Lithium-ion batteries degrade faster in heat, raising concerns about long-term durability.

Tesla and Lucid are countering this with advanced liquid cooling systems and heat-resistant materials, while Saudi researchers are exploring solid-state batteries for better performance.

Vahanian emphasized the risks, saying: “In ��Ƶ’s harsh desert climate, battery safety is a paramount concern. EV batteries rely on sophisticated thermal management systems, yet extreme ambient temperatures can accelerate degradation and — even in rare cases — trigger thermal runaway or fire incidents.”

She added that compounding this risk is the “nascent state” of the charging infrastructure, which must contend with sand, dust, and persistent heat stress — all of which elevates the possibility of technical failures and unexpected downtime.

Taline Vahanian, placement leader at Marsh UAE. Supplied

Tricamo offered a more optimistic view: “I believe the impact of extreme heat on EV performance is often overstated. While high temperatures can pose challenges for batteries, such conditions are limited to certain periods, and battery technology is improving rapidly to support performance across a wide temperature range.”

He added: “EVs have been operating in the region for several years with virtually no performance issues. A more relevant environmental concern may be sand and dust, which can affect charging stations and equipment. But even here, mitigation measures are relatively straightforward and already well understood.”

Insurance and cost

Another hurdle is the higher cost of insuring EVs compared to traditional vehicles.

Vahanian explained that unlike traditional cars powered by internal combustion engines, EVs rely on sophisticated battery systems, state-of-the-art electronics, and specialized components that require expert handling.

“When collisions or mishaps occur, repairing these systems can be significantly pricier than conventional repairs. Limited availability of repair facilities and trained technicians — particularly in emerging markets like KSA — exacerbates these costs,” she said.

The Marsh UAE official added that insurers are adapting but warns of potential premium hikes: “Insurance companies, which traditionally set premiums based on anticipated claim payouts and repair costs, are therefore likely to face higher liabilities. In anticipation, we can expect a recalibration of premiums, reflecting a more accurate risk profile and the amplified repair costs associated with EVs.”

Vahanian went on to say: “Higher repair costs inevitably feed into the economics of risk assessment for insurers. As claims tend to rise with the complexity and expense of EV repairs, premium rates may correspondingly increase to maintain the insurers’ financial stability.”

She noted that higher EV insurance premiums could have a dual effect — while buyers are attracted by lower fuel costs and environmental benefits, steep insurance rates might weaken their appeal, particularly given the already high upfront costs.

The road to 2030

Despite these challenges, ��Ƶ’s EV revolution is undeniably gaining momentum. Tricamo stressed that government intervention will be crucial. “To accelerate the transition, targeted government intervention will be essential — both to level the playing field and to fast-track the decarbonization of mobility,” he said.

Tricamo added that petrol vehicles remain significantly cheaper to operate in the region due to low fuel prices and a lack of EV incentives, while limited charging infrastructure further hinders widespread adoption.

Vahanian echoed this sentiment, calling for collaboration between policymakers and insurers, saying: “By collaborating with insurance providers, policymakers can create schemes that provide favorable premium rates or bundled services, thereby alleviating consumer concerns and accelerating market penetration.”

Full speed ahead

With Tesla’s market entry, Lucid’s local production, and government-backed infrastructure investments, ��Ƶ is fast-tracking its EV transition. Yet hurdles like charging deserts, affordability, battery resilience, and insurance costs must be overcome to reach the 30 percent adoption goal.

Topics: electric vehicle (EV) Tesla

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