Saudi PIF launches new company to run Expo 2030
DUBAI, June 19 (Reuters) - Saudi Arabia's $925 billion sovereign wealth fund PIF said on Thursday it had launched a new unit that will be responsible to build and operate the facilities for the Expo 2030 world fair.
The company will be called Expo 2030 Riyadh Company, PIF said in a statement to Reuters, adding that the masterplan for the project covered an area of 6 million square meters to the north of the city, close to the future King Salman International Airport.
Expo 2030 is set to take place the same year Saudi Arabia's de-facto ruler Crown Prince Mohammed Bin Salman's economic diversification plan culminates.
Under the programme, dubbed Vision 2030, the Gulf country is pouring billions in sectors including tourism to wean its economy off oil revenues.
Expo 2030 represents another large-scale building project that the kingdom has committed to on a strict deadline, even as its economy has been hamstrung by lower oil prices.
The kingdom faces a widening budget deficit with the International Monetary Fund saying Riyadh needs a price of oil of over $90 per barrel to balance its books.
Oil prices have jumped to mid-seventies in recent weeks as investors weighed the chance of supply disruptions from the Iran-Israel conflict.
Saudi Arabia is committed to hosting several other large international events in succession, each of which require significant spending on construction and development, including the 2029 Asian Winter Games and the 2034 World Cup.
Expo 2030 Riyadh is projected to attract more than 40 million visits and, once operational, it is expected to contribute around $5.6 billion to Saudi Arabia's GDP, PIF said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
37 minutes ago
- Reuters
World markets on oil watch as Middle East tensions flare
LONDON, June 20(Reuters) - Brent crude oil is up around 20% so far in June, and set for its biggest monthly jump since 2020 as Israel/Iran tensions flare-up. Although relatively contained, the rise has not gone unnoticed just three years after Russia's invasion of Ukraine triggered a surge in energy prices that ramped up global inflation and sparked aggressive interest rate hikes. Here's a look at what rising oil means for world markets. Oil prices have crept rather than surged higher with investors taking comfort from no noticeable interruption to oil flows. Still, pay attention. The premium of first-month Brent crude futures contract to that for delivery six months later this week rose to a six-month high as investors priced in an increased chance of disruptions to Middle East supply . It remained elevated on Friday. Trading at around $77 a barrel , oil is below 2022's $139 high, but is nearing pain points. "If oil goes into the $80-100 range and stays there, that jeopardizes the global economy," said ABN AMRO Solutions CIO Christophe Boucher. "We are just below that threshold." Traders have an eye on shipping, often seen as a key energy bellwether. About a fifth of the world's total oil consumption passes through the Hormuz Strait between Oman and Iran. Disruption here could push oil above $100, analysts say. Blocked shipping routes would compound any supply shock. Though the big oil producing countries that make up OPEC+ have promised an extra 1.2 million barrels a day, none has yet been shipped or delivered, said hedge fund Svelland Capital director, Nadia Martin Wiggen. Blocked shipping routes would mean this expected supply would not come into the international market, she said. She's watching freight rates closely. "So far, freight rates show that China, with the world's biggest spare refining capability, hasn't started panic buying oil on supply concerns," said Wiggen. "Once China starts to buy, freight rates will rise, and world's energy prices will follow." Rising oil prices raise worries because they can lift near-term inflation and hurt economic growth by squeezing consumption. High oil prices work like a tax, say economists, especially for net energy importers such as Japan and Europe as oil is hard to substitute in the short term. Lombard Odier's chief economist Samy Chaar said that sustained oil prices above $100 a barrel would shave 1% off global economic growth and boost inflation by 1%. Unease rose after Israel launched its strike on Iran a week ago. An initial rally in safe-haven bonds soon evaporated as focus turned to the inflationary impact of higher oil. The euro zone five-year, five-year forward, a closely-watched gauge of market inflation expectations, climbed to its highest level in almost a month . "In the United States $75 oil is enough to, if it's sustained, boost our CPI forecast by about half a percent by the year end, to go from 3 to 3.5%," said RBC chief economist Frances Donald. Turkey, India, Pakistan, Morocco and much of eastern Europe where oil is heavily imported are set to be hit hardest by the rise in crude prices. Those that supply it; Gulf countries, Nigeria, Angola, Venezuela and to some degree Brazil, Colombia and Mexico should get a boost to their coffers, analysts say. A shift is taking place in the dollar. In recent years the currency has risen when oil rallies, but it has had only limited support from oil's latest rise, with a weekly gain of just 0.4% . Analysts expect the dollar's downward trend to resume, given expectations of limited Middle East risks for now and underlying bearish sentiment. It has weakened around 9% so far this year against other major currencies, hurt by economic uncertainty and concern about the reliability of U.S. President Donald Trump's administration as a trading and diplomatic partner. No doubt, a weaker dollar heals the sting from higher oil, which is priced in dollars. "For oil-importing countries, the dollar's fall offers some relief, easing the impact of soaring oil prices and mitigating wider economic strain," UniCredit said. In the absence of an oil-supply shock, world stocks are happy to stick near all-time highs. "Investors want to look past this until there's a reason to believe this will be a much larger regional conflict," said Osman Ali, Goldman Sach's Asset Management's global co-head of Quantitative Investment Strategies. Gulf markets sold off on the initial news, then stabilised somewhat, helped by the higher oil prices. U.S. and European energy shares, particularly oil and gas companies have outperformed (.SPNY), opens new tab, (.SXEP), opens new tab, as have defence stocks. (.SXPARO), opens new tab Israeli stocks, (.TA125), opens new tab up 6% in a week, have been the most notable outperformer. Stocks of oil consumers have been the worst hit, airlines stand out.
Reuters
an hour ago
- Reuters
European shares rebound as worries of US involvement in Middle East ease
June 20 (Reuters) - European shares rebounded on Friday after three sessions of declines, as a stall in the United States' involvement in the Middle East conflict came as a relief to worried investors. The pan-European STOXX 600 (.STOXX), opens new tab was up 0.4% at 537.98 points at 0708 GMT. The benchmark is on track to log weekly declines for a second week. Israel and Iran's air war entered a second week and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential U.S. involvement would be made within two weeks. The news improved market mood and helped recover some interest in risk assets that were being sold off during the week on uncertainty around how long the conflict would go on. In the market, travel and leisure stocks (.SXTP), opens new tab gained the most, up 1.1%, as oil prices eased. Conversely, energy shares (.SXEP), opens new tab were at the bottom of the index with a 0.7% decline, trimming some gains from this week. Among stocks, London's Berkeley (BKGH.L), opens new tab was the biggest percentage decliner, down 8%. The homebuilder named current finance chief Richard Stern as its new CEO, but reported an annual pre-tax profit slightly ahead of market expectations.
Scottish Sun
2 hours ago
- Scottish Sun
Transfer news LIVE: Wirtz to Liverpool announcement IMMINENT, Quansah to Leverkusen advancing, Leao to Bayern latest
All recommendations within this article are informed by expert editorial opinion. If you click on a link in this story we may earn affiliate revenue. IN AND OUT IN AND OUT Transfer news LIVE: Wirtz to Liverpool announcement IMMINENT, Quansah to Leverkusen advancing, Leao to Bayern latest THE thrills and spills of the summer transfer window are well underway with some huge deals in the pipeline. Florian Wirtz's stunning £116million move to Liverpool could be confirmed as soon as Friday. Elsewhere, Jarell Quansah is set to go the other way to Wirtz, and join Bayer Leverkusen. In other news, Bayern Munich are continuing to monitor the situation of Rafael Leao, as they search for a new winger. FOLLOW THE CLUB WORLD CUP ON DAZN Follow ALL the latest news, moves and completed deals with our live blog below...
