Oil Updates — prices ease as market weighs Trump tariff threats and US stock build
Oil Updates — prices ease as market weighs Trump tariff threats and US stock build/node/2610112/business-economy
Oil Updates — prices ease as market weighs Trump tariff threats and US stock build
US West Texas Intermediate crude for September dropped 17 cents, or 0.2 percent, to $69.83 a barrel. Shutterstock
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Updated 31 July 2025
Reuters
Oil Updates — prices ease as market weighs Trump tariff threats and US stock build
Market awaiting more clarity after Trump tariff threats
Higher US crude stocks were unexpected
Decline in gasoline stocks reflect driving season demand
Updated 31 July 2025
Reuters
LONDON: Oil prices fell on Thursday as investors weighed the supply risks from US President Donald Trump’s push for a swift resolution to the war in Ukraine through more tariffs, while a surprise build in US crude stocks on Wednesday also weighed on prices.
Brent crude futures for September, set to expire on Thursday, declined by 61 cents, or 0.83 percent, to $72.63 a barrel by 3:26 p.m. Saudi time. US West Texas Intermediate crude for September fell 68 cents, or 0.97 percent, to $69.32.
Both benchmarks lost ground on Thursday after recording 1 percent gains on Wednesday.
“The market front-runs the implications of President Trump’s announcements before remembering that these policy intentions can turn on a dime if he can strike a deal,” said Harry Tchiliguirian at Onyx Capital Group.
“We’re seeing a re-evaluation until there is more clarity,” he added.
Trump said he would start imposing measures on Russia, including 100 percent secondary tariffs on its trading partners, if it did not make progress on ending the war in Ukraine within 10-12 days, moving up an earlier 50-day deadline.
The US has also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying.
On Wednesday, the US Treasury Department announced fresh sanctions on more than 115 Iran-linked individuals, entities and vessels, stepping up the Trump administration’s “maximum pressure” campaign after bombing Iranian nuclear sites in June.
Meanwhile, US crude oil inventories rose by 7.7 million barrels to 426.7 million barrels in the week ending July 25, driven by lower exports, the Energy Information Administration said on Wednesday. Analysts had expected a draw of 1.3 million barrels.
Gasoline stocks fell by 2.7 million barrels to 228.4 million barrels, far exceeding forecasts for a draw of 600,000 barrels.
“US inventory data showed a surprise build in crude stocks, but a bigger than expected gasoline draw supported the view of strong driving season demand, resulting in neutral impact on the oil market,” said Fujitomi Securities analyst Toshitaka Tazawa.
Dubai property deals jump 44.5% in Q2 as off-plan sales drive growth
Updated 5 sec ago
Nirmal Narayanan
RIYADH: Dubai’s real estate market surged in the second quarter, with sales transactions climbing 44.5 percent year on year to 153.7 billion dirhams ($41.85 billion), a new report showed.
According to real estate advisory firm JLL, the performance highlights the resilience of the wider UAE property sector, where activity was dominated by the off-plan market and supported by strong launches in both Dubai and Abu Dhabi.
The growth aligns with a broader trend across the Gulf Cooperation Council, where property values and sales are rising in residential, commercial, and hospitality segments, fueled by economic diversification efforts.
In August, Kuwait Financial Center, also known as Markaz, said the GCC property market is set to extend its growth momentum into the second half of the year, supported by lower interest rates, government investment, and resilient investor demand.
“Dubai’s sales market is expected to maintain strong sales momentum despite anticipated price growth moderation,” JLL said.
It added: “This stabilization reflects an approaching supply-demand equilibrium, fostering a more sustainable pricing environment. The moderation will initially impact outdated inventory in secondary locations with the continual delivery of newer supply.”
In Dubai, residential demand continued to expand in the second quarter, with total sales transactions rising 22.8 percent year on year, driven largely by the off-plan segment.
An off-plan property is a unit purchased in advance of its completion, typically before construction begins, often at a discount and with a small deposit requirement.
The secondary market also performed strongly, posting a 17.1 percent annual increase, underscoring sustained demand across both segments.
JLL said Dubai’s rental market recorded substantial growth across both new contracts and renewals, indicating strong demand from new and existing tenants alike.
Compared with the second quarter of 2024, new contracts rose 14.3 percent in the same period this year, while renewals increased 9.9 percent.
“Although the volume of new contracts showed improvement compared to the prior year, renewals maintained dominance with a 63 percent majority share of total contracts, with new agreements comprising the balance,” said JLL.
In the second quarter, apartment prices in Dubai increased 13.3 percent year on year to 1,769 dirhams per sq. feet., while villa prices rose 16 percent to 2,200 dirhams per sq. feet.
On an annual basis, apartment rental rates in Dubai increased 7.2 percent, while villa rents rose 5.3 percent.
“Dubai’s rental market is transitioning toward equilibrium, evidenced by decelerating growth rates in the second quarter, which signals a shift to more sustainable long-term market dynamics despite potential near-term yield adjustments for investors and landlords,” said JLL.
Dubai’s residential inventory reached about 869,000 units in the second quarter, with 12,000 delivered between April and June.
A further 22,000 units are scheduled for completion in the second half of the year, mainly in Dubailand, Jumeirah Village, and Mohammed Bin Rashid City, with apartments making up roughly 70 percent of the upcoming supply.
Abu Dhabi market
In Abu Dhabi, average sales prices rose 12.1 percent year on year in the second quarter, while transaction volumes increased 9.1 percent. Growth was supported by a 32.6 percent jump in secondary sales, although off-plan deals continued to dominate overall activity.
“Rising consumer interest in luxury living experiences is expected to drive greater demand for Abu Dhabi’s branded residential segment. Investors benefit from these branded properties as they generally sell at higher price points than similar non-branded options, potentially yielding higher investment returns and maintaining their value more effectively,” said JLL.
Average apartment and villa sales prices in Abu Dhabi rose 14.4 percent and 11.1 percent, respectively, in the year to the second quarter of 2025.
In the capital, rental rates for apartments and villas increased 13.9 percent and 4.7 percent, respectively, by the end of the quarter.
Abu Dhabi added about 3,400 residential units in the second quarter, bringing total housing stock to around 292,000 units. Another 10,400 units are scheduled for completion by year-end.
MENA region with strongest global growth outlook over next year, says report
72 percent of surveyed chief economists predict weaker growth globally
Updated 23 September 2025
DUBAI: Global economic growth is expected to weaken over the next year, according to the World Economic Forum’s latest “Chief Economists’ Outlook” report.
Some 72 percent of surveyed chief economists predict weaker growth over the next year globally, citing shifts in trade, rising political uncertainty and rapid technological changes.
Advanced economies are expected to remain stagnant. In the US, more than half (52 percent) anticipate weak or very weak growth.
Still, 22 percent of chief economists expected moderate growth in April, but that number has now increased to 49 percent.
Europe’s outlook is improving, though cautiously. Some 60 percent of respondents expect moderate or strong growth over the coming year, up from 47 percent in April, while 40 percent expect weak growth.
However, emerging markets such as the Middle East and North Africa, South Asia and East Asia and the Pacific show a more optimistic outlook with one in three chief economists expecting strong or very strong growth in these regions.
MENA is leading the charge with the strongest growth outlook. Some 37 percent of chief economists predict strong or very strong growth, up from 22 percent in April.
The World Bank projects the regional economy to grow 2.7 percent in 2025, accelerating to 3.7 percent in 2026 and 4.1 percent in 2027.
Confidence in MENA’s growth is fueled by the region’s efforts to diversify its economies and its tech ambitions, reflected in artificial intelligence-focused partnerships with the US.
The report highlights ֱ’s Vision 2030 as a “flagship effort” for economic diversification, and Dubai’s drive to become a financial hub, demonstrating the UAE’s ability to foster a business-friendly environment.
Inflation expectations vary across regions. Chief economists (59 percent) anticipate high inflation in the US over the next year. In Europe, only 9 percent expect high inflation, with a substantial 88 percent expecting moderate or low inflation.
In MENA, 60 percent of respondents expect moderate inflation and 28 percent expect low inflation over the next year.
The report also warns that advanced and developing economies are on increasingly divergent growth paths, with 56 percent of chief economists expecting the gap to widen further over the next three years.
NASHVILLE: The CEO of a leading tech company has played down concerns over the environmental impact of data centers and said that in areas such as the Gulf there were green options for cooling.
Data centers generate a vast amount of heat and as such need to be continuously cooled.
It is already well documented that data centers are considered to negatively affect the environment through an enormous consumption of electricity in the cooling process, which in turn leads to greenhouse gas emissions and climate change.
The cooling process consumes a significant amount of water, which critics believe can strain local resources — especially in countries such as the UAE and ֱ where there are plans to create world leading data facilities.
Likewise, the rise of artificial intelligence is further increasing these demands for energy, water, and infrastructure.
But speaking on the sidelines of the Autodesk AU 2025: The Design & Make Conference the tech company’s president and CEO, Andrew Anagnost, told Arab News that he believed the benefits far outweighed any long-term impact.
And while acknowledging there was an impact, Anagnost added: “But it’s trivial relative to all the other usage out there in the world. And at the same time we’re able to optimize the usage of these tools to have less need for the computing process.”
The AU 2025: The Design & Make Conference was held in Nashville. Autodesk
According to a report published by the UN Environment Programme, on June 12, internet users worldwide have more than doubled while global internet traffic has expanded to 5.54 billion people worldwide.
The report also noted that the International Energy Agency estimated the data centers would “drive more than 20 percent of the growth in electricity demand between and 2030.”
The report went on to explain that many data centers also use significant volumes of water.
“According to the World Economic Forum, a one-megawatt data center can consume up to 25.5 million liters of water each year only for cooling, comparable to the daily water use of around 300,000 people,” the report added.
ֱ is already working on the creation of Humain, the Kingdom’s new AI company, with the construction of its first data centers in the Kingdom, which are expected to come online in early 2026.
The centers will be in Riyadh and Dammam, in the Eastern Province, and are expected to launch in the second quarter, each with an initial capacity of up to 100 megawatts.
Depending where you look, data centers can use anything from one megawatt to several hundreds — and in the same type of search up to 300 Saudi homes will use a single megawatt.
But Anagnost said the power used by these centers did not have to be taken from a country’s national grid and as such could be generated on a hyperlocal basis by methods such as nuclear or solar.
“I’m much more worried about other things such as carbon emissions, that are associated with other types of mechanisms and I am not worried about data centers and AI, because everybody’s already building these things to be self-sustaining and use power sources that are actually pretty green in terms of carbon emissions.”
He said that while water consumption was initially comparatively large, once circulated, the center’s water would be contained within and reused once treated and cooled.
The ease of cooling the water used to maintain a suitable temperature in data centers is dependent on differing factors such as the external temperature — in a cold a country the process can be eased by something as straightforward as leaving the door open to allow a flow of cooler air.
Anagnost said the planning in the design of data centers needed to be flexible.
Various factors create “absolutely different ways of passive and active cooling for centers … in the desert you have a lot more sun.”
And that sunlight he said, could be used to generate solar energy, which in turn could be used to power cooling systems.
Whatever the methods used for cooling, the collection of data in centers is going to continue as more processes become digitized.
The engineering and industry sectors waste 95 percent of all data collected.
The introduction of AI is gradually leading to more efficient production methods which can make these sectors and many others more cost effective and less wasteful, with the materials used and the data collected.
OECD upgrades ֱ’s economic growth forecast to 3.9% in 2026
Updated 23 September 2025
Nirmal Narayanan
RIYADH: ֱ’s economic growth forecast for 2026 has been increased to 3.9 percent by the Organization for Economic Cooperation and Development — up from the 2.5 percent projected in June.
In its latest “Economic Outlook,” the OECD said that the Kingdom’s gross domestic product will expand by 3.7 percent this year, higher than several of its G20 peers, including the US, the UK, Germany and France.
The projection made by the organization aligns with a forecast made by the International Monetary Fund in July, which said that the Kingdom’s economy will grow by 3.6 percent this year, before accelerating to 3.9 percent in 2026.
In its latest report, the OECD said that global economic growth is expected to decline from 3.3 percent in 2024 to 3.2 percent in 2025 and 2.9 percent in 2026.
“Global economic growth proved more resilient than anticipated in the first half of 2025, with the world economy expanding at an annualised pace of 3.2 percent,” said OECD.
It added: “The front-loading of goods production and trade ahead of the introduction of higher US tariff rates was an important source of support, with industrial production growth in the first half of the year exceeding the average pace of 2024 in most G20 economies.”
Collectively, G20 nations are expected to witness an economic growth of 3.2 percent in 2025 and 2.9 percent in 2026, with India bucking the trend amid economic volatility with a GDP expansion of 6.7 percent this year, before marginally decelerating to 6.2 percent in 2026.
The OECD added that China’s economy will grow by 4.9 percent and 4.4 percent in 2025 and 2026, respectively, while the US is expected to witness an economic growth of 1.8 percent in 2025 and 1.5 percent in 2026.
The economy of the UK is projected to expand by 1.4 percent in 2025 and 1 percent in 2026.
The French economy is forecast to expand by 0.6 percent in 2025 before slightly accelerating to 0.9 percent in 2026, and the OECD projects Germany’s economy to advance by 0.3 percent in 2025 and 1.1 percent next year.
The report further said that ֱ is expected to maintain a healthy inflation rate of 2.2 percent in 2025 and 2 percent in 2026.
“Inflation in most G20 economies is projected to fall as economic growth and labor markets continue to soften. Headline inflation is expected to decline from 3.4 percent in 2025 to 2.9 percent in 2026, while core inflation in advanced G20 economies remains broadly stable, easing only slightly from 2.6 percent to 2.5 percent,” said OECD.
In June, the IMF also said that inflation in ֱ is expected to remain contained, with the headline rate expected to remain 2.1 percent in 2025 and 2 percent in 2026.
ֱ deepens economic ties with China and Japan through ministerial visits
Updated 23 September 2025
Nour El-Shaeri
RIYADH: ֱ advanced its industrial and investment partnerships with China and Japan through two separate high-level ministerial visits aimed at expanding strategic cooperation, technology transfer, and private-sector investment.
In Beijing, Minister of Industry and Mineral Resources Bandar Alkhorayef met with leaders of ZGC Group, a government-backed innovation platform, to explore collaborations including advanced manufacturing, renewable energy, smart mobility, and aerospace technologies.
These discussions included plans for ZGC to establish operations in Riyadh in partnership with the National Industrial Development and Logistics Program.
These initiatives build on the growing depth of Saudi–China economic ties. China is ֱ’s largest trading partner, accounting for 14 percent of the Kingdom’s exports and 28.9 percent of its imports in May, according to official statistics.
Alkhorayef’s official visit to China, which runs from Sept, 22 to 26, includes a series of high-level meetings with senior Chinese government officials such as the minister of natural resources, the minister of industry and information technology, the chairman of the National Development and Reform Commission, and the chairman of the State-owned Assets Supervision and Administration Commission.
He is also scheduled to meet with executives from leading industrial and mining companies including BOE, Kyland, and TBEA, as well as Ganfeng Lithium, China Minmetals Corporation, and Gotion Hi-tech, with discussions focused on technology transfer, advanced manufacturing, and investment opportunities in ֱ.
As part of the program, the Ministry of Industry and Mineral Resources will sign a work plan with the China Mining Association to strengthen cooperation in the mining sector.
The initiative is expected to cover knowledge exchange, identification of mineral opportunities, and new efforts to support the growth of ֱ’s mining industry, a central component of Vision 2030.
The Kingdom will also participate as guest of honor at the China International Industrial Fair in Shanghai in November, where it will present its industrial transformation agenda and highlight opportunities for collaboration with Chinese partners.
ZGC also presented a detailed showcase of its key factories and future plans for establishing a presence in Riyadh.
In a press statement published on its official X handle, the ministry stated: “The visit aims to broaden economic partnerships between the two countries, attract high-quality investments, and transfer the latest technologies in the industrial and mining sectors.”
The minister's tour included visits to several ZGC subsidiaries. These included FlightWin, a company specializing in the manufacturing of helicopters and drones; UISEE, which develops autonomous vehicles used in airports and logistics operations; and China Power Energy Storage Energy, known for its innovations in energy storage and integrated renewable power systems.
ZGC Group’s potential entry into Riyadh through NIDLP highlights the relevance of its role as Beijing’s innovation platform.
The group supports companies across the “Idea–IP–Industry–IPO” chain, making it a strategic partner for localizing advanced manufacturing and research and development in ֱ.
Subsidiaries such as FlightWin and UISEE align directly with Vision 2030 goals.
FlightWin’s expertise in helicopters and unmanned aerial vehicles supports the Kingdom’s objective to localize 50 percent of defense procurement and expand aerospace services, while UISEE’s autonomous mobility solutions match efforts to digitize logistics and advance smart-city operations.
The focus on energy storage technology reflects ֱ’s broader renewable energy transition.
The Kingdom aims to generate 50 percent of its electricity from renewables by 2030. This has already created demand for large-scale storage.
Alkhorayef was joined by Saleh Al-Solami, CEO of the National Industrial Development Center, Jamil Al-Ghamdi, acting CEO of NIDLP, and other senior officials from the Saudi industrial and mining ecosystem.
Saudi-Japan ties strengthen with investment minister visit
In Japan, Minister of Investment Khalid Al-Falih chaired the 8th Saudi-Japan Vision 2030 Committee alongside Japan’s Minister of Economy, Trade and Industry Yoji Muto and State Minister for Foreign Affairs Hisayuki Fujii. The meeting reviewed bilateral progress and concluded with the signing of official minutes to reaffirm commitments under Vision 2030.
Khalid Al-Falih with Masayuki Hyodo, vice chair of Keidanren. X/@MISA
The high-level visit by Al-Falih highlights Saudi-Japanese collaboration, with trade between the two countries reaching $138.2 billion in 2024, making Japan ֱ’s third-largest trading partner, while Japanese investment in the Kingdom totaled $23.1 billion, focused on energy, water and waste management, transport and logistics, and manufacturing.
On its official X handle, the ministry stated: “The Minister of Investment Khalid Al-Falih met leading financiers at the Saudi-Japan Financial Roundtable to explore sectoral opportunities, financial complementarities, and global challenges, while advancing cooperation between peers in the Kingdom and Japan.”
It added: “Held under the Saudi–Japan Vision 2030 framework, the roundtable congregated 40 senior leaders of Japan’s major industrial firms. The Ministry of Investment–Keidanren Strategic Investment Platform was launched to foster quality investments and private-sector initiatives.”
Prince Faisal bin Bandar bin Sultan, chairman of the Saudi Esports Federation, and Masayuki Hyodo, vice chair of Keidanren, also took part in the roundtable discussions.
