THE EARLY PHOENIX
Market Overview
August 19, 2024
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Gulf Economy Gains After Historic Surge in Gold Prices
The Gulf’s economy is benefiting from the surge in gold prices, now exceeding $2,500 per ounce, driving increased market activity and potential profit growth. With financial markets heavily invested in gold, central banks in the Gulf may diversify reserves into gold, leveraging its stability. However, higher prices could dampen consumer demand for jewelry. This trend underscores gold’s critical role in the Gulf’s economic strategies, especially during global financial volatility, and could lead to significant shifts in the region’s economy.
Saudi Red Sea Signs 658 Million Riyals Contract for NEOM Staff Camp
Saudi Arabia’s Red Sea International has secured a 658 million riyal ($175.35 million) contract with Webleed S.p.A. to construct a staff camp for the Trojena Dam project within NEOM. The 12-month contract includes the design, manufacture, supply, and installation of prefabricated residential units and supporting buildings such as a mosque, dining halls, a medical clinic, and a gym. The project will be executed in two phases, with the first phase starting immediately and the second contingent upon client approval.
Qatar Sovereign Wealth Fund’s Assets Surge to $526 Billion
The Qatar Investment Authority, known as the Qatar Sovereign Wealth Fund, saw its assets increase by 22.6% since the beginning of 2024, adding $97 billion to reach a total of $526 billion. This growth was driven by significant returns from its diversified investment portfolio across various sectors and regions, along with gains in European and American markets. The fund maintained its position as the eighth-largest sovereign wealth fund globally, with an expenditure of $5.9 billion in 2023. Additionally, the Norwegian Sovereign Wealth Fund revealed its investments in Qatar, totaling $1.06 billion across 18 Qatari companies, including a significant stake in Qatar National Bank.
Kuwait Enforces Power Cuts Due to Fuel Supply Disruption
Kuwait implemented rolling blackouts in several residential areas on Sunday due to a fuel supply disruption that affected power stations and desalination plants. The state-run KUNA news agency reported the outages after scorching summertime temperatures, with highs reaching 43 degrees Celsius (109 Fahrenheit) and feeling like 53 degrees Celsius (127 Fahrenheit). Despite the harsh conditions, the blackouts impacted essential services across the desert emirate.
