Saudi

Iran-backed Houthi militants in Yemen say they carried out drone and ballistic missile attacks on the Saudi capital Riyadh, as well as energy sites on the country’s Red Sea coast.

Saudi authorities said they intercepted and destroyed a ballistic missile fired at Riyadh earlier that day, without confirming any further strikes or causalities.

Earlier, a column of black smoke was seen rising from fuel tanks near the Saudi capital’s international airport, where flights were disrupted temporarily on Saturday.

Air raid alerts had sounded in the capital for the first time since the Iran-backed Houthis increased their attacks on Saudi Arabia in July.

Air defences also stopped “hostile attempts to target civilians” in the cities of Bish, Taif, Farasan and Yanbu, an official spokesperson for the Saudi-led coalition said in a statement.

In a statement posted online, Houthi military spokesman Yahya al-Sarea said a “large number of ballistic and cruise missiles and drones” had been used to attack “sensitive sites” in Riyadh and Aramco state oil and gas company facilities in Yanbu on the coast.

He added that the attacks were “in response to the Saudi enemy’s criminal attempts” to target the Yemeni capital Sanaa.

Earlier, Sarea had accused Saudi Arabia of carrying out 300 strikes across Yemen during the past week.

The Houthis are locked in a civil war with Yemen’s internationally recognised government, which is backed by Saudi Arabia.

They have attacked targets inside Saudi Arabia on several occasions in recent months, and said this week that they were responsible for downing a Saudi fighter jet over Yemen.

According to an unconfirmed report from AFP news agency, quoting military sources on both sides of Yemen’s civil war, fighting between the Houthis and Saudi-backed government forces claimed 48 lives on Saturday.

The Houthis said 31 of their fighters had been killed while government sources said their side had lost 17 soldiers, according to the news agency.

On Friday, the International Organization for Migration, a UN body, reported that the number of people displaced as a result of recent fighting had passed 104,796, external.

The war in Yemen intensifies with mounting clashes and reciprocal attacks between Saudi forces and the Houthis.

Yemen’s Houthi rebels have said Saudi Arabia carried out 26 strikes against areas under the group’s control in the past 24 hours, as the two sides continue trading attacks amid an escalating war in Yemen, according to the AFP news agency.

On Friday, the group claimed Saudi strikes on Houthi-held territory had reached 300 over the past week alone, hitting positions across the areas it controls, AFP reported.

Yemen’s government, backed by Saudi Arabia, said on Friday its forces had killed 30 Houthi rebels and wounded more than 60 in clashes in the al-Wazi’iyah district of Taiz province, one of several fronts where combat has picked up this week.

The exchange has come on the heels of a widening escalation of fighting in Yemen between the government’s military and the Houthi fighters.

Tens of thousands marched through Sanaa on Friday in a show of support for the Iran-backed Houthis and against Saudi Arabia, as the rebels press gains that have brought large stretches of Yemen’s Red Sea coast, including the strategic Bab al-Mandeb Strait, under their control.

Earlier this week, the intensifying attacks between the Yemeni government and the Houthi rebels killed at least five people, including three children, according to reports from both sides.

Saudi Arabia said one person was killed in the Taif governorate after a Houthi drone was intercepted, while Houthi-linked media reported deaths from Saudi strikes in Taiz and the town of Abs.

The escalation has drawn in Washington, though reluctantly.

US officials met Houthi representatives at the US embassy in the Omani capital, Muscat, over the weekend after the group’s rapid territorial gains raised concern over shipping through Bab al-Mandeb, a vital corridor for global trade.

The Houthis reportedly assured Washington that vessels not linked to Saudi Arabia would not be targeted.

Despite appeals from Riyadh for US President Donald Trump to strike the Houthis directly, Washington has so far held back, wary of opening a new front while still fighting a costly war with Iran.

Meanwhile, European Union foreign policy chief Kaja Kallas said on Friday the bloc’s Red Sea naval mission, Operation Aspides, had raised its alert level as the situation in the region worsened, the Reuters news agency reported.

“Houthi attacks on Saudi Arabia are unacceptable and sabotage the global economy,” Kallas said in a post on X.

She added that she had spoken with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud about diplomatic efforts to end the fighting in Yemen and restore freedom of navigation in the Strait of Hormuz.

The U.S. State Department today approved the possible sale of 48 F-35 Lightning II Joint Strike Fighters to the Kingdom of Saudi Arabia.

The proposed deal, worth an estimated total cost of $24.3 billion, was announced as the Kingdom is in the midst of a fierce fight against the Houthi rebels of Yemen. It marks a major policy shift, with Washington previously being unwilling to export the advanced stealth fighters to Arab states and will likely serve as a reminder at a very challenging time for the Saudis of the unique security capabilities that only the U.S. can provide them.

In addition to the jets, which will be conventional takeoff and landing variants, Saudi Arabia has requested 49 Pratt & Whitney F135-PW-100 engines, support and other items.

Despite concerns from Israel that providing Saudi Arabia with the advanced fighters will tip the balance of power in the region, the proposed sale of this equipment and support “will not alter the military balance in the region,” the State Department noted. 

The United States has a requirement to maintain Israel’s so-called qualitative military edge, which essentially guarantees that Israel will be prioritized for advanced U.S. weapons ahead of Arab states in the region. Among these advanced weapons, the stealthy F-35 is highly prominent.

You can read our past feature about the wide-ranging impacts of an F-35 sale to Saudi Arabia here.

“This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a major non-NATO ally that is a force for political stability and economic progress in the Gulf region,” the State Department wrote. “The proposed sale will improve Saudi Arabia’s capability to deter current and future threats by strengthening its homeland defense, and improving interoperability with U.S. forces, and other regional and NATO forces.  The proposed sale will also augment Saudi Arabia’s operational aircraft and enhance its air-to-air, and air-to-ground self-defense capability.  The Kingdom of Saudi Arabia will have no difficulty absorbing this equipment and services into its armed forces.”

In November, “President Trump approved a major defense sale package, including future F-35 deliveries, which strengthens the U.S. defense industrial base and ensures Saudi Arabia continues to buy American,” according to the White House.

Trump has pushed for closer ties between Israel and Saudi Arabia and wants the Kingdom to join the Abraham Accords initiative. This is a set of agreements that establish normalized diplomatic relations between Israel and different Arab states. Doing so would be a major breakthrough, following the United Arab Emirates, Bahrain, Morocco, and others.

A Saudi F-35 deal was also discussed under the Biden administration, as part of a broader deal that sought to normalize the Kingdom’s relations with Israel.

This is a developing story.

Contact the author: howard@twz.com

Intensifying attacks between Saudi Arabia and Yemen’s Houthis have reportedly killed at least five people in total, including three children.

At least one person – a Yemeni resident in Saudi Arabia – was killed, and two others were injured after a Houthi drone was intercepted in Saudi Arabia’s southwestern governorate of Taif on Thursday, according to the kingdom’s civil defence agency.

It is the first death announced in Saudi Arabia this month since Yemen’s Iran-allied Houthis intensified their attacks.

In Yemen on Thursday, the Houthis said “Saudi enemy warplanes targeted three telecommunications towers” in Taiz province.

One civilian was killed in Taiz and another injured in strikes on the town of Abs, Yemen, said Houthi-linked Almasirah television.

Houthi-backed media later reported that “three children were killed and several Yemeni nationals were injured in strikes by the Saudi-backed mercenaries”, a reference to the country’s internationally recognised government forces.

Houthis reject claim they attacked Mecca

The escalation comes as Saudi Arabia said a drone was launched by the Houthis towards Mecca before being intercepted and destroyed.

“It’s a heinous lie,” Houthi leader Abdel-Malik al-Houthi said in a live televised address on Thursday, calling Saudi claims that his group would target Islam’s holiest city “a great propaganda”.

“The sanctity of Mecca is particularly important to the people of Yemen,” he said while accusing Saudi Arabia of “weaponising lies” to serve its war objectives against the Houthis.

Reporting from the Yemeni capital Sanaa, Al Jazeera’s Yousef Mawry said: “Al-Houthi’s speech is not just directed towards the Yemeni people; it is directed to the world to set the record straight that the Houthis did not target the holy city of Mecca, as the Saudis claim.”

In his address, al-Houthi also said Saudi Arabia had initiated the latest round of conflict in Yemen and that Houthi forces are acting defensively.

Meanwhile, Rashad al-Alimi, the head of Yemen’s Saudi-backed Presidential Leadership Council, said that Houthi forces are suffering heavy blows on the fronts in Taiz, Marib, Lahj, al-Jawf, Hajjah, al-Bayda al-Dhale.

In a meeting with the French ambassador to Yemen, al-Alimi said that gains made by the Houthis along the Red Sea coast are temporary, the state-run Saba news agency reported.

Aggression against Mecca ‘a condemned act’

Esmaeil Baghaei, Iran’s Ministry of Foreign Affairs spokesperson, said in a statement on X on Thursday that any aggression against Islamic holy sites, particularly Mecca, “is a condemned act”.

But he added that “a mere claim” of intercepting a drone “en route to Mecca” is not enough to accuse the Houthis of the act.

“Nor should we forget that our region has witnessed numerous instances of ‘false flag’ operations, particularly in recent months,” Baghaei said while pointing at Israel.

Meanwhile, China ⁠has privately asked Iranian officials to help rein in the ⁠Houthis after Saudi Arabia appealed to Beijing following recent Houthi attacks, anonymous sources in Iran told the Reuters news agency.

Beijing publicly called for restraint, dialogue and the restoration of safe navigation, but its private message went further than that, Reuters reported.

The escalation is also threatening to draw in other regional actors – specifically Saudi defence partners Pakistan and Turkiye, which signed a joint defence agreement with the kingdom last month.

Pakistan’s Defence Minister Khawaja Asif said the time has come to implement the Mecca agreement with Saudi Arabia and Turkiye due to recent Houthi attacks.

Asif’s comments to Pakistani media on Thursday were made as Iran’s Foreign Minister Abbas Araghchi said he’d held a phone conversation with Pakistan’s army chief Asim Munir to discuss “regional developments”.

JEDDAH: Around 150 senior business leaders, investors and policymakers will gather in Riyadh on Sept. 29 to examine the forces expected to shape Saudi Arabia and wider MENAT economies over the next five years.

Forum to examine five-year economic outlook

The inaugural Economic Forum by Servcorp, powered by Emerging Markets Intelligence & Research, or EMIR, will examine the broader forces shaping the Kingdom and the wider Middle East, North Africa, and Turkiye, or MENAT, according to a press release.

As Saudi Arabia continues to advance its Vision 2030 agenda, the forum will use the Kingdom as its base while adopting a broader MENAT perspective.

Its five-year outlook will focus on the longer-term forces shaping business and policy decisions, drawing on Servcorp’s regional experience and EMIR’s economic intelligence to connect global developments with the practical realities of operating across MENAT.

Leaders to discuss regional growth and business priorities

“After more than 25 years supporting businesses in the region, we know that ambition creates value only when it is translated into execution,” CEO, Middle East, Europe, and America at Servcorp, David Godchaux, said.

Godchaux added that leaders must decide where to commit, which capabilities to build and which priorities to defer, yet the context for making those decisions is becoming more complex.

He added that the Economic Forum by Servcorp would provide a setting for candid, peer-level discussions on the decisions that will shape the region’s next phase of growth.

“The Economic Forum by Servcorp will provide a setting for candid, peer-level discussions on the decisions that will shape the region’s next phase of growth,” he said.

Saudi Arabia has intensified air strikes against Houthi positions in Yemen as the Iran backed group expands its territorial gains along the Red Sea coast, opening a new front in the wider Middle East war and adding pressure to already disrupted global energy supplies.

The Houthis have swept through several Yemeni towns and seized islands near the Bab el Mandeb Strait, a strategically important maritime route connecting the Red Sea with the Gulf of Aden. The group has also released footage showing its fighters capturing armoured vehicles from Saudi backed forces.

Houthi military spokesman Yahya Saree claimed that the group had shot down a Saudi F 15 fighter jet and said Saudi Arabia had conducted as many as 450 air strikes in Yemen during the week. Saudi authorities have not confirmed the aircraft claim, while officials supporting the internationally recognised Yemeni government have acknowledged that Saudi and allied forces are carrying out strikes against Houthi positions.

Saudi Arabia faces growing security pressure

The escalation has brought the conflict closer to Saudi territory. The Houthis have repeatedly launched attacks toward Saudi Arabia over the past week, prompting alarms in cities across the kingdom’s south and west.

Saudi Arabia said its air defenses intercepted a Houthi drone south of Mecca before it entered restricted airspace over the holy city. Riyadh described the incident as a serious escalation because of the threat to religious sites. The Houthis denied targeting Mecca and accused Saudi Arabia of using the incident for propaganda.

The United States has also tightened its travel warning for Saudi Arabia, barring government employees from travelling within 20 miles of the Yemen border.

The latest escalation marks a sharp deterioration after several years in which the Saudi led conflict in Yemen had largely quietened under a ceasefire. The Houthis declared a naval blockade against Saudi Arabia in July and resumed attacks on areas in the kingdom before making rapid gains against forces aligned with the Saudi backed Yemeni government.

Energy markets face another shock

The renewed fighting is particularly significant because global energy markets are already under pressure from disruptions caused by the wider war involving Iran.

An attack blamed on Iran aligned fighters in Iraq last week knocked out Saudi Arabia’s East West Pipeline, an important route that allows the kingdom to move oil without relying entirely on the Strait of Hormuz.

Traders estimate that a prolonged closure of the pipeline could affect as much as 4% of global oil supply. Saudi Arabia has not given a timetable for restoring operations, although U.S. Energy Secretary Chris Wright said oil should begin flowing through the pipeline within days.

Brent crude was trading around $108 a barrel on Wednesday, close to its highest level since May. The average U.S. retail diesel price also reached a record above $6.30 a gallon.

The simultaneous disruption around the Strait of Hormuz and Saudi Arabia’s alternative export infrastructure increases the vulnerability of global energy markets to further regional escalation.

Washington faces another difficult choice

The developments also create a new challenge for the United States.

Saudi Crown Prince Mohammed bin Salman spoke with President Donald Trump last week seeking additional military support. So far, U.S. assistance has been limited to intelligence support.

The United States previously conducted a two month bombing campaign against the Houthis in 2025 before Trump announced a ceasefire with the group.

Washington now faces competing pressures. Greater support for Saudi Arabia could help contain the Houthi advance and protect regional energy infrastructure, but deeper military involvement could also expand the U.S. role in another theatre of the Middle East war.

What’s next

The immediate concern is whether the Houthi advance can be contained before the fighting causes further disruption to Saudi energy infrastructure and shipping routes.

For Saudi Arabia, the challenge is to push back against the Houthis while preventing the conflict from developing into a broader regional confrontation.

For global markets, the key issue will be whether disruptions to Saudi oil infrastructure remain temporary. Continued attacks on energy facilities or shipping routes could place additional pressure on already strained supplies.

The developments in Yemen therefore carry consequences well beyond the country’s existing conflict. The combination of Houthi territorial gains, pressure on Saudi Arabia and disruption to major energy routes has created another potential source of instability for the global oil market.

With information from Reuters.

Saudi digital payments company barq announced the close of a series A funding round worth $329.5 million, at a valuation of $1.85 billion, marking a new milestone that reflects the growth the company has achieved since its launch. The funding round cements its position among the fastest-growing fintech companies in Saudi Arabia and the region.

The round saw participation from Noon Investments, Sohar International Bank, and M20 Fund, a step that reflects investor confidence in barq’s trajectory and future potential, and underscores the appeal of the investment opportunities emerging in the fintech sector across the Kingdom and the region.

The round follows a standout growth journey for barq, which has now surpassed 15 million users within two years, from more than 210 nationalities, alongside the expansion of its ecosystem of digital financial services and solutions — reflecting the growing demand for the company’s products and its ability to build a broad user base within a record period of time.

The value of funds processed has also surpassed SR440 billion ($117.2 billion), an indicator that reflects the scale of activity barq has achieved and the widening use of its digital financial services since launch.

Based on its valuation, barq has become one of the fastest companies in the region to reach unicorn status, and among the fastest globally within the fintech sector, reflecting the pace of growth the company has achieved within a short period since its launch.

The funding round will support barq’s next phase of growth, by strengthening operational efficiency, accelerating the development of products and services, investing in new financial and technology solutions, and expanding into new regional and international markets — contributing to delivering a more advanced and accessible digital financial experience for users.

This achievement comes at a time when Saudi Arabia’s fintech sector is undergoing exceptional development, driven by continued progress in financial and digital infrastructure, a supportive regulatory environment, the targets of Saudi Vision 2030, and the Saudi Central Bank’s efforts to advance digital payments and support innovation in financial services.

The close of the round marks a major milestone in barq’s journey, reflecting its ability to move within a short period from a phase of rapid growth to building a broad-scale digital financial platform, underpinned by a growing user base, an increasing volume of operations, and expansion ambitions aimed at strengthening its presence in the fintech sector at both the regional and international levels.

JEDDAH: Saudi Arabia’s Tadawul All Share Index held firm on Wednesday, losing just 1.66 points, or 0.02 percent, to close at 10,779.96 

As investors traded around 168 million shares worth nearly SR3.5 billion ($933 million), 113 stocks advanced and 147 declined. 

The Kingdom’s parallel market Nomu lost 2.77 points, or 0.01 percent, to close at 21,376.05, with 30 companies gaining and 33 declining. The MSCI Tadawul 30 Index also fell 0.08 points, or 0.01 percent, to close at 1,450.01. 

Market movers 

The main market’s top performer was Raydan Food Co., whose share price increased 10 percent to end the session at SR16.28, while Nofoth Food Products Co. recorded a 9.87 percent increase to close at SR6.57.

Ataa Educational Co. also increased 4.75 percent to end the day at SR42.76. 

On the losing side, Armah Sports Co. decreased 4.92 percent to close at SR67.60, while Flynas Co. declined 4.46 percent to end the session at SR42.02.

Sumou Real Estate Co. also declined 4.13 percent to close at SR25.08. 

Corporate disclosures 

Saudi Vitrified Clay Pipes Co. said Laffan Pipes Co., or Laffan Saudi, has been converted from a one-person limited liability company into an unlisted Saudi joint stock company with issued capital of SR45.5 million, according to a Tadawul filing. 

Laffan Pipes Factory Co. of Qatar has completed its admission as a shareholder through a capital increase against an in-kind contribution, giving it a 45 percent stake in Laffan Saudi, while SVCP retains the remaining 55 percent. 

Laffan Saudi’s issued capital comprises 45.5 million ordinary shares, each with a nominal value of SR1, and has been fully paid through in-kind contributions.  

The development follows an MoU signed between the two companies in February 2024 and a partnership agreement signed about six months later. 

SVCP’s shares declined 3.12 percent to close at SR17.99. 

In another disclosure, Umm Al-Qura for Development and Construction Co. said it signed an agreement to sell a 2,500-sq.-meter plot within Masar Destination in Makkah to Rawajeh Real Estate Co. for SR168.91 million. 

The boulevard-facing plot, located in Zone 2 of Masar Destination, has a book value of SR76.01 million. 

Umm Al-Qura, whose shares rose 2.50 percent to SR17.20, said the sale is part of its development strategy for Masar Destination, with the plot to be developed as a residential tower.

The transaction is expected to have a positive impact on liquidity and financial results, with proceeds to be used to finance working capital and ongoing projects. 

In a separate Tadawul filing, CATRION Catering Holding Co. said it signed an agreement with Air Arabia DMM Co. to provide inflight catering services under a five-year contract valued at an estimated SR200 million.  

Under the agreement, CATRION will provide inflight catering services, sell onboard food, beverages and other supplies, and provide logistics services to Air Arabia.  

The agreement was signed on Sept. 15 and is expected to have a financial impact beginning in the fourth quarter of 2026. 

CATRION, whose share price fell 0.74 percent to SR67.25, said the agreement is part of its strategy to sustain business, strengthen long-term partnerships with airline-sector clients, support growth, diversify revenue streams and enhance operational efficiency. 

RIYADH: Saudi Arabia has surpassed its goal of training 1 million people in AI through a new initiative that embeds ethical use and safety standards into national skilling programs

Speaking at the 4th UNESCO Global Forum on the Ethics of AI in Riyadh, Ahmed Al-Ghamdi, CEO of the Saudi Data and AI Authority’s capacity building sector, said: “We launched SAMAI (One Million Saudis in AI initiative) last year to train 1 million in AI, raise awareness and provide them with the knowledge and skills to use AI in life and in their work.

“We trained more than that number and an important part of the training focused on ethical AI, responsible use and data preservation,” he told Arab News.

The UNESCO forum is co-hosted by Saudi Arabia, represented by the SDAIA and the International Centre for AI Research and Ethics. 

Al-Ghamdi said that the forum had brought together more than 25 ministers from around the world, as well as global leaders and tech companies under the umbrella of UNESCO to shape the future of AI safety and responsible use.

SAMAI was part of a broader push to invest in capability building across national sectors and entities, enabling them to develop the skills needed to adopt AI safely and effectively, he said.

“In SAMAI we provided training with knowledge on what data to show and what tools to use safely.”

Al-Ghamdi said that ethical AI was positioned as a core element across the SDAIA’s training programs and frameworks, rather than a standalone topic.

The authority announced national frameworks and curricula for AI in January as part of efforts to align education pathways with national needs.

Additional capacity building frameworks were also announced at the International Conference on Data and AI Capacity Building, aimed at professionals, educators and training programs to support wider adoption across the economy, Al-Ghamdi said.

“For example, for the developers it includes training the right model on the right data, avoiding bias, and not using AI for fraud or any violence,” he said.

“It includes respecting the data privacy of people and organizations and complying with data laws within the country and within the world.”

The pace of AI advancement had raised the stakes globally, making governance and ethics central to discussions about safe deployment and public trust, he said.

“The ethics of AI comes in the heart of all activities of capability building in SDAIA. We believe the ethical use and the safety of AI are a priority for us.”

RIYADH: Saudi Arabia’s inflation held at 1.8 percent in August for the fourth-straight month, as housing, food and transport costs continued to drive consumer prices higher, official data showed. 

The annual increase matched July’s reading, while the Consumer Price Index rose 0.1 percent from the previous month, according to data from the General Authority for Statistics. 

This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 3.9 percent, food and beverage prices by 1.4 percent, and transport prices by 2 percent, the report added. 

Saudi Arabia’s inflation remains relatively subdued compared with some regional peers.

Oman’s rate accelerated to 3.4 percent in August, driven by an 8.5 percent increase in transport costs and a 7 percent rise in food and non-alcoholic beverages, while inflation averaged 2.9 percent in the first eight months.

Jordan’s inflation stood at 2.66 percent in August, taking the average for the first eight months to 2.20 percent.  

This comes as Kamco Invest said in a report last month that regional tensions could fuel inflation by pushing up oil prices and disrupting fertilizer exports, although inflation across the Gulf Cooperation Council remained subdued in June and July. 

In its latest report, GASTAT stated: “The housing, water, electricity, gas and other fuels division was the main contributor to the annual inflation with a contribution of 0.8 percentage points, followed by the food and beverages division with a contribution of 0.3 percentage points, in addition to the transport division with a contribution of 0.3 percentage points.” 

Since housing remains the single largest driver of Saudi CPI, authorities have leaned heavily on real estate interventions to keep it in check. A five-year freeze of annual rent increases for new and existing residential and commercial contracts within Riyadh’s urban boundaries took effect in September last year. 

Housing and personal care lead gains 

The housing, water, electricity, gas and other fuels division rose 3.9 percent year on year, largely due to a 3.9 percent increase in actual rents.  

The personal care, social protection and other goods and services division followed with a 3.5 percent annual rise, pushed up by a 13.3 percent jump in other personal effects, itself driven by a 14.4 percent surge in jewelry and watch prices.  

Recreation, sport and culture climbed 2.8 percent, helped by a 4.7 percent rise in holiday package prices. 

On the downside, furniture, home appliances and routine home maintenance fell 0.6 percent, while clothing and footwear slipped 0.5 percent. 

Monthly movements mixed  

On a monthly basis, personal care, social protection and other goods and services rose 0.8 percent in August, transport gained 0.6 percent, and insurance and financial services rose 0.5 percent.  

Housing costs edged up 0.2 percent on a 0.2 percent rise in actual rents. Food and beverages slipped 0.1 percent, while restaurants and accommodation services fell 0.4 percent, the steepest monthly decline among divisions. 

Average prices show sharp swings 

A separate GASTAT report on average prices of goods and services showed some of the sharpest monthly moves came from fresh produce and construction inputs.  

Local onions posted the largest monthly gain of any tracked item, up 17.9 percent, followed by imported onions at 11.6 percent, medium local potatoes at 7 percent, and local zucchini at 6.7 percent.  

Hotel accommodation rose 2.5 percent, while furnished apartments increased 2.8 percent on the month.  

On the other side, local tomatoes recorded the steepest monthly drop at 15.2 percent, followed by imported tomatoes down 9.3 percent and medium African lemons down 9.2 percent.  

Among construction materials, national reinforcing iron of various diameters fell between 1 and 2 percent month on month, while national electrical cables and wires rose broadly, led by a 25.7 percent annual increase in 35mm cables. 

Wholesale Price Index 

Saudi Arabia’s Wholesale Price Index stood at 4.6 percent in August, down from 5 percent in July, GASTAT said.  

This was driven mainly by an 8.2 percent jump in other transportable goods, excluding metal products, machinery and equipment, on the back of a 51.4 percent surge in basic chemical prices and a 4 percent rise in refined petroleum product prices.  

Metal products, machinery and equipment prices rose 2.2 percent annually, while agriculture and fishery products increased 4.8 percent. Ores and minerals prices fell 1.8 percent. 

“On a monthly basis, the WPI recorded a decline of 0.2 percent in August compared to July 2026,” the report noted, weighed down by a 1 percent drop in other transportable goods and a 2 percent fall in ores and minerals, even as metal products, machinery and equipment rose 0.8 percent and food, beverages, tobacco and textiles gained 0.6 percent. 

Producer Price Index 

Separately, Saudi Arabia’s Producer Price Index for July — the most recent data available — recorded a 5.3 percent annual increase compared with July 2025, according to GASTAT.  

The rise was driven by a 5.5 percent increase in manufacturing prices, a 2.3 percent rise in electricity, gas, steam and air-conditioning supply prices, and a 6.8 percent increase in water supply, sewerage and waste management activity prices. 

Within manufacturing, prices for chemicals and chemical products jumped 13.1 percent annually, wearing apparel rose 12.9 percent, and basic metals climbed 8.8 percent.  

On a monthly basis, however, the PPI fell 2.8 percent in July compared with June, mainly on a 3.0 percent decline in manufacturing prices, led by a 6.8 percent drop in refined petroleum product prices. 

RIYADH: David Livingstone, chief client officer at Citigroup, believes investor appetite for Saudi debt issuances reflects confidence in the Kingdom’s long-term story, while Gulf countries remain capable of maintaining their positive performance in debt markets despite higher yields and increased global supply.

Livingstone said in an interview with Nour Amache on the “East-West” program on Asharq Business with Bloomberg that the performance of Saudi sovereign issuances, as well as those of the Public Investment Fund, demonstrated the resilience of Saudi Arabia’s market and continued demand from international investors, despite the obstacles created by the Iran war this year.

Livingstone’s comments came after the Kingdom raised $3.25 billion through international sukuk in early September, attracting orders of around $16.5 billion, or more than five times the issuance size. Saudi Arabia tightened the pricing spread by about 30 basis points from the initial guidance.

The Citigroup head added that the pricing adjustment “demonstrates confidence in this long-term story,” placing it within the context of the transformations underway in the Kingdom under Vision 2030.

The comments came after Citigroup helped its clients in Saudi Arabia raise more than $40 billion since the beginning of the year. The bank also decided to increase its direct exposure limits to the Kingdom after it demonstrated “strong economic and financial resilience,” according to CEO Fahad Al-Deweesh.

Debt-market pressures

Higher global yields and increased government borrowing will give investors a wider range of choices in the bond market, Livingstone said, noting upward pressure on yields amid abundant debt supply in emerging markets, Europe, the UK and the US.

Despite this, he said that “Saudi Arabia, and Gulf countries as a whole, can continue this positive performance compared with the recent past.”

Yasir Al-Salman, chief financial officer at the Public Investment Fund, told Asharq Business with Bloomberg that international debt markets would remain the fund’s largest source of financing. The fund had around SR3.4 trillion ($906.1 billion) in assets under management after injecting about SR750 billion into the Saudi economy over five years.

Debt instrument pricing in the Kingdom is linked to US bond yields, which have recently been elevated. The yield on the 10-year US Treasury continued to rise for a fifth consecutive session on Sept. 14, exceeding 5 percent, its highest level since 2023.

Are investors affected by project reviews?

Asked about the effect of media reports concerning the postponement or reassessment of some projects in Saudi Arabia on foreign investor appetite, Livingstone said this did not change the fundamental basis of investor interest in the Kingdom. He said economic diversification remained “the attractive factor for investors,” as infrastructure development and projects connected to the economic transformation continued.

He added that the review was “justified” in light of the economic circumstances surrounding the projects being financed, with attention focused on their feasibility and sustainability.

Washington: US President Donald Trump has nominated Republican congressman Wesley Hunt, a US Army veteran, as his new ambassador to Saudi Arabia.

Hunt’s nomination was sent Monday to the US Senate, which must vote on his confirmation.

“Having served in the region both in combat as an Army officer and for two years as a diplomatic liaison in the Kingdom, I understand the strategic importance of the partnership between the United States and Saudi Arabia and the profound responsibility of this position,” Hunt said in a post on X.

CAIRO: Egyptian President Abdel Fattah El-Sisi will meet Saudi Crown Prince and Prime Minister Mohammed bin Salman on Tuesday in Cairo to discuss a range of issues of mutual interest, Al Arabiya News Channel reported, citing the Egyptian presidency.

The two leaders will exchange views on regional developments amid the latest tensions and changes in the region, while also discussing ways to strengthen Egyptian-Saudi relations and expand bilateral cooperation.

RIYADH: Thirteen civilians were injured after attacks on several Saudi cities by Yemen’s Houthi militia, authorities said early on Tuesday.

The Iran-backed group targeted civilian areas in

Khamis Mushait, Abha and Taif with ballistic missiles and drones on Monday.

The strikes resulted in “minor to moderate injuries to 13 civilians and damage to 7 houses and two vehicles,” said Major General Turki Al-Malki, spokesperson for the Coalition to Restore Legitimacy in Yemen, in a statement issued on social media early on Tuesday.

“The Terrorist Houthi Militia continues its heinous and deliberate attacks on civilian objects and civilians in the Kingdom,” the statement read.

“The continuation of these deliberate and repeated attacks proves the Terrorist Houthi Militia’s approach and extremist ideology of escalation and targeting civilian objects and civilians.”

The Coalition said its joint forces will deal with the attacks

“responsibly and firmly to protect the sovereignty of the Kingdom, civilian objects, and civilians.”

Last week an attack by the militia left more than 70 people injured, including women and children, in various towns and cities across Saudi Arabia.

The Kingdom on Friday temporarily shut down its East-West Pipeline after it was targeted in several drone attacks in the Riyadh and Madinah regions.

Gulf and Muslim organizations condemned the attack on the pipeline, expressing solidarity with the Kingdom.

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 13.89 points, or 0.13 percent, to close at 10,878.46.

The total trading turnover of the benchmark index was SR4.19 billion ($1.12 billion), as 78 of the listed stocks advanced, while 182 retreated.

The MT30 Index also rose, gaining 1.38 points, or 0.09 percent, to close at 1,460.13.

The Kingdom’s parallel market Nomu slipped 78.28 points or 0.36 percent to close at 21,500.91. This comes as 25 of the listed stocks advanced, while 46 retreated.

Top performers

The best-performing stock was Saudi Arabia Refineries Co., surging by 9.98 percent to close at SR58.95.

Other top performers included Wafrah for Industry and Development Co., which saw its share price rise by 6.25 percent to SR22.77, and Mutakamela Insurance Co., up 4.72 percent to SR13.32.

Worst performers

On the downside, the worst performer of the day was Riyadh Cement Co., whose share price fell by 4.91 percent to SR22.46.

Armah Sports Co. and Advanced Building Industries Co. also saw declines, with their shares dropping by 4.18 percent and 3.66 percent to SR68.85 and SR27.34, respectively.

Arabian Drilling signs 8 more land rigs

On the announcement front, Arabian Drilling Co. announced the signing of a new five-year contract with SLB for the provision of eight additional land rigs for Gas LSTK operations.

The agreement adds approximately SR2 billion to the company’s backlog, following its previously announced five-year contract with SLB covering 11 existing land rigs.

Together, the two contracts add approximately SR5 billion to backlog, taking Arabian Drilling’s total backlog to a record SR16 billion, the highest in its history, and constituting the largest Gas LSTK commitment ever secured by the Company.

The financial impact of the new contract is expected to begin reflecting on the company’s results starting from the final quarter of 2026.

Arabian Drilling Co.’s shares rose 2.99 percent to close at SR96.35.

Yemeni government forces have advanced in western Taiz after successfully repelling a Houthi offensive.

Armed forces affiliated with Yemen’s internationally recognised government have retaken positions from the Houthis and are advancing in the southwestern Taiz province as clashes intensify.

Reporting from Taiz on Monday, Al Jazeera Arabic’s Yasser Hassan said forces loyal to the Saudi Arabia-backed Yemeni government advanced in western Taiz on Sunday after successfully repelling a Houthi offensive.

“This comes with the support of air strikes targeting Houthi gatherings. The air force continues to bomb the Houthis. On the west coast in Mocha, Dhubab, and their surroundings,” Hassan said, citing a source in government forces.

In a statement on Monday, the Houthis, also known as Ansar Allah (supporters of God), said they launched attacks on targets in Saudi Arabia using dozens of ballistic missiles and drones.

The group said the attacks targeted “military facilities and infrastructure, including aircraft hangars, radar installations, runways, ammunition depots and other targets at King Khalid airbase in Khamis Mushait”, Saudi Arabia.

It said the attacks were a response to a Saudi offensive, which involved more than 300 air strikes across Yemen over five days.

There was no immediate comment from Saudi Arabia on the Houthi claims.

On Sunday, the Saudi civil defence agency sent alerts for the city of Abha and the region around Khamis Mushait, but they were quickly lifted shortly afterwards.

Fighting in Yemen’s more than 10-year civil war reignited in July, threatening a United Nations-brokered truce that halted large-scale violence in 2022, after the Houthis declared a maritime blockade on Saudi Arabia and began targeting its ships in the Red Sea.

The fighting soon spilled over beyond the country’s borders, with the Houthis carrying out air attacks on southern Saudi Arabia, including oil facilities. Dozens of people were wounded in those attacks.

Clashes in Yemen intensified last week after the Houthis captured parts of the country’s Red Sea coast, fortifying their hold on the Bab al-Mandeb strait, a key waterway which handles about 12 percent of global trade, including 11 percent of maritime oil and 8 percent of liquefied natural gas (LNG).

The waterway has been an economic lifeline for Saudi Arabia and its oil exports, as the Strait of Hormuz has been effectively blocked by Iranian forces since the United States and Israel launched their war on Iran in February.

The Houthis captured more strategic islands in the southern Red Sea, The Associated Press news agency reported on Monday, citing Yemeni government and Houthi officials.

Houthi fighters were deployed on the islands of Greater Hanish and Lesser Hanish about 86 nautical miles (160km) north of the Bab al-Mandeb, according to two government officials and a Houthi official, the AP reported.

Meanwhile, the International Organization for Migration said on Sunday the fighting in Yemen in recent weeks had displaced nearly 86,000 people.

It added that some of those displaced by the conflict were fleeing Yemen altogether, with more than 2,000 people reaching neighbouring country Djibouti.

Published on 14/09/2026 – 9:40 GMT+2•Updated
9:46

The oil market spent Monday morning pricing in a weekend of bad news from the Gulf.

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Brent for October and November deliveries gained over 3% and crossed $108 a barrel, while the US benchmark WTI for October rose 2.3% to around $102, both extending last week’s advance after each reclaimed the $100 threshold.

Prices moved following Saudi Arabia’s announcement that its East-West pipeline is temporarily closed after drone attacks.

The line carries crude across the kingdom to Red Sea ports, allowing oil to reach export terminals without passing through the Strait of Hormuz, so its loss removes the main alternative at the moment the strait itself is most dangerous.

That danger was also demonstrated on Sunday, when a merchant vessel was hit in the strait, killing one person and injuring three others, according to Iranian authorities.

Passage through the waterway now works very differently from before the war.

Vessels must obtain Iranian permission to transit, and Tehran is weighing a mechanism to charge service fees. Ships that fail to comply are routinely targeted, while US forces periodically bomb the Iranian coastline to contest Tehran’s claim to control the strait.

Diplomatic efforts have stalled too.

Oman has postponed planned talks between Iran and Gulf states on the future of the waterway, which carries a large share of the world’s seaborne oil trade.

Record fuel prices and finger-pointing

The consequences are extremely visible at American pumps.

The US national average price of diesel crossed $6 a gallon on Friday for the first time in history, up from around $5.85 a week earlier and roughly 60% above the $3.71 drivers paid a year ago.

Petrol is also averaging $4.22 after setting records over the Labor Day weekend.

US President Donald Trump has pointed the finger elsewhere.

Speaking to reporters in Ireland on Sunday, where he was attending the Irish Open at his Doonbeg golf resort, Trump stated Ukrainian President Volodymyr Zelenskyy “has to stop knocking out diesel fuel in Russia.”

“Let him go after targets, but not diesel fuel, because he’s causing a shortage of diesel fuel,” Trump added.

Ukraine has struck more than 20 Russian refinery targets this summer, prompting Moscow to ban diesel exports.

On the flight back from his state visit to Ireland this weekend, Trump reiterated the claim.

However, the supply arithmetic suggests otherwise.

Analysts attribute roughly 800,000 barrels a day of lost diesel supply to Russia’s export ban, against about 1.2 million from disruption around the Strait of Hormuz, according to Lipow Oil Associates.

The wider picture is more lopsided still as crude flows through the strait have fallen from around 20 million barrels a day before the war to about 7 million.

Between them, the two wars have also shut refineries representing around 5 million barrels a day of capacity.

Additional sources • AFP

RIYADH: Saudi Arabia and the UAE stressed the need for closer coordination and a united Gulf position as they discussed efforts to contain escalating tensions across the region on Sunday.

During a phone call, Saudi Foreign Minister Prince Faisal bin Farhan discussed rapidly evolving regional developments and efforts to prevent further escalation with Sheikh Abdullah bin Zayed Al-Nahyan, the UAE’s deputy prime minister and foreign minister.

The ministers stressed on the need to align positions and strength consultations between Riyadh and Abu Dhabi to support joint Gulf action and safeguard the security and resources of GCC states.

The call comes amid renewed attacks on Gulf states, including recent Houthi strikes targeting civilian and economic sites in southern Saudi Arabia.

Prince Faisal earlier on Sunday told the BRICS summit in New Delhi that Saudi Arabia’s national security, territorial integrity and resources were “non-negotiable,” warning that GCC states would not tolerate attacks on their territories, facilities or vital interests.

He also called for a shift away from confrontation toward de-escalation and diplomatic efforts, arguing that lasting regional security depended on respect for sovereignty, non-interference and good-neighbourly relations.

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 142.70 points, or 1.30 percent, to close at 10,864.57. 

The total trading turnover of the benchmark index was SR3.83 billion ($1.02 billion), as 42 of the stocks advanced and 221 retreated.   

Similarly, the Kingdom’s parallel market Nomu lost 53.44 points, or 0.25 percent, to close at 21,579.19. This comes as 25 of the stocks advanced while 47 retreated.   

The MSCI Tadawul Index lost 18.52 points, or 1.25 percent, to close at 1,458.75.     

Top gainers, losers 

The best-performing stock of the day was Armah Sports Co., whose share price surged 9.95 percent to SR71.85.   

Other top performers included Arriyadh Development Co., whose share price rose 5.68 percent to SR16.75, as well as Saudi Reinsurance Co., whose share price surged 3.67 percent to SR28.82.

Saudi Aramco Base Oil Co. recorded the most significant drop, falling 9.97 percent to SR127.30. 

Knowledge Economic City also saw its stock price fall 5.08 percent to SR18.88. 

Allied Cooperative Insurance Group also saw its stock price decline 4.96 percent to SR7.85. 

Corporate announcements 

TAM Development Co. received an amendment letter to the award letter for the “Provision of Advisory Services for Community Engagement and Event Management for Green Riyadh Program” project, awarded by the Royal Commission for Riyadh City. 

According to a Tadawul statement, the amendment involves the cancellation of an operational line item and will not affect the project’s overall profit margins. The total contract value has therefore been revised to SR12.5 million, inclusive of VAT, while the remaining scope of work will continue under the amended contract with no other changes. 

The financial impact will be reflected in the company’s financial results based on implementation progress and the periods in which the related revenue and costs are recognized. The ultimate impact on net profit will depend on the costs associated with the excluded scope and those incurred in completing the remaining work. The company said it will announce any material developments in due course. 

TAM Development ended the session at SR59.50, down 0.25 percent. 

Anmat Technology for Trading Co. announced the signing of a SR51 million contract with the Oversight and Anti-Corruption Authority, or Nazaha, to supply and install specialized equipment at one of the authority’s premises. 

According to a bourse filing, the contract has a duration of 150 days. 

Anmat Technology for Trading Co. ended the session at SR9, down 3.33 percent. 

RIYADH: Saudi Arabia’s first automotive company and original equipment manufacturer, Ceer, will unveil its first flagship electric vehicles, a sedan and an SUV, on Sept. 21, marking a major milestone in the Kingdom’s efforts to establish a domestic automotive industry.

The reveal comes as Saudi Arabia accelerates its push to develop advanced manufacturing capabilities and build an electric-vehicle ecosystem under Vision 2030, supporting economic diversification and strengthening the Kingdom’s position in the global automotive industry.

Established in 2022, Ceer is moving from vehicle development to the unveiling of its first models as Saudi Arabia seeks to establish itself as a regional hub for electric-vehicle manufacturing.

James DeLuca, CEO of Ceer, said: “At the beginning of this year, we said that 2026 is the year of Ceer. I am happy to announce that we’ve set the date for the reveal of our first flagship vehicles.”

He added: “The world is about to witness a historic moment, the result of an incredible journey from initial design and intensive engineering to the buildup of one of the most advanced manufacturing facilities in the world, in record time.”

Saudi Arabia’s EV push

The Public Investment Fund is driving the Kingdom’s electric vehicle ambitions through investments in companies including Ceer and Lucid, while supporting a broader ecosystem covering manufacturing, infrastructure, technology and supply chains.

Ceer was established as a joint venture between PIF and Foxconn to develop Saudi Arabia’s automotive industry. The company designs, engineers, sources, validates and manufactures vehicles, with plans to sell and service them in the near future.

Workforce and local impact

Since its establishment, Ceer has expanded its workforce from 20 to 2,300 employees, bringing together Saudi talent and global automotive experts.

The company has secured partnerships with international companies including BMW, Hyundai Transys and Rimac, as well as Siemens, Sabelt, Isoclima, ANDRITZ Schuler, Durr and XYG.

These partnerships support Ceer’s target of achieving 45 percent local content by 2034. The company is also developing an advanced manufacturing complex and vehicles tailored to the needs of Saudi Arabia and the wider region.

Ceer is expected to contribute around SR30 billion ($8 billion) to Saudi Arabia’s gross domestic product, improve the trade balance by SR80 billion and create about 30,000 jobs, with Saudis accounting for 80 percent of direct employment.

The company also supports the Saudi Green Initiative’s target of achieving net-zero emissions in the Kingdom by 2060.

Saudi Arabia has closed its East-West oil pipeline due to a drone attack linked to Iranian-backed militias in Iraq. This pipeline is crucial for Saudi Arabia, as it allows the country to bypass the congested Strait of Hormuz, which has faced reduced tanker traffic due to an ongoing conflict between the U.S. and Iran. The Saudi Energy Ministry stated that the closure is a precautionary measure; the pipeline typically carries about 4 to 5 million barrels of oil per day, contributing 4% to 5% of global oil supply. The attack caused injuries and damage, but the exact impact on oil exports is still being evaluated.

President Trump, while attending a golf event in Ireland, suggested that Iran was likely responsible for the attack and predicted that oil prices would drop after the upcoming U.S. midterm elections. Recently, oil prices have surged, with diesel prices in the U.S. topping $6 a gallon due to tensions in the region. Reports surfaced that the Houthis, aligned with Iran, seized the strategic Perim Island in the Red Sea.

Crown Prince Mohammed bin Salman of Saudi Arabia reached out to Trump for military assistance against the Houthis, but Washington decided not to intervene directly at that moment, offering intelligence support instead. There were concerns that the attacks on the pipeline and Perim Island could escalate tensions further, especially since diplomatic efforts to resolve the war have stalled.

Iran’s parliamentary committee has stated that negotiations are futile unless the U.S. meets Iran’s demands, particularly concerning recognition of its control over the Strait of Hormuz. The Iranian foreign ministry announced plans for discussions with Gulf states in Oman regarding the strait. Meanwhile, Iraq’s government dismissed a military commander connected to the attack and has closed the Shalamcheh border crossing with Iran as a precaution to prevent further incidents.

The Saudis have not retaliated yet, following a request from Iraq’s prime minister, but they maintain the right to take necessary actions to protect their interests. Saudi Arabia’s oil production has plummeted to its lowest level in over 30 years, partly due to attacks on maritime vessels by Houthi factions. These forces, supported by Iranian guidance, are reportedly planning counterattacks to reclaim territories lost to the Houthis, who have advanced significantly along Yemen’s coast under Iranian direction. The Houthis have claimed that maritime navigation remains safe, except for Saudi vessels, which are subject to a ban.

With information from Reuters

RIYADH: S&P Global Ratings affirmed Saudi Arabia’s long- and short-term sovereign credit ratings at A+/A-1, with a stable outlook, saying the Kingdom’s diversified energy infrastructure and fiscal buffers will help it withstand pressures from the ongoing Middle East conflict.

The stable outlook reflects S&P’s assessment that Saudi Arabia can absorb the impact of regional disruptions while maintaining non-oil growth and fiscal flexibility. The agency highlighted the Kingdom’s ability to redirect crude exports to the Red Sea through the East-West oil pipeline, as well as its substantial oil storage and refining capacity at home and abroad.

S&P expects real gross domestic product to contract 0.9 percent in 2026, before rebounding 8.2 percent in 2027 on higher oil production. Growth is then forecast to average 3.3 percent in 2028 and 2029. The sharp swing reflects the impact of the current disruption on oil activity and the expected increase in production next year.

“The authorities and the country’s sovereign wealth fund are recalibrating the pace of project implementation under Vision 2030, which should help contain fiscal deficits and the pace of general government debt accumulation,” S&P said.

The agency noted that non-oil activities have remained resilient despite regional tensions, supported by continued consumer spending, with the non-oil sector, including government activities, now accounting for around 70 percent of GDP, up from 65 percent in 2018.

The affirmation follows Fitch Ratings’ July decision to maintain Saudi Arabia’s “A+” rating with a stable outlook, citing strong fiscal buffers. The International Monetary Fund also upgraded its 2027 growth forecast for the Kingdom to 5.5 percent from 4.5 percent in April, citing its diversified export infrastructure.

Fiscal picture

S&P forecasts a fiscal deficit of 5.8 percent of GDP in 2026, narrowing to an average of 3.4 percent of GDP in 2027-29. The agency also identified Saudi Arabia’s substantial net general government asset position as a key credit strength and said foreign-exchange reserves had reached their highest level since early 2020.

Daniel Al Banna, financial market analyst and wealth management specialist at Hewar Group, told Arab News the affirmation is a strong recognition of the Kingdom’s economic resilience and strategic strength.

He noted that Saudi Arabia had demonstrated strong strategic thinking, flexibility and the ability to protect the continuity of its economic activity without becoming directly involved in the conflict.

Al Banna said: “The rating reinforces Saudi Arabia’s position as one of the strongest sovereign credit stories in the region,” describing current geopolitical pressures as “primarily short-term factors” that have not altered the Kingdom’s broader economic trajectory.