In a single day, Saudi Arabia once again affirmed its strategic direction towards economic diversification, through a package of major international agreements and domestic reforms, at a time when the global economy faces headwinds from rising geopolitical tensions and volatile energy prices.

Amid market anticipation of developments in the region, Saudi moves revealed confidence in the growth trajectory despite challenges, whether related to targeting in the Red Sea or oil prices fluctuating around the $100 mark.

Massive deals for the Public Investment Fund

The Saudi Public Investment Fund over the past hours signed two memoranda of understanding with international financial institutions worth a total of $24.5 billion. The first with the International Finance Corporation and the International Investment Guarantee Agency worth $9.5 billion, and the second with the U.S. Export-Import Bank worth $15 billion.

These agreements aim to enhance financial and investment cooperation, support the fund's portfolio companies in purchasing American goods and services, in addition to stimulating economic growth and creating quality job opportunities within the kingdom and the region. They are part of a series of partnerships the fund has concluded with leading institutions to accelerate economic transformation.

Public Investment Fund signs two memoranda worth $9.5 billion

Public Investment Fund and U.S. Export-Import Bank sign agreement worth $15 billion

Domestic reforms to support development

In a step aimed at improving education quality, a royal decree was issued approving the new public education system, which enhances sector governance and defines the roles of the ministry, council, and relevant entities, supporting the achievement of Saudi Vision 2030 goals and opening the door for the private and non-profit sectors.

On the financial market front, followers of 'Tadawul' notice a clear shift in the nature of the market, as it has become fully open to foreign investors, and new companies have emerged in technology, renewable energy, and healthcare, reflecting economic diversification efforts and raising questions about the market's ability to price the future of these sectors.

Royal decree issued approving the public education system

Can Tadawul price what it cannot yet see?

Global outlook: Expected growth and anticipated challenges

In a positive assessment of the Saudi economy, S&P Global forecast it would achieve the highest growth rate among Gulf countries this year at 2.6%, assuming a gradual easing of disruptions and oil shipments returning to 75% of pre-war volumes, with an average Brent crude price of $110 per barrel until the end of the year.

But globally, the specter of stagflation has returned to loom over markets after oil rose again above $100, raising fears of slowing growth amid continued inflation. In Russia, the central bank cut the interest rate to 14% despite inflationary pressures, while Britain recorded the first growth in business activity in three months, supported by a temporary easing of tensions, and British retail sales surprisingly rose in June.

As for oil prices, they fell on Friday to below $100 after exceeding it the previous day for the first time in two months, amid continued unrest in the Middle East and the collapse of the ceasefire agreement between Washington and Tehran.

S&P Global expects the kingdom's economy to grow by 2.6% during 2026

Specter of stagflation returns to besiege the global economy

Russian central bank cuts interest rate to 14 percent amid accelerating inflationary wave

British business activity records first growth in 3 months in July

British retail sales rise unexpectedly in June with increased consumer spending

Oil prices fall below $100 per barrel despite tensions

Region: Maritime tensions and wildfires

In a development related to maritime security, a Saudi vessel belonging to a national company was targeted in the Red Sea, resulting in minor damage to its hull, but it continued its voyage after confirming its safety. The Transport General Authority considered these targeting as a violation of international laws.

On another front, wildfires swept areas in Algeria and Tunisia amid a severe heatwave, resulting in human and material losses, and forcing authorities to evacuate towns and villages. On the mediation file, reports indicated that Iran rejected an American proposal for a ceasefire, which Baghdad and Tehran denied.

Transport: Minor damage to Saudi vessel targeted in the Red Sea

Wildfires sweep Algeria and Tunisia.. temperatures record record levels

Report claims Iran rejected American ceasefire proposal conveyed by al-Zaidi.. Baghdad denies

In summary, Saudi Arabia emerges as a case of stability and economic openness despite the turbulent surroundings, relying on diversified financing strategies and structural reforms, at a time when the world awaits developments in oil prices and regional conflicts that impose themselves on all calculations.