Dubai, UAE — The central banks in the GCC region hold interest rates steady after Fed announcement, while Saudi Arabia’s ROSHN group plans to build 400,000 residential units in the kingdom:
GCC central banks have once again held interest rates steady, mirroring the US Federal Reserve’s ongoing pause, as regional monetary policy remains closely tied to dollar peg dynamics.
Riyadh Air has taken a major step in its global expansion plans by signing a memorandum of understanding with Rolls-Royce at the Paris Air Show to purchase 100 Trent XWB-97 engines. These engines will power up to 50 Airbus A350-1000 aircraft, reinforcing Riyadh Air’s goal of connecting the Saudi capital to over 100 global destinations by 2030. With operations set to begin later this year, the airline’s long-haul ambitions are central to Saudi Arabia’s strategy of transforming Riyadh into a global aviation and business hub.
In a parallel aviation-tech development, Saudi-based Cluster2 Airports Company also signed a strategic MoU with Airbus. The agreement will see the deployment of the Agnet Turnaround platform across Cluster2’s 22 airports. This advanced technology aims to optimize ground operations, improve coordination between field teams, and significantly enhance passenger experience—key pillars in the Kingdom’s aviation modernization agenda.
Real estate and investment promotion efforts are also ramping up, as Diriyah Company launched the “Diriyah House” in London’s One Hyde Park. The initiative seeks to engage global investors and stakeholders in the Diriyah masterplan—one of Saudi Arabia’s most prominent cultural tourism developments. With a projected annual visitor count of over 50 million by 2030, Diriyah is positioning itself as a globally significant destination. The London outpost will serve as an immersive marketing suite offering interactive insights into the development’s vision.
On the multilateral development front, the OPEC Fund Development Forum concluded in Vienna with pledges of over $720 million to finance development initiatives in Africa, Asia, Latin America, and the Caribbean. A new Trade Finance Initiative was also launched to address supply chain liquidity challenges in partner countries. The forum’s agenda underscored support for climate resilience and infrastructure growth, with specific cooperation agreements signed with Grenada and the Solomon Islands.
In banking and finance, Saudi National Bank (SNB) has issued $1.25 billion in Tier 2 bonds at a 6% profit rate under its $10 billion Euro Medium Term Note program. Separately, the bank announced plans to redeem SAR 4.2 billion ($320 million) in Tier 1 sukuk at face value by the end of June.
Economic indicators for the Gulf Cooperation Council (GCC) region remain strong, with GDP now forecast to grow by 4.4% in 2025. This upward revision is driven by higher oil production and robust growth in non-oil sectors, particularly in Saudi Arabia and the UAE. This performance positions the region as a bright spot amid a broader global slowdown.
Saudi Arabia’s ROSHN Group, backed by the Public Investment Fund (PIF), has announced it will develop 400,000 residential units. Contracts for its flagship SEDRA project in northern Riyadh have exceeded SAR 19 billion, with 71% of 2024 awards going to local firms—a reflection of its strong localization strategy.
Meanwhile, humanitarian concerns in Gaza are escalating. The UN agency UNRWA has warned that 45% of essential medical supplies are depleted, with stocks expected to run out within weeks amid continued conflict.
