Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
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Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)

Based on the Kingdom’s endeavor to exploit its geographical location to link the Arab world with China, Riyadh announced the launching a modern Silk Road to achieve a comprehensive renaissance for countries and peoples of the region and create diverse and promising opportunities.

On behalf of Saudi Crown Prince Mohammad bin Salman bin Abdulaziz, the Saudi minister of Foreign Affairs, Prince Faisal bin Farhan bin Abdullah, inaugurated on Sunday the 10th session of the Arab-China Business Conference in Riyadh, under the slogan, “Investment and Financing through the Belt and Road Initiative”.

- Exchange of experiences

The foreign minister highlighted Saudi Arabia’s keenness to raise the level of cooperation and strengthen the long-standing partnership in all vital investment fields between the Arab countries and China.

According to Prince Faisal bin Farhan, the conference is an opportunity to work on advancing and consolidating the historical Arab-Chinese friendship, and building a common future towards a new era that serves the people’s interests and maintains peace and development in the world.

The Saudi foreign minister added that the event underlined the importance, potential, and common visions that lie in the investment and trade relations between the Arab world and China. He stressed that mutual compatibility, exchange of experiences and the launching of new opportunities for growth and investment would achieve progress and prosperity for the peoples of the region and the world.

- Trade exchange

Bin Farhan touched on the successful historic visit of Chinese President Xi Jinping to Riyadh at the end of 2022, which he said further strengthened the ties between the two countries in all political, economic and investments fields.

He added that the visit coincided with the launch of the first China-Arab summit and the Chinese-Gulf summit, which both yielded positive results and saw the signing of many agreements and memorandums of understanding worth more than $50 billion, covering a range of sectors.

He continued that China was the largest trading partner of the Arab countries, revealing that the total volume of trade exchange between the two sides reached $430 billion last year, with a growth rate of 31 percent, compared to 2021.

The minister also noted that the Kingdom represented 25 percent of the total trade exchange between China and the Arab countries, with a total value of $106.1 billion in 2022, an increase of 30 percent compared to 2021.

- Sustainable partnerships

For his part, Eng. Khaled Al-Falih, Minister of Investment, said that the conference, which is held under the patronage of Crown Prince Mohammed bin Salman, reflected the interest of the leaders of the Arab world in strengthening relations with China and expanding the successes achieved in the political and diplomatic corridors to forge sustainable partnerships.

According to the investment minister, the Arab world enjoys civilizational and cultural elements, as well as human and natural resources, which qualifies it to assume an advanced and leadership position, and to achieve a comprehensive renaissance for countries and peoples in all fields.

- Development strategies

Al-Falih continued: “Being the largest economy in the Middle East and the fastest growing in the world over the past year, we are today committed to serving as a bridge connecting the Arab world with China, and contributing to the growth and development of their relations. Our hosting of this crowd of distinguished leaders from all over the Arab world, and from Beijing, is evidence on that.”

He also stated that among of the most important engines of growth in Saudi Arabia were the economic development strategies, which are based on a distinct national vision and strong executive plans and programs. In this context, the minister stressed that the Kingdom constituted a model that would prepare the Arab region for the future.

- Energy exports

The Saudi minister of investment welcomed China’s engagement in this renaissance, which he said would create huge opportunities in the future for economic, trade and investment cooperation.

He continued that this integration was evident in the exceptional growth of mutual trade between China and the Arab countries, as energy exports from the Arab world contributed to advancing the industrial development in China. In contrast, goods manufactured in Beijing reached every home, office, and factory in Arab countries, Al-Falih remarked.

According to the Saudi investment minister, the growth of mutual trade and the compatibility of needs and capabilities created many diverse and promising opportunities for investment, adding that time has come for Beijing to be a major investment partner in the development process taking place in the Arab region.

- Foreign investment

Al-Falih said that foreign direct investment from China abroad has grown at a rate of 20 percent annually over the past decade, bringing the share of the Arab world to about $23 billion.

There is still a possibility to increase investment flows in the other direction and to take advantage of the big and thriving Beijing market, he underlined.

Arab-Chinese Summit

For his part, Ahmed Aboul Gheit, Secretary-General of the Arab League, stated that Saudi Arabia’s hosting of this major conference comes as a continuation of its successful efforts since the holding of the Arab-Chinese Summit last year in Riyadh, which he said gave a new impetus to bilateral cooperation in various fields.

- Arab investment climate

Aboul Gheit pointed to the importance of the conference in introducing entrepreneurs to the available investment opportunities. He noted that this would contribute to economic development in the Arab world and China, and help to explore the best ways to maximize the available prospects and capabilities for the Arab and Chinese sides.

- Strategic partnerships

For his part, Hu Chunhua, Vice Chairman of the Political Consultative Conference in China, expressed his country’s readiness to work with Arab countries to implement the results of the first Chinese-Arab summit, and to build a joint strategic partnership at a higher level.

He also emphasized the Chinese-Arab strategic cooperation, which he said is witnessing continuous development and has become a model for countries to enhance mutual trade and investment, thanks to the guidance of the leaders.



Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Allows Contracting Exceptions for Firms without Regional HQ

The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
The King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Saudi Arabia has introduced greater flexibility into its investment environment, allowing government entities, under strict controls to safeguard spending efficiency and ensure the delivery of critical projects, to seek exceptions to contract with international companies that do not have regional headquarters in the kingdom.

The Local Content and Government Procurement Authority notified all government bodies of the mechanism to apply for exemptions through the Etimad digital platform.

The step is designed to balance enforcement of the “regional headquarters relocation” decision, in force since early 2024, with the needs of technically specialized projects or those driven by intense price competition.

Under a government decision that took effect at the start of 2024, state entities, including authorities, institutions and government-affiliated funds, are barred from contracting with any foreign commercial company whose regional headquarters in the region is located outside Saudi Arabia.

According to the information, the Local Content and Government Procurement Authority informed all entities of the rules governing contracts with companies that lack a regional headquarters in the kingdom and related parties.

Government entities may request an exemption from the committee for specific projects, multiple projects or a defined time period, provided the application is submitted before launching a tender or initiating direct contracting procedures.

Submission mechanism

In two circulars, the authority detailed how to submit exemption requests and clarified the cases in which contracting is permitted under the controls. It said the exemption service was launched on the Etimad platform in November 2025.

The service is available to entities that float tenders through Etimad. Requests for tenders launched before the service went live, as well as those issued outside the platform, will continue to follow the previously adopted process.

Etimad is the kingdom’s official financial services portal run by the Ministry of Finance, aimed at driving digital transformation of government procedures and boosting transparency and efficiency in managing budgets, contracts, payments, tenders and procurement. The platform streamlines transactions between state entities and the private sector.

Technical criteria

When issuing the contracting controls, the government made clear that companies without a regional headquarters in Saudi Arabia, or related parties, are not barred from bidding for public tenders.

However, their offers can only be accepted in two cases: if there is no more than one technically compliant bid, or if the offer ranks among the best technically and is at least 25% lower in price than the second-best bid after overall evaluation.

Contracts with an estimated value of no more than 1 million riyals ($266,000) are also exempt. The minister may, in the public interest, amend the threshold, cancel the exemption or suspend it temporarily.

More than 700 headquarters

More than 700 multinational companies had relocated their regional headquarters to Riyadh by early 2026, exceeding the initial target of attracting 500 companies by 2030. The program seeks to cement the kingdom’s position as a regional business hub and to localize global expertise.

When announcing the contracting ban, Saudi Arabia said the move was intended to incentivize foreign firms dealing with the government and its affiliated entities to adjust their operations.

It aims to create jobs, curb economic leakage, raise spending efficiency and ensure that key goods and services procured by government entities are delivered inside the kingdom with appropriate local content.

The government said the policy aligns with the objectives of the Riyadh 2030 strategy unveiled during the recent Future Investment Initiative forum, where 24 multinational companies announced plans to move their regional headquarters to the Saudi capital.

It stressed that the decision does not affect any investor’s ability to enter the Saudi economy or continue working with the private sector.

 


IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
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IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko

The International Monetary Fund on Thursday said its board ​would review a staff-level agreement for a new $8.1 billion lending program for Ukraine in coming days.

IMF spokeswoman Jule Kozack told reporters that Ukrainian authorities had completed the prior actions needed to move forward with the request ⁠of a new ⁠IMF program, including submission of a draft law on the labor code and adoption of a budget.

She said Ukraine's economic growth in 2025 ⁠was likely under 2%. After four years of war, the country's economy had settled into a slower growth path with larger fiscal and current account balances, she said, noting that the IMF continues to monitor the situation closely.

"Russia's invasion continues to take a ⁠heavy ⁠toll on Ukraine's people and its economy," Kozack said. Intensified aerial attacks by Russia had damaged critical energy and logistics infrastructure, causing disruptions to economic activity, Reuters quoted her as saying.

As of January, she said, 5 million Ukrainian refugees remained in Europe and 3.7 million Ukrainians were displaced inside the country.


US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Wall Street stocks retreated early Thursday as worries over US-Iran tensions lifted oil prices while markets digested mixed results from Walmart.

US oil futures rose to a six-month high as Iran's atomic energy chief Mohammad Eslami said no country can deprive the Islamic republic of its right to nuclear enrichment, after US President Donald Trump again hinted at military action following talks in Geneva.

"We'd call this an undercurrent of concern that is bubbling up in oil prices," Briefing.com analyst Patrick O'Hare said of the "geopolitical angst."

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.6 percent at 49,379.46, AFP reported.

The broad-based S&P 500 fell 0.5 percent to 6,849.35, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 22,621.38.

Among individual companies, Walmart rose 1.7 percent after reporting solid results but offering forecasts that missed analyst expectations.

Shares of the retail giant initially fell, but pushed higher after Walmart executives talked up artificial intelligence investments on a conference call with analysts.

The US trade deficit in goods expanded to a new record in 2025, government data showed, despite sweeping tariffs that Trump imposed during his first year back in the White House.