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Saudi Arabia Identifies 3 Tracks to Achieve Arab-Chinese Industrial Integration

CEO of the Hong Kong Stock Exchange speaking to the audience during the panel discussion (Asharq Al-Awsat)
CEO of the Hong Kong Stock Exchange speaking to the audience during the panel discussion (Asharq Al-Awsat)
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Saudi Arabia Identifies 3 Tracks to Achieve Arab-Chinese Industrial Integration

CEO of the Hong Kong Stock Exchange speaking to the audience during the panel discussion (Asharq Al-Awsat)
CEO of the Hong Kong Stock Exchange speaking to the audience during the panel discussion (Asharq Al-Awsat)

The Saudi government is working on three tracks to achieve the integration of the industrial economy between the Arab countries and China. Those include policies and legislation, value chains, and manufacturing, advanced production, and building factories of the future.

The Saudi Ministry of Industry and Mineral Resources has adopted these paths following the visit of Chinese President Xi Jinping to the Kingdom, at the end of 2022, with the aim to achieve industrial integration with Beijing in many sectors.

During a dialogue session on the sidelines of the 10th session of the Arab-Chinese Businessmen Conference, Eng. Osama Al-Zamil, Deputy Minister of Industry and Mineral Resources, talked about the launching of a geological survey project, in partnership with the Chinese Geological Organization, to identify natural and mineral resources in the Arabian Shield.

He noted that mineral wealth was the third pillar of industry in the Kingdom, following oil and petrochemicals.

Al-Zamil added that the ministry has focused, since its inception, on the means to develop the mineral industry in terms of regulations and legislation, and to create opportunities for investors in the sector.

The ministry also aims, through its strategy, to stimulate growth by building the capabilities of local content and exports, and improving the investment environment in the industrial sector, he underlined.

The session was attended by Abdullah Fakhro, Bahraini Minister of Industry and Trade, Ali Al-Baqali, CEO of the Bahraini company Alba, as well as other senior officials and businessmen from the Arab world and China.

Speaking during the event, the Bahraini minister of Industry and Trade said that aluminum contributes 13 percent of the total output of the country, which attracts many investments in the field.

He also emphasized the importance of finding cooperation opportunities with China, which he described as one of the world leaders in manufacturing and advanced technologies.

Participants discussed during the session means to develop joint cooperation between Saudi Arabia, China and the Arab countries in the field of industry, mining and minerals, in addition to the agreements that were recently signed within this framework.

Monday’s session also included a dialogue with Nicolas Aguzin, CEO of the Hong Kong Stock Exchange, who stressed the importance to diversify investments in different regions of the world, noting that the current conference in Riyadh offers large markets and business owners an opportunity to learn about economic activities and build strong investment bridges.

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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."