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Private Sector Boom Continues in Saudi Arabia, UAE

Economic growth in Saudi Arabia compared to G20 countries (SPA)
Economic growth in Saudi Arabia compared to G20 countries (SPA)
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Private Sector Boom Continues in Saudi Arabia, UAE

Economic growth in Saudi Arabia compared to G20 countries (SPA)
Economic growth in Saudi Arabia compared to G20 countries (SPA)

Private non-state oil-producing companies in Saudi Arabia and the UAE witnessed a powerful resurgence in June, fueled by a surge in production and new orders.

The notable surge in production and new orders in Saudi Arabia, reaching the highest levels in several years, prompted companies in the Kingdom to ramp up their purchasing activities swiftly, aiming to meet the growing demands for inventory support.

These insights are based on Riyad Bank Saudi Arabia Purchasing Managers’ Index report, compiled by S&P Global.

June’s headline PMI number came in at 59.6, up on May’s 58.5 and again indicative of a strong, above trend rate of growth.

According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.

“The Kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities,” said Naif Al-Ghaith, the chief economist at Riyad Bank.

The sub-index for new orders rose to 69.5 in June from 67.3 in the previous month, marking its highest level since September 2014. This increase was driven by strong demand and favorable market conditions.

The Saudi government is injecting billions of dollars into the development of non-oil sectors, aiming to diversify revenue sources away from hydrocarbons. Special emphasis is placed on creating employment opportunities for the youth.

“Ultimately, government-backed investments, especially in construction and infrastructure projects, remain crucial for the business sector,” said Al-Ghaith.

He further added that the sentiment towards future activity remains positive.

Commenting on the recent figures, Saudi Shura Council member Fadhel Al-Buainain told Asharq Al-Awsat that the Saudi economy has entered an important phase of growth after recovering from the coronavirus pandemic.

According to Al-Buainain, the witnessed recovery is a result of the government’s measures to mitigate the pandemic’s negative impacts on the economy.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.