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Saudi Arabia to Expand Petrochemical Production, Energy Minister Says

Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
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Saudi Arabia to Expand Petrochemical Production, Energy Minister Says

Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman (Reuters)

Saudi Arabia is moving to expand the production of petrochemicals based on Chinese techniques for converting crude oil into petrochemicals, announced Energy Minister Prince Abdulaziz bin Salman on Wednesday.

Speaking at the third forum of the Belt and Road Initiative (BRI) for International Cooperation in Beijing, the Minister said that the COVID-19 pandemic demonstrated its impact on the global economy and on the supply and value chains.

It also showed the importance of complementary work between nations and the safety, effectiveness, and feasibility of the approaches adopted by China and Saudi Arabia through the BRI and Vision 2030.

Prince Abdulaziz explained that 2022 witnessed the conclusion of the comprehensive strategic partnership agreement with China, and the alignment plan between Vision 2030 and the BRI to enhance cooperation and interconnection.

The Kingdom is a significant and reliable oil exporter to China, said the Minister, adding that Saudi Arabia is keen to maintain and enhance this relationship by boosting strategic ties.

Prince Abdulaziz explained that Riyadh and Beijing seek to enhance their cooperation in developing and sustaining supply chains and enabling companies to benefit from current and future infrastructure.

He explained that these efforts further bolster cooperation in several areas, such as the circular carbon economy and its technologies, which can effectively contribute to China’s aspirations to make the BRI a green initiative.

Saudi Arabia is determined to become one of the most important exporters of renewable energy and clean hydrogen to support the diversification of energy sources.

He pointed out that Saudi Arabia aims to become a global logistics center, recalling that by 2030, the Kingdom will have approximately 60 logistics regions to meet the needs of the worldwide supply chain.

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Arab Financial Markets Improve Amid Trump Inauguration

A Saudi dealer monitors the stock market in Riyadh. (Reuters)
A Saudi dealer monitors the stock market in Riyadh. (Reuters)
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Arab Financial Markets Improve Amid Trump Inauguration

A Saudi dealer monitors the stock market in Riyadh. (Reuters)
A Saudi dealer monitors the stock market in Riyadh. (Reuters)

Arab financial markets reacted positively to the inauguration of US President Donald Trump for a new term on Monday, despite concerns from some nations about the tariffs he plans to impose. The tariffs are expected to affect global trade flows and pricing.

Trump’s swearing-in also coincided with the start of a ceasefire between Israel and Hamas on Sunday, which is set to have a favorable impact on market sentiment.

Experts told Asharq Al-Awsat that easing geopolitical tensions in the Middle East has played a role in boosting economic stability across Arab markets. They anticipate significant improvements in market performance throughout the region, particularly in the Gulf, in the near future—raising optimism for robust economic growth.

Mohammed Al-Farraj, Senior Head of Asset Management at Arbah Capital, noted that global economic forecasts point to noticeable improvement following Trump’s inauguration.

In remarks to Asharq Al-Awsat, Al-Farraj attributed this optimism to several key factors, including heightened political stability, strengthened supply chains, and supportive monetary and fiscal policies introduced by the new US administration.

The gradual reduction of tariffs on US imports is expected to have a major impact on the labor market and inflation, fostering a more stable and growth-friendly economic environment for Arab markets, particularly those in the Gulf, he went on to say. The Saudi Stock Exchange (Tadawul) is poised to lead this growth.

Dr. Salem Baajajah, an economic expert and academic at King Abdulaziz University, told Asharq Al-Awsat that Trump’s inauguration is likely to generate substantial gains for US markets due to his pro-growth policies. This, in turn, will positively influence global financial markets, especially in the Gulf.

Reduced geopolitical tensions in the Middle East—along with the Gaza truce and prisoner exchange agreements—have further strengthened economic stability across Arab markets, he added.

Meanwhile, most Arab and Gulf stock markets closed higher on Monday, achieving varying levels of gains.

The Saudi Stock Exchange’s main index (TASI) ended Monday’s session up by 0.40%, closing at 12,379 points—its highest level since May 8. The increase was driven by a 4.4% rise in Aqua Power shares, while Aramco, the heaviest-weighted stock on the index, remained flat at SAR 28.15.

The Qatari index climbed 0.40% to close at 10,508 points, supported by a 2.2% rise in Industries Qatar shares. Kuwait’s index rose by 0.53%, while the Abu Dhabi Securities Exchange saw a modest increase of 0.08%.

Dubai’s main index, however, declined by 0.30%, impacted by a 2.9% drop in Salik shares. Similarly, Bahrain’s index fell slightly by 0.08%.

Outside the Gulf, Egypt’s blue-chip index slipped 0.37%, weighed down by a 0.9% decline in shares of Commercial International Bank. Morocco’s Casablanca Stock Exchange index dropped by 0.33%. Conversely, Oman’s Muscat Stock Exchange posted a slight gain of 0.03%.