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Fashion Boosts Non-Oil GDP in Saudi Arabia

A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
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Fashion Boosts Non-Oil GDP in Saudi Arabia

A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition
A part of the Fashion Authority's participation in the “100 Saudi Brands” exhibition

Aligning with efforts undertaken by the Saudi government to diversify its economy away from oil, the fashion sector has carved out its role as a key player in achieving this goal.

The Kingdom’s fashion sector is paving its way towards rapid growth, aiming to become a significant contributor to the non-oil GDP.

So far, this sector constitutes more than 1% of the non-oil GDP, with the Kingdom’s fashion market estimated at around 90 billion riyals (24 billion dollars). Consequently, it stands as the largest market in the Arab world.

Recognizing the pivotal role of the fashion sector, a dedicated Fashion Authority was established in 2020 under the auspices of the Ministry of Culture.

Tasked with organizing major events that showcase Saudi designs, the Authority emphasizes the promotion of local products while importing valuable European and global experiences to the Kingdom.

This initiative aligns with a broader Saudi openness to the world, aimed at promoting the Kingdom’s attire and culture—a facet of the projects and initiatives of the Kingdom’s national transformation plan “Vision 2030.”

Eyad Mashat, the CEO of the global fashion company “FAD,” echoed this sentiment in statements he made to Asharq Al-Awsat.

Mashat emphasized that the significant growth across all sectors in the Kingdom, aligned with the objectives of Vision 2030, has played a pivotal role in the rapid expansion witnessed by the fashion industry in the local market.

Saudi Arabia has established a competitive and attractive investment environment through “bold steps and revolutionary decisions,” said Mashat.

These measures have successfully overcome numerous previous challenges, utilizing digital transformation applications to swiftly streamline many governmental procedures.

This has significantly shortened the time and processes required for the launch of small to medium-sized projects, reducing the timeline from over 15 days to just a few hours.

In tandem with the development of legislative environments and incentivizing systems implemented by the Kingdom, Mashat observed that citizens have become more receptive to the importance of the fashion industry.

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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.