APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
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APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)

Pacific Rim leaders showed divisions over the wars in Ukraine and Gaza after a two-day summit of the Asia-Pacific Economic Cooperation (APEC) forum on Friday, although they pledged support for reform of the World Trade Organization.

Days of meetings involving APEC ministers and leaders were dominated by a summit on Wednesday between US President Joe Biden and Chinese President Xi Jinping aimed at cooling tensions between the world's two largest economies, which have alarmed the region.

The 21 APEC members, which include Russia and Muslim-majority Indonesia and Malaysia, went into the meetings divided over Russia's war in Ukraine and the Hamas-Israel war in Gaza, and that is how they left them.

A statement issued by this year's APEC chair, the United States, echoed last year's APEC leaders' declaration in saying that "most" APEC members "strongly condemn aggression against Ukraine."

It said the leaders exchanged views on the Gaza crisis, with some objecting to language of the chair's statement in an accompanying "Golden Gate Declaration" covering economic issues "on the basis that they do not believe that APEC is a forum to discuss geopolitical issues."

Some APEC leaders shared the united messages of the Nov. 11 joint Arab-Islamic summit in Riyadh, the chair's statement said.

Brunei, Indonesia and Malaysia in a joint statement said they were among the APEC leaders who supported the messages of the Riyadh summit, which had called for an immediate end to military operations in Gaza, rejecting Israel's justification of its actions against Palestinians as self-defense.

The three countries also called for an "immediate, durable and sustained" humanitarian truce, and for the unhindered provision of essential goods and services to civilians in Gaza.

‘Free, open, fair investment environment’

The APEC leaders' declaration reaffirmed their determination "to deliver a free, open, fair, non-discriminatory, transparent, inclusive, and predictable trade and investment environment."

"We are committed to necessary reform of the WTO to improve all of its functions, including conducting discussions with a view to having a fully and well-functioning dispute settlement system accessible to all members by 2024," it said.

Despite the frictions over the Ukraine and Middle East wars, the Sino-US talks will have brought some relief to APEC members concerned by a worsening trajectory in the rivalry between the superpowers, which are also the world's largest economies.

The Biden-Xi summit brought agreements to resume military-to-military communications and work to curb fentanyl production, showing some tangible progress in the first face-to-face talks in a year between the two, but no major reset in their strategic rivalry.

Xi appeared to achieve his aims, earning US concessions in exchange for promises of cooperation, an easing of bilateral tensions that will allow more focus on economic growth, and a chance to woo foreign investors who increasingly shun China.

Biden, addressing the other APEC leaders on Friday, urged them to work together to ensure that artificial intelligence brings change for the better, rather than abusing workers or limiting potential.

The US-China signal

Biden used the APEC summit to highlight the strong US economy and its ties to other Pacific nations, even as his vision for greater regional cooperation to counter China's influence stumbled on the trade front over his bid to strengthen workers' rights.

The managing director of the International Monetary Fund, Kristalina Georgieva, told Reuters the Biden-Xi meeting was a badly needed signal that the world needs to cooperate more and a positive sign for cooperation on global challenges, especially climate change.

Much US-China tension is linked to democratically governed Taiwan, which China claims at its own, and the issue has raised fears of a conflict between the superpowers.

Taiwan's APEC envoy, semiconductor magnate Morris Chang, told a news conference on Friday he believed the Biden-Xi summit had been a "good meeting."

He said he had informal interactions with Biden, US Vice President Kamala Harris and US Secretary of State Antony Blinken on the sidelines of APEC, but not with Xi.

As it competes with China for influence, Biden's administration has vowed to continue negotiating an ambitious Asia trade deal as part of the Indo-Pacific Economic Framework it created as a forum for engagement after then-President Donald Trump quit a regional trade pact in 2017.

However, election-year pressures and resistance to tough commitments from some countries make a deal unlikely, trade experts and business groups say.



Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
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Microsoft Arabia: Saudi Arabia Accelerates AI Adoption, Turns It Into Competitive Edge

A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson
A Microsoft logo is seen a day after Microsoft Corp's $26.2 billion purchase of LinkedIn Corp, in Los Angeles, California, US, June 14, 2016. REUTERS/Lucy Nicholson

Saudi Arabia has cemented its global standing in artificial intelligence after pouring significant investments into the sector in 2025, accelerating digital transformation and expanding real-world applications across government and the wider economy.

From education and manufacturing to energy and public services, AI is being deployed to advance the diversification goals of Saudi Vision 2030.

Turki Badhris, president of Microsoft Arabia, said the kingdom is experiencing unprecedented momentum in adopting AI as a strategic lever to raise competitiveness and improve performance across vital sectors.

Artificial intelligence has become central to the national transformation journey, he told Asharq Al-Awsat.

Linking transformation

Saudi Arabia’s overhaul spans digital government modernization, the construction of megacities and large-scale projects, industrial development, and the creation of new economic sectors, Badhris said.

AI, he added, is the connective tissue binding these efforts together by enabling smarter infrastructure and more efficient public services.

In 2025, Microsoft expanded cooperation with government and regulatory bodies, as well as major companies, to accelerate the adoption of AI and cloud computing across education, industry, financial services, and government operations.

Turning point year

Badhris described 2025 as a watershed for AI in the kingdom, marked by a shift to broad, sector-wide deployment.

In digital government, training programs implemented with the Digital Government Authority aim to equip more than 100,000 public sector employees with cloud and AI skills, enhancing service delivery and user experience.

In education, AI literacy initiatives have been scaled up in partnership with the Ministry of Education and the Ministry of Communications and Information Technology, alongside the rollout of generative AI tools and digital learning technologies in schools.

Manufacturers have adopted AI-driven predictive maintenance and real-time operational data analysis, cutting downtime and improving efficiency and reliability.

In energy and sustainability, AI solutions are being used to optimize water and energy asset management, including predictive maintenance and intelligent process control, delivering operational savings while supporting emissions reduction and sustainability targets.

Sovereign cloud push

Badhris said the launch of Microsoft’s cloud region in Saudi Arabia, planned for 2026, will mark a qualitative leap by allowing government entities and regulated sectors to run critical workloads in a secure local environment, ensuring data sovereignty and enabling low-latency innovation.

He added that regulatory frameworks developed by relevant authorities have bolstered trust in AI adoption by balancing individual protection with incentives for innovation.

From tools to partners

Looking ahead, Badhris said 2026 will see AI evolve from support tools into “work partners” capable of collaboration and initiative in complex tasks.

The shift will be felt across government services, industry, megaprojects such as Qiddiya and The Red Sea Project, and healthcare.

Advanced AI systems, he said, will sharpen operational efficiency, lift productivity, and enhance service quality, while moving from reactive oversight to proactive governance frameworks that ensure safe and responsible use.

Saudi Arabia, Badhris said, is not simply adopting AI but helping shape its future, investing in sovereign infrastructure, building national capabilities, and embedding responsible-use principles to drive sustainable economic growth and entrench its position as a global technology power.


Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
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Lockheed Martin: Saudi Arabia Is Strategic Choice for Global Defense Hub

Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)
Lockheed Martin took part in the recent World Defense Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s push to localize half of its defense spending under Vision 2030 is drawing deeper commitments from US defense giant Lockheed Martin, which says it will expand local manufacturing, transfer advanced technologies, and further integrate the Kingdom into its global aerospace and defense supply chains.

Building Saudi partnerships

Steve Sheehy, vice president for international business development at Lockheed Martin’s aeronautics division, said the company is stepping up efforts to partner with both established and emerging Saudi aerospace firms.

Lockheed Martin is looking to build partnerships across maintenance, repair and overhaul, as well as component manufacturing and repair, particularly in advanced avionics, Sheehy told Asharq Al-Awsat.

Speaking after the company’s participation in the World Defense Show in Riyadh, he said Lockheed Martin is also targeting emerging fields such as additive manufacturing, from plastics to metals, and advanced composite materials.

The goal, he said, is twofold: plug gaps in the company’s global supply chain while transferring know-how and strengthening local capabilities in a mutually beneficial model.

Sheehy described the Saudi aerospace sector as established and growing. He also noted that it has a solid base in maintenance and manufacturing, as well as a clear shift toward advanced technologies, creating room for deeper collaboration between national firms and global industry leaders.

Alignment with Vision 2030

Retired Brigadier General Joseph Rank, chief executive of Lockheed Martin in Saudi Arabia and Africa, said the company’s strategy in the Kingdom is rooted in a long-term partnership aligned with Vision 2030, especially the target of localizing 50 percent of defense spending.

Lockheed Martin, he said, is focused on transferring knowledge and advanced technologies, developing local industrial capabilities and building an integrated defense ecosystem that positions Saudi Arabia firmly within global supply chains.

Rank said the company is working closely with government entities and national companies to strengthen local manufacturing, empower Saudi talent and establish a sustainable industrial base that supports innovation and creates high-quality jobs.

Lockheed Martin is advancing manufacturing and repair work on defense equipment, including components of the THAAD air defense system, missile launch platforms, and interceptor missile canisters, in cooperation with Saudi partners, Rank said.

The company has also opened a maintenance center in Riyadh for the Sniper Advanced Targeting Pod system, the first of its kind in the Middle East, to enhance maintenance and technical support capabilities.

Beyond hardware, Lockheed Martin is investing in transferring and localizing advanced technologies in air defense, command and control, and digital manufacturing. It is also supporting science, technology, engineering and mathematics programs and hands-on training in cooperation with national universities.

Broad local network

Rank said the company relies on a wide network of partners in the Kingdom. At the forefront are the General Authority for Military Industries, the main government partner in localization agreements, and Saudi Arabian Military Industries, a key manufacturing and technology transfer partner.

Other collaborators include the Advanced Electronics Company for advanced systems maintenance, the Middle East Propulsion Company and AIC Steel for producing THAAD components and platforms, and the National Company for Mechanical Systems for advanced manufacturing technologies.

Academic partnerships extend to King Abdullah University of Science and Technology, King Saud University, King Fahd University of Petroleum and Minerals, and Princess Nourah bint Abdulrahman University, supporting research and developing national talent.

Localizing aerospace manufacturing

Rank said localizing aerospace manufacturing is a strategic priority. Lockheed Martin has launched projects to produce interceptor missile launch platforms and canisters inside the Kingdom and awarded contracts for key components to Saudi companies, qualifying them to join its global supply network beyond the US.

The company is evaluating and qualifying hundreds of Saudi firms to produce defense equipment to international standards, focusing on technology transfer and building local expertise as a step toward manufacturing more integrated systems in the future.

Company officials said the approach goes beyond supplying systems. It centers on technology transfer, digital manufacturing, and command-and-control systems, laying the groundwork for the production of integrated systems in the Kingdom and strengthening Saudi Arabia’s position as a regional hub for aerospace and defense.


Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
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Türkiye TPAO, Shell Sign Deal to Carry out Exploration Work offshore Bulgaria

A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)
A Shell logo is seen at a gas station in Buenos Aires, Argentina, March 12, 2018. (Reuters)

Türkiye Petrolleri (TPAO) has signed a partnership agreement with Shell to carry out exploration work in Bulgaria's maritime zone, the Turkish energy ministry and British oil major said on Wednesday.

European Union member Bulgaria, which had been totally dependent on Russian gas until 2022, has been seeking to diversify its gas supplies and find cheaper sources, Reuters reported.

TPAO and Shell will jointly explore the Khan Tervel block, located near Türkiye's Sakarya gas field, and will hold a five-year licence in Bulgaria's exclusive economic zone, Minister Alparslan Bayraktar said.

Shell will continue as operator of the block, while TPAO will take a 33% interest in the licence, a Shell spokesperson said.

Since the start of this year, TPAO has signed energy cooperation agreements with ExxonMobil, Chevron and BP for possible exploration work in the Black Sea and the Mediterranean.

In April, Shell signed a contract with Bulgaria's government to allow the oil major to explore 4,000 square metres in the block.