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Saudi Arabia Sends High-Ranking Delegation to World Economic Forum Annual Meeting

The annual meeting of the World Economic Forum 2024 will be held in Davos (Asharq Al-Awsat)
The annual meeting of the World Economic Forum 2024 will be held in Davos (Asharq Al-Awsat)
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Saudi Arabia Sends High-Ranking Delegation to World Economic Forum Annual Meeting

The annual meeting of the World Economic Forum 2024 will be held in Davos (Asharq Al-Awsat)
The annual meeting of the World Economic Forum 2024 will be held in Davos (Asharq Al-Awsat)

Saudi Arabia announced that a high-ranking delegation will participate in the World Economic Forum (WEF) Annual Meeting 2024 in Davos, Switzerland, from January 15-19, under the theme of "Rebuilding Trust."

The delegation, chaired by Foreign Minister Prince Faisal bin Abdallah, includes Saudi Ambassador to the US Princess Reema bint Bandar, Minister of Commerce Majid al-Kassabi, Minister of State for Foreign Affairs and Envoy for Climate Adel al-Jubeir, Minister of Investment Khalid al-Falih, Minister of Finance Mohammed al-Jadaan, Minister of Communications and Information Technology Abdullah al-Swaha, Minister of Industry and Mineral Resources Bandar al-Khorayef, and Minister of Economy and Planning Faisal al-Ibrahim.

- Current challenges

The Saudi delegation will address these era-defining challenges by working with the international community to advance substantive global collaboration, drive economic resilience, build sustainable resource security, and harness human-centric innovation.

It would also explore the opportunities offered by emerging technologies and their impact on the policy and decision-making process.

The Saudi delegation will highlight the social and economic progress made within the framework of Vision 2030, the transformation, diversification, and development witnessed by the Kingdom in various fields, and the multiple investment opportunities available across the nation's thriving economy.

- Competitive capabilities

The Saudi delegation will share its expertise in enhancing the Kingdom's attractiveness as a private and foreign investment destination.

The delegation will also review the best practices and solutions developed by the Kingdom to enhance the economy's resilience and achieve financial sustainability, in line with its ambitions for economic diversification and sustainable growth under Vision 2030.

- Enhancing cooperation

The 54th annual meeting of the World Economic Forum will discuss ways to enhance cooperation between the public and private sectors to explore future opportunities, review solutions and developments within various economic and development sectors within the framework of international cooperation, and joint work between governments and various institutions.

The Forum brings together representatives from more than 100 governments, major international organizations, and more than 1,000 major private sector players, in addition to representatives of civil society and academic institutions.

The theme "Rebuilding Trust" highlights the importance of joint international action in confronting humanitarian, climate, social, and economic challenges.

- Global risks

In addition, the Global Risks Report 2024 issued by the World Economic Forum warned of a global risk landscape that will witness a decline in human development. It will weaken countries and individuals and expose them to new risks.

Given the systemic changes in global power mechanisms, climate, technology, and demographic distribution, global risks impose significant pressures that may exhaust the world's ability to adapt.

The report said that these matters are among its most prominent findings, which showed that cooperation on global issues is declining and that there is an urgent need to adopt approaches to address global risks.

The transnational risks will become harder to handle as global cooperation erodes.

In this year's Global Risks Perception Survey, two-thirds of respondents predict that a multipolar order will dominate in the next ten years as middle and great powers set and enforce – but also contest – current rules and norms.

WEF Managing Director Saadia Zahidi said underlying geopolitical tensions combined with the eruption of active hostilities in multiple regions contribute to an unstable global order characterized by polarizing narratives, eroding trust, and insecurity.

Zahidi warned that the situation leaves ample room for accelerating risks – like misinformation and disinformation – to propagate in societies that have already been politically and economically weakened in recent years.

- Misinformation and Conflict

Emerging as the most severe global risk anticipated over the next two years, foreign and domestic actors will leverage misinformation and disinformation to widen societal and political divides further.

Cost-of-living pressures continue to bite amidst persistently elevated inflation, interest rates, and economic uncertainty in much of the world.

Misinformation and disinformation have risen rapidly in rankings to first place for the two-year timeframe, and the risk is likely to become more acute as elections in several economies take place this year.

Interstate armed conflict is a new entrant into the top risk rankings over the two-year horizon as both a product and driver of state fragility.

With many conflicts currently ongoing in different parts of the world, the risks of geopolitical tensions and declining community resilience may lead to the spread of conflict contagion.

- Economic uncertainty and declining development

The continued state of economic uncertainty and the widening of the financial and technical gap are among the most prominent features of the coming years, and the lack of economic opportunities ranked sixth in risks over the next two years.

In the long term, obstacles to economic mobility are expected to increase, which will lead to the deprivation of large segments of the population of economic opportunities.

In addition, countries affected by conflict or climate risks may become isolated from investment, advanced technologies, and new employment opportunities.

In the absence of guaranteed and secure livelihoods, individuals may become more vulnerable to involvement in crime, militancy, and extremism.

- The planet is in danger

It is expected that environmental risks continue to dominate the risk landscape over all three timeframes, while the report called on business leaders to reconsider the steps that must be taken to confront global risks.

The report recommended focusing global cooperation efforts on accelerating the construction of protection barriers against the most urgent emerging risks, such as signing agreements to integrate artificial intelligence in the decision-making process.

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Business

China’s Factory Activity Shrinks in October, Third Contraction in Four Months

Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
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China’s Factory Activity Shrinks in October, Third Contraction in Four Months

Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)

China's factory activity dropped in October, its third contraction in four months, a government survey showed on Saturday, hurt by soft demand goods at home as well as signs of weakness in exports.

Economists called on the government to do more to support growth after the figures, which highlighted how exports, which have powered higher for much of this year, may not have sufficient strength to offset long-stagnant consumer spending.

"Insufficient demand is increasing downward pressure on the economy," said Zhang Liqun, an analyst with the ‌China Federation of ‌Logistics & Purchasing.

The official manufacturing purchasing managers' index (PMI) fell to 49.3 from ‌50.1 ⁠in September, according ⁠to data from the National Bureau of Statistics. That missed a forecast for 50.0 from a Reuters poll, though the first month of a quarter is typically the weakest.

China's trade surplus with the world is on track to top last year's $1.2 trillion due to strength in exports. But in October, factory activity weakened as overseas Christmas-related orders, which were front-loaded in September, cooled. It was also hurt when consumer spending, which climbed during China's long National Day holiday in the ⁠first week of October, fizzled out afterwards.

Sub-indexes for new orders overall ‌and for new export orders both stayed in contraction ‌territory in October. Production and purchasing activity also slipped into contraction from expansion.

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Zhang Zhiwei, ‌chief economist at Pinpoint Asset Management, said that if external demand weakens in 2027, "China ‌will need more significant policy support to boost domestic demand."

Lu Zhe, chief economist at Soochow Securities, called for expanding subsidies for mortgage interest payments "to shore up household confidence and anchor sentiment."

He added that extending subsidies for loan interest payments to investment projects would help alleviate the current shortage of viable fixed-asset ‌investments.

The non-manufacturing PMI, which covers services and construction, also dropped, to 49.7 from 50.2 in September.

The readings are compiled based on ⁠purchasing managers' reports about ⁠whether conditions improved, worsened or were unchanged in areas such as new orders, output and employment compared with the previous month. A reading above 50 signals expansion, while one below 50 indicates contraction.

Some sectors within manufacturing were doing well.

Production and new orders sub-indexes for railway, shipbuilding, aerospace equipment, and computer, communications and electronics manufacturing were all at or above 53.0, the survey showed.

AI-related firms in particular have reported strong earnings growth. Zhongji Innolight, a maker of high-speed optical modules that connect servers and switches in AI data centers, posted a near tripling in third-quarter net profit.

But the lackluster domestic market and rising costs have weighed on many old-school manufacturers and property-linked firms. Custom furniture maker Oppein Home, for example, saw net profit plunge 80% during the quarter.

China's economy is, however, expected to meet the country's 4.5-5.0% annual growth target without additional stimulus measures after third-quarter growth rebounded to 4.5% from 4.3% in April-June.

Business

15% Capital Requirement Complicates Restructuring of Lebanese Banks

A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
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15% Capital Requirement Complicates Restructuring of Lebanese Banks

A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)

Talks that concluded in Paris on Thursday between Lebanon’s central bank, the Banking Control Commission and representatives of Lebanese banks revealed persistent differences over banking sector restructuring and the distribution of losses, as the International Monetary Fund (IMF) insists on a 15% capital adequacy ratio for banks seeking to remain operational, to be achieved within five to seven years.

According to information obtained by Asharq Al-Awsat, the meetings were hosted by Rothschild, the international adviser to Banque du Liban (BDL), in an effort to reconcile differing approaches to the provisions of the draft Financial Regularization and Deposit Recovery Law.

The discussions produced new proposals involving relatively minor changes in form but a more substantive approach to the draft law submitted by the government to Parliament late last year. The proposals are expected to influence subsequent stages of the legislative process.

However, efforts to bridge the differences were not matched by any shift in the IMF’s position. The Fund’s delegation reportedly maintained its firm stance on limiting the use of public funds and upholding the hierarchy of loss absorption, under which bank capital, shareholders and equity holders are first in line to bear losses.

Against this backdrop, the IMF has introduced an additional requirement, informing banking executives that operating banks must restructure their capital positions to achieve a 15% capital adequacy ratio as a key condition for remaining in business.

A source familiar with the matter told Asharq Al-Awsat that the Fund had stipulated a period of five to seven years from the start of restructuring to meet the requirement.

Although the proposed ratio is substantially higher than the requirements set under Basel III standards, the IMF argues that it is necessary for the banking sector, together with BDL as its regulator, to demonstrate a serious commitment to addressing the consequences of Lebanon’s unprecedented financial crisis.

The aim is to emerge from the crisis with a financial sector in the strongest possible position, paving the way for the restoration of international confidence.

Lebanese banks, however, face considerable difficulties persuading existing shareholders to inject such large amounts of private capital within a relatively short period.

Shareholders remain reluctant to commit fresh funds before negotiations produce a final agreement with the IMF, the government meets structural reform requirements in the public sector, a medium-term fiscal plan is adopted, and the outcome of Lebanon’s Eurobond restructuring becomes clear.

The Lebanese Central Bank building in Beirut. (AP)

What is required of banks?

An initial assessment by Asharq Al-Awsat indicates that meeting the IMF’s requirement would entail substantial cash injections and capital contributions or the attraction of new investors, a task that appears nearly impossible under current conditions.

Preliminary estimates suggest the funds required could amount to twice banks’ current capital, which has fallen sharply from levels exceeding $20 billion as a result of the Lebanese pound’s collapse.

The challenge comes as Lebanon and its economy face an exceptional contraction in investment inflows because of wars and the financial losses and heavy reconstruction costs they have left behind.

These burdens add to a financial gap that the government estimates at approximately $70 billion.

Insistence on this approach could undermine the banking sector’s prospects for recovery and its ability to contribute effectively to the broader economic rebound, given the difficulty most banks would face in injecting or attracting capital on such a scale.

Banking officials argue that the approach fails to account for the state’s role and responsibility in drawing financing from BDL’s balance sheet.

They also point out that a government decision to suspend repayment of all obligations on Lebanon’s Eurobonds deprived both commercial banks and the central bank of access to vital financial assets.

Meanwhile, a financial official noted that BDL’s handling of the consequences of the financial and monetary collapse, which have been concentrated heavily in the banking system, requires realism and a balance between two interconnected principles: ensuring a fair distribution of losses and avoiding the sacrifice of financial institutions.

This includes restructuring banks’ balance sheets and capital positions while enabling them to make the greatest possible contribution toward the gradual repayment of depositors’ claims, in accordance with the distribution mechanism established under existing central bank circulars.

Before the crises erupted, BDL imposed stringent solvency requirements on operating banks, with average ratios exceeding 15%.

Bank managements also voluntarily adhered strictly to international professional standards for assessing capital adequacy, enabling Lebanese banks to achieve leading regional positions in covering credit, market and operational risks.

Their risk management practices also included measuring and monitoring other exposures, such as interest rate risk in the banking book, credit concentration, liquidity and reputational risks.

Rothschild serves as BDL’s international adviser in negotiations concerning the financial sector, while Lazard performs the same role for Lebanon’s Finance Ministry.

Business

US Oil Companies Aim to Squeeze More Out of Refineries

ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
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US Oil Companies Aim to Squeeze More Out of Refineries

ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File

US oil companies are investing to squeeze out more fuel from refineries and bringing shuttered plants back online in response to conflicts in Russia and Iran that have crimped supplies.

ExxonMobil Chief Executive Darren Woods said Friday the company had achieved "record fuels utilization" outside of the Middle East, pointing to 100 percent crude utilization at US Gulf Coast refineries.

The statements come as US gasoline prices remain above the politically sensitive $4 per gallon level and as diesel prices linger near all-time highs above $6 per gallon.

"In the third quarter, we continued to rise to the challenge of meeting global energy needs," Woods said in a press release.

But Woods told analysts on an earnings conference call that there were a "lot of variables" behind the crunch in supply of diesel and other key refined items. Besides lost capacity in the Middle East and Russia from Ukrainian drone strikes, Woods cited a decline in Chinese refined output.

"My guess would be it will take certainly well through to next year before we see things getting back closer to normal," he said. "But it could be longer than that."

US rival Chevron said it achieved record throughput at refineries during the quarter.

"We're reinvesting to bring more energy to a supply-constrained market," said Chief Executive Mike Wirth.

But about 10 percent of the world's refining capacity remains off line, said Chevron Vice Chairman Mark Nelson.

"I would expect margins to eventually moderate as refinery runs recover and export flows increase," Nelson said on a conference call. "But that will take some time."

Both companies reported a more than doubling of quarterly profits Friday as oil giants reap financial rewards from spiking commodity prices and refinery margins. Steep price increases and supply shortfalls in some cases have sparked protests in parts of Asia, Latin America and Europe.

- Russian refining hit -

Executives have pointed to a cutback in output from Asian plants as Iran's blockage of shipments through the Strait of Hormuz has taken key crude oil off the market.

Another factor has been attacks by Ukraine on Russian plants, which had accounted for 6.5 percent of global refining capacity in 2025, according to KPMG.

The International Energy Agency said in September that just five Russian refineries remain unaffected by a barrage of drone attacks launched by Ukraine since the Russian invasion in 2022.

Russia's normal volume of 6.5 million barrels a day at 32 refineries had fallen to just 3.8 million barrels per day, its lowest level in 20 years, according to the IEA.

An October 21 report from Rystad Energy warned that Russia could become a net importer of gasoline and diesel in 2027.

On Friday, Russia's deputy prime minister for energy issues, Alexander Novak, told a reporter from state TV that Ukraine had resumed attacks on Russian plants, hitting three oil refineries and one gas-chemical complex.

On Friday, ExxonMobil's profits for the third quarter came in at $15.4 billion, slightly more than double the $7.5 billion in the year-ago period, while Chevron's profits were $9.9 billion, compared with $3.5 billion in the year-ago quarter.

But surging prices of gasoline and diesel have become a political albatross for US President Donald Trump, whose administration has pressed oil companies to take actions to soften the blow on consumers.

The US oil companies pointed Friday to steps to boost capacity. ExxonMobil spent around $17 billion on refining to boost capacity, including expansions at a plant in Beaumont, Texas, with work ongoing at another plant in Baytown, Texas.

Such investments are expected to add 100,000 barrels per day of additional distillate capacity, Woods said.

US refiner Valero Energy announced Friday that it reached a deal to acquire a shuttered Houston refinery from LyondellBasell for $320.5 million. It plans an initial restart by the end of 2027.

"This acquisition is a unique opportunity to strategically expand Valero's US Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," said Valero CEO Lane Riggs.