Saudi Arabia, Switzerland Cooperate in Cleantech, Infrastructure and Logistic Services

Parmelin to Asharq Al-Awsat: We are keen to explore new opportunities

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
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Saudi Arabia, Switzerland Cooperate in Cleantech, Infrastructure and Logistic Services

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER), stressed that the opportunity is ripe for closer cooperation with Saudi Arabia in the fields of clean technology, infrastructure, and logistic services at the time Switzerland is keen on deepening cooperation with the Kingdom in various fields.

Parmelin, who is also a former president of Switzerland, said “the Kingdom of Saudi Arabia is a very dynamic economy, which is of growing interest to the Swiss business community. That's why I'm visiting the Kingdom accompanied by a delegation of leading business representatives.”

“Trade between Switzerland and Saudi Arabia has grown considerably in recent years, and Swiss companies are very interested in investing in the Kingdom,” he told Asharq Al-Awsat.

“Trade and investment figures are strong, but I am convinced that there is still untapped potential. In my meetings with various ministers, I intend to explore where there is room for improvement. Personally, I am also looking forward to visiting Diriyah and King Salman Park,” he stressed.

Moreover, he remarked that “Saudi Arabia is transforming at an incredible speed, both economically and socially. It's important to see these changes first-hand, to get a better feel for the country and also to better understand the current developments.”

“What's more, the Swiss business representatives are given the opportunity to make new contacts and expand their network.”

On agreements signed between Saudi Arabia and Switzerland, Parmelin said: “First of all, we're not starting from scratch. Our two countries already enjoy very good bilateral relations. We have all the essential agreements in place to facilitate trade and investment between Saudi Arabia and Switzerland.”

“What's more, we meet regularly. Just recently, I met Saudi Minister of Investment Khalid al-Falih and Minister of Industry and Mineral Resources Bandar AlKhorayef on the sidelines of the World Economic Forum in Davos, Switzerland. These personal contacts are essential, and I look forward to meeting the Ministers during my stay in Riyadh.”

On the potential areas for collaboration, he stated: “We have the opportunity to collaborate more closely in areas such as cleantech, infrastructure and logistics, where Swiss companies have considerable know-how and expertise.”

“I know that tourism is a priority sector for Saudi Arabia, and with the hosting of Expo 2030 and most probably the Football World Cup 2034, this will only grow in importance,” he noted.

On foreign investments in Saudi Arabia, Parmelin stressed: “Switzerland has a bottom-up approach. By this I mean that it's not the Swiss government that tells companies where to invest or with whom to enter into a partnership. It's the companies themselves that assess the best investment opportunities. They are in a better position to judge what the market needs, where the next big opportunity lies and what their customers are asking for.”

“In my opinion, the fact that a large business delegation is accompanying me to Saudi Arabia is a clear message that these companies have identified economic potential,” he stated.

Parmelin served as Switzerland’s president in 2021 and vice president in 2020. He is member of the Swiss People's Party (SVP/UDC) and has been a member of the Federal Council since 2016. He has led the Department of Economic Affairs, Education and Research since 2019. He previously led the Department of Defense, Civil Protection and Sports between 2016 and 2018.



US Consumers to Bargain Hunt in Annual ‘Black Friday’ Spree

 A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
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US Consumers to Bargain Hunt in Annual ‘Black Friday’ Spree

 A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)
A family eats lunch near a store advertising a Black Friday sale at the Pentagon City Mall in Arlington, Virginia, on November 22, 2023. (AFP)

US shoppers are coming out in force this holiday season, but the festiveness is being tempered by inflationary pressures that have abated but not completely faded.

After the sticker shock during the latter stages of the pandemic, a familiar frustration has settled in towards consumer prices that remain broadly elevated even if they have stopped rising rapidly.

Americans are "ready to open their wallets this holiday season," said the Conference Board ahead of Black Friday -- the day after Thanksgiving, which this year, falls on November 28 -- that traditionally sees US stores kick off the Christmas shopping season with steep discounts.

"US consumers plan to spend more than last year, but inflation reduces how far their dollars can go."

In this environment, nobody expects to pay the full price for items.

"Holiday shoppers are likely to increase their budgets this year versus last year but remain selective and are looking for discounts," said a note from Morgan Stanley.

The investment bank's survey found that 35 percent planned to spend more this holiday season. But nearly two-thirds would skip a purchase if an item is not adequately discounted, meaning a price cut of more than 20 percent.

"It's gonna be a good year, but I don't think that growth is going to be spectacular because consumers are still under pressure," predicted Neil Saunders of GlobalData.

Inflation remains above the Federal Reserve's two percent long-term target, rising in October to 2.6 percent on an annual basis from 2.4 percent in September. But that's significantly below the peak level of 9.1 percent in June 2022.

Other recent economic data has been solid. Unemployment remains low at 4.1 percent, while a preliminary GDP reading for the third quarter came in at 2.8 percent.

But Joe Biden's presidency coincided with about a 20 percent rise in consumer prices as Covid-19 pandemic lockdowns gave way to supply chain bottlenecks.

That inflation played a central role in the 2024 US presidential election, with Republican Donald Trump defeating Biden's appointed Democratic successor, Vice President Kamala Harris.

"There is still a perception among consumers that things are quite difficult," Saunders said. "So people are being quite cautious and careful in their spending."

- Tariff hit? -

How Trump's looming presidency will affect inflation remains to be seen. Industry groups have warned that tariffs favored by the Republican could reignite pricing pressures.

The National Retail Federation projected that a Trump tariff proposal floated during the campaign would dent US consumer budgets by as much as $78 billion annually.

But while tough potential trade actions are already preoccupying Washington trade groups, tariffs are not on consumer radars for the 2024 season, according to Saunders.

One challenge this year will be the shortness of the season.

Black Friday falls at the latest possible date on November 29, shortening the stretch between Turkey Day and Christmas on December 25.

But the impact of that dynamic on 2024 sales should not be overstated. Retailers in recent years have pulled the holiday shopping season ahead, with some vendors launching online "Black Friday" promotions as early as October.

Among the companies that have already begun discounts: the big-box chains Walmart and Target, electronics giant Best Buy and home-improvement retailer Home Depot.

Amazon officially launched "Black Friday Week" on Thursday.

NRF has projected holiday spending growth of between 2.5 and 3.5 percent in the 2024 season compared with the year-ago period, to as much as $989 billion over the two-month period.

Economists with the trade group have pointed to an easing of gasoline prices as a supportive factor.

Online sales are projected to grow as much as nine percent this season, extending a long-term trend. Black Friday itself has become a big occasion for online shopping, along with "Cyber Monday" three days later.

"Over time, we've moved from a period where it was just Black Friday, and maybe a little of the weekend, to it being a period of discounting that starts very early," said Saunders. "It's seasonal discounts."

There has been a diminishment of "doorbuster" sales that are known to draw hordes of waiting crowds, sometimes resulting in injury or worse.

Instead, increasing numbers of consumers are spreading out their purchases or opting to click through Black Friday promotions at home.