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.



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.