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Saudi Arabia to Expand Private Sector Role in Military Industries

The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
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Saudi Arabia to Expand Private Sector Role in Military Industries

The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)

The Saudi private sector is stepping up its involvement in military industries to boost sector development and ensure long-term project success. The aim is to meet the Kingdom’s goal of localizing more than half of its military spending by 2030.

Recently, the Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries in the Kingdom. Salman Al-Shatri has been elected chairman of the committee while Zeyad Al-Mohaimeed is the vice chairman.

This is the first time that a committee concerned with the military industries sector has been formed under the umbrella of the private sector, represented by the Federation of Saudi Chambers, to work with relevant bodies such as the General Authority for Military Industries (GAMI), the Saudi Arabian Military Industries (SAMI) and other authorities.

Speaking to Asharq Al-Awsat, Al-Shatri said that the committee’s goal is to boost the number of companies in the sector and manage increasing investments effectively through collaboration.

Moreover, the committee aims to represent the private sector both domestically and internationally, and to work closely with GAMI to ensure programs serve the sector’s needs well.

Al-Shatri explained that the committee will directly communicate with relevant ministries to ensure local and sustainable projects in the sector. They’ll share feedback with authorities like the Ministry of Industry, Investment Ministry, and others to remove obstacles and utilize support programs.

He emphasized the committee’s focus on technology localization and research. They'll work closely with defense development and military industry authorities to develop needed technologies and ensure project resources.

Al-Shatri stressed that achieving Saudi Vision 2030 goals requires the right environment for research, development, and factory infrastructure. That's what the committee aims to address next.

The creation of the new committee follows recent directives from the Saudi Chambers of Commerce, aimed at modernizing the economy in line with the Kingdom’s vision.

Among the focus areas is the military industry, which aims to localize over 50% of its operations by 2030.

Government efforts have led to a significant increase in military industry capabilities, with localization rates rising from 4% to 13.6% by the end of 2022.

Saudi Arabia has issued permits for 265 companies in the military sector and announced over 74 investment opportunities to localize the supply chain.

In February, Riyadh hosted a global defense show with over 773 exhibitors from 75 countries and participation from defense ministers and senior officials.

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Crude Oil Loading Suspended at All Iraqi Terminals after Drone Incident

FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
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Crude Oil Loading Suspended at All Iraqi Terminals after Drone Incident

FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo

Crude oil loading was suspended at all Iraqi terminals on Thursday after a drone crashed into an oil tanker at the Basra terminal, although it did not cause damage ⁠or a fire, ⁠four Iraqi oil and security sources told Reuters.

Iraq's oil terminals are located in the ⁠south. It was not immediately clear who launched the drone.

The oil tanker was towed outside the port alongside another tanker that was anchored as a precautionary measure.

On Wednesday, a ⁠drone ⁠came down in Iraq's Faw port without causing any damage, the state news agency reported, without giving further details. Operations at the port were not affected.

Business

US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
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US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)

The United States announced on Wednesday a new tariff on various imports from Brazil, following a year-long investigation into the Latin American giant's trade and other policies.

The 25 percent tariff is set to take effect on July 22, as the Trump administration seeks to rebuild its tariff agenda following legal setbacks.

A range of products including beef, coffee and certain aircraft parts will be exempted, a senior US official told reporters.

The exclusions also cover certain goods that the United States does not produce.
Brazil condemned the tariffs on Thursday, promising that "reciprocal" measures would be taken.

"There is no justification for unilateral measures against our country," President Luiz Inacio Lula da Silva's office said in a statement on X.

US Trade Representative Jamieson Greer said Brazil's "unreasonable acts, policies, and practices" have hurt US commerce by unfairly benefitting Brazilian producers and "restricting access to one of the world's top export markets."

"We remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," AFP quoted Greer as saying in a statement.
In earlier findings, the US investigation deemed that certain practices by Brazil were "unreasonable or discriminatory and burden or restrict US commerce."

Brazil has denied all allegations of unfair trade practices, calling them "unfounded" and "absurd."

US Secretary of State Marco Rubio said the Brazilian government had "not negotiated with the US in good faith."

"Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that," he said in a post on X.

The new tariff comes as President Donald Trump's administration pushes to rebuild his economic agenda after the US Supreme Court in February struck down a swath of his global tariffs.

The Brazil tariffs were justified under Section 301 of the Trade Act, Greer's office said, and the Trump administration this year initiated other probes using the same authority.

US officials have already proposed new tariffs targeting dozens of trading partners for their alleged failures to act against forced labor.

In Brazil's case, a senior US official took aim Wednesday at what Washington deemed as adverse actions on digital trade, alongside "unfair" competition linked to state-owned electronic payments system PIX, among other issues.

The official rejected criticism that Section 301 probes were being used for political purposes.
The official said the door to negotiations remain open, although Washington wishes for its concerns -- including allegations Brazil gives preferential treatment to partners like Mexico and India -- to be resolved.

While the Trump administration said it does not expect retaliation following Wednesday's announcement, it warned that pushback could invite further US countermeasures.

At a public hearing held by Greer's office in Washington this month, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the United States against imposing the new tariffs.

The eldest son of Brazil's former right-wing president Jair Bolsonaro argued that new duties would benefit Lula, his political rival.

The pair are top competitors in the October presidential election.

Last year, the Trump administration hit Brazil with sharp tariffs over the coup trial against Jair Bolsonaro, who is now serving a 27-year prison sentence.

Many of the duties were rolled back after talks between both sides.

Business

UK Economy Claws Back Some Growth as Burnham Prepares to Take Power

FILE PHOTO: People walk outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo
FILE PHOTO: People walk outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo
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UK Economy Claws Back Some Growth as Burnham Prepares to Take Power

FILE PHOTO: People walk outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo
FILE PHOTO: People walk outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo

Britain's economy eked out minimal growth in May as the services industry expanded but other sectors shrank, suggesting fragile confidence among businesses against the backdrop of the Iran war and a change of prime minister at home.

Gross domestic product expanded by 0.1% in May, in line with the median forecast in a Reuters poll of economists and reversing a 0.1% fall in April, official data showed on Thursday.

Services output expanded by 0.3% on the month but industrial production and construction both contracted, falling by 0.5% and 0.8% respectively.

Figures showing robust overall economic growth of 0.7% in the three months to May offered a positive send-off to finance minister Rachel Reeves before her expected replacement next week under new prime minister Andy Burnham. Reeves' ⁠job appears likely ⁠to go to Shabana Mahmood, currently Britain's interior minister, who is set to be named finance minister next week by Burnham, according to news reports on Wednesday including in the Financial Times.

An upwardly revised growth figure of 0.8% in the three months to April represented the fastest expansion since the Labour Party came to power and matched the rate achieved under Reeves' Conservative predecessor Jeremy Hunt in May 2024.

Compared with a year earlier, output in May was 1.3% higher, the biggest annual rise in 10 months.

However, ⁠the outlook for the economy remains darkened by the shadow of the conflict in the Gulf and uncertainty over the latest change of political leadership at home — Britain's seventh in the past 10 years. On Wednesday, the Organization for Economic Co-operation and Development said it expected British GDP to grow by only 0.9% this year and 1.1% in 2027, although the forecast for 2026 was the strongest for the major European economies.

Neil Birrell, chief investment officer at fund management firm Premier Miton, said uncertainty around economic policy in Burnham's government was likely to weigh on growth in the months ahead.

"It's unlikely businesses and individuals will be actively hiring or spending ahead of getting policy details," Reuters quoted Birrell as saying. "All that, when the starting point is an economy that is barely growing."

Sanjay Raja, chief UK economist at Deutsche Bank, saw more positive details in the GDP data and said Britain ⁠was likely to remain near ⁠the top of the Group of Seven growth table in the April-to-June period.

"In short, PM Starmer hands over the economy to his successor on a much better footing," he said.

The OECD urged Burnham, who is due to replace Keir Starmer as prime minister on Monday, to keep the government's budget discipline, tackle high pension spending and address soaring energy prices to speed up the economy.

The Office for National Statistics, which published Thursday's figures, said the growth in services over the three months to May was driven by computer programming and advertising alongside the often-volatile pharmaceutical industry.

In May, growth in research and development in medical sciences was particularly strong, the statistics agency said.

Britain's goods trade deficit narrowed in May to its smallest since January at £18.7 billion, a bigger drop than economists had expected from April's £24.6 billion.