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Thailand Explores Cooperation with Saudi Arabia in Renewable Energy, Green Hydrogen

The Saudi Minister of Investment and Thailand’s Foreign Minister honor representatives of the private sector in both countries at the investment forum in Riyadh. Asharq Al-Awsat
The Saudi Minister of Investment and Thailand’s Foreign Minister honor representatives of the private sector in both countries at the investment forum in Riyadh. Asharq Al-Awsat
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Thailand Explores Cooperation with Saudi Arabia in Renewable Energy, Green Hydrogen

The Saudi Minister of Investment and Thailand’s Foreign Minister honor representatives of the private sector in both countries at the investment forum in Riyadh. Asharq Al-Awsat
The Saudi Minister of Investment and Thailand’s Foreign Minister honor representatives of the private sector in both countries at the investment forum in Riyadh. Asharq Al-Awsat

Thai Foreign Minister Maris Sangiampongsa said that relations between Thailand and Saudi Arabia go beyond bilateral cooperation to regional and international collaboration, focusing on three key areas for which the two countries can make use of the expertise and complementarities of the two economies and the compatibilities of the Saudi Vision 2030 and Ignite Thailand policies; namely Food Security, Energy Security and Human Security.

Sangiampongsa also told Asharq Al-Awsat in an interview that renewable energy, green hydrogen and Small Modular Reactors (SMRs), as well as collaboration in the automotive industry, especially electric vehicles (EVs) are potential areas of cooperation that both countries should explore further.

Here is the full text of the interview.

1. What were the main objectives of your visit to Saudi Arabia?

First and foremost, I visited Saudi Arabia at the invitation of the Secretary General of the Thailand Board of Investment of Thailand (BOI), to preside over the opening ceremony of the BOI’s Office in Riyadh. It is the BOI's 17th overseas office, and more importantly – the first Office of Overseas Investment Economics in the Middle East, which will cover a total of 13 countries in the Middle East region. The initiative reflects the importance with which Thailand attaches to Saudi Arabia, and aims to realize and fulfil the ample trade and investment opportunities that exist between our two countries by attracting investment in target industries into Thailand and supporting and facilitating Thai entrepreneurs interested in investing in the Middle East.

Secondly, I also presided over the Opening Ceremony of the Second "Thai - Saudi Investment Forum" with His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia. The Forum witnessed the signing of 11 memorandums of understanding (MOUs) between Thailand and Saudi Arabia companies, and enabled executives and high-level representatives from government agencies, financial institutions, the Thai Chamber of Commerce, the Federation of Thai Industries, and Thai private sector to have fruitful business matchings with their Saudi counterparts.

Furthermore, I had highly constructive meetings with high-level representatives of Saudi Arabia, namely; His Excellency Mr. Khalid bin Abdulaziz Al-Falih, Minister of Investment of the Kingdom of Saudi Arabia, His Excellency Mr. Fahd bin Abdurrahman bin Dashes Al-Jalajel, Minister of Health of the Kingdom of Saudi Arabia, and His Excellency Eng. Abdulrahman bin Abdulmohsen Al-Fadhli, Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arabia, to explore ways and means to further enhance the bilateral relations between our two countries particularly in the field of agriculture, food processing, public health and tourism. I also met with representatives from leading Saudi private sectors such as SALIC, Ceer Motors, BUPA Arabia, Al-Baik, among others to show our commitment and reaffirm our priorities in boosting trade and investment.

2. What is the significance of the Second "Thai-Saudi Investment Forum"?

It is the second such Forum, following the first one held in May 2022 in Riyadh soon after the full normalization of our diplomatic relations, thereby showing a sense of continuity and a strong will on both sides to deepen the cooperation, especially in terms of trade and investment. Furthermore, the number and the level of the participants representing the business sectors of both countries gives us confidence that this event will bear fruitful results and will be remembered as an important step in the development of economic and investment cooperation between Thailand and Saudi Arabia.

This Forum also builds upon the success of last year's Thailand International Mega Fair, led by the Thai Chamber of Commerce, which saw over 30 Thai business sectors showcasing more than 1,000 products from 200 brands, marking a significant achievement in promoting Thailand in Saudi Arabia. These events and initiatives show that there remain untapped opportunities and potentials for our two countries, and the two sides need to work together even more diligently to realize these potentials and ensure concrete and tangible results. We are thus pleased to announce the International Mega Fair 2024-Riyadh, scheduled for November 2024, which will focus on promoting trade in an array of high-potential sectors, and will showcase Thailand’s diverse and innovative industries, from everything ranging from construction materials, hospitality, to defense technology.

3. What are the most important areas of cooperation between the two countries?

Ties between Thailand and Saudi Arabia have been developing rapidly following the normalization of diplomatic relations in 2022. Since then, the two sides have witnessed more than 10 High-level bilateral visits and accelerated cooperation through various mechanisms.
The Saudi-Thai Coordination Council (STCC) will be an important driving force in propelling our relations forward across five encompassing pillars of cooperation from trade and investment to political and consular cooperation to socio-cultural and military and security cooperation.

On the economic front, it is worth noting that last year alone, bilateral trade between Thailand and Saudi Arabia stood at USD8.8 Billion consisting of nearly 22% of Thailand’s total trade with the Middle East. These impressive numbers will certainly be boosted even further by the recent bilateral Memorandum of Understanding (MoU) between Thailand’s Ministry of Commerce and the General Authority of Foreign Trade of Saudi Arabia, as well as our commitment towards exploring the possibility of a regional Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC).

On this visit, I have proposed that Thailand and Saudi Arabia focus our cooperation on three key areas for which our two countries can make use of the expertise and complementarities of our two economies and the compatibilities of the Saudi Vision 2030 and Ignite Thailand policies; namely Food Security, Energy Security and Human Security.

For Food Security, we have already identified several investment initiatives on food production and processing between the Saudi Agricultural and Livestock Investment Company (SALIC) and several related Thai companies. We also aim to begin the export of live cattle and livestock from Thailand to Saudi Arabia as the greenlight has recently been given by the Saudi authority. We believe there is strong potential in the area of agriculture and processed food, especially when you consider that Thailand is already a major producer and exporter of halal food.

For Energy Security, renewable energy, green hydrogen and Small Modular Reactors (SMRs), as well as collaboration in the automotive industry, especially electric vehicles (EVs) are potential areas of cooperation that we should explore further.

While in the area of Human Security, we can promote stronger people-to-people contact through medical, biotechnology, health and wellness cooperation, as well as tourism and connectivity, to promote mutual understanding and soft power. Medical tourism is indeed a key area for closer bilateral cooperation, and Thailand’s private hospitals already welcome large numbers of medical tourists from all over the world, including Saudi Arabia and other Middle East countries. Thailand can also play a part in the promotion of wellness industry in Saudi Arabia with our strong expertise in this sector.

Our relations go beyond bilateral cooperation. Saudi Arabia can utilize Thailand’s strength as a bridge builder and facilitator in the global arena. With Thailand assuming the Chairmanship of the Asia Cooperation Dialogue (ACD) in 2025, we are ready to connect ACD with other regional groupings such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) that would cover a population of 4 billion people, which could be an important cooperation that would be beneficial for all. It is thus very clear that Thailand and Saudi Arabia have the potential to serve as twin hubs for each other. Thai businesses can benefit from collaboration with Saudi Arabia, the Middle East's economic center, to expand their market to the entire Middle East region, while Saudi Arabia may consider using Thailand as an investment base to expand its business into the ASEAN region and capitalize on the Regional Comprehensive Economic Partnership agreement, the world's largest free trade area. It is also imperative to note that we need to encourage the participation of our private sectors in all these endeavors, as the private sectors are the real players, while the public sectors are the facilitators.

Through my discussion with the Ministers of Investment, Minister of Health and the Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arab, it is heartening to see that we concur on these issues, and Thailand and Saudi Arabia are on the same page in our effort to realize our potential.

4. What about the size of the Thai economy and its expected growth rate during the year 2024?

Thailand is situated in the heart of ASEAN. We are the second largest economy in Southeast Asia and act as a gateway to major economies such as China and India. Thailand actively expands trade relations through 15 Free Trade Agreements (FTA) with 19 countries and many in the pipeline. With its strategic location, Thailand serves as a hub for multinational corporations seeking to establish a regional headquarters in Asian region due to its strategic location, excellent business ecosystem, robust infrastructure, regional connectivity, competitive costs of doing business, skilled talent pool, and attractive investment incentives. According to the “Ignite Thailand” vision, H.E. Mr. Srettha Thavisin, Prime Minister of Thailand attaches priority to make Thailand the hub of 8 major industries: agriculture and food, medical and wellness, tourism, future mobility, financial, digital economy, logistics, and aviation. The Prime Minister also gives importance to easing the process of doing business in Thailand. Through the “Ignite Thailand” vision, Thailand aims to be the hub of progress and prosperity not only for the benefit of the country, but rather for the benefit of the whole region.

Tourism has been, and continues to be a major driver of economic growth for Thailand. Recently, in order to further boost the country’s tourism sector, Thailand has approved a 60-day visa exemption scheme, allowing travelers from 93 countries, including the Kingdom of Saudi Arabia, to visit Thailand for short-term business engagements as well as leisure travel.

5. Is there a new cooperation project that will be launched in the near future?

H.E. Mr. Srettha Thavisin, Prime Minister of Thailand, who made an official visit to Saudi Arabia a few months ago, directed himself the Board of Investment to open the office in Riyadh as soon as possible. That reflects the importance the Thai government gives to the enhancement of cooperation with Saudi Arabia in all areas, especially trade and investment.

I look forward to co-chairing the first STCC meeting later this year in Bangkok with His

Highness Prince Faisal bin Farhan Al Saud, the Minister of Foreign Affairs of the Kingdom of Saudi Arabia. The STCC is an important mechanism that encompasses 5 pillars of cooperation, covering all aspects of the bilateral relations from political and consular to security and military, from culture and tourism to trade and economic and investment. I am certain that the meeting will not only be a reflection of the two countries shared goodwill and commitment to work together, but will also be successful in pushing forward cooperation and achieve tangible results and elevate the Saudi – Thai cooperation to new heights.

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Saudi Energy Companies in 2025: Billion-Dollar Profits Defy Market Volatility

Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
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Saudi Energy Companies in 2025: Billion-Dollar Profits Defy Market Volatility

Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)

In 2025, the Saudi energy sector demonstrated a superior ability to fortify its financial gains and navigate global market fluctuations, achieving a net profit exceeding $92.5 billion (347.2 billion riyals). Despite pressures imposed by the global supply-and-demand equation and supply chain disruptions, the financial results of listed companies revealed a strategic shift in performance. Price momentum for oil was no longer the sole driver; instead, operational efficiency and smart hedging emerged as safety valves that ensured the continuity of massive cash flows, with revenues exceeding $430 billion.

While profits recorded a relative decline of approximately 11.5 percent compared to the exceptional year of 2024, when they reached $104.62 billion (392.58 billion riyals), the results showed a positive variance for logistics and drilling companies such as "Bahri" and "ADES." This indicates a new phase of operational maturity and diversification of income sources within the region's most vital sector.

This decline in sector profits is attributed to the falling earnings of "Saudi Aramco," the heaviest weight in the Saudi market index. Other sector companies were also affected by multiple challenges, including declining revenues, lower sales, and reduced dividend distributions from investment portfolios.

Variance in Company Profits

Financial results for energy sector companies showed a variance in performance: profits rose for two companies, declined for one, and another narrowed its losses. Additionally, one company continued its losses, while another shifted to a loss after recording profits during 2024.

In detail, "Saudi Aramco" achieved the highest profit margin among sector companies, reaching $92.75 billion (348.04 billion riyals) during 2025, despite a decline of 11.64 percent compared to the previous year. The company attributed this decline to lower revenues and sales-related income, though this was partially offset by a decrease in operating costs and lower income taxes and Zakat. "Bahri" ranked second with profits of $647.58 million (2.43 billion riyals) during 2025, a growth of 0.12 percent compared to the previous year's profits of $578.29 million (2.17 billion riyals). The company attributed its profit growth to higher total quarters for the oil transport sector and improved operational performance and global freight rates.

"ADES" came in third with profits reaching $218.13 million (818.5 million riyals), achieving a growth of 2 percent compared to the previous year. The company stated that the rise in net profit reflected an increase in depreciation and interest expenses relative to revenues, in addition to gains recorded in the third quarter under "profits from equity instruments at fair value through profit or loss," the impact of which was largely dissipated by costs related to an acquisition deal.

A man passes by the Saudi Stock Exchange logo (Reuters)

Sector Revenues

At the revenue level for sector companies during 2025, there was a decline of approximately 4.74 percent, recording revenues of about $430.12 billion (1.61 trillion riyals) compared to $450.4 billion (1.69 trillion riyals) in 2024, a decrease of $21.44 billion (80.45 billion riyals).

Commenting on these results, Dr. Sulaiman Al-Humaid Al-Khaldi, financial market analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that the energy sector is strategic and vital to the Saudi economy, and these results reflect the continued high profitability of sector companies despite the relative decline. He described this decline as "natural" following the exceptional levels of 2024, reflecting the moderation of oil prices compared to the previous year, alongside the OPEC+ alliance's commitment to production cut policies to support balance.

He noted the decline in revenues resulted from lower prices and volumes despite remaining at strong levels, as well as rising operational and investment costs for some companies, particularly in expansion and renewable energy projects. Conversely, companies like "Bahri" and "ADES Holding" showed positive performance supported by growth in demand for maritime transport and drilling services, reflecting a diversification of profitability sources within the sector.

Al-Khaldi expected the sector to remain stable in the near term with a slight inclination toward growth, supported by several factors including continued global oil supply management to support prices within a balanced range, and Aramco’s expansion into gas, clean energy, and petrochemicals, reducing reliance solely on crude oil. He also noted the improved performance of service companies (drilling and transport) with the increase in regional projects.

Over the medium to long term, he expected the future of sector companies to carry a strategic shift toward focusing on diversifying energy sources through hydrogen and renewables, enhancing operational efficiency, and reducing costs. He highlighted that companies would benefit from Saudi Vision 2030 in supporting investments and infrastructure, noting that the sector remains strong and profitable, and the current decline is a healthy correction after a historical peak, while the trend toward diversification and sustainability will be the primary driver for growth in the coming years.

Operational Factors

For his part, Mohammed Hamdi Omar, CEO of "G-World," told Asharq Al-Awsat that the economic reading of these figures indicates the Saudi energy sector has not lost its strength but has entered a more complex phase than merely achieving high profits.

He added: "We are facing a sector that is still achieving massive profitability levels exceeding 347 billion riyals, but the more important picture is that growth is no longer based on price momentum alone; it has become more sensitive to operational factors, global demand, refining margins, and the variance in performance of companies within the sector."

He explained that the reasons for the decline in sector profits "stem from the exceptional weight of 'Aramco' within the sector; it is not just a company within the sector, but the main driver of the entire financial picture, and any decline in its revenues or profits is automatically reflected in the overall index. Furthermore, the sector did not move as a single bloc; some companies benefited from improved activity or the strength of their business models, such as 'Bahri' and 'ADES,' while others faced clear operational or market pressures. This reflects that the challenge is no longer just in the sector as a whole, but in the quality of positioning within it."

Omar noted that the "decline in total sector revenues indicates that the global energy market has entered a more volatile phase, where high prices alone are no longer sufficient to ensure a balanced improvement in results. Today, operational management, the ability to hedge, diversification of income sources, and supply chain efficiency have become factors no less important than the price itself. Therefore, those who read these results as merely an annual decline in profits are oversimplifying the picture; more accurately, it is an expression of the sector's transition from a phase of easy rents to a phase of more complex operational competition."

Regarding the future financial results of energy companies, he indicated that the sector "will remain a fundamental pillar of the Saudi economy and financial market, but the difference in the coming phase will be between companies that have the ability to adapt to global volatility and those that remain captive to the price cycle. In other words, the future belongs not just to those with scale, but to those with flexibility, financial discipline, and the ability to turn volatility into opportunity."

He viewed the outlook for the coming period as "positive" at the sector level, "but more precise at the company level, as gains will not be distributed equally, but will instead gravitate toward the most efficient, integrated companies that are best able to manage risks in a global environment that remains turbulent."

Business

Economic Shock of Mideast War to Cast Shadow over IMF, World Bank Meetings

FILE PHOTO: International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo
FILE PHOTO: International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo
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Economic Shock of Mideast War to Cast Shadow over IMF, World Bank Meetings

FILE PHOTO: International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo
FILE PHOTO: International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, September 4, 2018. REUTERS/Yuri Gripas/File Photo

Top finance officials from around the world will convene in Washington this week under the shadow of the war in the Middle East, which has delivered a third major shock to the global economy after the COVID pandemic and Russia's full-scale invasion of Ukraine in 2022.

Top International Monetary Fund and World Bank officials last week said they would downgrade their forecasts for global growth and raise their inflation predictions as a result of the war, warning that emerging markets and developing countries will be hit hardest by higher energy prices and supply disruptions.

Before the Iran war broke out on February 28, both institutions had expected to lift their growth forecasts given the resilience of the global economy - even in the wake of major tariffs imposed by US President Donald Trump beginning last year. But the war has delivered a series of shocks that will slow progress on recovering growth and beating back inflation.

The World Bank's baseline estimate now projects growth in emerging markets and developing economies of 3.65% in 2026, down from 4% in October, but sees that number dropping as low as 2.6% if the war lasts longer. Inflation in those countries was now forecast to hit 4.9% in 2026, up from the previous estimate of 3%, and could spike as high as 6.7% in the worst case.

The IMF warned last week that about 45 million ⁠additional people could also ⁠face acute food insecurity if the war persists and continues to disrupt fertilizer shipments needed now.

The IMF and World Bank are racing to respond to the latest crisis and support vulnerable countries at a time when public debt levels have reached record levels and budgets are tight.

The IMF said it expects demand for $20 billion to $50 billion in near-term emergency support to low-income and energy-importing countries. The World Bank has said it could mobilize some $25 billion through crisis response instruments in the near-term, and up to $70 billion in six months, as needed.

But economists are urging governments to use only targeted and temporary steps to ease the pain of higher prices for their citizens, since broader measures could fuel inflation.

"Leadership matters, and we've come through crises in the past," World Bank President Ajay Banga told Reuters, lauding work on fiscal and monetary controls that ⁠had helped economies weather previous storms. "But this is a shock to the system."

Countries now face a tough balancing act managing inflation while keeping an eye on growth and the longer-term challenge of creating enough jobs for the 1.2 billion people who will reach working age in developing countries by 2035.

IMF and World Bank also face a far different global landscape with tensions running high between the United States and China, the world's largest economies, and the Group of 20 major economies hobbled in its ability to coordinate a response.

The United States currently holds the rotating presidency of the G20, which also includes Russia and China, but it has excluded another member - South Africa - from participation, complicating the group's ability to coordinate on this crisis.

"You're trying to operate on consensus when there's no consensus in the world right now on anything," said Josh Lipsky, chair of international economics at the Atlantic Council.

Lipsky said statements by the IMF, World Bank and other multilateral lenders about their readiness to support countries hit hard by the war were clearly aimed at reassuring markets.

"It's a signal to private creditors. This is not a time to flee countries that are in problematic waters. They will have support from the multilateral development banks and the international financial institutions. This is not going to be COVID. ⁠This is something that we can ⁠handle."

Mary Svenstrup, a former senior US Treasury official now with the Center for Global Development, said many emerging market and developing economies entered the crisis worse off than just a few years ago, with lower buffers, higher debt vulnerabilities and lower reserves.

"We need to have this crisis be a catalyst for IMF stakeholders to really rethink how the Fund supports vulnerable countries with the recognition that we're going to be seeing more global shocks," she said. "We can't ask them to sacrifice growth and development for the sake of rebuilding buffers."

Svenstrup said countries should pursue more ambitious reforms if they received fresh funds. "There probably does need to be more financial support from the (international financial institutions) but it needs to be affordable, and it needs to be in the context of reform programs and potentially broader debt relief," she said.

Martin Muehleisen, a former IMF strategy chief who is now with the Atlantic Council, agreed, saying the IMF should work with donor countries to accelerate debt restructuring for borrowers and "get them off the debt cycle."

New lending should be tied to a credible debt-reduction road map, he said.

Eric Pelofsky, vice president at the Rockefeller Foundation, said low-income and lower middle-income countries paid twice the amount to service their debts in 2025 than before COVID, limiting funds for education, health care and other critical social programs. Half were now in or near debt distress, up from a quarter, just a few years ago.

"This new conflict threatens any recovery that occurred since the pandemic or the Ukraine war, and it takes countries that have basically been treading water, trying to stay away from default, and keeps them in a long term debt-growth-investment trap," he said.

Business

Pakistan Seeks Deeper Economic Ties with Saudi Arabia

Pakistani Prime Minister Shehbaz Sharif meets Saudi Finance Minister Mohammed al-Jadaan (Government of Pakistan)
Pakistani Prime Minister Shehbaz Sharif meets Saudi Finance Minister Mohammed al-Jadaan (Government of Pakistan)
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Pakistan Seeks Deeper Economic Ties with Saudi Arabia

Pakistani Prime Minister Shehbaz Sharif meets Saudi Finance Minister Mohammed al-Jadaan (Government of Pakistan)
Pakistani Prime Minister Shehbaz Sharif meets Saudi Finance Minister Mohammed al-Jadaan (Government of Pakistan)

Pakistan called for stronger economic cooperation with Saudi Arabia during a visit by Saudi Finance Minister Mohammed al-Jadaan, who held talks with the country’s top leadership in Islamabad.

The visit, the first by a senior Saudi official since a temporary ceasefire between the US and Iran, came as Islamabad was preparing to host talks between Iranian and US officials aimed at easing tensions.

Discussions focused on expanding economic cooperation and were attended by senior Pakistani officials, including Deputy Prime Minister and Foreign Minister Ishaq Dar and army chief Field Marshal Asim Munir, according to a statement posted on Prime Minister Shehbaz Sharif’s official X account.

During the meeting, Sharif conveyed greetings and appreciation to Saudi King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman, praising what he described as the Kingdom’s “pivotal” economic and financial support in helping maintain Pakistan’s stability in recent years.

Sharif also referred to his recent phone call with the Crown Prince, reaffirming his government’s and people’s commitment to stand “shoulder to shoulder” with Saudi Arabia.

He said Islamabad is keen to expand partnerships in trade and high-value investment sectors, adding that the longstanding relationship between the two countries continues to deepen under the Crown Prince’s leadership in a way that serves shared interests and growth ambitions.

For his part, al-Jadaan thanked the prime minister and reiterated Saudi Arabia’s commitment to strengthening what he described as the deep-rooted and brotherly ties between the two countries, in line with the vision of Crown Prince Mohammed bin Salman.

At the conclusion of the visit, Pakistan’s Finance and Revenue Minister, Muhammad Aurangzeb, accompanied al-Jadaan to Islamabad International Airport. The two sides discussed ways to strengthen economic cooperation.