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UK Officials to Asharq Al-Awsat: Talks Underway to Speed Up Gulf Trade Deal

Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
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UK Officials to Asharq Al-Awsat: Talks Underway to Speed Up Gulf Trade Deal

Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)

British officials have highlighted that recent Saudi reforms have boosted trade and investment between the two countries, opening new opportunities for cooperation. A senior British official revealed that British and Gulf negotiators are working to speed up a free trade agreement.
UK Secretary of State for Business and Trade Jonathan Reynolds told Asharq Al-Awsat that British negotiators are in talks with their Gulf counterparts, and that they hope to resume negotiations soon.
Reynolds emphasized the importance of the free trade agreement with the Gulf Cooperation Council (GCC), noting that finalizing the deal is a top priority for the UK.
Reynolds added that the UK aims to achieve a beneficial deal for both sides rather than focusing on a specific deadline. The timing will depend on how quickly it can be finalized, considering the necessary government processes.
On Saudi-British relations, Reynolds said the two Kingdoms enjoy a close diplomatic, military, and security relationship, and that their economic and trade ties are growing stronger.
He noted that the UK is eager to work on several future projects with Saudi Arabia.
Reynolds also mentioned that the Saudi-British partnership has recently been expanded and updated in many areas.
UK Minister of State for Trade Policy and Economic Security, Douglas Alexander, told Asharq Al-Awsat about the British Parliament’s plan to enhance trade and investment with Saudi Arabia.
While he affirmed that the UK already has a strong trade and investment relationship with Saudi Arabia, Alexander noted that a new free trade agreement could make trade faster, cheaper, and easier, creating jobs and boosting prosperity for both nations.
This deal could support Saudi Arabia’s Vision 2030 and help the UK’s clean energy goals, he asserted.

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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)
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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.