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Saudi Railway Company CEO: Saudi Arabia to Localize Railway Industry

Al-Haramain highspeed train (SPA)
Al-Haramain highspeed train (SPA)
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Saudi Railway Company CEO: Saudi Arabia to Localize Railway Industry

Al-Haramain highspeed train (SPA)
Al-Haramain highspeed train (SPA)

The Saudi Railway Company (SAR) is preparing to launch a specialized program to localize the railway industry in the coming days. This comes as SAR surpassed 50% local spending in 2023, with plans to reach 60% by 2025 through partnerships with industry stakeholders.

In remarks to Asharq Al-Awsat, CEO of SAR Dr. Bashar Al Malik said the program will be unveiled during the Saudi International Railway Conference, set to take place on November 20–21 in Riyadh.

Held under the patronage of Eng. Saleh Al-Jasser, Minister of Transport and Logistics Services and Chairman of SAR, the inaugural edition of the conference will showcase the latest advancements and innovations in the railway sector at both local and international levels.

According to Al Malik, the conference will outline specific objectives and present promising investment opportunities in the railway sector. These include establishing manufacturing facilities within Saudi Arabia, localizing services, and transferring expertise through partnerships with leading global railway companies. The initiative aims to empower the private sector, support small and medium enterprises (SMEs), and invest in cutting-edge technologies to ensure sustainability in operations.

He further explained that SAR has implemented numerous initiatives in recent years in collaboration with public and private entities to localize industries related to the operation and maintenance of rail infrastructure. This effort has significantly increased local spending, enhanced private sector participation, and created over 10,000 direct and indirect jobs, with a Saudization rate exceeding 88%.

Al Malik highlighted Saudi Arabia’s leadership in adopting electric high-speed trains with zero carbon emissions, such as the Haramain High-Speed Railway. Additionally, SAR has conducted hydrogen train trials, marking the first such initiative in the Middle East and Africa. This reflects the company’s commitment to the Saudi Green Initiative, he remarked.

According to Al Malik, rail transport represents a sustainable and environmentally friendly option, significantly reducing the number of trucks and cars on highways. He stressed that this shift directly contributes to lowering harmful carbon emissions, protecting the environment, preserving road infrastructure, and improving traffic safety.

Moreover, Al Malik emphasized the critical role of railways as a key enabler of logistics in many countries, facilitating cargo transportation, promoting trade, and driving economic growth.

In Saudi Arabia, railways play a vital role in maintaining the smooth flow of global trade, especially during geopolitical challenges, he told Asharq Al-Awsat.

He revealed that Saudi trains efficiently transported large volumes of containers and goods from the Red Sea after many shipping lines rerouted their vessels to ports in the Eastern Province, such as Dammam and Jubail, which are connected to SAR’s rail network. These shipments were then seamlessly transported to Riyadh’s dry port via SAR freight trains.

Al Malik further noted that Saudi Arabia is developing two flagship projects: the Land Bridge and the GCC Railway Link, which he said will play a pivotal role in achieving Saudi Arabia’s Vision 2030 goal of becoming a global logistics hub connecting three continents.

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China Exempts Some Goods from US Tariffs to Limit trade War Pain

TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
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China Exempts Some Goods from US Tariffs to Limit trade War Pain

TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT
TOPSHOT - An aerial view shows cargo containers stacked at a port in Shanghai on April 20, 2025. (Photo by AFP) / China OUT

China has exempted some US imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

The dispensation, which follows de-escalatory statements from Washington, signals that the world's two largest economies were prepared to rein in their conflict, which had frozen much of the trade between them, raising fears of a global recession.

Beijing's exemptions - which business groups hope would extend to dozens of industries - pushed the US dollar up slightly and lifted equity markets in Hong Kong and Japan.

“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Center, a think tank.

But, he cautioned: "It’s clear that neither the US nor China want to be the first in reaching out for a deal."

China has not yet communicated publicly on any exemptions. A Friday statement by the Politburo, the Communist Party's elite decision-making body, focused on efforts to maintain stability at home by supporting firms and workers most affected by tariffs.

The readout, which followed the Politburo's regular monthly meeting, showed that Beijing was also ready to hunker down and fight a trade war of attrition if needed to outlast Washington in enduring the pain from the breakdown of their relationship.

A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.

The ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of US tariffs on investment and the operation of foreign firms in the country.

"The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the US that you cannot find anywhere else and so would shut down your supply chain," American Chamber of Commerce in China President Michael Hart said.

Hart added some member pharmaceutical companies had reported being able to import drugs to China without tariffs. He believed the exemptions were drug-specific, not industry-wide.

The chief executive of French aircraft engine maker Safran said on Friday it had been informed last night that China had granted tariff exemptions on "a certain number of aerospace equipment parts" including engines and landing gear.

The tariff exemptions under consideration by Beijing could provide cost relief for companies in China and take pressure off US exports at a time when the Trump administration has shown signs of wanting to make a deal with Beijing.

The European Union Chamber of Commerce in China also said it had raised the issue of tariff exemptions with the commerce ministry and was awaiting a response.

"Many of our member companies are significantly impacted by the tariffs on critical components imported from the US," President Jens Eskelund said.

A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among some businesses and trade groups on Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines.

Huatai Securities said the list corresponded to $45 billion worth of imports to China last year.

China's customs agency and Ministry of Commerce did not reply to requests for comment. China's foreign ministry said it was not familiar with tariff exemption plans, redirecting queries to "relevant authorities".