Saudi Arabia Calls from Davos to Reshaping Global Economic Approach

Saudi Arabia has called for a “reshaping of the global economic approach” amidst severe disruptions and trade tensions that are impacting global growth rates and, consequently, the standard of living for individuals worldwide.

Economic sectors across the globe are grappling with instability due to rising debt levels, inflation rates, and fluctuating local currencies, which have diminished the purchasing power of many consumers. At the same time, some countries are imposing tariffs on certain exports, a move that could drive inflation back to record highs and further restrict international trade.

Saudi Arabia concluded its participation in the 2025 World Economic Forum annual meeting, held in Davos, Switzerland, from January 20 to 24, by announcing its partnership with the WEF to host a high-level recurring international forum starting in the first half of 2026.

Headed by Foreign Minister Prince Faisal bin Farhan bin Abdullah, the delegation showcased key achievements and objectives under Vision 2030 while engaging in public and private discussions about solutions to global challenges.

The WEF, in collaboration with Tourism Minister Ahmed Al-Khateeb, published a research paper titled “The Future of Travel and Tourism: Embracing Sustainable and Inclusive Growth,” which highlighted trends in the tourism sector and the importance of cross-sector collaboration. Additionally, the Ministry of Tourism released a white paper detailing the unique opportunities offered by Vision 2030 in the tourism industry.

In another significant announcement, the WEF, in partnership with the Global Cybersecurity Forum Foundation, launched the Cyber Economics Center, to be headquartered in Riyadh. The center aims to serve as a global think tank exploring the economic dimensions of cybersecurity and to provide reliable insights and in-depth studies to help policymakers worldwide understand the link between economies and cybersecurity.

The Royal Commission for Jubail and Yanbu also announced the inclusion of Jubail Industrial City in the Transformation Towards Sustainable Industrial Clusters initiative, launched by the WEF in 2025. Jubail became the first industrial city in the Middle East to join this global initiative, in collaboration with Accenture and the Electric Power Research Institute (EPRI).

Moreover, the Research, Development, and Innovation Authority released a report on the Markets of Tomorrow Accelerator initiative in Saudi Arabia, highlighting its contributions to fostering positive economic transformations through entrepreneurship-focused solutions. The report outlined future opportunities for enabling the growth of promising markets in the Kingdom.

Salesforce announced plans to establish a new regional headquarters in Riyadh and pledged to provide skill development opportunities for 30,000 Saudi citizens by 2030. The company also unveiled a partnership with IBM to open an artificial intelligence innovation hub in the Kingdom.

The Saudi delegation included several ministers, such as Commerce Minister Dr. Majid Abdullah Al-Qasabi, Tourism Minister Ahmed bin Aqil Al-Khateeb, Minister of State for Foreign Affairs and Climate Envoy Adel bin Ahmed Al-Jubeir, Investment Minister Khalid bin Abdulaziz Al-Falih, Finance Minister Mohammed bin Abdullah Al-Jadaan, Communications and IT Minister Abdullah bin Amer Al-Swaha, Industry and Mineral Resources Minister Bandar bin Ibrahim Al-Khorayef, and Economy and Planning Minister Faisal bin Fadel Al-Ibrahim.

Delegation members participated in key discussions, including panels on “The Future of Growth,” “Diplomacy in Times of Chaos,” “Inclusive Innovation Ecosystems,” “Challenges for Emerging Economies,” “Protecting the Environment and Securing Humanity,” “The Future of Travel,” “The State of AI Governance,” and “Economic Transformation in the Kingdom.”

As part of its participation, the Ministry of Economy and Planning organized the Saudi House initiative, a global platform showcasing Saudi Arabia’s transformation under Vision 2030. The pavilion, attended by more than 5,000 visitors, featured several government entities, including the Ministries of Health, Transport and Logistics, Communications and IT, Tourism, Investment, the Royal Commission for Jubail and Yanbu, the General Authority of Civil Aviation, and the Royal Commission for AlUla.

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.

Saudi Arabia Calls from Davos to Reshaping Global Economic Approach