Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
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Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)

Relations between Saudi Arabia and Sweden are witnessing rapid development with the expansion of cooperation in the fields of innovation, logistics and services and others.

Swedish Ambassador to Saudi Arabia Petra Menander told Asharq Al-Awsat that the Saudi-Swedish joint committee is currently working on further deepening relations.

“In November last year, we agreed on 45 activities across four sectors to improve our cooperation, half of which have been implemented,” she added.

“Sweden and Saudi Arabia are natural partners in the global transition toward a more sustainable, knowledge-based economy,” she remarked.

“The presence of approximately 60 Swedish companies in the Kingdom, many of which are expanding their operations, demonstrates strong confidence in the Saudi market and its long-term potential,” she stressed.

“Saudi Arabia is Sweden’s largest trading partner in the Middle East and North Africa. While trade volumes vary year to year, the overall trajectory is one of steady growth. Our bilateral trade grew almost 5 % last year and has increased by more than 90% since 2018,” the ambassador went on to say.

Moreover, Menander added: “As the European Union, we are Saudi Arabia's most important partner for investments and trade and that is a relationship that can grow deeper. Sweden is one of the strongest supporters of free trade within the European Union and we believe that there is a great potential to further increase trade between our countries.”

“Half of the Swedish companies have or are planning to set up regional headquarters in Saudi Arabia, many of them are engaged in local manufacturing in the Kingdom and they invest in research and in training the thousands of young Saudi talents they employ,” she said.

She added that Sweden has a strong desire to expand in green energy and smart climate solutions. Swedish companies, such as Hitachi Energy, ABB and Systemair, are contributing to energy efficiency, electrification, and renewable infrastructure.

In the fields of logistics and infrastructure, she noted that “Swedish engineering and design firms are contributing to the planning and execution of major infrastructure projects and have a strong track record in delivering leading solutions for major projects, including within road, rail and air transport with companies such as Sweco, Volvo Trucks and Scania.”

Healthcare and life sciences are among the foundations of cooperation. “Swedish firms such as Diaverum, Getinge, and AstraZeneca are delivering high-quality care and conducting clinical research in the Kingdom,” said Menander.

Furthermore, she revealed that Swedish companies, such as Epiroc and Quant, are helping to modernize and decarbonize the mining sector through advanced technologies.

Sweden is also a global leader in digital maturity and connectivity. Companies like Ericsson are not only advancing 5G and 6G technologies but also investing in local R&D partnerships, added the ambassador.

In terms of smart industry and automation, she said: “With companies like Tetra Pak, Roxtec and SKF, Sweden supports the development of sustainable and efficient industrial ecosystems.”

These areas reflect Sweden’s strengths in innovation, equality, and long-term thinking essential for building resilient and future-ready economies, added the ambassador.

Furthermore, Menander described ties between Saudi Arabia and Sweden as excellent. “They are grounded in mutual respect, shared ambitions, and a commitment to long-term partnership. Our kingdoms are united by a forward-looking vision - one that embraces creativity, working together towards sustainability and growth,” she told Asharq Al-Awsat.

“In foreign policy our positions align om many key areas, as was seen during political consultations in Stockholm between Vice Minister of Foreign Affairs Eng. Waleed bin Abdulkarim El-Khereiji and State Secretary for Foreign Affairs Dag Hartelius.”

She also noted the “close cooperation between Saudi and Swedish business sectors, where there are great opportunities to enhance the partnership between our two countries.”

“I attended the executive meeting of the Saudi-Swedish Joint Business Council in Stockholm in May, where leading private companies from our two kingdoms discussed new economic initiatives,” she said.

“There about 60 Swedish companies with a presence in Saudi Arabia feel at home and are committed to strengthening their ties with the Kingdom. According to a Business Climate Survey which was conducted among Swedish companies and just published, 91% view the business climate as good or very good and 74% plan to increase their investments.”

“We also see an exciting dialogue in new areas, for instance through Swedish participation in the recent Arab European Cities Dialogue, where participants from Sweden saw many similarities when two regions came together to discuss governance, urban planning, and digitalization for a better future,” stressed Menander.

“We see that the numbers of visitors in both directions between our countries are going up, and we see new partnerships budding almost every day. We see more Saudi film and music appearing in Sweden and we increasingly see Swedish fashion, music and gaming in Saudi Arabia,” she remarked. “In fact, I often meet young Saudis who know about Sweden because they work for Swedish companies like Ikea and H&M.”

“Finally, we see a great interest in deeper cooperation in the field of innovation. Sweden ranks among the most innovative countries in the world and Saudi Arabia makes impressive investments into building an innovative ecosystem with close links between research and entrepreneurship,” she noted.

“We are happy to see that the cooperation is flourishing, including through institutional cooperation and by visits of start-ups both from Saudi Arabia to Sweden and from Sweden to Saudi Arabia,” continued Menander.

“Our cooperation spans a wide range of sectors where Swedish expertise and values align closely with the ambitions of Vision 2030. During our recent national day celebration, some of our companies displayed examples of how they contribute to these goals,” she said.

“These investments are aligned with Saudi Arabia’s Vision 2030, focusing on sectors such as green transition, healthcare, logistics and smart manufacturing and in many cases also include investments into research and development in Saudi Arabia,” the ambassador stated. “In parallel, we see a growing interest in collaboration between Swedish and Saudi incubators, particularly to support small and medium-sized enterprises (SMEs).”

“In May, Business Sweden, the Swedish Trade and Invest Council in Riyadh, organized two trade delegations to Saudi Arabia. The first focused on infrastructure projects and included Swedish companies specializing in digital solutions, construction equipment, energy, waste management, and air and water treatment solutions. These companies explored how Swedish expertise could contribute to Saudi Arabia's Vision 2030 by engaging with several giga projects,” Menander explained.



Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
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Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)

Brazilian President Luiz Inacio Lula da Silva urged US counterpart Donald Trump in a phone call Friday to resolve their countries' trade dispute, saying US tariffs were imposed on "baseless" grounds.

Washington imposed two new sets of tariffs on the Latin American giant in July, a move that has become a key campaign issue ahead of Brazil's presidential election in October.

Lula -- seeking a fourth and final term -- told Trump that the tariffs "negatively affect both Brazil and the United States," according to a statement from his office.

"To remain at the negotiating table is the best option for both countries," he said.

Relations between Trump and the leftist Lula have blown hot and cold in recent months, but diplomatic tensions have flared as the election approaches.

Trump has backed several victorious right-wing candidates in recent Latin American elections. He is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio is Lula's main election rival.

The Brazilian presidency statement said the conversation between Trump and Lula lasted an hour and 20 minutes and "took place in a friendly and cordial tone."

During a campaign event in the southeastern state of Minas Gerais, Lula said Trump asked Commerce Secretary Howard Lutnick to contact his Brazilian counterpart Marcio Elias Rosa "and they already scheduled a meeting."

He added that Trump acknowledged during their call that the tariffs on Brazil are "based on a lie."

Lula, who like Trump is 80, has made national sovereignty a key theme of his campaign.

In an interview last week, he warned Trump: "Don't meddle in Brazil's affairs, especially regarding the election. If you do meddle, you'll lose."

"I said, 'Hey Trump, if you want to fight organized crime, let's fight organized crime,'" Lula told the crowd in Minas Gerais. "We want to work together. What we don't want is interference in Brazil."

- 'Daily terror'-

The two leaders have often appeared to get on well one-on-one, with Trump last year hailing an "excellent chemistry" with Lula.

The US last year dropped punitive tariffs it imposed over the trial against Jair Bolsonaro, which Trump labelled a "witch hunt," after diplomatic efforts by Lula's government.

However, Lula then suffered a blow after a May visit to the White House by Flavio Bolsonaro.

Two days later, the US designated Brazil's two largest drug cartels as terrorist organizations, which Flavio has said was a personal request.

"These criminal groups inflict daily terror on the most vulnerable populations, but they are not the same as terrorist organizations," Lula told Trump.

Security is the main concern of Brazilians heading into this year's elections, polls have shown.

Flavio Bolsonaro is pushing for a tough-on-crime model like that of El Salvador's President Nayib Bukele, whose sweeping crackdown on gangs and mass detentions have drawn controversy.

- Deforestation and PIX -

The United States imposed a 25-percent tariff on a range of Brazilian goods over policies it argued harm US commerce, such as deforestation and a free electronic payments system known as PIX.

Brazilian data shows deforestation in the Amazon fell last year to its lowest point since 2016.

Brazil was also impacted under a separate global tariff regime against US trading partners accused of using forced labor.

Lula has repeatedly said he believes it was US Secretary of State Marco Rubio and not Trump who was behind the tariffs against Brazil.

"Trump is the best of the lot, and the one who talks most seriously with me," he said last week.


Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
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Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)

With Middle East turmoil slashing Suez Canal traffic, shipping firms are tempted to try the Arctic for quicker trips between Europe and Asia -- but commercial prospects are unlikely to match countries' strategic ambitions for the North Pole.

Container ships from China and South Korea aim to transit the Northern Sea Route in Russian territorial waters in the coming weeks, testing its viability as climate change keeps the passage free of ice longer each year.

Industry experts remain skeptical, saying that even if more vessels start going through, the bulk of global shipping will remain along established lines for the foreseeable future.

- Shorter, cheaper, harder -

Houthi militants in Yemen have disrupted traffic through the Bab el-Mandeb Strait by attacking vessels heading to and from the Suez Canal.

Many operators now avoid the passage and send ships instead around South Africa's Cape of Good Hope, vastly prolonging the journey between Asia and Europe and driving up fuel costs and emissions.

By contrast, the Northern Sea Route (NSR) could cut the distance by 30 to 40 percent compared to using the Suez Canal, and by nearly half from going around the southern tip of Africa, the credit insurance group Coface said in April.

But what looks good on spreadsheets ignores daunting constraints.

"The Arctic link can only be seasonal, from August to October," said Paul Tourret, director of the Higher Institute of Maritime Economics (ISEMAR) in Saint-Nazaire, France.

"And you need ice-class ships, which cost more," he told AFP.

That rules out Supramax and other hulking container ships that make up a major share of global traffic, since they can offer hugely competitive rates.

By contrast, the capacity of the Chinese container ship "Dubai Tower" that embarked on the NSR from Ningbo to Europe this month, is one-tenth the size, said Jerome de Ricqles, a sea freight specialist at Upply, a French-based transport management firm.

- Real but limited potential -

Most container ships using the NSR need to be escorted by Russia's fleet of nuclear-powered icebreakers.

Last year, a record 23 vessels made the passage, up from 15 in 2024, according to a recent study by insurance group Allianz Commercial.

That's fewer than the number using the Suez Canal each day.

Even with conflicts in the Middle East, some 35 ships a day transited the Egyptian canal in the first half of this year, down from more than 50 a day before the Houthis started their attacks in 2023.

The northern route is "a temporary and minuscule solution with regards to the overall needs", De Ricqles said.

According to Coface, just 3.5 percent of the current traffic between East Asia, northern Europe and North America could actually shift to Arctic routes.

Looking out to 2030, viability "remains extremely limited and mainly only concerns raw materials", Eve Barre, an economist who piloted the Coface study, said in a statement.

Even so, the NSR could attract bulk liquid vessels carrying oil and liquefied natural gas, who could see their costs slashed by 45 to 50 percent in some cases, the study found.

Dry bulk ships might also start using it, especially if they can operate with icebreaker escorts.

But the prospect also carries environmental risks if increased traffic accelerates Arctic melting, with soot emissions that settle on the ice cap trapping heat from sunlight.

Fuel spills are also a concern, and several big Western shipping firms including France's CMA-CGM, Switzerland's MSC and Germany's Hapag-Lloyd have already pledged they will not use the Northern Sea Route.

All in all, the route "isn't likely to upend the major balances of global trade", Barre said, noting that the interest in Arctic shipping "is less commercial than political" at a time of tense rivalries between Russia, China and the United States.

Tourret at the French marine institute agreed, calling the trips by the Chinese and South Korean vessels a sideshow.

"One swallow does not a summer make, and one Chinese container ship doesn't create a Polar Silk Road," he said, referring to Beijing's Belt and Road Initiative aiming to knit together a trading network between Asia, Europe and Africa.


US Hits Canadian Goods with 50% Tariffs After Trade Talks Fail

 Rolled coils of steel sit in the yard at the ArcelorMittal Dofasco steel plant in Hamilton, Ont. on Thursday, Aug. 20, 2026. (Nick Iwanyshyn /The Canadian Press via AP)
Rolled coils of steel sit in the yard at the ArcelorMittal Dofasco steel plant in Hamilton, Ont. on Thursday, Aug. 20, 2026. (Nick Iwanyshyn /The Canadian Press via AP)
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US Hits Canadian Goods with 50% Tariffs After Trade Talks Fail

 Rolled coils of steel sit in the yard at the ArcelorMittal Dofasco steel plant in Hamilton, Ont. on Thursday, Aug. 20, 2026. (Nick Iwanyshyn /The Canadian Press via AP)
Rolled coils of steel sit in the yard at the ArcelorMittal Dofasco steel plant in Hamilton, Ont. on Thursday, Aug. 20, 2026. (Nick Iwanyshyn /The Canadian Press via AP)

The US imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to reach a trade deal, with each side accusing the other of derailing days of talks.

The tariffs that came into effect just after midnight (0400 GMT) on some $20 billion of Canadian goods - things like wooden ice hockey sticks that are rarely used anymore - are far from an economic game-changer for the largest US trading partner after Mexico.

That represents just over 5% of Canada's exports to the US. But the new ‌tariffs mark an ‌increase in tensions between President Donald Trump and Prime Minister Mark ‌Carney, ⁠and will likely make broader ⁠talks to renew the US-Mexico-Canada free trade agreement more difficult.

Carney said he had suspended trade negotiations and Canada would retaliate "dollar for dollar" on the new tariffs.

"I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa," Carney said in a statement.

"They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," he said. "However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question ⁠the reliability of any deal."

Carney, the only person to ever run ‌the central banks of two major economies, was elected last ‌year on promises to stand up to Trump and remains broadly popular. Polls show most Canadians oppose making ‌any concessions to Trump.

Hours earlier, the two sides had seemed close to an agreement that ‌sources said would have lowered tariffs on steel, aluminum and autos.

"Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week," US Trade Representative Jamieson Greer said during a White House briefing.

"This is a missed opportunity for Canada to partner with ‌the United States, which is the fastest-growing economy in the G7," Greer said.

A senior Trump administration official said the US offer would have put ⁠Canada in the best ⁠tariff position of any major exporter to the US, but that Canada had sought additional concessions, especially on steel, aluminum, autos and softwood lumber.

No additional talks are scheduled as the US implements the new duties, the official said.

Trump last month threatened to impose a raft of duties on a range of Canadian imports including furniture, dairy products, cement, clothing, fishing rods, hockey equipment.

The tariffs, which do not qualify for preferential treatment under the US-Mexico-Canada free-trade agreement, open up some already vulnerable sectors to potential severe damage that could lead to job losses and business closures, trade experts have said.

The decision by the US administration followed three days of talks in Washington between Canada's minister for trade with the US, Dominic LeBlanc, and Greer.

The new duties add to existing US tariffs on steel, lumber and autos which have taken major hit in the last 18 months, although the malaise has been largely contained within these sectors.