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)
TT

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.



50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)
TT

50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)

Long-term real estate investment models are opening new opportunities for Saudi Arabia's private sector, as the Kingdom seeks to expand partnerships with investors to develop municipal assets and transform them into mixed-use projects.

The approach is expected to enhance the appeal of the real estate market, create investment opportunities spanning decades, and attract domestic and international capital to urban development. It also aims to improve land-use efficiency, maximize the economic value of municipal assets and increase housing supply.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP (NCP) announced the launch of the expression of interest, prequalification and proposal submission phases for a joint land investment project in northern Riyadh.

The project involves developing a plot of municipal land under a 50-year partnership with the private sector, marking the municipality's first initiative under this joint investment model.

The private-sector partner will be responsible for designing, constructing, operating and maintaining all project facilities.

Located on Zaid bin Asim Street, the strategically positioned 30,015-square-meter site benefits from flexible urban planning regulations that allow for mixed-use development, including residential, commercial, office and recreational facilities.

The project aims to deliver high-quality developments that meet growing demand, serve local residents and community needs, and strengthen Riyadh's urban infrastructure.

Long-Term Investment Strategies

Offering investment opportunities through contracts extending up to 50 years represents a shift in how Saudi Arabia develops government-owned real estate assets.

The model gives private-sector investors a longer timeframe to develop projects and implement long-term investment strategies, overcoming some of the limitations associated with short- and medium-term contracts.

It also strengthens investors' ability to undertake financial and operational planning, allowing them to recover development costs and generate investment returns over a longer period.

This could make such opportunities more attractive to real estate companies and institutional investors.

The project forms part of Riyadh Region Municipality's strategy to improve the efficiency of municipal asset management, expand private-sector participation in urban development and attract high-value investments.

These efforts are intended to promote sustainable urban development, keep pace with the capital's rapid growth and advance Saudi Vision 2030 objectives, in line with the municipality's ambition to help create a prosperous, sustainable Riyadh with a higher quality of life.

Project Sustainability

Real estate expert Khaled al-Mobid said the launch of a 50-year investment project in Riyadh's Al-Narjis district represents an important step toward enabling the private sector to develop real estate assets and transform them into sustainable projects with substantial economic value.

Speaking to Asharq Al-Awsat, he explained that the extended investment period encourages developers to improve construction quality and services while enhancing the financial viability of projects.

He added that the model could help diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Al-Mobid said the project's significance lies less in its immediate impact on property prices than in its potential to establish a replicable investment model.

Such a model, he noted, could gradually increase supply, strengthen competition and contribute to greater price stability across Riyadh's real estate market.

Diversifying Real Estate Supply

Real estate developer Ahmed Omar Basoudan said the importance of these contracts extends beyond simply making land available to investors.

They also create opportunities to develop integrated real estate assets combining residential, commercial, office and recreational uses, increasing the economic value of land and improving its utilization.

Speaking to Asharq Al-Awsat, Basoudan explained that bringing design, construction, operation and maintenance together under a single investment framework allows for more integrated developments.

It also creates a stronger link between construction quality, operational efficiency and long-term sustainability.

At the broader market level, he said, the model could help diversify real estate offerings, particularly in major cities experiencing rapid urban expansion and rising demand for residential, commercial and office space.

The participation of new developers and operators could also strengthen competition and improve the quality of projects and services.

Moreover, the approach could create integrated mixed-use urban destinations that meet residents' needs and support economic activity, rather than relying solely on conventional real estate development.

 

Replicating the Model

 

According to Basoudan, the success of this investment model will depend on how effectively contracts are structured, how risks are allocated between government entities and investors, and how clearly development, operation and maintenance obligations are defined.

Equally important, he said, is striking an appropriate balance between investment returns and the public interest.

Basoudan believes extending the model to other municipalities and regions could create an additional channel for attracting domestic and international investment.

It could also strengthen private-sector participation in urban development, in line with Saudi Vision 2030 objectives to diversify the economy and improve the efficiency of government asset management.


Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
TT

Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.


Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
TT

Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP

Tech firms tumbled Thursday as investors contemplated the outlook for the AI boom after Democrats swept the US midterms, partly on the back of growing anger over the rapid building of data centers across the country.

However, broader markets mostly rallied and oil plunged after Donald Trump's Republicans were dealt a historic defeat that was blamed on high prices, tariffs and the Iran war.

The result stoked hopes he will look to wind down the Middle East conflict, which would help temper inflation and even soften his stance on trade.

But AI-linked firms came under the cosh amid fears for planned data center construction projects as well as renewed scrutiny from newly installed Democrats on Capitol Hill.

The sector had already been in the crosshairs of investors owing to questions about the vast sums pumped into new facilities, R&D and chip development, and when any companies would see a profit.

Charu Chanana at Saxo Markets said the vote was accelerating a reassessment of AI that was already under way.

"A Democratic Congress introduces another layer of uncertainty: regulatory scrutiny," she wrote, adding that the three main risks were more oversight, data center restrictions and capital spending uncertainty.

"The congressional scrutiny could accelerate demands for AI safety standards, independent model evaluations and greater accountability for data center developers," she added.

However, she also said: "This is not the same as an outright anti-AI policy agenda. AI is strategically important for US competitiveness, particularly against China, and there remains considerable bipartisan interest in maintaining American leadership."

Chip firms were hammered in Asia, with South Korea's SK hynix off more than seven percent and Samsung 5.5 percent down.

Tokyo-listed Kioxia dived more than 13 percent and Advantest tanked 14.7 percent, while Tokyo Electron lost more than nine percent and SoftBank 6.8 percent.

US Nasdaq futures fell more than one percent.

Broader markets performed better as investors rotated into other sectors including finance, auto, mining and manufacturing names.

Seoul, the poster child of the AI-led surge in the first half of the year, shed more than five percent, while Taipei lost more than three percent. Tokyo gave up 1.8 percent.

But there were healthy gains in Hong Kong, helped by hopes for an easing of trade tensions between the US and China, with tech titans including Alibaba, JD.com and Tencent leading the way amid a shift into beaten-down regional stocks.

Shanghai, Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila also advanced.

Oil continued to fall after diving more than eight percent Wednesday on the US result amid optimism Trump will seek a deal to end the Iran war, which has been a key driver of the inflation spike that has hammered US consumers.

Hopes were given a boost when Vice President JD Vance said in a social media post that the Republican defeat was due to the unpopularity of the eight-month-old conflict.

The drop in crude prices -- both main contracts are now below $100 for the first time since the start of October -- has also tempered inflation worries and, in turn, Treasury yields, which dipped again Thursday.

The lower cost of borrowing has also been helped by the prospect that gridlock on Capitol Hill would lead to less spending.

That also weighed on the dollar, which held losses against its peers in Asian trade.