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Novak to Asharq Al-Awsat: Russia and Saudi Arabia Achieved Remarkable Success in Global Bilateral Cooperation

Novak speaking at the Saudi-Russian Investment and Business Forum 2025. (X). 
Novak speaking at the Saudi-Russian Investment and Business Forum 2025. (X). 
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Novak to Asharq Al-Awsat: Russia and Saudi Arabia Achieved Remarkable Success in Global Bilateral Cooperation

Novak speaking at the Saudi-Russian Investment and Business Forum 2025. (X). 
Novak speaking at the Saudi-Russian Investment and Business Forum 2025. (X). 

Russian Deputy Prime Minister Alexander Novak has underscored the “central” nature of Saudi-Russian relations, emphasizing what he described as “significant success” in efforts to broaden bilateral cooperation and maintain close coordination on the international stage. He noted that political ties between the two nations “continue to advance rapidly.” 

In an exclusive interview with Asharq Al-Awsat, marking the 9th Russian-Saudi Joint Committee and the Saudi-Russian Investment and Business Forum 2025 in Riyadh, Novak said: “Russian-Saudi political ties are actively developing; we are successfully expanding our bilateral cooperation and maintaining close interaction on the international stage.  

“The established relationship of trust and dialogue between the leaders of our countries – President of Russia Vladimir Putin and Crown Prince, Prime Minister of Saudi Arabia Mohammed bin Salman – gives impetus to this process,” emphasized the Deputy Prime Minister. 

 “Our joint efforts confirm our mutual interest and firm intention to continue making every effort to develop Russian-Saudi economic ties and to seek ways to improve bilateral cooperation,” Novak noted. 

Expanding Russian-Saudi Partnership 

“There is significant potential in Russian-Saudi cooperation in the field of energy, the realization of which requires fully utilizing existing technological and production capacities”, stated Novak. 

He added: “We are ready to develop cooperation with the Saudi side in a number of areas: high technologies in the energy sector, including the use of artificial intelligence; participation of Russian companies as engineering partners in hydropower, engineering communications, and geological exploration projects in Saudi Arabia; as well as in projects for the construction and modernization of thermal power plants, the supply of domestically produced energy equipment, water resources management, water purification and seawater desalination, cooperation in the field of nuclear energy—including the construction of nuclear power plants of various capacities and support for the plant’s lifecycle”. 

Novak went on to say that “The Russian Federation and Saudi Arabia are actively cooperating in the field of healthcare. We would like to intensify interaction in the area of pharmaceutical supply and biotechnology development, and expand scientific cooperation. We invite citizens of Saudi Arabia to study medical specialties in our country”. 

The Deputy Prime Minister pointed to “an important area of cooperation on the humanitarian track is education and science. We are strong in engineering specialties, medicine, as well as information technology. I emphasize that the level of training at Russian universities is confirmed by international achievements. We invite citizens of Saudi Arabia to our universities. Joint implementation of scientific projects will give an additional impetus to our cooperation. 

“There is significant potential for cooperation between our countries in such sectors as the pharmaceutical industry, rehabilitation industry, medical equipment, equipment for the fuel and energy complex, renewable energy sources and ‘green’ solutions for industry, as well as a number of engineering sectors, including solutions for urban transport—environmentally friendly electric vessels, rail and monorail transport,” noted Novak. 

Novak, Saudi Minister Held Plenary Session of the 9th Joint Intergovernmental Russian-Saudi Commission 

Novak and the Minister of Energy of Saudi Arabia, Prince Abdulaziz bin Salman Al Saud, as co-chairs, held the plenary session of the 9th Joint Intergovernmental Russian-Saudi Commission on Trade, Economic, Scientific and Technical Cooperation. 

“Russian-Saudi political ties are actively developing; we are successfully expanding our bilateral cooperation and maintaining close interaction on the international stage. The established relationship of trust and dialogue between the leaders of our countries – President of Russia Vladimir Putin and Crown Prince, Prime Minister of Saudi Arabia Mohammed bin Salman – gives impetus to this process,” emphasized the Deputy Prime Minister. 

Novak noted the dynamically developing trade and economic cooperation between the countries. Over the past five years, the volume of bilateral trade has doubled, and this year growth has continued, amounting to 85%. The volume of accumulated investments in the Kingdom over the previous year increased sixfold, while accumulated Saudi investments in Russia grew by 11%. More than 40 joint projects have been implemented within the framework of the Russian Direct Investment Fund and the Saudi Arabian Sovereign Wealth Fund. 

A significant place is occupied by cooperation in the energy sector. Interaction continues within the OPEC+ agreement. Opportunities for expanding bilateral cooperation are also being considered in a number of areas, including: supply of domestically produced energy equipment, introduction of high technologies and artificial intelligence in the fuel and energy sector, participation of Russian companies as engineering partners in energy projects in Saudi Arabia. There is significant potential for cooperation in peaceful nuclear energy, industry, healthcare, transport and information and communication technologies, science and education, tourism, culture, and sports. 

"It is significant that in the year marking the 100th anniversary of the establishment of diplomatic relations between our countries, Saudi Arabia will act as the guest country at the St. Petersburg International Economic Forum in 2026, which will be held from June 3 to 6." 

“Our joint efforts confirm our mutual interest and firm intention to continue making every effort to develop Russian-Saudi economic ties and to seek ways to improve bilateral cooperation,” Novak noted. 

At the end of the plenary session, the final protocol of the 9th Joint Intergovernmental Russian-Saudi Commission was signed.  

 

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Business

China’s Factory Activity Snaps Record Slump on Festive Stockpiling

People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
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China’s Factory Activity Snaps Record Slump on Festive Stockpiling

People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)
People walk down steps near a residential building area with a view of China Zun, the tallest skyscraper in Beijing, Tuesday, Dec. 23, 2025. (AP)

China's factory activity unexpectedly grew in December, snapping a record eight straight months of decline, lifted by a rise in pre-holiday orders ​as officials seek to spur the $19 trillion economy's manufacturing sector without worsening deflation.

The official purchasing managers' index (PMI) rose to 50.1 in December from 49.2 in November, the National Bureau of Statistics' survey showed on Wednesday, topping the 50-point mark separating growth from contraction and beating a forecast of 49.2 in a Reuters poll.

"Assuming the improvement in the PMIs is borne out in the hard data, we think it will likely be a short-lived upturn in activity on the back of month-to-month swings in fiscal spending rather than the start of a more sustained pick-up," said Julian Evans-Pritchard, head of China economics at Capital Economics.

"The big picture is that the structural headwinds from the property ‌downturn and industrial ‌overcapacity are set to persist in 2026," he added.

Still, the data should ‌give ⁠policymakers ​cause for ‌optimism after choosing to see out 2025 without major additional stimulus to meet the full-year growth target of around 5%.

The production sub-index jumped to 51.7 from 50.0 in November, while new orders climbed to 50.8 from 49.2, marking their strongest performance since March. Supplier delivery times also improved, pushing the production and activity expectations component to 55.5, its highest reading since March 2024.

New export orders remained sluggish, however, edging up to 49.0 from November's 47.6, underscoring the need for officials to boost domestic demand and rely less on US demand, the world's top consumer market, in the face of President Donald Trump's ⁠tariffs.

Huo Lihui, an NBS statistician, said confidence appeared to be improving due to pre-holiday stockpiling, as the world's second-largest economy prepares to celebrate the Lunar ‌New Year in February, pointing to an uptick in the agricultural, food processing ‍and food and beverage sectors.

A separate private-sector PMI ‍published on Wednesday also showed marginal expansion in activity in December, driven by stronger production and domestic demand ‍in the absence of more foreign orders.

DEPRESSED DOMESTIC DEMAND

Ginning up domestic manufacturing without taking further steps to boost consumer demand risks worsening deflationary pressures, however.

In separate data released last week, Chinese industrial firms saw their profits fall 13.1% year-on-year in November, the steepest drop in over a year, suggesting households are not stepping in to pick up the shortfall as a slowing global economy weighs ​on exports.

At an agenda-setting gathering in early December, the ruling Communist Party leadership promised to boost income and stimulate consumption, although similar pledges in the past have struggled to deliver results.

Chinese consumers ⁠have so far been reluctant to spend, held back by an uncertain employment outlook and as a prolonged property crisis drains household wealth.

The official non-manufacturing PMI, which includes services and construction, was at 50.2, after shrinking in November for the first time in nearly three years.

Beijing's policymakers have come to recognize the need to rebalance the economy and transform its production-driven model as tensions with key export markets mount.

"The country's economic development still faces many old problems and new challenges; the impact of changes in the external environment is deepening, and the contradiction between strong supply and weak demand is prominent domestically," the readout of the Central Economic Work Conference said.

In an article published by the flagship party magazine Qiushi Journal in mid-December, President Xi Jinping said there was "overall capacity excess" and that "ultimately consumption is the sustainable driver of economic growth."

Beijing had previously rejected "overcapacity" as unfair criticism by Western governments towards China's industrial policies.

In a nod to those concerns, authorities ‌have this year vowed to crack down on price wars, prune production in some sectors and step up so-called "anti-involution" efforts.

The NBS composite PMI of manufacturing and non-manufacturing was 50.7 in December, compared with November's 49.7.

Business

Xi Says China to Hit 2025 Growth Target of 'Around 5%'

Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
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Xi Says China to Hit 2025 Growth Target of 'Around 5%'

Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)
Pedestrians walk along a street in the Central Business District of Beijing, China, 31 December, 2025. (EPA)

Chinese President Xi Jinping said Wednesday that the country's economy is expected to have grown "around five percent" in 2025, despite "pressure" during a year he described as "very unusual", state media said.

The announcement came in a New Year's Eve speech by Xi to a top political consultative body, reported by state news agency Xinhua.

Such an annual expansion would be in line with the official government target and on par with the five percent growth recorded in 2024.

The world's second-largest economy has come under increasing pressure in recent years, with consumer sentiment having so far failed to recover from a pandemic-induced plunge.

A persistent debt crisis in the property sector, industrial overcapacity and heightened trade conflict with Washington have also darkened the outlook.

"We faced challenges head-on and strived diligently, successfully achieving the main goals of economic and social development," Xi said in his remarks to the Chinese People's Political Consultative Conference, Xinhua reported.

"The growth rate is expected to reach around five percent," he said.

He added that "overall social stability was maintained" and an anti-corruption drive was "relentlessly pursued", according to the report.

Experts widely expect Beijing to announce a similar economic growth target for 2026 at a major annual political gathering in early March.

Data released Wednesday offered a positive sign for policymakers, with factory activity in December inching into expansionary territory to snap an eight-month streak of contraction.

Business

India Overtakes Japan as World's 4th Largest Economy

 A man walks at the seafront as scattered clouds are seen over Mumbai's skyline, India, June 10, 2015. (Reuters)
 A man walks at the seafront as scattered clouds are seen over Mumbai's skyline, India, June 10, 2015. (Reuters)
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India Overtakes Japan as World's 4th Largest Economy

 A man walks at the seafront as scattered clouds are seen over Mumbai's skyline, India, June 10, 2015. (Reuters)
 A man walks at the seafront as scattered clouds are seen over Mumbai's skyline, India, June 10, 2015. (Reuters)

India has overtaken Japan as the world’s fourth largest economy and officials hope to pass Germany within three years, the government’s end-of-year economic review revealed.

Official confirmation, however, depends on data due in 2026 when final annual gross domestic product figures are released, with the International Monetary Fund (IMF) suggesting India will cross over Japan next year, reported AFP.

“India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum,” read the government economic briefing note, which was released late on Monday.

“With GDP valued at $4.18 trillion, India has surpassed Japan to become the world’s fourth largest economy, and is poised to displace Germany from the third rank in the next two-and-a-half to three years, with projected GDP of $7.3 trillion by 2030.”

IMF projections for 2026 put India’s economy at $4.51 trillion, compared with Japan’s $4.46 trillion.

The upbeat assessment comes despite economic worries after Washington in August hit India with huge tariffs over its purchases of Russian oil.

New Delhi said continued growth reflects its “resilience amid persistent global trade uncertainties”. But other measurements offer a less rosy outlook.

In terms of population, India overtook neighboring China as the most populous nation in 2023.

India’s GDP per capita was $2,694 in 2024, according to the latest World Bank figures, 12 times smaller than Japan’s $32,487, and 20 times smaller than Germany’s $56,103.

Government figures show that more than a quarter of India's 1.4 billion people are aged between 10 and 26. Creating enough well-paid jobs for millions of young graduates is an upcoming hurdle, but the report offered a rosy outlook.

“As one of the world's youngest nations, India's growth story is being shaped by its ability to generate quality employment that productively absorbs its expanding workforce and delivers inclusive, sustainable growth,” a note in the review said.

India’s Prime Minister Narendra Modi this year unveiled sweeping consumption tax cuts and pushed through labor law reforms after growth slowed to a four-year low in the 12 months ending March 31.

Currency pressures have also mounted.

The rupee hit a record low against the dollar in early December, after falling about 5% in 2025.

That came amid concerns over the lack of a trade deal with Washington and the impact of higher levies on Indian goods.

India became the world's fifth largest economy in 2022, when its GDP overtook that of former colonial ruler Britain, according to IMF figures.