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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

Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
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Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo

Swiss companies plan to relocate some of their operations and production abroad to deal with the impact of US tariffs, according to a study by business association economiesuisse.

It surveyed more than 400 companies before and after Switzerland last month agreed a deal to reduce US tariffs from 39% to 15%, with a quarter of the firms already having identified concrete steps they were taking, Reuters reported.

Nearly a third of those firms have decided to increase investments outside Switzerland and shift production and operations abroad, the survey said.

Some 16% of companies said they were going to relocate operations to countries outside the European Union or the United States, in addition to 10% going to the US, and another 5% looking at the European Union.

Other options included looking more at other markets, raising prices and even halting exports to the US.

Rudolf Minsch, economiesuisse's chief economist, said the relocation and investment was not damaging for Switzerland, which remained an attractive business location, though he cautioned high-skilled jobs and R&D should be kept.

As part of its agreement, Bern has also pledged $200 billion in investments from its companies in the US, raising concerns about the potential long-term economic impact.

UBS has said if the pharmaceuticals industry - Switzerland's biggest export sector - relocates all US-bound production to that country - cumulative Swiss economic growth over five years would be reduced from a forecast 10% to 7.7%.

Minsch said Switzerland was too small to absorb the $200 billion, and had a long tradition of investing abroad.

Those investments also helped secure jobs at home, he said.

Business

UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.

Business

World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).