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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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IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
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IEA, IMF and World Bank to Coordinate Response to Middle East War's Impact

A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked
A displaced man prepares his shisha, at a temporary encampment for displaced people, amid escalating hostilities between Israel and Hezbollah, in Beirut, Lebanon, April 1, 2026. REUTERS/Raghed Waked

The heads of the International Energy Agency, International Monetary Fund, and World Bank on Wednesday said they will form a coordination group to maximize their response to the significant economic and energy impacts of the war in the Middle East.

In a joint statement, the three global bodies noted that the war had caused major disruptions in the region and triggered one of the largest supply shortages in global energy market history.

"At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, ⁠align analysis, and coordinate ⁠support to policymakers to navigate this crisis," the heads of the IMF, IEA and World Bank said.

The new coordination group will assess the severity of impacts across countries, coordinate a response mechanism, and mobilize stakeholders to deliver support to countries in need, the international bodies said.

The response mechanism could include targeted policy advice, assessment of potential financing needs ⁠and related provision of financial support, including through low or zero-percent financing, as well as unspecified risk mitigation tools, they said.

Thousands of people have been killed across the Middle East in the war, which began when the US and Israel struck Iran on February 28, triggering Iranian attacks on Israel, US bases and the Gulf states, while opening a new front in Lebanon.

Now in its second month, the conflict has spread across the region, disrupting energy supplies and threatening to send the global economy into a tailspin.

"The impact is substantial, global, and highly asymmetric, disproportionately ⁠affecting energy ⁠importers, in particular low-income countries," Reuters quoted the IMF, IEA and World Bank as saying.

They noted that the war was already resulting in higher oil, gas and fertilizer prices, while triggering concerns about food prices and affecting global supply chains of helium, phosphate, aluminum, and other commodities. Tourism had also been hit.

"The resulting market volatility, weakening of currencies in emerging economies, and concerns about inflation expectations raise the prospect of tighter monetary stances and weaker growth," the organizations said.

"We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms," they said.

Business

Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA
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Saudi Arabia: Mawani Announces Commencement of Container Terminal Operations at Jubail Port

Jubail Commercial Port. SPA
Jubail Commercial Port. SPA

The Saudi Ports Authority “Mawani” has announced the commencement of container terminal operations at Jubail Commercial Port under a privatization contract with Saudi Global Ports (SGP), backed by private sector investments exceeding SAR2 billion ($533 million).

The new move is in line with the objectives of the National Transport and Logistics Strategy under Saudi Vision 2030, Mawani said in a statement on Wednesday.

“The commencement of operations comes as part of the implementation of the privatization contract signed between the two parties, which includes the development of infrastructure and the modernization of operational equipment,” it said.

“This includes increasing berth length from 1,000 m to 1,400 m, deepening berths from 14 m to 18 m, increasing the number of STS cranes from 6 to 10, and raising the number of RTG cranes from 13 to 29 automated, environmentally friendly cranes,” the statement added.

According to Mawani, the launch will increase the container terminal’s handling capacity from 1.5 million TEUs to 2.4 million TEUs annually, across an area of 460,000 square meters.

This will enable the terminal to accommodate large next-generation vessels, enhance operational efficiency, and reinforce Jubail Commercial Port’s position as a key logistics gateway supporting the Kingdom’s sustainable growth.

It will also strengthen operational integration with the Group’s terminals across the Eastern Coast ports.

Business

Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
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Germany Growth Forecasts Slashed as Mideast War Hits Economy

Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File
Germany's economy is struggling with fierce Chinese competition in sectors from cars to chemicals © Ronny HARTMANN / AFP/File

Leading economic institutes more than halved their growth forecast for Germany on Wednesday, warning that the energy shock caused by the Middle East war would hit Europe's top economy hard.

A group of leading institutes slashed their joint GDP growth forecast for 2026 to 0.6 percent, down from a September prediction of 1.3 percent.

Inflation is now forecast to rise to 2.8 percent, up from 2.0 percent, "weighing on household purchasing power".

"The energy price shock triggered by the Iran war is hitting the recovery hard," said economist Timo Wollmershaeuser of the Ifo institute, adding that increased government spending was nevertheless "preventing a stronger slide", AFP reported.

Oil and natural gas prices have surged since the end of February, when the United States and Israel attacked Iran, killed its supreme leader and plunged the Middle East into war.

Iran has since closed the Strait of Hormuz to ships of countries it considers allied with the US and Israel, effectively blocking a sea lane that normally transports about a fifth of the world's oil and liquefied natural gas.

Higher inflation in Germany would hit consumer spending, the institutes said, weighing on an already weak economy that has barely grown since a burst of pent-up demand after the Covid pandemic in 2022.

The government on Wednesday introduced rules allowing petrol stations to only raise prices once a day, at noon.

But motorist Sebastian, a 49-year-old estate agent who did not want to give his surname, told AFP at a Frankfurt petrol station that this was not enough to protect his spending power.

"Whether the price of petrol changes once a day or 10 times a day doesn't really matter," he said, adding it was "certainly not enough" to lower his costs.

Germany's economy, struggling with fierce Chinese competition in sectors from cars to chemicals, was in the doldrums even before US President Donald Trump last year imposed sweeping new tariffs before starting the Mideast war in late February.

Chancellor Friedrich Merz, who took office last May, vowed to borrow and spend hundreds of billions through a special infrastructure fund over coming years in what was dubbed a spending "bazooka" aimed at getting the economy back on its feet.

But the economists said that much of the money was simply paying for day-to-day spending.

"Government expenditure on consumption is rising much more sharply than investment," economist Oliver Holtemoeller of the Halle Institute for Economic Research said. "That was not the idea behind changing the financing rules."

The outlook for the longer term was also dire.

Citing low productivity, industrial decline and an ageing population, the institutes warned that Germany's economy would soon be unable to grow sustainably.

"We have also reassessed the structural changes in the German economy and, in particular, revised our forecast for industrial growth downwards," Wollmershaeuser said.

In an era when "demographic change is hitting with full force", he said, "potential growth will come to a standstill by the end of the decade, and we will have to get used to average GDP growth rates of zero percent".

Speaking to broadcaster Welt TV, Economy Minister Katherina Reiche said the government was working on reducing labour taxes and energy costs but that Germans would have to get used to working more over the course of their lives.

"We need to make this country vigorous again," she said. "Germany needs to get its will to win back."