عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Standard Chartered: Fiscal Deficit a Catalyst of Transformation in Saudi Arabia

A general view of Riyadh. (SPA)
A general view of Riyadh. (SPA)
TT
TT

Standard Chartered: Fiscal Deficit a Catalyst of Transformation in Saudi Arabia

A general view of Riyadh. (SPA)
A general view of Riyadh. (SPA)

Standard Chartered Global Research said on Tuesday it believes the recent fiscal deficits in Saudi Arabia have not been a setback, but rather a catalyst of structural macroeconomic transformation.

In its latest Global Focus report, SC Global Research expects Saudi policy makers to continue their efforts in diversifying funding sources in 2026, seeking to attract greater foreign direct investment alongside stronger foreign investor participation in domestic debt markets.

The report said increased capital flows are likely to support the Kingdom’s capital market momentum, notably thanks to greater inclusion in leading investment indices.

SC Global Research expects Saudi Arabia to continue delivering robust GDP growth of 4.5% in 2026, outperforming the 3.4% growth rate for the global economy.

It attributed the Kingdom’s economic resilience to sustained momentum in the oil sector.

“The hydrocarbon industry has returned to growth, as OPEC+ eased the production cuts that had been in place since 2023,” it noted.

Meanwhile, the non-oil sector is also expected to grow steadily at 4.5%, driven by investment and consumption, and will continue supporting the economy.

Saudi Arabia is forecasting real GDP growth of 4.6% in 2026, supported by an expected increase in the output of non-oil activities, led by tourism, entertainment, logistics, and technology.

Mazen Bunyan, CEO of Standard Chartered Saudi Arabia, said: “Continued non-oil sector growth will ensure sustained financial stability whilst diversifying growth sources across the Kingdom.”

In its report, SC Global Research forecasts the Kingdom’s public debt-to-GDP to increase to 36% by end-2026, from 26% at end-2024, taking it closer to the Kingdom’s self-imposed 40% ceiling.

Even so, it believes that recent fiscal deficits have not been a setback, but rather a catalyst of structural macroeconomic transformation.

Most Viewed

 
 
Business

Bessent Says Disappointed by EU-India Deal; South Korea Must Ratify Trade Deal

Treasury Secretary Scott Bessent speaks during an event at Carnegie Mellon Auditorium, Wednesday, Jan. 28, 2026, in Washington. (AP)
Treasury Secretary Scott Bessent speaks during an event at Carnegie Mellon Auditorium, Wednesday, Jan. 28, 2026, in Washington. (AP)
TT
TT

Bessent Says Disappointed by EU-India Deal; South Korea Must Ratify Trade Deal

Treasury Secretary Scott Bessent speaks during an event at Carnegie Mellon Auditorium, Wednesday, Jan. 28, 2026, in Washington. (AP)
Treasury Secretary Scott Bessent speaks during an event at Carnegie Mellon Auditorium, Wednesday, Jan. 28, 2026, in Washington. (AP)

US Treasury Secretary Scott Bessent said on Wednesday he was disappointed by Europe's decision to strike a major trade agreement with India, saying it showed Europe put trade ahead of the interests of the Ukrainian people.

Bessent told CNBC that Europe had been buying refined products made in India with sanctioned Russian oil supplies, and had been unwilling to match higher US tariffs on Indian goods because they were separately negotiating a trade agreement.

The European Union on Tuesday finalized a long-delayed trade deal with India that aims to boost two-way trade and reduce the bloc's reliance on the United States amid growing ‌global trade tensions.

The deal ‌is expected to double EU exports to India ‌by ⁠2032 by eliminating or ‌reducing tariffs on 96.6% of traded goods by value, and will lead to savings of 4 billion euros ($4.8 billion) in duties for European companies, the EU said.

Asked whether this deal and others among countries excluding the United States would threaten the US, Bessent said: "They should do what's best for themselves, but I will tell you, I found, I find the Europeans very disappointing."

He said the deal made it clear why Brussels had balked ⁠at joining Washington's decision to impose 25% tariffs on India last year as part of a push to reduce ‌its purchases of Russian oil.

"The Europeans were unwilling to join ‍us, and it turns out, because they ‍wanted to do this trade deal," he said. "So, every time you hear a ‍European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people."

Bessent last week had signaled the potential removal of the 25% additional US tariffs on India following a sharp reduction in Indian imports of Russian oil.

Bessent's disparaging comments about Europe came amid heightened tensions after President Donald Trump threatened to raise tariffs on imports from certain European countries over their opposition to his pursuit ⁠of Greenland. That tariff threat was later dropped, but it left many Europeans unsettled and anxious about the future of Transatlantic trade.

US officials remain frustrated that the EU has not enacted the tariff reductions it promised as part of a framework trade deal reached with Washington in July.

Those concerns were heightened this week when Trump raised duties on imports from South Korea to 25% from 15%, citing slow moves by the country's parliament to implement a framework trade agreement reached with Washington last year.

Bessent defended Trump's action, saying it was "helpful to get things moved along", adding that the South Korean parliament needed to ratify the trade deal.

Trump on Tuesday said he expected the United States and South Korea to ‌work out a solution, but he did not elaborate.

South Korean officials are due to arrive in Washington on Wednesday for talks with trade officials.

Business

Amazon to Cut 16,000 Jobs Worldwide

This photograph shows the Amazon logo displayed outside of an Amazon Fresh grocery store in Torrance, California on July 29, 2025. (AFP)
This photograph shows the Amazon logo displayed outside of an Amazon Fresh grocery store in Torrance, California on July 29, 2025. (AFP)
TT
TT

Amazon to Cut 16,000 Jobs Worldwide

This photograph shows the Amazon logo displayed outside of an Amazon Fresh grocery store in Torrance, California on July 29, 2025. (AFP)
This photograph shows the Amazon logo displayed outside of an Amazon Fresh grocery store in Torrance, California on July 29, 2025. (AFP)

US online retail and cloud computing giant Amazon said Wednesday that it would be cutting 16,000 jobs worldwide as part of a restructuring, as it focuses spending on artificial intelligence.

The job cuts, which follow already flagged plans to cut its workforce by 14,000 posts, are aimed at "reducing layers, increasing ownership, and removing bureaucracy," senior vice president Beth Galetti said in a statement.

Media reports from October had said the roughly 30,000 job cuts planned in total would impact nearly 10 percent of the 350,000 office jobs at Amazon, without affecting the distribution and warehouse workers that make up the bulk of its 1.5 million employees.

At the time the company refused to comment on the reports, which said they came amid increased investments in artificial intelligence.

Amazon did not give any breakdown of the latest job cuts on Wednesday, saying only that "every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate."

The company will release its full-year 2025 results on February 5. In its last quarterly earnings statement in October, the company said it spent $1.8 billion on severance costs tied to planned job cuts.

Amazon said that new positions will be offered to employees where possible, without giving further details on which divisions will be affected by the cuts.

The layoffs are in line with a trend to trim white-collar management jobs across big tech. Microsoft in July said it had slashed a little less than four percent of its global workforce, about 15,000 jobs.

Facebook owner Meta has also cut jobs over the past year, in a move intended to remove organizational bloat following aggressive hiring during the pandemic.

Dutch tech giant ASML on Wednesday said it would cut hundreds of management jobs to improve internal organization, with HP and Oracle also announcing recent layoffs.

Like other tech giants, Amazon is making massive investments to grab a slice of the AI revolution pie.

It is particularly banking on the performance of its subsidiary Amazon Web Services (AWS), the world's leading cloud provider, which is engaged in a race against its fast-growing rivals, Microsoft Azure and Google Cloud.

And spending on developing new AI-based chips and services is growing exponentially. In December, Amazon announced that it would invest more than $35 billion in India.

Business

Global Labor Market Conference Concludes in Riyadh with Signing of 90 Agreements

The conference was held under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and organized by the Ministry of Human Resources and Social Development. (SPA)
The conference was held under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and organized by the Ministry of Human Resources and Social Development. (SPA)
TT
TT

Global Labor Market Conference Concludes in Riyadh with Signing of 90 Agreements

The conference was held under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and organized by the Ministry of Human Resources and Social Development. (SPA)
The conference was held under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and organized by the Ministry of Human Resources and Social Development. (SPA)

The third annual Global Labor Market Conference (GLMC 2026) concluded in Riyadh on Tuesday with the signing of 90 agreements between government entities and the private sector.

The deals aim to support labor-market development and are set to impact over 6 million beneficiaries within Saudi Arabia and beyond.

The event was held under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and organized by the Ministry of Human Resources and Social Development, drawing an international audience of more than 10,000 participants, including 40 labor ministers and over 200 speakers and experts representing more than 100 countries.

The signed agreements cover skills development and leadership capacity building through training partnerships and international professional accreditation, and accelerating digital transformation with advanced technology solutions and artificial intelligence (AI) through deals to develop digital services, automation solutions, and cybersecurity.

Priority fields covered by the agreements include expanding opportunities for flexible employment and freelancing while connecting individuals to new economic opportunities, and establishing sustainable sectoral and developmental partnerships that link training with the actual labor market and support local economies.

The success of the third GLMC underscores Saudi Arabia’s commitment to its leading role in shaping the future of work globally by fostering innovation, strengthening partnerships, and empowering the workforce to ensure sustainable, resilient, and inclusive labor markets.