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Al-Falih: Turkish Investment in Saudi Arabia Tops $2 Bln, Trade up 14%

Saudi Investment Minister Khalid Al-Falih speaks at the Saudi-Turkish Investment Forum in Riyadh (Asharq Al-Awsat)
Saudi Investment Minister Khalid Al-Falih speaks at the Saudi-Turkish Investment Forum in Riyadh (Asharq Al-Awsat)
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Al-Falih: Turkish Investment in Saudi Arabia Tops $2 Bln, Trade up 14%

Saudi Investment Minister Khalid Al-Falih speaks at the Saudi-Turkish Investment Forum in Riyadh (Asharq Al-Awsat)
Saudi Investment Minister Khalid Al-Falih speaks at the Saudi-Turkish Investment Forum in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s Minister of Investment Khalid Al-Falih said Turkish direct investment in the Kingdom has exceeded $2 billion. In comparison, bilateral trade has reached about $8 billion, marking 14% growth in a single year.

He said the Saudi-Turkish economic partnership has moved from a phase of dialogue and exploration to one of active execution, underpinned by mutual trust and a central role for the private sector.

Al-Falih was speaking at the Saudi-Turkish Investment Forum, held alongside a meeting in Riyadh on Tuesday between Saudi Crown Prince Mohammed bin Salman and Turkish President Recep Tayyip Erdogan to discuss economic ties and the latest regional developments.

Al-Falih welcomed the presence of a large Turkish business delegation comprising more than 200 companies interested in developing trade, economic, and investment relations with the Kingdom, as well as several regional offices of Turkish firms.

He said Saudi Arabia is looking to attract more Turkish investment.

“This confirms that economic cooperation, particularly the role of the private sector, represents a core pillar of this strategic partnership between the Kingdom and Türkiye,” he said.

“This forum reflects the unprecedented level reached by Saudi-Turkish trade relations, the enthusiasm and confidence on both sides, and our determination to move from dialogue and exploration to an execution phase that has already begun.”

Turkish investments

Regarding economic relations between the two countries, Al-Falih said Turkish direct investment in Saudi Arabia has exceeded $2 billion, concentrated in manufacturing, real estate, construction, agriculture, and trade, among other sectors.

He added that total bilateral trade has reached about $8 billion, up 14% over the past year.

Active companies

Al-Falih said 1,473 investment licenses have been issued to active Turkish companies in the Kingdom up to last year, noting that “all these elements reflect the growth of trade relations between the two countries and the shift from identifying opportunities to implementing declared ambitions.”

Global shifts

He said the current phase of cooperation is critical given its timing, as the world experiences greater caution and selectivity in capital flows and a restructuring of global value and supply chains.

“Investors are now prioritizing high-quality investments of an appropriate scale and flexibility, in countries that enjoy a clear and stable investment environment over the long term,” he said.

Two economic pillars

In this context, Al-Falih said Saudi Arabia and Türkiye stand out as two economic pillars in the Middle East, as the only two countries in the region that are members of the G20, together accounting for around 50% of the region’s total gross domestic product.

He said the two countries account for a large share of global trade between the region and the world, as well as of foreign direct investment inflows.

Saudi Arabia is the largest economy and investment destination in the Arab world, he said, while Türkiye is a leading manufacturing and export hub in the region.

“The advantages sought by investors and enjoyed by our two countries confirm that their economies are more complementary than competitive,” he added.

Competitive advantages

Al-Falih said Saudi Arabia is a global energy hub, based on its entrenched position in oil and gas and its growing role in renewable energy, hydrogen, power generation, and electricity exports.

He said the Kingdom is also a significant investment power steadily moving toward a leading global position in artificial intelligence, digitalization, and data, as well as tourism, transport, and logistics services.

He added that Saudi Arabia has an enabling regulatory environment, supportive cities and economic zones, and one of the most advanced and integrated logistics and digital infrastructures in the region.

Turkish expertise

By contrast, Al-Falih said Türkiye has distinctive expertise and capabilities across several sectors, including manufacturing, tourism, and services, alongside a strong private sector, a highly skilled workforce, and deep integration with European markets through a free trade agreement.

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Business

Morocco's Cereals Harvest Expected to Double after Wet Winter

The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat (File Photo/AFP)
The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat (File Photo/AFP)
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Morocco's Cereals Harvest Expected to Double after Wet Winter

The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat (File Photo/AFP)
The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat (File Photo/AFP)

Moroccan grains traders and millers expect Morocco to double its cereals harvest this season after abundant winter rains, with limited impact from floods in the northwestern plains of the North African country, which is a major grains importer.

Industry leaders plan to add domestic wheat to strategic reserves this year "without compromising imports", said Moulay Abdelkader Alaoui, head of the federation of industrial millers FNM, who expects a domestic harvest of 6 million metric tons.

"We expect a good cereals harvest this year of 8 to 9 million tons, including around 5 million tons of soft wheat," Omar Yacoubi, head of Morocco's wheat trading federation FNCL, told Reuters. The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat.

Morocco traditionally cancels its wheat import subsidy and reinstates customs duties to protect the local harvest.

But this year importers, millers and traders have asked the government to extend the subsidy window to June 1, instead of May 1, to compensate for costs incurred due to bad weather.

Rainfall this winter was 34% above the 30-year average and triple the previous year's levels, while dam filling rates improved to 70% from about 25%, agriculture ministry data shows, while the total grain-planted area rose to 3.7 million hectares, from 2.6 million the year before.

Flooding in the fertile northwestern plains, which destroyed 110,000 hectares, had a "localized" impact, Yacoubi said, with wheat losses to be offset by higher yields in larger plains.

DELAYED SHIPPING

Large swells and storms since mid-December have disrupted port operations at Casablanca and Jorf Lasfar, which handle 80% of Morocco's wheat imports.

Shipping delays have weighed heavily on importers, even as international wheat prices remain below the subsidy eligibility threshold, Yacoubi said, adding that as of this week, 70 ships carrying 1 million tons of wheat were queued outside ports, leading to low stock levels.

Moroccan importers are paying about $20,000 per day for ships waiting offshore, pushing them to request an extension of the government subsidy programme.

Traditionally, only half of Morocco's harvest reaches industrial mills because small farmers retain wheat for their own use, but Alaoui said this year's plentiful rainfall should improve crop quality and encourage more collection.

French exporters expect to supply about two-thirds of Morocco's soft wheat import needs, or 3.5 million tons.

From June 2025 to January 2026, Morocco imported 7 million tons of grains, up 12% year-on-year, including 3.2 million tons of soft wheat.

During the same period, France topped Morocco's soft wheat suppliers with 2.26 million tons, followed by Argentina with 233,144 tons, Russia with 227,070 tons, Germany with 120,084 tons and the U.S. with 94,688 tons.

Business

Saudi Arabia Records Slowest Inflation Since February 2025

A supermarket in Saudi Arabia (SPA) 
A supermarket in Saudi Arabia (SPA) 
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Saudi Arabia Records Slowest Inflation Since February 2025

A supermarket in Saudi Arabia (SPA) 
A supermarket in Saudi Arabia (SPA) 

Saudi Arabia’s annual inflation eased noticeably in January, rising 1.8 percent year on year, the slowest pace since February last year, signaling positive momentum for the domestic economy.

According to official data, inflation in January 2026 was driven mainly by higher housing, water, electricity, gas and other fuel prices, which rose 4.2 percent. Transport costs increased 1.5 percent, while restaurant and accommodation services rose 1 percent.

Housing rents remain the largest contributor to inflation, with actual rents climbing 5.2 percent annually.

Economists said January’s slowdown points to greater price stability and easing living costs, reflecting government measures to support growth.

Osama bin Ghanem Al-Obaidi, an advisor and professor of international commercial law, said the 1.8 percent annual rate is the lowest among G20 countries. While housing and utilities remain the largest contributors, he noted that rent increases are now less intense than in recent months.

Al-Obaidi added that inflation control in Saudi Arabia remains effective, with relative price stability supporting consumer purchasing power and easing pressure on low-income households. He said January’s data reflects growing market stability, with pressures in some categories contained by demand.

Economist Ahmed Al-Shahri, for his part, noted that the moderation in inflation boosts confidence and encourages investment and broader economic activity. He attributed the improvement to government efforts to ensure economic stability and advance sustainable development, underscoring the effectiveness of fiscal and economic policies.

Al-Shahri highlighted housing and rental measures introduced under the direction of Crown Prince and Prime Minister Mohammed bin Salman, noting their significant impact. Despite the 1.8 percent annual rise, he said inflation remains low by historical standards, indicating that price pressures are gradually easing after post-pandemic global shocks and supply-chain disruptions.

Category Breakdown

Transport prices rose 1.5 percent year on year, driven by a 6 percent increase in passenger transport services. Restaurant and accommodation prices increased 1 percent, reflecting higher food and beverage services. Personal care and other goods and services surged 7.9 percent, led by higher jewelry and watch prices. Insurance and financial services rose 3.3 percent, while food and beverages edged up 0.2 percent.

Furniture and household equipment prices fell 0.3 percent, and health prices dipped 0.1 percent.

On a monthly basis, the consumer price index rose 0.2 percent in January compared with December 2025, supported by higher housing, transport and restaurant prices, while food and beverages declined 0.6 percent.

 

 

 

Business

Gold Drops over 1% as Thin Trading, Profit‑taking Weigh

An Indian woman tries on gold jewelry at a jewelry store in Bangalore (EPA)
An Indian woman tries on gold jewelry at a jewelry store in Bangalore (EPA)
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Gold Drops over 1% as Thin Trading, Profit‑taking Weigh

An Indian woman tries on gold jewelry at a jewelry store in Bangalore (EPA)
An Indian woman tries on gold jewelry at a jewelry store in Bangalore (EPA)

Gold prices dropped on Monday, pressured by thin trading volumes as US and China markets remained shut due to local public holidays, while some traders booked profits after last session's 2.5% jump.

Spot gold fell 1.1% to $4,986.32 per ounce by 0550 GMT. US gold futures for April delivery lost 0.8% to $5,005.60 per ounce.

"Gold has given back some of Friday's post-CPI ‌gains today due to ‌thinner trading conditions and a lack ‌of ⁠fresh upside catalysts," said ⁠Tim Waterer, KCM chief analyst, referring to the US consumer price inflation data. He also pointed to profit-taking on the day.

US markets are closed for the Presidents' Day holiday, while markets in China are closed for the Lunar New Year holiday. The US CPI rose 0.2% in January after an unrevised 0.3% gain in December, ⁠the Labor Department's Bureau of Labor Statistics said ‌on Friday.

Economists polled by Reuters ‌had forecast the CPI to increase by 0.3%. Federal Reserve Bank of ‌Chicago President Austan Goolsbee said on Friday that interest rates could ‌go down, but noted that services inflation remained high.

Market participants anticipate the central bank to hold interest rates at its next meeting on March 18. Still, they are pricing in 75 basis points in rate ‌cuts this year, with the first expected in July, according to data compiled by LSEG.

Non-yielding ⁠bullion tends ⁠to do well in low-interest-rate environments. "It will likely require the dollar to resume its downtrend for gold to make a push in the direction of $6,000 before year-end," Waterer said.

On the geopolitical front, the US military is preparing for the possibility of a weeks-long operation against Iran should President Donald Trump authorize an attack, two US officials told Reuters, in what could become a far more serious conflict than previously seen between the countries.

Spot silver lost 2.4% to $75.64 per ounce, after a 3% fall earlier in the session. The white metal rose 3.4% on Friday. Spot platinum slipped 0.8% to $2,045.11 per ounce, while palladium shed 0.7% to $1,673.52.