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Nissan CEO to Asharq Al-Awsat: Saudi Arabia Is ‘Golden Jewel’ Driving Regional Growth 

Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
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Nissan CEO to Asharq Al-Awsat: Saudi Arabia Is ‘Golden Jewel’ Driving Regional Growth 

Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)
Nissan Chief Executive Ivan Espinosa. (Asharq Al-Awsat)

Nissan Chief Executive Ivan Espinosa has singled out Saudi Arabia as a cornerstone of the automaker’s global ambitions, calling the kingdom and the wider Middle East a “golden jewel” in the company’s international portfolio, driven by strong brand equity, steady profitability, and a deep, loyal customer base.

Speaking to Asharq Al-Awsat, Espinosa said Nissan has long enjoyed a solid foothold in Saudi Arabia and across the region, noting that Middle Eastern markets contribute a significant share of the company’s global earnings.

“We have a large base of supporters and loyal customers in the region, which makes it a pivotal market for both our present and our future,” he stressed.

Speaking during his first visit to the region as Nissan’s president, Espinosa said the company will continue investing in products tailored to local needs.

He cited the Nissan Patrol as a model born and developed to suit Gulf markets, particularly in its latest generations, which benefited from in-depth studies of user behavior and expectations.

He revealed that his visit was not limited to attending the recent Formula E event, but also aimed at gaining a deeper understanding of the Saudi market and strengthening Nissan’s position there. The company is working to expand its lineup and introduce more diverse products to serve a wider range of customers, he added.

Saudi visit

Espinosa described Saudi Arabia as “a wonderful place” where he continues to discover new facets reflecting the depth of its culture and the vibrancy of its society. The positive energy he sensed in the country reflects an ambitious and optimistic spirit, he said.

The Formula E event in which Nissan participated is a clear example of the Kingdom’s dynamism and its growing role in launching globally influential initiatives, underscoring its rising presence and confidence in shaping the future, he remarked.

Espinosa said Saudi Arabia’s ambitions under Vision 2030 intersect strongly with Nissan’s future vision, particularly in autonomous driving, artificial intelligence, and vehicles powered by new energy sources. The company sees promising opportunities for cooperation in the coming years.

With a long history and broad customer base in the Kingdom, Nissan aims to continue meeting expectations with innovative products, he said, noting that Saudi Arabia is a growing market with significant potential in technology and mobility solutions, reinforcing the company’s commitment to long-term investment in the region.

Strategic hub

Espinosa said Nissan is currently implementing its recovery plan, Re:Nissan, while preparing a strategic vision for the next phase. Regions have been classified according to growth priorities, with the Middle East among those given high priority.

He said describing the region as a “golden jewel” reflects the strength of the brand, the company’s long history there, and its solid profitability. Nissan aims to expand its market share through sustainable organic growth, he added.

Formula E

On Nissan’s participation in the Formula E World Championship, which concluded in Jeddah, Espinosa said it reflects the company’s competitive heritage and serves as a platform to showcase its electric vehicle technologies.

The championship serves as a real-world laboratory for transferring technology from race cars to production models.

He pointed to expertise in battery management and traction control derived from the Nissan Leaf, as well as the movement of engineers from the Formula E program into the development of future performance models, strengthening knowledge exchange between the track and the production line.

Three pillars

Espinosa said Nissan’s three-to-five-year plan rests on three pillars.

The first is completing the recovery plan by recalibrating the cost structure. So far, the company has achieved savings of about 160 billion yen, roughly $1 billion, in fixed costs, and launched more than 5,000 initiatives to reduce variable costs with potential savings of up to 240 billion yen, or about $1.5 billion.

Third-quarter results showed operating profit of 17 billion yen, or $114 million, despite tariff-related pressures, reflecting the company’s resilience and improved operational efficiency, he said.

The second pillar focuses on products and technology to accelerate the rollout of new models. The third aims to cement Nissan’s position as a leader in smart vehicles, he added.

Espinosa said the industry's future requires automakers to embrace technology without losing their core identity. Artificial intelligence has become central to design processes, with generative AI significantly shortening early design phases while enhancing creativity without replacing designers.

In autonomous driving, he cited Nissan’s partnership with a British software company that provides self-driving algorithms, while Nissan leverages its vehicle engineering expertise to deliver a natural driving experience that mimics human behavior.

He outlined a longer-term ambition for vehicles to learn their owners' driving styles and adapt their autonomous mode accordingly, whether dynamic or conservative, thereby enhancing trust and reducing anxiety.

Reshaping the industrial base

As part of the Re:Nissan plan, Espinosa said restructuring the industrial base is a key element of the transformation. The company will reduce the number of global plants from 17 to 10 to improve capacity utilization and boost profitability.

Among the most notable steps was the agreement to sell Nissan’s South Africa plant to Chery South Africa. The process was carried out with a high degree of responsibility and precision, he said, stressing that protecting jobs and ensuring employment continuity were core conditions of the deal.

A similar approach was adopted in Japan when the Oppama plant was closed. Nissan began early talks with employees and offered multiple options, including transfers to future operations in Kyushu, opportunities within other group units, and voluntary separation programs with attractive terms when necessary.

Plant reductions are being handled with great care while maintaining uniform global quality standards across production sites, supported by standardized control systems and specialized teams to ensure supply chain stability, particularly for semiconductors and electronic chips, said Espinosa.

Espinosa said the Re:Nissan plan is progressing on schedule, with clear signs of performance improvement paving the way for a smarter and more sustainable growth phase in global markets, led by the Middle East and Saudi Arabia.

Strategic flexibility

On hybrid and electric powertrains, Espinosa said Nissan is keeping pace with customer preferences while maintaining the view that electric vehicles will gradually become the dominant option.

The company offers a range of technologies, including internal combustion engines, e-Power systems, and fully electric vehicles, while shortening model development cycles to improve responsiveness to market demand.

The e-Power technology is expanding globally after its launch in Japan and Europe and is nearing entry into the US market, he went on to say. It will reach the Middle East in due course, particularly in mid-size segments.

Hybrid solutions for larger vehicles are also under study to meet regional towing requirements, he said.

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Business

Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)
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Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)

Amid mounting geopolitical tensions threatening global supply chains, particularly disruptions in the Strait of Hormuz, Saudi Arabia is stepping up efforts to shield its economy by strengthening private sector readiness to withstand external shocks.

Asharq Al-Awsat has learned that the Federation of Saudi Chambers is moving to boost companies’ preparedness, unify procedures, and keep business flowing smoothly amid rising logistical risks.

The push underscores authorities’ focus on safeguarding the domestic market by helping businesses adapt quickly and strengthen operational resilience, supporting economic stability and sustained growth.

Future decisions

As part of efforts to bolster supply chain resilience, the Federation of Saudi Chambers is mapping challenges facing companies and national institutions, aiming to present the sector’s voice directly, build a clear picture of on-the-ground obstacles, and help shape future decisions.

It is tracking operational and logistical hurdles and turning them into inputs for relevant authorities to improve regulations and support market-based decision-making.

Improving the regulatory environment

The federation has asked companies to pinpoint challenges across ports, airports, logistics hubs, and warehouses, as well as those tied to regulators.

It urged firms to specify issues such as clearance or transit delays, procedural disruptions, added costs, lack of information, conflicting instructions, and regulatory requirements, along with their impact, whether financial or operational, including delivery delays, lost clients, suspended contracts, damaged cargo, and supply chain breakdowns.

The findings are expected to feed into regulatory improvements and more informed policymaking.

Alternative routes

Saudi Arabia has rolled out proactive logistics measures to reduce reliance on the Strait of Hormuz, including new corridors linking Gulf ports through alternative land and sea routes, Red Sea options, and additional shipping services to expand port capacity.

The Transport General Authority said licensed operators will be allowed to carry goods for third parties until Sept. 25, aiming to boost fleet efficiency and flexibility.

The authority said the step will help companies make better use of capacity, support supply chain continuity, and improve cargo movement within the kingdom and to neighboring countries.

On Thursday, it also approved regulatory updates extending deadlines for land freight firms to adjust their status, aiming to raise efficiency and compliance.

The extension covers heavy and light transport activities until Aug. 27, 2026, giving companies more time to meet regulatory requirements.

It also includes cases involving the reclassification of vehicle registration from private to public use in heavy freight, in a move to better regulate the sector and improve fleet utilization.

Business

War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)
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War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)

A Lebanese mother described the sharp decline in one of her last sources of income, once a pillar of her financial stability, as remittances from her son abroad dwindled in the wake of the war.

“My son used to send me $600 a month. I lived on it, covered my medication and basic needs. After the war, the transfer does not exceed $200,” she told Asharq Al-Awsat.

Her account reflects a broader trend among Lebanese households, in which remittances from relatives abroad have dropped by 10% to 15% during the war. The conflict has left its mark on multiple countries, including Lebanon, driving inflation and creating obstacles to money transfers.

The financial situation was also discussed in a meeting between Lebanese President Joseph Aoun and central bank governor Karim Saeed, where current monetary and financial conditions, exchange rate stability, and precautionary measures to maintain liquidity were reviewed.

Rapid contraction and rising pressure

The issue has reached the government. Economy Minister Amer Bisat presented updated wartime estimates to the cabinet on Thursday, highlighting economic contraction and declining incomes driven by large-scale displacement, along with a notable rise in unemployment.

He cited sectoral and field studies showing deteriorating indicators, estimating the contraction at 7%-10%, coupled with slower inflows of funds into the country.

Bisat said the situation remains “relatively under control,” noting that the ministry continues to pursue cases of monopoly and fraud through dozens of reports, judicial referrals, and the seizure of non-compliant goods.

He warned that a prolonged war would heighten economic risks, describing inflation as a real challenge, while the balance of payments remains within acceptable limits.

Impact on daily life

The Lebanese mother told Asharq Al-Awsat: “I used to organize my life around the $600 my son sent me every month. I would pay for medication first, then cover household needs. Now I have to ration spending. I can no longer pay the electricity bill regularly.”

She added: “I buy smaller quantities of everything and postpone whatever I can. Sometimes I ask the pharmacy for medicine on credit. I never imagined I would reach this point.”

In the Bekaa Valley, Abu Mohammad described a similar experience: “My son used to send $400 a month, now it barely reaches $200.”

“I relied on that amount to cover rent and basic expenses. Now everything has changed. We live day to day on installments. We buy only the bare minimum and delay everything, rent, bills, even some essentials,” he said.

“Sometimes we sit together as a family to decide what we can pay this month and what to postpone. This did not exist before. Now it is part of our daily life.”

A shrinking economic backbone

Economist Walid Abou Suleiman said remittances have formed the “backbone of Lebanon’s economy since the 2019 crisis,” noting that the country relies heavily on them to secure foreign currency, as Lebanon imports about 85% of its consumer needs.

He told Asharq Al-Awsat that annual remittances are estimated at around $6 billion, including roughly $3 billion from Gulf countries, but have begun to decline, with at least a 5% drop recorded in the first month of the crisis.

“The impact of crises does not appear immediately; it builds gradually in the following months, meaning the decline is likely to worsen,” he said.

Hundreds of millions in losses

Abou Suleiman expects remittances to fall by 10% to 15%, equivalent to annual losses of between $450 million and $500 million, or about $40 million per month.

This decline is compounded by job losses among Lebanese expatriates in the Gulf, increasing domestic pressure as some return to Lebanon.

He added that the war has also affected other sources of foreign currency, particularly tourism. “Seasons that used to inject dollars into the market, such as Easter, have been absent this year,” he said, adding that rising global oil prices are worsening the crisis, as Lebanon is among the countries most affected by energy costs.

“The treasury is bearing additional burdens estimated at around 18% due to these increases,” he said.

Abou Suleiman warned that global inflation directly impacts Lebanon. “We do not only import goods, but we also import inflation with them, given the absence of local production and self-sufficiency,” he said, cautioning that the economic outlook will deteriorate further if the war continues.

Ongoing decline and uncertain outlook

Economist Professor Jassem Ajaka said remittances to Lebanon have recorded a notable decline, estimating a drop of around 5% last week, possibly rising to between 5% and 10% as conditions continue to evolve, with no precise figure due to constantly changing data.

He said the decline is logical, as Lebanese workers in the Gulf and Europe have also been affected by slowing economic conditions there.

“The crisis is no longer confined to one country or region; it is global, though its impact varies from place to place,” he said.

Ajaka stressed that remittances remain a key pillar, alongside tourism, which is largely driven by expatriates. “The tourism sector is almost entirely halted. The season can be considered lost, and even the upcoming summer season is not guaranteed. Recovery will not be quick, even if the war ends,” he said.

Tourism revenues were estimated at between $4 billion and $4.5 billion annually, making them a major source of foreign currency.

Exports are also expected to decline by around 10% due to damage to the agricultural sector in the south and Bekaa, as well as higher industrial production costs driven by rising oil prices.

Dollar inflows shrink, risks expand

Ajaka said remittances now represent the last line of resilience for many Lebanese families, but this pillar is weakening with the current decline.

He warned that the most serious consequence is a shortage of dollars in the market, raising questions about Lebanon’s ability to finance imports of fuel, food, and medicine.

A temporary solution could involve the central bank financing imports from its foreign currency reserves, he said, but this would amount to crisis management, with repercussions worsening the longer it continues.

He added that pressures are not limited to economic factors, but also include measures that restrict dollar inflows, further reducing liquidity in the market.

Business

Dollar Jumps as Trump Pledges More Iran Strikes

FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Jumps as Trump Pledges More Iran Strikes

FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar rose sharply on Thursday after US President Donald Trump's address on Iran shattered hopes for a swift end to the conflict, sending investors towards safe-haven assets as oil prices jumped and stocks tumbled.

In a televised speech, Trump vowed more aggressive strikes on Iran in the next two to three weeks, offering no concrete timeline to open the Strait of Hormuz or end a war that has rattled investors and roiled markets, Reuters reported.

Iran's military responded with a warning for the United States and Israel of "more crushing, broader and more destructive" attacks in store.

Investors were quick to sell riskier assets such as stocks and buy the US dollar, pushing the yen, euro and sterling lower.

The dollar index, which measures the greenback against a basket of currencies, climbed 0.68% to 100.24 as the safe-haven trade came back on, putting it on track for its best day since March 18.

Thursday's advance wiped out most of the greenback's declines from the past two days amid earlier optimism about de-escalating the Iran war, putting it on track for another winning week.

Stocks slid and oil prices surged, with Brent crude futures rising almost 8% to $109.10 per barrel, after Trump's address sparked fresh concerns about sustained disruption.

"Trump's comments failed to reassure markets ... markets are starting to realize that the war will probably escalate further from here before de-escalating," said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

"The dollar can definitely increase further from here against all the major currencies" as markets wake up to the fact that the global economy will slow down materially, she added.

Non-dollar currencies extended their falls as oil prices climbed in European trading.

The euro fell 0.66% to $1.1513 and sterling slid 0.88% to $1.319, both giving up some recent gains.

The risk-sensitive Australian dollar, commonly seen as a barometer of global growth expectations, fell 0.95% to $0.6863.

The Japanese yen traded 0.6% weaker at 159.72 per dollar , nearing the psychologically important 160 level that is viewed as the line in the sand for intervention by Japanese authorities.

Trump's comments also sent US Treasury yields higher on growing fears that inflation from higher oil prices would close the door to rate cuts.

That sets the stage for Friday's US non-farm payrolls report. The market is looking for a 60,000 rise in jobs for March, according to the median estimate of economists polled by Reuters.

"Another miss could rattle the markets and crank the volume up on the chorus warning about stagflation," said Kyle Rodda, senior financial market analyst at Capital.com.

"The markets could be extra choppy going into the Easter long weekend."