Riyadh Combines Supply Security and Diplomacy to Calm Energy Markets

A Saudi Aramco facility (Aramco)
A Saudi Aramco facility (Aramco)
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Riyadh Combines Supply Security and Diplomacy to Calm Energy Markets

A Saudi Aramco facility (Aramco)
A Saudi Aramco facility (Aramco)

As mounting geopolitical tensions threaten global energy supply routes, Saudi Arabia has emerged as a pivotal player in safeguarding oil market stability, drawing on a combination of strategic infrastructure and active diplomacy.

By maintaining the flow of exports through the East-West Pipeline, which transports around 7 million barrels per day to the Red Sea away from sensitive maritime chokepoints, alongside its central role within the OPEC and OPEC+ alliance and its political efforts to ease regional tensions, the Kingdom has reinforced its position as one of the world's most reliable energy suppliers. These efforts have helped curb market volatility and preserve global energy supply security.

Saudi Arabia has also played a central role within OPEC+ in maintaining market balance, leading efforts to coordinate production levels in a way that limits sharp price swings and prevents significant supply shortages or surpluses. This role has strengthened confidence among both producers and consumers in the alliance's ability to respond effectively to crises.

East-West Pipeline

In this context, former senior adviser to the Saudi oil minister Mohammed Al-Sabban told Asharq Al-Awsat that Saudi Arabia and its partners have successfully maintained export flows through the East-West Pipeline, which was built in the mid-1980s. Without it, he said, the market would have faced severe disruptions under current conditions.

Al-Sabban explained that the pipeline carries approximately 7 million barrels per day, a volume that has played a major role in stabilizing markets. He added that Saudi Arabia has also contributed to oil market stability through OPEC and OPEC+, reinforcing its standing as a dependable and reassuring supplier capable of meeting global demand.

He added that Saudi Arabia continues to pursue solutions acceptable to both sides through its direct and indirect contacts with Iran and the United States, playing an active role in de-escalation efforts while supporting the stability of global energy markets.

Infrastructure

Energy specialist Nayef Al-Dandani told Asharq Al-Awsat that Saudi Arabia maintained uninterrupted crude exports during the 2026 Strait of Hormuz crisis and continued supplying global markets despite severe disruptions to maritime navigation. He said this achievement played a key role in limiting global supply shocks and stabilizing markets thanks to prior planning, alternative infrastructure, and regional coordination.

Al-Dandani said the East-West Pipeline, also known as Petroline, served as the Kingdom's primary export artery and provided a critical alternative to the Strait of Hormuz, the center of the disruption. The pipeline stretches from Saudi Arabia's Eastern Province to the Red Sea port of Yanbu and has a capacity of up to 7 million barrels per day.

During the crisis, Saudi Arabia redirected most of its exports through the pipeline, enabling it to ship around 4 million to 5 million barrels per day while bypassing the Strait of Hormuz. Al-Dandani said the pipeline later returned to full operating capacity after sustaining temporary damage. He added that Red Sea ports played a fundamental role by becoming key export hubs, with shipments rising significantly and export volumes through Yanbu increasing by more than 300 percent compared with previous periods during some months.

Alternative Routes

Al-Dandani added that Saudi Arabia worked closely with its regional partners, holding discussions with Kuwait, Bahrain, and other countries to expand pipeline networks and accommodate their crude exports. Overseas storage facilities operated by Saudi Aramco, together with Egypt's SUMED pipeline, also supported oil flows to Europe and Asia.

He stressed that Riyadh maintained its credibility as a global supplier and continued to honor its commitments despite a decline in overall Gulf exports. Tracking data also showed that Saudi crude continued flowing through alternative and partial routes, demonstrating strong logistical flexibility.

"This success did not prevent a temporary decline in export volumes, but it averted a complete supply breakdown and helped avoid catastrophic oil price scenarios," he said.

These developments come as recent events have reinforced analysts' assessment of Saudi Arabia's importance in stabilizing global energy markets. Saudi Aramco announced on Monday that it continues to maintain reliable energy supplies despite geopolitical disruptions, supported by its diversified infrastructure, led by the East-West Pipeline and export facilities on the Red Sea.

The announcement followed days after OPEC+ decided to proceed with its gradual production increase beginning in September, a move reflecting continued coordination among leading producers under Saudi leadership to preserve market balance.

The decision aligns with what experts told Asharq Al-Awsat: that the Kingdom's robust infrastructure, leadership within OPEC+, and diplomatic efforts to reduce regional tensions have been key factors in limiting market volatility and safeguarding global energy supply security.



Ankara Seeks to Take Saudi Economic Ties to ‘Higher Levels’

Türkiye looks to expand economic ties With Saudi Arabia (Asharq Al-Awsat)
Türkiye looks to expand economic ties With Saudi Arabia (Asharq Al-Awsat)
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Ankara Seeks to Take Saudi Economic Ties to ‘Higher Levels’

Türkiye looks to expand economic ties With Saudi Arabia (Asharq Al-Awsat)
Türkiye looks to expand economic ties With Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia and Türkiye are recasting their economic relationship, moving beyond trade and traditional investment flows to forge long-term industrial partnerships spanning renewable energy, defense, tourism and logistics.

The emerging model combines Saudi capital with Turkish expertise and technology, with both countries pursuing joint investment, technology transfer and localized production to build ties that can outlast fluctuations in trade.

The shift is gathering pace as Saudi investors show greater interest in Turkish assets and companies through funds, mergers and acquisitions. At the same time, Turkish companies are expanding in Saudi Arabia, seeking to capitalize on the kingdom’s megaprojects and Vision 2030 targets.

Energy and defense lead the sectors poised for deeper cooperation. Both countries are working to build an economic relationship based on joint investment, technology transfer and industrial localization, a model designed to make the Saudi-Turkish partnership more sustainable and less exposed to swings in trade.

Ahmet Burak Dağlıoğlu, president of the Investment and Finance Office of the Presidency of the Republic of Türkiye, said Saudi investment in Türkiye had changed markedly in recent years.

Investors are showing greater interest in mergers and acquisitions, buying stakes in Turkish companies and investing through funds, he said. Saudi capital also remains active in banking, financial services, manufacturing, real estate and family-owned businesses.

Speaking to Asharq Al-Awsat at a meeting with reporters in Istanbul, Dağlıoğlu said Turkish companies were also expanding in the Saudi market, tapping opportunities created by Vision 2030 and the kingdom’s megaprojects, particularly in manufacturing, services, healthcare, hospitals and logistics.

The meeting was organized by the Turkish presidency’s Directorate of Communications and its Investment and Finance Office on the sidelines of a climate finance conference in Istanbul.

More confidence

Dağlıoğlu said the improvement in relations between Riyadh and Ankara in recent years had given investors in both countries greater confidence, putting trade and investment on an upward path.

Bilateral relations are an important signal for companies weighing market entry and long-term investment decisions, he said.

The true scale of Saudi investment in Türkiye could also be larger than official figures suggest, Dağlıoğlu said. Some investments are made through funds and companies registered in international financial centers, meaning they are not always recorded as direct Saudi capital inflows.

The pattern reflects an evolution in the tools used by Saudi investors, who increasingly rely on funds and international investment structures to acquire stakes in companies or finance mergers and acquisitions, he said.

Renewable energy

Dağlıoğlu pointed to Saudi Arabia’s ACWA Power entering Turkish renewable energy projects as a key example of where investment relations are heading.

The sector offers substantial opportunities, he said, as Türkiye seeks to expand its clean-energy capacity and Saudi companies bring advanced expertise in developing, financing and operating major projects.

Dağlıoğlu cited investment commitments involving large-scale renewable energy projects and said further steps were expected to be announced as Türkiye prepares to host the COP31 United Nations climate conference in Antalya.

Energy could become a central pillar of the partnership, he said, as Saudi Arabia expands its international investments in renewable energy and Türkiye seeks to increase the share of clean energy sources in its energy mix.

Defense cooperation

Muttalip Tütüncü, secretary-general of the SAHA Istanbul defense and aerospace industry cluster, said defense cooperation between Saudi Arabia and Türkiye was moving beyond product sales and export deals.

The relationship is developing into a strategic partnership encompassing technology transfer, industrial localization and joint production capabilities, he said.

Saudi Arabia’s drive to localize defense manufacturing aligns with the industrial and technological capabilities Türkiye has built in recent years, opening the door to broader cooperation between companies and institutions in both countries.

Saudi Arabia is not merely seeking to buy defense equipment and systems, Tütüncü said. It also wants to acquire the technical knowledge and capacity to manufacture, develop and maintain them, in line with its targets for increasing local content in military industries.

“Turkish companies view the Saudi market as a long-term strategic partner, not merely as an export market,” he said.

Future cooperation could include joint manufacturing, technology transfer, workforce training and the creation of local supply chains, Tütüncü added.

He described the defense relationship as one of “industrial integration,” combining Saudi financial and investment capabilities with Turkish technical and industrial expertise.

That model could extend to aviation, unmanned systems, electronics and advanced technologies, he said.

Drone agreements between the two countries marked an important milestone in defense cooperation, Tütüncü said, but they were not the end of the process. Rather, they were the start of a broader phase that could include building industrial and production capabilities inside Saudi Arabia.

Seasonal tourism integration

In tourism, Dağlıoğlu said the two countries could build a model of seasonal integration.

Türkiye attracts large numbers of Saudi tourists during the summer, while Turkish companies and operators could benefit from Saudi Arabia’s winter tourism season and the kingdom’s new tourism and entertainment projects.

Turkish hospitality operators and tourism service companies could deploy their expertise and personnel in the Saudi market during periods of lower demand in Türkiye, helping meet the needs of Saudi projects while creating new opportunities for Turkish businesses.

Cooperation between Riyadh and Ankara is not limited to governments and large corporations, Dağlıoğlu said. It also involves connecting investors, entrepreneurs and small and medium-sized enterprises and making it easier for them to enter both markets.

Greater growth

The two Turkish officials expect mutual investment to grow further in the coming period, driven by improving relations, the expanding scale of Saudi projects and Saudi investors’ interest in Turkish assets and companies.

Ankara’s push to attract high-quality investment into industry, energy and technology is also expected to support that growth.

The course signals a shift in Saudi-Turkish relations: from rebuilding trade momentum to forging deeper economic and industrial interests based on joint investment, technology transfer and complementary capabilities.

That shift gives the relationship a more enduring foundation — one that extends beyond the fluctuations of traditional trade.


Container Ship Arrives in UK After Voyage from China via Arctic

The Dubai Tower, a Chinese cargo ship, arrives in Teesport, Britain, September 9, 2026. (Reuters)
The Dubai Tower, a Chinese cargo ship, arrives in Teesport, Britain, September 9, 2026. (Reuters)
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Container Ship Arrives in UK After Voyage from China via Arctic

The Dubai Tower, a Chinese cargo ship, arrives in Teesport, Britain, September 9, 2026. (Reuters)
The Dubai Tower, a Chinese cargo ship, arrives in Teesport, Britain, September 9, 2026. (Reuters)

A ‌container ship arrived in Britain on Wednesday after a landmark voyage from China via the Arctic, as part of plans for more vessels to use the route as a shorter and potentially safer alternative to the Suez Canal.

The Dubai ‌Tower arrived ‌at Teesport off England's ‌northeast coast ⁠after leaving eastern ⁠China on August 15.

The Arctic voyage, which is significantly quicker compared to freighters going through the Suez Canal or around the Cape of Good ⁠Hope, is intended to ‌be the ‌start of a regular container service ‌to Europe via the so-called ‌North Sea Route.

A South Korean container ship is also currently making a similar voyage, joining China and ‌Russia in having shipping firms testing cargo services along ⁠the ⁠route, which is more feasible due to faster melting of Arctic sea ice.

The route offers shorter journeys and avoids security risks in the Middle East, as the US war with Iran continues. But weather and sailing conditions can be unpredictable and its commercial feasibility is uncertain.


Riyadh Ranked Among Top 100 Global Innovation Clusters

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)
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Riyadh Ranked Among Top 100 Global Innovation Clusters

A view of Riyadh, Saudi Arabia. (SPA)
A view of Riyadh, Saudi Arabia. (SPA)

The Global Innovation Index has ranked Riyadh among the top 100 innovation clusters worldwide for 2026, making it the only Gulf city to attain this classification.

Riyadh placed 92nd globally, with key metrics including 419 venture capital deals in innovation and 162 international patent applications filed.

The report highlighted the main entities contributing to the capital's position in research and innovation. In research, King Saud University, Princess Nourah bint Abdulrahman University, and Prince Sultan University led the efforts, while SABIC and Aramco spearheaded innovation contributions.

The ranking reflects the Kingdom's integrated research and innovation ecosystem, supporting researchers and innovators in line with Saudi Vision 2030.