Italian Official to Asharq Al-Awsat: We Will Work with Saudi Arabia to Enter Third Markets

Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
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Italian Official to Asharq Al-Awsat: We Will Work with Saudi Arabia to Enter Third Markets

Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)
Signing of a cooperation agreement between the Federation of Saudi Chambers and Italy's national promotional and development institution (X)

Riyadh and Rome are moving their economic relations toward a more practical track, with plans for joint cooperation in third markets, alongside expanding channels of cooperation between Saudi and Italian companies, particularly small and medium-sized enterprises.

The move comes as Italy's national promotional institution, Cassa Depositi e Prestiti (CDP), signed two agreements in Riyadh, one with Saudi Arabia's National Development Fund and another with the Federation of Saudi Chambers, aimed at expanding financing and investment cooperation and facilitating companies' access to opportunities in both countries.

A senior Italian official told Asharq Al-Awsat that cooperation between Riyadh and Rome is not limited to the Saudi and Italian markets, but also extends to working together in "third markets." He noted that Saudi Arabia's economic diversification offers broad opportunities for Italian companies, given Italy's diverse industrial base and expertise across multiple sectors.

On Wednesday, the Federation of Saudi Chambers and CDP signed an agreement in Riyadh aimed at activating the Saudi-Italian strategic partnership launched in AlUla, opening financing channels for joint projects, integrating small and medium-sized enterprises into cooperation between the two countries, and strengthening the federation's role as the institutional representative of the Saudi private sector in cooperation with its Italian counterpart.

The agreement provides a practical framework for strengthening partnerships between the business sectors of the two countries by supporting a business-matching platform that connects Saudi companies with their Italian counterparts, introducing projects and investment opportunities, and establishing communication channels to help Italian companies explore the Saudi market and facilitate their entry.

CDP is part of the Saudi-Italian strategic partnership launched in AlUla, while the agreement enables the Federation of Saudi Chambers and its Saudi-Italian Business Council to play a greater role in advancing private-sector cooperation between the two countries and turning partnership opportunities into joint projects and business ventures.

Joint Strategic Cooperation

Dario Scannapieco, President of CDP (Cassa Depositi e Prestiti), told Asharq Al-Awsat that cooperation between Italy and Saudi Arabia "is not limited to bringing the two countries closer together or working within the Saudi market, but also includes cooperation in other countries and third markets."

He explained that the Italian delegation's visit to Riyadh has several objectives, foremost among them meeting with investors and strengthening cooperation with Saudi institutions. He said the meeting with the National Development Fund was "very fruitful" and had paved the way for excellent cooperation with it in many fields.

He added that the agreement signed with the Federation of Saudi Chambers represents "a further step" toward moving from institutional cooperation to more operational cooperation, with the aim of helping Italian SMEs that want to explore the possibility of entering Saudi Arabia, providing them with direct contacts and facilitating their access to the market.

"We are launching and revamping a platform that will put Italian SMEs in contact with Saudi SMEs. So business opportunities may develop from this new opportunity. This is another signal that Italy and Saudi Arabia must cooperate more," Scannapieco said.

He noted that there are many opportunities for cooperation between Italy and Saudi Arabia through Cassa Depositi e Prestiti, Italy's national promotional institution, adding that CDP is working to foster this cooperation and expand its scope.

Regarding the agreement's details, Scannapieco said its first objective is to support and expand the business-matching platform, which will connect Saudi SMEs with Italian SMEs and help them identify potential partners.

"The second is the idea to work on selected projects here in Saudi Arabia and allow Italian companies to know about these projects. The Expo is one of this kind where clearly Italian projects may be involved," he said.

"The third is to create a contact point between these two organizations, so to iron out all the doubts and to clearly push developing this relationship." He explained that when an Italian company wants to enter the Saudi market, it needs support in obtaining authorizations and handling other requirements.

"So it's very concrete, goes in the direction to make easier the access to Saudi Arabia for Italian companies," he said.

On the extent to which the strategic relationship between the two countries can help address challenges that may arise in the region, Scannapieco said Italy has "a very diversified industrial base" and produces a wide range of products.

"We are the third most diversified industry after China and the United States," he said.

This diversity, he added, enables Italian companies to provide specialized technical expertise and become useful partners in efforts to diversify the Saudi economy. "We could be extremely valuable partners."

He said the next phase requires bringing the Italian business sector's presence in Saudi Arabia to a broader level. Many large companies are already present in the Kingdom, he noted, but "now is the time to also give the opportunity to SMEs to internationalize in this region," thereby expanding the base of economic cooperation between the two countries.

Saudi-Italian Partnership Moves Toward Implementation

Kamel Al-Munajjed, Chairman of the Saudi-Italian Business Council, told Asharq Al-Awsat that the agreement is a direct extension of the meeting held in AlUla in January 2025 between Crown Prince and Prime Minister Mohammed bin Salman and Italian Prime Minister Giorgia Meloni, which elevated relations between the two countries to the level of a strategic partnership and made economic relations one of its main pillars.

He added that the agreement signed Wednesday between CDP and the Federation of Saudi Chambers represents a practical step toward strengthening cooperation between the business sectors of the two countries and provides a new channel for turning existing relations into commercial and investment partnerships and projects.

Al-Munajjed said the agreement strengthens the partnerships built by the Saudi-Italian Business Council with Confindustria and CNA through delegations, forums, and direct business meetings. He noted that CDP's capabilities and the scope of the Federation of Saudi Chambers' work would help turn these links into more sustained business opportunities.

He said the agreement offers two main advantages. The first is CDP's business-matching platform, which allows Saudi and Italian companies to enter information about their capabilities and business interests and then identify potential partners whose needs match those capabilities.

The platform can shorten the path for companies seeking suitable partners. A Saudi industrial company looking for Italian technology, for example, can identify companies capable of meeting its needs, while an Italian company seeking to enter the Saudi market can search for a local partner. The federation and the business council will work to encourage companies to use the platform and follow up on cooperation opportunities that emerge through it.

The second advantage, Al-Munajjed said, is strengthening cooperation with SIMEST, a subsidiary of the CDP Group. Its presence in Riyadh and support for the international expansion of Italian companies could help more companies, particularly SMEs, establish and expand their businesses in Saudi Arabia.

He added that the joint channel provided by the agreement will enable Saudi companies seeking to trade, invest, or operate in Italy to reach suitable Italian partners and identify new opportunities. He called on the Saudi business community to take advantage of the partnership and work to turn it into sustainable projects and shared growth opportunities.

Al-Munajjed said Italian companies have specialized expertise in engineering, technology, and manufacturing, while Saudi companies provide knowledge of the local market and the ability to expand. Opportunities for cooperation extend to trade, infrastructure, telecommunications, industry, energy, tourism, and other sectors.

He added that Expo 2030 Riyadh represents an important opportunity to bring these capabilities together and open new areas for companies in both countries. He stressed that the priority now is to move to implementation by bringing companies onto the platform, identifying priority sectors, establishing clear points of contact, and following promising opportunities through to actual projects.



Georgieva: More Work Needed on Lebanon Program

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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Georgieva: More Work Needed on Lebanon Program

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

International Monetary Fund Managing Director Kristalina Georgieva said on Saturday that ‌there were "intense" ‌discussions on support ‌for Lebanon ⁠reflecting significant progress ⁠towards a loan program.

"In the case ‌of ‌Lebanon, we are ‌in very intense ‌discussions with the Lebanese authorities," Georgieva told a closing news conference at ‌IMF and World Bank annual meetings in ⁠Bangkok.

"We ⁠have made significant progress towards the program. We have still a bit more work to do together, and I'm confident we will be successful."


Al-Jadaan: Wars and Supply Disruptions Heighten Risks to Global Economy

Al-Jadaan during his participation in the meeting of Arab governors with the President of the World Bank Group on Friday (X)
Al-Jadaan during his participation in the meeting of Arab governors with the President of the World Bank Group on Friday (X)
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Al-Jadaan: Wars and Supply Disruptions Heighten Risks to Global Economy

Al-Jadaan during his participation in the meeting of Arab governors with the President of the World Bank Group on Friday (X)
Al-Jadaan during his participation in the meeting of Arab governors with the President of the World Bank Group on Friday (X)

Saudi Arabia's Finance Minister Mohammed Al-Jadaan, Chair of the International Monetary and Financial Committee (IMFC), said that ongoing wars, conflicts and supply chain disruptions were imposing significant human and economic costs worldwide and adding to price pressures, particularly in the poorest and most vulnerable countries.

In remarks at the Committee's 54th meeting in Bangkok, Jadaan stressed the need to strengthen economic and financial stability, step up international cooperation and end conflicts to achieve sustainable growth and long-term stability.

A statement issued following the Committee’s meeting said the global economy had weathered a series of recent shocks better than expected, but warned that the buffers underpinning its resilience had eroded, making its continued resilience uncertain.

The statement cautioned that escalating conflicts, trade tensions, rising public debt and higher refinancing costs could exacerbate economic and financial vulnerabilities, as economies undergo rapid structural transformations driven by technological advances, demographic shifts and climate risks.

The Committee stressed the need to address fiscal vulnerabilities, strengthen debt sustainability, and protect the most vulnerable groups and investments that support productivity and growth. It also underscored the importance of central bank independence, secure energy flows, freedom of navigation and enhanced international cooperation to address economic and financial challenges.

The Committee commended Saudi Arabia’s leadership and welcomed the extension of Al-Jadaan’s term as chair for one year.

It said the global economy had weathered recent shocks better than expected but warned that the buffers underpinning its resilience had eroded, making its continued resilience uncertain.

Wars and conflicts continue to impose immense humanitarian burdens and significant economic costs, while supply chain disruptions and trade tensions heighten uncertainty and price pressures.

Conversely, rapid advancements in advanced artificial intelligence technologies have contributed to supporting investment and trade, with the potential to boost productivity. The Committee explained that these developments have so far coincided with generally stable global growth, but economic gains remain uneven, while low-income countries and fragile states face the risk of widening the gap between them and other economies.

The Committee warned that risks are skewed to the downside, noting that escalating conflicts and trade tensions could disrupt vital trade routes and increase pressure on commodity prices, including refined energy products, in addition to exacerbating risks to energy and food supply security.

It also cautioned that rising sovereign bond yields in systematically important economies could affect global financial conditions, especially given high levels of public debt and refinancing needs in many countries. These pressures, along with the uncertainty surrounding the impact of advanced artificial intelligence technologies on the economy and financial sector, could further increase economic and financial vulnerabilities.

It added that accelerating technological transformations, demographic changes, increasing extreme weather events and natural disasters, as well as geoeconomic fragmentation, further complicate the choices and tradeoffs facing policymakers.

Fiscal Consolidation

The Committee emphasized that strengthening economic and financial stability requires sound and consistent macroeconomic policies and multilateral cooperation, supporting strong and broad-based growth.

It called for urgently addressing fiscal vulnerabilities and advancing efforts to consolidate spending and revenue, supported by credible medium-term fiscal frameworks, to ensure fiscal and debt sustainability and rebuild precautionary buffers, in line with each country's circumstances. At the same time, it stressed the need to protect the most vulnerable groups and priority investments that foster productivity and growth.

Regarding monetary policy, the Committee reaffirmed central banks' commitment to ensuring price stability in line with their mandates, while continuing to adjust policies based on data and clear communication regarding decisions. It emphasized that central bank independence is a fundamental pillar for policy credibility and maintaining stable inflation expectations.

It also underscored the importance of adhering to international standards and closely monitoring and addressing vulnerabilities and risks threatening financial stability. It welcomed the "Bangkok Blueprint," which aims to strengthen safeguards related to digital finance, enhance resilience against cyberattacks, and advance international efforts to combat digital fraud.

Concerning growth and productivity, the Committee called for continuing reforms that enhance the role of the private sector and leveraging advanced artificial intelligence technologies and digital transformation to boost productivity, while addressing the risks associated with these technologies and expanding the scope of their benefits.

It further stressed the necessity of international cooperation to address global challenges and ensure the stability and effective functioning of the international monetary system, tackle excessive global imbalances and trade tensions, avoid distortionary policies, and enhance supply chain resilience through reforms that consider each country's circumstances and multilateral cooperation, thereby supporting a fair and open global economy.

Regarding energy, the Committee emphasized the importance of ensuring safe and reliable energy flows and upholding the principle of freedom of navigation, considering them essential elements for global economic stability. It also reaffirmed adherence to the exchange rate commitments outlined in the April 2021 understanding.

Supporting Heavily Indebted Countries

The Committee also stressed the importance of assisting countries in implementing reforms and addressing debt-related vulnerabilities through sound macroeconomic policies, domestic resource mobilization, and improved governance.

It paid particular attention to the challenges facing low-income countries and the most vulnerable middle-income countries, including fragile and conflict-affected states and small developing states.

Regarding sovereign debt, the Committee stressed the need to continue improving restructuring operations, including within the "Common Framework," building on progress made, and advancing work at the "Global Sovereign Debt Roundtable" to ensure the orderly, coordinated, timely, and predictable implementation of restructuring operations.

It also called on all stakeholders, including private sector creditors, to enhance debt transparency.

The Committee encouraged increased support for countries with sustainable debt, strong reform programs, and robust growth plans, but which face short-term financing challenges, by accelerating the implementation of the IMF and World Bank Group's three-pillar approach.

It expressed gratitude to members who provided necessary assurances to support the self-sustaining lending capacity of the Growth and Poverty Reduction Trust Fund, looking forward to other members promptly providing the required guarantees.

IMF Reforms

The Committee welcomed the Managing Director of the International Monetary Fund's Global Policy Agenda and the recent approval of a comprehensive set of policy reviews aimed at strengthening economic surveillance, debt analysis, lending, and capacity development.

It called for the swift and effective implementation of these reforms, ensuring their fair and consistent application among members, and supported strengthening the integration between capacity development, economic surveillance, and lending.

It clarified that these changes would help countries identify risks, manage uncertainty, and implement sound policies and reliable frameworks, thereby enhancing resilience and supporting growth.

It also welcomed the Fund's work on the macroeconomic and policy-related implications of advanced artificial intelligence technologies, looking forward to further analysis and advice in this area within the institution's mandate.

Increasing Fund Resources

The Committee reiterated the importance of a strong, quota-based, and adequately resourced International Monetary Fund to ensure its continued pivotal role in the global financial safety net.

It called for the completion of necessary domestic approvals for the quota increase under the Sixteenth General Review of Quotas without further delay.

It also noted that the Diriyah Guidelines will provide a basis for future discussions on quota and governance reforms, including within the framework of the Seventeenth General Review of Quotas.

Modernizing Fund Operations and Enhancing Representation of Women and Regions

The Committee supported the International Monetary Fund's efforts to modernize its operations, strengthen institutional risk management, and invest in its staff, thereby maintaining its flexibility, responsiveness, and readiness for future requirements, including through the thoughtful internal use of advanced artificial intelligence technologies.

It expressed its appreciation for the work and efforts undertaken by Fund staff, within a merit-based system, and called for further improving the representation of regions and women in positions within the institution.

It also emphasized the importance of enhancing the representation of women on the Fund's Executive Board and in leadership positions within the Board, and affirmed the necessity of taking the required measures to achieve the voluntary goals adopted in this area.

It further stressed that the selection of all candidates should be based on the merit criteria adopted by each member country.

Finally, the Committee noted that its next meeting is expected to be held in Washington D.C. in April 2027.


Pakistan Says Attacks on Gulf Energy Infrastructure 'Worrying' for Outlook

Pakistan Finance Minister Muhammad Aurangzeb gestures during a Reuters interview in the IMF/World Bank 2026 Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 12, 2026. REUTERS/Patipat Janthong
Pakistan Finance Minister Muhammad Aurangzeb gestures during a Reuters interview in the IMF/World Bank 2026 Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 12, 2026. REUTERS/Patipat Janthong
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Pakistan Says Attacks on Gulf Energy Infrastructure 'Worrying' for Outlook

Pakistan Finance Minister Muhammad Aurangzeb gestures during a Reuters interview in the IMF/World Bank 2026 Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 12, 2026. REUTERS/Patipat Janthong
Pakistan Finance Minister Muhammad Aurangzeb gestures during a Reuters interview in the IMF/World Bank 2026 Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 12, 2026. REUTERS/Patipat Janthong

Pakistan's finance minister on Saturday told AFP the country had so far withstood the shock from skyrocketing energy prices due to the Iran war, but that attacks on infrastructure in Saudi Arabia and other Gulf countries were "worrying" for the country's longer-term economic outlook.

In an interview on the sidelines of the IMF-World Bank Annual Meetings in Bangkok, Muhammad Aurangzeb said the South Asian country had procured enough energy supplies to last through November, and was now planning for the winter months, when household needs typically spike.

"The first-order impact has been negotiated well by Pakistan," he said.

"We've had no shortage, no queues at the gas stations, and no law and order situation, which at times we have seen in some of the countries."

He added that unless the government saw "an absolute dire need", it would not be procuring spot cargoes on the LNG front, which tend to be far more expensive than previously contracted shipments.

Since the United States and ally Israel launched the war on Iran in February, global energy prices have surged as Tehran's retaliatory action has targeted Washington's Gulf allies and curtailed oil and gas supplies.

With Yemen's civil war flaring back to life as well, the Houthis there have repeatedly attacked Saudi infrastructure, including energy facilities and airports, in recent days.

Aurangzeb expressed alarm at the escalation, saying damage to such sites would delay a return to economic normalcy.

"What is now (the) worrying part of it is when the energy infrastructure starts getting hit," he said.

"I, to be very honest, I don't know where that would go. But one thing is very clear: that if the infrastructure continues to get hit, the return to normalcy, even if things subside, will take longer."

- 'Pushback' -

Pakistan has been a frequent customer at the International Monetary Fund (IMF), the lender of last resort to countries on the brink of default.

It is currently in the midst of its 25th program with the Fund -- at least 11 of which have been outright bailouts -- since gaining independence in 1947.

The current program totals around $7 billion over three years, with the Fund reaching an agreement this month to release a $1.2 billion tranche.

With global debt stocks running high, the Fund has called at this year's annual meetings on all economies, even those most vulnerable to the Iran war shock, to engage in fiscal consolidation to avoid a potential crisis.

"Fortunately for us, we have been on this fiscal consolidation path for a while," Aurangzeb said with a rueful smile.

The country's tax revenues have grown significantly in recent years, and the finance minister said the government was targeting the theft of taxes by private sector businesses that collected sales tax from consumers but never deposited it in government accounts.

Such theft accounted for billions of dollars, Aurangzeb said, adding that there remained "room for improvement" on increasing income tax collection as well.

He said the government's reform agenda had faced resistance from industry, lobbying groups and vested interests.

"Every reform, everything that you try to do when you try to change the status quo, there is pushback," he said.

One of the major pillars of the IMF's program criteria is privatizing state-owned assets in Pakistan, where the military runs a vast empire of businesses in sectors from real estate to fertilizer.

Asked about those companies, Aurangzeb denied that they were receiving state funding.

"As far as we are concerned, whichever commercial enterprises (the military) are running, they are running on a standalone basis and profitable on their own basis," he said.

"So, I can confirm to you, we are not providing any funds from the exchequer."

Pakistan's military has directly ruled the country for roughly two-fifths of its history, and under current army chief Field Marshal Asim Munir it has tightened its grip over key pillars of power, even as a civilian government remains nominally in charge of the state.