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Exclusive - From Riyadh to Davos: A Message of Confidence and Reform

Saudi Minister of Finance Mohammed Al-Jadaan. (Reuters)
Saudi Minister of Finance Mohammed Al-Jadaan. (Reuters)
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Exclusive - From Riyadh to Davos: A Message of Confidence and Reform

Saudi Minister of Finance Mohammed Al-Jadaan. (Reuters)
Saudi Minister of Finance Mohammed Al-Jadaan. (Reuters)

At the World Economic Forum in Davos, Saudi Arabia underlined its commitment to its reform program, in the different social, economic and financial fields.

Saudi Minister of Finance Mohammed Al-Jadaan told Asharq Al-Awsat that over the past two years, the Kingdom has presented in Davos a reform program and pledges that were translated into clear achievements and concrete projects through large private sector investments.

Saudi Arabia’s Vision 2030 extends over 15 years, and consists of three stages, Al-Jadaan said. “We have come a long way in planning, and we have begun to implement the projects by focusing too much on private sector development, creating more jobs and restructuring the systems.”

He noted that 18 systems were restructured in 2018 - a major endeavor that used to take many years to accomplish in the past.

On the financial side, Al-Jadaan pointed to “great achievements, mainly curbing the deficit significantly from 12 percent in 2016 to 9 percent in 2017, and to 4.6 percent in 2018.” He added that he hoped the deficit would not exceed 5 percent in the current year.

The minister said that the coming week would witness the announcement of very large initiatives for the private sector within the framework of the National Industries and Logistics Program.

In remarks to Asharq Al-Awsat, Saudi Ministry of Economy and Planning Mohammed Al-Tuwaijiri said that the reforms led by Saudi Arabia were as big as the country’s ambitions.

“The year 2018 has witnessed great momentum, which will continue to grow in 2019 and 2020,” he revealed.

Regarding the confidence of local and foreign investors, Al-Tuwaijiri emphasized the significance of promoting institutional work and sustainability.

“The most important thing we have heard in Davos this year and in recent years is the importance of institutional work,” he stated.

In this regard, the minister stressed that investors became “aware that work in Saudi Arabia is sustainable, institutional, and built on clear foundations that enable rapid implementation and continuous communication with the private sector.”

He added that one of the objectives of Vision 2030 was to transform the Kingdom into a logistics hub connecting continents, through advanced infrastructure, digitization and multi-polar services and cooperation.

Al-Jadaan, for his part, highlighted the strong communication between the government and local investors.

“Our first concern is the local investor. There is continuous communication between the government and the Saudi investors,” he affirmed. “We hear their views to determine the list of obstacles they face, and we work with the private sector to solve them.”

As for the confidence of foreign investors, Al-Jadaan noted that Saudi issuances two weeks ago have demonstrated “a very big trust of foreign investors” in the Kingdom’s financial system.

“Two weeks ago, we issued bonds worth $7 billion, and a range of projects have been launched over the past four months; most of them by foreign investors… in the sectors of health, electricity, water and sanitation,” he said, adding that other projects would be announced later this year.

Saudi Arabia participated in this year’s meetings of the World Economic Forum in Davos, Switzerland, with a high-level delegation headed by Foreign Minister Ibrahim al-Assaf.

A panel session on “Next Steps for Saudi Arabia” was held on Thursday, with the participation of French Total’s chief executive Patrick Pouyanne and Morgan Stanley’s CEO James Gorman, along with the Saudi ministers of Economy and Finance and Sarah Al-Suhaimi, Chairman of the Board of Directors of Tadawul.

Speaking during the session, Al-Jadaan said the Kingdom managed to turn the shrinking economy of about 0.7 percent in 2017 to a growth rate of 2.3 percent by the end of 2018.

He added that the country announced the largest budget in its history to develop the local economy and was working on many infrastructure projects, stressing that the field of investment was currently witnessing positive results.

The minister underscored the regional role assumed by Saudi Arabia, by contributing to stability and giving hope to the youth.

Pouyanne said Total was engaging in a US5 billion refining and petrochemical investment in Saudi Arabia and would also soon announce a new venture for petrol stations. He stressed that the reform program reinforced his confidence in the need to invest in the Kingdom.

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Business

Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
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Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)

Saudi Arabia’s Yanbu Commercial Port achieved a new operational milestone by successfully serving 11 vessels simultaneously of various sizes and cargo capacities, reflecting the port's high level of operational readiness, reported the Saudi Press Agency on Monday.

The achievement underscores the efficiency of the port's operations and its ability to manage maritime and commercial traffic with a high degree of effectiveness.

It contributes to smoother import and export activities and supports the continuity of supply chains in accordance with the highest operational and logistical standards.

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system and reinforcing its position as a key logistics hub on the Red Sea coast.

It also supports economic growth and enhances the competitiveness of the maritime and commercial sectors.

Business

IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
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IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)

The International Monetary Fund's new Africa chief, Zeine Zeidane, said that conflict in the Middle East has created difficulties for sub-Saharan Africa but reaffirmed the fund's commitment to aiding nations under economic strain.

Zeidane, who assumed his role as Director of the IMF's African Department on May 1, oversees operations and engagement with 45 countries across the region.

"My immediate priority is really to help countries in ‌the region to weather ‌this shock," Zeidane said at ‌a ⁠media briefing.

The IMF ⁠has already reached staff-level agreements to provide augmented financing in response to the conflict's effects for Burkina Faso, The Gambia and São Tomé and Príncipe.

For Ethiopia, which has a large IMF program in place, Zeidane said the fund accelerated about $200 million ⁠in financing.

Zeidane warned that disruptions linked to ‌the Middle East conflict could ‌take months to resolve, noting that a ceasefire was already ‌in place but that Gulf nations had ‌indicated it typically takes six to seven months for production and exports to resume fully.

He added that the Middle East's role as a significant exporter of fertilizers would have ‌far-reaching implications for Africa's food security and production costs.

Despite immediate challenges, Zeidane expressed ⁠optimism over ⁠sub-Saharan Africa's long-term prospects, noting that prior to the current crisis, the region was among the fastest-growing globally and had made strides in fiscal consolidation.

"The future, the next growth engine for the world, will be Africa," he said. "We need to support Africa to unlock its potential."

Zeidane, who began his IMF career in 2012, previously served as Mauritania's prime minister, central bank governor and economic adviser to the president. He succeeded Abebe Aemro Selassie, who retired from the IMF in May.

Business

The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
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The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)

The recent regional war and the closure of the Strait of Hormuz have pushed Iraq’s economy into one of its most serious crises in decades. The massive financial losses are more than just another consequence of regional conflict; they have exposed Iraq’s near-total dependence on a single maritime export route.

As Baghdad struggles to finance public-sector salaries through domestic borrowing and the use of foreign-exchange reserves, the crisis has renewed scrutiny of years of poor planning, corruption, and political obstruction of strategic projects, such as the Basra-Aqaba oil pipeline, initiatives that could have provided alternative export routes and a safety net for the country’s most important source of income.

Financial and energy analysts estimate Iraq’s losses at more than $37 billion, a severe blow to an economy that relies overwhelmingly on oil revenues.

The disruption has forced authorities to draw on domestic debt and accumulated reserves to cover monthly salary and pension obligations estimated at roughly $6.5 billion.

Slow recovery

Although the conflict appears to be winding down and the Oil Ministry has expressed optimism about resuming production, energy experts caution that Iraqi oil fields may require months to return to their prewar output levels.

Before the crisis, Iraq produced more than 4.2 million barrels per day, including approximately 3.5 million barrels exported to international markets.

Observers said the consequences extend beyond the immediate financial shock caused by the freezing of oil revenues. The conflict revealed a “dangerous strategic vulnerability”: Iraq’s overwhelming reliance on southern Gulf export terminals and the Strait of Hormuz as the sole outlet for its most valuable resource.

The crisis has also revived debate over decades of mismanagement and inadequate planning in one of the country’s most vital economic sectors.

Oil trucks arrive from Iraq, on their way to the Baniyas oil terminal, in Qamishli, Syria, May 11, 2026. (Reuters)

A single export gateway

Over previous decades, Iraq possessed several overland export routes, including the Kirkuk–Ceyhan pipeline to Türkiye, the Iraq-Saudi pipeline, and the historic Kirkuk-Haifa and Kirkuk-Baniyas lines. Most have been out of service for years because of wars, political instability, and security challenges.

Successive governments sought to revive export diversification. Among the most significant proposals was the Basra-Aqaba pipeline, championed during the administration of former Prime Minister Mustafa Al-Kadhimi. The project would transport crude oil from southern Iraq to Jordan’s Red Sea port of Aqaba.

Energy specialists regard it as a strategic asset that could have reduced Iraq’s dependence on Gulf shipping routes. Political disputes and regional pressures, however, prevented its implementation.

Limited alternatives

As the crisis intensified and oil revenues dwindled, Iraq attempted to expand exports through Türkiye, Syria, and Jordan. Energy experts said those efforts achieved only marginal results.

Contrary to reports that Iraq was exporting oil through 700 tanker trucks through Syria, former Oil Ministry spokesman Asim Jihad said exports through Syrian territory amount to no more than 200 tankers per day.

He told Asharq Al-Awsat that Iraq is exporting fuel oil rather than crude oil through Syria to avoid bottlenecks at producing fields.

Such shipments, he added, are operationally complex and generate only limited revenue compared with normal export volumes.

On the northern route, Jihad noted that Iraq exports between 150,000 and 200,000 barrels per day through the Kurdistan Region’s pipeline to the port of Ceyhan in Türkiye.

Meanwhile, the older federal pipeline linking Kirkuk to Ceyhan remains out of service because of extensive damage that has yet to be repaired.

A drone view shows the Rumaila oil field in Basra, Iraq, June 8, 2026. (Reuters)

Jihad expressed little optimism that Iraq can establish major alternative export corridors outside the Gulf in the near future, citing time constraints, high costs, and political complications.

He also voiced uncertainty about negotiations with Ankara over future export agreements through Ceyhan, particularly as existing arrangements are set to expire at the end of July.

“The only option left for Iraq is to hope that no new conflict erupts in the Gulf that would once again close the Strait of Hormuz and deprive the country of its primary source of income,” he added.

Cost of the blockade

The Eco Iraq Observatory estimated that Iraq has lost roughly 350 million barrels of oil exports since the Strait of Hormuz was closed on February 28, representing missed sales worth approximately $37.7 billion at average market prices during the period.

According to the organization, Iraq had been exporting between 103 million and 107 million barrels of crude oil per month before the closure. Export losses reached 84.4 million barrels in March, 93.1 million in April, 92.8 million in May, and 79.6 million in June.

Eco Iraq argued that the “New Levant” initiative — a regional economic integration project involving Iraq, Jordan, and Egypt — has become a strategic necessity.

The plan envisions deeper economic cooperation, infrastructure links, and alternative export routes, including the shipment of Iraqi oil through Jordan to Egyptian ports, reducing dependence on geopolitically vulnerable maritime corridors.