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Saudi Foreign Trade Affects Economic Growth

Saudi Foreign Trade Affects Economic Growth
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Saudi Foreign Trade Affects Economic Growth

Saudi Foreign Trade Affects Economic Growth

Saudi foreign trade has begun affecting Saudi economic growth, revealed a recent study.

It said the growing foreign investment flow in Saudi Arabia during the past three years has contributed to stimulating foreign trade.

A study prepared by the Saudi Arabian Monetary Authority’s (SAMA) Research Department found that foreign investors’ interest in Saudi Arabia has increased recently.

It showed that foreign investment flows have increased by 199 percent in 2018 compared to that in 2017.

The study also stressed that high-efficiency foreign direct investment is expected to boost foreign trade, which in turn will improve the balance of payments by stimulating exports and attracting foreign capital.

The two researchers, Sarah al-Nuwaiser from the Research Department at SAMA and Arwa al-Zaid from the College of Business Administration at King Saud University, have prepared their analysis of a time series of data from 1971 to 2017 about the impact of foreign trade on economic growth.

They highlighted the yet-still weak impact of direct foreign investment on the Kingdom’s economic growth during the study period.

They indicated that this was due to the concentration of direct foreign investment on the chemical and refined oil products sectors, with less focus on the activity of non-oil manufacturing industries.

According to the study, the government has launched a program to develop the national industry and logistic services that are concerned with the selection of foreign investments with added value in the industry.

It aimed at diversifying and stimulating exports, increasing local content and employing national manpower, the study noted, stressing that this contributes to achieving the Kingdom’s Vision 2030 by accelerating the diversification of the production base and reducing unemployment rates.

The study, issued this year, pointed to the relationship between bank credit and economic growth, as data sample tests have confirmed a positive impact.

It explained that the long-term balance relationship between foreign trade, direct foreign investment and bank credit granted to the private sector, on one hand, and Saudi economic growth, on the other hand, indicates that there is a common complementarity between the study’s both variables.

The study also found that there is a positive effect of commercial openness on economic growth in the Kingdom as a result of the positive impact on the freedom of capital entry into the Saudi economy.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.