Saudi Arabia to Finalize Integrated Strategy for Energy Sector

Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
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Saudi Arabia to Finalize Integrated Strategy for Energy Sector

Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr during the signing ceremony in Riyadh on Sunday. (SPA)

The Saudi Ministry of Energy and NEOM signed on Sunday a memorandum of cooperation that constitutes the Saudi road map for the implementation of future energy goals as the Kingdom prepares to complete an integrated energy sector strategy by the end of 2020.

In a ceremony in Riyadh, Energy Minister Prince Abdulaziz bin Salman and NEOM CEO Nadhmi Al-Nasr signed the MoU that focuses particularly on renewable energy and includes increased cooperation in green hydrogen production, application of a circular carbon economy, enhanced local content, innovation and development, and the application of artificial intelligence in the energy sector.

The minister emphasized that the areas of cooperation embodied the Kingdom’s strategies and directions towards an increased reliance on renewable resources, such as solar and wind energy, to generate electricity, in addition to NEOM’s contribution to the production of hydrogen in order to achieve energy sustainability while preserving the environment and opening the way for exports.

“We have to persevere and make all our capacities available to realize this project,” he told a press conference at the ceremony.

He added that NEOM was part of Saudi Vision 2030, which aims to attract foreign investment and generate jobs to reduce the Kingdom’s dependence on oil.

Energy mix
According to the MoU, areas of cooperation between the Ministry of Energy and NEOM will include shaping the energy mix to produce electricity; supporting renewable energy projects; benefiting from the Saudi Energy Efficiency Center’s (SEEC) programs; promoting electrical grid projects and their infrastructure; and applying rules of the national program for local content in the energy sector.

“The Ministry of Energy will supervise the implementation of renewable energy projects within the NEOM project, which target the production of 15 gigawatts of electricity by 2030, in addition to carrying out all preparatory work, such as assessing and measuring renewable energy sources at the selected sites and evaluating the electric transmission network,” the minister explained.

He added that the Ministry of Energy would prepare all the necessary documents for launching renewable energy projects in NEOM, with the aim to attract leading local and international companies.

In this regard, Prince Abdulaziz noted that NEOM was characterized by an excellent geographical location and ideal climate conditions, which will facilitate the production of electricity from renewable energy and contribute to reducing the cost of hydrogen production.

The MoU will also cover cooperation in the programs of the SEEC, including exchange of experiences in the field of energy efficiency and rationalization of consumption, as well as the adoption of energy efficiency standards to be used in NEOM’s buildings and facilities.

Artificial intelligence
Prince Abdulaziz affirmed that the agreement also sought the development and activation of artificial intelligence technologies, in its various forms, in order to better serve the business of generating and supplying energy and contribute to the development of a smart electricity network, through which energy is generated from various sources and distributed at a lower cost and higher efficiency.

He added that cooperation between the two sides also aimed to support and strengthen power network projects, including the design, construction and operation works in the Amala project, the hydrogen production plan, the electrical interconnection between Saudi Arabia and Egypt, in addition to studying the regulatory framework for electricity generation and cogeneration activities.

Local content
Addressing the press conference, Prince Abdulaziz talked about the National Program for Local Content in the Energy Sector, which he said sought to enhance and sustain local content in the energy business within NEOM.

According to the minister, the two sides will cooperate on the Hydrocarbon Demand Sustainability Program, focusing on raising the environmental and economic efficiency of these materials, in addition to promoting the use of blue and green hydrogen gas, which enhances the sustainability of oil demand.

Circular economy
The agreement also addressed the implementation of the circular carbon economy strategy, which, according to Prince Abdulaziz, relies on reducing emissions, reusing carbon, and using carbon as a feedstock for other products and finally decarbonizing. Relying on blue and green hydrogen represents one of the important initiatives under the circular carbon economy strategy.

Integrated energy strategy
In addition to being the largest oil exporter in the world, Saudi Arabia aspires to become one of the main countries in the production and export of renewable energy, according to the minister. This, of course, includes the production and export of hydrogen, he stated.

In this context, the NEOM’s new hydrogen project is a first step towards establishing an economically important activity within the Kingdom, which will contribute to enhancing growth, economic diversification and reducing greenhouse gas emissions.

NEOM projects
For his part, NEOM CEO Al-Nasr emphasized the importance of the memorandum as it will reinforce and support NEOM’s plans to be the world leader in the full reliance on renewable energy. He stressed that the city would rely totally on renewable power, including solar, wind and hydrogen produced from renewable energy sources.

“Facing climate change requires more efforts and cooperation in the field of a circular carbon economy, to reduce emissions and make optimal use of carbon in the economic life cycle, including the great role of hydrogen in this context,” he said.

The Ministry of Energy’s cooperation activities with NEOM included coordination to study and support the strengthening of electrical grid projects and its infrastructure, as part of NEOM’s endeavor to build an advanced and modern electricity transmission network to link renewable energy sources in the company’s business area, cooperation in the field of smart grids and customer service.



UK Growth Revised Down in Second Quarter 

Shoppers fill the pavement on Regent Street in central London on December 21, 2025. (AFP)
Shoppers fill the pavement on Regent Street in central London on December 21, 2025. (AFP)
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UK Growth Revised Down in Second Quarter 

Shoppers fill the pavement on Regent Street in central London on December 21, 2025. (AFP)
Shoppers fill the pavement on Regent Street in central London on December 21, 2025. (AFP)

Britain's economy expanded less than initially estimated in the second quarter, according to revised official data released Monday, dealing a fresh setback to the Labour government.

Gross domestic product was revised down to 0.2 percent in the April-June period from a previous estimate of 0.3 percent, the Office for National Statistics said in a statement.

Growth in the third quarter stood at an unrevised 0.1 percent, the ONS said, marking a sustained slowdown from the 0.7 percent expansion recorded in the first three months of the year.

"The economy is still pretty weak and is heading into 2026 with very little momentum," noted Alex Kerr, UK economist at Capital Economics.

Prime Minister Keir Starmer has struggled to revive Britain's sluggish economy since his Labour party came to power in July 2024.

Finance minister Rachel Reeves raised taxes on businesses in her inaugural budget last year -- a decision widely blamed for causing weak UK economic growth and rising unemployment.

She returned in her November budget with fresh tax hikes to bring down government debt, this time hitting workers.

The Bank of England last week cut its key interest rate to 3.75 percent after UK inflation eased faster than expected and as the economy weakens.


Saudi Finance Minister Says New Financial Control System Protects Public Funds

Saudi Minister of Finance Mohammed Al-Jadaan. Asharq Al-Awsat
Saudi Minister of Finance Mohammed Al-Jadaan. Asharq Al-Awsat
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Saudi Finance Minister Says New Financial Control System Protects Public Funds

Saudi Minister of Finance Mohammed Al-Jadaan. Asharq Al-Awsat
Saudi Minister of Finance Mohammed Al-Jadaan. Asharq Al-Awsat

Saudi Minister of Finance Mohammed Al-Jadaan has said that the new Financial Control System constitutes a “fundamental shift” in the control methodology and the improvement of the legislative framework for financial work in government agencies, through a more flexible and comprehensive model that focuses on empowerment and the protection of public funds.

Speaking at the 1st edition of the Financial Supervision Forum held at the General Court of Audit in Riyadh on Sunday, Al-Jadaan said the Kingdom must invest in national talent alongside regulatory reforms to build a modern financial oversight system.

He stressed the importance of enhancing institutional integration between the relevant authorities, especially between the Finance Ministry and the General Court of Audit, which contributes to unifying oversight efforts and reducing duplication.

According to Al-Jadaan, the success of this transformation depends on concerted efforts between regulatory authorities on the one hand, and authorities dealing with public money on the other hand, in a way that maximizes the impact in protecting public money and enhancing the efficiency of financial oversight.

President of the General Court of Audit Hussam Alangari also said that organizing the forum in partnership with the Finance Ministry comes within the qualitative transformation that Saudi Arabia is witnessing in financial oversight during an era in which the country holds a leading global position in the management of public finances, characterized by governance, responsibility, and a high level of transparency.

He told the forum that the General Court of Audit has had strong foundations that have strengthened its role and independence as the supreme authority for public financial oversight and auditing.

Alangari pledged to strengthen the “deep partnership” with the Finance Ministry, describing it as a partnership cemented by trust and built on the foundations of cooperation across various fields.

The partnership has resulted in qualitative leaps, most notably what has been achieved in the exchange of information through full technical integration between the Etimad and Shamel platforms, he said.


Trump Shook up Global Trade This Year; Some Uncertainty May Persist in 2026 

Containers are seen at the port in Shanghai, China, Oct. 13, 2025. (AFP)
Containers are seen at the port in Shanghai, China, Oct. 13, 2025. (AFP)
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Trump Shook up Global Trade This Year; Some Uncertainty May Persist in 2026 

Containers are seen at the port in Shanghai, China, Oct. 13, 2025. (AFP)
Containers are seen at the port in Shanghai, China, Oct. 13, 2025. (AFP)

President Donald Trump's return to the White House in 2025 kicked off a frenetic year for global trade, with waves of tariffs on US trading partners that lifted import taxes to their highest since the Great Depression, roiled financial markets and sparked rounds of negotiations over trade and investment deals.

His trade policies - and the global reaction to them - will remain front and center in 2026, but face some hefty challenges.

WHAT HAPPENED IN 2025

Trump's moves, aimed broadly at reviving a declining manufacturing base, lifted the average tariff rate to nearly 17% from less than 3% at the end of 2024, according to Yale Budget Lab, and the levies are now generating roughly $30 billion a month of revenue for the US Treasury.

They brought world leaders scrambling to Washington seeking deals for lower rates, often in return for pledges of billions of dollars in US investments. Framework deals were struck with a host of major trading partners, including the European Union, the United Kingdom, Switzerland, Japan, South Korea, Vietnam and others, but notably a final agreement with China remains on the undone list despite multiple rounds of talks and a face-to-face meeting between Trump and Chinese leader Xi Jinping.

The EU was criticized by many for its deal for a 15% tariff on its exports and a vague ‌commitment to big ‌US investments. France's prime minister at the time, Francois Bayrou, called it an act of submission ‌and ⁠a "somber day" for the ‌bloc. Others shrugged that it was the "least bad" deal on offer.

Since then, European exporters and economies have broadly coped with the new tariff rate, thanks to various exemptions and their ability to find markets elsewhere. French bank Societe Generale estimated the total direct impact of the tariffs was equivalent to just 0.37% of the region's GDP.

Meanwhile, China's trade surplus defied Trump's tariffs to surpass $1 trillion as it succeeded in diversifying away from the US, moved its manufacturing sector up the value chain, and used the leverage it has gained in rare earth minerals - crucial inputs into the West's security scaffolding - to push back against pressure from the US or Europe to curb its surplus.

What notably did not happen was the economic calamity and high inflation that legions ⁠of economists predicted would unfold from Trump's tariffs.

The US economy suffered a modest contraction in the first quarter amid a scramble to import goods before tariffs took effect, but quickly rebounded and ‌continues to grow at an above-trend pace thanks to a massive artificial intelligence investment boom ‍and resilient consumer spending. The International Monetary Fund, in fact, twice ‍lifted its global growth outlook in the months following Trump's "Liberation Day" tariffs announcement in April as uncertainty ebbed and deals were struck to reduce ‍the originally announced rates.

And while US inflation remains somewhat elevated in part because of tariffs, economists and policymakers now expect the effects to be more mild and short-lived than feared, with cost sharing of the import taxes occurring across the supply chain among producers, importers, retailers and consumers.

WHAT TO LOOK FOR IN 2026 AND WHY IT MATTERS

A big unknown for 2026 is whether many of Trump's tariffs are allowed to stand. A challenge to the novel legal premise for what he branded as "reciprocal" tariffs on goods from individual countries and for levies imposed on China, Canada and Mexico tied to the flow of fentanyl into the US was argued before the US Supreme Court in late 2025, ⁠and a decision is expected in early 2026.

The Trump administration insists it can shift to other, more-established legal authorities to keep tariffs in place should it lose. But those are more cumbersome and often limited in scope, so a loss at the high court for the administration might prompt renegotiations of the deals struck so far or usher in a new era of uncertainty about where the tariffs will end up.

Arguably just as important for Europe is what is happening with its trading relationship with China, for years a reliable destination for its exporters. The depreciation of the yuan and the gradual move up the value chain for Chinese companies have helped China's exporters. Europe's companies meanwhile have struggled to make further inroads into the slowing domestic Chinese market. One of the key questions for 2026 is whether Europe finally uses tariffs or other measures to address what some of its officials are starting to call the "imbalances" in the China-EU trading ties.

Efforts to finally cement a US-China deal loom large as well. A shaky detente reached in this year's talks will expire in the second half of 2026, and Trump and Xi are tentatively set to meet twice over the course of the ‌year.

And lastly, the free trade deal with the two largest US trading partners - Canada and Mexico - is up for review in 2026 amid uncertainty over whether Trump will let the pact expire or try to retool it more to his liking.