Study Highlights Importance of Raising Savings Rate in Saudi Arabia to Support Economic Growth

The study issued by the KPMG consulting company highlighted the link between household savings’ rate and the state’s economic growth. (AFP)

Riyadh: Mohammed al-Hamidi

11:45-7 February 2021 AD ـ 25 Jumada Al-Alkhirah 1442 AH

Riyadh: Mohammed al-Hamidi

11:45-7 February 2021 AD ـ 25 Jumada Al-Alkhirah 1442 AH

Study Highlights Importance of Raising Savings Rate in Saudi Arabia to Support Economic Growth

The study issued by the KPMG consulting company highlighted the link between household savings’ rate and the state’s economic growth. (AFP)

An economic study called for the need to raise the savings rate in Saudi Arabia to support economic growth, pointing to the importance of promoting a culture of savings through behavioral experiences and the establishment of a supervisory body to monitor progress in implementing savings performance.

The study issued by the KPMG consulting company on “Analysis of Household Saving in the Kingdom of Saudi Arabia” highlighted the link between household savings’ rate and the state’s economic growth, indicating the need to improve the existing rate to the global level of 10%, which is recognized as the lowest level to guarantee long-term financial stability.

The report showed how some countries, by adopting innovative solutions and policies, have instilled a savings mindset among their citizens.

“Household savings and investments are two vital cogs in the proper functioning of an economy. An acceptable rate of economic growth typically requires an adequate rate of investment and therefore, a satisfactory supply of savings,” said Abdullah Al Fozan, Chairman of KPMG in Saudi Arabia.

He continued: “Due to the key role household savings play in the economic development of a country, Saudi Arabia, as part of the Saudi Vision 2030 programs, launched the Financial Sector Development program (FSDP).”

He explained in the report that one of the key objectives of FSDP was to “develop a diversified financial sector to support the development of the national economy and stimulate savings.”

Al Fozan underlined that the unavailability of an adequate number of savings products in the market and a low level of financial literacy compared to other countries such as Australia and Germany, encompass some of the factors behind Saudi Arabia’s low household savings rate.

“The country’s household savings rate, as of 2018, is significantly low compared with that of other G20 countries including Germany (11 percent), the US (8 percent) and Mexico (10.8 percent),” he remarked.

According to the study, one of the major objectives of FSDP is to “promote and enable financial planning by driving the expansion of savings products available in the market, strengthening the savings ecosystem, and enhancing financial literacy.”

South Korea Sends 1st Container Ship Through Arctic Route

The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)

Asharq Al Awsat

05:38-23 August 2026 AD ـ 10 Rabi’ Al-Awwal 1448 AH

Asharq Al Awsat

05:38-23 August 2026 AD ـ 10 Rabi’ Al-Awwal 1448 AH

South Korea Sends 1st Container Ship Through Arctic Route

The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)

South Korea sent its first trial container ship through the Arctic on Saturday, as the Middle East war rattles global shipping, while environmental groups warned the route could accelerate polar ice melt.

The Middle East conflict, sparked by US-Israeli strikes on Iran in February, has roiled global shipping, sending governments and shipping firms scrambling to seek alternative routes.

Sailing from Busan New Port, the "PanStar Acro" container ship is to sail to Europe via the Arctic, testing whether a route opened by melting sea ice can be commercially viable.

"We would like to inform you that the vessel for the Arctic route trial voyage departed" at 9:30 pm (1230 GMT), Seoul's oceans ministry said in a statement sent to AFP.

The ship is headed for Felixstowe in Britain, Rotterdam in the Netherlands and Gdansk in Poland before returning, with the voyage expected to take about 45 days, according to the ministry.

The voyage follows that of the Chinese container ship "Dubai Tower", which left the eastern port city of Ningbo for Europe this month, heading north through the Bering Strait before turning west along Russia's Arctic coast.

The usual maritime route between Asia and Europe runs through the Suez Canal, but travelling through the Arctic can cut the journey by around 7,000 kilometers (4,300 miles) and about 10 days, according to the Korea Institute for International Economic Policy.

South Korea's Vice Oceans Minister Nam Jae-hon said the Arctic route was "bound to become an alternative" to Middle Eastern shipping lanes -- as geopolitical risks and technological advances make it increasingly competitive.

Marc Lanteigne, a political science professor at the Arctic University of Norway, said the voyage -- coming soon after China's "Dubai Tower" began its own Arctic journey -- showed the Northern Sea Route (NSR) was becoming normalized as a "secondary maritime transit corridor".

A successful voyage would demonstrate South Korea's interest in "developing alternative shipping sea lanes", he told AFP, with concerns that it could fall behind as Chinese firms expand regular services through the increasingly viable Arctic route.

Some experts warn South Korean ships using the Arctic route could risk breaching Western sanctions on Russia -- currently a key security ally of North Korea -- as they would receive Russian navigation and weather services involving payments, albeit small ones.

South Korea's foreign ministry declined to comment when asked by AFP about the concerns involving Russia.

The oceans ministry said this week that "consultations with key relevant countries and agencies" have been completed to "implement administrative procedures necessary" for the voyage.

Vladimir Tikhonov, Korean Studies professor at the University of Oslo, said "strictly speaking, US and EU sanctions are not international law, unlike UN sanctions".

"And with continued uncertainty in the Middle East... South Korea may have few alternatives if the Arctic route proves economically viable," he told AFP.

Lanteigne said China's Northern Sea Route ambitions were more politically driven than South Korea's, with Beijing viewing the polar regions as "strategic new frontiers", raising Western security concerns.

Meanwhile, environmental groups warned growing traffic along the shorter NSR could accelerate Arctic sea ice loss already driven by global warming.

Major carriers including CMA CGM, MSC and Hapag-Lloyd have pledged to avoid Arctic shipping routes.

The NSR is believed to be accessible only during the time of year when the ice is melted enough to allow transits without icebreakers.

"The Northern Sea Route has become increasingly viable as the Arctic warms about four times faster than the global average, leading to a sharp decline in sea ice," South Korean environmental group Paran Ocean Citizen Science Center said in a statement last year.

"But making the route commercially viable would require further warming, putting the policy at odds with efforts to combat climate change."

Business

Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)

17:09-22 August 2026 AD ـ 09 Rabi’ Al-Awwal 1448 AH

Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)

Canada's Prime Minister Mark Carney said on Saturday that starting September 8 Canada would impose tariffs on imports from the United States across a raft of sectors in retaliation for President Donald Trump's new 50% tariffs that came into effect from midnight.

After days of intense negotiations, the two countries failed to reach a ‌trade deal late ‌Friday, worsening an already ‌delicate relationship ⁠between the two ⁠long-term trade partners and allies and complicating the future of a highly successful continental free trade pact called the US-Mexico-Canada agreement.

Trump's new tariffs hit a slew of sectors including furniture, dairy products, cement, clothing, fishing ⁠rods, hockey equipment and cover some $20 billion ‌of Canadian exports south ‌of the border.

These duties do not ‌give exemption to Canadian products under the USMCA, ‌which have shielded most of Canadian exports to the USin the last 18 months.

"Canada will match Washington’s new tariffs dollar for dollar ‌in order to protect Canadian workers, farmers, families, and businesses," Carney said at ⁠a ⁠news conference.

These retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics and will also include products currently subject to the unjustified Section 232 and 338 tariffs, Carney said in a spirited speech from the Parliament building in Ottawa.

"We cannot accept what they have offered, and we will not give what they have asked," Carney said.

Business

Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)

08:01-22 August 2026 AD ـ 09 Rabi’ Al-Awwal 1448 AH

Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)

Brazilian President Luiz Inacio Lula da Silva urged US counterpart Donald Trump in a phone call Friday to resolve their countries' trade dispute, saying US tariffs were imposed on "baseless" grounds.

Washington imposed two new sets of tariffs on the Latin American giant in July, a move that has become a key campaign issue ahead of Brazil's presidential election in October.

Lula -- seeking a fourth and final term -- told Trump that the tariffs "negatively affect both Brazil and the United States," according to a statement from his office.

"To remain at the negotiating table is the best option for both countries," he said.

Relations between Trump and the leftist Lula have blown hot and cold in recent months, but diplomatic tensions have flared as the election approaches.

Trump has backed several victorious right-wing candidates in recent Latin American elections. He is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio is Lula's main election rival.

The Brazilian presidency statement said the conversation between Trump and Lula lasted an hour and 20 minutes and "took place in a friendly and cordial tone."

During a campaign event in the southeastern state of Minas Gerais, Lula said Trump asked Commerce Secretary Howard Lutnick to contact his Brazilian counterpart Marcio Elias Rosa "and they already scheduled a meeting."

He added that Trump acknowledged during their call that the tariffs on Brazil are "based on a lie."

Lula, who like Trump is 80, has made national sovereignty a key theme of his campaign.

In an interview last week, he warned Trump: "Don't meddle in Brazil's affairs, especially regarding the election. If you do meddle, you'll lose."

"I said, 'Hey Trump, if you want to fight organized crime, let's fight organized crime,'" Lula told the crowd in Minas Gerais. "We want to work together. What we don't want is interference in Brazil."

- 'Daily terror'-

The two leaders have often appeared to get on well one-on-one, with Trump last year hailing an "excellent chemistry" with Lula.

The US last year dropped punitive tariffs it imposed over the trial against Jair Bolsonaro, which Trump labelled a "witch hunt," after diplomatic efforts by Lula's government.

However, Lula then suffered a blow after a May visit to the White House by Flavio Bolsonaro.

Two days later, the US designated Brazil's two largest drug cartels as terrorist organizations, which Flavio has said was a personal request.

"These criminal groups inflict daily terror on the most vulnerable populations, but they are not the same as terrorist organizations," Lula told Trump.

Security is the main concern of Brazilians heading into this year's elections, polls have shown.

Flavio Bolsonaro is pushing for a tough-on-crime model like that of El Salvador's President Nayib Bukele, whose sweeping crackdown on gangs and mass detentions have drawn controversy.

- Deforestation and PIX -

The United States imposed a 25-percent tariff on a range of Brazilian goods over policies it argued harm US commerce, such as deforestation and a free electronic payments system known as PIX.

Brazilian data shows deforestation in the Amazon fell last year to its lowest point since 2016.

Brazil was also impacted under a separate global tariff regime against US trading partners accused of using forced labor.

Lula has repeatedly said he believes it was US Secretary of State Marco Rubio and not Trump who was behind the tariffs against Brazil.

"Trump is the best of the lot, and the one who talks most seriously with me," he said last week.

Study Highlights Importance of Raising Savings Rate in Saudi Arabia to Support Economic Growth

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