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Saudi Arabia, Belgium, Luxembourg Establish Business Council

The meeting of the Arab-Belgian-Luxembourg Chamber (Asharq Al-Awsat)
The meeting of the Arab-Belgian-Luxembourg Chamber (Asharq Al-Awsat)
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Saudi Arabia, Belgium, Luxembourg Establish Business Council

The meeting of the Arab-Belgian-Luxembourg Chamber (Asharq Al-Awsat)
The meeting of the Arab-Belgian-Luxembourg Chamber (Asharq Al-Awsat)

The Federation of Saudi Chambers and the Arab-Belgian-Luxembourg Chamber of Commerce signed a memorandum of understanding (MoU) to establish the Saudi-Belgian-Luxembourg Business Council to promote and expand intra-regional trade and boost investment cooperation between the three countries.

Deputy Ambassador of Belgium to Riyadh, Elisa de Raes, explained that the Belgian business sector, with about 90 Belgian and Luxembourgish companies in six main sectors, targets investment opportunities and commercial partnerships.

She stated that Belgian companies have the experience, knowledge, and technology necessary to enter into projects in the Kingdom.

The council, which was announced during the Saudi-Belgian-Luxembourgian Business Forum in Riyadh, carries out commercial and promotional activities in the fields of trade, investment, and technology transfer systematically, with a focus on the targeted sectors.

It also provides Saudi, Belgian, and Luxembourgian businesspeople with a platform to present themselves, promote their businesses, and build commercial relationships.

Secretary-General of the Federation of Saudi Chambers Tariq al-Haidari explained that the coronavirus pandemic significantly impacted the intra-regional trade volume in 2020 to about $4.5 billion, compared to $7.2 billion in 2019.

Haidari indicated that the volume of trade exchange during the fourth quarter of 2021 increased by 54 percent to reach $1.7 billion, compared to the same quarter of the previous year.

He underscored the strength of the Saudi economy, noting that the real GDP increased 3.3 percent in 2021, compared to a 4.1 percent decrease in 2020.

The increase resulted in the economy recovering from the pandemic through the growth of non-oil activities by 6.6 percent, government services activities by 1.5 percent, and oil activities by 0.2 percent.

Arab-Belgian Chamber of Commerce Secretary-General Caesar Hijazin said the Belgian-Luxembourg trade mission is the largest and first after the pandemic, as it includes many companies.

He indicated that the Saudi economy is among the G20 countries and the largest in the Middle East, which provides Belgian and Luxembourgian investors with significant investment and export opportunities.

Advisor on International Affairs at the Luxembourg Chamber of Commerce Edith Stein highlighted the positive changes in the Kingdom on all levels, especially the economy.

Stein expressed Luxembourgian companies' interest in entering the Saudi market, exploring investment opportunities, and sharing their experiences in various sectors.

She expected the forum to contribute to paving the way for future cooperation and building new partnerships, calling on Saudi investors to visit Luxembourg and see available investment opportunities.

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FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.