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Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
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Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)

Saudi Arabia and Greece have revealed a strategic partnership between the private sectors in the two countries to work on a cable project that will ensure the smooth digital supply of data worldwide at a time when data traffic is growing by more than 30 percent.

The partnership was announced during the official visit of Crown Prince Mohammad bin Salman to Greece on Wednesday to hold and expand partnerships between the two countries in several fields.

The partnership comes through the leadership of the Saudi Telecom Company (STC) in the East to Med Data Corridor (EMC) project in collaboration with the Greek Telecom Company, the Greek General Energy Company, and the Cyprus Telecom Company.

The agreements will boost the Kingdom's position as a regional digital hub in line with Vision 2030, as Greece is the eastern data gateway to the European Union.

The project aims to position the two countries as an eastern digital station for Europe to reach the Middle East, Africa, and Asia, and the submarine cable comes as part of Greece's strategic digital transformation plan.

It is also part of the Kingdom's ambitions to consolidate its position as a digital hub center at the regional and global levels by taking advantage of its advanced digital infrastructure, its developed cadres and institutions, and geographical location, which allows it to become an international digital hub center by linking East and West.

The project, if completed, will contribute to accelerating the growth of the global digital economy, which is estimated to reach $15 trillion, and supporting new industries and emerging markets based on innovative business models.

Notably, the geographical position of the Kingdom and its many ports have already qualified it to be a center of attraction for the digital economy and investment, as about ten percent of the global capacities of submarine cables pass through the Saudi territory.

Meanwhile, STC Group announced that Mena Hub, a premier digital hub, partnered with Greek telco TSSA to build the EMC undersea and land fiber optic data cable to link Europe with Asia.

The new project demonstrates STC's goal to provide ever-increasing global connectivity and data center capacity to the markets of Asia, Europe, and the rest of the world through Saudi Arabia, which sits at the geographic heart of these key economies.

With increasing digital connectivity comes the need to protect businesses and companies. Sirar, STC's cybersecurity arm, handles and addresses the current and future requirements as they arise.

STC Group CEO Olayan al- Wetaid noted that this vital signing represents another validation of the execution of the DARE2.0 strategy as "we build out our complete digital ecosystem at expanding scope, increasing scale and accelerating pace."

"We are pleased to be building our integrated system even further for the benefit of our clients and customers, as we look to further establish our digital credentials and contribute to Vision 2030 and become a leading digital company and regional digital hub linking three continents,” Wetaid said.

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Business

Egypt Says Close to Issuing $500 Million Japan Samurai Bond

A minibus moves along a main road underneath new Cairo Monorail track as a train moves above in the Fifth Settlement, a neighborhood of the New Cairo suburb of Cairo, on May 22, 2026. (Photo by Khaled DESOUKI / AFP)
A minibus moves along a main road underneath new Cairo Monorail track as a train moves above in the Fifth Settlement, a neighborhood of the New Cairo suburb of Cairo, on May 22, 2026. (Photo by Khaled DESOUKI / AFP)
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Egypt Says Close to Issuing $500 Million Japan Samurai Bond

A minibus moves along a main road underneath new Cairo Monorail track as a train moves above in the Fifth Settlement, a neighborhood of the New Cairo suburb of Cairo, on May 22, 2026. (Photo by Khaled DESOUKI / AFP)
A minibus moves along a main road underneath new Cairo Monorail track as a train moves above in the Fifth Settlement, a neighborhood of the New Cairo suburb of Cairo, on May 22, 2026. (Photo by Khaled DESOUKI / AFP)

Egypt is finalizing plans for its first yen-denominated bond sale in three years, Foreign Minister Badr Abdelatty told Reuters on a trip to Japan on Thursday.

The African Development Bank said in December it would partially guarantee Cairo's planned $500 million-equivalent Samurai bonds on the Japanese markets this year.

"We are completing the final ⁠steps," Abdelatty said ⁠on the sidelines of an event in Tokyo, adding that he had been promoting the sale and other investment opportunities while in Japan.

"We had extensive discussions ⁠with our Japanese friends on monetary, fiscal, financial support, especially with regard to budget support and samurai bonds as well."

Egypt's economy has been boosted in recent years by major real estate investments and an $8 billion IMF loan, though the Iran war is piling pressure ⁠on ⁠its finances.

The bond sale would be Egypt's third in the currency, following issuances in 2022 and 2023.

"It will be very important, despite the fact that we've been hit hard with implications of the (Iran) war," Abdelatty said.

Business

Oil Falls as Lebanon and Israel Agree on a Ceasefire

FILE PHOTO: A drone view shows an offshore oil platform in Guanabara Bay in Niteroi, Rio de Janeiro state, Brazil, March 18, 2026. REUTERS/Pilar Olivares/File Photo
FILE PHOTO: A drone view shows an offshore oil platform in Guanabara Bay in Niteroi, Rio de Janeiro state, Brazil, March 18, 2026. REUTERS/Pilar Olivares/File Photo
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Oil Falls as Lebanon and Israel Agree on a Ceasefire

FILE PHOTO: A drone view shows an offshore oil platform in Guanabara Bay in Niteroi, Rio de Janeiro state, Brazil, March 18, 2026. REUTERS/Pilar Olivares/File Photo
FILE PHOTO: A drone view shows an offshore oil platform in Guanabara Bay in Niteroi, Rio de Janeiro state, Brazil, March 18, 2026. REUTERS/Pilar Olivares/File Photo

Oil prices fell on Thursday as a ceasefire deal between Israel and Lebanon boosted hopes for a broader agreement to end the US-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz.

Brent futures were down 87 cents, or 0.89%, at $96.92 a barrel by 0458 GMT, while US West Texas Intermediate crude fell 78 cents, or 0.81%, to $95.24, paring gains from earlier in the week, said Reuters.

Both Brent and WTI rose about 2% on Wednesday after renewed Middle East hostilities including Iranian attacks on Kuwait ‌and US military strikes ‌near the Strait of Hormuz.

Israel and Lebanon ‌said ⁠late on Wednesday ⁠they had agreed to implement a ceasefire, raising hopes for a deal between Washington and Tehran, which has conditioned any agreement in part on an end to fighting between Israel and Lebanon.

US President Donald Trump suggested on Wednesday that there could be progress in negotiations with Iran as soon as this weekend.

Iranian Foreign Minister Abbas Araghchi on Wednesday said Tehran's ⁠contacts with Washington have not been cut ‌off, but no progress has been made ‌in the negotiations, adding both sides were studying the texts that were exchanged.

In ‌the US, the Republican-led House approved a resolution on Wednesday to ‌block Trump from continuing the war against Iran. To take effect, the resolution would need Senate approval and two-thirds majorities in both chambers to override an almost certain Trump veto.

Meanwhile, US crude stockpiles fell by 8 million barrels to ‌433.7 million barrels in the week ended May 29, the Energy Information Administration said on Wednesday. ⁠That was a ⁠much bigger drop than the 4-million-barrel draw analysts had expected in a Reuters poll.

The International Energy Agency warned on Tuesday that global oil inventories could hit critical levels ahead of peak summer demand if stock draws continue at their current pace, despite Chinese crude imports falling by 6 million barrels a day in May compared to March.

“Inventories have provided a cushion for the oil market. However, even if we see an imminent restart of oil flows through the Strait of Hormuz, the recovery will be slow and gradual,” a note from ING said.

“This suggests inventories are likely to continue to tighten into the third quarter, leaving upside risk to prices.”

Business

IMF Praises Saudi Economy’s Resilience

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)
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IMF Praises Saudi Economy’s Resilience

The Saudi capital, Riyadh (Reuters)
The Saudi capital, Riyadh (Reuters)

The International Monetary Fund (IMF) affirmed that the Saudi economy has demonstrated high resilience in the face of regional geopolitical tensions that have obstructed navigation in the Strait of Hormuz.

The Fund praised the Kingdom's ability to contain the fallout from the navigation disruption through a swift logistical response, which involved redirecting oil shipments towards the East-West pipeline and Red Sea ports, leveraging the legacy of its Vision 2030 structural reforms.

“The Saudi economy is demonstrating agility and resilience, supported by robust and diversified infrastructure and the authorities’ concerted efforts to redirect shipments and ease logistical bottlenecks,” mission head Azim Sadikov said on Wednesday in the IMF's latest Article IV mission report following a visit to the Kingdom from April 28 to May 13.

“A prompt rerouting of oil through the East-West pipeline and Red Sea ports, combined with Aramco’s overseas inventories, has helped limit the drop in oil deliveries," it said.

"Saudi Arabia's strong fundamentals—low government debt, ample reserves, and a large sovereign wealth fund—provide important buffers,” the report added.

“Assuming maritime shipments through the Strait of Hormuz normalize in the coming months, a recovery could take hold, with growth this year notably lower but holding up at about 2 percent. Non-oil activity would be supported by domestic demand, underpinned by stable public employment, government spending, and the steady execution of private and public capital projects. Average inflation is projected to increase to about 2.3 percent as higher shipping and insurance costs add upward pressure on prices. Higher oil prices are expected to offset volume losses, generating a windfall that would reduce the current account and fiscal deficits in 2026.”

In its April 2026 World Economic Outlook, the IMF projected Saudi Arabia’s real GDP growth at 3.1% for 2026, 1.4 percentage points lower than a January estimate. It had said that the Kingdom was expected to be less severely affected by the war.

In the Outlook, the IMF also upgraded Saudi Arabia's 2027 GDP growth forecast to 4.5%, a 0.9% increase from previous projections. This upward revision reflected anticipated normalizations in energy output and logistics.

In Wednesday’s report, the IMF said given the Saudi economy’s resilience, “the mission considers that a modest reduction in the non-oil primary deficit in 2026 remains appropriate, with spending reprioritization as the first line of action to accommodate any fiscal response to the conflict.”

The report lauded Saudi Arabia's strong fundamentals—low government debt, ample reserves, and a large sovereign wealth fund— that provide important buffers.

It said that should the shock prove more prolonged, Saudi Arabia has the space to loosen the fiscal stance to cushion the economy, with support to affected businesses and households that should be temporary, targeted, and transparent.

As the economy normalizes, an ambitious medium-term fiscal consolidation anchored on non-oil revenue mobilization and spending rationalization is needed, it said.

On the banking sector, the IMF said: “The peg to the US dollar provides a credible monetary policy anchor and helps underpin financial stability, particularly in the current environment of heightened uncertainty.”

“The banking sector is well-positioned to weather the shock, supported by strong capital and liquidity buffers,” it added.

The mission welcomed the efforts of the Saudi Central Bank (SAMA) to step up the monitoring of liquidity, credit conditions, and asset quality. It also supported “SAMA's decision to proceed with the implementation of the 100 basis points countercyclical capital buffer, its proactive approach to containing risks from FX borrowing, and continued progress in strengthening its resolution and emergency liquidity assistance frameworks.”

The report added: “Ten years since its launch, Vision 2030 reforms have helped strengthen institutions and improve policymaking, boosting economic performance and reducing dependence on oil.”

“Sustaining the reform momentum to remove remaining impediments to diversification and to expand the role of the private sector will be key to maintaining strong growth prospects for the medium term,” it said.

In this regard, the IMF lauded PIF's recalibrated 2026–30 strategy, with its shift toward more selective capital allocation and greater private-sector crowding-in.

The report called for “improving the business environment, deepening capital markets, supporting small and medium enterprises, aligning education with labor market needs, strengthening governance, and scaling AI adoption while mitigating associated risks.”