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Saudi Arabia, Uzbekistan Sign 13 Deals Worth $12 Bn

Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
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Saudi Arabia, Uzbekistan Sign 13 Deals Worth $12 Bn

Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)
Officials during the signing ceremony of the agreements signed between Saudi Arabia and Uzbekistan (Asharq Al-Awsat)

Saudi Arabia and Uzbekistan signed 13 agreements worth $12 billion, on the sidelines of the visit of Uzbek President Shavkat Mirziyoyev to Saudi Arabia, at the invitation of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.

The deals were signed on Wednesday between the Saudi and Uzbek private sectors during the Saudi-Uzbek Business Council meeting.

Saudi Minister of Investment Khalid al-Falih and Deputy Prime Minister and Minister of Investment and Foreign Trade of Uzbekistan Jamshid Khojayev attended the signing ceremony.

The agreements come within the framework of strengthening efforts between the two countries, promoting investments, and increasing joint projects between Saudi and Uzbek companies.

The agreements included investment activities in various strategic sectors such as health, energy, aviation, tourism, pharmaceuticals, construction, food, and technology.

The signed agreements aim to explore investment opportunities, advance the partnership between the Saudi and Uzbek private sectors, encourage and enhance mutual investments in targeted sectors, expand the strategic partnership, develop investment, and exchange data on available investment opportunities.

Falih said the partnership with Uzbekistan is vital for both countries, saying Tashkent is witnessing distinct development in Asia.

Trade exchange between the two countries reached good levels during the past years, said Falih, adding that Saudi Arabia looks forward to strengthening it through the current agreements and partnerships.

Saudi Arabia and Uzbekistan have strong economic and trade relations.

The Kingdom was one of the first countries to recognize the independence of Uzbekistan. They signed a memorandum of understanding in December 1991, and in February 1992, they agreed on an exchange of diplomatic missions.

A few months ago, Falih sponsored laying the foundation stone for the Syrdarya power plant. He also launched several projects of ACWA Power to establish a combined-cycle gas turbine power plant in Shirin.

ACWA Power is the only Saudi company investing in Uzbekistan, amounting to $2.6 billion.

ACWA Power has implemented or participated in the implementation of four energy generation projects, both renewable and conventional, with a 20 percent capacity of the country's total production.

The value of trade exchange between Saudi Arabia and Uzbekistan amounted to $16.6 million in 2021.

Saudi exports amounted to $1.6 million, compared to imports worth $15 million, thus tilting the trade balance in favor of Uzbekistan by $13 million.

The volume of Saudi non-oil exports to Uzbekistan in 2021 is about $16 million, while non-oil imports amounted to $14 million.

Petrochemicals are among the Kingdom's most important exports to Uzbekistan, while food products are the highest Uzbek imports to Saudi markets.

In 2022, Uzbekistan presented Saudi Arabia with its proposals for developing bilateral relations, focusing on the economic aspect, increasing the volume of trade exchange to $100 million this year and reaching $400 million in 2024.

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Business

UK Economy Unexpectedly Shrinks in October

People exit the London Underground station at Bank, outside the Bank of England (L) and the Royal Exchange building (back R) in central London on December 12, 2025. (Photo by HENRY NICHOLLS / AFP)
People exit the London Underground station at Bank, outside the Bank of England (L) and the Royal Exchange building (back R) in central London on December 12, 2025. (Photo by HENRY NICHOLLS / AFP)
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UK Economy Unexpectedly Shrinks in October

People exit the London Underground station at Bank, outside the Bank of England (L) and the Royal Exchange building (back R) in central London on December 12, 2025. (Photo by HENRY NICHOLLS / AFP)
People exit the London Underground station at Bank, outside the Bank of England (L) and the Royal Exchange building (back R) in central London on December 12, 2025. (Photo by HENRY NICHOLLS / AFP)

Britain's economy unexpectedly contracted again in October, official data showed Friday, dealing a blow to the Labour government's hopes of reviving economic growth.

Gross domestic product fell 0.1 percent in October following a contraction of 0.1 percent in September, the Office for National Statistics said in a statement.

Analysts had forecast growth of 0.1 percent.

Manufacturing rebounded in the month as carmaker Jaguar Land Rover resumed operations after a cyberattack that had weighed on the UK economy in September, AFP reported.

But analysts noted that businesses and consumers reined in spending ahead of Britain's highly-expected annual budget.

"Business and consumers were braced for tax hikes and the endless speculation and leaks have once again put a brake on the UK economy," said Lindsay James, investment manager at Quilter.

Prime Minister Keir Starmer's Labour party raised taxes in last month's budget to slash state debt and fund public services.

At the same time, Britain's economic growth was downgraded from next year until the end of 2029, according to data released alongside the budget.

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 November with fresh hikes, this time hitting workers.
Analysts said that Friday's data strengthened expectations that the Bank of England would cut interest rates next week.

Business

Gold Hits Seven-week High on Safe-haven Demand; Silver Notches Peak

FILE PHOTO: A goldsmith works on a gold necklace at a workshop in Ahmedabad, India, October 8, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith works on a gold necklace at a workshop in Ahmedabad, India, October 8, 2025. REUTERS/Amit Dave/File Photo
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Gold Hits Seven-week High on Safe-haven Demand; Silver Notches Peak

FILE PHOTO: A goldsmith works on a gold necklace at a workshop in Ahmedabad, India, October 8, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith works on a gold necklace at a workshop in Ahmedabad, India, October 8, 2025. REUTERS/Amit Dave/File Photo

Gold prices rose to a seven-week high on Friday, bolstered by a soft dollar, expectations of interest rate cuts and safe-haven demand prompted by geopolitical turbulence, while silver hit a record high.

Spot gold rose 0.7% to $4,311.73 per ounce by 0945 GMT, its highest level since October 21, and set for a 2.7% weekly gain, Reuters reported.

US gold futures gained 0.7% to $4,343.50.

The dollar hovered near a two-month low, and was on track for a third straight weekly drop, making bullion more affordable for overseas buyers.

Additionally, "the sharp rise in US weekly jobless claims as well as US-Venezuela tensions are underpinning gold and keeping haven demand strong," said Zain Vawda, analyst at MarketPulse by OANDA.

US jobless claims rose by the most in nearly 4-1/2 years last week, reversing the sharp drop seen in the previous week.

The US Federal Reserve trimmed rates by 25 basis points for the third time this year on Wednesday, but indicated caution on additional cuts.

Investors are currently pricing in two rate cuts next year, and next week's US non-farm payrolls report could provide further clues on the Fed's future policy path.

Non-yielding assets such as gold tend to benefit in low-interest-rate environment.

On the geopolitical front, the US is preparing to intercept more ships transporting Venezuelan oil following the seizure of a tanker this week.

Meanwhile, India saw widening gold discounts this week as demand remained subdued despite the wedding season, while high spot prices also dented demand in China.

Spot silver rose 0.5% to $63.87 per ounce, after hitting a new record high of $64.32/oz, and is headed for a 9.5% weekly gain.

Prices have more than doubled this year, supported by strong industrial demand, dwindling inventories and its inclusion on the US critical minerals list.

"Silver is supported by industrial demand amid fears of shortages, a continued tight market, and the speculative frenzy, mostly from retail investors which has helped drive inflows to Silver ETFs," said Ole Hansen, head of commodity strategy at Saxo Bank.

Elsewhere, platinum was up 0.8% at $1,708.11, while palladium climbed 2.2% to $1,516.95. Both were headed for a weekly rise.

Business

IATA: Middle East Will Lead the World in Airline Profitability in 2026

International Air Transport Association (IATA) flags
International Air Transport Association (IATA) flags
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IATA: Middle East Will Lead the World in Airline Profitability in 2026

International Air Transport Association (IATA) flags
International Air Transport Association (IATA) flags

The International Air Transport Association (IATA) has said the Middle East will lead the world in airline profitability next year.

According to its outlook for the region as part of its 2026 global industry forecast, which it released on Thursday, Middle East carriers are expected to deliver the highest net profit margin globally (9.3%) and the highest profit per passenger ($28.6)—well above the global averages of 3.9% and $7.9 respectively.

“The Middle East’s position as the most profitable region in 2026, in terms of profit margin and profit per passenger, underscores the benefits of strategic investment, supportive policy frameworks, and the region’s role as a global connecting hub,” IATA Regional Vice President, Africa and Middle East Kamil Al-Awadhi said.

“But this success is far from uniform. Several carriers continue to face severe financial pressure due to geopolitical instability, blocked funds, and uneven infrastructure development,” he added.

According to IATA, Middle East airlines are forecast to generate $6.9 billion in net profit in 2026, reflecting the region’s strong fundamentals, including robust long-haul traffic, expanding hub capacity, and continued investment in infrastructure.

By comparison, global industry net profit is projected to reach $41 billion, with a total of 5.2 billion passengers expected to travel worldwide.

Cargo demand is expected to grow 2.6% globally, with Middle East cargo volumes remaining stable.

The regional passenger market is forecast to reach 240 million passengers in 2026, supported by an expected 6.1% growth rate, outpacing the global average of 4.9%.

Despite positive performance, the region faces several structural challenges:

Blocked Funds: Of the $1.2 billion in airline funds blocked globally as of October 2025, 43% ($515 million) is held in the Middle East and North Africa (MENA). Algeria now represents the largest share of blocked funds, driven by new approval requirements that have added administrative delays. Lebanon’s blocked funds remain static, representing legacy balances from 2019–2021.

Geopolitical Instability: Conflicts in Yemen, Syria, Iraq, and Lebanon continue to restrict airspace and disrupt operations. Airlines face longer routings around closed or restricted airspace, increasing fuel burn, emissions, and flight times.

Economic Disparities: Gulf Cooperation Council (GCC) states have made significant progress in building world-class aviation systems. In contrast, lower-income countries such as Yemen, Lebanon, and Syria face outdated infrastructure, under-resourced aviation authorities, and limited investment capacity.

IATA underscored the importance of greater cooperation to unlock aviation’s full potential in the Middle East. Key priorities include:

Advancing toward a more integrated air transport market to improve connectivity and reduce market fragmentation.

Ensuring fair and proportionate consumer protection by aligning national regulations with ICAO principles and global best practices.

Supporting states emerging from sanctions to safely reintegrate into the global aviation system, including access to aircraft, financing, and international standards.

“Greater regional coordination is essential for the Middle East to realize its full aviation potential. An integrated air transport market, fair consumer protection rules, and clearing blocked funds will strengthen connectivity and efficiency across the region,” said Al-Awadhi.