Saudi Arabia Seeks Promising Local Content Opportunities

Session at the Local Content Forum in Riyadh (Asharq Al-Awsat)
Session at the Local Content Forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Seeks Promising Local Content Opportunities

Session at the Local Content Forum in Riyadh (Asharq Al-Awsat)
Session at the Local Content Forum in Riyadh (Asharq Al-Awsat)

Saudi Arabia is pushing towards activating local content in the national industry, specifically in promising sectors.

The Minister of Industry and Mineral Resources, Bandar Ibrahim AlKhorayef, met Tuesday with 20 prominent local and international companies to discuss promising local content opportunities and cooperation between the firms and Government Procurement Authority.

The meeting also addressed the role of the private sector in directing its spending toward local content and the companies' efforts in developing content in several key industries.

Procurement Tools

AlKhorayef stressed that local content has several tools in government procurement that push demand toward local manufacturers and suppliers and help the private sector seize promising investment opportunities.

He noted that industry localization and knowledge transfer pave the way for investors to localize new products.

The Kingdom has promising opportunities to maximize interest by taking advantage of the purchasing power of state-owned companies, especially after the Cabinet decided to compel these companies to prioritize local content.

Content Preference

During the meeting, Khorayef called on the private sector to be equally responsible by prioritizing local content and products in its purchases and projects, identifying localization opportunities in its supply chains, and presenting them to small and medium enterprises (SMEs).

Promising sectors

In a panel entitled "Promising Sectors and Opportunities," the Local Content Forum discussed the role of entrepreneurs in developing local content, products, and services and the importance of research and innovation in enabling local content opportunities.

The executive vice president of operations at the Local Content and Government Procurement Authority Mohammad al-Qahtani and Executive Vice President for Studies at the Industrial Development Fund Ahmed al-Baqawi attended the session.

The session also included Deputy Governor for Entrepreneurship at the General Authority for Small and Medium Enterprises (Monshaat) Saud al-Sabhan and Supervisor of the Localization, Local Content, Risk Management Department at the Ministry of Energy Fouad Moussa.

The participants emphasized that local content highlights the promising sectors and opportunities for entrepreneurs in developing and providing investment opportunities.

Qahtani explained that the Authority is working on several strategic and vital sectors full of promising opportunities to develop local content.

Purchasing power

Qahtani indicated that the Authority targets opportunities to develop local content in several sectors and directs the government's purchasing power toward local content.

The Authority developed many mechanisms and legislation to seize opportunities, including one for government procurement, which compels contractors to deal with government agencies to provide national products from local factories.

He stated that since the activation of the mechanism, the Authority has launched several lists of over eight different sectors and more than 400 other products from national factories. The list continues to be developed and updated.

Small and medium enterprises

Meanwhile, Sabhan explained that SMEs constitute 99.3 percent of the manufacturing activity that contributes to localization.

He noted that local content in the government competition and procurement system directly supports and empowers SMEs, recalling that government purchases in Saudi Arabia increased 26.6 percent until the end of the third quarter of 2021, compared to 24.9 percent in 2019.

He explained that Monshaat launched a service to transform over 3,000 small and medium enterprises and had a role in increasing the local content.

Monshaat seeks to enhance the contribution of SMEs in local content by increasing the opportunities for their participation in the commercial franchise to expand their activities.

Entrepreneurs

Executive Vice President for Studies at the Industrial Development Fund Ahmed al-Baqawi stated that the Fund supports the client and the private sector to advance the Kingdom under Vision 2030.

Baqawi explained that young men and women at the Fund provide appropriate advice to the investor, pointing out that the Fund is a forum for all entrepreneurs in various fields.

Risk management

Meanwhile, Ministry of Energy official Fouad Moussa explained that the energy sector has a significant impact on the economy in the Kingdom.

Energy represents 45 percent of capital and operational spending and provides excellent opportunities for the products used in the energy, petroleum, gas, petrochemical, and electricity production sectors.

Moussa indicated that Saudi Arabia is heading to become the largest producer of hydrogen, which will become the future fuel.

He indicated that the Ministry had set new targets to localize the main products used directly in capital and operational spending and seeks to use available resources to serve the energy sector, ensuring it becomes parallel to other industries.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.