Greece Stresses Saudi Role in Balancing Oil Markets, Respects OPEC+ Decision

Greek Minister of Development and Investment Adonis Georgiadis said the diversification of energy sources was the European Union’s most important priority.

He noted that the world would never return to the previous situation, even if the Russian-Ukrainian war ended.

In this regard, Georgiadis stressed that all European countries would try to find many other sources of energy, to stop depending on Russian gas, revealing a plan to launch natural gas carriers to Europe through his country, in addition to the Azerbaijan pipeline.

In an interview with Asharq Al-Awsat on the sidelines of the Future Investment Initiative forum in Riyadh, the Greek minister said that Saudi Arabia, as part of the Group of Twenty, could play a major role in stabilizing the global economy.

He added that Greece respected the recent OPEC+ decision, saying it was imperative to work towards maintaining market balance.

“We have to find a way to avoid recession… A good partnership will achieve possible solutions to curb the recession, which will be very bad for Western societies, because it will hamper investments, reduce consumption and harm the economy,” he remarked.

Saudi-Greek cooperation

Georgiadis noted that trade exchange between Riyadh and Athens was close to 1.4 billion euros annually, excluding oil.

“Our main ambition is to reach at least 2 billion euros over the next three years, and we are working hard in this direction. This year, we established the Greek-Saudi Business Council, the first meeting of which will be held in Athens on Nov. 7-8,” he told Asharq Al-Awsat.

The Greek minister pointed to a number of bilateral agreements that were signed during the visit of Saudi Crown Prince Mohammed bin Salman to Greece in July, asserting that the two countries would reach their desired goals through these partnerships.

With regards to investments, Georgiadis said his country would present many investment opportunities, stressing that the Saudi-Greek Business Council has focused its efforts on diverse investments.

“We are certain that our cooperation with the Kingdom will serve Vision 2030,” he said. “It is a great vision for the Kingdom, and we want to participate in some of its vital achievements.”

The minister revealed that Greece would witness a record value of exports and tourism income, noting that the country was open for business and enjoyed many opportunities.

Future Investment Initiative

Regarding his participation in the Future Investment Initiative (FII) forum, he said: “First, I would like to say that I was very pleased to be in Saudi Arabia and to be among the participants in the main sessions of the conference… I believe that the Future Investment Initiative conference was a great success for Saudi Arabia, as it brought together people from all over the world… to exchange views on all important international and domestic issues.”

He continued: “Most importantly, it has set a great ground for promoting the new vision of Saudi Arabia, which has something to offer the world, so I would like to congratulate all the people who contributed to making this event a success.”

Georgiadis emphasized that Saudi Arabia was turning into a renewable energy producer at a very high speed, in the same way that Greece was becoming a major regional hub for energy and purification of environmental pollution, in addition to renewable energy and the distribution of liquefied and natural gas.

He pointed to the building of a data cable between Saudi Arabia and Greece, noting that negotiations were underway to sign a memorandum of understanding on energy and electricity cables between the two countries.

Energy scarcity challenges

Georgiadis touched on the ability of Europe in general and Greece in particular to overcome the challenges of energy and gas scarcity, saying: “Diversification of energy sources is now the most important priority in the European Union.”

“Even if the war stops tomorrow, we will never go back to the world we were in before the Russian-Ukrainian war,” he remarked.

He added: “All EU countries will try to find many other sources of energy, so that they do not have to depend on Russian sources. This will not happen again.”

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.

Greece Stresses Saudi Role in Balancing Oil Markets, Respects OPEC+ Decision