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Saudi Arabia Seeks to Promote 4th Industrial Revolution Technologies to Raise Productivity

The LEAP 2023 conference kicked off in Riyadh on Monday. (Asharq Al-Awsat)
The LEAP 2023 conference kicked off in Riyadh on Monday. (Asharq Al-Awsat)
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Saudi Arabia Seeks to Promote 4th Industrial Revolution Technologies to Raise Productivity

The LEAP 2023 conference kicked off in Riyadh on Monday. (Asharq Al-Awsat)
The LEAP 2023 conference kicked off in Riyadh on Monday. (Asharq Al-Awsat)

Saudi ministers have revealed the Kingdom’s determination to harness technology in diversifying the economy, with the launching of new investments and activating the full potential of the fourth industrial revolution technologies in various sectors.

Speaking during a session held on the first day of the LEAP 2023 conference in Riyadh, Saudi Minister of Investment Eng. Khaled Al-Falih said that innovation was the key to unleashing the full potential of the 4th industrial revolution technology, in order to meet the challenges and implement a sustainable economic transformation.

Al-Falih emphasized the importance of partnership between the public and private sectors, and the role of SMEs and start-ups as engines of innovation, as well as the contribution of women in science, technology, and knowledge and data exchange.

Saudi Arabia is determined to become a center for supply chains between the world’s continents, he said, by investing in its location and resources.

The minister added that the Kingdom also sought to employ the technologies of the Fourth Industrial Revolution and the uses of artificial intelligence, automation, robots and large-scale computing, in support of the various sectors.

For his part, Bandar Al-Khorayef, the Saudi Minister of Industry, said that the LEAP 2023 conference was a clear example of Saudi Arabia’s endeavor to attract the main players in technology and strengthen its position as a regional and international hub in various sectors.

Al-Khorayef noted that the private sector had a valuable opportunity to advance better in the field of advanced technologies.

“It takes us being brave enough to support the technological transformation; we have a privileged position and tremendous resources, in addition to the talent that is the most valuable asset,” he underlined.

Faisal Al-Ibrahim, the Saudi Minister of Economy and Planning, said that the current global challenges should not be dealt with unilaterally, but rather be looked at in a comprehensive manner.

According to the minister, increasing the efficiency of the industrial process to reduce costs and carbon emissions also requires strengthening partnerships and international cooperation, as well as harvesting the benefits of the fourth industrial revolution and investing in advanced digital technologies.

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Will Tariffs Accelerate Free Trade Deals?

Container cargo ships docked at Bangkok port (Reuters)
Container cargo ships docked at Bangkok port (Reuters)
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Will Tariffs Accelerate Free Trade Deals?

Container cargo ships docked at Bangkok port (Reuters)
Container cargo ships docked at Bangkok port (Reuters)

More than 70 countries are waiting for their turn to sit at the negotiating table with US officials, as they scramble to avoid a wave of new tariffs imposed by President Donald Trump’s administration under a policy the White House has described as a “global trade rebalancing.”

As diplomatic and trade delegations rush to arrange urgent meetings in Washington, key questions are emerging over what options these nations have in order to avert a trade escalation — and whether they can secure exemptions from the new duties.

As some countries consider leveraging trade pressure or economic alliances in response, analysts warn that what the US administration calls a “preventive trade war” could trigger sweeping changes in the structure of global commerce.

In the Gulf region, however, analysts believe the impact of Washington’s decisions remains limited. They say Gulf states have enough flexibility to reposition themselves and mitigate the fallout from the new US measures.

Saudi economist Dr. Ihsan A. Buhulaiga says it is too early to speak of a final framework for global trade flows, arguing that Trump’s tariff decisions appear more like negotiating tactics than irreversible policy shifts.

“These moves seem more like bargaining positions than fixed policies,” A. Buhulaiga told Asharq Al-Awsat.

“Many countries and blocs, including the European Union, are watching closely before reacting in ways that might provoke President Trump — as was the case with China.”

A. Buhulaiga said Trump’s tariff hikes have eroded trust between the United States and its key trading partners — China, Mexico, Canada, and the EU.

“Trump’s approach is focused on generating revenue for the US Treasury from imports, with little regard for the broader consequences,” he said.

“That stance has already triggered sharp volatility — not just in equity markets, but also in bonds, especially US government debt.”

While the impact of US tariffs on Gulf states is expected to be limited, economists say the ongoing trade war is unlikely to accelerate free trade agreements between the Gulf Cooperation Council (GCC) and major economic blocs.

“For Gulf countries, including the region’s two largest economies — Saudi Arabia and the UAE — the effect of US tariffs is minimal,” said A. Buhulaiga.

“But pursuing free trade agreements with other blocs now would be risky, especially if that includes China, given the current tensions between Beijing and Washington,” he added.

A. Buhulaiga noted that tariff increases are primarily aimed at China, and pointed out that efforts to strike trade deals between the GCC and other economic alliances have taken decades with little progress.

“There’s no sign on the horizon that any agreements will be signed soon,” he said.

Meanwhile, Saudi global trade expert Dr. Fawaz Alamy explained that when the World Trade Organization (WTO) was founded, member states agreed to divide countries seeking accession into three developmental tiers.

He said advanced economies — including the United States, Canada, the European Union, and Japan — committed to fully adopting WTO rules without exceptions.

Developing nations such as China, Türkiye, Saudi Arabia, and most Arab and Islamic countries were allowed limited exemptions, while least-developed countries, particularly in Africa, were granted broader leniency.

“To promote globalization, WTO members agreed to open their markets, lock in tariff rates at agreed levels, and avoid technical barriers to imports,” Alamy told Asharq Al-Awsat.