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Saudi Arabia Expands its Economic Capabilities to Space

A photo taken from the Riyadh Space Exhibition, which was held at the King Salman Science Park last month under the slogan “Man and Space”. (SPA)
A photo taken from the Riyadh Space Exhibition, which was held at the King Salman Science Park last month under the slogan “Man and Space”. (SPA)
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Saudi Arabia Expands its Economic Capabilities to Space

A photo taken from the Riyadh Space Exhibition, which was held at the King Salman Science Park last month under the slogan “Man and Space”. (SPA)
A photo taken from the Riyadh Space Exhibition, which was held at the King Salman Science Park last month under the slogan “Man and Space”. (SPA)

Saudi Arabia’s recent announcement that it was sending two Saudi astronauts to the International Space Station (ISS) has kicked off talks about the Kingdom’s serious endeavor to benefit from the space economy as a giant sector, where global visions of sustainability and technology intersect.

The astronauts will make their trip during the second quarter of 2023, in a first-of-its-kind move for the Kingdom.

Last year, the Saudi government decided to establish the Supreme Space Council in view of the strategic importance of the space sector, which represents the main engine to stimulate innovation and inspire future generations, according to a statement of the Communications, Space and Technology Commission (CSTC).

Saudi Minister of Communications and Information Technology Abdullah Alswaha said the efforts would focus on creating the space market and stimulating research and innovation, and then moving towards the stage of regulation and governance.

The authority will play a pivotal role in setting the adequate regulations, as well as coordinating and cooperating with space regulators at the global level and building relationships with industry stakeholders.

Capacity building

In September 2022, the Saudi Space Authority launched the Kingdom’s Astronaut Program, which aims to qualify experienced national cadres for long- and short-term space flights. The program also seeks to train Saudi astronauts to participate in scientific experiments, international research, and future space-related missions.

The program aims to take advantage of the promising opportunities offered by the space sector and its industries globally and to contribute to research to serve humanity in a number of priority areas, such as health, sustainability and space technology.

Last week, the Saudi Press Agency (SPA) reported that Saudi female and male astronauts Rayana Bernawi and Ali Al-Qarni will join the crew of the Axiom Mission 2 (or Ax-2), with the aim of building national capacities.

The space mission aims to empower capabilities of Saudi scientists in human spaceflight geared towards serving humanity and benefiting from the promising opportunities offered by the space industry.

SPA added that the journey would start from the United States to the ISS. The program includes two other astronauts Maryam Firdous and Ali Al-Ghamdi, who will be trained on all mission requirements, but not take part in the journey.

In 1985, Prince Sultan bin Salman bin Abdulaziz was the first Arab astronaut to participate in a space flight, which also launched from the United States.

NASA announcement

NASA announced that Bernawi and Al-Qarni will take off “in the spring of 2023” from the Kennedy Space Center in Florida, in the United States, on a private mission operated by Axiom Space.

The two Saudi astronauts will accompany Peggy Whitson and John Shoffner on the Ax-2 mission, a Crew Dragon flight set to launch no earlier than May 1, 2023, to the ISS.

Economic dimension

In previous remarks, Minister Alswaha emphasized the importance of the space sector as “the next trillion global economy”, saying that the establishment of Supreme Space Council was “an important step to stimulate innovation and inspire future generations for our beloved country.”

Observers have underscored the importance of the decision, which corresponds with the vision followed by Saudi Arabia in launching programs and projects that are compatible with its financial and human capabilities, to create complementary industries for this sector, and a specialized market in the world of space.

Space agreements

Saudi Arabia had earlier concluded many agreements and contracts, including the Artemis Accords with the NASA, to join the international coalition in the field of civil exploration and the use of the moon, Mars, comets and asteroids for peaceful purposes.

Government attention

Alswaha said the fact that Prince Mohammed bin Salman, Crown Prince and Prime Minister, was president of the Supreme Space Council was a clear message of the importance that the Kingdom places on the space sector.

The council will focus on three main axes: adopting policies and strategies for the sector’s programs, approving its annual plans and monitoring the implementation of its national strategy, and achieving compatibility with various sectors and national needs.

Saudi transformation

The decision to establish the Supreme Space Council came in line with the industrial and economic transformation in Saudi Arabia, based on the initial steps taken by the Saudi Space Authority since its establishment in 2018.

These moves have resulted in the conclusion of an agreement in mid-March with the British Space Agency for cooperation in the field of peaceful use of outer space, aimed at providing a framework for cooperation in space activities.

Saudi satellites

Between 2000 and 2019, the Kingdom launched 16 Saudi satellites into space under the supervision of the King Abdulaziz City for Science and Technology (KACST). The latest was the Saudi Communications Satellite (SGS1), which was launched on February 6, 2019, bearing the signature of Crown Prince Mohammed with the words, “Above the clouds.”

SGS1 works to serve the modern satellite communications sector, which includes broadband and secure military communications, as well as the provision of communications to semi-remote and stricken areas for use in various fields of sustainable development such as: applications (high-speed broadband communications, and secure communications for government agencies).

The satellite is operated and managed through advanced ground control stations in the Kingdom.

An international map

Dr. Faisal Al-Fadil, member of the Saudi Shura Council, said the decision to establish the Supreme Space Council is part of the moves taken by Saudi Arabia in all economic and social fields, which aim to place the Kingdom on the international map in science, economy and politics.

According to Al-Fadil, these three branches depend on two pillars: cadres and a clear strategy.

Twenty companies

The Saudi Space Authority is currently seeking to attract 20 emerging companies in the fields of space tourism, exploration, satellite communications and space photography.

The program will enable these companies to work and connect with world-class resources to enhance their chances of success, in partnership with Techstars, a global investment firm that provides access to capital, individual mentorship, a global network, and customized programming for early-stage entrepreneurs.

Space economy

According to Morgan Stanley’s 2018 report, the size of the space economy in the world is $360 billion. It is expected to reach $1.1 trillion in 2040 and $2.7 trillion by 2050.

The G20 countries account for the largest share, at about 92 percent.

The private sector

The private sector plays a pivotal role in the space industry. According to the latest statistics, the sector achieved huge revenues of $254 billion, through six main activities that included satellite communication services and applications by around 36 percent, chips and receivers for satellite navigation by 23 percent, as well as ground equipment and devices by 23 percent, and satellite manufacturing by 9 percent.

This is in addition to space applications and remote sensing, and services for launching vehicles and human space flights by about 5 percent for each activity.

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Business

China’s Factory Activity Shrinks in October, Third Contraction in Four Months

Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
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China’s Factory Activity Shrinks in October, Third Contraction in Four Months

Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)
Women shop for fashion accessories at a bazaar held in a popular shopping district in Beijing, Wednesday, Oct. 28, 2026. (AP)

China's factory activity dropped in October, its third contraction in four months, a government survey showed on Saturday, hurt by soft demand goods at home as well as signs of weakness in exports.

Economists called on the government to do more to support growth after the figures, which highlighted how exports, which have powered higher for much of this year, may not have sufficient strength to offset long-stagnant consumer spending.

"Insufficient demand is increasing downward pressure on the economy," said Zhang Liqun, an analyst with the ‌China Federation of ‌Logistics & Purchasing.

The official manufacturing purchasing managers' index (PMI) fell to 49.3 from ‌50.1 ⁠in September, according ⁠to data from the National Bureau of Statistics. That missed a forecast for 50.0 from a Reuters poll, though the first month of a quarter is typically the weakest.

China's trade surplus with the world is on track to top last year's $1.2 trillion due to strength in exports. But in October, factory activity weakened as overseas Christmas-related orders, which were front-loaded in September, cooled. It was also hurt when consumer spending, which climbed during China's long National Day holiday in the ⁠first week of October, fizzled out afterwards.

Sub-indexes for new orders overall ‌and for new export orders both stayed in contraction ‌territory in October. Production and purchasing activity also slipped into contraction from expansion.

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Zhang Zhiwei, ‌chief economist at Pinpoint Asset Management, said that if external demand weakens in 2027, "China ‌will need more significant policy support to boost domestic demand."

Lu Zhe, chief economist at Soochow Securities, called for expanding subsidies for mortgage interest payments "to shore up household confidence and anchor sentiment."

He added that extending subsidies for loan interest payments to investment projects would help alleviate the current shortage of viable fixed-asset ‌investments.

The non-manufacturing PMI, which covers services and construction, also dropped, to 49.7 from 50.2 in September.

The readings are compiled based on ⁠purchasing managers' reports about ⁠whether conditions improved, worsened or were unchanged in areas such as new orders, output and employment compared with the previous month. A reading above 50 signals expansion, while one below 50 indicates contraction.

Some sectors within manufacturing were doing well.

Production and new orders sub-indexes for railway, shipbuilding, aerospace equipment, and computer, communications and electronics manufacturing were all at or above 53.0, the survey showed.

AI-related firms in particular have reported strong earnings growth. Zhongji Innolight, a maker of high-speed optical modules that connect servers and switches in AI data centers, posted a near tripling in third-quarter net profit.

But the lackluster domestic market and rising costs have weighed on many old-school manufacturers and property-linked firms. Custom furniture maker Oppein Home, for example, saw net profit plunge 80% during the quarter.

China's economy is, however, expected to meet the country's 4.5-5.0% annual growth target without additional stimulus measures after third-quarter growth rebounded to 4.5% from 4.3% in April-June.

Business

15% Capital Requirement Complicates Restructuring of Lebanese Banks

A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
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15% Capital Requirement Complicates Restructuring of Lebanese Banks

A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)
A Lebanese delegation, led by Prime Minister Nawaf Salam, meets with IMF Managing Director Kristalina Georgieva in Washington in September. (X)

Talks that concluded in Paris on Thursday between Lebanon’s central bank, the Banking Control Commission and representatives of Lebanese banks revealed persistent differences over banking sector restructuring and the distribution of losses, as the International Monetary Fund (IMF) insists on a 15% capital adequacy ratio for banks seeking to remain operational, to be achieved within five to seven years.

According to information obtained by Asharq Al-Awsat, the meetings were hosted by Rothschild, the international adviser to Banque du Liban (BDL), in an effort to reconcile differing approaches to the provisions of the draft Financial Regularization and Deposit Recovery Law.

The discussions produced new proposals involving relatively minor changes in form but a more substantive approach to the draft law submitted by the government to Parliament late last year. The proposals are expected to influence subsequent stages of the legislative process.

However, efforts to bridge the differences were not matched by any shift in the IMF’s position. The Fund’s delegation reportedly maintained its firm stance on limiting the use of public funds and upholding the hierarchy of loss absorption, under which bank capital, shareholders and equity holders are first in line to bear losses.

Against this backdrop, the IMF has introduced an additional requirement, informing banking executives that operating banks must restructure their capital positions to achieve a 15% capital adequacy ratio as a key condition for remaining in business.

A source familiar with the matter told Asharq Al-Awsat that the Fund had stipulated a period of five to seven years from the start of restructuring to meet the requirement.

Although the proposed ratio is substantially higher than the requirements set under Basel III standards, the IMF argues that it is necessary for the banking sector, together with BDL as its regulator, to demonstrate a serious commitment to addressing the consequences of Lebanon’s unprecedented financial crisis.

The aim is to emerge from the crisis with a financial sector in the strongest possible position, paving the way for the restoration of international confidence.

Lebanese banks, however, face considerable difficulties persuading existing shareholders to inject such large amounts of private capital within a relatively short period.

Shareholders remain reluctant to commit fresh funds before negotiations produce a final agreement with the IMF, the government meets structural reform requirements in the public sector, a medium-term fiscal plan is adopted, and the outcome of Lebanon’s Eurobond restructuring becomes clear.

The Lebanese Central Bank building in Beirut. (AP)

What is required of banks?

An initial assessment by Asharq Al-Awsat indicates that meeting the IMF’s requirement would entail substantial cash injections and capital contributions or the attraction of new investors, a task that appears nearly impossible under current conditions.

Preliminary estimates suggest the funds required could amount to twice banks’ current capital, which has fallen sharply from levels exceeding $20 billion as a result of the Lebanese pound’s collapse.

The challenge comes as Lebanon and its economy face an exceptional contraction in investment inflows because of wars and the financial losses and heavy reconstruction costs they have left behind.

These burdens add to a financial gap that the government estimates at approximately $70 billion.

Insistence on this approach could undermine the banking sector’s prospects for recovery and its ability to contribute effectively to the broader economic rebound, given the difficulty most banks would face in injecting or attracting capital on such a scale.

Banking officials argue that the approach fails to account for the state’s role and responsibility in drawing financing from BDL’s balance sheet.

They also point out that a government decision to suspend repayment of all obligations on Lebanon’s Eurobonds deprived both commercial banks and the central bank of access to vital financial assets.

Meanwhile, a financial official noted that BDL’s handling of the consequences of the financial and monetary collapse, which have been concentrated heavily in the banking system, requires realism and a balance between two interconnected principles: ensuring a fair distribution of losses and avoiding the sacrifice of financial institutions.

This includes restructuring banks’ balance sheets and capital positions while enabling them to make the greatest possible contribution toward the gradual repayment of depositors’ claims, in accordance with the distribution mechanism established under existing central bank circulars.

Before the crises erupted, BDL imposed stringent solvency requirements on operating banks, with average ratios exceeding 15%.

Bank managements also voluntarily adhered strictly to international professional standards for assessing capital adequacy, enabling Lebanese banks to achieve leading regional positions in covering credit, market and operational risks.

Their risk management practices also included measuring and monitoring other exposures, such as interest rate risk in the banking book, credit concentration, liquidity and reputational risks.

Rothschild serves as BDL’s international adviser in negotiations concerning the financial sector, while Lazard performs the same role for Lebanon’s Finance Ministry.

Business

US Oil Companies Aim to Squeeze More Out of Refineries

ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
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US Oil Companies Aim to Squeeze More Out of Refineries

ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File
ExxonMobil said its refinery in Baytown, Texas is one of the plants being targeted to boost supply of petroleum products. Brandon Bell / GETTY IMAGES NORTH AMERICA/AFP/File

US oil companies are investing to squeeze out more fuel from refineries and bringing shuttered plants back online in response to conflicts in Russia and Iran that have crimped supplies.

ExxonMobil Chief Executive Darren Woods said Friday the company had achieved "record fuels utilization" outside of the Middle East, pointing to 100 percent crude utilization at US Gulf Coast refineries.

The statements come as US gasoline prices remain above the politically sensitive $4 per gallon level and as diesel prices linger near all-time highs above $6 per gallon.

"In the third quarter, we continued to rise to the challenge of meeting global energy needs," Woods said in a press release.

But Woods told analysts on an earnings conference call that there were a "lot of variables" behind the crunch in supply of diesel and other key refined items. Besides lost capacity in the Middle East and Russia from Ukrainian drone strikes, Woods cited a decline in Chinese refined output.

"My guess would be it will take certainly well through to next year before we see things getting back closer to normal," he said. "But it could be longer than that."

US rival Chevron said it achieved record throughput at refineries during the quarter.

"We're reinvesting to bring more energy to a supply-constrained market," said Chief Executive Mike Wirth.

But about 10 percent of the world's refining capacity remains off line, said Chevron Vice Chairman Mark Nelson.

"I would expect margins to eventually moderate as refinery runs recover and export flows increase," Nelson said on a conference call. "But that will take some time."

Both companies reported a more than doubling of quarterly profits Friday as oil giants reap financial rewards from spiking commodity prices and refinery margins. Steep price increases and supply shortfalls in some cases have sparked protests in parts of Asia, Latin America and Europe.

- Russian refining hit -

Executives have pointed to a cutback in output from Asian plants as Iran's blockage of shipments through the Strait of Hormuz has taken key crude oil off the market.

Another factor has been attacks by Ukraine on Russian plants, which had accounted for 6.5 percent of global refining capacity in 2025, according to KPMG.

The International Energy Agency said in September that just five Russian refineries remain unaffected by a barrage of drone attacks launched by Ukraine since the Russian invasion in 2022.

Russia's normal volume of 6.5 million barrels a day at 32 refineries had fallen to just 3.8 million barrels per day, its lowest level in 20 years, according to the IEA.

An October 21 report from Rystad Energy warned that Russia could become a net importer of gasoline and diesel in 2027.

On Friday, Russia's deputy prime minister for energy issues, Alexander Novak, told a reporter from state TV that Ukraine had resumed attacks on Russian plants, hitting three oil refineries and one gas-chemical complex.

On Friday, ExxonMobil's profits for the third quarter came in at $15.4 billion, slightly more than double the $7.5 billion in the year-ago period, while Chevron's profits were $9.9 billion, compared with $3.5 billion in the year-ago quarter.

But surging prices of gasoline and diesel have become a political albatross for US President Donald Trump, whose administration has pressed oil companies to take actions to soften the blow on consumers.

The US oil companies pointed Friday to steps to boost capacity. ExxonMobil spent around $17 billion on refining to boost capacity, including expansions at a plant in Beaumont, Texas, with work ongoing at another plant in Baytown, Texas.

Such investments are expected to add 100,000 barrels per day of additional distillate capacity, Woods said.

US refiner Valero Energy announced Friday that it reached a deal to acquire a shuttered Houston refinery from LyondellBasell for $320.5 million. It plans an initial restart by the end of 2027.

"This acquisition is a unique opportunity to strategically expand Valero's US Gulf Coast footprint at a fraction of replacement value and enhance the long-term strength of our refining system," said Valero CEO Lane Riggs.