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Over 50% of Old Bahraini-Saudi Oil Pipeline Upgraded

Bahrain's Minister of Oil, Sheikh Mohammed bin Khalifa al-Khalifa (File Photo: Reuters)
Bahrain's Minister of Oil, Sheikh Mohammed bin Khalifa al-Khalifa (File Photo: Reuters)
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Over 50% of Old Bahraini-Saudi Oil Pipeline Upgraded

Bahrain's Minister of Oil, Sheikh Mohammed bin Khalifa al-Khalifa (File Photo: Reuters)
Bahrain's Minister of Oil, Sheikh Mohammed bin Khalifa al-Khalifa (File Photo: Reuters)

Over 50 percent of the construction and modernization of the project for the replacement and upgrading of the oil pipeline between Bahrain and Saudi Arabia has been accomplished, announced Oil Minister Sheikh Mohammed bin Khalifa Al Khalifa.

He also stated that the pipeline is being buried in the south of Bahrain, and "the project is moving steadily according to the plan and budget. In order to double the current capacity of the absorptive capacity of the pipeline, which has been going on for more than 70 years."

The minister described Bahrain’s refinery project, which was established in 1936, as one of the strategic projects in the country to raise the level of unliquidated obligations in the area of the Gulf Cooperation Council (GCC).

This project aims to enhance competitiveness and profitability in order to increase the production of the refinery.

The minister added that the oil sector in Bahrain is currently working on a clear strategy for involving the private sector in the implementation and management of the oil projects, such as the port project of liquefied natural gas.

The port project is being developed in partnership with the private sector, that will be implemented according to the system of construction and property transfer.

Sheikh Al Khalifa expects that the third gas plant, owned by Bahrain National Gas Company, to start operating by the last quarter of the year 2018.

Bahrain's Oil Minister was speaking during the inauguration of the second Edition Middle East Refining Technology Conference (MERTC2018).

The minister confirmed the need for more investments and advanced technology and engineering solutions to the various challenges in the refining industry, as a result of population growth and increase demand on energy, which it requires further effort in order to strengthen the cooperation between the refining industry and technology.

This represents a challenge facing technology companies today to devise creative solutions that help companies operating in the oil refinery to improve financial returns and enhance operational efficiency, explained the minister.

He reiterated the need to achieve balance between oil prices which negatively affected the oil producing countries, employees and investors in the field of oil refineries. He also pointed out the need to take full advantage of technological solutions available to rationalize operational expenditures in this sector is vital.

There is a need to find ways to improve the operational efficiency and quality of products, as well as innovative technologies and solutions to the increasing use of heavy raw materials, as the main key to achieve the best results in the refining sector in the Middle East and the world, confirmed the Oil Minister.

The conference had over 450 participants, 80 percent of which were engineers and professionals, who met to address the issues and review technical solutions. They also reviewed some examples of successful development projects in different regions of the world, where they took advantage of the events accompanying, that can contribute in improving the future of the refining industry in the region and the world.

The minister also opened the exhibition, which included a number of national and international oil companies, such as Bahrain Petroleum Company (Bapco), Sabic, Kuwait National Petroleum Company, Abu Dhabi Oil Refining Company, Manufacturing Company of Saudi Arabia, Kuwait Petroleum Corporation (KPC), and many international companies and consultancy in the field of oil refining industry.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.