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European Countries Race to Ink Mega Projects in Saudi Arabia

Meeting of the Council of Saudi Chambers yesterday in Riyadh, Asharq Al-Awsat
Meeting of the Council of Saudi Chambers yesterday in Riyadh, Asharq Al-Awsat
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European Countries Race to Ink Mega Projects in Saudi Arabia

Meeting of the Council of Saudi Chambers yesterday in Riyadh, Asharq Al-Awsat
Meeting of the Council of Saudi Chambers yesterday in Riyadh, Asharq Al-Awsat

The Council of Saudi Chambers discussed on Wednesday mechanisms of implementing the initiative for EU-GCC dialogue on economy diversification and joint cooperation between the Kingdom and the European Union to attract investments.

The Vice-President of the Council of Saudi Chambers, Munir bin Mohammed Nasser bin Saad, discussed with the team leader and trade and foreign direct investment specialist from the consulting firm GFA, responsible for the implementation of the project "Dialogue between the EU and the GCC countries on economic diversification".

At the beginning of the meeting, Saad stressed the keenness of the Saudi business sector to strengthen cooperation with the European Union and its other institutions based on the strong relations between the Kingdom and the European Union.

He noted that the support of the Council of Saudi Chambers as the umbrella of the private sector in the Kingdom for all initiatives and projects contributes in improving trade exchange and volume of joint investments between the two sides in the light of the vision of the Kingdom 2030.

Saad also expressed his happiness with the meeting because it establishes constructive and fruitful cooperation between the Saudi private sector and its counterpart in the European Union by harnessing the huge wealth and potentials enjoyed by the two parties.

He indicated that each side has a number of ideas and initiatives to activate and revitalize investment scopes, especially in the field of supporting and developing SMEs (small and medium enterprises).

He pointed out that the Kingdom is one of the most important markets in the Middle East given its vibrant economy and advanced position worldwide.

The meeting witnessed wide-ranging discussion dealing with economic cooperation between the Kingdom and the EU on supporting economic diversification and attracting investments for both sides and establishing an electronic platform for the private sector of the EU and the private sector in the Kingdom and the GCC countries.

There is cooperation between Saudi Arabia as part of the GCC and Europe, in accordance with the 1988 cooperation agreement aimed at enhancing stability and expanding economic and technical cooperation, said Co-chairman of the Saudi-British Joint Business Council Sheikh Nasser Al-Mutawa.

The Gulf is the fourth largest export market of the European Union, while Europe is the largest trading partner of the Gulf states.

The agreement aims at increasing cooperation in the fields of industry, trade, services, energy, agriculture, fish production, investment, technology, environment and science, as well as cooperation between universities, companies, media and other vital fields.

Al-Mutawa called for active macroeconomic dialogue between the EU and the Gulf countries to promote macroeconomic stability, fiscal aspects of single currency, public financing, customs union and the single market.

According to al-Mutawa, 50 percent of Europe’s total exports are sent to Gulf states, including electric appliances, mechanical equipment, machinery and equipment. Oil and oil byproducts account for 70 percent of EU imports from the Gulf.

In light of current conditions of global trade affected by the US trade war with Iran and Brexit, creates a race among European countries to win mega projects in the Kingdom and other Gulf countries, he added.

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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.