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Expo 2020 to Boost Construction, Transportation in UAE

Aerial view of Expo 2020 Dubai (Expo website)
Aerial view of Expo 2020 Dubai (Expo website)
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Expo 2020 to Boost Construction, Transportation in UAE

Aerial view of Expo 2020 Dubai (Expo website)
Aerial view of Expo 2020 Dubai (Expo website)

UAE's bid to host Expo2020 is a historic achievement, which, along with UAE’s Vision 2021 launched by Vice President and Ruler of Dubai Sheikh Mohammed Bin Rashid Al Maktoum, means that the construction and infrastructure sectors have won a significant share of investments.

At the level of Gulf countries, UAE’s share of oil exports in the country’s gross domestic product (gdp) dropped 21 percent to second place after Saudi Arabia, according to a study by Bloomberg.

The efforts to diversify economic resources in response to UN Sustainable Developments Goals 2030 and UAE Vision 2021 are the primary incentives for this transformation.

Vision 2021 includes priorities of creating a competitive, knowledge and innovation-based economy, a sustainable environment, and integrated infrastructure to create opportunities for enhanced innovation and restructuring in construction.

Emirates Water and Electricity Company (EWEC), the sole procurer of water and electricity within Abu Dhabi, has issued a tender for the construction and development of a new 2,000 MW solar photovoltaic (PV) power project to be located at al-Dhafra, Abu Dhabi.

Expo2020 Dubai launched a series of construction projects worth about $238 billion which are scheduled to be completed by October, a year before the launch of the Expo.

These projects have helped regional and international companies operating in the UAE achieve growth rates of more than 10 percent, which Bloomberg sees as a unique opportunity for these companies.

The global event hosts individual projects from some 170 countries, all of which require a high level of experience in the areas of design, implementation, and innovation, which increases construction requirements and challenges time constraints.

In total, UAE accounts for about 52 percent of the construction projects in GCC member states, and by the end of 2017, there were 11,755 projects in the country worth $818 billion, representing 33.6 percent of the $2.43 trillion total construction projects in the GCC.

In 2018, UAE and Saudi Arabia accounted for about two-thirds of the total construction projects among GCC countries at a cost of $1.61 billion, Bloomberg reported.

Roads and Transport Authority (RTA) in Dubai announced tunneling works of Route 2020 Project, which takes the Dubai Metro to the Expo 2020 venue, was completed on June 30.

Bloomberg believes when UAE joins projects of China's “Belt and Road Initiative,” strong cooperation between Dubai and Beijing will help provide financial support for infrastructure projects.

Trade between China and the UAE is well established, with trade volume reaching $60 billion in 2017.

Expo2020 Dubai is the first international expo in the Middle East, Africa, and South Asia and is expected to attract more than 25 million visitors, 70 percent of whom are from outside the UAE.

Expo 2020 Dubai will be held over a period of six months, from October 20, 2020 to April 10, 2021 with more than 200 participants from countries, international organizations and companies, and educational institutions.

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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.