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Saudi Leadership Position Spurs Optimism Towards It Taking WTO Helm

Saudi Arabia's position in the world economy qualifies it to lead the World Trade Organization (Asharq Al-Awsat)
Saudi Arabia's position in the world economy qualifies it to lead the World Trade Organization (Asharq Al-Awsat)
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Saudi Leadership Position Spurs Optimism Towards It Taking WTO Helm

Saudi Arabia's position in the world economy qualifies it to lead the World Trade Organization (Asharq Al-Awsat)
Saudi Arabia's position in the world economy qualifies it to lead the World Trade Organization (Asharq Al-Awsat)

The views of experts in Saudi Arabia confirmed that leadership elements possessed by the kingdom, which are exhibited in its presidency of the G20 group, in addition to its local developmental planning, economic and financial experience, are a factor in making the Saudi candidate an ideal option to lead the helm of the WTO administration.

It was on Wednesday that Saudi Arabia put forward the credentials of Mohammed Al-Tuwaijri for the position of the next director-general of WTO.

The current WTO chief Roberto Azevêdo is stepping down on August 31 this year. Shortly after the nomination period closes, candidates will be invited to meet with members at a special WTO’s General Council meeting, present their views and take questions from the members.

Apart from Al-Tuwaijri, who is an adviser at the royal court, six other candidates are so far in the running, namely from Egypt, Kenya, Mexico, Moldova, Nigeria and South Korea.

Many experts, speaking to Asharq Al-Awsat, relayed optimism towards Saudi Arabia’s chances of winning the seat.

Saudi Arabia, according to experts, enjoys a strong competitive edge over other countries when it comes to internal and international factors, financial and economic strength and the fact that it is main energy source and an influencer when it comes to programs backing international institutions.

More so, the Kingdom is carrying out the work of the G20 during difficult times with the spread of the coronavirus pandemic and its heavy repercussions on the economy, trade and markets in the world.

Saudi Arabia has its place in the global economy and international forums, given its prominent and important role in global trade, energy production and export, and large cash flows to the within the Kingdom and abroad, economist Ibrahim al-Omar told Asharq Al-Awsat.

“Indicators and factors push Saudi Arabia to qualify for the leadership of the WTO,” al-Omar added.

The new director-general of WTO will have to take up some of the thorniest issues to have struck global trade in recent times.

Hopes for improving the global trade environment are diminishing against challenges of increasing protectionism, self-sufficiency, increasing fees and taxes on the movement of goods and services, and the emergence of strong international conflicts.

Economist Abdurrahman Baashan, head of Ashrouq Center for Economic Studies, said that the Kingdom’s capabilities have been displayed across several fields, especially through its leadership of the G20 group during difficult times.

He added that Saudi Arabia is still leading the G20 with professionalism in terms of solutions and recommendations to save the international economy.

Baashan said that the Kingdom’s high economic position also makes it worthy to lead the WTO with wisdom and strength that enable it to face challenges.

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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.