G20 Highlights Importance of Digital Technology

Saudi Minister of Communications and Information Technology Abdullah Alswaha
Saudi Minister of Communications and Information Technology Abdullah Alswaha
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G20 Highlights Importance of Digital Technology

Saudi Minister of Communications and Information Technology Abdullah Alswaha
Saudi Minister of Communications and Information Technology Abdullah Alswaha

The Saudi Presidency of the G20 stressed on Wednesday that there is an agreed framework to tackle the digital divide in the world.

“If a health crisis like COVID-19 wiped out $6 trillion worth of economic value in few months… the world cannot afford to have a digital crisis that can wipe out the same economic value in a matter of weeks if not days,” said Saudi Minister of Communications and Information Technology Abdullah Alswaha.

“Digitalization has been at the heart of every transformational journey for creating wealth, prosperity, and competitiveness,” said Alswaha.

“This year, we have agreed that in a post-COVID-19 world, (digital technology) has become the lifeline for our kids to continue their education, the lifeline for our loved ones outside of the ICU room, and the gateway to opportunities for youth and women.”

He spoke in a virtual press conference following a meeting held by the G20 Digital Economy Ministers.

The meeting started with discussing the challenges facing digitization, including ways to bridge the digital gap.

The ministers emphasized the role of connectivity, digital technologies, and policies in accelerating collaboration and response to the COVID-19 pandemic and enhancing the ability to prevent and mitigate future crises.

“Artificial Intelligence (AI) systems have the potential to generate economic, social, and health benefits and innovation, drive inclusive economic growth, and reduce inequalities as well as accelerate progress toward the achievement of the Sustainable Development Goals (SDGs),” said the ministers, according to a statement released by the Saudi G20 Secretariat.

“They could also have potential impacts on the future of work, the functioning of critical systems, digital inclusiveness, security, trust, ethical issues, and human rights,” said the statement.

It said that in 2019, G20 Leaders acknowledged in Osaka the importance of data free flow with trust and cross-border data flow and recognized the critical role played by effective use of data for digitalization, as enablers of economic growth, development, and social well-being.

According to Wednesday’s statement, “the cross-border flow of data, information, ideas and knowledge generates higher productivity, greater innovation, and improved sustainable development.”

“At the same time, we recognize that the free flow of data raises certain challenges, such as the protection of privacy and personal data. G20 members recognize the need to address these challenges, in accordance with relevant applicable legal frameworks, which can further facilitate data free flow and strengthen consumer and business trust, without prejudice to legitimate public policy objectives,” said the ministers.

Building on the achievements of past Presidencies, they encouraged further work with stakeholders for the development of digital technologies and solutions for human-centric, environmentally sound, sustainable, rights-respecting, and inclusive smart cities and communities that boost competitiveness and enhance well-being and community resilience.

“These digital solutions should be centered around connectivity and providing services in more efficient and personalized ways, while safeguarding human rights,” they said.

The statement also quoted the ministers as saying that the ministers support advancing digital economy measurement.

“Reinforced cooperation will help advance consistency across different approaches and enhance evidence-based policymaking to contribute to the realization of the opportunities of the 21st century for all,” they said.

They also recognized that “the digital economy has and will continue to have wide-ranging implications as a driver of inclusive economic growth and development, contributing to the achievement of the Sustainable Development Goals, and as a means to prevent and address crisis situations and aid businesses and industry in recovering from the impact of COVID-19.”

“We acknowledge the crosscutting impact of the digital economy in overcoming development challenges, including growth, labor, employment, social, health, and cultural challenges. We therefore welcome continued discussion of the transformation of the Digital Economy Task Force to a Digital Economy Working Group.”



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.


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.


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.