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G20 Two Summits Proposal Will Contribute to Solving Problems, Addressing Urgent Files

Family Photo for the annual G20 Summit World Leaders is projected onto Salwa Palace in At-Turaif, one of Saudi Arabia’s UNESCO World Heritage sites, in Diriyah, Saudi Arabia, November 20, 2020. REUTERS/Nael Shyoukhi
Family Photo for the annual G20 Summit World Leaders is projected onto Salwa Palace in At-Turaif, one of Saudi Arabia’s UNESCO World Heritage sites, in Diriyah, Saudi Arabia, November 20, 2020. REUTERS/Nael Shyoukhi
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G20 Two Summits Proposal Will Contribute to Solving Problems, Addressing Urgent Files

Family Photo for the annual G20 Summit World Leaders is projected onto Salwa Palace in At-Turaif, one of Saudi Arabia’s UNESCO World Heritage sites, in Diriyah, Saudi Arabia, November 20, 2020. REUTERS/Nael Shyoukhi
Family Photo for the annual G20 Summit World Leaders is projected onto Salwa Palace in At-Turaif, one of Saudi Arabia’s UNESCO World Heritage sites, in Diriyah, Saudi Arabia, November 20, 2020. REUTERS/Nael Shyoukhi

Political and economic experts have unanimously agreed on the importance of the proposal put forward by Saudi Crown Prince Mohammed bin Salman during his speech to the G20 leaders’ summit on Sunday.

Bin Salman has suggested that the G20 summit would be held twice a year, in order to accelerate decision-making and intensify follow-up of the outcome of the sub-committees’ meetings.

At the conclusion of the virtual summit, which was hosted by Riyadh, the Saudi crown prince proposed that the G20 group would convene in two summits every year – one virtually, mid-year, and the other in-person at the end of the year. Observers saw this proposal as important and necessary to reflect on the latest developments on the international scene and discuss the best mechanisms to address them.

During its presidency of the 2020 G20, Saudi Arabia has succeeded in bringing together the leaders of the group as well as international organizations amid the Coronavirus outbreak. The world has eagerly awaited its solutions to the crises that struck them as a result of the pandemic.

Dr. Fahd Al-Shulaimi, a strategic expert, told Asharq Al-Awsat that Prince Mohammad bin Saman’s proposal was very important in light of the many instabilities the world was going through.

“The meeting of the G20 leaders twice a year would strengthen effectiveness and flexibility in implementing strategies rather than waiting an entire year for a decision,” he remarked.

He added that the virtual summit would pave the way for bridging points of view and would give an indication of what would emerge from the year-end summit.

Meanwhile, Political Analyst Nayef Al-Ruqaa underlined the importance of the Saudi role in leading the G20 summit.

In remarks to Asharq Al-Awsat, he noted that the first proposal put forward by the Kingdom was working on the development of the poorest and least developed countries in the world. He added that maintaining international peace and security was among Saudi Arabia’s priorities even before the outbreak of the coronavirus pandemic.

Ruqaa pointed to other solutions presented by the Kingdom, namely postponing the payment of debts owed by the least developed or poorest countries, which benefited more than a billion people around the world, especially amid the severe economic and financial crises that overwhelmed the countries as a result of the pandemic.

In addition, the political analyst noted that Crown Prince Mohammed bin Salman presented an important practical proposal, represented in the holding of a remote virtual summit and another with the actual presence of the leaders. Ruqaa said it was a strong experience that could be used in the upcoming summits and a message that digital communication, e-learning, and digital economy would be the world’s choice in the coming years.

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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.