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Saudi Arabia Inks Deals on Construction, Tourism Projects in Madinah

Prince Faisal bin Salman reviews the models of the mega projects expected in Madinah. (Asharq Al-Awsat)
Prince Faisal bin Salman reviews the models of the mega projects expected in Madinah. (Asharq Al-Awsat)
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Saudi Arabia Inks Deals on Construction, Tourism Projects in Madinah

Prince Faisal bin Salman reviews the models of the mega projects expected in Madinah. (Asharq Al-Awsat)
Prince Faisal bin Salman reviews the models of the mega projects expected in Madinah. (Asharq Al-Awsat)

The Governor of the Madinah region, Prince Faisal bin Salman bin Abdulaziz, inaugurated a number of projects in the Knowledge Economic City (KEC) and witnessed the signing of a number of contracts and agreements for the development of commercial, residential, tourism and entertainment projects.

The contracts included a tripartite agreement between the Saudi Tourism Development Fund (TDF), Riyadh Bank and the KEC to finance Phase 1 of the project, which will be implemented with the support of the Madinah Region Development Authority.

Phase 1 includes the construction of a commercial market, Hilton Hotel, the Boulevard commercial walkway, recreational area and health and sports centers.

The Tourism Development Fund, of the Ministry of Tourism, is financing the project as part of the fund’s strategy to provide support to private sector investors and boost the establishment of modern tourism projects that help enhance and develop the capabilities of the tourism sector in the Kingdom.

KEC has also agreed to the terms for the management of the Madinah Gate Fund Project Development with Riyadh. It aims to develop the lands adjacent to the Haramain high-speed train station in Madinah and the area overlooking Prince Nayef Road.

The development includes the construction of a four-star hotel and hotel apartments with 325 hotel units managed by the Hilton Group, markets, shops, restaurants, entertainment area, a bus stop and other services.

Public transport will be directly linked to the Haramain high-speed train station.

Prince Faisal also inaugurated the construction works on the Aliaa residential project in Dar al-Jiwar, and the development of Elite International Schools, a model international school complex for boys and girls from kindergarten to grade 12.

The complex of schools will be built on a 20,000-square-meter plot of land as part of a 25-year lease agreement and will be able to accommodate around 1,700 students. The first school is scheduled to open in September 2022.

CEO of TDF Qusai al-Fakhri said that the agreement is one of several successful deals with local banks aimed at providing investors with attractive financial solutions that encourage investments into this promising sector.

“It exemplifies our commitment to delivering on the National Tourism Strategy, increasing the GDP contribution of the tourism sector from 3 to 10 percent by 2030 and creating 1 million new jobs,” noted Fakhri.

The KEC Hub will be a 68,000-square meter tourism complex in Madinah, valued at $346.3 million making it among the biggest tourist projects in Madinah.

The new complex is located only around 6km from the Prophet’s Mosque, and it is easily accessible through the Haramain high-speed railway at the Knowledge City. The railway connects Madinah with Makkah in around 55 minutes.

The project will benefit from the position of Madinah in the Islamic world, in addition to its being an international destination for tourism and heritage.

It ranked 23rd among the top 100 City Destinations for 2019 with around 9 million tourists, according to the latest report by Euromonitor International.

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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.