Tunisia Pins Tourism Hopes on Russians

Empty sunbathing chairs are seen on a beach near the Hasdrubal Hotel in Hammamet, Tunisia , March 12, 2020. Reuters
Empty sunbathing chairs are seen on a beach near the Hasdrubal Hotel in Hammamet, Tunisia , March 12, 2020. Reuters
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Tunisia Pins Tourism Hopes on Russians

Empty sunbathing chairs are seen on a beach near the Hasdrubal Hotel in Hammamet, Tunisia , March 12, 2020. Reuters
Empty sunbathing chairs are seen on a beach near the Hasdrubal Hotel in Hammamet, Tunisia , March 12, 2020. Reuters

With its economy hit hard by the pandemic, Tunisia is counting on Russians and eastern Europeans to salvage its tourist sector whose employees fear hunger more than Covid-19.

"The need to work is stronger than the fear of being contaminated," said lifeguard Aymen Abdallah, glancing at a half-empty beach in the Mediterranean resort of Sousse where Russians are making a comeback.

"If we don't work, we'll starve to death," added Abdallah, donning sunglasses and a mask.

The lifeguard is relieved to be back at work after an idle eight months. But "normally, the beach would have been full at this time", he sighed.

The North African country reopened its borders to tour operators in late April but then ordered a new week-long partial lockdown at the start of May because of a spike in coronavirus cases.

Up to 10 flights a week, mostly from Russia and eastern Europe, have in the past month been touching down at Enfidha, an airport serving Tunisia's tourism towns.

But revenues are down more than 60 percent on 2019, before the pandemic hit.

Hotels are authorized to operate at 50 percent of capacity but are struggling to reach that level.

"There's not much profit with just 30 percent hotel occupancy," lamented Adel Mlayah, deputy director of the high-end Mouradi Palace in Sousse.

The hotel normally employs at least 260 staff, but this year no more than 120 are working, AFP reported.

While visitors from most West countries are deterred from travel by their governments, those from Russia, the Czech Republic and Poland appeared to have few such qualms.

"There are not that many countries where we can go," said Andrej Radiokove, newly arrived from Moscow.

"Turkey closed its borders -- that's why we chose Tunisia."

Like most of the others in his tour group, he has not been vaccinated.

"We had Covid two months ago, so we're not scared," he said.

Only around two percent of Tunisia's population has so far been vaccinated.

The pandemic has claimed more than 12,000 lives in the country of 12 million people. But the high local toll does not appear to have deterred the sun-seekers.

Around the pool of the Mouradi Palace, a clutch of them swayed to the rhythm of Russian electronic music.

"Customers from eastern Europe are less than reticent, less concerned about the pandemic," said Zied Maghrebi, marketing director of the nearby Movenpick hotel.

"We have fallen back on these customers because they're not afraid to travel."

Serafim Stoynovski, a 22-year-old Bulgarian law student, explained that he chose Tunisia because "restrictions here are not as strict" as in other countries.

"We can go out for a walk, go to a restaurant or have a coffee if we want," he said.

Unlike other tourists who have to self-isolate for five to seven days in government-assigned hotels at their own expense, those in tour groups only need a negative PCR test.

Excursions, however, are restricted to tours organized by travel agents who adhere to health protocols, said Sousse tourism commissioner Taoufik Gaied.

He is holding out hope for one million tourists in 2021, still just a fraction of the nine million who came two years ago.



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.