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Saudi Arabia to Develop Hydrogen-Based Transport

Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday the ministry had signed eight memorandums of understanding (MoU) with government entities to use hydrogen-powered vehicles, Asharq Al-Awsat
Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday the ministry had signed eight memorandums of understanding (MoU) with government entities to use hydrogen-powered vehicles, Asharq Al-Awsat
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Saudi Arabia to Develop Hydrogen-Based Transport

Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday the ministry had signed eight memorandums of understanding (MoU) with government entities to use hydrogen-powered vehicles, Asharq Al-Awsat
Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday the ministry had signed eight memorandums of understanding (MoU) with government entities to use hydrogen-powered vehicles, Asharq Al-Awsat

The Ministry of Energy signed on Thursday eight memoranda of understanding (MoUs) with several entities for implementing pilot projects for hydrogen fuel cell-based cars, buses and trains, transportation applications, and sustainable jet fuel production in selected areas and on roads in various cities of the Kingdom.

In a statement on this occasion, Minister of Energy Prince Abdulaziz bin Salman noted the interest of Custodian of the Two Holy Mosques King Salman in the energy sector and his keenness to develop and utilize various energy resources with which the Kingdom is endowed.

“This step is taken simultaneously with drafting the hydrogen strategy, which arises from the integrated energy strategy that lays out the objectives, roadmap and implementation timeline.”

Prince Abdulaziz also noted the support of Crown Prince Mohammad bin Salman in this regard. “It also reflects the constant support Crown Prince Mohammad bin Salman lends to all the energy sectors. I have to acknowledge the significant role the Crown Prince is undertaking to empower the energy sector with his continuous follow-up and immense support at all levels and through his leadership of the supreme energy committees.”

“I must also commend the cooperation and integration we see between partners in these various memoranda,” he added.

“This synergy is a real booster to our endeavors to achieve the Saudi Vision 2030 objective of diversifying the Kingdom’s energy sources, and becoming a global leader in all areas of energy, as it has been in the oil industry for over 80 years.”

Lastly, Eng. Mohammed Abdulrahman Al-Ibrahim, Assistant Minister for Oil and Gas, signed with Raed Hassan Al-Idrissi, CEO of the Saudi Ground Services Company (SGS), an MoU for a project on hydrogen fuel cell-based transportation applications.

Hydrogen-fueled transportation projects and applications that are based on the technology of hydrogen fuel cells are to be carried out according to the signed MoUs. These include cars, buses, trains, as well as maritime transportation.

The projects will take place in several different locations throughout the Kingdom, such as NEOM, the Red Sea, Princess Nora Bint Abdulrahman University, Makkah, Royal Commission for Jubail & Yanbu, and airport runways. Hydrogen production and fueling stations are also to be built in some of these areas to supply these projects with hydrogen fuel.

These projects will be implemented in collaboration between the Ministry of Energy, sponsors and many global companies that provide the technologies for these applications in order to establish a complete conceptual understanding of hydrogen fuel-based transportation applications.

The MoUs cover applications of hydrogen in the transportation sector, performance tests of hydrogen fuel cell-based vehicles and buses, efforts to acquire commercial and technical expertise, analysis of the lessons learned from experiments in using hydrogen as a fuel in transportation means, to expand the implementation scope in the future, and raising public awareness of hydrogen applications in the Kingdom.

The MoUs include executing water electrolysis-based hydrogen fueling stations, importing hydrogen fuel cell-based vehicles and buses, as well as providing full related operation services during the project’s implementation period.

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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
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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.