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Saudi Defense Ministry Concludes 10 Agreements with Local, Int'l Companies

The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
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Saudi Defense Ministry Concludes 10 Agreements with Local, Int'l Companies

The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)

On the third day of Saudi Arabia’s World Defense Show, which coincided with International Women’s Day, participants focused on stimulating the role of female leaders in defense and security worldwide.

Saudi ambassador to the United States, Princess Rima bint Bandar bin Sultan bin Abdulaziz said on Monday that empowering Saudi women was at the heart of Vision 2030, underlining the importance of sustaining this momentum at the global level.

She added that the Women in Defense program, which was unveiled during the major defense event hosted in Riyadh, provided a unique platform that highlight the importance of achieving equality and enhancing the role of women in the sector.

The program inauguration ceremony was held in the presence of Phebe Novakovic, CEO of General Dynamics, and Marion Blakey, former President and CEO of Rolls-Royce North America and Director of the Federal Aviation Administration, and a member of the Supervisory Committee of the World Defense Show.

Other prominent female attendees included Dana Stroul, Deputy Assistant Secretary of Defense for the Middle East, Heidi Grant, Vice President of Business Development for Boeing and former President of the US Defense Security Cooperation Agency, Dr. Moudhi Al-Jamea, Vice President of the Saudi Telecom Company, and Mashael Al-Shammari, a consultant in the field of space technology and the first female aeronautical engineer in the GCC.

Penny MacPherson, head of the Women in Defense program at the World Defense Show, said that the exhibition comes at an appropriate time for both Saudi Arabia and the global defense industry, adding that the presence of women leaders from all over the world will support their advancement at the local and international levels.

Meanwhile, the Saudi Ministry of Defense signed a number of agreements on Monday, including a contract with Naval Group Arabia Ltd. Worth more than 800 million riyals ($213 million), to provide technical and logistical support services for the Royal Saudi Navy. The contract was signed by Dr. Khaled Al-Biyari, Assistant Minister of Defense for Executive Affairs, and Didier Fouilly, CEO of Naval Group Arabia.

The ministry also signed a contract worth SR3 billion with Hanwha, a Korean defense company. The contract was signed for the Riyal Saudi Land Forces to support its defense capabilities, in addition to localization and supply chain services.

The Ministry of Defense also concluded three different contracts worth SR1.7 billion with Alsalam Aerospace Industries for providing maintenance services for the Royal Saudi Air Force.

With an amount exceeding 400 million riyals ($106 million), the ministry concluded a contract with the Saudi Aircraft Maintenance and Configuration Company, for the Royal Air Force, for technical support services for C-130 aircraft. The contract was signed by Ibrahim Al-Suwaid, Undersecretary of the Ministry of Defense for Procurement and Armament, and Engineer Muneer Bakhsh, CEO of the company.

Moreover, a deal worth more than SR430 million was signed with Norinco, a Chinese company, aimed at securing different types of ammunition for the General Directorate of Arms and Ammunitions.

The Ministry of Defense also signed an SR460 million contract with Poongsan Corporation to secure various types of ammunition for the General Directorate of Arms and Ammunitions.

Another deal was signed with Korean LIG Nex1, amounting to more than 250 million riyals ($66 million), to acquire defense capabilities and electro-optical equipment for the Saudi Royal Navy.

In comments, Al-Biyari said: “The contracts concluded by the Ministry of Defense come in accordance with the directives of Crown Prince Mohammad bin Salman bin Abdulaziz, and the follow-up of Prince Khalid bin Salman, Deputy Minister of Defense, with the aim of raising the readiness of the armed forces, sustaining systems, localizing military industries and maximizing the use of local content.”

He added that contracts forged with local and international companies confirmed the Saudi leadership’s great support and attention to the armed forces, whether in the field of systems manufacturing or assigning.

The Ministry of Defense is participating in the World Defense Show 2022 as the main partner. The exhibition discussed over three days the latest technologies in the fields of land, sea, air, space and information security, and showcased the capabilities of integrated and innovative defense solutions.

Founded by the General Authority for Military Industries, the event featured some of the world’s most cutting-edge, futuristic defense equipment. Almost 600 global companies are taking part in the event, representing over 40 countries.

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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.