عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
TT
TT

Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)

Defense aircraft maintenance dominated the interests of Saudi companies at the World Defense Show (WDS) in the Saudi capital, Riyadh. Companies emphasized efforts to commit to localizing defense industries and technical investment, at a time when cooperation agreements and memoranda of partnerships for building military ships and helicopter platforms were a prominent focus in deals signed on the WDS’ last day.

The four-day WDS 2022, which began on March 6, witnessed the signing of a deal between the Saudi-based Overhaul and Maintenance Company (OMC) and the Saudi Technology Development and Investment Company (TAQNIA).

OMC also signed another deal with the Saudi Authority for Data and Artificial Intelligence (SDAIA). Its deal with SDAIA aims to develop innovative geospatial products and services that contribute to enhancing local content and serving the Saudi market, to enhance the Kingdom's global position in the fields of data and artificial intelligence.

BAE Systems Saudi Arabia and SDAIA signed a deal to provide information technology services, cybersecurity services, as well as professional services and manpower for institutions.

A second deal was signed between the two. It aims to develop operational and technical capabilities, advance security operations centers and network security, as well as support data management analysis systems by participating with specialized experts, developing strategies for future improvement.

Abdulatif Al-Sheikh, CEO of OMC, confirmed to Asharq Al-Awsat that the company is continuing to localize the defense industry in the Kingdom, indicating that the company owns three companies in the defense field.

“Companies in Riyadh and Jeddah have invested in qualitative capabilities and national competencies working in training Saudi technicians through a package of training programs, most of which are internationally accredited by the European International Safety Organization,” Al-Sheikh told Asharq Al-Awsat.

International Systems Engineering (ISE) CEO Majid AlMuzairi told Asharq Al-Awsat that his company was working to expand the scope of its projects, in addition to signing many agreements and strategies with a number of government agencies and related companies on the sidelines of the WDS.

AlMuzairi stressed that cybersecurity is one of the Kingdom’s priorities and noted that ISE is launching a pivotal action plan in the digital transformation process.

He revealed the company's vision to be the first provider of information services and technology management for companies operating in the defense and national security sectors.

Saudi Maintenance and Supply Chain Management Company (SMSCMC) CEO Jeremy Charmak told Asharq Al-Awsat that his company is using its capabilities to push the local industry in the Kingdom, as it currently has eight branches, six of which are in Saudi Arabia.

He revealed that the Saudization rate at his company is up to 72%.

Charmak pointed out that SMSCMC is launching very important training programs in the transportation of sensitive and dangerous equipment and safety equipment, indicating that the company specializes in supply chains and logistics services, and was established in 2006.

International Maritime Industries (IMI) , the largest shipyard in the MENA region, has expanded its partnership with Hyundai Heavy Industries (HHI) to enable the construction of naval vessels at its yard in Saudi Arabia.

The extension of the existing memorandum of understanding (MoU) between IMI and HHI will lead to further cooperation between the two partners in areas including naval vessel research, development and construction, and the localization of engine manufacturing for naval ships in the kingdom.

It will also deliver further knowledge transfer through the training of IMI’s Saudi team members at HHI facilities, providing them with new skills and future career opportunities, as well as the development of further commercial relations, said a statement.

Most Viewed

 
 
Business

EU, China to Hold Beijing Talks to Avert Trade War

Brussels toughened its stance towards Beijing to defend businesses from what it believes is unfair competition in critical sectors including cars. CN-STR/AFP/File
Brussels toughened its stance towards Beijing to defend businesses from what it believes is unfair competition in critical sectors including cars. CN-STR/AFP/File
TT
TT

EU, China to Hold Beijing Talks to Avert Trade War

Brussels toughened its stance towards Beijing to defend businesses from what it believes is unfair competition in critical sectors including cars. CN-STR/AFP/File
Brussels toughened its stance towards Beijing to defend businesses from what it believes is unfair competition in critical sectors including cars. CN-STR/AFP/File

EU trade chief Maros Sefcovic will head to Beijing on Thursday for two days of make-or-break meetings with Chinese officials to try to stave off a trade war.

The European Union has toughened its stance towards Beijing to defend businesses against what it believes is unfair competition in critical sectors including cars.

Increasingly European leaders and observers warn of a "China Shock 2.0", used to describe Chinese firms' shift into more high-tech manufacturing, which is threatening many traditional EU industries.

The first shock in the early 2000s saw a glut of cheap, more low-tech exports from China hurt manufacturers not just in Europe but around the world.

EU and Chinese officials have been locked in talks since June to address Brussels' concerns about the current trade imbalance.

The EU is simultaneously preparing to boost its trade defense toolbox -- but Beijing has threatened to retaliate against any moves targeting China.

Sefcovic raised the stakes for this week's meetings in summer when he warned the EU expected "tangible results by October" from the process.

But experts cautioned against expecting too much from this week's meetings.

"There may be a few crumbs, but I would not expect any kind of major breakthrough," Penny Naas, director of the Brussels office of German Marshall Fund of the United States (GMF) think tank, said.

There could be "agreements on some specific issues, rather than any broad settlement of the trade relationship", said Zhu Tian, professor of economics at the China Europe International Business School (CEIBS) in Shanghai.

It is clear Brussels is aware the talks won't solve all of its woes, with the commission working in parallel on new tools to protect European industries, which are expected to be presented to leaders in December.

- 'Worrying trends' -

What the EU wants is to cut its trade deficit with China.

It hit around 360 billion euros in 2025, meaning the EU imported far more from the Asian nation than it exported there. China has a lower figure of around $292 billion but expects the deficit to rise further this year.

The EU's trade enforcement chief, Denis Redonnet, said sectors facing "sustained and abnormal" import increases included machinery, textiles, basic metals and chemicals.

There were "potentially worrying trends for almost a quarter of all imports into the EU at the moment", driven mainly by Chinese goods, Redonnet told the European Parliament last week.

Sefcovic said the EU wanted to deliver on three main objectives including tackling export surges from China to the bloc's market, especially in critical sectors, and increasing exports from Europe to China.

Brussels also wanted "a system of export licensing for rare earths and other products" after major producer China introduced restrictions on them last year.

Europe hopes to manage Chinese exports through voluntary limits, for example on hybrid cars shipped to the bloc, but an EU official said Brussels wants to include other products. Beijing has said it firmly opposes import quotas.

China has limited room for maneuver because of weak domestic demand, which means the government relies on exports to sustain growth levels.

- Diversifying suppliers -

Since the bloc does not expect significant changes by China, the EU official, speaking on condition of anonymity, said it was also steaming ahead with preparing new tools.

Several EU nations including France have pushed for a "European equivalent of Section 301" -- the trade tool US President Donald Trump used to probe foreign practices Washington deems discriminatory, and retaliate with tariffs.

Responding to reports last week about such a tool, Beijing warned it would "respond resolutely" to "discriminatory restrictive measures".

The EU knows they are not empty threats: China previously retaliated against the bloc's trade defense moves with duties on European cognac, and conducted anti-dumping probes into pork and dairy products.

Brussels is also developing a tool that would support businesses, through funding, to diversify their suppliers in critical sectors.

It is still unclear, however, how far the EU as a whole would be willing to go against China -- for fear of provoking Beijing.

Germany, which is especially exposed since its biggest trading partner is China, has been especially cautious -- though Berlin's stance has hardened as it worries Chinese overcapacities are hurting its export-led economy.

Europe has "the ability to do something more aggressive to stem this China 2.0 shock", GMF's Naas said. "The question is, will they?"

Business

Saudi Non-Oil Sector Grows at Seven-Month High in September

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
TT
TT

Saudi Non-Oil Sector Grows at Seven-Month High in September

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Saudi Arabia's non-oil private sector recorded significant acceleration in September 2026, as the Riyad Bank Purchasing Managers’ Index (PMI), seasonally and economically adjusted and compiled by S&P Global, rose to 55.3 percent, up from 53.8 percent in August. This increase reflects the highest level for business conditions since February, surpassing the 50 percent neutral mark that separates growth from contraction.

Record Rise in New Orders

Report data showed that the sector's growth was primarily supported by a sharp rebound in new orders, which recorded their fastest rate of increase since last February, amid improving market conditions, increased domestic spending, and customer demand.

In response to this influx of orders, companies bolstered their operational and investment capacities, driving employment activity to accelerate to its highest level in seven months. Recruitment efforts specifically targeted supporting technical staff and expanding sales teams. Purchasing activity also saw robust growth, with purchases of production inputs recording their highest increase in seven months.

Decline in Foreign Sales

Despite the domestic rebound, the report indicated continued weakness in foreign demand, with new orders from international clients declining for the seventh consecutive month due to supply chain disruptions and regional geopolitical tensions.

Supply chain data also showed only a slight improvement in supplier delivery times, and at the slowest pace in five months. These delays and rising costs contributed to a slowdown in production growth to its lowest level in five months, coupled with an increase in backlogs for the first time since May.

Cost Pressures and Rising Selling Prices

Companies reported a continued sharp increase in input prices due to elevated material and transportation costs. To protect profit margins, establishments raised selling prices to customers at a high rate, marking the second fastest increase in over six years.

Regarding the outlook, the Future Output Index showed a decline in business optimism for the coming year to its lowest level since March, amid the prevailing uncertainty caused by regional disruptions and supply chains.

Commenting on these results, Dr. Naif Alghaith, Chief Economist at Riyad Bank, affirmed that September's results are consistent with the overall picture of the Saudi economy; where domestic consumption, investment activity, government projects, in addition to Public Investment Fund projects, and credit availability, continue to provide fundamental support for non-oil activity.

Alghaith added: “The increase in unfinished work, coinciding with the acceleration in employment and purchasing to a seven-month high, indicates that companies are building their operational capacities to meet sustained demand and expand their production capabilities, rather than merely offering temporary responses.”

Business

Egypt Non-oil Downturn Deepens in September as Orders Slump

Part of the New Administrative Capital east of Cairo (New Capital Company)
Part of the New Administrative Capital east of Cairo (New Capital Company)
TT
TT

Egypt Non-oil Downturn Deepens in September as Orders Slump

Part of the New Administrative Capital east of Cairo (New Capital Company)
Part of the New Administrative Capital east of Cairo (New Capital Company)

Egypt's non-oil ‌private sector contracted at a faster pace in September as output and new orders fell sharply amid inflation and geopolitical disruptions, a business survey showed on Monday, Reuters reported.

* The seasonally adjusted S&P Global Egypt Purchasing Managers' Index (PMI) fell to 47.2 in September from 49.6 in August, a survey by ‌S&P Global ‌showed. The 50-mark separates growth ‌from ⁠contraction.

* Output and ⁠new business both declined at faster rates in September. Firms cited weaker market conditions, ongoing geopolitical disruptions and strong inflationary pressures.

* Export sales also fell, though at a ⁠marginal pace that was the ‌joint-slowest in ‌the current seven-month decline.

* Employment rose for ‌a second straight month, the ‌first back-to-back increase in staffing in more than a year, although the pace slowed from August and remained slight.

* Output ‌price inflation eased slightly from August but remained steep and ⁠well ⁠above the historical trend, while input cost inflation rose to a three-month high.

* The survey said firms remained optimistic that output would rise over the coming 12 months.

* "All this suggests that Egyptian firms remain hopeful about the future in spite of the economic challenges they face," said David Owen, Principal Economist at S&P Global Market Intelligence.