London, Riyadh to Ensure Sustainable Solutions Meeting Global Energy Needs

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
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London, Riyadh to Ensure Sustainable Solutions Meeting Global Energy Needs

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters

A British diplomat stressed that her country would work closely with Saudi Arabia as one of the strategic partners to ensure sustainable solutions that meet global energy needs and protect the world for the future.

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters affirmed that SABIC's recent announcement of an investment of £850 million in decarbonization operations in north-east England, and Saudi Alfanar's commitment to invest £1 billion in the UK to convert waste into clean aviation fuel, are typical examples of this approach.

On the repercussions of the Ukrainian crisis, Walters stressed that her country does not depend on Russian natural gas, which constitutes less than 4% of British supplies.

The UK is exploring options to end this matter completely, revealed Walters, adding that her country plans to work on developing a long-term energy strategy that promotes the Kingdom as a leading global center in terms of technology and green finance.

Walters told Asharq Al-Awsat that the relationship between the UK and Saudi Arabia is of great importance as it covers a wide range of economic and national security interests that are based on a long-term bilateral relationship that is established on a number of pillars including security, energy, trade and defense.

“We share national security and prosperity interests bilaterally and, in the region, more broadly,” said Walters.

“Our partnership continues to grow, as the Kingdom of Saudi Arabia embarks on rapid social and economic change within the framework of (Vision 2030) with many new areas of cooperation, including sports, entertainment, and culture,” she added.

“We are well-positioned to work together in these areas, and we have high aspirations for the future,” affirmed the diplomat.

According to Walters, the invasion of Ukraine poses a threat to the economic recovery in Europe and the rest of the world following the coronavirus pandemic.

She warned that Russia’s war on the Eastern European country will exacerbate an already high level of global inflation and place pressure on supply chains.

Walters added that the Ukraine crisis had significantly increased the cost of living, noting that the measures taken by Europe and the UK to punish Russian President Vladimir Putin’s regime do not come for free.

But the risks of not taking firm action against an invasion of this caliber will be much greater, explained Walters, stressing that NATO will re-evaluate its position to deter and defend against threats that have become more realistic following recent events.

She pointed out that Britain committed about £400 million for official development assistance, as one of the largest bilateral donors to Ukraine.

Meanwhile, Saudi Arabia announced that it would provide $10 million to Ukraine.

Moreover, Saudi Arabia’s King Salman Center for Relief and Humanitarian Action signed two agreements with UN agencies, namely the World Health Organization and UNHCR to provide medical assistance and shelter to Ukrainian refugees.

“Riyadh and London share many development goals, as part of a growing bilateral partnership, and work together to identify future opportunities for joint development financing,” said Walters.

“Over the past two months, since the start of the Russian invasion of Ukraine, we have seen major disruptions to global supply chains and energy markets, causing inflation, commodity shortages, and price hikes all over the world,” she added.

“The production and export of food in Ukraine have been paralyzed, while Russia has imposed restrictions on the export of wheat and fertilizers,” said Walters.

British diplomacy is looking forward to the world reaching a quick end to this crisis.

However, in Walters’ opinion, this requires the Russian government's seriousness about engaging in diplomacy and negotiations and following up on any commitments it undertakes.



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.