Saudi Arabia, Italy to Boost Comprehensive Strategic Partnership

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
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Saudi Arabia, Italy to Boost Comprehensive Strategic Partnership

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)

Saudi Arabia and Italy underscored on Monday their strategic relations and determination to further expand their economic partnership.

Addressing the Saudi-Italian Investment Forum being in Riyadh, Saudi Finance Minister Mohammad al-Jadaan discussed the national economy and the "enormous" investment opportunities available.

He said his country is going through an economic transformation that creates investment opportunities in many areas in various sectors.

Saudi Arabia is going through an economic transformation with different companies capable of attracting Italian expertise, capabilities, and innovation.

Bilateral trade between the two nations topped $8.6 billion, a 32.9 percent increase in 2020.

Italy is Saudi Arabia's seventh-largest supplier of goods, and the Kingdom ranks 21 in goods supplied to Italy. Saudi Arabia provides approximately 9 percent of Italy's oil imports.

Speaking at the inauguration of the 12th session of the Saudi-Italian Joint Commission, Jadaan explained that Saudi Arabia is undergoing an economic transformation with the diversification of its economy by concentrating more on non-oil sectors.

He explained that the national economic transformation opens horizons for investors and innovative creativity, calling on Italian investors to be part of this.

"Italian investors with expertise, experience, and innovation are invited to be a part of our transformation," the minister added.

Moreover, Jadaan indicated that Saudi Arabia is increasing its renewable energy resources and creating a series of services, creating great investment opportunities in the Kingdom.

Italy is a leading country in energy investment, said the minister, noting that Italian investors have the opportunity to participate in the Saudi economic transformation.

He addressed culture and tourism, noting that Saudi Arabia is making significant efforts to develop the two sectors by encouraging investors and creating long-term opportunities.

Speaking at the event, Italian Minister for Foreign Affairs and International Cooperation Luigi Di Maio stressed that his country is fully prepared to support Saudi Arabia's Vision 2030.

Riyadh and Rome share common interests and strategic priorities that have provided the foundations of a long-term relationship spanning more than nine decades, he remarked.

Italian high-tech companies will contribute to the Kingdom's goals of achieving a more diversified economy, especially in sustainability and energy transition, he continued.

Di Maio acknowledged the Saudi achievements in transforming society and business, asserting that Italy is fully prepared to provide the support the Kingdom needs to implement its reforms.

At the forum, representatives of the private sector emphasized a large number of investment opportunities, leveraging the human and natural resources boasted by their countries and developing programs for partnerships in the economic, commercial, and industrial fields.

Several agreements between Saudi and Italian companies to launch joint businesses were signed at the forum.

Chairman of the Saudi-Italian Business Council, Kamel al-Munajjed, said the efforts made in economic transformation have gone a long way in converting the Saudi economy from an oil-based economy to a prosperous knowledge-based economy.

The economy provided opportunities for millions of Saudi youths, mobilizing untapped potentials in revitalizing the entire society with the dynamism and stimulus the Kingdom's economy enjoys.

Munajjed explained that Vision 2030 contributed to creating innovative job opportunities, placing the Kingdom at the forefront of the green economy countries through the initiatives and renewable energy projects.

He called on Italian investors and companies to double the trade exchange, which ranges from $7 to $8 billion annually, urging the authorities in the two countries to support the partnerships through agreements that prevent double taxation and protect the investment.

He pointed out that Italy is the Kingdom's top partner in the small and medium-sized companies.

Furthermore, he noted that Italy could explore vast potential and opportunities in archaeology and cultural and tourism projects in AlUla.

Italian banks and investment companies are welcome to launch their business in the Saudi market, said Munajjed.

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities.

With a focus on finance, infrastructure and mobility, tourism and culture, and renewable energy, the forum featured interactive presentations spotlighting how a world of opportunity awaits Italian investors as Saudi Arabia's globally recognized reform agenda continues to progress.

The forum concluded with bilateral business meetings and the opportunity for Italian investors to explore the world-leading support services available from Invest Saudi, the Kingdom's investment promotion platform.



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.