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NEOM Advances Saudi Trends for Investing in Quality Infrastructure

THE LINE will run on 100 percent renewable energy and prioritize people's health and well-being over transportation and infrastructure as in traditional cities (Asharq Al-Awsat)
THE LINE will run on 100 percent renewable energy and prioritize people's health and well-being over transportation and infrastructure as in traditional cities (Asharq Al-Awsat)
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NEOM Advances Saudi Trends for Investing in Quality Infrastructure

THE LINE will run on 100 percent renewable energy and prioritize people's health and well-being over transportation and infrastructure as in traditional cities (Asharq Al-Awsat)
THE LINE will run on 100 percent renewable energy and prioritize people's health and well-being over transportation and infrastructure as in traditional cities (Asharq Al-Awsat)

Saudi Arabia's orientation towards intensifying investment in qualitative development of infrastructure and expanding the base of manpower and skilled minds is evident in the designs of NEOM’s project The Line, experts told Asharq Al-Awsat.

On Monday, Crown Prince Mohammed bin Salman, who is also the chairman of the NEOM Board of Directors, announced the designs of The Line, the city of the future in NEOM.

The Crown Prince revealed that flagship project NEOM, a huge economic zone eventually meant to house nine million people, will be partly financed through a flotation expected in 2024.

Speaking to journalists after announcing the designs of The Line city in the $500 billion NEOM project, the Crown Prince said the offering process will add to the size of the Saudi stock market at least $320 billion (1.2 trillion riyals) at the beginning, and the total will increase after the completion of the project above $1.3 trillion (five trillion riyals).

The Crown Prince explained that the first phase of “The Line” will involve $320 billion (1.2 trillion riyals) until 2030, and there will be government support worth $53 billion to $80 billion (200 to 300 billion riyals), pointing out that government support differs from the fund's investment, which amounts to about $133 billion (500 billion riyals).

He added that work is still underway on the internal interest rate, which is likely to be from 9% to 16%, indicating that NEOM aims in the end at a return on investment of 13%-14%.

Moreover, the goal for 2030 is to have 50 million people -- half Saudis and half foreigners -- living in the Kingdom, up from roughly 34 million today.

Majid Al Hokair, General Manager and CEO of Abdul Mohsin Al Hokair Company, told Asharq Al-Awsat that the The Line project is racing against time with its impressive designs that simulate the future of humanity.

Hokair said that the project’s designs represent a civil revolution and speak to Saudi Arabia’s progress in the field of qualitative development and expansion of the base of manpower and skilled minds.

The Line will eventually accommodate nine million residents and will be built on a footprint of 34 square kilometers, which is unheard of when compared to other cities of similar capacity. This in turn will reduce the infrastructure footprint and create never-before-seen efficiencies in city functions.

According to Hokair, The Line’s designs are aligned with the Kingdom’s goals of attracting 100 million visitors by 2030.

Hokair added that the project is characterized by its strategic location and suitable terrain.

Also, it takes advantage of the latest technologies, construction, and manufacturing processes with the concept of digital transformation, to achieve the ideal standards of living and address the challenges facing humanity.

Muhammad Al-Shamimary, Director General of the Muhammad Al-Shamimary Financial Consulting Office, said that NEOM will add to the Saudi market a significant value of about 1.2 trillion rials ($320 billion dollars).

Al-Shamimary noted that NEOM’s IPO will bring back the memory of the largest IPO in history, made by Saudi Aramco, whose market value today reached 8.5 trillion riyals ($2.2 trillion).

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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.