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Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
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Saudi-Greek Partnership to Link Global Digital Economy through Data Cable

The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)
The signing ceremony of a Greek-Saudi agreement (Asharq Al-Awsat)

Saudi Arabia and Greece have revealed a strategic partnership between the private sectors in the two countries to work on a cable project that will ensure the smooth digital supply of data worldwide at a time when data traffic is growing by more than 30 percent.

The partnership was announced during the official visit of Crown Prince Mohammad bin Salman to Greece on Wednesday to hold and expand partnerships between the two countries in several fields.

The partnership comes through the leadership of the Saudi Telecom Company (STC) in the East to Med Data Corridor (EMC) project in collaboration with the Greek Telecom Company, the Greek General Energy Company, and the Cyprus Telecom Company.

The agreements will boost the Kingdom's position as a regional digital hub in line with Vision 2030, as Greece is the eastern data gateway to the European Union.

The project aims to position the two countries as an eastern digital station for Europe to reach the Middle East, Africa, and Asia, and the submarine cable comes as part of Greece's strategic digital transformation plan.

It is also part of the Kingdom's ambitions to consolidate its position as a digital hub center at the regional and global levels by taking advantage of its advanced digital infrastructure, its developed cadres and institutions, and geographical location, which allows it to become an international digital hub center by linking East and West.

The project, if completed, will contribute to accelerating the growth of the global digital economy, which is estimated to reach $15 trillion, and supporting new industries and emerging markets based on innovative business models.

Notably, the geographical position of the Kingdom and its many ports have already qualified it to be a center of attraction for the digital economy and investment, as about ten percent of the global capacities of submarine cables pass through the Saudi territory.

Meanwhile, STC Group announced that Mena Hub, a premier digital hub, partnered with Greek telco TSSA to build the EMC undersea and land fiber optic data cable to link Europe with Asia.

The new project demonstrates STC's goal to provide ever-increasing global connectivity and data center capacity to the markets of Asia, Europe, and the rest of the world through Saudi Arabia, which sits at the geographic heart of these key economies.

With increasing digital connectivity comes the need to protect businesses and companies. Sirar, STC's cybersecurity arm, handles and addresses the current and future requirements as they arise.

STC Group CEO Olayan al- Wetaid noted that this vital signing represents another validation of the execution of the DARE2.0 strategy as "we build out our complete digital ecosystem at expanding scope, increasing scale and accelerating pace."

"We are pleased to be building our integrated system even further for the benefit of our clients and customers, as we look to further establish our digital credentials and contribute to Vision 2030 and become a leading digital company and regional digital hub linking three continents,” Wetaid said.

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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.