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Saudi Arabia Establishes New Railway to Reduce Carbon Emissions, Increase Carrying Capacity

The signing ceremony of a new railway service linking the north and east networks in Saudi Arabia (Asharq Al-Awsat)
The signing ceremony of a new railway service linking the north and east networks in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Establishes New Railway to Reduce Carbon Emissions, Increase Carrying Capacity

The signing ceremony of a new railway service linking the north and east networks in Saudi Arabia (Asharq Al-Awsat)
The signing ceremony of a new railway service linking the north and east networks in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia Railways (SAR) launched on Sunday a new railway service linking the north and east networks, passing through Jubail Industrial City to ship industrial materials and goods.

The Emir of Eastern Province, Prince Saud bin Naif inaugurated the railway project in the presence of the Minister of Transport and Logistics and SAR Chairman of the Board of Directors, Saleh al-Jasser, and Deputy Minister of Transport and Logistics Rumaih al-Rumaih.

SAR said that the new network aims to reduce carbon emissions, increase the carrying capacity of the freight train, support exports and the competitiveness of Saudi products.

The Railways added that this connection would contribute to providing integrated solutions and complete logistical services by linking the commercial and industrial ports in Dammam and Jubail with the train network.

SAR also said that the internal Jubail network would serve the industrial facilities in Jubail Industrial City that link it to the King Fahd Industrial Port and Jubail Commercial Port in Jubail.

It aims to promote traffic safety, reduce carbon emissions of other means of transportation, and increase the attractiveness of the local market through regional and international connectivity.

The Public Transport Authority indicated that the new project in Jubail will replace more than 200,000 trucks annually, which supports the logistic sector and preserves the environment and infrastructure.

The railway stimulates national industries and raises railway transport rates while integrating with other means of transport and improving the quality of life.

Meanwhile, Saudi Ports Authority (Mawani) signed two contracts worth $170 million with PC Marine Services and Modern Building Leaders (MBL) to deepen and build new berths at Jeddah Islamic Port

It comes within the framework of Mawani's initiatives to enhance the maritime transport and logistics sector and upgrade port operations by implementing over 160 projects in line with the National Transport and Logistics Strategy (NTLS).

The contract with MBL, in association with Huta Hegerfeld Saudia, will develop Jeddah Islamic Port's deepening of harbor approach channels, turning basins, waterways, and the south terminal basin.

These upgrades will enable the arrival of giant vessels with a capacity of up to 24,000 TEUs, besides attracting new global shipping lines to local shores.

Under the contract, PC Marine Services will build new berths (26 to 31) measuring 16 meters deep and 1,100 meters long at the multi-cargo terminals to receive large bulk grain carriers and accommodate larger vessels to cover the local market demand.

It also aims to secure the Kingdom's strategic reserve by increasing the amount of imported grain and enhancing the food security system through Jeddah Islamic Port.

Saudi ports are one of the most important economic and commercial tributaries and play a pivotal role in developing local, regional, and international trade.

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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.