Saudi Arabia Warns against Upcoming Economic Pressure

Economy, trade and investment ministers presented their ideas and strategies to adapt to the current global situation at the FII forum in Riyadh. (Photo: Bashir Saleh)
Economy, trade and investment ministers presented their ideas and strategies to adapt to the current global situation at the FII forum in Riyadh. (Photo: Bashir Saleh)
TT

Saudi Arabia Warns against Upcoming Economic Pressure

Economy, trade and investment ministers presented their ideas and strategies to adapt to the current global situation at the FII forum in Riyadh. (Photo: Bashir Saleh)
Economy, trade and investment ministers presented their ideas and strategies to adapt to the current global situation at the FII forum in Riyadh. (Photo: Bashir Saleh)

As the ongoing Future Investment Initiative forum in Riyadh is discussing ways to address the turbulent conditions and the immediate economic pressures in the world, economy, trade, and investment ministers presented their ideas and strategies to adapt to the current global situation.

- Proactive outlook

Eng. Khalid Al-Falih, the Saudi Minister of Investment, affirmed that his government has adopted a proactive outlook to counter accelerating challenges that have raised global concern. He listed three main challenges facing the world's governments, including long-term political and security transition, energy shift and transformation of trade and supply chains.

“Governments adapt and succeed in these turbulent times. The first realistic transition is the security and political shift. Of course, Europe is the main player in light of the Russian-Ukrainian crisis, while the matter moves to China and Taiwan.”

The Saudi minister continued: “We are starting to see that countries have started strengthening their national and international security, as these challenges may continue for years…”

Al-Falih considered that the transformation at the level of energy, oil and gas represented the second challenge, which he said was inevitable due to climate change. The European crisis will increase its pace and will pave the way for the shift towards other types of energy, such as hydrogen.

Moreover, the minister saw that the third challenge was the transformation of trade and supply chains in light of globalization.

The three challenges highlight the urgent need for countries, companies and individuals for guarantees and security, he underlined, explaining that countries were spending huge amounts on defense technology and industries, which have become essential given the current conditions.

- Investment cooperation

Al-Falih said: “I discussed with the Finnish Minister of Investment the means to exchange ideas and experiences and reviewed the expenditures that we provide for defense.”

He admitted that energy would become expensive, as renewable energy sources would require new networks and modern infrastructure.

“These matters are controlled by the economic transformation and cause high inflation, elevated interest rates and high subscriptions, all of which lead to reduced growth and income,” he warned, stressing the need to focus on growth and exploitation of opportunities in technologies and investments.

- Standby mode

For his part, Ville Skinnari, Finnish Minister of Development Cooperation and Foreign Trade, said: “The recent crises made us ready for all future crises, as we faced the pandemic, worked on comprehensive security and strengthened health care, so we became among the top 5 countries in terms of GDP.”

He added: “I see in the Investment Initiative forum, the commitment to a better future. This is what our governments are doing, as they focus on investments, the first of which investing in defense.”

He stressed that the forum constituted an opportunity to talk about the new era with partners, praising Saudi Arabia’s remarkable path of development and progress.

- Hong Kong and the capital

Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region, stressed that the Hong Kong system would continue to support capital, in the presence of an independent judicial system.

“We will maintain our dealings with the US dollar and Hong Kong will continue to function as a free and best legally regulated financial market and international financial center,” he told the conference.

He continued: “Despite some external pressures and challenges, we consider 2023 as the year of security and opportunities because we have a wealth of experience that makes us excel. We have an urban area in the southwestern region with 9 million people and a per capita income of 70,000 dollars annually… We are also seeing significant progress in neighboring cities.”

Chan added that Hong Kong’s financial policy enjoyed high flexibility in communicating with the world.



Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
TT

Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a press release issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the release, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the release, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The release disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.