عربي English Türkçe اردو فارسى
Logo
Latest News
Business

French Companies Eye Investment Opportunities in Saudi Security, Defense

Meeting with the French companies at the Federation of Saudi Chambers (SPA)
Meeting with the French companies at the Federation of Saudi Chambers (SPA)
    Riyadh, Tokyo – Asharq Al-Awsat
TT
TT

French Companies Eye Investment Opportunities in Saudi Security, Defense

Meeting with the French companies at the Federation of Saudi Chambers (SPA)
Meeting with the French companies at the Federation of Saudi Chambers (SPA)

Federation of Saudi Chambers hosted a delegation of 18 French companies specialized in security and defense-related fields to discuss cooperation, partnership, and investment with the Saudi business sector.

The Head of the Saudi-French Business Council, Mohammed bin Laden, praised the partnership approach between the council and Business France, the national agency supporting the international development of the French economy.

Bin Laden called for boosting bilateral Saudi-French economic and trade relations, explaining that the Kingdom witnessed a significant transformation at all levels since the announcement of Vision 2030.

He indicated that Saudi Arabia now has become a land of investment opportunities, encouraging the French side to take advantage and participate in the ambitious vision projects.

For his part, the Deputy Governor of Military Acquisition at the General Authority for Military Industries (GAMI), Mohammed al-Athel, said that the authority aimed to localize 50 percent of the Kingdom's spending on military equipment and services.

The authority was established in 2017 and is mandated with empowering the defense industries sector, making it an essential tributary for the national economy, providing job opportunities for Saudi youth, and an engine for non-oil revenues.

The CEO of the Saudi Arabian Military Industries (SAMI), Walid Abukhaled, explained that the company succeeded in entering the list of the 100 largest companies specializing in defense industries.

Abukhaled expected the company to become among the top 25 companies by 2030 and it is concerned with developing, supporting, and enhancing military industries in the Kingdom.

It plays a significant role in supporting the localization of 50 percent of its military spending, among the most prominent goals of Vision 2030.

During the meeting, the head of the French delegation, Commercial Counselor at the French Embassy in Riyadh, Rachid Boulaouine, confirmed that the visit of the French trade mission to the Kingdom comes to discuss the participation of French companies' expertise in the projects and opportunities of Vision 2030, and the localization of industries in the military and defense industries sector.

The French delegation includes 18 French companies specialized in security and defense and looked forward to learning more about the security sector market in the Kingdom, the opportunities available there, and the possibility of forming partnerships with Saudi counterparts.

Meanwhile, the Saudi Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, accompanied by a delegation, continues his tour in Japan, where he was briefed on smart cities, their industry, and the provision of technical solutions and creative ideas in this field.

Hogail met with a delegation from Toyota Motors Corporation to view offers in several specialized fields and studied what could be adopted to enhance mutual understanding between the two countries in all sectors and areas.

The Minister pointed to the technical and human capabilities of smart cities, innovation cities, and Japanese companies, stressing that it is vital to benefit from them by finding strategic partnerships that help improve the quality of services and launch with more significant acceleration.

The visit was part of the Minister's Asian tour, during which he met several ministers and prominent figures and witnessed the signing of several agreements.

Most Viewed

 
 
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
TT
TT

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
TT
TT

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).
TT
TT

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.