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Saudi Arabia, Türkiye Agree to Expand Exports

Saudi Investment Minister Khalid al-Falih concluded a visit to Türkiye during which he agreed with Turkish officials to expand the export and import movement. (SPA)
Saudi Investment Minister Khalid al-Falih concluded a visit to Türkiye during which he agreed with Turkish officials to expand the export and import movement. (SPA)
    Muscat, Istanbul - Asharq Al-Awsat
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Saudi Arabia, Türkiye Agree to Expand Exports

Saudi Investment Minister Khalid al-Falih concluded a visit to Türkiye during which he agreed with Turkish officials to expand the export and import movement. (SPA)
Saudi Investment Minister Khalid al-Falih concluded a visit to Türkiye during which he agreed with Turkish officials to expand the export and import movement. (SPA)

Saudi Investment Minister Khalid al-Falih concluded a visit to Türkiye during which he agreed with Turkish officials to expand the export and import movement and announced the first direct financing agreement for Saudi non-oil exports.  

Saudi Export-Import Bank signed a $26 million financing line agreement with Türkiye Finans Katilim Bank to finance Saudi non-oil exports to Türkiye.  

The two agreements were signed by CEO of the Saudi Export-Import Bank, Saad al-Khalab, CEO of Türkiye Finans Katilim Murad Aksim and CEO of the Turkish Export Bank, Ali Koni.  

The agreements come within the framework of Saudi partnerships with Turkish financial institutions and within the Bank's aims to develop its local and foreign associations, provide sustainable financing solutions, and guarantee services that support the development of Saudi non-oil exports and enhance its competitiveness in global markets.  

Khalab explained that the two agreements were a step that strengthened bilateral relations and towards developing trade relations between the two countries.  

It also comes within the framework of the Bank's efforts to support Saudi exporters and importers in Türkiye with a package of financing and credit solutions and guarantee services that help the flow of Saudi products to Turkish markets and contribute to reducing export risks and bridging export financing gaps to Ankara.  

The Bank will conclude several upcoming agreements with local and international financing and credit institutions, which will positively impact Saudi exports and increase non-oil exports' contribution to supporting non-oil GDP from 16 percent to 50 percent by 2030, he added. 

For his part, Aksim described the agreement as a step to support trade relations between Saudi Arabia and Türkiye and a new opportunity to open investment horizons that benefit both countries.  

Koni indicated that the agreement represents a new phase in the trade movement between the Kingdom and Türkiye, stressing Ankara's keenness to develop areas of cooperation with the Bank and other Saudi financial institutions.  

He noted that both countries enjoy two distinct geographical locations in the international trade movement, and a good reputation in the global market, asserting that they were looking forward to boosting their position on the global economic map.  

Meanwhile, Saudi Minister of Commerce, Chairman of the Board of Directors of the General Authority for Foreign Trade, Majid al-Qasabi, met with several Omani ministers and officials during a visit to Muscat.  

Qasabi held bilateral meetings with Oman's Minister of Commerce, Industry, and Investment Promotion, Qais bin Mohammed al-Youssef, Foreign Minister Sayyid Badr bin Hamad al-Busaidi, Finance Minister Sultan bin Salem al-Habsi, Minister of Information Abdullah bin Nasser al-Harrasi, and the head of Oman's Vision 2040 implementation follow-up unit Khamis al-Jabri.  

The Minister also met with Chairman of the Oman Chamber of Commerce and Industry Faisal al-Rawas, and President of the Small and Medium Enterprises Development Authority Halima al-Zaria.  

The meetings focused on boosting relations, trade exchange, cooperation, and promising opportunities that could arise from Vision 2030 and Oman's Vision 2040.  

Trade and investment relations between Saudi Arabia and Oman are witnessing significant development, as the neighbors share ambitious visions. The volume of trade exchange between them in the past five years reached $14 billion. 

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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.