Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
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Saudi Arabia Launches Modern Silk Road to Promote Arab-Chinese Investments

 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)
 Saudi Minister of Foreign Affairs Prince Faisal bin Farhan (Asharq Al-Awsat)

Based on the Kingdom’s endeavor to exploit its geographical location to link the Arab world with China, Riyadh announced the launching a modern Silk Road to achieve a comprehensive renaissance for countries and peoples of the region and create diverse and promising opportunities.

On behalf of Saudi Crown Prince Mohammad bin Salman bin Abdulaziz, the Saudi minister of Foreign Affairs, Prince Faisal bin Farhan bin Abdullah, inaugurated on Sunday the 10th session of the Arab-China Business Conference in Riyadh, under the slogan, “Investment and Financing through the Belt and Road Initiative”.

- Exchange of experiences

The foreign minister highlighted Saudi Arabia’s keenness to raise the level of cooperation and strengthen the long-standing partnership in all vital investment fields between the Arab countries and China.

According to Prince Faisal bin Farhan, the conference is an opportunity to work on advancing and consolidating the historical Arab-Chinese friendship, and building a common future towards a new era that serves the people’s interests and maintains peace and development in the world.

The Saudi foreign minister added that the event underlined the importance, potential, and common visions that lie in the investment and trade relations between the Arab world and China. He stressed that mutual compatibility, exchange of experiences and the launching of new opportunities for growth and investment would achieve progress and prosperity for the peoples of the region and the world.

- Trade exchange

Bin Farhan touched on the successful historic visit of Chinese President Xi Jinping to Riyadh at the end of 2022, which he said further strengthened the ties between the two countries in all political, economic and investments fields.

He added that the visit coincided with the launch of the first China-Arab summit and the Chinese-Gulf summit, which both yielded positive results and saw the signing of many agreements and memorandums of understanding worth more than $50 billion, covering a range of sectors.

He continued that China was the largest trading partner of the Arab countries, revealing that the total volume of trade exchange between the two sides reached $430 billion last year, with a growth rate of 31 percent, compared to 2021.

The minister also noted that the Kingdom represented 25 percent of the total trade exchange between China and the Arab countries, with a total value of $106.1 billion in 2022, an increase of 30 percent compared to 2021.

- Sustainable partnerships

For his part, Eng. Khaled Al-Falih, Minister of Investment, said that the conference, which is held under the patronage of Crown Prince Mohammed bin Salman, reflected the interest of the leaders of the Arab world in strengthening relations with China and expanding the successes achieved in the political and diplomatic corridors to forge sustainable partnerships.

According to the investment minister, the Arab world enjoys civilizational and cultural elements, as well as human and natural resources, which qualifies it to assume an advanced and leadership position, and to achieve a comprehensive renaissance for countries and peoples in all fields.

- Development strategies

Al-Falih continued: “Being the largest economy in the Middle East and the fastest growing in the world over the past year, we are today committed to serving as a bridge connecting the Arab world with China, and contributing to the growth and development of their relations. Our hosting of this crowd of distinguished leaders from all over the Arab world, and from Beijing, is evidence on that.”

He also stated that among of the most important engines of growth in Saudi Arabia were the economic development strategies, which are based on a distinct national vision and strong executive plans and programs. In this context, the minister stressed that the Kingdom constituted a model that would prepare the Arab region for the future.

- Energy exports

The Saudi minister of investment welcomed China’s engagement in this renaissance, which he said would create huge opportunities in the future for economic, trade and investment cooperation.

He continued that this integration was evident in the exceptional growth of mutual trade between China and the Arab countries, as energy exports from the Arab world contributed to advancing the industrial development in China. In contrast, goods manufactured in Beijing reached every home, office, and factory in Arab countries, Al-Falih remarked.

According to the Saudi investment minister, the growth of mutual trade and the compatibility of needs and capabilities created many diverse and promising opportunities for investment, adding that time has come for Beijing to be a major investment partner in the development process taking place in the Arab region.

- Foreign investment

Al-Falih said that foreign direct investment from China abroad has grown at a rate of 20 percent annually over the past decade, bringing the share of the Arab world to about $23 billion.

There is still a possibility to increase investment flows in the other direction and to take advantage of the big and thriving Beijing market, he underlined.

Arab-Chinese Summit

For his part, Ahmed Aboul Gheit, Secretary-General of the Arab League, stated that Saudi Arabia’s hosting of this major conference comes as a continuation of its successful efforts since the holding of the Arab-Chinese Summit last year in Riyadh, which he said gave a new impetus to bilateral cooperation in various fields.

- Arab investment climate

Aboul Gheit pointed to the importance of the conference in introducing entrepreneurs to the available investment opportunities. He noted that this would contribute to economic development in the Arab world and China, and help to explore the best ways to maximize the available prospects and capabilities for the Arab and Chinese sides.

- Strategic partnerships

For his part, Hu Chunhua, Vice Chairman of the Political Consultative Conference in China, expressed his country’s readiness to work with Arab countries to implement the results of the first Chinese-Arab summit, and to build a joint strategic partnership at a higher level.

He also emphasized the Chinese-Arab strategic cooperation, which he said is witnessing continuous development and has become a model for countries to enhance mutual trade and investment, thanks to the guidance of the leaders.



Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
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Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)

Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), announced that spending by the sovereign fund’s programs, initiatives, and companies on local content reached 591 billion riyals ($157 billion) between 2020 and 2024.

He added that the fund’s private sector platform has created more than 190 investment opportunities worth over 40 billion riyals ($10 billion).

Speaking at the opening of the PIF Private Sector Forum on Monday in Riyadh, Al-Rumayyan said the fund is working closely with the private sector to deepen the impact of previous achievements and build an integrated economic system that drives sustainable growth through a comprehensive investment cycle methodology.

He described the forum as the largest platform of its kind for seizing partnership and collaboration opportunities with the private sector, highlighting the fund’s success in turning discussions into tangible projects.

Since 2023, the forum has attracted 25,000 participants from both public and private sectors and has witnessed the signing of over 140 agreements worth more than 15 billion riyals, he pointed out.

Al-Rumayyan emphasized that the meeting comes at a pivotal stage of the Kingdom’s economy, where competitiveness will reach higher levels, sectors and value chains will mature, and ambitions will be raised.

PIF Private Sector Forum aims to support the fund’s strategic initiative to engage the private sector, showcase commercial opportunities across PIF and its portfolio companies, highlight potential prospects for investors and suppliers, and enhance cooperation to strengthen the local economy.


Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
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Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)

Pakistani Finance Minister Muhammad Aurangzeb discussed the future of his country, which has frequently experienced a boom-and-bust cycle, saying Pakistan has relied on International Monetary Fund (IMF) programs due to the absence of structural reforms.

In an interview with Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb acknowledged that Pakistan has relied on IMF programs 24 times not as a coincidence, but rather as a result of the absence of structural reforms and follow-up.

He stressed the government has decided to "double its efforts" to stay on the reform path, no matter the challenges, affirming that Islamabad not only has a reform roadmap, but also draws inspiration from "Saudi Vision 2030" as a unique model of discipline and turning plans into reality.

Revolution of Numbers

Aurangzeb reviewed the dramatic transformation in macroeconomic indicators. After foreign exchange reserves covered only two weeks of imports, current policies have succeeded in raising them to two and a half months.

He also pointed out to the government's success in curbing inflation, which has fallen from a peak of 38 percent to 10.5 percent, while reducing the fiscal deficit to 5 percent after being around 8 percent.

Aurangzeb commented on the "financial stability" principle put forward by his Saudi counterpart, Mohammed Aljadaan, considering it the cornerstone that enabled Pakistan to regain its lost fiscal space.

He explained that the success in achieving primary surpluses and reducing the deficit was not merely academic figures, but rather transformed into solid "financial buffers" that saved the country.

The minister cited the vast difference in dealing with disasters. While Islamabad had to launch an urgent international appeal for assistance during the 2022 floods, the "fiscal space" and buffers it recently built enabled it to deal with wider climate disasters by relying on its own resources, without having to search "haphazardly" for urgent external aid, proving that macroeconomic stability is the first shield to protect economic sovereignty.

Privatization and Breaking the Stalemate of State-Owned Enterprises

Aurangzeb affirmed that the Pakistani Prime Minister adopts a clear vision that "the private sector is what leads the state."

He revealed the handover of 24 government institutions to the privatization committee, noting that the successful privatization of Pakistan International Airlines in December provided a "momentum" for the privatization of other firms.

Aurangzeb also revealed radical reforms in the tax system to raise it from 10 percent to 12 percent of GDP, with the adoption of a customs tariff system that reduces local protection to make Pakistani industry more competitive globally, in parallel with reducing the size of the federal government.

Partnership with Riyadh

As for the relationship with Saudi Arabia, Aurangzeb outlined the features of a historic transformation, stressing that Pakistan wants to move from "aid and loans" to "trade and investment."

He expressed his great admiration for "Vision 2030," not only as an ambition, but as a model that achieved its targets ahead of schedule.

He revealed a formal Pakistani request to benefit from Saudi "technical knowledge and administrative expertise" in implementing economic transformations, stressing that his country's need for this executive discipline and the Kingdom's ability to manage major transformations is no less important than the need for direct financing, to ensure the building of a resilient economy led by exports, not debts.


Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
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Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)

Oil prices fell 1% on Monday as immediate fears of a conflict in the Middle East eased after the US and Iran pledged to continue talks about Tehran's nuclear program over the weekend, calming investors anxious about supply disruptions.

Brent crude futures fell 67 cents, or 1%, to $67.38 a barrel on Monday by 0444 GMT, while US West Texas Intermediate crude was at $62.94 a barrel, down 61 cents, or 1%.

"With more talks on the horizon the immediate ‌fear of supply disruptions ‌in the Middle East has eased ‌quite ⁠a bit," IG ‌market analyst Tony Sycamore said.

Iran and the US pledged to continue the indirect nuclear talks following what both sides described as positive discussions on Friday in Oman despite differences. That allayed fears that failure to reach a deal might nudge the Middle East closer to war, as the US has positioned more military forces in the area.

Investors are also worried about possible disruptions to supply ⁠from Iran and other regional producers as exports equal to about a fifth of the world's ‌total oil consumption pass through the Strait of ‍Hormuz between Oman and Iran.

Both ‍benchmarks fell more than 2% last week on the easing tensions, their ‍first decline in seven weeks.

However, Iran's foreign minister said on Saturday Tehran will strike US bases in the Middle East if it is attacked by US forces, showing the threat of conflict is still alive.

"Volatility remains elevated as conflicting rhetoric persists. Any negative headlines could quickly reignite risk premiums in oil prices this week," said Priyanka Sachdeva, senior market analyst at ⁠Phillip Nova.

Investors are also continuing to grapple with efforts to curb Russian income from its oil exports for its war in Ukraine. The European Commission on Friday proposed a sweeping ban on any services that support Russia's seaborne crude oil exports.

Refiners in India, once the biggest buyer of Russia's seaborne crude, are avoiding purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, which could help New Delhi seal a trade pact with Washington.

"Oil markets will remain sensitive to how broadly this pivot away from Russian crude unfolds, whether ‌India’s reduced purchases persist beyond April, and how quickly alternative flows can be brought online," Sachdeva said.