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Saudi Arabia Acquires Turkish Drones

The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
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Saudi Arabia Acquires Turkish Drones

The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)
The Saudi Defense Minister during the signing of the agreement (Asharq Al-Awsat)

The Saudi Ministry of Defense has signed a memorandum of understanding with the Turkish company Baykar to acquire drones to bolster the Kingdom's defense and manufacturing capabilities.

Saudi Arabia and Türkiye signed five agreements encompassing investment, the defense industry, energy, and communications.

The agreements were signed in the presence of the Saudi Crown Prince and Prime Minister, Prince Mohammed bin Salman, and Turkish President Recep Tayyip Erdogan, who is visiting Riyadh.

Saudi Defense Minister Prince Khalid bin Salman announced signing an executive plan for defense cooperation with Türkiye's Minister of National Defense Yasar Guler.

Prince Khalid bin Salman announced the signing of two acquisition contracts between the Ministry of Defense and the Turkish company Baykar for defense industries, according to which the Saudi side will acquire unmanned aircraft to increase the armed forces' readiness and strengthen the Kingdom's defense and manufacturing capabilities.

The Minister announced that he signed a defense cooperation plan with his Turkish counterpart, in line with the two friendly countries' military and defense cooperation efforts.

- Exchange of expertise

On Tuesday, the Saudi Ministry of Defense stated that the executive plan aims to promote collaboration between the defense ministries of both countries in various areas, such as defense capabilities, industries, research and development, production, and the exchange of experiences.

It also emphasizes bilateral cooperation in joint projects to transfer and localize technologies, support defense industries, and foster collaboration in research and development.

According to the Ministry of Defense, the two acquisition contracts signed with Baykar aim to boost the armed forces' readiness and enhance the Kingdom's defense and manufacturing capabilities.

The acquisition contracts also prioritize the localization of the drone industry and its constituent systems within the Kingdom. National companies specializing in military and defense industries will actively participate in this localization effort.

The contracts encompass provisions for training, support services, technology and knowledge transfer, and the development of local capabilities.

The acquisitions are expected to create job opportunities for Saudi youth, enhance local capacities, and contribute to the Kingdom's vision of localizing over 50 percent of total military spending by 2030.

The executive plan for defense cooperation and the acquisition contract confirm the Ministry of Defense's support and embodies the Kingdom's Vision that aims to localize military industries in manufacturing and supporting systems.

Baykar said the deal includes knowledge transfer and joint production.

"This cooperation aims not only to strengthen the bond between our countries but also contribute to regional and global peace," Baykar said in a press release.

Baykar added that 75 percent of its revenue has come from exports since it began drone research and development in 2003.

- Contracting sector

Meanwhile, the head of the Independent Industrialists and Businessmen Association (Musiad), Mahmut Asmali, asserted that the support of the two governments in creating the investment environment enhances building alliances between Saudi and Turkish companies.

Asmali told Asharq Al-Awsat that Saudi Arabia and Türkiye are the region's two most important Islamic countries, considering the development of these relations and the signing of such agreements between businessmen to enhance inter-relationships and investments.

Saudi Arabia has set several goals for 2030 that include large economic projects, said Asmali, stressing that officials and companies in Türkiye are aware of these projects.

He stressed the readiness of Turkish companies to cooperate with their Saudi counterparts to achieve Vision 2030, especially in the contracting sector.

Asmali announced the readiness to transfer Turkish expertise to Saudi partners in several industries, including foodstuffs, tourism, technology, and modern technologies.

He announced that 200 Turkish companies in various sectors participated in the Saudi-Turkish Business Forum held in Jeddah on Monday.

The Forum was launched by the Investment Minister, Khalid al-Falih, and the Turkish Minister of Trade, Omar Bolat.

It included representatives from companies and the private sector from both sides to expand and strengthen trade and investment relations between the two countries.

The Forum witnessed the signing of nine memorandums of understanding, including energy, real estate, construction, education, digital technologies, health, and media.

Falih said that the Saudi-Turkish economic partnership has great potential and is a main engine for boosting investments between the two countries.

He stated that the Forum aims at cooperation and partnership to review the investment opportunities in both countries.

He touched on the National Investment Strategy to enable diversified investments, develop opportunities, improve the business environment, and boost the Kingdom's competitive position on the global investment map.

The Turkish Minister of Trade stated that the Kingdom and Türkiye are emerging economic powers with significant competitive advantages.

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Business

Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program
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Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco announced on Wednesday that its supply chain transformation program, iktva (In-Kingdom Total Value Add), has achieved its target of reaching 70% local content.

Building on this milestone, the company said that it plans to increase local content in its goods and services procurement to 75% by 2030.

Since its launch, the iktva program has contributed more than $280 billion to the Kingdom’s gross domestic product, reinforcing its role as a key driver of industrial development, economic diversification, and long-term financial resilience.

Through the localization of goods and services, the program has strengthened the resilience and reliability of Aramco’s supply chains, enhanced operational continuity, reduced supply chain vulnerabilities, and provided protection against global cost inflation - capabilities that proved critical during periods of disruption.

Aramco President and CEO Amin Nasser expressed pride in the scale of transformation achieved through iktva and its positive impact on the Kingdom’s economy, noting that the announcement represents a major milestone in the program’s journey and reflects a significant leap in Saudi Arabia’s industrial development, fully aligned with the Kingdom’s national vision.

“iktva is a core pillar of Aramco’s strategy to build a competitive national industrial ecosystem that supports the energy sector while enabling broader economic growth and creating thousands of job opportunities for Saudi nationals,” he stressed.

By localizing supply chains, the program ensures operational reliability and mitigates disruptions that may affect global supply chains, he added, noting that its cumulative impact over a decade demonstrates the sustained value it continues to generate.

Over the past decade, iktva has emerged as a leading example of supply-chain-driven economic transformation, converting Aramco’s project spending into domestic economic multipliers that have created jobs, improved productivity, stimulated exports, and strengthened supply chain resilience.

The program has identified more than 200 localization opportunities across 12 key sectors, representing an annual market value of $28 billion. These opportunities have translated into tangible investment outcomes, catalyzing more than 350 investments from 35 countries in new manufacturing facilities within the Kingdom, supported by approximately $9 billion in capital. These investments have enabled the local manufacture of 47 strategic products in Saudi Arabia for the first time.

iktva has also contributed to the creation of more than 200,000 direct and indirect jobs across the Kingdom, further strengthening the local industrial base and national capabilities. To support continued growth, the program organized eight regional supplier forums worldwide in 2025, in addition to its biennial forum. These events helped connect global investors, manufacturers, and suppliers with localization opportunities in Saudi Arabia.

Business

AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
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AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo

Malaysian budget carrier AirAsia X on Wednesday unveiled plans to resume flights from Kuala Lumpur to London via a new hub in Bahrain, using the extended range of narrow-body jets to stitch fresh routes alongside established carriers.

The service, due to start in June, would make Bahrain AirAsia X's first hub outside Asia, placing it within reach of busy markets in Southeast Asia, the Middle East and Europe.

It also marks a ‌return to ‌the British capital more than a decade after the airline suspended ‌non-stop ⁠flights from Kuala Lumpur ⁠and retired its Airbus A340 jets.

Co-founder Tony Fernandes said Bahrain could become a regional gateway for underserved secondary cities across Asia, Africa and Europe.

"While ... of course London is a very emotional destination for many people in Southeast Asia, the real aim is to have a bunch of A321s flying maybe 15 times a day to Bahrain," he told Reuters in an interview.

"From Bahrain, you connect to Africa and Europe with a big emphasis ⁠on creating connectivity that doesn't exist."

The move follows Asia's ‌largest low-cost carrier completing its acquisition of the short-haul ‌aviation business from parent Capital A, bringing the group's seven airlines under one umbrella.

Fernandes, also CEO ‌of Capital A, stressed the importance of the Airbus A321XLR, an extra-long-range narrow-body aircraft ‌he said would let the airline replicate its Asian low-cost model on intercontinental routes.

"That aircraft enables me to start thinking we can do what we did in Asia to Europe and Africa," he said, citing potential secondary routes such as Penang to Cologne or Prague.

AirAsia plans to ‌redeploy its larger A330s to longer routes while building up the Bahrain hub, with possible African destinations including the Maghreb region, Egypt, ⁠Morocco, Tanzania and Kenya. ⁠A Bangkok-to-Europe route is also under consideration.

Fernandes played down direct competition with Gulf carriers such as Emirates and Qatar Airways, positioning AirAsia X as a budget option aimed at a different market.

"I'm all about stimulating a new market," he said. "We've got into our little playground (of) 3 billion people, most of them have not been to Europe."

Business

Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
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Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)

The EU must "tear down the barriers" that prevent it from becoming a truly global economic giant, European Commission chief Ursula von der Leyen said Wednesday, ahead of leaders' talks on making the 27-nation bloc more competitive.

"Our companies need capital right now. So let's get it done this year," the commission president told EU lawmakers as she outlined key steps to bridging the gap with China and the United States.

"We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant," she said, calling the current system "fragmentation on steroids."

Reviving the moribund EU economy has taken on greater urgency in the face of geopolitical shocks, from US President Donald Trump's threats and tariffs upending the global trading to his push to seize Greenland from Denmark.

AFP said that Von der Leyen delivered her message before heading with EU leaders including France's Emmanuel Macron and Germany's Friedrich Merz to a gathering of industry executives in Antwerp, held on the eve of a summit on bolstering the bloc's economy.

A key issue identified by the EU is the fact that European companies face difficulties accessing capital to scale up, unlike their American counterparts.

To tackle this, Plan A would be to advance together as 27 states, von der Leyen said, but if they cannot reach agreement, the EU should consider "enhanced cooperation" between those countries that want to.

Von der Leyen said Europe should ramp up its competitiveness by "stepping up production" on the continent and "by expanding our network of reliable partners", pointing to the importance of signing trade agreements.

After recent deals with South American bloc Mercosur and India, she said more were on their way -- with Australia, Thailand, the Philippines and the United Arab Emirates.

One of the biggest -- and most debated -- proposals for boosting the EU's economy is to favor European firms over foreign rivals in "strategic" fields, which von der Leyen supports.

"In strategic sectors, European preference is a necessary instrument... that will contribute to strengthen Europe's own production base," she said -- while cautioning against a "one-size-fits-all" approach.

France has been spearheading the push, but some EU nations like Sweden are wary of veering into protectionism and warn Brussels against going too far.

The EU executive will also next month propose the 28th regime, also known as "EU Inc", a voluntary set of rules for businesses that would apply across the European Union and would not be linked to any particular country.

Brussels argues this would make it easier for companies to work across the EU, since the fragmented market is often blamed for why the economy is not better.

The commission is also engaged in a massive effort to cut red tape for firms, which complain EU rules make it harder to do business -- drawing accusations from critics that Brussels is watering down key legislation on climate in particular.