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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

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.

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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).
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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.