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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: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.

Business

World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.

Business

Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
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Copper Falls, Set for Worst Week Since March on AI Rout

Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)
Copper at the Aurubis copper smelting and refining plant in Hamburg, Germany. (Reuters)

Copper dropped on Friday and was set for its biggest weekly drop in London since March, as a rout in technology stocks battered markets.

Benchmark three-month copper on the London Metal Exchange was down 1.3% at $13,663 a metric ton by 0700 GMT. That placed it on track to fall 3.44% in the week, Reuters said.

The most-traded copper contract on the Shanghai Futures Exchange fell 1.08% to 106,830 yuan ($16,018.17) a ton.

The weakness reflects worries over AI investment, ‌with copper increasingly ‌influenced by "sentiment towards data center expansion," said ‌Craig ⁠Lang, principal analyst ⁠at CRU.

Technology shares were battered after Democratic wins in the US midterms fueled concerns that new regulatory oversight could cap the AI buildout.

On the other hand, supply constraints cushioned copper's decline.

"I would be cautious about calling this a sustained correction, given ongoing mine supply challenges and exceptionally tight ⁠metal availability outside the US," Lang said.

Copper stocks ‌in SHFE-monitored warehouses <CU-STX-SGH> fell by ‌over 24% this week to just 33,848 tons — the lowest ‌in almost three years. The closely watched Yangshan copper ‌premium <SMM-CUYP-CN>, a gauge of appetite for imports into key consumer China, increased to $210 a ton on Thursday, matching its record high.

Smelters in the country are facing a double squeeze of negative treatment ‌charges and lower sulfuric acid prices.

Meanwhile, warehouse inventories outside the US have been drawn ⁠down as ⁠material was pulled into the country ahead of a potential tariff on imports of refined copper.

"These physical constraints should provide some support against weaker investor sentiment," Lang said.

Among LME metals, aluminium lost 0.54%, zinc lost 1.42%, lead lost 0.45%, nickel dipped 0.23% and tin gained 0.83%.

On the SHFE, aluminium nudged down only 0.04%, zinc lost 1.35%, lead was little changed, down only 0.03%, nickel rose 2.14% and tin dropped 3.45%.

SHFE inventories were down across the board this week, led by sharp drops in aluminium <AL-STX-SGH> and lead <PB-STX-SGH>.