Saudi Arabia, Türkiye Agree to Create Favorable Business Environment, Empower Private Sector

Crown Prince Mohammed bin Salman meets with President Recep Tayyip Erdogan at the al-Salam Palace in Jeddah (SPA)
Crown Prince Mohammed bin Salman meets with President Recep Tayyip Erdogan at the al-Salam Palace in Jeddah (SPA)
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Saudi Arabia, Türkiye Agree to Create Favorable Business Environment, Empower Private Sector

Crown Prince Mohammed bin Salman meets with President Recep Tayyip Erdogan at the al-Salam Palace in Jeddah (SPA)
Crown Prince Mohammed bin Salman meets with President Recep Tayyip Erdogan at the al-Salam Palace in Jeddah (SPA)

Saudi Arabia and Türkiye stressed the importance of enhancing cooperation between the two sides in the economic, trade, and investment fields by reviewing the significant challenges facing the global economy and the role of Saudi Arabia and Turkiye in addressing them.

Crown Prince Mohammed bin Salman bin Abdulaziz met with Turkish President Recep Tayyip Erdogan at the Royal Court at al-Salam Palace in Jeddah.

During the meeting, they conducted official talks, reviewing the historical relations between the two brotherly countries and discussing ways to enhance them.

They also exchanged views on the current regional and international situation.

The Crown Prince congratulated President Erdogan on his recent election victory in Turkiye.

The Turkish delegation appreciated the efforts of the Saudi government, the Custodian of the Two Holy Mosques, and the Crown Prince in serving the Two Holy Mosques, pilgrims, Umrah performers, and visitors.

They commended the high level of coordination between the two countries, which contributed to the comfort of Turkish pilgrims.

Furthermore, the Turkish side expressed gratitude for the support extended by the Kingdom of Saudi Arabia following the catastrophic earthquake that occurred on February 6, 2023.

Both parties praised the positive outcomes of the Crown Prince's visit to Turkiye in June 2022 and the President of Turkiye's visit to Saudi Arabia in April 2022.

The visits expanded cooperation between the two nations across various fields and strengthened their close relations.

A joint statement was issued after the official visit of Erdogan to Saudi Arabia.

They emphasized the importance of accelerating cooperation in the commercial and investment sectors, underscoring their commitment to supporting opportunities for economic integration in various targeted sectors, such as infrastructure, construction, engineering, environment, and renewable energy.

The two sides discussed strategies to enhance and diversify intra-trade by fostering communication between the private sectors of both countries.

They focused on developing an enabling investment environment for the private sector and exploring prominent investment opportunities, including empowering the private sector, creating a favorable business environment, equipping with necessary capabilities, and addressing any challenges they may face.

Both parties stressed the private sector's pivotal role in strengthening economic relations and reaching higher levels of cooperation.

The statement commended the outcomes of the Saudi-Turkish Investment Forum, which took place during the visit of the Saudi Minister of Investment in December 2022.

The Investment Forum saw participation from over 280 prominent Saudi and Turkish companies, signing 12 agreements and memoranda of understanding (MoU) across the government and private sectors.

Both sides also welcomed the upcoming Saudi-Turkish Investment Forum (focused on tourism) scheduled to be held in Istanbul in August 2023.

They emphasized the significance of maintaining stability in global energy markets.

Türkiye appreciated the Kingdom's role in supporting the balance of global oil markets, which serves the interests of both producing and consuming countries and promotes sustainable economic growth.

They expressed a mutual desire to strengthen cooperation in the energy field, including renewable energy, including initiatives such as electrical interconnection between the two countries, exporting electricity from the Kingdom to Turkiye and Europe, energy efficiency, innovation, clean technologies for hydrocarbon resources, and low-carbon fuels, including hydrogen.

The talks also addressed opportunities for cooperation in the peaceful use of nuclear energy and its regulatory aspects and enhancing collaboration in developing projects and supply chains in the energy sectors to ensure their sustainability.

Moreover, both sides underscored the importance of enhancing cooperation in various energy-related fields. It includes the supply of petroleum, petroleum derivatives, and petrochemicals.

Discussions were held on potential joint venture opportunities across the entire petrochemical sector value chain, including innovative and specialized uses of hydrocarbons.

The two sides stressed the importance of finalizing the procedures for activating the Saudi-Turkish Coordination Council. Both sides affirmed the need to work together to develop joint projects and initiatives within the framework of the Council.

Both reaffirmed the significance of adhering to the UN Framework Convention on Climate Change principles and the Paris Agreement.

Turkiye expressed its support for the Kingdom's endeavors in addressing climate change.

They acknowledged the importance of cooperation in developing circular carbon economy applications.

It involves promoting policies that employ the circular carbon economy as a tool to manage emissions and work towards achieving climate change objectives while considering individual priorities and varying national circumstances.

The two sides stressed strengthening cooperation in the industrial and mining sectors, working to activate the signed MoU in the fields of export and import, attracting investments in the industrial sector, and enhancing future areas of cooperation in the industrial and metal sector.

Both sides welcomed the private sector's involvement in investment partnerships in the agriculture and food industries.

They agreed on the importance of cooperation in the environment, water, agriculture, and food security.

The two sides wanted to strengthen cooperation and partnership in telecommunications, technology, the digital economy, innovation, and space.

They also stressed the importance of activating and strengthening cooperation in the various fields of transport and logistics and discussed increasing the number of flights between the two countries.

The two delegations expressed their determination to enhance cooperation and coordination in the defense and military industry and activate the agreements signed between them to serve common interests and contribute to achieving regional and global security and peace.

The two sides agreed on strengthening existing security cooperation and coordination on combating all forms of crimes, enhancing cooperation in tackling terrorism and extremism, and exchanging information, expertise, and training in a way that contributes to achieving security and stability in the two countries.

They affirmed their determination to strengthen cooperation in combating cross-border corruption crimes in all its forms and their keenness to enhance effective communication between concerned authorities, especially in investigating corruption cases.

The two sides also confirmed the importance of strengthening cooperation against violent extremism, which leads to terrorism, extremism, hatred discourse, and terrorism in all its forms and manifestations, and the importance of spreading the culture of moderation and tolerance.

The two sides expressed aspirations to enhance cooperation in tourism, sustainable tourism, and tourism development between the two countries, explore tourism attractions in each country, and exchange expertise in industry development.

The Saudi and Turkish sides expressed their aspirations to enhance cooperation in scientific and educational fields, encourage their universities to bolster direct relations, increase research and scientific cooperation levels in vital areas, use modern technologies in education, conduct joint research, and develop educational materials, e-learning, and distance learning.

They discussed opportunities to develop media cooperation in radio and television, news sharing, and exchange of visits between the two countries.

In the health field, the two sides expressed keenness to enhance cooperation supporting global initiatives to combat current and future pandemics, risks, and challenges.

They also agreed to work with international organizations and G20 countries to face global health challenges, cooperate in developing vaccines, medicines, and diagnostic tools and coordinate global efforts to combat antimicrobial resistance.

The Turkish side welcomed the Kingdom's hosting of the Fourth Ministerial Conference on Antimicrobial Resistance (AMR), scheduled to be held in November 2024.

The two sides stressed the importance of cooperation and coordination between the two countries in international forums and organizations such as the International Monetary Fund (IMF), the World Bank, and the G20 to support international efforts in facing global economic challenges.

They welcomed signing the executive plan for cooperation in defense capabilities, industries, research and development, two acquisition contracts between the Ministry of Defence and the Turkish defense firm Baykar, MoU for collaboration in direct investment, media, and energy.

They also lauded the signing of nine memoranda of understanding between both countries public and private sectors during the Saudi-Turkish Investment Forum, held on the sidelines of the visit.

Both parties are determined to continue coordinating and increasing their efforts to uphold international peace and security.

The parties discussed various regional and global issues of mutual concern. They emphasized their commitment to strengthening cooperation and coordination to promote regional and international peace and stability.

Furthermore, the two sides once again condemned the deliberate abuse of the Holy Quran. They emphasized the significance of concerted efforts to promote values such as dialogue, tolerance, coexistence, and the rejection of hatred and extremism.

The two sides addressed the Yemeni issue and underscored the importance of fully supporting the UN and regional initiatives to achieve a comprehensive political solution to the Yemeni crisis.

The Turkish delegation praised the Kingdom's extensive efforts and initiatives in promoting dialogue and reconciliation among the Yemeni parties and its role in facilitating the delivery of humanitarian aid to all regions of Yemen.

Both parties expressed their unwavering support for the Presidential Leadership Council of Yemen.

They also commended the UN's efforts to strengthen compliance with the ceasefire and stressed the importance of the Houthis engaging constructively with international and UN efforts to end the Yemeni crisis.

The Turkish side welcomed the resumption of diplomatic relations between the Kingdom and Iran, hoping it would strengthen regional security and stability in a way that preserves the sovereignty of states and non-interference in their internal affairs.

The two sides stressed the importance of Iran's adherence to the peaceful nature of its nuclear program, transparent cooperation with the International Atomic Energy Agency (IAEA), and active participation in comprehensive negotiations involving regional countries.

The negotiations addressed the sources of threats to regional and international peace and security.



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.


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.


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.