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Türkiye to Expand Gas Export Hub to Europe, Resumes Iraqi Oil Flow

Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
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Türkiye to Expand Gas Export Hub to Europe, Resumes Iraqi Oil Flow

Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t

Türkiye believes its presence is indispensable to the success of energy and transport corridors in the region, revealing plans to expand its gas infrastructure to facilitate the transit of Russian gas to Europe.

Turkish Foreign Minister Hakan Fidan asserted that effective, sustainable operation of energy transportation corridors without Türkiye's involvement is not possible.

Speaking at the 10th World Turkish Business Council (DTIK) Congress in Istanbul, Fidan said: "We hope to move into the implementation phase of the Development Road project, which is of great importance for prosperity and stability in the Middle East within the next few months."

He highlighted ongoing intense negotiations with Iraq, the UAE, and Qatar about the project.

Fidan emphasized the significance of new trade routes, especially in light of recent geopolitical developments, including the COVID-19 pandemic, the Russo-Ukrainian war, and the rivalry between the United States and China, or more broadly, the West and China.

He noted that these developments have revived discussions of other trade routes previously considered theoretically, emphasizing that trade routes don't merely cater to commerce but also reflect geostrategic competition.

- A gas hub

Meanwhile, Energy Minister Alparslan Bayraktar stated that Türkiye plans to expand its gas infrastructure as it lays the groundwork to establish a gas exchange from which countries in southeast Europe can source gas.

Following its incursion into Ukraine in February of the previous year, Russia proposed setting up a gas hub in Türkiye last year to replace lost sales to Europe.

Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin have given directives to commence the project.

They discussed specific steps during their recent meeting in Sochi after the project's delay due to the earthquake catastrophe in Türkiye last February and the presidential and parliamentary elections in May.

Türkiye plans to expand its gas infrastructure in northwest Türkiye's Thrace region, connecting LNG gasification terminals and an upgraded storage facility in Silivri, west of Istanbul.

Bayraktar told a press briefing on Thursday that gas coming from Azerbaijan, Iran, and Russia through pipelines could also feed into this hub and be priced in a local gas exchange.

- Iraqi Oil Exports Resumption

Furthermore, Bayraktar confirmed that Iraq's northern oil export route through Türkiye will soon be ready to resume operation after checks on pipeline maintenance and repairs to flood damage.

Bayraktar mentioned that an inspection of the oil pipeline is complete, and it will soon be "technically" ready for operations.

Türkiye halted flows on Iraq's northern oil export route on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad damages for unauthorized exports by the Kurdistan Regional Government (KRG) between 2014 and 2018.

"As of today, the independent surveyor completed their survey, and now they're preparing their report," Bayraktar said without mentioning a date for resumption of oil flows.

Iraq and Türkiye previously agreed to wait until maintenance works were complete before resuming the pipeline that contributes about 0.5 percent of the global oil supply. Sources said oil flows are not expected to start before October.

The Kurdistan Regional Government lost roughly $4 billion in lost exports.

- Nuclear power plant

The Minister revealed that the ongoing negotiations with Russia, China, and South Korea regarding constructing a second nuclear power station in Thrace, northwestern Türkiye, are progressing.

"We came to a very important point that we need to finalize [the deal] in a few months," said Bayraktar.

He also pointed to ongoing talks with Russia concerning the third nuclear power station in the Sinop.

Bayraktar said Türkiye needs to produce 20 gigawatts from the nuclear power plants in the future.

Russia is currently constructing the Akkuyu station, Türkiye's first nuclear power plant, situated in Mersin.

Bayraktar revealed that Türkiye aims to establish a broader nuclear ecosystem that requires atomic power to transition to clean energy by 2050.

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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.

Business

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.