Saudi Arabia Advances in 36 Global Indices

Saudi Arabia recorded a progress in several global indices (Asharq Al-Awsat)
Saudi Arabia recorded a progress in several global indices (Asharq Al-Awsat)
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Saudi Arabia Advances in 36 Global Indices

Saudi Arabia recorded a progress in several global indices (Asharq Al-Awsat)
Saudi Arabia recorded a progress in several global indices (Asharq Al-Awsat)

Saudi Arabia has recently secured advanced positions in 36 international indices, reflecting its strengthened economic and investment environment.

The progress encompasses notable categories such as consumer confidence, the business environment, government trust, and the World Competitiveness Rating.

Investment licenses issued in the year's second quarter saw a whopping 93.9 percent growth, surging to approximately 1,800 licenses compared to the 938 permits during the same period last year.

Construction and manufacturing led the surge, accounting for nearly 834 licenses in the second quarter of 2023.

A recent report from the Ministry of Investment, reviewed by Asharq Al-Awsat, revealed that Saudi Arabia clinched the second position in five international benchmarks, including Consumer Confidence Index Consumer Confidence in Local Economic Directions among 22 countries in July.

Saudi Arabia stood out in the National Entrepreneurship Context Index among 51 countries and the Global Competitiveness Cybersecurity Rating from 64 countries in 2022.

- Global competitiveness

Saudi Arabia garnered third place out of 26 in the Trust in Government index, fifth in Business Trust, and fifth in the Edelman Trust Barometer, spanning 26 countries.

Furthermore, the Kingdom ranked sixth in the Global Competitiveness Economic Performance Index from 64 countries this year and seventh in the Venture Capital Reception Index among 132 countries in 2022.

Saudi Arabia secured the 17th position among 64 countries at the Global Competitiveness Rating issued by the International Institute for Management Development this year.

The Kingdom also received multiple international credit ratings: Moody's at A1, Standard & Poor's at AA-1, and Fitch at A+.

- Investment Deals

The total nominal fixed capital formation in the second quarter witnessed a six percent annual increase, amounting to around $74.4 billion. The surge is attributed to government and non-government fixed capital formation rate growth at 22 percent and 3.5 percent, respectively.

The contribution of fixed capital formation to the nominal GDP rose to 28.8 percent in the second quarter, up from around 24.2 percent during the same period last year.

Report data indicates the completion of seven investment deals in the second quarter, including agriculture, food manufacturing, healthcare, and medical services.

China led the way among countries investing in Saudi Arabia with three deals, Jordan with two deals, and the UAE with one. Another joint venture emerged between the UAE and Singapore.

- General Authority, Defense

In recent data, Saudi Arabia revealed a prominent surge in the issuance of investment licenses during the second quarter of this year.

The most increased sectors included construction, manufacturing, professional, educational, technical activities, information and communications, accommodation services, wholesale and retail trade, and vehicle repairs.

The sectors together accounted for a staggering 80.7 percent of the total licenses issued.

The general authority and defense sector saw remarkable growth, notably the highest increase in investment licenses, skyrocketing by 100 percent compared to last year.

The information and communications sector and other services registered growth at 91.7 percent and 90 percent, respectively.

Analyzing the legal status of companies that received investment licenses in the second quarter, Limited Liability Companies (LLC) acquired around 464 licenses, whereas Single Member Limited Liability Companies amassed approximately 1.1 thousand licenses.

Egypt took the lead with 458 licenses, India followed closely with 205 licenses, Yemen in third place with 173, Jordan in fourth with 127, and Pakistan secured fifth position with 122 permits.



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.