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China to Enhance Investment in GCC Energy, Infrastructure Projects

The China-GCC 1+6 Economic and Trade Ministers (BNA)
The China-GCC 1+6 Economic and Trade Ministers (BNA)
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China to Enhance Investment in GCC Energy, Infrastructure Projects

The China-GCC 1+6 Economic and Trade Ministers (BNA)
The China-GCC 1+6 Economic and Trade Ministers (BNA)

China seeks to strengthen its position in energy and infrastructure projects in the Gulf countries.

Kuwait has therefore, expressed readiness to discuss China's participation in developing housing cities and infrastructure.

The China-GCC 1+6 Economic and Trade Ministers' meeting launched its activities in Guangzhou with the participation of Gulf trade ministers, the Secretary General of the Gulf Cooperation Council (GCC), Jassem al-Budaiwi, and the Chinese Minister of Commerce, Wang Wentao.

The meeting focused on several key topics, most importantly preserving the multilateral trading system and strengthening the FTA negotiations between China and the GCC.

It also addressed enhancing investment cooperation, developing the industrial and supply chains, and enhancing cooperation in infrastructure connectivity and modern energy.

The minister also welcomed the establishment of the joint association between various Chinese and Gulf investment and financing institutions and activating its role to raise the level of mutual investment cooperation.

- Residential cities in Kuwait

Kuwait's Minister of Commerce and Industry and Minister of State for Youth Affairs Mohammad al-Aiban stated Kuwait's keenness that China have an active role in developing its contributions to housing cities, infrastructure, and energy projects.

Aiban indicated that these contributions have a solid impact on Kuwait's economy.

In a press statement Sunday, the Ministry of Commerce said that Aiban discussed trade exchange with his Chinese counterpart, in addition to diversifying trade relations, and expanding cooperation in non-oil fields.

Kuwait looks forward to enhancing the level of trade cooperation between both countries and further deepening cooperation in the investment field, said Aiban.

He underlined that China is one of the largest exporters of imports to Kuwait and one of Kuwait's largest trading partners in the non-oil field.

The Chinese Minister confirmed that Kuwait had become one of the crucial countries for China concerning renewable energy, infrastructure projects, energy, housing, and other projects.

He pointed to the high investment rates between them, expressing hope that the volume of investment will increase further by the Kuwaiti side in the promising fields in China.

- Power supply

Interlocutors also discussed promoting internal and external trade, reviewing and evaluating the unified and approved trade laws and draft laws in the GCC countries, the unified strategic framework for the free trade agreement, and consensus and initiatives on economic and trade cooperation.

They discussed the importance of a stable and reliable energy supply for trade, industry development, and investment.

Member states supported and encouraged the continued trade of crude oil, natural gas, and petroleum derivatives between the GCC countries and China.

The joint meeting discussed the possibility of cooperation in e-commerce and agreed to enhance collaboration, qualify bilateral trade, new technologies and tools, and the possibility of conducting local currency exchange business between China and the GCC countries.

During the meeting, the Gulf Ministers expressed their keenness to enhance communication under the Chinese "Belt and Road" initiative, promote the building of economic and trade cooperation mechanisms, and deepen bilateral cooperation.

They also expressed their desire to raise trade liberalization and facilitation, stimulate the potential to develop trade and expand its volume, and boost cooperation in services trade and growing digital business.

The Gulf ministers emphasized the need to strengthen cooperation in infrastructure for the digital economy and encourage institutions to actively participate in providing traditional infrastructure with digitization and smart network transformation to establish the communications infrastructure.

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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.