AlKhorayef to Asharq Al-Awsat: Saudi Arabia Aims for Integrated Electric Car Hub

Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, participating at World Economic Forum activities in Davos. (WEF)
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, participating at World Economic Forum activities in Davos. (WEF)
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AlKhorayef to Asharq Al-Awsat: Saudi Arabia Aims for Integrated Electric Car Hub

Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, participating at World Economic Forum activities in Davos. (WEF)
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, participating at World Economic Forum activities in Davos. (WEF)

Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim AlKhorayef, has revealed the Kingdom’s ambition to create a comprehensive hub for electric vehicle (EV) production.

Speaking at the World Economic Forum in Davos, the minister highlighted recent strides in the automotive industry as proof of Saudi dedication to future technologies.

AlKhorayef emphasized Saudi Arabia’s pivotal role in strengthening global supply chains, citing its strategic location, abundant natural resources, and commitment to infrastructure development under “Vision 2030.”

He also shared that the new industrial strategy is now in the implementation phase, underscoring the essential contribution of the private sector in establishing economically and commercially viable industries.

When asked to share the accomplishments of the National Strategy for Industry, launched over a year ago, AlKhorayef confirmed that the plan was underway and that Saudi Arabia is working on overcoming hurdles for investors.

“Today, we confidently state that the strategy is now being put into action,” he affirmed to Asharq Al-Awsat.

According to Al-Khorayef, the strategy has two main parts: the first involves the government handling things like infrastructure, industrial areas, and energy networks.

The second part is crucial, focusing on working closely with private investors inside and outside the country.

“Progress is evident, with the budget available in the first week of 2024, leading to the start of various projects,” said AlKhorayef.

“We've set up teams to understand investor needs, especially for major projects. We're also collaborating with other government entities to clear any hurdles for investors,” he added.

“The current list of projects in progress looks promising, and we're dedicated to speeding up their completion,” revealed AlKhorayef.

As for the role played by Saudi Arabia in bolstering global supply chains, especially amid their ongoing challenges post-COVID-19, AlKhorayef said: “A key part of our strategy in industry, mining, logistics, and exports is ensuring that the Kingdom plays a crucial role.”

The minister moved on to stress the importance of not overlooking the opportunities for a country like Saudi Arabia to help solve supply chain problems.

“The Kingdom’s exceptional location and natural resources give it a strong position. Since the launch of Vision 2030, improvements in infrastructure, like ports and roads, have prepared the Kingdom to offer solutions,” explained AlKhorayef.

With respect to Saudi Arabia taking on a larger role in regional and global industrial supply chains, the minister mentioned that the Kingdom’s National Strategy for Industry opens doors for new industries, meeting both local and global demand.

AlKhorayef noted that technological advancements bring a significant opportunity for the Kingdom’s competitive edge.

He underlined that Saudi Arabia’s industrial plan focuses on embracing and speeding up the use of technologies stemming from the Fourth Industrial Revolution, artificial intelligence, 3D printing, and additive manufacturing.

“That's why we've started the ‘Future Factories Program’ in the ministry to help factories transition quickly,” said AlKhorayef.

When it comes to cutting-edge technologies, Saudi Arabia is actively establishing a comprehensive sector for EV manufacturing.

Asked to shed light on the current and anticipated partnerships in the field of EV production, AlKhorayef said: “The automotive sector has a big role to play as it not only builds its own industry but also contributes to the broader industrial landscape.”

“This is crucial for developing important skills that can be used in other sectors.”

“It's important to note that even though Saudi Arabia is the largest car importer, it doesn't have its own car manufacturing industry yet.”

“Despite a delayed start in the car industry, recent progress shows that Saudi Arabia is serious about investing in future industries, especially with three companies gearing up to produce EVs.”

“We're actively working with these companies to make sure their projects run smoothly,” he said.

“For example, ‘Lucid Motors’ recently started manufacturing by assembling vehicles a few months ago, and other factories are moving in the right direction.”

“Additionally, we're helping these companies attract suppliers and create a hub for EV manufacturing in Saudi Arabia.”

“We're collaborating with different ministries to ensure that suppliers are close to these companies, making them more competitive,” AlKhorayef added.



UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.


World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).


Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo

Visa is relocating its European headquarters to London's Canary Wharf financial district, the Canary Wharf Group said on Friday.

The firm is leasing 300,000 square feet on a 15-year term at One Canada Square, and is set to relocate from Paddington in the summer of 2028, the group added.

Canary Wharf Group, which runs the wider financial district and is co-owned by QIA and Canada's Brookfield, was hit hard by the pandemic-induced fall in office demand.

The area is now enjoying a rebound as more firms push staff to return to office, Reuters reported.

"Canary Wharf continues to attract a diverse range of global businesses. We are delighted to welcome Visa who have chosen the Wharf for their European headquarters as the best location to support their business growth," Shobi Khan, Canary Wharf Group CEO, said.

JPMorgan Chase last week unveiled a plan to build a tower in the Canary Wharf financial district that will contribute 9.9 billion pounds ($13.2 billion) over six years to the local economy - including the cost of construction - and create 7,800 jobs.

Qatar's sovereign wealth fund is revising plans for a revamp of its HSBC skyscraper in the east London district to retain more office space, Reuters reported in November.