عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Major Contracts, Deals on Day Two of Saudi World Defense Show

At the exhibition in Riyadh, KAI is showcasing advanced air combat systems like the FA-50 and KF-21 fighter jets, along with the Advanced Airborne Vehicle (AAV).
At the exhibition in Riyadh, KAI is showcasing advanced air combat systems like the FA-50 and KF-21 fighter jets, along with the Advanced Airborne Vehicle (AAV).
TT
TT

Major Contracts, Deals on Day Two of Saudi World Defense Show

At the exhibition in Riyadh, KAI is showcasing advanced air combat systems like the FA-50 and KF-21 fighter jets, along with the Advanced Airborne Vehicle (AAV).
At the exhibition in Riyadh, KAI is showcasing advanced air combat systems like the FA-50 and KF-21 fighter jets, along with the Advanced Airborne Vehicle (AAV).

The second day of the World Defense Show, founded by Saudi Arabia’s General Authority for Military Industries (GAMI), saw a flurry of deals and contracts announced by local, regional, and international defense companies.
These deals included agreements for manufacturing and localizing defense systems, joint manufacturing ventures, and various partnerships in the defense sector.
These agreements align with Riyadh’s efforts to strengthen military industries by localizing defense manufacturing.
At the exhibition, which concludes on Feb.8, the Saudi Ministry of Investment and the GAMI revealed signing 11 partnership agreements with private companies.
Notable partners include Airbus, Lockheed Martin, Leonardo from Italy, IBM from the US for information technology, and Türkiye’s Rocketsan for weapons manufacturing.
These agreements aim to fulfill strategic objectives for Saudi Arabia’s military industries, such as localizing defense manufacturing, enhancing military readiness, boosting industrial participation, and creating promising investment opportunities.
They also support the goals of the Kingdom’s national transformation plan, “Vision 2030,” aiming to localize 50% of military expenditure by 2030 and increase investment contributions to the gross domestic product.
Under the oversight of Saudi Investment Minister Engineer Khalid Al-Falih and GAMI Governor Engineer Ahmed Al-Ohali, a set of agreements were signed.
These agreements cover important areas like boosting technology transfer, setting up local production lines, and training local talent in the defense sector.
GAMI highlighted that the focus of the exhibition is on showcasing the latest advancements across various defense sectors like land, sea, air, space, and security.
These agreements align with GAMI’s strategy to develop investment in the sector by supporting local content and expanding opportunities for skilled national workers.
The aim is to strengthen Saudi Arabia’s defense capabilities and establish the kingdom as a regional and global hub for defense industries.
On his part, Al-Ohali emphasized that these agreements result from ongoing efforts to develop and localize the military industries, enhancing their competitiveness and workforce confidence.
According to the governor, partnerships with the Saudi Investment Ministry and collaborating companies will contribute to strengthening Saudi Arabia’s military industrial capabilities, promoting strategic independence, and optimizing expenditure efficiency.
Moreover, US weapon maker Lockheed Martin has signed agreements for Saudi Arabian companies to manufacture parts of its Terminal High Altitude Area Defense (THAAD) system.
A statement by Lockheed Martin revealed that these sub-contracts will enhance manufacturing capabilities in Saudi Arabia and transfer expertise to strengthen the country’s defense industry.
The main terms of the THAAD defense system procurement contracts stipulate the localization of work in Saudi Arabia, in line with the priorities of Vision 2030 to develop and localize its military industries.
Saudi Arabia is poised to take advantage of these strategies through qualitative international defense partnerships with Lockheed Martin and other major companies, which are manufacturers of innovative equipment that brings mutual benefits to all the parties involved.
Additionally, state-owned Saudi Arabian Military Industries (SAMI) signed a preliminary agreement with Qatar’s Barzan Holdings.
Barzan explained that the initial agreement with SAMI focuses on joint investment and development.
The deal aims to explore shared interests in defense industries, with both sides committed to boosting their collaboration in the future, sources told Asharq Al-Awsat.
Also at the World Defense Show, Airbus restated its commitment to boosting local skills and expertise in Saudi Arabia and the wider region.
Mikail Houari, President of Airbus in Africa and the Middle East, emphasized that their engagement goes beyond just selling products.
They aim to provide guidance, training, and support, contributing to job creation and sustainable economic growth in the area.
The Korean Aerospace Industries (KAI) plans to expand its presence in the Middle East and Africa.
KAI’s CEO stressed the importance of participating in exhibitions like the World Defense Show to boost the company’s business in these regions.

Most Viewed

 
 
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
TT
TT

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
TT
TT

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).
TT
TT

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.