عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia, Switzerland Cooperate in Cleantech, Infrastructure and Logistic Services

Parmelin to Asharq Al-Awsat: We are keen to explore new opportunities

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
TT
TT

Saudi Arabia, Switzerland Cooperate in Cleantech, Infrastructure and Logistic Services

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)
Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER). (Asharq Al-Awsat)

Swiss Federal Councillor Guy Parmelin, head of the Federal Department of Economic Affairs, Education and Research (EAER), stressed that the opportunity is ripe for closer cooperation with Saudi Arabia in the fields of clean technology, infrastructure, and logistic services at the time Switzerland is keen on deepening cooperation with the Kingdom in various fields.

Parmelin, who is also a former president of Switzerland, said “the Kingdom of Saudi Arabia is a very dynamic economy, which is of growing interest to the Swiss business community. That's why I'm visiting the Kingdom accompanied by a delegation of leading business representatives.”

“Trade between Switzerland and Saudi Arabia has grown considerably in recent years, and Swiss companies are very interested in investing in the Kingdom,” he told Asharq Al-Awsat.

“Trade and investment figures are strong, but I am convinced that there is still untapped potential. In my meetings with various ministers, I intend to explore where there is room for improvement. Personally, I am also looking forward to visiting Diriyah and King Salman Park,” he stressed.

Moreover, he remarked that “Saudi Arabia is transforming at an incredible speed, both economically and socially. It's important to see these changes first-hand, to get a better feel for the country and also to better understand the current developments.”

“What's more, the Swiss business representatives are given the opportunity to make new contacts and expand their network.”

On agreements signed between Saudi Arabia and Switzerland, Parmelin said: “First of all, we're not starting from scratch. Our two countries already enjoy very good bilateral relations. We have all the essential agreements in place to facilitate trade and investment between Saudi Arabia and Switzerland.”

“What's more, we meet regularly. Just recently, I met Saudi Minister of Investment Khalid al-Falih and Minister of Industry and Mineral Resources Bandar AlKhorayef on the sidelines of the World Economic Forum in Davos, Switzerland. These personal contacts are essential, and I look forward to meeting the Ministers during my stay in Riyadh.”

On the potential areas for collaboration, he stated: “We have the opportunity to collaborate more closely in areas such as cleantech, infrastructure and logistics, where Swiss companies have considerable know-how and expertise.”

“I know that tourism is a priority sector for Saudi Arabia, and with the hosting of Expo 2030 and most probably the Football World Cup 2034, this will only grow in importance,” he noted.

On foreign investments in Saudi Arabia, Parmelin stressed: “Switzerland has a bottom-up approach. By this I mean that it's not the Swiss government that tells companies where to invest or with whom to enter into a partnership. It's the companies themselves that assess the best investment opportunities. They are in a better position to judge what the market needs, where the next big opportunity lies and what their customers are asking for.”

“In my opinion, the fact that a large business delegation is accompanying me to Saudi Arabia is a clear message that these companies have identified economic potential,” he stated.

Parmelin served as Switzerland’s president in 2021 and vice president in 2020. He is member of the Swiss People's Party (SVP/UDC) and has been a member of the Federal Council since 2016. He has led the Department of Economic Affairs, Education and Research since 2019. He previously led the Department of Defense, Civil Protection and Sports between 2016 and 2018.

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.