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OPEC Sec-Gen: Charter of Cooperation Asserts Importance of Enhancing Energy Security, Supporting Global Economy Growth

Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais (WAM)
Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais (WAM)
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OPEC Sec-Gen: Charter of Cooperation Asserts Importance of Enhancing Energy Security, Supporting Global Economy Growth

Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais (WAM)
Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais (WAM)

Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais said that OPEC is holding active talks with several nations eager to join the OPEC+ Charter of Cooperation following the recent accession of Brazil.

The names of these countries will be announced after the ongoing consultations, the OPEC chief explained in statements to the Emirates News Agency (WAM).

The Charter of Cooperation provides a platform to facilitate dialogue and exchange views regarding conditions and developments in the global oil and energy markets to contribute to a secure energy supply and lasting stability for the benefit of producers, consumers, investors, and the global economy.

Speaking on the sidelines of the World Government Summit, he said that the Charter emphasizes the importance of several pivotal issues, such as enhancing energy security, eliminating energy poverty, and supporting the growth of the global economy.

Ghais noted that oil-producing countries participating in the Charter continue to regularly consult and exchange views regarding developments in global oil markets to discuss the best ways to achieve the most crucial goal of the Charter of Cooperation.

- Intensify efforts

Regarding any future changes in the oil production of OPEC member states, Ghais said that the continuous successes of the Declaration of Cooperation (DoC) have motivated the participating countries to continue intensifying their efforts and cooperation to support market stability.

He highlighted OPEC+ members' recent agreement to extend their voluntary oil production cuts until the end of 2024.

Ghais continued that some of these countries, specifically the Kingdom of Saudi Arabia, the Russian Federation, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, have declared additional voluntary production cuts that are in effect until the end of March of this year to provide further support to global oil markets and ensure stability.

- Cooperation

He also highlighted the Joint Ministerial Monitoring Committee's (JMMC) commendation in its meeting in February of the compliance of OPEC and non-OPEC member countries with the crude production quota under the Declaration of Cooperation (DoC).

He referred to the high commitment to production cuts and stressed the importance of adhering to them and the countries' readiness to participate in the agreement to take action.

The Secretary-General added that the JMMC is a committee formed by the countries participating in the Charter.

It monitors compliance with the cuts, supervises the developments and conditions in global oil markets, and provides recommendations on the measures that must be taken to support their stability periodically.

He added that OPEC always seeks stability in the global oil market by studying the fundamentals and its variables, such as levels of demand, supply, investments, and other factors.

- Geopolitical variables

Ghais said that global oil markets are constantly affected by various factors, some outside of OPEC's control and others the organization can influence by intensifying efforts and cooperation among member states to support market stability.

OPEC relies on its awareness of market fundamentals, and despite global geopolitical tensions, it always seeks to supply the world with oil safely and reliably, said Ghais.

He pointed out that the oil markets report for January 2024 expected the growth in global oil demand would reach more than 2 million barrels per day (mb/d), divided into about 300,000 bpd in OECD countries and about one mb/d in other countries.

In 1Q-24, oil demand is expected to grow by 2.0 mb/d y-o-y.

According to the report, total world oil demand is anticipated to reach 104.4 mb/d in 2024, bolstered by strong air travel demand and healthy road mobility.

He added that initial estimates for 2025 indicate that the expected growth in global demand for oil will be about 1.8 mb/d, and the OECD states increase was estimated at 100,000 bpd and about 1.7 mb/d abroad.

- COP28

Regarding the COP28 declaration regarding the gradual transformation in the energy sector, he said that OPEC believes that the transformation of energy systems is an important issue, stressing that it was necessary to deal with it realistically, fairly, and comprehensively.

Ghais called for adopting an approach that facilitates finding different, comprehensive, and responsible solutions to such a sensitive issue.

According to the Sec-Gen, the goal is to reduce emissions that harm the planet and the environment regardless of the energy source used.

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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.