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Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
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Saudi-UAE Trade Exchange Reaches $244 Billion in 10 Years

The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)
The Saudi Minister of Economy and Planning addresses attendees at the Saudi-Emirati Economic Forum. (Asharq Al-Awsat)

The Saudi-Emirati Economic Forum, which kicked off at the Federation of Saudi Chambers headquarters in Riyadh on Sunday, highlighted significant growth in trade between Saudi Arabia and the United Arab Emirates, reaching SAR 915 billion ($244 billion) over the past decade (2014 to 2023). In the past three years alone, trade reached its highest levels, totaling SAR 327.5 billion ($87.3 billion).

Saudi Minister of Economy and Planning Faisal Al-Ibrahim noted that trade between Saudi Arabia and the UAE increased by 25% over the past five years, reaching SAR 113 billion ($30 billion) by the end of 2023, compared to SAR 90 billion ($24 billion) in 2019.

He added that both countries have seen significant transformations in investment due to policies and measures designed to develop and improve the investment environment.

Al-Ibrahim also highlighted that, as of the end of last year, the UAE recorded positive growth in foreign direct investment (FDI) in Saudi Arabia, totaling around SAR 111 billion ($29.6 billion), marking a 15% increase from 2022.

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef emphasized that Saudi Arabia and the UAE have promising potential to enhance integration in industry and mining.

He expressed eagerness to collaborate on joint initiatives to support entrepreneurs by improving access to financing and training.

Al-Khorayef noted that Saudi exports to the UAE grew at an annual rate exceeding 9%, reaching about SAR 31 billion SAR this year.

UAE Minister of Economy Abdullah Al Marri revealed that UAE investments in Saudi Arabia have reached AED 15.7 billion, stressing that the forum provides a platform to continue strengthening the economic partnership between the two countries and advancing it to new levels.

He underlined the forum’s role in helping business communities explore promising growth opportunities in both countries. Al Marri underscored the private sector’s critical role as a key partner in helping both governments achieve their future vision, stressing that current global economic challenges underline the need to strengthen partnership channels.

He further highlighted that the UAE is Saudi Arabia’s largest Gulf and Arab trading partner and second-largest global partner, while the Kingdom is the UAE’s top Gulf and Arab trading partner and fourth globally.

Non-oil trade between the two nations reached AED 137 billion in 2023, with non-oil trade exchanges totaling AED 75 billion in the first half of this year, reflecting over 18% growth compared to the same period in 2023.

UAE investment inflows into Saudi markets grew by more than AED 15.7 billion in 2023, a 6% increase from 2022. Saudi cumulative investments in the UAE reached $6.5 billion by the end of 2022, making Saudi Arabia the fourth-largest investor in the UAE, according to Al Marri.

Chairman of the Saudi-Emirati Business Council Abdulhakim Al-Khaldi said the economic partnership with the UAE is strong and growing, encompassing trade and investment cooperation in most major sectors.

Vice President of the Federation of Saudi Chambers Fayez Al-Shuaili said the forum would support achieving shared goals, produce actionable recommendations, and foster a business-friendly environment to boost trade and investment growth.

Trade between the two countries reached around $30 billion last year, with further growth anticipated in trade and investment relations, he added.

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Business

Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air Adds Malaga, Kuala Lumpur to International Network
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Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air Adds Malaga, Kuala Lumpur to International Network

Riyadh Air, Saudi Arabia's new national carrier and a subsidiary of the Public Investment Fund, announced on Tuesday the addition of two new destinations to its growing network, launching ticket sales for flights linking Riyadh with Malaga and Kuala Lumpur.

With the addition of the two destinations, the new national carrier is preparing to operate flights to eight destinations from Riyadh by August. The network will include London, Cairo, Dubai, Jeddah, Madrid, Manchester, Malaga, and Kuala Lumpur, as the airline prepares to receive its sixth aircraft.

Riyadh Air offers passengers a range of options combining seasonal tourism and year-round services. The airline will launch seasonal nonstop flights to Malaga, Spain, from July 14 through September 8.

Three days later, on July 17, it will inaugurate its nonstop route between Riyadh and Madrid.

The Madrid route holds strategic importance for both business and tourism sectors, in addition to its sporting significance, as it links the two capitals and enhances the partnership with Atletico Madrid and its Riyadh Air Metropolitano Stadium.

Meanwhile, passengers heading to Asia will benefit from year-round scheduled flights to Kuala Lumpur, Malaysia, beginning July 30.

Passengers can book tickets through the Riyadh Air mobile application, the airline's official website, or authorized travel partners.

Business

Cyprus, Energy Giants Declare Gas Fields Commercially Viable

Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
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Cyprus, Energy Giants Declare Gas Fields Commercially Viable

Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)
Representatives of ExxonMobil and QatarEnergy sign an agreement with Cyprus declaring gas in two offshore fields marketable, paving the way for further development of offshore gas reserves in the eastern Mediterranean, at the Presidential Palace in Nicosia, Cyprus June 30, 2026. (Reuters)

Cyprus, ExxonMobil and QatarEnergy on Tuesday declared natural gas fields discovered off the Mediterranean island nation to be commercially viable, with a 2033 target for production to commence.

The declaration of commercial discovery, signed in Nicosia, moves the Glaucus and Pegasus gas discoveries from the exploration phase to project development, strengthening Cyprus's ambitions to become an eastern Mediterranean energy hub.

"This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year," John Ardill, ExxonMobil's vice president for exploration and new ventures, said.

"This declaration of commerciality takes us from looking for energy to developing energy," Ardill said. "It is a very historic point."

Cypriot President Nikos Christodoulides described the agreement as "a milestone of strategic importance".

Ardill said the company expected to take a final investment decision in 2029, with production starting in 2033.

He added that ExxonMobil would resume drilling later this year as part of the Pegasus appraisal program, while expanding exploration into Blocks 4 and 10A of the Cypriot exclusive economic zone (EEZ).

"The concept of a European energy hub is realized when the molecules start flowing, and that's what we are here to initiate today," Ardill said.

Ardill said the leading development option is a subsea pipeline linking the Cypriot fields to existing liquefied natural gas infrastructure in Egypt, pointing to established bilateral agreements and infrastructure.

An onshore LNG terminal in Cyprus would require substantially larger gas reserves than those identified so far.

Tuesday's declaration follows years of appraisal drilling and technical studies confirming the fields are commercially exploitable.

Energy Minister Michael Damianos said Cyprus expected to launch a new offshore licensing round within the next two years.

The island nation has sought to position its offshore gas as a strategic source of energy security for Europe following Russia's invasion of Ukraine.

It has been 15 years since Nicosia's first commercial natural gas find, dubbed the Aphrodite field.

Cyprus has delineated its EEZ into 13 offshore exploration blocks licensed to international energy companies, including ExxonMobil, QatarEnergy, Eni, TotalEnergies and Chevron.

Business

Iraq's SOMO Offers Big Discounts for Term Basrah Oil in July

FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
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Iraq's SOMO Offers Big Discounts for Term Basrah Oil in July

FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A gas flare burns in the distance at the Rumaila oil field, amid nationwide output cuts following the closure of the Strait of Hormuz, in Basra, Iraq, March 4, 2026. REUTERS/Essam Al-Sudani/File Photo

Iraq's SOMO has offered wide discounts to its official selling prices to encourage term buyers to lift Basrah crude from its terminal inside the Middle East Gulf in July, according to trade sources and a document reviewed by Reuters.

The discounts for Basrah Medium crude ranged from $14 to $16 a barrel while those for Basrah Heavy crude were between $16.80 and $18.80 a barrel, depending on the loading period. Discounts are wider for cargoes ⁠loading between July 1 ⁠and 5 and they become narrower for cargoes loading July 6-10 and July 11-31.

Buyers are requested to submit their nominations for quantity within a day from receiving the letter, Reuters quoted SOMO as saying.

The discounts are meant as compensation for buyers who have to pay high chartering ⁠costs for ships to enter the Strait of Hormuz to fetch the oil, a trade source said.

The daily time charter rate for a Very Large Crude Carrier to load 2 million barrels of crude from the Middle East to China has climbed to about $300,000 from about $220,000 on February 27, before the US and Israel launched strikes on Iran, but has dropped from a peak of about $600,000 in March, LSEG data shows.

The wide discounts for ⁠Basrah ⁠crude may entice buyers, but the question remains if the Strait of Hormuz is passable, two other people said.

Last week, SOMO issued a tender to sell July-loading crude but it failed to attract buying interest as traders had difficulties in booking tankers to enter the Gulf, another source said.

Other Middle East producers are pushing ahead with oil loadings, but shipping in the strait has slowed following fresh ship attacks and renewed strikes between the US and Iran in recent days.