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Saudi Arabia Calls from Davos to Reshaping Global Economic Approach

High-Level Saudi Delegation Concludes Davos Forum with WEF Founder and Executive Chairman Klaus Schwab (SPA)
High-Level Saudi Delegation Concludes Davos Forum with WEF Founder and Executive Chairman Klaus Schwab (SPA)
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Saudi Arabia Calls from Davos to Reshaping Global Economic Approach

High-Level Saudi Delegation Concludes Davos Forum with WEF Founder and Executive Chairman Klaus Schwab (SPA)
High-Level Saudi Delegation Concludes Davos Forum with WEF Founder and Executive Chairman Klaus Schwab (SPA)

Saudi Arabia has called for a “reshaping of the global economic approach” amidst severe disruptions and trade tensions that are impacting global growth rates and, consequently, the standard of living for individuals worldwide.

Economic sectors across the globe are grappling with instability due to rising debt levels, inflation rates, and fluctuating local currencies, which have diminished the purchasing power of many consumers. At the same time, some countries are imposing tariffs on certain exports, a move that could drive inflation back to record highs and further restrict international trade.

Saudi Arabia concluded its participation in the 2025 World Economic Forum annual meeting, held in Davos, Switzerland, from January 20 to 24, by announcing its partnership with the WEF to host a high-level recurring international forum starting in the first half of 2026.

Headed by Foreign Minister Prince Faisal bin Farhan bin Abdullah, the delegation showcased key achievements and objectives under Vision 2030 while engaging in public and private discussions about solutions to global challenges.

The WEF, in collaboration with Tourism Minister Ahmed Al-Khateeb, published a research paper titled “The Future of Travel and Tourism: Embracing Sustainable and Inclusive Growth,” which highlighted trends in the tourism sector and the importance of cross-sector collaboration. Additionally, the Ministry of Tourism released a white paper detailing the unique opportunities offered by Vision 2030 in the tourism industry.

In another significant announcement, the WEF, in partnership with the Global Cybersecurity Forum Foundation, launched the Cyber Economics Center, to be headquartered in Riyadh. The center aims to serve as a global think tank exploring the economic dimensions of cybersecurity and to provide reliable insights and in-depth studies to help policymakers worldwide understand the link between economies and cybersecurity.

The Royal Commission for Jubail and Yanbu also announced the inclusion of Jubail Industrial City in the Transformation Towards Sustainable Industrial Clusters initiative, launched by the WEF in 2025. Jubail became the first industrial city in the Middle East to join this global initiative, in collaboration with Accenture and the Electric Power Research Institute (EPRI).

Moreover, the Research, Development, and Innovation Authority released a report on the Markets of Tomorrow Accelerator initiative in Saudi Arabia, highlighting its contributions to fostering positive economic transformations through entrepreneurship-focused solutions. The report outlined future opportunities for enabling the growth of promising markets in the Kingdom.

Salesforce announced plans to establish a new regional headquarters in Riyadh and pledged to provide skill development opportunities for 30,000 Saudi citizens by 2030. The company also unveiled a partnership with IBM to open an artificial intelligence innovation hub in the Kingdom.

The Saudi delegation included several ministers, such as Commerce Minister Dr. Majid Abdullah Al-Qasabi, Tourism Minister Ahmed bin Aqil Al-Khateeb, Minister of State for Foreign Affairs and Climate Envoy Adel bin Ahmed Al-Jubeir, Investment Minister Khalid bin Abdulaziz Al-Falih, Finance Minister Mohammed bin Abdullah Al-Jadaan, Communications and IT Minister Abdullah bin Amer Al-Swaha, Industry and Mineral Resources Minister Bandar bin Ibrahim Al-Khorayef, and Economy and Planning Minister Faisal bin Fadel Al-Ibrahim.

Delegation members participated in key discussions, including panels on “The Future of Growth,” “Diplomacy in Times of Chaos,” “Inclusive Innovation Ecosystems,” “Challenges for Emerging Economies,” “Protecting the Environment and Securing Humanity,” “The Future of Travel,” “The State of AI Governance,” and “Economic Transformation in the Kingdom.”

As part of its participation, the Ministry of Economy and Planning organized the Saudi House initiative, a global platform showcasing Saudi Arabia’s transformation under Vision 2030. The pavilion, attended by more than 5,000 visitors, featured several government entities, including the Ministries of Health, Transport and Logistics, Communications and IT, Tourism, Investment, the Royal Commission for Jubail and Yanbu, the General Authority of Civil Aviation, and the Royal Commission for AlUla.

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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
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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.