Wafra Oil Find Boosts Saudi, Kuwait Reserves and Global Energy Security

Jafurah Gas Field in Saudi Arabia. (Saudi Aramco)
Jafurah Gas Field in Saudi Arabia. (Saudi Aramco)
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Wafra Oil Find Boosts Saudi, Kuwait Reserves and Global Energy Security

Jafurah Gas Field in Saudi Arabia. (Saudi Aramco)
Jafurah Gas Field in Saudi Arabia. (Saudi Aramco)

Saudi Arabia and Kuwait announced a new oil discovery on Tuesday in the divided zone between the two countries, marking the first such find since production resumed in the area in 2020.

Located about 5 kilometers north of the Wafra field, the new well, named Wara Burgan-1, has shown a flow rate exceeding 500 barrels per day with an API gravity of 26–27.

The discovery is expected to boost the two Gulf nations’ proven oil reserves and underscores their role in securing stable energy supplies for global markets. The announcement signals a renewed momentum in exploration and production in the shared neutral zone, which holds significant untapped hydrocarbon potential.

The find is particularly notable due to its proximity to the Wafra field, which forms part of the southern extension of the vast Burgan field in Kuwait, one of the largest oil fields in the world. The strategic location lends additional weight to the discovery, being near established reserves with proven productivity.

Reviving joint operations

The divided zone, rich in hydrocarbons, is jointly administered by Kuwait and Saudi Arabia and includes two main oilfields: Khafji and Wafra. In 2019, both countries signed an agreement to resume and regulate oil output in the area after years of suspended operations.

In July 2023, the Kuwait-Saudi Joint Permanent Committee met to discuss expediting oil projects in the zone, including joint operations in both Khafji and Wafra, according to a statement by Kuwait’s Ministry of Oil at the time.

Strengthening energy security

Energy experts hailed the new discovery as a milestone that reflects the natural wealth of the neutral zone and supports the long-term energy security of both countries.

Dr. Mohammed Al-Sabban, former senior adviser to the Saudi oil minister, told Asharq Al-Awsat that the find reinforces the region’s global and regional economic significance, increasing both countries’ oil reserves at a time of market uncertainty.

He said recent discoveries of both oil and gas were contributing positively to the economic outlook of Gulf states.

“The announcement confirms the area’s resource richness and supports investor confidence amid global oil market volatility,” Al-Sabban said, adding that Saudi Arabia's recent energy sector announcements have expanded its reserves and bolstered its economic resilience.

Market stability and strategic depth

Economist Ahmed Al-Shahri said the discovery aligns with Saudi Arabia’s strategy to maintain its position as the largest oil producer within OPEC and to secure additional proven reserves. He said it also contributes to stabilizing global energy markets.

“This development enhances the credibility of both Kuwait and Saudi Arabia as reliable energy suppliers,” Al-Shahri told Asharq Al-Awsat. “It also demonstrates the strength of their energy partnership and their commitment to supporting global energy security.”

Broader exploration success

Earlier this year, Saudi Aramco announced the discovery of 14 new oil and gas reservoirs across the Eastern Province and the Rub’ al-Khali Desert. These included six new oil fields, two oil reservoirs, two gas fields, and four gas reservoirs.

These discoveries further solidify Saudi Arabia’s standing as a global energy leader and expand the country’s hydrocarbon resource base.

They are expected to open new avenues for economic development and enable the Kingdom to meet both domestic and international energy demands efficiently and sustainably for decades.

Officials say these efforts are aligned with Saudi Arabia’s Vision 2030, which aims to maximize the benefits of its natural resources and ensure long-term energy security.



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.


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.


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.