Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
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Swedish Ambassador: Swedish Companies Planning on Setting up Regional Headquarters in Saudi Arabia

Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)
Swedish Ambassador to Saudi Arabia Petra Menander during a tour of a Swedish company in Saudi Arabia. (Asharq Al-Awsat)

Relations between Saudi Arabia and Sweden are witnessing rapid development with the expansion of cooperation in the fields of innovation, logistics and services and others.

Swedish Ambassador to Saudi Arabia Petra Menander told Asharq Al-Awsat that the Saudi-Swedish joint committee is currently working on further deepening relations.

“In November last year, we agreed on 45 activities across four sectors to improve our cooperation, half of which have been implemented,” she added.

“Sweden and Saudi Arabia are natural partners in the global transition toward a more sustainable, knowledge-based economy,” she remarked.

“The presence of approximately 60 Swedish companies in the Kingdom, many of which are expanding their operations, demonstrates strong confidence in the Saudi market and its long-term potential,” she stressed.

“Saudi Arabia is Sweden’s largest trading partner in the Middle East and North Africa. While trade volumes vary year to year, the overall trajectory is one of steady growth. Our bilateral trade grew almost 5 % last year and has increased by more than 90% since 2018,” the ambassador went on to say.

Moreover, Menander added: “As the European Union, we are Saudi Arabia's most important partner for investments and trade and that is a relationship that can grow deeper. Sweden is one of the strongest supporters of free trade within the European Union and we believe that there is a great potential to further increase trade between our countries.”

“Half of the Swedish companies have or are planning to set up regional headquarters in Saudi Arabia, many of them are engaged in local manufacturing in the Kingdom and they invest in research and in training the thousands of young Saudi talents they employ,” she said.

She added that Sweden has a strong desire to expand in green energy and smart climate solutions. Swedish companies, such as Hitachi Energy, ABB and Systemair, are contributing to energy efficiency, electrification, and renewable infrastructure.

In the fields of logistics and infrastructure, she noted that “Swedish engineering and design firms are contributing to the planning and execution of major infrastructure projects and have a strong track record in delivering leading solutions for major projects, including within road, rail and air transport with companies such as Sweco, Volvo Trucks and Scania.”

Healthcare and life sciences are among the foundations of cooperation. “Swedish firms such as Diaverum, Getinge, and AstraZeneca are delivering high-quality care and conducting clinical research in the Kingdom,” said Menander.

Furthermore, she revealed that Swedish companies, such as Epiroc and Quant, are helping to modernize and decarbonize the mining sector through advanced technologies.

Sweden is also a global leader in digital maturity and connectivity. Companies like Ericsson are not only advancing 5G and 6G technologies but also investing in local R&D partnerships, added the ambassador.

In terms of smart industry and automation, she said: “With companies like Tetra Pak, Roxtec and SKF, Sweden supports the development of sustainable and efficient industrial ecosystems.”

These areas reflect Sweden’s strengths in innovation, equality, and long-term thinking essential for building resilient and future-ready economies, added the ambassador.

Furthermore, Menander described ties between Saudi Arabia and Sweden as excellent. “They are grounded in mutual respect, shared ambitions, and a commitment to long-term partnership. Our kingdoms are united by a forward-looking vision - one that embraces creativity, working together towards sustainability and growth,” she told Asharq Al-Awsat.

“In foreign policy our positions align om many key areas, as was seen during political consultations in Stockholm between Vice Minister of Foreign Affairs Eng. Waleed bin Abdulkarim El-Khereiji and State Secretary for Foreign Affairs Dag Hartelius.”

She also noted the “close cooperation between Saudi and Swedish business sectors, where there are great opportunities to enhance the partnership between our two countries.”

“I attended the executive meeting of the Saudi-Swedish Joint Business Council in Stockholm in May, where leading private companies from our two kingdoms discussed new economic initiatives,” she said.

“There about 60 Swedish companies with a presence in Saudi Arabia feel at home and are committed to strengthening their ties with the Kingdom. According to a Business Climate Survey which was conducted among Swedish companies and just published, 91% view the business climate as good or very good and 74% plan to increase their investments.”

“We also see an exciting dialogue in new areas, for instance through Swedish participation in the recent Arab European Cities Dialogue, where participants from Sweden saw many similarities when two regions came together to discuss governance, urban planning, and digitalization for a better future,” stressed Menander.

“We see that the numbers of visitors in both directions between our countries are going up, and we see new partnerships budding almost every day. We see more Saudi film and music appearing in Sweden and we increasingly see Swedish fashion, music and gaming in Saudi Arabia,” she remarked. “In fact, I often meet young Saudis who know about Sweden because they work for Swedish companies like Ikea and H&M.”

“Finally, we see a great interest in deeper cooperation in the field of innovation. Sweden ranks among the most innovative countries in the world and Saudi Arabia makes impressive investments into building an innovative ecosystem with close links between research and entrepreneurship,” she noted.

“We are happy to see that the cooperation is flourishing, including through institutional cooperation and by visits of start-ups both from Saudi Arabia to Sweden and from Sweden to Saudi Arabia,” continued Menander.

“Our cooperation spans a wide range of sectors where Swedish expertise and values align closely with the ambitions of Vision 2030. During our recent national day celebration, some of our companies displayed examples of how they contribute to these goals,” she said.

“These investments are aligned with Saudi Arabia’s Vision 2030, focusing on sectors such as green transition, healthcare, logistics and smart manufacturing and in many cases also include investments into research and development in Saudi Arabia,” the ambassador stated. “In parallel, we see a growing interest in collaboration between Swedish and Saudi incubators, particularly to support small and medium-sized enterprises (SMEs).”

“In May, Business Sweden, the Swedish Trade and Invest Council in Riyadh, organized two trade delegations to Saudi Arabia. The first focused on infrastructure projects and included Swedish companies specializing in digital solutions, construction equipment, energy, waste management, and air and water treatment solutions. These companies explored how Swedish expertise could contribute to Saudi Arabia's Vision 2030 by engaging with several giga projects,” Menander explained.



PIF Forum Yields $16 Bn in MoUs

Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
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PIF Forum Yields $16 Bn in MoUs

Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)
Raid Ismail, head of direct investments for the Middle East and North Africa at the Public Investment Fund, speaks during a session (X)

Saudi Arabia’s Public Investment Fund (PIF) closed the fourth edition of its Private Sector Forum with a slate of deals that underscored its growing pull with investors, announcing the signing of more than 135 memorandums of understanding worth over 60 billion riyals (about $16 billion).

The agreements reflect rising confidence in the Saudi business climate and the fund’s ability to generate high-quality investment opportunities that attract both local and foreign capital.

The forum’s final day opened with a discussion on flexibility, risk reduction, and innovative financing, focusing on how to turn strategies into bankable projects and investment opportunities that can draw in the private sector and deepen its role in the economy.

Speakers highlighted the fund’s central role in enabling and developing strategic sectors, investing in large-scale projects that help create a more attractive business environment.

These efforts aim to strengthen participation by the domestic private sector, including small and medium-sized enterprises, while also drawing foreign investment.

In a session on the Saudi sovereign approach to value creation, Raid Ismail, head of direct investments for the Middle East and North Africa at PIF, outlined the “Fund Way” methodology launched in 2019 to boost economic value across portfolio companies.

The approach is built on independent governance and a clear operating framework.

Ismail said the fund remains focused on delivering economic and social impact and sustainable growth across all its investments.

He traced PIF’s investment journey, from selecting priority sectors and forming partnerships with the private sector, to establishing companies, strengthening their governance and operational efficiency, and ultimately exiting investments.

Artificial intelligence featured prominently in the discussions. Tareq Amin, chief executive of Humain, said the company’s approach to AI applications is rooted in rethinking how problems are solved and how organizations prepare for the future.

He noted that Saudi Arabia has strong AI infrastructure, suitable human capital, and ample energy resources, and highlighted the generative AI operating systems and applications the company is developing.

Another panel focused on local content and its impact on the private sector, stressing the importance of building high-quality local content to support a strong national economy, accelerate diversification, and sustain growth.

The discussion also highlighted Saudi Arabia’s efforts to develop policies and regulations that encourage higher local content.

Panelists said increasing local content helps raise the private sector’s contribution to gross domestic product, reduce reliance on foreign supply chains, develop national industries and products, improve competitiveness, expand into new markets, and create jobs.

The session also highlighted PIF’s role in boosting local content through a range of programs and initiatives, including the Musahama local content development program, contractor financing, the industrial accelerator, supplier development, the private sector platform, and the Musahama design competition.

Spending by the fund and its portfolio companies on local content exceeded 590 billion riyals between 2020 and 2024.

Financing solutions were another key theme, with discussions on how to develop funding tools aligned with Saudi Arabia’s economic growth and ensure access to finance for large projects, small and medium-sized enterprises, and entrepreneurs.

Over the past five years, PIF has helped unlock priority strategic sectors across the kingdom.

It invested about 750 billion riyals domestically in new projects between 2021 and 2025. It contributed a cumulative 910 billion riyals ($242.6 billion) to Saudi Arabia’s real non-oil GDP between 2021 and 2024, accounting for around 10% of non-oil GDP in 2024.

The fourth edition of the forum builds on the momentum of previous years. Attendance has tripled since 2023, rising from 4,000 participants to 12,000 in 2025, while the number of exhibition booths by PIF portfolio companies more than doubled to over 100.


Iraq Seeks Saudi Firm List to Streamline Iraqi Exports

Jadidat Arar border crossing, the logistics gateway between Saudi Arabia and Iraq (SPA)
Jadidat Arar border crossing, the logistics gateway between Saudi Arabia and Iraq (SPA)
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Iraq Seeks Saudi Firm List to Streamline Iraqi Exports

Jadidat Arar border crossing, the logistics gateway between Saudi Arabia and Iraq (SPA)
Jadidat Arar border crossing, the logistics gateway between Saudi Arabia and Iraq (SPA)

The Iraqi government is moving to tighten the framework for exporting its goods to Saudi Arabia by compiling a list of Saudi companies interested in importing Iraqi products, a step aimed at streamlining trade procedures and boosting shipments to the kingdom.

The list will be circulated to all relevant Iraqi authorities and used as a reference in the export process, according to the information.

Trade between the two countries remains heavily tilted in Saudi Arabia’s favor. In 2024, Saudi exports to Iraq reached 6.5 billion riyals ($1.7 billion), while imports from Iraq totaled 180.4 million riyals ($48.1 million), resulting in a trade surplus of 6.3 billion riyals ($1.6 billion).

Saudi Arabia’s General Authority for Foreign Trade has informed the Saudi private sector of a request from Iraqi authorities to provide a list of companies willing to import goods from Iraq.

Push to raise Iraqi exports

The Iraqi government has also asked for details on Saudi market requirements and standards, seeking clarity that would allow it to set specifications for products, goods, and services and, in turn, increase its exports to the kingdom.

Fuel products, oils, and mineral waxes accounted for the largest share of Iraqi exports to Saudi Arabia at 49.1%. Aluminum and aluminum products accounted for 32.7%, while pulp from wood or other fibrous cellulosic materials accounted for 7.3%. The remaining share was spread across other goods and services.

Overall trade between Saudi Arabia and Iraq continues to expand in both volume and diversity, with Saudi exports clearly dominant. Both sides have stepped up efforts to ease trade flows and improve infrastructure to support more sustainable growth.

Border bottleneck eased

As part of its efforts to smooth access for Saudi products to regional markets, the General Authority for Foreign Trade recently stepped in to resolve a technical and logistical issue that had been hampering Saudi exporters at the Jadidat Arar border crossing with Iraq.

The intervention was aimed at safeguarding export flows through the only land route linking the two countries, which has grown in importance after an 81.3% rise in truck traffic in the first half of 2024.

The authority resolved a dispute over the Iraqi side’s refusal to accept electronic authentication of documents, reaffirming its commitment to strengthening trade ties with Baghdad.

The issue had been flagged as a recurring obstacle for Saudi companies exporting to Iraq via the crossing, prompting swift action by the authority to clear the backlog and ease private sector access to the Iraqi market.

Strategic gateway

Opened in 2020, the Jadidat Arar crossing is the sole economic and logistics gateway between Saudi Arabia and Iraq. It has played a key role in cutting export costs by 15% and reducing shipping times to less than 48 hours.

The Arar Chamber of Commerce said in a recent statistical report that total truck movements, arrivals, and departures combined reached about 33,300 in the first half of 2024.

By comparison, the number of trucks stood at about 4,084 in the first half of 2021, rose to 12,954 in the same period of 2022, and increased further to 18,729 in the first half of 2023.


Saudi Industry Minister Explores Localization Opportunities with Airbus Helicopters

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials during the meeting. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials during the meeting. (SPA)
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Saudi Industry Minister Explores Localization Opportunities with Airbus Helicopters

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials during the meeting. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef and other officials during the meeting. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held talks Airbus Helicopters CEO Bruno Even on the sidelines of the World Defense Show 2026 in Riyadh to discuss joint opportunities for localizing aerospace industries and their supply chains in the Kingdom.

The meeting reviewed ways to strengthen industrial cooperation and expand strategic partnership opportunities in the localization of aircraft and helicopter manufacturing in Saudi Arabia, said a ministry statement on Tuesday.

It addressed ongoing efforts to localize the production of aluminum panels and titanium processing to support the requirements of the aerospace sector.

The talks underscored the importance of developing enabling models that attract Airbus Helicopters’ global suppliers and facilitate the establishment or expansion of their operations in the Kingdom, contributing to the resilience and sustainability of global aviation supply chains.

Separately, Alkhorayef met with leaders of the Technology Equipment Trading Establishment, which specializes in military industries. They discussed opportunities to localize defense industries in the Kingdom, the enablers supporting local content development, and initiatives to boost national capabilities in military manufacturing.