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Saudi-South Africa Partnership Opens New Horizons for Trade, Investment

Saudi Industry and Mineral Resources Minister Bandar Alkhorayef.
Saudi Industry and Mineral Resources Minister Bandar Alkhorayef.
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Saudi-South Africa Partnership Opens New Horizons for Trade, Investment

Saudi Industry and Mineral Resources Minister Bandar Alkhorayef.
Saudi Industry and Mineral Resources Minister Bandar Alkhorayef.

Saudi Arabia and South Africa are stepping up efforts to expand economic cooperation, with officials highlighting opportunities in renewable energy, mining, healthcare and the automotive industry as both nations look to turn shared ambitions into long-term partnerships.

The 10th meeting of the Saudi-South African Joint Committee, held this week in Riyadh, marked a fresh push to align the Kingdom’s Vision 2030 diversification drive with South Africa’s industrial strength and vast natural resources.

Saudi Industry and Mineral Resources Minister Bandar Alkhorayef said relations had gained momentum since South African President Cyril Ramaphosa’s 2022 visit to the Kingdom, pointing to “common ambitions in strategic sectors including renewables, mining, pharmaceuticals, tourism and automotive manufacturing.”

Speaking at a press conference, Alkhorayef said the private sector was already implementing projects with government backing. He cited a 2022 agreement that allowed licensed South African beef into the Saudi market, and added that Riyadh was now targeting car manufacturing as part of plans to build a strong industrial base.

Responding to a question by Asharq Al-Awsat, the minister underlined Saudi Arabia’s ambitions in hydrogen, saying the futuristic NEOM project would soon become the world’s largest hydrogen producer.

Mining, he added, was among the most promising areas, with Riyadh seeking South African expertise to boost its industrial competitiveness.

“Today’s opportunities are greater than ever before,” Alkhorayef said, noting that the Saudi-South African Business Council had become a permanent platform for dialogue, investment and problem-solving. Still, he described current trade volumes as “below expectations” and urged efforts to close the gap.

South Africa’s Trade and Industry Minister Parks Tau invited Saudi investors to take part in his country’s infrastructure and mining projects, describing the bilateral relationship as “growing and strategic.”

He said the timing of the committee’s meeting was significant, coinciding with South Africa’s first presidency of the G20 and the African Union’s admission as a permanent member.

Tau said Saudi Arabia offered “an ideal market” for South African exports, particularly in agriculture and cars, and stressed plans to attract investment into railways, power stations, ports and renewable energy, as well as value chains for critical minerals.

Healthcare has also emerged as a priority area. Hisham al-Amoudi, vice chairman of the Saudi-South African Business Council, told Asharq Al-Awsat the two sides were focusing on mining, healthcare, tourism, food security and medical services. He revealed plans for knowledge exchanges, including recruiting South African doctors and nurses.

South Africa made its first investment in Saudi Arabia two years ago, with a 65 million riyal ($17.3 million) medical and pharmaceutical project in Jazan, set to run for 50 years, Amoudi said. He added that a first memorandum of understanding between the two business councils was expected within three months.

Saudi investments in South Africa include projects by state-backed ACWA Power, notably the Bokpoort concentrated solar plant in the Northern Cape, alongside other renewable energy ventures.

Non-oil Saudi exports to South Africa reached 2.3 billion riyals in 2023, while South African exports to the Kingdom totaled 3.38 billion riyals, underscoring the scope for further growth in trade and investment.

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Business

PIF Anchors State Street’s Newly Launched Saudi Equity ETF

Officials from PIF and State Street IM (Saudi PIF)
Officials from PIF and State Street IM (Saudi PIF)
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PIF Anchors State Street’s Newly Launched Saudi Equity ETF

Officials from PIF and State Street IM (Saudi PIF)
Officials from PIF and State Street IM (Saudi PIF)

The Saudi Public Investment Fund (PIF) and State Street Investment Management (State Street IM), one of the world’s largest asset managers, launched on Thursday the State Street Saudi Arabia Enhanced Active Equity (SAQL) with PIF as anchor investor.

The fund actively invests in equities of companies in Saudi Arabia using a quantitative multi-factor stock selection model, PIF said in a statement.

SAQL has its primary listing on the Xetra exchange in Germany and is cross listed on the LSE in the United Kingdom, where a bell ringing ceremony was held. The fund will be available to investors in both markets as well as investors across other key markets in Europe, the statement said.

The investment marks another step in PIF’s strategy to further deepen and diversify the Saudi capital market by attracting international capital flows, empowering financial institutions, broadening financing options for the private sector and introducing new products.

The newly launched fund is the second State Street IM ETF in which PIF has made an anchor investment, and the fifth ETF investment for PIF across nine global markets with leading international asset managers. New and innovative Saudi-focused products were listed in Hong Kong, London, Shanghai, Shenzhen, Tokyo, Frankfurt, Italy and Singapore.

“PIF is further strengthening Saudi Arabia’s capital market ecosystem, working with our partners to open gateways for international investors, enable access and drive global capital inflow into the country,” said Deputy Governor and Head of MENA Investments at PIF Yazeed Al-Humied.

“Our continued partnership with State Street IM reinforces a shared commitment to enhance and diversify the product range, to present new opportunities for international investors into the Saudi market and unlock capital pools,” he said.

“The launch of this ETF further deepens the Saudi market and builds on a series of PIF-anchored ETF listings across international markets, cementing PIF’s role in driving increased product diversification to enhance liquidity and fulfill market needs,” Al-Humied added.

Chief Executive Officer of State Street Investment Management Yie-Hsin Hung praised Saudi Arabia’s "success story," adding: “At State Street, as with PIF, innovation is in our DNA and we’re pleased to offer a new product in this same vein, drawing on our decades of experience and commitment to quality to underpin an exciting new offering, anchored by PIF.”

Quantitative funds, such as SAQL, use mathematical modeling, algorithmic, and data-driven methods to manage portfolios. The Saudi capital market has evolved beyond legacy sectors, with maturation of market structure and data quality – enabling SAQL to use a systematic active approach when investing in Saudi equity securities.

SAQL provides an opportunity for international investors to obtain investment exposure to this rapidly evolving economy.

The fund is registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and the UK.

Business

Morocco’s Inflation Rises to 0.9% in March

People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
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Morocco’s Inflation Rises to 0.9% in March

People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)
People stand looking across the river at the skyline in the coastal city of Rabat on April 20, 2026. (AFP)

Morocco's annual inflation, measured by the consumer price index, rose to 0.9% in March from -0.6% a month earlier, the statistics agency said on Wednesday.

Food prices, ‌the main ‌driver of ‌inflation, ⁠rose 0.6% from a year ⁠earlier, while non-food inflation increased 1.1%.

Core inflation, which excludes more volatile goods, rose 0.6% year-on-year ⁠and 0.1% month-on-month.

The ‌rise ‌in fuel prices following ‌the Iran conflict ‌led the Moroccan government to reintroduce subsidies for professional transporters, including taxis, buses ‌and trucks, to keep prices stable.

Fuel subsidies, ⁠along ⁠with aid to keep electricity and cooking gas prices stable, would cost the government 1.6 billion dirhams ($170 million) monthly, the minister in charge of the budget, Fouzi Lekjaa, said.

Business

Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
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Strait of Hormuz Blockade Drives up Costs at Panama Canal

Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)
Aerial view of the One Contribution container ship sailing under the Tokio flag as it enters the Panama Canal in Panama City on April 21, 2026. (EPA)

The war in the Middle East has boosted demand to move vital cargo through the Panama Canal to such an extent that one vessel carrying liquefied natural gas (LNG) paid $4 million to skip the line and avoid a wait that can take up to five days, according to an official report.

A surge in such payments has been recorded since the US-Israeli attacks on Iran began February 28, which led to the blockade of the Strait of Hormuz, a critical waterway for one-fifth of the world's oil and natural gas exports from Gulf countries.

To meet fuel demand, Asia's refineries are choosing to buy oil or gas from the United States and ship it through the transoceanic waterway instead of purchasing from Gulf countries who rely on the Strait of Hormuz, according to reports from the Panama Canal Authority.

The average number of ships passing through the canal on a daily basis has "remained strong," the authority told AFP in a statement Tuesday, with 34 ships in January and 37 ships in March. Some days exceeded 40 transits.

"The increase reflects changes in global trade patterns and market conditions, including geopolitical factors affecting key routes," the authority said.

Ships transiting the canal book their passage well in advance, and ships without bookings wait an average of five days to get through, but there is an auction where last-minute transits can be purchased.

The most recent auction included a $4 million bid for an LNG vessel, and in recent weeks two oil tankers exceeded bids of $3 million, the authority said.

Past average auction prices between October and February stood at around $130,000, and rose to $385,000 in March and April.

Five percent of global maritime trade passes through the Panama Canal, and its main users are the US and China. The route primarily connects the US East Coast with China, South Korea and Japan.

In the first half of the 2026 fiscal year, which runs October to September, the Panamanian waterway recorded passage of 6,288 ships, a year-on-year increase of 3.7 percent, according to official figures.