Al-Khorayef: ‘Economic Corridor’ Positions Saudi Arabia as Global Hub

Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
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Al-Khorayef: ‘Economic Corridor’ Positions Saudi Arabia as Global Hub

Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)
Minister of Industry and Mineral Resources Bandar Al-Khorayef at Jeddah Forum (Asharq Al-Awsat)

Saudi Arabia is moving swiftly to cement its position as a global manufacturing and production hub, capitalizing on its sweeping economic transformation.

The “New Economic Corridor” stands out as a pivotal initiative supporting this drive, built on four integrated national strategies: localization, industry, mining, and exports.

Together, these strategies aim to turn the Kingdom into a regional and global platform for production and exports, one that attracts high-value investments and fuels economic transformation under Vision 2030.

Speaking to Asharq Al-Awsat, Minister of Industry and Mineral Resources Bandar Al-Khorayef said Saudi Arabia’s alignment of these four strategies positions it to become both a regional and global manufacturing center.

He noted that the Kingdom’s strong natural and human resources, including abundant oil, gas, petrochemicals, and minerals, complement its strategic geographic location, which grants access to key and emerging markets across the region, Africa, Central Asia, and other parts of Asia.

Boosting Petrochemical Conversion

Al-Khorayef revealed that efforts are underway to channel part of Saudi Arabia’s petrochemical exports into local downstream industries.

A successful pilot project carried out in cooperation with the Ministry of Energy led to a domestic demand surge of more than 300,000 tons for one product, with more items expected to be added in the future. This initiative, he said, will bolster downstream industries and strengthen their contribution to the national economy.

Expanding Pharmaceutical and High-Tech Manufacturing

On pharmaceuticals, the minister pointed to a clear plan that has significantly increased the number of local factories. The Kingdom, he said, has succeeded in localizing the production of sensitive medical products such as insulin and is currently advancing projects in vaccines and biologics.

Al-Khorayef also highlighted Saudi Arabia’s growing focus on advanced technology industries, including electronics and microchips. He cited partnerships with private-sector firms such as Alat and cooperation with the Ministry of Communications to promote information technology within this advanced industrial push.

Attracting Future Technologies

The minister emphasized the Kingdom’s strong infrastructure, noting that its ports, roads, and railways reflect political and financial stability and enhance competitiveness in the energy sector, a critical component of industrial zones.

“This combination of resources, location, and infrastructure makes Saudi Arabia a key partner and an essential hub in global industries,” he said, adding that the ministry’s focus is on attracting technologies of the future rather than those of the past.

Over the past six years, Al-Khorayef said, the government has introduced a range of effective policies and incentives - most notably the promotion of local content, which has become the biggest driver of investment. It gives investors priority in the domestic market, including in government procurement and major corporate contracts.

He added that the state’s investment in industrial city infrastructure has been a decisive factor, with more than 25 million square meters developed and advanced industrial cities and ready-built factories established.

These conditions, he explained, make investment easier, thanks to industrial financing from the Saudi Industrial Development Fund, export financing from the Saudi EXIM Bank, and incentives under the “Made in Saudi” program led by the Saudi Export Development Authority.

These policies, he said, are stable and long-term, while temporary incentives are available for energy projects and standardized incentives for localization, subject to the approval of a ministerial committee, measures that enhance the Kingdom’s ability to attract quality investments.

Expanding Global Partnerships

Al-Khorayef said his recent tours to several world capitals aim to encourage the Saudi private sector to forge international partnerships and promote the Kingdom as a leading global investment destination.

He noted that Saudi Arabia recently took part in Germany’s K Show 2025, where German companies expressed keen interest in investing in the Kingdom.

The minister also said Saudi Arabia has become a global platform for discussing mining issues among governments and companies, stressing that the sector needs more firms, investment, and scientific research. He said current efforts focus on strengthening the technical and scientific aspects of mining to enhance its efficiency.

Mining, he added, is the third pillar of Saudi industry after oil, gas, and petrochemicals, with mineral wealth estimated at around 2.5 trillion riyals ($667 billion).

He disclosed that efforts are underway to extract lithium from water used in oil and gas operations as well as from desalinated and seawater, expressing optimism about achieving positive results in the near future.



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.