FII Forum Focuses on Harnessing AI to Reshape Global Landscape

Panel discussion attended by Investment Minister on sidelines of FII conference (Asharq Al-Awsat)
Panel discussion attended by Investment Minister on sidelines of FII conference (Asharq Al-Awsat)
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FII Forum Focuses on Harnessing AI to Reshape Global Landscape

Panel discussion attended by Investment Minister on sidelines of FII conference (Asharq Al-Awsat)
Panel discussion attended by Investment Minister on sidelines of FII conference (Asharq Al-Awsat)

Artificial intelligence dominated discussions on the second day of the Future Investment Initiative (FII) conference in Riyadh, held under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and attended by a large audience of local and international participants.

Speakers stressed the need to harness AI to reshape the global landscape and achieve a balance of power, prosperity and sustainable development.

The ninth edition of the FII continued its sessions at the King Abdulaziz International Conference Center, featuring panels on AI as a strategic field, the importance of critical and rare minerals underpinning the transition to clean energy and the digital economy, AI’s energy demands, and the role of digital trade as a growing pillar of the global economy.

Experts highlighted the need to build alliances and systems that keep pace with AI growth and to explore strategies ensuring the technology’s sustainable development. The global AI market, they noted, is expected to reach $4.8 trillion by 2033.

Leaders of major global companies and changemakers joined panel discussions to explore the latest AI advances and shape a more inclusive era of technological progress.

The sessions also addressed key sectors, emphasizing investment in renewable energy and how to strike a balance between cost and sustainability.

Non-Oil Growth

Minister of Economy and Planning Faisal Alibrahim said in a panel discussion that the private sector remains the main driver of non-oil growth, noting its rising contribution to GDP since the launch of Saudi Vision 2030 in 2016 - a sign, he said, of the effectiveness of economic policies and reforms that have strengthened the business environment.

The Kingdom gives top priority to structural reforms and enhancing private sector dynamism, Alibrahim said, adding that ongoing efforts have improved market efficiency, increased competitiveness and expanded economic opportunities for investors and entrepreneurs.

He said Saudi Arabia’s business culture had undergone a fundamental transformation since Vision 2030, becoming focused on efficiency, speed and innovation. This shift, he added, has strengthened the economy’s ability to keep pace with global transformations and achieve major gains in performance and productivity.

Alibrahim stressed that economic resilience should be seen as a competitive advantage, not merely an ability to withstand shocks.

Strengthening resilience, he said, helps attract investment, boost market confidence and ensure stable, sustainable growth. Saudi Arabia, he added, is deepening its global economic integration and accelerating innovation-driven entrepreneurship, reinforcing its position as a leading economic hub linking regional and international markets.

He concluded that technology has become a cornerstone of global economic stability, accelerating crisis response, identifying future risks and enhancing coordination among economies. “Investing in technology and innovation is a strategic path to sustainable growth,” he said.

Regional Headquarters

Minister of Investment Eng. Khalid al-Falih said Saudi Arabia has become a global investment destination under the guidance of Crown Prince and Prime Minister Mohammed bin Salman, who has directed efforts to enable multinational companies to operate in the Kingdom.

He said 700 global companies have now obtained licenses to conduct business in Saudi Arabia, while the government is also facilitating the work of international organizations such as the United Nations. The Kingdom, he added, is implementing a roadmap to become one of the most competitive environments for family businesses to grow and thrive.

Al-Falih said Saudi Arabia’s stable regulatory and investment climate makes it highly attractive to investors. Licensing procedures, he noted, have become faster and more flexible, enabling family-owned investment groups around the world to benefit from the Kingdom’s advanced business environment.

He said the Saudi stock market’s capitalization stands at around $3 trillion and is expected to grow by 20 percent over the next seven years — reflecting the strength and diversity of the national economy.

The minister added that the Kingdom continues to develop financial and regulatory incentives to attract investors. The “Invest in Saudi Arabia” platform, he said, will help highlight available investment opportunities and facilitate cross-border capital flows in coordination with financial institutions.

Tourism’s Expanding Role

Minister of Tourism Ahmed Al-Khateeb said Saudi Arabia’s tourism sector is growing rapidly, with plans to double its contribution to GDP to 10 percent by 2030, bringing it in line with the global average.

Speaking during an FII panel, Al-Khateeb said the Kingdom’s tourism activity is expanding at an unprecedented rate and aims to capture 3 to 4 percent of the global tourism market.

He said Saudi Arabia plans to welcome about 50 million international visitors annually by 2030, out of a total target of 150 million tourists. The focus, he added, will be on attracting upper-middle and high-income travelers. Tourism, he said, has become one of the main pillars of Vision 2030 and is undergoing a major transformation to diversify national income away from oil dependency.

Riyadh Expo 2030

Talal Al-Marri, CEO of Riyadh Expo 2030, said infrastructure work for the global exhibition will begin before the end of this year. He said 179 countries will be invited to participate in the event, which is expected to attract around 42 million visits across a total area of 6 million square meters.

Al-Marri said Saudi Arabia is committed to achieving the goals of Vision 2030, and described the FII conference as a global platform for exchanging views on the “future of development and innovation.”

He added that Expo 2030 would provide “a real opportunity for human connection and bringing people together in one place to share opportunities,” describing Riyadh as “the ideal city to lead this global challenge.”

AI as a Global Resource

In a panel titled AI and computing becoming a global resource, speakers said generative AI can help optimize portfolio structures but requires further model development and research.

They said investment in AI is now a key global trend amid surging demand and rapid progress, noting that Saudi Arabia — through its Public Investment Fund — is spearheading several leading initiatives in the field and positioning itself as a frontrunner in this emerging industry.

The panelists added that AI models must be built in more balanced and distinctive ways to avoid monotony and repetition, and that the availability of clean energy would open major opportunities for the sector and help achieve future goals.



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.