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Riyadh, Ottawa Launch Foreign Investment Agreement and Reactivate Joint Commission

The Saudi Minister of Investment meets with the Canadian Minister of Trade. Asharq A-Awsat
The Saudi Minister of Investment meets with the Canadian Minister of Trade. Asharq A-Awsat
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Riyadh, Ottawa Launch Foreign Investment Agreement and Reactivate Joint Commission

The Saudi Minister of Investment meets with the Canadian Minister of Trade. Asharq A-Awsat
The Saudi Minister of Investment meets with the Canadian Minister of Trade. Asharq A-Awsat

Saudi Arabia and Canada have launched negotiations on a Foreign Investment and Protection Agreement in the Canadian capital, Ottawa, a move reflecting the shared commitment to strengthening bilateral economic relations.

The talks coincided with a visit by a high-level Saudi delegation led by the Minister of Investment, Eng. Khalid Al-Falih, during which both sides announced the reactivation of the Joint Economic Commission.

These developments are gaining significant momentum, supported by Canada’s endorsement of Saudi Vision 2030 and the two countries’ willingness to expand their economic partnership across vital and non-oil sectors.

The Canadian Ambassador to Saudi Arabia, Jean-Philippe Linteau, told Asharq Al-Awsat that Canada was thrilled to welcome Al-Falih.

“His meetings with Prime Minister Mark Carney, Minister of Trade Maninder Sidhu and Foreign Minister Anita Anand, as well as with senior Canadian business leaders, were a clear illustration of Canada’s desire to grow the economic partnership between Saudi Arabia and Canada,” said Linteau.

The diplomat added that “there is growing momentum because of Canada’s support for the Kingdom’s Vision 2030 goals and the visit helped advance key engagement on trade and investment as well as partnerships in sectors such as education, mining, AI and infrastructure.”

In 2024, Saudi Arabia was Canada’s largest merchandise trading partner in the Middle East. Two-way merchandise trade between the two countries in 2024 was valued at approximately $4.1 billion.

Over 150 Canadian companies are active in Saudi Arabia, offering competitive solutions in artificial intelligence and frontier technology, healthcare, infrastructure, mining, defense products, and creative industries.

During their meeting in Ottawa, Sidhu and Al-Falih announced the launch of negotiations for a Foreign Investment and Protection Agreement between Canada and Saudi Arabia. They also announced the reactivation of the Joint Economic Commission, a treaty-based mechanism to promote trade and economic initiatives of mutual benefit.

Sidhu and Al-Falih welcomed the October 23 signing of a memorandum of understanding between Export Development Canada and the Saudi EXIM Bank.

The increased partnership between Canada and Saudi Arabia will boost business opportunities, increase bilateral trade and unlock export opportunities and investments in Canadian and Saudi Arabian companies alike.

The two ministers also discussed future strategic sector partnerships between Canadian and Saudi Arabian companies, including in the areas of artificial intelligence and frontier technologies, healthcare, infrastructure, mining, defense, and creative industries.

They also met with business leaders and industry stakeholders, participated in a business round table with Invest in Canada and focused on deepening Canada-Saudi relations by highlighting commercial success stories between Canadian and Saudi companies.

“Saudi Arabia is an important market for Canada as our largest bilateral merchandise trading partner in the Middle East. We’re committed to advancing economic cooperation and mutually beneficial investment opportunities to foster greater commercial prosperity for Canadians and Saudis,” Sidhu said in a statement.

“I look forward to strengthening the relationship between our two countries and promoting continued cooperation for our businesses, industries and workers,” he added.

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Business

Turkish Monthly Inflation Near 3%, Keeping Pressure on Central Bank

A woman holding an umbrella on a rainy day during the holy fasting month of Ramadan outside the Hagia Sophia mosque in Istanbul, Türkiye, Friday, Feb. 27, 2026. (AP)
A woman holding an umbrella on a rainy day during the holy fasting month of Ramadan outside the Hagia Sophia mosque in Istanbul, Türkiye, Friday, Feb. 27, 2026. (AP)
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Turkish Monthly Inflation Near 3%, Keeping Pressure on Central Bank

A woman holding an umbrella on a rainy day during the holy fasting month of Ramadan outside the Hagia Sophia mosque in Istanbul, Türkiye, Friday, Feb. 27, 2026. (AP)
A woman holding an umbrella on a rainy day during the holy fasting month of Ramadan outside the Hagia Sophia mosque in Istanbul, Türkiye, Friday, Feb. 27, 2026. (AP)

Turkish inflation cooled to 2.96% on a monthly basis in February while the annual figure rose to 31.53%, largely as expected, according to official data on Tuesday that tees up a tough rate decision for the central bank next week.

Beyond the price pressure, market turmoil due to war between US-Israel and neighboring Iran prompted emergency measures by the central bank, including some $8 billion in FX sales on Monday, resulting in a roughly 300 basis-point rise in ‌the overnight rate to ‌about 40%.

Analysts say the central bank could respond ‌by ⁠officially halting an easing ⁠cycle that began in late 2024. In January, the monetary policy committee trimmed the bank's main policy interest repo rate by 100 basis points to 37%.

In January, monthly consumer price inflation surged to a higher-than-expected 4.84% while the annual rate slipped to 30.65%.

In February, monthly inflation was driven by a 6.89% surge in food and drinks prices, according to the Turkish Statistical Institute, marking ⁠the second month of pressure that has raised worries ‌about a disinflation trend that began in ‌2024 but recently slowed.

Finance Minister Mehmet Simsek said he expected the recent high food ‌price increases to be offset in the coming period, depending on weather ‌conditions, while acknowledging the energy price rises triggered by the Iran conflict.

"We are working to limit the inflationary impact of rising oil prices due to geopolitical developments," he said, adding that all policy tools are being used in coordination to sustain the ‌disinflation process.

In a Reuters poll, monthly inflation was forecast to be 3% with the annual rate seen at ⁠31.55%.

The data ⁠also showed the domestic producer price index rose 2.43% month-on-month in February for an annual increase of 27.56%.

The central bank has in recent weeks kept rate-cut expectations on track even as it has repeated it was ready to tighten policy if needed.

JPMorgan - which like most analysts had previously predicted another cut at the central bank's March 12 policy meeting - said on Monday it now expects the bank to hold rates. It also revised its year-end inflation forecast to 25% from 24%.

Last month, the central bank nudged up its year-end inflation forecast range by two percentage points to 15–21% and maintained its interim 16% target, despite market doubts over whether the downward trend seen throughout 2025 is on track.

Business

Gold Retreats as Firmer Dollar Offsets Geopolitical Safe-haven Support

FILE PHOTO: Gold imitations are seen in this illustration picture taken February 20, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Gold imitations are seen in this illustration picture taken February 20, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Gold Retreats as Firmer Dollar Offsets Geopolitical Safe-haven Support

FILE PHOTO: Gold imitations are seen in this illustration picture taken February 20, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Gold imitations are seen in this illustration picture taken February 20, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

Gold prices eased on Tuesday, pulled back by a stronger dollar, while investors assessed the impact of an escalating US and Israeli air war against Iran.

Spot gold was down 0.4% at $5,305.23 per ounce, as of 0646 GMT. In the previous session, bullion climbed to its highest point in more than four weeks after the US and Israel launched strikes on ‌Iran over ‌the weekend.

US gold futures for April delivery ‌were ⁠up 0.3% at $5,326.40.

The ⁠dollar hovered close to a more than five-week high reached on Monday, supported by firm demand and cautious market sentiment. A stronger greenback typically makes dollar-denominated assets such as bullion more expensive for foreign buyers.

"Inflationary concerns are proving to be of benefit to the dollar while being of some hindrance to the gold ⁠price," KCM Trade chief market analyst Tim Waterer ‌said.

"Gold would arguably be trading ‌higher than current levels were it not for dollar appreciation since the ‌conflict intensified."

A senior official from the Iranian Revolutionary Guard Corps (IRGC) ‌said the Strait of Hormuz has been closed and warned Iran would fire on any ship trying to pass through the strategic waterway, according to Iranian media.

This is Iran's most explicit warning since ‌telling ships it was closing the export route on Saturday, a move that threatens to choke a ⁠fifth of ⁠global oil flows and send crude prices sharply higher.

US President Donald Trump has warned of a "big wave" of further attacks coming soon, without providing specific details.

"Persistent safe-haven demand due to the ongoing conflict is keeping a floor under the gold price," Waterer added.

The attack on Iran has pitched the Gulf into war, killing scores of civilians in Iran, Israel and Lebanon, thrown global air transport into chaos and shut down shipping through the Strait of Hormuz.

Silver fell 5.8% to $84.25/oz, after climbing to a more than four-week high on Monday. Platinum lost 4.4% to $2,200.89/oz, palladium fell 1.2% to $1,745.26.

Business

Egypt’s Non-Oil Private Sector Contracted in February as Costs Rose

Egyptians walk past a poster depicting US dollars and other currencies outside an exchange office in Cairo, Egypt, Thursday, Jan. 12, 2023. (AP)
Egyptians walk past a poster depicting US dollars and other currencies outside an exchange office in Cairo, Egypt, Thursday, Jan. 12, 2023. (AP)
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Egypt’s Non-Oil Private Sector Contracted in February as Costs Rose

Egyptians walk past a poster depicting US dollars and other currencies outside an exchange office in Cairo, Egypt, Thursday, Jan. 12, 2023. (AP)
Egyptians walk past a poster depicting US dollars and other currencies outside an exchange office in Cairo, Egypt, Thursday, Jan. 12, 2023. (AP)

Egypt's non-oil ‌private sector output contracted in February for the first time in four months, as demand softened and cost pressures intensified, S&P Global reported on Wednesday.

The headline Purchasing Managers' Index (PMI) fell to 48.9 in February from 49.8 in January, remaining below the 50.0 threshold that separates growth from contraction. ‌Despite the decline, ‌the PMI was above ‌its ⁠long-run average of ⁠48.3.

Output declined for the first time since October, and all five sub-components of the PMI indicated a weakening in business conditions compared to January.

"The February PMI data pointed ⁠to a slowdown in ‌the Egyptian non-oil ‌private sector as activity curtailed and new ‌order volumes weakened," said David Owen, ‌Senior Economist at S&P Global Market Intelligence.

New orders saw a modest contraction, with downturns in manufacturing, wholesale & retail, and services, ‌while construction experienced an increase in new work. Employment fell for ⁠the ⁠third consecutive month, albeit at a slower pace, as firms implemented hiring freezes and job cuts.

Cost pressures accelerated, driven by rising global commodity prices, notably oil and metals, leading to the sharpest increase in business costs in nine months. Despite this, selling prices remained largely unchanged, with only a small fraction of firms passing on the higher costs to customers.