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Yanbu Port Secures 4 Million Barrels of Oil Per Day for Global Markets

A satellite image captured by Planet Labs shows oil infrastructure at Yanbu Port on Saudi Arabia’s Red Sea coast on March 4, 2026 (AFP)
A satellite image captured by Planet Labs shows oil infrastructure at Yanbu Port on Saudi Arabia’s Red Sea coast on March 4, 2026 (AFP)
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Yanbu Port Secures 4 Million Barrels of Oil Per Day for Global Markets

A satellite image captured by Planet Labs shows oil infrastructure at Yanbu Port on Saudi Arabia’s Red Sea coast on March 4, 2026 (AFP)
A satellite image captured by Planet Labs shows oil infrastructure at Yanbu Port on Saudi Arabia’s Red Sea coast on March 4, 2026 (AFP)

Yanbu Port on the Red Sea has emerged as a vital hub for international trade, stepping in to stabilize global energy and commodity supplies amid the near-total closure of the Strait of Hormuz due to the Iran conflict and ongoing military tensions.

In a move underscoring Saudi Arabia’s infrastructure readiness, oil exports through the port have surged to nearly 4 million barrels per day, marking a historic increase aimed at easing global shortages and ensuring steady supply to international markets.

At the center of this transformation is the East-West Pipeline, a strategic artery stretching across the Arabian Peninsula. The pipeline transports crude oil from the Kingdom’s vast eastern fields to Yanbu Industrial City, enabling Saudi Arabia to reroute nearly half of the shipments that would normally pass through the Strait of Hormuz. According to Reuters, flows peaked at 4.19 million barrels per day.

The surge has placed operational pressure on Yanbu Port, where around 40 oil tankers are currently waiting offshore, despite the port’s capacity to handle only four supertankers at a time.

Saudi Aramco, the world’s largest oil exporter, is leveraging this route to offset supply disruptions. On March 10, the company confirmed it could pump up to 7 million barrels per day to Yanbu via the pipeline, with roughly 5 million barrels available for export and the remainder allocated to domestic refining.

Data from Kpler shows Saudi crude exports exceeded 7 million barrels per day in February. In March, exports via Yanbu averaged about 2.9 million barrels per day, significantly higher than the 770,000 barrels recorded in January and February. During the week beginning March 16, exports climbed further to nearly 4 million barrels per day, with expectations of continued growth.

Shipping markets have responded swiftly. Freight rates for transporting Saudi crude from the Red Sea to Asia have declined in recent weeks after an initial spike above $450,000 per day. The influx of tankers into Yanbu has increased supply, easing price pressures and improving cost competitiveness.

The steady flow of shipments has also strengthened supply reliability for key Asian importers, including South Korea, Japan, and China, reinforcing confidence in Saudi Arabia’s logistical capabilities.

Beyond energy, Saudi Arabia has expanded its role in safeguarding regional supply chains.

The Transport General Authority has issued additional licenses to Saudi Arabia Railways (SAR), boosting container capacity to over 2,500 units daily. A newly launched land corridor linking Dammam to Sharjah, supported by thousands of trucks, has further enhanced trade flows across the Gulf.

With these measures, Saudi Arabia has positioned itself as a critical lifeline for global trade, ensuring stability amid ongoing geopolitical disruptions.

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Business

Alswaha Strengthens Saudi Arabia’s AI Partnerships, Expands Computing Infrastructure

Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to build an integrated AI ecosystem. SPA
Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to build an integrated AI ecosystem. SPA
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Alswaha Strengthens Saudi Arabia’s AI Partnerships, Expands Computing Infrastructure

Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to build an integrated AI ecosystem. SPA
Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to build an integrated AI ecosystem. SPA

Minister of Communications and Information Technology Abdullah Alswaha held a series of meetings with leaders of major global technology and investment companies during the second day of his visit to Silicon Valley.

The meetings focused on strengthening Saudi Arabia’s partnerships in artificial intelligence (AI), expanding computing capabilities and infrastructure, accelerating the development of advanced applications and robotics, and attracting high-value investments.

Alswaha met with OpenAI CEO Sam Altman and senior company executives to discuss expanding cooperation in advanced AI models, leveraging the computing capabilities and infrastructure being developed by HUMAIN to support the large-scale deployment of AI models, and accelerating the development of advanced national applications in priority sectors.

In the field of AI infrastructure, Alswaha met with Dell Technologies Chairman and CEO Michael Dell to discuss accelerating enterprise adoption of AI solutions, integrating Dell AI Factory solutions with HUMAIN’s computing capabilities to support the deployment of enterprise AI at scale, and advancing knowledge transfer and national capability development to support the transformation of key sectors in the Kingdom.

He also met with Cognition AI Co-Founder and CEO Scott Wu and senior company executives to discuss expanding the use of autonomous software engineering solutions, improving developer productivity, enabling the deployment of Devin and software agents through HUMAIN’s computing capabilities, and accelerating national capabilities in building and operating AI applications.

Alswaha also met with Solidigm Senior Vice President and Head of Global Operations Kyle Fukuda to discuss using advanced storage solutions in the computing infrastructure and data centers being developed by HUMAIN, improving data access efficiency and computing resource utilization, and supporting the expansion of AI applications in the Kingdom.

In the investment sector, Alswaha met with Social Capital Founder and CEO Chamath Palihapitiya to discuss attracting the firm’s investments into the infrastructure and computing capabilities being developed by the Kingdom, expanding investment in advanced technologies, and connecting global capital with high-value opportunities in Saudi Arabia.

These meetings are part of Saudi Arabia’s efforts to build an integrated AI ecosystem encompassing advanced models, computing capabilities, data centers, infrastructure, applications, robotics, and investment, further strengthening the competitiveness of the Kingdom’s digital economy and reinforcing its position as a global hub for technology, innovation, and AI.

Business

China’s Car Exports in First 8 Months Surpass 2025 Total, as EV Sales Soar

FILE - Aerial view of new cars waiting for shipment at a port in Shanghai, China, on Jan. 14, 2026. (Chinatopix via AP, File)
FILE - Aerial view of new cars waiting for shipment at a port in Shanghai, China, on Jan. 14, 2026. (Chinatopix via AP, File)
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China’s Car Exports in First 8 Months Surpass 2025 Total, as EV Sales Soar

FILE - Aerial view of new cars waiting for shipment at a port in Shanghai, China, on Jan. 14, 2026. (Chinatopix via AP, File)
FILE - Aerial view of new cars waiting for shipment at a port in Shanghai, China, on Jan. 14, 2026. (Chinatopix via AP, File)

China’s passenger car exports in the first eight months of this year already surpassed last year's total, an industry association said Thursday, though domestic sales continued to decline.

Passenger car exports in August jumped 67.1% from the year before to around 890,000 units, driven by plug-in hybrids and pure electric vehicles, according to the China Association of Automobile Manufacturers (CAAM).

China exported more than 6.2 million passenger vehicles in January-August. Exports of all types of vehicles totaled 7.1 million last year, CAAM data show, including about 6 million passenger vehicles.

The world’s largest car exporter is on track to achieve 50% to 70% growth in full-year passenger vehicle exports, according to S&P Global Ratings.

At home, passenger car sales fell 25.6% year-on-year in August to just below 1.5 million vehicles.

China’s domestic car market is under pressure from intense competition and price wars, while the slowing economy has undermined consumer confidence.

China’s car exports have been stronger than expected so far this year, helped by competitive pricing and quality, said Stephen Chan, an associate director at S&P Global Ratings.

“It’s likely that strong export growth will largely mitigate the domestic weakness,” The Associated Press quoted him as saying.

Over the past few months the energy shock from the Iran war and rising fuel prices have led more drivers of gasoline and diesel-powered vehicles to shift to EVs.

Hefty tariffs have in effect kept most Chinese-made passenger cars out of the US market. But China has been exporting and selling more of its vehicles to Europe, Latin America, Africa and Southeast Asia.

Chinese automakers are also setting up more factories overseas.

Weak domestic demand is increasing carmakers’ incentives to redirect capacity overseas, analysts at Morgan Stanley said in a recent research note, and Chinese carmakers are increasingly moving beyond vehicle exports toward local assembly and manufacturing to ease impacts from trade barriers and reduce logistics costs.

Business

‘Disciplined Pricing’: Saudi Arabia Tightens Motor Insurance Oversight, Protects Competition

 A vehicle showroom in Riyadh (Asharq Al-Awsat) 
 A vehicle showroom in Riyadh (Asharq Al-Awsat) 
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‘Disciplined Pricing’: Saudi Arabia Tightens Motor Insurance Oversight, Protects Competition

 A vehicle showroom in Riyadh (Asharq Al-Awsat) 
 A vehicle showroom in Riyadh (Asharq Al-Awsat) 

Saudi Arabia’s Insurance Authority is tightening oversight of motor insurance pricing to ensure rates are fair, sound and sustainable, while curbing practices that could undermine competition.

It has also introduced six regulatory standards for motor insurance pricing, requiring insurers to set premiums that are fair and reasonable and to base them on underwriting criteria that avoid pricing below technically sustainable levels or exposing insurers to losses.

Consumer protection

Specialists told Asharq Al-Awsat that the rules should make pricing more transparent without pushing insurers toward uniform rates, preserving competition on price, service and claims quality.

They cautioned that consumers could be negatively affected if the standards artificially narrowed price differences. But rules that curb undisciplined pricing while leaving room for genuine competition would benefit the market and policyholders.

Salem Baajajah, a professor of economics at King Abdulaziz University, stressed that oversight should focus on the fairness of pricing methodologies rather than making final rates similar across insurers.

He explained that the measures would help prevent unfair pricing, price dumping and other harmful practices while allowing insurers to compete through operational efficiency, claims management, service quality, innovation and more accurate risk models.

Fair trade

Consumer protection specialist Abdulaziz Al-Khudairi noted that the Insurance Authority was also addressing ambiguities surrounding vehicle leases to protect lessees’ rights, increase transparency and apply the principle of “fair trade.”

He explained that comprehensive insurance rules require financing companies to obtain at least three insurance quotes annually and offer the lessee the lowest-priced option, preventing customers from bearing unnecessary additional costs.

According to Al-Khudairi, discounts granted by insurers, including for a claims-free record, are credited to a dedicated insurance account for the lessee, with the balance settled at the end of the contract.

The rules also require vehicles to be revalued annually to reflect depreciation, with premiums declining accordingly instead of remaining based on the vehicle’s original new-car value throughout the financing period.

Al-Khudairi added that the lessee is the “primary beneficiary” in cases of partial loss, receiving compensation for repairs and managing vehicle maintenance, while the lessor is the “secondary beneficiary” in a total loss, covering the outstanding financing balance.

Rising prices

Some policyholders reported that motor insurance prices in Saudi Arabia have risen steadily, in some cases to six times previous levels. They expect the new standards to produce fairer rates based on clear and sound principles.

The Saudi Insurance Market Report for the first quarter of 2026 showed coverage expanding to 11.2 million vehicles, with gross written motor insurance premiums reaching SAR 5 billion ($1.3 billion). The monthly complaint rate fell to 0.09 percent from 0.12 percent.