Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability
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Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Saudi Arabia and Russia: A Strategic Partnership Beyond the Oil Barrel, Shaping Global Economic Stability

Economic relations between Saudi Arabia and Russia have entered an advanced stage of strategic transformation, moving beyond traditional cooperation in energy markets toward a multidimensional partnership encompassing investment, technology, industry, and space. This development comes amid growing coordination between the two countries, strengthening their influence within the global economic landscape and providing greater stability to energy markets in an increasingly volatile geopolitical environment.

This momentum in bilateral relations coincides with Saudi Arabia’s prominent role as a principal guest of honor at the St. Petersburg International Economic Forum, reflecting the Kingdom’s growing presence at major international economic gatherings and underscoring the level of mutual trust between Riyadh and Moscow. The forum also served as an important platform for signing several agreements and memoranda of understanding that have expanded cooperation in investment, technology, and industry, advancing the partnership toward deeper strategic integration.

According to economists and specialists, the Saudi-Russian partnership has evolved beyond a conventional bilateral relationship into an influential balancing force within the international economic system, particularly through its contribution to energy market stability and support for economic diversification efforts aligned with the goals of Vision 2030, including increasing the contribution of non-oil sectors and localizing knowledge and expertise.

In this context, Saudi Shura Council member Fadl bin Saad Al-Buainain told Asharq Al-Awsat that the Kingdom has reshaped its economic relations in recent years around principles of balance and openness toward major global economic powers. He noted that Russia represents an important partner given its weight in global energy markets, making enhanced cooperation with Moscow a strategic choice that serves the interests of both countries while supporting the stability of international markets.

He added that coordination between Riyadh and Moscow—whether bilaterally or through the OPEC+ alliance—has helped achieve notable balance in oil markets and mitigate sharp fluctuations driven by geopolitical tensions. According to Al-Buainain, this model of cooperation has proven effective not only in the energy sector but also across broader economic and development fields.

He pointed out that the most significant areas of cooperation recently agreed upon during the St. Petersburg Economic Forum include the economy, energy, and food security, in addition to defense industries and technology, as well as important agreements facilitating travel and mobility between the two countries.

Al-Buainain emphasized that mining, technology, and space represent key pillars of bilateral cooperation due to their strategic importance to both sides. He explained that mining is among the Kingdom’s most promising sectors and a priority within its economic diversification plans, making it a natural area for cooperation with Russia. He also highlighted technology cooperation—particularly in artificial intelligence, digital transformation, and space technologies—as a priority under Vision 2030 because of its long-term strategic value.

He stressed the importance of moving from agreements to implementation, noting that serious efforts to activate these understandings would generate tangible economic benefits and provide greater momentum for the partnership in the coming years, thereby strengthening the strategic relationship between the two countries.

High-Quality Bilateral Cooperation

For his part, Dr. Abdulrahman Baashen, head of the Al-Shorouq Center for Economic Studies in Jazan, southern Saudi Arabia, said there is a growing Saudi-Russian drive to elevate bilateral cooperation to its highest possible level. He noted that this would lay the groundwork for a distinctive form of economic and industrial integration and establish a joint framework for addressing geopolitical challenges in the region and Europe, helping preserve economic stability at both the regional and international levels.

Baashen told Asharq Al-Awsat that relations between Riyadh and Moscow have accelerated across multiple sectors as the culmination of agreements signed over previous years, alongside ongoing coordination within OPEC+. He noted that this cooperation has supported global energy market stability amid geopolitical tensions, including the repercussions of the US-Iran conflict, while also expanding into technology, industry, space, and satellite-related fields.

He believes that several Vision 2030 initiatives have found significant opportunities for integration with Russian partnerships. In his view, bilateral cooperation has become a long-term strategic path carrying both political and economic dimensions, helping shape a new reality amid rapidly changing geopolitical conditions while providing greater opportunities for economic diversification and political stability.

Baashen also noted that the Saudi-Russian Joint Governmental Committee has helped launch more than 70 joint projects valued at over $70 billion. He added that the signing of 13 agreements and memoranda of understanding on the sidelines of the St. Petersburg Forum reflects a clear commitment to high-quality bilateral cooperation aimed at diversifying the economy, increasing joint investments, localizing advanced technologies, strengthening both countries’ regional and global presence, and fostering more balanced international relations that support economic and political stability worldwide.

Riyadh and Moscow as Drivers of Economic Stability

Former Chairman of the Federation of Saudi Chambers, Engineer Abdullah Al-Mubty, told Asharq Al-Awsat that Saudi Arabia and Russia maintain “full and continuous coordination to manage market imbalances through joint decisions to increase or reduce production, ensuring fair prices that serve both producers and consumers.” He explained that the importance of this cooperation stems from the fact that the two countries rank among the world’s largest oil producers and exporters. He added that Vision 2030’s objectives of economic diversification, attracting investment, and localizing technology make Russia a vital partner in Saudi Arabia’s pursuit of balanced international relations.

Al-Mubty argued that this Saudi-Russian alignment has created a safety net that prevents oil prices from either collapsing or soaring uncontrollably. The presence of both countries, he said, helps maintain global economic balance, ensures secure energy supplies, and supports the uninterrupted flow of oil to meet international demand. Beyond energy coordination, he noted, the two countries have also moved toward broader economic agreements aimed at promoting global stability.

Mining, Technology, and Space

Al-Mubty said that mining, technology, and space have become the principal pillars shaping the future of Saudi-Russian cooperation. Both countries are actively working to implement joint investment agreements that support economic diversification while advancing knowledge-transfer initiatives and enhancing the resilience of supply chains between them.

Regarding the mining sector, he highlighted the significant opportunities available to Saudi Arabia through Russian expertise, particularly in exploration activities. Russia’s long-standing leadership in geological surveying, he explained, can contribute substantially to assessing the Kingdom’s mineral resources and expanding joint investment opportunities in rare minerals. He also noted that Saudi Arabia’s major investment opportunities have become a strong attraction for leading Russian mining companies.

In the technology sector, recent developments have opened promising avenues for cooperation focused primarily on integrating artificial intelligence and digital transformation applications to improve operational efficiency and competitiveness in Saudi industry and mining. In this regard, Al-Mubty stressed the strategic importance of the partnership between the Public Investment Fund and the Russian Direct Investment Fund, manifested through dedicated investment vehicles aimed at financing and localizing advanced technologies.

He also highlighted the longstanding cooperation in the space sector, noting that agreements related to space exploration have paved the way for a new phase of joint work. This cooperation now extends to ongoing coordination with the Russian space agency Roscosmos in training Saudi personnel for space missions and collaborating on satellite navigation systems.

Investment and Trade

Al-Mubty stated that current trade exchange between Riyadh and Moscow stands at approximately $4 billion. He also expects Saudi Arabia to attract around $1.5 billion in direct Russian investment over the coming years. According to him, both countries are clearly committed to expanding these figures through new joint ventures, while the Saudi-Russian Business Council has set a strategic target of increasing bilateral trade to $12 billion in the years ahead.

He concluded that close cooperation between Riyadh and Moscow has become an indispensable pillar of global economic and energy-market stability by helping maintain a delicate balance between supply and demand. Expanding this partnership, he added, directly contributes to strengthening food security and diversifying investments in key sectors such as technology and agriculture, reducing the impact of geopolitical volatility on economic growth in both countries. He emphasized that the partnership’s greatest significance lies in three core areas: stabilizing energy markets, strengthening food security, and expanding non-oil investments.

A Deeply Rooted Partnership

Saudi economist Dr. Ibrahim Al-Omar, supervisor of the consultancy firm Sharah Studies, told Asharq Al-Awsat: “The partnership between Riyadh and Moscow extends beyond oil toward global economic stability. Saudi-Russian relations are no longer tied solely to the oil barrel, even though oil remains their backbone.”

Al-Omar elaborated on the operational dimensions of the partnership, saying: “As the two pillars of OPEC+, Saudi Arabia and Russia have led the coalition’s decisions to raise production ceilings by roughly three million barrels per day during 2025—equivalent to nearly 3 percent of global demand—through carefully phased increases that can be paused or reversed whenever market stability requires.”

Discussing recent crises, he added: “When the US-Iran conflict intensified and disruptions affected supplies through the Strait of Hormuz last May, most of the agreed production increase came from Saudi Arabia and Russia. This was the clearest demonstration that coordination between the two major producers acts as a safety valve that restrains volatility, eases inflationary pressures, and protects energy-dependent economies from geopolitical shocks.”

According to Al-Omar, the center of gravity in the relationship is increasingly shifting from traditional trade toward manufacturing and knowledge transfer. While energy in all its forms—conventional, renewable, and nuclear—remains at the forefront, greater emphasis is now being placed on industry, mining, the digital economy, artificial intelligence, and space sciences.

He said: “I saw this clearly during the Saudi Minister of Industry and Mineral Resources’ visit to Russia, where mining exploration opportunities covering 50,000 square kilometers across the Nuqrah, Suhaibrah, and Al-Duwaihi belts were presented. Discussions also included launching a joint technology platform worth $1 billion and expanding space cooperation that leverages Russia’s extensive experience in the field.”

Reviewing the broader indicators, Al-Omar said: “These developments are the product of a well-established institutional framework managed efficiently by the Joint Governmental Committee, which held its ninth session in Riyadh last December. The figures speak for themselves: more than 70 joint projects worth over $70 billion, alongside non-oil trade that surged from SAR 1.84 billion ($490.6 million) in 2016 to SAR 12.5 billion (around $3.3 billion) in 2024. In addition, 13 new agreements and memoranda of understanding were signed during the latest St. Petersburg Forum, where Saudi Arabia participated as the guest of honor.”

Al-Omar concluded that strengthening strategic cooperation between Riyadh and Moscow is no longer merely a bilateral matter. Instead, it has become a genuine and decisive balancing factor within an increasingly turbulent international system. It supports the goals of Vision 2030 by diversifying sources of income, localizing knowledge, and increasing the contribution of the non-oil sector, thereby fostering economic stability that extends beyond the two countries to the wider region and the global economy.



Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)
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Saudi Tourism Minister Announces Launch of Second Edition of TOURISE Forum in March

Tourists are seen at Saudi Arabia's AlUla. (SPA)
Tourists are seen at Saudi Arabia's AlUla. (SPA)

Saudi Minister of Tourism and Chairman of the TOURISE Forum Board Ahmed Al-Khateeb announced on Wednesday the launch of the second edition of the “TOURISE 2027” Forum, under the theme “Alliances That Move the World,” to be held in Riyadh from March 23 to 25, 2027.

The forum, held under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, brings together leading figures from the tourism, technology, investment, sustainability, culture and transport sectors from around the world to discuss the key opportunities and challenges facing these sectors and help shape the next phase of global tourism.

The forum comes as Saudi Arabia presents a prominent example of what can be achieved in the tourism sector as an integrated economic ecosystem. The Kingdom surpassed its initial target of welcoming 100 million visitors annually in 2023, seven years ahead of schedule, and raised its ambition to 150 million visitors annually by 2030.

The TOURISE Forum serves as an attractive platform for investment. Its inaugural edition last year succeeded in catalyzing investments worth $113 billion, spanning destinations, hotels, retail, talent development and AI-powered platforms, demonstrating how cross-sector collaboration can turn ambition into investment and practical action.

The theme of the forum’s second edition, “Alliances That Move the World,” underscores the importance of forging alliances that transcend sectors, borders and business fields, connecting tourism with capital, technology and infrastructure to unlock investment opportunities, accelerate innovation and facilitate the traveler experience, supporting a more growing, sustainable and inclusive global tourism economy.

Minister Al-Khateeb said: “No single destination, company or organization will shape the future of tourism. Rather, it will be determined by the strength of the alliances we build together. Saudi Arabia has witnessed first-hand what can be achieved when ambitions, investments and strategic partnerships come together.”

“Through the second edition of the TOURISE Forum, we are inviting the world to Riyadh to build the alliances that will shape the next 50 years of the tourism sector,” he added.

The Ministry of Tourism announced the first group of speakers for the 2027 edition, comprising leading figures from the tourism, hospitality, technology and destination development sectors. They will showcase their organizations’ contributions to facilitating travel, tourism and mobility, as well as the most promising areas for investment in the global tourism sector.


Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)
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Riyadh Opens the Way for Driverless Parcel Delivery

One of the autonomous trucks (Asharq Al-Awsat)
One of the autonomous trucks (Asharq Al-Awsat)

As the mobility landscape within Saudi cities continues to evolve, Riyadh is preparing to embark on a new experience in which no driver sits behind the wheel and the success of a journey does not depend on a driver's ability to navigate the road. By mid-November, 24 autonomous trucks are expected to begin trial operations on the capital's roads, opening the door for the technology to move from passenger transport into parcel and freight delivery.

The move follows the General Transport Authority's sponsorship in May of a memorandum of understanding between Abdul Latif Jameel Motors and China's Zeelos Technology, a company specializing in autonomous driving technologies, with the aim of adopting and enabling autonomous mobility solutions in the Kingdom.

The trucks expected to operate in Riyadh represent one of the practical applications of this cooperation. The first phase will focus on testing the ability of autonomous vehicles to transport parcels within the capital, paving the way for an assessment of their performance and efficiency before moving to broader stages of operation.

Ammar Baterdok, General Manager of Mobility Solutions Projects at Abdul Latif Jameel Motors, told Asharq Al-Awsat that the pilot operation will begin after the completion of geospatial mapping and the training of autonomous driving systems on local roads.

He explained that the fleet allocated to the first phase comprises 24 trucks of different sizes and models. Four have already arrived in the Kingdom, while another 20 are currently in transit, amid logistical challenges affecting shipments from China due to developments in the region.

The trucks have payload capacities of 0.5 tons, 1.5 tons, and 2.5 tons. The fleet includes refrigerated and non-refrigerated models, with the remaining batches expected to arrive successively during October and November.

Free Trials with SPL

Abdul Latif Jameel Motors is carrying out the pilot phase in cooperation with Saudi Post | SPL to transport parcels from the main center to neighborhood centers in Riyadh. The service will be provided free of charge throughout the trial period.

Baterdok said the company is prepared to extend the pilot period for several months if necessary in order to collect sufficient operational and investment data to assess the fleet's performance and economic viability before making a decision on commercial expansion.

The phase will allow the company to test the vehicles under actual driving conditions within the capital, including their ability to navigate local roads and traffic, while also measuring their performance during different operating hours.

Millions Invested to Test Viability

The cost of the pilot phase amounts to millions of riyals, according to Baterdok, covering the purchase of vehicles, customs clearance, fees, and taxes. He explained that the investment is not intended to generate a direct financial return, but rather to test the technology's economic and technical viability and collect the data needed before decisions are made regarding commercial expansion and the size of the future fleet.

Illustrative photo of the inside of the truck (Asharq Al-Awsat)

Operating Savings Could Exceed Truck Costs

The company is banking on autonomous trucks being able to reduce operating costs compared with conventional vehicles. Baterdok explained that the price of an autonomous truck is approximately half that of a conventional fuel-powered truck, whether gasoline or diesel.

The cost gap becomes wider during operation due to lower labor and maintenance expenses, in addition to the possibility of operating the trucks around the clock, except for the periods required for recharging.

In an analysis, logistics expert Hassan Al Halil told Asharq Al-Awsat that the most significant economic impact would come from reducing operating costs and improving supply-chain efficiency. He noted that autonomous trucks could increase fleet utilization, improve route planning, and allow for longer operating periods, particularly on repetitive and defined routes.

Al Halil added that it is too early to establish a fixed percentage for reductions in logistics costs in Saudi Arabia, given that savings vary depending on the type of shipment, distance, and operating model. He said that "the greatest opportunities for savings lie in operating labor costs, increasing truck utilization, reducing waiting times, improving fuel consumption, and maintenance," adding that "the economic value will come from increasing fleet productivity and completing more trips efficiently."

Baterdok, meanwhile, said the absence of a driver allows supply and delivery operations to be shifted to nighttime hours, increasing the efficiency of fleet utilization in major cities such as Riyadh by taking advantage of periods when road traffic is less dense.

According to company estimates, electricity costs account for only about 20 percent of the cost of conventional fuel, while maintenance expenses decline due to the absence of conventional engines and transmissions. Routine servicing therefore focuses to a greater extent on components such as brakes and tires.

The trucks rely on sensors and radar systems for autonomous driving, enabling them to operate in nighttime driving conditions without relying on human vision.

Road Readiness Determines the Path to Expansion

Despite these advantages, Al Halil believes that large-scale operation of autonomous trucks in Riyadh requires more than well-maintained roads. It requires highly accurate maps that are continuously updated, reliable communications systems, smart infrastructure, and coordination among the relevant authorities.

He pointed out that the main challenges within cities include congestion, sudden changes in routes, roadworks, unexpected behavior by some vehicles, dusty conditions, and the handling of loading and unloading points. He said that "the most realistic starting point will be defined, repetitive roads and logistics routes before moving to more complex urban operations."

From Passenger Transport to Parcel Delivery

The truck trial comes as Saudi Arabia expands its testing of autonomous mobility applications, as the technology moves from passenger transport into freight and delivery.

Last year, Saudi Arabia launched autonomous passenger vehicles and is currently operating more than five routes, including the Roshn area, Princess Nourah bint Abdulrahman University, and the route connecting Riyadh Gallery and Hayat Mall.

The service has transported more than 3,100 passengers across 1,600 trips under the supervision of the General Transport Authority, as part of efforts to test autonomous driving technologies in the Saudi urban environment.

The expansion of these applications into the freight sector opens a new field for testing the impact of autonomous driving on the efficiency of delivery operations within cities, at a time when e-commerce is expanding and supply chains are seeing growing demand for more efficient and flexible solutions.

From Roads to the Sky

Abdul Latif Jameel Motors' plans do not stop at ground transportation. The company has begun studying the market for drone-based goods delivery in preparation for entering the field once the necessary regulatory frameworks are in place.

Baterdok expects the process of developing regulations governing goods delivery by drones to take between one and a half and three years. He noted that the company is in discussions with global suppliers of trucks and drones designed to transport goods and individuals.

In evaluating these solutions, the company is focusing on technical readiness, range, speed, the ability of vehicles and aircraft to operate under different weather conditions, and resistance to wind, with the aim of achieving operational readiness as soon as official licenses are issued.

Accordingly, Abdul Latif Jameel Motors' plan is not limited to testing autonomous trucks in Riyadh. It extends to developing a broader system of autonomous mobility solutions, beginning with ground transportation and eventually reaching air-based goods delivery, while testing the technical and economic viability of each solution before moving from trials to commercial expansion.


Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
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Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo

Vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday, falling well short of the 10-day average of 18.

The drop in traffic through the waterway that handled one-fifth of the world's oil and liquefied ⁠natural gas supply before ⁠the Iran war comes after attacks in the region intensified.

Of the total on Tuesday, two ships were exiting and two were entering, according to the data.

No very large crude carriers ⁠or liquefied natural gas tankers were involved.

Some ships may be sailing through the waterway with their transponders turned off and they are therefore not counted.

One very large gas carrier, Salute, carrying around 470,000 barrels of liquefied petroleum gas exited via the Iranian route, while Panamax-sized tanker Nautilus, carrying around 510,000 barrels of naphtha, exited ⁠via ⁠an unknown dark route, Reuters reported.

The two ships that entered were both laden, with one being a short-range dirty products tanker and the other a dry bulk carrier. Both entered via the Iranian route.

Meanwhile, the number of ships sailing through the Bab el-Mandeb Strait was at 22, little changed on Tuesday compared with a day ago at 24.