European Chamber of Commerce Looks to Expand Trade and Investment With Saudi Arabia

ECCKSA CEO Kristijonas Gedvilas at an event (Asharq Al-Awsat)
ECCKSA CEO Kristijonas Gedvilas at an event (Asharq Al-Awsat)
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European Chamber of Commerce Looks to Expand Trade and Investment With Saudi Arabia

ECCKSA CEO Kristijonas Gedvilas at an event (Asharq Al-Awsat)
ECCKSA CEO Kristijonas Gedvilas at an event (Asharq Al-Awsat)

The European Chamber of Commerce in Saudi Arabia (ECCKSA) said economic relations between the European Union and Saudi Arabia are entering a new phase of expansion, driven by new partnerships, more European companies entering the Kingdom's market, and deeper investment commitments, as the chamber seeks to broaden the base of European companies operating in Saudi Arabia and increase bilateral trade and investment.

"There is real momentum to build on, and it points clearly toward more European investment landing in the Kingdom," said Kristijonas Gedvilas, CEO of the European Chamber of Commerce in Saudi Arabia, noting that the coming years are expected to bring a significant step forward in economic relations between the two sides.

In an interview with Asharq Al-Awsat, he said the upcoming 10th EU-GCC Business Forum, if confirmed to take place in Riyadh, would mark a key milestone in strengthening the economic partnership and converting high-level political dialogue into tangible trade and investment opportunities for European companies.

Deepening Institutional Dialogue

Gedvilas noted that EU Ambassador to Saudi Arabia Christophe Farnaud said earlier this year that European investment in the Kingdom is expected to see notable growth over the next five years, particularly in clean energy, metals, critical raw materials, advanced industries, and the digital economy.

He said those expectations are based on continued progress toward the goals of Saudi Vision 2030, alongside the growing maturity of the chamber's sectoral committees, deeper institutional dialogue with Saudi and European authorities, and the transition of strategic initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) move from early implementation toward larger scale.

He added that these developments are expected to bring more European companies into the Saudi market, increase invested capital, and strengthen partnerships with Saudi institutions and businesses.

ECCKSA's role, he said, is to ensure its members, from established multinationals to newer entrants, are positioned not just to benefit from this growth, but to help drive it.

With the foundations of its first two years now firmly in place, he added, ECCKSA has already become a meaningful actor in the bilateral relationship and is expected to play an even greater role as EU-Saudi economic ties continue to deepen.

New Partnerships

Gedvilas said ECCKSA has, over the past two years, become a genuine bridge between the Saudi government and the European private sector, giving Saudi authorities a more structured and effective channel to engage European companies on policies affecting trade, investment, and market development.

He explained that this institutional framework has been built through sectoral committees and working groups covering transport and logistics, energy, healthcare, as well as legal and taxation matters, enabling regular and direct dialogue between European businesses and Saudi and European authorities.

He said this mechanism has helped translate policy engagement into concrete business outcomes, including new partnerships, new market entrants, and deeper investment commitments.

He added that the chamber's Annual General Meeting, held in May 2026, marked a significant step toward organizational maturity, with its Board of Directors strengthened by additional leading European companies, reflecting the growing breadth of European business interests represented in the Kingdom.

As its membership continues to expand, the chamber is also scaling up its operations to deliver greater value to members and provide access to a broader and more diverse community of European companies.

Gedvilas said the inauguration of ECCKSA's new headquarters in Riyadh last June, attended by European Union and Saudi government officials, representatives of EU member state embassies, partners, and chamber members, marked another milestone reflecting its long-term commitment to supporting European businesses and strengthening dialogue between governments and the private sector.

He added that member companies now employ more than 25,000 people across Saudi Arabia, while more than 2,500 European companies operate in the Kingdom, with chamber members accounting for a growing share of that total.

The chamber has already begun bringing this broader business community together under one umbrella, he said, with the strategic objective of expanding the base of European companies to boost bilateral trade and investment while maintaining close ties with both the Saudi government and the private sector.

Trade and Investment

On economic relations, Gedvilas said trade in goods and services between the European Union and Saudi Arabia reached €88.8 billion in 2025, while EU exports to the Kingdom increased 2.6 percent to €38 billion compared with 2024.

Looking at longer-term trends, he said EU exports to Saudi Arabia have grown at an average annual rate of 11 percent since 2021, while imports have increased by 7.8 percent, reflecting the continued deepening of trade ties despite volatility in the global economy.

He added that investment tells an even stronger story than trade, with the European Union accounting for 29 percent of Saudi Arabia's total foreign direct investment stock, making it the Kingdom's largest source of foreign capital.

More than a quarter of the multinational companies that have established regional headquarters in Saudi Arabia are European, out of more than 700 global firms. He said choosing the Kingdom as a regional headquarters reflects a long-term commitment that goes beyond traditional commercial investment and underscores Saudi Arabia's growing role as a strategic destination for European capital.

Strategic Partnership

Gedvilas said European companies working collectively through ECCKSA help address the regulatory and institutional issues affecting their operations, improving market efficiency, strengthening relationships with Saudi institutions and businesses, and encouraging greater flows of European investment.

He said the chamber works to align the needs of European companies with the priorities of Saudi and European institutions so that political cooperation translates into tangible economic outcomes.

He explained that the chamber's success rests on two main factors. The first is access, as both Saudi and European governments have shown a strong willingness to work with a structured and credible organization representing the European private sector.

The second is its convening power. When European institutions seek direct input from companies operating in Saudi Arabia, the chamber organizes that dialogue with its members to ensure on-the-ground business realities are reflected in EU policymaking. Likewise, it provides Saudi authorities with a unified platform for engaging European industry rather than dealing with companies individually.

Gedvilas noted that ECCKSA is part of the EBO Worldwide Network (EBOWN), which represents European business interests across more than 60 markets outside the European Union, helping strengthen Saudi Arabia's position within regional and global economic cooperation.

He added that this role makes the Kingdom not only a bilateral partner of the European Union but also a key connection point within a broader international business network.

He pointed to the India-Middle East-Europe Economic Corridor (IMEC), part of the EU's Global Gateway strategy, as an example of that vision. The initiative aims to develop new electricity and subsea telecommunications cables, data infrastructure, and green hydrogen pipelines, reinforcing the Gulf's position as a hub linking Europe with Asia and Africa while cementing Saudi Arabia's role as a central node in that network, with gains in trade, logistics, and foreign direct investment.

He noted that the European Parliament adopted a resolution on EU-Saudi relations in December 2025 recognizing the role of EU-GCC cooperation in advancing this type of infrastructure. He added that the chamber's work with its members in Riyadh contributes to shaping this strategic project.

Gedvilas reaffirmed the chamber's support for the upcoming 10th EU-GCC Business Forum and expressed hope that it will be held in Riyadh following the previous edition in Kuwait. If confirmed, he said, the forum would mark a pivotal milestone in strengthening the economic partnership between the two sides and turning high-level political dialogue into tangible trade and investment opportunities.



Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
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Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)

Silver demand is expected to fall by 5% in 2026 due to weaker jewellery demand and lower consumption in solar cells, where high prices have accelerated substitution, research showed on Friday.

Research done by consultancy Metals Focus for the Silver Institute puts demand at 1.08 billion troy ounces this year.

Silver, used in jewellery, electronics, electric vehicles and solar panels as well as for investment, is ‌down 59% ‌to $50 an ounce since retail buying drove prices ‌to ⁠a record high ⁠of $121.6 in January.

The base for that rally was created in 2025, when silver surged 147%, as massive inflows of the metal to US inventories due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) tightened liquidity in the London market.

This year, expectations for higher interest rates, a stronger dollar and higher bond yields have weighed on investment ⁠sentiment.

Silver released through ETP selling, outflows from stocks ‌in the US and a smaller ‌market deficit improved liquidity in the physical market, the Silver Institute and ‌consultancy Metals Focus said on Friday.

Metals Focus sees net ETP ‌outflows of 45 million ounces this year after 278 million ounces of inflows in 2025.

As of early November, ETP holdings stood at 1.25 billion ounces.

Industrial demand is expected to fall by 3% in 2026 as installations ‌in photovoltaics have fallen short of expectations, particularly in China, while January's record silver prices accelerated ⁠substitution.

Meanwhile, demand ⁠for jewellery and silverware is forecast to decline by 22% and 17%, respectively, as higher prices and weaker rural spending in India encouraged purchases of smaller, lighter products.

Demand in China and the US is also subdued. Strong retail investment in late 2025 and early 2026 gave way to far more subdued buying from March as silver prices fell, Metals Focus said.

It expects global bar and coin demand to fall 2% this year, with US retail investment hitting its lowest level since 2010.


Gold Rises on Bargain Hunting but Heads for Weekly Decline

Gold necklaces are on display inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India April 18, 2018. (Reuters)
Gold necklaces are on display inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India April 18, 2018. (Reuters)
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Gold Rises on Bargain Hunting but Heads for Weekly Decline

Gold necklaces are on display inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India April 18, 2018. (Reuters)
Gold necklaces are on display inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India April 18, 2018. (Reuters)

Gold rose on Friday as bargain hunting emerged after prices hit a more than one-year low in the previous session, while market focus shifted to upcoming US inflation data.

Spot gold climbed 1% to $3,915.31 per ounce by 0322 GMT but was down 3.5% so far this week. US gold futures for December delivery gained 0.9% to $3,919.60.

"Today's move is ‌more of a ‌positioning adjustment, given that several intraday short-term ‌momentum ⁠indicators had kind ⁠of hit an extreme oversold level after yesterday's dramatic fall," said Kelvin Wong, a senior market analyst at OANDA.

"A short-term driver that could be bullish for gold will be a sudden turn of the US Treasury yield, that would potentially slow down the US dollar."

Spot gold prices hit their lowest level since ⁠October 2025 on Thursday as oil prices climbed ‌on fading hopes for peace ‌in the Middle East, spurring fears of higher inflation and elevated interest ‌rates.

Markets see an 89% chance of a 25-basis-point US ‌rate hike in December, while the probability of a larger 50-basis-point move is priced at 11%, according to CME's FedWatch tool.

Although gold is typically seen as an inflation hedge, higher interest rates increase the ‌opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

Federal Reserve Bank of New York ⁠President John ⁠Williams said on Thursday more rate hikes are likely as the US central bank seeks to lower high levels of inflation in an otherwise healthy economy.

Data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week, but remained at a level consistent with a stable labor market.

Market participants now await the US Producer Price Index data due at 1330 GMT.

Among other metals, spot silver rose 1% to $50.49 per ounce and palladium climbed 2.1% to $1,014.50, but both were headed for weekly declines.

Spot platinum gained 1.3% to $1,538.22 and was on track for a modest weekly gain.


Dollar Set for Best Week in Two Months, Yen Tests 160

US dollar banknotes are seen in this illustration taken March 24, 2026. (Reuters)
US dollar banknotes are seen in this illustration taken March 24, 2026. (Reuters)
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Dollar Set for Best Week in Two Months, Yen Tests 160

US dollar banknotes are seen in this illustration taken March 24, 2026. (Reuters)
US dollar banknotes are seen in this illustration taken March 24, 2026. (Reuters)

The dollar held near 19-month highs on Friday and was set for its biggest weekly rise in two months as bets on a larger rate hike pushed up US yields and the yen hovered below the 160 mark, prompting Tokyo to warn it would respond to excessive moves.

Treasury yields rose after President Donald Trump's comment that the US did not need a deal with Iran stoked worries about Middle Eastern oil supply, lifting crude prices and, with them, inflation expectations.

The move, together with hawkish comments from Federal Reserve officials and this week's stronger-than-expected ‌US inflation data, has ‌left traders weighing the prospect of a larger-than-usual Fed rate hike ‌next ⁠month.

Two-year Treasury yields ⁠have risen 33 basis points so far this week to around 4.85%, on course for their biggest weekly jump since 2024.

The biggest risk to dollar strength is a Middle East peace deal, said Nick Rees, head of macro research at Monex, as that would diminish the support it draws from high energy prices and its safe-haven status.

"Absent that happening, we think the dollar is likely to continue to at least remain around current levels if not strengthen slightly as we look ahead," Rees said.

The ⁠euro edged up 0.1% to $1.1065, after hitting its lowest level against the ‌dollar since April 2025. For the week, it is ‌down 0.7%, on track for its largest weekly loss since late September.

Fed officials this week warned that US ‌inflation remains stubbornly elevated, with some signalling openness to a 50-basis-point rate increase if price pressures ‌fail to ease. Traders are pricing in a 12.1% chance of such a hike next month, up from 0% last week, the CME FedWatch tool showed.

The dollar index, which measures the greenback against a basket of currencies, was at 103.17, near its highest since April 2025. For the week, the dollar is set ‌to gain 0.9%, the most since September.

YEN INTERVENTION IN FOCUS

The yen was steady at 159.90 per dollar, around its weakest since early September, ⁠fuelling concerns about possible intervention. ⁠The currency has weakened 0.9% this week, on track for its biggest weekly loss since September.

Japanese Finance Minister Satsuki Katayama said on Friday the government would respond appropriately to currency volatility.

Japan spent 15.4 trillion yen ($96.5 billion) to bolster the currency after it sank to a four-decade low of 163.99 per dollar in late July.

Markets will be cautious around this level, said Monex's Rees, adding that he expects the trigger for intervention somewhere a little higher than 160.

The Australian dollar has fallen about 3.4% so far this month, making it the worst-performing G10 currency against the greenback. Australia is the only G10 country for which markets are pricing a rate cut next year. The Aussie was last at $0.6794.

The dollar was little changed against the Swiss franc at 0.836, hovering near a one-month high.

Among cryptocurrencies, bitcoin fell 3.8% to $68,759, dropping below the key $70,000 level to its lowest since August. Ether also dropped 4% to $1,933.49.