Saudi Arabia Moves to Strengthen Stability and Development in the Region

Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
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Saudi Arabia Moves to Strengthen Stability and Development in the Region

Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).
Saudi Arabia continues its initiatives to promote security and peace in the region... The Saudi flag is seen at a site in the city of Jazan (SPA).

At a time of growing uncertainty surrounding the global economy, amid the repercussions of the US-Iranian war, tensions related to the Strait of Hormuz, and risks facing shipping through several vital maritime routes, Saudi Arabia is intensifying its regional initiatives aimed at strengthening security and stability. The approach is based on a vision that links reducing geopolitical risks with creating the conditions necessary for growth, development, and attracting investment.

In this context, the "Makkah Agreement" between Saudi Arabia, Türkiye, and Pakistan stands out as one of the initiatives that specialists believe could contribute to strengthening regional stability and increasing confidence in the economic and investment environment in a region that occupies a pivotal position in global energy markets, trade, and supply chains.

Specialists who spoke to Asharq Al-Awsat said Saudi initiatives are part of a broader strategy aimed at building a more stable regional environment capable of withstanding shocks. They emphasized that strengthening security has a direct impact on the sustainability of energy supplies, the safety of shipping routes, and the movement of trade and investment, while also paving the way for broader economic integration and joint projects among countries in the region.

They also noted that the significance of Saudi initiatives extends beyond immediate security considerations to supporting development by reducing risk levels, strengthening investor confidence, and creating opportunities for new partnerships in energy, industry, technology, mining, logistics, and defense industries.

Stable Energy Supplies and Shipping

Fadl bin Saad Al-Bouainain, a member of the Shura Council, told Asharq Al-Awsat that the initiatives adopted by Saudi Arabia, foremost among them the "Makkah Agreement for Joint Defense" between Saudi Arabia, Pakistan, and Türkiye, could have an impact on the global economy, food security, and international trade, given the region's economic and strategic weight.

He added that the region exports nearly one-fifth of the world's oil needs, in addition to gas and agricultural nutrients, making its stability and security essential to ensuring the continuity of energy supplies and the safety of maritime shipping routes.

Al-Bouainain explained that Crown Prince Mohammed bin Salman places great importance on economic development as a foundation for the prosperity of peoples and states, with a focus on investment flows as one of the drivers of development, alongside strengthening the Kingdom's capabilities in the energy sector and maintaining its influential position within the global supply system.

He said Saudi efforts seek to achieve security and stability in the region in ways that positively affect both the Saudi economy and the economies of neighboring countries. Development, he noted, requires a stable foundation on which to build, while the defense agreement contributes to strengthening deterrence and reducing risks that could affect economic activity.

He pointed out that investors consider the stability of the investment environment a priority when making decisions. Accordingly, strengthening regional security and providing greater clarity over the economic outlook are factors that support the attractiveness of the Saudi market, given the diverse investment opportunities it offers.

According to Al-Bouainain, the "Makkah Agreement" sends reassuring messages to local and foreign investors and strengthens confidence in the sustainability of energy supplies and the protection of critical infrastructure. This could, in turn, affect the pace of projects, investment flows, and trade.

He stressed that Saudi Arabia is relying on "Vision 2030" and its development programs, which require substantial investment, making greater economic certainty and reduced geopolitical uncertainty important factors in supporting capital flows and project implementation.

He added that strengthening the regional security system could encourage investors to seize opportunities and participate in development projects, with the positive effects extending to the economies of the region as a whole, not just Saudi Arabia.

Al-Bouainain noted that the signing of the agreement after years of negotiations reflects the depth of relations between Saudi Arabia, Türkiye, and Pakistan and opens the way for a broader phase of cooperation, supporting efforts to establish security, stability, and prosperity.

He said the initiatives led by the Saudi Crown Prince have helped strengthen the role of diplomacy and political dialogue in addressing regional crises, alongside efforts to unify responses to challenges. This supports security and stability and provides a stronger foundation for economic and development programs.

Economic Integration Takes Shape

Saudi businessman Abdullah bin Zaid Al-Mulaihi, CEO of Saudi technology holding company Al-Tamayoz, said Saudi Arabia continues to work to strengthen confidence in both the domestic and regional economies. He noted that the "Makkah Agreement" is among the initiatives that could enhance the Kingdom's regional and international standing and open the way for a new phase of economic cooperation and integration.

Al-Mulaihi told Asharq Al-Awsat that Saudi steps to strengthen security and stability have a direct impact on the economic and investment environment. He said Saudi-Turkish-Pakistani rapprochement provides a foundation for developing joint political, economic, defense, and human cooperation.

He added that the Kingdom has established itself as an influential political and economic power by building strategic partnerships aimed at achieving shared interests and supporting regional security and stability.

Al-Mulaihi believes that Saudi Arabia's strategy of strengthening stability and building long-term partnerships helps create a more attractive environment for investment and opens opportunities for the private sector in industry, technology, energy, mining, logistics, defense industries, and trade.

He noted that Saudi Arabia has a large economy, a strategic geographic location, and ambitious transformation programs under "Vision 2030."

He said political and security rapprochement could develop into broader economic partnerships benefiting investors and business leaders, particularly through joint projects, knowledge and technology transfer, localization of industries, and increased trade.

Al-Mulaihi emphasized that the economy, development, and citizens are the direct beneficiaries of regional stability. He noted that the Kingdom's political strength and balanced partnerships give the private sector greater confidence and strengthen its ability to attract capital, technologies, and international partnerships.

He concluded that Saudi Arabia is pursuing a vision that combines protecting its interests, strengthening its security, and building the economy of the future. He considered the "Makkah Agreement" a factor that strengthens the Kingdom's position in shaping the region's security, development, and cooperation framework.

The Path to Sustainable Development

Abdulrahman Baashen, head of the Al-Shorouq Center for Economic Studies in Jazan, told Asharq Al-Awsat that Saudi Arabia is strengthening its international credibility by adopting initiatives aimed at reducing risks and supporting stability, including the "Makkah Agreement for Joint Defense." He believes the agreement could help increase economic certainty in the region following the repercussions of the US-Iranian war and tensions in the Strait of Hormuz.

Baashen added that the Saudi approach, which combines political, security, and economic action, supports regional balance and strengthens confidence in the Saudi economy and the region's business environment. This could be reflected in trade, investment, and international partnerships, particularly given the Kingdom's central role in global energy markets.

He expects the next phase to see increased trade and investment activity, particularly in defense-related technology industries, alongside the expansion of strategic partnerships with countries possessing advanced expertise and capabilities in these fields.

Baashen believes the agreement could provide a supportive framework for launching high-value economic projects and initiatives between Saudi Arabia, Türkiye, and Pakistan, with their impact extending to their international partners and laying broader foundations for economic integration and sustainable development among Riyadh, Ankara, and Islamabad.

He noted that developing partnerships in industry, technology, energy, supply chains, infrastructure, and transportation could turn the strategic rapprochement among the three countries into tangible economic opportunities and increase the region's ability to withstand external disruptions.

He stressed that the essence of Saudi initiatives lies in linking security with development. Reducing tensions and strengthening regional stability do not affect only the political sphere, but also extend to protecting trade flows and energy supplies, improving the investment environment, and providing a more sustainable foundation for regional economic growth.



Trump Says He Is Still Considering Diesel Export Ban

 A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
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Trump Says He Is Still Considering Diesel Export Ban

 A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)
A semi drives past a sign advertising the price of diesel along Interstate 5 in Williams, California, US, September 28, 2026. (Reuters)

US President Donald Trump said on Wednesday that he has conversations about banning diesel exports "every day" as the White House races to curb soaring energy prices.

Speaking from the Oval Office, Trump said an export ban would "have a negative impact on gasoline" prices, but could lower diesel costs.

He said Russia's war in Ukraine, with strikes ‌from either side ‌impacting energy production and exports, is ‌the ⁠main cause of ⁠rising diesel prices.

He added: "We think we're in a very good place."

Gasoline prices have jumped more than 40% over the past year and diesel climbed to a record of $6.53 a gallon a week ago, according to AAA data. The price spike ⁠is largely driven by a combination of ‌a reduction in supply ‌due to the Iran war and interruptions to refining, in ‌part because of Ukraine's attacks on Russian energy ‌facilities.

The Trump administration and Republican candidates have been under pressure to bring down fuel costs as November's midterm elections approach and Trump's economic approval ratings remain under strain.

Energy Secretary ‌Chris Wright said the disruptions were more widespread.

"We've lost some diesel exports from the ⁠Middle ⁠East, although we're restoring those, and we've lost diesel exports from China," he said. "So that's a lot of interruptions."

He said the administration expected announcements soon from Europe about new diesel supplies.

The White House has urged the European Union to release emergency diesel stocks to help ease prices, Reuters reported.

The Trump administration has also weighed a blanket diesel export ban, voluntary export limits by refiners and allowing broader sales of tax-exempt diesel.


Saudi Arabia Earmarks $371 Bn in Spending for 2027 Budget

The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
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Saudi Arabia Earmarks $371 Bn in Spending for 2027 Budget

The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)
The Saudi finance minister at the 2026 Budget Forum (File photo — Asharq Al-Awsat)

Saudi Arabia projects spending of 1.392 trillion riyals ($371.2 billion) in 2027 against revenue of 1.202 trillion riyals ($320.5 billion), leaving a budget deficit of about 3.6% of gross domestic product as it funds economic growth and development and strategic priorities.

The Finance Ministry released its preliminary budget statement for fiscal 2027 on Wednesday as the kingdom presses ahead with economic transformation programs and expands non-oil activity. Its fiscal policy seeks to support growth while maintaining fiscal sustainability.

The ministry forecasts revenue rising to about 1.351 trillion riyals ($360.3 billion) by 2029, with spending increasing to about 1.544 trillion riyals ($411.7 billion).

The projections point to sustained spending on development and strategic priorities and projects with economic and social returns, backed by long-term fiscal planning designed to maintain sustainability across economic cycles.

Diversification initiatives and economic reforms have lifted non-oil revenue from about 166 billion riyals ($44.3 billion) in 2015 to 505 billion riyals ($134.7 billion) in 2025, strengthening revenue stability and broadening its sources.

Non-oil growth cushions oil slump

Saudi Arabia’s real GDP is expected to contract by 3.6% in 2026 as oil activity falls by 21.8%, according to preliminary estimates reflecting the impact of economic and geopolitical developments.

Non-oil activity is forecast to grow by 3.2%, cushioning the decline in the broader economy.

In the first half of 2026, non-oil activity grew by 1.8%, lifting its share of real GDP to a record 57.3%, driven by strong domestic demand and private investment inflows.

Saudi unemployment falls to 6.5%

Unemployment among Saudi nationals fell to 6.5% in the second quarter of 2026.

Inflation is estimated at about 2.1% for the full year, amid sustained domestic demand and developments in non-oil economic activity.

Government plans domestic and international financing

The government plans to continue raising funds domestically and internationally in 2027 and over the medium term under its medium-term debt strategy, through bond and sukuk issuance and loans.

It also plans to expand alternative government financing.

These channels include project and infrastructure financing and financing through export credit agencies, providing additional funding for projects and development priorities.

Finance Minister Mohammed Al-Jadaan said the preliminary 2027 budget estimates come amid persistent global economic uncertainty and accelerating geopolitical developments.

The kingdom continues to manage public finances with a long-term view, he said, strengthening its ability to respond to changing conditions and sustain spending on development and strategic priorities while preserving fiscal sustainability and financial strength.

The government is monitoring economic and geopolitical developments and assessing their potential impact on the global economy, supply chains and energy markets, he added. Flexible, proactive policies aim to support the economy and keep it on course toward Saudi Vision 2030 targets.

Al-Jadaan said economic transformation plans would continue to support growth and broaden the economic base, lifting non-oil revenue and making revenue more sustainable and stable over the medium and long term.

Deficit fits long-term fiscal policy

The projected 2027 deficit of 3.6% of GDP is part of a fiscal policy aimed at preserving financial strength and improving fiscal sustainability while maintaining spending on priority projects.

The Finance Ministry said the approach allows the government to pursue balanced fiscal policies across economic cycles, support growth, adapt to changing conditions and manage crises and emergency needs while keeping public debt sustainable and maintaining substantial fiscal reserves.

The government plans to continue domestic and international financing in 2027 and over the medium term under its medium-term debt strategy, issuing bonds and sukuk and securing loans at a fair cost.

It also plans to expand alternative government financing, including project and infrastructure financing and financing through export credit agencies.


Digital Spending Is Reshaping Saudi Consumer Habits

A woman shops at a retail and grocery center in Saudi Arabia (SPA)
A woman shops at a retail and grocery center in Saudi Arabia (SPA)
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Digital Spending Is Reshaping Saudi Consumer Habits

A woman shops at a retail and grocery center in Saudi Arabia (SPA)
A woman shops at a retail and grocery center in Saudi Arabia (SPA)

Saudi consumers are rapidly reducing their reliance on cash as digital payments expand across everyday sectors, from grocery shopping to entertainment and electronic gaming. The shift is being driven by a young population, widespread smartphone adoption, and increasingly advanced payments infrastructure.

Grocery shopping is emerging as one of the sectors benefiting most from this transformation. Digital spending in the sector grew by 18 percent over the past year, while spending on electronic gaming has surpassed global averages, pointing to the expanding reach of the digital economy and changing consumption patterns in the Kingdom.

The total value of digital transactions across the Gulf countries is expected to grow at an annual rate of 8.7 percent between 2024 and 2028, reaching $178 billion, according to Oxford Business Group (OBG). This growth comes amid wider adoption of digital wallets, money-transfer applications, and cashless payment methods.

Against this backdrop, Mohamed Nana, Mastercard's Senior Vice President for Digital Partnerships in Eastern Europe, the Middle East and Africa, told Asharq Al-Awsat that this growth is being driven by the digital transformation visions adopted by countries across the region.

He also pointed to the launch of Buna, the Arab regional payments system, which is fully owned by the Arab Monetary Fund and supported by Arab central banks. The system aims to reshape cross-border payments and strengthen economic integration both regionally and globally.

Nana said Mastercard has made its Mastercard Move money-transfer solutions available through Buna, in what he described as the first collaboration of its kind between the public and private sectors. In Saudi Arabia, he said, the company is focused on supporting the growth of the digital economy through technology, secure payments infrastructure, and local partnerships.

Saudi Consumers Expand Their Digital Payment Use

Nana said the adoption of a broader range of digital payment methods is accelerating in Saudi Arabia. In addition to becoming familiar with solutions such as digital wallets, money-transfer applications, biometric identification, and installment-payment services, consumers are becoming increasingly comfortable using them in their everyday lives.

They are also turning to more diverse ways of shopping, including through voice assistants and social media platforms.

He said the continuing shift away from cash is being driven by a young, tech-savvy population and widespread smartphone penetration. Speed, security, convenience, and a seamless payment experience are among the main factors encouraging consumers to adopt digital payments.

Maintaining this momentum, he added, requires giving consumers confidence in new payment methods through secure technologies and an interconnected digital payments ecosystem.

Grocery shopping stands out among the Saudi sectors that have experienced notable growth in digital payment use. The sector recorded annual growth of 18 percent over the past year, driven by the expansion of digital platforms, promotional pricing, delivery services, and integration with mobile devices.

Nana said the fashion and electronics sectors have also recorded strong performance, while digital spending on electronic gaming exceeds global averages. This reflects the strength of Saudi Arabia's esports economy, which is valued at $1 billion and is being developed under the National Gaming and Esports Strategy.

Local Infrastructure for Electronic Payment Processing

Alongside growing demand for digital payments, Mastercard is developing local infrastructure for processing electronic transactions in Saudi Arabia. Nana said the company, under the auspices of the Saudi Central Bank, SAMA, has launched technology infrastructure inside the Kingdom, powered by Mastercard Gateway, allowing e-commerce transactions to be processed locally.

He added that Mastercard Gateway has become part of Mastercard Merchant Solutions, a payments platform that brings together the company's services to help businesses manage their commerce operations. He noted that Mastercard received certification last December allowing it to process electronic transactions through SAMA's new e-commerce payment interface.

Artificial Intelligence

Nana said artificial intelligence has been a core part of Mastercard's ecosystem for nearly two decades. It helps make every digital experience more secure, intelligent, and personalized for consumers and businesses, while improving efficiency for customers and partners.

In Saudi Arabia, AI is a key component of the company's strategic collaboration with Riyadh Air, which aims to redefine the travel experience across multiple customer touchpoints. It is also central to the work of Mastercard's Cyber Resilience Center in Riyadh, strengthening its ability to detect and respond to sophisticated cyber threats and fraud attempts.

Data to Help Attract Visitors

Last August, the Saudi Tourism Authority and Mastercard signed a memorandum of understanding to cooperate in supporting the growth of the Kingdom's tourism sector and strengthening Saudi Arabia's position as a global tourism destination. The partnership involves campaigns and initiatives aimed at attracting international visitors from target markets, supporting the Kingdom's goal of receiving 150 million visitors by 2030.

Nana said the partnership with the Saudi Tourism Authority uses Mastercard data and insights to segment visitor groups, analyze spending, monitor travel trends, measure the impact of events, and conduct predictive analytics. These capabilities help inform marketing strategies and policy development.

He added that the company's goal is to design global campaigns and initiatives to attract international travelers from target markets, in conjunction with the Priceless platform, which promotes unique cultural experiences across the Kingdom.