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Saudi Arabia and Switzerland strengthen economic ties at 4th Financial Dialogue in Zurich

Saudi Arabia and Switzerland strengthen economic ties at 4th Financial Dialogue in Zurich
Saudi Arabia’s Finance Minister Mohammed Al-Jadaan with the head of the Federal Department of Finance and Vice President of the Swiss Federal Council, Karin Keller-Sutter. X/@MAAljadaan
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Updated 20 June 2024
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Saudi Arabia and Switzerland strengthen economic ties at 4th Financial Dialogue in Zurich

Saudi Arabia and Switzerland strengthen economic ties at 4th Financial Dialogue in Zurich
Updated 20 June 2024
ARAB NEWS 
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RIYADH: Saudi Arabia and Switzerland are poised to deepen cooperation in finance and economics as top officials convened for the 4th Saudi-Swiss Financial Dialogue in Zurich.    

The event, inaugurated by Saudi Arabia’s Finance Minister Mohammed Al-Jadaan, focused on enhancing macroeconomic outlooks, fostering international multilateral cooperation, and advancing specific bilateral economic initiatives.    

It comes against the backdrop of a robust trade relationship between the countries. In 2023, Saudi Arabia exported $810.67 million worth of goods to Switzerland, while Swiss exports to the Kingdom totaled $6.77 billion, according to the UN’s international trade database.   

“The Saudi-Swiss relations have been growing for more than six decades, and our meeting ... for the 4th Saud-Swiss Financial Dialogue in Zurich embodies the two nations’ keenness to deepen cooperation between Saudi Arabia and Switzerland in various fields, most notably in finance and economics,” Al-Jadaan said in a post on X a day before the event.   

“Today, I was pleased to inaugurate the 4th Saudi-Swiss Financial Dialogue with the participation of the Head of the Federal Department of Finance & Vice President of the Swiss Federal Council, Ms. Karin Keller-Sutter. I emphasized on the Kingdom’s aspiration to explore new areas and markets that would deepen the existing cooperation between the two nations,” the minister added in another post.

In February, a high-profile delegation of Swiss business leaders visited Saudi Arabia to explore burgeoning trade and investment prospects in the Kingdom.   

Guy Parmelin, a Swiss Federal Councillor and head of the Department of Economic Affairs, Education and Research, led the delegation at the time.  

In an interview with Arab News during his visit, Parmelin highlighted the robust growth in trade between Switzerland and Saudi Arabia in recent years. “Swiss companies are very interested in investing in the Kingdom,” he added.   

He emphasized the eagerness of the accompanying business delegation to capitalize on Saudi Arabia’s rapidly transforming economic landscape.   

In November 2022, during an official visit to Riyadh, Swiss Finance Minister Ueli Maurer met with his Saudi counterpart, Al-Jadaan, and they signed a cooperation agreement to inaugurate the third Saudi-Swiss Financial Dialogue.   

Lauding the strength of the Saudi economy, Maurer stressed the importance of bilateral dialogues in developing economic activities in both countries and strengthening Switzerland’s role as a strategic partner for the Kingdom in achieving the goals of Vision 2030. 

Topics: main Saudi Finance Minister Mohammed Al-Jadaan Saudi-Swiss ties

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GCC banks poised to weather global trade turbulence: S&P report

GCC banks poised to weather global trade turbulence: S&P report
Updated 16 sec ago
Miguel Hadchity
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GCC banks poised to weather global trade turbulence: S&P report

GCC banks poised to weather global trade turbulence: S&P report
Updated 16 sec ago
Miguel Hadchity

RIYADH: Despite rising global trade tensions and heightened market volatility, banks across the Gulf Cooperation Council are expected to remain resilient, according to a recent report by S&P Global Ratings.

In its analysis titled “GCC banks can cope with the fallout from intensifying trade tensions,” the ratings agency pointed to the region’s strong financial fundamentals as a key buffer against economic uncertainty stemming from evolving US tariff policies and global investor jitters.

S&P highlighted investor risk aversion and market volatility as the most immediate threats, but noted that Gulf banks are well-positioned to absorb potential shocks. “GCC banks appear to be in a good position to withstand these threats,” the report stated, citing robust liquidity levels, solid profitability, and healthy capitalization as major strengths.

While the direct impact of trade tensions on GCC economies is expected to be limited—due in part to their relatively low export exposure to the US — the report warned of more significant indirect effects. In particular, a sustained decline in oil prices could weigh on fiscal spending and economic sentiment across the region. S&P has revised its assumed oil price forecast for 2025 to $65 per barrel.

“A prolonged period of lower oil prices could lead to reduced government spending, dampen business confidence, and potentially trigger an uptick in non-performing loans,” the report noted.

To gauge the sector’s resilience, S&P conducted stress tests modeling severe scenarios, including sharp capital outflows and a surge in NPLs. Even under a worst-case scenario—where NPLs increase by 50 percent—the top 45 banks in the GCC would face cumulative losses of $30.3 billion, significantly lower than their combined projected net income of $60 billion in 2024.

The findings reinforce the region’s financial stability amid global economic headwinds, underlining the strength of its banking sector even in the face of mounting external pressures.

“Even in our worst-case scenario, we still expect the shock to affect banks’ profitability rather than their solvency,” the report noted.  

Qatari banks were identified as more vulnerable due to their net external debt position, but strong government support mitigates risks. In contrast, UAE banks exhibit the highest resilience, thanks to their robust net external asset position.  

The report also pointed to regulators’ proactive measures as a critical factor. During the COVID-19 pandemic, forbearance policies helped banks navigate uncertainty, and similar actions are expected if trade tensions escalate further.   

While challenges loom, GCC banks enter this period of uncertainty from a position of strength. “Banks continue to display strong capitalization, with an average Tier 1 capital ratio of 17.2 percent at year-end 2024,” S&P noted.

The combination of solid fundamentals and potential regulatory backstops suggests the sector is prepared to weather the storm. 

Topics: banking GCC tariffs war

Riyadh, Jakarta hold talks to strengthen ties in mining sector

Riyadh, Jakarta hold talks to strengthen ties in mining sector
Updated 13 min 32 sec ago
MOHAMMED AL-KINANI
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Riyadh, Jakarta hold talks to strengthen ties in mining sector

Riyadh, Jakarta hold talks to strengthen ties in mining sector
Updated 13 min 32 sec ago
MOHAMMED AL-KINANI

JEDDAH: Economic ties between Saudi Arabia and Indonesia are set to deepen as the Kingdom’s top minister visits Jakarta to explore investment opportunities and enhance cooperation in the mining and industrial sectors. 

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef is leading a high-level delegation to Indonesia from April 15 to 17, aiming to strengthen bilateral business relations and forge strategic partnerships across mining, food, pharmaceuticals, and auto parts industries, the Saudi Press Agency reported. 

This comes as the Kingdom aims to position mining as a foundational pillar of its industrial economy, with its mineral wealth estimated at SR9.4 trillion ($2.4 trillion). 

In a post on his X account, Alkhorayef said: “At the start of my visit to Indonesia, I met with the Special Presidential Envoy for Energy and Environmental Affairs to discuss cooperation in mining and explore opportunities to strengthen bilateral partnerships.”  

His meeting with Special Envoy Hashim Djojohadikusumo focused on enhancing collaboration in the mining sector. The Indonesian official highlighted promising prospects in the production of strategic minerals, including nickel and copper, according to a statement from the Saudi Ministry of Industry. 

Alkhorayef emphasized the alignment of Saudi-Indonesian priorities, citing the mining sector’s key role in Saudi Arabia’s economic diversification under Vision 2030. 

The Saudi minister also held a meeting with Industry Minister Agus Gumiwang Kartasasmita and Minister of State-Owned Enterprises Erick Thohir.

“During the two meetings, we discussed ways to enhance industrial cooperation and expand partnerships between private sector entities in the two countries, in addition to reviewing investment opportunities and the Kingdom’s goals to become an industrial and logistics hub in the region.” Alkhorayef said.

As part of his trip, Alkhorayef also visited PT Vale Indonesia Tbk and Mining Industry Indonesia, or MIND ID, to learn about their pioneering efforts in mineral exploration and mining. 

During these visits, he held discussions with senior executives on ways to boost cooperation in strategic minerals — particularly nickel, cobalt, and copper — while promoting sustainable practices and outlining Saudi Arabia’s National Mining Strategy and investor-friendly ecosystem. 

The talks also focused on strengthening private sector collaboration, attracting investment, and sharing expertise in critical minerals essential to the global energy transition. 

Technology and innovation were highlighted as key drivers of growth in the mining sector, aligned with broader sustainable development goals. 

At MIND ID, both sides discussed best practices in mining operations and explored potential partnerships to develop strategic minerals sustainably. 

Conversations with PT Vale underscored the importance of innovation and technology in shaping the future of mining. 

Alkhorayef noted that Indonesia’s mining achievements align closely with Saudi Arabia’s mining strategy, which aims to unlock domestic mineral resources, localize value chains, and position the Kingdom as a global hub for mining investment and innovation. 

Indonesia ranks among the world’s top producers of strategic minerals, including nickel, cobalt, copper, tin, and gold. In 2023, the mining sector contributed 11.9 percent to the country’s gross domestic product, underscoring its critical role in the national economy. 

The country continues to attract international investment focused on developing downstream industries and reinforcing global mineral supply chains — goals that mirror Saudi Arabia’s own strategy to localize value chains and maximize its mineral wealth, the ministry’s statement added. 

Topics: Mining Industries

Saudi Arabia set to dominate $8bn feeder shipping market by 2030

Saudi Arabia set to dominate $8bn feeder shipping market by 2030
Updated 31 min 24 sec ago
Nour El-Shaeri
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Saudi Arabia set to dominate $8bn feeder shipping market by 2030

Saudi Arabia set to dominate $8bn feeder shipping market by 2030
Updated 31 min 24 sec ago
Nour El-Shaeri

RIYADH: Saudi Arabia is on track to become a dominant force in the $8 billion feeder shipping market across the Middle East, Eastern Africa, Turkiye, and South Asia by 2030, according to new research.

The global feeder shipping industry is expected to reach a staggering $451 billion by the end of the decade, with the Kingdom emerging as a key regional and international player in maritime trade.

Feeder vessels—smaller ships that transfer cargo between regional ports and large mainline vessels—play a critical role in streamlining supply chains.

These ships are adept at navigating smaller or less accessible ports, where they consolidate cargo before transferring it to larger vessels for long-distance transport.

This method reduces the number of port calls required by mainline ships, easing congestion and enhancing overall logistics efficiency at major terminals.

A new report by global consulting firm Arthur D. Little, titled “Unlocking Opportunities in the Feeder Shipping Sector,” reveals that Saudi Arabia could capture up to 45 percent of feeder shipping trade in the Red Sea and 35 percent in the Gulf.

This expected growth is fueled by the Kingdom’s ongoing investments in port infrastructure, its strategic geographic location, and its ambitious logistics agenda under Vision 2030.

Recent initiatives, such as the launch of the “JRS” shipping service by Global Feeder Shipping in collaboration with the Saudi Ports Authority, support this outlook.

Announced in December, the JRS service connects Jeddah Islamic Port with key terminals in Egypt, Oman, and India—bolstering Saudi Arabia’s role in enhancing international maritime connectivity and operational efficiency.

Paolo Carlomagno, partner at Arthur D. Little, highlighted the findings, noting Saudi Arabia’s increasingly vital role in shaping the future of global trade.

“Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,” he said.  

“Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match,” he added. 

Feeder shipping—the transport of containers between smaller ports and major global hubs—is becoming an increasingly attractive segment due to asset returns of 17 to 23 percent—outpacing other freight sectors like rail, trucking, and traditional maritime transport, ADL stated. 

While historically underutilized, the feeder shipping sector is rapidly emerging as a vital link in the global logistics chain.

According to projections, container throughput in the Red Sea is set to nearly double — from 12 million twenty-foot equivalent units in 2021 to 23 million by 2030. This surge further solidifies Saudi Arabia’s position as a regional logistics hub, enhancing intra-regional connectivity and strengthening its role along critical East-West trade routes.

The Arthur D. Little report emphasizes that as consolidation and investment continue to reshape the global maritime landscape, Saudi Arabia’s strategic significance will only grow.

To capitalize on this momentum, the report outlines a phased market entry strategy for feeder shipping operators.

ADL recommends an asset-light approach in the initial stages, focusing on vessel chartering and flexible operations.

This model allows new entrants to quickly establish a foothold, mitigate upfront capital risks, and respond nimbly to market demand.

Over time, operators can scale into asset ownership and pursue deeper integration with major shipping lines, freight forwarders, and exporters—cementing long-term growth and resilience within the sector.

“Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,” said Alexandre Sawaya, principal at ADL, Middle East. 

“The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience,” he added. 

The analysis also highlights that feeder shipping is well-aligned with Saudi Arabia’s environmental and sustainability goals.

Due to their smaller size and adaptable design, feeder vessels are particularly suitable for retrofitting with cleaner fuel alternatives — such as methanol, biodiesel hybrids, and hybrid-electric propulsion systems. This technological flexibility complements the Kingdom’s broader climate agenda, which includes a 25 percent reduction in carbon emissions by 2030 and a commitment to achieving net-zero emissions by 2060.

With rising container volumes, expanding port infrastructure, and growing investor interest, Arthur D. Little concludes that Saudi Arabia is uniquely positioned to lead the next wave of growth in the feeder shipping sector—both regionally and on the global stage.

Topics: maritime logistics

Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 

Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 
Updated 16 April 2025
Nirmal Narayanan  
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Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 

Saudi asset management industry hits $266bn, poised for further growth: Fitch Ratings 
Updated 16 April 2025
Nirmal Narayanan  

RIYADH: Saudi Arabia’s asset management industry grew by 20 percent year on year in 2024, pushing the sector’s total assets to SR1 trillion ($266 billion) for the first time, according to a new analysis by Fitch Ratings. 

In its latest report, the ratings agency said the industry is expected to continue attracting steady inflows through 2025 and 2026, with assets under management projected to exceed SR1.3 trillion. 

Fitch attributed the sector’s momentum to several key factors, including a growing investor base, favorable demographics, ongoing economic reforms, strong capital markets, and digital transformation initiatives. 

Bashar Al-Natoor, global head of Islamic Finance at Fitch, said: “Saudi Arabia’s asset management industry is the largest in the GCC (Gulf Cooperation Council) with AUM having crossed SAR1 trillion, and further growth expected.”  

He added: “Almost all mutual funds listed on the Saudi Exchange are Shariah-compliant, indicating strong demand for Islamic products.” 

An earlier report by Fitch in October noted that growth in 2025 would be further supported by a rising number of high-net-worth individuals seeking asset management services within the Kingdom. 

The Saudi government aims for the industry’s AUM to reach 40 percent of the Kingdom’s gross domestic product by the end of the decade. 

The report also noted that bank-affiliated asset managers in Saudi Arabia accounted for nearly two-thirds of the industry’s revenues by the end of 2024. 

However, Fitch pointed out that international competition is likely to intensify as global players such as BlackRock, Goldman Sachs, and Morgan Stanley, as well as Citigroup and Mizuho Bank, have received regulatory approval to establish regional headquarters in the Kingdom. 

The analysis highlighted that around half of Saudi Arabia’s AUM is held in private funds, followed by discretionary portfolio management and public funds. 

Private fund assets are primarily concentrated in real estate and equities, while half of the AUM under discretionary portfolio management is invested in local shares. 

Public fund assets are distributed across money market funds, equities, real estate investment trusts, and debt instruments. 

Fitch also noted that the combined market capitalization of listed equity markets in the GCC surpassed $4 trillion at the end of 2024, led by the Saudi Exchange. 

Despite the strong outlook, the report warned of potential challenges, including trade tensions and fluctuations in oil prices. 

“The market is not immune from global volatilities, such as those caused by the US government’s tariff rises on April 2. Oil price changes are among the key factors that could affect the industry,” Fitch added. 

Topics: ftich ratings AUM Asset management

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Saudi Arabia signs aviation deals at ICAO Conference in Doha

Saudi Arabia signs aviation deals at ICAO Conference in Doha
Updated 16 April 2025
REEM WALID 
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Saudi Arabia signs aviation deals at ICAO Conference in Doha

Saudi Arabia signs aviation deals at ICAO Conference in Doha
Updated 16 April 2025
REEM WALID 

RIYADH: Saudi Arabia’s General Authority of Civil Aviation has signed multiple air transport agreements at the International Civil Aviation Organization Facilitation Conference in Doha, as part of its strategy to bolster international cooperation and expand the Kingdom’s global aviation footprint.

Held from April 14 to 17 in Qatar, the conference brought together officials from 190 countries, including more than 120 ministers of transport and heads of civil aviation authorities.

The agreements aim to establish regulatory frameworks for air transport, reinforce civil aviation safety and security standards, and offer travelers more connectivity options, according to the Saudi Press Agency.

These developments are aligned with Saudi Arabia’s ambitious aviation strategy, which targets seamless travel for 330 million passengers to over 250 destinations and the transportation of 4.5 million tonnes of air cargo annually by 2030. The Kingdom also aims to attract 150 million tourists by the end of the decade.

As part of the latest agreements, GACA President Abdulaziz bin Abdullah Al-Duailej signed air services deals with Liberia and Grenada, and a record of discussions in the field of air transport with Samoa and Fiji. A separate agreement with Ecuador was signed on behalf of GACA by Ali bin Mohammed Rajab, executive vice president for Air Transport and International Cooperation.

“These agreements aim to strengthen ties between Saudi Arabia and participating nations, facilitate the operation of air transport services, and support the safe and orderly growth of the sector in line with the 1944 Chicago Convention,” SPA reported.

The accords also reflect Saudi Arabia’s broader goals of becoming a leading aviation hub in the Middle East and a global player in civil aviation, while maintaining a strong focus on air safety and environmental sustainability.

In addition to signing new agreements, GACA held bilateral meetings with aviation authorities from Qatar, the UAE, Egypt, Syria, Yemen, and Seychelles. Discussions focused on enhancing joint cooperation, forming strategic partnerships, and advancing safety and facilitation standards in the aviation sector.

Organized by the Qatar Civil Aviation Authority in collaboration with ICAO, this year’s conference—held under the theme “Facilitating the Future of Air Transport: Collaboration, Efficiency, and Inclusiveness”—served as a platform for global dialogue on the evolving landscape of civil aviation.

Topics: GACA ICAO aviation

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