‘Global fracture due to lack of trust between superpowers’: WEF panel discusses investing amid geopolitical shifts
Participants emphasized the need for structural reforms to address socioeconomic disparities, and foster trust in global relations
Updated 29 April 2024
RUA’A ALAMERI
RIYADH: Amid shifting geopolitics and declining foreign direct investment in emerging markets, Saudi businesswoman Lubna Olayan emphasized on Monday the crucial role of trust and transparency for investors, highlighting the need for robust foundations in a deeply interlinked global landscape.
During a panel discussion on “Investing amid Global Fracture” at the special two-day World Economic Forum meeting in Riyadh, Olayan highlighted the pivotal role of trust in the reshaping of foreign investment strategies due to the emergence of new global players and escalating security concerns.
“The global fracture stems from a lack of trust between superpowers, which is now escalating to a lack of trust between everyone,” Olayan told the panel.
The prevailing trend evident in this global fracture, primarily seen in the rivalry between the US and China, is countries prioritizing their own interests without feeling obligated to align with any specific side, she said.
Emphasizing the critical significance of transparency in global relations, Olayan highlighted the need for the rule of law and the equitable application of laws as fundamental prerequisites for investors.
Salman Rahman, private industry and investment adviser to the prime minister of Bangladesh, discussed the urgent need for restructuring the global socioeconomic order.
He pointed to inequalities such as the lack of electricity for 50 per cent of Africa’s population and vaccine disparities exposed during the pandemic.
Rahman’s remarks highlighted the need to address socioeconomic disparities and foster a more equitable global landscape.
Laurence Fink, chairman and CEO at BlackRock Inc., stressed the importance of cooperation between governments and stakeholders to navigate the deepening divides between major powers.
He emphasized the critical role of collaborative efforts in addressing the multifaceted challenges of the modern world.
Saudi Center for Space Futures will support lunar mission and $2 trillion global space economy, NASA chief tells Asharq TV
New center will bring space industries together with government programs, says Bill Nelson on Riyadh visit
NASA plans to “go back to the moon” with commercial and international partners, agency chief tells Maya Hojeij
Updated 33 min 24 sec ago
Arab News
RIYADH: The Center for Space Futures, hosted by the Saudi Space Agency, will bring together space industries to send a mission to the moon and build a $2 trillion global space economy by 2035, NASA Administrator Bill Nelson has said.
During a visit to Riyadh this week, the US space agency chief said in a special interview with the Asharq TV channel: “The future of the space center is to bring together space industries, commercial companies, together with the government programs.”
On April 29, the Saudi Space Agency and the World Economic Forum signed an agreement to establish a Centre for the Fourth Industrial Revolution focused on space.
The World Economic Forum and the Saudi Space Agency signed an agreement to establish the Center for Space Futures. (AN photo by Abdulrahman Bin Shalhoubh)
Set to open in the fall of 2024, the Center for Space Futures will be the first center in the C4IR network. It aims to facilitate public-private discussions on space collaboration and contribute to accelerating space technologies.
Nelson told business anchor Maya Hojeij that, after a hiatus of half a century, NASA plans to “go back to the moon.” However, he added: “This time with not only commercial partners, but also with international partners.”
He highlighted that the Center for Space Futures will “bring together those commercial and government programs in order to build a significant space economy.”
Earlier this year, NASA announced that its Artemis II lunar mission will aim to land the first astronauts near the moon’s South Pole in September 2025.
On May 21, 2023, Saudi astronauts Rayyanah Barnawi (L) and Ali Al-Qarni (R) launched toward the International Space Station together with American astronauts Peggy Whitson (2R) and pilot John Shoffner (2L). (Axiom Space photo/file)
NASA’s administrator added: “We’re talking about a space economy that will be almost $2 trillion dollars by the year 2035 — only a little over a decade away — a significant part of the economic sector of a country.”
Elaborating, he said that the “$2 trillion is worldwide. And that is a lot of startup companies, such as I have seen here in Riyadh today, that are partnering with other companies from around the world that are including incentives by the Saudi government.
“So, we do that in America, and that’s where I mentioned that we’re going back to the moon, this time after a half century, because we were on the moon a half-century ago.
“This time, we’re going back to the moon for a different reason, we’re going to learn, to invent, to create in order to be able to go to Mars and beyond. And this time we go back with commercial enterprises.”
NASA’s Apollo 17, which celebrated its 50th anniversary in December 2022, was the space agency’s sixth and final mission to land people on the moon.
The mission landed on the Taurus-Littrow site, which offered a mix of mountainous highlands and valley lowlands, allowing the crew to collect 741 lunar samples.
Nelson told Asharq’s Hojeij that NASA has partnered with Saudi Arabia on multiple scientific instruments to send Artemis II to the moon for economic benefits and to better understand climate change.
During a meeting organized by the Saudi Space Agency and King Abdulaziz City for Science and Technology in Riyadh, Saudi space officials met with NASA chief Bill Nelson and discussed ways to deepen the cooperation in the fields of space. (Courtesy: SSA)
“We have a partnership with Saudi Arabia,” he said. “We’ve already partnered on a number of scientific instruments, but we’ve got a whole way to go.
“We’re going back to the moon and then we’re going to Mars. We are constantly looking down on Earth to help our climate, to better understand what is happening to the Earth, to give very precise measurements of exactly what’s happening there.
“We’re going to coordinate and partner with Saudi Arabia on all of these things.”
Asked about space challenges and how the partnership between Riyadh and Washington sought to address them, Nelson said that debris in space was among the biggest threats to satellites and spacecraft.
“Debris in space is a major problem,” he said. “We are too often having to move our International Space Station to get it out of the way of a piece of space junk that otherwise could hit it.
“Same thing with a lot of our satellites. And so that applies to everybody’s satellites, not just US satellites, Saudi satellites.”
Nelson added that NASA was working with partners “to come up with systems and mechanisms by which we can require the manufacturers of satellites to be able, after their useful life, have a precise landing back through the Earth’s atmosphere to burn up and if any pieces are left over, that they would fall harmlessly in the southern Pacific Ocean.”
Underscoring the importance of these efforts, he said that “whenever something is left in space, it becomes a dangerous projectile that could always ram into something, like our space station.”
The UNU Institute for Environment and Human Security, in its Interconnected Disaster Risks 2023 report, included space debris among its six risk tipping points.
The report, released in February, found that there were 35,150 tracked objects in orbit in 2023. Just 25 percent of these were working satellites while the rest were considered junk, including broken satellites and rocket parts.
This illustration from the Interconnected Disaster Risks 2023 report of the UNU Institute for Environment and Human Security shows computer-generated images of objects in Earth orbit being tracked as of January 2019. Approximately 95% of the objects in the illustration, according to the report that included space debris among its six risk tipping points. (Credit: UNU-EHS)
As objects in space travel at speeds exceeding 25,000 km per hour, any collision may be “catastrophic,” and even the smallest objects can cause significant damage, according to the same UNU-EHS report.
Asked about the Artemis Accords, which Saudi Arabia signed in 2022, the NASA administrator described it as “a common sense set of principles of the peaceful uses of space.
“For example, in the Artemis Accords, we have that you would come to the aid and assistance of a nation that would have a problem in space,” he said.
“We would develop common elements so that you could help each other out, perhaps remotely in space. But, basically, the thrust of it is the peaceful use of space.”
Saudi Arabia is the 21st country globally and the fourth Middle Eastern nation to sign the Artemis Accords, which set out common principles, guidelines and best practices to ensure safe, peaceful and sustainable space exploration.
Nelson’s visit to the Kingdom is intended to explore future collaboration between the US space agency and key government officials, while also emphasizing the significance of civil space cooperation in the broader US-Saudi relationship
NASA Administrator Bill Nelson’ and key Saudi government officials explored future collaboration between the US space agency and the Kingdom's space agency. (
The Saudi Space Agency was launched by royal decree in December 2018 to accelerate economic diversification, enhance research and development, and raise private-sector participation in the global space industry.
Since its launch, the Kingdom’s state-funded space program has struck deals with several of the world’s established space agencies, astronautical companies and top universities to benefit from advanced technological cooperation.
Saudi Arabia’s space industry holds great potential for growth after recording $400 million in revenue in 2022, according to a report by the Saudi Communications, Space and Technology Commission published late last year.
The global space economy is projected to expand to $1.8 trillion by 2035, marking a threefold increase from $630 billion in 2023, according to research published by the World Economic Forum in April.
A growing number of businesses across sectors including agriculture, construction, insurance and climate-change mitigation, are expected to drive the new and expanding space economy.
This rapid surge is being driven by reduced costs and broader accessibility to space-enabled technologies, encompassing various commercial sectors such as communications, positioning, navigation, timing, Earth observation services, tourism and manufacturing.
While state-sponsored investments will remain the cornerstone of the industry, enhanced collaboration between various stakeholders across public and private sectors will be increasingly important to fully realize the sector’s potential in the future.
Standard Chartered Bank aims to boost Saudi-China economic ties with strategic expansion
Updated 19 March 2024
Reina Takla Nadin Hassan
RIYADH: Saudi Arabia offers significant growth potential for foreign banks operating in the Kingdom to meet the increasing demand from Chinese clients, according to a senior banker.
Speaking to Arab News, Jerry Zhang, CEO of Standard Chartered Bank China, noted that the company is strengthening its infrastructure and services to better support Chinese clientele in Saudi Arabia, indicating confidence in the market’s potential.
Zhang said: “We are actually hiring a corridor banker. Corridor banker, meaning that a Chinese-speaking local relationship manager is servicing the underlying clients. So, we are hiring additional resources to be stationed in Saudi to serve the Chinese clients here. This is absolutely driven by the demand.”
She added: “We are also beefing up supporting systems and services capabilities to serve Chinese clients here onshore. That’s a straightforward proof of how we see the potential of this market.”
Standard Chartered’s banking presence in the region is relatively new, as it commenced operations in Saudi Arabia in 2022.
However, the corridor between the Middle East and China already contributes 10 percent to the bank’s income and is experiencing rapid growth.
“Hopefully, in 12-24 months’ time, we will see the share of the Middle East corridor within the entire China origination income grow faster, particularly in Saudi Arabia, and I can claim a large share of that and report it to you,” Zhang said.
Additionally, the CEO underlined that Saudi Arabia and China align strategically. The Kingdom is actively seeking diversification in its economy, particularly in sectors like infrastructure, new energy, technology, logistics, and e-commerce. These sectors are recognized as key areas where North Asian companies excel.
“Therefore, I think Chinese companies do have an edge and also an urge to come across to Saudi Arabia to provide their products and services, expanding into this part of the world very fast. In our Standard Chartered’s position, we’ve been consistently transitioning to support the so-called emerging new economy in China for the past eight to 10 years,” Zhang continued.
The CEO underscored that new economy sectors, such as technology and innovation, have experienced significant growth and now contribute nearly 50 percent of the firm’s corporate income.
This transition aligns strategically with both countries’ goals and supports Saudi Arabia’s Vision 2030 by providing services in sectors relevant to its objectives.
Zhang further elaborated on the development of the Chinese economy, highlighting its 5.2 percent growth rate last year, which is considered strong compared to other major economies.
She anticipates a 4.8 percent growth rate for 2024, primarily driven by consumption and growth in these rising industries.
“More than 30 million cars have been produced and sold. For the first time in history, China has exceeded Japan to become the No. 1 exporter of cars worldwide, and for EV (electric vehicle) cars in particular, last year, I think China has produced close to 10 million EVs and more than 30 percent in the penetration ratio,” Zhang said.
Commenting on the relationship between the North Asian country and Saudi Arabia, Zhang said that Standard Chartered China has engaged with the Kingdom’s leadership team and women entrepreneurs in technology, whom they have sponsored and supported through programming.
“First, we saw the bilateral relationship really accelerate after President Xi’s visit. By the end of 2022 and during the investment conference, both sides had signed more than 60 agreements worth more than $25 billion in contracts, which is extremely exciting, and things have been moving even faster from there,” Zhang commented.
She added, “The two central banks have signed a currency swap program worth 50 billion RMB, which will pave a very strong foundation for financial collaboration between the two nations as well... We are seeing this extremely friendly government-to-government relationship that further nurtures the economic ties between the two sides.”
The bank is enhancing its presence by adding more personnel, introducing new products and solutions, and implementing best practices from its global operations in the Kingdom.
Mazen Bunyan, CEO of Standard Chartered Saudi Arabia, emphasized that the Kingdom and China share a historic and long-standing relationship. Additionally, both nations have very similar strategies for achieving their economic growth, diversification, and objectives.
“We have a very unique opportunity and position as a global bank in both markets to leverage on that network, on connectivity. We’re expanding on the market. We’re expanding our operations, and adding people, products and services on the ground, and solutions,” Bunyan told Arab News.
He added: “At the same time, we continue to engage with key stakeholders on each side, China and Saudi Arabia, to smooth the knowledge gap to help the engagement between the two counterparts or two countries.”
Bunyan highlighted that the bank has around 50 employees working directly in the Kingdom, the majority of whom are Saudi nationals. Additionally, a significant number of women leaders are present within the organization’s regional workforce.
“We have also a very huge portion of women leaders within both entities, and we continue to invest in talent in Saudi Arabia and develop them as well in line with the Vision 2030 Human Capital Development Program,” Bunyan said.
Standard Chartered Bank in Saudi Arabia operates as a full-fledged wholesale organization, focusing on serving government and quasi-government financial institutions as well as large and global companies in the Kingdom. The bank’s objective is to deliver value to these clients and support them in achieving their respective objectives and strategic priorities.
The financial institution plays a significant role in facilitating inward business into Saudi Arabia, leveraging its extensive global footprint, particularly in regions like China.
Additionally, Standard Chartered assists international companies in establishing their presence and operations in the Kingdom, serving as a bridge between these companies and the Saudi market.
Saudi Arabia named ‘most improved country overall’ in US Chamber of Commerce IP Index
Updated 06 March 2024
Sulafa Al-Khunaizi
RIYADH: Saudi Arabia has received recognition as “the most improved country overall” in the 12th edition of the US Chamber of Commerce International Intellectual Property Index.
Released on March 2, the report emphasizes the several achievements of the Kingdom, with Vice President of Middle East Affairs at the US Chamber of Commerce Steve Lutes telling Arab News that Saudi Arabia has made significant strides in the technology sector over the past year.
“Specifically, I think this year the Kingdom did sign on to some important international treaties and they’ve made some other progress on both the enforcement side and some other of the indicators,” Lutes said on the sidelines of the LEAP 2024 conference.
“The Kingdom moving up in ranking gives more confidence to investors,” he added.
Lutes went on to say that the body aims to encourage partnerships with the business community, government, and academia in Saudi Arabia to drive the establishment of a diversified, knowledge-based economy aligned with Vision 2030.
The US Chamber of Commerce considers over 50 indices when ranking countries, Lutes added.
“Some of this looks very marginal. But really, when you think about it from an economic perspective, these are very important drivers because these are the sorts of things that companies look at. Is my IP going to be safe? Is it going to be protected? Are rules going to be enforced? And that’s where you get the investment in value and innovation,” said the vice-president.
The Kingdom allocates a total of $2 million across all funding rounds dedicated to artificial intelligence companies and over $3 billion proportional to gross domestic product with a ranking position of 31 in the Global AI index.
“We’ve been looking at this as governments around the globe start to grapple with the regulatory frameworks for artificial intelligence. The Chamber commissioned a report that was largely targeted toward a domestic audience and had some policy recommendations in that,” said Lutes.
A report by the European Centre for International Political Economy and the US Chamber of Commerce, titled “The Opportunity of Artificial Intelligence: Boosting Productivity and Growth in Saudi Arabia,” will be released in March.
The study will include a breakdown covering the benefits of AI for the Kingdom, endowments and digital industry structures, and AI policies going forward.
“It has some sector-by-sector analysis where we think it can be the most impactful. In my mind, though, the biggest message is for policymakers,” Lutes said, adding: “One of those is investing, for example, in human capital. You have to have the workforce that’s ready to take on these technologies and bring it to government processes, to business processes and see it diffuse. So, when it comes to the sectors, I think, you know, healthcare and education are two that are highlighted in particular as having the most upside.”
Lutes added this is his first time attending LEAP, which is now in its third edition, and the Chamber has been collaborating with the Ministry of Communications and the Saudi Authority for Data and Artificial Intelligence.
“We are at the LEAP Conference and IP is so fundamental to that. So, kudos to the Kingdom this year. And I guess our message is let’s not rest on our laurels. Let’s continue to work together to see if we can continue to see the Kingdom climb in that index as well,” he concluded.
LEAP, held in Riyadh from March 4-7, is an annual premier tech event founded in 2022 by the Ministry of Communication and Information Technology. It convenes leading professionals from the sector to deliberate on the industry’s future and the innovative opportunities ahead.
Prince Mohammed bin Salman College, Saudi Press Agency sign training agreement
MBSC will train journalists in ‘interpersonal effectiveness skills,’ such as negotiation and presentation
Updated 03 March 2024
Reina Takla & Hind Al-Khunaizi
RIYADH: The Prince Mohammed bin Salman College for Management and Entrepreneurship announced on Thursday a new partnership with the Saudi Press Agency to provide specialized training and development programs for the Kingdom’s news industry.
The partnership was co-signed by Zieger DeGreef, dean of MBSC, and Fahad bin Hassan Al-Aqran, president of SPA, during the “Human Capabilities Initiative” conference held in Riyadh on Feb. 28-29.
“We are proud to partner with the Saudi Press Agency,” DeGreef said. “We are proud to partner with a number of very prominent ministries and organizations in the Kingdom to develop business acumen in Saudi Arabia.”
He told Arab News that the partnership will train journalists in a variety of “interpersonal effectiveness skills,” such as teamwork, negotiation, presentation, influencing, decision-making, and communication — all of which “are very relevant for journalists (and) for professionals in the media.”
DeGreef added that although “there is already good education in the Kingdom,” it has “a long way to go in excellence in business education.”
He added: “The college tries to fill that void.”
In addition to joining media-focused training programs under the agreement, Saudi journalists will also be able to obtain graduate degrees in business administration and finance.
“We will welcome journalists in those degree programs in business, but we are also developing an exciting portfolio of executive education programs again for the media,” DeGreef said. “So, most of our partnerships are already in those two areas, but the third area is research.”
He highlighted that MBSC’s faculty “will work with journalists from SPA on particular research projects, mostly linked to data, data analysis, data presentations, (and) data communication.”
SPA announced on Thursday the launch of its first news training academy in partnership with several organizations, including the Technical and Vocational Training Corporation, the Prince Mohammad Bin Salman College of Business and Entrepreneurship, the Institute of Public Administration, the Human Resources Development Fund, Sky News Arabia Academy, and the Austrian International Center for Qualification and Quality.
UAE invests $35bn in development of Egypt’s Mediterranean coast region
The deal, signed by a private consortium led by ADQ, a sovereign investment fund based in Abu Dhabi, is the single largest foreign direct investment in Egypt
Updated 25 February 2024
Arab News
LONDON: The UAE, represented by a private consortium led by ADQ, a sovereign investment fund based in Abu Dhabi, signed a landmark agreement with Egypt on Friday to invest $35 billion in Ras El-Hekma, a region on the Mediterranean coast 350 kilometers northwest of Cairo. It represents the single largest foreign direct investment in Egypt.
“In addition to acquiring the development rights for Ras El-Hekma for $24 billion, ADQ will also convert $11 billion of deposits that will be utilized for investment in prime projects across Egypt,” the Emirati state news agency, WAM, reported.
“The vision is to develop the region into a leading, first-of-its-kind Mediterranean holiday destination, financial center and free zone spanning over 170 million square meters and equipped with world-class infrastructure to strengthen Egypt’s economic and tourism growth potential.”
This is to strengthen Egypt's economic and tourism growth potential.
This investment aligns with our investment framework and demonstrates our confidence in pursuing development projects that will deliver long term value across multiple sectors of Egypt’s vibrant economy.
The Egyptian government will retain a 35 percent stake in the development.
Mohammed Hassan Alsuwaidi, the Emirati minister of investment, said: “With this signing, a new chapter begins in the long-standing bilateral relations between our two nations.
“Underscored by mutual respect and trust, this investment demonstrates the UAE’s commitment to supporting the government of Egypt in realizing the abundant potential of the local economy.
“As a large-scale infrastructure project, the planned Ras El-Hekma development will foster widespread impacts across multiple sectors, be a catalyst for job creation, and attract significant additional foreign direct investments in the years to come.”
ADQ said work to build the “next generation city” over 170 square kilometers — nearly a fifth of the size of Abu Dhabi city — would begin in early 2025. The city would feature investment zones, technology and light industry, amusement parks, a marina and an airport as well as tourism and residential developments.
Egyptian Prime Minister Mostafa Madbouly told a press conference that the deal would bring in $15 billion in the next week and $35 billion over two months — though he said $11 billion of that money would be converted into Egyptian pounds from existing UAE dollar deposits in Egypt’s central bank.
