BERLIN: US tariffs and sanctions policies are likely to keep investors on their toes in the coming week as European politicians and policymakers continue their summer break, while economic data from Germany and the euro zone will also be in focus.
Washington’s latest sanctions on Russia have battered the rouble, and Turkey’s lira has been hammered by concern that Ankara is sliding into a full-blown economic crisis.
US President Donald Trump’s determination to push ahead with sanctions on Tehran that also target foreign companies doing business with Iran has opened another battle front in addition to a much broader dispute over trade tariffs.
German business associations have warned that companies are increasingly suffering from Trump’s sanctions policies — including those against Iran — as well as the tariffs he is imposing in an escalating tit-for-tat trade conflict with China.
“In terms of geopolitics, the trade war between the US and China could enter center stage again next week,” ING economist Carsten Brzeski said. “Also, keep an eye on Turkey, where some kind of IMF involvement is getting closer.”
Turkey’s lira has plunged to record lows on concerns about President Tayyip Erdogan’s influence on monetary policy and increasingly authoritarian rule, and about a diplomatic rift with Washington over Ankara’s detention of several Americans including an evangelical pastor.
On the data front, Germany on Tuesday will be the last of the large euro zone economies to publish an estimate for gross domestic product (GDP) in the second quarter.
Analysts polled by Reuters expect the quarterly growth rate to pick up to 0.4 percent from 0.3 percent in the first quarter, suggesting that Europe’s largest economy is humming along despite the uncertainty caused by US tariffs and sanctions.
Rising risks
Also on Tuesday, the euro zone will report its second estimate for GDP in April-June. Preliminary data last month showed economic growth in the 19 countries sharing the euro slowed to 0.3 percent quarter-on-quarter.
Eurostat’s preliminary figures for euro zone growth have often been revised up in the past, but weaker-than-expected June industrial output data from Germany and Spain have suggested this may not be the case this time.
“An upward revision would change little in economic terms, but could bolster perceptions of stable growth despite rising risks,” Oliver Rakau from Oxford Economics said.
The European Central Bank has said that risks to global growth are growing as the spectre of protectionism and the threat of higher US tariffs sap confidence.
Final inflation data for the euro zone due on Friday is likely to confirm that headline consumer price inflation accelerated to 2.1 percent year-on-year in July from 2.0 percent in June, mainly because of a spike in the cost of energy.
The ECB wants to keep headline inflation below but close to 2 percent over the medium term.
“For the ECB all of this means that it can remain on track with its dovish tapering,” ING’s Brzeski said. “The timing of a first rate hike, however, remains extremely uncertain.”
The ECB plans to wrap up its unprecedented 2.6 trillion euro stimulus program known as quantitative easing (QE) by the end of the year and keep interest rates at record lows through the summer of 2019.
Surveys suggest concerns over trade have already begun to dampen investment activity which could translate into meagre growth and moderate inflation rates in the second half of the year.
“All of that should not alter the ECB’s QE exit plans, but it will keep all of us busy speculating about the first rate hike,” Rakau from Oxford Economics said.
Tariffs and sanctions turmoil may overshadow EU, German growth data
Tariffs and sanctions turmoil may overshadow EU, German growth data
- Turkey’s lira has been hammered by concern that Ankara is sliding into a full-blown economic crisis
- German business associations have warned that companies are increasingly suffering from Trump’s sanctions policies
How AI and financial literacy are redefining the Saudi workforce
- Preparing people capable of navigating money and machines with confidence
ALKHOBAR: Saudi Arabia’s workforce is entering a transformative phase where digital fluency meets financial empowerment.
As Vision 2030 drives economic diversification, experts emphasize that the Kingdom’s most valuable asset is not just technology—but people capable of navigating both money and machines with confidence.
For Shereen Tawfiq, co-founder and CEO of Balinca, financial literacy is far from a soft skill. It is a cornerstone of national growth. Her company trains individuals and organizations through gamified simulations that teach financial logic, risk assessment, and strategic decision-making—skills she calls “the true language of empowerment.”
“Our projection builds on the untapped potential of Saudi women as entrepreneurs and investors,” she said. “If even 10–15 percent of women-led SMEs evolve into growth ventures over the next five years, this could inject $50–$70 billion into GDP through new job creation, capital flows, and innovation.”
Tawfiq, one of the first Saudi women to work in banking and later an adviser to the Ministry of Economy and Planning on private sector development, helped design early frameworks for the Kingdom’s venture-capital ecosystem—a transformation she describes as “a national case study in ambition.”
“Back in 2015, I proposed a 15-year roadmap to build the PE and VC market,” she recalled. “The minister told me, ‘you’re not ambitious enough, make it happen in five.’” Within years, Saudi Arabia had a thriving investment ecosystem supporting startups and non-oil growth.
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At Balinca, Tawfiq replaces theory with immersion. Participants make business decisions in interactive simulations and immediately see their financial impact.
“Balinca teaches finance by hacking the brain, not just feeding information,” she said. “Our simulations create what we call a ‘business gut feeling’—an intuitive grasp of finance that traditional training or even AI platforms can’t replicate.”
While AI can personalize lessons, she believes behavioral learning still requires human experience.
“AI can democratize access,” she said, “but judgment, ethics, and financial reasoning still depend on people. We train learners to use AI as a co-pilot, not a crutch.”
Her work aligns with a broader national agenda. The Financial Sector Development Program and Al Tamayyuz Academy are part of Vision 2030’s effort to elevate financial acumen across industries. “In Saudi Arabia, financial literacy is a national project,” she said. “When every sector thinks like a business, the nation gains stability.”
Jonathan Holmes, managing director for Korn Ferry Middle East, sees Saudi Arabia’s digital transformation producing a new generation of leaders—agile, data-literate, and unafraid of disruption.
“What we’re seeing in the Saudi market is that AI is tied directly to the nation’s economic growth story,” Holmes told Arab News. “Unlike in many Western markets where AI is viewed as a threat, here it’s seen as a catalyst for progress.”
Holmes noted that Vision 2030 and the national AI strategy are producing “younger, more dynamic, and more tech-fluent” executives who lead with speed and adaptability. Korn Ferry’s CEO Tracker Report highlighted a notable rise in first-time CEO appointments in Saudi Arabia’s listed firms, signaling deliberate generational renewal.
Korn Ferry research identifies six traits for AI-ready leadership: sustaining vision, decisive action, scaling for impact, continuous learning, addressing fear, and pushing beyond early success.
“Leading in an AI-driven world is ultimately about leading people,” Holmes said. “The most effective leaders create clarity amid ambiguity and show that AI’s true power lies in partnership, not replacement.”
He believes Saudi Arabia’s young workforce is uniquely positioned to model that balance. “The organizations that succeed are those that anchor AI initiatives to business outcomes, invest in upskiling, and move quickly from pilots to enterprise-wide adoption,” he added.
DID YOU KNOW?
• Saudi women-led SMEs could add $50–$70 billion to GDP over five years if 10–15% evolve into growth ventures.
• AI in Saudi Arabia is seen as a catalyst for progress, unlike in many Western markets where it is often viewed as a threat.
• Saudi Arabia is adopting skills-based models, matching employees to projects rather than fixed roles, making flexibility the new currency of success.
The convergence of Tawfiq’s financial empowerment approach and Holmes’s AI leadership vision points to one central truth: the Kingdom’s greatest strategic advantage lies in human capital that can think analytically and act ethically.
“Financial literacy builds confidence and credibility,” Tawfiq said. “It transforms participants from operators into leaders.” Holmes echoes this sentiment: “Technical skills matter, but the ability to learn, unlearn, and scale impact is what defines true readiness.”
As organizations adopt skills-based models that match employees to projects rather than fixed job titles, flexibility is becoming the new currency of success. Saudi Arabia’s workforce revolution is as much cultural as it is technological, proving that progress moves fastest when inclusion and innovation advance together.
Holmes sees this as the Kingdom’s defining opportunity. “Saudi Arabia can lead global workforce transformation by showing how technology and people thrive together,” he said.
Tawfiq applies the same principle to finance. “Financial confidence grows from dialogue,” she said. “The more women talk about money, valuations, and investment, the more they’ll see themselves as decision-makers shaping the economy.”
Together, their visions outline a future where leaders are inclusive, data-literate, and AI-confident—a model that may soon define the global standard for workforce transformation under Vision 2030.
