KAUST drives Vision 2030 with groundbreaking sustainability efforts 

Special KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to Saudi Arabia’s future.   
KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to Saudi Arabia’s future.   
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Updated 09 December 2024
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KAUST drives Vision 2030 with groundbreaking sustainability efforts 

KAUST drives Vision 2030 with groundbreaking sustainability efforts 
  • KAUST’s Accelerating Impact Strategy focuses on translating research into practical innovations, directly aligning with Vision 2030
  • KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to the Kingdom’s future

RIYADH: With a vision that merges innovative research and practical solutions, King Abdullah University of Science and Technology is shaping the future of Saudi Arabia by tackling sustainability challenges and driving economic innovation.   

Speaking to Arab News on the sidelines of the UN Convention to Combat Desertification COP16 in Riyadh, Sir Edward Byrne, the president of KAUST, emphasized the university’s critical role in achieving the Kingdom’s ambitious goals.

“KAUST has two major contributions to make: brilliant science to validate the principles and the direction forward, and technology implementation to enable the journey,” he said.   

KAUST’s Accelerating Impact Strategy focuses on translating research into practical innovations, directly aligning with Vision 2030.     

The university’s initiatives are addressing pressing environmental challenges, fostering economic development, and positioning KAUST as a global research leader.   

“We have several hundred projects currently geared to the environmental needs of the Kingdom,” Byrne said.      




Sir Edward Byrne, President of KAUST.

Turning vision into reality    

KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to Saudi Arabia’s future.    

The university’s Center for Sustainable Food Production is developing salt-resistant crops and advanced soil technologies to enhance dryland farming.   

“Our researchers are making better soil that holds water, enabling efficient farming with minimal resources,” Byrne said.  

In energy, KAUST is pioneering clean energy generation and battery storage solutions.   

“We’ve signed a memorandum on cryogenic carbon capture with the Ministry of Energy, showing how we can safely store carbon while transitioning to a diverse energy mix,” Byrne said. 

These innovations are not years away but are being developed and implemented now, benefiting both the Kingdom and the global community. 

Water sustainability is another priority. KAUST is exploring methods to reduce the energy cost of desalination by up to 90 percent. “Generating water is incredibly energy-intensive,” Byrne said.    

He added: “We’re looking at ways to make it far more efficient, which is crucial for the Kingdom’s sustainability goals.”   

KAUST’s contributions extend beyond the lab and into real-world applications, as Byrne highlighted partnerships with key entities such as SABIC, Saudi Aramco, and the Saudi Electricity Co., which are leveraging KAUST’s expertise to scale transformative technologies. 

Research backed by collaboration    

Prof. Sami Al-Ghamdi, a leading expert in environmental impact research at KAUST, highlighted the importance of collaboration.   

“Addressing sustainability and environmental issues requires partnerships,” Al-Ghamdi said.   

He added: “We work with ministries, companies like NEOM, and stakeholders to ensure our research translates into actionable solutions.”   

Al-Ghamdi stressed KAUST’s role in bridging the gap between science and implementation stating: “We don’t just create academic papers. We develop solutions that can be applied locally, nationally, and internationally.”   

 

For example, KAUST is advancing the Red Sea research agenda, previously underexplored, to tackle global challenges related to energy, water, and food security.   

Through startups and innovations, the university is driving real-world applications of its research.   

“We’re transforming lab research into market-ready solutions, addressing issues like climate and environmental sustainability,” Al-Ghamdi said.    

He pointed out that KAUST is also playing a significant role in promoting green jobs, aligning with global trends in sustainability-focused employment.    

Monitoring sustainability   

Prof. Matthew McCabe is at the forefront of KAUST’s Earth Observation Dashboard, a tool that monitors land degradation and restoration in real time.   




Prof. Matthew McCabe.

“We are looking for planetary variables that we can turn data into actionable intelligence. And that’s going to be of use for things like the Saudi Green Initiative and the African Forest Restoration Project,” McCabe said.   

The dashboard provides independent verification of restoration efforts, a critical need as global agreements like the Kunming-Montreal Protocol call for restoring 30 percent of land by 2030. 

“You will be aware that in COP there’s a number of targets and policies that have been signed by representative countries. The Kunming-Montreal Protocol, for instance, calls for the restoration of 30 percent of land by 2030,” McCabe said.     

He continued: “Their targets and signatures on pages. What we actually need is independent verification that these activities and actions are actually happening. The beauty of having a platform in space is that it can see everything. It sees everywhere. There’s no country that it’s not passing over at some point in time.”  

McCabe underscored the economic benefits of restoring ecosystems noting: “I think having a healthy environment is the centerpiece of a prosperous economy. Full stop, so certainly there's going to be a huge explosion in green jobs.”   

The platform’s capabilities extend beyond Saudi Arabia. “We’re using lessons learned here to support large-scale projects like Africa’s AFA100, which aims to restore 100 million hectares,” McCabe stated. 

He added: “We have shown we can get these actionable insights, turning data into knowledge. We’ve shown that we can do that here in the Kingdom. What we want to do is translate and scale that to everywhere, and we’re working with partners around the world.” 

This scalability ensures that innovations developed at KAUST can benefit global environmental restoration initiatives.    

Addressing land degradation   

In another interview with Arab News, Prof. Fernando Maestre at KAUST stressed that land is fundamental for achieving sustainability. 

“Our projects improve restoration activities and monitor biodiversity and carbon sequestration across Saudi ecosystems,” Maestre said.   

One critical gap Maestre’s team is addressing is the lack of data on soil organic carbon in arid regions.   

“There is a lack of data from Saudi Arabia, for instance, and for many other arid and hyperactive regions. One of the key objectives of our research program is to contribute to fill this gap, providing reliable data obtaining and standardize manner across major Saudi ecosystems on soil carbon,” he said.  

 

Maestre added: “Another key component for research is to provide the ground data that are needed to validate remote sensing approaches that are currently being used to monitor biodiversity and to characterize vegetation productivity, to achieving land degradation neutrality.”   

By combining advanced satellite technology with ground data, Maestre’s research supports both local and global sustainability efforts.   

However, Maestre emphasized the importance of local engagement. “Satellites won’t plant trees or move camels,” he said,  

He added: “We listen to local stakeholders and integrate their knowledge with cutting-edge science to create effective solutions.” 

Maestre’s approach involves building partnerships with local and international collaborators.   

“Collaboration is key to addressing global challenges. By working with over 200 scientists from 25 countries, we bring a global perspective to local issues,” he added.    

His team’s efforts are helping bridge the gap between research and real-world application, ensuring that science informs policy and practice effectively.    

 

A bright future ahead

Since its founding 15 years ago, KAUST has established itself as a global research powerhouse.   

“KAUST is only 15 years old in an incredibly short period of time, it’s recognized globally as one of the world’s truly great research universities that draws incredible engineering and scientific talent into the kingdom, and that’s happening in an ongoing way,” Byrne said. 

KAUST’s groundbreaking contributions are already transforming Saudi Arabia’s view on global science.    

Byrne emphasized the university’s role as a beacon for attracting scientific talent to the Kingdom. “KAUST’s success shows that Saudi Arabia can develop a world-class research university from the ground up, inspiring other initiatives like NEOM,” he said. 

Looking ahead, KAUST’s commitment to sustainability and innovation will continue to drive progress. 

By addressing challenges in energy, water, food, and land management, the university is ensuring that Saudi Arabia not only meets its Vision 2030 goals but sets an example for the world.  

“KAUST is the third great university I've led, and it is by far the most aligned with the world's needs. The work going on there at the moment to help develop a sustainable future for the planet is in my mind just incredible,” Byrne concluded. 

As the Kingdom advances its Vision 2030 goals, KAUST’s role in sustainability, economic development, and innovation is more vital than ever. 

With its unique combination of cutting-edge research, strategic partnerships, and actionable solutions, KAUST is not just shaping the future of Saudi Arabia but also setting a global benchmark for scientific excellence and sustainability. 


Fintech sector transformation accelerating thanks to Vision 2030 reforms, analysts confirm

Fintech sector transformation accelerating thanks to Vision 2030 reforms, analysts confirm
Updated 17 January 2025
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Fintech sector transformation accelerating thanks to Vision 2030 reforms, analysts confirm

Fintech sector transformation accelerating thanks to Vision 2030 reforms, analysts confirm

JEDDAH: Reforms across Saudi Arabia’s financial landscape have significantly transformed the sector, driven by the Financial Sector Development Program, experts have told Arab News.

One of the key initiatives of the Kingdom’s Vision 2030, the program aims to promote income diversification, enhance savings, and provide a range of financing and investment opportunities.

These reforms have been implemented under the close oversight of the Saudi Central Bank, known as SAMA, which has also played a crucial role in fostering the growth of fintech and digital banking through a supportive regulatory framework and various initiatives.

Speaking to Arab News, Yaseen Ghulam, associate professor of economics and director of research and consulting center at the Riyadh-based Al-Yamamah University, named five major reforms in Saudi Arabia’s financial sector that have had significant impact on the overall efficiency and competitiveness of financial institutions.

He noted that the FSDP, which was launched in 2017, has enhanced the Saudi Stock Exchange, or Tadawul, to become a globally competitive investment platform with robust market infrastructure.

Yaseen Ghulam, associate professor of economics and director of research and consulting center at the Riyadh-based Al-Yamamah University. Supplied

“The plan is to enhance trading infrastructure and settlement processes to meet international best practices, raising market capitalization, liquidity, and value to over $3 trillion, and facilitating the acquisition of money by overseas investors,” he said.

He added that this has led to greater online platforms, advanced fintech capabilities, integrated custody and clearing regimes, and greater investor rights, as well as increased alignment with sustainable finance norms, and improved transparency procedures.

He further added that Tadawul’s inclusion in the MSCI Emerging Markets Index in 2019 enhanced its standing as a global player.

Ghulam mentioned that fintech innovation has been a significant focus since the launch of the Fintech Saudi initiative in 2018, which has propelled Saudi Arabia toward becoming the leading hub for the sector in the region.

He added that by 2022, the program had helped the fintech ecosystem grow quickly, as seen by the establishment of many innovative businesses and the widespread use of digital payments.

“By enacting progressive laws, SAMA enabled this fintech revolution. In order to promote development, it built a regulatory sandbox for supervised testing of cutting-edge technologies, created specialist licenses for fintech businesses, and made banking infrastructure and application programming interfaces available,” he added.

This view was echoed by financial analyst Khalid Gaber Al-Zaidiy, who told Arab News that SAMA’s regulatory framework is key to the growth of fintech and digital banking in the Kingdom.

He added that some of the key impacts of this framework include encouraging innovation while maintaining financial stability.

“SAMA supports fintech innovation through initiatives like the Fintech Sandbox, enabling startups to develop and test products within a regulated environment,” he said.

By enforcing strict cybersecurity standards and regulations related to the protection of personal financial data, he added, SAMA enhances consumer trust in using fintech solutions. “This helps the sector grow sustainably and securely,” Al-Zaidiy said.

He added that by licensing new digital banks, SAMA fosters competition and supports digital economy growth, advancing the sector.

“The Central Bank’s policies promote financial inclusion and expand access to banking through digital solutions, creating opportunities for fintech companies,” the analyst added.

Green growth and international trust

Ghulam also highlighted the Kingdom’s commitment to green finance, stating that it has made strides in promoting environmentally friendly investments and projects in line with global sustainability trends.

This includes the issuance of green bonds as part of its Vision 2030 goals. “Saudi Arabia has positioned itself as a key player in the worldwide transition to a more environmentally responsible economic model through these proactive initiatives,” he said.

Ghulam emphasized that Saudi Arabia has implemented strategic policies to increase international investor participation, which has led to a record increase in foreign capital inflows and a boost in confidence in the Saudi financial system.

“Growing inflows reflect a global increase in trust in the stability of Saudi Arabia’s financial system,” he said.

He praised the establishment of the National Debt Management Center, adding that by creating specialized bodies to oversee the management of the country’s debt, Saudi Arabia has taken decisive action to improve public financial control and preserve a sound fiscal position.

Explaining how the rise of fintech and digital banking is reshaping customer expectations and experiences in the financial services industry, Ghulam stated that one of the most significant initiatives of the FSDP is the implementation of open and digital banking through fintech.

“As a result, Saudi Arabia is leading the fintech revolution, with over 226 fintech enterprises already in existence, due to its well-functioning telecommunication sector and heavy investment by government and telecom companies in infrastructure set up to bring higher speed and reliability of connections,” he said.

More importantly, the economist added, STC Bank, the Saudi Digital Bank, and the payment system of Sarie are leading the way in consumer digital banking and payment systems.

Ghulam further stated that digital banking saves customers time, reduces transaction costs, and fosters competition and economic growth.

“It is enhancing the financial sector by introducing new products and services for Saudi consumers and businesses. With consumer consent, these banking facilities allow third-party providers access to financial data, driving innovation in the industry,” he said, adding that digital wallets, smartphone apps, and online banking have become essential for managing accounts and transactions.

“Opening a bank account can now be done online, benefiting rural areas by eliminating the need for in-person visits. This shift has also improved financial inclusion by providing credit, insurance, and services to previously marginalized individuals and regions,” Ghulam said.

SMEs thriving

Highlighting how financial reforms are addressing the specific funding challenges faced by small businesses in Saudi Arabia, Ghulam noted that the Kingdom has over 1.3 million SMEs.

He noted that, like other developed countries, these companies face challenges in securing necessary financing due to collateral limitations and higher credit risk.

“The impetus for reforms in relation to SMEs funding has come from Vision 2030 and is related to FSDP. One of the main objectives of FSDP and related reforms is to amplify the financing of micro, SMEs within the banking system and to set up institutions such as SME Bank, Monsha’at, and Venture Capital companies to help improve thefinancing and ecosystem,” he said.

He noted that the FSDP aims to expand the current 10 percent ratio of SMEs financing in the banking system to 11 percent by 2025.

More importantly, to show its continued and strong support for these businesses, he said, the government is recommending that financial institutions devote 20 percent of their loan portfolios to this industry.

“Monsha’at has introduced several schemes in this regard. These include Funding Gate, an online one-stop-shop for financing, aggregating lenders and services, KAFALAH program, a loan guarantee service to help reduce risk and increase appetite for lenders, and Saudi Venture Capital Co., as well as Esterdad Initiative, and loans facilitated through the Indirect Lending Initiative,” he said.

The academic added that the fintech revolution resulting from reforms is also helping increase funding for SMEs in this regard, saying: “B2B FinTech solutions are highly sought after as they solve issues with credit availability, payment processing, and money management.”

Ghulam further said that the Public Investment Fund is also helping improve SMEs funding, along with oil giant Saudi Aramco’s Taleed program which offers more than SR3 billion in funding to eligible firms.

“All these varied funding channels would have not been possible without reforms and government push to help the smaller businesses that are the backbone of the future Saudi economy that is less reliant on fossil fuel income,” the economist said.

With capital of over SR3 billion, the Taleed Program targets sustainable growth of SMEs (File/AN)

The establishment of the Financial Literacy Entity within the FSDP is a key strategy in Saudi Arabia’s efforts to boost financial literacy and promote digital banking, aligning with Vision 2030’s goals.

“Several fintech businesses, such as Darahim and Fatafeat, are attempting to increase financial literacy in the Kingdom. In a significant step, the Saudi Ministry of Education mandated the inclusion of a ‘Financial Knowledge’ course in school curricula,” Ghulam said.

He further said that Thameen and Smart Investor, two awareness efforts run by the Capital Market Authority, are targeted at the financial literacy of adults and young people, respectively.

“A 2023 report from the SAMA states that citizens’ financial literacy has increased due to these activities. These policies are indeed bearing fruit: as of 2023, 38 percent of adults were estimated to have a basic understanding of financial concepts, up from 30 percent in 2021,” the academic said.


Saudi corporate lending sees highest growth in 2 years as bank loans reach $782bn

Saudi corporate lending sees highest growth in 2 years as bank loans reach $782bn
Updated 17 January 2025
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Saudi corporate lending sees highest growth in 2 years as bank loans reach $782bn

Saudi corporate lending sees highest growth in 2 years as bank loans reach $782bn

RIYADH: Saudi Arabia’s bank loans surged to SR2.93 trillion ($782 billion) in November, marking a 13.33 percent year-on-year increase — the highest growth rate in 22 months.

According to figures from the Saudi Central Bank, also known as SAMA, corporate loans were the main driver, surging 17.28 percent to SR1.58 trillion.

This marks the highest annual growth for corporate loans among the lending activity data available in SAMA’s reporting since 2021.

Real estate activities led the charge, representing 21 percent of corporate lending and growing by 32 percent to SR328 billion.

Wholesale and retail trade accounted for 13 percent of corporate lending, reaching SR201.6 billion with an annual growth rate of 10.62 percent.

The manufacturing sector, a key component of Vision 2030’s economic diversification goals, represented 12 percent share at SR182.44 billion.

Electricity, gas, and water supplies contributed 11 percent to the total corporate share, growing significantly by nearly 27.74 percent to reach SR178.56 billion.

Notably, professional, scientific, and technical activities, though holding a smaller 0.53 percent share of corporate credit, witnessed the most significant surge, with a 54.44 percent annual growth rate to SR8.38 billion.

Education loans followed real estate with the third-highest growth rate, increasing by 29.93 percent to SR8 billion.

On the personal loans side, which includes various financing options for individuals, the sector grew 9.05 percent annually to SR1.35 trillion. This expansion underscores the continued confidence in consumer lending and the Kingdom’s economic diversification strategies.

According to Standard Chartered’s Global Market Outlook for 2025, lower interest rates are expected to boost private sector growth, particularly benefiting borrowing-sensitive industries in Saudi Arabia, the UAE, and Qatar.

The report highlighted that despite a forecasted slowdown in global growth from 3.2 percent to 3.1 percent, the Gulf Cooperation Council is poised to remain a bright spot, driven by robust non-oil sector expansion and strategic investments that support economic diversification.

Saudi Arabia’s economic transformation under Vision 2030 exemplifies a coordinated effort across government institutions, financial sectors, and private enterprises to drive sustainable growth and diversification.

Sectors like education, science and technology, and utilities are gaining significant momentum, fueled by substantial funding aimed at enhancing their contribution to the nation’s GDP.

The Kingdom is making significant investments in research and development, with the government accounting for the largest share of expenditure. 

In 2025, education represented 16 percent of the national budget, employing the highest percentage of R&D workers and underscoring its pivotal role in expanding research capabilities.

Additionally, the surge in real estate activity reflects the broader infrastructure and giga-projects in progress, reinforcing the nation’s development agenda.

Recent shifts in global monetary policy, mirrored by the Saudi Central Bank’s interest rate adjustments in line with the US Federal Reserve, are set to make borrowing more affordable.

Lower interest rates will further stimulate lending, supporting key industries and accelerating the Kingdom’s ambitious transformation.

Strong capital buffers

According to data from SAMA, Saudi banks’ regulatory capital to risk-weighted assets stood at 19.2 percent in the third quarter of 2024, down slightly from 19.5 percent a year earlier.

Despite this modest decline, the ratio remains well above the Basel Committee on Banking Supervision’s minimum requirement of 8 percent, reflecting the strong capitalization and financial resilience of the Kingdom’s banking sector.

The Tier 1 capital ratio, which measures the core capital banks hold to absorb losses relative to their risk-weighted assets, reached 17.7 percent.

Tier 1 capital primarily consists of high-quality capital such as common equity and disclosed reserves. This high ratio demonstrates the soundness of the banking system in supporting economic growth while safeguarding against potential risks.

According to a study by the International Monetary Fund, Saudi banks are well-capitalized, profitable, and resilient to severe macroeconomic shocks.

Solvency stress tests and sensitivity analyses indicate their ability to withstand adverse scenarios, including significant downturns in real estate prices and sectoral loan portfolio defaults.

While banks demonstrate sufficient capacity to handle liquidity shocks, the report highlighted the need to address funding concentration risks.

The IMF noted that SAMA is refining its stress-testing methodologies and recommended enhancing data collection and monitoring large funding and credit exposures, particularly in relation to major construction and infrastructure projects.

To further strengthen credit risk modeling, SAMA should incorporate granular data on households and nonfinancial corporations, reflecting the evolving dynamics of the Kingdom’s economic transformation, according to the IMF.

SAMA data for the third quarter of 2024 indicated that non-performing loans net of provisions to capital fell to 2.1 percent, down from 2.2 percent in the same period last year.

This decline suggests an improvement in the quality of bank lending portfolios and the effectiveness of provisioning strategies.

According to the IMF, several factors help mitigate credit risk within the rapidly expanding real estate loan portfolio in Saudi Arabia.

Most mortgages are offered at fixed rates, which shield borrowers from interest rate fluctuations, and are structured with full recourse, minimizing the likelihood of strategic defaults.

Additionally, approximately 80 percent of retail borrowers are government employees, whose income is likely to remain stable during economic downturns. Furthermore, it is reported that the majority of mortgages are salary-assigned, providing further assurance of repayment.


Oil Updates — crude set for 4th week of gains as investors assess US sanctions impact

Oil Updates — crude set for 4th week of gains as investors assess US sanctions impact
Updated 17 January 2025
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Oil Updates — crude set for 4th week of gains as investors assess US sanctions impact

Oil Updates — crude set for 4th week of gains as investors assess US sanctions impact
  • Brent up 2.3 percent so far this week, WTI adds 3.3 percent
  • China GDP tops forecast, but oil refinery output declines in 2024

LONDON, Jan 17 : Oil prices edged up on Friday, heading for a fourth consecutive week of gains, as the latest US sanctions on Russian energy trade heightened expectations for oil supply disruptions.

Brent crude futures were trading up 36 cents or 0.4 percent higher at $81.65 per barrel by 2:13 p.m. Saudi time, having gained 2.4 percent so far this week.

US West Texas Intermediate crude futures were up 53 cents or 0.7 percent at $79.21 a barrel, having climbed 3.5 percent for the week.

Last Friday, the Biden administration unveiled broader sanctions targeting Russian oil producers and tankers.

“Supply concerns from US sanctions on Russian oil producers and tankers, combined with expectations of a demand recovery driven by potential US interest rate cuts, are bolstering the crude market,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.

“The anticipated increase in kerosene demand due to cold weather in the United States is another supportive factor.”

Investors are also anxiously waiting to see if more supply disruptions will emerge after Donald Trump returns to the White House next Monday.

“Mounting supply risks continue to provide broad support to oil prices,” ING analysts wrote in a research note, adding that the new Trump administration is expected to take a tough stance on Iran and Venezuela, the two main suppliers of crude oil.

Expectations for better demand lent some support to the oil market. Data showed inflation easing in the US, the world’s biggest economy, bolstering hopes of interest rate cuts.

Traders are also assessing fresh data from China, the world’s top oil importer. Its economy fulfilled the government’s ambitions for 5 percent growth last year.

But China’s oil refinery throughput in 2024 fell for the first time in more than two decades, except for the pandemic-hit year of 2022, government data also showed on Friday.

Weighing on oil prices were expectations of a halt in attacks by Yemen’s Houthi militia on ships in the Red Sea in the wake of a Gaza ceasefire deal.

The Houthis’ attacks have disrupted global shipping, forcing ships to make longer and more expensive journeys around southern Africa for more than a year.

The Israeli cabinet is set to approve a deal with militant group Hamas for a ceasefire in Gaza, Prime Minister Benjamin Netanyahu’s office said on Friday.


Chief economists expect global economic conditions to weaken in 2025

Chief economists expect global economic conditions to weaken in 2025
Updated 16 January 2025
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Chief economists expect global economic conditions to weaken in 2025

Chief economists expect global economic conditions to weaken in 2025

DUBAI: More than half of chief economists expect economic conditions to weaken in 2025, according to a World Economic Forum report released on Thursday.

“The growth outlook is at its weakest in decades and political developments both domestically and internationally highlight how contested economic policy has become,” said Aengus Collins, head of Economic Growth and Transformation at the WEF.

The outlook is more positive in the US, with 44 percent of chief economists predicting strong growth in 2025, up from 15 percent last year. However, 97 of respondents in the “Chief Economists Outlook” report said they expected public debt levels to rise, while 94 percent forecast higher inflation.

Europe, on the other hand, remains the weakest region for the third consecutive year, with 74 percent of economists expecting weak or very weak growth.

In the Middle East and North Africa region, 64 percent expect moderate growth while a quarter expect weak growth.

Collins said the global economy was under “considerable strain,” worsened by increasing pressure on integration between economies.

A total of 94 percent of economists predict further fragmentation of goods trade over the next three years, while 59 percent expect the same for services trade. More than 75 percent foresee higher barriers to labor mobility and almost two-thirds expect rising constraints on technology and data transfers.

The report suggests that political developments, supply chain challenges and security concerns are critical factors that will likely drive up costs for both businesses and consumers over the next three years.

Businesses are expected to respond by restructuring supply chains (91 percent), regionalizing operations (90 percent), focusing on core markets (79 percent) or exiting high-risk markets (76 percent).

When the economists were asked about the factors contributing to current levels of fragmentation, more than 90 percent pointed to geopolitical rivalries.

This is largely due to the “strategic rivalry” between the US and China, according to the report, along with other geopolitical disturbances, particularly in Ukraine and the Middle East.

Global fragmentation is likely to result in a more strained global landscape with chief economists expecting an increase in the risk of conflict (88 percent), a more bipolar system (79 percent) and a widening divide between the Global North and South (64 percent).

“In this environment, fostering a spirit of collaboration will require more commitment and creativity than ever,” Collins said.


Australian-Saudi Business Council hosts joint forum to help boost trade

Australian-Saudi Business Council hosts joint forum to help boost trade
Updated 16 January 2025
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Australian-Saudi Business Council hosts joint forum to help boost trade

Australian-Saudi Business Council hosts joint forum to help boost trade
  • Event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment

RIYADH: The Australian-Saudi Business Council hosted a joint forum on Thursday to discuss the enhancement of collaboration and trade between the two countries.

Led by Daniel Jamsheedi, the council’s country director, the event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment.

The event, a collaboration with the Federation of Saudi Chambers, aimed to build on the success of the first Australian Pavilion at the Future Minerals Forum in Riyadh this week, and further strengthen the economic partnership between the two countries, organizers said.

Sam Jamsheedi, the president of the council, thanked the federation for the vital role it played in the success of the forum.

“The Federation of Saudi Chambers is one of our key stakeholders and our partner within the Kingdom,” he said.

“As a business council, we appreciate the efforts put in to enable this joint business forum to succeed.”