Saudi Arabia tops global trust rankings with 87% confidence in government

RIYADH: Expediting customs procedures and simplifying trade transactions were some of the proposals discussed by the Saudi-Jordanian Business Council in order to increase commerce between the two nations.

The body also discussed enhancing cooperation in logistics infrastructure, renewable energy, and food security, the Saudi Press Agency reported. 

This aligns with the ongoing trade relations between the two countries, as transactions between the Kingdom and Jordan increased from 2.89 billion Jordanian dinars ($4.07 billion) in 2018 to 3.74 billion dinars in the first 11 months of 2024, according to the Amman Chamber of Commerce.

During the session, creating a joint platform under the Saudi-Jordanian Business Council as a strategic step to further propel economic cooperation was also discussed. 

This outlet would aim to foster trade and investment ties, facilitate joint investment prospects, as well as connect business leaders to explore new markets across various sectors. 

The council further explained that the joint platform should include organizing trade events and exhibitions that unite companies and business leaders from both countries to exchange expertise and showcase trade opportunities. 

It could also offer training programs and workshops to support human capital development in various fields including technology, innovation, industry, and services. 

The committee suggested that the platform could offer assistance for collaborative projects that benefit both countries, encompassing traditional industries such as manufacturing and emerging sectors like renewable energy and information technology.

It also recommended collaborating on creating policies to promote investment and trade, streamlining customs procedures, and supporting small and medium enterprises through financing, guidance, and marketing opportunities.

The panel further discussed plans to conduct an online survey to gather data on the challenges faced by each sector, analyze the results, and submit findings to the relevant authorities for resolution.

The delegation will reactivate its subcommittees, assigning each to monitor a specific economic sector, including services, logistics, food, and agriculture, as well as education and information technology.
 
The Saudi-Jordanian Joint Committee for Land Transport convened in Amman on the same day to explore ways to elevate land transportation for passengers and goods as well as to streamline crossing procedures. 

The committee examined the agenda, focusing on matters concerning trucks, buses, and vehicles crossing between the two nations. 

Discussions focused on streamlining procedures, improving trade and land transport, as well as reinforcing the joint economy while solidifying the strategic Saudi-Jordanian partnership.

LONDON: The global debt-to-GDP ratio rose for the first time since 2020 last year, as the world’s debt stock hit a new year-end record of $318 trillion and economic growth slowed, an Institute of International Finance report showed on Tuesday.
The $7 trillion rise in global debt was less than half of the 2023 increase, when expectations of Federal Reserve interest rate cuts sparked a borrowing surge. The IIF warned, however, that so-called bond vigilantes could punish governments if rising fiscal deficits persist.
“The increasing scrutiny of fiscal balances — particularly in countries with highly polarized political landscapes — has been a defining feature of recent years,” the IIF said.
Market reactions to fiscal policies in the United Kingdom brought down the short-lived tenure of Prime Minister Liz Truss in 2022, while similar pressures in France ousted Prime Minister Michel Barnier last year.
Debt-to-GDP — an indicator of the ability to repay debt — approached 328 percent, a 1.5 percentage point increase, as government debt levels of $95 trillion clashed with slowing inflation and economic growth.
The IIF said it expects debt growth to slow this year, amid unprecedented global economic policy uncertainty and still-elevated borrowing costs.
It warned, though, that despite high borrowing costs and economic policy uncertainty, its forecast of a $5 trillion increase in government debt this year could rise due to calls for fiscal stimulus and larger military spending in Europe.
“I think we will likely see much more volatility in sovereign debt markets, especially in those countries where we see high political polarization,” said Emre Tiftik, the IIF’s director of sustainability research.
ROLLOVER CHALLENGE
Emerging markets, driven by China, India, Saudi Arabia and Turkiye, accounted for roughly 65 percent of global debt growth last year.
This borrowing, along with a record $8.2 trillion in debt which emerging markets need to roll over this year — 10 percent of it in foreign currency — could strain countries’ abilities to weather looming political and economic storms.
“Heightened trade tensions and the Trump administration’s decision to freeze US foreign aid, including cuts to USAID, could trigger significant liquidity challenges and curb the ability to roll over and access to FX debt,” the report said.
“This underscores the increasing importance of domestic revenue mobilization to build resilience against external shocks.”
Tiftik added that the high volatility underscored the need to increase multilateral development banks’ abilities to mobilize private capital.
Several developing economies, such as Kenya and Romania, have struggled to boost domestic revenue due to public anger over tax hikes and coming elections, respectively.