How Saudi Arabia has built new alliances

The increasing eastward orientation also reflects a desire by the Kingdom to reduce a reliance on the US as its single strategic partner. (File/AFP)
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Updated 21 June 2020
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How Saudi Arabia has built new alliances

  • The crown prince’s visits to Asia and Russia have solidified strategic economic relationships
  • Saudi Arabia, located right at the geographic center of this great tilt in economic power, has been increasingly looking towards the East

The world’s economic center of gravity has been moving inexorably eastwards for the past 50 years as the great trading powers of Asia – China, India, Japan, South Korea and a handful of others – have transformed themselves into modern consumer economies.

Asia is on the verge of overtaking the combined economic power of North America and Europe in terms of gross domestic product. Measured by accumulated wealth, Asia is already richer than either.

Saudi Arabia, located right at the geographic center of this great tilt in economic power, has been increasingly looking towards the East. That process has accelerated in the past three years, with a number of trading and investment relationships struck between the Kingdom and its new partners in what are still bizarrely referred to by some economists as “emerging markets.”

For Saudi Arabia, these countries have already emerged as a big focus for future economic and strategic direction. Even the global crisis of the coronavirus pandemic seems unlikely to slow the long-term process. 

The most important relationship is with China, the world’s biggest manufacturer and exporter, apparently destined to overtake the US as the world’s biggest economy in absolute terms sometime this decade.

However, since 2017 Saudi Arabia has also forged new commercial relations with India, a long-time trading partner of the Middle East, as well as enhancing older alliances with Japan and South Korea.

There has also been a blossoming of the partnership with Russia, based mainly on common interests in the energy sector, but also reflecting shared values across a range of investment goals in industry and infrastructure.

This increasing eastward orientation also reflects a desire by the Kingdom to reduce a reliance on the US as its single strategic partner.

“Maybe Saudi Arabia has realized that it risks being over-reliant on one big international partner in the USA. It is logical for the Kingdom to want to diversify its great power relationships.”

Frank Kane

Jonathan Fulton, assistant professor of political science at Zayed University in Abu Dhabi, told Arab News: “Maybe Saudi Arabia has realized that it risks being over-reliant on one big international partner in the USA. It is logical for the Kingdom to want to diversify its great power relationships.”

Surprisingly, given its historic role as a great power and trading base, China is the relative newcomer among the Kingdom’s eastern friends. Next month marks the 30th anniversary of the establishment of diplomatic relations between Riyadh and Beijing. 

The past three years have marked a rapid increase in Saudi-China links. King Salman visited the country as part of a six-country Asian tour early in 2017, setting the seal on a “comprehensive strategic partnership” between the two countries when he met Chinese President Xi Jinping.

A joint high-level committee was established to guide future economic development strategy. 

That was followed by a later visit by Crown Prince Mohammed Bin Salman, adding greater depth to the relationship and further aligning the two countries’ main economic development plans – the Belt and Road Initiative by which China seeks to play a leading role in regional development, and the Vision 2030 strategy aimed at diversifying Saudi Arabia away from oil dependency.

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“Saudi Arabia is willing to work with China to enhance synergy of development strategies, deepen cooperation in jointly developing the Belt and Road and bring benefits to both countries and peoples,” the crown prince said on his visit in February 2019.

Energy relations are at the heart of the new partnership. China is the biggest consumer of oil in the world, and Saudi Aramco is its biggest single supplier of crude. But the trading relationship goes a good deal farther.

“China is the economic base of the future in energy, and China’s appetite is the biggest in Asia. But it is not just crude oil. Increasingly, Saudi Aramco is a partner with China in downstream projects, like refining, petrochemicals and energy infrastructure,” Fulton said.

One of the first fruits was the Huajin Aramco Petrochemical Company, a joint venture with big Chinese partners to develop a $10 billion refining and petrochemicals complex. Aramco’s chief executive, Amin Nasser, said it was key to his strategy to move beyond a simple “buyer-seller relationship” in crude oil.

Similar commercial imperatives applied to the blossoming relationship with Japan, augmented by close personal relations between the Saudi royal family and the Japanese imperial dynasty. A big Saudi delegation attended the enthronement of the new Emperor Naruhito last year, coinciding with the launch online of Arab News Japan.

Energy and petrochemicals are again at the heart of the partnership. Japan is reliant on oil imports, and some 40 percent of its crude supplies are provided by Saudi Aramco, which has a long-term presence in Japan. SABIC, the big industrial conglomerate now part of Aramco, also has significant operations in the Tokyo area.

As Saudi Arabia extends its horizons beyond more traditional western partners, perhaps the best example of how common interests in the energy field can extend into other areas has come with Russia.

King Salman and the crown prince made the first official Saudi visit to Russia (or the former Soviet Union) in 2017, reflecting perhaps the most significant new alliance in the global energy sector for many decades.

The growth of American shale oil since the end of the global financial crisis gave Saudi Arabia and Russia – two of the top three global oil powers along with the US – a common interest in energy, which has translated into the Opec+ arrangement, an alliance of 23 of the biggest oil producers, to help regulate oil markets.

Just recently, Opec+ signed a historic deal to cut nearly 10 percent of the world’s crude output. which had been made surplus by the collapse in demand following global pandemic lockdowns. The deal is credited with having pulled global oil markets back from the chaos they suffered a couple of months ago.

An important player in the Opec+ negotiations was Kirill Dmitriev, chief executive of the Russian Direct Investment Fund (RDIF), an institution aimed at attracting inward investment into the country as well as entering into foreign investment partnerships. Saudi Arabia has been a key partner with RDIF in a range of investments in both countries, in areas such as transport, infrastructure and logistics.

To complete the circle of Saudi Arabia’s eastward shift, China has been brought into the Saudi-Russia partnership in a multi-billion dollar investment fund.

  • Frank Kane is an award-winning journalist based in Dubai. Twitter: @frankkanedubai


Embracing the skies: Riyadh aviation show inspires next generation of pilots

Updated 23 November 2024
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Embracing the skies: Riyadh aviation show inspires next generation of pilots

  • Saudi Hot Air Balloon Federation’s first female pilot wants more women to sign up

RIYADH: The Saudi Hot Air Balloon Federation was among the top organizations at an aviation show that captivated the Kingdom’s capital with stunning aerobatic displays and an impressive lineup of aircraft.

Sand and Fun 2024, which concluded on Saturday at Thumamah Airport, showcased the Kingdom’s wide-ranging aviation sector.

The federation presented a collection of colorful hot air balloons to demonstrate the experience to adults and younger generations as part of the efforts to raise awareness about hot air ballooning and to inspire a new generation of pilots.

Sand and Fun 2024, which concluded on Saturday at Thumamah Airport, showcased the Kingdom’s wide-ranging aviation sector. (AN photo)

Among the pilots was Afrah Al-Harbi, the first female Saudi hot air balloon pilot to graduate from the federation.  

Al-Harbi is on a mission to cultivate a community of female pilots, encouraging women to explore the exhilarating world of hot air ballooning. Her story is an inspiring testament to the opportunities available to women in aviation and the importance of representation in this field.

“At the beginning, I was studying at the university, but the Saudi Hot Air Balloon Federation launched a training program to train balloon pilots,” she told Arab News. “Thank God, I registered, and I was accepted. After that, I started my studies to become a balloon captain. The federation covered the entire mission, which is considered a grant from the federation. I obtained the European EASA license, and then I also obtained the Saudi license from the General Authority of Civil Aviation.”

The five-day event at Thumamah Airport gave visitors the opportunity to meet pilots, learn about the intricacies of ballooning. (Supplied/Aviation Club)

The federation offers structured programs to equip aspiring pilots with both theoretical knowledge and practical skills.  

Hot air balloons first appeared in the Kingdom in AlUla as part of the Winter at Tantora Festival in 2018. This event not only showcased the beauty of ballooning, but also laid the groundwork for the establishment of the federation.

The hot air balloon sport is known and famous worldwide. We need a type of it that people can take part in within the Kingdom, especially for global competitions.

Abdulrahman Al-Wahaibi, Saudi hot air balloon pilot

The organization plays a crucial role in promoting balloon culture and raising awareness of the sport.

The five-day event at Thumamah Airport gave visitors the opportunity to meet pilots, learn about the intricacies of ballooning. (Supplied/Aviation Club)

“We want to show people that hot air ballooning is not only fun, but also safe,” Al-Harbi said, emphasizing the importance of public perception in the growth of the sport.

Her career has included a visit to the Netherlands, where she underwent extensive training.

“My studies in the Netherlands were quite lengthy, but it was an incredibly enriching experience,” she said. “The training included both theoretical subjects and practical sessions to help us obtain our licenses.”

Abdulrahman Al-Wahaibi, Saudi hot air balloon pilot. (AN photo)

The rigorous training not only prepared Al-Harbi for the technical aspects of flying, but also instilled a deep appreciation of the art of ballooning.

Abdulrahman Al-Wahaibi also spoke about his journey in the world of hot air ballooning, which began was he was a student in Australia.

“I looked at a balloon for the first time in my life and was fascinated by its shape,” he told Arab News. “I had to try the experience, so I did, as a passenger. The experience was beautiful, and I thought we needed this in Saudi Arabia. At that time, Saudi Arabia did not have hot air balloons.”

Among the pilots was Afrah Al-Harbi, the first female Saudi hot air balloon pilot to graduate from the federation. (AN photo)

Al-Wahaibi dedicated himself to bringing the ballooning experience back to Saudi Arabia, sharing it with family, friends, and the community.

This included studying aerospace engineering and breaking records in Australia for the fastest training period. He expressed pride in being part of the first Arab country to take part in international hot air balloon competitions, highlighting the significant strides made by the Saudi Hot Air Balloon Federation.

“The hot air balloon sport is known and famous worldwide,” Al-Wahaibi said. “We need a type of it that people can take part in within the Kingdom, especially for global competitions.”

Sand and Fun 2024, which concluded on Saturday at Thumamah Airport, showcased the Kingdom’s wide-ranging aviation sector. (AN photo)

His vision aligns with the federation’s mission to broaden participation and elevate the sport on an international level.

Based in AlUla, the Saudi Hot Air Balloon Federation plans festivals designed to integrate the natural environment and the grandeur of the historic landmarks of ancient civilizations such as Hegra.

The five-day event at Thumamah Airport gave visitors the opportunity to meet pilots, learn about the intricacies of ballooning, and even experience the thrill of a balloon ride.

With inspiring pilots such as Al-Harbi and Al-Wahaibi at the helm, the outlook for hot air ballooning in the years to come looks as bright as the skies adorned with colorful balloons.

 

 


Saudi ambassador presents credentials to Cypriot president

President of Cyprus Nikos Christodoulides receives Fawaz bin Abdulrahman Al-Shabili in Nicosia. (Supplied)
Updated 23 November 2024
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Saudi ambassador presents credentials to Cypriot president

  • Al-Shabili conveyed the greetings of King Salman and Crown Prince Mohammed bin Salman to the president

NICOSIA: Saudi Ambassador to Cyprus Fawaz bin Abdulrahman Al-Shabili presented his credentials to the President of Cyprus Nikos Christodoulides at a ceremony held at the Presidential Palace in the capital Nicosia, the Saudi Press Agency reported on Saturday.

Al-Shabili conveyed the greetings of King Salman and Crown Prince Mohammed bin Salman to the president, as well as their wishes for steady progress and prosperity for Cyprus.

Meanwhile, Saudi Vice Minister of Commerce and CEO of the National Competitiveness Center Eman bint Habbas Al-Mutairi led a Saudi delegation of government officials and business leaders to the UK to bolster bilateral economic relations.

 


Saudi Arabia to host Qur’an contest in Nepal

More than 400 contestants from various Nepalese states and governorates will participate in the preliminary qualifiers. (SPA)
Updated 23 November 2024
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Saudi Arabia to host Qur’an contest in Nepal

  • The competition is part of Saudi Arabia’s endeavor to disseminate the teachings of the Qur’an among young Muslims around the world

RIYADH: The Ministry of Islamic Affairs, Dawah and Guidance will hold the second Holy Qur’an Memorization Competition in Kathmandu, the capital of Nepal, on Dec. 21-22.

More than 400 contestants from various Nepalese states and governorates will participate in the preliminary qualifiers, the Saudi Press Agency reported on Saturday.

The competition is part of Saudi Arabia’s endeavor to disseminate the teachings of the Qur’an among young Muslims around the world.

The closing ceremony, which will include the presentation of awards to the winners, will be held on Dec. 23 and will be attended by officials from various centers and schools across Nepal.

 


Busy bees: Asir’s local markets abuzz over Sidr honey season

Updated 23 November 2024
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Busy bees: Asir’s local markets abuzz over Sidr honey season

  • Unique taste, aroma make it popular locally, internationally

RIYADH: The Asir region is currently in the midst of the Sidr honey season, with local markets flooded with high-quality honey produced from the nectar of Sidr trees.

The recent heavy rainfall in the region has led to a prolific flowering of Sidr trees, providing ideal conditions for bees to produce abundant and flavorful honey, the Saudi Press Agency reported.

Sidr honey, which is renowned for its health benefits, is particularly prized for its antioxidant properties and ability to strengthen the immune system.

The unique taste and aroma of the honey have made it a sought-after commodity, both locally and internationally, the SPA reported.

Beekeepers in Tihama Asir have been busy harvesting the golden nectar, with prices ranging from SR350 to SR500 ($93-133) per kg.

The region’s diverse ecosystem, characterized by its fertile valleys and abundant flora, provides an optimal environment for beekeeping.

The Ministry of Environment, Water and Agriculture is actively supporting the development of the beekeeping industry. Initiatives such as the beekeeping and honey production development initiative improve practices, protect bee populations, and enhance the quality of honey.

By promoting sustainable beekeeping and preserving the natural habitats of bees, the Kingdom seeks to strengthen its position as a leading producer of high-quality honey while contributing to the global market.


Saudi Reef Forum to focus on rural sustainability

Updated 23 November 2024
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Saudi Reef Forum to focus on rural sustainability

  • Al-Ahsa event to promote communities’ role in economic growth

RIYADH: The Ministry of Environment, Water and Agriculture will host the 1st International Forum for Saudi Reef in Al-Ahsa from Dec. 16-18, aiming to strengthen rural communities, and promote their role in driving sustainable development.

Maha Aldhahi, head of the forum’s executive committee, said: “The forum is pivotal in advancing rural development, aligning with the UN Sustainable Development Goals and Saudi Vision 2030. It will support rural communities, while contributing to global efforts and research on sustainable agriculture.”

Aldhahi said that the forum will unite regional and international experts to address the challenge of rural-to-urban migration, a widespread issue. To counter this, the forum will propose practical solutions to ensure rural areas remain economically viable, vibrant, and sustainable.

Additionally, it will explore innovations in agriculture and rural development, fostering economic growth and social cohesion through job creation and investment promotion, she added.

Aldhahi said that the forum builds on the Saudi Reef Program, recognized by the UN Food and Agriculture Organization as the world’s largest development initiative of its kind.

The program has supported over 77,000 agricultural projects, achieved a self-sufficiency rate exceeding 65 percent in vital sectors, and provided upskilling and career opportunities for rural communities.

Ghassan Bakri, secretary-general of the Saudi Reef Program, said: “The program is a model of sustainable growth, addressing food security and job creation while preserving cultural heritage. By hosting this forum, we aim to attract global partnerships and exchange cutting-edge solutions for rural empowerment.”

Bakri added that the forum will feature dynamic discussions on key topics, including sustainable agricultural practices, rural entrepreneurship, and the role of modern technology in agriculture.

The three-day event will also include an exhibition showcasing unique rural practices, handicrafts, and the work of local farmers, artisans, and entrepreneurs. It will highlight how traditional techniques integrate with modern innovations to create sustainable livelihoods.