Category: BUSINESS

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, also Chairman of the National Development Fund (NDF), has approved the renewal of the membership of Yousef bin Abdullah Al-Benyan as Chairman of the Board of Directors of the Small and Medium Enterprise Bank (SME Bank) for a three-year term, starting from 3/6/1447 AH.

According to SPA, Al-Benyan expressed his gratitude and appreciation to the Crown Prince for this generous trust, praising His Highness’s continuous support for the SME sector, which contributes to enhancing its stability and strengthening its role as one of the key pillars of economic development and a vital enabler in achieving the goals of Saudi Vision 2030.

Al-Benyan noted that the great attention the wise leadership has devoted to the SME sector has been the main driver behind its significant expansion and the rise in financial facilities provided to it over the past years.

He affirmed the board’s commitment to fostering the growth of small and medium enterprises, enhancing their contribution to GDP, promoting financial sustainability, and supporting overall economic growth.

The SME Bank was established under a resolution of the Cabinet. The bank operates under the umbrella of the NDF, aiming to expand the total lending portfolio within the financial sector, bridge the financing gap, strengthen the contribution of financial institutions in offering innovative financing solutions, and promote financial stability in this vital and dynamic sector.

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Saudi Arabia is moving swiftly to cement its position as a global manufacturing and production hub, capitalizing on its sweeping economic transformation.

The “New Economic Corridor” stands out as a pivotal initiative supporting this drive, built on four integrated national strategies: localization, industry, mining, and exports.

Together, these strategies aim to turn the Kingdom into a regional and global platform for production and exports, one that attracts high-value investments and fuels economic transformation under Vision 2030.

Speaking to Asharq Al-Awsat, Minister of Industry and Mineral Resources Bandar Al-Khorayef said Saudi Arabia’s alignment of these four strategies positions it to become both a regional and global manufacturing center.

He noted that the Kingdom’s strong natural and human resources, including abundant oil, gas, petrochemicals, and minerals, complement its strategic geographic location, which grants access to key and emerging markets across the region, Africa, Central Asia, and other parts of Asia.

Boosting Petrochemical Conversion

Al-Khorayef revealed that efforts are underway to channel part of Saudi Arabia’s petrochemical exports into local downstream industries.

A successful pilot project carried out in cooperation with the Ministry of Energy led to a domestic demand surge of more than 300,000 tons for one product, with more items expected to be added in the future. This initiative, he said, will bolster downstream industries and strengthen their contribution to the national economy.

Expanding Pharmaceutical and High-Tech Manufacturing

On pharmaceuticals, the minister pointed to a clear plan that has significantly increased the number of local factories. The Kingdom, he said, has succeeded in localizing the production of sensitive medical products such as insulin and is currently advancing projects in vaccines and biologics.

Al-Khorayef also highlighted Saudi Arabia’s growing focus on advanced technology industries, including electronics and microchips. He cited partnerships with private-sector firms such as Alat and cooperation with the Ministry of Communications to promote information technology within this advanced industrial push.

Attracting Future Technologies

The minister emphasized the Kingdom’s strong infrastructure, noting that its ports, roads, and railways reflect political and financial stability and enhance competitiveness in the energy sector, a critical component of industrial zones.

“This combination of resources, location, and infrastructure makes Saudi Arabia a key partner and an essential hub in global industries,” he said, adding that the ministry’s focus is on attracting technologies of the future rather than those of the past.

Over the past six years, Al-Khorayef said, the government has introduced a range of effective policies and incentives – most notably the promotion of local content, which has become the biggest driver of investment. It gives investors priority in the domestic market, including in government procurement and major corporate contracts.

He added that the state’s investment in industrial city infrastructure has been a decisive factor, with more than 25 million square meters developed and advanced industrial cities and ready-built factories established.

These conditions, he explained, make investment easier, thanks to industrial financing from the Saudi Industrial Development Fund, export financing from the Saudi EXIM Bank, and incentives under the “Made in Saudi” program led by the Saudi Export Development Authority.

These policies, he said, are stable and long-term, while temporary incentives are available for energy projects and standardized incentives for localization, subject to the approval of a ministerial committee, measures that enhance the Kingdom’s ability to attract quality investments.

Expanding Global Partnerships

Al-Khorayef said his recent tours to several world capitals aim to encourage the Saudi private sector to forge international partnerships and promote the Kingdom as a leading global investment destination.

He noted that Saudi Arabia recently took part in Germany’s K Show 2025, where German companies expressed keen interest in investing in the Kingdom.

The minister also said Saudi Arabia has become a global platform for discussing mining issues among governments and companies, stressing that the sector needs more firms, investment, and scientific research. He said current efforts focus on strengthening the technical and scientific aspects of mining to enhance its efficiency.

Mining, he added, is the third pillar of Saudi industry after oil, gas, and petrochemicals, with mineral wealth estimated at around 2.5 trillion riyals ($667 billion).

He disclosed that efforts are underway to extract lithium from water used in oil and gas operations as well as from desalinated and seawater, expressing optimism about achieving positive results in the near future.

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Egypt is developing plans for the resumption of trade through the Suez Canal, encouraged by a ceasefire agreement between Israel and Hamas and hopes that the Houthi attacks on the Red Sea cease completely.

Suez Canal revenues dropped 45.5% to $3.6 billion during fiscal year 2024/2025, compared to $6.6 billion a year earlier, the Central Bank of Egypt (CBE) said in its balance of payments report.

The decline was attributed to a 55.1% drop in net tonnage to 482.8 million tons and a 38.5% decrease in the number of transiting ships to around 12,400 vessels.

On Saturday, Egyptian President Abdel Fattah El-Sisi affirmed the country’s commitment to creating a favorable investment climate and overcoming any challenges shipping and logistics companies may face in Egypt.

During a meeting with the Chairman of the Board of Directors of the A.P. Møller-Mærsk Group, Robert Mærsk Uggla, he noted the state’s aspiration to increase the group’s investments and presence in the Egyptian market.

The meeting was held in the presence of Prime Minister Moustafa Madbouly, Chairman of the Suez Canal Authority Admiral Ossama Rabiee and Chief Group Representative A.P. Møller- Mærsk in the Middle East & North Africa Hany El Nady.

El-Sisi stressed the deep strategic partnership between the Egyptian state, represented by the Suez Canal Authority, and the Mærsk Group and lauded the Group’s efforts in Egypt with regard to studying the production and supply of ships with green fuel, which enhances Egypt’s position as a regional hub for the Group’s operations, both in the field of container trade and green fuel production.

The President also expressed Egypt’s appreciation for the Group’s efforts in the ongoing expansion of the Suez Canal Container Terminal in the East Port Said Port, according to Spokesman for the Presidency, Mohamed El-Shennawy.

For his part, the Group’s chairman thanked El-Sisi for the vital role played by Egypt, under his leadership, in reaching an agreement to stop the war in Gaza and hosting the Sharm El-Sheikh peace summit.

Mærsk Uggla stressed that these efforts will have positive repercussions for regional stability and shipping traffic in the Red Sea.

He also emphasized the Group’s commitment to continuing cooperation with the Suez Canal Authority, as it is the most important global shipping lifeline for supply chains and provides a more efficient and less costly route compared to alternative routes.

He then praised the advanced services offered by the canal to transiting vessels.

“Mærsk looked forward to supporting Egypt’s efforts to reconstruct the Gaza Strip, noting that the East Port Said Port can play a pivotal role in this regard,” Mærsk Uggla said.

He also highlighted the continued support the Group’s operations in Egypt receive, stressing that the scope of the Group’s investments and projects in Egypt reflects its firm confidence in the Egyptian economic environment and its stability.

The Group’s chairman praised the Suez Canal Authority’s significant development in terms of infrastructure and technical capabilities, which qualifies Egypt to become a leading regional hub for supplying ships with green fuel.

For his part, Rabiee expressed his appreciation for the fruitful cooperation between the SCA and Mærsk and stressed that the Authority looked forward to expanding the partnership with Mærsk by establishing more joint projects that contribute to supporting the national economy and enhancing Egypt’s position as a global hub for maritime and logistics services.

If the ceasefire between Israel and Hamas holds, shipping traffic in the Suez Canal is expected to return early next year.

The Suez Canal, the shortest route connecting Europe and Asia, saves approximately about 30 days of travel time by allowing ships to avoid the longer journey around Africa’s Cape of Good Hope, which can take 70 days.

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