Saudi-Russian relations reach new heights

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Updated 06 October 2017
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Saudi-Russian relations reach new heights

MOSCOW: Russian President Vladimir Putin hosted Saudi Arabia’s King Salman for talks at the Kremlin on Thursday, cementing a relationship that is pivotal for world oil prices and could decide the outcome of the conflict in Syria. 
Putin received the monarch in the gold-decorated St. Andrew Hall, one of the grandest spaces in the Kremlin, attended by soldiers in ceremonial dress and with an orchestra playing their countries’ national anthems.
“I am sure that your visit will provide a good impulse for the development of relations between our two states,” Putin told King Salman as they sat alongside each other in the Kremlin’s lavishly decorated Green Parlor. “This is the first visit by a Saudi monarch in the history of our relations and that in itself is a landmark event,” Putin said.
The king invited Putin to visit his country — an offer the Russian leader accepted — and said they planned to keep cooperating to keep world oil prices stable.
King Salman told Putin that Iran must stop meddling in the Middle East, Russia’s Interfax news agency reported.
“We emphasize that the security and stability of the Gulf region and the Middle East is an urgent necessity for achieving stability and security in Yemen,” the king said.
“This would demand that Iran give up interference with the internal affairs of the region, to give up actions destabilizing the situation in this region.”
Saudi Foreign Minister Adel Al-Jubeir told journalists that “relations between Russia and Saudi Arabia have reached a historic moment.”
King Salman and President Putin signed a slew of arms and energy deals.
Saudi Arabia signed preliminary agreements to buy Russia’s S-400 air defense systems and anti-tank guided missile systems and receive “cutting-edge technologies,” the state-owned Saudi Arabian Military Industries (SAMI) said.
These agreements are “expected to play a pivotal role in the growth and development of the military and military systems industry in Saudi Arabia,” SAMI said in a statement.
The leaders of the world’s largest energy exporters discussed an extension of an OPEC (Organization of the Petroleum Exporting Countries) agreement to cap oil output.
The two countries signed a series of multibillion-dollar investment deals including one to create a $1 billion fund to pursue energy projects.
Moscow and Riyadh worked together to secure a deal between OPEC and other oil producers to cut output until the end of March 2018, helping support prices.
Saudi Energy Minister Khalid Al-Falih said Saudi Arabia is “flexible” regarding Moscow’s suggestion to extend the pact until the end of next year.
Agreements on global oil supply have helped oil markets to stabilize, Al-Falih said.
He said Saudi Arabia wants to develop ties with Russia further, particularly in the private sector.
“I see huge opportunities for the business sector in both nations,” he said.
Russian Foreign Minister Sergei Lavrov said agreements came in the fields of “energy — not only traditional but also nuclear power — and also in cooperation in space exploration (and) agro-industry and infrastructure projects.”
Later, speaking at a news briefing, Al-Jubeir said Saudi Arabia is working closely with Russia on uniting Syria’s opposition, adding that Moscow and Riyadh agreed on the need to preserve Syria’s territorial integrity and state institutions.
Al-Jubeir also said that both Russia and Saudi Arabia believe in the principle of non-interference in other countries’ internal affairs and in the principle of territorial integrity.
For his part, Lavrov focused on the common ground, saying the two leaders had agreed on the importance of fighting terrorism, and finding peaceful solutions to conflicts in the Middle East.
Lavrov said the meeting between the Saudi monarch and Putin saw a “particular focus on Syria, Iraq, Libya and Yemen.”
Separately, the Russian-Saudi Investment Forum concluded on Thursday in Moscow with announcements of joint business and investment projects.
Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA), said: “We’re working on improving the level of FDI (foreign direct investment) to the Kingdom by attracting more investments. We’re working to give the private sector a bigger share in the market.”
The energy minister said bilateral cooperation in the last two years has benefited the oil market by stabilizing prices.
“It has breathed back life into OPEC, which found itself… unable to swing its production as supply was persistently high in 2014 and global inventories were steadily rising ahead of demand,” Al-Falih added.
 


Major projects, investments worth over $685bn unveiled on Saudi National Day

A photo taken on July 5, 2018, shows Bader al-Ajmi, 38,(L) owner of "One Way Burger" serving customers from his truck at a main street in the capital Riyadh. (AFP)
Updated 22 September 2018
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Major projects, investments worth over $685bn unveiled on Saudi National Day

  • The private sector’s contribution to the GDP at constant prices doubled to around SR1236.6 million in 2017

JEDDAH: A major economic boost in the form of 10 major projects and investments exceeding SR685 billion ($183 billion) were unveiled as celebrations of the 88th Saudi National Day got under way.
The Council of Saudi Chambers released a report focusing on great economic achievements in 2017.
These projects reflect the Kingdom’s vision under the wise leadership of King Salman and that of Crown Prince Mohammed bin Salman to provide a brighter future through diversifying sources of national income, tackling environmental challenges and increasing investment and prosperity.
The report summarized the most important events and economic developments in the Kingdom over the past year. These include the lifting of the ban on women driving in June, and the establishment of the General Authority for Cyber Security, in addition to the numerous royal decrees providing financial support to Saudis.
It also noted the important decisions related to the Saudi business sector. These include the launch of a private sector incentive program with a value of SR72 billion, the privatization of 10 government sectors and the establishment of the General Authority for Real Estate. The private sector is still showing a strong performance as an efficient partner in the inclusive development process and in the achievement of the Kingdom’s 2030 Vision, the report noted, as it contributes 39 percent to the Saudi gross domestic product (GDP).
The private sector’s contribution to the GDP at constant prices doubled to around SR1236.6 million in 2017. There has been increased contribution to GDP from non-oil private sector streams.
The private sector also witnessed an increase in the number of workers, in its capital, in the number of shares on the Saudi market, in the cumulative number of establishments operating in the Kingdom, and in non-oil exports.
Continued growth of the private sector was attributed by the report to the Saudi government’s support. This support comes through initiatives such as the removal of obstacles to financial development, improvements to the working environment and policies adopted to boost investment.
It also reviewed the private sector’s efforts to support diversification of the economy and lower unemployment rates.
The importance of the measures taken to prioritize the employment of qualified Saudi workers over the employment of expatriates in the private sector were stressed, as well as the sector’s role in providing education and health services.