Al-Monitor

Latest for Al-Monitor: #SaudiArabia has approved its 2025 state budget, projecting $315.7 billion in revenue and $342.1 billion in spending, with a $26.4 billion deficit. Notably, the defense sector secured the largest allocation of $72.5 billion, a 5% increase from 2024. This announcement underscores the kingdom’s progress in localizing defense production: ➡️ Localization rate of military spending grew from 4% in 2018 to 19.35% by the end of 2023. ➡️ As of Q3 2024, 296 entities have been licensed in the military industries sector, reflecting robust growth. While this progress aligns with #Vision2030—which seeks to cut reliance on arms imports by 50%—discrepancies in localization data highlight challenges. For example: - #GAMI reported a 19.35% localization rate, yet other sources, like SAMI’s CEO, suggested closer to 14%, and Vision 2030’s 2023 Annual Report estimated just 10.4%. - Questions remain about how localized production is measured, with limited transparency in joint ventures like SAMI-MBDA’s missile systems production. Saudi Arabia’s dual approach—acquiring advanced military equipment while expanding its domestic manufacturing base—represents a strategic shift toward self-reliance. Still, clarity and consistency in reporting will be key to sustaining confidence in these numbers. For the complete analysis, check out my article on Al-Monitor: https://lnkd.in/dS_tHCfM A special thanks to Albert Vidal Ribé and Elisabeth Gosselin-Malo for their insightful comments. #SaudiArabia #DefenseIndustry #Vision2030 #Localization #Military

My latest for @AlMonitor "That the Iranian-Afghan transport network connects onward to China is an interesting angle in the growing cooperation by the two sides." With comments by Roberto Neccia, Torek Farhadi and Zeeshan Shah https://lnkd.in/emRHw5iH #iran #afghanistan #china

My piece on how the new Donald Trump adminstation is likely to impact the shipping industry, which is already grappling with a surge in prices caused by the attacks on commercial ships in the southern Red Sea and subsequent the re-routing of thousands of vessels around South Africa's Cape of Good Hope.

As UAE stock markets hit $1 trillion in market capitalization for the first time last week, an increasing number of Chinese entities are choosing to list some of their debt on Gulf capital markets. (via Sebastian Castelier)

This week in Al-Monitor Gulf Briefing: "Such issuance would help create a local credit market which could attract local capital that otherwise would be invested in London, New York, etc.," said Fabio Scacciavillani. "Gulf capital markets allow Chinese entities a direct and cheaper route to tap Gulf investors, without having to go through US or European markets," said Hasnain Malik.

The US introduced Ukraine war-related sanctions last week against 118 individuals and entities tied to Russia’s financial sector, including Gazprombank, the country’s largest lender. But, Turkey also uses Gazprombank to pay for its natural gas imports, which account for 42% of the country's fuel. Without an exemption from the US, Ankara is warning it will create very big problems. https://lnkd.in/eqzBXn8q

🇹🇷🇶🇦🇵🇸 If #Hamas leaders do depart #Qatar, will #Türkiye become the #Palestine ian group's next home? Check out my latest article for Al-Monitor. https://lnkd.in/dBk7WT_m . Many thanks to Ali Bakir, Fatih Ceylan, Selim Sezer, Levent Kemal, and Soner Cagaptay for their comments.

UK-headquartered bank Barclays will pay a fine of over $50 million to British regulators for failing to disclose information of its rescue by Qatar during the 2008 financial crisis publicly or to other investors. Qatar’s sovereign wealth fund, the QIA, owns 2.9% of Barclays. (via Jack Dutton)

My latest for Al-Monitor "As economic relations between Riyadh and Ankara continue to warm, Turkish construction companies are finding Saudi Arabia full of opportunities." https://lnkd.in/enD3Ev-d #saudivision2030 #saudiarabia #türkiye #economy

In 2017, Donald Trump’s first overseas trip as president started in Saudi Arabia and produced a $110 billion arms sale with the kingdom. His second term could focus similarly on ties in the Gulf. Samuel Wendel highlights the US-Gulf business deals and ties to watch as Trump returns to the White House.