Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

RIYADH: Saudi Arabia’s giga and megaprojects are drawing fresh interest from Australian businesses, with over 90 companies exploring new partnership opportunities to expand their footprint in the Kingdom’s booming construction sector. 

At a business-to-business meeting hosted by the Australian Saudi Business Council at the Federation of Saudi Chambers, discussions focused on how Australian firms could leverage their expertise in infrastructure, sustainable construction, and smart city technologies to support Saudi Arabia’s Vision 2030 transformation.  

The event featured a delegation from the New South Wales Government, which is also participating in the Big 5 construction exhibition. 

This comes as Saudi-Australian trade relations continue on an upward trajectory, with trade volume reaching approximately $1.92 billion in 2023. Australia exported $1.07 billion worth of goods to Saudi Arabia and imported $847 million, according to the Observatory of Economic Complexity, an online data visualization and distribution platform. 

“Construction remains a major sector of opportunity, with over 11,000 Australians currently working in Saudi Arabia, primarily on mega and giga-projects. There is immense potential for Australian businesses to expand their presence in the Kingdom,” said Sam Jamsheedi, chairman of the Australian Saudi Business Council. 

This aligns with the memorandum of understanding signed in May between the Australian-Saudi Business Council and Forum and the Export Council of Australia to enhance cooperation across multiple sectors.  

His Saudi counterpart, Talal Al-Sheer, underscored the importance of deepening economic ties between the two nations. “The Saudi-Australian relationship is a key driver of growth. Over the past three years, the Official Business Council has facilitated market entry into Saudi Arabia, fostering joint ventures with local firms,” he said.  

NSW Trade Commissioner Moin Anwar emphasized the significance of direct engagement in strengthening economic cooperation. “Meetings like these are crucial for expanding our bilateral relationship across various sectors. Construction and infrastructure are among the primary pillars where Australia can contribute significantly to Saudi Arabia’s development,” he said. 

Several Australian firms showcased their capabilities in advanced building solutions, attracting strong interest from Saudi stakeholders eager to incorporate global expertise into the Kingdom’s large-scale developments.  

The networking sessions also provided businesses with opportunities to exchange knowledge and discuss synergies in line with Saudi Arabia’s ambitious economic diversification goals. 

The meeting served as a strategic platform for both nations to reinforce trade and investment ties, positioning Australian businesses as key players in Saudi Arabia’s multibillion-dollar infrastructure drive.

RIYADH: Muscat and Palestine’s stock exchanges have signed a cooperation agreement to enhance financial integration, facilitate cross-border investments, and bolster market access. 

The memorandum of cooperation between the Muscat Stock Exchange and the Palestine Exchange outlines a framework for information sharing, dual listings, and broker participation, Oman News Agency reported. 

The initiative is expected to strengthen both markets by improving operational efficiency and aligning financial disclosure practices with international standards. 

While Oman-Palestine trade remains relatively small, the agreement reflects broader regional trends. As of 2023, Oman’s exports to Palestine totaled approximately $10.59 million, while imports stood at $145,770, according to the UN COMTRADE database. 

The pact comes amid a record year for Arab stock markets, with Gulf Cooperation Council exchanges witnessing the highest initial public offering volumes on record in 2024 — 53 listings across the region, according to PwC’s latest market review. 

The agreement was signed by Haitham bin Salem Al-Salmi, the CEO of Muscat Stock Exchange, and Nihad Kamal, the director general of Palestine Exchange. 

The two sides emphasized the importance of the memorandum as a key milestone in enhancing financial integration between Arab stock exchanges and improving financial services in both markets. 

They also highlighted the need to develop advisory services and offer specialized training programs for stock exchange employees and investors, thereby increasing knowledge of financial markets and trading mechanisms. 

Additional collaboration will focus on governance and sustainability, as well as initiatives to improve financial literacy through educational and cultural programs. 

Earlier this month, during a panel discussion at the Capital Markets Forum in Riyadh, Al-Salmi said Oman is working to elevate its market to Emerging Market status and is implementing various initiatives as part of Vision 2040. 

He added that the exchange has begun aligning its market infrastructure with the required standards to enhance accessibility and attractiveness. 

Al-Salmi also said that in 2024, Oman’s exchange was highly active in boosting liquidity and market capitalization, adding the exchange had two listings, one of which was the country’s largest IPO, adding $8 billion to the market. 

Founded in 1995, PEX has been key to promoting investment in Palestine. It became a publicly traded company in 2010, making it the second Arab stock exchange fully privately owned. As of 2024, it lists 49 companies with a market cap of $4.3 billion but has been hit hard by the war in Gaza and West Bank restrictions. 

PEX reported a 59 percent drop in net profit for 2024, down to $336,667 from $829,762 in 2023. Trading value fell 50 percent to $164 million, while the Al-Quds Index dropped 90 points or 15 percent. 

In a press release earlier this month, Chairman Samir Hulileh attributed the losses to the ongoing conflict in Gaza and restrictions in the West Bank, citing a 28 percent economic contraction and a rise in unemployment to 51 percent. 

Despite these setbacks, PEX remains listed in global financial indices, including FTSE Global, Morgan Stanley, and Standard & Poor’s Frontier Markets. The exchange aims to enhance financial disclosure, improve governance standards, and promote sustainability under the new partnership with MSX.