Saudi Arabia signed four energy cooperation agreements with Mongolia, Tanzania, Cyprus, and Mauritius. The memorandums of understanding, signed in Riyadh during the 25th WPC Energy Congress, establish frameworks for collaboration across energy sectors.
Energy Agreements Signed in Riyadh
According to the participating ministries, the deals are designed to foster investment opportunities and promote technological innovation. For Cyprus and Saudi Arabia, the framework covers oil, natural gas, renewable energy, electrical interconnections, and digital transformation, as well as the development of supply chains. The agreement was signed by Cyprus’ Energy, Commerce and Industry Minister Michael Damianos and Prince Abdulaziz bin Salman bin Abdulaziz Al Saud during Damianos’ working visit to Riyadh on the occasion of Energy Week. A similar scope was established with Mauritius, signed by Minister of Foreign Affairs, Regional Integration and International Trade Dhananjay Ramful, which covers oil and gas, refining, petrochemicals, electricity, and clean hydrogen.
Joint Technical Groups Will Monitor Energy Agreements
To ensure the agreements are implemented effectively, the parties involved are establishing joint technical groups. These bodies will monitor progress and identify specific project opportunities. The memorandum signed by Cyprus’ Energy Minister Michael Damianos and Prince Abdulaziz bin Salman bin Abdulaziz Al Saud provides for the exchange of technical know-how and the promotion of synergies between government entities and private energy companies. The joint technical group will examine cooperation possibilities and promote the implementation of agreed actions.
Through these collaborations, the involved nations intend to create strategic alliances to guarantee the availability of technologies, services, products, and materials within energy supply chains.
IMF Projects Strong Recovery for Saudi Economy by 2027
These international partnerships coincide with broader IMF projections for the region. The IMF anticipates a strong recovery for Saudi Arabia’s economy in 2027, with growth projected at 7.9 percent. This forecast assumes that shipping disruptions in the region will ease and energy flows will normalize.
The IMF updated its projection for the Saudi economy’s 2026 contraction to 3.3 percent, down from 6.4 percent in April and 5 percent in its July forecast. In terms of economic indicators, the IMF forecasts that Saudi Arabian inflation will hit 1.9 percent in 2026 before climbing to 2.2 percent in 2027. It further estimates a current account deficit of 3.5 percent of GDP for the current year, which is expected to shrink to 1.3 percent in the following year. However, the agency noted that prolonged trade disruptions and additional spending limited previous fiscal improvements, and disruptions to strategic maritime shipping routes could persist until mid-2027.
To support this trajectory, the Saudi government is working to diversify its export outlets.
“Pathways to an Energy Future for All.”
Theme of the 25th WPC Energy Congress, via Zawya
By capitalizing on these agreements, the Kingdom seeks to reinforce its role in international efforts to meet global energy demands. Diversified export outlets and non-oil activities, combined with the reprioritization of investment and spending, provide support for the economy’s ability to overcome regional disruptions.