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World Bank Says Not Suspending Projects in Gaza

A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
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World Bank Says Not Suspending Projects in Gaza

A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)
A Palestinian youth clashes with Israeli security forces at the Huwwara checkpoint at the southern entrance of Nablus (AFP)

The World Bank is not currently considering suspending its projects in Gaza, and it is monitoring the development of the situation, which it hopes will end soon.

The World Bank's VP for the MENA region, Ferid Belhaj, told Asharq Al-Awsat that the size of the World Bank's projects with the Palestinian Authority (PA) is in the range of $80 million annually, divided among many projects such as sanitation, water, and others.

Belhaj asserted that the World Bank continues to work positively with the Authority while monitoring the developments.

"To date, we have no intention of suspending projects and funding in Palestine."

The World Bank finances Palestinian projects in water, energy, urban and local development, social protection, education, health, solid waste management, and digital, financial, and private sector development.

Asharq Al-Awsat asked the official about Tunisia and its program with the International Monetary Fund (IMF). Belhaj said the door is open to any member state seeking IMF loan agreements.

In September 2022, Tunisia reached a preliminary agreement with the IMF to obtain a loan worth $1.9 billion.

However, talks regarding its implementation reached a dead end for several reasons, notably the government's refusal to restructure 100 public companies burdened with debt and to lift subsidies.

Belhaj indicated that there has been a recent change in positions that may lead to a convergence of views and reaching an agreement.

On Thursday, the Fund's Director of the Middle East and Central Asia Department, Jihad Azour, said that Tunisian authorities did not propose any alternative to the program.

He said that by reforming the subsidy, Tunisia could allow more resources to finance inclusion and increase social spending.

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Business

World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).

Business

Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo

Visa is relocating its European headquarters to London's Canary Wharf financial district, the Canary Wharf Group said on Friday.

The firm is leasing 300,000 square feet on a 15-year term at One Canada Square, and is set to relocate from Paddington in the summer of 2028, the group added.

Canary Wharf Group, which runs the wider financial district and is co-owned by QIA and Canada's Brookfield, was hit hard by the pandemic-induced fall in office demand.

The area is now enjoying a rebound as more firms push staff to return to office, Reuters reported.

"Canary Wharf continues to attract a diverse range of global businesses. We are delighted to welcome Visa who have chosen the Wharf for their European headquarters as the best location to support their business growth," Shobi Khan, Canary Wharf Group CEO, said.

JPMorgan Chase last week unveiled a plan to build a tower in the Canary Wharf financial district that will contribute 9.9 billion pounds ($13.2 billion) over six years to the local economy - including the cost of construction - and create 7,800 jobs.

Qatar's sovereign wealth fund is revising plans for a revamp of its HSBC skyscraper in the east London district to retain more office space, Reuters reported in November.

Business

World Bank Raises GCC Growth Forecast

GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
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World Bank Raises GCC Growth Forecast

GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 
GCC leaders and their representatives attend the 46th Gulf Summit held in the Bahraini capital (BNA) 

The World Bank has lifted its growth forecast for the Gulf Council Cooperation (GCC) to 4.5% for 2026, supported by structural reforms and rapid digital innovation.

A WB forecast issued in October had projected 4.4% growth for 2026.

In its latest edition of the Gulf Economic Update (GEU), the World Bank said economic growth across the Gulf council is gaining momentum in 2025.

It said GCC countries are going through rapid structural transformation to diversify their economies away from oil, where jobs are at the heart of national vision.

The GCC countries are also in a unique position to attract and retain talent equipped with digital skills to build, operate and sustain the large digital infrastructure investments made in Digital Public Infrastructure, cloud computing, data centers and AI.

In Bahrain, the report said the country continues to show robust growth, driven primarily by its non-oil sectors, notably financial services and tourism.

Investments in infrastructure, gas, logistics, financial technology, and tourism are expected to sustain medium-term growth.

However, the report showed that fiscal pressures persist due to high deficits and elevated public debt while the economy is expected to expand by 3.5% in 2025.

Kuwait is emerging from two challenging years marked by regional instability, subdued oil prices, and OPEC+ production cuts, according to the WB report.

After consecutive GDP contractions in 2023 and 2024, the economy is showing signs of recovery, with positive growth expected in 2025 and beyond, supported by higher oil exports.

The recent passage of a financing and liquidity law enabling government debt issuance is a positive step toward easing fiscal pressures, the report said, adding that the economy is expected to expand by 2.7% in 2025.

Oman, the WB report said, has accelerated its diversification efforts, with non-hydrocarbon sectors increasingly driving growth.

The economy is expected to expand by 3.1% in 2025, with further acceleration anticipated in the medium term.

As for Qatar, it maintains a steady growth trajectory, underpinned by strong non-oil sector performance and robust external surpluses despite lower hydrocarbon prices.

As a global leader in liquified natural gas (LNG) production, Qatar is set to significantly boost output through the North Field expansion, reinforcing its position in global LNG markets.

Fiscal and current account surpluses are expected to remain strong, supported by LNG expansion as real GDP growth is projected to reach 2.8% in 2025.

Saudi Arabia is experiencing renewed economic momentum, with both oil and non-oil sectors contributing to growth. Real GDP growth is expected to reach 3.8% in 2025.

The report noted that fiscal pressures have intensified due to subdued oil prices, resulting in a widening deficit.

The country is leveraging its low debt levels to access global capital markets, with recent borrowing raising the debt-to-GDP ratio to close to 32%.

Ongoing reforms under Vision 2030 and changes in foreign ownership regulations are expected to further attract investment.

Also, the WB said, the UAE continues to sustain economic dynamism and diversification, with real GDP growth projected to reach 4.8% in 2025.

The Emirates stands out for its diversified economy, with balanced growth between non-oil and oil sectors, it said, adding that it is also leading in diversifying its export base.

Gulf and AI

The report showed that all GCC countries have robust telecom networks, with 5G coverage exceeding 90% and widespread fiber connections.

It said significant investments in data centers and high-performance computing (HPC) systems, especially in Saudi Arabia and UAE, underpin the region’s digital economy and AI readiness.

“Diversification and digital transformation are no longer optional. They are essential for long-term stability and prosperity. Strategic investments in non-oil sectors and innovation will be critical to sustaining growth and stability,” said Safaa El Tayeb El Kogali, World Bank Division Director for the Gulf Cooperation Council.

“The GCC’s digital leap is remarkable. With robust infrastructure and growing computer power, skills and competencies in Artificial intelligence (AI) capabilities, the region is well-placed to lead in innovation, provided we address labor and environmental challenges proactively,” she added.

The report also showed that women’s participation in the fields of Science, Technology, Engineering, and Mathematics (STEM) surpasses the global average, further reinforcing the region’s digital competitiveness.