OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
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OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)

Jamal Issa Al-Loughani, Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC), predicted that the world would become primitive if oil-producing countries listened to climate activist demands and stopped producing gas and oil.

He said the world will witness major power outages, companies would be forced to close and global trade would come to a halt.

Without fuel, supply chains that primarily rely on trucks, railways and marine shipping will come to a stop, he told Asharq Al-Awsat.

Moreover, this will lead to the collapse of the global health system that relies on oil and gas in operating hospitals and transporting patients. The collapse will extend to the production of medicine, equipment and medical supplies, he added.

Ultimately, the world will fall into a deep global slump, he warned.

He remarked however, that given this bleak outlook, the scenario is highly unlikely to unfold.

“We must stress that there can be no imagining a global economy that is not driven by the main engine that is the oil and gas industry,” he declared.

Oil and gas are the main factors on which economic relations between nations are based, providing millions of jobs across the globe, Al-Loughani said.

He noted, however, the growing number of challenges in developing the oil industry and coordinating energy policies between OAPEC member states. He cited unified efforts to secure the delivery of oil to markets through fair and reasonable conditions and providing the suitable conditions for capital and investors in the petrol industry among members.

This is one of the main goals of OAPEC, he remarked. One of the hurdles facing it, he continued, are misleading calls for reducing investments in oil and gas related to the environment and climate change.

He said there is a great insistence on tying an emissions-free environment to reducing the consumption of oil and gas. These calls omit the fact that producing oil and gas and controlling emissions through clean technologies help reach the goal of net-zero emissions by 2050.

OAPEC has indeed started to implement this in recent years as part of the aim to bolster sustainable energy systems and contribute to the global climate change efforts, Al-Loughani added.

OAPEC was founded by Saudi Arabia, Libya and Kuwait in Beirut in 1968. It is based in Kuwait and its founding was viewed as an Arab accomplishment amid trying conditions that followed the 1967 war.

Energy and emissions

Al-Loughani stressed that the oil and gas industry played a major role in the growth of the global economy in recent decades.

In spite of the pressure it is coming under by some countries that had initially backed it, the industry will certainly continue to play its role in the future, he stated.

He emphasized that OAPEC has started to meet global trends related to reducing carbon emissions.

He noted the constant investment, innovation and development of clean technologies, such as carbon capture and storage.

Al-Loughani remarked however, that demand on oil and gas will continue to remain great in the global energy mix despite the rise in the share of renewable energy, especially solar and wind power.

Oil markets

On the drop in investments in the oil sector after some countries shifted to clean energy, Al-Loughani acknowledged the decline, especially in production and exploration, which will lead to a slowdown in the growth of global reserves.

This in turn may impact overall supplies to meet growing demand and consequently lead to rises in energy prices, he predicted.

He revealed that oil exploration and production investments reached around 397.6 billion dollars in 2023, meaning there is a gap estimated at over 17 percent in investments needed to meet global oil demand until 2045, which is estimated at 480 billion dollars annually, according to OPEC.

So, there is a need to bolster investments in the oil industry overall to avoid jeopardizing global energy security and increase inflation, which will in turn slow down the shift towards a clean sustainable energy system, he urged.

Arab reserves

On the role of Arab countries, specifically Saudi Arabia, in securing oil supplies to the global energy market, he said they are playing a main role to that end given their massive reserves and share of global production.

He stressed that Saudi Arabia constantly strives to ensure the security of oil supplies and provide trusted sources of energy, especially when it comes to economic development, while confronting the challenges of climate change.

This has been demonstrated in Saudi Arabia’s pioneering efforts in founding OPEC+ and ensuring its success. He also cited the precautionary measures taken by the group to support the stability and balance of the global oil market through additional voluntary reductions on production.

Such measures are necessary to achieve sustainable growth in the global economy, he added.

He also noted Saudi Arabia’s cooperation with its partners in the G20 with the aim of achieving common interests and maintaining fair costs for all effective parties in the energy market, from producers, investors and consumers. These efforts were highlighted during the COVID-19 pandemic.



UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.


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).


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.