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Saudi Arabia Leads Global Efforts Against Desertification at COP16

Saudi Arabia establishes principles for combating desertification and drought (SPA)
Saudi Arabia establishes principles for combating desertification and drought (SPA)
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Saudi Arabia Leads Global Efforts Against Desertification at COP16

Saudi Arabia establishes principles for combating desertification and drought (SPA)
Saudi Arabia establishes principles for combating desertification and drought (SPA)

Saudi Arabia is leading international efforts to address desertification and its negative impacts on economies, societies, and environments worldwide. This initiative comes as the Kingdom prepares to host the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16).

To support sustainable development goals, Saudi Arabia sent a high-level delegation to the 79th United Nations General Assembly, led by Foreign Minister Prince Faisal bin Farhan Al Saud.

This delegation launched a significant initiative involving the upcoming three COP conferences on climate change, biodiversity, and desertification.

The aim is to create comprehensive solutions that enhance the outcomes of these agreements, which have been working for 30 years to improve life on Earth and ensure the sustainability of natural resources.

Speaking to Asharq Al-Awsat, Dr. Osama Ibrahim Faqeeha, Deputy Minister of Environment, Water, and Agriculture in Saudi Arabia and advisor to COP16, emphasized that recent meetings are part of ongoing efforts that began when Saudi Arabia announced it would host one of the largest global environmental conferences.

This decision highlights the international community’s trust in the Kingdom’s leadership on these critical issues, according to Faqeeha.

The deputy minister also mentioned Saudi Arabia’s recent call to governments at the United Nations General Assembly, urging them to take decisive action at COP16 of the United Nations Convention to Combat Desertification, which will be held in Riyadh in early December.

Saudi Arabia’s Preparations for COP16

As COP16 approaches, Saudi Arabia is taking on a crucial role at both regional and international levels to host the conference.

Faqeeha noted that the Kingdom has launched the “Middle East Green Initiative,” a unique coalition designed to address climate change through regional cooperation.

This initiative aims to create a sustainable future by diversifying the economy, generating jobs, and attracting private sector investments.

It focuses on two main goals: increasing tree planting and reducing carbon emissions in the region.

Additionally, Saudi Arabia is establishing regional centers and programs to help achieve these objectives and promote investments in the circular carbon economy and reforestation efforts.

Faqeeha highlighted that Saudi Arabia’s efforts have earned global trust, making it the ideal host for COP16.

He pointed out that during its G20 presidency, the Kingdom launched an initiative, aiming to unify global efforts for innovative solutions in land restoration and drought resilience.

This initiative is vital for food and water security, especially as a quarter of the world's population faces drought conditions, with projections suggesting that three out of four people may experience water scarcity by 2050.

In terms of preparations for COP16, Faqeeha noted that the conference will showcase Saudi Arabia’s dedication to tackling climate change and finding effective solutions for land degradation.

The Kingdom has implemented proactive measures and revised environmental laws to reaffirm its commitment to international agreements.

“We have worked hard to bring together the world’s best minds and resources in Riyadh to pave the way for a sustainable future,” Faqeeha told Asharq Al-Awsat.

As part of the preparations for this 30th anniversary of the UN Convention to Combat Desertification, Faqeeha said: “We will present evidence to delegations showing that significant financial returns are possible for the global community, along with real benefits for society, in line with global development goals.”

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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
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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.