Thiaw Ahead of COP16: $355 Billion Needed Annually to Combat Desertification

Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
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Thiaw Ahead of COP16: $355 Billion Needed Annually to Combat Desertification

Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)
Ibrahim Thiaw, Under-Secretary-General and Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD)

With the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (COP16) set to take place in Riyadh in early December, the world is focusing on solutions to one of the planet’s most urgent environmental challenges.

Ibrahim Thiaw, Executive Secretary of the convention, told Asharq Al-Awsat that the global economic cost of desertification is estimated at $878 billion annually. He emphasized that increased investment is essential to restore degraded lands and address this pressing issue effectively.

COP16 will gather global leaders and policymakers to explore strategies for combating drought and advancing green initiatives both regionally and globally. Thiaw highlighted the critical funding gap in combating desertification. From 2025 to 2030, the world will need $355 billion annually, but current funding levels are only $77 billion, leaving a $278 billion shortfall, he said, adding that without urgent action, 100 million hectares of land could degrade each year, directly impacting 1.3 billion people.

Uncontrolled land degradation poses severe risks, including up to a 50% reduction in crop yields in some regions by 2050, according to Thiaw. He noted that this decline would drive food prices up by 30% and significantly worsen food insecurity, especially in vulnerable areas. By mid-century, half of the global grain supply could face extreme water scarcity. The annual economic toll of desertification, land degradation, and drought represents approximately 2% of global GDP.

Thiaw expressed hope that COP16 will achieve tangible progress by prioritizing investments in land restoration to enhance resilience against drought. He emphasized that restoring degraded lands could significantly improve soil health, potentially boosting global crop yields by 2% by 2050. This progress would be particularly impactful in regions like the Middle East and North Africa.

Implementing sustainable land management practices could also mitigate the effects of drought by improving water retention and increasing ecosystem resilience. In this regard, the executive secretary of COP16 stressed the importance of partnerships among governments, international organizations, and the private sector to attract investments and fund sustainable projects. He pointed to public-private collaborations and blended financing as key mechanisms, alongside international support through grants and loans, especially in Africa, where the annual investment gap stands at $191 billion.

Thiaw further said that restoring land addresses multiple global challenges, including food security, poverty, climate change, biodiversity loss, and forced migration. He underlined the role of sustainable agriculture in improving soil health, creating green jobs, and building community resilience, while ensuring long-term sustainability.

Moreover, emerging technologies, such as artificial intelligence, are crucial for monitoring land degradation and enabling timely interventions. Thiaw encouraged countries to adopt these technologies to improve land management and restoration efforts.

He also highlighted the vital role of women in combating desertification, noting that while women produce 80% of the world’s food, they own less than 20% of its land. Empowering women and securing their land rights could lead to more sustainable practices and strengthen communities’ resilience to desertification and drought, he stated.



China’s Deflationary Strains Persist Even as Consumer Inflation Hits 21-Month High 

A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
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China’s Deflationary Strains Persist Even as Consumer Inflation Hits 21-Month High 

A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)
A shopper browses past shelves at a supermarket in Beijing on December 10, 2025. (AFP)

China's annual consumer inflation accelerated to a 21-month peak in November, mainly driven by food prices, while factory-gate deflation deepened, with underlying trends suggesting domestic demand remains weak and unlikely to recover in the near term.

The $19 trillion economy is on course to meet Beijing's growth target of "around 5%" for the year, buoyed by policy support and resilient goods exports. But economic imbalances have worsened this year as US President Donald Trump's global trade war has added to persistently soft consumer demand, putting the onus on policymakers to step up stimulus measures.

The consumer price index (CPI) rose 0.7% from a year earlier, National Bureau of Statistics data showed on Wednesday, matching a 0.7% expansion in a Reuters poll of economists. It had increased 0.2% in October.

The pickup in consumer inflation was mainly driven by rising food prices, which increased 0.2% year-on-year after dropping 2.9% in October.

But annual core inflation, which excludes volatile prices of food and fuel, was unchanged at 1.2% last month. On a monthly basis, CPI dipped 0.1% versus a 0.2% rise in October and a forecast gain of 0.2%.

Factory-gate deflation has also dragged on for three years in China, hobbling the world's second-biggest economy, even as the government has stepped up a campaign to curb industrial overcapacity and made calls on key sectors to scale back cut-throat competition. The latest data showed few signs of a recovery in the deflationary impulse.

The producer price index (PPI) fell 2.2% year-on-year in November, compared with a 2.1% fall in October and worse than the forecast for a 2.0% drop. The index was up 0.1% from October.

"China’s latest inflation figures indicate an economy that is warming up on the surface but is still battling deep-seated deflationary pressures underneath," said Zavier Wong, market analyst at investment firm eToro.

'WAVE OF POLICY SUPPORT' EXPECTED TO BOOST DEMAND

Most analysts expect deflationary pressures to linger next year.

Falling prices of everyday items underlined the challenge authorities face as firms, hobbled by low demand, try to lure buyers with discounts.

Total spending on fast-moving consumer goods such as packaged food and drinks, toilet paper and toothpaste in China grew 1.3% year-to-date, supported by a 2.4% decline in average selling price, according to a report by Bain & Co on Tuesday.

Analysts say the government needs to stabilize the faltering property sector, lower the youth unemployment rate and build a better social safety net to encourage spending to foster sustainable longer-term growth.

In the near term, however, more policy support is required to inject confidence, they said.

The country's top leaders have pledged to better balance supply and demand and signaled a shift toward supporting household consumption and restructuring the economy over the next five years.

The Politburo, a top decision-making body of the ruling Communist Party, vowed on Monday to keep expanding domestic demand and support the broader economy with more proactive policies in 2026.

"With recent attention being placed on getting 2026, the first year of the next five-year plan period, off to a good start, this will likely necessitate another wave of policy support in the early months of next year," said Lynn Song, chief economist for Greater China at ING.

The economist penciled in 20 basis points of rate cuts in 2026.


Saudi Arabia Builds Momentum for Diverse, Sustainable Development Finance

Riyadh governor attends launch of Development Finance Conference Momentum 2025 (Asharq Al-Awsat)
Riyadh governor attends launch of Development Finance Conference Momentum 2025 (Asharq Al-Awsat)
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Saudi Arabia Builds Momentum for Diverse, Sustainable Development Finance

Riyadh governor attends launch of Development Finance Conference Momentum 2025 (Asharq Al-Awsat)
Riyadh governor attends launch of Development Finance Conference Momentum 2025 (Asharq Al-Awsat)

Saudi Arabia is moving into a pivotal phase driven by development financing that prioritizes impact, diversification, sustainability and the growth of human capital, while lifting overall quality of life.

This shift, which marks a move from traditional financial support to measurable and lasting results, was reflected in the announcement that the National Development Fund system delivered more than 52 billion riyals, 13.9 billion dollars, in financing in one year, adding around 47 billion riyals, 12.5 billion dollars, to non-oil GDP.

The figures were unveiled at the Development Finance Conference Momentum 2025.

The event opened on Tuesday in the Saudi capital under the patronage of Crown Prince and Prime Minister Prince Mohammed bin Salman and in the presence of Riyadh Governor Prince Faisal bin Bandar bin Abdulaziz, marking a development push aimed at creating opportunities and shaping the future.

The conference draws more than 150 speakers, 120 countries and 30 exhibitors to discuss global financing challenges and opportunities in industry, sustainability, innovation and economic resilience.

Development financing

Mohammed Al-Tuwaijri, Vice Chairman of the National Development Fund, stressed in his opening remarks the importance of this global platform, which he said launches a new phase in the development financing journey with the goal of achieving sustained impact.

He said, From Riyadh, and through this conference, the National Development Fund presents promising insights across development fields, with contributions from prominent speakers and experts from around the world. The fund is helping to generate new momentum for development.

Al-Tuwaijri said the fund system provided more than 52 billion riyals in financing in one year, adding about 47 billion riyals to non-oil GDP.

He added that the system, which includes 12 development funds, supported more than one million beneficiaries and enabled thousands of citizens to access financing and entrepreneurship opportunities, alongside quality projects that helped diversify the economy, enhance sustainability and create long term jobs.

Sustainable energy

He said the Tourism Development Fund supported more than two thousand tourism projects, while the Cultural Development Fund financed more than 1,500 cultural projects, and the Industrial Development Fund financed 400 projects during the same period.

He added that the industrial fund allocated more than 20 % of its portfolio to sustainable energy projects, including green hydrogen capacity of 3.8 gigawatts and solar power projects totaling 2.6 gigawatts, as part of the kingdom’s efforts to strengthen the global green economy.

Infrastructure investment

Investment Minister Khalid Al-Falih said the kingdom is a leading destination for global capital, particularly from advanced economies, adding that by 2030, or two years after, about one trillion dollars will be invested in infrastructure.

He said, Capital from advanced economies, such as Europe and Japan, is seeking destinations that offer long term certainty and stable returns, and Saudi Arabia is among the most prominent of these destinations.

Al-Falih said a large part of these investments is tied to pensions and insurance, which makes certainty about returns essential.

He noted that the kingdom is focused on developing sustainable infrastructure projects that include major airports, desalination, ports and distribution centers, in line with green financing standards to attract billions of dollars in investment that support Vision 2030.

Green bonds

Al-Falih said the kingdom holds the largest share of the market in green financing and represents two thirds of regional efforts, adding that the Public Investment Fund has several unique investment vehicles for century-long green bonds that have already begun trading.

He said these projects aim to deliver long term sustainability and enhance global capital participation in helping the kingdom achieve its medium and long term ambitions.

The workforce

Tourism Minister Ahmed Al-Khateeb said in a panel discussion on the sidelines of the conference that the tourism ecosystem employs about 10 % of the global workforce, or roughly 350 million people, and that the sector is one of the key drivers of diversifying the Saudi economy and advancing Vision 2030.

According to Al-Khateeb, Saudi tourism has seen unprecedented growth over the past decade, especially in the past five years. He chairs three of the twelve development funds in the kingdom, including the Tourism Development Fund, the Saudi Fund for Development and the Events Investment Fund.

He said the development funds play an important role locally, regionally and internationally, working with national and regional financing agencies such as the World Bank, other development funds in the region, the Islamic Development Fund and the French Development Agency, to support more than 800 projects that include clean water, hospitals, schools, roads and airports.

Tourism Development Fund

He said the Tourism Development Fund was created to stimulate the sector and is essential to achieving Vision 2030, noting that the private sector is the main player in tourism because of its major role in job creation.

The number of people working in tourism is expected to rise to about 500 million by 2034. Small and medium enterprises, which represent about 80 % of travel and tourism activity, will benefit greatly. The fund financed more than 10,000 SMEs over the past three years, he said.

Events Investment Fund

Al-Khateeb said the Events Investment Fund was created to develop events related infrastructure such as marinas, theaters and tourism facilities, and to finance the private sector to build and operate these sites at attractive financing costs, enabling investment in soft infrastructure after the government provides the hard infrastructure such as roads, airports and electricity.

He said developing mega projects such as the Red Sea project and its islands creates diverse jobs and helps diversify the economy and increase prosperity, noting that development financing plays a central role in unlocking economic and social value for any tourism site.

National strategy

He said Saudi tourism grew six % last year, nearly double the global average, and that tourism spending rose 11 % to 284 billion riyals, 75 billion dollars, in 2024, underscoring the sector’s strong investment potential over the next ten to twenty years.

He discussed the national tourism strategy launched in 2019, which focuses on visitor spending and its impact on GDP and employment. The tourism sector’s contribution to GDP rose from 3 % in 2019 to about 5 % last year, he said, with a target of reaching 10 % by 2030 and expanding later to 13 to 15 % to become the kingdom’s second largest economic contributor.

Al-Khateeb concluded by stressing the importance of planning for the next generation of tourism, including the use of artificial intelligence to enhance visitor experience and prioritizing the consumer. He said the kingdom is working to develop the sector in an innovative and sustainable way so it becomes a strong driver of the non-oil economy.


Saudi-Qatar Electric Rail Project to Deepen Economic, Logistics Ties

Signing of Saudi-Qatar high speed rail deal attended by Saudi Crown Prince and Qatar Emir (SPA)
Signing of Saudi-Qatar high speed rail deal attended by Saudi Crown Prince and Qatar Emir (SPA)
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Saudi-Qatar Electric Rail Project to Deepen Economic, Logistics Ties

Signing of Saudi-Qatar high speed rail deal attended by Saudi Crown Prince and Qatar Emir (SPA)
Signing of Saudi-Qatar high speed rail deal attended by Saudi Crown Prince and Qatar Emir (SPA)

Hussein al-Khawaja, chairman of the land transport committee at the Al-Ahsa Chamber, said the agreement to build a high speed electric passenger railway between Saudi Arabia and Qatar, the largest modern infrastructure venture ever undertaken by two Gulf states, ushers in a new chapter of economic and logistics integration.

He said the line will spur the movement of goods and travelers, energize commercial and tourism flows, strengthen cross border supply chains through more resilient logistics solutions, and lift bilateral trade by shortening delivery times and trimming the edges of operating costs.

He told Asharq Al-Awsat that the deal represents a major strategic leap within both countries’ efforts to deepen economic cooperation and developmental integration, cement social ties, and support sustainable development paths under Saudi Vision 2030 and Qatar National Vision 2030.

Al-Khawaja said the project will redefine travel between the two countries. It will give passengers and investors broader, faster and more flexible routes connecting business hubs and global aviation centers, with a capacity exceeding ten million passengers a year.

He said the venture’s projected economic return of about 115 billion riyals to the combined gross domestic product underscores its position as one of the most significant strategic projects driving regional development.

It is expected to generate around thirty thousand direct and indirect jobs in Saudi Arabia and Qatar during construction and operation.

Addressing the impact on Al-Ahsa, al-Khawaja said the project will help turn the province into a pivotal logistics and commercial corridor that links Gulf economies.

It will strengthen intra Gulf trade and economic integration and open the door to major infrastructure investments, reinforcing Al-Ahsa’s standing as a key geographic and strategic location and a promising commercial and logistics center.

He added that the railway will bolster the local economy’s capacity and growth, create new jobs, lower transport costs for goods and passengers, support the logistics sector and supply chains, spur local manufacturing, attract investment, reduce maintenance costs and expand tourism, while building a more competitive, integrated and sustainable economic landscape.