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World Bank Urges Region’s States to Turn Climate, Tech Challenges into Opportunities

A citizen participates in the “Saudi Green Initiative” (SPA)
A citizen participates in the “Saudi Green Initiative” (SPA)
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World Bank Urges Region’s States to Turn Climate, Tech Challenges into Opportunities

A citizen participates in the “Saudi Green Initiative” (SPA)
A citizen participates in the “Saudi Green Initiative” (SPA)

The World Bank has warned that countries in the Middle East and North Africa (MENA) face a critical crossroads, requiring “urgent” reforms to turn major challenges, aging populations, climate change, and technological transformation, into real opportunities that can secure sustainable growth for future generations.

At the same time, the Bank highlighted Saudi Arabia’s coordinated reforms under its Vision 2030, which have raised women’s workforce participation from 17% in 2016 to over 35% in 2024.

In an interview with Asharq Al-Awsat, Fadia Saadah, World Bank Regional Director for Human Development in the Middle East, North Africa, Afghanistan, and Pakistan, outlined the Bank’s view on the most pressing reforms and how Gulf Cooperation Council (GCC) countries can leverage significant investments in human capital to close gaps and boost inclusive economic participation.

Developing Skills

Saadah noted that GCC countries, including Saudi Arabia, are seeking to maximize the benefits of foreign labor through labor market policy reforms, balancing the need to fill skills gaps with supporting economic growth, while investing in education, skill development, and incentives to encourage citizens’ participation in the private sector.

She highlighted Saudi Arabia’s extensive reforms in recent years to improve its sponsorship (kafala) system, enhancing the mobility of foreign workers and improving working conditions.

These reforms have been paired with Saudization programs, such as Nitaqat, which set quotas for employing Saudi nationals in the private sector.

According to Saadah, these measures—alongside financial support programs, retraining initiatives, and women’s empowerment policies—have contributed to increased citizen participation, particularly among women. Digital platforms and targeted training programs have also supported citizens, especially youth and women, by providing access to employment opportunities and developing skills required for a changing labor market.

Digital Transformation and Vision 2030

Under Vision 2030 and government digital initiatives, Saadah said Saudi Arabia has prioritized digital services, data-driven decision-making, and inclusive access, focusing on women and youth as central to the digital transformation. The kingdom is investing in digital infrastructure and artificial intelligence to modernize public service delivery and expand economic opportunities.

While human capital in the region has improved significantly, Saadah cautioned that its full potential remains untapped for driving economic growth. Despite progress in education and healthcare, aging populations and unhealthy lifestyle patterns continue to strain pension systems and healthcare infrastructure. Conversely, climate challenges and technological shifts offer opportunities to enhance green skills and digital readiness, opening new avenues for sustainable growth.

Institutional Reforms Needed

In its mid-September report, Embracing and Shaping Change: Human Development in MENA in a Transforming Phase, the World Bank noted that low human development investment is both a cause and consequence of economic performance and income growth. The report urged governments in the region to address governance gaps and ensure sustainable financing for human development.

The report identified three major trends that could erode development gains if not effectively addressed:

Aging populations: With the share of older adults expected to double by 2050, pension and healthcare systems face major challenges.

Climate crisis: Rising temperatures and water scarcity threaten health and food security, though green transition policies could create new opportunities.

Technological transformation: Although regional labor markets are less exposed to automation than elsewhere, the region must prepare to fully benefit from artificial intelligence, improve digital infrastructure, and reduce internet costs.

Saadah emphasized that building on these achievements requires continued investment in future-ready human development policies, including strengthening human capital, advancing institutional reforms, and adopting strategies tailored to each country.

Women’s Empowerment

Saadah said Saudi Arabia offers a clear example of achieving better outcomes through broad reform programs. Vision 2030, labor market strategy, and human capacity development initiatives have aligned education and skills development with labor market needs.

Efforts focus on technical and vocational education, digital skills, and lifelong learning to enhance private sector employment opportunities, particularly for youth and women. Digital platforms such as Qawi and Jadarat have facilitated access to jobs and training programs, improved labor market matching, supported flexible and remote work, and developed future-ready skills, making the labor market more inclusive and responsive.

Reforms have also included removing guardianship requirements for women to work or travel, criminalizing workplace harassment, unifying retirement ages, and banning gender discrimination in hiring and pay. Complementary support programs, such as Wasl for transportation, Qara for childcare, and Maran for workplace flexibility, along with training in nontraditional sectors like ICT and aviation, have further empowered women.

Saadah concluded that these measures have enabled women to enter and remain in the workforce, especially in the private sector, contributing to shifts in social attitudes and broader acceptance of women’s economic participation. She stressed that enhancing women’s participation is not merely a social choice but an economic strategy, as reforming social norms and official institutions is essential for achieving a sustainable and deeply impactful transformation.

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Business

Saudi Arabia's Industrial and Mining Sectors Record Strong Growth in 2025

The Ministry of Industry and Mineral Resources logo
The Ministry of Industry and Mineral Resources logo
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Saudi Arabia's Industrial and Mining Sectors Record Strong Growth in 2025

The Ministry of Industry and Mineral Resources logo
The Ministry of Industry and Mineral Resources logo

The Ministry of Industry and Mineral Resources announced the 2025 performance indicators for the Kingdom’s industrial and mining sectors, highlighting continued growth and increased investment.

According to the ministry, 1,660 new industrial licenses were issued in 2025, with investments exceeding SAR76 billion and the potential to create approximately 34,847 jobs.

During the same year, 1,201 factories began production, representing investments of more than SAR31 billion and employing around 45,454 workers, reflecting the sector’s growing appeal to both local and international investors.

In the mining sector, the ministry issued 736 new mining licenses. By the end of the year, the total number of active mining licenses reached 2,925, covering various license types across the sector.

These indicators underscore the ministry’s ongoing efforts to develop the mining industry, strengthen its global competitiveness, and position it as the third pillar of Saudi industry.

Business

US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
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US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)

US consumer prices likely picked up in February as the cost of gasoline increased in anticipation of an escalating war in the Middle East, and with the conflict driving up oil prices, a further rise in inflation is expected in March.

The anticipated increase in the Consumer Price Index last month would also reflect the continued, but staggered pass-through from President Donald Trump's sweeping tariffs, which he pursued under a law meant for use in national emergencies, that have since been struck down by the US Supreme Court.

The Labor Department's consumer inflation report on Wednesday is, however, expected to show underlying price pressures rising moderately last month, thanks to relatively cheaper used motor vehicles and airline fares. It is unlikely to have any impact on near-term monetary policy, with the Federal Reserve expected to keep interest rates unchanged next week.

"The February CPI is likely to show that progress on lowering inflation is stalling out again," said Sarah House, ‌a senior economist at Wells ‌Fargo.

"Although the conflict in the Middle East started at the end of February, oil ‌and ⁠gasoline prices were ⁠already rising last month in anticipation of an escalation," House said.

The CPI likely increased 0.3% last month after climbing 0.2% in January, a Reuters survey of economists predicted. Estimates ranged from a 0.1% rise to a 0.3% increase. In the 12 months through February, the CPI was estimated to have advanced 2.4%, which would match January's increase, and reflect last year's high readings dropping out of the calculation.

The US central bank tracks the Personal Consumption Expenditures price indexes for its 2% inflation target.

Economists estimated that gasoline prices rose by about 0.8% in the CPI report after declining for two straight months.

Prices at the pump have jumped by more than ⁠18% to $3.54 per gallon since the US-Israeli war on Iran started at the end of February, ‌data from motorist advocacy group AAA showed. Oil prices shot up well ‌above $100 per barrel, before pulling back on Tuesday after Trump stated the war could end soon.

UPSIDE RISK TO FOOD PRICES FROM WAR

"The ‌recent 15% move alone suggests a 0.15-0.30 percentage point lift to headline inflation depending on how the conflict evolves," said ‌Andy Schneider, a senior US economist at BNP Paribas Securities.

Food prices likely maintained a moderate pace of increase, though Schneider added "a sustained oil price shock would raise fertilizer and transportation costs that could push food inflation higher later in the year."

Excluding the volatile food and energy components, the CPI was forecast to have gained 0.2% after rising 0.3% in January. The so-called core CPI inflation was likely curbed by a ‌decline in used motor vehicle prices, as well as smaller increases in rents and airline fares.

But prices for goods like apparel and household furnishings likely increased solidly as businesses passed ⁠on tariffs. January's Producer Price Index ⁠report showed a widening in margins, including for apparel, footwear and accessories retailing.

Though businesses have absorbed much of the import duties, economists said they were unlikely to continue doing so, citing among others persistently higher readings of input costs in the Institute for Supply Management surveys.

Trump has responded to the Supreme Court ruling by imposing a 10% global tariff, which he said would rise to 15%.

"The trouble is that there is evidence that input costs continue to escalate, even as the level of tariffs has mostly stabilized," said Stephen Stanley, chief US economist at Santander US Capital Markets. "The pass-through dynamic could persist for a while."

In the 12 months through February, the core CPI inflation is forecast to have increased 2.5% after rising by the same margin in January, also reflecting favorable base effects.

Economists said the tame core CPI readings were unlikely to translate into moderate core PCE inflation gains in February. January's delayed PCE price index data due on Friday is expected to show a solid increase in core inflation.

"Weighting differences and unexpected strength in PPI service prices are likely to produce a significantly larger increase in the broader consumption index," said Lou Crandall, chief economist at Wrightson ICAP. "Similar effects are likely to give the core PCE price index an upward bias in the February data due out on April 9."

Business

Asian Shares Advance as Markets Await Signals on When the War with Iran May End

South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
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Asian Shares Advance as Markets Await Signals on When the War with Iran May End

South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)
South Korean dealers work in front of monitors at the Hana Bank in Seoul, South Korea, 09 March 2026. (EPA)

Asian shares were mostly higher Wednesday with several benchmarks giving up much of their early gains as investors awaited signals on when the war with Iran may end.

US futures rose and oil prices were mixed.

Tokyo's Nikkei 225 gained 1.3% to 54,926.50 and South Korea's Kospi picked up 0.6% to 5,562.40 after gaining more than 3% earlier in the day.

In Hong Kong, the Hang Seng fell back, slipping 0.2% to 25,921.02, while the Shanghai Composite index edged 0.2% higher to 4,131.39.

Australia's S&P/ASX 200 rose 0.6% to $8,743.50.

Taiwan's benchmark climbed 4.1% and the Sensex in India fell 1.1%. In Bangkok, the SET gained 1.3%.

Oil prices have remained sharply below their peaks hit on Monday. Such spikes have been rocking financial markets worldwide because of worries that the war could block the global flow of oil and natural gas for a long time.

“Asian equities and global futures managed to steady the ship today, helped by crude holding just below the psychologically charged $90 line. In the current regime, that single number functions less like a price and more like a pressure valve,” Stephen Innes of SPI Asset Management said in a commentary.

Early Wednesday, the price for a barrel of Brent crude, the international standard, was down 2 cents at $87.78. That’s about 10% below its settlement price the day before.

US benchmark crude oil gained 53 cents to $83.98 per barrel.

Oil prices plunged Monday afternoon from a high of nearly $120 per barrel, its most expensive level since 2022, after President Donald Trump told CBS News he thinks “the war is very complete, pretty much.” That raised hopes that the war may end relatively soon, which could allow oil to flow freely again from the Middle East to customers around the world.

However, both sides have sharpened their rhetoric as the war enters its 11th day. US Defense Secretary Pete Hegseth promised the most intense strikes yet while the Pentagon detailed the broader toll of injuries sustained by US troops.

The US said it took out more than a dozen minelaying Iranian vessels Tuesday, and Tehran vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies.

One point where Trump has remained clear was his desire to keep the Strait of Hormuz open. The war has effectively blocked the waterway off Iran’s coast, where a fifth of the world’s oil sails on a typical day.

“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” Trump said in a posting on his social media network late Monday.

On Tuesday, the S&P 500 dipped 0.2% to 6,781.48, a day after its latest wild swings caused by extreme moves in the oil market. The Dow Jones Industrial Average fell 34 points, or 0.1% to 47,706.51 and the Nasdaq composite edged higher by less than 0.1% to 22,697.10.

Oracle's shares on the Nasdaq surged 12% in premarket trading early Wednesday after the company reported its earnings and revenue jumped 20% in the last quarter, much better than analysts had forecast.

Stock markets have a history of bouncing back relatively quickly from military conflicts, as long as oil prices don’t stay too high for too long. Uncertainty about whether that may happen this time around has led to stunning swings up and down for markets worldwide, often hour-to-hour.

If oil prices do stay high for long, household budgets already stretched by high inflation could snap under the pressure. Companies would see their own bills jump for fuel and to stock items on their store shelves or in their data warehouses. It all raises the possibility of a worst-case scenario for the global economy, “stagflation,” where growth stagnates and inflation remains high.

In other dealings early Wednesday, the dollar rose to 158.08 Japanese yen from 158.05 yen. The euro rose to $1.1638 from $1.1610.