Virus Wreaks Economic Havoc as Global Cases Top 17 Million

A volunteer gestures instructions to a driver at a COVID-19 test site on July 30, 2020 in the Panoramic City neighborhood of Los Angeles, California, where cases continue to spike | AFP
A volunteer gestures instructions to a driver at a COVID-19 test site on July 30, 2020 in the Panoramic City neighborhood of Los Angeles, California, where cases continue to spike | AFP
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Virus Wreaks Economic Havoc as Global Cases Top 17 Million

A volunteer gestures instructions to a driver at a COVID-19 test site on July 30, 2020 in the Panoramic City neighborhood of Los Angeles, California, where cases continue to spike | AFP
A volunteer gestures instructions to a driver at a COVID-19 test site on July 30, 2020 in the Panoramic City neighborhood of Los Angeles, California, where cases continue to spike | AFP

The scale of economic devastation from the pandemic was laid bare on Thursday as Western economies recorded historic slumps, just as resurgent caseloads forced many countries into agonizing new trade-offs between health and financial stability.

Six months after the World Health Organization declared a global emergency, the novel coronavirus has infected more than 17 million people worldwide.

The WHO warned Thursday that young people are "not invincible" and were helping to drive resurgences in many places that had largely curbed the disease.

"Spikes of cases in some countries are being driven in part by younger people letting down their guard during the northern hemisphere summer," said WHO chief Tedros Adhanom Ghebreyesus.

COVID-19 has killed more than 668,000 people and is forcing governments into a persistent balancing act between saving lives and preventing economic devastation.

Nowhere is that challenge more evident than the world's hardest-hit nation -- also the world's biggest economy -- with the United States posting a second-quarter loss of 9.5 percent compared with the same period a year ago, the worst figure on record.

If that trajectory carried through the entire year, its economy would collapse by nearly a third (32.9 percent), the data showed.

Historic contractions were additionally recorded in Germany (10.1 percent), Belgium (12.2 percent), Austria (10.7 percent) and Mexico (17 percent).

Across the globe, companies were also taking a hit with Volkswagen, oil producer Shell, UK bank Lloyds, and Japanese consumer electronics giant Panasonic all reporting huge losses.

With travel down to a trickle, aerospace giant Airbus said it burned through more than 12 billion euros in cash in the first half of the year, with a net loss of 1.9 billion euros ($1.4 billion) and plans to cut production by 40 percent.

But several Big Tech firms delivered better-than-expected results Thursday, underscoring growing consumer reliance on giants like Amazon during the pandemic as well as their extraordinary economic power.

Apple profits rose eight percent to $11.2 billion, Amazon meanwhile said profits nearly doubled to $5.2 billion and Facebook said its profits doubled to $5.2 billion compared with the same period last year.

Global daily cases are now approaching the 300,000 mark, with the curve showing no sign of flattening -- it took just 100 hours for one million new cases to be recorded.

The US counted 1,379 new deaths in the 24 hours before 8:30 pm Thursday (0030 GMT Friday), plus another 72,238 new infections.

And the country also recorded another grim milestone: the death of Buddy, the first US pet dog to test positive for the virus. The seven-year-old German shepherd died after suffering from difficulty breathing and other symptoms for several months.

In Japan, Tokyo's governor called for restaurants, bars and karaoke parlors to shut earlier as the capital reported a record number of new infections.

Sweden, whose controversial softer approach to curbing coronavirus has received worldwide attention, said it would encourage people to keep working from home into next year where possible, as the country passed 80,000 recorded cases.

And Mexico became the world's third hardest-hit country in terms of deaths as it notched more than 46,000 fatalities, according to a tally maintained by AFP.

- Island resurgences -

Two island countries that were early poster children for containing the virus offered warnings against complacency on Thursday.

In Australia, there were 723 positive tests in the southeastern state of Victoria alone, well beyond the previous nationwide record of 549 cases set on Monday.

And Iceland recorded its first hospitalization since mid-May, as well as 31 new cases, forcing the government to reimpose social distancing and masks, and limit the size of gatherings to 100.

Hong Kong, which was also initially lauded for its coronavirus response, is struggling to balance fears of a third wave among its 7.5 million residents, which authorities fear could cripple the healthcare system, against anger at new restrictions.

Just a day after restaurants were banned from serving customers indoors, the decision was reversed following a torrent of online criticism over images of mostly blue-collar workers forced to eat on pavements and in parks -- and even inside public toilets to escape a torrential downpour.

South Africa faces a similar dilemma and pushed back its nighttime curfew by an hour to 10 pm to help the devastated restaurant sector, despite a recent surge in cases.

Ivory Coast however bucked the trend, announcing that bars, nightclubs and cinemas would reopen on Friday.

The EU meanwhile carried out its fortnightly update to its list of safe countries. US travellers are still barred and Algeria was removed after a spike in cases.

The safe list currently consists of Australia, Canada, Georgia, Japan, Morocco, New Zealand, Rwanda, South Korea, Thailand, Tunisia and Uruguay -- and would also include China if Beijing reciprocated.



Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)
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Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)

The Gulf Cooperation Council (GCC) member states took a new step toward completing the railway interconnection project by signing the project's general agreement in Bahrain on Sunday. This comes as part of efforts to establish an integrated transport network linking the six nations and boosting the movement of passengers, goods, and commercial trade among them.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa told Asharq Al-Awsat that each country will fund and execute the portion of the project located within its territory.

Meanwhile, the costs, fees, and expenses associated with the shared interconnection components among member states will be determined collectively, he added.

He explained that the agreement establishes a joint framework for the project's execution and operation, while defining the obligations of member states and their coordination mechanisms.

He noted that the network, which extends some 2,117 kilometers, aims to transport 6 million passengers and 200 million tons of freight by 2030, with the figures projected to rise to more than 8 million passengers and 271 million tons of freight by 2045.

The project spans from Kuwait, passing through Saudi Arabia, Bahrain, Qatar, and the UAE, all the way to Oman, with the goal of achieving full network operations by December 2030.

According to the minister, interconnection lines between adjacent countries can become operational as soon as their components are completed, without the need to wait for the entire Gulf network to be finalized.

National financing and potential partnerships

On private sector participation, Al Khalifa said that it remains one of the viable options for financing, executing, or operating certain components of the project, depending on the outcomes of economic and financial studies. He stressed that there is no unified public-private partnership model approved across the entire network.

There are currently no pre-existing agreements with specific international partners to finance or execute the project, he said. However, the expertise of global companies in the fields of design, engineering, technology, and operating systems could be utilized based on the project's needs and its various phases.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa.

Concerning the project's announced completion rate, the minister explained that the 50 percent figure represents the average progress achieved across member states, and does not mean that half of the construction work for the entire Gulf network has been completed.

The project's cost estimates are currently undergoing review and updates in light of economic shifts, rising prices for materials and services, construction costs, and inflation, he revealed without specifying an updated total cost at the present time.

Returns beyond passenger and freight transport

Al Khalifa said that the economic impact of the project is not limited to facilitating passenger movement and freight transport, but extends to improving supply chain efficiency, boosting trade among GCC countries, and linking industrial centers, economic zones, and logistical hubs, as well as supporting employment and investment opportunities.

He added that determining the project's exact contribution to the gross domestic product (GDP) or estimating expected savings in time and costs remains premature, given that returns vary depending on transport routes, the nature of the cargo, and the points of origin and destination.

In light of the challenges facing maritime navigation in the region, the minister stressed that the Gulf railway network is not intended to serve as a substitute for maritime transport. Instead, it acts as a complementary route that boosts transport options and connectivity among GCC nations, increasing the resilience of supply chains against disruptions that could affect various modes of transportation.

He noted that integration between ports, roads, railways, and airports will strengthen the flexibility of the Gulf transport system, while connecting to broader international logistical corridors remains a future possibility contingent on completing studies, understandings, and coordination with the relevant countries and entities.

King Hamad Bridge to link Bahrain and Saudi Arabia

Regarding the connection between Bahrain and Saudi Arabia, Al Khalifa explained that the King Hamad Bridge project includes road lanes and railway lines, enabling the international passenger station in Bahrain to connect with the Saudi railway network and forming one of the essential components for completing the Gulf interconnection.

He added that work is underway on the privatization procedures for the King Fahd Causeway Authority, alongside completing the necessary studies and procedures to transition to the execution of the new bridge project.

Achieving the connection between Bahrain and Saudi Arabia is a fundamental requirement for operating the railway line between the two countries within the project's targeted timeframe in December 2030,e he said.


Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
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Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)

Egypt aims to accelerate energy projects with Libya, including gas pipeline links, refining of Libyan crude in Egypt and an electricity interconnection, Egyptian Foreign Minister Badr Abdelatty said late on Saturday.

Abdelatty's comments were in ‌a ministry ‌statement after a meeting ‌with ⁠Libya’s acting oil ⁠and gas minister Khalifa Abdulsadek in Tripoli.

Abdelatty also ‌called for cooperation on petroleum products and the completion of projects to refine Libyan ‌oil in Egypt and re-export it, the statement said, ⁠adding ⁠that Abdulsadek had said that Libya would continue implementing existing projects and would visit Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

The statement did not provide details on costs or the status of the projects.


GCC: Railway Agreement Sets Joint Framework for Project Implementation and Operation

GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
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GCC: Railway Agreement Sets Joint Framework for Project Implementation and Operation

GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)

Jasem Albudaiwi, secretary-general of the Gulf Cooperation Council (GCC), said on Sunday that the signing of the General Agreement on the GCC Railway Project marked an important step toward establishing an integrated regional transport network.

He said the network would facilitate the movement of citizens and residents, ease freight transport, boost intra-GCC trade efficiency and strengthen member states’ economic competitiveness and the region’s position in regional and international trade.

Albudaiwi's remarks came at the signing ceremony in the Bahraini capital, Manama, on Sunday, held under the patronage and in the presence of Bahrain’s Crown Prince and Prime Minister Salman bin Hamad Al Khalifa.

He said the project reflected the GCC’s shared ambition to connect member states and improve mobility and trade by linking their economic and industrial hubs, ports and logistics centers.

He added that the project would create opportunities for safe, reliable, affordable and environmentally friendly transport services that meet development needs, serve the aspirations of future generations and strengthen economic integration among GCC states.

Albudaiwi said the agreement sets a common framework for member states to implement and operate the project in coordination with their national railway networks, while establishing mechanisms and a timetable to accelerate its completion.

Albudaiwi praised GCC leaders and transport ministers for their support of strategic regional projects, thanking Bahrain’s crown prince and prime minister for hosting the signing ceremony and officials for advancing the railway project.