Israeli PM Approves 50 Mln Cubic Meters Sale of Water to Jordan

Israeli Prime Minister Naftali Bennett (AP)
Israeli Prime Minister Naftali Bennett (AP)
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Israeli PM Approves 50 Mln Cubic Meters Sale of Water to Jordan

Israeli Prime Minister Naftali Bennett (AP)
Israeli Prime Minister Naftali Bennett (AP)

Israel’s newly-elected Prime Minister Naftali Bennett approved the immediate sale of 50 million cubic meters of water to Jordan, to be followed by another 50 million next year, in a step to improve relations with Amman.

Bennett's spokesman said that Jordan might potentially get the same amount of water for the next five years and the Israeli National Security Council would discuss the matter each year separately.

Political sources in Tel Aviv noted that the Biden administration was active in applying pressure on Israel to agree to Jordan’s request, to improve recently-soured relations between the two countries.

Bennett wanted to put an end to the tense bilateral relations, which Netanyahu is accused of sabotaging.

Israel supplies Jordan with about 55 million cubic meters of water annually, according to the peace agreement signed between the two in 1994. However, Jordan's water needs to be increased significantly after the influx of about three million refugees from Iraq and Syria.

Israel increased the quantities of water according to Jordanian demand, and Jordan paid 40 cents per cubic meter, four times the regular price.

However, political relations between the two countries became tense in 2017, following the tensions in East Jerusalem and al-Aqsa Mosque, which Netanyahu used as a tool of pressure.

The former PM refused Jordan's requests for additional water supplies, and earlier this year, tensions heightened after Israel imposed impossible conditions on the Jordanian Crown Prince's visit to Jerusalem, prompting him to cancel the trip.

Jordan responded by delaying an order to allow Netanyahu's plane to pass over Jordanian airspace, on its way to the UAE. Netanyahu was forced to cancel his trip.

Last April, Netanyahu backed down and agreed to provide Jordan with additional water. But the deal was not completed and was transferred to the new Israeli government.

Bennett approved the additional quantities, saying his approval was based on the position of the professional officials in the Israeli Water Authority, who confirmed that the situation in the Sea of ​​Galilee allowed the request to be met.

He explained that Jordan will pay the full price for the water, and that "this kind gesture will not cost the Israeli taxpayer anything."



Saudi Arabia's Real Estate Sector Sees Positive Growth Driven by Changing Economic Factors

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Arabia's Real Estate Sector Sees Positive Growth Driven by Changing Economic Factors

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Saudi Arabia's real estate sector is experiencing positive growth driven by significant social and economic changes in the Kingdom, according to a recent report by S&P Global.

“Significant social and economic changes are making the Kingdom a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing,” the report said.

However, S&P Global noted that Saudi Arabia’s retail landscape is expected to face several challenges, including oversupply.

“Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh’s supply to grow by 50% by 2027 and Jeddah’s to grow 75% over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,” said S&P Global.

In a broader context, the report cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the level of investment and spending in the region, particularly that Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices.

In the Emirates, S&P projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings.

Dubai’s commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6%, and demand for grade-A offices drives up rentals, S&P Global said.

“Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city’s attractiveness for global businesses and family offices,” said the report.

Despite the positive outlook, the report mentioned challenges linked to the escalated and prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.

Also, it said consumer trends are shifting towards innovative shopping experiences and new brands, which may pose challenges to traditional shopping malls.

The report also noted that while the luxury goods sector benefits from sustained high-end spending, broader consumer budgets are strained by economic uncertainty, high interest rates, and inflation.