$100 Billion Needed Annually to Sustain Infrastructure in MENA Region

An aerial view of the New Administrative Capital east of Cairo (Reuters) and Navid Hanif, Director of Financing for Sustainable Development Office at the United Nations (Asharq Al-Awsat)
An aerial view of the New Administrative Capital east of Cairo (Reuters) and Navid Hanif, Director of Financing for Sustainable Development Office at the United Nations (Asharq Al-Awsat)
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$100 Billion Needed Annually to Sustain Infrastructure in MENA Region

An aerial view of the New Administrative Capital east of Cairo (Reuters) and Navid Hanif, Director of Financing for Sustainable Development Office at the United Nations (Asharq Al-Awsat)
An aerial view of the New Administrative Capital east of Cairo (Reuters) and Navid Hanif, Director of Financing for Sustainable Development Office at the United Nations (Asharq Al-Awsat)

Navid Hanif, Director of Financing for Sustainable Development Office at the United Nations, said that the Middle East and North Africa region would need to spend at least 8.2 percent of GDP to achieve infrastructure goals by 2030.

“With the population of the Middle East and North Africa expected to increase by more than 40 percent over the next few decades, and with increasing industrial demand, the region will need to invest more than $100 billion annually to maintain and build the infrastructure to serve the growing communities and cities,” Hanif told Asharq Al-Awsat.

A World Bank study estimated the investment required for a reliable, strong, secure and resilient infrastructure in the Arab region at up to $100 billion. Conflicts and wars have amplified this need, with the destruction of roads, buildings, and water, electricity and communication networks in a number of countries. Syria, for example, saw the loss of an estimated $117.7 billion in housing and infrastructure in 2017.

Hanif stressed that new investments need to focus on making the infrastructure more resilient. A large part of the Arab region is located in harsh climatic zones, he underlined, noting that the average spending on infrastructure over the past decade has reached just 3 percent of GDP, with financing coming mostly from the public sector.

According to the UN official, global warming is aggravating desertification, water stress, and the rising of sea levels. He added that rainfall has become unstable and climatic disasters, such as droughts and floods, more frequent; thus, endangering life and livelihoods.

This calls for strengthening national and local capacity in managing climate-resistant infrastructure assets, to support sustainable and equitable development, he emphasized.

Moreover, Hanif warned that increasing conflicts in the region were causing physical damage to vital infrastructure for basic services such as water, energy, health care and education.

He stressed that the Arab region faces a huge demand for new and upgraded infrastructure due to the increase in population growth, urbanization and rising inequality.

The UN official added that urban slums were a major challenge in many cities, pointing to poor infrastructure that further marginalizes entire urban and rural communities, which lack access to adequate water and sanitation services, and frequent power rationing.

According to Hanif, these conditions exacerbate the impact of poverty and negatively affect human health, as well as the availability and quality of health care services.

Moreover, poor transportation means and insecure access to energy or telecommunications networks impede entrepreneurship and livelihoods, and limit job opportunities and school enrollment in some areas, especially for girls and women.

The director of the UN Financing for Sustainable Development Office said that the launch of the Arabic version of the United Nations Handbook for Sustainable Development highlighted a wide range of challenges to asset management that fall into several categories, including scarcity of information and lack of clarity of roles, responsibilities and accountability at the government or interagency levels.

Lack of essential materials and equipment, such as storage facilities and technology, can impede asset management, Hanif underlined, pointing to uncertainty about the effects of climate change, public health emergencies and other systemic shocks that affect the design, construction, operation, maintenance, and therefore service delivery of physical assets.

The handbook provides local and national governments with a set of practical tools and includes guidance on how to adapt them to current social, economic and environmental challenges, including climate change and health emergencies, he remarked.



PIF Launches Al Waha, First Saudi-Owned Duty-Free Retailer

PIF Launches Al Waha, First Saudi-Owned Duty-Free Retailer
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PIF Launches Al Waha, First Saudi-Owned Duty-Free Retailer

PIF Launches Al Waha, First Saudi-Owned Duty-Free Retailer

The Public Investment Fund (PIF) announced on Monday the establishment of Al Waha Duty-Free Company (Al Waha), a travel retailer and the first Saudi-owned duty-free operator.

Al Waha, a wholly owned PIF company, will become a leader in travel retail and secure a greater share of passenger spending for the Saudi economy, said PIF in a statement.

Al Waha will develop luxury retail outlets in select locations across the Kingdom and feature a variety of merchandise including unique, high-quality Saudi products. The company will operate its airport outlets on a duty-free basis, and will explore additional travel retail opportunities at land border crossings and seaports, as well as channels such as inflight shopping.

Head of Consumer Goods and Retail in MENA Investments at PIF Majed Al-Assaf said: “By establishing Al Waha as a national travel retail champion, PIF intends to grow the Saudi travel retail industry and further support its ambitions for the tourism sector in Saudi Arabia.”

“Al Waha will offer a distinctive traveler experience across Saudi travel retail touch points through diverse product offerings, a duty-free operation and a superior digital customer journey,” he added.

There is considerable potential for Saudi Arabia to gain a larger share of travel retail spending in the future, and the continued increase in visitors coming to the country - as well as global events being hosted locally - offer new opportunities to generate sustainable travel retail revenues, he remarked.

PIF is unlocking the capabilities of strategic sectors to diversify the Saudi economy, stressed the statement.