$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.



Riyadh and New Delhi to Promote Roadmap for Economic, Investment Cooperation

Crown Prince Mohammed bin Salman received the Prime Minister of India Narendra Modi last April in Jeddah. (SPA)
Crown Prince Mohammed bin Salman received the Prime Minister of India Narendra Modi last April in Jeddah. (SPA)
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Riyadh and New Delhi to Promote Roadmap for Economic, Investment Cooperation

Crown Prince Mohammed bin Salman received the Prime Minister of India Narendra Modi last April in Jeddah. (SPA)
Crown Prince Mohammed bin Salman received the Prime Minister of India Narendra Modi last April in Jeddah. (SPA)

India and Saudi Arabia are working diligently to establish a joint roadmap for fostering a dynamic partnership aiming at enhancing economic, investment, and trade cooperation between the two countries.

Ambassador of India to the Kingdom of Saudi Arabia, Dr. Suhel Ajaz Khan, said in an interview with Asharq Al Awsat on Monday that Saudi Arabia is one of India’s most trusted and valued strategic partners. He said the ties between the two countries are “rooted in a rich tapestry of civilizational, cultural, and commercial connections that date back centuries.

“In recent years, the relationship has grown exponentially, evolving into a robust Strategic Partnership that spans key sectors — politics, defense, security, trade, investment, energy, technology, health, education, and culture”.

He pointed to the “landmark State Visit of the Honorable Prime Minister to the Kingdom in April 2025 was a true reflection of this deepening bond. The Prime Minister of India and His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia had highly productive engagements in Jeddah, resulting in key outcomes — including the agreement on establishment of two India-Saudi joint venture refineries in India, and MoUs in Health, Postal cooperation, Space cooperation and Sports (anti-doping)”.

“The second leaders meeting of the India-Saudi Arabia Strategic Partnership Council (SPC) was also co-chaired by the two leaders during this visit. The Council reviewed the work of the various committees, subcommittees and working groups under the SPC, which encompass political, defense, security, trade, investment, energy, technology, agriculture, culture and people-to-people ties. The discussions were followed by signing of the minutes by the two leaders. To reflect the deepening of the strategic partnership over the past few years the Council decided to create two new ministerial committees under the SPC; one on Defense Cooperation and another on Tourism and Cultural Cooperation”.

The Ambassador went on to say that “India and Saudi Arabia are not only consolidating a dynamic partnership but also charting a bold vision for the future. Together, we are poised to play a pivotal role in shaping peace, progress, and prosperity at both regional and global levels”.

On the most important areas of economic, investment, and trade cooperation between the two countries, he said: “As the fastest-growing G-20 economies, India and Saudi Arabia are natural economic partners. Our partnership is vital not just for our own prosperity, but also for the resilience and stability of the global economy, particularly at a time of global uncertainty.

“Trade and investment form the economic backbone of our relationship,” he stated, “both countries have built strong institutional frameworks including a Ministerial Committee on Trade, Economy, Investment, and Technology, and a High-Level Task Force on Investment co-chaired by HRH the Saudi Energy Minister and India’s Principal Secretary to the Prime Minister. Our economic visions — Vision 2030 of Saudi Arabia and India’s Viksit Bharat 2047 — complement each other, creating vast synergies for growth”.

On the volume of trade exchange and its growth rate, the Indian Ambassador stated: “India-Saudi Arabia trade has witnessed impressive growth in recent years. In FY 2024–25, bilateral trade touched approximately USD 42 billion. India is now Saudi Arabia’s second-largest trading partner, while the Kingdom ranks fifth for India.

He went on to say: “Trade has diversified significantly. India exports engineering goods, rice, chemicals, vehicles, textiles, food products, and gems & jewelry to the Kingdom. On the other hand, we import crude oil, LPG, fertilizers, plastics, and chemicals from Saudi Arabia. There is a strong momentum to further expand trade — especially in promising sectors like pharmaceuticals, processed food, advanced manufacturing, gems and jewelry, and high-value engineering goods.

“A prospective Free Trade Agreement between India and the GCC would be a game-changer — unlocking even greater potential for trade and investment”.

He noted that “India’s private sector has embraced Saudi Arabia as a hub of opportunity. Indian businesses are actively exploring the Saudi market, especially in light of the transformational opportunities offered under Vision 2030. The number of licensed Indian companies in the Kingdom surged from 400 in 2019 to over 2,900 by 2023, with a large quantum of investments. Many Indian companies have shifted their regional headquarters to Saudi Arabia and a number of them are participating in Iktiva program of Aramco.

“Indian companies are contributing significantly to mega and giga projects under Vision 2030 — spanning civil infrastructure, energy, power transmission, oil & gas, renewable energy, and more. Our technology firms are also playing a central role in the digital transformation of Saudi Arabia. There is increasing interest from Indian businesses in healthcare, pharmaceuticals, hospitality, logistics, mining, minerals, MSMEs, and startups — all sectors vital to both economies' future.

“This is truly a two-way street. Saudi companies too have vast opportunities to invest in India’s transformation into a developed economy — especially in infrastructure, logistics, renewable energy, health, and utilities. Saudi Arabia has committed to investing $100 billion in India. The growing corporate synergy between our two countries will be a cornerstone of the bilateral partnership going forward”.

On the latest developments in the India–Saudi Arabia electricity interconnection project, Dr. Khan said that “Energy has long been a pillar of India–Saudi Arabia relations. As India powers ahead toward becoming a developed economy by 2047, our energy needs will grow — and Saudi Arabia remains a reliable and strategic partner in meeting them. But the future is green. India has set an ambitious target of 500 GW of renewable energy by 2030, and we’re actively collaborating with Saudi Arabia on clean and sustainable energy — including solar, wind, and hydrogen.

“One exciting area of cooperation is electrical grid interconnectivity. An MoU was signed in 2023 on Electrical Interconnections, Green Hydrogen, and Supply Chains, during MENA Climate Week. We’re jointly exploring the technical and commercial viability of connecting our power grids. This initiative also complements the India–Middle East–Europe Economic Corridor (IMEEC) launched in 2023, which envisions a more integrated, sustainable, and secure regional energy network. As we advance, energy connectivity will become a major lever of strategic alignment between our two nations”, he concluded.