$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.



Saudi Industry Minister Leads Delegation to K Show 2025 in Germany

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA file)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA file)
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Saudi Industry Minister Leads Delegation to K Show 2025 in Germany

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA file)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef. (SPA file)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef kicked off on Wednesday an official visit to Germany, leading a high-level delegation from the Saudi industrial ecosystem to participate in K Show 2025 — the world’s leading trade fair for the plastics and rubber industries, held in the city of Düsseldorf.

The visit aims to strengthen industrial cooperation between the two countries, exchange expertise with leading industrial nations, and explore opportunities for building effective partnerships that contribute to transferring advanced technologies and attracting quality investments to the Kingdom, in line with the objectives of Saudi Vision 2030, said the Ministry of Industry and Mineral Resources in a statement.

During the visit, Alkhorayef will inaugurate the Saudi pavilion at K Show 2025, which showcases the development of Saudi industry and highlights the investment opportunities available in priority sectors, such as chemical conversion, advanced manufacturing, and other key industrial areas, in addition to the enablers provided to investors.

He will also tour the main pavilions of leading Saudi and international industrial companies, including SABIC and TASNEE, as well as German companies such as AKRO-PLASTIC GmbH, to learn about the latest industrial technologies and global best manufacturing practices.

The minister will co-chair, along with the CEO of Messe Düsseldorf, a high-level roundtable meeting attended by senior executives from major international industrial companies to review promising opportunities in Saudi Arabia’s industrial sector and discuss the Kingdom’s competitive advantages as an attractive investment destination.

Saudi Arabia and Germany enjoy strong economic relations. In 2024, non-oil trade between the two countries amounted to SAR39.07 billion, while German investments in the Kingdom exceeded SAR14.62 billion, reflecting the confidence of German companies in the Saudi investment environment.

The minister’s official visit to Germany and the Kingdom’s participation in K Show 2025 aim to strengthen international industrial partnerships, exchange expertise, promote knowledge and technology transfer, attract quality investments, and reinforce the Kingdom’s position as a leading global industrial hub.


Riyadh Air Announces Inaugural Flights to London on October 26, Unveils ‘Sfeer’ Loyalty Program

Starting October 26, Riyadh Air will operate daily flights between Riyadh and London Heathrow using its Boeing 787-9 aircraft, named “Jamila.” (SPA)
Starting October 26, Riyadh Air will operate daily flights between Riyadh and London Heathrow using its Boeing 787-9 aircraft, named “Jamila.” (SPA)
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Riyadh Air Announces Inaugural Flights to London on October 26, Unveils ‘Sfeer’ Loyalty Program

Starting October 26, Riyadh Air will operate daily flights between Riyadh and London Heathrow using its Boeing 787-9 aircraft, named “Jamila.” (SPA)
Starting October 26, Riyadh Air will operate daily flights between Riyadh and London Heathrow using its Boeing 787-9 aircraft, named “Jamila.” (SPA)

Riyadh Air, Saudi Arabia’s new national carrier and a Public Investment Fund company, announced on Wednesday the launch of its first daily flights to London Heathrow Airport, starting October 26. The milestone marks a major step toward achieving full operational readiness and delivering world-class travel experiences.

The airline also unveiled its innovative loyalty program, “Sfeer,” designed to offer exclusive benefits to its early founding members and to redefine the future of loyalty in global aviation, said Riyadh Air in a statement.

Starting October 26, Riyadh Air will operate daily flights between Riyadh and London Heathrow using its Boeing 787-9 aircraft, named “Jamila,” currently serving as the airline’s technical spare. In the initial phase, tickets will be available for select passenger groups and Riyadh Air employees as part of a structured operational program to ensure full readiness ahead of receiving its first new aircraft from Boeing, while also utilizing its newly allocated operational slot at Heathrow Airport.

The inaugural flight RX401 will depart King Khalid International Airport in Riyadh at 3:15 a.m. and arrive at London Heathrow at 7:30 a.m. The return flight RX402 will depart London at 9:30 a.m. and arrive in Riyadh at 7:15 p.m.

This operational phase represents a key milestone in Riyadh Air’s journey, which will soon be followed by additional routes, including Dubai, underscoring the airline’s commitment to excellence. Through comprehensive evaluation of the initial “Jamila” flights, the airline is ensuring world-class readiness and service quality ahead of launching new destinations for the Winter 2025 and Summer 2026 seasons.

Commenting on the milestone, Riyadh Air CEO Tony Douglas said: “This is more than just the launch of a route, it is the realization of our vision to connect the Kingdom with the world as a driving force of Saudi Vision 2030.”

“Our commitment to begin operations in 2025 is now taking shape. This carefully planned flight program allows us to perfect every operational detail to ensure a seamless, reliable, and world-class travel experience. We are only steps away from full-scale operations, with more destination launches to be announced in the coming weeks,” he added.

Douglas sressed that the new “Sfeer” program combines the Arabic meaning of “Ambassador” with the English word “Sphere,” symbolizing global connection. “Sfeer” enables members to embody Saudi hospitality and represent Riyadh Air internationally. It introduces a unique, community-driven approach to loyalty programs that blends social engagement with innovative digital experiences, allowing members to explore the best of Saudi Arabia.

A distinctive feature of “Sfeer” is its ability to allow members to share Level Points with family and friends, helping them reach higher membership tiers together.

Registration is now open on Riyadh Air’s official website, where early registrants will be granted “Founding Member” status, gaining early access to bookings on Riyadh Air’s first flights and additional exclusive benefits to be announced soon.

The innovative design of “Sfeer” centers on community, enabling members to soon share their points, rewards, and qualified spending with family and friends, reflecting Saudi generosity and collective spirit. By 2026, once fully activated, “Sfeer” will introduce interactive digital challenges, leaderboards, and a “no points expiry” policy, representing a true embodiment of Saudi generosity.

Joining “Sfeer” today grants members immediate benefits and positions them at the forefront of Riyadh Air’s journey. Founding members will enjoy priority booking when commercial flights open for sale and exclusive invitations to special events and experiences.

Over the coming months, all members will have access to unique activities and partnerships with local and international entities, including culinary and entertainment experiences, and opportunities to win free flights and valuable prizes.


IMF Chief Says Global Economy Doing ‘Better than Feared,’ Risks Remain

International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers a speech at the Milken Institute in Washington, DC USA, 08 October 2025. (EPA)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers a speech at the Milken Institute in Washington, DC USA, 08 October 2025. (EPA)
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IMF Chief Says Global Economy Doing ‘Better than Feared,’ Risks Remain

International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers a speech at the Milken Institute in Washington, DC USA, 08 October 2025. (EPA)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers a speech at the Milken Institute in Washington, DC USA, 08 October 2025. (EPA)

The world economy has proven more resilient than expected despite acute strains from multiple shocks, the head of the International Monetary Fund said on Wednesday, forecasting only a slight slowing of global growth this year and in 2026.

IMF Managing Director Kristalina Georgieva said the US economy had dodged a recession feared by many experts just six months ago.

The US economy and many others had held up, given better policies, a more adaptable private sector, less severe import tariffs than feared - at least for now - and supportive financial conditions, according to a text of her remarks to an event at the Milken Institute in Washington.

"We see global growth slowing only slightly this year and next. All signs point to a world economy that has generally withstood acute strains from multiple shocks," Georgieva said in a preview of the IMF's upcoming World Economic Outlook.

In July, the IMF raised its global growth forecast by 0.2 percentage point to 3.0% for 2025 and by 0.1 percentage point to 3.1% for 2026. It will release a fresh outlook next Tuesday during the annual meetings of the IMF and World Bank in Washington.

The gathering takes place at a time when US President Donald Trump has upended global trade with steep tariffs and cracked down on immigration, and artificial intelligence is rapidly transforming technology and the outlook for labor.

The world economy is doing "better than feared, but worse than needed," Georgieva said, noting that the IMF was forecasting global growth of roughly 3% over the medium-term, well below the 3.7% forecast before the COVID-19 pandemic.

Georgieva cited deep undercurrents of marginalization, discontent and hardship around the world, and said the global economy faced an array of risks.

Uncertainty is at exceptionally high levels and continuing to climb, while demand for gold - a traditional safe-haven asset for investors - is surging, Georgieva said, adding that holdings of monetary gold now exceeded 20% of the world's official reserves.

The US tariff shock has been less severe than initially announced in April, with the US trade-weighted tariff rate now around 17.5%, down from 23% in April, and countries largely skipping retaliatory tariffs.

But US tariff rates keep changing, and US inflation could rise if companies started to pass through more of the cost of tariffs, or if a flood of goods previously headed for the US triggered a second round of tariff hikes elsewhere.

Financial market valuations are also heading toward levels last seen during the internet-related bullishness 25 years ago, she said. An abrupt shift in sentiment - such as what happened during the dot.com crash of March 2000 - could drag down world growth, making life especially tough for developing countries.

"Buckle up," Georgieva said, adding, "Uncertainty is the new normal and it is here to stay."

GEORGIEVA WARNS ON DEBT LEVELS

The IMF chief urged countries to durably lift growth by boosting private-sector productivity, consolidating fiscal spending and addressing excessive imbalances, allowing them to rebuild their buffers to prepare for the next crisis.

Global public debt is expected to exceed 100% of GDP by 2029, Georgieva said.

Competition is key, along with free-market-friendly property rights, rule of law, strong financial sector oversights and accountable institutions.

In Asia, countries need to deepen trade and carry out reforms to strengthen the service sector, Georgieva said. A push to lower non-tariff barriers and boost regional integration could lift gross domestic product by 1.8% in the long run.

In Sub-Saharan Africa, business-friendly reforms could boost the real GDP per capita of the median African country by more than 10%. Europe should forge ahead with building a single market, which could help it catch up with the dynamism of the US private sector, she said.

The US should take "sustained action" to lower its federal debt, with the debt-to-GDP ratio on track to exceed its all-time high after World War Two, Georgieva said. It should also work to boost household saving, such as through favorable treatment of retirement savings.

China also has work to do, including boosting fiscal spending on social safety nets and property sector clean-up, while cutting spending on industrial policy initiatives, she said.