KAUST President to Asharq Al-Awsat: We Are Extracting Lithium from Sea Water to Make Batteries

Saudi KAUST University uses saline water to grow crops through the Red Sea Farms project. (Asharq Al-Awsat)
Saudi KAUST University uses saline water to grow crops through the Red Sea Farms project. (Asharq Al-Awsat)
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KAUST President to Asharq Al-Awsat: We Are Extracting Lithium from Sea Water to Make Batteries

Saudi KAUST University uses saline water to grow crops through the Red Sea Farms project. (Asharq Al-Awsat)
Saudi KAUST University uses saline water to grow crops through the Red Sea Farms project. (Asharq Al-Awsat)

Professor Tony Chan, President of King Abdullah University of Science and Technology (KAUST), revealed tangible success in transforming research and studies conducted at the university into real-world inventions.

This led to the inclusion of KAUST on the list of research universities that were able to export technology outside its geographical borders, he underlined.

In an interview with Asharq Al-Awsat, Chan pointed to the most prominent innovative technologies produced at the university, including the use of saline water to grow high-quality agricultural crops and the extraction of lithium – a key element in the making of batteries - from the Red Sea water, a discovery that prompted major countries, such as China and the United States, to express a desire to know more about the invention.

Asked about KAUST’s contribution to the Saudi economy, Chan replied: “KAUST has two missions: The first is related to basic research and university education, while the other is related to economics, development and innovation.”

“Part of our job is to contribute to the economy. We do this in a variety of ways, the most important of which is that we educate and train students, who will later contribute to the economy.”

He continued: “For example, many KAUST graduates work in the Kingdom for companies such as Aramco. More importantly, almost 30 percent of the international students graduating from our university stay in the Kingdom, working for companies there or setting up their own, which is really amazing.”

Chan emphasized that part of the university’s efforts is also to try to foster innovation and develop an economic system. He stressed in this regard the presence of a private fund to support students’ startups.

“The other part is related to environmentally friendly projects… KAUST has succeeded in placing Saudi Arabia on the global map of the environmental field through its academic research,” he added.

On KAUST’s contribution to giant Saudi projects, Chan said: “We have many research projects, as we cooperate with NEOM to build the largest coral garden in the world on the island of Shusha, which is part of NEOM.”

He added that KAUST had technology and scientific knowledge that qualifies it to implement this project, including a field called “marine architecture” that is specialized in the cultivation of coral reefs.

“NEOM represents new energy versus conventional energy,” Chan explained. “Here, I refer to the second initiative that emerged from the G20 Summit 2020 hosted by Saudi Arabia, which is related to the preservation and restoration of coral reefs in the deep seas and oceans at the global level. KAUST hosts the headquarters of this initiative.”

Chan also talked about the Red Sea Farms, a company that was established within KAUST as a startup, and now has turned into a large company that develops technologies to irrigate plants from sea water and to mitigate the impact of greenhouse gas emissions.

“The founder of the company is Prof. Mark Tester. All of his work took place in a small experimental station inside KAUST; but today, the company is operating at the commercial and investment levels,” he remarked.

Chan revealed that tomatoes, which are produced through this innovative technology, are exported to the United States.

“We are very proud of this achievement… It’s an evolution that took place within KAUST,” he told Asharq Al-Awsat.

Asked about Saudi Arabia’s renewable energy wealth, the president of KAUST emphasized the importance of solar energy, saying that relying on oil was needed during the transitional period.

“[The Kingdom] will still need to rely on oil during the transition period from traditional energy sources to new ones. I don’t know if that will happen within 20 to 50 years, but I think that Saudi Arabia, on its part, realizes this. There are countries around the world, such as European nations, which have imposed bans on internal combustion engines,” he said.

He continued: “Within NEOM, there are attempts to fully rely on sustainable energy.”

“Nevertheless, oil constitutes a large part of the Saudi economy. Saudi Arabia has the sun and solar energy, and in order to exploit it, it needs devices that are characterized by a large degree of efficiency to collect this energy, as well as a high level of quality. It also needs to protect the solar panels from dust.”

Chan explained that when dust builds up on the solar panels, their efficiency declines.

“Today, we already have startups in the field of cleaning, using the NOMADD technology that has been available for a few years (automatic water-free dust removal device),” he said.

Regarding wind energy, he noted that NEOM enjoyed a lot of wind energy coming from the Red Sea and the currents that come from Africa.

“The sun and wind complement each other,” he added. “The wind comes when the sun is not shining, that is, at night, as a result of a change in temperature. But wind is an unstable source.”

Chan noted that the use of batteries is a solution to the problem.

“At KAUST, we invented a new method for extracting lithium from the sea a few months ago. There is a lot of interest in this innovation from entities such as Maaden, the mining company, as well as other government entities, including China and the United States,” he told Asharq Al-Awsat.

On Artificial Intelligence, Chan revealed that KAUST works in partnership with SDAIA (the Saudi Authority for Data and Artificial Intelligence) and also cooperates with Aramco, pointing to the establishment of the KAUST Artificial Intelligence Center for this purpose.

“When looking at the classification of Saudi Arabia in this field at the global level, we find that it occupies the 20th position. Eighty percent of all research papers in the field of artificial intelligence in Saudi Arabia come from KAUST. We are fortunate that we have the right people who provide the right research. This is certainly positive for society and the economy,” he stressed.



IMF Cuts 2026 Euro Zone Growth Forecast with Higher Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
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IMF Cuts 2026 Euro Zone Growth Forecast with Higher Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo

The International Monetary Fund cut its growth forecast for the euro zone on Thursday and raised its expectation for inflation because of the US-Israeli war on Iran, adding that the economic situation could worsen if high energy prices persisted.

In its regular report on the economy of the 21 countries that share the euro currency, the IMF said economic growth this year would be 0.9%, down from ⁠1.1% forecast in ⁠April while inflation would be 2.8%, up from 2.6% forecast in April.

The IMF's had already revised down its euro zone growth forecast in April from its January prediction.

"Following a period of growth at potential and inflation on target, the euro area outlook has weakened," the IMF said in a report presented to ⁠euro zone finance ministers, referring to the war in the Middle East as a "large but temporary adverse supply shock."

"An even more persistent energy shock could raise inflation and inflation expectations further, even as a drop in confidence or financial stress could weaken demand. A resurgence of the conflict in the Middle East or delays in repairing energy infrastructure, intensified hostilities in Ukraine, and further trade policy adjustments pose additional downside risks," Reuters quoted it as saying.

The IMF said the European Central Bank, which earlier on Thursday raised interest rates for ⁠the first ⁠time in nearly three years, was likely to raise rates again for a cumulative 50 basis points increase in 2026, with a third rate rise also possible.

The IMF warned euro zone finance ministers against rushing to cushion their economies against the impact of high energy costs. "Broad-based fiscal support is not warranted," it said.

Many euro zone members had already introduced measures, averaging around 0.1 percent of GDP across the EU on a GDP-weighted basis as of May 2026.

It said, despite their limited scale so far, the measures likely blunted incentives for energy conservation and that future measures should targeted more to protect vulnerable households.


Egypt Signs Deal to Transfer Shares in Wataniya 172 Fuel Stations to Taqa Arabia

Egyptian Prime Minister Mostafa Madbouly. Reuters file photo
Egyptian Prime Minister Mostafa Madbouly. Reuters file photo
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Egypt Signs Deal to Transfer Shares in Wataniya 172 Fuel Stations to Taqa Arabia

Egyptian Prime Minister Mostafa Madbouly. Reuters file photo
Egyptian Prime Minister Mostafa Madbouly. Reuters file photo

Egypt signed an agreement on Thursday with Taqa Arabia to transfer ownership of a stake in 172 state-owned Wataniya fuel stations through a newly established company, Quick Fuel, according to a ⁠cabinet statement.

Under the ⁠agreement, Taqa Arabia will acquire a 10% stake in Quick Fuel and will also have ⁠the option to acquire an additional 15% stake when the company is listed on the Egyptian stock exchange, Reuters reported.

Egypt said last year it would offer stakes in military-owned companies, which included Wataniya Petroleum, through ⁠its ⁠sovereign wealth fund.

The IMF has made increasing the role of the private sector in the economy a requirement for Egypt's $8 billion loan program.


Hormuz Shock Hits Gulf Economies, Saudi Arabia Takes Center Stage in 2026

 In this picture obtained from Iran's ISNA news agency on June 8, 2026, residents take a dip as cargo and commercial vessels lie at anchor in the Strait of Hormuz off Bandar Abbas. (Photo by Amirhossein KHORGOOEI / ISNA / AFP) /
In this picture obtained from Iran's ISNA news agency on June 8, 2026, residents take a dip as cargo and commercial vessels lie at anchor in the Strait of Hormuz off Bandar Abbas. (Photo by Amirhossein KHORGOOEI / ISNA / AFP) /
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Hormuz Shock Hits Gulf Economies, Saudi Arabia Takes Center Stage in 2026

 In this picture obtained from Iran's ISNA news agency on June 8, 2026, residents take a dip as cargo and commercial vessels lie at anchor in the Strait of Hormuz off Bandar Abbas. (Photo by Amirhossein KHORGOOEI / ISNA / AFP) /
In this picture obtained from Iran's ISNA news agency on June 8, 2026, residents take a dip as cargo and commercial vessels lie at anchor in the Strait of Hormuz off Bandar Abbas. (Photo by Amirhossein KHORGOOEI / ISNA / AFP) /

The global economy is entering an extremely sensitive phase in 2026 amid escalating geopolitical tensions in the Middle East, which have cast a heavy shadow over the fragile global recovery and reshaped the global credit and financial landscape.

At the heart of these turbulent developments, Gulf Cooperation Council economies find themselves directly confronting the fallout from disruptions in energy markets and supply chains resulting from the effective closure of the Strait of Hormuz, according to the World Bank. While this shock has placed the region’s growth under severe pressure, pushing overall growth rates toward near-zero levels, Saudi Arabia has emerged as the strongest expected economic performer among its neighbors, supported by financial buffers and flexible logistical capabilities that have strengthened its ability to contain the impact of the current crisis.

According to the World Bank Group’s June Global Economic Prospects report, rising inflationary pressures, higher energy prices, and tighter monetary policies are driving global growth to lower levels. These combined factors have led the bank to lower its global growth forecast for 2026 to 2.5 percent, compared with about 2.9 percent in 2025, marking a path below its previous January forecast of 2.6 percent.

The crisis has placed two-thirds of the world’s economies under downward revisions, amid stark warnings of a darker global economic scenario known as “fuel and financing stress,” which could push growth down to 1.3 percent if supply disruptions worsen and are accompanied by acute financial pressures. Estimates point to a partial recovery in 2027 to 2.8 percent, although that would remain below the average of the previous decade.

King Fahd Industrial Port in Yanbu, Saudi Arabia (SPA)

Energy Markets, Inflation, and the Impact of Hormuz

Energy markets are at the center of the crisis, having been directly affected by geopolitical developments, particularly the closure of the Strait of Hormuz, which has led to severe disruptions in global supplies.

The World Bank expects Brent crude to average about $94 per barrel in 2026, representing an increase of roughly 36 percent compared with 2025, provided disruptions subside by July.

The repercussions are not limited to oil. Fertilizer prices are also expected to rise, increasing pressure on global food prices and pushing global inflation to around 4 percent, compared with 3.3 percent in 2025, with the possibility of reaching 4.4 percent under the worst-case scenario.

Gulf and Middle East Economies on the Front Line

Saudi Arabia’s economic leadership in the latest June update was not unexpected. Figures published in the World Bank’s April report indicate that the Kingdom has not only succeeded in building solid “economic buffers” but has also turned current geopolitical challenges into an opportunity to accelerate structural adjustment, reflected in growth of 3.1 percent.

The updated estimates and figures released today reinforce that outlook and underscore this structural advantage. The World Bank revealed figures reflecting the depth of the regional shock as follows:

  • Middle East and North Africa growth declines: The bank expects overall growth in the region to fall sharply (excluding Iran due to exceptional uncertainty) to just 1.6 percent in 2026, compared with about 4 percent in 2025, representing a severe downward revision of 2.7 percentage points from last January’s forecast.
     
  • Near paralysis across Gulf and regional economies: Perhaps the bleakest indicator in the June report is the decline in overall growth among oil-exporting economies in the Middle East to just 0.3 percent in 2026, a downward revision of 4.3 percentage points from January’s forecast. This reflects disruptions to production and export lines. The figure marks a significant deepening of the shock compared with the bank’s April report, which had lowered regional growth forecasts at the time to 1.3 percent from an earlier projection of 4.4 percent. Current estimates show Gulf economies collectively slowing from 3.9 percent growth in 2025 to levels that constrain economic activity and approach zero in 2026, before rebounding toward recovery at around 5 percent in 2027 and 2028, driven by a recovery in trade flows and the launch of reconstruction projects.

Vessels are anchored in the Strait of Hormuz, as seen from Musandam, Oman, June 10, 2026. REUTERS/Stringer

The Geopolitical Structure Behind Diverging Performance

The World Bank attributed the sharp divergence in performance among Middle Eastern oil exporters to varying degrees of exposure to military activity and differences in policy buffers. The report noted that the slowdown would be less severe in Saudi Arabia due to its strategic ability to reroute oil exports away from logistical disruption through the East-West Pipeline leading to the Red Sea.

In a related context, the bank expects a more moderating slowdown in Oman, as it faces lower direct risks because its main ports lie outside the closed Strait of Hormuz. By contrast, the report links the sharp contraction in the economies of Kuwait, Qatar, and Iraq to a forced decline in oil production resulting from damage to energy infrastructure and the suspension of shipping through the strait, alongside surging shipping costs and rising defense and military spending pressures on government budgets.

Performance Across Gulf States

The updated estimates reinforce the figures anticipated by the World Bank in its April report regarding the performance gap among countries in the region as follows:

  • Saudi Arabia: Despite the World Bank deepening its downward revisions for the region as a whole in June to 1.6 percent due to the Hormuz shock, the Kingdom maintained its position as the region’s top performer. Growth is expected to reach 3.1 percent in 2026, down 1.2 percentage points from January estimates because of energy market conditions, before rebounding strongly to 4.9 percent in 2027.
     
  • United Arab Emirates: Growth expectations have been revised down by 2.7 percentage points since January. Growth is now expected to slow from 5 percent in 2025 to 2.4 percent in 2026, before rising again to 4.1 percent in 2027.
     
  • Qatar: Growth expectations for the Qatari economy have fallen sharply by 11.0 percentage points since January. The economy is now expected to contract by 5.7 percent, compared with previously projected positive growth of 5.3 percent, due to severe damage to liquefied natural gas supplies. Qatar is a key player in the global energy market, accounting for between 20 percent and 21 percent of global LNG supplies. The World Bank expects Qatari growth to rebound to 5.7 percent.
     
  • Kuwait: The economy is expected to contract by 6.4 percent, compared with a growth forecast of 2.6 percent in January. Kuwait relies entirely on the Strait of Hormuz to export its crude oil and petroleum products. The closure of the strait therefore means a complete shutdown of the country’s financial lifeline, immediately halting budget revenue inflows. The World Bank expects Kuwait’s economic growth to surge to 13.5 percent in 2027.
     
  • Bahrain: Growth expectations have been revised down by 1.8 percentage points since January. Growth is now expected to slow from 3.1 percent in 2025 to 1.3 percent in 2026 before rising again to 2.8 percent in 2027.
     
  • Oman: Growth expectations for Oman’s economy have been revised down by 1.2 percentage points since January. Growth is now expected to slow from 3.6 percent in 2025 to 2.4 percent in 2026 before increasing to 3 percent in 2027.

Perhaps the greatest shock lies in the freefall of the Iraqi economy, with growth expectations plunging from 6.5 percent to a steep contraction of 8.9 percent.

Egypt Defies the Downward Trend

In contrast to the sharp contraction affecting the budgets of oil-producing Gulf states, the World Bank raised its forecast for Egypt’s economic growth by 0.3 percentage points to 4.6 percent in 2026, before easing to 4 percent in 2027.

This relative recovery is attributed to Egypt’s logistical and geographic advantages, as a significant share of international trade and supply chains shifts toward alternative routes through the Red Sea and the Suez Canal to avoid disruption caused by the closure of the Strait of Hormuz. The diversity of Egypt’s economy and its lack of direct dependence on Gulf oil exports have also helped shield it from the immediate shock, alongside recent inflows of foreign direct investment and international support packages that have provided strong foreign-currency liquidity and enhanced the resilience of non-oil activity and domestic demand against geopolitical headwinds.

Diverging Outlooks

At the regional level, the data show varying performance across global regions. South Asia remains the fastest-growing region despite slowing to 6.3 percent, while growth in East Asia is projected at 4.2 percent and Sub-Saharan Africa at 4 percent.

Latin America is expected to grow by 2.2 percent, followed by Europe and Central Asia at 2.1 percent. Meanwhile, the Middle East and North Africa region is more heavily affected by the conflict, with growth slowing to 1.6 percent in 2026 before recovering to 5 percent in 2027.

Commenting on these difficult developments, World Bank Group President Ajay Banga said the greatest challenge facing governments today is achieving a careful balance between protecting current financial stability and preserving future growth opportunities.

Banga said the World Bank is working intensively to support affected countries through liquidity tools and emergency financing, while remaining fully prepared to provide additional support packages should the crisis worsen, with the aim of helping economies overcome the structural shock to energy markets and strengthen their capacity for sustainable recovery.