IMF Warns: MENA Region Faces 4 Challenges

International Monetary Fund Managing Director Kristalina Georgieva speaks at a news conference during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Thursday, April 13, 2023. (AP)
International Monetary Fund Managing Director Kristalina Georgieva speaks at a news conference during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Thursday, April 13, 2023. (AP)
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IMF Warns: MENA Region Faces 4 Challenges

International Monetary Fund Managing Director Kristalina Georgieva speaks at a news conference during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Thursday, April 13, 2023. (AP)
International Monetary Fund Managing Director Kristalina Georgieva speaks at a news conference during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Thursday, April 13, 2023. (AP)

Growth of the real GDP in the Middle East and North Africa (MENA) region is projected to slow this year to 3.1 percent from 5.3 percent in the previous year, announced Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), Jihad Azour.

Azour added that inflation is forecast to remain unchanged at around 15 percent this year before declining modestly in 2024.

In a videoconference attended by Asharq Al-Awsat, Azour explained that the MENA countries face four challenges this year, which are dealing with the effects of inflation, global uncertainty, international financing difficulties, and economic reform developments.

Azour explained that dealing with inflation may require increasing interest rates, which affects economic growth. At the same time, uncertainty and geopolitical tensions pervade all global horizons, and their consequences fall on everyone's shoulders.

Concerning oil-importing countries, the rise in energy prices increases the risks, especially with the increase in the cost of financing and the difficulty in obtaining it. As for the oil-exporting countries, the most critical challenge is growing and diversifying revenues.

Meanwhile, Italian Foreign Minister Antonio Taiani said Thursday that his country wants the IMF to start disbursing a loan to Tunisia without conditions.

During a press conference with his Tunisian counterpart, Tajani vowed to work on Tunisia's behalf in negotiations with the IMF, repeating Italy's proposal that the loan be delivered in two tranches and not be fully dependent on all reforms being in place.

"But not utterly conditional on... the conclusion of the reform process. Start financing, encourage the reforms," he told reporters.

Last week, President Kais Saied rejected IMF "diktats", which asked Tunisia to carry out economic reforms and subsidy cuts as terms for the stalled bailout.

Saeed said he would "not hear diktats" from abroad, warning that the subsidies could lead to unrest.

European leaders feared the collapse of the Tunisian economy could increase the influx of immigrants to European shores.

Tunisia's debts amount to about 80 percent of its gross domestic product, and it reached a preliminary agreement with the Fund in mid-October for a new $1.9 billion loan to help overcome the financial crisis.

However, talks reached a dead end after Tunisia failed to implement a reform program to restructure more than 100 indebted state-owned companies and lift subsidies on some essential goods and services.



Saudi Arabia, Spain Sign Business Deals to Boost Bilateral Investment

Minister of Economy and Planning Faisal Alibrahim speaks to attendees at the Saudi-Spanish Business Forum (Asharq Al-Awsat). 
Minister of Economy and Planning Faisal Alibrahim speaks to attendees at the Saudi-Spanish Business Forum (Asharq Al-Awsat). 
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Saudi Arabia, Spain Sign Business Deals to Boost Bilateral Investment

Minister of Economy and Planning Faisal Alibrahim speaks to attendees at the Saudi-Spanish Business Forum (Asharq Al-Awsat). 
Minister of Economy and Planning Faisal Alibrahim speaks to attendees at the Saudi-Spanish Business Forum (Asharq Al-Awsat). 

Saudi Arabia and Spain have signed four new private-sector agreements aimed at expanding bilateral investment and economic cooperation, as more than 300 officials and investors from both countries convened in Riyadh for the Saudi-Spanish Business Forum on Thursday.

The event, organized by the Federation of Saudi Chambers in collaboration with the Saudi Ministry of Economy and Planning and the Ministry of Investment, highlighted investment opportunities, sectoral cooperation, and the Kingdom’s efforts to diversify its economy under Vision 2030.

Saudi Minister of Economy and Planning Faisal Alibrahim emphasized that non-oil investments in the Kingdom have increased by 70% since the launch of Vision 2030. He noted that for the first time in the country’s history, non-oil sectors contributed 54.8% to GDP in 2024.

“Saudi Arabia is advancing toward a knowledge-based economy,” Alibrahim said, adding that over 900 economic reforms have helped attract investors and improve the business environment. More than 36,000 business licenses have been issued and over 6,000 companies established since the Vision’s inception.

Alibrahim noted that over $3 billion in Spanish investment has flowed into Saudi Arabia over the past three decades, with more than 200 Spanish companies operating in sectors such as healthcare, agriculture, technology, and real estate. He invited Spanish firms to take part in what he called the “second chapter” of bilateral economic cooperation, particularly in fields like renewable energy, digital technologies, tourism, and logistics.

Spanish Minister of Economy, Trade and Business Carlos Cuerpo praised Saudi Arabia as Spain’s most strategic partner in the region, noting a 57% increase in Spanish corporate presence in the Kingdom over the past three years. He said Spain is well-positioned for deeper engagement, particularly in tourism, renewable energy, and artificial intelligence.

Khalid Al-Hogail, Chairman of the Saudi-Spanish Business Council, underscored the longstanding ties between the two nations, which began with the first Spanish investment license in 1972. He noted that in just the last three years, the number of Spanish companies licensed in Saudi Arabia has doubled to 245.

He said the goal is to make Saudi Arabia and Spain among each other’s top 10 trading partners. The Kingdom’s major projects—including Expo 2030 and the 2034 FIFA World Cup—offer Spanish firms multibillion-dollar opportunities in construction, transport, defense, tourism, and sports.

The agreements signed during the forum include cooperation in water infrastructure, real estate development, transport technologies, and telecommunications.

Al-Hogail stressed that both nations are committed to further developing trade and investment ties in key sectors including energy, logistics, food, and tourism.