Sudan: Breadlines Continue to Grow, Government Expects Solution Soon

A Sudanese man hands a bag of bread to a customer at a bakery in the capital Khartoum, January 5, 2018. (File Photo: AFP)
A Sudanese man hands a bag of bread to a customer at a bakery in the capital Khartoum, January 5, 2018. (File Photo: AFP)
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Sudan: Breadlines Continue to Grow, Government Expects Solution Soon

A Sudanese man hands a bag of bread to a customer at a bakery in the capital Khartoum, January 5, 2018. (File Photo: AFP)
A Sudanese man hands a bag of bread to a customer at a bakery in the capital Khartoum, January 5, 2018. (File Photo: AFP)

The Sudanese government expected to solve the bread crisis in the next three days as people continued to wait in line outside bakeries.

According to official figures, Sudan consumes 2.5 million tons of wheat annually, 800,000 tons of which are produced locally.

The bread crisis has been ongoing for over a month due to the government’s inability to buy essential supplies that meet the basic needs of citizens such as wheat and fuel.

Sudan's ruling National Congress Party (NCP) recently took several measures in the presence of President Omar Hassan al-Bashir to resolve the crisis and end the crisis which threatens the citizens' food security.

NCP’s economic sector formed a committee to study arrangements that ensure the arrival of bread subsidy to its beneficiaries and end subsidized wheat smuggling.

The crisis, which almost led to cases of famine, could diminish within the next 72 hours, according to a source.

The NCP and its economic agencies have begun to prepare a medium-term plan to raise local wheat production and meet all other challenges such as getting fertilizers and pesticides, encouraging farmers to reach self-sufficiency in wheat production and increasing the strategic storage of wheat in the country.

The mills representative indicated that flour was available in bakeries, however, production was affected by the shortage of workers during holidays.

Asharq Al-Awsat toured several bakeries in the neighborhoods of Omdurman in the capital Khartoum where people are still waiting in queues to buy bread. All twenty-eight states of the country are suffering from shortage as bakery owners were forced to cut down on their share of flour by 30 percent in the last period, saying it is barely enough for four days a week.

The Ministry of Finance and Economic Planning announced that it was increasing subsidies of a sack of flour from 100 to 250 Sudanese pounds. Prior to that, a Russian ship loaded with wheat arrived at Port Sudan.

The ministry demanded that bakeries increase their daily production to exceed 100,000 sacks to cover the needs of the capital and other states.

Security authorities and popular forces called for taking precautions to maintain the subsidized wheat and prevent smuggling.

The government is also in dispute with the country’s largest flour supplier Sayga Flour Mills, owned by prominent businessman Osama Daoud, according to sources at the Sudanese companies that import flour.

Added to the exacerbating flour crisis is a shortage of foreign exchange currency at the Central Bank of Sudan, which recently had to borrow from some commercial banks to cover the country's needs.

Sudan’s Bakeries Union announced that bakeries received their flour quota, which indicates the crisis will be over soon. In the statement, the Union’s Sec-Gen Badreldin El-Jalal urged authorities to overcome the obstacles facing 42 mills in Khartoum to cover the state’s needs of flour, which amounts to 45,000 sacks daily.

The government supports the wheat commodity by $500 million every three months, but this does not go entirely to its beneficiaries. Wheat and flour smuggling operations are on the rise in the country. Also, frequent power outages affected production at mills by 60 percent.

Inflation in the country had reached about 64 percent in July, according to official figures.

In October, the United States lifted economic sanctions imposed on Khartoum. The decision was expected to have a positive impact, but the economy did not benefit, according to Sudanese officials, because international banks still refrain from dealing with Sudanese banks.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.