Morocco's Poor Left Behind by Development Boom

 Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
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Morocco's Poor Left Behind by Development Boom

 Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki
Mohammed Akki's wife works in the kitchen of their home that has no electricity and is lit by a gas lamp in the community of Ait Hammou Ouhmad on the edge of Azrou in Morocco, November 6, 2019. REUTERS/Abdelhak Balhaki

Mohammed Akki left his home in Morocco’s Middle Atlas mountains to seek regular work and a better life in the town of Azrou, but he still lives on the margins in a country enjoying an investment boom.

Every morning, Akki walks miles into Azrou, where he may or may not find work as a day laborer. His ramshackle house down a muddy lane has no electricity or running water and his school-age daughter has to study by candlelight.

He is part of a large class of impoverished Moroccans left behind by the rapid development that has transformed much of the northwestern coastline with multi-billion-dollar infrastructure projects.

“It is inconceivable. How can we live in a city but we still need candles? We hear slogans but there is no transparency. We never get any help,” said Akki, standing in his dark kitchen, where a storm lamp lit a few pans hanging from nails on the wall.

Morocco’s rampant inequality is stirring some unease in the country’s political class, particularly after protests in the northern Rif mountain region in 2017-18 and the mass demonstrations in neighboring Algeria this year.

Signs of public frustration include political chanting by football fans in Casablanca and a popular rap song that decried inequality.

“More than poverty, social disparities create frustrations that may trigger protests. These disparities are often viewed as a result of an illegitimate accumulation of wealth,” said Ahmed Lahlimi, head of Morocco’s official statistics agency.

The government said this month it had allocated 7.4 billion dirhams ($770 million) to combating social and regional disparities this year as part of a longer program.

King Mohammed VI, who sets the policy direction in Morocco, though it is implemented by an elected government, is appointing a commission to oversee a new phase of development aimed at tackling such disparities.

Mohammed’s two-decade reign has mostly focused on upgrading infrastructure needed for business, such as a high-speed rail link connecting Casablanca to Tangier, now transformed into Africa’s busiest port.

Economic growth averaged 4.5% from 2000-2012, but only 3% since then, a relatively low figure for an emerging market. A quarter of Moroccans are either poor or at risk of poverty, a recent World Bank report said, and the kingdom ranks 123rd in the UN’s human development index.

In Azrou, located in the Middle Atlas mountains east of Rabat, Akki and his family spend their evenings in the dark. He and his neighbors have to collect drinking water by donkey from a well a mile away.

Their community, Ait Hammou Ouhmad, is entirely populated by people who have left the mountains to settle near Azrou. They have built their homes cheaply without official permits and are unable to gain access to government utility services.

Country folk fleeing the poverty and uncertainty of an agricultural sector utterly dependent on variable rainfall have swelled the poor districts of Moroccan cities.

HARSHER CIRCUMSTANCES
Agriculture employs about 40% of Moroccan workers but a dry year can cut overall economic growth by more than a percentage point and leave many without work, statistics chief Lahlimi said.

The austere circumstances of Akki and his neighbors point to the even harsher conditions endured by those they left behind in the remote mountain regions, many working as shepherds, often tending flocks that belong to absentee owners.

In the high cedar forests of the Middle Atlas, where troupes of macaques lurk along the gloomy treeline, some former nomads still live in tents roofed with plastic sheeting on a barren plateau far from the nearest school or hospital.

Fadma Safsaf, whose tent and thorn animal enclosure lie in a wide meadow ringed with cedar forest, looks after two daughters and a son while her husband grazes the flock in the high pastures.

Most of the sheep and the tent they live in are owned by a landlord in France. Their annual payment is a quarter of the lambs born to the flock each year, Safsaf said.

“We lack water and electricity and suffer from snow and extreme cold. We lack clothes and shoes,” she said.

“We often have access only to muddy water. I want to go to the city, but my husband does not have a job. What could we do there? My husband has no skills,” she said.



Saudi Gold Refinery Obtains 10 Gold Exploration Licenses in Tanzania

A gold mine in Saudi Arabia (SPA) 
A gold mine in Saudi Arabia (SPA) 
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Saudi Gold Refinery Obtains 10 Gold Exploration Licenses in Tanzania

A gold mine in Saudi Arabia (SPA) 
A gold mine in Saudi Arabia (SPA) 

Saudi Gold Refinery Company (SGR) announced Sunday it has secured 10 licenses to explore gold in the Republic of Tanzania, covering a total area of nearly 1,000 square kilometers, in a move aimed at expanding the company’s mining operations outside the Kingdom.

The company said it has allocated an initial investment of $10 million to carry out exploration activities, within an ambitious plan to gradually increase total investments to $100 million. These investments will support the development, establishment, and operation of gold mines, with commercial production targeted to commence by 2030.

The announcement follows a visit to Tanzania by Faisal Suliman Al-Othaim, Deputy Chairman of the Board of Directors at SGR.

According to the company, this milestone is supported by the Ministry of Investment and the Saudi Embassy in Tanzania, highlighting the importance of strengthening Saudi investments abroad and creating new opportunities for national companies in the global mining industry.

SGR continues to advance its global expansion strategy through its international investment arm, UGM Tanzania co, which oversees its operations and investment activities in Tanzania and Ethiopia.

The company also maintains ongoing projects and business activities in Egypt and the Sultanate of Oman, while actively exploring opportunities in additional markets to further expand its global footprint and create sustainable value across the mining sector.

In the Saudi market, the company plans to develop six to ten mines before 2030, at an average rate of two mines per year. These plans are supported by the Ministry of Industry and Mineral Resources, the Saudi Industrial Development Fund, financial institutions and other relevant authorities and stakeholders.


Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
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Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)

Oil prices fell at Monday's open after US President Donald Trump said he was highly unlikely to order new Iran attacks while talks to end the conflict make progress, despite both nations' reports of attacks on ships in or near the Strait of Hormuz.

Brent was down 84 cents, or 0.85%, to $97.48 a barrel by 0138 GMT, while West Texas Intermediate fell 32 cents, or 0.35%, to $90.51 a barrel.

The fall reversed minor gains made on Friday’s settlement as the market assessed the possibility of further US ‌strikes on Iran, ‌although Brent fell 17% last week, the ‌steepest ⁠weekly drop since the ⁠start of the COVID pandemic and the biggest in absolute terms, according to LSEG data dating back to 1988.

"It depends on whether or not they sign a very strong agreement," Trump told CNN in a phone interview. "The answer is, highly unlikely it's going to be necessary."

Trump had hinted at renewing attacks on Iran after ⁠last week's US midterm elections, but there has ‌been no sign of a large-scale ‌US military operation. Iran has said it would respond by striking US and ‌Israeli targets.

Tim Waterer, chief analyst at KCM Trade, called ‌Trump's comments "more measured" but said "the market is still waiting to see whether the midterms have produced a lasting shift in Trump’s approach to the conflict, or whether this is just another temporary change in tone."

Oil is headed ‌for a glut again as recovering Middle Eastern oil flows, rising production from other countries and ⁠weak demand have ⁠pushed global supply above consumption, JPMorgan said in a report on Friday, estimating a surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October.

On Sunday, Iraq reached an understanding with the US to allow Iraqi oil exports through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein said in an interview with Al Jazeera.

He said Iraq's losses from the Iran war and disruptions to oil exports had reached $60 billion.


Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)
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Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)

The Gulf Cooperation Council (GCC) member states took a new step toward completing the railway interconnection project by signing the project's general agreement in Bahrain on Sunday. This comes as part of efforts to establish an integrated transport network linking the six nations and boosting the movement of passengers, goods, and commercial trade among them.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa told Asharq Al-Awsat that each country will fund and execute the portion of the project located within its territory.

Meanwhile, the costs, fees, and expenses associated with the shared interconnection components among member states will be determined collectively, he added.

He explained that the agreement establishes a joint framework for the project's execution and operation, while defining the obligations of member states and their coordination mechanisms.

He noted that the network, which extends some 2,117 kilometers, aims to transport 6 million passengers and 200 million tons of freight by 2030, with the figures projected to rise to more than 8 million passengers and 271 million tons of freight by 2045.

The project spans from Kuwait, passing through Saudi Arabia, Bahrain, Qatar, and the UAE, all the way to Oman, with the goal of achieving full network operations by December 2030.

According to the minister, interconnection lines between adjacent countries can become operational as soon as their components are completed, without the need to wait for the entire Gulf network to be finalized.

National financing and potential partnerships

On private sector participation, Al Khalifa said that it remains one of the viable options for financing, executing, or operating certain components of the project, depending on the outcomes of economic and financial studies. He stressed that there is no unified public-private partnership model approved across the entire network.

There are currently no pre-existing agreements with specific international partners to finance or execute the project, he said. However, the expertise of global companies in the fields of design, engineering, technology, and operating systems could be utilized based on the project's needs and its various phases.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa.

Concerning the project's announced completion rate, the minister explained that the 50 percent figure represents the average progress achieved across member states, and does not mean that half of the construction work for the entire Gulf network has been completed.

The project's cost estimates are currently undergoing review and updates in light of economic shifts, rising prices for materials and services, construction costs, and inflation, he revealed without specifying an updated total cost at the present time.

Returns beyond passenger and freight transport

Al Khalifa said that the economic impact of the project is not limited to facilitating passenger movement and freight transport, but extends to improving supply chain efficiency, boosting trade among GCC countries, and linking industrial centers, economic zones, and logistical hubs, as well as supporting employment and investment opportunities.

He added that determining the project's exact contribution to the gross domestic product (GDP) or estimating expected savings in time and costs remains premature, given that returns vary depending on transport routes, the nature of the cargo, and the points of origin and destination.

In light of the challenges facing maritime navigation in the region, the minister stressed that the Gulf railway network is not intended to serve as a substitute for maritime transport. Instead, it acts as a complementary route that boosts transport options and connectivity among GCC nations, increasing the resilience of supply chains against disruptions that could affect various modes of transportation.

He noted that integration between ports, roads, railways, and airports will strengthen the flexibility of the Gulf transport system, while connecting to broader international logistical corridors remains a future possibility contingent on completing studies, understandings, and coordination with the relevant countries and entities.

King Hamad Bridge to link Bahrain and Saudi Arabia

Regarding the connection between Bahrain and Saudi Arabia, Al Khalifa explained that the King Hamad Bridge project includes road lanes and railway lines, enabling the international passenger station in Bahrain to connect with the Saudi railway network and forming one of the essential components for completing the Gulf interconnection.

He added that work is underway on the privatization procedures for the King Fahd Causeway Authority, alongside completing the necessary studies and procedures to transition to the execution of the new bridge project.

Achieving the connection between Bahrain and Saudi Arabia is a fundamental requirement for operating the railway line between the two countries within the project's targeted timeframe in December 2030,e he said.