عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Iraq Committed to Faw Port Project Despite Economic Woes, May Turn to China

Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
TT
TT

Iraq Committed to Faw Port Project Despite Economic Woes, May Turn to China

Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)
Workers load concrete at the al-Faw port project site in Faw, southern province of Basra. (Reuters)

Despite the economic crisis in Iraq and the authorities’ inability to fulfill their financial obligations, especially with regard to paying the salaries of civil servants, the government insists on building al-Faw Grand Port in the southern province of Basra.

The port is considered the country’s most important outlet to the Gulf and Iraqis have been looking forward to establishing it for many years, given its promising economic potential for the country, according to experts in finance, ports and trade.

During his visit to Basra last week, Prime Minister Mustafa al-Kadhimi said that al-Faw port is one of the government's priorities, despite the great challenges that the country is facing.

Kadhimi stressed that the government will work hard to sign with foreign companies to launch operations in the port.

However, the Iraqi cabinet’s desire to proceed with the construction works may face challenges which could delay the expected opening in 2024.

Over the past two days, another issue emerged as the Korean company, Daewoo, announced it wanted to change the terms relating to the duration and the payments of the contract.

The Iraqi Ministry of Transport issued a statement Sunday, addressing the issues with Daewoo, which is implementing the port project.

The Ministry indicated that the company has successfully implemented the port’s western breakwater, adding that the negotiations were held for three months, leading to a preliminary agreement.

The agreement stipulated that the company will implement five projects, with a navigation canal at a depth of 19.8 meters, at a total cost of $2.37 billion, in three years.

The statement noted that after the appointment of the new director of al-Faw port, Daewoo demanded increasing the cost to $2.8 billion if the ministry wanted to reach depths of 19.8 meters.

The former director of Daewoo in Iraq, Park Il-ho, was found dead last month in an apparent suicide at the company’s headquarters in Basra.

Transport Minister Nasser al-Shibli rejected the company's request and granted it three days to abide by the initial agreement.

The Iraqi News Agency (INA) quoted Shibli as saying that the ministry will continue to negotiate with Daewoo regarding al-Faw port, noting that the company has two contracts for the port that end in 2021.

He pointed out that Daewoo has an exception from the General Secretariat of the government to refer to it directly, noting that the work done so far has been excellent.

Shibli hinted at the possibility of turning to Chinese companies in the event that no agreement is reached with the Korean company.

On Sunday, the reconstruction and services parliamentary committee met with the Minister of Transportation to discuss the issues that have recently arisen with the Korean company.

Committee member Burhan al-Mamouri announced that they addressed the controversial points, including the manipulation of the technical specifications set by the Italian consultant.

He added that the new management executing the project requested a gradual reduction of the depths, an extension of the period of the contract, and an increase in the agreed payments.

The Iraqi officials stressed the importance of adhering to the technical specifications, especially with regard to the depths.

Most Viewed

 
 
Business

Private Sector Fuels Saudi Arabia’s Growth Lead Among G20 Economies

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
TT
TT

Private Sector Fuels Saudi Arabia’s Growth Lead Among G20 Economies

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

Fueled by a surging private sector and expanding non-oil industries, Saudi Arabia is poised to become the G20’s fastest-growing economy in 2027, overtaking India, according to International Monetary Fund (IMF) forecasts released last week.

The IMF expects the Saudi economy to grow by 7.9%, ahead of India’s projected 7%, highlighting the Kingdom’s economic transformation as regulatory and legislative reforms unlock new investment opportunities.

Saudi Arabia’s Ministry of Investment said the forecast underscores the economy’s strength and resilience while opening new avenues for investment and growth.

Momentum in the private sector and the expansion of non-oil activities are helping steer the Kingdom toward a more diversified, sustainable and investment-friendly economy, it said.

The IMF sharply raised its forecast for Saudi Arabia’s real gross domestic product (GDP) growth to 7.9%, from 5.5% in July, an upward revision of 2.4 percentage points that reflects prospects for recovery from the fallout of war and disruptions to trade and energy markets.

The outlook also highlights the structural transformation underway through Saudi Arabia’s Vision 2030, as non-oil sectors take on a greater role in driving growth and strengthening the economy against global headwinds.

The focus now shifts to whether the Kingdom can sustain that momentum and turn rapid expansion into lasting investment opportunities and jobs.

New sectors drive growth

Saudi Arabia’s projected lead among G20 economies signals a deeper structural shift away from its traditional reliance on oil revenues, according to Fahad Binjumah, an economist and former member of the Saudi Shura Council.

The private sector is emerging as a major engine of growth, bolstered by regulatory and legislative reforms, expanding investment opportunities and the rising contribution of non-oil industries.

Binjumah told Asharq Al-Awsat that the shift marks Saudi Arabia’s gradual transition from direct government stimulus toward a more diversified and productive economy capable of generating growth.

Major government investments have helped lay the groundwork, creating a stronger business environment and opening new sectors to local and foreign investors, he explained.

Strategic projects in tourism, industry, logistics and technology are also generating economic activity well beyond their immediate scope. Investment spending is rippling through supply chains and small and medium-sized businesses, widening commercial opportunities and drawing more parts of the economy into the growth cycle.

But for Binjumah, topping the G20 growth rankings is less important than sustaining that performance over the coming years.

"The main challenge is to turn economic expansion into long-term productivity gains by improving the efficiency of domestic businesses, boosting non-oil exports, developing skills and increasing private investment independent of government spending," he stressed.

Progress on those fronts would propel Saudi Arabia into a more advanced stage of economic diversification, where success is measured not simply by rapid growth but by a more resilient, competitive economy that generates added value and sustainable jobs, he added.

Reforms bolster economic resilience

Saudi Arabia’s rise in G20 growth projections is the product of years of economic reform, not a short-lived boost in any single sector, said Nasser Al-Sahli, president of the Saudi Governance Center.

Legislative changes, easier business procedures, wider investor participation and the restructuring of key sectors have made the economy more attractive to investment and better equipped to turn capital into productive activity, Al-Sahli told Asharq Al-Awsat.

The private sector’s expanding role shows that these reforms are increasingly translating into tangible economic gains, he said.

Their importance has grown amid geopolitical tensions, global trade and energy disruptions, and risks surrounding strategic maritime routes in the region. A broader non-oil economic base is helping Saudi Arabia diversify its income sources and reduce its exposure to external shocks.

"Economic diversification does not mean complete isolation from global developments, but building a productive and investment system capable of adapting to them and maintaining business continuity under different conditions," Al-Sahli said.

The next test will be whether Saudi Arabia’s private sector can move beyond capitalizing on opportunities created by government projects to driving investment expansion independently and sustainably, he went on to say.

That will require stronger productivity and competition, better access to financing, greater innovation and a larger international footprint for Saudi companies.

Al-Sahli said the real significance of Saudi Arabia’s projected G20 lead lies not in the ranking itself but in its ability to turn growth momentum into a more diversified and efficient economy, powered by a private sector that creates high-quality jobs and lasting economic value.

How G20 economies rank

India is forecast to rank second in G20 economic growth in 2027 at 7%, followed by Indonesia at 5.1%, China at 4% and Türkiye at 3.6%, according to IMF figures presented by the Saudi Ministry of Investment.

Argentina ranks sixth at 3.5%, followed by South Korea at 2.8% and the United States at 2.3%. Brazil is projected to grow by 1.9%, Mexico by 1.8%, Canada by 1.7%, Australia by 1.6%, South Africa by 1.3% and the United Kingdom by 1.2%. Germany is forecast to expand by 1.1% and Russia by 0.9%, while France and Japan are each expected to grow by 0.7%.

Business

Saudi Arabia Leads G20 with 7.9% Growth Forecast in 2027

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
TT
TT

Saudi Arabia Leads G20 with 7.9% Growth Forecast in 2027

King Abdullah Financial District in Riyadh (Asharq Al-Awsat)
King Abdullah Financial District in Riyadh (Asharq Al-Awsat)

Saudi Arabia is projected to lead the G20 countries in economic growth forecasts for 2027, according to International Monetary Fund (IMF) estimates. The IMF projects the Kingdom's real GDP to grow by 7.9 percent, the highest rate among the group's economies, as shown in data published by the Saudi Ministry of Investment.

The Fund had previously raised its projections for the Kingdom's real GDP growth to 7.9 percent, compared to 5.5 percent in its July estimates, an increase of 2.4 percentage points.

This revision comes amid expectations of economic activity regaining momentum as regional conflict-related disruptions subside, and oil production and exports gradually return to normal levels.

India ranked second among G20 countries with a projected growth rate of 7 percent, followed by Indonesia at 5.1 percent, then China at 4 percent, and Türkiye at 3.6 percent, according to IMF data reviewed by the Ministry.

Argentina came in sixth with projected growth of 3.5 percent, followed by South Korea at 2.8 percent, then the United States at 2.3 percent. Projections for Brazil stood at 1.9 percent, Mexico at 1.8 percent, Canada at 1.7 percent, Australia at 1.6 percent, South Africa at 1.3 percent, and the United Kingdom at 1.2 percent.

Germany registered projected growth of 1.1 percent, Russia 0.9 percent, while projections for France and Japan were 0.7 percent each, with Italy coming in last at 0.6 percent.

Growth Forecasts Revised

In an assessment of the recovery path, the Fund noted that the diversification of Saudi energy export routes limits the Kingdom's vulnerability to geopolitical disruptions compared to some regional economies. This is due to the the East-West Pipeline's ability to divert some oil exports to Yanbu Port on the Red Sea, away from the Strait of Hormuz.

The IMF's estimates align with the World Bank's projections, which also raised its forecast for Saudi economic growth in 2027 to 7.9 percent, compared to 4.9 percent in its April estimates, while anticipating a 2 percent contraction in GDP during 2026.

Globally, the IMF expects the world economy to grow by 3.1 percent in 2026 before rising to 3.4 percent in 2027, placing Saudi Arabia's growth forecast at more than double the projected global rate for the coming year.

The Saudi Ministry of Investment said that the Kingdom’s leading growth outlook among G20 countries reflects the strength and resilience of its economy and opens up broader prospects for investment and growth.

This is supported by strong private-sector momentum and the expansion of non-oil activities, reinforcing the Kingdom’s shift toward a more diversified, sustainable, and investment-friendly economy.

Business

Saudi Arabia to Host Global Water Innovation Conference in Jeddah

Participants at a previous edition of the Innovation Driven Water Sustainability Conference. (Saudi Water Authority)
Participants at a previous edition of the Innovation Driven Water Sustainability Conference. (Saudi Water Authority)
TT
TT

Saudi Arabia to Host Global Water Innovation Conference in Jeddah

Participants at a previous edition of the Innovation Driven Water Sustainability Conference. (Saudi Water Authority)
Participants at a previous edition of the Innovation Driven Water Sustainability Conference. (Saudi Water Authority)

Saudi Arabia will host water industry experts from more than 140 countries in Jeddah from December 14 to 16 for a conference focused on harnessing innovation to tackle growing water security challenges.

Organized by the Saudi Water Authority, the Innovation Driven Water Sustainability Conference (IDWS 2026) is expected to draw more than 10,000 participants and 250 speakers, with an exhibition featuring over 150 international brands.

Bringing together researchers, investors, technology companies and water utility operators, the event aims to bridge the gap between scientific advances and the practical needs of the industry, helping promising solutions reach commercial markets.

Tariq Al-Ghafari, the authority’s vice president for research and emerging water technologies, described the conference as an opportunity to connect new technologies with financing and operational expertise, paving the way for wider adoption.

The gathering comes as pressure on water resources intensifies, creating growing demand for investment in infrastructure and technology.

The global market for water security and infrastructure management is estimated at $303.8 billion, while planned construction and engineering projects in the water and wastewater sectors exceed $1.2 trillion.

Meeting the UN Sustainable Development Goals for clean water and sanitation will require an additional $131 billion to $140 billion annually, highlighting the scale of investment needed to expand access and modernize infrastructure.

According to the World Health Organization and UNICEF, around 1.8 billion people live in households without water supplies on the premises.

Agriculture alone accounts for approximately 72% of global freshwater withdrawals, according to the UN Food and Agriculture Organization, underscoring the importance of improving efficiency in water-intensive sectors.

Against this backdrop, the conference will explore ways to expand treated wastewater reuse, promote circular economy practices and apply artificial intelligence, digital technologies and data analytics to water management.

Discussions will also examine how regulation, financing and workforce development can speed up the adoption of new technologies, while improving efficiency across the water cycle, from production and treatment to resource recovery.

The program includes the MiyahThon innovation competition, startup showcases and the fourth edition of the Global Prize for Innovation in Water.

These initiatives are designed to bring innovators together with investors and water operators, giving emerging technologies a clearer path from development to commercial deployment.

By connecting research with investment and industry needs, the conference aims to help turn promising ideas into practical solutions as countries seek more efficient, resilient and sustainable water infrastructure.