Riyadh Seeks to Achieve Recovery Plan for International Aviation Sector

The Saudi Energy Minister attends the Future of Civil Aviation conference in Riyadh on Monday. (Asharq Al-Awsat)
The Saudi Energy Minister attends the Future of Civil Aviation conference in Riyadh on Monday. (Asharq Al-Awsat)
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Riyadh Seeks to Achieve Recovery Plan for International Aviation Sector

The Saudi Energy Minister attends the Future of Civil Aviation conference in Riyadh on Monday. (Asharq Al-Awsat)
The Saudi Energy Minister attends the Future of Civil Aviation conference in Riyadh on Monday. (Asharq Al-Awsat)

Saudi Arabia has revealed plans to strengthen its capabilities in the aviation sector over the next ten years, with the aim to become a leading center for aviation and air transport in the Middle East and the world.

Under the patronage of the Custodian of the Two Holy Mosques, the Saudi General Civil Aviation Authority announced an international initiative to unify procedures and policies regarding health requirements, in order to support the sector’s recovery from the Covid-19 pandemic.

This came during the launch of the Future of Civil Aviation conference in Riyadh on Monday.

In this regard, Saudi Energy Minister Prince Abdulaziz bin Salman underlined the efforts to face energy challenges in the aviation sector.

“We are focusing on two fronts; first, we work with the aerospace industry to develop engines, materials, and innovation; and second, on low-carbon aviation fuels that we believe will be the transitional fuels of the future,” he said.

Speaking during his participation in a dialogue session entitled, “Energy Transformation: How We Can Overcome the Sustainability Challenge”, the minister noted that energy security was the most important pillar, “without which the goals of economic growth and sustainability cannot be achieved, including dealing with climate change.”

He added: “We are not in a position to choose among the sustainability solutions; rather, we should take advantage of all available options, to achieve our goals realistically.”

Prince Abdulaziz stressed that these goals could be reached within the framework of the circular carbon economy, through carbon sequestration from the source, in addition to the use of captured gas in the production of industrial fuels.

According to the Saudi official, the aviation sector emissions do not exceed two percent of the total emissions.

“Whether this percentage is large or small, the world agrees on the importance of finding solutions to reduce emissions of all sectors,” he remarked.

The Saudi Energy Minister noted that the gap between crude oil prices and the prices of jet fuel, diesel and gasoline was about 60 percent in some cases, due to a lack of investment in refining capacity.

“The world needs to consider energy security, sustainability and overall affordability,” he said. “All types of mobility fuels have risen sharply, and the gap between crude oil prices and these products in some cases actually reaches 60 percent.”

On whether geopolitical events in Europe will accelerate or impede the transition to cleaner energy in the medium term, the Saudi minister said: “I think it brought us back to reality about how actual conditions in which we live can undermine aspirations.”

He said that even before the Ukraine crisis, the “dreamland scenario of net zero emissions was faced by many realities, including the cost.”

For his part, Salvatore Sciacchitano, President of the Council of the International Civil Aviation Organization (ICAO), said that the number of passengers around the world was likely to constitute, by the end of 2022, 75 percent of the number achieved in 2019, before the outbreak of the Covid-19 pandemic.

The number of travelers is growing in certain regions faster than others, such as Latin America and Europe, compared to regions that are still suffering from the effects of the pandemic, such as China, he noted.

Meanwhile, the Saudi Civil Aviation Authority said on Monday that it was working to develop a framework aimed at facilitating international travel, in cooperation with the ICAO.

The Saudi initiative will promote a policy of standardizing procedures to ease international travel, whether for passengers or airlines and government agencies, by creating a single digital platform that provides the latest information and developments with clarity and transparency, and identifies entry requirements for all participating countries.

If endorsed by the member states of the ICAO in October, the initiative will enable the unification of procedures and policies regarding health requirements to support the sector’s post-pandemic recovery.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.